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PROJ6004 Contracts and Procurement Assignment - Laureate International Universities, Australia

Learning Outcomes

  • Critically evaluate the risks associated with contract and procurement management approaches and make recommendationsto global project sponsors with regard to 'best practice' in this area.
  • Apply judgement and initiative in the development of 'best practice' contract and procurement process for global project management, identifying the external factors that need to be considered and mitigated for in every instance.
  • Analyse the responsibilities of the procurement manager and project manager necessary to ensure stakeholder satisfaction.

Case Study - The English national stadium project at Wembley

Task - Contracts and Procurement Review of the case study and associated Learning Resources, including detailed analysis of findings. Analyzing the procurement in the case study project. This assessment comprises of three parts:

Part A: Introduce and summarise the procurement context and scope (life cycle journey of the case study project). Identify the project procurement components and tender evaluation that may have been used in the case study (according to your knowledge from the theory you have studied).

Part B: Describe the complexities (and key issues/risks), discuss the project environment and organisation aspects, leadership and governance and how these have influenced outcomes.

Part C: Identify or suggest key mitigations and possible learnings. Explain how those learnings may require changesto roles and responsibilities of key project resources, changes to procurement briefsor specifications, scope and the procurement process itself. Identify dependencies and common themes.

Answer - Contracts and Procurement


Public projects are a major reality for any social establishment as it provides a constant development goal for any of the selected public project management. A similar case study related to the development of a new English national stadium has been included under the assessment. It describes the operational liabilities which are linked to the establishment and management of this public project. As there are a variety of operations and maintenance possibilities required by the desired process and thus, it needs a detailed analysis. The project procurement cycle for the provided case starts with need-based ideology and ends with the selection of a set of competent contractors for achieving the desired goals. The process incorporated with procurement and management of the selected project leads to a detailed analysis of required segments and elimination of any unidentified and unnecessary requirements. Events such as logistics management and inventory control are some of the most influential aspects included under the procurement function for this project. Identifying and planning are two of the most crucial aspects which must be included all across a successful procurement process.


Procurement context and scope

To conclude the desired design and framework for this project, efficient utilization of public funds and resources must be carried out. Management has undertaken effective decision making to select the most feasible contracts under this particular dimension (Uyarraet al. 2017). Some of the key features which correlate with the established procurement process are discussed in the below sections.

  • Transparency
  • Economy
  • Integrity
  • Fairness
  • Accountability
  • Competition
  • Openness

Project procurement components

A series of components are involved in the proposed procurement process. These components have a major role to play in idealizing and initiating operational requirement for the English national stadium project at Wembley.

Request initiation

In the context of the present project, it will be the most initial stage under the procurement process. This process requires the identification of requirements for each segment of operation for the desired outcome (Cernat&Kutlina-Dimitrova, 2015).

Requirement development

Under this component of the procurement process, a generalized ideology is provided to the available contractors in concern of the required resources.

Approval request

A series of approvals need to be idealized and formulated to assess the needs and abilities of the project. It includes different sectors of operations all across the defined fragments.


Authorized purchase

Different processes require a series of purchases to be made and that too at various levels. It defines the usability of contracted resources and information systems.

Reviewing of proposals

As the operations are large-scaled, there are a series of request and proposals for availing the opportunity. Individual contractors, as well as contracting companies, submit proposals for conducting these operations and the authority reviews their eligibility (Edquistet al. 2015).

Managing contract responsibilities

The contracts provided are included in the proposals, and after review, a relative approval process is initiated. It incorporates the requirements and organizational ability to signify changes in operational models.

Contract closure requirements

After successful completion of application review and contract acceptance from the desirable vendors, a relative closure process is initiated to finalize the order. It involves the assessment of resources and their usability for each of the selected process (Kang, Lee & Kim, 2016).

Flowchart for the procurement process

A flowchart is an ideal presentation of each of the respective ways which can be included to produce significant results in the longer run. It also provides the organizations with an ability to interact and explore each section of the process intensively.

