Assignment Sample on BEN704 Procuring Infrastructure City Centre Living
Introduction
A procurement report to facilitate the public and private investors involved in the “Belfast City Regeneration” project was developed. As a Strategic Procurement Advisor, guidance for the conceptualization of procurement models for the regeneration project was offered through this report. The models were designed in such a way to support maximized residential investments and bring about improvements to the NI economy. Procurement solutions were delivered through this report to fulfil the strategic objectives of the key stakeholders involved in this urbanization project. Thereafter variable challenges while procuring the residential investments were evaluated in this report. A reflective log highlighting individual performance and methods to improve the procurement strategy was also delivered at the end of this report.
Critical evaluation of procurement models for infrastructure projects in Belfast Regeneration and Investment strategy
As per case study of Belfast regeneration and investment strategy, involvement of suitable procurement models is necessary so that housing properties can be improved followed by effective agencies. A crucial note identified from this case study is that it lacks availability of housing stock and this result in requirement of tenets, connections for engaging communities in Belfast city. In this regard, it can be suggested that application of relevant models would help Belfast city to build and come up with advanced forms of infrastructure. According to Abowen-Dake et al. (2020) analysing “social value construction procurement (SVCP)” helps to make better ideas for infrastructure projects in different areas. Similarly, in case of Belfast regeneration and investment strategy for housing infrastructure projects, regulation of “social value construction procurement (SVCP)” practices would help maintain good quality.
Public–Private Partnerships traditional
Public–Private Partnerships refers to present contract that remains within Government and a private party during a construction project. Reviewing procurement activities followed by several centre underdeveloped occurrences of actions and accordingly presents outcomes. According to Lee and Kim (2018) considering public private partnership help construction project to maintain proper norm as it provides positive outcome under a level of traditional procurement. Application of this procurement model helps in managing a series of outcomes with ease and focuses on user free from revenue which is obtained by private party. As stated by Davies et al. (2019) involvement of delivery models innovation helps to improve process procurement conveniently. In other words, regulation of process model helps in delivering procurement activities by meeting aims and objectives of infrastructure projects. Contrarily, note that considering process model will not be effective in managing procurement policies for seamless delivery of infrastructure projects but helpful for managing sets of “buying procedures”. In this respect, it can be suggested to Belfast regeneration and investment strategy that taking support of the process model would be beneficial for housing infrastructure in Belfast. Apart from this, private sector rents in this area lack availability of housing stock, due to which residential living needs to be upgraded in Belfast.
Target of Belfast regeneration and investment strategy is to initiate a minimum of 6000 numbers of new houses followed by an estimation of delivering 400 units per year. This would help Belfast to make changes in economic and social lifestyle of people redesign in Belfast. Eckersley et al. (2021) established that imposed funding leads to present reasonable pricing options for which procurement activities are delivered hassle free. It eventually results in a projection of good relationships with suppliers. Traditional procurement models distinguish designs from constructions and consultants are appointed to conceptualise a project in detail. The consultants ensure that cost breakdown structure does not exceed permissible limits and the construction project is monitored as it progresses. Chen (2021) suggested that construction works are accurately priced by contractors and risk is transferred to them under detail & build approach. An enhanced visibility of investment is experienced and cost proposal is aligned as per client demands.
D&B management procurement
Design and build management procurement refers to active participation of main contractor and helps in suitable designs for construction projects. For instance, application of design and build management procurement helps procurement teams to be clear with approaches that are required to be imputed for managing activities based on housing infrastructure in Belfast. Zhang et al. (2019) explained that regulation of “building information modelling (BIM)” eventually helps in improving infrastructure projects as per estimated budget. From this, it can be said that BIM benefits in managing and creating information related to establishment of buildings. Through the support of Design and build management procurement, construction projects received outcomes as per requirement of maintain contractor, due to which it would become easier for constructer to build innovative projects (DESIGNINGBUILDINGS, 2021). In the case of Belfast housing infrastructure and investment strategy can be developed by D&B procurement model. Similarly, for housing infrastructure projects in Belfast taking help from policy model and helping improve infrastructure regeneration followed by investment strategy.
Procurement management activities would become relevant for procurement departments in Belfast housing regeneration and investment strategy. Besides, an increasing population of communities such as Carrick Hill or Donegall Pass needs proper housing in Belfast, which can be improved by applying relevant procurement models like policy model. However, procurement management leaders are required to be careful regarding dealing with suppliers for contract scope and price fixation as an application of policy model limits in understanding relations.
