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Nasreen Ghanty-Seedat
Executive Summary
Brittania Mining Company authorized Brisbane Management Consultants, Inc. to investigate and conduct a feasibility study in order to select the suitable project methodology for establishing Medical Clinic, which is one of the infrastructure requirements in the UK. Base on the UK Safety and Health Act which states that company located in mining and quarry industries, the manufacturing and construction industry, or nearby London and airport is enforced by occupational safety and health authorities, are obliged to provide medical and health care services. Hence, Brittania Mining Company decides to empower the Development and Preparatory office to publicly tender to bid on the project with a view to providing specific health management and services. However, Brittania Mining Company now is devoted to developing nickel business as a core business. Therefore, establishing infrastructure of medical clinic is their non-core business, but inevitable. Consequently, outsourcing to the third party whose professional in medical health care would be the best choice, for saving cost and time are also critically important. Most common type of contracts are fixed-price contract and cost-plus contract, however costplus contract does not fit in the application and frame of contract conditions. After compared with other fixed-priced contract, we select Fixed-Price Economic Price Adjustment contract, because the market prices at risk are severable and significant. The risk stems from industrywide contingencies beyond the contractor's control. Due to UK government allowed Brittania Mining Company to have the concession on develop mining for 25 years, according to the long term schedule; we have to consider there will have underlying price fluctuation in economic market. The adjustment may minimise the loss for contractor then it will not affect the performance and services of the medical clinic.
for
Brittania
Mine
Its imperative to be concerned about the health and safety issue at coal mining site where it could be the most dangerous workplace in the world. In addition, on-site medical centers will be a critical must for miners. Throughout the mining history, there were numerous fatal incidents, mostly involved seriously fire-related explosion. The worst disaster in mining history occurred on 26 April, 1942, when 1,549 miners lost their lives in a coal-dust explosion at Benxihu Colliery in Benxi, Liaoning, China. Even nowadays mining sites with improved protective tech-devices and advance emergency response plans, tragedies still happen: a serial of explosions killed 29 people in the Pike River Mine disaster that began on 19 November 2010 at Pike River Mine in New Zealands South Island. Moreover, it is worth noting that worksite healthcare seems to be a growing trend according to the surveys from Towers Watson (2012), a global professional services company, which reveals employers now place more emphasis on occupational wellness. For example, Tower Watson (2012) also estimates that, in U.S., there is $11,507 per employee health care costs in 2013, an increase of 5.3% from 2012. With regard to mining sites, miners are easily subject to a number of potential health hazards encountered in their normal daily work, such as noise, whole body vibration (WBV), UV sunlight, dust, working on uneven ground, heavily manual handling, extreme heat/thermal stress, musculoskeletal disorders, polymeric chemicals exposure, and even radiation threat, all likely resulting in adverse health effects. The health hazards to miners may be invisible, progressive in some cases and not realized until the cognitive damage causes long-term impairment. Overall, it is of great significance for government or firms to offer welldeveloped on-site medical and pharmacies services for sake of miners, who confront more potential risks and deserved more medical care.
1.3 Specifications
The medical clinic will located next to mine staff accommodation building with maximum capacity 1600 persons, Besides this, the medical clinic is a three floor building including medical facilities, administrative office and emergency room, in order to provide basic and good quality health care for our mine staff and local people. In addition, UK government allowed Brittania Mining Company to have the concession on develops mining for 25 years, according to BOT contract between public and private sector. Hence, based on the long term schedule, we might consider the potential price fluctuation in market. This important factor needs to take into account when selecting contract type. Applying Dombkins WHOW matrix, establishing medical clinic can be classify to a Type A project, for it has clear objective without uncertainty for how to achieve. Since the project concept and design are not focused on innovation, but rather on detailed design and coordination (Dombkins 1997). Therefore, the development and delivery model would use waterfall, for it is a sequential design as well as plan process
According to the UK Labour Safety and Health Act: Company located in mining and quarry industries, the manufacturing and construction industry, or nearby London and airport is
enforced by occupational safety and health authorities, are obliged to provide medical and health care services by establishing on-site medical clinic. Therefore, Brittania Mining Company decides to authorize the Development and Preparatory office to publicly tender to bid on the project with a view to providing specific health management and services.
Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Level 9 Level 10 Total
2 4 8 12 2 1 2 10 2 44
Managers Senior professionals Para medical staff Nurses Shift supervisor Supervisors Senior Lab Operator Administration Staff Trainee
Award based Annual Cost Category Amount () Shift Operator 154344 161620 Maintenance 154344 continuous roster continuous roster continuous roster Blast Crew Equipment Operator Fleet Maintenance Each Description Application
2.4 Timescale
The current position of the project is focus on planning and analyze contract and project phase, critical factors such as cost and schedule is very important. The construction work of medical clinic will authorize awarded bidder of accommodation building to build. Once it start execute building, next step could begin to prepare publish a notice to publication, estimate procedures time length is six months, then the next 1.5 year to prepare and establish the medical clinic, including recruiting staff ,ordering and prepare medical facilities.
assumes the manufacturer has the skills, techniques and equipment, access to materials, and the ability to meet the product standards. An association who decides to make instead of purchase might at danger of losing elective sources and design flexibility. As a project advisor may furnish a project get ready for the project that offers direction in settling on these choices. There are numerous contemplations needs to consider when choosing whether or not to buy, and these contemplations will shift crosswise over organizations and projects, and as time passes. Dealer's cost is regularly a crux attention. Then again, if there is presently the level of in-house finesse for the work that ought to be finished and the time project allies have accessible are additionally essential to recognize. However, Brittania Mining Company is primarily in developing nickel business as a core business. The goal is to become the largest nickel miners in UK, and refined nickel producer and a global supplier of nickel to the stainless steel industry. Therefore, establishing infrastructure of medical clinic is our non-core business, but it is essential. Due to medical services needs cover attending physicians and healthcare professionals, across the entire medical facility, from the latest technology and life-saving procedures, whilst medical clinic on-site delivers industry-leading advanced medical care in specialties and services. In order to save time and cost, meanwhile maintain medical quality, buy decision should be made in this case. Stakeholder Analysis: Active stakeholders in the mining industry are comprised of organizations aiming to support either in cash or in kind and are usually categorized into commercial and non-commercial ones (IIED 2001). Commercial stakeholders are like mining and minerals companies, industrial users of mined products, trade associations of the mining industry, and some private companies whose principal business is not necessarily in mining but who have an interest in investing the project. On the other hand, non-commercial stakeholders refer to international organizations such as UN, financial institutions, foundations, research councils and universities. No matter what kind of stakeholders they are all entitled to engage in some assistance for project, namely providing guidance, information, and contacts and working with others to assist the global transition to sustainable development. Therefore, understanding that every business has a wide variety of stakeholder groups with conflicting interests, for different stakeholders have different levels of power as well as they
operate through a range of pressure groups. In a word, businesses are also responsible to a range of stakeholders with often differing and conflicting aims. For example, our project to establish medical clinic might identified the following stakeholders: Stakeholder Group A. UK Government Shareholders To maximize profits of the business. To dividend and the value of shares. B. Triple N Nickel Objectives of Stakeholders Target Group
Company C. Double Company D. Lending Bank E. Mine Staffs F. Medical Staffs G. Medical Clinic Clinic G Gold
Employees
To
maximise
salaries
and
job
security
Customers
H. Mine Staffs I. Local Populaces J. Aerodrome Staffs K. Medical Manufacturers L. Medical Vendor
profits/ services To maximise price for the materials Manufacturers that supply to the medical
manufacturers
By using Power/ Interest Grid could identify the potential impact or support with each stakeholder through the whole project. (Refer to Appendix 1.0) Relationship Analysis: Selecting the right customer and/ or supplier partner as well as understanding the relationship types is essential in the partnering process. Moreover, Tony and Jock (2004) states that the value propositions and key objectives need to be delivered to ensure the
business/organization strategies are achieved. Therefore, evaluating partner and select is right thing to do in the first place.
Due to successful partnering relationship bring out positive influence, no matter increasing the profit growth and proactive sustainable development. In other words, poor partnering relationship will consequently lead to time and resource consuming and any other bad factors to affect the project. Relationship Management Matrix (Refer to appendix 2.0) has been mapped out to identify the current relationship between future Medical clinic and Brittania Mining Company. Contract Analysis: The main procedures of contract analysis are as followings: firstly to understand and identify the associated elements of a contract, namely offer, acceptance, intention to create legal relations, and consideration. Secondly, analyze the responsibilities that the contract brings regarding to products, services, communications, financial and information flows and necessary for supply and demand chains in related industry. Moreover, the third procedure, which might be the most difficult one, refers to asset specificities, strategic alternative uses and risk analysis. Specifically, as far as asset specificities are concerned, there are analyses according to physical, technological, human, marketing investments, as well as time and locational conditions (Bello & Lohtia 1995; Klein et al. 1990; Kozak & Cohen 1997; Neves, 1999). In addition, it is imperative to progress analyses such like potential risks, contractual warranty, monitoring activities, companys ability, possibility of observation, and cost, which is followed by analysis of possible sources of power - to build an analysis involving the company and the contract partner. Last but not least, it is indispensable to extend analyses of contract improvements /suggestions and institutional considerations. Construction Agency Coordination Committee (2005) describes that the contract system selection may occur at the same time, but could occur or be confirmed later and progressively as the project is clarified. Fixed Price Contracts: In this case, we are going to focus on comparison types of Fixed-Price Contracts. The various types of fixed-price contracts, described in Table 2, provide contractor to have a specified price for supplying certain products or services to any buyers. (Manuel 2010).
