Project Execution and Management Report: ADCO Constructions

This report examines a construction project undertaken by ADCO Constructions, a respected Australian construction organization. It begins with an introduction to ADCO, its background, and a brief overview of the chosen construction project – the construction of a two-story medical building in Wales, Australia. The report then delves into project delivery methods, evaluating Design-Bid-Build, Design-Build, and Construction Manager at Risk, and recommending Design-Build as the ideal method for the project. Furthermore, it explores financial contract types, including Lump-Sum, Guaranteed Maximum Price, and Cost Plus Fixed Fee contracts, providing a comprehensive analysis of project management strategies and financial considerations in the construction industry. The report highlights the importance of selecting appropriate project delivery and financial contract methods for successful project outcomes.

Running head - PROJECT EXECUTION AND MANAGEMENT
Project Execution and Management
Name of the student
Name of the university
Author’s note

1PROJECT EXECUTION AND MANAGEMENT
Introduction
ADCO Constructions is considered to be one of the most respected and trusted
construction organisation at Australia. The organisation is also known for its ability of
delivering crucial projects within a particular timeframe. ADCO Construction has been
delivering projects throughout the country (Construct 2019). The organisation has a supply
rate of more than 3500 projects within 10 years around the nation, with minimum chances of
mistake. The organisation was established in the year of 1972. The price of all the projects
that the organisation have delivered could be estimated to be over $10 billion. The
organisation directly employs more than 580 individuals and have also been named in the list
of top 10 private organisation in the country (Construct 2019).
The following report would be discussing about a construction project that have been
taken by ADCO constructions. The brief summary of the project would be discussed in the
report along with the project purpose and its context. Therefore, the report would also be
discussing about the project delivery system and its application over construction companies,
along with providing the best recommendation of project delivery method to be used in the
chosen project. The report would also be addressing the basic contract type adopted for
completing the project. The report would also be discussing about the application of
procurement techniques and would also recommend the best procurement method to be used
by ADCO construction for completing the project.
Discussion
Background of the company
The targeted organization in the following report is ADCO constructions. The
organisation has been running by the joint partnership between the chairpersons (Construct
2019). The organisation have completed projects like non-residential projects and also

2PROJECT EXECUTION AND MANAGEMENT
capable of taking tenders all over the nation. The estimation of the tenders that is taken by the
organisation could be more than $1.4 billion. All the projects that are taken by the company
are licensed and also monitored by the Government of Australia. There have been critical
checks on the project which are taken by the company as most of the projects are related to
public residential and transport. Therefore ADCO Constructions could be regarded to be
secure for delivering the project in time (Construct 2019).
Background of the project
The project which has been taken by ADCO Constructions is the construction of two
story building. The main purpose of the building would be used for medical reasons. The
construction of the building is being developed on the hard terrain of Wales, Australia
(Construct 2019). It is been estimated that the project would be finished within the timeframe
provided by the client. It also have been predicted that the project would be completed within
the cost provided by the client. The main purpose of the project is to provide medical
attendant to the local residents.
Project delivery method
The project delivery method or the structure of project delivery method is considered
to be a system which maintains the interest of the primary team. The main interest of the
designated team is considered to be consisting of many types of members which would be
arranged in a specific manner or specific pattern that would integrate the project ideal result
among the members. The method is used and define in such a particular way that all the
results outcome from it is processed or collaborated (Touran and Burgos 2018). The
technique of project delivery process itself could be categorised as a process of value-based,
where the distribution of the project is high and it also has the outcome resulting from the

3PROJECT EXECUTION AND MANAGEMENT
processing of various methods in the project model, which in fact categorised into high
quality outcomes.
The project delivery method is used in the construction industry in various ways,
which allows the owner to deliver the required outcomes as wanted by the customer. After
the implementation of the system, the project’s result would be helping the organisation in
delivering the whole project at one time. An organisation or any company uses the method of
project delivery system for organising the layout of the project and the finances of the project
before execution (Antoniou and Aretoulis 2018.). The project would be organised and
financed in various other industries such as building operation, and service maintenance in
the industry. The system of project delivery appears to enter in various legal contracts with
more than one establishment or parties involved in the process of the project.
There are various kind of technique which is used in delivering the project. Methods
such as design bid build, design bid with construction, design build operate maintain, build
operate transfer, integrated project delivery and public private partnership are some of the
method which is used as project delivery system.
The methods which would be evaluated in the following reports are designed bid
build, design build and construction manager at risk.
Design bid build
The project delivery system known as design bid build, is considered to be a
particular project delivery system which is developed by the owner of the company or the
organisation, taking up a contract (Franz, et al. 2019). The system or the method is used for
drawing the contract papers which would be produced between the architecture and the
engineer who have been assigned for completing the project. The paperwork of the project
delivery system would be consisting of various sets of blueprints and comprehensive

