Project Execution Planning and Management

This report discusses project delivery methods, financial contract types, procurement methods, and risk management in project execution planning and management. It includes a case study of an organization and highlights the best practices in each area. The report provides insights into the importance of effective planning and management in successful project execution.

SBM3302 PROJECT
EXECUTION PLANNING
AND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Project.....................................................................................................................................2
Project Delivery method.........................................................................................................2
Financial contract type...........................................................................................................4
Procurement method...............................................................................................................5
Risk Management...................................................................................................................6
CONCLUSISON.............................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Bluewolf, an IBM Company, is a global consulting agency and proven Sales force strategic
partner that builds digital solutions designed to create result. This report is based on the case
study of an organization. This report highlights the case study of the company. After that report
highlights the best project delivery method in the organization. After that the report highlights
the different type of the financial contract in the organization and also the best out of them. Then
report highlights the procurement and best out of them. In the end report highlights the risk
management plan of an organization;
MAIN BODY
Project
Blue wolf is looking to incorporate the software to improve the operational function of an
organization.
Case Study
Blue wolf organization is looking to incorporate the operational management tool in the
organization, to improve the different operational function of an organization. Generally
organization is taking this sort of the decision in the organization to reduce the cost incurred by
the organization to carry out different operation. As in recent past there is good rise in the cost of
the company in the market. For the same reason they have hired a project team in the
organization. In real they have hired a project manager in the organization and has asked him to
carry out the different project team and all the activity of the project. Organization has just
passed on the different aims and objective to the project manager in the organization (Meredith,
Mantel and Shafer, 2017).
Project Delivery method
Design-Bid-Build: Design-Bid-Build, is the type of project delivery method in which owner of
the project used to contact with different entities in market for design and construction of
different project in the organization. This project delivery tool goes through three different phase
that is Design phase, bidding phase and Construction. In first phase different design and produce
bid document, In Second phase different qualified bidder used to participate, out of all one
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contractor are awarded with the contract. In the last phase after taking permission of different
authority to start the construction of project (Kerzner, 2017).
Advantage and Disadvantage
This project delivery method used to designs team look out of interest of owner and also this is
cheapest form of delivery. At the same time difficult to resist any sort of change in project. Also,
it is difficult to redesign expense can create dispute in organization.
Design build: It is the type of project delivery method in which owner of the project just used to
contact one entity for designing and construction of project for the client. This is sub divided
into architect led and design build. Generally in this project delivery method all the functions are
performed in same way as Design bid build. Just second phase of bid is eliminated from the
project delivery method. As there is only one entity to complete the project.
Advantage and Disadvantage
This type of project delivery method used to consume lower amount of time as compare to other
as it used to bring good sort of clarity in the function. At the same time it also gets benefit of
single source as only one contractor has to contract. On the other hand this delivery does not
make use of competitive bidding in the organization this eventually used to lower down the level
of innovation in the project (Mesa, Molenaar and Alarcón, 2019).
Construction management at risk: It is the type of the delivery method in which construction
manager entails a commitment to complete the project for the organization in a Guaranteed
Maximum Price in most of the cases. Generally in this delivery method construction manager
used to work as a consultant to design, develop and construct different phase.
Advantage and Disadvantage
Owner’s interest is taken into account in Construction management at risk project. Also,
Construction management at risk project used to take the burden of owner in managing different
project. On the other hand this generally used to increase the cost of the company in the market
as this is carried out on maximum price.
Project Delivery method Preference Score card
Design-Bid-Build 2
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Design build 1
Construction management at risk 3
*Score card: 1 higher, 2 moderate and 3 is low
For this project Design build is the delivery method which will be used as this delivery
project management is simple to carry out in the organization. This will eventually help the
company in getting the project done very efficiently and effectively.
Financial contract type
Lump Sum contract: Lump Sum Contract is the traditional form of financial contract
type in the project. This is one of the most common forms of financial contractual type which is
generally used in the construction project. In this contract a single price for all the activity is
agreed in well advance before the work begins in the organization. This is the type of the
contract used when project is well defined in the organization (An, Wang, and Ding, 2018).
Advantage and disadvantage
This project used to lower down the risk at the client end. As all the risk are generally born by
the projector as every aspect of finance are clear to contracted party. Also, it gives an adequate
time period span for owner to arrange the capital. At the same time delay in finance from client
end used to delay the project. Also procurement time used to be long in this financial contract.
