Overview
This Contract and Procurement Management unit will equip you with the knowledge, skills and techniques required for acquiring external products, results and services to meet the needs of the company and to achieve the project goals. It also offers you the opportunity to identify, apply and develop different negotiation strategies as well as assessing and responding to the potential risks encountered during the procurement. You will study contract types, procurement standards, legal and ethical aspects of commercial contracts as well as project tendering and awarding. On successful completion of this unit, you will have the capacity to apply the appropriate practices for managing contracts, conflicts, delays, claim and disputes.
Details
Pre-requisites or Co-requisites
Co- requisites: (PPMP20007, PPMP20008)
Important note: Students enrolled in a subsequent unit who failed their pre-requisite unit, should drop the subsequent unit before the census date or within 10 working days of Fail grade notification. Students who do not drop the unit in this timeframe cannot later drop the unit without academic and financial liability. See details in the Assessment Policy and Procedure (Higher Education Coursework).
Offerings For Term 2 - 2019
Attendance Requirements
All on-campus students are expected to attend scheduled classes – in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).
Recommended Student Time Commitment
Each 6-credit Postgraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.
Class Timetable
Assessment Overview
Assessment Grading
This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of ‘pass’ in order to pass the unit. If any ‘pass/fail’ tasks are shown in the table above they must also be completed successfully (‘pass’ grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the ‘assessment task’ section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University’s Grades and Results Policy for more details of interim results and final grades.
All University policies are available on the CQUniversity Policy site.
You may wish to view these policies:
- Grades and Results Policy
- Assessment Policy and Procedure (Higher Education Coursework)
- Review of Grade Procedure
- Student Academic Integrity Policy and Procedure
- Monitoring Academic Progress (MAP) Policy and Procedure – Domestic Students
- Monitoring Academic Progress (MAP) Policy and Procedure – International Students
- Student Refund and Credit Balance Policy and Procedure
- Student Feedback – Compliments and Complaints Policy and Procedure
- Information and Communications Technology Acceptable Use Policy and Procedure
This list is not an exhaustive list of all University policies. The full list of University policies are available on the CQUniversity Policy site.
Feedback, Recommendations and Responses
Every unit is reviewed for enhancement each year. At the most recent review, the following staff and student feedback items were identified and recommendations were made.
Feedback from Evaluation Through Moodle Site
The lecturer was really good and has extensive knowledge in the subject he was able to explain everything with real-life experience. Enjoyed the lecture. Gained a really good knowledge about procurement management. Assignments were designed really well to question our learning experience.
Keep the assessment task related to real-life case studies and simulates real situations.
Feedback from Evaluation Through Moodle Site
The update of the unit resources has positively impacted students' learning.
Keep the changes to ensure good students' engagement.
Feedback from Evaluation Through Moodle Site
Students highly admired the practical experience they got through explaining the unit content using real case studies, examples and personal experience. The best thing is practical knowledge.
Keep the unit content presenting real-life examples and explain the content through real case studies.
Feedback from Email, staff
Great efforts was made to develop the unit content including more focus on real case studies.
More refinement may be needed to match the lectures' time.
- Demonstrate an integrative understanding of the key theories and concepts underpinning buyer-contractor relationships as well as the concepts of project contracts and procurement standards
- Analyse different commercial negotiation strategies and demonstrate an ability to creatively negotiate project plans, conflicts, delays and incentives in commercial projects
- Employ risk management planning and identification, and assess the risk encountered over the procurement process
- Negotiate and analyse the principles of tendering, pricing and awarding techniques and to utilise the negotiation approaches in commercial contracts
- Evaluate and develop clear legal, financial and technical components of project contracts
- Develop a project budget and an expenditure forecast as control mechanisms and link time, cost and resources to the project framework.
Alignment of Assessment Tasks to Learning Outcomes
| Assessment Tasks | Learning Outcomes | |||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | |
| 1 - Online Quiz(zes) - 15% | ||||||
| 2 - Practical Assessment - 35% | ||||||
| 3 - Examination - 50% | ||||||
Alignment of Graduate Attributes to Learning Outcomes
| Graduate Attributes | Learning Outcomes | |||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | |
| 1 - Knowledge | ||||||
| 2 - Communication | ||||||
| 3 - Cognitive, technical and creative skills | ||||||
| 4 - Research | ||||||
| 5 - Self-management | ||||||
| 6 - Ethical and Professional Responsibility | ||||||
| 7 - Leadership | ||||||
| 8 - Aboriginal and Torres Strait Islander Cultures | ||||||
Alignment of Assessment Tasks to Graduate Attributes
| Assessment Tasks | Graduate Attributes | |||||||
|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
| 1 - Online Quiz(zes) - 15% | ||||||||
| 2 - Practical Assessment - 35% | ||||||||
| 3 - Examination - 50% | ||||||||
Textbooks
Negotiation for Procurement Professionals: A Proven Approach that Puts the Buyer in Control
Edition: 2nd (2016)
Authors: Jonathan O'Brien
Kogan page Ltd
United Kingdom
ISBN: 9780749477318
Binding: Paperback
The Strategic Procurement Practice Guide: Know-how, Tools and Techniques for Global Buyers
(2017)
Authors: Ulrich Weigel; Marco Ruecker
Springer
ISBN: 9783319576510
Binding: eBook
Additional Textbook Information
Paper copies can be purchased from the CQUni Bookshop here: http://bookshop.cqu.edu.au (search on the Unit code)
eBook copies can be accessed from the publisher websites.
