KB7035- Procurement and Supply Chain Management Assignment Sample

Module code and Title: KB7035- Procurement and Supply Chain Management Assignment Sample

Introduction

Riverside Sunderland is preparing the expediencies that help to maintain the important part in constructing the houses to develop 1000 houses. The important part is to maintain the plan in the way to develop the exigencies to increase the potentialities in the manner to introduce 2500 people with houses. The important power to maintain the same is derived in the manner that introduces the consequences to maintain the same.

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The report helps to introduce the planning in a way to develop the consequences in the manner so that the population of 2500 can get the maintenance of the same and this helps to maintain the scheme of helping the people by the government. The policies that help the population are to be maintained in a manner as to make the proper plan and this report explains the consequences in a significant manner that contains the challenges or issues and the strategies to overcome the same. Therefore, the report enumerates the proper planning and the roadmap of the Riverside Sunderland in the manner to increase the potentialities of the planning.

Detailed Procurement Plan for the Client

Client’s Organisational Characteristics and Project Characteristics

Sunderland city council proposed a plan for 1000 home for the developing community facility and infrastructure for a population of 2500. Accordingly, this implies that at Stage 0, the carbon neutral community has been strategically defined and appraised prior to go into the creation of a detailed briefing. This has helped maintaining sustainability in utilising optimum resources. Now, at stage 1, the design brief helped in listing down the tasks necessary to carry out the preparation activities while briefing properly in tandem and the stage 2 completed the conception stage.

At this point, with the outbreak of the pandemic caused by novel Covid-19 has disrupted further progression and development. Now, stage 3 requires development of designing and technical layout preparation with critical understanding of cost components involved.By stage 4, as the designing work reaches completion, there might be design queries emerging from the on-site activities initiated during the stage 4. Thus, stage 4 is a crucial step wheredesigning work as initiated by the specialist subcontractors and suppliers recognises the necessity of using a Design Responsibility Matrix. While stage 5 lays down the construction maps aiding the practical completion along with mobilisation, stage 6 marks post practical completion by handing over and closing out the maps.

As broadly relevant to the former stages, the final stage 7 necessarily involves post-occupancy evaluation with subsequent review and monitoring of project performance delivered (de Araújoet al., 2017). This generally limits the role of a procurement specialist as promised deliverables are now in client’s hands yet during the in-use period of community building, the chances of arising new duties must not be ignored.

Suitable Procurement Management Layout

The traditional approach is a tripartite arrangement consisting of a client, designing consultants and a supplying contractor (Shen et al., 2017). Afterwards, as constructors submit the tenders on based on a single-stage competitiveness, the consultants will agree on valuations and payments (Ferri et al., 2016). The above process flow presents the first stage of identification that involves the preparation of the Statement of Work (SOW), also known as the Terms of Reference (TOR).

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This will be respectively followed by successive stages which are: determination of the project estimates, preparation of bidding documents. Sending out invitation, receiving bids by the suppliers (based on negotiation and quality assurance) and finally signing in contracts.Here, the procurement management procedure has been deemed to involve a single one-off purchase. All the applicable expenses and points of remarks should be documented for future reference and use.

Thefollowing procurement thresholds as has been listed down below are kept in consistency with the non-negotiable budget of £135m. A handful of significant points should be noted here. The preparation of the thresholds has been done in alignment with the minimum requirements that can buy the market engagement (Salah and Moselhi, 2016). Now, market engagement covers cost of legal tender, the minimum number of quotes, and the required type of the quotes and so on (Kisomiet al., 2016). Additionally, the thresholds indicating procurement levels has been based on the “total” or “gross” value of each procurement activity.

