Best Project Delivery Method, Financial Contract Type, Procurement Method, and Risk Management Plan for Construction Project

Project Management

Table of Contents
Background of Case Project............................................................................................................3
Best Project Delivery Method.........................................................................................................3
Best Financial Contract Type..........................................................................................................5
Best Procurement Method...............................................................................................................8
Risk Management Plan..................................................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................12

Background of Case Project
Westpac is a financial services providing bank situated in Australia, and is headquartered at
Westpac in Sydney. It is the oldest bank and one of four biggest banks of Australia as well as one
of the major banks in New Zealand. Westpac provides a varying range of banking as well as
monetary services in financial markets together with consumer, institutional and consumer
banking as well as in wealth management services. The business of the Westpac comprises of
five major customer-based divisions operating a unique portfolio of brands along with Bank of
Melbourne, Westpac, St. George, BankSA and RAMS, through which, these brands are
providing services to more than 13 million customers presently (Westpac Banking Corporation,
2019).
In order to construct its branch office, Westpac is planning to enter into a construction project
with reasonable costs, to build a branch office that could satisfy all the demands of customers. In
order to attain best construction project quotations, Westpac is exploring various types of project
delivery methods to take on the best suitable, analyzing various types of financial contracts to
select the best one and is going through various types of procurement methods to select the best
one for the construction project. In line with it, the company will also plan its risk management
strategy in order to avoid any kinds of risks arising during the construction of branch office. This
report will search for the best services that could be taken into consideration by the Westpac
Australia, for undertaking the construction project.
Best Project Delivery Method
The project delivery is considered as an all-inclusive process which includes planning, designing
and construction essential to implement a project. The selection of a project delivery method is

considered to be as one of the basic decisions to be taken while developing acquisition strategy.
The project concerns have major impact on the selected delivery method and such concerns
include realistic budget as well as schedule including realistic performance period, receptive and
quality design process and risk assessment along with sharing of risks to suitable parties and
identifying the level of proficiency within the organization. Most common project delivery
methods are; Construction Management at Risk (CMR), Design-Bid-Build (DBB) and Design-
Build (DB).
Construction Management at Risk (CMR) - It is also referred to as CM at-Risk. It involves
assurance by the CMR for construction performance to provide the project within sharp
timetable and expenses, which could either be fixed, lump sum or guaranteed maximum price
(GMP). It provides construction feedback during the design phase and acts as a general
contractor throughout the phase of construction (DBIA, 2018).
Design-Bid-Build (DBB) - It is an old project delivery method that usually includes three
consecutive project phases i.e. design phase that requires designer services considered as the
‘designer of record’ for the project; bid phase is the nomination of a contractor; and construction
phase includes the construction of the project by selected contractor (University of Missouri
System, 2019). These sequential steps lead to a fixed-price contract.
Design-Build (DB) - This project delivery method comprises design-builder only and a single
contract signed with the owner to provide engineering design services and construction.
Considering all three methods of project delivery, it has been realized that best suitable method
would be Design-Build (DB). It involves integration of processes and, overlapping of design and
construction fasten the tracking process. Because of two major players i.e. owner and design-
build entity and single contract, there is single point of responsibility (Porter, 2016). Considering