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Running Head:CLIENT PROJECT

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Module Title: Procurement and Supply Chain Management

Module Code Number: KB7035

Module Leader: Dr. Victor Samwinga

Coursework Title: Procurement Report

Student Id: W21058268

Department of Mechanical and Construction Engineering

Northumbria University, Newcastle upon Tyne, NE18ST, United Kingdom

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Contents

Executive Summary .................................................................................................................. 3

Procurement ‘road map’ for the client ...................................................................................... 4

Introduction ............................................................................................................................... 4

Suitable Procurement Arrangement .......................................................................................... 7

Suitable Standard Form of Contract ......................................................................................... 9

Suitable Tendering Strategy ...................................................................................................... 9

Agreeing Price with Contractor .............................................................................................. 10

The relevance of supply chain management ........................................................................... 11

The importance of developing and maintaining relationships between the client and

stakeholders in the procurement process ................................................................................ 15

Conclusion .............................................................................................................................. 20

References ............................................................................................................................... 21

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Executive Summary

This report details a procurement ‘road map’ to guide Urbanite Ltd. on how to successfully

procure the various works and services, as well as other key consultants and project

participants, to meet the project requirements and ensure stakeholder engagement.

The most suitable procurement arrangement for this project is a two-stage process. This

involves the engagement of professional advisors at the outset, who will provide advice and

guidance to the client during the procurement process. The main standard form of contract is

the Joint Contracts Tribunal (JCT) Design and Build Contract 2016. The most suitable

tendering strategy is a two-stage tendering process involving the submission of a pre-

qualification questionnaire (PQQ) by potential contractors, followed by the submission of a

tender document by shortlisted contractors. The mechanism for agreeing the price with the

main contractor involves the submission of a cost proposal by the contractor, which is

reviewed and approved by the client.A collaborative approach to supply chain management

should be taken, as this has the potential to improve the effectiveness and efficiency of the

project. This involves the active participation of stakeholders from different parts of the

supply chain, and can include elements such as joint planning, the sharing of resources, and

the development of trust and mutual understanding. It is also important to consider the

importance of stakeholder engagement in the project, as this can help to ensure that the

project meets the needs and expectations of the stakeholders, and can help to build trust and

understanding between the client and stakeholders (Xia,2018)1.

1Xia, N., Zou, P. X., Griffin, M. A., Wang, X., &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), 701-715.

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Procurement ‘road map’ for the client

Introduction

The client, Urbanite Ltd., is looking to procure the construction of the student

accommodation project in Leicester in order to meet the budget and schedule for completion

by September 2024. In order to do this, it is important to identify the needs of the client and

the stakeholders, as well as the best procurement arrangement, contract form and tendering

strategy for the project.

In this report, a detailed procurement ‘road map’ has been developed to provide guidance to

the Urbanite Ltd. on how to procure the various works and services, as well as other key

consultants and project participants, to meet the project requirements and ensure stakeholder

engagement.

Identification of Client and Stakeholder Needs

The most suitable procurement arrangement for this project is a two-stage process. This

process involves the engagement of professional advisors at the outset, who will provide

advice and guidance to the client during the procurement process (Xia,2018). This includes

advice on the most suitable main standard form of contract, the most suitable tendering

strategy, and the mechanism for agreeing the price with the main contractor.

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Source: https://images.app.goo.gl/MsVRq7Akj9rWvfPv9

The first stage of the procurement process involves the selection of the professional advisors

and the preparation of the tender documents. This stage involves the selection of the

professional advisors, who will provide advice and guidance to the client during the

procurement process. It also involves the preparation of the tender documents, which will

include the project brief, the scope of works, the list of services, the selection criteria, the

evaluation criteria, and any other relevant documents, (de Oliveira,2019)2.

Once the tender documents are prepared, the second stage of the procurement process

involves the invitation to tender and the evaluation of the tenders. This stage involves the

invitation to tender and the evaluation of the tenders that are submitted by the potential

contractors. The evaluation criteria used will include price, quality, and experience of the

contractor (de Oliveira,2019).

2de Oliveira, G. F., &Rabechini Jr, R. (2019). Stakeholder management influence on trust in a project: A

quantitative study. International journal of project management, 37(1), 131-144.

