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BSBPMG537 Manage Project Procurement

Introduction

ADCO Constructions Sydney is an Australian-based company that belongs to the construction group.

The different kind of services that are being provided by the company is as follows 1 construct and design

  • constructs only
  • management of construction 4 joint ventures and alliances

The main target that it follows is to give a sustainable return to all its stakeholders which makes it different from the other rival industries the main construction that has been they are doing very long are as follows – including road Constructing, construction regarding the rails, defence, building, and resources infrastructure, construction industry, etc.

Policies and procedures

 The project is about the redevelopment of the ADCO Constructions Sydney and introducing the desired things into it which fulfill the purpose of the client. The most common policy and procedure which are required for the accomplishment of the construction of road required the following document based on the construction:

1. Privacy Policy

 This Policy outlines the privacy requirements for ADCO Group Limited and the organisations it manages (the Group).

This Policy applies to all Group employees, third-party contractors, and alliances and joint ventures in all jurisdictions.

Confidentiality and security

preserving all personal information submitted to ADCO keeping personal information discreet and secure;

and taking all necessary precautions to protect personal privacy

2. Quality Management Policy

The following policy has been adopted by ADCO to guarantee that projects are delivered to clients at the best possible standard:

  • To the successful and efficient implementation, administration, and enhancement of quality, all personnel within our organisation must be dedicated. Additionally, it is their duty to recognise and stop any actions that do not adhere to predetermined criteria.
  • The current Quality Management Representative is in charge of ensuring that the quality system manuals are compiled, distributed, effectively implemented, amended, and kept up to All system results produced inside the quality management framework must be consistent with established company objectives and meet declared quality, customer, and statutory standards.

3.   Environmental Management Policy

ADCO is dedicated to environmental protection. We are committed to conducting our operations in a way that prevents pollution, conserves natural resources, and protects all cultural heritages. We are committed to fulfilling our corporate obligation to reduce the impact on land, water, air, flora, and fauna.

4.   Occupational Health and Safety Policy

 All Managers shall be accountable for the implementation and dissemination of all topics relating to the health and safety of their employees and subcontractors.

All employees, contractors, subcontractors, and visitors will be required to embrace the concept of safe work practises and a safe working environment. Employees, contractors, and subcontractors will be obliged to work in a healthy and safe manner, while discouraging others from doing the same

  • Inspection of the site – so that construction could be done by keeping the desired audience in mind which will lead to their satisfaction as the client desires.
  • Sitemap – this is to know the new structure of the
  • Design which is according to Legislatives – it acts as a blueprint for the construction that has to be done to complete the desired result
  • Request of the proposal also known as RFP
  • Requirement and the last goal needed – Reason for redesigning the ADCO Constructions Sydney containing all the issues and faults which are needed to be resolved
  • Documents containing all important aspects of the construction including the important stakeholders who are involved in the process and policies of the Australian construction (Behrangrad, 2015)
  • Whistleblowing policy –This are the policies regarding the whistleblowing it is the term that are being used for the purpose of delivering the mis construction at the place of construction in order to make sure that construction goes
  •  Training policy – The training policy is must be based on the current construction environment and the overall construction could be complete in such a way that it could achieve the given deadline
  • Sustainable policy regarding the procurement – All the sustainable policies are must be based on the objective that the firm could survive the daily changes that are being observed in order to compete in the market.

Planning procurement

  1. Making list of quantity of products Etablishing the precise quantity of goods and services needed to finish project task is crucial. The completion of a project activity will be delayed if you purchase too little of a good or service. Too many purchases could lead to storage isuses or cost overruns, both of which could have a determental effect on the projects budget.
  1. Establish Vendor Selection Criteria

The project team should refer to the schedule when choosing when to order goods and services,project delays can be prevented if necessary goods and services are available when they are required. Project goals may be severely impacted if goods and services are not acquired when they are needed.

