Project Execution Planning and Management †MyAssignmenthelp.com

Question: Discuss about the Project Execution Planning and Management. Answer: Project Delivery Method The project delivery method is defined as an efficient process or procedure utilized in any construction project for developing the design, scope, consultants and design sequence for completing the project. Therefore, each project differs in characteristic with the other based on the delivery method used for completion of the project. Currently, in the public funded project, the three major project delivery methods are followed including CM @ risk, Design build and design bid build. The selection of the appropriate project delivery method needs to be considered based on the alignment of the project requirement with the characteristics of the method. The various characteristics of the method of the three project delivery method are illustrated in the section below: Design-Bid Build: The process of Design Bid Build is considered as one of the traditional process used for design and construction. In this process the design of the project is completed before the bidding process, and the construction part of the project is provided for construction project. In this type of delivery method, the errors regarding the design of the construction project becomes the responsibility of the project owner. Design Build: In the project delivery method of Design build, both the design and construction module of the project are being procured. This type of project is being characterized by the contract from one single entity. Usually the process of RFP (Request for Proposals) and RFQ (Request for Qualifications) are being employed in the project. CM @ Risk: This type of project delivery method is characterized with different construction and design procurement for completing the construction. The contract between the construction manager and the construction agency is at risks determining the final time and cost required for the construction project. Based on the characteristics of the three delivery methods, CM @ Risk, Design Build and Design-Bid Build methods has been provided the score in the evaluation matrix. In the project delivery method evaluation matrix, it has been identified that application of design build method would be most appropriate for selecting the appropriate project delivery method for the project for widening the existing highway for the Sydney motorway network. From the case study for the project of widening of the Sydney Motorway Network it has been identified that the working capacity and complexity in widening of the road are the significant factor that needs to be considered while selecting the project delivery method. The M5 motorway has been predicted to have an increase in the traffic of 24 % in the weekdays. Therefore, the construction for widening of the motorway needs to be carried out with utmost care and safety without risking the daily life of thousands of individuals. Therefore, in the evaluation matrix, design complexity has been provided with maximum weightier. In addition to that, the inability or failure to manage the organizational structure associate d with the widening of the motorway carries the potential for slipping out vital activities in the project. Therefore, risk assessment and management in the project is the second most significant factor having the maximum weight. Further, the project has been scheduled to be completed within 2023. Failure to complete the project within set deadline will in turn increase the complexity and budget for construction. Therefore, schedule delivery has been allocated as the second highest weight for the project. Cost allocated and the owner experience has been provided with the thirst highest weight as AUD 16.8 billion has been contracted for the project. Goals/ Criteria Criteria Weight Project Delivery Method Design-Bid Build Design-Build CM @ Risk Score Weighted Score Score Weighted Score Score Weighted Score Schedule Delivery 15 4 60 10 150 8 120 Innovation of the Construction 5 4 20 9 45 10 50 Design Complexity 20 3 60 9 180 8 160 Risk Assessment 20 4 80 10 200 8 160 Experience of the Owner 10 10 100 8 80 3 30 Experience of the staffs 5 10 50 8 40 4 20 Contractor Experience 8 4 32 10 80 10 80 Cost 10 3 30 10 100 8 80 level of control 7 9 63 8 56 10 70 total 100 495 931 770 Based on the evaluation matrix, Design-Build has been identified as the appropriate project delivery method that can be employed in the widening of the motorway project. Financial Contract Type The project for the widening of the motor way required the creating four lanes from the exiting two lanes in order o improve the transportation facilities. The financial contact for the construction projects provides a legal agreement binding the contractor and the owner of the project. The contract further provides the detailed information about the type and amount of compensation provided to the contractors and designers for completing the project within the allocated amount of time. In the construction project, there are three major