Guaranteed Maximum Price Contract: It is the type of the financial contract in which
the contractor is generally compensated for the amount of the cost incurred in the project plus a
fixed fee is paid to the contractor to carry out the project for the organization. In this project the
contract manager in the organization is responsible for the cost overruns in the organization.
Advantage and disadvantage
This type of the financial contract is beneficial in the situation where contractor if
reimbursement is written into the contract. Also this financial contract used to encourages the
contractor to cut down different cost. At the same time in this financial contract it is difficult to
uncertain the different cost which will be require by the owner to carry out the different
operation in an organization (Zhou, 2020).
Cost-Plus Fixed Fee Contract: It is the type of financial contract in which contractor in
the organization is paid for the normal expenses which used to take place in the organization and
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also additional fixed fee for the different services which are generally performed in the
organization. This generally used to help the contractor in the financial contract to collect a
profit on the project in the organization. This eventually used to encourages the economic
productions in the process of the carrying out the project.
Advantage and disadvantage
Biggest advantage of this contract is that the final cost which are ascertain in the project are
always lower than the normal contract in the project., as contractor in the project will not inflate
different prices in the organization to cover the different risk. Also, high quality of the project is
generally accepted in the project as good amount of incentive is linked for the contractor to carry
out different project. At the same time this type of the contract generally requires a additional
administration as well as used to oversight the project in the organization. So that contractor is
factoring the various cost factors.
After going through all financial contract it has been analysis that Lump Sum contract
will be the best financial contract type which can be used in the organization to carry out the
project for the organization. Reason behind the same it used to lower down the risk of the client
in carry out the different project in the organization.
Procurement method
Best value procurement method: This method focuses on all the factors while selecting vendor
or contractor i.e. price, quality and expertise. Cost and benefits are two bases on which the value
of procured goods can be compared. Generally, this type of procurement method is used when
the amount of the contract is too high. As it is the time when organization is able to get the cost
benefit for the same activity in the organization (Fleming, 2019).
Advantage and Disadvantage
This method is more suitable than other as it helps in reducing risk and there is less decision
making. It helps in properly managed and controlled risk. It also helps the organization in
deriving highest value form purchase. At the same time this method also leads to higher losses
as well.
Negotiation procurement method: Formal price competition, formal advertising are not
considered while selecting employee in this method. It considered government advantage, price
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and other factors in negotiation method. This is the method in which organization and
procurement party used to have different though on different factor both the party used to seat
together and try to find out the solution which is accepted by both organization and other party
in the negotiation.
Advantage and Disadvantage
In this type of the procurement method flexibility is enjoyed by client as they have choice in
selecting the contractors on the basis of different service which is provided by them in the
organization. Also it used to enhance the efficiency as it used to save cost and time of the
organization (Tabors and et.al., 2019). At the same time on the other hand in this method client
have number of option among employees this lead to reduction in innovation and their so trust
issue among parties.
Competitive procurement method: In this method before selecting supplier a buyer gets
number of proposal. Buyer evaluates them and then selects the appropriate one. Generally in this
procurement method the organization used to see the offering of different company to the
organization and on the basis of the same organization used to select the best vendor to procure
the different requirement in the organization.
Advantage and Disadvantage
This method is more transparent as compare to others. As they get many proposals it promotes
competition. At the same time looking at the looking at the disadvantage of the project it has
find out that it used to consume method as it consist many paper work and procedures and to
compete with competitors price many company sell the goods at high price as well.
For this project Competitive procurement method is the best method as it used to provide the
good sort of choice to select the best vendor out of all competitors available in the market. This
will eventually help the company in getting the better cost resources to be procured. Also,
organization is able to procure a good quality of the resources in the organization as organization
is able to understand the resources which are require by them in the market.
Risk Management
Risk Risk Quadrant
Analysis
Risk mitigation
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Impact Possibility
Inadequate finance
It is the type of the risk which may
occur in the project, when project is
not able to carry out the adequate
amount of the finance in the
organization to carry out the different
operation of the project that easily in
the market. Generally this type of the
risk occurs in the organization when
there is not that good amount of
clarity among the project sponsor or
fault in the forecasting process of the
business (Leva and et.al.2017).