Successful approaches by involving well designed procurement functions, which are operated by a strategic model. As opined by Manu et al. (2019) presence of “value for money”, transparency along with accountability helps in delivering procurement activities with ease. Alignment of procurement decisions for Belfast would help in managing housing infrastructure and help in optimising utilisation of effective expenses. Application of this model would also support in reducing potential risk from supply chain. In this manner, housing infrastructure would be profitable because procurement activities can be improved as per requirements. So a primary contractor would be appointed to design and construct a project. However a traditional contract is in contrast of this model as consultants are appointed to design a project and only after this stage a contractor is appointed. As per Grabbe (2021), appointing a primary contractor ensures that a single point of responsibility is sustained and the model are applicable to every building type. Eventually a project is constructed in a timely manner and eradicates adversarial conditions.
Integrated Procurement Model
An integrated Procurement model is aimed at automating the process of procuring supplies for any construction project. Based on opinions of Davis and Cartwright (2019), an integrated procurement model enables easy access to supplies and clients could order, approve and trace the orders that were made. So construction project of Belfast would take place in an agile and transparent manner. Clients would get a comprehensive idea about the entire construction process and since visibility would be higher it becomes relatively easier for them to manage finance. In order to develop an integrated procurement system, the framework is linked to systems like ERP system, Vendor management system, Human Resources of an enterprise.
Target cost in construction
Target cost of the Belfast construction project is to be fixed at an earlier stage and cost savings are shared as per agreed formulae. Target cost would be aimed at developing a financial incentive that leads to a firm cost control and there would be no scope for penalties. Both John’s and penalty payments are capped together to avoid any scope of adversarial behaviour. Kadefors et al. (2021) stated that target costs for a construction project stands for the capital required by contractors to complete a project comprising all physical work, price of commodities, sub contractor costs and preliminary costs. Temporary expenses would also be included in this breakdown structure.
Mutual Investment Model (MIM)
MIM model was developed by Welsh Government to fund major capital projects. As suggested by Whitfield (2020), MIM model was primarily designed to ensure that scarcity of capital funding is not experienced while constructing a public project. It is an innovative way of investing in public infrastructure and is aimed at improving public services based in Wales. Application of MIM funding model would involve building and maintenance of this public infrastructure. The government would pay a certain capital to private patterns to construct, maintain and finance the entire project. Assets would be transferred to public ownership at the end of this contract. In addition to this, private partners who are involved in this model are expected to develop apprenticeships and traineeships for local communities of Wales.
Selection of appropriate procurement model for housing infrastructure in Belfast Regeneration and Investment strategy
Among all other models of procurement, selection of procurement operating model would be suitable housing infrastructure in Belfast regeneration and investment strategy. McAllister (2020) asserted that cost plays an important role in establishing procurement activities and accordingly providing specific outcomes. It can be justified that selection of above stated procurement model helps in managing value capturing that results in business partnering, sourcing, and contracting. According to Fransen et al. (2018) boosting investment helps to develop categories of procurement in businesses, due to which it becomes easier for entrepreneurs to make profits. Utilising these procurement models would result in maximising proper investment forms to deliver sustainable housing infrastructure in Belfast for reading communities. In this manner, loopholes like lack of housing stock availability would be addressed and helps engaging connections within cities inner communities. Besides, this would support in meeting a target of procurement team based on establishing a new 6000 houses over next 15 years and deliver 400 units per year for better residential markets in Belfast.
Regulation of procurement operating model helps in presenting invoice of procuring, from which it helps in identifying approvals of purchase following other activities of procurement. For instance, procurement team in Belfast would be able to keep records in form of invoices related to housing regeneration infrastructure along with investment strategy. Belfast would receive change in housing infrastructure as an application of this model enables supplier management well and thus helps in managing supply of resources. Additionally, joint innovation results in “cost reduction and service quality improvement” are essential parts of procurement operating model that would assist housing infrastructure for Belfast in a better way. From this, it helps to analyse that selection of procurement operating model would provide beneficial changes towards housing regeneration and investment strategy.
