Project Procurement Management
There will be several contracts that will be at play when it comes to project procurement. One of the most outstanding contracts will be Time and Material contract. This is based on the fact that there will be a need for product development in that there will be people paid based on the time they spend at the site working on the solar plant as well as the costs of the material they use on the project. This is a crucial contract based on the fact that there are several things both in terms of expertise and in terms of material that will be needed at the site, which may be lacking due to the issue of availability. Those that will be hired to work on the site will be paid based on the materials they used on the site and the amount of time they spend working on the project.
The second type of contract that will be at play will be a fixed-price contract. This type of contract will undoubtedly come at play when it comes to the issue of consultancy. Several experts will be consulted in the course of the project. The contract that they will be given will not be based on the time they serve on the project or the material they use on the project. Still, rather it will be fixed based on the fact that regardless of how long the project takes, they will be there to be consulted on the same from the first day of the project to the last day of the project. The amount is fixed to ensure that in the event, there will be variations due to the cases of project delay, it does not amount to further losses. The cost of servicing the project and maintaining it once its up and running will also be classified under this section. It has to be consistent with the fact that there is no need to be overcharged, yet there can be some understanding on a given fixed price upfront that will be used to ensure that the project is sustainable and the costs involved can be predicted.
The third contract will be the cost-plus contract. In this case, the cost of machinery is a great example. Even though the company that had made the solar panels may have used the amount “X” as its production costs, it is clear that they are likely to add a markup to the production cost for them to get the actual price that they sell the solar panels at. The whole idea of having the costs incurred plus the price margins, which is also applied in selling the solar panels plus the cost of transporting the panels to the site hence the actualization of cost-plus contracts.
On the issue of whether to buy or make, it is evident that the cost of making solar panels will be so high and unsustainable based on the fact that the number of panels needed will be small and, therefore, not able to sustain itself as a business. Before one decides to make the solar panels, there is a need for a sustainability study to prove that one will be able to ensure that there will be necessary resources needed to make the panels, as well as their, will be a market for the excess panels. In this case, all questions related to demand and prices have not been established; hence the idea to make the panels at the expense of buying them will, therefore, be misguided and not in tandem with the facts.
Project quality management
There is a need to establish how the project’s quality will be managed throughout its life cycle. Some of the key components that have to be addressed about this issue include the project deliverable and processes. The quality of the energy that will be able to be derived from the projected will be assessed as part of the project quality assessment to establish that the quality of that energy meets the set standard and expectation. Customer satisfaction will also be assessed to see if the energy is derived from the project can meet customer expectations, thereby bringing about some level of customer satisfaction. This has to be in line with the fact that the energy is clean, stable, and readily available. There will be quality controls to ensure that the deliverable, in this case, solar energy meets the set standards. This is based on the fact that the project of 40 KW should be able to produce a given amount of energy. The quality of the deliverables should be called out if there is a disparity between what is expected with regard to the standard and what is being produced. There is also a need to address the stakeholder expectations so that the project can meet their expectations. There are quality assurance activities that are aimed at proving that the quality of the product in this case energy meets the set standards.
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