Project Contract And Procurement Management Plan

Project Delivery Method

The Greenwich private limited is the manufacturing company which is looking forward to renovate their working environment with the new technological innovation so that the operational capability of the team members can be improved and it directly helps to increase the turnover of the organization. The purpose of this paper is to develop a contract and procurement management plan by identifying the evaluation criteria and risks associated with the new project.

The project will be completed by following the design-bid-build method. The design phase is used to develop the construction engineering drawings for renovating the working environment of the enterprise. The conceptual systematic design should be developed by the engineer for identifying the requirement of the resources required in the development of the project. In the bidding phase, the tenders from various contractors are collected. The evaluation criteria and scoring is set for selecting the right contractor for managing the supply of the resources at the construction site. In the building phase, the contract is signed with the contractor to supply the resources on the construction and start the construction of the undertaken project. The advantage of using this methodology is that it takes the active participation of the project owner to identify and signed contract with the right contractor so that the project can be completed within the specified time and cost.

Project Title	Greenwich private limited company
Project Objectives Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	The objectives of the project are: Identify the problem domain in the existing working system Identify the requirement of the new environment Identify the new technology required to be implemented Identify the projected cost of the project Identify the project timeline Identify the risks associated with the project Identify the success criteria of the project Determine the evaluation criteria Selection of the contract Identify terms and condition
Project Scope	The scope of the project focuses on: Setting selection criteria for tender process Develops evaluation criteria and weightage system Signing service level agreement with the selected contractor Setting of terms and condition Identify success criteria, constraints, and assumptions of the project
Project start date	The start date of the project is 5 April, 2019
Project finish date	The finish date of the project is 10 Nov, 2019
Critical factors	Supply of the physical resources at construction site Supply of the human resources at construction site Allocation of tasks to the resources Project schedule Identify interdependencies between the project activities
Assumptions	Team is highly skilled and expertise Availability of resources as desired
Constraints	Project should be completed within projected time Project should be completed within projected cost
Rationale	The success criteria of the project are: Completion of project within available resources Completion of project within allocated time Completion of project within allocated cost
Grading (Criteria, weight, and score)	Safety and health credentials Cost Services and facilities provided Location of the contractor from the construction site Historical reputation Ethical behaviour of conduct Goodwill Availability of resources Online connectivity

Evaluation Committee:

Name	Role	Responsibilities	Key concern areas
Jim Corbett	Project director	Identify the problem domain of the organization Proposing new project Develops requirement specification plan	Organization problem domain and complexity which affect the growth and profitability of the company
K.L. Lias	Project Owner	Approval of project Approval of project budget Approval of project time	Project start up for the betterment of the organization
S.D Belley	Project Manager	Approval of the project schedule Distribution of role and responsibilities Allocating resources and cost to the activities	Project undergoing process
Maggie Rose	Planning engineer	Preparation of the project schedule Identify critical path	Project delay
R.D. Thomson	Financial Manager	Preparation of the project budget	Cost estimation plan
L.N. Lui	Procurement manager	Managing contract with the contractor and sub-contractor	Service level agreement
Smith Jones	Operation manager	Operating procedure of the company	Operational working of the company
M.N. Prasad	Senior Consultant	Advice and innovative ideas	New marketing trends

