Project Costing and Risk Assessment for Construction Projects in Australia

This report analyzes the risk factors in bidding and contracting of construction projects in Australia and provides recommendations for managing the risks properly. It also prepares the plan for the cost of the bid and schedules the tasks for managing the operations for the final bidding process for the identified projects.

Project costing

Table of Contents
Introduction................................................................................................................................1
Part 1: Executive summary........................................................................................................1
Part 2: Risk assessment and recommendations..........................................................................2
Part 3: Costing............................................................................................................................6
Part 4: Scheduling......................................................................................................................8
Planning of bid preparation....................................................................................................8
Part 6: Background Research and Report................................................................................14
Background analysis of the projects....................................................................................15
Conclusion................................................................................................................................17
References................................................................................................................................19

List of figures
Figure 1: Gantt chart................................................................................................................12
Figure 2: WBS..........................................................................................................................13

List of tables
Table 1: Risk matrix...................................................................................................................5
Table 2: Costing.........................................................................................................................7
Table 3: Schedule.......................................................................................................................8
Table 4: Resources and department.........................................................................................14
Table 5: Background analysis of the project............................................................................16
Table 6: Risk matrix.................................................................................................................17
Table 7: Risk assessment.........................................................................................................18

Introduction
Project costing and estimation of time is essential for managing the project and proper
planning of the operations to meet the specification. According to the given scenario, the
report will find out the information related to the bidding and contracting approach for big
construction projects (Kerzner and Kerzner, 2017, p. 21). The report will analyze risk factors
in bidding and contracting of the construction project and provide the recommendations for
managing the risks properly. Moreover, the report will prepare the plan for the cost of the bid
and scheduled the tasks for managing the operations for the final bidding process for the
identified projects. The cost planning for bidding project will involve the resources, timing
and typical contracting elements that have a significant impact on the decision making for the
expanding the business in new areas.
Part 1: Executive summary
To: CEO of the company
From: Bid coordinator
Date: 31st October 2018
Subject: Proposal for developing new areas of building
The report is mainly intended to explore and evaluate the information related to the
construction projects undertaken in Australia. The three major projects being selected for the
report are Pacific highway upgrade Warrell creek to Nambucca heads, Princes highway
upgrade for foxgroung and berry bypass and Aubin grove train station and Russell road
upgrade. The report would be focusing upon the contracting risks faced within the
construction industry. It would describe the selected projects in detail along with the risk
impacting the projects. The report has identified that there are various risks involved in
contracting in the construction industry. The major risks being identified in contracting are
the Legal risk, Contract language, Project risk, Liability risk, Government contract risk and
business risk which could impact the contracts of construction project between two parties. It
is been found that all the three projects are been initiated after the year 1990 in Australia and
had come across various risks as well.
1

The total working time for the project will be around 5 months from 4th March to 5th
August 2019. The total cost of human resources for managing the bidding and contracting
plan for new construction projects would be $404,720.00. The major departments that will
contribute to planning and implementation of scheduled activities are administration,
marketing, construction, engineering and estimating as well as planning. The bidding
production manager will try to manage the tasks according to the Gantt chart which will help
in monitoring and analysis of the performance of the groups and individual to complete the
actions. For the current project of bidding and contracting, the WBS will focus on the
planning, scope management, estimation, review, and submission of the information for the
final bid.
The projects were mainly carried out by using the Single Source Responsibility and
Design-Build Project Delivery method in which the construction companies were the sole
responsibility for the project delivery to their clients. It further identified that these projects
included various risks which impacted their costs and timeframes to the great extent.
Moreover, the major risks being identified within the projects of Pacific highway upgrade
Warrell creek to Nambucca heads was project risk which impacted its cost and time
schedules. The Princes highway upgrade for foxgroung and berry bypass project came across
the safety risk due to the limited availability of resources and safety concerns of the workers
at the road. The report even revealed that operational risk was the major risk which impacted
the project of Aubin grove train station and Russell road upgrade.
Part 2: Risk assessment and recommendations
Risk refers to the possibility of loss and injury in the project that influence and overall
performance and progress of the project. A project risk is an uncertain event or condition that
affects the planning and implementation of project operation and achievement of the project
objectives (Turner, 2014, p. 11). The process of risk management focuses on the
identification and analysis of the potential risks in the particular project and planning of the
mitigation functions. The project manager or authority that handling the project is responsible
for developing the plan for analyzing the risks and look for minimizing the impact of risks on
the project.
Major risk in contracting for construction project:
2