types of contract followed for binding the contractor on the basis of financial amount. Lump Sum Contract: The contract for the lump sum is characterized by the fixed financial amount provided for the completion of the project. Completing the project before the schedule would help in increasing the benefits and profits from the lump sum provided in the beginning. The lump sum is applicable when the scope and objective of the project are mentioned by the project owner. Application of lump sum contract helps in eliminating any risks associated with the contractor. Cost Plus Contract: In the cost plus contract the total budget provided by the owner is based on the actual price required by the activities that have been followed during the construction project. The cost plus contract provides the contractor with the ability to negotiate the financial amount required for the construction project. During the determination of the prince, all the direct and indirect cost are taken into consideration. Guaranteed Maximum Price Contract: The financial contract of Guaranteed Maximum Price Contract are distributed among the contractors based o the total price provided based on the activities and construction module pre-define din the design of the project. in this type of contract, the financial budget can only be increased after formal approval from the owner. The project for the development of the widening of the motor way network needs to be carried out on the lump sum of AUD 16.8 billion provided to the West LINK for completing the entire project. Therefore, the fixed cost criteria have been allocated with maximum weight along with the risks and quality factor for constructing and completing e entre project. Furthermore, the project needs to be completed within the allocated deadline with 2023. Therefore, schedule has been provided with second highest weight for the construction project. Similarly, all the other criteria has been evaluated and judged based in the requirement as mentioned in the construction project. Goals/ Criteria Criteria Weight Financial Contract Type Lump sum contract Guaranteed Maximum Price Contract Cost plus Fixed Fee Contract Score Weighted Score Score Weighted Score Score Weighted Score Fixed cost for construction 20 10 200 8 160 7 140 Schedule project 15 10 150 7 105 10 150 increased performance and production 5 8 40 4 20 5 25 bidding analysis 5 9 45 2 10 4 20 risk 20 7 140 5 100 9 180 design 5 4 20 2 10 8 40 higher cost for unforeseen condition 10 8 80 4 40 8 80 quality 20 8 160 4 80 7 140 total 100 835 525 775 Based on the evaluation matrix, lump sum financial contract should be utilized for the construction of widening the motorway of the project. Procurement Method The selection of appropriate procurement methods in the construction project helps in ensuring the project success and client satisfaction. The application of appropriate procurement process helps in improving the quality and standard of the construction project. Based on the construction project criteria, three main types of procurement methods are followed namely best value procurement, negotiated procurement and competitive procurement. Competitive procurement methods: The competitive procurement process allowed the all contractors with the process for judging the contractors in the basis of various characteristics of the contractors on the basis of technical quality of the contractors. The competitive procurement methods evaluated the capability, experience and financial cost of the contractor. Further the experience and technical capability of the contractor are judged before selecting the appropriate contractor. Negotiated procurement methods: In the negotiation procurement process, the contractor can discuss and negotiate the budget with the owner. The profit margin and risk factor associated with the project are considered before selecting the appropriated contractors. This type of procurement methods includes huge amount of financial budget by the contractors. Best Value procurement methods: In the method for best value procurement process, the contractor with the least amount of bid is chosen for the construction project. This process is associated with less risks and future consequences of the construction. Further, the application of the best value procurement process eliminates the assessment of the contractor based on the quality and technical process employed for the construction project. In this project for the widening the new freeway, a fixed amount has been provide by the government and deadline for completion has been set. Therefore, the cost for the procurement has been provided with the highest priority in the methods followed by the schedule. The construction would help in improving the quality and safety of the people using the pathway. In addition to that, mission out of any parts or activities in the construction would increase the risks associated with the project. Therefore, the risks have been allocated to next highest weight in the evaluation matrix. Goals/ Criteria Criteria Weight Procurement Method Competitive