Evaluation Criteria	Criteria Weightage	Sub Weightage	Score (5 Point scal)	Weighted Score	Score
Safety and health credential provided Machinery Plant Liaison equipment	5%	1 2 1 1	1 2 1 1	4 12 4 6	26
Quality of machinery used Quality controls Quality standard Quality Assurance	10%	2 3 5	3 4 5	5 0.560 0.440	6
Price of the resources Human Resources Physical Resources	7%	4 3	1 2	6 8	14
Ethical code of conduct	8%	8	5	21.064	21.064
Ethical behaviour	5%	5	3	4.0574	4.0574
Historical records Supply of resources Quality of resources Management of demand and supply	10%	3 4 3	3 1 5	3 6 8	17
Goodwill Patents Trademark	5%	2 3	3 4	4 8.039	12.039
Reputation of the company	4%	4	5	3.128	3.128
Identification of risks Risk Identification Risk Level Risk Severity Risks Likelihood Risks Ranking Risks Mitigation policies	6%	1 2 1 1 0.5 0.5	2 3 4 4 5 3	3 4 1 1 7 8	24
Services and facilities provided On-time delivery of physical resources On-time delivery of human resources Quality of resources provided	8%	3 2 3	4 5 2	12 10 7	29
Capacity of resources delivered Quantity of physical resources Quantity of human resources Quantity of skilled and expertise labour	7%	3 2 2	2 3 3	5.024 7 9	21.024
Location of the company from the construction site Distance Connectivity	3%	2 1	3 3	12 19	31
Capability of solving issues and complaints Grievance handling program Friendly environment	7%	3 4	4 5	4 8	12
Training and development program organized for the team members Appointment of trainee Duration of training period	4%	2 2	3 4	6 9	15
Monitoring and control	6%	6	5	18.0583	18.0583
Reviewing of the policies Reviewing of term and condition Reviewing of quality standard Reviewing of capacity	5%	2 2 1	3 4 4	19.21	19.21

It should be commenced that the procurement process will follow the ethical code of conduct in the delivery of physical and human resources to the construction site. The auditing of the evaluation report should be done periodically during the review process. The evaluation report should be signed by arranging the round table discussion and interviews of the contractor for supplying the required resources within the estimated time of the project. The moral principles followed by the contractor company helps in influencing privilege to manage contract with them. The ethical standards and principles should be developed for the organization so that the conflict and chaos can be avoided at top priority. It helps in bringing transparency in the working agenda.

The Guaranteed maximum price contract should be signed with the contractors and sub-contractor to initiate the supply of physical and human resources according to the requirement placed by the team members to complete the given activities of the project. The GMP contract helps in hiring contractor at maximum price and is efficient in cost saving procedures and controlling the project processes.

The fixed price of the contract is set during the project initiation phase in the service level agreement.
It helps in minimizing the variation in the undergoing processes with respect to time, cost, and resource allocation.
The contract can be expandable according to the change request posted by the project director.
The alternative solutions are provided to keep balance between supply and demand of the resources.
The potential risks associated with the project life cycle can be minimized.
The negotiation process can be easily handled with the contractor
It signs the pre-agreement with the contractor
Less administration is required
The positive alliance is developed with the contractor

During the working of the project, the issues and challenges occurs between the human resources than contractor will take the step forward for resolving the issues and conflict among the team members. The proper communication strategy should be placed to settle down the disputes at an early stage of the project (Merrit, and Ricketts, 2012).

The escalation and setting down of the disputes should be reported to the project manager and project director.

The legal agreement should be signed between the resources if disputes are not settled down properly between the working parties because it will affect the completion of project on time.

Two years contract is signed with the contractor which can be expandable for 1 year according to the future requirement
Safety and health credentials should be provided by the contractor to the resources used
The contract can be terminated if unethical code of conduct is shown by the contractor
Good quality resources should be provided
Availability of resources according to demand placed
Monitoring and control policies
Minimum price of resources
Handling of chaotic working environment

Service Agreement particulars	Description
Contractor Company Title	L & T contractor company
Client company title	Greenwich Private limited
Date of commencement	12 May, 2019
Term of agreement	2 years + 1 year expandable
Framework	Sole Authority
Contract Value	$ 160,000
Duration of project	2 Years
Resources	Physical and Human Resources
Location	BTown-104, Queensland, Australia
Project Director Sign off
Project Manager Sign off
Contractor Sign off
Email contractor:	L&[email protected]
Email client:	[email protected]
Telephone	7895940123

Variations:

The change request placed by the contract manager can be handled at top priority (Passenheim, 2015)
The changes in the agreement are assessed as breach.
Negotiation process with the project director can be approved for contract variations
Scope and risks should be discussed
Proper documentation of the variation should be prepared

The service level agreement should be developed to provide insurance cover to the human resource in case of any casualty occurs during the working hours of the organization.