Thresholds for Procurement Minimum Market Approach Requirements for Minimum Sourcing Documentation
≤ £25,500,000 Either one verbal or one written quote to be sought As per the purchasing proves laid down
> £25,500,000 and ≤ £40,000,000 One written quote Short Form Sourcing Layout
> £40,000,000 and ≤ £135,000,000 Three written quotes Short Form Sourcing Layout
≤ £135,000,000 Tender Procedures 1. Souring Planning Documentation

2. Quote or Tender Template

3. Record Form for Submission

4. Evaluation Plan

5. Procurement Evaluation Report

 

Suitable Standard Form of Contract

A standard form of contract in the country does not allow negotiating between them and this is a strict form of law that is regulated within the country. The important notice is that this contract directs the party to take the contract or leave the contract. It does not allow remaining in a stagnant position and maintains the equilibrium throughout the strategies of the company.

However, it is to determine that the strategies to maintain the performance are maintained by the acquisition of the consequences (Cameron and Hillier, 2021). It allures the exigencies to develop the maintenance of the consequences in order to maintain the same develop the consequences and to maintain strict rules amongst the parties. The important part to develop the same is assured in the legal aspects of the company’s growth and these consequences help to determine the same.

This is an insightful way to ascertain that the property owner does not exceed the given contract price of £135m. Thus, any excess of material or/and labour costs above this stipulated price will be covered by the hired contractor. This cost-plus contract will contain the unalterable clause limiting the total costs to the guaranteed maximum price of less than or equal to £135m.

Thus, a final contract price will help the acceleration of the bidding process making thefinancing procedures easier as the respective lenders and creditor will have prior knowledge of the maximum amount allocated for costing the project (Okeetal, 2018). The important factor of this contract is that the contract maintains by the specified contingencies and this maintains to development of the exigencies in this context. The important part of the contract is to maintain the consequences that maintain to improve the consequences in this part of the agreement. This is a fine contract with strict liabilities and the important part is to develop the consequences in the way to determine the possibilities of the restrictions (Reed et al. 2020).

This form of contract maintains the exigencies in the way that maintains the equilibrium of the company and this maintains the importance that describes to excluding the liabilities of the same. It is to define that the importance of the contract is described in a manner to increase the possibilities of maintaining the costs and legal documents in a proper way.

The opportunity of the giant companies gets enhanced by this form of contract as the weak company gets exploited by the strict rules. An important matter imports the possibilities to develop the exigencies of the company. The important manner to develop the consequences in the manner is to be developed by the contract and the important part to maintaining the same is in consequence with the important matter to develop the consequences (Wilkie et al. 2020).

Therefore, it can be stated that the important part of maintaining the contract of Riverside Sunderland is to be performed in the consequences to develop the strategies to construct the planning of the project. The importance to maintain the same is derived from the contingencies that develop the importance of the same are to be performed by the parties to the contract.

“Development Funding Agreements” are to be signed by the parties of the Riverside Sunderland project in order to introduce the project at the Vaux site as well the fit-out in the City Hall. The importance of the agreement is thus maintained in the manner to develop the contingencies by this funding agreement.

It is also to note that the project also requires two more DFAs to be signed by Siglion Developments in the proper place of the project infrastructure (Farrell, 2021). The maintenance of the standard form contract is delivered in accordance with the effect to deliver the contingencies to develop the public sector hub and new civic center within the project. After six months from the sanction, L&D makes the agreement for funding on the same and this maintains the actual consequences within the project.

Strategies

Suitable Tendering Strategy

KB7035- Procurement and Supply Chain Management Assignment Sample 1Figure 1: Process for Tender Procurement for Organisation Buildings Project (Source: Learner)

The strategy to tender the same is to be maintained in the manner to perform the competencies and this must be adjoined in the manner by forming a procurement team. Evaluation criteria must be formed soon after that so that the tender can be developed. PQQ long-list is to be prepared in accordance to maintain the same and then the tender must be issued (Sunderland.gov.uk, 2021). The meeting to brief on the tender must be held soon after that to continue the consequences. Initial evaluations, short listing of suppliers, presentations, selection, negotiations, and contract awards are the next steps in completing the tender in a proper way.