IT Resources
- CQUniversity Student Email
- Internet
- Unit Website (Moodle)
- online database Emrald and Scince direct for journal articles
- CQUniversity Library Resources
- Textbook and Videos - available for download via the course Moodle site or Online
All submissions for this unit must use the referencing style: Harvard (author-date)
For further information, see the Assessment Tasks.
g.chaudhry@cqu.edu.au
z.abunada@cqu.edu.au
Module/Topic
Introduction to Procurement Management
Chapter
Readings:
- Chapter 1 & 2: The Strategic Procurement Practice Guide by U Weigel & M Ruecker; 2017
- Chapter 12: PMBOK Guide; 6th Edition; 2017
Topics:
- Introduction to project procurement
- Procurement phases and steps
- Procurement management plan
- Procurement strategies
Events and Submissions/Topic
Unit Introduction
Lecture 1
Tutorial 1
Module/Topic
Procurement Routes - I
Chapter
Readings:
- Chapter 2: Collaborative Project Procurement Arrangements by D Walker & B Walker; 2015
- Chapter 12: PMBOK Guide; 6th Edition; 2017
Topics:
- Introduction to procurement routes
- Procurement routes selection criteria
- Design - Bid - Build (Traditional / Segregated) route
- Design - Build (Integrated) route
- Management Contracting (Packaged) route
Events and Submissions/Topic
Lecture 2
Tutorial 2
Module/Topic
Procurement Routes - II
Chapter
Readings:
- Chapter 2: Collaborative Project Procurement Arrangements by D Walker & B Walker; 2015
- Chapter 12: PMBOK Guide; 6th Edition; 2017
Topics:
- Collaborative and Relational procurement routes
- Multi Prime Contracting
- Design Sequencing
- Public Private Partnership
- Partnering vs Alliancing
- Joint Venture Contracts
Events and Submissions/Topic
Lecture 3
Tutorial 3
Module/Topic
Contracts and Contracting Principles
Chapter
Readings:
- Chapter 5: The Procurement and Supply Manager's Desk Reference by J Semanik and F Sollish; 2nd Edition; 2012
- Chapter 7: UN Procurement Practitioner's Handbook; 2017
Topics:
- Introduction to contracts
- Principles of contracting
- Risks in contracting
- Types of contracts and contract selection
- Change order in contracts
- Client-contractor relationship
- Legal advice/services and selection of contract terms
Events and Submissions/Topic
Lecture 4
Tutorial 4
Release of Practical Assessment (35%)
Module/Topic
Risks in Procurement Management
Chapter
Readings:
- Chapter 6: The Strategic Procurement Practice Guide by U Weigel & M Ruecker; 2017
- Chapter 5: Project Procurement Management (Contracting, Subcontracting, Teaming) by Quentin W Fleming; 2008
- Chapter 3: UN Procurement Practitioner's Handbook; 2017
Topics:
- Potential areas of risk in the procurement cycle
- Internal and external risks
- Risk assessment and quantification
- Risk management plan on complex project procurement
- Risk management and closure planning
Events and Submissions/Topic
Lecture 5
Tutorial 5
Quiz # 1
Module/Topic
Mid Term Break
Chapter
Events and Submissions/Topic
Module/Topic
Claims, Variation Orders and Dispute Resolution
Chapter
Readings:
- Chapter 10: Dispute Resolution in Australia: Cases, Commentary and Materials by D Spencer and S Hardy, 2009
Topics:
- The need for variation clause
- Sources of claims
- Development of claims
- Causes and prevention of disputes
- Dispute resolutions
- The alternative dispute resolution
- Causes lead to arbitration
Events and Submissions/Topic
Lecture 6
Tutorial 6
Module/Topic
Cost Estimation and Budgeting
Chapter
Readings:
- Chapter 2 & 3: Cost Estimating Manual for Projects: USA Department of Transportation; 2015
- Project budgeting: The key to bringing business projects on-time and on-budget by Scotto, M. (1994). Project Management Journal, 25(1), p. 35–42.