For the expansion of business, the organization is focusing on the three major
construction projects such as Pacific highway upgrade Warrell creek to Nambucca heads,
princes highway upgrade for foxgroung and berry bypass and Aubin grove train station and
Russel road upgrade. These are big construction projects in Australia that can help the
organization to expand the business in new areas. The company is looking for bidding and
contracting for these projects. However, the organization has good knowledge of bidding and
contracting of the projects that can help in acquiring these projects but there are some risks in
the contracting process (Lee, Lam, and Lee, 2015, p. 116-127). The lack of consideration of
these risks can influence the approach and actions of the company. In order to develop the
contract for projects, management will face the following risks:
Design risk:
Contract insurance requirements for design professionals like architects, engineers
should include auto and commercial general liability. The limits of design professionals’
professional liability coverage are particularly important. Because a professional liability
policy typically will cover losses arising on all of a design professional’s projects, not just
your project, it is important that the aggregate limit be sufficiently high. Indeed, owners often
consider requiring excess limits for professional liability coverage or requiring that the
coverage be project specific either through a separate project policy or sub-limits applicable
only to the project (Beazer, and Blake, 2017, p. 1372). For large projects, an owner also may
wish to consider obtaining owners protective professional liability insurance coverage, which
indemnifies the owner directly for losses arising out of the design professional’s professional
negligence that exceeds the limits available under the design professional’s own professional
liability policy.
Legal risk
The legal risks mainly include compliance with the regulations, contracts, legal action
risk, and intellectual property rights. It is very important for the project owners to bring these
aspects into considerations so that could manage the risk effectively. The projects could also
face some legal issues concerning when, how and at what price the project would be
delivered, what project is to be delivered, the consequences in case of any defects,
infringements, delays, and issues of coordination among the parties (Duclos-Gosselin,
Rigaux-Bricmont, and Darmon, 2015, p. 1-13).
3

Liability risk
This risk in the contract bounds the project owners with various legal accountabilities
which must not be overlooked by the parties. It mainly involves the breach of contract issues,
alleged confidentiality disclosures, warranty problems, disputes, and litigation while
implementing the project practices specifically. Violation of these aspects could lead the
parties towards severe legal actions or penalties out of the contract.
Business risk
This risk arises due to the poor relationships, instability, declining revenue or profits,
failure to achieve the objectives, loss of goodwill, weak brand integrity and bad public
relations. These factors could highly impact the project as well as the contract. The project
owners must consider effective measures to manage the risk and avoid certain consequences
out of the same.
Contract language
This is also one of the risks to the parties which lie in the contract itself. It has been
found that the construction contracts are often flooded with unclear language which makes
complicated to identify reimbursable project costs (Hefetz, Warner, and Vigoda-Gadot, 2014,
p. 365-386). It is important that the contract is drafted with clear and understandable language
so that the parties could identify the scopes, clauses, and provisions related to the contract.
The concise and clear language of the contract would also overcome the risk to owner related
to the possible issues over project costs.
Government contract risk
It is essential for the parties to meet the government contractual regulations like
environmental safety and security, human rights and health and safety measures within the
project. The parties must ensure that the project does not breach any of the contractual
elements throughout the contract.
Ethics risk
This is another riskier aspect where the parties could not overlook the ethical
considerations while commencing the contract for the project. Ethics are the set rules and
standards to be followed by the parties while initiating any of the acts. The reasons for
4