Negotiated Best Value Score Weighted Score Score Weighted Score Score Weighted Score Cost 20 10 200 4 80 3 60 quality 10 8 80 10 100 10 100 Schedule 10 8 80 6 60 7 70 risk 13 9 117 7 91 4 52 public accountability 5 5 25 1 5 6 30 project size 5 7 35 5 25 8 40 experience of the contractor 15 10 150 8 120 3 45 government policy 5 5 25 3 15 4 20 Decision of the owner 2 3 6 10 20 5 10 expertise of the contractor 15 10 150 8 120 6 90 total 100 868 636 517 Based on the evaluation matrix, competitive procurement method has been selected as the appropriate method for selecting the procurement for the construction project. Therefore the application of the competitive procurement could help in improving the quality and standard of the project. Bibliography Asher, M. G., Sharma, T., Sheikh, S. (2015). Public Procurement Legislation Essential for Improving Public Financial Management in India. da Silva Barboza, L., Gilberto Filho, A. D. A., de Souza, R. A. (2014, August). Towards a legal compliance verification approach on the procurement process of IT solutions for the Brazilian Federal Public Administration. InRequirements Engineering and Law (RELAW), 2014 IEEE 7th International Workshop on(pp. 39-40). IEEE. Gruenen, J., Bode, C., Hoehle, H. (2017, May). Predictive Procurement Insights: B2B Business Network Contribution to Predictive Insights in the Procurement Process Following a Design Science Research Approach. InInternational Conference on Design Science Research in Information Systems(pp. 267-281). Springer, Cham. Hawkins, T. G., Gravier, M. J., Berkowitz, D., Muir, W. A. (2015). Improving services supply management in the defense sector: How the procurement process affects B2B service quality.Journal of Purchasing and Supply Management,21(2), 81-94. Hayden, M. A. (2016).Engaging Users through the Application of Value Stream Mapping to Streamline the Procurement Process for Office Equipment(Doctoral dissertation, Ohio University). Jans, M., Alles, M. G., Vasarhelyi, M. A. (2014). A field study on the use of process mining of event logs as an analytical procedure in auditing.The Accounting Review,89(5), 1751-1773. Lawal, S. O. (2016). Procurement Process Design. Lima, F. S., Gonalves, M. B., Samed, M. M. A., Hellingrath, B. (2015, June). Integration of a Mathematical Model Within Reference Task Model at the Procurement Process Using BPMN for Disasters Events. InInternational Conference in Swarm Intelligence(pp. 440-452). Springer International Publishing. Lippman, E., McMahon, M. (2017). Professionalism and Politics in the Procurement Process: United States Civil War Early Years.Accounting Historians Journal,44(1), 63-76. Lozano, R., Witjes, I. S., van Geet, C., Willems, M. (2016). Collaboration for Circular Economy: Linking sustainable public procurement and business models. Mishra, A. N., Devaraj, S., Vaidyanathan, G. (2013). Capability hierarchy in electronic procurement and procurement process performance: An empirical analysis.Journal of Operations Management,31(6), 376-390. O'mahony, B., Noone, D., Prihodova, L. (2015). Survey of coagulation factor concentrates tender and procurement procedures in 38 European Countries.Haemophilia,21(4), 436-443. Wedin Hansson, L., Johansson, S. (2017). Institutional Incentives for Sustainable Public Procurement: a Case Study of Sustainability Considerations in the Swedish Construction Sector.The Public Procurement Law Review,26(5), 220-235. Witjes, S., Lozano, R. (2015, July). Developing a holistic framework to understand the contribution of sustainable public procurement to the development of more sustainable business models. Project Execution Planning and Management – Myassignmenthelp.Com Question: Discuss About The Project Execution Planning And Management? Answer: Introducation Design-Bid-Build the design-bid build consists of three different phases where the designing phase, bidding phase and the building phase. The designing phase consists of steps, which corresponds to the creation of the project plan and architectural design of the project (Park Kwak, 2017).. The owner hires an architect who is given the task of creating the architectural design of the project. If the owner of the project the architect goes on to approves the design produce the bid document that will be the basis on which, the bidding from the contractor will be happening. The requirements of the design has to be met by the architecture to fulfill the criteria of the project objectives (Ramsey, El Asmar Gibson, 2015). After the bid document is created the document is analyzed and the bidding phase starts. Different contractors come for the bidding auction of the project. They place their bidding for them to buy the tender for the project. After the completion of the bidding the owner along with the architect can either select one of the bidders based on the criteria he had put forward, reject all the bidders or start a new bidding process at a later date. After the complete selection of the contractor the project is assigned to them to work on (Park Kwak, 2017).. The contractor has to then start collecting all the