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Before the Urbanite Ltd. can begin to devise a procurement strategy, they must first identify

the needs of the client, as well as the needs of the stakeholders. This can be done through a

comprehensive needs analysis, which should consider the project requirements, the

objectives of the client, and the potential impacts on the stakeholders.

The client’s needs for this project are to ensure that a high quality, cost-efficient student

accommodation is delivered on time and to the exacting standards expected. The client is

also keen to ensure that the project is sustainable, which was a key sticking point with the

local residents (Nataliia,2018). Furthermore, the client is keen to have a procurement process

which is efficient, cost-effective and offers flexibility to make limited design changes where

necessary.

The project brief outlines the proposed development, which includes an eight-storey

residential block with 205 bedrooms, as well as a suite of communal amenities. The project

also has some key features, such as an 18-month finance facility, close proximity to the

Highcross Shopping Centre and two universities, and a small but experienced internal team

of professionals (Nataliia,2018). Additionally, the project must be completed to a high-

quality standard and within budget, while also taking into account the need for flexibility to

make limited design changes (Nataliia,2018)3.

The stakeholders of the project must also be taken into consideration. The initial objections

from the Woodgate Residents have been pacified, however, there are still some residents who

remain opposed to the project and have formed the Residents Against Waterside

Development (RAWD). The concerns of RAWD include the scale of the development, the

3Nataliia, D., Dmytro, C., & Igor, C. (2018, September). Modeling of the processes of stakeholder involvement

in command management in a multi-project environment. In 2018 IEEE 13th International Scientific and

Technical Conference on Computer Sciences and Information Technologies (CSIT) (Vol. 1, pp. 29-32). IEEE

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potential increase in traffic, the limited economic benefits, and the potential loss of trees and

biodiversity. All of these concerns must be addressed in the procurement strategy to ensure

successful stakeholder engagement (Nataliia,2018).

Suitable Procurement Arrangement

The most suitable main standard form of contract for this project is the Joint Contracts

Tribunal (JCT) Design and Build Contract. This is a standard form of contract that is suitable

for construction projects of this size and complexity. It is suitable for projects where the

client wishes to have an integrated team of professionals, as it allows for collaboration

between the client, the contractor, and the other members of the supply chain,

(Leonidou,2020).

The Joint Contracting Team (JCT) is an organization that speaks for numerous stakeholders

in the construction sector. In the eight decades since its inception, the Joint Contracts

Tribunal (JCT) has developed industry-wide contracts and guiding notes as industry

standards. So, whenever you hear the term "JCT contract," it usually refers to a generic

construction agreement.

Typically, a "employer" and a "contractor" will enter into a JCT contract in order to

streamline the construction project delivery process. They detail everything from the

responsibilities of each party to the total price and scope of the project. What needs to be

done, by when, who needs to execute the task, and how much it will cost, may all be clearly

laid out for everyone involved.

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Source: https://images.app.goo.gl/wHZ4h1MD5ma1J1RR9

The JCT Design and Build Contract includes detailed provisions that cover the scope of

works, the quality of work, the payment terms, the risk allocation, and the dispute resolution

process. It also provides detailed provisions regarding the allocation of responsibility and

liability between the client and the contractor(Leonidou,2020).

The JCT Design and Build Contract also includes a mechanism for agreeing the price for the

project with the main contractor. It includes a provision for the contractor to submit a cost

proposal that must be approved by the client before the works can

commence(Leonidou,2020).

The Urbanite Ltd. must select a procurement arrangement that meets the project requirements

and accommodates the needs of the stakeholders. The most suitable option for this project is

a traditional design and build arrangement. This is a common procurement method used

when the employer has a clear vision of what they want, but the design and construction of

the project needs to be undertaken by a single contractor. This arrangement allows the

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Urbanite Ltd. to maintain control of the design and cost, while allowing the contractor to

provide cost certainty and manage the construction process (Leonidou,2020).

