Discussion Board Replies
Each reply must be 200–250 words and reference at least 1 peer-reviewed source or include at least 1 instance of biblical integration in addition to a text. The instructor is looking for substantial, thoughtful, and critical interaction. Must reply must 2 classmates, adding to the discussion by commenting on their identification of purchased/contracted items. Discuss the new risks that would be present based on their list of items. Be sure to include new information in your reply in order to advance the discussion.
Post # 1
Forum 3 Discussion Board: Ronald
Meeting project requirements starts with acknowledging the full list of project requirements. While this sounds intuitive, some projects fail to meet requirements because a lack of understanding and the subsequent mismanagement of project resources. Wilson (2015) notes that there are several sources to obtain project requirements like project charters, activity information checklists, work breakdown structures, and network diagrams. Knowing the resources necessary to complete individual deliverables is necessary for a comprehensive procurement plan. Procurement is often more challenging because of the complexities of projects. This is seen “as economies and societies are becoming increasingly complex, so is construction project management, which is evolving from traditional single project management to the management of multi-project programs and portfolios” (Zhong, Chen, Zhou, & Hu, 2018). Thus, more holistic tools like network diagrams that tie deliverables together are better able to facilitate project success.
Construction projects require general requirements such as a foundation, interior materials, electrical, internal configurations, and government processing. In concert, projects are based off the need of the customer, so individual needs of the buyer will create unique requirements. Hence, resources for construction projects will have to be at least somewhat uniquely procured. Examples for this project consist of the boat dock and septic system. For the purpose of this post it is helpful to separate standard and innovative project requirements. Construction companies are likely to have a standard operating method that can be built upon after customer requirements are specifically listed (Zhong et al., 2018). The framework of the house will most likely not be impacted because the requirement is about safety and security more than taste. For this reason, the difference between safety procedures and individual requests is often apparent.
The customer for a unique home might request a different interior makeup, but the resources necessary to complete the project won’t change drastically besides total quantity. This is an important point to make when considering project procurement. While quantities will change, once a supply chain and the skillset are developed internally to complete the work, performing routine or standard construction is simple and natural. Unlike routine deliverables, the plumbing, dock, and the slab floor need further analysis to determine if they need to be outsourced, which is discussed in the next section.
Construction projects have significant government regulations due to health and safety concerns. Any business that must process through bureaucracy must understand that stakeholder management still applies. A recent study indicates “that project management teams at the local government level often fail to properly identify some stakeholders from the early stages of the project” (Amoatey & Hayibor, 2017). While it may not seem natural to see an efficient bureaucrat as a critical resource, project success might be depending on the timeline a permit is approved and how fast paperwork is processed through federal and local regulators. These resources should adhere to notes from Amoatey and Hayibor (2017) about the five major methods for soothing stakeholder management, which are “communicating with and engaging stakeholders; identifying stakeholders properly; formulating a clear project mission statement; keeping and promoting good relationships; and analyzing stakeholder conflicts and coalitions.”
Risk and Project Contracts
Completing requirements internally makes sense when the skillset necessary is available and working internally is financially optimal. Plumbing and slab floor are typical for home builds, but still might require innovative practices. Given the complexity of the two requirements they could either be outsourced or completed internally. Requirements that are outside internal skillsets and financially draining are best to be outsourced. Innovative solutions are difficult to create and facilitate. So, creating an optimal solution is often more complex than simple in-house innovation. Even with the correct resources, applying and making the solution requires expertise. Hence, the decision to outsource is two part, understanding the connection between the resource and the work to physically create the deliverable. The decision is further complicated by the lack of capability to obtain an innovative product from outsourcing and turn it into a piece of a larger work. Whyles, Meerveld, and Nauta (2015) note that “despite the increased interest it has received in the last decade, procuring innovative goods and services is still uncommon in the public sector.” This means that while the option exists for obtaining innovative resources, it is very difficult to properly incorporate it into the greater project. For this reason, the boat dock should be entirely outsourced because it is outside the skillset of the construction company.
Project Procurement Strategy
Mentioned above, construction can be segregated into typical and innovative work. Also, obtaining resources necessary for innovation is often incomplete. These are crucial concepts to comprehend when discussing a strategic procurement strategy. Kapsali, Roehrich, and Akhtar (2019) note that incomplete contracts fail due to miscommunication and unrestrained optimism about individual deliverables turning into the full project. This is critical to understand because setting up contracts for outsourcing is a necessary endeavor for certain construction projects. Therefore, aligning contracts under procurement strategy is a must to fully incorporate outsourcing for project completion and customer satisfaction. Lastly planning project procurement is a part of risk management. This is represented in the fact that “while technical and financial uncertainties mainly influence project costs, uncertainties related to markets, regulations, and organizational structures affect both project duration and cost” (Zhong et al., 2018). This means that incorporating risk management and respective contingencies into procurement is necessary to meet the uncertainties projects naturally face.
Planning project procurement strategy and risk management can be daunting. Isaiah 41:10 (ESV) states “fear not, for I am with you; be not dismayed, for I am your God; I will strengthen you, I will help you, I will uphold you with my righteous right hand.” This means God wishes for His people to understand the risks and uncertainties they face, while simultaneously placing faith in Him.