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Construction Projects, Establishing a Procurement Strategy - Essay Example

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Summary
The development of a dependable procurement strategy is obscured by the many cases of limited cooperation, mistrust and futile communication systems leading to conflicts between the contracting parties.
Partnering refers (according to Construction Industry Institute, cited in the Egan report "Encouraging Partnership in the Development Process") to the long term commitment between two or more organisations for the purposes of achieving specific business objectives by maximizing the effectiveness of each participant's resources…
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Construction Projects, Establishing a Procurement Strategy
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Some success factors that imply the design of an efficient strategy to an improved project performance achieved by minimizing construction conflicts may include; Partnering thus outlines through a formal agreement, early in the project, the responsibility, expected commitment levels and communication by all the stakeholders, with the clear understanding of the basis of any claims resulting from poor communication and lack of apt resolutions to arising differences. To better manage construction disputes, the design of fitting dispute resolution mechanisms, which are to be incorporated into the contract serves to either help in avoiding the disputes in totality or in quickly resolving any dispute once they arise.

Besides stipulating guidelines relating to only the interests of the parties involved, international construction projects demand the consideration of compatibility to international law, politics and culture. International construction industry is being faced with demands to make rapid changes due to changes in procurement strategies, government-led reform initiatives and heightened fields of international competition. These changes are aimed at helping tackle any problems arising from the reforms and to forecast the levels of project success, while attempting to solve problems related to predominance of personal capitalism which imply weak organisational capabilities.

In designing a procurement strategy, it is important to define a partnering infrastructure that governs the dissemination of the resources to be shared putting into consideration functions such as the reception, storage, retrieval and coding systems. This might include workshops and linkages in a computerized network to facilitate interaction between the parties in a virtual environment. (Infrastructure of Partnering for Construction Projects, 2001)The concept of modelling can be used to integrate the aspects of system and process to form a model for practising partnering which adopts a very systematic approach to modelling .

This is referred to as the procedural mapping model, and it includes the recognition of the core practises and activities. It forms the basis for designing the key elements of a reasonable partnering involving interactive process description, success monitoring and goal assessment.(Exploring Critical Success Factors for Partnering in Construction Projects, 2004)Therefore partnering can be modelled to have three critical interrelating components;Mutual objectives which must be well understood and agreed upon,Problem resolution methodologies to ensure quickly enhanced

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