Due Diligence Review of the Barangaroo Construction Project Report

This report presents a due diligence review of the Barangaroo South Commercial Building-C1 construction project. The report begins with an introduction and vulnerability assessment, identifying potential threats such as material shortages, labor issues, financial constraints, and accidents. It then outlines critical success factors, including quality materials, innovative design, functionality, and cost optimization. The construction management section discusses the EHS management system and its role in ensuring environmental sustainability. The report also explores the use of innovative design, quality materials, and functional flexibility. Following the vulnerability assessment, the report provides a precautionary analysis, offering recommendations to mitigate identified risks, such as prioritizing worker safety, ensuring material availability, and implementing financial management strategies. The report concludes with a comprehensive overview of the project's vulnerabilities and the measures needed to ensure its success.

Due Diligence Review of the Barangaroo Construction Project
Name of the Student
Institution Affiliation

DUE DILIGENCE REVIEW OF THE BARANGAROO CONSTRUCTION PROJECT 2
Table of Contents
Introduction...........................................................................................................................................3
Vulnerability Assessment.....................................................................................................................3
Critical Success Factors........................................................................................................................3
Management of Construction Process..................................................................................................4
Innovative Design.................................................................................................................................4
Quality Materials..................................................................................................................................4
Functional.............................................................................................................................................5
Cost.......................................................................................................................................................5
Materials...............................................................................................................................................6
Labour...................................................................................................................................................6
Equipmen..............................................................................................................................................6
Time......................................................................................................................................................6
Finance..................................................................................................................................................6
Accident................................................................................................................................................6
Political factors.....................................................................................................................................7
External factors.....................................................................................................................................7
Precautionary Analysis.........................................................................................................................7
Conclusion..........................................................................................................................................12
Bibliography.......................................................................................................................................14

DUE DILIGENCE REVIEW OF THE BARANGAROO CONSTRUCTION PROJECT 3
Introduction
The assignment will be employing vulnerability assessment to the construction of the Barangaroo
South Commercial Building-C1. The building is located to the North of the International House
Sydney. The building stands between City Walk Bridge and Watermans Quay on Hicksons Road. The
Barangaroo South Commercial Building-C1 also stands on the southern side of the future R5
Residential Tower and to the east of the International Tower Sydney. The buildings unique positioning
avails access to the Napoleon Street and Hicksons Road from Barangaroo South (LENDLEASE
BUILDING PTY LIMITED 2018, p.5). As the building avails opportunities for human scale
connections, it’s significant to initiate the projects vulnerability assessment. The building gives
unforgettable vibrancy and social experiences to parties touring the Bangaroo South. This is
attributable to the alluring visual contact which serves to attract tourists and residents. The building
has a retail unit on the ground floor, commercial units located on the upper six floors and eighteen
parking units, toilets, showers and a mezzanine plant room on the basement. The building
consequently has other installations, that is, the outdoor terraces, signage zones and photovoltaic cell
installations located on the rooftop.
Vulnerability Assessment
The first step in the risk management procedure is to analyse probable threats (Abune'Meh, El
Meouche, Hijaze, Mebarki and Shahrour 2016, p.169). In assessing threats, natural together with man-
made threats are considered. Examples of probable natural threats include earth quakes, floods, fires,
tornados and hurricanes. For the man-made threats, examples include pollution, terrorism and criminal
attacks. Threat selection will be based on the rate of occurrence. On identifying the threats,
vulnerability analysis will be initiated. The significance behind vulnerability assessment is that it
determines the probable impacts of loss.
Critical Success Factors
Critical success factors are paramount in assuring successful project completion. Identifying them
before initiating construction will aid successfully complete the project. Some of the identifiable

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critical success factors to the Barangaroo construction include quality materials, creative design,
functionality, cost optimization and process management.
Management of Construction Process
Barangaroo construction management would be initiated by employing the EHS management system
which has already been passed by the NSW environmental management guidelines which monitor and
ensure environmental sustainability. All processes that seek to ensure improved environmental
performance are subtle of the EHS Management system (NSW Government 2017, p.4). The EHS
management system covers activity based perils related to the construction. The EHS workplace
Delivery Codes together with the minimum global requirements will serve as a guide to all parties to
the project. Site inductions and tender packages will enumerate all the projects requirements. The EHS
plan will also consolidate and coordinate risk mitigation during construction. the EHS Management
System will encompass noise and vibration management, community consultation, air quality and
odour control, storm water and erosion management, hazardous product and chemical management,
contaminated water and soil management and waste management.
Innovative Design
Innovation in construction is one of the prime factors that makes a building distinct and unique among
individuals and even in the entire globe. Today, designers have adopted virtual reality technology in
making creative designs. Some of the virtual reality softwares available for employed include EON
studio, Auto cad, video software and 3ds max (Eliseev, Tomchinskaya, Lipenkov and Blinov 2017,
p.178). Such an approach has several benefits which include the capability to assess development at
different phases before initiating the project. The owners can therefore get a clear view of issues
relating to asset, material and work organization. It can also be used in assessing progress in the
different project frameworks.
Quality Materials
Sourcing quality material will be paramount in improving the buildings life and consequently
minimize maintenance costs. For instance, Rapid Hardening Concrete, Fibre Reinforced Product and