Market research must be done by the project team. In some cases you can discover that there is a large pool of suppliers you can use to get the goods and services you need.other times,there are just few providers,such as when buying highly complex or technical machinery. You can base your decision on a member of factors, including cost,product range and diversity,customer services backup and support ,location and in addition availability.

  1. Work with the Procurer

After establishing the choice criteria in the previous stage, the department can begin negotiating with vendors who satisfy the criteria and can provide the procurement products under the most advantageous options. The department head must meet with the project manager on a regular basis to report on the status of negotiations and to monitor the progress of each procured item. These meetings also help to ensure that each item conforms with the specifications and is delivered in accordance with the project procurement strategy. If the procurer is able to fulfil the new criteria, any delays in delivery and schedule can be avoided early on, and any necessary changes to specifications can be made “on the fly” before products are dispatched.

  1. Analysis the Performance of Purchasing Activities

Decision makers can use performance measures to establish whether their project’s purchasing activities are on track. The use of such indicators provides the path for determining where and why adjustments to the purchase plan are required. An analysis of vendor performance can also be performed to review data on the performance of present sellers and then use this data for decision criteria in upcoming projects.

Experienced project managers and team members who is involved in organisation to help to decide the necessary amount of goods and services. In addition The Engineers which is having in-depth knowledge about the constructionis involved with the other important workers and site manager in the decision-making of the site for the construction.

The documentation is sometimes referred to as a invitation for bid ,notice for tender, invitation to negotiate. In addition the document for showing of interest,request of proposal, and document about contractor initial response, request for quotation.

These elements are required in contracting documents A breakdown of the required response of format Statements which is necessary for the work

Criteria and requirements Clauses in a contract

Early delivery of goods and services may cause storage issues, requiring removal and additional storage space at a higher cost. Alternatively, if goods and services are too late they might not be useable because the will likely have spoiled.

The goal of procurement is to receive necessary products at the precise moment they are needed, neither earlier not later in order to prevent extra expenditures for early or late delivery.

Market analysis

The market analysis for the construction of road requires a proper research of the market that involves about the different criteria of work under the construction of road with the proper analysis of the market trends that how about the human resources and other construction experts of the company.

The market analysis required the following fundamentals which must be performed accordingly to attend the best result of the objective:

  • The market research involves the nature of the Construction service available and how it is going on to make sure that the project in which construction is going on can result better and able to compete in the market.
  • The level of difficulty and the necessary and updated resource which could be needed for the redevelopment of the desired ADCO Constructions Sydney.
  1. There is need of detailed notification of the road construction and also there will be need of the resources of the construction with the required materials.
 

Concrete

 

Workers

 

2 Tones

 

During construction

 

Supplier

 

Through the agreement that          is signed with the supplier

 

Through the agreement that          is signed with the     Client &     project manager

 

Sand

 

Workers

 

3 Tones

 

During construction

 

Supplier

 

Through the agreement that          is signed with the supplier

 

Through the agreement that          is signed with the     Client &     project manager

 

Tar

 

Workers

 

2 Tones

 

During construction

 

Supplier

 

Through the agreement that          is signed with the supplier

Through the agreement that          is signed with the     Client &     project
 

Binders

 

Workers

 

1 Tones

 

During construction

 

Supplier

 

Through the agreement that          is signed with the supplier

 

Through the agreement that          is signed with the     Client &     project manager

 

Gravels

 

Workers

 

3 Tones

 

During construction

 

Supplier

 

Through the agreement that          is signed with the supplier

 

Through the agreement that          is signed with the     Client &     project manager

There will be proper delegation that requires for the team members for the proper analysis and this can be identified by the management of the material.

Material & tools required for the construction

  1. Asphalt
  2. Concrete
  3. Gravels
  4. Stone material
  5. Sand
  6. Tar
  7. Construction Workers
  8. Road construction machine
  9. Cement
  10. Binders

The service required for the purpose is a skilled team of engineers and architects that has in- depth knowledge about ADCO Constructions Sydney and can do better because of their past experiences (Kavanagh, 2016).

