Project Management: Risk Assessment, Cost Estimation, and Schedule

The paper mainly focusses on three different projects and discusses risk assessment, cost estimation, and project schedule. It identifies the challenges and issues that can arise during the project and suggests mitigation procedures.

Running head: PROJECT MANAGEMENT
Topic- Project Management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Executive Summary
The paper mainly focusses on three different projects. It is found that the first project mainly
focuses on the construction of 700 Bourke Street which is generally located at the corner of the
Bourke Street whereas the paper also reflects on the second project that deals with the
construction of Victoria one which is situated in Melbourne Victoria. The third project deals with
the construction of Q1 which is one of the privately owned construction organization that
generally specializes in the construction of a number of the industry as well as commercial
developments across different sectors. It is identified that the projects can face number of faces
and challenges including improper design of the buildings, changes within the decision of the
project stakeholders, Failure in finishing the work of the project by following the contract,
objections by the common people, inappropriate environmental analysis, amendments in the laws
and regulations, late delivery of materials as well as overrun cost in construction. All this
problems, as well as issues, can be mitigated or resolved by taking proper steps as well as
strategies. It is found that the entire construction of the high rise buildings will be successfully
completed within the time period of 5 months by using the design-bid-build method. The
schedule, as well as budget that is developed, are attached below.
Schedule of the project
The schedule that is provided below reflects that the time that is generally necessary in
order to construct the high rise buildings.
Task Name Duration Start Finish
Construction of high rise
buildings 106 days Mon 04-03-19 Mon 05-08-19

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Scope definition 52 days Mon 04-03-19 Mon 20-05-19
Requesting bid documents 11 days Mon 04-03-19 Tue 19-03-19
Receiving bid documents and
deciding to plan for bid 10 days Wed 20-03-19 Tue 02-04-19
Brief bid stakeholders and
participants 12 days Wed 03-04-19 Thu 18-04-19
Site evaluation project visit 10 days Tue 23-04-19 Tue 07-05-19
Design or construction
preparation build strategy 12 days Tue 23-04-19 Thu 09-05-19
Engineering preparation bid
design 9 days Wed 08-05-19 Mon 20-05-19
Estimation 31 days Wed 08-05-19 Thu 20-06-19
Quantity take off and BOQ 14 days Wed 08-05-19 Mon 27-05-19
Pricing standards for bid 15 days Wed 08-05-19 Tue 28-05-19
BOQ pricing 12 days Fri 10-05-19 Mon 27-05-19
Project planning 16 days Tue 21-05-19 Wed 12-06-19
Project risk assessment 12 days Tue 21-05-19 Wed 05-06-19
Set allowances and
contingency 15 days Tue 28-05-19 Tue 18-06-19
Preparation of draft bid
documents 17 days Tue 28-05-19 Thu 20-06-19
Review 47 days Tue 28-05-19 Thu 01-08-19
Meeting for bid clarification 25 days Wed 29-05-19 Wed 03-07-19
Reviewing bid with the help
of stakeholders 28 days Tue 28-05-19 Fri 05-07-19
Conversion of draft to final bid 25 days Thu 13-06-19 Wed 17-07-19
Senior management review 30 days Thu 06-06-19 Thu 18-07-19
Finalize bid for the review of
CEO 32 days Wed 19-06-19 Thu 01-08-19

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Submission 32 days Fri 21-06-19 Mon 05-08-19
CEO final review 3 days Fri 21-06-19 Tue 25-06-19
Finalization of documents for
bid submission 2 days Fri 02-08-19 Mon 05-08-19
Submission of bid by 12 noon 1 day Thu 04-07-19 Thu 04-07-19
Budget
The estimated budget for the project is reflected with the help of the table that is provided
below:
Descripti
on
N
o
s.
An
nu
al
Sal
ar
y
(in
$)
W
ee
kly
Pa
y
(in
$)
Annu
al
Leave Super
annua
tion
(in $)
Pa
yr
oll
Ta
x
(in
$)
Ins
ura
nce
To
tal
Co
st
(in
$)
Ho
url
y
Pa
y
(in
$)
Ove
rhe
ad
Cos
t
(in
$)
Wor
k
Hou
r
Net
Hou
rly
Pay
(in
$)
Co
st
(in
$)
Bid
Coordinat
or 1
12
50
00
58
96 4127 11563 62
50
937
5
15
63
15
91 14 1864 105 195
720
Bid
productio
n
manager 1
65
00
0
30
66 2146 6013 32
50
487
5
81
28
4
47 7 1440 54 777
60
Productio
n assistant 1
60
00
0
28
30 1981 5550 30
00
450
0
75
03
1
44 7 1360 51 693
60
Design
Engineers 8
94
20
0
44
43 3110 8714 47
10
706
5
11
77
99
69 11 168 80 134
40
Construct
ion
Engineers 3
91
00
0
42
92 3004 8418 45
50
682
5
11
37
97
66 10 472 76 358
72
Contracts
1
88
50
0
41
75 2923 8186 44
25
663
8
11
06
72
64 10 304 74 224
96
Scheduler 1 72 34 2404 6734 36 546 91 53 8 568 61 346

