Project Costing and Risk Assessment for Construction Projects in Australia

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.
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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:
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