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high performance concretes are some of the quality materials used in the construction industry
(Tadolini, Mills and Burkhard 2018, p.32). The FRP are known for strengthening, encompassing
durability and thermal insulation in buildings. For the high performance concrete, it can be employed
for different applications. Rapid Hardening concrete on the other hand is flexible under different loads
and its solid property enhances the building durable nature. Other materials include sandstone
elements which despite being employed in a restrained manner optimizes natural texture and colour.
Cast iron will be employed in re-enforcing the entire designs narrative towards the public. Other parts
include the handrails, pits and the man hole covers. Sandstones together with cast iron also are
paramount when it comes to the furniture strategy. The materials through distinctive employment are
used in creating furniture suite capable of incorporating uniqueness in different proposed construction
spaces.
Functional
Flexibility is an important functional factor for construction project (Lu, Guo, Qian, He and Xu 2015,
p.218). Flexibility can be defined as the ability to create the buildings structural components
efficiently. It also seeks to address efficiency in deploying the Projects plan while adhering to public
safety and security. For instance, the Barangaroo project in order to unravel functionality will
prioritize on the projects lighting. The lighting strategy will take into consideration security, ecology,
scale and accessibility in availing a successfully balanced surrounding for the public. The illumination
levels will be based on the Australian regulations in regards to Lighting for Roads and Public spaces.
Colour temperature in lighting will also avail different characters to the Barangarro project, that is,
neutral white, cool and warm white.
Cost
One of the most vital factors in any construction projects is cost (Acharya, Kim and Lee 2014, p.9).
Since the Barangaroo building is a comprehensively large project, it’s paramount to consider cost
reduction on alternate points of the project. The costs should not surpass the benefits. According to the
EP&A Act, Cost and Benefits analysis should be initiated taking into consideration the principles of
sustainability. Material sourcing and design act to reduce construction cost for the Barangaroo project.

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Threats and Method of Selection
Probable threats are discovered on the basis of impact and level of magnitude on the project. Some of
the potential threats to the Barangaroo project include internal factors such as;
Materials
Availability of raw materials is paramount in assuring success to any project (Acharya, Kim
and Lee 2014, p.6). Material shortages or lack of replenishment may delay construction. Change in
delivery schedules or changing material quality may consequently impact successful completion. It
may conflict with the initial plan which outlines completion f the different project phases which may
likely initiate owner-contractor conflict.
Labour
Another threat likely to impact successful completion of the constuction project is unskilled
labour, ageing labour force and labour shortage events (Acharya, Kim and Lee 2014, p.7).
Equipment
Machinery and equipment operations also play a critical role in assuring successful project
completion (Acharya, Kim and Lee 2014, p.8). In case of shortages in equipment, machine failures
and low machine performance, the project may delay.
Time
In any project, time should be e benchmarking element in phase completion. Delays may
directly impact timely completion and may consequently add on costs such as labour (Acharya, Kim
and Lee 2014, p.6).
Finance
Financial limitations also serve to impact the projects progression (Acharya, Kim and Lee
2014, p.9). Each phase of the project requires a certain allocation to assure successful completion.
Inadequate funding usually occurs where the owners cease availing funds to the contractor. Other
activities likely to hinder the smooth flow of capital among the two stakeholders include inflation,
sudden tax changes and material price changes or lack of financings from financial institutions.

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Accident
In construction projects, accidents are deemed as the highest risk sources. They can occur
before, during and after the completion of the project (Acharya, Kim and Lee 2014, p.6). The workers
may slip, trip or fall from high areas. They also may get injuries by being hit by objects or falling on
them. During the project, workers are always at a risk of being electrocuted.
Political factors
The political atmosphere is a factor to consider when handling or managing a project. Political
changes serve to initiate delays or at times halt the project (Khodeir and Mohamed 2015, p.131).
Political influence may impact the design and construction processes. If the officials don’t deem the
building’s design as adequate, they may step in and redesign the entire project to suit its retail and
commercial purposes.
External factors
External factors to consider include environmental elements such as floods, earthquakes, fires
and cyclones because the site is bordering the Darling harbour. The contractors also may have to wait
for the design to be approved which takes some waiting time.
Precautionary Analysis
Precautionary analysis refers to the assessment geared towards preventing risks from arising
during the initiation and continuance of the project. The precautionary analysis section serves as the
solution to the vulnerability analysis section. In the face of threats, it’s paramount for one to identify
the necessary steps to avoid or reduce its impact on a project.
Threat Probability of eruption Peril Rating Approach to reduce Risks Impact
Labour Regular 3 Safety on workers should be prioritized by
giving them protection equipment such as
helmets, goggles and gloves. The construction
management should ensure their workers adhere
to the health and safety regulations to avoid