Suitable Standard Form of Contract

The Urbanite Ltd. must also select a suitable main standard form of contract. The most

suitable option for this project is the JCT Design and Build Contract 2016. This contract

provides a comprehensive framework for the design, construction, and completion of the

project. It is suitable for a traditional design and build arrangement, as it provides for the

appointment of a single contractor responsible for both design and construction, and it allows

the employer to retain control of the design and cost (Leonidou,2020)4.

Suitable Tendering Strategy

The most suitable tendering strategy for this project is a two-stage tendering process. This

involves the submission of a pre-qualification questionnaire (PQQ) by potential contractors,

followed by the submission of a tender document by shortlisted contractors.

The PQQ is designed to ensure that the contractors who are invited to tender for the project

have the relevant experience and capabilities to carry out the works. The PQQ should include

questions about the contractor’s experience in similar projects, their financial stability, and

any other relevant information (Belyaeva,2020).

The tender document should include detailed information about the scope of works, the

quality of work, the payment terms, the risk allocation, and the dispute resolution process.

4Leonidou, E., Christofi, M., Vrontis, D., &Thrassou, A. (2020). An integrative framework of stakeholder

engagement for innovation management and entrepreneurship development. Journal of Business

Research, 119, 245-258.

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The tender document should also include details of the contractor’s proposed methodology

for carrying out the works, and their proposed timescale for completion of the works.

The tender document should also include the contractor’s proposed price for the works. The

price should be based on the scope of works and should be in line with the budget that has

been allocated for the project (Belyaeva,2020).

Price agreement with Contractor

Mechanism for Agreeing the Price for the Project with the Main Contractor

The mechanism for agreeing the price for the project with the main contractor should involve

the submission of a cost proposal by the contractor. The cost proposal should include an

itemised list of the works to be carried out and the associated costs. The client should review

the cost proposal and provide feedback to the contractor (Belyaeva,2020).

The contractor should then review the feedback from the client and adjust the cost proposal

accordingly. The client should then review the revised cost proposal and provide further

feedback to the contractor. This process should be repeated until a cost proposal is agreed

between the client and the contractor (Belyaeva,2020)5.

Once the cost proposal has been agreed, the contractor should submit a signed copy of the

cost proposal, along with any other relevant documents, to the client. The client should then

review the documents and, if satisfied, approve the cost proposal and sign it. The cost

proposal should then form part of the contract.

5Belyaeva, Z., Shams, S. R., Santoro, G., &Grandhi, B. (2020). Unpacking stakeholder relationship

management in the public and private sectors: the comparative insights. EuroMed Journal of

Business, 15(3), 269-281.

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Once the cost proposal has been approved and signed by both parties, the contractor can

begin the works. The contractor will be responsible for carrying out the works in accordance

with the terms of the contract, including the agreed cost proposal.

In summary, this report has provided a detailed procurement ‘road map’ for the Urbanite

Ltd. The road map provides guidance on how to identify the client and stakeholder needs, as

well as the most suitable procurement arrangement, main standard form of contract,

tendering strategy, and price agreement mechanism for the project. By following this road

map, the Urbanite Ltd. can ensure that the project is procured and completed in a timely,

cost-effective, and high-quality manner (Belyaeva,2020).

Budget

Item Cost

Professional fee £20,000

Materials £15,000

Labor £25,000

Plant and equipment £10,000

Transport and Logistics £5000

Contingency £5000

Total £70,000

The relevance of supply chain management

Supply chain management (SCM) is a term used to describe the process of planning,

implementing, and controlling the operations of the supply chain as a whole. It involves

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coordinating and integrating all activities in the supply chain—from product development,

sourcing, production, and logistics to the delivery of the final product to the end customer—

in order to meet customer requirements. SCM is an essential part of any business, as it is a

key factor in ensuring the success of the company.Supply chain management is an essential

part of any successful business development project, and it is no different for the proposed

student accommodation project (de Oliveira,2019). The client, Urbanite Ltd, needs to

consider the various aspects of supply chain management in order to ensure the successful

completion of the project. This includes the management of relationships between the client,

contractors, and suppliers; the design and planning of the project; and the procurement of

materials, services, and labor.

