Procurement Routes And Contracts.

In this assignment I will be writing a formal report that will explain a typical procurement process, I will outline a variety of methods of supplier reimbursement and contract relationships; I will also outline the pros and cons of each contract type. As well as this, I will explain a typical supplier selection process through the use of Carters 10 C’s and a typical selection process model.

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Next, I will perform a complete business flow design. This is a frequently overlooked preparation item a Project Manager should

Choosing construction management as a procurement strategy means the client is responsible for leading the

This section defines and establishes the model for governing and managing Honeywell Indirect procurement and Project & Services type catalogs. These catalogs are used to automate the placement of purchase orders by allowing requisitions to be completed using pre-arranged pricing and materials with select vendors. Through this process a buyer can ensure that pricing is accurate, spend is leveraged, and PO’s are placed in a timely fashion.

Use this section to identify the design documents that have been developed and summarizes the overall solution design in a succinct statement. Also, define why each of these design documents is necessary for the project.

1. Name and briefly describe each of the two basic types of competitively bid construction contracts. Which type would be most likely used for building the piers to support a large suspension bridge. Why?

In order to institutionalize best procurement and acquisition practices in an organization, I would begin by forming a cross-functional team made up of supply management personnel, finance personnel, attorneys, human resources, engineers, and other subject matter experts. As was highlighted in chapter ___ of the class text, this is the best approach for ensuring that the broadest possible range of ideas and perspectives are incorporated early into the planning process. Additionally, it ensures that a great idea conceived of by one functional area is viewed from within the restrictions and/or limitations imposed by another. As with specifications development, this process allows the team to develop a reasonable, effective, and implementable plan that works across functional areas and provides the greatest return on investment.

For this assignment the writer is going to discuss the nature and types of construction contracts and will explain the legal responsibilities of the various parties involved in the design and the construction process.

The MW-1 2003 Contract was developed and published by the Royal Australian Institute of Architects (RAIA) and the Master Builders Association (MBA). This contract is the revised edition of the original ABIC MW-1 2001 contract

terms of time can be managed in this scenario, as there is no specific delivery

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement strategy is very important to the success of a construction project. Therefore, the characteristic of each strategy have to analyze and also its relative advantages and disadvantages. A recommendation of most appropriate procurement

Procurement management is the processes to purchase or acquire the products, services or results needed from outside the project team to perform the work. Project Procurement Management involves not just purchasing products, services or results, but also ensuring that those that are purchased are right for the project, meets standards and is based on project requirements. This life cycle includes tracking from order through deployment and completing with invoice reconciliation.

In Europe, most of the construction industry are practicing e-tendering. E tendering process finds and selects the supplier. E purchasing is also a part of e procurement. In this process system complete from finding the product, works, services and utilities to invoicing and payment by electronic means.