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litigations. They should also consider skilled
labour as the construction project requires high
expertise and its quite complex as outlined by its
design.
Material Average 2 Regular inspections will help ensure there are no
shortages for the following day. They should
also be regularly replenished.
Finance Regular 3 To ensure the cots do not surpass the benefits,
management should prioritize on prefeasibility
studies which will serve to manage project
funding. In the event the actual budget disagrees
with the objectives of the construction managers,
re-budgeting will be taken as the best alternative
option.
Equipment Average 2 All company machinery should be rechecked
regularly for defects and serviced either weekly
for proper maintenance. All trucks, vehicles and
other equipment must also be insured from the
risk of fires, theft, burglary and accidents. In the
event of any of the mentioned perils, the
company will be reimbursed inhibiting
interruptions.
Accident Low 1 To inhibit the probable accident occurrence, the
risk management team should ensure sharp items
such as nails, glass bits and metal wastes are kept
away from the site after use. The different floors
should also be built on solid scaffolds to ensure
the building is strong enough to hold both people

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and machinery. In case some are operating
during the night, the risk management team
should ensure to provide lights. Other
equipments to be maintained at the site include
fire extinguishers, water horses, emergency aid
kits and ambulances in case of accidents.
Nature Low 1 It’s paramount to take into consideration risks
associated with natural occurrences such as
earthquakes, floods and hurricanes.
Time Average 2 In order to ensure the progress coincides with the
time schedule, the project manager should
include overtimes. In cases where the projects
lags behind to cases of material shortages,
impacts by politics or sudden shortages in
manpower, he or she should consider a
proportion of his or workforce works at night to
recover the time lost.
Politics Average 2 The Australian government should take into
consideration the benefits that may accrue
Australia through tourism on completing the
Barangaroo construction. Enumerating the
benefits to relevant authorities will help address
the waiting time issue of design acceptance and
thus also facilitate timely project initiation.
Probability of Occurrence Rating
Low 1
Average 2

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Regular 3
Re-estimation and re-upgrading for risk reduction and elimination flow chart
Conclusion
According to my thinking, adhering to the steps provided will help smoothen the construction process
and ensure timely completion. However, it’s paramount to consider some factors that may be beyond
human control such as natural calamities. It’s however paramount to integrate efforts with the
meteorological departments to mitigate such risks and save construction costs. In any construction
project, it’s paramount to consider assessing vulnerabilities by analysing the critical success factors.
From the Barangaroo assessment, some of the identifiable success factors applicable to other
construction projects include management of the construction process, innovative design and quality
materials. Some of the threats identifiable include financial, political, time, nature, accidents, labour,
Asset Identification
Rate the threats
Subject to security
assessment based on
the EHS plan
Re-budget for
upgrade
implementation Determine risk level
through its magnitude
Re-estimate the effect
of vulnerability on the
upgrades
Determine upgrades to
address unacceptable perils

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materials and equipment. In case some of the budgeted costs surpass the budgeted ones, re-budgeting
should be adopted to assure successful project completion.

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Reference
Abune'Meh, M., El Meouche, R., Hijaze, I., Mebarki, A. and Shahrour, I., 2016. Optimal
construction site layout based on risk spatial variability. Automation in Construction, 70,
pp.167-177.
Acharya, N.K., Kim, S.Y. and Lee, Y.D., 2014. Factors affecting timely completion of
construction projects. In Proceedings of the Fifth Asia Pacific Industrial Engineering and
Management Systems Conference 2014 (Vol. 22, pp. 1-13).
Eliseev, M., Tomchinskaya, T., Lipenkov, A. and Blinov, A., 2017. Using 3D-modeling
technologies to increase road safety. Transportation Research Procedia, 20, pp.171-179.
Khodeir, L.M. and Mohamed, A.H.M., 2015. Identifying the latest risk probabilities affecting
construction projects in Egypt according to political and economic variables. From January
2011 to January 2013. HBRC journal, 11(1), pp.129-135.
LENDLEASE BUILDING PTY LIMITED., 2018. C1 Barangaroo south environment, health
& safety management plan (4.0). Author.
Lu, P., Guo, S., Qian, L., He, P. and Xu, X., 2015. The effectiveness of contractual and
relational governances in construction projects in China. International Journal of Project
Management, 33(1), pp.212-222.
NSW Government., 2017. Development consent (SSD 6960). Sydney, Australia: NSW
Government Department of Planning and Evironment.
Tadolini, S.C., Mills, P.S. and Burkhard, D.R., 2018. Tekcrete Fast®: Fiber-reinforced, rapid-
setting sprayed concrete for rib and surface control. International Journal of Mining Science
and Technology, 28(1), pp.29-34.