Audit and Controls

This study focuses on project management, procurement methods, financial contract types, and risk management plans. It discusses the importance of choosing the right project delivery method, financial contract type, and procurement method for a company. The study also provides insights into the National Australia Bank's project and the challenges it faced. It concludes with recommendations for managing risks and ensuring project success.

Audit and Controls

Table of Contents
INTRODUCTION...........................................................................................................................2
Project at target company............................................................................................................2
Background..................................................................................................................................2
Financial contract type.................................................................................................................4
Procurement method....................................................................................................................5
Risk Management plan................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Project management is the practice of initiation, planning, executing, monitoring and
closing the work which helps to attain the specific goals of a company. In the same way, the
current study is based upon the National Australia Bank (NAB) which is known under 5 bank in
Australia. For that the report will describe the target company and background of the case study.
Also, report determine different project procurement method and chooses the best out of them.
Further, report present different financial contract project type and recommend the best out of it.
Also, report will describe some procurement method and chooses the best one as well. Lastly,
report provide the risk management plan which in turn assist to meet the define aim and
objectives of NAB.
Project at target company
As currently NAB contacted 13000 customers to determine their personal information
and as it is 4th largest Australian bank in Australia and that is why, it is essential for the company
to make sure that the data is not misused by the third party. As the CEO of the company also
compromised that data is deleted within two days and unfortunately there is a fraud happened
and as a result, most of the company employees’ data got leaked. That is why, there is a need to
take proper that means 24*7 monitoring and for that new data application will be introduce so
that it will help to protect the misused of data. Also, the current project require huge amount off
investment and for that need specialist IT professor, project manager and project team in order to
deliver the project in better manner.
Background
NAB is introducing new online application for their employees and customers so that it
will not be used by another third party. For that proper log in Id and passwords are introduce so
that other than users it will not be used by another one. Also, this online application is actually
help the company to make sure that company provide proper quality of services to their users
and as a result, it did not cause any negative impact upon the company’s performance. Also, in
this modern era of the world, every company of any industry, uses advance technologies so that
it will help to save cost and time in order to manage the working performance level of the
company in better manner. Introducing the online application will require high amount of

investment and this is turn assist to minimize the issue which currently the company faces and
as a result, this will help to sustain the brand image of the company in better manner.
Project delivery method
Project delivery method is that system which is actually used by any company for a
structure and also facility by entering into the legal agreement with many parties. There aree
three main types of project delivery method such that:
Design-bid-build: One of the traditional method where a company contracts with the
separate entity for the design and construction of a project. This is an actual design process
which involves working with an architect and engineer in order to design a feasible plan at the
time of bidding process (Mosley Jr and Bubshait, 2017).
Design- build: The method is used for reducing the chances of risk for company and also
assigning authority to all. Through this method, company require less time and also tend to stay
on budget better than the design-bid- build projects.
CM@Risk: Another method of project delivery method which is commit by the
construction manager in order to deliver the project at GMP and it is also based upon the
construction documents. During this project delivery method, company will easily determine the
risk and also actively manage them in order to deliver thee project in better manner.
[1= best option, 2= preferred in the absence of 1, 3= less preferable]
Project delivery method Scoring
Design-bid-build 2
Design-build 1
CM@Risk 3
Among all, project manager chooses Design- build method because it is will assist to
reduce the risk to owner of the property because it may lead to increase the conflicts among the
project team. On the other side, using this method will also help not to pay any extra fees to the
legal department and as a result, it is consider one of the most cost effective strategy among all.

Financial contract type
Financial contract refers to determine how the project manager deal or select the project
on the basis of price. There are three main type off financial contract type which are as mention
below:
Lump sum contract: It is also known as a stipulated sum contract and consider one of
the most traditional method, also most of the construction company also uses the same in order
to meet the define aim and objectives. Thus, a single lump sum price for an entire work is agreed
before the work is signs (Chen and et.al., 2016). Further, using this financial contract type help to
reduce the client risk as the price is fixed and also, one of the highly accepted contract type for
project managers.
Guaranteed Maximum Price: It is another method off financial contract type and it is a
form of agreement with a contractor which is actually agreed that contract sum is not exceed
with a specified maximum. So, this type is majorly prefer to those manager who choose Design-
build delivery method because it is consider one of the good position to control the cost. Also,
this method is more preferred to small projects because the chances of risk is under control.
Cost plus fixed fee contract: Another focused financial contract type where a contractor
is paid to normal expenses for the project as well as fixed fee for their services too. Also, this
allow the contractor to collect a profit on the project, and even encourage economic production
for the companies (Chen and et.al., 2016). Also, the method is a cost reimbursement contract
which actually provides for the payment to contractor at a negotiated fee.
Among all, project manager chooses Guaranteed Maximum Price because it helps
contractor to keep the cost down so that it will beneficial for the company and its new project.
Also, all the reimbursement should be written into a contract so that it will help to manage the
entire project in better manner.
[1= best option, 2= preferred in the absence of 1, 3= less preferable]
Project delivery method Scoring
Lump sum Method 2

