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 1 - 2020
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
There are no required textbooks.
IT Resources
- CQUniversity Student Email
- Internet
- Unit Website (Moodle)
- online database Emrald and Scince direct for journal articles
- CQUniversity Library Resources
- Students are requested to join the Project Management Institute (PMI) and be a member of the PMI to download the materials.
All submissions for this unit must use the referencing style: Harvard (author-date)
For further information, see the Assessment Tasks.
z.abunada@cqu.edu.au
Module/Topic
Introduction to Procurement
Chapter
Readings:
- Chapter 1: Project Procurement Management by Q. W. Fleming; 2008
- Chapter 12: PMBOK Guide; 6th Edition; 2017
- Chapter 19: Project Management: A Systems Approach to Planning, Scheduling, and Controlling by H Kerzner, 2017
- Chapter 4: UN Procurement Practitioner's Handbook; 2017
- Chapter 2: The Strategic Procurement Practice Guide by U Weigel & M Ruecker, 2017
Topics:
- Introduction to procurement
- Main activities in procurement
- Procurement phases
- Procurement management plan
- Procurement strategies
Events and Submissions/Topic
Unit Overview
Lecture 1
Tutorial 1
Module/Topic
Procurement Routes - I
Chapter
Readings:
- Chapter 4: Building Procurement Methods, CRC Construction Innovation; 2008
- Chapter 2: Collaborative Project Procurement Arrangements by D Walker & B Walker; 2015
- Chapter 12: PMBOK Guide; 6th Edition; 2017
Topics:
- Introduction to procurement routes
- Selection criteria for procurement routes
- Design - Bid - Build (Traditional) route
- Design - Build (Integrated) route
- Management (Packaged) route
- Comparison of procurement routes
- How to procure and contract
Events and Submissions/Topic
Lecture 2
Tutorial 2
Module/Topic
Procurement Routes - II
Chapter
Readings:
- Public–Private Partnership
- Public-Private Partnership (PPP) projects
- Public-Private Partnership models
- Joint Venture
Topics:
- Collaborative procurement routes
- Multi Prime Contracting
- Design Sequencing
- Public Private Partnerships
- Alliancing
- Joint Ventures
Events and Submissions/Topic
Lecture 3
Tutorial 3
Module/Topic
Contracts and Contracting Principles
Chapter
Readings:
- Chapter 7: UN Procurement Practitioner's Handbook; 2017
- Chapter 19: Project Management: A Systems Approach to Planning, Scheduling, and Controlling by H Kerzner, 2017
- Chapter 6: Project Procurement Management by Q W Fleming; 2008
- Chapter 5: MacRoberts on Scottish Construction Contracts, 3rd Ed, 2015
- Chapter 5: The Procurement and Supply Manager's Desk Reference by J Semanik and F Sollish; 2nd Edition; 2012
Topics:
- Introduction to contracts
- Contracting strategies
- Fixed price contracts
- Cost reimbursable contracts
- Change orders in contracts
- Client-contractor relationships
- Risks in contracting
Events and Submissions/Topic
Lecture 4
Tutorial 4
Release of Practical Assessment (35%)
Module/Topic
Risks in Procurement
Chapter
Readings:
- Chapter 6: The Strategic Procurement Practice Guide by U Weigel & M Ruecker; 2017
- Chapter 5: Project Procurement Management Q W Fleming; 2008
- Chapter 3: UN Procurement Practitioner's Handbook; 2017
Topics:
- Main risks in procurement
- Managing procurement risks
- Risk management plan
- Identifying procurement risks
- Assessing and analysing procurement risks
- Controlling and mitigating procurement risks
Events and Submissions/Topic
Lecture 5
Tutorial 5
Module/Topic
Mid Term Break
Chapter
Events and Submissions/Topic
Module/Topic
Change Orders, Claims, Disputes and Resolutions
Chapter
Readings:
- Chapter 7: UN Procurement Practitioner's Handbook; 2017
- Chapter 10: Dispute Resolution in Australia: Cases, Commentary and Materials by D Spencer and S Hardy, 2009
Topics:
- Change orders (variations)
- Development of change orders
- Sources of claims
- Development of claims
- Minimising claims
- Causes of disputes
- Dispute resolution methods
Events and Submissions/Topic
Lecture 6
Tutorial 6
Quiz # 1
Module/Topic
Cost Estimation and Budgeting
Chapter
Readings:
- Chapter 2 & 3: Cost Estimating Manual for Projects: USA Department of Transportation; 2015
- Chapter 7: The Strategic Procurement Practice Guide by U Weigel & M Ruecker; 2017
- 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:
- Project cost estimation
- Cost estimation methods
- Factors affecting the cost estimates
- Project budgeting
- Elements of project budget
- Developing and establishing project budget
- Evaluating project budget
Events and Submissions/Topic
Lecture 7
Tutorial 7
Module/Topic
Tendering, Bidding and Contract Awarding
Chapter
Readings:
- Chapter 6: UN Procurement Practitioner's Handbook; 2017
- Chapter 12: PMBOK Guide; 6th Edition; 2017
- Chapter 1: Methods of Contractor Selection, Bidding and Construction; University Of California (Website).
