Procurement Method: YOY Tower- A2A Tower- Partnering Process- Case Study Assignment HelpDownload Solution Now
Internal Code: 2HIH
Case Study Assignment Help:Task: As discussed in Group Assignment 1, your company has built a reputation for being one of the most dynamic and successful construction and fitout companies of its size in Australia. Your construction company has continued to grow and build its reputation as a quality builder with a strong organisational culture of ‘Quality, Consistency, and Value’ benefiting from its proudly multi-cultural, diverse and harmonious working environment. Recently, your company experienced a significant falling out with a JV-partner over an unsuccessful project and is seeking to manage any reputational damage that may have occurred in the market place and in the eyes of your regular Clients. In order to prevent this situation from arising again, your Managing Director has begun to be more selective in the projects that your company tenders for and has not entered into any further JV contracts with similar companies. Your company has also sought to consolidate its strengths by focusing on familiar projects with realistic time lines and realistic profit margins. Following this statement from your Managing Director, within a few months your company is successful in procuring two new commercial development projects. The first project, A2A Tower, was procured through project partnering and is a design and construct project. The project is of significant value ($70 million) and will be owner-occupied by your Client, a large property developer. The second project, YOY Tower, is also of significant value ($90 million) and is procured through a conventional lump-sum competitive tender but with a commitment from the Client to also be a partnering project. This building is part of your second Client’s future property portfolio but only for as long as an anchor tenant may be found and the building sold to fund future projects. These two Clients are aware of each others projects and are satisfied that your company can resource both projects in parallel. Both projects start at the same time and are well resourced. But both projects do not end in the same way. Partnering - a brief definition The partnering process has a common focus on the creation, within all companies involved on a construction project, of a spirit of teamwork and trust. The key elements of a partnering project can be summarised as:
- Respect; and
- Compare the two projects, A2A Tower and YOY Tower, and determine what you consider to be the key points as to why the projects ended in the outcomes as stated. Assess the relationships that were formed (in both projects) and discuss what you consider to be key management successes and/or failures in the managing of these relationships from each perspective of the parties involved. Consider analysing the soft and hard skills that key stakeholders displayed or indicated. What leadership traits were evident or may have been lacking that would have influenced the project’s outcomes.
- Familiarise yourself with the AS4902 and AS2124 contracts (available via the RMIT library link to Standards Australia). Discuss how these general contracts may have influenced the outcomes on Project 1 and Project 2. Provide logical and valid references from the case study to back up your arguement. What key features of the AS2124 general contract document surprise you? What aspects of the contract do you consider to be challenging to comprehend?
- Discuss and compare the Fixed lump sum contract and the Design and Construct contract. Research your answer to provide greater insight as to when these contracts are most appropriate, when they are not likely to be appropriate, and how and why certain parties in these types of contracts may benefit by using these procurement methods. Research two project examples of each contract that have been awarded within the last 5 years within Australia. Discuss why you think these projects were awarded using this procurement method.
- Compare the two projects, A2A Tower and YOY Tower, and consider the type of contracts used, the role of Partnering in the project outcome, and alternative contracts that may have been equally appropriate, or more appropriate, for the details provided in the case study for both projects. Make comment on the role of Partnering and discuss whether you consider it to be of merit to construction projects in Australia today.