The client should consider a collaborative approach to supply chain management, as this has

the potential to improve the effectiveness and efficiency of the project. Collaborative

approaches involve the active participation of stakeholders from different parts of the supply

chain, and can include elements such as joint planning, the sharing of resources, and the

development of trust and mutual understanding. This type of approach can reduce transaction

costs, improve communication, and increase the speed of decision making. It also has the

potential to reduce waste and improve quality, as stakeholders have a greater understanding

of the project and the needs of each other.

A collaborative approach will also be beneficial when it comes to the procurement process.

By engaging in collaborative procurement, the client will be able to ensure that the best

possible suppliers are selected for the project and that the project is completed on time and

within budget. The client will also be able to leverage the expertise of the supply chain to

ensure that the project is completed to the highest standards. In addition, the client will be

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able to ensure that the project is completed in accordance with the client’s sustainability

goals.

The client should also consider the importance of stakeholder engagement in the project. It is

important that stakeholders are involved in the decision-making process and that their views

are taken into account (de Oliveira,2019). This can help to ensure that the project meets the

needs and expectations of the stakeholders, and can help to build trust and understanding

between the client and stakeholders. This will ensure that all stakeholders are kept informed

of the progress of the project and that their concerns are addressed in a timely manner. This

will also ensure that all stakeholders are aware of any changes to the project and that any

objections are addressed in a timely and effective manner.

In the context of the proposed student housing project, the client, the developer, should

consider leveraging the benefits of supply chain management to ensure the success of the

project. The client should consider incorporating a collaborative approach throughout the

project. This will allow the client to ensure that all stakeholders are aligned in terms of their

goals and objectives and that everyone is working towards the same end goal. This will also

allow the client to ensure that all stakeholders are able to leverage their respective strengths

and contribute to the success of the project (de Oliveira,2019).

In addition, the client should also consider the potential benefits of incorporating

sustainability features into the project. This includes utilizing green technologies and

materials, such as energy efficient lighting and insulation, as well as the use of renewable

energy sources. This type of approach can reduce the carbon footprint of the project, as well

as the long-term costs associated with running the student accommodation.

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In terms of the procurement process, the client should consider the various methods

available, such as competitive tendering, subcontracting, and direct purchase. The most

appropriate method should be selected based on the nature of the project and the resources

available. The client should also consider ways to reduce the risk associated with the

procurement process, such as the use of warranties and performance bonds (de

Oliveira,2019).

Supply chain management and a collaborative approach are essential for the

success of the proposed student housing project. The client should consider leveraging the

benefits of supply chain management and a collaborative approach to ensure that the project

is completed on time, within budget, and to the highest standards. By engaging in

collaborative procurement, stakeholder engagement, and other aspects of supply chain

management, the client will be able to ensure that the project is completed successfully and

that all stakeholders are satisfied with the outcome.

Finally, the client should consider their overall business needs when it comes to supply chain

management. This includes considering the impact of the project on their future projects,

such as the Sugarwell Court Development in Leeds and the Exeter Heavitree Road

Development in Exeter (de Oliveira,2019). The client should ensure that the procurement

strategy for this project is aligned with their overall business strategy, and that it will benefit

them in the long term. The client should consider the various aspects of supply chain

management and the importance of collaborative approaches for the proposed student

accommodation project. This includes incorporating sustainability features, engaging

stakeholders, selecting an appropriate procurement method, and considering their overall

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business needs. By doing so, the client can ensure that the project is successful, and that it

will benefit them in the long term.

The importance of developing and maintaining relationships between the client and

stakeholders in the procurement process

The procurement process is a critical part of any project, and the success of a project is

highly dependent on the ability of the client and stakeholders to work together in harmony to

ensure that the project is completed on time and on budget. The procurement process requires

the client and stakeholders to engage in a collaborative effort to ensure that the project is

completed to the highest standards and within the agreed timeframe. The development of

strong relationships between the client and stakeholders is essential to ensure that the project

is a success and that the desired outcome is achieved.

The importance of developing and maintaining relationships between the client and

stakeholders in the procurement process is paramount in order to ensure the successful

completion of the project. From the outset, it is essential that the client and stakeholders have

a clear understanding of their respective roles and responsibilities (Pedrini,2018). This will

ensure that all parties are aware of what is expected of them and how they should work

together to achieve the desired outcome. The client must be clear on the goals and objectives

of the project and the stakeholders must be clear on their role in the process. A strong

relationship between the client and stakeholders is essential as this will ensure that all parties

are working together towards the same goal.

