Improving risk management strategy in public procurement and supply chain of PWD

Abstract

Supply chain is the major term in an organisation that includes the delivery of raw materials from supplier to manufacturer and the path of finished product to reach from manufacturer to the end user. In every steps of supply chain there is a probability of numerous kinds of risks (both internal and external). The main theme of this report is to find out the major risks on procurement and supply chain process of Public Works department. The main method of generating findings and results is questionnaire survey. For questionnaire survey 28 questions were prepared and 21 respondents who are working in different offices (from Assistant Engineer to Executive Engineer) answered the questions. Major findings from this survey is that during the tender preparation stage pre-bid meetings time for mitigating the ambiguity of tender proposal, timely payment can reduce time and cost overrun. Insurance coverage can transfer the risk from the contractors to the insurance company, auditing of payment should be done properly. Major recommendations from this report that should be implemented by the key personnel of PWD is that feasibility study must be done for analysing the risks, proper risk management plan must be generated prior to commence of a project, insurance must be ensured as per PCC of the contracts, structural and architectural drawings must be provided on time during construction phase, market should be properly analysed for mitigating cost overrun and every project office must maintain risk register from beginning to the end of project. It is expected that this report will help to improve the risk management strategies and efficiency to overcome external and internal risks of Public Works Department.