Project Management Assignment Sample - (Doc)

Project Administration

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Scenario 1....................................................................................................................................3
Scenario 2....................................................................................................................................6
Scenario 3....................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term project administration can be defined as a process of managing the all resources
of projects in an effective manner (Brichta and Sharp, 2013). Basically, it is not limited till the
management of resources but also this is linked with the supervision of a project's performance.
This is being done by project administrator under the guidance of project manager. Under project
report, three types of scenario are mentioned in which first scenario is about contract damages.
The second scenario is related to tendering and in the end third scenario is about termination for
convenience. All these scenarios are elaborated in an understanding manner.
MAIN BODY
Scenario 1.
Liquidated damage- It can be defined as those damages in which amount is being paid to the
injured party in aspect of contract breaching (Comerio, Castell and Cremaschi, 2013). This type
of agreement is being done by both of parties before starting of a project. This can be defined as
an example like if a contractor who fails to construct project on time then will charged on a
daily basis until project is completed. So overall, this may be defined as a kind of monetary
compensation which is given to an injured party in case of contract breaching. In general, the
liquidated damages are one of the best solution to the owners of protecting from loss in case of
failure of compilation of project on time by contractors.
Herein, the given scenario total value of contract is of $100 million and late delivery cost is of
$1450000 of different kind of activities. This project is being delivered by one of strategic
supplier and delivered late due to this company is facing the lose of $1450000 as per month.
Below the liquidated damage schedule is computed which is as follows:
1. Cost of retaining project team after the expected date= $300000
2. Fixed site cost= $ 100000
3. Leasing infrastructure and equipments= $ 500000
4. Extending the life of equipment and plans= $ 250000
$1150000

So the overall liquidated damages are of $1150000 due to late delivery of project in each month.
This is indicating that above company is facing the lose of $1150000 which is needed to be
recover from the supplier who is delivering the project to above company. Though, in the
provided list of cost which is occurring due to late delivery of project there are two more costs
which are opportunity damage and reputation loss. These costs will not be considered under
liquidated damage. This is so because these losses are not included as liquidated damages during
the agreement. Along with both of costs are under control of organisation which can be improved
on the basis of enhancing the plans and policies. The late delivery of project is not linked with
the loss of opportunities and reputation of companies.
Identification of damage schedule- This is important to find out the damages so that organisation
can claim to recover the losses amount (Cretzmeyer, Moeckli, 2014). In the absence of
identification of exact damage, this can be hard to get back money from suppliers. In the above
scenario of given brief, there are majorly four kind of expenses which are leading as liquidated
damages which are as follows:
 Cost of retaining project team after the expected date- This is occurring to above
company as a loss due to late delivery of their project. The company is forced to pay the
amount of retaining their project team till the compilation of project. Hence, it is being
categorised as liquidated damage whose amount will be paid who is working on
company's project.
 Fixed site cost- This cost is being paid by company on a monthly basis which is related to
the charge of Information technology equipments, insurance charge etc. It is incurring
due to late delivery of project by the supplier. This is so because if project is not
delivering on time then they are forced to pay additional charges of general and
administration expenses. So this cost is needed to be recover from the supplier who is
making delay in the providing the project. Hence, it is identified as a liquidated damage
by project manager of above company.
 Leasing infrastructure and equipments- Another cost which is being paid by above
company that is related to charge of leasing of infrastructure and equipments (Eller,
Gerber and Robinson, 2018). The reason for which this amount is paid by company is
late delivering of project and due to this company is require to pay extra leasing charge of

infrastructure and equipment charge. Its cost is of $500000 which will be pay back by
supplier to company. So overall because of this reason, this cost is considered as
liquidated damage by project manager.
 Extending the life of equipment and plans- Its cost is of $ 250000 which includes
extending the life of available equipment and plans. The reason for which life of
equipments and plants is increased is the late delivering of project. The project manager
of above company has taken this cost as a liquidated damage because this is leading as
additional cost on monthly basis. This cost is of one month and on a daily basis company
is paying $12500 (250000/ 20 working days). Hence, it is the main reason for which this
late delivering cost is being considered as liquidated cost.
Except from above these costs, rest of two costs are not considered as liquidated cost because
those costs are occurring due to lack of effective policies and strategies of company.
Risk associated with enforceability of the liquidated damages provisions: There are various
kind of risks which are linked with enforceability of liquidated damages provisions which are as
follows:
 Damages are difficult to estimate- This is a kind of risk which is related to facing issues
during determination of total damages (Frederickson, 2015). It is so because there are a
lot of damages which occurs due to late delivering of projects and this is difficult to
estimate which losses should be considered as liquidated damages and which one is not.
Such as in above company there are lot of damages which are occurring due to late
delivery and this is difficult to estimate right damages which are categorised under
liquidated damages.
 Bargaining power of parties- In this type of risk, the parties which are involved in the
project bargain with each other (Emery and Giauque, 2014). Specially, constructor of
project bargains to reduce the amount of liquidated damage which becomes a risk for
owner of project. Like in the scenario the total payable amount by supplier of project is of
$1150000 which can be bargained to minimize by supplier.
 Amount is reasonable not a penalty- Another risk associated with enforceability of the
liquidated damages provisions is that amount which is needed to pay is reasonable not a

