Project Management & Costing Methods

Project costing

Table of Contents
1. EXECUTIVE SUMMARY.........................................................................................................1
2. RISK ASSESSMENT..................................................................................................................2
2.1 Chart showing before and after risk conditions..............................................................14
2.2 Summarisation of important risks related to this contract work.....................................15
2.2.1 Analysis and management of risk...........................................................................15
2.2.2 Likelihood...............................................................................................................16
2.2.3 Consequence...........................................................................................................16
2.2.4 Severity of risk........................................................................................................16
2.2.5 Recommendations...................................................................................................23
3. PREPARING PROJECT ESTIMATES....................................................................................24
4. SCHEDULING OF WORK ......................................................................................................26
4.2 Planning in respect of Bid..............................................................................................28
4.3 Estimation of cost for expenditure related to site visit...................................................33
5. ORGANISATION CHART.......................................................................................................35
6. BACKGROUND RESEARCH ................................................................................................36
6.1 CBW complex................................................................................................................36
6.1.1 Background.............................................................................................................36
6.1.2 Location..................................................................................................................36
6.1.3 Features of project..................................................................................................36
6.1.4 Construction and design.........................................................................................37
6.1.5 Risk encountered....................................................................................................37
6.1.5 project delivery system...........................................................................................37
6.1.6 Calculation of Current dollar value........................................................................38
6.2 One central park.............................................................................................................39
6.2.1 Background.............................................................................................................39
6.2.2 Location..................................................................................................................40
6.2.3 Features of project..................................................................................................40
6.2.4 Construction and design.........................................................................................40
6.2.5 Risk assessment......................................................................................................40
6.2.6 Project delivery.......................................................................................................40

6.2.7 Dollar rate calculation.............................................................................................41
6.3 Brookfield Place.............................................................................................................43
6.3.1 Background.............................................................................................................43
6.3.2 Location..................................................................................................................43
6.3.3 Features of project..................................................................................................43
6.3.4 Construction and design.........................................................................................43
6.3.5 Challenges in project..............................................................................................44
6.3.6 Delivery system of project......................................................................................44
6.3.7 Dollar rate calculation.............................................................................................44
REFERENCES................................................................................................................................1

1. EXECUTIVE SUMMARY
Melbourne,
Department of marketing and sales
Subject: Reporting on various business proposals
This is the report in which all new opportunities that are available with respect to
Australian business contracts are to be evaluated. A detailed study will be carried out under
which focus will be provided on three projects which are selected on high rise buildings and that
has been instructed by CEO. All the aspects which are to be covered in this report include new
ideas that are introduced in company, summary about all three projects and all other functions
which are performed and the manner in which cost is calculated. Also, risk assessment will be
carried out so that proper analysis can be made.
Bidding will be done in relation of all the three projects that are present in Australia. The
total value that is involved in them is around $450 million. All factors that are to be considered
in the process of preparation of bid are as follows:
1. Duration that will be taken under this is approx. 5 months.
2. Total staff which is involved in this is 7 departments and 15 people under them.
3. Estimated cost of this is $ 300,420
The bifurcation of total cost is as follows:
S.n Department Cost
1 Administration $0
2 Marketing $60,273
3 Construction $12,992
4 Engineering $10,577
5 Contracts $18,798
6 Estimating $78,108
7 Planning $51,206
Total $231,954
19.25% overhead charge $44,651.21
ticket fare and accomodation $23,810
Grand total $300,415.53
S.N
. Phase Start Finish Cost
1

1 Scope
Definition
March
6,2017
May
11,2017
$56,577.36
2. Estimation April7,
2017
June
7,2017
$14,8513.4
4
3. Review June 11,
2017
June 28,
2017
$15,744.32
4. Submission June
29,2017
July 3,
2017
$3788.64
All the required information is provided in this report and can see in attached documents.
Regards,
Rijul Gupta
(Bid coordinator)
2. RISK ASSESSMENT
In all the three projects, there are various risks which are identified and all of them are
mentioned below together with the mitigations in respect of them:
S. No. Description of risk Recommended mitigation
1 In respect of Excavation and
demolition activities
→ In all the big projects which
are related to high rise, there
are various operations with
respect to excavation,
construction and demolition
that are required to be carried
out in simultaneous manner.
So, due to this, in order to
conduct all activities in a
proper manner, it is needed
that an initial planning shall be
done and also, redesigning of
structure is to be performed.
→ It is needed that all the
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disruptions that take place in
construction activities shall be
reduced and for that, effective
planning shall be done (Ali and
Kamaruzzaman, 2010). Also,
total work that is to be done
should be divided into various
parts so that it can be achieved.
2 Risk of design: Omission and
other changes in drawings.
→ In the process of designing,
there are several changes that
take place and also, some
modifications are made at the
last minute. The process that is
to be carried out so that
detailing can be completed will
take a long time and by this,
overall period of project will
be extended.
→ In order to overcome all
disputes which take place, it is
required that good relations
shall be maintained in between
the contractor and clients.
→ Proper communication
system shall be developed so
that complete information can
be communicated in the best
possible manner.
3 Related to location of site → The risk in relation to safety
is present as street in which
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site is situated has high level of
people movement.
→ With respect to construction
work, there shall be effective
discussion that is to be
conducted by contractor with
council, all stakeholders and
neighbouring meetings.
4 Conflicts among all sub-
contractors
→ It is required that proper
environment shall be created
so that all members enjoy
working in specified field and
by this, team spirit is
developed.
→ All the work shall be
allocated to different
departments in a proper
manner and they shall be
explained clearly about what is
to be done in the provided
zone (Larham, 2010).
→ In the whole period of
construction, it should be
ensured that good coordination
and communication is
established.
→ A team member is needed
to guide all others who are
there in the team and for this, it
shall be noted that appropriate
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and skilled persons are elected.
5 Coordination and logistics
related risk in which
transportation, location and
other aspects are included.
→ Proper plan is to be made
regarding the construction site
in which tenants are there in
some portion and remaining is
utilised for construction. In
this, proper execution of plan
will be required to be done so
that project can be completed
in an efficient manner.
→ Effective work environment
is to be made and for the same,
it has to be ensured that
appropriate training is given to
all assigned workers by a
qualified leader. By doing so,
proper working is ensured.
→ There are various issues
which arise and in order to
deal with them in the best
manner, it is required that
professional people shall be
allocated.
6 Community and constraints
that are related to it. In the site
updates, related to
infrastructure is required by
various contractors.
→ The main factor that is
involved in making project a
success is that proper
engagement shall be made by
whole community.
→ Appropriate actions are to
be taken with respect to
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