The project team member can analysis better if he follows the bellow

1.     Attendance of the team member

2.    Helpful nature for other team members

3.    Work Efficiency

4.    Initiative

5.    Quality

If the goal of the analysis is to increase teamwork, then every member of the project team should be there in person. This need can usually generate issues with geographically different teams, but it is a vital aspect in actually strengthening teamwork.

Planning to procure

There are many different types of procurement methods such as open tendering, restricted tendering, request for proposals, two-stage tendering, and single source.

Traditional Procurement

The traditional form of the procurement of the organisation for the road construction is to generally separation of the design and the construction, the organisation use the traditional way that there is approval of the designs of the site then there will be construction will take place so that there will be proper satisfaction of the client about the designs of the construction sites.

The company follow three types of the contracts:

  1. Lump sum contract: In this type of the contract there is preference of the forecasting of the sum amount in the agreement of the client.
  2. Measurement contract: In this type of the contract organisation know the accurate amount of the contract and this will be decided after the completion of the
  3. Cost reimbursement: In this type of contract when there is the completion of the construction than there is the addition of the cost of the construction with the charges of labour and others and also there is a profit of the organisation can be

The planning for the procure requires things as follows:

  • Inspection of the site
  • Selection of the designs for the construction of the road 3 Making the risk that will generate in the process
  1. Making the engineers ready for the construction by providing the team and human
  2. Taking the approvals of designs from the local council for the construction.
  3. contingency plans to make sure that construction doesn’t get interrupted in any

The important documents which were needed to prepare the perspective for sellers are as follows

1 Inspection of site 2 Sitemap

  • Design of the construction
  • Request of the proposal also known as RFP

There are three types of Road constructions there are in procurement which are as follows: 1 fixed-price Road constructions

  • cost-plus Road constructions
  • time and material Road constructions

The fixed price Road construction has been chosen as it fits best for the purpose after analyzing the requirement of the task provided (Morledge, et al., 2017).

Contract administration planning

The Road construction administration planning is involved as follows

  • There should be proper follow of the statement of the work and site

2Contract should be developed based on the complexity of the contract

  1. There should be proper checklist to considered with the SOW of contract
  • Proper check of the pre-performances of the contract.
  1. management of the record

The KPIs which has been set up by the team for the contract are as follows 1 Design of road should follow Australian Standards of contract

  • deadlines
  • attainable
  • measurable

The process of a contract performance review consists of following 1 cost

  • punctualities
  • reliabilities
  • qualities
  • consistencies

The type of report which is required in administering the contract 1 expiring Contract

  • draft contracts
  • pending signature
  • active Road constructions
  • inactive Road constructions

The important and valuable stakeholders and the higher authorities have been involved in the process of Road construction administration (Naoum&Egbu, 2016).

Establishing procurement processes

 There are normally 5 stages to managing the procurement process Stage 1 identifying procurement needs

After consulting with stakeholders higher-ups for the organisation,and the team project ,the project manager must decide what are the needs for procurement of a project.

Stage 2 creating agree-upon procurement procedures

In order to determine how project contracting and procurement criteria might be effectively satisfied, the project manager uses data from a couple of sources.

Stage 3 executing and procurement procedures

To ensure that potential suppliers and contractors are aware of the goals of the project, proposals and specifications are sent to them.

Stage 4 contract and procurement implementation

The procurement management plan’s designated operations are carried out. When necessary procurement operations are changed with the agreement of higher project authorities.

Stage 5 conducting finalisation procedures for contracts and purchases

In order to verify project deliverables are delivered and contractual obligations have been met,and the project manager supervises finalisation operations.

Documents required for tender are 1 Turnover information

2 Credentials of the organization 3 Market performance report

The procedure requires for evaluating responses

It includes planning, deciding, conducting the program, collecting information, and providing the result

The procedure requires selecting preferred Road constructions

Selection is based on competence, approach or project, and lastly performing ability. The procedure used for making KPIs for a Road construction

KPIs included for Road construction performance are as follows – specific, attainable, quantifiable objectives, etc.