penalty (Jones, Raman, 2014). This indicates that payable amount by project constructor
is not a penalty which is going be paid compulsory. It can be negotiated at the reasonable
level.
So these are the risks which are linked with the enforceability of the liquidated damages
provisions. The only way to overcome from these risks is to make a compatible agreement with
project constructor by making terms and conditions clear for both parties.
Scenario 2.
Overview of situation- There is an organisation of public sector who released a request for tender
before six months. After evaluation, of all the bidders there are only two tenders in which first
tender is meeting the criteria of organisation that is providing solution at least of 95%. While the
another bidder has failed to meet the expected criteria. Hence, the project team is going to choose
one tenderer who is providing best alternative solution.
Legal and ethical principles- This is important for companies to chose the tenderer in an effective
manner (McCurdy, 2013). Herein, the above given scenario there are majorly two alternatives
who are providing solution. This is important for company to follow legal and ethical principles
which are as follows:
Tender- It can be defined as a process of inviting bids for any specific project. Most of
companies invite tenders for their various kind of large projects. Like the government
companies, they invite bids for their projects. In this process, it is important to chose a best
alternative from various kind of bids for one project. There are some legal and ethical principles
which are as follows:
 Having basic knowledge of tendering law- This is one of the important principle for
selection of tenderer which is linked with having complete knowledge about tendering
law to the tenderer. Such as in the above public organisation's bidding, this is cleared that
it should be extent permitted by law.
 Clarify pre bid questions using designated process- As per this principle, it is important to
make clear about pre bid questions which means there should not be any confusion
between both parties. Like in the above public company's bidding clause, this is

important to clear that commonwealth company and tenderer will be responsible for each
other only if contract is signed by customer.
 Clients must be clear about their requirement in the tender document as well as in the
process of evaluation (Nonneman, 2013).
 There should be a clear understanding of rights and responsibility between companies
and tenderer.
So these are some common ethical principles for selecting the tenderer which are required to
follow by companies.
Recommendations for progressing the tendering selection: To above commonwealth
organisation, this is important to select an appropriate tenderer for their project. Hence, this is
essential for them to follow all the ethical principles in an effective manner. Below some
recommendations are mentioned that are as follows:
 They should chose a tenderer who is meeting the criteria of providing 95% solution of
their project.
 The company should clear terms and conditions to both of alternatives that there is no
any binding contract. As well as there will exist understanding in the case between parties
if contract is signed by customers.
 The company should make clear about compilation of project on time. Other wise in the
case of failure of there will be liquidated damages that should be paid by tenderer
(Osipov, 2016).
 In addition, this is important for companies to evaluate the background of both tenderer
so that it can become easy to choose one tenderer.
 As well as the tenderer should meet all the mandatory requirement which is needed by
company. Such as above company's requirement is to chose those tenderer who provide
95% solution.
 The company should ensure that tender should be lodged on time. This is one of the
important suggestion for them. This is because if tender will not complete on time then it
may lead to lose for company.
So these are some recommendation which should be followed by above public company.
Otherwise in the absence of these above recommendations this can be difficult for company to

chose best tenderer between two. Apart from it, one of the tenderer is meeting the criteria of
above company which is of providing 95% solution. Hence, they should focus to chose that
tenderer.
Scenario 3.
Overview- This scenario is about termination for convenience. Under it, the
commonwealth company's project manager is involved with a prime contractor to deliver an
important project. The project manager's contract with prime contractor is based on termination
for convenience that consists that “ in the case of any other right, commonwealth can dismiss the
contract by informing to contractor. If contract gets terminated then commonwealth's liability
will be in two types. First one is to make payment on the basis of task performed till the date of
termination of project. Second is to pay any cost which is incurred by contractor regarding to
project.
Further, the portfolio minister guided to project manager to leave from the contract with
prime contractor. This is so because the commonwealth company is facing budget pressure and
financial issue. So it is all about the overview of scenario that is mainly based on termination of
convenience. Under this scenario's task those options are mentioned which are available for
project for executing ministerial direction.
Termination of convenience- It may be defined as a kind of clause which allows one or
both of parties to terminate the agreement (Parry, Barriball and While, 2015). Herein, it is
important to know that this type of termination is done without any particular reason. In the
aspect of above scenario's the project manager's contract with prime contractor is going to be
terminated because of weaker financial position of commonwealth company. Below some
options are described which are available to maintain the project:
 By improving the budgetary condition- The commonwealth public sector company is
facing issue of higher budget pressure which is needed to be overcome as soon as
possible (Pereira-Caro and et. Al, 2015). Eventually, it is the main reason because of this
minister of above company is forcing to terminate the project manager's project with
prime contractor. Hence, it is important to improve budgetary position and this can be
done with the help of effective estimation of budget. This contains rightly projection of