Topics:
- Introduction to cost estimation
- Types of cost estimates
- Variation factors in cost estimation
- Introduction to project budgeting
- Elements of project budget
- Developing, establishing and evaluating project budget
Events and Submissions/Topic
Lecture 7
Tutorial 7
Module/Topic
Bidding, Tendering and Contract Awarding
Chapter
Readings:
- Chapter 1: Methods of Contractor Selection, Bidding and Construction; University Of California (Website).
- Chapter 12: PMBOK Guide; 6th Edition; 2017
Topics:
- Bid pricing
- Competitive bidding
- Informal competitive bidding
- Duration of bidding period
- Equal opportunity policy
- Best value contractor selection
- Contractor selection criteria
Events and Submissions/Topic
Lecture 8
Tutorial 8
Quiz # 2
Module/Topic
Negotiation in Procurement Management
Chapter
Readings:
- Chapter 3: The Procurement and Supply Manager's Desk Reference by J Semanik and F Sollish; 2nd Edition, 2012
- Negotiation for Procurement Professionals by J O'Brien; 2nd Edition, 2016
Topics:
- Introduction and principles of negotiation
- Process and structure of negotiation
- Methods of effective negotiation
- Negotiation tactics and techniques
Events and Submissions/Topic
Lecture 9
Tutorial 9
Module/Topic
Procurement and Outsourcing Strategies
Chapter
Readings:
- Chapter 9: Design and Managing Supply Chain: Concepts, Strategies and Case Studies by Levi et al. 2008
Topics:
- Introduction to outsourcing
- Benefits of outsourcing
- Problems with outsourcing
- Types of outsourcing
- Supply matrix and strategies
- Risks in outsourcing
- Ethics in outsourcing
Events and Submissions/Topic
Lecture 10
Tutorial 10
Practical Assessment (35%) due this week
Written Report + Presentation Due: Week 10 Friday (27 Sept 2019) 11:45 pm AEST
Module/Topic
Ethics in Procurement
Chapter
Readings:
- Chapter 15: Dispute Resolution in Australia: Cases, Commentary and Materials by D Spencer and S Hardy; 2009
- Chapter 2: UN Procurement Practitioner's Handbook; 2017
Topics:
- Ethical concepts and principles
- Codes of conduct
- Stewardship
- Frauding and collusive tendering
- Integrity, transparency and confidentiality
- Due diligence and risk in ethics
Events and Submissions/Topic
Lecture 11
Tutorial 11
Group Presentations
Quiz # 3
Module/Topic
Emerging Trends in Procurement: Sustainable Procurement
Chapter
- Sustainable Procurement Guide: Department of the Environment and Energy, Australia; 2018
- Chapter 13: UN Procurement Practitioner's Handbook; 2017
- Introduction to sustainable procurement
- Principles of procuring sustainability
- Concepts in sustainable development
- Benefits of sustainable procurement
- Policy context of Australian Government
Events and Submissions/Topic
Lecture 12
Tutorial 12
Revision & Exam Preparation
Module/Topic
Chapter
Events and Submissions/Topic
Module/Topic
Final Exam
Chapter
Events and Submissions/Topic
1 Online Quiz(zes)
There will be three quizzes in Week (5, 8 and 11) and you need to attempt all quizzes.
You will be required to complete a series of questions (multiple choice, analysis of case studies and scenarios related to the topics) in each quiz.
Purpose
- The primary purpose of this assessment item is to help you identify factors associated with contract and procurement management.
- The secondary purpose of this assessment is to give you the opportunity to enhance your analysis and critical thinking skills.
Important Notes
- The quiz(zes) will be based on the learning activities from all the previous weeks.
- Each quiz will be available on Moodle for one week starting on Monday 9:00 AM AEST.
- Students will only have one attempt for each quiz.
- Each quiz is an OPEN BOOK test.
3
Other
Each quiz must be completed within its given time frame.
The following criteria will be used to grade your quizzes:
- The percentage of correct answers.
- The accuracy and coherent/logic of your analysis.
- No penalty for wrong answers.
- Demonstrate an integrative understanding of the key theories and concepts underpinning buyer-contractor relationships as well as the concepts of project contracts and procurement standards
- Employ risk management planning and identification, and assess the risk encountered over the procurement process
- Negotiate and analyse the principles of tendering, pricing and awarding techniques and to utilise the negotiation approaches in commercial contracts
- Knowledge
- Cognitive, technical and creative skills
- Self-management
- Ethical and Professional Responsibility
2 Practical Assessment
This is a group assignment for on-campus students (min. 3 and max. 4 students in a group) whereas distance education students will complete this assignment individually. The assessment contains a case study from a real world context for a multi component project. You will be given enough details about the case study, the sub-projects involved along with their description and the scope of the work involved. The case study will be provided on the Moodle website.
