History Of The Management Procurement System Construction Essay

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The stages of online finance application will require additional resources as given in WOW Matrix in Figure 1. For example, the WHOW matrix explains that the complexity of project is type B. It illustrates that design and implementation stages are more complex and timing consuming. There reasonable and effective lifecycle should be designed by taking in to account the complexity of project.

The phases of project can be redesigned, changed or finished by splitting the project lifecycle in to different phases. By doing this we can also plan online finance application in proper way (Schwalbe, 2010).

There are four phases of project lifecycle like conceptualization, design, implementation and end (Method123 Ltd, 2012). We are going to use Burke's project lifecycle which is appropriate for this project.

By keeping in view the situation of design and construction for camp project including residential and office units GMC can use Mendelow Matrix to classify the project.

The project design, stakeholders requirements, milestones are clear. The project team can resolve any issues by going back to proceeding stage using the waterfall model before handing over the project. The project enhancement decisions occur progressively over a period of time.

The project lifecycle analysis is very important in order to meet the needs of Nickelodeon project and Kumatata people are satisfied. Many lifecycle models share common features that study the various stages of products and services units.

The difference between product and project lifecycle is that product lifecycle focuses on long-term impacts of product while on the other hand project lifecycle reveals the application process of a particular project. The project lifecycle is essential for mapping the progress of project from beginning to end. The procurement method to execute the camp project should use a comprehensive lifecycle process in order to make the project sustainable.

Stakeholder Analysis

The Mendelow framework is used in order to prioritizing the needs of stakeholders which is also called 2X2 Matrix. Mendelow Matrix can be explained as;

Stakeholders with low interest and power in particular matter should be neglected by company.

The stakeholders with high level of interest and power in order to influence company's operations and strategies should be given priority.

Stakeholders who have low power and high interest just need to be informed because they cannot affect company's decision making. Such stakeholders may make coalition with other stakeholders.

The stakeholders with substantial power but lesser interest should be kept satisfied. Stakeholders like this are not intended to influence company's decision making. Government is an example of these stakeholders.

(Emile Woolf Publishing Limited , 2011)

The GMC should address issues related to the local community, costing, environment damage control and workplace in order to minimize the concerns of stakeholders related to this project.

There are following advantages of stakeholder analysis;

Greater acceptance of GMC actions by stakeholders

Better strategies and decision making

Risk identification and mitigation

Better management of relationships

Support from stakeholders in order to gain access to more resources

Ways to reduce negative risks and mange adverse stakeholders

Managing expectations of stakeholders and ensuring their active involvement in project

Opportunity to individuals or groups to express their ideas and concerns related to project.

Make accountable and responsible for success of the project

Ensure the quality of performance

The stakeholders are prioritized by combining the interest in the project and their power to impact the project. The project manager should take in to account external stakeholder's needs as many possible. The project should be completed the given deadline by managing cost, time and quality of work on project.

Supply Chain Analysis

The purpose of supply chain analysis is to develop system for GMS in order to integrate supply chain management with project development. The selection of supply chain method depends upon complexity and extent of project. The effective supply chain method should be that which will ensure the supplier efficiently and on favorable terms in difficult situation. Supply chain analysis is carried out in order to ensure;

Number of suppliers and their location

Nature of competition of suppliers

Value of suppliers for project

Nature and quality of supply chain

Indentifying alternative suppliers

Opportunities for developing suppliers and markets

The first step in supply chain analysis is to segment supplier market under procurement consideration. The nature of completion in supplier market like perfect competition, monopoly, monopolistic competition and oligopoly will also affect the supply chain strategy of GMC. The company, its suppliers and buyers should be integrated with each other through an effective supply chain system in order to execute the project effectively and efficiently. The supply chain system should develop relation of mutual benefit between company, supplier and buyers in order to cost and time and enhance the quality of project. The supply chain system should also take in to account the environmental issues in order protect environment.

The supply chain system should be effective in such a way that it should ensure on time delivery of supplies. The supply chain analysis should reduce the delays due to bad weather conditions and other issues related infrastructure. The GMC should develop a tightly integrated supply chain in order to ensure smooth working in project development.

Fig-1: Supplier preference matrix

Risk Analysis

Risk analysis helps to understand the risk, manage risk and minimize the risk involved in development of project. Risk analysis also controls the risk in a cost effective way. Risk analysis helps the company to identify and manage the problems that could hinder the project development. The risk analysis is done by identifying the key threats to project development and reducing the likelihood of these threats to hinder the project.

There are following steps in risk analysis;

Risk identification

In this steps company should threats to project development like financial, social, political and technological factors.

