PRJ5108 Project Delivery and Procurement Report Sample

PRJ5108 Project Delivery and Procurement

Assessment 2:

Written Report Working in small groups, students (a) analyse a real project and develop and write a delivery management plan including procurement documents, bid preparation and evaluation, and select delivery method, (b) analyse potential contract types, analyse the risks related to each type and select appropriate contract type including contract administration and communication.

Assessment 2 Details:

Design of Project Delivery System and contract management influence the success or failure of the implementation phase of projects. It is not just about selecting a contract model; it provides a framework for procurement of goods and services needed to implement the project. This assessment task is based on the delivery system and contract management of the “Case project”, where students use real-life project as the vehicle for learning and developing their competencies in this unit of study. The case project should be selected by students in their field of interest. The selected project can be a proposed or an initiated project, but it must not be in the construction phase nor a completed project. Each group should be finalised by 3-4 members within the second week of the Trimester. One member for each group should inform their details (names, Ids and project title) to the class teacher through an email or by using the Discussion Forum (Week 3).

This assessment task includes the following components:

1. The background and the objectives of the case project.

2. High level WBS and the Statement of Work of the case project.

3. Literature review on the case project, including the typical delivery models, contracting     methods and contexts.

4. A brief state of why a particular delivery method is selected for the case project. Provide  SWOT analysis of the selected project delivery method.

5. Students will also discuss about suggested implementation plan for the case project. In the   implementation plan:

a. Students are required to discuss about the Request for Proposal (RFP) preparation and biding processes for selecting the contractor.

b. Student are required to discuss about the preferred contract types for the design and  construction of the case project.

c. Students are required to discuss about the risk management plan related to the selected project  delivery method and contracting.

d. Students are also required to discuss about the administration of the construction management of the case project to ensure that all the deliverables are achieved within the estimated time and cost.

6. Students are also required to present and upload their case project presentation slides on the Canvas in week 9.

Solution

Introduction

Management of the project and its delivery methods is necessary so as to monitor its outcomes. In this project, the case study of Slough Data Centre Campus is chosen. As per the MBA Assignment Experts, This project was located in the Slough area of London and it was initiated in the year 2019, however, the construction-based task was initiated in 2022 (Designbuild network.com, 2022). The project aimed to start with the smart grid technology to maintain sustainability through energy management. In this assignment, the different types of delivery methods and the contractual process is analysed by reviewing several secondary resources. Along with that, swot analysis is done so that the chosen project delivery method of Slough Data Centre can be evaluated as per this framework. In the next section of this assignment, the implementation plan of the project is also discussed including the Request for Proposal, administration types and risks related to the project. 

The Background and The Objectives of The Case Project 

Slough Data Center Campus is located in Ajax Avenue of the Slough province in the UK. This project is considered one of the most popular and initiated projects and is currently in the initiation phase. As per the collected data, it is evident that the new worth of this project costs around 580 million pounds. The area of the data center is about 60000 square feet. There is about 60000 square ft area covered in the raised floor space for effective colonization. The campus has access to 13.5 MW of power. In the case of these real-time projects, there are certain important things to be considered. For example, proper planning is very essential in the case of these kinds of projects. For this reason, the project manager has developed a digital timeline through the application of the Gantt chart. Moreover, a work breakdown structure is also developed by the project manager to divide each task as per its importance. Most importantly, the council of the UK has planned to develop a hyper-scale data center in Slough. 

The main objectives of the project are:

● The Slough Data Center Campus project is expected to involve the construction of 40.5 MW IT of load data center
●  To meet the demand of high-growth technology companies through the application of global growth.
● The development work started in June 2022 and will successfully end in the last week of September 2023. 
● To develop a two-storied steel frame and metal-clad building for the purpose of avoiding accidents among the workers

High-level WBS and the Statement of Work of the Case Project 

Figure 1: Digital timeline of the project
(Source: Crested by the learner)

In the case of developing any real-time project like this, it is very important for the project manager to consider the planning process of the project. In this context, there are several ways through the application through which a project is developed. As the budget and expectations are very high for this project, for this reason, it is very important for the project manager to choose the best techniques to develop this project accordingly (Burghate, 2018). The above image is the plan of the project which has been done by the project manager through the application of Microsoft project libre. This project needs to be completed within the expected deadline. The starting date of the project is June 2022, and this project is expected to be completed within September 2023. 

