Project Execution Planning-Free-Samples for Students-Myassignment

Question: Discuss about the following: 1.Project Delivery Method 2.Financial Contract Type 3.Procurement Method Answer: 1.Project Delivery Method The method of project delivery is generally referred as a system that is mainly used either by an owner or by some agency that mainly assists in financing as well as organizing construction, operations as well as maintenance services for the facility or structure that is entered into some of the legal agreements. It is identified that each of the project mainly differs in characteristic with others in context to delivery method that is mainly utilized for competing the entire project (Wedin Johansson, 2017). It is found that there are generally three types of project delivery methods that include design bid build, design build and CM@ risk. Among the three-project delivery method, it is identified that most appropriate method is mainly applied in the public funded project. It is found that the application of method is generally dependent on the alignment of method characteristics with various project related needs. The different types of delivery method that are related with project are elaborated below: Design Build: In this particular method, it is identified that the design as well as construction related project module are generally procured. Design build type of project are mainly characterized with the help of the contract from one entity (Da et al., 2014). It is identified that usually request related with qualification and request for proposals are generally employed in the entire project. CM @ Risk: This type of method is generally have feature that are related with different categories of construction as well as design procurement for executing the entire project successfully (Jans, Alles Vasarhelyi, 2014). The contract that exist between the construction agency and the contract manager helps in determining the assumed time and cost that are needed for completing the entire project successfully. Design-Bid Build: This method is mainly considered as the traditional procedure that is utilized for both construction and design (Hayden, 2016). In this method, it is analyzed that the project design is mainly completed before the procedure of bidding. In this type of methods, it is identified that various types of errors related with the construction of the project is considered project owners responsibility. Depending on the characteristics of the delivery model, proper score has been provided within the evaluation matrix. In the evaluation matrix related with the project delivery method, it is analyzed that the most significant method is design build for widening the highway of the motorway which is mainly situated in Sydney. It is identified from the case study of widening the network of motorway that the complexity as well as capacity of working is quite significant and therefore they must be analyzed properly before the selection of proper delivery method (Wedin Hansson Johansson, 2017). It is predicted that M5 motorway will enhance the traffic by 24% in weekdays. Therefore, it is analyzed that development of motorway network must be carried out properly with proper care and safety so that it does not create any risk on the daily life of the individuals. Design complexity is provided with maximum weight within the evaluation matrix (Witjes Lozano, 2015). Additionally, the failure o r inability of managing the structure of the entire organization that is related with widening of the motorway helps in carrying proper potential for slipping different types of activities of the project. Risk assessment management related with the project also have maximum weight. Therefore, the entire project is scheduled to be completed within the year 2023. 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 9 135 9 135 8 120 Construction related innovation 5 4 20 8 40 10 50 Complexity present in design 20 4 80 10 200 8 160 Risk Assessment 19 5 95 8 152 8 152 Experience of the owner 11 9 99 7 77 3 33 Experience of the staff 6 10 60 11 66 4 24 Experience of contractor 7 5 35 9 63 10 70 Cost 10 4 40 9 90 8 80 Control level 7 10 70 8 56 10 70 Total 100 634 879 759 On the basis of evaluation matrix, design build method is considered as the most appropriate procedure for project delivery that can utilized for motorway widening project. 2. Financial Contract Type In order to improve the transportation facilities, the project of widening motorway network helps in creating four lanes from the existing two lanes. It is identified that the financial contract of the construction project helps in providing proper legal agreement for bidding both the contractor and owner of the project (Hawkins et al., 2015). Additionally, the financial contract is also beneficial in giving proper information that is related with type as well as amount of compensation that is given to the contractors and designers for completing the entire project effectively. It is found that are three major categories of financial contract, which are as follows: Cost plus contract: In this type of contract, the entire budget that is provided by the owner is mainly dependent on the actual price that is mainly needed by the activities that are required to be followed during the construction of the project (Lippman McMahon, 2017). It is found that the cost plus contract mainly helps in providing ability of negotiating the entire financial amount that is needed for constructing the entire project