NEXY Highway Project Analysis
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AI Summary
This assignment analyzes the NEXY highway project in Australia, focusing on its costs, start and finish dates, inflation-adjusted value, and encountered risks. It highlights unrealistic estimations that led to a significant cost overrun and logistical challenges related to material delivery for the 15 bridges constructed. The analysis also discusses factors contributing to time and cost overruns in similar projects, emphasizing the need for efficient equipment, timely payments, clear communication, and contingency planning to mitigate these risks.
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Running head: HIGHWAY PROJECT
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1HIGHWAY PROJECT
Reporting on the opportunity in the bidding to the Highway project
Dear Ladies and Gentleman
It has been decided by our company that it has extended some of its activities into the
new venture of business, that has made its report prepared in evaluating the business opportunity
in its construction in the highway Victoria/ Australia. The sole aim of the project is to upgrade to
the Sunshine Avenue Road to the Calder Freeway and its goal is to enter into the market as the
head contractor or the deputy of the Project Management. The CEO has made clear instructions
in preparing the report that is to focus on the risks that is present in this new area and then to
schedule and estimate it. This report will be considered as one of the most significant risks that
will help in the mitigation or to eliminate the risks.The analysis of the risks is shown to be a risk
that can be easily controlled and that will not help in the suspension of the project, that has been
identified by the team like the:
Lack of proper workmanship
Delays due to the shortage in the number of the skilled labor
Proficiency and a beginner’s experience in the highway and the road projects
Suspension or delays due to bad weather
Suspension due to the activities that may be caused by the existing infrastructures
In this report, it is expected that the cost for the preparation of the bid and its process may
include the need to:
1) 14 employees from 6 departments.
Reporting on the opportunity in the bidding to the Highway project
Dear Ladies and Gentleman
It has been decided by our company that it has extended some of its activities into the
new venture of business, that has made its report prepared in evaluating the business opportunity
in its construction in the highway Victoria/ Australia. The sole aim of the project is to upgrade to
the Sunshine Avenue Road to the Calder Freeway and its goal is to enter into the market as the
head contractor or the deputy of the Project Management. The CEO has made clear instructions
in preparing the report that is to focus on the risks that is present in this new area and then to
schedule and estimate it. This report will be considered as one of the most significant risks that
will help in the mitigation or to eliminate the risks.The analysis of the risks is shown to be a risk
that can be easily controlled and that will not help in the suspension of the project, that has been
identified by the team like the:
Lack of proper workmanship
Delays due to the shortage in the number of the skilled labor
Proficiency and a beginner’s experience in the highway and the road projects
Suspension or delays due to bad weather
Suspension due to the activities that may be caused by the existing infrastructures
In this report, it is expected that the cost for the preparation of the bid and its process may
include the need to:
1) 14 employees from 6 departments.
2HIGHWAY PROJECT
2) Around Four months to prepare the bid from 6th March 2017 to 3th July 2017.
The estimated cost that has been made is $262,874. The scheduled summary that has been found
through the attachment includes the working details, start and finish dates and the details of the
employees. The work in the new business area always need proposals and appreciations in our
consideration.
Number Risk Description
1 Lack of proper workmanship
2 Suspension or delays due to bad weather
3 Change in policy and legislation
4 Risk of fatal injury amongst the workers
5 Fluctuation due to national economy
6 Removal of fauna habitat that might injure the species
7 Suspension due to the activities that may be caused by the existing infrastructures
8 Accuracy in the estimation of the cost, escalation of the wrong base and the takeoff error
calculations in the designing details
9 Delays due to the shortage in the number of the skilled labour
10 Demolition omissions
2) Around Four months to prepare the bid from 6th March 2017 to 3th July 2017.
The estimated cost that has been made is $262,874. The scheduled summary that has been found
through the attachment includes the working details, start and finish dates and the details of the
employees. The work in the new business area always need proposals and appreciations in our
consideration.
Number Risk Description
1 Lack of proper workmanship
2 Suspension or delays due to bad weather
3 Change in policy and legislation
4 Risk of fatal injury amongst the workers
5 Fluctuation due to national economy
6 Removal of fauna habitat that might injure the species
7 Suspension due to the activities that may be caused by the existing infrastructures
8 Accuracy in the estimation of the cost, escalation of the wrong base and the takeoff error
calculations in the designing details
9 Delays due to the shortage in the number of the skilled labour
10 Demolition omissions
3HIGHWAY PROJECT
11 Risk of approvals from high officials
12 Material delivery delays
13 Equipment shortage that is less in number will help in carrying out the road project
14 Delays due to the shortage in the number of the skilled labour
15 Impact of the omissions on the construction at an individual receptor
16 Changed environment that is due to speed reductions
11 Risk of approvals from high officials
12 Material delivery delays
13 Equipment shortage that is less in number will help in carrying out the road project
14 Delays due to the shortage in the number of the skilled labour
15 Impact of the omissions on the construction at an individual receptor
16 Changed environment that is due to speed reductions
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4HIGHWAY PROJECT
Nu
m
be
r
ra
nk
Risk Description
Risk TreatmentRisk
Descriptio
n
Like
liho
od
Cons
eque
nce
impa
ct
Before
Treat
ment
1 1
Novice
experience
.
60
%
3000
0000.
00
1800
0000
Extrem
e
1.
2. current staff
training through
the professional
courses that needs
to be developed
2 4
Suspensio
n and
delays due
to
weather
35
%
1200
0000
4200
000 High
1. application of
allowances and
contingency so
that the risk may
be covered
2. condition of the
weather in the
current and the
last few years have
been built to make
the forecast in a
correct way
3 15
Changes in
the
legislation
and the
policy
10
%
1300
0000
1300
000
Mediu
m
Availing a
contingency plan
and an impartial
contract
4 7
Fatal risk
and injury
of the
workers
22
%
1500
0000
3300
000
Mediu
m
1. setting up a
correct H & S plan
that will together
make the safety of
the procedures
2. maintaining and
developing the
safe working
environment by
the members
5 9 Fluctuation
s in the
equipment
and the
16
%
1800
0000
2880
000
Mediu
m
The estimated cost
needs to recognize
its effect that has
an increased
Nu
m
be
r
ra
nk
Risk Description
Risk TreatmentRisk
Descriptio
n
Like
liho
od
Cons
eque
nce
impa
ct
Before
Treat
ment
1 1
Novice
experience
.