Good communication is key to the success of the procurement process. The client and

stakeholders should be encouraged to communicate openly and honestly with each other to

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ensure that any potential issues are addressed and resolved quickly and effectively. This will

ensure that the project remains on track and that the desired outcome is achieved. The client

should ensure that all stakeholders are kept informed of any changes or developments

throughout the procurement process and that all parties are given the opportunity to provide

input and feedback. This will ensure that all stakeholders are aware of the progress of the

project and that any issues are addressed in a timely manner (Danso,,2020)6.

The client must ensure that the stakeholders are consulted and involved in the decision-

making process. This will ensure that all parties have a clear understanding of the decisions

that have been made and that their views and opinions have been taken into account. This

will help to ensure that the project is completed to the highest standards and within the

agreed timeframe (Pedrini,2018).

The client must also ensure that due diligence is carried out on the stakeholders. This will

ensure that the stakeholders have the necessary experience and expertise to complete the

work required and that they are able to deliver the desired outcome. This will also help to

reduce the risk of any potential issues arising during the procurement process.

The client must also ensure that all stakeholders are aware of the potential risks associated

with the project and that they are able to identify and address any potential issues. This will

ensure that the project remains on track and that the desired outcome is achieved. The client

should also ensure that the stakeholders are aware of any potential legal implications and that

6Danso, A., Adomako, S., Lartey, T., Amankwah-Amoah, J., &Owusu-Yirenkyi, D. (2020). Stakeholder

integration, environmental sustainability orientation and financial performance. Journal of business

research, 119, 652-662.

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they are able to take the necessary steps to ensure that the project is completed in accordance

with the law.

The client must also ensure that the stakeholders are aware of the potential environmental

implications of the project and that they are able to identify and address any potential issues.

This will help to ensure that the project is completed in an environmentally responsible

manner and that any potential environmental damage is avoided (Pedrini,2018)7.

Finally, the client must ensure that the stakeholders are aware of the potential economic

implications of the project and that they are able to identify and address any potential issues.

This will help to ensure that the project is completed in a manner that is economically viable

and that any potential economic damage is avoided.

The development and maintenance of strong relationships between the client and

stakeholders in the procurement process is essential in order to ensure the successful

completion of the project. Good communication and collaboration between the client and

stakeholders is key to the success of the project and must be encouraged at all stages of the

process (Pedrini,2018). The client must ensure that the stakeholders are consulted and

involved in the decision-making process and that due diligence is carried out on the

stakeholders. The client must also ensure that the stakeholders are aware of the potential risks

associated with the project and that they are able to identify and address any potential issues.

The client must also ensure that the stakeholders are aware of the potential environmental

7Pedrini, M., &Ferri, L. M. (2018). Stakeholder management: a systematic literature review. Corporate

Governance: The International Journal of Business in Society, 19(1), 44-59.

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and economic implications of the project and that they are able to identify and address any

potential issues8 (Jakhar,2018).

Stakeholder/client objectives and responsibilities

Objectives

Client Stakeholders

Ensure that the project is

completed on time and on

budget, and to the highest

standards.

Support the client in

achieving the desired

outcome of the project.

Responsibilities Set clear goals and

objectives, communicate

openly and honestly with

stakeholders, ensure that all

stakeholders are kept

informed of any changes or

developments, ensure that

stakeholder input and

feedback is taken into

account, ensure that due

diligence is carried out on

the stakeholders, ensure that

Understand the roles and

responsibilities associated

with the project,

communicate openly and

honestly with the client,

provide input and feedback

as requested, understand the

potential risks associated

with the project, and

understand the potential

environmental and

economic implications of

8Jakhar, S. K., Mangla, S. K., Luthra, S., &Kusi-Sarpong, S. (2018). When stakeholder pressure drives the

circular economy: Measuring the mediating role of innovation capabilities. Management Decision.