Tender evaluation

The process for evaluation of tenders is accomplished with the available division of process all along the described format. The evaluation process must accomplish all the previously mentioned ideologies for measuring and managing the factors of development of the project (Smithet al. 2016).

Key issues/risks

A major project like the new English national stadiumhas a series of operations, and thus the availability of risks are also very frequent in this condition. Some of the most prominent risk factors inclined under this project are discussed in the latter sections of this report.

  • Construction risks

A construction process is in many cases, an unpredictable process, so similarly under this situation, risks are quite high in terms of time and resource shortages. The company is liable to produce significant impacts on the period, and it cost specificity. Due to this, there are some contractual obligations in the agreement made between Wembley National Stadium Limited and the contractor, Multiplex (Muñoz-Soroet al. 2016). The complexity of this relationship is inclined to produce compensation if there is any chance of delay from the contractor, Multiplex. Apart from the availability of time limitation, there are fewer restrictions in terms of the accepted design. The importance of this time-oriented delivery is so important that there are provisions for a penalty on the case of the missed timeline. The contract company, which is Multiplex is liable to complete operations with a maximum possible extension of nine months. This is a major risk factor for both that are, the Multiplex and Wembley National Stadium Limited. There are adequate provisions available, which justify the availability of a sound system which can be used to attain a better construction process for the stadium. Anticipated costs are another important factor which can cause risks of losses. These are also managed with an equal distribution of authorization as well as financial responsibilities between the Wembley National Stadium Limited and the contractor company named Multiplex (Chassang&Ortner, 2019).


  • Operating risks

Running a stadium is a huge responsibility, and thus, the chances of misconducts and risk arising are huge all over its operations. If the running cost of this stadium is more than the accepted limit, there will be a financial crisis for each one of the individual departments responsible for maintaining the stadium. However, during the testing process, it was determined that the banks had been placed under their due diligence, and this is a major relief for the Wembley National Stadium Limited. The chances of risks and its related streams are far from hitting into reality, and thus, the operational risks for this major construction process are controlled. In addition to the financial assistance from the banks, the Football Association also has the liability for providing regular income guarantee. This is to ensure that the operational risks are minimized and the stadium must operate according to the required ideology and pace. In addition to this, there are provisions under which if any inconvenience in carrying out operations is faced in the coming future, the Wembley National Stadium Limited can approach Sport England. It is to ensure complete financial independence to the organization to conduct a majorly idealized operational development all across the industry.

Project environment

This project is associated with the construction and building of a facility, and thus, the project environment around is quite important. It provides a string of factors which can be evaluated and analyzed to justify the growing need of project management all across the operational dimensions. In addition to this, the introduction and involvement of the London development agency is another major factor which can be labelled as the core factor for including environment based associational aspects (Thai, 2017). The London development agency has provided £21 million to facilitate the environment based needs of this project and frame its competency in a much-controlled manner. Initiatives such as the specification of public transportation, regeneration of the Wembley area and ecological aspects are some of the most important aspects related to the project environment. The operational environment related to this project also includes a set of reliable departments and functional authorities which incline the process of development all across the process. In addition to this, public support and alignment of the project towards public development are some of their environmental factors related to this project. Financial consultation and legal advising are other important sections which justify the operational needs of the organization and the project environment. These factors help the project in achieving its goals and objectives and thus can be considered as an importing environmental factor (Chenget al. 2018).

Some of the subordinate sections which conclude to be much more organized and have a huge impact on the operational environment are provided below.

  • Stadium construction
  • Financial operations
  • Department for development and management
  • Site confirmation and usage
  • Development of infrastructure
  • Initiatives for contingency


Leadership and governance

Availability of an adequate leadership possibility and managerial cooperation is a basic requirement for any of the public domain projects. It provides the organizations and authorities with an additional liability to take good care of the project due to efficient higher management professionals. It can be a major tool for managing the projects in case of any extreme condition. The underlying leadership and management possibilities for each of the departments and the organizations must be responsible for facilitating the growth and productivity of the project. In case of lacking, it can be used as a prominent tool for identifying the issues and complications along with the departments or institutions responsible (Meehan,Ludbrook& Mason, 2016). Thus, the Wembley National Stadium Limited must provide the project with adequate support in terms of capable leaders and managers, who can justify the growth and development all across the process. Effective corporate governance is another segment for achieving better leadership and management operations. As the project is rated to the public domain, there is an additional liability to idealize the operational usage of the public funds available. A constant monitoring and evaluation process must be carried out by the office of government commerce as agreed by the Wembley National Stadium Limited and the Football Association. It is to keep a check on the operations and avail effective leadership across the project.

