Civil Engineering Reference
In-Depth Information
There are many benefi ts to be had, if a programme management team
adopts an overarching strategic approach early in the process. An early
understanding of programme deliverables, attendant risks and con-
straints helps the programme management team to be consistent in
their approach across the programme on all projects and packages.
Knowing what is to be procured and how these procurements are to
be managed is essential for gaining the confi dence of stakeholders, both
on the supply side and on the demand side of the process. Once that
confi dence is established, the programme can be developed with a sound
set of principles for delivery, with the support of both the senior man-
agement and the client's executive team.
The larger the package, the less visibility and transparency is available
to the client, because the greater the fragmentation in the supply chain
tends to be the larger the supply chain. Packaging large construction
procurements inevitably requires subcontractor involvement, with
implications in terms of their capacity and capability. Over-commitment
by tier 2 contractors, and the fact that tier 1 contractors may not be aware
of the outside commitments of their own subcontractors across the
whole programme, can lead to delivery and company failures. Programme
risk exposure to critical tier 2 contractors is a constant, ever-changing
issue that needs to be continually monitored. Where capacity or capabil-
ity is being stretched, warnings need to be given by the programme
supply chain managers to the procurement team, so that planning can be
revised or adjusted accordingly.
Tier 2 market engagement in the planning and packaging of work
needs to take account of the market's ability to deliver the works. This
is also indicative of the validity of the supply chains assembled by the
tier 1 contractors.
The development of a packaging strategy involves planning how
the construction delivery is to be undertaken in relation to the require-
ments of the programme. It takes into account the scope and scale
of each package, the interface between adjacent projects, the delivery
risk and the schedule for completion. The programme sets out the pri-
orities of what exactly is to be delivered and a timetable for each delivery
item, including the necessary infrastructure to enable and assist in
that delivery. This timetable is then used to inform the procurement
strategy and drive the procurement plan. The tender event schedule
(TES), shown in the upper part of Figure 4.2, is an example of a time-
table against which the progress of each package procurement can be
monitored.
