1、Project ManagementProject Procurement&Contract AdministrationJiwei MaContentoProject procurement conceptoPlanning of project procurementoSource selection and solicitationoBid evaluation methodsoContract administrationoConstruction project procurementProject Procurement ConceptoDefinitionoProject pro
2、curement and operation procurementoProject procurement categoriesoTypes of contractoBasic procedure of project procurementProject Procurement ConceptoDefinitionnProject management tasks to deal with part of the projects scope of work which will be bought from another organization,sometimes the resul
3、t of company teaming arrangements,but most typically resulting from contracting or subcontracting project scope.Project Procurement ConceptoProject procurement and operation procurementnBoth purchase products and services from another organizationnUsually through solicitation and competition bid or
4、negotiationnUsually under the format of contract or mutual agreementnSometimes form stable relationships,such as alliance or partneringnThe process needs to be monitored,managed,and finally auditedProject Procurement ConceptoOperation procurementnContinuous on-going production environmentnMature org
5、anization with stabilized positionnLong-term cooperationnMostly bulk quantity purchasenMinimized nonstandard productoProject procurementnNon-repetitive,progressive environmentnTemporarily established organizationnShort-term cooperationnMostly low-volume quantitynUsually customized product or service
6、Project Procurement ConceptoProject procurement categoriesnMaterials or products nEquipment or toolsnLaborsnProfessional servicesnEntirely engineered systemProject Procurement ConceptoTypes of contractnLump sum contractoCustomized product or complicated systemnUnit price contractoCommodities or stan
7、dard services without predefined quantitynCost+fee contractoProfessional services or laborsProject Procurement ConceptoBasic procedure of project procurementnDefine the project scope:produce or procurenDraft of project procurement plannSource selection and solicitationnProposal evaluation and negoti
8、ationnSupplier selectionnMutual agreement or signing of contractnContract administrationnClose out of the contractPlanning of Project ProcurementoBasic rulesnClearly defined scope is the basis of procurementnDifferent categories of procurement need different types of procedures and methodsnProcureme
9、nt itself costs time and moneynItems on critical path and long-lead items are critical to project implementationnLong-term relation with supplier makes differencenEarly supplier involvement is important to projects successnVariations to contract might contain serious impact on projectPlanning of Pro
10、ject ProcurementoProcedurenDefine the scope of procurementnCategorize and list procurement itemsnSelect contract type,accordinglynDetermine principles of source selectionnDetermine solicitation methods,respectivelynDetermine proposal evaluation method,respectivelynDefine contract administration resp
11、onsibilities and tasksnDefine contract closeout proceduresPlanning of Project ProcurementoContent of project procurement plannScope of procurementnProcurement responsibilities of project team membersnProcedure of procurementnSource selection and solicitationnEvaluation method or criterianTypes of co
12、ntracts or agreementsnMonitoring and managing of procurement contractnCloseout of contractSource Selection and SolicitationoSource selectionnBased on selection procedureoOpenoInvitedoExclusivenBased on supplier categoryoDomestic,joint venture or foreign companyoCompany or individualnBased on supplie
13、r identificationoVendor or service provideroDistributor or dealer/agentSource Selection and SolicitationoSolicitationnMethodsoPublic announcement(media)oSelected invitation(with prequalification)oSelected invitation(without prequalification)oDirect negotiation(long-term partners)nPrinciplesoSelectio
14、n of the solicitation methods:characteristics of products or servicesoPublic funded project:“selective”and“non-discriminative”solicitationBid Evaluation MethodsoBy evaluation criterianLow pricenCost effectivenessnPerformanceoBy procedurenCompetitive bidnNegotiationnTechnical feasibility evaluation+p
15、rice selectionoBy executive bodynProcurement management personnelnThird party or consulting personnelContract AdministrationoOverall responsibilitiesnPreparation and negotiation of contractnMonitoring and managing contractnManaging supplier communicationnManaging supplier relationshipnManaging procu
16、rement changeContract AdministrationoKey tasksnSet up contract administration team and working procedurenPlan for strategies and tactics to deal with suppliers based on their contract typesnIdentify and analyze risks associated with various types of contracts and plan for mitigation strategiesnDevel
