Tco-Happyland Construction Essay

A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)

PROJ 592 All Discussions Week 1 - 7 Purchase here http://devrycourse.com/proj-592-all-discussions-week-1-7 Product Description PROJ 592 Week 1 DQ 1 WBS Construction PROJ 592 Week 1 DQ 2 Project Cost Estimates and Assumptions PROJ 592 Week 2 DQ 1 Cost Components PROJ 592 Week 2 DQ 2 Estimating Processes PROJ 592 Week 3 DQ 1 Project Schedules PROJ 592 Week 3 DQ 2 Sensitivity Analysis PROJ 592

There are factors to avoid when planning a budget that may involve equipment requests. A key factor to avoid is the purchase of equipment that will not be utilized to it’s full potential. The use of the costs and quantitative justification should help to highlight times that an equipment request is not cost effective. Often it occurs that a type of equipment bought is either easily lost or not used. This can then lead to the following scenario; equipment is lost, so replacement equipment is purchased which then

The equipment is expected to cost $240,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 96,000 units of the equipment’s product each year. The expected annual income related to this equipment follows.

Our company chose to bid on this project for many reasons. The first reason is that over the last year we have opened five new satellite locations that have taken off faster than previous openings, which has given our company momentum to take on new larger tasks that are within our field of operation. The second reason is that we have enough resources to be able to provide future maintenance of the site and its functions. Third, the purpose of this project also will determine if we increase the team size of our development teams to allow for multiple large tasks. If in fact management finds that this project was completed with exceptional quality within reasonable time and budget limitations, then the stock share percentage will increase and a bonus will be given.

The scope is that within the budget of CAD $900,000 the property to include: foundation with

Procurement intends to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organization, its stakeholders and clients (Kidd, 2005). Therefore, construction procurement exists to purchase a construction project as requirement of firms or organizational entities to achieve its goals. However, the choice to use external resources is the part of firms’ decision-making

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

First, the ethical dilemma itself will be outlined. In the construction industry, it is often necessary for an owner or a construction company to enlist the help of other smaller or more specialized companies in the completion of a project. This practice is known as contracting. When an owner or company, referred to as the contractor, wants to contract out for a job, they will list the job and interested companies will bid for the contract. When arriving at a bid amount, interested companies will estimate

Byte Products has three existing plants operating at full capacity (24 hours a day and 7 days a week). The new plant proposed to be built in the southwestern United States will require 3 years

Client and the contractor have same priorities. Basically, contractor will make the decision in turnkey approach and client will just accept in silent. In this project, the contractor and the client have the same focus and priorities therefore the relationship between the contractor and client is good and there is no overruns or communication problems between both sides.

1. To calculate the amount a customer should be willing to pay for one of CMI’s new cushion pads, the average costs per real hour of equipment rental, labor, and overhead costs were first taken into consideration (Figure 1). These amounted to an average cost per real hour of $714.00. Next, the average costs per real hour of hidden costs were taken into consideration (Figure 2). According to the case, a contractor could spend 20 to 40 minutes moving the crane into position. This averaged to 30 ((20 + 40) / 2) minutes, or 50% (30 / 60). Similarly, another 10% to 15% was added to cover scheduling delays, mistakes, and other unavoidable problems. This averaged to 12.5% ((10% + 15%) / 2). Considering these percentages, the total hidden costs were $258.75. The total equipment rental, labor, and overhead costs with total hidden costs were $972.75 ($714.00 + $258.75). In other words, the total average cost per real hour was $972.75. Finally, using this total average cost per real hour and the case, the total costs for driving time, replacing pads for both the Kendrick Foundation Company and Corey Construction were calculated (Figure 3). The difference between the total contract costs, excluding total changing time costs, for conventional pads and CMI pads for Kendrick Foundation Company was $30,738.90. Similarly, the difference between the total contract costs, excluding total changing time costs, for conventional pads and CMI pads for Corey Construction was $30,738.90.

There however are challenges in the industry occasioned by uncertainty on future spending on construction projects by the government. Moreover, the cost of doing business and the ability to increasingly make revenue have created a challenging environment for the construction firms. Therefore stakeholders in the construction industry are concerned with whether the government would increase its spending and whether the public construction projects will be available in the future since less than 10 percent are currently financing their clients.

When choosing a type of procurement it is based on the clients experienced and knowledge of construction that the client has and there requirements. Once this has been decided then the relevant contracts can be drawn up outlining the relevant responsibilities shared and risk taken into consideration and also meeting the correct legislation and the Housing Grants, Construction and Regeneration Act 1996. With regards to the Housing Grants, Construction and Regeneration

The construction industry much like other industries is dependant with the distribution of “scarce resources” (Drake,1994). Many of its resources known as the factors or production i.e. labour, capital, land etc. are limited (Gregory-Mankiw, 2008), however, wants and desires within the industry are infinite (Myers, 2013). Kishtainy notes that this creates two problems; at any given time, there will be a fixed number of resource, against numerous wants. Sloman 2003 adds that in an effort to rectify this, he argues that we must make choices, in terms of choices within the construction industry Myers suggested that firms need to considered their investments made, how they construct and for whom they construct for.