60
%
3000
0000.
00
1800
0000
Extrem
e
1.
2. current staff
training through
the professional
courses that needs
to be developed
2 4
Suspensio
n and
delays due
to
weather
35
%
1200
0000
4200
000 High
1. application of
allowances and
contingency so
that the risk may
be covered
2. condition of the
weather in the
current and the
last few years have
been built to make
the forecast in a
correct way
3 15
Changes in
the
legislation
and the
policy
10
%
1300
0000
1300
000
Mediu
m
Availing a
contingency plan
and an impartial
contract
4 7
Fatal risk
and injury
of the
workers
22
%
1500
0000
3300
000
Mediu
m
1. setting up a
correct H & S plan
that will together
make the safety of
the procedures
2. maintaining and
developing the
safe working
environment by
the members
5 9 Fluctuation
s in the
equipment
and the
16
%
1800
0000
2880
000
Mediu
m
The estimated cost
needs to recognize
its effect that has
an increased
5HIGHWAY PROJECT
material
costs
contingency that
includes the
consideration of
the price that
would be invested
in the construction
of the project.
6 6
Removal
of the
fauna
habitats
32
%
1100
0000
3520
000
Mediu
m
The environmental
team deals with
the surveys and its
proper study
7 2
Suspensio
n caused
due to the
lack of the
infrastruct
ure
38
%
1400
0000
5320
000 High
Relocating the
assets that will be
undertaken with
the approvals of
the requirements
8 11
Accuracy
in cost
estimation
13
%
1900
0000
2470
000
Mediu
m
Benchmarking
exercises that
needs to be taken
and also designing
some of them
9 5
lack of
proper
workman
15
%
2500
0000
3750
000 High
Selection of
subcontractors
who might have a
better experience
and have great
exposure
10 14
Omissions
of the dust
and the
pebbles
26
%
5000
000
1300
000
Mediu
m
Ensuring sheeting
system and dust
free programs
11 13 Risk is
from the
approvals
in an
official
manner
and
licenses of
the start
ups
18
%
1100
0000
1980
000
Mediu
m
Making sufficient
commencements
and allowances for
getting the
approvals
material
costs
contingency that
includes the
consideration of
the price that
would be invested
in the construction
of the project.
6 6
Removal
of the
fauna
habitats
32
%
1100
0000
3520
000
Mediu
m
The environmental
team deals with
the surveys and its
proper study
7 2
Suspensio
n caused
due to the
lack of the
infrastruct
ure
38
%
1400
0000
5320
000 High
Relocating the
assets that will be
undertaken with
the approvals of
the requirements
8 11
Accuracy
in cost
estimation
13
%
1900
0000
2470
000
Mediu
m
Benchmarking
exercises that
needs to be taken
and also designing
some of them
9 5
lack of
proper
workman
15
%
2500
0000
3750
000 High
Selection of
subcontractors
who might have a
better experience
and have great
exposure
10 14
Omissions
of the dust
and the
pebbles
26
%
5000
000
1300
000
Mediu
m
Ensuring sheeting
system and dust
free programs
11 13 Risk is
from the
approvals
in an
official
manner
and
licenses of
the start
ups
18
%
1100
0000
1980
000
Mediu
m
Making sufficient
commencements
and allowances for
getting the
approvals
6HIGHWAY PROJECT
12 8
Material
delays in
the
delivery
21
%
1400
0000
2940
000 High
Choosing the
professional
procurement in
the team that has
to deal with
suppliers of the
materials
Ordering in bulk
that is to ensure
the availability and
the consistency
13 10
Shortage
of
equipment
’s
13
%
1900
0000
2470
000
Mediu
m
Identification of
the necessary
equipment that
needs producers
and suppliers at
the time of the
delivery.
14 3
Delay due
to
shortage
of skilled
worker
31
%
1400
0000
4340
000 High
Contractors have
been appointed to
ensure a
continuous flow in
the workplace.
15 12
Omissions
constructi
on that
will make
an impact
on the
sensitive
individual
receptor.
39
%
6000
000
2340
000
Mediu
m
Implementation of
management
methods and
systems that is
required to
maintain the
quality of air
16 16
Changed
roads and
constructi
on
environme
nt
30
%
3000
000
9000
00
Mediu
m
Possibility of the
construction works
that may be high
in demand that
will make a less
effect on the other
groups
12 8
Material
delays in
the
delivery
21
%
1400
0000
2940
000 High
Choosing the
professional
procurement in
the team that has
to deal with
suppliers of the
materials
Ordering in bulk
that is to ensure
the availability and
the consistency
13 10
Shortage
of
equipment
’s
13
%
1900
0000
2470
000
Mediu
m
Identification of
the necessary
equipment that
needs producers
and suppliers at
the time of the
delivery.
14 3
Delay due
to
shortage
of skilled
worker
31
%
1400
0000
4340
000 High
Contractors have
been appointed to
ensure a
continuous flow in
the workplace.
15 12
Omissions
constructi
on that
will make
an impact
on the
sensitive
individual
receptor.
39
%
6000
000
2340
000
Mediu
m
Implementation of
management
methods and
systems that is
required to
maintain the
quality of air
16 16
Changed
roads and
constructi
on
environme
nt
30
%
3000
000
9000
00
Mediu
m
Possibility of the
construction works
that may be high
in demand that
will make a less
effect on the other
groups
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7HIGHWAY PROJECT
8HIGHWAY PROJECT
Nu
mb
er
r
a
n
k
Risk
Description
Risk Severity
Before
Treatment Befo
re
Trea
tme
nt
Risk
Treatmen
t
Risk Severity After
Treatment
Li
k
el
ih
o
o
d
Co
nse
que
nce
imp
act
Li
k
el
ih
o
o
d
Conseq
uence
im
pa
ct
After
Trea
tme
nt
1 1 Proficiency of
the
experiences in
the highway
and the road
projects
6
0
%
300
000
00.