17、op and enforce key performance indicators nEstablish supplier reporting requirementsContract AdministrationoKey tasksnMonitor contract execution progress and find any variations to contract in a timely mannernManage variations to contracts,including cost,quality,scope,delivery and any breaches of te
18、rms and conditionsnMake payment schedule and monitor payment procedurenDeal with claims and find appropriate resolutionnManage contract closeout and final auditingnSelect historical procurement documentationConstruction Project ProcurementoOverviewoScope of procurementoProcurement systemoProcurement
19、 methodConstruction Project Process OverviewImplementationDecision MakingDesign PreparationDesignConstructionStartupWarranteeDecision MakingProject ProposalFeasibility StudyDesign SpecificationPreliminary DesignDesign DevelopmentConstruction DocumentConstructionAcceptanceTIMEBusiness AnalysisTechnic
20、al DescriptionTechnical and implementation planningInput of labor,materials,equipment,services,etc.Accounting,resolution of claims,etc.Testing,inspection,evaluation,etc.Construction Project ProcurementoScope of procurementnProfessional servicesoFinancial,technical feasibility analysis,project manage
21、ment,technical consulting,geological survey,design,inspection,testing,legal services,etc.nEngineered systemoEntire system,part of a system,etc.nMaterialoBulk materials,special products,etcnEquipment leasingoEquipment,tools,etc.nLabor supplyoSkilled,non-skilled,etc.Construction Project ProcurementoPr
22、ocurement systemnDesigner led competitive tendernDesigner led construction works managed for feenPackage dealnProject manager/clients representative-ledConstruction Procurement SystemConstruction ProjectProcurement SystemDesigner LedCompetition TenderDesigner Led Construction Managed for a FeePackag
23、eDealProject Manager/Owners Representative LedSeparate ContractsGeneral ContractManagement ContractingConstruction ManagementTurnkeyDesign-BuildOwnerDesigner Led Competitive Tender-Separate ContractsDesignerContractor 1Contractor 2Contractor mSupplier 1Supplier 2Supplier nDesigner Led Competitive Te
24、nder-General ContractorOwner*Owner outsourced tasksGeneral ContractorDesignerSupplierSubcontractor*SubcontractorSubcontractorSubcontractorTIMEDesignConstructionBiddingConstruction Project ProcedureOwnerMC/CMDesignerSubcontractorSubcontractor 1Subcontractor 2Subcontractor mSupplier 1Supplier 2Supplie
25、r nSupplier*Owner outsourced tasks*Designer Led Construction Management for a Fee-Managing Contractor/Construction ManagementTIMEMC/CM Bidding。Construction DocumentConceptual DesignPreliminary DesignConstruction Project ProcedureSubcontractor BiddingPackage Deal Turnkey/Design-buildOwnerDesignerSupp
26、lierSubcontractorTurnkey/Design-build ContractorTIMETurnkey/D-B Bidding。Construction DocumentConceptual DesignPreliminary DesignConstruction Project ProcedureSubcontractor BiddingConstruction Project ProcurementoProcurement methodnCompetitive bidnPerformance based procurementConstruction Project Pro
27、curementoCompetitive bidnThe contractor is selected on the basis of competitionnDetailed design has to be finishednLow bidder preferred,in most casesnUsually adopted for the selection of contractor,subcontractor,material supplier,equipment vendor and special service providernNot applicable for profe
28、ssional services,such as design,engineering,consulting,etc.nNot applicable for laborsnMandatory for public funded project in some countriesScenario of Competitive BidOwnerDesignerSubcontractor 1Subcontractor 2Subcontractor iService Pvd 1Service Pvd 2Service Pvd jSupplier 1Supplier 2Supplier mVendor
29、1Vendor 2Vendor nGeneral Contractor mGeneral Contractor 1General Contractor 2General Contractor 3Competitive BidoAdvantagesnLowest bid price selectednSimplified bid evaluation methodnOpen and justified contract award procedureoDisadvantagesnPossible mistakes and missed items due to hasty bid prepara
30、tionnContradictory view on quality standard between owner and contractornQuality of the work controlled only by project design and specificationnPotential risks of project not identifiednQualification of the contractor not evaluatednProject experiences not used for future referenceConstruction Proje
31、ct ProcurementoPerformance based procurementnThe contractor is selected on the combined basis of contractors performance and owners expectationnContractors overall performance level has been evaluated based on the past performance and ability to minimize the project risksnOwners priority of objectiv
32、es or perception of risks has been taken into account of contractor selectionnFinal output of contractors performance and owners satisfaction will be rated and utilized for future referencePerformance Based ProcurementoProcedurenCollection of the contractors past performance informationnRequest for