breaching a contract could include the ethical issues or considerations which might be evident
in the durability of the contracts are moral relativism and cultural relativism.
Commercial contract risk
This type of risk mainly impacts the work environment of the project to be initiated. It
mainly involves the entities such as licensors, sellers, prime contractors, buyers,
subcontractors and all other parties concerned to the commercial agreement. It is very
important for the entities to manage the risk so that to survive in the current challenging
business environment.
Operational risk
The operational risk differs on the basis of the contract type and the compensation
model of the construction model. It has been found that the degree of this risk is
proportionate to the project size and also depends upon how the risk management is carried
out (Blocher, 2015, p. 27).
Project risk
Project risks are mainly the risk towards the liabilities, scopes, objectives, costs, time
and the outcome of the project. It has been found that many of the owners or parties tend to
shift their project risks to other contracting parties mostly the contractors through disclaimer
clauses. The clauses mainly attempt to transfer the risk of one party which could be a legal
liability to the other party through contractual terms.
The risk matrix below indicates the most significant risk involved in the contracting
of the construction project:
Table 1: Risk matrix
RISK IMPACT SOLUTION
Legal risk
This type of risk could lead the
parties towards legal actions or
penalties out of the
consequences.
Abiding by the regulations and
legislations involved in the
contract would help in reducing
the risks of legal penalties to the
project.
Contract language The unclear or vague language Ensuring to include clear and
5

in the contract could result in
conflicts between the parties
and even impact the
construction project extensively
understandable language in the
contract would eradicate the
risk of any misunderstanding or
conflict among the contractual
parties.
Project risk
The risk highly impacts the
scopes and objectives of the
project as the parties’ transfers
the obligation from one another
under the disclaimers (Mouzas
2016, p. 50-62). It even lead to
delays and cost overruns to the
project
The contracting parties must
ensure to meet their liabilities
and avoid transferring the
clauses to one another
Liability risk
Violation of the elements
included contract could lead the
parties towards severe legal
actions or losses out of the
contract.
It is essential to understand the
liability and avoid any of the
breach out of the contract.
Government contract risk
This risk could also impact the
parties by legal actions or fines
out of the breaches.
The rules and regulations must
be met effectively.
Business risk
This risk impacts the outcome
of the proposed project in terms
of either profits or losses.
It is important to maintain
healthy relationship with the
parties, develop positive brand
value and public relations to
manage the risk specifically
(Hou, J. and Neely, A., 2018, p.
2103-2115).
Part 3: Costing
The costing of biding project and contracting will focus on the requirements and
utilization of the resources that have a significant impact on the estimation of the budget.
There are various resources that involve in the planning and implementation of the bidding
6

and contracting plan for the organization to achieve the goals and objectives. The estimation
of the cost of the whole plan will involve the salary of the human resources, documentation,
business unit overheads, travelling, and accommodation (Marsh, 2017, p. 32). The total
working time for the project will be around 5 months from 4th March to 5th August 2019.
The salary of the human resource team will be decided by the HR and administrator team to
identify the estimated budget.
Table 2: Costing
Name Position Total
working
hours
Salary per
hour
Total Salary
Chintan Patel Bid coordinator 1352 $70 $94640
Lucy Wang Bid production
manager
1360 $70 $95200
John Cavenor Production assistant 136 $30 $4080
Design Design engineer 920 $50 $46000
Contract Contract 584 $50 $29200
Construction Construction
engineer
800 $50 $40000
John Robinson Scheduler 704 $50 $28160
Annabel Nguyen Planning engineer 304 $40 $12160
Chen Wang Lead estimator 248 $30 $7440
Janice NG Estimator 400 $30 $12000
Andy Akdogan Estimator 552 $30 $16560
Alan Woden Estimator 160 $30 $4800
Joanne Shedden Clerical support 248 $30 $7440
CEO CEO 1624
7