High Not
frequently
To overcome the same risk in
the project, project manager has
to make sure that they used to
bring the good sort of clarity
and is directly in contact with
the client. This will eventually
help the project manager in
getting different knowledge
about the finance require and
on the basis of same different
fund can be sourced.
In proper schedule of project
This sort of risk can be occurring in
the project when project manager is
not able to schedule the different
operation of the business that
properly in the organization.
Generally this type of risk occurs
when the project manager does not
used to forecast the different activity
that proficiently also due to unclariety
among the employee of the
organization.
Modera
te
Frequently This type of the risk can be
minimized in the organization
by proper forecasting of
different activity in the
organization. Also by bringing
good flow of communication in
the organization. This will
eventually help the project
manager in scheduling the
different task very efficiently in
the market (Randall and Kroll,
2017).
Wastage and scarcity of resources
This is another risk which is
associated when project will not able
to get the enough amount of the
resources in the organization due to
High Frequently This type of the risk in the
organization can be overcome
by the organization by
providing proper guidelines to
all the employee in the
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wastage of different type of the
resources in the organization. This
generally may occur in the
organization when all the employee in
the organization are not given proper
training about usage of different
resources in the organization.
organization about the way they
can carry out different
operation in the organization.
Also by adopting the variety of
the different type of operational
management tool to reduce the
wastage of the different
resources in the organization.
So that organization is able to
optimum utilize the different
resources in the organization.
Employee turnover
It is one of the biggest risks
associated with carrying out the
project. As it has been seen that many
employee in the organization used to
leave the project due to some of the
other reason. Reason can be amount
of workload or conflict between the
different employees. This generally
used to increase the recruitment cost
of the company in the market.
High Not
Frequently
This type of the risk can be
reduced in the project by
bringing a good sort of
motivation for the employee in
the market. This can be done in
the market by providing good
incentive as well as wages to
different employee to carry out
different operation of the
business. Also, organization
can look to bring good sort of
clarity among the employee in
the organization. This will
reduce the amount of the
conflict among them and will
eventually reduce the impact of
same in project (Mun, 2017).
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CONCLUSISON
After going through above report it was concluded that there are many different type of project
delivery, procurement and financial contract in the project. Out of which organization can select
any one of the same to carry out different operation of the project. Report than conclude that
competitive method, Bid contract and Lump sum are some of the project delivery, procurement
and financial contract are used by the project manager in this project. In the end the report
conclude the different risk in project and mitigation plan of the same in the organization.
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REFERENCES
Books and Journals
Meredith, J. R., Mantel Jr, S. J. and Shafer, S. M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Mesa, H. A., Molenaar, K. R. and Alarcón, L. F., 2019. Comparative analysis between
integrated project delivery and lean project delivery. International Journal of Project
Management. 37(3), pp.395-409.
An, X., Wang, Z., Li, H. and Ding, J., 2018. Project delivery system selection with interval-
valued intuitionistic fuzzy set group decision-making method. Group Decision and
Negotiation. 27(4), pp.689-707.
Zhou, L., 2020. Zheshang Jinhui Trust Co., Ltd. v. Zhejiang Sunion Group Co., Ltd., Sunion
Holdings Group Co., Ltd., et al.(Dispute over Financial Loan Contract)—Creation of
Mortgage of Project under Construction and the Scope of the Collateral. In Selected
Cases from the Supreme People’s Court of the People’s Republic of China (pp. 131-
139). Springer, Singapore.
Fleming, Q. W., 2019, January. Project procurement management: contracting, subcontracting,
teaming. Project Management Institute.
Tabors, R and et.al., 2019, January. Nodal Project Evaluation Applied to Large-Scale Renewable
Energy Procurment: A case analysis of Massachusetts clean energy initiative.
In Proceedings of the 52nd Hawaii International Conference on System Sciences.
Leva, M. C., and et.al.2017. Risk registers: Structuring data collection to develop risk
intelligence. Safety science. 100, pp.143-156.
Randall, K. P. and Kroll, S. A., 2017. The legal risk of risk registers. Risk Management. 64(1),
pp.10-12.
Mun, J., 2017. Qualitative and quantitative modeling of enterprise risk management and risk
registers. U.S. Patent 9,811,794.
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