Guaranteed Maximum Price 1
Cost plus fixed fee contract 3
Procurement method
Procurement project methods are those method which creates a relationship with outside
vendors and suppliers for the goods and services that needed to be completed. Thus, this process
is also comprises of five steps i.e. proper planning, selecting, contract writing, proper screening
and closing (Procurement methods, 2019). There are three main type of procurement methods
which are available for the company which are as mention below:
Competitive: It refers to the opening the process to bids and tender in order to obtain the
best value. Also, using this method, the project manager actually select different price from the
market and as a result, select the best out of many (Rahmani, Maqsood and Khalfan 2017). Also,
this method assist to lower down the cost of the project and as a result, choose best procurement
method as well.
Negotiated: One of the best method of procurement which almost project manager
choose because it is go through to create a favorable terms as a part of the new supplier
contracts. Therefore, it also involve negotiating different terms to the suppliers even when the
contract is renewed, at that time entire project is discussed in better manner.
Best value: Another project procurement method which looks at a factor other than only
price I.e. quality and expertise. Such that when project manager select the vendor and contractors
then the best value of procured goods and services that can be simply describe as a comparison
off cost and benefits (Gürakar and Bircan, 2016). Thus, after negotiation, project manager
chooses the best value by considering the quality and expertise which help to meet the define
aim and objectives of the company.
Among all, project manager chooses competitive procurement method because it will
help to select the project after considering all the factors with the market rate. Under this method,
project manager also come to realize that it will help to manage the cost and price which in turn
assist to leads the project to meet the define aim and objectives as well.

[1= best option, 2= preferred in the absence of 1, 3= less preferable]
Project delivery method Scoring
Competitive Method 1
Negotiation 3
Bets value 2
Risk Management plan
Risk management plan is refers to that document which help to manage the risk so that it
will not affect the project in negative manner. Also, It is analyzed that project manager made risk
assessment so that it will not cause any negative impact upon the project. In the same manner, in
order to develop the online application for the company, there is a need to manage the risk. To
manage the risk, every project manager has to take records so that it will not affect the overall
project in opposite manner. So that it will not cause any negative impact. So, the risk
management plan is as mention below:
Risk type Impact Likelihood Risk Quadrant Risk Mitigation
Low budget High Medium Financial risk In order to
mitigate the risk,
project manager
make sure that all
the assign work
is properly
manage with
define money
allotted (de
Araújo, M. C. B.,
Alenca and de
Miranda Mota,
2017). For that

project manager
should conduct
meeting to
determine the
performance.
Low
management
Medium Medium Operational risk Under this,
project manager
should make
sure that all the
assigned work
should be
manage
accordingly and
also, through
weekly meeting,
project manager
get reviews on
the same
(Papajohn,
Molenaar, and
Alleman, 2020).
Not meet the
deadline of each
project
High Low Operational risk In order to
manage the risk,
project manager
should use some
tools i.e. by
setting the
standard it will
be easy for the
company to
determine the

progress report
of each task (Gad
and et.al., 2020).
Further, this is
also help to
manage the risk
and complete the
entire project in
define time
period.
Sudden issue
with regards to
internet
High Low Operational risk This is due to fail
of IT and for that
the project
manager must
hire some IT
specialist so that
it will not cause
any negative
impact upon the
project. Also,
make sure that
there is another
option or
substitute
available for the
company in order
to get better
results.
Sudden absentee
of one human
resource
High High Human
Resource risk
To overcome
form the issue,
project manager

have to make
sure that there is
a substitute of
each and every
individual. This
will help to
manage the work
in better manner
and also meet the
define aim and
objectives as
well.
CONCLUSION
By summing up above it has been concluded that project management plays a crucial role
in the success of any project. In the same way, current study concluded that by using the best
strategies and tool, the company will be easily meet the define aim. Also, report concluded that
in order to introducing new project then it will be better for the company to deliver the project
on time. For that report concluded that design- build is the better project delivery method so that
it will be helpful for NAB. Also, study concluded that guaranteed maximum Price contract is
another better financial contract type which helps the quoted bank to get better quality of
products. Lastly, Competitive is another best procurement method which is used by the
company in order to meet the define aim and objectives as well and some type of risk is also
identified that will help to manage the project in better manner.

REFERENCES
Books and Journals
Chen, Q. and et.al., 2016. Choosing appropriate contract methods for design-build
projects. Journal of Management in Engineering. 32(1). p.04015029.
Chen, Q. and et.al., 2016. Time and cost performance of design–build projects. Journal of
Construction Engineering and Management. 142(2). p.04015074.
de Araújo, M. C. B., Alencar, L. H. and de Miranda Mota, C. M., 2017. Project procurement
management: A structured literature review. International Journal of Project
Management. 35(3). pp.353-377.
Gad, G. M. and et.al., 2020. Legal and contractual issues in lump-sum design-build
implementation on large-scale airport projects. Journal of Legal Affairs and Dispute
Resolution in Engineering and Construction. 12(1). p.05019011.
Gürakar, E. C. and Bircan, T., 2016, October. Political connections and public procurement in
Turkey: evidence from construction work contracts. In Political economy determinants of
private sector dynamism in the ERF region. Economic Research Forum.
Mosley Jr, J. C. and Bubshait, A. A., 2017. Project procurement systems for mechanical,
electrical and piping projects in Saudi Arabia. Engineering, Construction and Architectural
Management.
Papajohn, D., El Asmar, M., Molenaar, K.R. and Alleman, D., 2020. Comparing Contract
Administration Functions for Alternative and Traditional Delivery of Highway
Projects. Journal of Management in Engineering. 36(1). p.04019038.
Rahmani, F., Maqsood, T. and Khalfan, M., 2017. An overview of construction procurement
methods in Australia. Engineering, Construction and Architectural Management.
Online
Procurement methods. 2019. [Online]. Available through: <
https://www.sdcwa.org/procurement-methods>.