You are required to submit a written report considering the following tasks:
- Critically analyse and advise on the most suitable procurement route on the case study. The case study contains different sub-projects. You will also be developing project budgets based on the data given. You will be given the characteristics of the client, project limitations, conditions and available resources for each sub-project.
- Justify the chosen procurement route and explain why it is suitable to make the project successful.
- Advise on the best suitable contractual agreements for parties involved to compliment the procurement option.
- If you were to propose a contract type, discuss the risks associated and the key components which must be covered in the selected contract.
- Estimate the required budget for the sub-projects.
- As a procurement manager, you need to highlight your main concessions to perform purchase process of the assigned resources.
- Your report should include thorough analysis with supporting evidences and discussion.
Week 10 Friday (27 Sept 2019) 11:45 pm AEST
Written Report (Word format) and Presentation (Powerpoint format) files must be submitted in Moodle and Oral Presentation to be given as per the tasks description above.
Week 12 Friday (11 Oct 2019)
Overview:
The assessment has two parts:
Written report (25%)
- The report should be of 4000 words +- 5% (excluding references and appendices).
Oral presentation (10%)
- Presentation should follow a similar structure as per your written report.
- Presentations will be of 15 minutes duration plus 5 minutes for Q&A.
- Presentations will be held during the tutorial class in Week 11 for on-campus students (via Zoom/Phone for distance students).
The overall mark for this assessment would be adjusted to reflect the actual contribution and understanding of each member of the report.
The report will be assessed based on the quality of the work presented, the details and the coherent analysis with the proper justifications of the proposed procurement routes and the associated issues.
Your submission should extend beyond the unit materials and you are requested to use available online resources and any additional relevant information and will be assessed according to the following criteria.
Written report (25% scaled)
- Understanding and analysis of the case study and applying the concepts of contract and procurement strategies (10%)
- Critical analysis and evaluation of the procurement routes which includes detailed description of why specific route was selected in each case (35%)
- Identification, analysis and assessment of the risks associated in each approach (15%)
- Mapping the factors and characteristics of each sub-project with the factors to be considered for the best procurement strategy (10%)
- Developing appropriate budget for the assigned tasks and required resources (15%)
- Applying suitable negotiation strategies, particularly BATNA (15%)
Oral presentation (10% scaled)
- Preparation and consistency of presentation (10%)
- Understanding and relevance of the presentation content (50%)
- Response to Questions during Q&A (30%)
- Timing including Q&A (5%)
- Presentation manner (5%)
- Demonstrate an integrative understanding of the key theories and concepts underpinning buyer-contractor relationships as well as the concepts of project contracts and procurement standards
- Analyse different commercial negotiation strategies and demonstrate an ability to creatively negotiate project plans, conflicts, delays and incentives in commercial projects
- Employ risk management planning and identification, and assess the risk encountered over the procurement process
- Evaluate and develop clear legal, financial and technical components of project contracts
- Develop a project budget and an expenditure forecast as control mechanisms and link time, cost and resources to the project framework.
- Knowledge
- Communication
- Cognitive, technical and creative skills
- Research
Examination
Calculator - non-programmable, no text retrieval, silent only
As a CQUniversity student you are expected to act honestly in all aspects of your academic work.
Any assessable work undertaken or submitted for review or assessment must be your own work. Assessable work is any type of work you do to meet the assessment requirements in the unit, including draft work submitted for review and feedback and final work to be assessed.
When you use the ideas, words or data of others in your assessment, you must thoroughly and clearly acknowledge the source of this information by using the correct referencing style for your unit. Using others’ work without proper acknowledgement may be considered a form of intellectual dishonesty.
Participating honestly, respectfully, responsibly, and fairly in your university study ensures the CQUniversity qualification you earn will be valued as a true indication of your individual academic achievement and will continue to receive the respect and recognition it deserves.
As a student, you are responsible for reading and following CQUniversity’s policies, including the Student Academic Integrity Policy and Procedure. This policy sets out CQUniversity’s expectations of you to act with integrity, examples of academic integrity breaches to avoid, the processes used to address alleged breaches of academic integrity, and potential penalties.
What is a breach of academic integrity?
A breach of academic integrity includes but is not limited to plagiarism, self-plagiarism, collusion, cheating, contract cheating, and academic misconduct. The Student Academic Integrity Policy and Procedure defines what these terms mean and gives examples.
Why is academic integrity important?
A breach of academic integrity may result in one or more penalties, including suspension or even expulsion from the University. It can also have negative implications for student visas and future enrolment at CQUniversity or elsewhere. Students who engage in contract cheating also risk being blackmailed by contract cheating services.
Where can I get assistance?
For academic advice and guidance, the Academic Learning Centre (ALC) can support you in becoming confident in completing assessments with integrity and of high standard.
What can you do to act with integrity?
