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Procurement Academic Essay

Wallington Leisure plc is a dynamic leisure group that is constantly seeking to move its business forward. Currently their operations consist of 30 racecourses which stage 10% of all racing fixtures held each year, making them one of the Australian largest operators of horseracing. The Wallington race portfolio includes one of the most popular races in the world, the St John Stakes, as well as other high profile race meetings throughout the year.
Wallingtonare proposing to make substantial improvements to their flagship racecourse at Melton which will host the 2014 St John Stakes scheduled for mid-November. The redevelopment of Melton is to include:
• Construction of a new 7-storey grandstand to include an extensive conference and exhibition centre and associated external works.
• Construction of a new 200-bed hotel facility to be operational for the 2014 St John meeting in mid-November.

At this stage, the client does not wish to constrain by identifying fixed budgets, however, the overall development budget for the entire project is $28M.

Wallington have produced an outline specification of what they believe it requires and have appointed your groupto act as their independent adviser on selection of the design and construction teams.The client has expressed requirements in terms of performance of the product and established a quality/price mechanism.
Q1- Five short-listed design firms have been assessed against the client’s quality criteria and tender assessment sheets have been produced respectively.Select the most suitable consultant for the project according to the client’s requirements and the tender assessment sheets as below:
Quality threshold: 65
Project quality/price weighting: 65/35

Quality criteria Project weighting
Practice or company 25%
Project organisation 15%
Key project personnel 40%
Project execution 20%
Quality criteria Firm A
Marks awarded Firm B
Marks awarded Firm C
Marks awarded Firm D
Marks awarded Firm E
Marks awarded
Practice or company 60 64 80 90 100
Project organization 80 80 70 80 80
Key project personnel 55 65 80 80 90
Project execution 70 75 70 70 80
Price criteria Firm A Firm B Firm C Firm D Firm E
Tender price $1.2M $1.86M $2.25M $3.12M $4.25M
Q2- Four construction firms are interested in tendering for the project. However, the client requires you to carry out a prequalification process to ensure that, before being included on a tender list, all contractors are assessed to make sure they are equally capable of providing the necessary technical and management expertise, as well as the financial resources, to complete the project successfully.Value for money also will be attractive to this client and should be demonstrated wherever possible.You are, therefore, required to analyse the key issues for Wallington Leisure plc to consider for selecting the contractor including a review of the project criteria/objectives at Melton.

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Posted on May 17, 2016Author TutorCategories Question, Questions

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