00
180
000
00
Extr
eme
1.
employm
ent of the
new staffs
that has
professio
nal
experienc
es in the
projects
of the
highways
and roads
3
0
%
160000
00.00
48
00
00
0
Med
ium
2. proper
training
through
the
Nu
mb
er
r
a
n
k
Risk
Description
Risk Severity
Before
Treatment Befo
re
Trea
tme
nt
Risk
Treatmen
t
Risk Severity After
Treatment
Li
k
el
ih
o
o
d
Co
nse
que
nce
imp
act
Li
k
el
ih
o
o
d
Conseq
uence
im
pa
ct
After
Trea
tme
nt
1 1 Proficiency of
the
experiences in
the highway
and the road
projects
6
0
%
300
000
00.
00
180
000
00
Extr
eme
1.
employm
ent of the
new staffs
that has
professio
nal
experienc
es in the
projects
of the
highways
and roads
3
0
%
160000
00.00
48
00
00
0
Med
ium
2. proper
training
through
the
9HIGHWAY PROJECT
current
staffs that
comes
professio
nally
when
developin
g the sills
7 2
Suspension
caused due to
the
infrastructure
activities
3
8
%
140
000
00
532
000
0
High
Relocatin
g the
assets
that is
required
to be
undertak
en by the
requirem
ent
approvals
2
1
%
262000
0.00
55
02
00
Med
ium
14 3
Delay due to
shortage of
skilled labor
3
1
%
140
000
00
434
000
0
High
Contracto
rs
appointe
d so that
a
continuo
us flow in
the
workplac
e may put
in an
increase
labour
cost
1
5
%
600000
0.00
90
00
00
Med
ium
2 4
Suspensions
and delay that
is due to bad
3
5
%
120
000
00
420
000
0
High
Allowanc
e and
contingen
2
0
%
250000
0.00
50
00
00
Med
ium
current
staffs that
comes
professio
nally
when
developin
g the sills
7 2
Suspension
caused due to
the
infrastructure
activities
3
8
%
140
000
00
532
000
0
High
Relocatin
g the
assets
that is
required
to be
undertak
en by the
requirem
ent
approvals
2
1
%
262000
0.00
55
02
00
Med
ium
14 3
Delay due to
shortage of
skilled labor
3
1
%
140
000
00
434
000
0
High
Contracto
rs
appointe
d so that
a
continuo
us flow in
the
workplac
e may put
in an
increase
labour
cost
1
5
%
600000
0.00
90
00
00
Med
ium
2 4
Suspensions
and delay that
is due to bad
3
5
%
120
000
00
420
000
0
High
Allowanc
e and
contingen
2
0
%
250000
0.00
50
00
00
Med
ium
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10HIGHWAY PROJECT
weather
cy to
cover the
risk
Research
of the
rainfall
and
weather
temperat
ure of the
previous
years
9 5 Poor quality
workmanship
1
5
%
250
000
00
375
000
0
High
Selecting
the
subcontra
ctors that
have an
experienc
e that will
lead in
constructi
ng the
quality
9
%
500000
0.00
45
00
00.
00
Med
ium
weather
cy to
cover the
risk
Research
of the
rainfall
and
weather
temperat
ure of the
previous
years
9 5 Poor quality
workmanship
1
5
%
250
000
00
375
000
0
High
Selecting
the
subcontra
ctors that
have an
experienc
e that will
lead in
constructi
ng the
quality
9
%
500000
0.00
45
00
00.
00
Med
ium
11HIGHWAY PROJECT
2.5
The risks that has been mentioned are important that has high attention level that will be
required in implementing the different mitigation and the recommendation level.
There is a need for the investigation in the environmental area to visit the site through a
careful planning that includes the necessary information as well.
The ideal contracting or the project delivery system will help to eliminate the contracting
and the financial risks like for example avoiding the price system in a fixed way over the project
overrun. The more the popularity is in Australia is through the system of the Alliance System for
the large amount of the projects that may be our future project.
There is a need to keep on the seeking for the professional and the skilled staffs in the
projects in the technical and the administration sectors to plan, conduct and that will manage our
projects in the future.
The competency in the system needs to be high as well that should be operated
prior and during the execution of the project amongst all its partners and project planners
in order to achieve the results that is supposed to be intended.
3.
The cost of the preparation of the bid will come upto $262,874 that includes the cost of
the site visits and its clarification.
3.1 Time of the Bid preparation
2.5
The risks that has been mentioned are important that has high attention level that will be
required in implementing the different mitigation and the recommendation level.
There is a need for the investigation in the environmental area to visit the site through a
careful planning that includes the necessary information as well.
The ideal contracting or the project delivery system will help to eliminate the contracting
and the financial risks like for example avoiding the price system in a fixed way over the project
overrun. The more the popularity is in Australia is through the system of the Alliance System for
the large amount of the projects that may be our future project.
There is a need to keep on the seeking for the professional and the skilled staffs in the
projects in the technical and the administration sectors to plan, conduct and that will manage our
projects in the future.
The competency in the system needs to be high as well that should be operated
prior and during the execution of the project amongst all its partners and project planners
in order to achieve the results that is supposed to be intended.
3.
The cost of the preparation of the bid will come upto $262,874 that includes the cost of
the site visits and its clarification.
3.1 Time of the Bid preparation
12HIGHWAY PROJECT
The calculations of the working time are 38 hours per week that is required to achieve the
assumptions that has the 8 hours of working on a daily basis that considers one day off after
every alternate four weeks that is shown in the calendar project (Etienne et al. 2016).
Weekly
working
time
Paid time Total time of year Weekend days of
year
Total week days
of year
Annual Leave Public
Holidays+ one
week for
achieving
38hrs/week
Sick
Leave
Long
Service
Leave
Actual
Working
Time
Week 38 52.0 4 3 2 1.3 41.7
Day 5 365 105 260 20 15 10 6.5 208.5
Hour 8 2080 160 120 80 52 1668
From the table 3.2 it clearly shows that the total cost for an individual to work in the
process of bidding and as a Bid co ordinator will cost the highest as it involves the maximum
amount of labor work. The bid clarification and the costs of the site visits has also been
added there.