There are different processes and action plans being developed by the project manager. In this context, after the initiation phase, the project planning and the development process will start. This process will take the maximum duration and time. The expected time for the project planning phase is 28 days. In this process, the Slough Data Center Campus redevelopment project planning will start. This phase will consist of different tasks. For example, the floor design of the campus along with the division of rooms, layout of the campus building, vendor selection, contract card, and the allocation of resources will be done. In the next phase, the campus construction will be developed (Putritama et al., 2022). This phase will take about 261 days to get completed. In this phase, concrete work, flooring, fabrication, installation of new power units, electrical installations, and procurement of raw materials will be done. It will be followed by the project monitoring and the project closure which will take about 10 days and 9 days respectively. 

Figure 2: WBS of the project
(Source: Crested by the learner)

The above images are the work breakdown structure of the Slough Data Center Campus project. In this context, there are different milestones being developed by the project manager to develop this real-time project accordingly. All the processes are divided as per the requirements. There are five prospects for this project. These are:

● Project initiation
● Project planning
● Project execution
● Project monitoring
● Project closure

Figure 3: project phases
(Source: Created by the learner)

Literature review of the case project, including the typical delivery models, contracting methods, and contexts

The Slough Data Centre Campus project was a UK-based construction project that had the aim of constructing a data center campus in Slough. The slough campus is located in the middle of the Slough Trading Estate and is well connected with the international airport of London as well (Power technology.com). The budget for this project was $580m for the construction of a 40.5MW IT load data center campus. The major objective of the project was to meet up the demand and requirements of the global technology companies. Since technology held an important position in business in today’s era, this data center aimed to help global companies and encourage them to use more technologies efficiently. An advanced smart grid was used to complete this project and the grid also assisted this project to be done with a higher level of accuracy by maintaining sustainability and reducing the usage of electricity in the project-based activities of Slough Data Centre. 

Different types of project delivery models aim to support the process by which a project is being completed. The first model is Design-Bid-Build and it is one of the most traditional models that is used to complete the activities of a project. As stated by Arshad et al., (2019), this model has three stages and they are the designing phase, bid phase, and build phase. In the first phase, the architect, designer, and engineers are hired so that the basic design of the construction can be done. In the next phase, contractors are summoned so that they can ask questions to the architects and engineers about the project design and requirements. In this phase, the contractors prepare their bids and after reviewing several bids on the same project, the most effective contractor will be chosen for the project. Finally, the building phase will be started when the contractor will supply the raw materials and engineers and architects will work as per the construction design to complete the project on time (Arshad et al., 2019). However, there is another model that is made to shorten the design-bid-build model and it is the design-build model. In this model, after preparing the design, proposals are asked from design builders. A design-builder fulfills the role of contractors and designers. Henceforth, there is no need for a separate bidding phase in this model and once the best proposal is chosen from the design-builder; the construction phase can be directly started. 

Figure 4: Differences between design-bid-build and design-build
(Source: Harwood, D. (2022).

The next model is Job order contracting and in this model, contractors are allowed to do bidding at the initial phase of signing the contract. One contract is made for the long term and multiple projects can be completed within the tenure of the contract. This type of model is beneficial for owners who aim to complete several projects at a time. Repetitive bidding is not required for individual projects in this model. However, before starting a new project, a meeting is held among contractors and project engineers so that they can discuss their requirements and start the building phase thereafter. 

The integrated project delivery method is a modern approach where all members of the project are integrated through a single contract (Mesa et al., 2019). As per this model, all members are chosen before the design phase and they have to bear an equal amount of risks of the project. It follows a lean construction model and is gaining popularity as it is a collaborative approach to completing the project where every member has their different roles and responsibilities in the project completion and delivery. There are three main types of project contracting methods that can be used by a company to choose contractors who can supply adequate material for the project. The contracting methods are Fixed Price Contract, Time and Material Contract, and Cost Reimbursable Contract. A fixed-price contract is used when the scope of the project is clearly defined and the requirements are clearly understood by the owner of the project and the contractor as well. As stated by Clancey (2021), in this contract, an extra price will not be paid to the contract even if more materials are required to complete the project than decided initially. As a result, a fixed price is set for the contract and it cannot be modified afterward. 