Suitable Pricing Strategy

Management Contracts

It is to note that the important part to mention the same is described in a manner to increase the importance of the management of the project authorities. In order to maintain financial condition in the manner to construct the project of Riverside Sunderland, the important part to increase the same are maintained in the part to increase the potentialities.

The important part to maintain the same is described in the part to improve the managerial part of the project (Rtpi.org.uk, 2021). The management of the project can only maintain the important part to describe the financial restriction and this may continue to restrict the conditions. The management of the project is held to maintain the substances to develop the possibilities and this includes the potentialities of maintaining the finance department to reduce the cost of construction. Therefore, the managers of the developing project management are required to maintain the substance to control the same by implementing certain policies.

Rollover asset

It is to mention that the management of the project deals with certain strategies to maintain the stakeholders’ information in a proper place. However, the important part to mention the same is described in the part to maintain the same is described in the context of the project. The learner recommends maintaining the strategy to roll over the asset that includes the substances in accordance with the effects of the same.

The importance to maintain the same is to be prescribed in the manner to find the substances that the management of the project may maintain the asset. In order to maintain the financial condition, the important part is to follow the substances that are described in a manner by the management (Investnortheastengland.co.uk, 2021). It is to note that the important part to mention the strategic part is the consequences, which allow the substances to develop the financial conditions. The assets that are already in the storage in the package of the project are the first thing that needs to be rollover as it can reduce the cost of the wastage can be reduced.

Additional capacity

The maintenance of the financial condition of the project is to be allowed by the contingencies and this may allow getting the additional capacities of the terms and conditions of the project. Thus, the important factor that may help to maintain the financial condition of the project can be developed by the additional capacity of the project. It is to mention that if the project has the additional capacity to maintain the development, it can be maintained in the way to perform the financial condition.

The importance to maintain the financial condition is derived from the substances and thus it is important to mention that the substances to maintain the same by the additional capacity of the project management describe the conditions (Hilorme et al. 2019). The conditions are described in the manner to describe the substances to perform the same in a manner to describe the competencies. It is equally important to maintain the substances are performed in a way that the capacity may get active by the management of the project.

Equity investment must be limited

The investment of the equity is limited by the exigencies and this may describe the investment policies of the same in a manner to perform the strategy in a different way. It is the consequence, which is delivered by the important part of maintaining the consequences, and this may allow deriving the performance (Kartbayev and Kerimakym, 2021). Therefore, the learner states that the management may control the equity investment and this may limit the financial condition and can reduce the certain costs of the construction.

There is no recommendation or strategies that are enumerated in the report which shows the actual reduction is 15% but it can maintain the growth of the financial condition by reducing the same. In accordance with the same effect, the important parts to mention the consequences are described by performing the equal substances of the managers.

Analysis of Covid-19 Impacts and Mitigation

The economic challenges in the current year havecontinued to mount up as wrought and grappled by the pandemic. These are times of uncertainty where the future is not regular and clearly predictable. Evidently, the capital projects have particularly been crashed largely withongoing absenteeism of workers, disruptions in the supply-chains as well as deteriorating confidence of the investors. These shakes and perturbations require new and advanced levels of agility, adaptability and resilience from project owners. These challenges are as follows:

Safety Measures

Protecting People

The development of a flexible and redeemable contingency system will enable the project owners and managers consider an expected set of variables (seasonal changes) over the one-year course of the project. Devising a comprehensive response plan considering unexpected subsurface conditions, profoundly disruptive events, severe weather events, changing policies or temporary shutdowns of supply chains can enable owners to adopt the right response strategy (Ogundeet al., 2017). Furthermore, the smaller crew sizes might be a problem as it tends to engender an attitude of “make do” amongst the workers leading them to strains, sprains and fatigue. Finally, project owners must monitor workers’ morale, stress and mental health conditions while livelihoods are now being sustained at stake.

