The paper "Strategic Procurement Management Process" is an outstanding example of a management assignment. The Government of Gold Coast budgeted an estimated $1.483 billion inclusive of the annual escalation costs. With the changes in the Games village procurement, there is bound to be increased total costs and reduced upfront capital outlays. However, the bid budget excluded the cost of venue infrastructure and planning and delivery costs in the initial net cost estimate. The most significant procurement programs of the Queensland’ s government are the redevelopment and construction of major infrastructure and operations.
In this project, reputational and delivery risks are very significant given the level of involvement of volunteers, the private sector, and a number of government agencies. Furthermore, the construction of the infrastructure and the Gold Coast Games itself are affected by geopolitical, socio-economic, and environmental conditions. Apart from that, the deadline is immovable. Nevertheless, this will not harm the financial and reputational position of the developer because no penalties were issued for missing on key milestone dates. The preliminary scope of works included the provision of services for each functional area, and initial resource, procurement requirements, and workforce, and accurate and detailed bottom-up budgets.
Yet, the revenues and costs failed to differentiate the private sector and the bid budget. In doing so, the state foregoes future revenues by transferring the financing, ownership, and construction risks to the private sector through the public-private partnership (PPP). This endears positive outcomes because non-PPPs always run short of accountability and transparency. The value for money incorporates productive efficiency in public projects. The Queensland government made a wise decision to involve the private sector in sharing production and construction costs.
Particularly, the emphasis was made on financing, design, operations, construction, and maintenance costs. Some of the foregone revenues are accommodation after games through a 10-year rental guarantee that helps in the staged release of properties to the market. The Games village has also underestimated the size of athletes and officials attending the games. It may be inadequate considering that the Glasgow Games had 7300 athletes and officials. Also, the contract signing process was not smooth given that the financial close and the contract was finalized after a delay of six-months in 2014.
Although the contract between the Games village developer and the Queensland government did not delay the construction, it led to a slip in about 7 out of the 18 Games venues.