Henceforth, the contractor has to understand the risks associated with the project beforehand and should also understand the requirements of material for the completion of the construction-based project. A fixed-price contract is beneficial for the project owner as it helps in saving time by repeatedly contacting the contractors for the supply of materials (Sobel and Tibor, 2022). As the design of the project is fixed beforehand, the time limit is given to the contractor for the delivery of each material. On the other hand, cost Reimbursable Contracts are made when the requirements and clarity of the project are not clear. Hence, the contractors can decide the cost after the project building phase has started as the requirement, so the project is not clear in the initial phase. This type of contract is beneficial for new projects and research-based developments. Moreover, contractors gain more profit in this method as the owner provides reimbursement for incurred costs and additional fixed fees as well. Time and material contracts are midway between the Fixed Price Contract and Cost Reimbursable Contract. In this type, the owner of the project has to pay an agreed price to the contractors based on the profits earned, materials brought and the time spent on the project (Lindsjørn and Moustafa, 2018). The price is negotiable and this is one of the simplest contractual modes as it is based on the amount of time spent and materials required to complete the project effectively. 

A brief state of why a particular delivery method is selected for the case project

In this project, the design-bid-build model is used as it is one of the most traditional models and effective models. It assists the owner of the project to complete the project cost-effectively as there is a scope of choosing the contractor who provides the best quality materials at a lower price. In the project of Slough Data Centre Campus, this delivery model is chosen so that there can be a separation in the design and bidding phase (Nguyen et al., 2018). As a result, the creativity and innovation of architects and engineers can be represented in the data center and the most effective contractor can be allowed to supply the materials for construction. 

SWOT Analysis of The Selected Project Delivery Method

Table 1: Swot analysis of design-bid-build model 
(Source: created by author)

Discussion about the suggested implementation plan for the case project

Discussion of the Request for Proposal preparation and bidding processes for selecting the contractor

While preparing the request for the proposal of Slough Data Centre, the objective of the project was clearly mentioned in the document that was used to solicit contractors for sending their bids. The requirements of material that is necessary to construct the data center are clearly stated as well so that the contractors can understand the risk associated with the project and bid accordingly. Solicitation of bidders was done by providing them with necessary information about the design of the construction so that qualified contractors could bid for the project (Maqsoom et al., 2019). As for the process of bidding and selecting the contractor, after the characters were solicited, several bids were submitted. The bids were evaluated in detail and the best bid was chosen where the contractor claimed to provide the best quality material within an affordable budget. Finally, the legal framework of the contract was repaired and the steps of construction and project delivery were initiated. 

Discussion about the preferred contract types for the design and construction of the case project

A fixed price contract is the most preferred contract type for the project of the Slough Data Center campus. There are several advantages of choosing this contract type such as it helps in forecasting the fixed deadline of the project. In a fixed contract, the time required and cost of the projects are estimated beforehand and it is not changed after the contract is signed by the owner and contractor. Moreover, it is a time and cost-efficient method of completing a project. Moreover, in this contractual method, even if any changes are done in the project at the last moment and more material is required, no extra cost has to be paid by the owner of the project to the contractor (Clancey, 2021). However, the contractor must analyze the risks associated with the contractual process of the project before signing it to avoid any loss from his side. Similarly, this is a hassle-free method where much interference for the project owner or client is not required. The contractor is given the list of materials required as the design of the project is fixed beforehand. Moreover, the tenure by which the supply of material is required is also allocated to the contractor so that delay in the supply of materials does not occur. 

Figure 5: Fixed price contract
(Source: STXnext.com, 2022)

Discuss the risk management plan related to the selected project delivery method and contracting 

Table 2: Risk management plan
(Source: created by the learner)

Discussion about the administration of the construction management of the case project to ensure that all the deliverables are achieved within the estimated time and cost

In order to develop this project, it is very important for the project manager to consider key administrative processes for the effective monitoring and maintenance of the project. Through the application of effective administration, it will also be possible for the project manager to ensure that all the deliverables are achieved within the estimated cost and time. 

● The project manager needs to involve an experienced technical team and a supervising committee to supervise the entire project. Through the application of a technical team, it will be possible for the project to account for all the considerations required to be developed along with developing the existing campus infrastructure (Matveeva, 2020). Through the application of the supervising committee, it will be possible to supervise the employees and daily tasks. 

● Technical project management software needs to be implemented and used by the project manager for the purpose of administering the project. In this context, an effective project management software can be effective for maintaining all the tasks and completing each task within a deadline.