The procedure used for monitoring Road construction performance

Decide on what to observe, centralize info, reviews, and analysis, and business protection action, Site of the map with the needed reports of the traffic.

Procedure for making changes in procurement

Be realistic, start from the top, be thorough, and clear vision. Procedure for review of the procurement procedure

Check the result of the procurement timely and also analyze the direction of construction in comparison to its deadline. If anorganization is not having these documents then it will cause an extra workload and also cause pressure on workers to meet the deadline (Rustiarini, et al., 2019).

Evaluation criteria

The copy of the evaluation process that has been used for the product and service in the current project is the performance report and the construction data based on the current project.

The evaluation consists of the service that has been acquired is ADCO Constructions Sydney development to provide the best result to the client.

The evaluation criteria which were selected for the successful Road construction are as follows – 1 financial stability, 2 capabilities of management, 3 capabilities of technical, and 4 past performance.

Yes, the criteria which were being used in finding the right Road construction are indeed helpful because the result that they produce has moved the project in the right direction.

The project manager and the ADCO Constructions Sydney developers along with the important stakeholders are involved in the process of evaluation criteria.

 

Evaluation Criteria

 

Weighting

 

Proposal 1

 

Proposal 2

 

Proposal 3

 

Rating

 

W    x    R score

 

Rating

 

W    x    R score

 

Rating

 

W    x    R score

 

Ability             to commence in accordance with project

 

timeframe

 

2

 

3

 

6

 

4

 

8

 

3

 

6

 

According to the designs

 

2

 

3

 

6

 

4

 

7

 

2

 

6

 

4

 

12

 

5

 

3

 

2

 

4

Material used in 3
the construction
 

Sustainable     for environment

 

3

 

2

 

6

 

2

 

3

 

2

 

4

 

Budget of road construction

 

2

 

1

 

2

 

3

 

2

 

5

 

3

In the course of a tender, numerous documents are cteate. Some of the evaluations standards for bids have previously been reviewed. Two further important documents that come out of the selecting process are

  1. The report on the selection process thet lists the bids that were considered for shortlisting and suggests who shoud be chosen as the preferred
  2. The contact will specify the goods and services to be delivered the requirements that should be met or upheld,the terms and conditions, schedules for payment and the procedures to be followed in the event of a disagreement.

The documents which have been used for the evaluation are the performance report, risk report, etc (Vitasek, 2016).

Selecting the best supplier

The best supplier for the road construction that is very important for the construction because the material that is supplied by the supplier is for the road construction because the quality of the material is required will be best because the construction of road depends on the material and the machinery for the construction is important. Recognize the distinctions between key suppliers, who deliver necessities for your company, such as high-value raw material and non-strategic supplier,who offer low value items like office supplies. The former group will require significantly maximum time to choose and manage than the latter group.

Important key stages in the tender selection process are

  • take time for research – it is essential to select best supplier for tender selection. For best selection of tender we should have enough time don’t do it in hurry and don’t purchage from first supplier until you can’t find perfect supplier.
  • should ask from surroundings-individuals or other companies with first hand knowledge of suppliers might offer you insightful counsel.

3checking potential supplier’s credit- always check to see your supplier has a strong enough cash flow to deliver what you need when you need it.

  • don’t look every time to quality, reliability or fast work is more important.
  • when start just agree with service –prior to doing business, it is good thing to agree with service level so that all parties are aware of what is expected of them.

The person who is in the tender selection process is either the client or the project manager who leads theconstructionand has been involved in the tender selection process.

The documents which are required in the tender selection process are as follows Report of selection

The contracts

  • copy of the tender fee
  • copies of tender acceptance 3 copies of registration

4 copies of the order

The key things to remember while running a competitive tender are as follows Check financial values

References

Increased capacity accessibility Signs of an excellent supplier

The capacity to fulfil requirements 1 Bid less to win high

2 Values of yours must be known 3 Team engagements

4 Offers more than what is asked

The pitfalls that must be avoided in the tender selection process are to know the requirement very well and have data on behalf of it, such as manpower capabilities, etc.