Name of the insurer	Policy Number	Amount of insurance	Date of Expiry	Excluded value
Xxxx	Xxxx	Xxxx	Xxxx	Xxxx

Communication Strategy

Project Audience	Messages	Frequency	Communication tools	Receiver
Project director	Identify the problem domain of the organization Proposing new project Develops requirement specification plan	Weekly	Email Formal Letters Audio and Video teleconferencing Circulars Notices Online chats Newsletter	Project Owner Project Manager
Project Owner	Approval of project Approval of project budget Approval of project time	Monthly	Email Formal Letters Audio and Video teleconferencing Circulars Notices Online chats Newsletter	Project Director Project manager
Project Manager	Approval of the project schedule Distribution of role and responsibilities Allocating resources and cost to the activities (Wilson, 2012)	Daily	Email Formal Letters Audio and Video teleconferencing Circulars Notices Online chats Newsletter	Project Director Project Owner Senior consultant
Planning engineer	Preparation of the project schedule Identify critical path	Within 15 days	Email Formal Letters Audio and Video teleconferencing Circulars Notices Online chats Newsletter	Project manager
Financial Manager	Preparation of the project budget	Weekly	Email Formal Letters Audio and Video teleconferencing Circulars Notices Online chats Newsletter	Project manager
Procurement manager	Managing contract with the contractor and sub-contractor	Weekly	Email Formal Letters Audio and Video teleconferencing Circulars Notices Online chats Newsletter	Project Manager Financial Manager
Operation manager	Operating procedure of the company	Weekly	Email Formal Letters Audio and Video teleconferencing Circulars Notices Online chats Newsletter (Monnappa, 2017)	Project Manager
Senior consultant	Advice and innovative ideas	Daily	Email Formal Letters Audio and Video teleconferencing Circulars Notices Online chats Newsletter	Project Manager

Project schedule

Project Activities	Duration	Start Date	Finish Date
Posting of the proposal	5 days	10 April, 2019	14 April, 2019
Setting of the evaluation committee	3 days	15 April, 2019	17 April, 2019
Meeting of the evaluation committee	6 Days	18 April, 2019	23 April, 2019
Approval of the proposal	3 days	24 April, 2019	26 April, 2019
Setting of advertisement	10 Days	27 April, 2019	6 May, 2019
Collecting Tenders	12 Days	7 May, 2019	18 May, 2019
Preparing of Service level agreement	7 Days	19 May, 2019	25 May, 2019
Setting of evaluation score	5 Days	26 May, 2019	30 May, 2019
Establishment of procurement contract	4 Days	31 May, 2019	3 May, 2019

Key Performance Indicators

Key Performance indicators	Standard value for KPI	Frequency	Date of commencement	Data source
Delivery of resources on time	95%	Weekly	16 May, 2019	Audit report
Delivery of raw material	88%	Monthly	20 May, 2019	Audit Report
Cost estimation	100%	Once	25 May, 2019	Audit Report
Time Estimation	100%	Once	15 Aug, 2019	Audit Report

Risk Management plan

The risks which are identified during the signing process of contract agreement with the contractor are listed below:

Risk Identified	Risks Description
No legal documentation with contractor	The legal documentation is not signed with the contractor. The process of delivering resources to the construction site is carrying on the basis of verbal communication which can create complexity and chaos at the end of the project (Mansfield community, 2013).
Historical performance of the contractor is not analysed properly	The market analysis is not properly done to know their performance and efficiency of delivering the resources according to the demand placed by the site engineer
Termination of the contract cannot be done	Without having any legal document, the contract cannot be terminated because the working of the company is not based on any term and condition (Lockamy and McCormack, 2015
Poor Quality of resources provides	The quality standard is not mention in the verbal contract which can create chaotic environment because the contractor cannot supply the desired quality of raw material
Delay in delivery of resources	The resources are not delivered on time because the contract is not signed with the two working parties.

