Management: Highway Project Of Apic Consult By Sydney Motorway Network (Coursework Sample)

HIGHWAY PROJECT OF APIC CONSULT BY SYDNEY MOTORWAY NETWORK Table of Contents TOC \o "1-3" \h \z \u Background of the information PAGEREF _Toc520767312 \h 3Project management process PAGEREF _Toc520767313 \h 3Project delivery method PAGEREF _Toc520767314 \h 3Financial contract type PAGEREF _Toc520767315 \h 5Best procurement method PAGEREF _Toc520767316 \h 7Risk management plan PAGEREF _Toc520767317 \h 9Risk register PAGEREF _Toc520767318 \h 9Risk Quadrant analysis PAGEREF _Toc520767319 \h 11Risk mitigation plan PAGEREF _Toc520767320 \h 11Quality management plan PAGEREF _Toc520767321 \h 12Conclusion PAGEREF _Toc520767322 \h 13Reference List PAGEREF _Toc520767323 \h 14 Background of the information This study focuses on the highway project of the existing Sydney motorway network that contains M5, M5 East and M4 Motorway collectively. The target organization in this project is APIC consultant that allows Government and private agencies to get any contract based on their capabilities. It is found that the Sydney Motorway Network deals with the high rate of traffic on weekdays and peak hour. Due to a heavy concentration of traffic in this area, the Australian Government has decided to enhance the infrastructure by broadening the M4 Motorway from Church Street to Homebush Bay Drive. Therefore, this construction project is delivered to the WestLINK, a joint venture organization of JPM Co, TOP Construction and KLG Solution. Henceforth, this study highlights on the proper delivery method, financial contract type and appropriate procurement method for this project. Project management process Project management process can be considered as the best practice that helps an organization to achieve goals significantly. Focusing on this case, the significance of a proper project management process can be viewed from a monetary perspective. It is observed that this large project needs to complete within 2023 by securing the allocated budget of the Government. Therefore, proper delivery method, financial contract type and appropriate procurement method need to be applied for enhancing the project management process. Project delivery method Three kinds of project delivery methods can be applied by a project manager in a highway construction project. These are: * Design-Bid-Build method * Design-Build * CMAR An evaluation matrix has been developed to select the proper project delivery method: Criteria Weightage Project Delivery Systems Design-Bid-Build Design-Build CMAR Score Weightage Score Weightage Score Weightage Time 20 2 40 4 80 3 60 Budget 45 1 45 5 225 4 180 Quality 25 3 75 3 225 3 75 Communication 20 2 40 3 120 2 40 Value 100 200 650 355 Table 1: Evaluation Matrix of proper project delivery method (Source: Created by Author) From the developed evaluation matrix, it can be said that the Design-Build method might be the proper project delivery method in this context. According to Chen et al. (2015), the Design-Build method is highly reputed in developed countries due to the flexibility of cost and superior time performance. Besides this, some researchers have identified Integrated Project Delivery (IPD) project delivery system as another useful technique for project delivery. However, DB has been observed as a traditional delivery system that influences time and cost significantly. On another hand, Ogunsanmi (2016), identified multiple risk sources that are associated with this project delivery method. This cited work further reflects on the slowness of traditional project delivery method and opines the significance of DB in the construction industry. Furthermore, a creation of a single point responsibility has also identified as another significant characteristic of this project delivery method. Therefore, considering this project delivery method, WestLINK will be able to develop a better relationship with the clients and revenues will also get increased. This conversion of interests has allowed constructors to access this project delivery method globally. However, some issues with this delivery method can also be found. According to El Asmar, Hanna & Loh (2013), a contractor under the DB project delivery method experiences more issues than other procedures. Therefore, risks can be cited from the start to the end of this project significantly. From the evaluation matrix, it is observed that other project delivery methods are not as much as effective as the DB method. The D-B-D process influences budget factors, whereas communication issue can be found in case of the CMAR delivery method. Besides these, the DB method has been able to score high in all aspects of the evaluation matrix and can be suggested as the best delivery method to be implemented in this M4 Motorway project. Financial contract type In order to evaluate the appropriate financial contract type for broadening the M4 Motorway project, following evaluation matrix has been developed: Criteria Weightage Project Delivery Systems Lump Sum Contract Guaranteed Maximum Price contract Cost-plus Fixed Fee Contract Score Weightage Score Weightage Score Weightage Cost Uncertainty 30 1 30 2 60 3 90 Uncertainty of Scope 32 1 32 2 64 4 128 Process uncertainty 22 2 44 3 66 3 66 Value for money 9 4 36 3 27 1 9 Contractual difficulties 7 2 14 3 21 3 21 Value 100 156 238 314 Table 3: Evaluation Matrix of Financial Contract Type (Source: Created by Author) Form the evaluation matrix, it can be said that the Lump Sum Contract will be better for this project because it has scored low on cost uncertainty, an uncertainty of scope and contractual difficulties. On another hand, other contracts should be avoided during this project. In a Lump sum Contract, the contractor takes massive risks regarding the cost of the project. It is found that this method is effective for obtaining a proper value for the money in a project (Antoniou et al. 2012). Cost plus fixed fee contract has been eliminated because it has adverse effects on the contractor’s profitability. However, GMPs are applicable to “open books” contracts, as a proper assessment of the market cap can be done before. It is also found that the availability on GMP is highly dependent on the status of the project plans. Therefore, it is recommended to select this financial contract by considering the current contingency in the market (Slowey, 2016). Nevertheless, in this project, the GMP might not be applicable as the cost has been identified as one of the major restraints to this project. Thereby, it would be helpful for the project managers if the Lump sum contract gets developed. Best procurement method The evaluation matrix for the best procurement method for this project is: Criteria Weightage Project Delivery Systems Competitive Negotiated Best Value Score Weightage Score Weightage Score Weightage The complexity of the project 20 3 60 2 40 2 40 Funding structure 30 2 60 3 90 4 120 Risk sharing and allocation 19 2 38 1 19 2 38 A trend in Client's familiarity 31 3 93 2 62 4 124 Value 100 251 211 322 Table 4: Evaluation Matrix of Procurement method (Source: Created by Author) Focusing on the above table, it can be said that the best value procurement method is significant in this project. It is observed that the best value procurement method is significant as it has a less complicated structure than the other two. Besides this, a good funding structure and high trend in client's familiarity can be considered as major factors behind the selection of this procurement method. However, it is observed that the best value method is uncommon to the public as not much application of this can be evidenced. As commented by Masterman & Masterman (2013), a provider with a high combination of performance gets awarded through this method. It is found that WestLINK is a collective venture of three major organizations. Therefore, the high availability of resources and sub-contractors can be applied through this procurement method. Therefore, it is significant for a project contractor to estimate the non-price criteria in a precise manner. Therefore, type of the project and estimated completion date can be considered as necessary for considering this procurement method. Differences in thoughts have been observed regarding the authenticity of this method. According to Naoum & Egbu (2015), technical factors of this procurement method plays a negative role in influencing time, work quality and performance of any contractor. Besides this, the negotiation method can also be implied for the successful completion of this project. It is observed that the negotiation method requires a high amount of cost for a successful completion on any project. Besides this, it is also found that through a negotiation method, a contractor can develop a low quality work for any project. Simultaneously, competitive bidding has also found incapable of identifying associated risks in a project. Therefore, it can be said that an open value procurement method needs to be applied by this organization to complete this project within the allocated deadline. Risk management plan This Risk management plan is significant in reducing associated risks that can affect the project management procedure that is going to be completed in 2023. Henceforth, the followi...