successfully. It is identified that both direct as well as indirect cost are considered during price determination of the project. Lump sum contract: It is identified that this contract type is mainly characterized by fixed financial amount that is mainly provided for completing the entire project successfully. Completion of the project before schedule helps in enhancing the entire benefit from lump sum that is mainly given at the initial stage of the project (Lozano et al., 2016). The lump sum is mainly applicable when both the objective as well as scope of the entire project will be mentioned with the help of project owner. Lump sum contract application mainly assists in eliminating the various types of risk that are generally related with the contractor. Guaranteed Maximum Price Contract: This financial contract is mainly distributed among various contractors that are mainly dependent on the total price of construction as well as activities that are generally pre-defined (O'mahony, Noone Prihodova, 2015). In this type of contract, it is identified that the entire financial budget can be enhanced after proper formal approval of the owner. The project that is related with the widening of the motor way network, which is mainly carried out properly on the lump sum, that is around AUD 16.8billion. The amount is mainly provided to West LINK to complete the entire project successfully. Therefore, it is identified that the criteria of fixed cost are generally allocated with weight along with quality and risk factor in order to construct the entire project successfully (Mishra, Devaraj Vaidyanathan, 2013). Furthermore, the project must be successfully completed with the deadline that is around 2023. Therefore, proper schedule is mainly provided with appropriate weight so that the project can be constructed properly. 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 related with construction 11 9 99 8 88 8 88 Schedule of the project 15 9 135 9 135 12 180 Increased production 7 7 49 5 35 6 42 Bidding analysis 6 10 60 3 18 5 30 Risk 17 6 102 5 85 10 170 Design 20 5 100 2 40 9 180 Cost related with unforeseen risk 8 9 72 5 40 9 72 Quality 16 9 72 4 64 8 128 Total 100 689 505 890 Depending on the evaluation matrix, it is identified that lump sum financial contract must be utilized properly for constructing the widening of the entire motorway project successfully. 3.Procurement Method It is identified that proper selection of procurement method helps in providing client satisfaction as well as project success. It is identified that the application of effective procurement procedure assists in improving both the standard as well as quality of the project (Asher, Sharma Sheikh, 2015). Depending on the criterion of the construction project, there are number of procurement methods that include negotiated procurement, competitive procurement and value procurement. Negotiated procurement methods: In this method, the contractor can negotiate as well as discuss the budget of the project with the owner. The risk factor as well as profit margin, which are mainly associated with the project, is mainly considered earlier than the selection of the contractors. Best Value procurement methods: In this method, the contractors who have very much less bid is mainly selected for the construction of the project. This procedure is mainly associated with the risk as well as various types of future consequences of construction (Gruenen, Bode Hoehle, 2017). Furthermore, it is identified that best value procedure of procurement generally assists in eliminating the assessments related with the contractor in context to various types of technical as well as quality related procedure. Competitive procurement methods: The competitive procurement procedure mainly helps in allowing all the contractors to judge based on the ability o technical quality of the contractors. This procurement method mainly helps in evaluating experience, financial cost as well as capability of the contractor (Lawal, 2016). In addition to this, both the technical as well as experience capability of the contractor is mainly judged before the selection of proper contractor. In this project, it is identified that widening of the motorway network project is mainly given with the government so that the entire project can be executed successfully. Thus, the cost that is associated with procurement is mainly offerred with highest priority within the method that generally follows proper schedule for completing the project (Lima et al., 2015). The project construction would be quite helpful in improving both the safety as well as quality of the project. Goals/ Criteria Criteria Weight Procurement Method Competitive Negotiated Best Value Score Weighted Score Score Weighted Score Score Weighted Score Quality 10 10 100 6 60 3 30 Schedule 15 8 120 11 165 10 150 Cost 10 8 80 5 50 7 70 risk 11 9 99 8 88 4 44 Project size 8 5 40 2 16 6 48 Experience of the contractor 9 7 63 6 54 8 72 experience of the contractor 10 10 100 9 90 3 30 Public related accountability 7 5 35 4 28 4 28 Owner's decision 4 3 12 9 36 5 20 Contractor's expertise 16 10 160 8 64 6 96 total 100 809 651 58 On the basis of evaluation matrix, competitive procurement method is generally selected for constructing the project successfully. References Asher, M. 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Developing a holistic framework to understand the contribution of sustainable public procurement to the development of more sustainable business models.