Assessment 3 Will Be Undertaken Progressively Through Module ✓ Solved

Assessment 3 will be undertaken progressively through Module

Assessment 3 will be undertaken progressively through Modules 5 and 6 and will involve a Group Report (online students) or PowerPoint Presentation (F2F students). Based on your research of best procurement practice and the performance-based contracting model(s) and how this has been applied on other complex projects, critique how this method could be applied to the case study example. Students will also discuss key performance criteria, performance monitoring, contract terms that drive performance outcomes and associated contract administration, contract management and the contractor’s role in management of project constraints.

The last section of the report/presentation will include a group reflection summary of the key subject learnings. Where appropriate consider the aspects below:

  • Specific roles and responsibilities of project manager and procurement manager including in supplier development as part of completions effort or throughout the project life cycle (as appropriate).
  • The complexity of the project and the challenges faced in terms of contracts and procurement management over the full life-cycle of the project;
  • Significant issues or controversial aspects that relate to project stakeholders and/or result in significant risks to the contracting parties;
  • Leadership challenges associated with project execution, and importance of completions effort to meet the needs of the key stakeholders.
  • Possible actions and how implementing those action will improve sustainable outcomes for the community and key stakeholders (learn from Modules 5 and 6 in areas such as performance drivers, performance outcomes, relationships, completions effort and lessons learnt).
  • Understand possible common themes or learnings that can be applied to future large projects to improve management of contracts and procurement and ensure project success.
  • Bring out (as appropriate) any aspects related to project management practice and or changes required to ensure better project outcomes.

Areas for further vendor negotiations and management to achieve successful contract completion:

  • Importance of completions documentation, project closure and lessons learnt.

Learning Resources: Resource on APA style and report writing have been provided as baseline materials to support the structure and referencing of Assessment 3. These resources should be used to inform the writing style, citation, and overall quality of the submission.

Paper For Above Instructions

Introduction and purpose. Assessment 3 expands on prior modules by centering on best practice in procurement management and the evolution of performance-based contracting (PBC) within global projects. The goal is to critically evaluate how performance-based contracting can be integrated into the case study, and to develop a framework for evaluating supplier performance, contract terms, and governance structures that support successful project outcomes (PMI, 2021). By drawing on established procurement theory and case-based evidence, the paper demonstrates how PBC can align incentives, drive accountability, and support continuous improvement across the project life cycle (Monczka et al., 2015; Christopher, 2016).

The theoretical foundation rests on two pillars: (1) performance-based contracting as a vehicle for outcomes, risk transfer, and value realization; and (2) strategic procurement as a core management discipline that interfaces with project management, stakeholder engagement, and supplier development (Kerzner, 2017; Monczka et al., 2015). The application to the case study is framed through the lens of best practice, including clear performance criteria, robust monitoring mechanisms, and contract terms that incentivize sustained performance while preserving flexibility to adapt to evolving project constraints (PMI, 2021; Christopher, 2016).

Key performance criteria and performance monitoring. A PBC approach requires explicit performance criteria linked to project outcomes, such as on-time delivery, quality conformance, cost predictability, safety, and environmental/social sustainability metrics. These criteria should be defined in measurable terms (e.g., schedule performance indices, defect rates, safety incident rates, and lead times) and cascaded to supplier teams through service level agreements and key performance indicators (KPIs) (Monczka et al., 2015). Monitoring should leverage real-time data, audits, and independent verification to ensure objectivity and continuous feedback loops that enable timely corrective actions (CIPS, 2019).

Contract terms and administration. The contract terms should embed performance outcome incentives, such as risk-sharing mechanisms, milestone-based payments, and long-term total-cost-of-ownership considerations. Important terms include clear scope, change-control processes, escalation procedures, dispute resolution, warranty and liability arrangements, and completions documentation. Effective contract administration requires a defined governance structure, role clarity for the procurement manager and project manager, and integration with supplier development activities to drive continuous improvements (PMI, 2021; Kerzner, 2017; Lamming, 1993).

Contract management and the contractor’s role in managing constraints. In complex projects, contractors should actively participate in risk management, schedule integration, and constraint analysis. The contractor's role includes providing timely information, innovating to meet performance targets, and collaborating with the client on risk-sharing arrangements. Integrated planning and joint problem-solving sessions help align incentives and reduce adversarial dynamics, enabling a more predictable project trajectory (Williams & Samset, 2010; Christopher, 2016).

Group reflection and learning. The final section of the paper should reflect on lessons learned from the case study and correlate them with Modules 5 and 6 learning outcomes. Emphasis should be placed on stakeholder engagement, leadership challenges, and the completions effort required to meet stakeholder expectations. The reflection should also identify actionable actions that could improve sustainable outcomes for the community and stakeholders, drawing on the experiences of the case and the broader literature (PMI, 2021; Laureate 2013; Victoria Wellington 2013).

Conclusion. The integration of performance-based contracting and strategic procurement practices has the potential to improve project certainty and stakeholder value when embedded within a robust governance framework, clear performance criteria, and disciplined contract management. The case study demonstrates how these elements can be operationalized through structured supplier development, measurable performance criteria, and effective completions management to deliver sustainable project outcomes (Monczka et al., 2015; Christopher, 2016).

References

  • Project Management Institute. (2021). A Guide to the Project Management Body of Knowledge (PMBOK Guide) (7th ed.). Project Management Institute.
  • Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (12th ed.). Wiley.
  • Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management (6th ed.). Cengage.
  • Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.
  • Lamming, R. (1993). Beyond Partnership: Strategies for Supplier Involvement in Product Development. Wiley.
  • Krause, D. R., Handfield, R. B., & Scannell, T. P. (1998). An empirical investigation of the factors affecting supplier development. Journal of Operations Management, 16(2), 213-246.
  • Cousins, P. D., Lawson, B., & Squire, B. (2008). Performance-based contracting and the management of supplier relationships. Journal of Purchasing and Supply Management, 14(3), 253-265.
  • Chartered Institute of Procurement & Supply (CIPS). (2019). The Essentials of Procurement. CIPS.
  • Laureate International Universities Publishing. (2013). Essential guide to APA style. Baltimore, MD: Author.
  • Victoria University of Wellington. (2013). How to write a business report. School of Marketing and Internal Business and Student Learning Support Service.

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