Risk estimation

In this step company should measure likelihood of risk and its magnitude of impact on project development.

Risk management

Company can manage risk by using existing resources, developing a contingency plan or by deploying additional resources.


After risk analysis and management, a company must evaluate risk management process because cost and likelihood of some risks may change.

GMC should follow a systematic process of identification, evaluation, prevention and evaluation of risk by adopting the risk management plan (RMP). The SMC should also take into account the concerns of local community like cultural and environmental issues of that community. It will develop the image of SMC as corporate socially responsible company.

4. Procurement Method Selection

4.1 Overview of Procurement Methods

An effective procurement planning strategy is a key factor in on time completion of project. The procurement planning strategy helps in identification and selection of trusted suppliers. In this era suppliers are considered partners for a company because cooperation of suppliers is very crucial in order to complete the project effectively and efficiently. The company should select that procurement strategy which is the best fit to situation of its project. The company should determine the merits and demerits of each procurement method.

The mostly used procurement methods are as follows;


The is the most commonly used procurement method in which project coordinator design the work, produce drawings, purchase material and manage project from start to completion.

Design and build

In this project owner of the project select design of project and handover this to contractors in order to complete the first phase of project. After the completion of first phase engineer design the second phase of the project, then owner hired the contractor to build second phase.

Management procurement system

In this method owner play an important role in procurement system by entering into contract with designer. The owner of the project take contractual role while project manager manage the trade contracts in order to run the project effectively and efficiently.

4.2 Selection Criteria

A company should select that procurement method which is the best fit in to its procurement strategy. The company should take into account factors like cost, flexibility, simplicity of procurement system. The company should also consider external factors like economic, political, social and technological factors in selecting the procurement strategy in order to complete the project smoothly and effectively. The main criteria for selection of procurement system are time, cost, quality, flexibility, competition and responsibility.

4.3 Selected Procurement Method

The selected procurement strategy which satisfies the key objectives of the project and minimizes the risk of the project should be used for procurement of material for project. The procurement methods like design & construct and construction management are the best in order to complete the project within assigned deadlines. The design and construct procurement method is best to complete the camp project with minimum time, low cost and high quality. The design and construct procurement method is best for camp project due few technical requirements of the project. The advantages of using design and construct methods are as follows;

Time duration

Time duration is very less as compared to other procurement methods

Fixed cost

To get detailed estimation cost before design of the project.


This method encourages the innovation in the procurement system.

Value addition

This procurement method adds value by reducing cost and enhancing performance of the project as compared to other procurement systems.

Establish program

It helps in setting deadlines of project completion before final design of project.

Claim reduction

This method also reduces claims as compared to separate design and constructs method.

5. Procurement Processes Cycle

The procurement cycle includes purchasing process for a product from start, progress and end of project. There are following stages in procurement cycle;

Identification of needs

In this step procurement manager identifies what items are required for project.

Development of requirement

In this steps procurement manager prepared material requirement report by consulting stakeholders of the project.

Procurement method

In this step procurement manager will use construct and design method for procurement process of this project.

Evaluation of procurement process

In this step procurement manager will evaluate the whole procurement process that every step is aligned with procurement policy of company.

Selection of supplier

In this step procurement manager will select the supplier for procurement of material for project. He can select single supplier or multiple suppliers for purchase of material.


The design and construct method must take into account the requirement of project, project owner and deadlines of the project. The design and construct method will help GMC to execute Nickelodeon mine project with minimum likelihood of risk. The construct and design metho will also help to take into account the social and environmental issues of local community. There following benefits of Design and construct method,

The GMC has to deal only with one supplier and there is no need of various designers and contractors for a single contract.

There is no risk of price variation in this method because project requirements are specified before commencement of project.

The convergence of design and construction activities helps to complete project within deadlines.

This method enhances quality of work on project due to contractor's participation in design process.

The contractor has flexibility to use innovative techniques in order to enhance quality of work on project.

This method also helps in accurate costing of project.

The chances of any technical errors are very low.

7. Conclusions

The goals and objects of the project have been identified, design and construct method was selected in to carry out the construction of camp. The GMC has selected best procurement plan in order to execute the construction of camp project.

The factors like project lifecycle, stakeholders and supply chain have been examined by taking into account the considerations of stakeholders of the project. The design and construct procurement method was used in order to complete the project with time, cost and quality. The social, cultural, environmental, political and technological considerations of community were also taken into account order make the project sustainable and socially responsible.

The design and construct method is also very important in order to complete the project within given deadlines. This method also helps in procurement of raw material without the risk of price fluctuation.