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Electronic Construction Procurement System

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Project background and rationales. Development methodology, schedule planning. Company mission and vision. Organization of staff and company structure. Procurement system target market. Implementation of procurement system. Testing, user manual.
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1. Project Background & Rationales

This chapter is an overview on the procurement system, the rational and objectives behind the project and the whole endeavor. Project manager also displays the roles and responsibilities in addition with planning description for electronic construction procurement system. In order to increase the success over the system objectives, the must be a well-organized and comprehensive documentation planning as following.

1.1 Project Background

1.1.1 Manager Challenges in Construction Development Project

Construction management is a set of guidelines and standards can be define through the combination of four major mixture of activities in separate phases of initiation, execution, monitoring and closure with the objectives of reduce the effort and time required for a quality unique product.

Managing a construction project is a challenge of management over nine knowledge areas and balancing the expectation of external and internal stockholders. Besides, manager must be aware of the changes and their impacts and necessary updates for other aspects of a running project.

Construction is one of the most successful industries using project management standards and approach with a relatively a high success rate in the number of projects and achievement. In procurement process, manager should be responsible to execute and monitor entire stages in procurement and sourcing a project. This can be start by gathering supplier information and external sources to evaluate and eventually select the most cost effective and quality set of suppliers according to project specification and requirements.

In huge construction developments, procurement manager should provide all raw materials and supply entire project, while in limited scope projects this process may undertake by independent individual and hence, project manager monitor progress through timely fashion reports (PMBOK®, 2008).

1.1.2 Construction in technological age

Construction is a 3.9 trillion USD annually globally with accelerated growth; increase the industry size for a large number of markets including plumbers, transportation wood and many other industries (Barbara J. Jackson, 2010).

According to a higher level of complexity in construction projects, main competitive advantage in current market situation may be to reach higher degrees of effectiveness and timeliness over projects in compare with competitors. Now days with all technological advancement, construction managers is able to work on a web based platform and take the advantages of tight control over all aspects of the project.

1.2 Problem Statement

While in software development labor and expertise dominate a significant part of the project and product development, in construction projects, procurement is the main major portion of budget allocation for overall project budgeting. Therefore, cost effectiveness achievement in construction developments would result in a great saving and can be translated as a competitive advantage in the whole industry.

This factor encourages and justify for developers to be attracted in any tools and techniques which can result in such huge cost effectiveness over projects. Besides, development managers would like to have an effective direct communication to suppliers and make it feasible to take raw materials with a fair price through negotiation and buying techniques. Therefore, any system with major marketing objectives can assist manager reduce the material price, increase the quality over inbound and achieve a large amount of time cutting which can be describe as total project cost reduction (Harold Kerzner, 2009).

“Electronic Construction Procurement System” is a Web based commerce tools with effective marketing objectives and aims to create value to target market in development industry.

1.3 Project Objectives

In Electronic Construction Procurement System like any other project, the main objective would be to stay on the time, resource and quality of the major deliverables. As an individual project, researcher is limited to information sources and a year time constraints defined for a final year project. In higher degrees of achievements, project can be maintainable and sustainable for further improvements and enhanced future functions.

1.3.1 General Project Objective

Basically, in this project lack of direct communication between construction manager and construction industry suppliers is the major concern. System would be capable of access to a wide range of suppliers and their products with sufficient information and details required for procurement managers in sourcing project. This is expected from the project to deliver a new business model capable of handling business processes in a higher level of effectiveness and efficiency. As a B2C digitalized commerce tool this is expected that organization reaches a higher amount of sales which can be translated to higher profit.

In Electronic Construction Procurement System like any other project, the main objective would be to stay on the time, resource and quality of the major deliverables. As an individual project, researcher is limited to information sources and a year time constraints defined for a final year project. In higher degrees of achievements, project can be maintainable and sustainable for further improvements and enhanced future functions.

System will create value through a well-designed accessible platform contain all required information related to products and functionalities required to create and support a sustainable source of development supplier in construction sector. This is expected from the project to deliver a new business model capable of handling business processes in a higher level of effectiveness and efficiency. As a B2C digitalized commerce tool this is expected that organization reaches a higher amount of sales which can be translated to higher profit. Besides, ease of management and higher level of integration would also apply to the company after digitalization of the procurement.

Beside all advantages of efficiency and effectiveness of direct communication and commerce in construction industry, system attempts to provide a great range of functionalities through an interactive platform for both managers and suppliers in an electronic selling channel.

1.3.2 Specific Project Objective

In addition with the objectives above, system would be an effort to increase quality over projects through evaluative tools of procurement items as the main sourcing project platform. Specifically suppliers would have access to value provided reports which can indicate industry trends and use as an input for strategy driven effort.

1.4 Scope of the Project

System major objective is to facilitating commerce of construction suppliers and gives the raise in services and offering to developers and project managers. Therefore transaction validation and other bidding issues would not be covered through existing purposed system and may be an effort for system futuristic.

1.5 Study Limitation

1.5.1 Project Constraints

According to nature of an individual project and limited amount of resources, project and study was successful to figure the relevant but not best set of requirements. Review on available literatures and updated materials were limited to time constraints as the nature of project.

1.6 Focus of the study

According to domain topics and major objectives of the system, researcher focused on the level of interaction in electronic B2C platform and requirements of construction procurements in the center of supplier manager relationship.

2. Project Plan

In planning stage, manager should take in consideration of setting a realistic and clear set of activities in a comprehensive documentation according to project objectives. However, planning should be always a subject to change and periodically review in every construction project. From this point, project manager should be a powerful change manager in result of any internal or external trend or changes in project scope and specifications.

2.1 Risks

As explained in the PSF, manager should get ready to face a certain level of risk in any project. Risk management should be according to the likelihood and impact of the risk to the project and output a risk registry well documented plan.

Similar to other projects, manager must predict and prepare to reduce the risk and its impact indeed. Project risk can arrive through various changes, improvements or external factors. Manager should plan to identify and resolve higher likelihood events quick and efficient.

2.2 Development methodol...

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