3.3
The site visits will be required to collect necessary information that has to be on fixed
dates and the budgets regarding the bid clarification needs to met with approval from the
stakeholders. Some of those issues are:
Item New Project From To Direct cost
business
unit
overheads
Total
cost
1
Site Evaluation
visit 17-Mar-17 29-Mar-17 $ 25,000.00 $ 4,812.50 $29,814
2
Bid clarification
meeting 12-Jun-17 15-Jun-17 $ 13,000.00 $ 2,502.50 $15,503
Total $45,316
The calculations of the working time are 38 hours per week that is required to achieve the
assumptions that has the 8 hours of working on a daily basis that considers one day off after
every alternate four weeks that is shown in the calendar project (Etienne et al. 2016).
Weekly
working
time
Paid time Total time of year Weekend days of
year
Total week days
of year
Annual Leave Public
Holidays+ one
week for
achieving
38hrs/week
Sick
Leave
Long
Service
Leave
Actual
Working
Time
Week 38 52.0 4 3 2 1.3 41.7
Day 5 365 105 260 20 15 10 6.5 208.5
Hour 8 2080 160 120 80 52 1668
From the table 3.2 it clearly shows that the total cost for an individual to work in the
process of bidding and as a Bid co ordinator will cost the highest as it involves the maximum
amount of labor work. The bid clarification and the costs of the site visits has also been
added there.
3.3
The site visits will be required to collect necessary information that has to be on fixed
dates and the budgets regarding the bid clarification needs to met with approval from the
stakeholders. Some of those issues are:
Item New Project From To Direct cost
business
unit
overheads
Total
cost
1
Site Evaluation
visit 17-Mar-17 29-Mar-17 $ 25,000.00 $ 4,812.50 $29,814
2
Bid clarification
meeting 12-Jun-17 15-Jun-17 $ 13,000.00 $ 2,502.50 $15,503
Total $45,316
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13HIGHWAY PROJECT
Fig 3.3 Site visit and bid clarification details
3.4
Hou
rs Cost Hours
0 $15,387 200
16 $11,281 152
32 $0 32
$217,561 2696
$217,561 2712
Department Cost Hour
s HoursCost Cost
Summary of the cost and hours
Budget Estimate Work Phase
Scope Definition Estimation Review Submission
Hours
$64,847
Engineering $34,124
216 152
0
48
0144
$22,539
$11,168
Marketing & Sales 328
296
$12,699Planning
Contracts 96 40$7,125
Construction 88 0$6,770112
0
0
320
0
$28,533
$22,956
$8,616
$0
$0
$0
$26,490
Total
440
112$5,428$20,0791056$86,596
Cost
$3,599
1248$105,458 296
$641
$0
$0
$0
$1,187
$0
$45,157
$0
$10,177
$0
$0
$2,969
Costs of Site visit and Bid clarification meeting $45,316
$262,877Total Costs of Bid preperation Plus site visit and Bid clarification meeting
Total
744
208
920
$2,493
$4,440
$0Admin. 0 16
$15,192
Estimating $76,729
176
528
32
56
0
16
Fig 3.4 details on all expenditures
This table discusses the costs and the hours of the estimating department that has paid the
highest value on the hours and costs along with its estimation activities that has the highest
value. But in reality this definition scope will be paid the highest value on the site visits that is
conducted in the work phase and the added costs will be around $116,441.
4.1
The preparation of the Bid is almost of every four months that is from 6 March 2017 to
the 3rd of July and the working time is from is 8hours/ day and 5 days / week that also
Fig 3.3 Site visit and bid clarification details
3.4
Hou
rs Cost Hours
0 $15,387 200
16 $11,281 152
32 $0 32
$217,561 2696
$217,561 2712
Department Cost Hour
s HoursCost Cost
Summary of the cost and hours
Budget Estimate Work Phase
Scope Definition Estimation Review Submission
Hours
$64,847
Engineering $34,124
216 152
0
48
0144
$22,539
$11,168
Marketing & Sales 328
296
$12,699Planning
Contracts 96 40$7,125
Construction 88 0$6,770112
0
0
320
0
$28,533
$22,956
$8,616
$0
$0
$0
$26,490
Total
440
112$5,428$20,0791056$86,596
Cost
$3,599
1248$105,458 296
$641
$0
$0
$0
$1,187
$0
$45,157
$0
$10,177
$0
$0
$2,969
Costs of Site visit and Bid clarification meeting $45,316
$262,877Total Costs of Bid preperation Plus site visit and Bid clarification meeting
Total
744
208
920
$2,493
$4,440
$0Admin. 0 16
$15,192
Estimating $76,729
176
528
32
56
0
16
Fig 3.4 details on all expenditures
This table discusses the costs and the hours of the estimating department that has paid the
highest value on the hours and costs along with its estimation activities that has the highest
value. But in reality this definition scope will be paid the highest value on the site visits that is
conducted in the work phase and the added costs will be around $116,441.
4.1
The preparation of the Bid is almost of every four months that is from 6 March 2017 to
the 3rd of July and the working time is from is 8hours/ day and 5 days / week that also
14HIGHWAY PROJECT
considers one day as a public holiday. This also occurs once in every four weeks to achieve
the 38 hours/ week. Lastly, it can be said that the bid coordinator has the highest value and
cost of the work hours.
4.2
Table 4.2.1 Department code
No. Department Code
1 Administration ADM
2 Marketing MAR
3 Construction CON
4 Engineering ENG
5 Contracts CNT
6 Estimating EST
7 Planning PLG
Initials Department Description No. Name
MB Marketing & Sales Bid Coordinator 1 Mahmood Barakat
JS Marketing & Sales Bid production manager 1 Jane Snow
FN Marketing & Sales Production assistant 1 Francis Ng
DES Engineering Design Engineers 2 Design
CON Contracts Construction Engineers 1 Construction
CTR Planning Contracts 1 Contract
RP Planning Scheduler 1 Rick Parisalla
NA Estimating Planning Engineer 1 Nasrin Abdi
NPQ Estimating Lead Estimator 1 Nancy Perez Quintero
JB Estimating Estimator 1 John Ball
JP Estimating Estimator 1 Jill Pham
DR Estimating Estimator 1 David Rodan
BS Estimating Clerical Support 1 Bill Smith
CEO Administration Chief Executive offi cer & Board 1 CEO
considers one day as a public holiday. This also occurs once in every four weeks to achieve
the 38 hours/ week. Lastly, it can be said that the bid coordinator has the highest value and
cost of the work hours.
