PSP50616 Procurement And Contracting

The construction of any project is able to face some key challenges. This was not exceptional with the Panama's canal expansion Project. I do agree with the student that the project was able to face some of the key names risks and it was the success that the risks were mitigated. It is true that on the tendering and contractor selection, the bid cost is not the only factor, which has to be considered (In Edquist et all., 2014). The incompetent contractors may end up being chosen just because they have the lowest bid and therefore lead to failure of the whole project. This was a key problem which could have affected the Panama's canal expansion Project. Secondly, correct materials for the required purpose must be provided in the project according to the specification. The transportation cost for the both imports and exports of materials on site must be considered. These are able to increase the cost overruns for the projects. Thirdly, the use of the project must be considered under different perspectives and the utilities, which will be available (Lorrell, Lowell & Younossi, 2006). The utilities must be in line with the project specifications. Lastly, the  environmental costs must be considered in any project. This is because the operation of the different projects has depend on the natural environment. The cost overruns were key in the Panama's canal expansion Project regardless irrespective of the way the risks were mitigated. The cost overrun s were learnt and mitigated over the process a process which was able to enhance the construction of the project.

The Three Gorges Dam Project

It is true that each challenge is a lesson which is able to enhance the project execution in future days. Cost overrun is one of the key problem which the project was able to incurred. This was able to cause much problems for this project and it was clear that there is more consideration during the tendering process than the visible costs in the project. All these factors have to be considered before the commencement of the project. In addition, the project was able to get affected by the high population increase. This means that the project was unable to meet its needs in serving the people (In Dinsmore & In Cabanis-Brewin, 2013) Moreover, during the procurement process, the costs for the relocation of the affected people are offered. It was bad and against the laws for the project to relocate the people and fail to offer an alternative to them. It is true that the project of Three Gorges Dam Project was able to raise a lot of issues which made it ineffective as it was expected (Chartered Institute of Building (Great Britain), 2014). All these issues were able to raise different aspects of the procurement process and the different key elements which need to be considered. From the tendering to the aspects of the environmental key elements were able to be seen in the project. This showed they were able to raise the key elements in the implementation of the process. The projects helps to act as the lessons to other projects.

References

In Edquist, C., In Vonortas, N. S., In Zabala-Iturriagagoitia, J. M., & In Edler, J. (2014). Public procurement for innovation.

In Dinsmore, P. C., & In Cabanis-Brewin, J. (2013). The AMA handbook of project management

Chartered Institute of Building (Great Britain). (2014). Code of practice for project management for construction and development.

Lorell, M. A., Lowell, J., & Younossi, O. (2006). Evolutionary acquisition: Implementation challenges for defense space programs. Santa Monica, CA: Rand Corp.