Procurement Strategies For The London 2012 Olympics

Published Date: 02 Nov 2017

The London Olympic 2012 bid winner of the bidding has been announced on 6th of July, 2005. The schedule date for the London 2012 Olympic Games from 17th July to 12th of August 2012. There are seven years period to build every program to make Olympic set to host about 205 countries to take part in 300 happenings.

In 2006, the Authority has been established to take care of and Deliver the project to the reality, knows by the ODA acted as the owner of the project, to be in charge for the construction main buildings and infrastructure as below with estimated budget of �9.28 billion.

1. The Olympic Park

2. The Olympic Village

3. The new Lee Valley White Water Centre

4. Eton Dorney Venue

5. Weymouth and Portland Venue

3. PROGRAMME PROGRESS FOR OLYMPIC 2012 GAME

3.1 DESIGN STAGE

For the period of groundwork of the Olympic Park site, the designs for other sites already started. Unique design strategy was essential by the ODA to be appropriate period for the greatest event.

The ODA examined and applied extensive range of consultation with many local groups and many program investors in order to reflect some themes on the design, like accessibility, sustainability, security, confidence and health & safety whole to society areas.

The Master-Plan originally accepted in 2004 for the main sites for the some sites and the borders of the park. Then the Master-Plan has been revised in 2006 to reduce the Olympic Park size.

3.2 PLANNING STAGE

The important constraint of the Project critical Planning strategy is to accomplish the construction program on unalterable end date. That�s make the ODA concentration on bringing the project on time and on budget.

The overall time schedule for the ODA�s program as below figure 01

Figure 01 � ODA Overall time schedule

Source: http://www.sel.org.uk/uploads/ODA-Procurement-Policy-Full-Document.pdf

The building planning program faced three main encounters.

1. Completing the construction program on time.

2. The major interdependencies over 70 separate projects within the 2012 Olympic Games

3. The various stakeholders that influencing the programme.

3.3 CONSTRUCTION STAGE

To building the Site platforms, Stadiums, Transportation & Infrastructure was needed to 40,000 Construction Workers to make that come real.

On the park, the first construction gain permission was the Olympic Stadium, and then followed by the Aquatics Centre.

For the off the Park, work building work had begun six months earlier on the improvements at Weymouth and Portland.

On the following year, construction started entirely on the additional sporting venues, as well as the Olympic Village and non-sporting venues.

When the 1st year went since the big build the foundations of the Olympic Stadium and Aquatics Centre has been complete and the progress on going for the other venues

The construction started for the other venues in the Park and most of the plots of the Olympic Village. While the developments to Weymouth and Portland completed, and was the first venue to be prepared for use.

After the 2nd year of the big build, the Olympic Park had been renovated, and erections of the structure works of the venues has been completed and the improvements at Eton Dorney finished

At the last year of the big build the building of all venues has been accomplished, and ready to hand over for test the events.

The Velodrome accomplished in Feb. 2011. The new Main Substation has been done and the all infrastructure operative, distributineing constructed.

3.4 MAIN CONSTRUCTION FOR THE GAMES OLYMPIC GAMME

ODA has set out in advance the milestones on over the past two years it has planned to reach for various stages of the project.

The milestone of the project as listed below;

Milestone � 1

Construction of the Olympic Stadium

Construction of the Aquatics Centre

Construction of the Velodrome

Construction of the International Broadcast Centre/Main Press Centre

Construction of the Handball and Basketball Arenas

Construction of the Lee Valley White Water Centre

Construction work on Eton Manor and Royal Artillery Barracks

The external structure of the Olympic Village

Construction of all permanent bridges

Construction work at Stratford Regional Station

Source: DCMS_GOE_Annual_Report_2011

CHAPTER � 02

1. VARIOUS ORGANIZATION INVOLVED

The Olympic Board Steering Group includes of senior officials of the five key Project Stakeholders as follows;

1. The Olympic Delivery Authority

2. The London Organizing Committee of the Olympics Games

3. The Greater London Authority

4. British Olympic Association

5. The Government (MPA, 2006)

2. KEY ACTIVITIES AND INVOLVEMENT ORGANIZATION.

The figure 02 shows the 2012 Olympic programme key activities and involvement organizations.

Figure 02 � London 2012 Olympic programme

Source: http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubacc/526/526.pdf

3. OTHER ORGANISATION INVOLVED.

3.1 All of the following stakeholders were involved on the 2012 Olympic Games (Refer to Appendix � A)

3.2 There are many firms (Supply chain) as well have been involved (Refer to Appendix � A)

3.3 Also there are some firms involved as construction products suppliers (Refer to Appendix � A)

3.4 And there are some Organizations supported the process of in importing resources, expatriates, and business support services (Refer to Appendix � A)

CHAPTER � 03

1. FINANCING STRUCTURE FOR OLYMPIC 2012

The �11.3billion needed for London 2012 came from �9.3billion of public sector funding and two billion from the LOC of the Olympic and Paralympic Games or LOCOG.