Contract

The important characteristic of a good Road constructionis as follows:

Having a well written, precisely defined contract is not the only thing that contributes to efficient contract administration. To ensure a successful process of contract management, it is important to take the time to plan how the contract will be handled.

  • curiosity
  • humilities
  • self-awareness

The assistance that requires in writing a good Road construction is as follows 1 date of the Road construction

  • names of all parties involved
  • all key definitions with the terms

The disadvantages of poorly written Road construction sometimes lead to the ruin of businesses and that’s why it became very important to make sure that the Road construction which has been built up is well written and does not lead to the downfall of the project in any way

Contract management

experience

the activities , papers, policies, and procedures,strategy.

performance of contractor. In addition by showing these reports to the project manger and senior officers.

daily contract report based on the development of the app

the project manager with the other staff.

job with excellence and we get good quality work as well.

going on side by side has led to the major success of the main task and that’s how the project ended well. Nothing is going wrong with the project.

Dispute resolution

I received a complaint about a wrong signs on the roads done by contractor and in addition contractor and me and some of contractor’s worker were involved in this dispute.

I could try mediation, which entails meeting with your contractor and a neutral third party who assures that both you and your contractor understand all of the facts involved. The mediator will assist both of you in reaching an agreement that will hopefully restore your working relationship. Alternatively, you could seek arbitration, in which a neutral third party hears all of the facts, listens to both sides of the dispute, and renders a ruling that is binding on both you and your contractor.

An informal discussion is an excellent technique to start addressing the conflict. This may be sufficient to clear up any misunderstandings and allow you to address the issue swiftly. If not, you must be willing to compromise. When dealing with the situation, make sure you understand what it is and that you convey it effectively to my contractor.

A talk can resolve the dispute, but if required we should pursue alternative conflict resolution (such as mediation or arbitration).

I ask from my team members to solve the dispute by conversation or to tell the problem to senior officers.

.Reviewing Contract and procurement

 

  • First we have to describe an aim of feedback – we have to dicide that what’s the goal of feedback such as we want to know the quality of work, timeframe of work, and what was our mistakes so that in future we will not repeat those mistakes. And we can give more quality of
  • the second thing is that we have to identy the true and right feedbackers as project manager I can receive those feedback from my colleagues, co-worker. Senior offers, team members and managers as well.
  • questions for team members- for feedback we have to create some questions like how can I do better in next time?
  • we have to ask about feedback in the right way –when the time will come to take feedback,accept it with broad mind. We have to take both negative and positive feedback and work on it. So we can work better in future.
  1. If we are taking feedback we should work on it with a strong commitment and follows up.

The review process which has been used forcontract and procurement is as

  • knowing the level of authority
  • determine the cost
  • doubt check
  • verifying the Contract

There are different types ofconstructionthat have been done oft most of the construction is for app development and the redevelopment of buildings and constructions and apps.

The methods which are used to review the contract and procurement are as

  • audit of procurement
  • meetings review
  • team interviews and meetings.

The contractors performance was very good as the result was satisfactory and all the needs have been accomplished in the given timelines and by considering all the construction which was provided it was more than satisfactory.

Some problems have been identified in the review process the feedback which was given is not taking on time but the overall performance has resulted in a positive direction

The recommendation for future Contract and procurement is to be realistic and manage the documentation very carefully everything else is the basic way of doing things as they happen usually.

Procurement plan Performa

The essential materials, tools, and equipment – the engineers and architects

The best personnel and technologies are needed by a high-performing team in order to complete the construction project on schedule.

Quantity needed: The amount needed is closely related to the task’s evaluation procedure in terms of quantity.

Time of service required – In order for the construction to be completed on schedule, the necessary tools, materials, and equipment must be available before work begins.

Where to get good service: choose a location based on your needs and the instructions you’ve been given.

How the road construction is managed: The road construction is managed by periodically examining it on behalf of the construction data and project report to check the direction of the construction and make sure that it is actually finished by the deadline.