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PROJECT MANAGEMENT
80
0 34 40 0 03
8 48
Planning
Engineer 1
85
90
0
40
52 2836 7946 42
95
644
3
10
74
20
63 10 600 73 438
00
Lead
Estimator 1
12
85
00
60
61 4243 11886 64
25
963
8
16
06
92
94 15 952 109 103
768
Estimator
1
10
70
00
50
47 3533 9898 53
50
802
5
13
38
06
78 12 968 90 871
20
Estimator
1
95
50
0
45
05 3154 8834 47
75
716
3
11
94
26
70 11 768 81 622
08
Estimator
1
68
00
0
32
08 2246 6290 34
00
510
0
85
03
6
50 8 568 58 329
44
Clerical
Support 1
40
50
0
19
10 1337 3746 20
25
303
8
50
64
6
30 5 528 35 184
80
Tot
al
Cos
t
$79
7,6
16

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PROJECT MANAGEMENT
Table of Contents
1. Risk assessment...........................................................................................................................7
2. Cost Estimation..........................................................................................................................10
3. Project Schedule........................................................................................................................11
3.1 Gantt chart...........................................................................................................................11
3.2 Maintaining activity codes...................................................................................................12
3.3 Calendar...............................................................................................................................12
5. Background Research and report...............................................................................................13
5.1 Project 1: 700 Bourke Street................................................................................................13
5.2 Project 2: Victoria one.........................................................................................................13
5.3 Project 3: Q1........................................................................................................................14
Bibliography..................................................................................................................................16

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PROJECT MANAGEMENT
1. Risk assessment
S
No
. Activity Hazard
Risk
Leve
l
Probabilit
y Impact
Consequenc
e
Order Of
Magnitude Impact on
Risk of new
value
Mitigation
procedure
1
Improper
design of the
buildings
It is found
that
inappropriate
design of the
building can
lead to a
number of
problems in
finishing the
project on
time 16 Most likely Severe 18%
$
1,200,000.00 Project
$
120,000.00
It is very
much
necessary to
develop the
design for
the
construction
of the
building
quite
effectively.
2
Changes
within the
decision of
the project
stakeholders
As the
stakeholders
who are
associated
with the
project
changes their
decision then
the time
associated
with the
project can
increase. 19 Likely
Moderat
e 20%
$
1,200,000.00
Project and
person
$
320,000.00
The
decision that
can create a
huge impact
on the
progress of
the project
must not be
changed
randomly.
3 Failure in
finishing the
work of the
project by
following the
contract
If the project
managers fail
to follow the
contract
while
progressing
with the
project then
there is a
chance of
project delay.
17 Likely Moderat
e
16% $
1,000,000.00
Project $
127,000.00
It is very
much
necessary to
complete the
entire work
of
construction
as per the
contract that
is made in
order to
avoid any
type of
project
related

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PROJECT MANAGEMENT
issues.
4
Objections
by the
common
people of
that area
where the
building will
be
constructed.
It is
identified
that if the
common
people who
live in that
area does not
have proper
support
within the
project the
project can
face the issue
in starting
the project 5 Likely Minor 12%
$
1,600,000.00 Project delay
$
120,000.00
The
problems of
the public
must be
mitigated so
that it does
not cause
complexity
within the
project.
5
Inappropriate
environment
al analysis
If the
environment
al analysis is
not done
properly then
it can case a
number of
accidents. 9 Likely
Moderat
e 8%
$
1,300,000.00 Public
$
100,000.00
The issues
which are
associated
with the
environment
al analysis
are not
properly
analyzed
then it can
cause a
number of
issues and
challenges.
6
Amendments
to the laws
and
regulations
If there is
any change
within the
rules and
regulations
then the
higher
authority of
the
organization
will face a
number of
problems 14 Unlikely Minor 20%
$
100,000.00 Public
$
200,000.00
It is quite
necessary to
keep the laws
similar so
that the
workers of
the
organization
does not face
any type of
problems or
issues.
7
Late delivery
of project
requirements
Due to late
delivery of
project 13 Possible
Moderat
e 20%
$
1,000,000.00 Project delay
$
200,000.00
It is
necessary to
deliver the

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PROJECT MANAGEMENT
materials, it
generally
creates a
delay in the
completion
of the
project.
needed
materials on
time so that
the project
can be
finished on
time.
8
Inappropriate
experience
and skills
among the
team
members
Due to
inappropriate
experience as
well as skills
of the team
members, it
is quite
difficult to
finish the
project on
time. 7 Possible
Moderat
e 12%
$
1,700,000.00 Project
$
320,000.00
It is
necessary to
hire
experienced
team
members for
the project so
that the
entire project
can be
completed on
time.
9
Inappropriate
protection
facility for
the team
members on
site.
It can cause a
number of
accidents on
the site. 5 Possible Minor 10%
$
1,500,000.00 Public
$
150,000.00
It is
necessary to
arrange the
proper
facility of
protection on
the
construction
site for
avoiding this
type of
problems.
10
Overrun cost
in
construction
Due to the
rising cost of
resources,
the budget
for the
project also
increases
which further
can create a
number of
financial
issues. 11 Moderate Major 12%
$
1,000,000.00 Project delay
$
300,000.00
It is
necessary to
estimate the
project
properly so
that the
entire project
can be
completed
successfully
on time.

