Procurement Strategies A Relationship-based Approach

by Walker, Derek; Hampson, Keith

• ISBN13: 9780632058860
• ISBN10: 0632058862
• Edition: 1st
• Format: Paperback
• Copyright: 2002-12-30
• Publisher: Wiley-Blackwell

Summary

This book addresses the key relationship issues of partnering and alliance contracting, drawing on research from a major Australian project, to examine team working and to show how this can deliver built facilities more effectively.

Author Biography

Derek Walker is Professor of Project Management at the Department of Building and Construction Economics, RMIT University. He worked in various project management roles in the UK, Canada and Australia for 16 years before commencing his academic career in 1986. He obtained a Master of Science from the University of Aston (Birmingham) in 1978, and a PhD in 1995 from RMIT University (Melbourne). He has written over 70 peer reviewed papers and book chapters. His research interests centre on project management and project procurement systems. He is also the Program Director of the Doctor of Project Management (DPM) program.

Keith Hampson led the research team studying the National Museum of Australia project in Canberra. He is currently the CEO of Cooperative Research Centre for Construction Innovation that has a budget of $64 million over seven years to investigate and advance innovation in the Australian construction industry. He is a civil engineer and project and project manager with extensive industry experience. Prior to his CEO appointment to the CRC he was Director of Research in Construction Management and Property at Queensland University of Technology and Team Leader of the national QUT/CSIRO Construction Research Alliance. Keith Hampson completed an MBA, and a PhD in Construction Engineering and Management at Stanford University.