How the road building is completed – when both parties have agreed to the terms and conditions for completion of any road construction between two parties, preventing future conflict over it

 

What goods

 

/service s will be required

 

For which unit or team will they be needed?

What requiremen

 

Quantit y or amount

 

?

 

When will the goods/services be required?

 

Where will the goods/services be obtained?

 

How    will the contract be managed

 

How    will the contract be finalised and

? ts         do            they ? reviewed

 

?

have?
 

Concrete

 

Workers

 

2 Tones

 

During construction

 

Supplier

 

Through the agreement that      is signed with the supplier

 

Through the agreement that                              is signed with the                   Client &            project manager

 

Sand

 

Workers

 

3 Tones

 

During construction

 

Supplier

 

Through the agreement that      is signed with the supplier

 

Through the agreement that                              is signed with the                   Client &            project manager

 

Tar

 

Workers

 

2 Tones

 

During construction

 

Supplier

 

Through the agreement that      is signed with the supplier

Through the agreement that                              is signed with the                   Client &            project
manager
 

Binders

 

Workers

 

1 Tones

 

During construction

 

Supplier

 

Through the agreement that      is signed with the supplier

 

Through the agreement that                              is signed with the                   Client &            project manager

 

Gravels

 

Workers

 

3 Tones

 

During construction

 

Supplier

 

Through the agreement that      is signed with the supplier

 

Through the agreement that                              is signed with the                   Client &            project manager

 Evaluation criteria and weighting system proforma

The 4-scale rating system in which

  • is for exceeding the criteria Australian Standards of Road 3 is for meeting the criteria Australian Standards of Road

2 is for partially meeting the criteria Australian Standards of Road

1 is for does not meet the criteria at all Australian Standards of Road

It has been described below as per the performance indicator so that the construction could be analyzed and the direction of the construction in which it is going can be checked so that the basic requirement must be fulfilled and the project gets completed by the asked deadline.

Ranking them based on the outcome makes it easier to understand the staff to analyze it and take necessary action based on it.

 

Evaluation Criteria

 

Weighting

 

Proposal 1

 

Proposal 2

 

Proposal 3

 

Rating

 

W        x            R score

 

Rating

 

W        x            R score

 

Rating

 

W        x            R score

 

Ability to commence in accordance with project

 

timeframe

 

2

 

3

 

6

 

4

 

8

 

3

 

6

 

According to the designs

 

2

 

3

 

6

 

4

 

7

 

2

 

6

 

4

 

12

 

5

 

3

 

2

 

4

Material used in 3
the construction
 

Sustainable            for environment

 

3

 

2

 

6

 

2

 

3

 

2

 

4

 

Budget of road construction

 

2

 

1

 

2

 

3

 

2

 

5

 

3

References

Behrangrad, M. (2015). A review of demand side management business models in the electricity market. Renewable and Sustainable Energy Reviews, 47, 270-283.

de Araújo, M. C. B., Alencar, L. H., & de Miranda Mota, C. M. (2017). Project procurement management: A structured literature review. International journal of project management, 35(3), 353-377.

Kavanagh, P. (2016). A case for negotiated performance-based Road constructioning rather than competitive   tendering   in   government   public   transport   (bus)   service procurement. Research in Transportation Economics, 59, 313-322.

Morledge, R., Smith, A. J., & Appiah, S. Y. (2021). Building procurement. John Wiley & Sons.

Naoum, S. G., &Egbu, C. (2016). Modern selection criteria for procurement methods in construction: A state-of-the-art literature review and a survey. International Journal of Managing Projects in Business.

Rustiarini, N. W., Sutrisno, T., Nurkholis, N., &Andayani, W. (2019). Why do people commit public procurement fraud? The fraud diamond view. Journal of public procurement.

Selviaridis, K., &Wynstra, F. (2015). Performance-based Road constructioning: a literature review and future research directions. International Journal of Production Research, 53(12), 3505-3540.

Vitasek, K. (2016). Strategic sourcing business models. Strategic Outsourcing: An International Journal.

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