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PPMP20011 Contract and Procurement Management - Central Queensland University

With the current ongoing pandemic of COVID 19, Australian governments is initiating a prompt response to cope with this emergency through delivering $2.4 billion health package to protect people and community. One of the aims of this package is to manage the demand on the health system and assist the community to act against COVID19.

Part of this fund is directed towards supporting and increasing the capacity of the health sector in NSW. This includes launching urgent projects to counterattack the unprecedented conditions and to limit the spread of the virus.

This fund for the NSW includes the four main key projects as follow:

1. Project 1: The construction of new fully equipped medical facilities to relieve the pressure on existing facilities. To do so, the government has been advised to follow modular and prefab architecture and construction.
2. Project 2: Provide the necessary ventilators, accessories, installation, testing and other supplies that will serve the current needs where the health system capacity has been stretched to the maximum.
3. Project 3: Construct new hotel to provide proper accommodation for the staff working in the centre as well as providing secure quarantine place for growing Covid19 cases.
4. Project 4: Connecting roadway to link the new medical center with the free way/city

1. Fully equipped hospital with up to 2000 beds. The work will start with 1250 beds immediately and then a second phase with 1000 beds. You need to recommend the route and the contract accordingly.
o The hospital to include advance intensive care unit with up to date standards
o The Hospital to ensure high quality standards with no infection or outbreak could take place.
o The hospital is intended to accommodate all COVID 19 cases (growing cases are also considered).
o Up to date laboratories
o The hospital will remain in operation even after this virus pandemic comes to an end (hopefully ASAP!) where facilities will be utilised to serve the community afterwards for next decades.

2. The fund also included immediate buying of 2500 ventilators as a matter of emergency. The government has no options to get these from overseas.

3. The project includes appointing and employing qualified doctors, nurses and admin staff to run the hospital. The government may conduct this task or can subletting to a local HR company? You may need to recommend an approach and explain why?

4. The plan includes the construction a basic hotel (next to the medical center) that provides accommodation for all working staff as well as to quarantine Covid 19 cases.
o The hotel has a maximum capacity of 300 rooms (5 story building) with and equipped with all necessary facilities to support the staff during the pandemic period and will remain in service for the same purpose through the post pandemic period
o It is equipped with all necessary facilities including kitchen, dining, food court, gym, swimming pool and others to ensure convenient residency.
o Proper isolation section is attached to the hotel and used to quarantine the Covid 19 cases
o The two parts (staff accommodation and quarantine part) can be constructed concurrently and independently with minimum interconnectivity.
5. The project also includes urgent pavement work to construct a 3 KM carriage way to connect the hospital and the hotel to the main freeway. This includes a dual carriage way construction road with 2 lanes each

Assessment 2: Case Study

• The CQUEngineers Consultancy Firm in NSW-Australia was selected to manage this fund on behalf of the owner. Therefore, CQUEngineers is taking the role of the OWNER
• You, as a project manager working at CQUEngineers Consultancy Firm were assigned as a program manager to manage this fund on behalf of the firm due to your in-depth experience in procurement management.
• The consultancy firm has long and extensive experience in construction projects BUT low experience in roadways and health sector and supplies.
• You may need to make various assumptions (all assumptions to be listed and justified).
• You have got the flexibility to manage the procurement plans, routes and contracts to undertake the above project aspects considering the constraints and limitations as well as the details and requirements.
• Since this is an urgent project, there are unexpected details and design requirements and the projects are prone to frequent design changes and requirement leading to many variation orders.
• Remember some aspect may considered as unique project in terms of scope, time and cost and your task is to plan the project procurement accordingly referring to above points

Expectations
Introduce to the case study whilst explaining the concept of the procurement and contract strategy. This needs to show your understanding to the procurement strategies and value for money in reflection to the case study
You may discuss various procurement routes (minimum 3 routs) that could be used and how each route can work.

Based on this discussion you will select the most suitable route and justify (in line with the project nature and requirements) why do you think so comparing to other routes. So why other routes were excluded

Keep your answer specific and concise in line with the requirements and project data. To make it easy for you, explain your answer based on the following eight parameters:

1- Time
2- Cost
3- Quality (level of service) 4- Changing orders
5- Complexity
6- Risk
7- Management capacity and experiences
8- Responsibility and other issues
If you select recommend a specific procurement route, what are the risks associated with the selected route from the owner point view.
What are risks from contractor view? How to mitigate and minimise the risks ?
What type of contract you recommend (based on the selected route).
Multiple contracts may be selected to suite each project! Why do you think this is a suitable contract from Owner point view?
Advantages/disadvantages and how this satisfy the project requirements
• Develop a rough budget (cost estimates) for one of the sub-projects. You can work on wither the HOTEL OR the Carriageway (One Project only)
• You need to list the main items within the project (details)
• Estimate the budget for each item (valid assumptions)
• Give detailed calculation for the item cost including (Direct and indirect) cost
• Provide a detail of your assumptions
• You may need to be as close as possible to the figures/ estimates at NSW (any reference will be accepted)
• It is fine to make your own assumptions. Budget breakdown must contain at least five main project tasks/ items and maximum ten items.
• One of the project aspects is to employ qualified staff and buy necessary supplies including ventilators. What are the negotiation strategy you will follow.
• Identify your BATNA and make any assumptions

Attachment:- Contract and Procurement Management.rar