Table of Contents

Authors and Contributors	ix
Preface	xiii
Introduction	1	(10)
Derek Walker
Keith Hampson
The structure of this book	1	(4)
Implications of the current global work environment	5	(4)
References	9	(2)
Part 1 PROCUREMENT SYSTEMS AND STRUCTURES	11	(156)
Procurement Choices	13	(17)
Derek Walker
Keith Hampson
Traditional procurement options -- fixed price contracting	13	(2)
Total package options -- BOO, BOT, BOOT	15	(1)
Design and construct, novation and turnkey	16	(3)
Construction management (CM) and project management (PM) and PM/CM	19	(2)
Sequential negotiated work packages - on-call contracting	21	(2)
Guaranteed maximum price (GMP)	23	(1)
Full cost reimbursable procurement	24	(1)
Discussion - procurement choice as design influence	24	(3)
Chapter summary	27	(1)
References	27	(3)
Enterprise Networks, Partnering and Alliancing	30	(44)
Derek Walker
Keith Hampson
The development of enterprise networks	32	(3)
Types of joint enterprise arrangements	35	(2)
Australian partnering research study results	37	(6)
USA partnering research study results	43	(3)
Types of project partnering -- from cooperation to coalescence	46	(2)
Requirements for Level 4 - synergistic strategic partnerships	48	(3)
Reasons for embarking on Level 4 -- synergistic strategic partnerships	51	(2)
Developing a strategic alliance relationship	53	(7)
Sustaining a strategic alliance relationship	60	(1)
Case studies in project alliancing	61	(7)
Wandoo B Offshore Oil Platform -- Western Australia	63	(1)
The Andrew Drilling Platform - North Sea UK	64	(2)
East Spar Development - Western Australia	66	(1)
Fluor Daniel SECV -- Victoria	66	(2)
Other alliance projects undertaken in Australia	68	(1)
Chapter summary	68	(2)
References	70	(4)
Project Alliancing Member Organisation Selection	74	(29)
Derek Walker
Keith Hampson
Introduction - Why form an alliance? - General motivational issues	74	(11)
Manufacturing and distribution industries (primarily product focused)	77	(2)
The airline industry (primarily service focused)	79	(3)
The engineering and construction industry (product and service focused)	82	(1)
The National Museum of Australia project	83	(2)
The selection process for the National Museum of Australia project	85	(13)
The design selection process	86	(1)
The alliance construction team selection process	86	(4)
Selection criteria	90	(8)
Chapter summary	98	(3)
References	101	(2)
Managing Risk and Crises Resolution -- Business-as-Usual Versus Relationship-based Procurement Approaches	103	(20)
Derek Walker
Martin Loosemore
Introduction - risk, uncertainty and crises	103	(3)
The process of preparing for and managing crises	106	(4)
Monitoring	108	(1)
Diagnosis	109	(1)
Decision making and implementation	109	(1)
Recovery and learning	109	(1)
Countering dysfunction in managing crises	110	(10)
Building solutions to problems	111	(1)
The National Museum of Australia project	112	(8)
Chapter summary	120	(1)
References	121	(2)
Enabling Improved Business Relationships -- How Information Technology Makes a Difference	123	(44)
Bruce Duyshart
Sherif Mohamed
Keith Hampson
Derek Walker
Introduction	123	(2)
IT in the construction industry	125	(7)
Impact of IT on the construction industry	126	(5)
Project collaboration websites	131	(1)
Case study -- implementation of an IT solution for the delivery of the National Museum project	132	(11)
Developing an IT return on investment (ROI) model	133	(10)
An assessment of the application of IT on the National Museum of Australia project	143	(13)
Defining an evaluation framework	143	(2)
Survey methodology	145	(1)
Survey results	145	(2)
Analysis of project collaboration data	147	(9)
IT study conclusion	156	(1)
IT and project alliancing	156	(4)
Mutual cooperation	157	(1)
Conflict	158	(1)
Benefits	159	(1)
Satisfaction	159	(1)
Chapter conclusions and future directions	160	(3)
References	163	(4)
Part 2 RELATIONSHIP-BASED PROCUREMENT ATTITUDES AND BEHAVIOURS	167	(130)
Developing Cross-team Relationships	169	(35)
Derek Walker
Keith Hampson
Introduction	169	(1)
The role of power and influence -- building mutual objectives	170	(7)
Performance improvement through innovation, continuous improvement and knowledge management	177	(7)
Problem resolution -- acting like one big team	184	(3)
Trust, commitment and relationship building	187	(3)
Trust and relationship maintenance	190	(2)
Teams and leaders -- building a foundation for partnerships	192	(6)
Chapter summary	198	(2)
References	200	(4)
Developing a Quality Culture - Project Alliancing Versus Business-as-Usual	204	(32)
Michael Keniger
Derek Walker
Project briefing and development of a quality culture	204	(5)
The National Museum of Australia - a case study in developing a quality culture to match stakeholder needs	209	(22)
History of the selection of the project team	209	(5)
Alliance leadership team and internal quality working group developing of a quality culture	214	(1)
The role of the independent quality panel in developing a quality culture	215	(3)
The quality measurement (QM) process adopted on the National Museum of Australia project	218	(8)
Lessons learned for future adoption of quality measurement process on similar projects	226	(1)
Detailed descriptions of quality measures used on the National Museum of Australia project	227	(4)
Chapter summary	231	(3)
References	234	(2)
Developing an Innovative Culture Through Relationship-based Procurement Systems	236	(22)
Derek Walker
Keith Hampson
Stephen Ashton
Introduction	236	(2)
The nature of innovation and how it can be fostered	238	(7)
The decision to innovate	238	(1)
The process of undertaking innovation	239	(3)
Achieving improvement through innovation	242	(3)
Innovation as a strategy	245	(4)
Pushing the (3D) envelope in documentation - shop drawing and manufacturing procedures in the Australian construction industry on the Action Peninsula project	249	(5)
The traditional paradigm	249	(1)
Paradigm shifts	250	(1)
3D CAD innovation on the National Museum of Australia project	251	(1)
Design issues	252	(1)
Engineering and manufacturing issues	253	(1)
The National Museum of Australia project experience of this innovation	254	(1)
Summary and implications for the future	254	(1)
References	255	(3)
Implications of Human Capital Issues	258	(39)
Derek Walker
Introduction	258	(1)
Ethical positions and beliefs in negotiating the resolution of disputes and day-to-day interaction	259	(12)
Organisational environment factors affecting trust and commitment	271	(16)
Human capital skills required to facilitate trust and commitment	287	(5)
Chapter conclusions	292	(1)
References	293	(4)
Index	297