Case Study - IoT in Construction: Project Delivery, Financial Contracts, Procurement, and Risk Management

Case study – IOT

Table of Contents
INTRODUCTION...........................................................................................................................2
Project at the target company......................................................................................................2
Background of the project...........................................................................................................2
Project delivery method...............................................................................................................2
Financial contract type.................................................................................................................4
Best Procurement method............................................................................................................5
Risk Management Plan................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The project is based upon the case study of Rio Tinto which is not going to introduce
Internet of Things and Smart sensors for their project. It is so because in this modern era, every
company have to become digitalized so that it stay ahead in the competition. Further, report will
describe the project delivery method and financial contract type, also, report will present the best
procurement method and develop a risk management plan that help to deliver the project in
better manner.
Project at the target company
Rio Tinto is the top mining and construction firm in Australia such that it keep working
on providing best innovative tools to their company so that it will help to attract the customers
towards it. For this, the selected project for the company is to use both Internet of things and
Smart sensors for the construction sites with a purpose of worker- safety, cost reduction and
quality assessment. Not only this, this new advancement also help to forecasting the
environmental conditions and now this IoT also have an ability to connect with the machines
over an Internet so that it will help to determine the progress of the company project in better
manner.
Background of the project
Introducing new project which includes IoT and Smart sensors with the machines and
mobile will help to determine every key aspect that may cause opposite reaction within a firm.
Also, if the construction sites used this project, then they can be turned into a web of an
interconnected devices which are easily accessible from one office. The biggest advantage of
using this is that it is energy efficiency and helps to predict the environmental conditions as well.
Also, introducing this system will easily range from truck, bulldozers, haulers to wearable
technology such that Fitbits and safety googles to a person’s work boots as well. Therefore,
attaching this sensor within a machines will help to keep update about all the products and
work’s progress as well.

Project delivery method
Project delivery method is that system which is used by the companies for organizing and
construction for a structure and this must be complying with the legal agreements with one or
more entities (Different types of project delivery method, 2019). There are three main types of
project delivery method which are as mention below:
Design- bid- build method: It is the delivery method in which the owner contracts
separately with a design firm that also produce the construction documents (Feghaly, and et.al.,
2019). It is consider one of the traditional method and also based upon the sequential process of a
design, construction documents, bidding etc. Thus, this method involves owner as well as
different agency contracting entities and that is why, it is score as high as compared to other
project delivery method
Design- Build: It is another project delivery method which is actually involve owner and
agency contracting (single) entity for design and construction (Kamarah, Attalla and Hegazy,
2019). Further, this project delivery method is help to reduce the risk of the owner of property by
delegating all the responsibilities to one single entity. Further, using this method will help the
company to free from serious legal and managerial positions. But if the company uses this
method, then project manager must have the well contacts with vendors. That is why, it is ranked
or score at 2nd position because the design brief is the subject to different interpretation and
sometime leads to miscommunication as well.
Construction manager at risk: Another most effective delivery tool that is actually used
in order to deliver the project in better manner (Chen and et.al., 2016). This provides
professional services and also act as a consultant for the owner in the design development as well
as construction phases. Under this method, project manager first select and retain the design firm
which is also based upon the price, qualifications and some best criteria which are designed by
the owner. Therefore, it is ranked as 3 position, because it does not provide complete planning
and do require pre- construction stages as well, which is not possible.
[1= best, 2= Medium, 3= Low]
Types of delivery method Scoring Justification
Design- Bid- Build 1 Provides lots of option for