Risk Register

Risks Identification	Risks Severity	Risks Level	Risks Likelihood	Risks Ranking	Risk mitigation plan
No legal documentation with contractor	3	High	4	7	Signed a legal service level agreement with the contractor
Historical performance of the contractor is not analysed properly	2	Medium	2	4	Market analysis and goodwill of the contractor should be measured before signing contract
Termination of the contract cannot be done	1	Low	2	3	Legal document should be read thoroughly before signing the document (Kharaiweish, 2013)
Poor Quality of resources provides	2	Medium	2	4	The quality of the raw material should be checked before delivery of resources to the site (Habib, 2014
Delay in delivery of resources	3	High	3	6	The location of the contractor should be near to the site and have a good connectivity

Extension of 2 years is provided according to the requirement of the client company after the completion of the tenure (Kang, 2010).
No training and development program organized after the completion of the project
Documentation should be properly handover to the project manager
Status report of KPIs and milestones should be provided periodically (James, 2012)
Work should be completed according to the planned project activities
The termination of the contract can occur in following condition:
Agreement terms and conditions are not properly followed
Health and safety credentials are not properly driven
Insurance cover is not properly provided
Unethical behaviour at work place
Quality standards of raw material is not met

Conclusion:

It can be conclude that the auditing of the evaluation report should be done periodically during the review process. The evaluation report should be signed by arranging the round table discussion and interviews of the contractor for supplying the required resources within the estimated time of the project. The proper communication strategy should be placed to settle down the disputes at an early stage of the project

References

Habib, M. 2014. Supply chain management: Its future implications. Open journal of social science, 2014(2). Accessed March 2, 2019. https://www.worldcat.org/title/purchasing-and-supply-chain-management/oclc/967523255.

James, A. 2012. “A New Introduction To Supply Chain And Supply Chain Management: Definition And Theories Perspectives”. International Journal Of International Business Research 5 (1). Accessed March 2, 2019. https://www.worldcat.org/title/purchasing-and-supply-chain-management/oclc/967523255.

Kang, B. (2010). Research support building and infrastructure modernization. 1^st ed. Available at: https://www-ssrl.slac.stanford.edu/lcls/reviews/rsb_project/2009_rsb_may18-19/supporting_docs/rsb_risk_management_plan.pdf

Kharaiweish, M. (2013). Project Monitoring and control measures. International Journal of computer science and information technology, 5(5). Retrieved from: https://airccse.org/journal/jcsit/5513ijcsit03.pdf

Lockamy, A., McCormack, K. 2015. The development of a supply chain management process maturity model using the concept of business process orientation. 1^st ed. Accessed March 2, 2019. https://pdfs.semanticscholar.org/c5cf/b8482b9644502f55256e9adbd708001179b1.pdf

Mansfield Community. (2013). Introduction to project management. 1^st ed. Retrieved from https://www.mansfield.vic.gov.au/Libraries/Community_Development/Intro_to_Project_Management_Manual.sflb.ashx

Merrit, F., and Ricketts, J. (2012). Building design and construction handbook. 1^st ed. Retrieved from https://www.uop.edu.jo/download/research/members/[Architecture_Ebook]_Building_Design_and_Construction_Handbook.pdf

Monnappa. (2017). Project scope management: What it is and why it is important. 1^st ed. Retrieved from https://www.simplilearn.com/project-scope-management-importance-rar89-article

Passenheim, O. (2015). Project Management. 1st ed. Retrieved from https://home.hit.no/~hansha/documents/theses/projectmanagement.pdf

Wilson, D. (2012). Project Governance. Retrieved from https://www.masterresearch.com.au/downloads/pdfs/Project_Governance_V2.pdf

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