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documentation of the project which is yet to be specified and finished. All the officers related
to project are requested from the consultant of the project, which would be appointed on the
basis of the documentation. The contract would be granted to the contractors having the
minimum bid for completing the project after the process of documentation is over. In this
particular way, it would be easy for the owner to keep track of all the process going in the
project and it would also help the owner to produce a quality work which would meet the
expectations of the client (Franz, et al. 2019). The process would also help the firm owner to
handle the related project documents and demand carefully.
Design build method
The project delivery system known as the design build method is considered to be a
particular system or method used in the project delivery for completing a project in the
construction industry or used by a particular building company (Khwaja et al. 2016). The
method provides assistance in delivering the project where the designer of the construction
and the service is the single entity, who would be controlling the project. In this particular
design method, the designer is considered to be the all in all. The individual who is quantified
to be the design builder or the design executer, would be keeping all the tracks of the project.
The agreement would be splitting into the architecture or the contractor according to the will
of the owner of the project.
The project would be reliable in the particular system, where only one individual
would be responsible for accounting all the projects agreement (Khwaja et al. 2016). This
system would help in minimising the risk factor for the project owner and would also reduce
the timetable for shipping by overlapping the design stage into the project phase of building.
The traditional strategy in the project delivery system would consist off the stage, with the
developers on one side and appointing the contractor on the other side. The design build

5PROJECT EXECUTION AND MANAGEMENT
system is also compared with the master building strategy or system because this particular
project delivery method is one of the oldest method to be used in the construction industry
(Khwaja et al. 2016).
Construction manager at risk
The construction manager at risk is a particular project delivery method which is
considered to be an effective process of delivering the project (Ma, Zhang and Li 2018). The
technique could be measured in by creating certain characteristics, which would be
commitments produced by the project manager for delivering the project with maximum
guaranteed price set. The cost of finishing the project is organised and fixed by the company
or the owner of the project. It is the job of the construction manager to act as the personal
adviser of the project owner. The manager appointed to control the construction would also
need to behave as the owner’s advisor during the time of designing and the development of
the project. During this process, ta basic relationship would be altered in between the
construction managers, due to the fact that the construction managers’ would be obliged
within a particular GMP (Ma, Zhang and Li 2018). At the building site itself, the project price
would initially be controlled and changed by the supervisor.
Ideal project delivery method for ADCO Construction
After evaluating the project delivery method, it could be said that the design bit
construction would be the ideal project delivery method which could be used by ADCO
construction to complete this project. With the evidence, providing at the project and the set
contractor, it would be easy for ACCO construction to deliver the project (Naoum and Egbu
2015). As considering the bidding process present in the project delivery system, the process
would be performed accordingly on the basis of fundamental departments of the project. Due
to the brand loyalty that the organisation has acquired, it would be easy for the organisation

6PROJECT EXECUTION AND MANAGEMENT
to provide some of the finest Australian contractor to complete the project. Henceforth, the
design build construction technique would be ideal for at construction to complete the two
story building project.
Financial contract type
The term contract type is particularly used to identify the particular fundamental
finances that would be used to complete the project. This finances would also include the
various types of contracts and the agreement made between the government and contractors
hazards. These contracts would basically quantifying all the risk factors and the cost related
to the project which would be used to complete the project (Naughton et al. 2017). The
contract are termed to be the mutual understanding of all the legal agreement emerging
between the two parties. These parties are namely the organisation and the owner of the
project. Most of this agreement are based on corporate policies and the conditions which is
set between both the parties.
The categories which would be evaluated in the following report are lump-sum
contract, guaranteed maximum price contract and cost plus fixed free contract.
Lump-sum contract
This particular type of contract is basically used in construction industry. It is
considered to be a type of building contract which would be referring some of the preferred
amounts needed to complete the project in a single cost (Stopka, et al. 2016). Ideally, in the
beginning of the project, a particular amount would be handed over to the contractor to
complete the project which is known as lump-sum. Therefore, within this cost it is estimated
that the project would be completed.
Guaranteed maximum price agreement