Topics:
- Introduction to tendering
- Tendering and bidding process
- Invitation for tenders
- Submission and opening of bids
- Technical and financial evaluation of bids
- Assessment of best combined offer
- Contract awarding
Events and Submissions/Topic
Lecture 8
Tutorial 8
Module/Topic
Negotiations in Procurement
Chapter
Readings:
- Chapter 8: The Purchasing Negotiation, The Strategic Procurement Practice Guide by U Weigel & M Ruecker; 2017
- Negotiation for Procurement Professionals by J O'Brien; 2nd Edition, 2016
- Chapter 3: The Procurement and Supply Manager's Desk Reference by J Semanik and F Sollish; 2nd Edition, 2012
Topics:
- Introduction and principles of negotiation
- Process and structure of negotiation
- Effective negotiation (BATNA and ZOPA)
- Negotiation strategies
- Conflict resolution through negotiation
- Negotiating with powerful suppliers
Events and Submissions/Topic
Lecture 9
Tutorial 9
Module/Topic
Outsourcing
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
Assessment Submission
Written Report + Presentation Due: Week 10 Monday (18 May 2020) 12:00 am 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:
- Ethics in procurement
- Ethical principles in procurement
- Types of unethical behaviours
- Ethical issues during procurement stages
- Ethical issues in contract management
- Spiral of ethical risks
- Detection and prevention of unethical practices
Events and Submissions/Topic
Lecture 11
Tutorial 11
Group Presentations
Quiz # 2
Module/Topic
Emerging Trends in Procurement: Sustainable Procurement
Chapter
- Sustainable Procurement Guide: Department of the Environment and Energy, Australia; 2018
- Chapter 13 & 14: 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
Group Presentations
Revision & Exam Preparation
Module/Topic
Chapter
Events and Submissions/Topic
Module/Topic
Final Exam
Chapter
Events and Submissions/Topic
There is no specific text book for this unit PPMP20011 and students are advised to research various relevant resources and materials particularly the PMI materials.
1 Online Quiz(zes)
- There will be two quizzes (Week 6 & 11) and you are required to complete both quizzes which will consist of a series of multiple-choice questions.
- Quiz 1 will consist of questions related to the topics covered in the first 5 weeks.
- Quiz 2 will consist of questions related to the topics covered during Weeks 6-10.
- Each quiz will be available from Monday 09:00 AM to Friday 11.45 PM AEST on the Moodle website.
- 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.
2
Other
Each quiz must be completed within its allocated time frame.
This assignment will be marked by the Moodle computer program upon submission.
- There will be multiple-choice questions in each quiz which will be randomly selected from a pool of questions from the related topics.
- You may attempt each quiz twice, but your average score will apply.
- You will have forty (40) minutes each time you attempt the quiz.
- Knowledge
- Cognitive, technical and creative skills
- Self-management
- Ethical and Professional Responsibility
- 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
2 Practical Assessment
This is a group assignment for on-campus students (maximum 3 students in a group) whereas distance (off-campus) students will complete this assignment individually with a reduced assignment scope. The assessment will contain a case study from a real world context for a multi component project along with the description and 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 for the case study (sub-projects). You will be given the characteristics of the client, information such as givens, constraints, 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 officer, you need to highlight your main concessions to perform procurement process of the assigned resources.
- Your report should include thorough analysis with supporting evidence and discussion.
Week 10 Monday (18 May 2020) 12:00 am 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 (5 June 2020)
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 held during the tutorial classes in Week 11 & 12 for on-campus students (via Zoom/Phone for Distance students).
- Presentations will be of 15 minutes duration plus 5 minutes for Q&A.
- Presentations will be graded based on the individual performance at the presentation.
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, contract types and the associated risks.
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 (30%)
- Critical analysis and evaluation of the contract types which includes detailed description of why specific contract was selected in each case (20%)
- 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 (5%)
- Developing appropriate budget for the assigned tasks and required resources (5%)
- Applying suitable negotiation strategies, particularly BATNA (5%)
- Clarity of expression, language, format, presentation, in-text citations and references (10%)
Oral presentation (10% scaled)
- Preparation style and content (10%)
- Understanding and relevance of the presentation content (50%)
- Response to questions during Q&A (35%)
- Timing including Q&A (5%)
- Knowledge
- Communication
- Cognitive, technical and creative skills
- Research
- 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.
Examination
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.