Roles and responsibilities of key project resources



It is an internationally recognized body for ensuring design briefs for stadiums all along the area in terms of Olympic ideologies.

British Olympic association

It is an investment firm and is accountable for providing financial support to the project.

Credit Suisse First Boston

It is responsible for providing construction advice based on quantity surveys.

Cyril Sweett Limited

The department of culture, media and sport are responsible for sports and lottery policies. It sets the regulations for lottery distribution and also provides financial directions to the various departments (Osei-Kyei& Chan, 2017).

Department for Culture, Media and Sport

Football Association is a public body which is indented to promote sports and is backed by government support. It has some specific rights and responsibilities which undergo from time to time and value the process. It is also responsible for providing additional funds to the project at times of financial risks.

Football Association

Multiplex is the vendor company which has the responsibility for all the construction process, which is intended to be achieved. It has to facilitate different sectors to work upon and produce advantageous results for the project.


The office of government commerce is liable to monitor the operations and provide significant feedbacks to the organizations involved from time to time. Since it is a public body, it can make unbiased decisions all across the project (Thai, 2017).

Office of Government  Commerce

It is a sports consulting organization and has accountability in the technical as well as cost-based evaluation for the project. The proposal for this project is assessed and evaluated by this organization.

Sport Concepts

It is responsible for launching the English national stadium project. The selection of Wembley as the project site is also carried out by this body. It has also awarded the project with a lottery grant of £120 million.

Sport England

Private company which is responsible for the operation and construction of the new stadium. It has also generated £15 million through the operation of the old stadium. It can be used for the new project as a Limited investment.

Wembley National Stadium Limited

Bank. It was one of the senior banks which had helped the project achieve a loan of £436 million as development funds.




Changes to procurement briefs or specifications (Recommendations)

The project was based on different ideologies, and each of the related departments and organizations was involved under their beneficial attributes related to the project. This ideology is not a major success factor for any public domain project. The public domain projects are based on providing substantial support to the local population and must also be operated under financially controlled environmental conditions. The companies involved must understand the vision statement and benefits which this project can bring to the common population and act accordingly (Kang, Lee & Kim, 2016). This can also help in limiting the financial as well as operational issues which are available at certain points of the project completion process. To provide a better operational and construction process for the project, distinctive abilities must be developed by the included departments. The project management alternatives must be prepared, which can help in guiding the operations at the time of crisis. In addition to this, an efficient risk assessment plan must be developed for the project which can be used to undertake effective measures. Financial constraints are an important factor mentioned in the initial section of the provided case and there are significant requirements which justify the growing processes. Institutions like banks and investment companies must guide the project and its related vendor operations to limit the issues and risks. These initiatives will help the project achieve its functional aims in a much more controlled and smooth manner. These will also help in controlling both types of risks that are operational as well as constructional risks.


This report explains the operational implications across a major public construction project. Different ideologies and considerations are used to define the operations, and a relative understanding of profound ways for establishing financially empowered project management is reflected. The limited liabilities put forward by the companies and agencies involved are examined, and suggestions are made to correlate them with development. Finance is an important factor integrated into this report, and it has defined certain situations which can be considered as the harsh reality of a public domain project. The accountabilities, roles and responsibilities are explained, and differences are discussed to ensure a more detailed and analyzed perspective in the concerned subject. Factors such as leadership, management, key issues and complications are discussed all across the report to idealize a much more inner preview of the process. Different risk factors and their respective solutions are integrated, which are an additional advantage for the organizations involved and the report itself.


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