future expected income and expenditures. If commonwealth company's project manager
will focus on effective budget planning then there will be less possibility that their project
will be terminated by minister of above company. It is so because if budgetary pressure
will be removed from them then they will not prevent project manager to involve in any
other project.
 Enhancing economic condition- It is also an another reason for which the project is going
to be cancelled of project manager (Rondinelli, 2013). In this condition, this is important
for project manager to improve the economical condition of commonwealth public sector
company. In the case of improved economic condition of above company, this will be
easier for them to formulate the both of project which are being operated by their project
manager. For this purpose, it is essential for project manager to focus on company's
project so that cost can be controlled below the estimation. Hence, the economic
condition of above company will be improve and the minister of company will not
terminate their project.
 By focusing on own roles and responsibilities- This is an another option by which project
manager's additional project can be saved from terminating (Sutherland, 2013). In broad
sense, the project manager should complete own roles and responsibilities in an effective
manner. Eventually, the role of a project manager is to focus on performance of project as
well as to management of all resources which are needed for completing any project.
Herein, the aspect of above commonwealth company's project manager this is important
to focus on company's project so that it can benefit to company. As well as manager
should make ensure that there is enough availability of all resources and all are allocated
in a better way. If above company's manager will do so then there will be possibility that
ministerial committee will not terminate his project that is being shared with prime
contractor.
So overall these are the option by which project of commonwealth company's project manager
can be saved from termination.
Assessment of legal risk- This is important to assess the risk which is linked with any
kind of project (Thangjam, 2015). Herein, the context of above commonwealth company risk is
related with project manager who is operating into two various projects. So mainly the risk is
about failure of company's project because the project manager is dealing in another project

except from company's project. The risk is related to poor financial condition of company as well
as loss from project. All these risks can be overcome if the project manager manage both the
projects in an effective manner. In addition, the company is facing problem of poor budgetary
system and economical condition. So these are risks which can be minimised by proper
management of projects.
CONCLUSION
On the basis of above project report, it has been concluded that project management is an
essential part for making a project success. In the absence of it this can be difficult to complete
the project on time. Under project report, three scenarios are concluded. In the first scenario,
liquidated damages are calculated as per given list of late delivering of project. Along with risk
associated to liquidated damage provision is also concluded. In the second scenario, principle for
selection of a tenderer as well as recommendations are also mentioned. In the last scenario,
termination for convenience is described in that various kind of alternatives are concluded which
can save the project of manager from termination.

REFERENCES
Books and journals:
Brichta, A. M. and Sharp, P. E., 2013. From Project to Production: The Commonwealth and
International Library: Social Administration, Training Economics, and Production
Division. Elsevier.
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services for citizens: a new model for the description of public administration services.
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administration collaboration with community providers: The lodge project for homeless
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Eller, W. S., Gerber, B. J. and Robinson, S.E., 2018. Public administration research methods:
tools for evaluation and evidence-based practice. Routledge.
Frederickson, H. G., 2015. Social Equity and Public Administration: Origins, Developments, and
Applications: Origins, Developments, and Applications. Routledge.
Jones, C. T., Raman, V. T., DeVries, S., Cole, J. W., Kelleher, K.J. and Tobias, J.D., 2014.
Optimizing anticonvulsant administration for children before anesthesia: a quality
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McCurdy, H. E., 2013. Learning from history: Low-cost project innovation in the US National
Aeronautics and Space Administration. International Journal of Project Management.
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Nonneman, G., 2013. Development, administration and aid in the Middle East. Routledge.
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L., Lockett, T., Roberts, S. A., Crozier, A. and Augustin, M. A., 2015. Chronic
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Rondinelli, D. A., 2013. Development projects as policy experiments: An adaptive approach to
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Sutherland, K., 2013. Applying Lewin's change management theory to the implementation of
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Thangjam, H., 2015. Colonial administration, knowledge and intervention: colonial project of
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Y. Emery, G.E. and Giauque, D., 2014. The hybrid universe of public administration in the 21st
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