Project Execution Planning and Management: Construction of a Retail Showroom in New South Wales, Australia

This article discusses the project execution planning and management for the construction of a retail showroom in New South Wales, Australia. It covers topics such as delivery method, financial contract, procurement method, risk management plan, and quality management plan.

Running head: PROJECT EXECUTION PLANNING AND MANAGEMENT
Project execution planning and management: “construction of a retail showroom in New South
Wales, Australia”
Name of the student:
Name of the university:

1PROJECT EXECUTION PLANNING AND MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1Project Background................................................................................................................2
3. Delivery method..........................................................................................................................2
4. Financial contract.........................................................................................................................4
5. Procurement Method...................................................................................................................7
6. Risk Management Plan..............................................................................................................11
7. Quality Management Plan.........................................................................................................12
References......................................................................................................................................13

2PROJECT EXECUTION PLANNING AND MANAGEMENT
1. Introduction
In this assignment, the APIC CONSULTANT has undertaken a project. The project is
“construction of a retail showroom in New South Wales, Australia”. The project needs a
particular delivery system that has to be selected in order to carry it out. It also needs a finance
contract, procurement method, risk management and quality management plan. All the factors
have been discussed below in details for the project.
2. Discussion
2.1Project Background
The project of constructing a retail showroom needs to consider various factors. These
factors include delivery method, risk management, finance contract and many more. These
factors are considered and decisions are taken accordingly. These decisions are taken in such a
way that it affects the project in a positive way. In this particular project the design has to made.
According to the design, the site has to be decided considering the quality of land. The resources
are to be decided considering their prices. These factors are to be considered while the project is
undertaken.
3. Delivery method
The selected project can be delivered in various ways. The delivery methods are Design-
Bid-Build and Design-Build. The first two construction methods are used nowadays. The
methods are described below and one of these methods is selected for this particular project.

3PROJECT EXECUTION PLANNING AND MANAGEMENT
Design-Build: this delivery method maintains a joint venture between the designer and
general contractor. This system consist both the parties in a same entity. This makes it easier for
the contractor through the whole project. This system also has a one-point contact where in case
of any queries and concerns regarding the project, the owner needs to contact the design builder.
This system provides a fastest method of delivery. The elimination of bidding process saves a
definite amount of time. After all the building details are finalized, preparation of site can be
carried out. One entity would be responsible in case of any problem. This eliminates the liability
of the owner for construction as well as design issues.
The design builders have a stock of the recent construction costs. This helps the design to
be created using the cost-effective methods and resources. With the help of this method the
design and construction services overlap each other in order to enable the fastest delivery of the
project. Along with this, it allows the owner to make changes in the design before it is finalized.
This system allows the owner to have just one contract with the design builder instead of having
two different contracts with the general contract and the architect. This eliminates risks from the
behalf of the owner.
Design bid build: this system has different entities for the construction and design part of
project. The general contractor and architect do not have any connect among them until the plans
are finalized for the project. This system goes through a bidding, construction and design phase.
This is because in this phase the construction and design phase are not integrated. As a result,
this system takes more time than expected. In this system, every phase needs to be implemented
separately. The next phase cannot be started until the previous phase s completed. If the
construction cost is increased due to the increase in material cost, the project might face delays.

4PROJECT EXECUTION PLANNING AND MANAGEMENT
The plans need to be finalized before the project is started. This step increases the overall time
required for the project.
In this particular project, the Design-build delivery system would be integrated because it
consumes much less time than the later system.
4. Financial contract
There are various financial contract plans that could be used in this particular project. The
plans include lump contract, guaranteed maximum price contract and cost-plus fixed fee
contract. Lump sum contract is one of the most common processes of construction contract. In
this form of contract, a lump sum budget is decided before the project is started. In this particular
contract, the project is properly defined. Here the contractor is allowed to price the activities that
they would carry out in the project. Lump sum is not utilized when speed is the major factor.
Guaranteed maximum price contract is a legal agreement, which decides a maximum
price for a project that would be paid by the entity. This contract includes the actual cost needed
to carry out the project along with a specific amount of fee. In case of any cost overruns, the
contractor would be hold responsible and in case of cost under runs, the amount is returned to the
contract.
The cost-plus fixed fee is a contract where contractor is paid the normal expense required
for the project along with a fixed amount of fee for the services they would provide. This lets the
contractor, collect a definite amount of profit from project. The expenses incurred in cost-plus
contract are decided considering the market values. The fixed fee provided for the services can
be negotiated among the parties. The fee may vary depending on the needs of the project.

5PROJECT EXECUTION PLANNING AND MANAGEMENT
In this particular project, the last type of contract is preferred. This is because the cost-
plus fixed fee contract provides more flexibility than other contracts. In this case, the contractor
is benefited by providing incentives for minimizing the costs. Minimization of cost is beneficial
for the contract as well. The reasons for using this contract are as follows
Benefits of the owner: Using this type of contract would lead in good quality projects.
This is because the contract does not skimp on the labor or materials used. For prepaying the
expenses, the contractor can be guaranteed some bonus pay. This contract reduces the risk of
over bidding of project. This contract is always set at a worthy price. The owner is benefited if
the price of the materials is reduced.
Benefits of the contractor: In this project, a contractor can accept an unfinished layout
with the help of cost plus fixed fee.
No risk: Using this contract would not hold the risk of loss that can be raised from the
changed prices of materials, underestimated or wrong estimate quotations. This contract provides
an automated escalation clause such that the cost increase is adjusted as well as recovered.