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2. Cost Estimation
Description Department Nos. Annual Salary
Bid Coordinator Marketing & Sales 1 125,000$
Bid production manager Marketing & Sales 1 65,000$
Production assistant Marketing & Sales 1 60,000$
Design Engineers Engineering 8 94,200$
Construction Engineers Construction 3 91,000$
Contracts Contracts 1 88,500$
Scheduler Planning 1 72,800$
Planning Engineer Planning 1 85,900$
Lead Estimator Estimating 1 128,500$
Estimator Estimating 1 107,000$
Estimator Estimating 1 95,500$
Estimator Estimating 1 68,000$
Clerical Support Estimating 1 40,500$
Departments Costing
Marketing 342,840$
Engineering 13,440$
Construction 35,872$
Contracts 22,496$
Planning 78,448$
Estimating 304,520$
Total Cost 797,616$
Figure 1: Cost estimation
(Source: Created by Author)

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3. Project Schedule
3.1 Gantt chart
Figure 2: Gantt chart
(Source: Created by Author)

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PROJECT MANAGEMENT
3.2 Maintaining activity codes
Resource Name Initials
Bid coordinator BC
Bid production manager JS
Production assistant FN
Design engineers DES
Construction engineers RP
Contracts NA
Scheduler NA
Planning engineer NPQ
Lead estimator JB
Estimator JP
Estimator DR
Estimator BS
Clerical support CEO
Chief executive officer and board CON
3.3 Calendar

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PROJECT MANAGEMENT
5. Background Research and report
5.1 Project 1: 700 Bourke Street
This project mainly reflects on the construction of 700 Bourke Street which is a 14
storey building that helps in providing a gateway to Docklands from the Southern Cross station.
It is identified that the client of the project is Cbus property whereas Woods Bagot is the
architect of the project. The construction of the building started in the year 2010 and it gets
completed by June 2013. It is found that the construction of 700 Bourke Street mainly uses
Design bid-build method. The construction of 700 Bourke Street is considered one of the A-
grade building with various premium services. The building has a number of sustainable features
including tri-generation facility as well as energy efficient facade. Moreover, it is stated by
Cbusproperty.com.au (2018) that the project faces a number of issues including the project
managers have to work in high volume traffic as well as within pedestrian areas, problems
related with quality as well as in design integrity. It is found that the problems that are faced can
be resolved by implementing proper steps as well as strategies. The project team members of 700
Bourke Street achieved an LTI of 1.89 and they successfully deal with the volume of the traffic
as well as safety problems that are associated with the construction site. Moreover, the
organization develop a design review group which review the design after its completion for
making sure that the design is appropriate for the project.
5.2 Project 2: Victoria one
The project reflects on the construction of Victoria one that is one of the residential
skyscapes in Melbourne. The client who is mainly associated with the construction of the
building is Elenberg Fraser. It is found that the construction of the building starts in the year
2014 and it gets finished within the year 2018. In order to construct the building, design bid build

13
PROJECT MANAGEMENT
method is mainly used. It is identified that the construction of Victoria one mainly includes 644
residential apartments that were generally spanning across 76 different levels. It is found that the
project faces a number of issues and challenges while undertaking the construction work
(Goldenagegroup.com.au 2018). The problems that are associated with the project mainly
includes the improper design of the building, cost overrun, problems due to late delivery of
materials as well as improper management. It is found that the problems can be resolved easily
by utilizing proper mitigation strategies. It is identified that it is necessary for the project
manager to estimate the time and schedule of the project in order to avoid cost overrun. Proper
management is necessary to finish the entire construction on time. Moreover, it is necessary to
have skilled as well as experienced team members for finishing the project on time.
5.3 Project 3: Q1
This project mainly focusses on the construction of a skyscraper in Queensland
Australia. It is found that the client who undertakes the construction of Q1 is SDG & The
Buchan Group. The construction of the building starts in the year 2002 and it gets completed by
the year 2005. It is identified that the project utilizes a design bid build contract in order to
complete the entire project successfully. Q1 is considered as one the second tallest building
structure within the southern hemisphere. During the construction of Q1, a number of risks, as
well as problems, arise. The problems that occurred while progressing with the project mainly
includes improper use of materials due to rusting as well as leakage of the tower has been seen
within the building (Q1constructions.com.au 2018). In addition to this, it is analyzed that cost
overrun is one of the main issues that is faced in the project due to improper estimation of the
cost that is necessary for completing the work that is associated with construction. Moreover, it
is found that it is quite necessary to mitigate the issue and challenges that are associated with the

14
PROJECT MANAGEMENT
project. It is necessary to use proper as well as good quality of materials so that the problems
including corrosion can have avoided. In addition to this regular maintenance is very much
necessary for reducing the issues like leakage and corrosion. Additionally, it is necessary for the
managers of the project to estimate the needed budget effectively in order to avoid the problem
of cost overrun.

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PROJECT MANAGEMENT
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PROJECT MANAGEMENT
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