4.2
Table 4.2.1 Department code
No. Department Code
1 Administration ADM
2 Marketing MAR
3 Construction CON
4 Engineering ENG
5 Contracts CNT
6 Estimating EST
7 Planning PLG
Initials Department Description No. Name
MB Marketing & Sales Bid Coordinator 1 Mahmood Barakat
JS Marketing & Sales Bid production manager 1 Jane Snow
FN Marketing & Sales Production assistant 1 Francis Ng
DES Engineering Design Engineers 2 Design
CON Contracts Construction Engineers 1 Construction
CTR Planning Contracts 1 Contract
RP Planning Scheduler 1 Rick Parisalla
NA Estimating Planning Engineer 1 Nasrin Abdi
NPQ Estimating Lead Estimator 1 Nancy Perez Quintero
JB Estimating Estimator 1 John Ball
JP Estimating Estimator 1 Jill Pham
DR Estimating Estimator 1 David Rodan
BS Estimating Clerical Support 1 Bill Smith
CEO Administration Chief Executive offi cer & Board 1 CEO
15HIGHWAY PROJECT
Table 4.2.2 Staff descriptions and codes
Mahmood Barakat
Jane Snow
Francis Ng
Design
Design
Construction
Contract
Rick Parisalla
Nasrin Abdi
Nancy Perez Quintero
John Ball
Jill Pham
David Rodan
Bill Smith
CEO
$0.00
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
Cost to staff
Staff
Mahmood Barakat
Jane Snow
Francis Ng
Design
Design
Construction
Contract
Rick Parisalla
Nasrin Abdi
Nancy Perez Quintero
John Ball
Jill Pham
David Rodan
Bill Smith
CEO
0
100
200
300
400
500
600
Work to staff
Work
From the above table it is clear that the bid coordinator will have the highest cost values and the
working hours.
Table 4.2.2 Staff descriptions and codes
Mahmood Barakat
Jane Snow
Francis Ng
Design
Design
Construction
Contract
Rick Parisalla
Nasrin Abdi
Nancy Perez Quintero
John Ball
Jill Pham
David Rodan
Bill Smith
CEO
$0.00
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
Cost to staff
Staff
Mahmood Barakat
Jane Snow
Francis Ng
Design
Design
Construction
Contract
Rick Parisalla
Nasrin Abdi
Nancy Perez Quintero
John Ball
Jill Pham
David Rodan
Bill Smith
CEO
0
100
200
300
400
500
600
Work to staff
Work
From the above table it is clear that the bid coordinator will have the highest cost values and the
working hours.
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16HIGHWAY PROJECT
Task Name Cost
Bid Preparation $262,874.20
Scop Definition $116,411.60
Start date (request bid documents) $0.00
Receive bid documents & decide to bid (plan for bid) $3,111.04
Brief bid participants & stakeholders $6,222.08
Site Project Evaluation visit $43,173.84
Construction / Design prepare build strategy $17,302.88
Engineering prepare bid design & sizing $46,601.76
Estimation $105,459.28
Quantity take off and BofQ $27,412.80
Pricing standards for bid $11,706.88
Pricing of BofQ $24,769.92
Planning of Project $19,469.12
Risk assessment of Project $8,539.60
Set contingency & allowances $9,903.04
Prepare Draft Bid document $3,657.92
Review $35,581.80
Bid clarification meeting (on site) $21,474.20
Review bid with stakeholders $2,399.04
Convert Draft to Final Bid $4,298.56
Finalise bid for CEO Review $7,410.00
Submission $5,427.52
CEO Final Review $3,598.56
Finalise documents for bid submission $1,828.96
Submit Bid by 12 Noon $0.00
Completion $0.00
Low activities floated for long two days that includes the standards of the price for the
bid and the project planning
The schedule of the work will finish as the planned in the 3rd July 2017
Task Name Cost
Bid Preparation $262,874.20
Scop Definition $116,411.60
Start date (request bid documents) $0.00
Receive bid documents & decide to bid (plan for bid) $3,111.04
Brief bid participants & stakeholders $6,222.08
Site Project Evaluation visit $43,173.84
Construction / Design prepare build strategy $17,302.88
Engineering prepare bid design & sizing $46,601.76
Estimation $105,459.28
Quantity take off and BofQ $27,412.80
Pricing standards for bid $11,706.88
Pricing of BofQ $24,769.92
Planning of Project $19,469.12
Risk assessment of Project $8,539.60
Set contingency & allowances $9,903.04
Prepare Draft Bid document $3,657.92
Review $35,581.80
Bid clarification meeting (on site) $21,474.20
Review bid with stakeholders $2,399.04
Convert Draft to Final Bid $4,298.56
Finalise bid for CEO Review $7,410.00
Submission $5,427.52
CEO Final Review $3,598.56
Finalise documents for bid submission $1,828.96
Submit Bid by 12 Noon $0.00
Completion $0.00
Low activities floated for long two days that includes the standards of the price for the
bid and the project planning
The schedule of the work will finish as the planned in the 3rd July 2017
17HIGHWAY PROJECT
5.
In the section of the literature review the key aspects for the similar projects in some of
the same areas like the construction of the roads and the highways will be reviewed. So that
the future risks would not affect the business opportunity of the new firm.
5.1
Project name: M80 Ring Road Upgrade (Tulla Sydney Alliance)
5. Name of the client: Vic roads
Names of the contractor (Major Construction Companies):
Thiess Pty Ltd
Parsons Brinckerhoff
5.
In the section of the literature review the key aspects for the similar projects in some of
the same areas like the construction of the roads and the highways will be reviewed. So that
the future risks would not affect the business opportunity of the new firm.
