Procurement planning in oil refining industries considering blending operations

This paper addresses procurement planning in oil refining, which has until now only had limited attention in the literature. We introduce a mixed integer nonlinear programming (MINLP) model and develop a novel two-stage solution approach, which aims at computational efficiency while addressing the problems due to discrepancies between a non-linear and a linearized formulation. The proposed model covers realistic settings by allowing the blending of crude oil in storage tanks, by modeling storage tanks and relevant processing units individually, and by handling more crude oil types and quality parameters than in previous literature. The developed approach is tested using historical data from Statoil A/S as well as through a comprehensive numerical analysis. The approach generates a feasible procurement plan within acceptable computation time, is able to quickly adjust an existing plan to take advantage of individual procurement opportunities, and can be used within a rolling time horizon scheme.     

Key considerations for developing corporate and operational approaches for managing the small building works portfolio of large client organizations

Many large organizations, which act in the capacity of clients to the construction industry, own and occupy extensive, diverse and often geographically dispersed property estates. To maintain their upkeep and use, these estates often require very considerable annual expenditure on maintenance, alterations, refurbishment and small-scale new building works. Activities encompassing these types form the category of small building works, a sub-sector of the construction industry which amounts to around £9 billion, or 20%, of annual UK total construction output. The effective management of small building works in the context of any organization with large property holdings is essential, as better management of the small building works portfolio can contribute significantly to the business of the organization. This paper contributes new data and adds to the synthesis of findings from research studies into small works, supported by governmental and industry sources and conducted over a 10-year period. It aims to assist in the development of corporate and operational approaches for managing the small building works portfolio of large organizations by highlighting key considerations. These are linked to a dynamic control cycle, or system, to assist organizations in implementing practice based on the considerations made.     

Assessment of the factors influencing the maintenance programme of a large university building in Riyadh

The amount of money invested in the building industry in the last two decades in Saudi Arabia is about SR 1251 ($234) billion. The result is a stock of large projects in housing, hospitals, universities (seven in number) etc. These buildings require efficient maintenance programmes to enable them to be serviced properly. Such programmes are handicapped by a number of interrelated factors. Such factors, like the harsh climatic conditions, presence of chlorides and sulphates in soil and water, contracting systems and lack of codes and building standards, have varied influences in maintenance. This paper, attempts to examine these factors through an analysis of the maintenance programmes of a university campus building in Riyadh.     

How does Government Procurement Law affect bidding price competition in Taiwan?

To conform with the requirements of the international Government Procurement Agreement and the regulations of the World Trade Organization, the Taiwan Government Procurement Law (GPL) was enacted in 1999. The main points of the agreement and barriers affecting price competition are illustrated. Award prices for subcentral government civil engineering projects are compared before and after the law went into effect. The result suggests that civil engineering prices have decreased significantly since the introduction of the law, that the transparent and open-tendering system enforced by the law has led to an increase in competition, and that tender prices decreased during the initial period. During the same period, construction companies' average rate of profit on sales moved from positive to negative. It is concluded that severe bidding competition is expected after Taiwan completes accession to the agreement.     

Energy conservation regulations: Impacts on design and procurement of low energy buildings

To reduce the substantial contribution of the built environment to energy consumption and carbon dioxide emissions, the new ‘Part L: Conservation of Fuel and Power’ of the Building Regulations for England and Wales came into force in April, 2006. As a result, the design of all new-build and refurbished buildings must comply with ‘Target Carbon Emissions Rates’. Apart from the purely practical implications of compliance, the new Part L has prompted interesting questions concerning procurement and the impact on design and construction teams.     

Procuring open systems

The objective of this two part presentation by CCTA is to illustrate the problems faced today by purchasers who wish to consider products which comply with Standards for Open Systems Interconnection (OSI) - that is, IT products having the capability to communicate and interwork with each other, irrespective of manufacturer, through OSI technology. In particular, the aim is to show that the OSI Standards as published so far do not meet the needs of the average purchaser and meanwhile only the most sophisticated of organisations have the technical ability to “procure open systems” successfully.

The Central Computer and Telecommunications Agency (CCTA) is a part of HM Treasury. It is responsible for helping UK government departments with the development and use of information technology (IT) concentrating on matters of strategic concern and on services which are best handled centrally; it currently handles procurements of goods and services worth approximately 250 million pounds sterling per annum. In October 1984, CCTA issued a Statement of Intent concerning OSI on behalf of central government departments.     

The Asset Procurement and Operating Partnership system (APOPS) for prisons in South Africa

The global shift from public to private financing of infrastructure development has led to a search for alternative and innovative procurement techniques. A public–private partnership is one innovative procurement strategy for infrastructure development. When the process described in this paper was initially developed, public-private partnerships for infrastructure delivery was a new concept in South Africa. The Department of Public Works (DPW), South Africa, developed the framework for Asset Procurement and Operating Partnership System (APOPS). As with other private finance initiatives, APOPS aimed to reduce governments’ capital requirements, yet maintain the clear accountability of state ownership and embrace the capital efficiency savings and creativity of private enterprise. This paper provides a case study of the implementation of the APOPS process. Specifically, the paper examines the project management procedures and the difficulties faced in procuring infrastructure using public–private partnership in a developing country.     

Procurement Effects on Coopetition in Client-Contractor Relationships

Client-contractor relationships are often criticized for being competitive and adversarial, rather than cooperative. The main purpose of this paper is to examine how construction clients’ procurement procedures affect the balance between cooperation and competition (i.e., coopetition) in client-contractor relationships. The empirical results, based on a survey to 87 Swedish construction clients, show that clients’ procurement procedures facilitate a focus on competition. It was also found that clients’ earlier experience of a certain procedure heavily affects their procurement choices, thereby preserving old behaviors. Although two-thirds of the clients wish to increase cooperation with contractors, this does not affect their procurement decisions. This study therefore concludes that the theoretical framework, based on transaction cost economics, is correct in prescribing more cooperation than is empirically observed in the construction sector. The theoretical framework can increase clients’ awareness of how procurement affects cooperation and competition, thereby serving as a basis for more unbiased and systematic procurement decisions, facilitating cooperation-based coopetition.     

Relational Contracting and Teambuilding: Assessing Potential Contractual and Noncontractual Incentives

Integration in construction projects implies alignment of both structural arrangements and operational mechanisms, in order to effectively coordinate and streamline the combined efforts of various interacting parties, for improved project outcomes. Appropriate use of relational contracting (RC) principles may help achieve such integration. As such, the aims of the reported study are to examine the relative usefulness of various potential strategies and factors, to provide suitable contractual and noncontractual incentives, for building a RC culture, and nurturing effective teamwork in construction. Results from statistical analyses of 83 questionnaire responses from Hong Kong are presented. These results attribute various degrees of importance to different factors and strategies, both for RC and teamworking. The outcomes also suggest the need for a highly interactive and consolidated approach, both for propagating RC and building integrated project teams. It is observed that trust and trust based operational and contractual arrangements can effectively provide the required incentives, for implementing various RC-based working arrangements in construction. These should extend to assessing “relational” attributes during team selection, under cliental initiative and top management support. Outcomes of this study are expected to benefit both industry practitioners and researchers, in exploring, designing, and implementing suitable RC-based working arrangements.