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Figure 1: The areas where the project needs investment
(Source: Created by author)

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5. Procurement Method
The members of the Australian Procurement and Construction Council Inc or APCC have
taken the responsibility for the procurement, asset management and construction for any
construction project that is being established in Australia. All the procurement process that takes
place in a construction project in Australia is passed through the APCC in order to maintain
feasibility in the project plan. This would help in saving as well as maximizing the service
delivery for the construction project as well as the communities of Australia. Following would be
the procurement methods that should be feasible for the said construction project in New South
Wales:
Objective Statement: The primary objective for the application and implementation of
feasible procurement methods in this project is to utilize the resources provided for the project
regarding the construct project and maximising the service delivery according to that. This could
only be achieved if the project deliverables are coordinated with the resources required for the
project. If these two things are dissimilar, then it could be found that the entire project is coming
to a downfall. In addition to this, it could be seen that every procurement method brings about
possible risks if the resources are not matched with the projected deliverables. The following
would describe this factor in details with the help of an organized chart.
Project objectives, requirements, characteristics and risks: The project procurement
methods and objectives for different project are varied since it all depends upon the requirement
of the clients. The project objectives for this construction project are also varied according to the
requirement of the customers. The project objectives, the requirements, characteristics of the
project objectives and the risks associated will be described in details as follows:

8PROJECT EXECUTION PLANNING AND MANAGEMENT
Project
objectives
Requirements Characteristi
cs
Risks
Verification
for the needs
This objective
depends on the
requirement of the
customers and the
resources that the
company has required
for the project
In this project
the project is
evaluated well
according to the
project resources and
the client’s needs
The risk
associated with this
objective is the non-
coordination of the
needs and the
resources which
would affect the
project progression
Assessment of
options
Options must
be done to make out
other options that can
be beneficial to the
project or if the
project can be
propagated following
any other way
If there are
budget constraints,
then other options
except the planned
ones are difficult to
implement
The risk
associated with this
objective is the
exceeding of the
required budget if
other options are
considered without
much research done
Develop
Procurement Strategy
A project
procurement strategy
needs to be developed
by the organization so
that they can keep a
It is required
that the organization
develops a project
procurement plan with
the least amount of
Without a
proper procurement
strategy, the business
association in
responsibility of the

9PROJECT EXECUTION PLANNING AND MANAGEMENT
track on the budget as
well as the returns the
project would deliver
if the works all go
according to the pre-
planned project
charter
budget proposed but
maintaining proper
quality as well
project may not focus
on attaining profit
with the project
involved
Implement
Procurement Strategy
The project
procurement plan
should be
implemented properly
to expect suggested
revenues for the
benefit of the
organization
This can only
be done when the
project charter is
thoroughly sought out
and there is no scope
of lag in any part of
the project
Procurement
strategy, if not
implemented correctly
may result in further
deviation of the
project from its main
target of attaining
benefits for the
organization.
Project
Delivery
Project
delivery is inversely
proportional to the
time required for the
project. The less the
time, the more
effective would be the
The project is
estimated to be
delivered on time,
thus maintaining the
client’s needs and
gaining positive
reviews for the
Project
deliverables depend
on time, if these are
not met properly, the
project may cause a
huge loss to the
organization

10PROJECT EXECUTION PLANNING AND MANAGEMENT
project delivery
keeping the quality of
the project intact
company financially as well as
socially
Post Project
Review
All the steps
that are involved in
the project charter
needs to be
maintained
thoroughly through
monitoring of each
step through the
progression of the
task and any
inconvenience should
be recorded and
reported to find out is
there is any
impending risk
associated with it
All the steps
have been monitored
and presented
properly. The
inconveniences have
also been recorded to
mitigate the risks
associated with it as
soon as possible
Project not
reviewed properly
leads to faulty
evaluator results
which would further
depict a poor outcome
of the project as there
would be nothing to
evaluate every step of
the project
progression
Agency and Market capabilities: The capability of the agency that is currently handling
the construction project in New South Wales have been reported to be of top notch and the

11PROJECT EXECUTION PLANNING AND MANAGEMENT
market for retail industry along the required area is also reportedly high. Thus this project can be
feasible enough to carry along with.
Applicable procurement methods: The procurement methods mentioned above can all
be applicable as long as the project budget is constant and within the range of the customers. It
would only attain fallout when there are no funds to support the project.
6. Risk Management Plan
Risk Description Impact Probability Mitigation strategy
Technical
Risks
This risk includes
the uncertainty of resources
or the unavailability of the
materials, inadequate site
inspection or incomplete
design
High Less
likely
This can only
mitigated with the
thorough planning of the
project strategy and
project propagation
before starting off with
the project
Financial Risk Inflation, local taxes,
and availability and
fluctuation in foreign
exchange are a few of the
possible financial risks you
might incur during a
construction project.
High Mos
t Likely
This can be
mitigated by thorough
monitoring of the project
and reporting any
incompetency found along
the project relating to
finances
Managerial
Risk
The most common
management related risk is
High Poss This step can also
be mitigated by thorough

12PROJECT EXECUTION PLANNING AND MANAGEMENT
uncertain productivity of
resource, which can even lead
towards disastrous situations
ible monitoring and reporting
Environmental
Risk
These include the
natural disaster, weather and
other seasonal implications
Moderat
e
Less Likely Potential risks can
be avoided by making
proper project planning
7. Quality Management Plan
Quality management plan of the construction project in New South Wales for
establishing a retail business depends upon various factors. These factors can be listed as
follows:
 Human Control
 Material Control
 Machinery and Equipment control
 Method Control for the construction project
 Environmental Control

13PROJECT EXECUTION PLANNING AND MANAGEMENT
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