Appropriate procurement solution for meeting strategic objectives of key stakeholders
In Belfast procurement team, internal stakeholders are financial department, team members, managers, team leaders, and employers who would take initiative for regenerating housing infrastructure in this city. External stakeholders for this housing infrastructure would be government, local community, organisational agency and people, suppliers and labourers reading in Belfast area. From case study of Belfast in 2015, found that city had 70 properties, which referred to low availability of rented housing stock. In terms of developing housing stock and change of residential area in Belfast, it is necessary to initiate engagement of procurement stakeholders. As asserted by Frantzeskaki et al. (2020) frequent engagement of stakeholders helps to reduce chances of occurring issues and results in effective approaches to manage activities on a basis of procurement. Stakeholder objectives consist of completing assigned activities within an estimated reasonable price followed by a stipulated time. Besides, Belfast has experienced divergence followed by an increasing number of communities in the city centre. Several schemes have depicted high quality of urban living, despite Belfast’s city centre lacking in availability of housing stock. Thus, this city centre in Belfast is considered as an “underdeveloped residential market” which requires active participation of stakeholders to make changes as per accordance. Target costing for execution of Belfast would required 100, 00, 00 GBP as it would be regenerating housing stock for future generation. Other than this, taking support of public private partnership (PPP) would help this Belfast housing regeneration project as it would help in retaining long term relations among government and private party. In terms of housing regeneration, private and governmental support would help via presenting adequate funding and risk management responsibility.
Initiating changes in Belfast’s city centre would be managed by increasing understanding of the business about procurement that initially delved relationships with internal stakeholders. In terms of managing stakeholder relations well, procurement activities need to ensure that objectives are well understood and accordingly create drivers to meet its objectives. As per case scenario of Belfast’s city centre housing infrastructure, objectives are; to initiate a minimum of 6000 numbers of new houses followed by an estimation of delivering 400 units per year. This could equally be helpful in increasing availability of housing stock in Belfast. Cui et al. (2018) stated that implementation of stakeholder theory manages engagement of stakeholders well to meet strategic objectives in procurement operations. Thus, application of stakeholder theory would be helpful for managing housing infrastructure in Belfast. Additionally, this theory focuses on sustainability of stakeholder wealth so that it can be effectively utilised for procurement operations in city centre of Belfast. Housing regeneration along with investment strategy would be suitable for procurement activities in Belfast and availability of housing infrastructure would be met. Estimation of £50m is to be initiated for making housing infrastructure changes in Belfast, which would be potential for making changes to economic and lifestyle conditions.
An increase of visibility on a part of procurement activities is highly essential for engaging and meeting objectives of stakeholders for Belfast city centre procurement operations. This would also help in initiating cost saving for managing challenges and accordingly set key performance indicators (KPIs). For instance, Belfast city centre’s KPIs would be sustainability requirements for housing infrastructure, ability to manage risk and supplier innovation. From this, it is to be understood that such types of initiatives would help Belfast procurement team to meet its objectives regarding making changes in housing infrastructure. This would uplift its living standard along with economic situation in Belfast.
Identification of challenges to stakeholders in procuring projects
The target of the “Belfast City Regeneration” project was to develop 6,000 new homes in the city centre within the next 15 year period. The project needs to have the potential of delivering 400 residential units every year and would require an investment of circa £50 million. The “Investment Procurement Team” was established with the motive of guiding public and private investors involved in the funding, delivery of residential projects in Belfast. However, the stakeholders of a procurement project are prone to challenges that affect the overall outcomes of the process. In the views of Wesseling and Edquist (2018), the Management of “RFx” process becomes a hefty undertaking for the procurement team. RFx is an acronym utilized in the procurement landscape and involves “Request for Proposal”, “Request for Quote” and “Request for Bid”. Issuing an RFx helps the stakeholders to gain qualitative and quantitative information from the suppliers. The procedure is rigorously implemented and becomes a challenge for the support resources associated with this project.
“Belfast City Regeneration” project requires establishment of 400 residential units annually for the next 15 years to address its residential or housing complex crisis. A sense of urgency is maintained and added pressure is exerted on the stakeholders to deliver outputs within the agreed timeline. A small delay can substantially increase the time needed for sourcing required investments and materials. Besides, the quality of a project could get affected if urgency is exerted to deliver the outputs within the fixed schedule. If lead times are more than what was anticipated, the entire regeneration project could be thwarted. It would indicate that lack of information sharing activities throughout decade and half long time span would face obstacles in decision making and problem solving attributes for stakeholders of “Belfast City Regeneration”.