permits that are required for the completion of the project. The contractor then produces a detailed timeline for the working of the project and delivers it to the owner for successful authorization. The architect hired by the owner works as a representative of the owner and looks after the working of the project timeline and the quality of the project (Ramsey, El Asmar Gibson, 2015). Design-Build In this process, the owner has to hire a general contractor who would look after the working of the project and an architect who would be in charge of the designing and implementing project in a correct manner (Minchin et al., 2013). This project delivery method lacks the process of bidding procedure, which selects the contractor who would be working on the project tender. These type of projects are mainly the act of joint venture or are completed in partnership with the owner and the architecture or the contractor who is given the contract (Minchin et al., 2013). CM @ Risk the constructor is provided with a project report during the designing phase or when the design has been completed (Fehling et al., 2014). The constructor is then selected based on the past working experience and the lowest bid set forward by the constructors. The company is then assigned and has to complete the whole project from there forward. The project is approved based on the risks taken by the contractor manager (Fehling et al., 2014). The three processes has been critically evaluated and the case study has been studied with care. Upon successful evaluation, it has been found that the best project delivery system to select for the given case study would be the design build process. As the construction time line for the case study is 7 years so the design build would be the best method to be used by the construction company. The tender has many risks and has to be completely evaluated by the contractor who has taken the job. The marking score provided in the table above has been provided based on the case study. Financial Contract Type Lump sum contract the contract is of a stipulated amount that is confirmed between the owners of the project and the contractor who has agreed to work on the project (Minchin et l., 2014). The major risks, which will be considered during the execution of the project, will be left for the contractor to resolve. The payment is paid in full with the consideration of over head costs, profit margin and the labor costs. Guaranteed Maximum Price Contract this contract is evaluated based on the actual cost compensation of the contractor with the addition of the profit margin of the contractor being added to it (Lee Rao, 2015). The contractor is responsible for the expenditures that will be applicable for the project completion. If there is a shortage in the funds provided then the owner has to evaluate the project again and then provide the money required for the task (Burr, 2016). Cost plus Fixed Fee Contract the contractor is paid an amount of money and a separate nominal amount for tasks provided by the contractor (Chen et l., 2015). This in turn provides a margin of profit for the contractor to earn an extra amount of money. The expenses which will be calculated based on the work which will be provided by the contractor. The tender is settled only when both the parties agree on the said statement (Chen et l., 2015). The best recommendation for the case study will be to follow the lump sum contract. As the project is of large deadline the owner will be paying the contractor a handful amount of money and will be done with it. The contractor will then have to go on with the project execution plan. The contractor has to work on all the working procedures and complete the task with the best quality. Higher the marking given to a criteria the higher involvement it has in the project execution. Procurement Method Competitive the use of fair and ethical method of bidding provided by the contractor who are willing to take up the project (Fong, Avetisyan Cui, 2014). The process provides a platform for all the different contractors to provide a bid on the tender and acquire it. The process is targeted to provide an equal shareable platform for all contractor to come and get the tender (Fong, Avetisyan Cui, 2014). This process is helpful for the owner of the project to acquire the best kind of contractors for the work. The interested contractor fill out the form and then places a bid on the tender. The contractor is chosen based on the evaluation of the form-filled out by them and the amount of money quoted by them (Bajari, Houghton Tadelis, 2014). After the successful evaluation, the owner selects the contractor and is provided with the tender contract. The owner can be of price oriented or can be or best quality oriented. Based on these properties the contactor is chosen. The owner also eval uates the past experience and project delivery before giving the tender (Bajari, Houghton Tadelis, 2014). Negotiated the owner chooses a contractor chooses a specific contractor based on their relation of past working experience on based on the reputation