Protecting the Project

KB7035- Procurement and Supply Chain Management Assignment Sample 2Figure 2: Project-improvement Exercises and Opportunities (Source: Mckinsey.com, 2020)

A number of potential actions such as the payment-deferral plans, negotiations with vendors for availing discounts and aggregating demand can be mentionable. In addition, the launching of a value-improvement exercise will enable the project owners sorting out potential risks on the ongoing projects and opportunities as relevant to the COVID-19 marketplace. Thus, the project owners will be able to justify the conditions and assumptions jeopardizing the project case that led to the change of previously determined execution-strategy decisions (Heagney, 2016).

 Protecting Performance

KB7035- Procurement and Supply Chain Management Assignment Sample 3Figure 3: Supply-chain Nerve Centre (Source: Learner)

The performance of an undertaken project can be delivered with cent percent certainty with the help of building a supply-chain nerve centre. This supply-chain nerve centre is expected to assure risk transparency across the three levels: tier-one, tier-two and tier-three suppliers (Pheng, 2018). Alongside, a supply-chain nerve centre can help in managing ports, providing useful information as to pre-book logistics capacity (such as rail, shipping and airfreight) and optimizing routes that can be useful (Martínez-Rojas et al., 2016). Thus, identifying the critical parts and the ration parts as required is vital.

Conclusions and Recommendations

In conclusion, it can be said that devising a highly effective and error free procurement infrastructure can be difficult, but it is achievable. The building of infrastructure for this community building project where fast broadband service, net zero carbon, high-functioning laboratory, dining and canteen facilities has gained momentum surely calls for more prominence in the fulfilment of overall development and sustainable growth goals (Rendon and Rendon, 2015). A few recommendations overall discussion can be pinned down in few words:

  1. The assessment of theincreased wrench time is essential due to new procedures of physical distancing requirements.
  2. The planning working model for synchronization between thelogistics and disruptions resulting from spacing crunches, it is mentioned that the part of the recommendation is specified.
  3. Finally, by developing new processes (such as communication amongst the stakeholders) mitigate lack of support and communication on-site. 

References

Banihashemi, S., Hosseini, M.R., Golizadeh, H. and Sankaran, S., (2017). Critical success factors (CSFs) for integration of sustainability into construction project management practices in developing countries. International Journal of Project Management35(6), pp.1103-1119.

Cameron, G. and Hillier, S., 2021. Investigation and Assessment of Sheet Pile Quay Wall Structures at Sunderland’s Riverside Quays. In Piling 2020: Proceedings of the Piling 2020 Conference (pp. 419-424). ICE Publishing.

Darr, W., 2020. Fundamental Issues of Procurement Management. tredition.

deAraújo, M.C.B., Alencar, L.H. and de Miranda Mota, C.M., (2017). Project procurement management: A structured literature review. International Journal of Project Management, 35(3), pp.353-377.

Farrell, T.J., 2021. The Value of the Canterbury Tales Project, and Textual Evidence in the Emendation of Canterbury Tales III. 117. The Journal of English and Germanic Philology, 120(1), pp.93-129.

Ferri, L.M., Oelze, N., Habisch, A. and Molteni, M., (2016). Implementation of responsible procurement management: An institutional perspective. Business Strategy and the Environment25(4), pp.261-276.

Fleming, Q.W., (2019), January. Project procurement management: contracting, subcontracting, teaming. Project Management Institute.

Heagney, J., (2016). Fundamentals of project management. Amacom.

Hilorme, T., Zamazii, O., Judina, O., Korolenko, R. and Melnikova, Y., 2019. Formation of risk mitigating strategies for the implementation of projects of energy saving technologies. Academy of Strategic Management Journal, 18(3), pp.1-6.

Kartbayev, T.S. and Kerimakym, A., 2021. DEVELOPMENT OF A DECISION SUPPORT SYSTEM FOR EVALUATING INVESTMENT PROJECTS TAKING INTO ACCOUNT MULTI-FACTORITY BASED ON THE METHOD OF HIERARCHY ANALYSIS AND GAME THEORY. Вестник КазНУ. Серия математика, механика, информатика, 112(4).