5.1
Project name: M80 Ring Road Upgrade (Tulla Sydney Alliance)
5. Name of the client: Vic roads
Names of the contractor (Major Construction Companies):
Thiess Pty Ltd
Parsons Brinckerhoff
18HIGHWAY PROJECT
Hyder Consulting
Description
The project is concerned with the designing that is almost 6.7 km Calder Freeway to the
Sydney Road that is like a section of 38km. The M80 Ring Road has been upgraded to the traffic
environment that has installed and supplied a flyover bridge that includes the 19 curved steel
opens that has the traffic management drawings, infrastructure conflicts that includes the
relocation through the communication services, gas and water. The project started from July
2009 till May 2013. Adopting the delivery system for this project is from the Alliance
Contracting type. The key method for this construction is substantial communication that has
excellent traffic management system that is only limited to the suspensions and the expected
delays. The outer beams that has been cantilevered that is off the central beam and will make the
connection in the mid Span that has difficult maneuvers that is almost over the Tullamarine
Freeway and has occurred at night with a 3D employment of the model so that the crane lifts can
be optimized.
Project value
The basic formula that has been used to convert $ value to today’s value of dollar has
been shown below:
The value of the project can be derived from the following formulas
F = P x (1+i) n
F: Future value of money
P: Principle value of money – $657,000,000 Since Dec 2009
Hyder Consulting
Description
The project is concerned with the designing that is almost 6.7 km Calder Freeway to the
Sydney Road that is like a section of 38km. The M80 Ring Road has been upgraded to the traffic
environment that has installed and supplied a flyover bridge that includes the 19 curved steel
opens that has the traffic management drawings, infrastructure conflicts that includes the
relocation through the communication services, gas and water. The project started from July
2009 till May 2013. Adopting the delivery system for this project is from the Alliance
Contracting type. The key method for this construction is substantial communication that has
excellent traffic management system that is only limited to the suspensions and the expected
delays. The outer beams that has been cantilevered that is off the central beam and will make the
connection in the mid Span that has difficult maneuvers that is almost over the Tullamarine
Freeway and has occurred at night with a 3D employment of the model so that the crane lifts can
be optimized.
Project value
The basic formula that has been used to convert $ value to today’s value of dollar has
been shown below:
The value of the project can be derived from the following formulas
F = P x (1+i) n
F: Future value of money
P: Principle value of money – $657,000,000 Since Dec 2009
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19HIGHWAY PROJECT
i: inflation rate assumed as 4%
n: = numbers of year
The result shows the cost of project nowadays:
F = P x (1+i) n
F = $ 657,000,000 x (1 + 0.04) ^8= $ 899,149,866
Risks encountered on the project
The encountering the risks of the project has been basically accounted to understand the
suspension and the delays of the project:
Delay due to the weather has considerable amount of risks that needs working in the
traffic environment that is one of the important risk from where the project got affected.
The heritage and the environment is another substantial risk that has made a breakdown
description of the costs that is due in this project.
A suspension in this activity has been caused by the infrastructure that has utility
services, project routes, fibre optic cables, overhead electricity lines and the pipelines of
gas and underground water.
The existing infrastructure needs to be demolished so that a 24hour freeway closure to the
safety of the workforce can be maintained. The excellent traffic management has been
reduced to the expectancy delays that has made delivery as a free outcome.
5.2 West Gate Free Way
i: inflation rate assumed as 4%
n: = numbers of year
The result shows the cost of project nowadays:
F = P x (1+i) n
F = $ 657,000,000 x (1 + 0.04) ^8= $ 899,149,866
Risks encountered on the project
The encountering the risks of the project has been basically accounted to understand the
suspension and the delays of the project:
Delay due to the weather has considerable amount of risks that needs working in the
traffic environment that is one of the important risk from where the project got affected.
The heritage and the environment is another substantial risk that has made a breakdown
description of the costs that is due in this project.
A suspension in this activity has been caused by the infrastructure that has utility
services, project routes, fibre optic cables, overhead electricity lines and the pipelines of
gas and underground water.
The existing infrastructure needs to be demolished so that a 24hour freeway closure to the
safety of the workforce can be maintained. The excellent traffic management has been
reduced to the expectancy delays that has made delivery as a free outcome.
5.2 West Gate Free Way
20HIGHWAY PROJECT
There is a requirement to upgrade to the West Gate Free Way that is eventually a part of
the Monash- West Gate (M1). The construction is involved in extending and widening the
bridgeworks, motorway, access ramps reconfiguration and the reconstruction of the existing
traffic lanes. The project started in the year 2007 in October and was supposed to finish it on
December 2010. The project also included extending the road to 5.6 km between the Citylink
Tunnels and the West Gate Bridge. Almost more than 77,394 of the asphalt, 64, 364
concretes, 11, 311 steel, 5, 513 m of pipe and 87,000 m3 of the contaminated materials has
been reused in the construction of the project. Designing the project fixing for the common
delivery of the system has been constructed in a successful way in the field of their work.
Client: Vic Roads.
Major companies:
Thiess Contractors
Baulderstone Hornibrook.
Parsons Brinkerhoff.
Hyder Consulting
Temporary Infrastructures and the key constructional methods
The key constructional activity has a special requirement of enforcing the steel that has
been made to deck up the road and the structure of the barrier. For the asphalt, a new size of
the coarse gravel or the stone were used so that it could produce the courses of the pavement
at a 19 mm stone size instead of the 26.5 mm so that it can be avoided to make any possible
pavement failures in the late constructions that has a high durability. Almost a 20 m long
structure column has been constructed to deck up the road through different locations and
There is a requirement to upgrade to the West Gate Free Way that is eventually a part of
the Monash- West Gate (M1). The construction is involved in extending and widening the
bridgeworks, motorway, access ramps reconfiguration and the reconstruction of the existing
traffic lanes. The project started in the year 2007 in October and was supposed to finish it on
December 2010. The project also included extending the road to 5.6 km between the Citylink
Tunnels and the West Gate Bridge. Almost more than 77,394 of the asphalt, 64, 364
concretes, 11, 311 steel, 5, 513 m of pipe and 87,000 m3 of the contaminated materials has
been reused in the construction of the project. Designing the project fixing for the common
delivery of the system has been constructed in a successful way in the field of their work.
Client: Vic Roads.
Major companies:
Thiess Contractors
Baulderstone Hornibrook.
Parsons Brinkerhoff.
