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Procurement and Risk Management in Projects

Unit code: HES6798

Credit points12.5 Credit Points
Duration
 
12 weeks
Contact hours36 hours
CampusHawthorn
Prerequisites
PG: Nil
UG: 250 CP
Corequisites
 
Nil

Aims and objectives

This unit targets for specific learning objectives in essential knowledge areas regarding procurement and risk management in project-based industries as well as project/ programme settings in production/ process-based industries.

Upon learning, the students shall be able to:
  • Identify and recognize procurement functions and risks in project-based settings
  • appreciate project risk management related significance and deviations with respect to (a) clients, project teams and other stakeholders, (b) project phases, (c) procurement and project-delivery arrangements
  • apply relevant principles and theories for managing procurement and risks in project systems
  • formulate and/ or specify suitable strategies, methods and tools/ techniques for procurement and risk management in the project-based industries.

Teaching methods

On Campus Lectures and
Tutorials (Intensive mode)

Assessment

Seminar (worth 10%);
Individual Assignment (worth 20%).
Group Project (worth 30%),
Examination (worth 40%)

Generic skills outcomes

On successful completion of this unit, students will have:
  • An understanding of the principles of procurement in project settings and key aspects of project risks.
  • Advanced abilities to apply, analyse and participate in procurement and risk management responsibilities in project-based industries and project settings of production facilities.
  • Sophisticated skill-sets of creative behavior and value judgments in procurement and risk management knowledge areas

Content

The fundamental aspects covered regarding procurement management in projects are: procurement/ project-delivery options; project-based contracting mechanisms; bidding/ tendering in project settings, source selection arrangements for project teams; relational frameworks (e.g. partnering, alliancing) and value networking in projects; project procurement through public-private partnerships; e-procurement fundamentals.

Besides, specific coverage of project risk management include: mapping risks in different procurement routes and contractual arrangements; managing risks in international procurement, government/ quasi-government projects, and public-private partnerships; safety and security risks in project settings.

Reading materials

1. Akintoye, Akintola; Hardcastle, Cliff; Beck, Matthias (2008) Public-Private Partnerships: Managing Risks and Opportunities
2. Australia. Purchasing Australia (1996) A handbook of Managing risk in Procurement, Purchasing Australia.
3. Hampson, Keith; Walker, Derek (2008) Procurement Strategies: A Relationship-based Approach, John Wiley & Sons, Ltd.
4. Harold Lewis (2007) Bids, tenders and proposals: winning business  though best practice, 2nd edition, Kogan Page
5. Kendrick, Tom (2009) Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project, AMACOM
6. Lynch, Joette; Thai, Khi V. (2008) International Handbook of Public Procurement, Taylor & Francis Ltd
7. Peter W. G. Morris and Jeffrey K. Pinto (2007) The Wiley Guide to Project TechnologySupply Chain & Procurement Management, John Wiley & Sons.
8. Piga, Gustavo; Spagnolo, Giancarlo; Dimitri, Nicola (2006) Handbook of Procurement, Cambridge University Press.
9. PMI (2008), A Guide to the Project Management Body of KnowledgePMBOK Guide, 4th Edition, Project Management Institute.
10. Rowlinson, Steve; Walker, Derek (2007) Procurement Systems: A Cross-Industry Project Management Perspective, Taylor & Francis. 11.
11. Wideman, R Max (1992) Project and Program Risk Management: A Guide to Managing Project Risks and Opportunities, Project Management Institute.