Management Assignment:Critical Analysis onContract Management AndPPP Project Delivery Methods
Task: This Article summary assess your knowledge of key content areas of project delivery methods and contract management. For successful completion of the Article Summary, you are required to study the material provided (lecture slides, tutorials, and reading materials), engage in the unit’s activities, and in the discussion forums. The prescribed textbook is the main reference along with the recommended reading material.
The assignment is abouta summary of two chosen article which will analyse the content areas of contract management and PPP project delivery methods. For writing the article summary the researcher will be going to be engaged with the unit activities or topics that are provided in the chosen article. For this research study, the researcher will be going to choose two topic PPP management and organisation structure and contract management.
Topic 1:PPP management and organisation structure
The public-private partnership is one of the most popular modelsfollowed by majority of the organisation which will accelerate their business. The public and private sector partnership in business organisationare becoming beneficial because it construe as interdependent form between two sectors. Management of the PPP program or projects is highly depended on capacity of stakeholders which includes identification of the project deliverables and resource. Using the PPP model, the project memberscan able toadvise a change on programme and policy to ensure all the standards are uniform. For delivering a successful complex project the PPP model is being followed by the private and public sector together. PPP model works under anagreement between the two parties who are working under shared joint responsibilities and rights. The PPP structure helps the two parties to recognise all relevant details through increase in the participation of different stakeholders. The methods have compromised ofdifferent networking system that will help them to infrastructure or design of the complex project (Chowdhuryet al., 2015). The application of the network theory will be going to show an innovative dimension for the research study.
The PPP theory needs to be applied on the projects that are highly complex to implement separately by private or public sector.Forunderstanding, project model every individual stakeholder is being embedded with thetasks of the project. The structure of the projectwill help both public and private sector to create relationshipswith their relative individual stakeholders. Every network data could be collected from different set of PPP agreement among the stakeholders. Introduction of networktheory PPP structure could be analysed for undertaking the position, power, obstacles and opportunity for analysing the stakeholders.
The article had discussed HubCo has very high degree and maintains many contracts by using the PPP structures. For creating a robust organisation structure under PPP model it is crucial to formulate a strong strategy for construction, maintenance and operation purpose to deliver the best service in the public sector. Structuring a strong PPP is very complicated because each people needs to reconcile the interest of considerable parties involvement.
Topic 2: Contract Management
Contract management is one of anintegral part of project management because the project managers are facing different issues while making an agreement. The contract life cycle is the process of efficient and systematic management of the contract by analysing the maximum financial performance. Lowering the overall risks using Contract negotiation that would lead conclusionabout the contract to the potential partner. The contract management is increasing the competitive enterprise whether the organisation is public or private. The organisation in both private and public sectors are facing enormous pressure to improve financial and reduction of costs(BRIAN and AN, 2017).
The tangible contract management always assists the management of obligations in way that is more effectivebecause both the parties will have significant effort and time which will benefit business procedures and strategies. In the article, it is well explained that the PPP contracts are being defined according to the payment terms, workflow, negotiation patterns and service levels. The contract management always creates a positive effect on the performance of contractor. The poor performance of the contractors had always been caused due to factors like lack of capacity and identifying the right personnel to execute the contract. Identifying the right personnel is vital because they will helptheorganisation to execute any undefined specifications, terms of reference and scope of work. In the private sector there are lenders, companies and investors are providing constructional services, and in case of public sector, there are different public authorities to implement a strong policies.
Form overall analysis it could be found that both contract managementand PPP model management to improve the business operation and to make the project more successful. The number of stakeholders in PPP project is high.The contract management always ensures right skilled people are being hired for managing the contract, supplier selection and ensures all the feedback mechanism are being put in place to improve the process.
Chowdhury, A.N., Chen, P.H. and Tiong, R.L., 2015. Analysing the structure of public–private partnership projects using network theory. Construction management and economics, 29(3), pp.247-260.
BRIAN, A. and AN, M.I.P.F.O., 2017. THE EFFECTIVENESS OF CONTRACT MANAGEMENT ON CONTRACTORS’.