33、and rating of risk assessment plan with a final shortlistnInterview with project team and the key personnel with prioritized listnPre-award negotiation and contractor selectionnReporting and rating of contractors performance in the projectPastPerformanceInformationRisk Assessment Plan&Short ListInte
34、rview&PrioritizationPre-AwardPeriodConstruction Reporting&FinalRatingPerformance Based Procurement ProcedureTimeNumber of Competitive FirmsPastPerformanceInformationRisk Assessment Plan&Short ListInterview&PrioritizationPre-AwardPeriodConstruction Reporting&FinalRatingTimePerformance Based Procureme
35、nt ProcedureNumber of Competitive FirmsPast Performance InformationoPast Performance Information will be collected on all critical team components,which may include:The ContractorCritical Individuals(Project Manager,Site Superintendent)Critical Subcontractors(Mechanical,Electrical,Roofing,etc)oThe p
36、erformance of ALL components will impact the overall value of the performance level.1.The team components cannot be changed/modified after the proposal is submitted.PastPerformanceInformationRisk Assessment Plan&Short ListInterview&PrioritizationPre-AwardPeriodConstruction Reporting&FinalRatingTimeP
37、erformance Based Procurement ProcedureNumber of Competitive FirmsRisk Assessment Plan ContentsoThe RA Plan should clearly address the following items:nList and prioritize major risk items(areas that may cause the project to not be completed on time,not finished within budget,generate any change orde
38、rs,or may be a source of dissatisfaction for the owner).nExplain how the builder will avoid/minimize the risk.nProvide a general project schedule documenting general milestones.nPropose any options that could increase the value(expectation or quality)of their work.Short ListoAll of the information c
39、ollected will be inputted into a evaluation modelnPast performance information(all components)nRA Plan ratingoThe model will prioritize the bidders based on the information and predetermined weightsoThe Owner will use the information to identify the firms to be shortlistedPastPerformanceInformationR
40、isk Assessment Plan&Short ListInterview&PrioritizationPre-AwardPeriodConstruction Reporting&FinalRatingTimePerformance Based Procurement ProcedureNumber of Competitive FirmsInterviewsoThe Owner will interview all key personnel.oThey will be interviewed separately and then as a group.oNo substitution
41、s will be allowed after proposals are submittedoInterview period is used to identify how well the personnel understand the project and potential risks.Selecting the Best-ValueoThe interview score(along with the RA Plan Score and Past Performance Information),will be inputted into a final evaluation
42、modeloThe owner will review and analyze the prioritization in the modeloThe owner may select the highest-ranked proposal,or another option based on perceived riskoThe best-valued firm will be invited to the pre-award meetingPastPerformanceInformationRisk Assessment Plan&Short ListInterview&Prioritiz
43、ationPre-AwardPeriodConstruction Reporting&FinalRatingTimePerformance Based Procurement ProcedureNumber of Competitive FirmsObjective of Pre-Award PeriodoReview all identified risks and develop a plan to minimize all risks.oProvide a detailed project schedule.oCoordinate the requirements in detail w
44、ith all critical elements and client.oWork out any conflicts.oAnswer any questions by client.oProvide their QC/QA procedures(quality measurements,housekeeping,etc).oIdentify what they will do if any problems arise.Pre Award MeetingoThe firm will be responsible for identifying how they will minimize
45、all risksoThe firm will provide the QA/QC documentoIf the best-valued firm cannot minimize all of the identified risks(without modifying their time proposal or exceeding the budget),the bidder may withdrawal without penaltyPastPerformanceInformationRisk Assessment Plan&Short ListInterview&Prioritiza
46、tionPre-AwardPeriodConstruction Reporting&FinalRatingTimePerformance Based Procurement ProcedureNumber of Competitive FirmsWeekly Reporting&Post Construction RatingoContractor will document relative information on a weekly basisoAccuracy and timeliness of contractors performance will be factored int
47、o the final close out rating of the firmoThe owner will evaluate the performance of the project upon completionoThe rating will be based on completing the project with no change orders($and time),and overall qualityoAll team components will receive the same ratingoThe rating will be incorporated into the system and used as reference for future projectsp 经常不断地学习,你就什么都知道。你知道得越多,你就越有力量p Study Constantly,And You Will Know Everything.The More You Know,The More Powerful You Will Be写在最后感谢聆听不足之处请大家批评指导Please Criticize And Guide The Shortcomings结束语讲师：XXXXXX XX年XX月XX日
