SMB3302 Project execution planning and management

SMB3302 Project execution planning
and management
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Table of Contents
INTRODUCTION...........................................................................................................................3
1. Project for company.................................................................................................................3
2. Background of case project.....................................................................................................3
3. Recommendation for best project delivery method.................................................................4
4. Evaluate best financial contract type.......................................................................................5
5. Evaluate best procurement method..........................................................................................6
6. Develop risk management plan...............................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
In every business there are various types of projects which are undertaken by them. The
project consists of many components such as scope, goals, resources, time frame, etc. thus, it is
necessary for project manager to ensure that project is completed in time. Basically, there are
certain crucial decision which has to be made regarding project (Badiru, Badiru and Badiru,
2018). They are selection of project delivery method, financial contract type and procurement.
Alongside, it is essential to identify risk associated with project so that proper measures are
taken. In present report it will be described about developing of online website in small
company. also, several project delivery methods will be explained along with financial contract
type. Furthermore, procurement method will be mentioned as well in it. At last a risk
management plan will be developed.
1. Project for company
A small company that is engaged in providing retail products and services to people is now
considering to develop website (Džumhur, Ljevo and Marić, 2017). However, they want to
expand in other areas and also want to retain customers. Thus, it has enabled them to focus on e
commerce. So, as the firm is engaged in providing digital solutions to and website development
for many years. Thus, this project is been undertaken by our company to develop a website
which will offer products and services to customers online. The website development project is
going to be crucial for our growth and development
2. Background of case project
A small retail company is operating in Australia and offering variety of retail food items to
people. They are having a moderate customer base and want to expand in wide area. Also, sales
and profits generated are rising every month. However, with technological advancement it has
become difficult to upgrade their IT infra as huge cost is required and they can not afford it.
Besides that, it has been analysed that there is decline in sales of company as customers find it
difficult to visit store and buy food items (Jaafar and Yusof, 2019). Due to it, they are not able
to retain customers as well. Moreover, with increase in competition many other issues are faced.
So, it has forced company to develop their own website and offer goods online. So, for that
management has taken decision to initiate a project regarding it. Therefore, as organisation lack
IT resources and also HR so the owner has decided to give project to third party. It will be useful
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for business to focus on store until website is developed. Along with it, this project will be useful
in increasing sales and profits.
3. Recommendation for best project delivery method
A project delivery method is system used to organise, design, operate and maintain
services for structure through a legal document. The project is required to be delivered with
suitable method so that it is finished on time. The delivery method is way of initiating, executing
and completing of different project stages in effective manner. Also, selection of delivery
method depends on project type and size (Kjersem, Jünge and Emblemsvåg, 2017). So, it is
necessary to chose suitable method otherwise it can lead to failure of project. Besides that,
project might not be finished on time or more resources and cost is required. In addition, each
delivery method consists of different stages that vary from one another. Moreover, features and
complexity differs in them. Hence, it becomes crucial for project manager to evaluate them and
chose best one suitable for project. The project delivery methods are defined as:
Design bid build- it is a common method used in delivering projects. there are several stages in
it. First is owner separate contract with a contractor. Thus, after design documents are completed
then bidding process starts. However, the designer and contractor both are separate but all risk is
beard by owner. The method is less collaborative than other but also most preferred. However,
in this cost incurred is less as compared to other delivery methods. there are huge risks involved
in this as method is based on deign and bid. Hence, it becomes difficult for owner to switch to
other method.
Design build – it is a delivery method that provides owners with a single point of contact for both
the design and construction phases of a project. Here, one entity holds responsibility and
contractual risk for every aspect of a build that is from estimation, assessments to architecture,
subcontracting and completion. This entity, the Design Builder, manages all contracts with
companies, such as subcontractors, vendors and suppliers. There are five stages in this that is
selection of design builder, assessment required, design, construction and completion. There is
effective integration between all members (Liang and O’brien, 2016).
CM at risk method- in construction management method time is reduced which allows in
completion of project. Here, a manager is hired who possess high technical and financial skills.
Basically, an individual or organisation is able to play the role of CM. the firm acts as an owner's
consultant during initial development phase of the project. During this process, the owner of the
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