Total $404,720.00
The total cost of human resources for managing the bidding and contracting plan for
new construction projects would be $404,720.00. This is between the estimated costs
proposed by the organization $ 400 billion to $1 billion. The organization will provide
estimated salary and benefits to the project team members that will help to keep them
motivated and engaged in working. The costing of the project does not include other
expenses related to the project (Kaya, 2018, p. 18). The human resources and their travelling
and accommodation costing are considered for developing the budget planning of the
contracting and bidding project.
Part 4: Scheduling
In order to bid and develop the contract for the three construction projects from
Australia, the management team will develop and follow a scheduled plan. Scheduling in the
project management refers to a mechanism to communicate what tasks need to be get done
and what organizational resources will be allocated to complete those tasks within a specific
timeframe (Larson et al., 2014, p. 28). The production manager and coordinator will develop
the plan of scheduling of the activities by considering the standards and objectives of the
bidding and contracting plan. The activities that involve in scheduling of the task will based
on the available human resource, time and scope of the project to complete the tasks
according to desired functions.
Planning of bid preparation
Table 3: Schedule
Task
Name
Durati
on
Sta
rt
Fini
sh
Predeces
sors
Resource
Names Cost
Project
106
days
M
on
04-
03-
19
Mo
n
05-
08-
19 CEO
$404,72
0.00
8

Planni
ng
26
days
M
on
04-
03-
19
Tue
09-
04-
19
Coordinator ,
Lucy
Wang ,CEO,C
onstruction ,D
esign ,John
Robinson
$118,00
0.00
Recei
ve bid
documen
ts &
decide to
bid (Plan
for bid)
11
days
Mo
n
04-
03-
19
Tue
19-
03-
19
Annabel
Nguyen ,CEO,
Joanne
Snedden ,Contr
act ,Coordinato
r ,John
Robinson ,Luc
y Wang
$27,280.
00
Brief
bid
participa
nts &
stakehold
ers
10
days
We
d
20-
03-
19
Tue
02-
04-
19 3
John
Robinson ,Luc
y
Wang ,CEO,C
oordinator ,Jani
ce Ng
$17,600.
00
Site
Project
Evaluatio
n visit 5 days
We
d
03-
04-
19
Tue
09-
04-
19 4
Construction ,
Design ,Lucy
Wang ,Contrac
t ,Coordinator ,
Joanne
Snedden
$12,800.
00
Scope
definitio
n
14
days
W
ed
10-
04-
19
Thu
02-
05-
19 5
CEO,Lucy
Wang ,Contra
ct ,Coordinato
r ,Design
$57,360.
00
9

Const
ruction /
Design
prepare
build
strategy 9 days
We
d
10-
04-
19
Wed
24-
04-
19 4
Construction ,
Coordinator ,D
esign ,Lucy
Wang
$17,280.
00
Engi
neering
prepare
bid
design &
sizing 5 days
Fri
26-
04-
19
Thu
02-
05-
19 7
Alan
Wooden ,Andy
Akdogam ,Joh
n
Cavenor ,Const
ruction ,Coordi
nator ,Design ,
Lucy Wang
$13,200.
00
Estima
tion
34
days
Fri
03-
05-
19
Thu
20-
06-
19 8
Andy
Akdogam ,Jan
ice Ng
$89,680.
00
Quan
tity
takeoff
and BOQ 4 days
Fri
03-
05-
19
Wed
08-
05-
19 7,8
Annabel
Nguyen ,Joann
e
Snedden ,Contr
act ,Coordinato
r ,Lucy Wang
$8,320.0
0
Prici
ng
standards
for bid 4 days
Th
u
09-
05-
19
Tue
14-
05-
19 10
Janice
Ng,Joanne
Snedden
$1,920.0
0
10

Prici
ng of
BOQ 3 days
We
d
15-
05-
19
Fri
17-
05-
19 11
Coordinator ,A
nnabel Nguyen
,Chen
Wang ,Design ,
Joanne
Snedden ,Lucy
Wang
$6,960.0
0
Plann
ing of
Project
12
days
Mo
n
20-
05-
19
Tue
04-
06-
19 12
Construction ,
Coordinator ,L
ucy
Wang ,Alan
Wooden ,Andy
Akdogam ,Con
tract ,Design ,J
ohn Robinson
$38,400.
00
Risk
assessme
nt of
project 7 days
We
d
05-
06-
19
Fri
14-
06-
19 13
John
Cavenor ,John
Robinson ,Luc
y
Wang ,Annabel
Nguyen ,Coord
inator
$14,560.
00
Set
continge
ncy &
allowanc
es 4 days
Mo
n
17-
06-
19
Thu
20-
06-
19 14
Coordinator ,Jo
anne Snedden
$3,200.0
0
11

