Hazrat Ayesha Siddiqa Model Girls College, Nichalson Road, Lahore

COM 101

1. Discuss the development of the buyer/supplier relationship in an increasingly competitive and sophisticated commercial environment.

Consider current and future business trends illustrating your discussion with relevant cases or examples. In your paper include a critical review of contracting/tendering framework and key aspects of the negotiating process in organisation(s) and/or industry sector(s) with which you are familiar. 2. Critically examine the business case and necessary requirements for providing funding for Projects, with specific focus on Special Purpose Vehicle (SPV) Financing of large and complex infrastructure or similar type of projects. 3. Critically evaluate the Breiterfluss case study using the discussion objectives outlined below; see case study below on pages 2, 3 and 4. a) Examine and discuss the Project Financing process including the financial modelling required to support Richmond Bank’s review of the project. b) Provide guidance to Richmond Bank on the financial attractiveness or otherwise of this project explaining the reasons and justification for your advice. c) Provide guidance to the contract team on the key contractual areas to which they should give particular attention both financially and commercially. Use suitable examples/references from the literature or projects with which you are familiar to support your discussion. To achieve a pass grade your paper should demonstrate the learning outcomes:  To develop a critical understanding of a robust business case and managing project budgets.  The project finance process, examining the key aspects of SPVs and likely problems in the process.  Evaluating sustainability aspects that may be necessary in such projects.  To critically evaluate decision making and problem solving strategies and related skills in managing project budgets.  Critically review the procurement and acquisition management processes.  Develop an understanding of the principles of contractual aspects as well as broader legal issues with regard to customer/supplier relationship and negotiations. Breiterfluss Submerged Toll Tunnel Assignment Task You are a member of Richmond Bank’s “Peer Review” Committee, which meets weekly to review loan opportunities before they proceed to formal Credit Committee submission. You are required to: a) Examine and discuss the Project Financing process including the financial modelling required to support Richmond Bank’s review of the project. b) Provide guidance to Richmond Bank on the financial attractiveness or otherwise of this project explaining the reasons and justification for your advice. c) Provide guidance to the contract team on the key contractual areas to which they should give particular attention both financially and commercially. Introduction Commercial budget tool is adopted by construction organisations for analysing the project cost. A budget of the project contains detailed costs of the project before it is expected to be finished. Large construction projects have budgets that have large overheads like labour cost, operating expenses, and cost of procurement of raw materials, etc. Along with the investment cost, the time factor is also an important estimated calculated by the construction company. This assignment focuses on the evaluation of budgeting and commercial viability of Breiterfluss underwater toll tunnel, Germany. This assignment discusses the establishment of buyer-supplier relationship in the construction industry. In addition, the assignment outlines the tendering framework, current and future trends in German construction industry. Finally, the assignment measures the commercial viability and significance of SPV financing in construction of projects. Main Body Supplier- buyer relationship in an advanced and competitive commercial environment An analysis of buyer supplier relationships Many researches have shown that the collaboration of buyer and suppliers is becoming an increasingly significant aspect of gaining competitive edge of the companies over others. Most of the companies deal with a number of suppliers for meeting the increasing demands of the customers. In this case, it has often been observed that their interest clashes, which impacts the buyer & supplier relationship to a great extent. At the present era of business, the buyer & supplier relationship is about working hand in hand together to fulfil interest of both the parties (Verghese, et al., 2019). This co-operation also turns successful in the complex marketplace and reduces issues regarding the quality, operational cost, inventory management etc. It also helps in producing high-quality products and maintain schedule properly. The buyer can get avail the advantage of buying raw materials at fixed pricing, which has been o