● An action plan is very essential along with a procurement plan. Through the application of these considerations, it will be possible to identify the key changes required in the existing development process and to expect constant innovation (Getuli et al., 2020). 

Conclusion 

This project is based on procurement management and project discussion of the Slough Data Center Campus. This paper provides a discussion about the background of the project along with the main objectives of the project. Moreover, the work breakdown structure is also provided in this paper along with the discussion of the literature survey of the proposed plan. Moreover, contract management, risk management, and request for proposal systems have also been discussed by the project manager accordingly in this paper. This project also provides information about the administration process of the project and considerations required to meet the deliverable and to complete this project within the expected deadline.

References

Arshad, M.F., Thaheem, M.J., Nasir, A.R. and Malik, M.S.A., (2019). Contractual risks of building information modeling: Toward a standardised legal framework for design-bid-build projects. Journal of Construction Engineering and Management, 145(4), p.04019010.

Burghate, M., 2018. Work breakdown structure: Simplifying project management. International Journal of Commerce and Management, 3(2), pp.453-461.

Clancey, J. (2021). Fixed Price Contracts: The Ultimate Expert Guide. https://www.netsuite.com/portal/resource/articles/accounting/fixed-price-contract.shtml
Designbuild network.com (2022). Five largest construction projects initiated in the UK in Q1 2022

Getuli, V., Capone, P. and Bruttini, A., 2020. Planning, management and administration of HS contents with BIM and VR in construction: An implementation protocol. Engineering, Construction and Architectural Management, 28(2), pp.603-623.

Harwood, D. (2022). Design-Build versus Design-Bid-Build. https://www.4fortyfour.com/blog/design-build-versus-design-bid-build/
https://www.designbuild-network.com/marketdata/top-five-construction-projects-the-uk-q1-2022/
https://www.stxnext.com/blog/software-development-contracts-fixed-price-time-materials/

Lindsjørn, Y. and Moustafa, R., (2018, May). Challenges with lack of trust in agile projects with autonomous teams and fixed-priced contracts. In Proceedings of the 19th International Conference on Agile Software Development: Companion (pp. 1-5).

Maqsoom, A., Bajwa, S., Zahoor, H., Thaheem, M.J. and Dawood, M., (2019). Optimising contractor’s selection and bid evaluation process in the construction industry: Client’s perspective. Revista de la Construcción, 18(3), pp.445-458.

Matveeva, M.V., 2020, June. Improving construction administration technologies in emergency response: targeted focus. In IOP Conference Series: Materials Science and Engineering (Vol. 880, No. 1, p. 012098). IOP Publishing.

Mesa, H.A., Molenaar, K.R. and Alarcón, L.F., (2019). Comparative analysis between integrated project delivery and lean project delivery. International journal of project management, 37(3), pp.395-409.

Nawaz, A., Waqar, A., Shah, S.A.R., Sajid, M. and Khalid, M.I., 2019. An innovative framework for risk management in construction projects in developing countries: evidence from Pakistan. Risks, 7(1), p.24.

Nguyen, P.H., Lines, B.C. and Tran, D.Q., (2018). Best-value procurement in design-bid-build construction projects: Empirical analysis of selection outcomes. Journal of Construction Engineering and Management, 144(10), p.04018093.

Power technology.com. (2021). Slough Data Centre Project, UK. https://www.power-technology.com/marketdata/slough-data-center-project-uk/

Putritama, D., Riantini, L.S. and Machfudiyanto, R.A., 2022. Developing the WBS-Based Standard Operating Procedure of Highrise Building’s Architectural Components. Interdisciplinary Social Studies, 1(9), pp.1144-1152.

Sobel, L. and Tibor, E., (2022). Do Firm-Fixed Price Contracts Curb Cost Growth?.
STXnext.com (2022). Software Development Contracts: Fixed-Price vs. Time-and-Materials

Themsen, T.N. and Skærbæk, P., 2018. The performativity of risk management frameworks and technologies: The translation of uncertainties into pure and impure risks. Accounting, Organizations and Society, 67, pp.20-33.

Xia, N., Zou, P.X., Griffin, M.A., Wang, X. and Zhong, R., 2018. Towards integrating construction risk management and stakeholder management: A systematic literature review and future research agendas. International Journal of Project Management, 36(5), pp.701-715.