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DRPS : Course Catalogue : School of Engineering : Postgrad (School of Engineering)

Postgraduate Course: Procurement for Programme Delivery (MSc) (PGEE11206)

Course Outline
SchoolSchool of Engineering CollegeCollege of Science and Engineering
Credit level (Normal year taken)SCQF Level 11 (Postgraduate) AvailabilityNot available to visiting students
SCQF Credits10 ECTS Credits5
SummaryContracts and the transaction processes to award them are fundamental in setting the conditions for programmes' success. The course will provide an overview of different forms of contracts and approaches to transaction (e.g. relational contracting) and is generally structured around the UK Infrastructure and Projects Authority's '6 Pillars of Procurement'.
Course description The course considers, from a fundamental perspective, the issue of how clients can realise their required benefits through programme delivery. It will equip students with tools to understand various appetites for risk in different organisations and cultures, ways of setting key stakeholders benefits, users' requirements, the status of supply markets, how to create the interfaces to optimal delivery through effective packaging, how to set incentive structures at various levels and along the supply chain in order to manage the dynamics and complex relationships between various parties involved (e.g. client, sponsors, programme management organisations, government representatives, supplier shareholders etc.).
The course will be taught through a series of practical cases that highlight different approaches to packaging, contracting and transacting in supply markets, in a variety of industries across various cultures.

The course will be delivered using the Infrastructure and Projects Authority '6 Pillars of Procurement'. These six pillars were developed by Martin Rowark from the delivery of the London 2012 and later the Crossrail programme and cover the following specific areas:

Pillar 1 - Understand and Communicate Requirements (Requires the client to be able to communicate with clarity and precision a detailed suit of expected outcomes, breaking it down into the key output requirements for each contract and undertaking.)

Pillar 2 - The Markets
Supply Chain Management provides the ability for a client to fully appreciate the Marketplaces within which it operates and the leverage it has in each.

Pillar 3 - Packaging the Programme
Packaging of a project, programme or undertaking in an optimal way is one of the most critical parts of the procurement process; to create the most effective interfaces with and between suppliers allows a client to manage the risks they are best placed to manage.

Pillar 4 - Contracting
Requires the client to give careful consideration of what risks it wishes to transfer and allocate to the supply chain, each of the generic contracting models from outcomes to inputs (price to cost) should be considered.

Pillar 5 - Routes to Market
The route to market is the last stage of the procurement process before contract award; often referred to as the transaction stage it is characterised by the methodology of down-selection.

Pillar 6 - Benefits Communication
The Benefits Communication Pillar exists as it is recognised that a key obligation when procuring is to demonstrate outcomes, outputs and lessons learnt.

Lecture topics (with key case study source material)

1. The '6 Pillars of Procurement' (IPA Project Initiation Route map). This topic introduces the IPA '6 pillars procurement' and explains how aspects of the approach have been used on major programmes as a method for comparing and contrasting delivery, procurement and commercial models.
2. The quest for Collaboration (Lathan, Egan the NEC to Project, Partnering to Project 13). This topic covers the inception of the collaborative ethos and culture and how the drive for efficiency and effectiveness through the concepts of mutuality, trust and cooperation have affected procurement and commercial delivery models.
3. Supply Chain Analytics and Economics (London 2012, Crossrail and Thameslink). The third topic explains how clients on major programmes have evolved their approach to the primary delivery resource: the supply chain. It also looks at client structures, supply chain economic monitoring and economic benefits during programme delivery.
4. Price to Cost based contracting (Metronet PPP to Magnox PBO to @OneAlliance). This topic focusses on the range of packaging and contracting solutions available to clients delivering major programmes. Using the '6 Pillars' it compares and contrasts solutions and attributes, advantages and challenges of each, with a particular focus on the understanding of risk and its allocation within programme delivery.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Co-requisites
Prohibited Combinations Other requirements None
Course Delivery Information
Not being delivered
Learning Outcomes
On completion of this course, the student will be able to:
  1. Have an informed understanding on the range of procurement and commercial models available for the delivery of major programmes;
  2. Appreciate the advantages and disadvantages of the range of packaging, contracting and transaction models available for major programme delivery;
  3. Evaluate the context of the current UK infrastructure delivery market, the journey towards collaboration and the cultures developed from that pursuit;
  4. Distinguish between supply chain management techniques and understand how to deploy them on a major programme;
  5. Be able to develop a strategic approach to the delivery of programme procurement, deploying UK good practice.
Reading List
- Constructing the Team (Constructing Excellence - Sir Michael Latham 1994)
- Rethinking Construction (Construction Task Force - Sir John Egan 1998)
- ICE Contracts and Procurement Guidance Note (June 2018)
- IPA Project Initiation Route map (Procurement Module)
- Project 13 Commercial Handbook (ICE and Infrastructure Client Group (ICG))
- Programme Procurement in Construction: Learning from London 2012 (John Mead and Steve Gruneberg)
- Crossrail Learning Legacy Papers: 'Crossrail Procurement Delivery' and 'Commercial Aspects for Works Contracts for London's Elizabeth Line'
- Thameslink Programme Learning Legacy (Network Rail) Papers: 'Procurement and Commercial Strategy London Bridge Station'
Additional Information
Graduate Attributes and Skills Not entered
KeywordsProcurement,Contracts,Supply Chain Mgt,Balanced Scorecard,Benefits,Commercial Mgt,Learning Legacy
Course organiserDr Simon Smith
Tel: (0131 6)50 7159
Course secretaryMiss Margaret Robertson
Tel: (0131 6)50 5565
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