Hyder Consulting
Temporary Infrastructures and the key constructional methods
The key constructional activity has a special requirement of enforcing the steel that has
been made to deck up the road and the structure of the barrier. For the asphalt, a new size of
the coarse gravel or the stone were used so that it could produce the courses of the pavement
at a 19 mm stone size instead of the 26.5 mm so that it can be avoided to make any possible
pavement failures in the late constructions that has a high durability. Almost a 20 m long
structure column has been constructed to deck up the road through different locations and
21HIGHWAY PROJECT
also needs to be in form of the precast with a high tolerance level in the hexagonal cage
segments (Estrad and Romero 2016). There were also some of the supplement stations like
the storage areas, construction compounds, storage facility for the equipment, constructional
materials etc.
Value of project
In December 2010, the value of project is $600 million. To convert to today's dollars, we
will use the basic formula to convert $ value to today’s dollar:
F = P x (1+i) n
Where:
- F: $ today value of project (2016)
- P: $ value of project in June 2009 (mid of project construction period)
- i: inflation rate. Will be assumed 4%
- n: number of calculated period.
F=600,000,000*(1+0.04) ^9.5 = $870,899,364
Risk related to the projects
The transport and the traffic are the two most different risks that needs to be encountered
on this project. The road environment is different in the construction project that
eventually results in reducing the efficiency and the performance of their travel modes.
The changes in the road environment includes speed reductions, results in the temporary
roads or the cumulative impacts are some of the potential constructions in the three
also needs to be in form of the precast with a high tolerance level in the hexagonal cage
segments (Estrad and Romero 2016). There were also some of the supplement stations like
the storage areas, construction compounds, storage facility for the equipment, constructional
materials etc.
Value of project
In December 2010, the value of project is $600 million. To convert to today's dollars, we
will use the basic formula to convert $ value to today’s dollar:
F = P x (1+i) n
Where:
- F: $ today value of project (2016)
- P: $ value of project in June 2009 (mid of project construction period)
- i: inflation rate. Will be assumed 4%
- n: number of calculated period.
F=600,000,000*(1+0.04) ^9.5 = $870,899,364
Risk related to the projects
The transport and the traffic are the two most different risks that needs to be encountered
on this project. The road environment is different in the construction project that
eventually results in reducing the efficiency and the performance of their travel modes.
The changes in the road environment includes speed reductions, results in the temporary
roads or the cumulative impacts are some of the potential constructions in the three
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22HIGHWAY PROJECT
sections. The contractors could reduce the impacts that is evident in the road activities by
easily making a reschedule of the constructional works and making a developed action
plan that will help in reducing the impacts. These are some of the actions that needs to be
complied with the standards of the practices of the VicRoads and the Management code
of practices.
Aboriginal cultural heritage that has to be destructed in the occurrence in the occasional
context. The preparation of the contractor has to be approved in making the cultural
Heritage Management.
Other risks
The risks that has been explained below might cause great loss. One of those greatest
risks is the cost overrun.
Technical complexity that is primarily due to the size and the duration of the project is a
complete difficulty.
The changes in the technological and the economic risks and also the external risk is
primarily due to the modifications.
The inadequacy in the management of the project is primarily due to the low productivity
and the poor labor relations.
Unrealistic estimations due to the involvement of the uncertainties.
5.3 NEXY Project
sections. The contractors could reduce the impacts that is evident in the road activities by
easily making a reschedule of the constructional works and making a developed action
plan that will help in reducing the impacts. These are some of the actions that needs to be
complied with the standards of the practices of the VicRoads and the Management code
of practices.
Aboriginal cultural heritage that has to be destructed in the occurrence in the occasional
context. The preparation of the contractor has to be approved in making the cultural
Heritage Management.
Other risks
The risks that has been explained below might cause great loss. One of those greatest
risks is the cost overrun.
Technical complexity that is primarily due to the size and the duration of the project is a
complete difficulty.
The changes in the technological and the economic risks and also the external risk is
primarily due to the modifications.
The inadequacy in the management of the project is primarily due to the low productivity
and the poor labor relations.
Unrealistic estimations due to the involvement of the uncertainties.
5.3 NEXY Project
23HIGHWAY PROJECT
Background
The Adelaide is the biggest road project that is from 1960 and provides an outstanding
value for money. The length is 23 km and is divided into four lanes joining the Sturt Highway
that is at the Gawler Bypass. The project includes 11 bridges and 460000 tons of asphalt and 3.5
million cubic metres of the earthworks. The pavement is specially designed for the smoothest
roads in Australia. Almost 3000+ people have been employed during this project that had a
strong focus on the safety and connections with the local community. The construction of the
project started late in 2008 and was completed by 2010. This is run by the delivery system like
the construct and the design system.
Client
The departments like transport, energy and infrastructure has been accounted to the
delivery system in the expressway.
Major companies
Background
The Adelaide is the biggest road project that is from 1960 and provides an outstanding
value for money. The length is 23 km and is divided into four lanes joining the Sturt Highway
that is at the Gawler Bypass. The project includes 11 bridges and 460000 tons of asphalt and 3.5
million cubic metres of the earthworks. The pavement is specially designed for the smoothest
roads in Australia. Almost 3000+ people have been employed during this project that had a
strong focus on the safety and connections with the local community. The construction of the
project started late in 2008 and was completed by 2010. This is run by the delivery system like
the construct and the design system.
Client
The departments like transport, energy and infrastructure has been accounted to the
delivery system in the expressway.
Major companies
24HIGHWAY PROJECT
York civil
Fulton Hogan
Temporary infrastructure and construction methods
The alliance team made changes to the designing concept that might drive significant
improvements in their area of functions. A revised layout of the Montague street which is a
unique innovation that is interchangeable to the single urban diamond point that has made the
movement of the traffic and its capacity in a safe queue way. There is also an implementation in
the sustainability initiatives that needs to be changed by the specifications of the environment. A
staged ram opening was done in the year 2009, where the travelling speed is improved on an
average freeway by 20 km per hour in the Westbound and 10km per hour in the eastbound which
is specially during the peak travelling times. Sustainability initiatives has also been implemented
that has contributed enough change in the environmental specifications of the VicRoads. A
reduction was also made on the carbon footprint of the project by only 34% that is with the use
of the alternative materials and low embodied energy products and also with the re use of the
generated waste products. Lastly 87,000m3 landfill space was avoided by eliminating more than
12,000 movements of the truck on the public roads that has been reduced to feel the consumption
by only 11,000 tons of the carbon dioxide.