5. Once the prices of original materials and goods fluctuate during the period of the Firm Fixed Price contract, there might be inferior services and products on the grounds that the excess expenditure which needs absorbed by the clinic itself or defected raw materials are offered by suppliers.
Conclusion
1. Brittania Mining Company will set up on-site medical clinic at the miners dormitory which will be able to accommodate 1600 employees. Therefore, the project of design and construction of medical clinic will tender to the same contractor who used to build the dormitory so as to saving time and cost eliminating extra tender procedure for construction of medical clinic. 2. This medical clinic contract is between private sectors, on the other hand, Brittania Mining Company regards the mining development is a BOT contract case with government, until the 25-year business time due, then the concession ownership will be returned to the government. 3. Brittania Mining Company is a professional mining company which specializes in coal mining and associated production rather than building a medical clinic, so Brittania Company chose to tender contractors with a view to avoiding costs of waste in trail-and-error time. 4. Consequently, the medical clinic is self-sufficiency, which gains revenues after rental payments. The advantage of this business model is saving costs in building medical clinic initially and having stable operating incomes from patients like miners.
However, it will eventually at the risk of loss management ownership in the foreseeing future. 5. As far as local development is concerned, mining industry is attributed to a BOT case without any financial aid from government who only offers concession to Brittania Mining Company with land management right. From the respective government, mining sectors can contribute to tax revenue without increasing government budget. Furthermore, the government can raise profits from re-tendering the new operator for the medical clinic after the 25-year business timeframe.
Reference
Albano, G, Calzolari, G, Dini, F, Iossa, E & Spagnolo, G 2008, CHAPTER 4 Project Contracting Strategies, Universit di Bologna, Bologna, Italy, viewed 23 June, 2013 from: <http://www.dse.unibo.it/DSE/default.htm>. Bello, C & Lohtia, R 1995, 'Export Channel Design: The Use of Foreign Distributors and Agents', Journal of Academy of Marketing Science, vol. 23, no. 2, pp. 83-93. Centre for Sustainability in Mining and Industry (CSMI) 2010, Good Practice Note Public Infrastructure and Mining, University of the Witwatersrand, viewed 24 June, 2013 < http://www.eisourcebook.org>. Construction Agency Coordination Committee (CACC) 2005, Project Methodology Guidelines for Construction, New South Wales Government, Sydney, viewed 24 June, 2013 <http://www.construction.nsw.gov.au>. Derek, W & Rowlinson, M 2008, Project systems: a cross-industry project management perspective, Taylor & Francis, London, UK. Dombkins, D 1997, The Management of Complex Projects and Programs, PROJAM, viewed 24 June, 2013 <http://www.scribd.com/doc/92659179/Dombkins-WHOW-Model>. Duncan, R 1996, A Guide to the Project Management Body of Knowledge, Project Risk Management, Upper Darby.
Ebner, D & Baumgartner, R 2006, The relationship between Sustainable Development and Corporate Social Responsibility, Corporate Responsibility Research Conference, Dublin, viewed 8 October 2012, < http://www.crrconference.org/>. Klein, S, Frazier, L & Roth, J 1990, 'A Transactional Cost Analysis Model of Channel Integration in International Markets', Journal of Marketing Research, vol. 27, pp. 196-208. Kozak, A & Cohen, H 1997, 'Distributor-Supplier Partnering Relationships: A Case in Trust', Journal of Business Research, vol. 39, pp. 33-38. Manuel, K 2010, Contract Types: An Overview of the Legal Requirements and Issues, Congressional Research Service, Washington, viewed 24 June, 2013
<http://www.fas.org/index.html>. Mhay, S & Coburn, C 2012, Request for...Project Processes (RFT RFQ RFP RFI), Corporate Responsibility Research Conference, Illinois, viewed 23 June 2013, <
http://www.negotiations.com/articles/project-terms/>. Neves, F. 1999, Um Modelo para Planejamento de Canais de Distribuio no Setor de Alimentos (A Model for Distribution Channels Planning for the Food Industry), Ph.D. thesis, University of So Paulo. The Gio Project 2010, Four Types of Tendering Procedures, Cornbrook Enterprise Centre, Manchester, viewed 8 October 2012, < http://www.gioproject.org.uk>. Tony, L & Jock, M 2004, The strategic partnering pocketbook : building strategic partnerships and alliances, McGraw-Hill, Sydney.
Stakeholder Group
Objectives of Stakeholders
Target Group
A. UK Government Shareholders To maximize profits of the business. To dividend and the value of shares. B. Triple N Nickel
Company C. Double Company D. Lending Bank E. Mine Staffs F. Medical Staffs G. Medical Clinic Clinic G Gold
Employees
To
maximize
salaries
and
job
security
Customers
H. Mine Staffs I. Local Populaces J. Aerodrome Staffs K. Medical Manufacturers L. Medical Vendor
profits/ services To maximize price for the materials Manufacturers that supply to the medical
manufacturers
D H
B C G A
I J
E F K
How to
Pa
Relationship type