Contracts and Procurement

Assessment 1 aims to encourage a further understanding of the procurement and financial risk, mitigations and benchmarking against better practices and excellence reports to ensure successful completion. The specific roles and responsibilities of project manager and procurement manager in the completions effort is also explored.Students are also encouraged to understand and explore the related organisational issues, stakeholders and the funding and other procurement aspects associated with the Case Study drawing upon the learnings from similar procurement projects.Read the given case study (“Case Study Bowen Terrace Olympics 2032 Modified” File) and provide, in 250 words, an analysis of the following points:- Areas for further vendor negotiations and management – to achieve a successful contract completion;- Areas of key accountability for Project Manager and Procurement Manager in facilitating successful outcome for the Case Study project;- The questions for discussion board are formulated to critique the above topics and bring out ideas thoughts, develop solutions and ensure students active participation, leadership, feedback, cooperation and time-management aspects.

Case Study – Glenn Smith – Sept. 2020
PROJ 6016 Capstone Case Study – Bowen Terrace
Context
Due to a shortage of suitable local accommodation in Brisbane, in conjunction with the
requests made by the Brisbane City Council, Torrens University is developing a site
situated closely to the Bowen Terrace Campus that will initially be used to house athletes
from around the world participating in the 2032 Olympics. After this international event,
the complex will be utilised as a student high rise rental accommodation for up to four
hundred students studying at the Bowen Terrace Campus site. A location for the complex
site has been selected behind the current Brisbane campus building which is an
underutilized commercial Wilsons Car Park facility, situated in Martin Street, Fortitude
Valley.
Seeking to commence an intake of athletes in March of 2032 and an estimated 44 months
of planning and build time it is anticipated that the project demolition of the existing
building would commence in February 2022. As an interim measure till the 2032
Olympics, Torrens University will utilise the building for student accommodation till
December 2031. At this time a short refurbishment program will occur in preparation of
the visiting international athletes..
Site
The site is situated directly opposite the Fortitude Valley Fire Station, the key fire
response center for Brisbane as well as being on the edge of the Brisbane entertainment
precinct known for it’s large crowds and popular night club venues. There is also a train
station nearby in Fortitude Valley, as well as supermarkets and specialty shops. The
proposed site is a fifteen minute walk to the Brisbane CBD. The iconic Storey Bridge is a
three minute walk from the proposed site.
In order to satisfy the requirement the building will be constructed 15 stories above
ground with the ground floor comprised of a considerable communal leisure area, large
40 station sponsored internet café, office/reception and laundry facilities. There will be
two floors underground with resident parking for seventy five vehicles. The
accommodation floors will be made up of single and double room combinations housing
a minimum of twenty students per floor.
Each unit will on average provide 20m2 of livable space per athlete comprising a bed,
wardrobe, ensuite, kitchenette and writing desk. Each room will be air conditioned,
contain data points, television and fridge. A large emphasis will be placed upon the
quality of the site technological capabilities given the reliance by students upon steady
connectivity and access to state of the art equipment
Traffic in Martin Street is constant and rated as busy due to the access to the Storey
Bridge and southern suburbs.
Case Study – Glenn Smith – Sept. 2020
Budget
The budget for the building is set at $39M, a little below market expectations for similar
projects given the proposed location, but due to the impact of global constraints upon the
Australian economy, it is supposed that price competitiveness will be high providing the
project stakeholders with an opportunity to commercially capitalize while creating
additional infrastructure.
Management
Management of the project will be through a Project Management Contractor reporting
directly to the Project Management panel, established for this one venture, based in
Brisbane. The project Team will be recruited by the incumbent Project Manager.
Procurement Management
With a project such as this there are likely to be a number of supply chain issues that
arise. Demonstrate how you would recommend the project management team manage
their procurement responsibilities, to ensure, price, reliability of supply, quality of
procured items and mitigation of risks associated with post Covid 19 Supply Chain
factors.
Risk Management
When you consider potential Project Change elements and External Environmental
Factors over the duration of the Project Life Cycle it is evident that much planning needs
to occur to ensure that the integrity of the project is able be maintained. Considering the
Project, the various Stakeholders, the physicality of the site, as well as the nature of site
activity. Planning for this project will need to satisfy the scrutiny of the Board of
Directors of the Olympic Committee for the 2032 Games, providing them with
confidence that the project is likely to be managed well.
Scope Management
The scope for this project is very broad and requires a strong control mechanism to be
insinuated into the project environment. Realising that the key to success is to correctly
define the project scope prior to commencing, you are requested to consider how you will
enable effective management of the project activities. There is speculation that the scope
may in fact be adjusted during construction as more information concerning the end users
comes to light. Take into account with the writing of this plan, the realistic potential for
change and act accordingly.
Case Study – Glenn Smith – Sept. 2020
Stakeholder Management
Almost the most important issue facing this project is the handling of the various
stakeholders in this politically charged project environment. How to deal with the various
interest groups while the construction program is underway is being seen as a primary
issue by the project sponsor. In considering the wide range of stakeholders, political
wrangling, the need for effective and responsible reporting and the construction of a
world class building thrust into the spotlight due to the intended use, consider how you
will you manage this important area of project management?
Quality
The word quality is being bandied about by virtually all fee for service based
organisations. The Olympic Games Movement has repeatedly rated different countries
based upon the standard of quality of the games held in different environments. The
Brisbane Olympic Committee is determined to ensure that their bid is rated as the best
games ever.
Examine this issue of quality being expressed by the International Olympic Committee
(IOC).
Your project Sponsor expresses that they wish for this project to be seen as having met
the very highest standards of quality. Consider what is being expected from the project
team when both the IOC and the Project Sponsor refer to Quality?
Resources
Having considered the project in its entirety you now realise that you may not have
sufficient of the appropriate resources on hand to be able to successfully manage the
project. You cannot afford costly project blowouts but you must ensure that project
resources are suitable for this specific project. You can see that the construction
component of the project is well supported, but in examining the project team
characteristics required, you are now unsure if you are well enough prepared.
Consider the needs of the project team and determine what skills would be required to
deal with the project conditions identified by your analysis.