1.1 THE OVERALL VIEW OF THE LONDON 2012 COST

The overall view of the London 2012 program cost stated in the below mentioned table 01 as follows;

Table 01 � The overall view of the London 2012 cost

Source: DCMS_GOE_Quarterly_Report_Q3

1.2 SOURCES OF FUNDING

Funding from: �m

Lottery 2.175 23% Lottery London (GLA and LDA) 0.875 10% London (GLA and LDA)

Central Government 6.248 67% Central Government

Total 9.298

1.3 ODA ANTICIPATED FINAL COST

The ODA Anticipated Final Cost (AFC) breakdown as shows on the below stated table 02

Table 02 � ODA Anticipated Final Cost

Source: DCMS_GOE_Quarterly_Report_Q3

1.4 FINAL COST

The London 2012 building final cost �8.921billion, its mean the �377 million under the budget

Source: DCMS_GOE_Quarterly_Report_Q3

CHAPTER � 04

1. PROJECT PROCUREMENT STRUCTURE

The specific new construction of Olympic stadium, the project leadership has been established, and then the procurement method will be accepted, to the main procurement strategy pathway of Traditional method, the method is complete Architect control over design and construction of London 2012 Olympic Game.

1.1 ANALYSIS OF PROCUREMENT PROCESS FOR LONDON 2012 OLYMPIC

The ODA Started Procurement Policy that specified the Best Quality and Value for Money for Procuring Contracts for London 2012 Olympic and Infrastructural Development (WLB, 2006b). The ODA selects a modest method to procure an integrated Design & Build Contract terms for the Construction, Completion, Maintenance, Testing and Licensing of 2012 Olympic Game (Creative Match, 2006)

Figure 03 � Assessment of best value

Source: http://www.sel.org.uk/uploads/ODA-Procurement-Policy-Full-Document.pdf

1.2 PACKAGING STRATEGY

ODA used the fundamental of Packaging strategy, as procurement strategy, this simplifying the procurement requirements into packages to be put to the market and will assist to build as shown on figure 04

Figure 04 � Packaging Strategy

Source: http://www.icevirtuallibrary.com/content/article/10.1680/cien.2011.164.5.34

Implementing this system has make supply chains grows the potential, all several of suppliers from many categories registered on the system, it�s about 100,000 suppliers. All has submitted via the system there

* Profile

* Expertise

* Quality management statement

* Health and safety policy

* Insurance levels

* Financial history

Due to the extensive number of contracts, ODA applied the multi-tiered supply chain, by making

* ODA contracts directly with the first tier contractors

* The First tier contractors contract with tier two,

* The tier two contracts with tier three, .etc.

CHAPTER � 05

1. MAIN FORMS OF CONSTRUCTION CONTRACT

The ODA anticipated that the full The New Engineering Contract (NEC) revision number 3, NEC3, will comply for the �9.3 billion 2012 Olympic Games program.

2. THE NEC3 CONTRACTS

The NEC3 contracts used by ODA as stated in table 03

Table 03 � NEC3 Contract and Option

Source: http://www.icevirtuallibrary.com/content/article/10.1680/cien.2011.164.5.34

The NEC3 suite of contracts was selected because it provided the following key attributes in response to ODA�s requirements.

* A flexible approach, providing a range of contract solutions relative to the level of design information available and the procurement option being considered.

* The pro-active management of risk as an inherent and fundamental element of the entire contract forms.

* Take suitable additional assurances to protect contract delivery, such as parent company guarantees or vesting certificates

* Establish alternative supply arrangements.

3. ELECTRONIC TENDERING

The ODA depended on the Electronic Tendering and saved much operational. The using of web based technology for tendering increased the level of organisations interaction and respond.

The following figure 05 shows the e-Tendering / e-procurement Process Chart

Figure 05 � e-Tendering Process

Source: http://www.sel.org.uk/uploads/ODA-Procurement-Policy-Full-Document.pdf

CHAPTER � 06

1. CONSTRUCTION TECHNOLOGY CHALLENGES

By considering that the 2012 Olympic Games as the one of Europe�s biggest-ever construction program, this enhance the pressure on delivery the program on time.

2. CHALLENGES ENCOUNTERED

The most challenges encountered the construction technologies as listed below

CHAPTER � 07

1. HEALTH AND SAFETY ACHIEVEMENT

The Olympic Park workforce at 12, 000 and a total of 30, 000 persons will have functioned on the development. Over careful planning, implementation of schemes with a supported line record and clear control.

2. PROGRAMME OVERVIEW

The health and safety programme is governed by the ODA board and through its executive and delivery partner CLM through to the supply chain as shows figure 06

Figure 06 � The London 2012 health, safety and environment programme

Source: http://www.icevirtuallibrary.com/content/article/10.1680/cien.2011.164.5.46

3. ODA�S HEALTH AND SAFETY SYSTEM

The components of ODA�s health and safety system as follows table 04

Table 04 � The London 2012 health, safety and environment programme

Source: http://www.icevirtuallibrary.com/content/article/10.1680/cien.2011.164.5.46

The Tier One contractors were expected to use their own Health and Safety Environment systems and so were their suppliers

Figure 07 � The Details of the London 2012 management structure

Source: http://learninglegacy.london2012.com/documents/pdfs/health-and-safety

The assurance team identified HS&E priorities three months ahead of the work. This was achieved through the following figure 08 & 09

Figure 08 � Regulation of HS&E performance

Source: http://learninglegacy.london2012.com/documents/pdfs/health-and-safety

Figure 09 � The HS&E processes described in this overview

Source: http://learninglegacy.london2012.com/documents/pdfs/health-and-safety

CHAPTER � 08

1. CONCLUSION