Revie
w
19
days
Fri
21-
06-
19
We
d
17-
07-
19 15
Chen
Wang ,Design
,CEO,Constru
ction ,Coordin
ator ,Lucy
Wang
$87,680.
00
Prepa
re Draft
Bid
documen
t 5 days
Fri
21-
06-
19
Thu
27-
06-
19 15
Construction ,
Coordinator ,Jo
hn
Cavenor ,Contr
act ,Design ,Lu
cy Wang
$12,800.
00
Bid
clarificati
on
meeting
(on site) 3 days
Fri
28-
06-
19
Tue
02-
07-
19 17
Annabel
Nguyen ,Lucy
Wang ,Alan
Wooden ,CEO,
Coordinator
$5,040.0
0
Revie
w bid
with
stakehold
ers 2 days
We
d
03-
07-
19
Thu
04-
07-
19 18
Coordinator ,Ja
nice Ng,Lucy
Wang ,Annabel
Nguyen ,CEO,
Construction
$4,160.0
0
12

Conv
ert Draft
to Final
Bid 5 days
Fri
05-
07-
19
Thu
11-
07-
19 19
Contract ,Coor
dinator ,John
Robinson ,And
y
Akdogam ,Che
n
Wang ,Constru
ction ,Design ,
Lucy Wang
$16,000.
00
Senio
r mgt
Review 4 days
Fri
12-
07-
19
Wed
17-
07-
19 20
CEO,Chen
Wang ,Constru
ction ,Coordina
tor ,Design ,Lu
cy Wang
$8,640.0
0
Submi
ssion
13
days
Th
u
18-
07-
19
Mo
n
05-
08-
19 21
Lucy
Wang ,Andy
Akdogam ,Co
ntract ,Coordi
nator ,John
Robinson
$52,000.
00
Finali
ze bid for
CEO
review 4 days
Th
u
18-
07-
19
Tue
23-
07-
19 20
John
Robinson ,Ann
abel
Nguyen ,Const
ruction ,Coordi
nator ,CEO,De
sign ,Lucy
Wang
$10,560.
00
13

CEO
Final
Review 4 days
We
d
24-
07-
19
Mon
29-
07-
19 23 Lucy Wang
$2,240.0
0
Finali
ze
documen
ts for bid
submissi
on 4 days
Tu
e
30-
07-
19
Fri
02-
08-
19 24
Construction ,
Contract ,Coor
dinator ,Design
,Lucy
Wang ,Annabel
Nguyen ,CEO
$10,560.
00
Subm
it Bid by
12 Noon 1 day
Mo
n
05-
08-
19
Mon
05-
08-
19 25 Lucy Wang $560.00
The project scheduling will be beneficial for planning and management of bidding
and contracting project of the organization to expand the business in new areas. According to
the schedule of the project, the start date of the project will be 4th March 2019 and completed
by the 5th of August 2019 (Excluding holidays). The estimated cost of the project would be
$404,720.00 that offered by the financial department of the organization. The major resources
that will contribute to the planning and completion of the project involve CEO, bid
production manager, planner, coordinator, estimator, and scheduler. Moreover, the resources
will also include the clerical support, design engineer, construction engineer, and contractor.
Apart from that, the major departments that will contribute to planning and implementation of
scheduled activities are administration, marketing, construction, engineering and estimating
as well as planning. All project team members will try to complete the allocated tasks as per
the estimated time and standards to meet the desired objectives of the bidding (Cooper, 2017,
p. 17).
14