of the contractor (Miller, 2014). The cost to be paid out to the contractor is discussed and if the contractor agrees of the quotation of money then the tender is given to the contractor. The contractor then starts working on the project. If the quotation is not agreeable for the owners then a new contractor is called. This method has been avoided for much reason such as huge amount quotations (Yaqub et al., 2014). Best Value the factor of the lowest bidding is not the only criteria that is evaluated by the owner but also the experience of the contractor in working with similar projects (Ballesteros-Prez et al., 2016). The quality of the work needs to be of high specification and the owner would not settle for less. The selection is made prior to the architectural design of the project. The values of the contractor is to be taken up and evaluated before accepting thee working tender. Due to the following of the procedure the owners has less risk involved in the project completion method. Many working owners for their project have used the system (Ballesteros-Prez et al., 2016). This has been chosen due to the fact that there are minimum amount of risks to be considered when the work is being done. There is less amount of decision making to be done by the worker and the owners. There is a certain amount of money quotation from the previous experience then the contractor can quote the amount of money (Tran Molenaar Gransberg, 2016). This would highly eliminate the process of bidding by the contractors for the tender acquisition. The method has been followed by many government agencies who wants to eliminate process of bidding on the project plans. Goals/ Criteria Criteria Weight Procurement Method Procurement Method Procurement Method Competitive Negotiated Best Value Score Weighted Score Score Weighted Score Score Weighted Score Bidding 30 7 210 8 240 3 90 Decision of the owner is final 35 7 245 2 70 7 245 Negotiation 15 2 30 8 120 2 30 Risk taken 25 5 125 8 200 3 75 Total 105 610 630 440 The recommended procedure to follow for the case study would be the best value method. The recommendation has been provided based on the evaluation of the case study. The quality of work to be provided by the contractor is very high for this project. The price of the project make it to be of cost effective type. The marks has been provided to the criteria based on the case study. The higher the marks provided the more involved the criteria is in the project. References Bajari, P., Houghton, S., Tadelis, S. (2014). Bidding for incomplete contracts: An empirical analysis of adaptation costs. The American economic review, 104(4), 1288-1319. Ballesteros-Prez, P., Skitmore, M., Pellicer, E., Zhang, X. (2016). Scoring rules and competitive behavior in best-value construction auctions. Journal of Construction Engineering and Management, 142(9), 04016035. Burr, A. (Ed.). (2016). Delay and disruption in construction contracts. CRC Press. Chen, Q., Xia, B., Jin, Z., Wu, P., Hu, Y. (2015). Choosing appropriate contract methods for design-build projects. Journal of Management in Engineering, 32(1), 04015029. Fehling, C., Leymann, F., Retter, R., Schupeck, W., Arbitter, P. (2014). Cloud computing patterns: fundamentals to design, build, and manage cloud applications. Springer Science Business Media. Fong, C. K., Avetisyan, H. G., Cui, Q. (2014). Understanding the Sustainable Outcome of Project Delivery Methods in the Built Environment. Organization, Technology Management in Construction, 6(3). Lee, H., Rao, S. (2015). Nevada Demonstration Project: Construction Manager at Risk Contracting for Rehabilitation of I-80 Carlin Tunnels in Elko County, NV. Miller, D. P. (2014). Subcontracting and competitive bidding on incomplete procurement contracts. The RAND Journal of Economics, 45(4), 705-746. Minchin Jr, R. E., Li, X., Issa, R. R., Vargas, G. G. (2013). Comparison of cost and time performance of design-build and design-bid-build delivery systems in Florida. Journal of Construction Engineering and Management, 139(10), 04013007. Minchin, E., Ptschelinzew, L., Migliaccio, G. C., Gatti, U., Atkins, K., Warne, T., ... Asiamah, S. (2014). Guide for design management on design-build and construction manager/general contractor projects (No. Project 15-46). Park, J., Kwak, Y. H. (2017). Design-Bid-Build (DBB) vs. Design-Build (DB) in the US public transportation projects: The choice and consequences. International Journal of Project Management, 35(3), 280-295. Ramsey, D., El Asmar, M., Gibson Jr, G. E. (2015). Benchmarking the Procurement Performance of Single-Step Design-Build. Tran, D., Molenaar, K. R., Gransberg, D. D. (2016). Implementing Best-Value Procurement for DesignBidBuild Highway Projects. Transportation Research Record: Journal of the Transportation Research Board, (2573), 26-33. Yaqub, E., Yahyapour, R., Wieder, P., Kotsokalis, C., Lu, K., Jehangiri, A. I. (2014, June). Optimal negotiation of service level agreements for cloud-based services through autonomous agents. In Services Computing (SCC), 2014 IEEE International Conference on (pp. 59-66). IEEE.