To coincide with our Association event Procuring for Broader Social and Economic Value on 1st April, we have collated a set of questions, with associated resources offering some of the answers, that explore the subject major project procurement. These resources are only a fraction of what is available in our Knowledge Repository. Please use the comments section to this post to share other resources that you’ve found helpful.
When it comes to music, doing the same thing over and over again seems to be a surefire route to success. At least on the basis that the series ‘Now That’s What I Call Music’ has now reached Volume 108 and shows no sign of running out of tracks. Unfortunately, when it comes to major project procurement repeating what you did last time, whilst it may have the merit of consistency and familiarity, is pretty much guaranteed to fail (consistency is a b******d for enabling you to repeat shortcomings).
What Does the Procurement Landscape Tell You About the Risks?
What does it look like when your preferred approach to procurement proves unfit for the task at hand?
In November 2016, more than two years after negotiations began, it was decided to change the acquisition contract from the firm fixed price model that had been part of the June 2013 request for tender.
How much is all this costing and why?
Repeating 2018’s findings, over 75% of respondents continued to report Project Manager (PM) or Engineer’s conduct was always or very often at the heart of how the dispute crystallized. The most common cause when the PM or Engineer’s conduct was at the heart of a dispute
crystallizing was a lack of understanding of the procedural aspects of the contract.
How much are we spending, with whom and to what effect?
Despite the scale of spending on procurement and outsourcing – and increasing financial problems in parts of the sector – the data available on procurement and outsourcing is poor. Every day, public bodies procure hundreds of millions of pounds’ worth of goods, works and services. With a clearer picture of how much is spent, on what and with which suppliers, government could make better-informed spending decisions and make significant savings.
What Different Models Might be Available?
What does the governance of collaboration look like?
During execution, collaborative projects are typically governed by a joint management structure or regularly convened board with an explicit contractual obligation for all parties to make decisions in the project’s best interest.
How are other organizations or countries organizing for delivery?
We have moved from being asset intensive to being customer centric, which is entirely the watchword of the business. It is not a case of having an asset that we need to do something with, it is about how we can make that asset benefit the customer.
Why do complex delivery models need imaginative management?
From the outset, the commercial model for Anglian Water’s @one Alliance has been developed with a focus on behaviours. The
commercial model was recognised as being the means by which the right behaviours would be generated – and was therefore a fundamental building block for the whole @one Alliance environment.
How were collaboration and incentivisation crucial to successful delivery?
Each of the supply chain partners had a series of incentivised milestones that they had to achieve, but they were only rewarded if everyone achieved their milestones, bringing cross-fertilisation and cross-alignment of incentives – either all succeed together, or all fail together.
And What About Tools?
What might be the role of technology?
The idea is that creating a single, transparent, authoritative, immutable ledger of goods moving through a supply chain, which all members of that supply chain can trust, might help to track the provenance of goods.
What would happen if your contracts were all limited to 500 words?
Magical porridge pots, Richard III and digital disasters versus empowerment, collaboration and innovation. Sarah Fox of legal consultancy, 500 Words, describes the challenges, opportunities and the future of construction contracts with humour, eloquence and insight.
If everything is changing how can our contracts change with them?
Can existing suspension rights, penalties, termination rights under the contract be compromised in favour of an adjustment to time completion/KPIs/sectional completion?
What might be the basis for rethinking your approach?
We believe that many, and perhaps most, of the problems we see across commercial and contracting activities result from a failure to plan how best to achieve operational requirements through commercial arrangements. In other words, departments jump to buying without developing a full commercial strategy.