Kaur, H. and Singh, S.P., (2019). Sustainable procurement and logistics for disaster resilient supply chain. Annals of Operations Research283(1), pp.309-354.

Kisomi, M.S., Solimanpur, M. and Doniavi, A., (2016). An integrated supply chain configuration model and procurement management under uncertainty: a set-based robust optimization methodology. Applied Mathematical Modelling, 40(17-18), pp.7928-7947.

Lysons, K. and Farrington, B., (2016). Procurement and supply chain management. Pearson.

Martínez-Rojas, M., Marín, N. and Vila, M.A., (2016). The role of information technologies to address data handling in construction project management. Journal of Computing in Civil Engineering30(4), p.04015064.

McKinsey & Company. (2020). Strategic approach to hospital design and construction cuts cost by 20 percent | Operations in Coronavirus: Leading through the crisis. Available at: https://www.mckinsey.com/search?q=construction+procurement+strategy&start=1&sort=def [Accessed on 17 Nov, 2020].

Nurmandi, A. and Kim, S., (2015). Making e-procurement work in a decentralized procurement system. International Journal of Public Sector Management.

Ogunde, A., Olaolu, O., Afolabi, A.O., Owolabi, J. and Ojelabi, R.A., (2017). Challenges confronting construction project management system for sustainable construction in developing countries: Professionals perspectives (a case study of Nigeria). Journal of Building Performance8(1), pp.1-11.

Oke, A.E., Ogunsemi, D.R. and Adeyelu, M.F., (2018). Quantity surveyors and skills required for procurement management. International Journal of Construction Management18(6), pp.507-516.

Patrucco, A.S., Luzzini, D. and Ronchi, S., (2016). Evaluating the effectiveness of public procurement performance management systems in local governments. Local Government Studies42(5), pp.739-761.

Pheng, L.S., (2018). Project procurement management. In Project Management for the Built Environment (pp. 177-193). Springer, Singapore.

Reed, J., Ros-Tonen, M.A.F. and Sunderland, T.C.H., 2020. Operationalizing integrated landscape approaches in the tropics. CIFOR.

Rendon, R.G. and Rendon, J.M., (2015). Auditability in public procurement: An analysis of internal controls and fraud vulnerability. International Journal of Procurement Management8(6), pp.710-730.

Salah, A. and Moselhi, O., (2016). Risk identification and assessment for engineering procurement construction management projects using fuzzy set theory. Canadian Journal of Civil Engineering43(5), pp.429-442.

Selomo, M.R. and Govender, K.K., (2016). Procurement and Supply Chain Management in Government Institutions: A Case Study of Select Departments in the Limpopo Province, South Africa. Dutch Journal of Finance and Management1(1), p.37.

Shen, W., Tang, W., Wang, S., Duffield, C.F., Hui, F.K.P. and You, R., (2017). Enhancing trust-based interface management in international engineering-procurement-construction projects. Journal of Construction Engineering and Management143(9), p.04017061.

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Wilkie, S., Thompson, E., Cranner, P. and Ginty, K., 2020. Attention restoration theory as a framework for analysis of Tweets about urban green space: a case study. Landscape Research, 45(6), pp.777-788.

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Websites

Investnortheastengland.co.uk, 2021, £100M BOOST FOR SUNDERLAND’S CITY CENTRE VISION, Available at: https://investnortheastengland.co.uk/news/sunderlands-city-centre-masterplan/ [Accessed on: 21st April 2022]

Rtpi.org.uk, 2021, Case Study – Riverside Sunderland Supplementary Planning Document Submission to the RTPI Awards for Planning Excellence 2021, Available at: https://www.rtpi.org.uk/media/9537/case-study-riverside-sunderland-supplementary-planning-document.pdf [Accessed on: 21st April 2022]

Sunderland.gov.uk, 2021, Wearmouth Masterplan, Available at: https://www.sunderland.gov.uk/media/11731/SPD-Document/pdf/SPD_Document.pdf?ccp=true#cookie-consent-prompt [Accessed on: 21st April 2022]

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