Civil Engineering Reference
In-Depth Information
5
4
T
Project 5
3
Project 4
T
T
T
Project 3
2
Project 2
T
T
T
Project 1
1
A
T
T
A
0
Contractor A
Contractor B
Contractor C
Contractor D
Figure 9.3
Appetite graph, showing awarded and tendered projects against
engaged contractors.
Meanwhile, Contractor C is currently tendering for only one project
on the programme (Project 3), which if they were to be successful would
represent an expected peak utilisation in year 2 of between 20 and 25
per cent of the firm's capacity.
Finally, the model indicates that Contractor D has been awarded one
project (Project 2) and is currently tendering for a further two projects
across the programme (Projects 3 and 4). If they were awarded both of
the projects they are currently tendering, in addition to the contract
awarded for Project 2, their utilisation could pose a potential risk of
overexposure. The expected peak programme utilisation for Contractor
D would occur in year 2, when it reaches 60 per cent of their capacity
as indicated by the company's previous year's turnover.
This analysis equips the programme team with the information needed
to ask relevant questions of their suppliers during procurement and to
also assess the relative power of the various suppliers during delivery
and help to prepare for any associated negotiations. The aim at this stage
of the programme is to avoid the risk of over-utilisation and a situation
in which the buyer is in a weak negotiating position. While this would
not be to the buyer's advantage, it could be equally damaging for the
supplier.
