PPMP20011 Organization’s Procurement Ethics Assignment Sample

Contract and Procurement Management - Question 1

a) Navid should take legal action as Vasal subsequently does not wish to proceed but he takes the money.

b) Navid should filed a case against Vasal.

c) As a procurement officer at CQU, I am taken the following steps are the bidding process.

d) this should be advertised for bids under a separate contract.

Contract and Procurement Management - Question 2

a) Material management is the process of planning, executing and controlling construction site and office activities. The goal of materials management is to make building materials available at the stage of their use when needed. The material management system strives to select, purchase, distribute and manage the material at the right time, at the right price and on the right site. Material management means that all necessary efforts are planned and controlled to determine the exact quality and quantity of a particular material. Thus, material management is an important component of project management. Materials are expensive to build, reduce collection costs, and improve opportunities to reduce overall project costs. I should accept the change request, which has been asked by my client. As some items in the BOQ are found by the client useless, I should accept the changes unless it will affect the outcome of the project. At the time of accepting changes I should be able to look into the project budget.

b) At first I look into the dates of the change. Change management forms should include the end date for change management.

Additional dates may be effective depending on the agreement.

• Date of first notice of change
• The date one submit the change control is for approval

Typically, in the case of a construction contract, the parties must notify the change of work area within a specified period. Failure to follow the notifications or refusal of the correct notification process may result in a request for change or delay in payment. The typical deadline for notifying a project owner or owner-owner change agent is 5-10 days but varies from contract to contract. If the contractor does not follow the procedure, the change order will be processed, but will not be paid to the contractor once the work is completed. One should read the construction contract carefully to understand the process of submitting change orders (Crane, et al., 2019).

Then I should look into the details of the change. This is where the contractor details the work change. This could be an explanation for the extra work they do or the work they don't need. If the reader is not familiar with the project, the contractor should provide as much detail as possible in this section.

The real reason for enforcing the terms of the change is clearly important to prove the case for approval. These Terms may be the result of changes to the Site Terms, Design, Changes, Legal or Administrative Changes, Strikes, Godfather Activities, Terrorism, Vandalism, Weather or so-called "Force Majors" Events. The Force Majority event is an event that no one on the project can avoid due to external, uncontrolled conditions. I must be as precise as possible so that they can attach written explanations, photographs, drawings or other evidence to justify the cause of change.

At the very next level I should be able to update the project schedule and should check the cost of the change.

d) due to sudden outbreak of Covid 19 demand and supply of some products will be impacted. The demand and supply of the plumbing pipe segment is impacted. In addition, wood panel along with building material sector is impacted in a significant way.

Contract and Procurement Management - Question 3

a) The following items will include in the claim:

• Listen to or read the complaint of customer
• Take a time to process the criticism.
• Apologize and reiterate my understanding of the current unprecedented conditions due to Covid-19
• Properly outline the plan to remedy the situation.
• Incorporate changes from customer feedback.

b) As the burden of proof is on the plaintiff in a civil case, a defendant does not really must prove anything to avoid a jury determining for the plaintiff. In case, the plaintiff cannot influence the board that the facts and claims are more expected to be true than not, the offender should conquer although he presents no defense in the least. Defendants in civil cases often work to poke holes in a case of plaintiff, rather than to positively demonstrate they are not responsible. However, defendants can sometimes raise favorable defenses. When the construction organization has resulted in a significant delay in materials supply, and labors’ delivery during the unprecedented conditions because of Covid-19 resulted in the federal government imposing new measure including social distancing, affirmative defenses could include a bona fide defense for the discrimination. In case, an offender raises a confirmatory defense, the burden of proof changes to the defendant as well as the defendant now has to prove that the defense ought to execute (Le?niak and Plebankiewicz, 2015).

c) At this time, I decide to offer compensation to a dissatisfied customer, and what kind that compensation takes, based on the type of the complaint primarily. In case, customers have experienced a late delivery or service, I can feel that on correcting the actual problem in the unprecedented conditions due to Covid-19, some form of compensation is needed. Furthermore, this is similarly desirable to take an appropriate follow-up action, including a letter of apology or a phone call to ensure them that the problem has been completely under-controlled.

Contract and Procurement Management - Question 4

a) there are four steps to ensure the ethics of organization.

At first the organization should be able to set a precise, clear standard of moral as well as ethical values, behaviors and attitudes. A positive deviant person is a highly respected person who can usually be identified by asking about top actors and directors. They are the primary creators and maintainers of organizational ethics because they model the ideal moral outlook and best practices that everyone should have. Positive stimuli are inspired by their efforts to create ethically “social benefits” for their customers and organizations.

Then all of the personnel of the organization must be guided to follow the ethical guidelines. Employees should be motivated to keep the guidelines of the organization.

At the very next level, the manager of the organization should be able to sustain the ethical guidelines. It’s a way of doing business that people are so passionate about the company that people can’t imagine the skills otherwise (Paroby and White, 2010).

b) in this circumstances, at the time of negotiating with CQU I will make multiple offers simultaneously. If I put only one suggestion on the table at a time, when my opponent rejects it, I know almost nothing. Conversely, consider what happens if I make multiple offers at the same time. Each offer is equally valuable. Identify potential win-win movements as well as show multiple offerings at the same time, stay habits and their preferences and requirements and their flexible nature.

c) in order to position myself, I will develop my financial skill to lead in innovation.