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Basically, this is the kind of agreement is drawn between the contractor and the
owner. This agreement or contract is considered as the cost title in which the contractor
would compensate for the real the cost of the project which is incurred within a fixed range of
price, plus the ceiling price (Tafti and Almaswari 2018). Until and unless, the GMP has been
extended, it is entitled to the contractor that the cost might overrun.
Cost plus fixed fee contract
Fixed price contract is basically made in the construction industry between the
contractor and the owner (Stopka, et al. 2016). Fixed free of cost plus is a contact type where
the contractor is liable to extend the price of the project slightly. In this contract type, if the
price of the project is exceeded, the contractor would be handed a plus cost for finishing the
project. Therefore, it is basically done on the basis of relationship developed between the
contractor and the owner.
Ideal contact type for the project
After the analysis of the various contract type, it could be said that the best
recommended contract which would be made between the owner of the project and the apex
level management at ADCO Constructions, is the lamb-sum agreement would. The term in
contract type ideally fit ideally with the design bid build project delivery system. Therefore,
to the lowest bidder of the project, a lump-sum would be handed over for the completion of
the project.
Procurement method
The term procurement is basically used for describing all the activities possible and
declined, which would be undertaken for the building construction or its renovation (Zhang,
Liang and Gao 2017). It is considered to be a technique by virtue of which advantages and
disadvantages would be provided to the economic limitation of the project. It would also be

8PROJECT EXECUTION AND MANAGEMENT
monitored that the economic limitations of the project is at all affected by the provided
advantages and disadvantages of the procurement method.
The programmer methods which would be evaluated in the following reports are
competitive procurement method, negotiation procurement method and value-based
procurement method.
Competitive procurement method
This type of procurement method is considered to be informative process, which
would notify the management that all the papers and the process which is taken up by the
management, should ensure high standards and quality, before delivering the project to the
client. In essence to that, it could be said that the method would help the management to
maintain the quality of the work (Naughton et al. 2017).
Negotiation procreate meant method
This technique is ideal for projects as it would allow the owner of the project to
negotiate about the price and the timeline of the project with the contractor (Zhang, Liang and
Gao 2017). The agreement made between the owner of the project and the contractor, could
be negotiated with the help of this method.
Value-based procreate meant method
This particular type of procurement method is used as an alternative method in order
to complete the reduction of cost, enhancement in the effectiveness of the project and also
enhancing the results of the project. In short, the procurement method increases the values of
the project which is to be delivered to the client.
Ideal method of procurement for the project

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After the analyses of the provided procurement method, it could be concluded that the
value-based procurement method would be ideal for the project taken by ADCO
Constructions. This method would help the organisation to maintain sustainability in order to
complete the project.

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Risk Management Plan
Ris
k
No
Risk Incident Risk
Description
Current
Controls
Likelihoo
d
Owner(stakehold
er concerned)
1 Site risks
1. Delay in
handover of
site.
2. Delay in
project
commenceme
nt.
3. Leads to
increase in
maintenance
costs
4. Momentum
and the
Government of
Australia
would come
under intense
pressure to
finish the
project within
the specified
time.
1. Starting the
project only
after the site
has been
handed over
for the
commenceme
nt of the
project in
writing.
2.Abstain from
using any
illegal or
unethical
means like
acquiring the
land from the
local people
by force
High Government of
Australia
2 Material
risks
1.Increase of
risk collapse
2. injury and
even death of
the people
using the
buildings
3.Accidents on
roads
1 Materials
procured for
the project
should
mandatorily
have ISO
certifications.
2.Appoint of
engineers.
Very high Government of
Australia
3 Design risk 1.Collapse of
structures
during
construction
and collapse of
structures
after closure of
the projects.
2.After closure
1.Ensure that
appropriate
design
specifications
are complied.
2. Audit of the
projects
annually or if
required on
High Government of
Australia

11PROJECT EXECUTION AND MANAGEMENT
of projects
would lead to
injury and
death of users
of facilities
monthly basis
3.Procuremen
t contract
should specify
the
requirements
to adhere to
designs
4
WHS risks Construction
companeis
generates
lower reveneu
due to lack of
investors
1. Injuries and
bruises or
even death
2. Action from
Safe Work
Australia
Very high Government of
Australia
5 Environment
al risks
Large scale
environmental
pollution
owing to
release of
gases, smoke,
solid wastes
and liquid
wastes include
untreated
water loaded
with
chemicals.
1. Comply
with the
environmental
laws in power
in Australia
like
Environment
Protection and
Biodiversity
Conservation
Act 1999
2. Waste
water in
released only
after treating
3.Recycle
water and
reuse it in the
construction
works
Very high Government of
Australia
Risk Quadrant Analysis
Consequence Catastrophic Tolerable High Very high Very high Very high