Project Costing Assignment
13 Pages2388 Words205 Views
Added on 2020-05-04
Project Costing Assignment
Added on 2020-05-04
ShareRelated Documents
Project Costing for a Road Construction projectNameDate
Executive SummaryXC is a consultancy firm that has been involved in various engineering and construction projects mainly as the lead consultant. The business is in a growth phase and seeks to diversify into other sectors of the construction industry, specifically the road construction sector. This is a lucrative area that XC can leverage its experience to bid for. However, being a new area the company has not been involved in, it is essential that the risks inherent to such a move are well understood. To this end, a team undertook a risk management assessment for the envisaged road constructionproject s before the company can successfully bid for these jobs. A risk assessment reveals that defective materials used in road construction can have a high impact on such projects by resulting in reworks, roads of poor quality that does not meet the set standards, and on occasion, a failure by the client to accept the finished project. The risk has a high severity but the impact ishigh. To mitigate the risk, effective quality management must be done. Another risk was overshooting the project time duration, whose impact will be very high and can result in late project delivery that can also cause increased costs. This risk can be mitigated through effective project management systems and tools and plan the project well. Another major risk is overshooting the project budget, which has a high impact and the consequences include high project costs and the sponsor refusing to support the project, legal litigation or abandonment if costs are too high. Mitigation measures include using costing methods that are accurate, effectiveproject management, and strictly controlling project scope. Design changes while a project is in progress are another significant risk in road construction that has a very high impact and can result in overshooting time and budget allocations. The risk can be mitigated by using modern design techniques such as BIM and adhering to road design standards and regulations, implementing a quality management plan, and simulating designs to identify any problems. Natural phenomena such as weather conditions are another serious risk in road construction projects with a very high impact due to effects such as damage to constructed road sections. The risk can be mitigated by effectively planning construction times when weatherforecasts appear favorable and using high-quality materials for road construction. Poor stakeholder communication is also another risk whose impact is high whose outcome can be reduced or inadequate support by stakeholders. The risk can be mitigated using an effective stakeholder management framework. Unstable or poor soil conditions is another risk with very
high impact as it can cause major reworks; mitigation is by exhaustive soil testing and using additives to firm the soil. Preparing the budget will cost $ 27000 to cover feasibility studies, surveys, testing, and road design. The project to be considered include the National Network Program (Geelong Ring Road Stage 4B ‐ Anglesea Road to Princes Highway 22), the National Network Programme (Goulburn Valley Highway ‐ Nagambie Bypass), and the National NetworkProgramme (Geelong Ring Road Stage 4A ‐ Anglesea Overpass)
IntroductionThe organization, X Consult (XC) has primarily been involved in consultancy contracts in the engineering and construction sector, mainly in design development and providing guidance to various organizations on how to develop designs. However, as with all organizations, it is important that the company evolves and continues to grow by taking advantage of existing opportunities in the market. This calls for venturing into the complex but highly lucrative road construction sector, which, in addition, to being lucrative, carries a new set of risks the company must be conversant with. Because all projects have risks, this report provides an analysis and evaluation of all the risks inherent to the road construction project that the company intends to bid. The report commences by summarizing the risks inherent in road construction projects by developing a risk assessment for contracting such work. This is then followed by a cost estimate for preparing such a bid and the departments that will be involved to give the company and boardan understanding of the cost implication for bidding for such works. A schedule for the bid preparation will then be prepared and an appendix that summarizes the three projects backgroundwill be discussed, in the context of encountered risks for such a construction project. Risk Assessment in the Road Construction SectorThe table below is a table detailing the risk assessment for road construction projects Risk DescriptionConsequences of riskRisk probabilityRisk severityOverall Risk profileMitigation measures against riskDefective materials used in road constructionPoor quality roads that fail to meet quality standards leading to major reworks or failure to accept completed project by client or extensive reworksHVHHQuality management planInspection of raw materials frequently before procurement and after Safe storage of materials to ensure weather induced damage is limitedTesting at various stages on quality of roads (Asphalt quality tests) (Muhamid 2011)
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Risk Assessment for Various Similar Construction Projectslg...
|14
|3423
|430
Project Management Wired Cafélg...
|15
|2455
|13
Road Project Assignment (Doc)lg...
|28
|4277
|40
Development of a New Information Technology Centre – Stage 1lg...
|8
|1227
|91
CSM80001 Project Costing: Assignmentlg...
|16
|2885
|58
Risk Management Report: Glasgow Science Centre Tower Projectlg...
|8
|1484
|459