Gantt chart
Figure 1: Gantt chart
The Gantt chart will help to identify the interrelationship among the tasks and specific
time and resources of the project operation. The bidding production manager will try to
manage the tasks according to the Gantt chart which will help in monitoring and analysis of
the performance of the groups and individual to complete the actions. Additionally, the
consideration of proposed Gantt chart activities and time will support to manage the biding
plan as per the standards (Kerzner, 2018, p. 19). The bidding and contract planning requires
the follow up of the Gantt chart activities to meet the objectives.
WBS
15

Figure 2: WBS
Work Breakdown Structure (WBS) is a key project deliverable that helps the project
manager to divide the operations into smaller tasks to get the best results and effective
utilization of resources. For the current project of bidding and contracting, the WBS will
focus on the planning, scope management, estimation, review, and submission of the
information for the final bid (Martinelli, and Milosevic, 2016, p. 34). The proper
consideration of WBS is helpful for a project manager to analyze the requirements of human,
financial and other resources for the project. in addition to this, the proper consideration of
WBS activities will also helpful for identifying and minimizing the risks in the bidding and
contracting project. Apart from that, knowledge about the smallest activity in the project
gives the advantage for allocation of tasks and resources to the team members.
Resources and departments:
Following are the key resources that will take part on the biding and contracting
project for the organization:
Table 4: Resources and department
Name Department Position
Lucy Wang Marketing and sales Bid production manager
16
Project
Planning
Receive bid
documents & decide
to bid (Plan for bid)
Brief bid participants
& stakeholders
Site Project
Evaluation visit
Scope definition
Construction / Design
prepare build strategy
Engineering prepare
bid design & sizing
Estimation
Quantity takeoff and
BOQ
Pricing standards for
bid
Pricing of BOQ
Planning of Project
Risk assessment of
project
Set contingency &
allowances
Review
Prepare Draft Bid
document
Bid clarification
meeting (on site)
Review bid with
stakeholders
Convert Draft to Final
Bid
Senior mgt Review
Submission
Finalize bid for CEO
review
CEO Final Review
Finalize documents
for bid submission
Submit Bid by 12
Noon

John Cavenor Marketing and sales Production assistant
Design Engineering Design engineer
Contract Contracts Contract
Construction Construction Construction engineer
John Robinson Planning Scheduler
Annabel Nguyen Planning Planning engineer
Chen Wang Estimating Lead estimator
Janice NG Estimating Estimator
Andy Akdogan Estimating Estimator
Alan Woden Estimating Estimator
Joanne Shedden Estimating Clerical support
CEO Administration CEO
The planning and implantation of actions related to bidding and contracting of the
construction projects, the mentioned human resources and departments are responsible. These
will monitor and perform the activities according to schedule and look to meet the objectives
(Tonchia, 2018, p. 117-129). The proper accountability and involvement in the approach of
managing the operation will influence the effectiveness of the project.
Part 6: Background Research and Report
The specific project being selected to conduct the report are Pacific highway upgrade
Warrell creek to Nambucca heads, Princes highway upgrade for foxgroung and berry bypass
and Aubin grove train station and Russell road upgrade. All the three projects are been
initiated after the year 1990 and had come across various risks as well. The projects meet the
criteria of the key aspects of the proposed report which displays sufficient information and
understanding related to the same.
17

Background analysis of the projects
Table 5: Background analysis of the project
Projects name /
description
Pacific highway
upgrade warrell
creek to nambucca
heads
Princes highway upgrade
for foxgroung and berry
bypass
Aubin grove train
station and Russell
road upgrade
Client name Roads and Maritime
Services
Roads and Maritime Services
and NSW government
Public Transport
Authority (PTA) and
Main Roads WA
(MRWA)
Project manager Fernando Fajardo Saman Liyanaarachchi Sarah Cheung
Major constructions
companies
ACCIONA
Infrastructure,
Ferrovial joint venture
and Roads and
Maritime Services
Seymour Whyte
Constructions
Georgiou Group
Location Macksville, New south
Wales , Australia
Berry NSW Australia
Start and finish date December 2014 to 29
June 2018 (About
pacific highway
upgrade warrell creek
to nambucca heads,
2018)
January 2015 to July 2018 February 2015 – June
2017
Project delivery
system
Single Source
Responsibility and
Design-Build Project
Delivery
Single Source Responsibility
and Design-Build Project
Delivery
Single Source
Responsibility and
Design-Build Project
Delivery (About Aubin
grove train station &
Russell road upgrade,
18