Start and finish date
The major works started in September 2008 to December 2010
Project Cost
York civil
Fulton Hogan
Temporary infrastructure and construction methods
The alliance team made changes to the designing concept that might drive significant
improvements in their area of functions. A revised layout of the Montague street which is a
unique innovation that is interchangeable to the single urban diamond point that has made the
movement of the traffic and its capacity in a safe queue way. There is also an implementation in
the sustainability initiatives that needs to be changed by the specifications of the environment. A
staged ram opening was done in the year 2009, where the travelling speed is improved on an
average freeway by 20 km per hour in the Westbound and 10km per hour in the eastbound which
is specially during the peak travelling times. Sustainability initiatives has also been implemented
that has contributed enough change in the environmental specifications of the VicRoads. A
reduction was also made on the carbon footprint of the project by only 34% that is with the use
of the alternative materials and low embodied energy products and also with the re use of the
generated waste products. Lastly 87,000m3 landfill space was avoided by eliminating more than
12,000 movements of the truck on the public roads that has been reduced to feel the consumption
by only 11,000 tons of the carbon dioxide.
Start and finish date
The major works started in September 2008 to December 2010
Project Cost
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25HIGHWAY PROJECT
In December 2010, the value of project is $564 million. To convert to today's dollars, we will use
the basic formula
F = P x (1+i)n
- F: $ today value of project (2017)
- P: $ value of project in September 2009 (mid of project construction period)
- i: inflation rate. Assumed as 4%
- n: = number of calculated period.
F=564,000,000*(1+0.04)9 = $802,747,862
Risks encountered on the projects
The estimations are unrealistic and has eventually increased the costs of the projects. From the
report there is a need to increase in the costs.
1. Unrealistic estimates: The changes that is present in the project might cause to increase
the cost of the project which starts from the value $370 million, but the final cost of the
project at the end was $564 million that had a cost of an increased by 66%. As per the
report of the Australian Constructional Achievement Award it can be said that the
increase is specifically to maximize the scope of the work on NEXY. Hence there is a
shortage in the sources that needs to be talked about that will eventually increase the cost
that cannot be governed only if the increase is on the variations or the cost overrun.
2. Delivery of materials in the bridges: In this project a total of 15 bridges has been
constructed. The South Australian State was eventually not ready to gear up for this road
project hence in this case the material is a logistical challenge for the project. In order to
In December 2010, the value of project is $564 million. To convert to today's dollars, we will use
the basic formula
F = P x (1+i)n
- F: $ today value of project (2017)
- P: $ value of project in September 2009 (mid of project construction period)
- i: inflation rate. Assumed as 4%
- n: = number of calculated period.
F=564,000,000*(1+0.04)9 = $802,747,862
Risks encountered on the projects
The estimations are unrealistic and has eventually increased the costs of the projects. From the
report there is a need to increase in the costs.
1. Unrealistic estimates: The changes that is present in the project might cause to increase
the cost of the project which starts from the value $370 million, but the final cost of the
project at the end was $564 million that had a cost of an increased by 66%. As per the
report of the Australian Constructional Achievement Award it can be said that the
increase is specifically to maximize the scope of the work on NEXY. Hence there is a
shortage in the sources that needs to be talked about that will eventually increase the cost
that cannot be governed only if the increase is on the variations or the cost overrun.
2. Delivery of materials in the bridges: In this project a total of 15 bridges has been
constructed. The South Australian State was eventually not ready to gear up for this road
project hence in this case the material is a logistical challenge for the project. In order to
26HIGHWAY PROJECT
find out the location a plan was executed by the contractor along with the alignment that
will help the beams to be safely stored without affecting the work of the construction.
There are some of the significant factors for the cost and the time overrun in the highway
and the road projects that has lack of efficiency in the equipment efficiency, delay in payments
by the owner, poor communication and political situation between the constructional parties.
There is a need to reduce the risks that has both time and cost overrun that may cause
some of the factor, time and cost delay that needs to be controlled by the company. The time
schedule for the delivery of the material in the process sites, quality monitoring activities or
setting a reasonable slack in their schedule to avoid the delay in the employment and the project
of the skilled labor. Hence, the external factors can be controlled by setting in the allowances and
thee contingency. This will eventually reduce the impacts on the cost and the time overrun
(Estrada and Romero 2016).
find out the location a plan was executed by the contractor along with the alignment that
will help the beams to be safely stored without affecting the work of the construction.
There are some of the significant factors for the cost and the time overrun in the highway
and the road projects that has lack of efficiency in the equipment efficiency, delay in payments
by the owner, poor communication and political situation between the constructional parties.
There is a need to reduce the risks that has both time and cost overrun that may cause
some of the factor, time and cost delay that needs to be controlled by the company. The time
schedule for the delivery of the material in the process sites, quality monitoring activities or
setting a reasonable slack in their schedule to avoid the delay in the employment and the project
of the skilled labor. Hence, the external factors can be controlled by setting in the allowances and
thee contingency. This will eventually reduce the impacts on the cost and the time overrun
(Estrada and Romero 2016).
27HIGHWAY PROJECT
References
Estrada, A. and Romero, D., 2016. Towards a Cost Engineering Method for Product-Service
Systems based on a System Cost Uncertainty Analysis. Procedia CIRP, 47, pp.84-89.
Etienne, A., Mirdamadi, S., Mohammadi, M., Malmiry, R.B., Antoine, J.F., Siadat, A., Dantan,
J.Y., Tavakkoli, R. and Martin, P., 2017. Cost engineering for variation management during the
product and process development. International Journal on Interactive Design and
Manufacturing (IJIDeM), 11(2), pp.289-300.
References
Estrada, A. and Romero, D., 2016. Towards a Cost Engineering Method for Product-Service
Systems based on a System Cost Uncertainty Analysis. Procedia CIRP, 47, pp.84-89.
Etienne, A., Mirdamadi, S., Mohammadi, M., Malmiry, R.B., Antoine, J.F., Siadat, A., Dantan,
J.Y., Tavakkoli, R. and Martin, P., 2017. Cost engineering for variation management during the
product and process development. International Journal on Interactive Design and
Manufacturing (IJIDeM), 11(2), pp.289-300.
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