Project Procurement Management - Whiting-Turner Company - Case Study Example

Project Procurement Institution Professor Course Date Project Procurement Management The main objective of this research is to adopt and implement new concepts in the context of a PM organization. This is through selection of s website specific to a contractor/supplier in the relevant field of procurement management. The research will focus on the presentation of an extensive overview of the organization while summarizing the essential scope of activities. In addition, the research will focus on identification of the influence and implications of prequalification in the tendering or contracting approach in the context of the PM organization. Organizational Overview (http://www.whiting-turner.com/portfolio/portfolio.html) In this research assignment, the focus will be on the Whiting-Turner, as the company of interest in understanding the concepts of procurement management. The main objective of the organization is to promote and develop high standards with reference to professional skill, integrity, and capacity among the professionals operating in purchasing and supply chain management. The organization aims to offer assistance to individuals and organizations across the globe1. The mission of the organization is to build its reputation for the integrity, excellence, experience, and leadership as the nation’s finest construction organization. This is through continuously improving the quality of its products and services as well as striving to exceed each client’s expectations. In addition, the organization seeks to maintain its dedication to the highest moral principles with the aim of offering customers a challenging and secure or safe environment to aid the achievement of career goals and objectives. The organization engages in construction management, specialty contracting, general contracting, and design or building activities. In the achievement of the goals and objectives of this research, the referred articles were essential in understanding the concepts of contracting, procurement, project management, procurement management, and tendering. These concepts are critical in the evaluation and analysis of the website with the aim of realizing an extensive prequalification process of the contracting or tendering stages and plans. It is essential to understand the concepts and processes of planning for contracting as well as tender selection2. This is because of the influence of such information in the development and execution of an extensive analysis or assessment of the website with reference to prequalification programs. Furthermore, the articles were vital in understanding the influence of procurement and procurement management in the achievement of quality project performance. This relates to effectiveness and efficiency of the stages as well as minimum time and costs in the achievement of the quality project outcomes. Prequalification refers to capability assessment of an organization to execute a particular contract prior to being invited to submit a bid for the contract or tender3. This approach is vital in critical examination of the potentiality of large and complex organizations in the achievement of the goals and objectives of a particular project. The website is vital in understanding and executing a prequalification process on the organization. This is through understanding its construction experience, financial positions, image, reputation, level of experience, and views of the customers on the performance of the organization. The information is essential in the development of an extensive criterion in the execution of a detailed prequalification process prior to invitation to participate in the bid. The tender would require an organization to construct three-storey building to act as offices for various organizations within the city environment. The tender requires the organizations to send their bids and quote their prices with the aim of enhancing the ability of the bidder to make valuable decisions on the tender selection. Prequalification process will focus on the ability of the organization to meet the requirements of the tender in relation to the construction of the three-storey building. The organization of interest focuses on the presentation of prequalification information on the website. This is through provision of adequate information about the organization’s mission and vision statements as well as policies towards addressing the needs and preferences of the consumers. The organization indicates that four concepts are essential in its interaction with the consumers, clients, and other business entities. These four critical concepts include leadership, experience, integrity, and excellence. The factors are crucial in the provision of value to the organization in its communication and transactions with other entities while addressing the needs and demands of the target audiences4. On the other hand, the organization also provides adequate information for prequalification with reference to its financial position. This is evident in the financial statements in the course of the financial year to demonstrate the effectiveness and efficiency of the company to participate in the proposed bid for constructing the three-storey building within the city. The financial statement also enables the tender to evaluate the costs of services and products offered by the contracting institution to facilitate the achievement of the goals and objectives. The website also enables the tender to evaluate the years of practice or experience of the organization of interest. Participation of serious contractors helps the firms to archive a good plan. This can be majorly achieved through accepting the bids of more qualified contractors. Through these the cost of bidding is greatly reduced hence reduces the expenses of the company. Doing this helps the companies in giving early warning in the field of competition of potential bidders. In addition, prequalification has greatly helped in reducing the complaints of the disqualified bidders5. This helps the organization to have less complaints to handle hence reducing their cost of handling such cases. Various organizations have been able to choose the bidders since the method of prequalification has helped them to notice the less serious bidders and the serious bidders. The employers have had time in choosing the bidders easily hence, this gives them serenity of intelligence in their organizations. Through this, various organizations have greatly performed in their operations hence increasing their performance in their daily operations. Bidders have found this method harsh on their side hence it discourages some of the bidders hence leaving a few number of bidders who are serious. In addition, the bidders have now enhanced their performance hence giving the organizations better choices in the field. Prequalification also helps the lenders to review the interests of qualified firms in the industry. This helps in increasing the operation of the firms since they attract more borrowers because of the method of prequalification. A good project is also attained through identification of potential conflict of interest since most contractors have their consultants. Through these, the contractors are able to evaluate a good business. Prequalification has also greatly helped the firms since it has greatly helped in reducing the evaluating the bids of unqualified bidders. In addition, this method makes the firms to have a thin range to choose the bidders from since this process has disqualified most of the unqualified bidders. Prequalification has also greatly helped the employers to detect their capacities of managing the procurement of the organization. This has greatly helped the employers to increase their capabilities to manage their firms since this makes them to plan well for firms. This increases the level of performance of employers towards archiving their goals of management. This method of has helped in intimidating controversy within the firms. This greatly increases the performance of firms in since there is more chance of performing when there is reduced controversy. The employers also enjoy the low costs of bidding since most of the bidders have been evaluated by this method of prequalification. This helps the employers to lower their cost of operation hence they attain higher profits. This method helps the bidders to know their capabilities of competing with other bidders. The complaints from the disqualified bidders have greatly reduced since they no longer make bids. This has helped in reducing time taken by the employers in responding to such issues and therefore has time for the operation of the firm. These methods have therefore helped the employers to increase their capacities in managing the firms. Prequalification has helped in the elimination of the problems associated with low prices that encroach from the process of tendering. In addition, it has also helped to reduce the amount of time and work done in eliminating the unqualified tenders from the qualified tenders. This has greatly increased the performance of most firms thereby this shows the presence of a good plan. In the execution of this prequalification, I would achieve various benefits or advantages in relation to the concept and processes of tendering. One of the benefits is the ability and potentiality of addressing the needs and demands of the project with high level of competency and experience. In addition, the project will also benefit from reduced amount of work and substantial time in relation to evaluation of unnecessary organizations or bids. This is through evaluation of the experience, quality management, integrity, and operations of the organization. This will also contribute towards reduction of the amount of resources in the evaluation of the bids from unqualified suppliers or contractors during the tendering process. The process is essential in understanding adequate allocation and exploitation of the available resources to address the needs and demands of the project. Bibliographies Li, S. (2006). Three essays on bidding in the construction industry. (Order No. 3217477, The University of Utah). ProQuest Dissertations and Theses, 78-78. Ajayi, O. M., & Ogunsanmi, O. E. (2012). Decision Maker's Perceptions on Contractor Prequalification Criteria. Interdisciplinary Journal of Contemporary Research in Business, 4(6), 174-203. Whiting-Turner Official Website. Retrieved from http://www.whiting-turner.com/ Sweet, J., & Schneier, M. M. (2009). Legal aspects of architecture, engineering and the construction process. Stamford, Conn: Cengage Learning. Gransberg, D. D., Riemer, C., National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States. (2009). Performance-based construction contractor prequalification. Washington, D.C: Transportation Research Board. Read More