Contract and Procurement Management - Question 5

a) The benefits of outsourcing are:

1. Improved focus on core business operations: Outsourcing can free up the organization to focus on its strong point, allowing its employee to focus on their key errands and on the future strategy

2. Increased efficiency: Selecting an outsourcing organization that concentrates in the process or service I want them to perform for the organization can help and accomplish a more efficient, and productive service, often of superior quality

3. Increased reach: Outsourcing can offer us access to capabilities as well as facilities otherwise not affordable or accessible (Oyeyipo et al. 2016).

4. Superior competitive benefit: Outsourcing can help me leverage skills and knowledge, along with our complete supply chain.

Risks related to outsourcing normally fall into four categories such as

1. Loss of control

2. Loss of innovation

3. Loss of organizational trust

4. Higher-than-expected transaction costs

b) Code R26:48 explicitly prohibits competitive bidding for professional engineering services as well as Code R26:49 reinforces competitive bidding restrictions by exposing unethical practices. The only solution to the underlying problem is to comply with the client's request for a competitive bid.

The NSPE policy defining competitive bidding states that professional engineers will not provide information in an initial interview that could be the basis for a price comparison. Accordingly, the policy states that preliminary interviews should be conducted solely to determine the qualifications and availability of project consultants and not to discuss costs until they have been selected for the work of the company. For general information of potential clients, the consultant should determine the minimum fee or the proposed median of engineering. The exception rules and policies, read together, so the consultant is advised not to provide a description of potential costs to the potential client before being selected for the job (Forcada et al. 2017).

Code R 26:49 is mandatory for professional engineers who apply for a competitive submission to leave the project employment. However, we will read in the language that professional engineers have the opportunity to advise the owner about the relevant ethical rules in this situation and to advise the owner to withdraw the request for a competitive offer. Advisers can continue to discuss qualifications and availability. Before being selected for the project, each firm must withdraw from consideration of the need to submit a price for the work (excluding general references to the minimum or medium cost index of the engineering community).

Here is the NSPE policy regarding competitive bidding:

The practice of engineering is an educational profession that requires technical training, extensive experience, personal skills, honesty and dedication to its members. The selection of engineering services through this quality evaluation ought to be the basis of comparison rather than competitive bids.

Competitive bidding by engineers for employment on the basis of the professional charges or fees is measured unethical practice by every professional engineering groups and enables engineers to exclude themselves from consideration.

Competitive bidding for professional engineering services are defined as government or informal deposits, or receipts, written or verbal estimates of labor or bidding in dollars, working days, percentages of construction costs, or other forms of compensation. Engineers or engineering firms are selected for discussion before clients can compare services on a price basis. The publication schedule for the minimum fee or median offer prepared by various engineering communities is not considered as a competitive bid (Ballesteros-Pérez et al. 2015).

The recommended procedures for Negotiating---This is the policy of the Society that

(1) Any governmental unit, corporation, or individual eager to obtain the services of the engineering consultant or firm that is unaccustomed with the consultants in the branch of engineering covering the considered work, ought to protect from the best available sources the names of some practitioners

(2) The Client ought to discuss with the practitioner about the proposed project, considering experience, background, current work pressure, staff qualifications, and other issues considered relevant to the project's effectiveness.

(3) The client ought to choose an organization for work, depending on negotiation of satisfactory contract, after considering every relevant factor other than expenses.

(4) If the client and the selected company are not able to negotiate a acceptable contract with fees, the chosen company must be notified in writing and this will never happen again, and the reflected negotiations must continue in the same manner until both parties reach a satisfactory arrangement with the successful organization.

In conclusion, the company cannot ethically offer the client with a statement of the estimated cost of engineering services to customers on a predetermined basis for the work, as it would be a competitive bidding to do so. Every engineering organization has an obligation to stay away from further consideration by sending information that allows clients to compare prices before choosing a organization for their work (Awwad et al. 2015).

References for Contract and Procurement Management

Awwad, R., Asgari, S. and Kandil, A., 2015. Developing a virtual laboratory for construction bidding environment using agent-based modeling. Journal of Computing in Civil Engineering, 29(6), p.04014105.

Ballesteros-Pérez, P., del Campo-Hitschfeld, M.L., Mora-Melià, D. and Domínguez, D., 2015. Modeling bidding competitiveness and position performance in multi-attribute construction auctions. Operations Research Perspectives, 2, pp.24-35.

Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, USA.

Forcada, N., Serrat, C., Rodríguez, S. and Bortolini, R., 2017. Communication key performance indicators for selecting construction project bidders. Journal of Management in Engineering, 33(6), p.04017033.

Le?niak, A. and Plebankiewicz, E., 2015. Modeling the decision-making process concerning participation in construction bidding. Journal of Management in Engineering, 31(2), p.04014032.

Oyeyipo, O., Odusami, K.T., Ojelabi, R.A. and Afolabi, A.O., 2016. Factors affecting contractors' bidding decisions for construction projects in Nigeria. Journal of Construction in Developing Countries, 21(2), pp.21-35.

Paroby, D. and White, D., 2010. The role of shared vision and ethics in building an effective learning organization. Southern Journal of Business and Ethics, 2, p.133.

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