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the stakeholders are aware

of the potential risks

associated with the project,

and ensure that the

stakeholders are aware of

the potential environmental

and economic implications

of the project.

the project.

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Conclusion

In conclusion, the Urbanite Ltd. can successfully procure the construction of the student

accommodation project in Leicester by following the procurement ‘road map’ outlined in this

report. This includes identifying the needs of the client and stakeholders, selecting the most

suitable procurement arrangement, main standard form of contract, and tendering strategy for

the project, and agreeing the price with the main contractor. A collaborative approach to

supply chain management and stakeholder engagement will also be beneficial to the success

of the project. By following this ‘road map’, the Urbanite Ltd. can ensure that the project is

completed on time and to budget, while also taking into account the needs and expectations

of the stakeholders.

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References

Xia, N., Zou, P. X., Griffin, M. A., Wang, X., &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), 701-715.

de Oliveira, G. F., &Rabechini Jr, R. (2019). Stakeholder management influence on trust in a

project: A quantitative study. International journal of project management, 37(1),

131-144.

Nataliia, D., Dmytro, C., & Igor, C. (2018, September). Modeling of the processes of

stakeholder involvement in command management in a multi-project environment.

In 2018 IEEE 13th International Scientific and Technical Conference on Computer

Sciences and Information Technologies (CSIT) (Vol. 1, pp. 29-32). IEEE.

Nataliia, D., Dmytro, C., & Igor, C. (2018, September). Modeling of the processes of

stakeholder involvement in command management in a multi-project environment.

In 2018 IEEE 13th International Scientific and Technical Conference on Computer

Sciences and Information Technologies (CSIT) (Vol. 1, pp. 29-32). IEEE.

Leonidou, E., Christofi, M., Vrontis, D., &Thrassou, A. (2020). An integrative framework of

stakeholder engagement for innovation management and entrepreneurship

development. Journal of Business Research, 119, 245-258.

Belyaeva, Z., Shams, S. R., Santoro, G., &Grandhi, B. (2020). Unpacking stakeholder

relationship management in the public and private sectors: the comparative

insights. EuroMed Journal of Business, 15(3), 269-281.

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Pedrini, M., &Ferri, L. M. (2018). Stakeholder management: a systematic literature

review. Corporate Governance: The International Journal of Business in

Society, 19(1), 44-59.

de Oliveira, G. F., &Rabechini Jr, R. (2019). Stakeholder management influence on trust in a

project: A quantitative study. International journal of project management, 37(1),

131-144.

Leonidou, E., Christofi, M., Vrontis, D., &Thrassou, A. (2020). An integrative framework of

stakeholder engagement for innovation management and entrepreneurship

development. Journal of Business Research, 119, 245-258.

Marrucci, L., Daddi, T., &Iraldo, F. (2022). Institutional and stakeholder pressures on

organisational performance and green human resources management. Corporate

Social Responsibility and Environmental Management.

Barney, J. B., & Harrison, J. S. (2020). Stakeholder theory at the crossroads. Business &

Society, 59(2), 203-212.

Wijethilake, C., & Lama, T. (2019). Sustainability core values and sustainability risk

management: Moderating effects of top management commitment and stakeholder

pressure. Business Strategy and the Environment, 28(1), 143-154.

Jakhar, S. K., Mangla, S. K., Luthra, S., &Kusi-Sarpong, S. (2018). When stakeholder

pressure drives the circular economy: Measuring the mediating role of innovation

capabilities. Management Decision.

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Danso, A., Adomako, S., Lartey, T., Amankwah-Amoah, J., &Owusu-Yirenkyi, D. (2020).

Stakeholder integration, environmental sustainability orientation and financial

performance. Journal of business research, 119, 652-662.

Stocker, F., de Arruda, M. P., de Mascena, K. M., &Boaventura, J. M. (2020). Stakeholder

engagement in sustainability reporting: a classification model. Corporate Social

Responsibility and Environmental Management, 27(5), 2071-2080.

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Appendices

Appindex-1

Source: https://images.app.goo.gl/VLQE3wfF5g5QB6nEA

Appindex-

Source: https://images.app.goo.gl/ukPJMKXiyiBsmicBA