2018)
Key construction
methods
innovative and
sustainable
construction method
was used
Concrete road construction
method
Precast Method of
Bridge Construction
Value of project
$830 million
$580 million (About princes
highway upgrade for
foxgroung and berry bypass,
2018)
$71.4 million
Risk that contribute
to time and cost
overrun
The improper
execution of the design
led to the project risk
and resulted in the cost
and time overrun.
The major risk was safety
risk which impacted the
project by various incidents.
The higher risk of safety of
the labour made the project
authorities implement
additional measures which
resulted in cost overrun.
Operational risk was
that been faced by the
authorities. There was
space constraint for
working which required
more time to complete
the project.
Table 6: Risk matrix
Likelihood Minor Moderate Major
1 2 3
A Almost
Certain
Medium High Extreme
B Likely Medium Medium High
C Moderate Medium Medium High
D Unlikely Low Medium Medium
E Rare Low Medium Medium
19

Table 7: Risk assessment
Project Risk identified Impact of risk Measures to treat
risk
Pacific highway
upgrade warrell creek
to nambucca heads
Geotechnical,
environmental, project
risk
The higher risks of
environmental impacts
made the project to
invest upon the
investigations and
excavations for the
highway.
Effective mitigation of
the risk could be
undertaken by
acquiring expert advice
upon the geotechnical
design and construction
activities
Princes highway
upgrade for foxgroung
and berry bypass
Safety, management
related risk and
logistical risks
There was a safety
concern of the workers
due to the limited space
at the road. The roads
were open for traffic
which confined the
construction areas and
increased the risk of
accidents over it.
Additionally, the
transportation facilities
for the raw material
and availability of the
labour also impacted
the project (Clark et al.,
2016, p. 4615-4622).
Specific safety
measures and
equipments could have
helped to overcome
with the incidents and
reduce the risk of
safety.
Aubin grove train
station and Russell
road upgrade
Operational risk and
environmental risk
The risks impacted the
project majorly in
terms of delays in the
set timeframe. The risk
involved safety issues
In this case, the risk
have to be avoided as
the space for
construction could not
be increased and have
20

due to the lack of space
for construction
to be managed in the
same risk.
Conclusion
From the above study, it has been considered that project planning and
implementation requires proper analysis of operations and activities to meet the objectives.
The CEO of construction organization can consider the developed bidding and contracting
plan for expending the business through undertaking the new projects. The report has
discussed about major risks in the contracting activities that involve operational, legal,
language and validity. Moreover, the report has developed and presented the risk matrix for
mitigating the 6 major risks of the contracting. In addition to this, the report has estimated the
costing of human resources involved in the contracting and bidding project including the
travelling and accommodation expenses. Apart from that, the report has developed the
scheduling plan for managing and implementing the actions for the project. Moreover, the
report has explained the use of Gantt chart and provided the WBS of whole planning for
dividing the activities into small operation for proper monitoring. In the end, report has
provided the brief background of projects that are selected for bidding and contracting.
21

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Online
About pacific highway upgrade warrell creek to nambucca heads, 2018 [Accessed through]
< https://www.rms.nsw.gov.au/projects/northern-nsw/warrell-creek-to-nambucca-
heads/index.html > [Accessed on 27th October 2018]
About princes highway upgrade for foxgroung and berry bypass, 2018 [Accessed through]
<https://www.transport.nsw.gov.au/newsroom-and-events/media-releases/berry-bypass-
opens-to-traffic> [Accessed on 27th October 2018]
About Aubin grove train station & Russell road upgrade, 2018 [Accessed through] <
http://www.pta.wa.gov.au/projects/completed-projects/aubin-grove-station/russell-road-
upgrade > [Accessed on 27th October 2018]
23