The “Belfast Regeneration Project” is a particularly large project that involves several components and moving parts. According to Adusei (2018), selection of the right tools is essential for a team to manage the components of a project. Therefore finding the right tools to attain desired outcomes of this project could be a challenge for the procurement team and stakeholders. Furthermore, a wrong set of tools could undermine the overall quality of a project and it becomes a challenging situation for any team. Management of Supplier contracts, regulation of maverick expenditures, and compliance issues can further complicate the procurement situation. Constant evaluation of project management activities along with effective management of associated budget, human and physical resources would create severe challenges for stakeholders in “Belfast City Regeneration” project monitoring.
Stakeholder interests may have a direct or an indirect impact on this regeneration project. It is challenging for the procurement team to coordinate and manage the interests of various stakeholders. It deters the possibility of a successful and well-executed project. Besides, convincing the private and public investors to direct funding towards the regeneration project is also challenging for the procurement team. It is thereby necessary to gain access to accurate data and make well-informed decisions regarding this project. Communicating the data with the necessary stakeholders can be a strenuous task as they might not be available at the same time. The decision-making process can get affected if timely communication is not maintained across the stakeholders. Since the project is estimated at £50 million, it would be a rather difficult task for the procurement team to maintain the expenditures under budget. Cost savings may result in omission or minimization of parts of this regeneration project and eventually affect its outcomes. Hence, it can be asserted that ineffective alignment between triple bottom line objectives in maintenance of project activities would disrupt stakeholder intention and interest management.
Clients are external stakeholders of a project and it is necessary to understand their perspective about a building. It is suggested that clients have a different perception about buildings and this notion is to be recognised both by the clients and consultants of a project. Contradictions in their perception and decisions could harm the equilibrium and accordingly needs to be managed in an efficient manner. Sutrisna and Goulding (2019) suggested that clients are not unitary and to understand clients it is necessary to understand an organisation first. Every organisation posses an overriding strategic aim that is focused at maximising their profits. Requirements of an organisation in terms of build environment could be achieved by appreciating client expectations and assumptions made during this process are derived from knowledge and past experiences. Consultants may find it difficult to align an operation as per clients expectations so it is recommended to take decisions which are somewhat related to their expectations. In this way stakeholder perception is aligned with construction activities and maintaining a sense of transparency ensures stakeholder engagement.
Individual performances and reflection on delivering methods for performance improvement
In my opinion, the “Belfast Regeneration Project” is a particularly large project and the procurement team faced difficulty while collecting accurate data to support the operations. Acquiring the necessary funds from the public and private investors had become difficult as the stakeholder’s interests were contrasting in nature. According to my opinion, coordination and management of stakeholder interests were not achieved accurately. All these factors disrupted the overall outcomes of this regeneration project and the procurement model failed to attain efficient results. By scrutinizing the identified shortcomings of this project, I was able to design a recovery strategy for the regeneration project. I was able to gain insights from the “Practitioners guide to Leveraging Private investments” presented by the World Bank Organisation. The regeneration programs from major cities helped me to develop the recovery strategies that could tackle the identified challenges with funding. For instance, Buenos Aires in Argentina was able to convert Puerto Madero, unused 170-hectare land into a waterfront neighbourhood (WORLDBANK, 2017). The city utilized a “self-financing urban regeneration initiative” and gathered a substantial share of the investments by selling off the land to citizens. Therefore the burden on private and public investors could be reduced by selling off the lands in Belfast, Northern Ireland. In this manner, the high budget of £50 million or more could be gathered within the decided timeline. Besides, maintaining constant communication with the stakeholders ensures their engagement throughout the entirety of this regeneration project.
Conclusion
Variable challenges that stakeholders of the “Belfast Regeneration Project” might encounter were evaluated through this report. Firstly the “RFx” process was identified as a strenuous undertaking for the procurement team. Delivering the outputs within the decided timeline could exert pressure on the variable components and overall outcomes of this project could get affected. Besides, the stakeholders were identified with variable interests and it would become difficult for the procurement team to manage, coordinate their interests for the regeneration project. As a strategic procurement advisor, a recovery strategy was suggested by scrutinizing the identified challenge. The burden on the investors could be reduced by selling off the lands to NI citizens and maintaining constant communication ensured stakeholder engagement for this project.
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