Topic 3: Procurement and Contracting

Your Australian based company will be bidding for the construction of a football stadium, similar in scope and complexity, to the Millennium Stadium.  The stadium is to be constructed in Country X (Country X is a country of choice, but not the UK).

One of the main challenges in conducting the project in your chosen jurisdiction is to secure the services of suitably qualified and capable local sub-contractors for the supply of key services, materials and equipment.

From your company’s perspective you need to engage with the relevant local sub-contractors prior to submitting your proposal for the Design and Construction of the stadium.  In preparing for your tender submission, you need to:

1. Define the major work packages that you will require sub-contractors for (not more than 3): [mark – 10]
2. Define a procurement strategy (as comprehensive as you deem necessary) to engage the relevant sub-contractors (through a selective tendering process); [mark – 30]
3. Define the tendering process, with specific reference to your evaluation criteria (and weightings) to identify the most suitable sub-contractors; and [mark – 10]
4. Define the key performance metrics that you will incorporate in your contract management plan, which measures the performance of your subcontractors. You also need to illustrate how and when, your company – as the prime contractor – will provide your Client visibility of the performance of these sub-contractors.  [mark – 10]

In addition to these specific requirements identify three key lessons learned from the Millennium Stadium project that you believe are critical to incorporate in your company’s dealings with its sub-contractors to ensure a successful contract and project delivery.

Use the information from the Millennium Stadium case study to inform the development of your company’s procurement strategy, tender evaluation process, and sub-contractor performance measures.

Notes:

• Assume that you have sufficient time to run a full tendering process to engage the most suitable local sub-contractors; and
• Identify suitable local conditions, methods of contracting, standard forms of contact, etc., for your chosen location.