MPM502: Project Cost Analysis and Appraisal for Bridge Replacement

This project report undertakes a comprehensive cost analysis and appraisal for a bridge replacement initiative. It begins with a detailed project charter, outlining project justification, description, high-level requirements, risks, and budget estimations, including funding sources and stakeholder roles. The project scope statement defines project deliverables, acceptance criteria, and exclusions. The report further details the project schedule, cost estimation approaches, and the project budget, including funding allocation. It then appraises the project, covering risk management strategies and potential impacts. The analysis encompasses technical decisions, conflict resolution, and staffing considerations, providing a holistic view of the project's financial and operational aspects.

Running head: PROJECT COST ANALYSIS & APPRAISAL
MPM502 Project Cost Analysis & Appraisal
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1PROJECT COST ANALYSIS & APPRAISAL
Table of Contents
1. Project Charter.............................................................................................................................2
2. Project Scope Statement..............................................................................................................9
3. Schedule for the project.............................................................................................................13
4. Costing for the project...............................................................................................................19
4.1 Approaches used for project cost estimation.......................................................................23
5. Budget of the project.................................................................................................................24
6. Appraisal of the project.............................................................................................................25
7. Risk management for the project...............................................................................................31
8. Conclusion.................................................................................................................................32
References......................................................................................................................................35

2PROJECT COST ANALYSIS & APPRAISAL
1. Project Charter
PROJECT CHARTER
Project Title: Replacement of existing bridge
Project Sponsor: Gail Stephens Date Prepared: August 31, 2017
Project Manager: Mike Lai Project Customer: Malaysian City Council
Project Purpose or Justification:
The focus of this project is on an extension which is most established existing intersection of the
Hawkesbury River. The bridge was initially worked with a timber deck on cast press wharfs in
1875. Throughout the years the bridge has experienced numerous adjustments including raising
the extension by 2.4 meters and including a dock in 1897. The timber deck, projection and a
similar dock were supplanted by strengthened cement in 1920 and a trail was included the
downstream side in 1968. The bridge is 143 meters in length and 6.1 meters wide. It conveys a
normal of 18,000 vehicles for every day. While the structure of the current Bridge is as yet viewed
as safe for general movement, parts of the current bridge are presently 137 years of age. A few
examinations have been carried on state of the current bridge and the choices to restore or
supplant the extension. Henceforth, this task has been attempted after distinguishing proof that the
favored alternative is for substitution of the Bridge. The favored alternative is an abnormal state
connect, 35 meters downstream of the current bridge.

3PROJECT COST ANALYSIS & APPRAISAL
Project Description:
This project is aimed at replacing an existing bridge so as to ensure safety and infrastructure
development. This report gives a synopsis of the issues brought up in composed entries,
workshops, online gathering remarks and exchanges amid this period. A sum of 72 entries were
gotten between August 2011 and September 2011. Issues raised will be considered amid readiness
of the ecological effect articulation and the idea outline. While this report does not react in detail
to each issue raised, it includes data on how certain issues will be tended to amid arrangement of
the natural effect articulation and improvement of the idea plan.
High-Level Requirements:
The point of the project is to give a sheltered and solid intersection of the River.
Targets of the project are to:
 Improve security for drivers, walkers and cyclists.
 Improve movement and transport proficiency.
 Improve the level of surge insusceptibility.
 Meet long term group needs.
 Minimize the effect on legacy and the character of the neighborhood.
 Be a financially savvy and a moderate result.

4PROJECT COST ANALYSIS & APPRAISAL
High-Level Risks:
The risks and concerns that have been identified in context to this project are listed as below:
 Potential effects on the legacy and character of the neighborhood.
 Nearby people group needs, for example, person on foot and cyclist associations and
recreational spaces.
 Expanded commotion and contamination.
 Potential loss of business in the town focus.
 Activity and transport issues.
 Wellbeing for drivers and walkers drawing closer and intersection the bridge.
 The level of surge insurance that would be given.
 The cost viability of the new bridge.
For this task, there are a few noteworthy risks that could conceivably significantly affect spending
plan or potentially plan. Some can be straightforwardly controlled or impacted by the task group,
while some are not and rely upon economic situations. Steel speaks to a noteworthy bit of the
extension material and cost (roughly 40% of development cost) and is affected by advertise
request. It will be imperative to utilize the alleviation systems illustrated beneath to help decrease
chance.
 Steel costs are influenced by worldwide financial drivers
 Change in development economic situations
 Competing projects draw assets and temporary worker intrigue far from this task
 Actual site conditions shift fundamentally from anticipated
 Significant delay in utility migrations

5PROJECT COST ANALYSIS & APPRAISAL

6PROJECT COST ANALYSIS & APPRAISAL
Estimated Budget:
The estimated budget that has been decided for the project is $750,000.00, in which the estimation
of construction cost is $$717,800.00. The Consultant might audit this Scope of Work and give an
account assessment and investigation of the exactness of the proposed project CCE in their
specialized proposition in light of their expert experience and conclusion. The estimate for
working on the project is $695,400.00, however there are other costs associated with the project
such as human resource, materials and etc.
The funding summary for execution of this particular project is given as below:
$450,000.00 will be borrowed from the city council.
$125,000.00 will be provided from federal government agencies.
$75,000.00 will be acquired from Reserve city funds for capital projects.
The CWE incorporates the development cost gauge and all counseling, allowing and managerial
expenses. The CWE is the Client Agency's budgetary spending plan in view of this task Scope of
Work and might not be surpassed amid the outline and development periods of the undertaking
unless DPMC supports the adjustment in Scope of Work through a Contract alteration. On
projects with a CCE under $750,000, the gauge might be set up by the Consultant's in-house staff
or their Sub-Consultant's staff amid each plan period of the undertaking. All cost gauges might be
balanced for provincial area, site factors, development staging, premium time, building use
gathering, area of work inside the building, transitory swing space, security issues, and swelling
factors in view of the year in which the work is to be performed.

7PROJECT COST ANALYSIS & APPRAISAL
Stakeholders:
Stakeholder(s) Role
Gail Stephens City Manager
Peter Sparanese Operations Manager
Katie Josephson Director of Corporate Communications
Joe Helsinki Finance Manager
Jocelyn Jenkins City Solicitor
Katie Holmes Special project director
Sasha Grey Project Advisor
Project Manager Authority Level
Staffing Decisions:
Staffing of super activities with regards to the general program is an intricate asset administration
issue. In a general sense, staffing is focused on being a "solid proprietor" in overseeing
conveyance mega projects. It is essential to use extend business (project positions are separate
from other diminishment in-compel activities that might happen in the Department). This will help
balance out WSDOT workforce needs on super tasks. These positions ought to be well thoroughly
considered and incorporate an in advance, end-of-project progress technique for lasting
representatives.
Under plan offer form conveyance, the Department has solely held duty regarding QC and QA
amid development. For crests in workforce needs, WSDOT for the most part procures transitory
representatives. These obligations should be possible by moving a portion of the QC or QA work

8PROJECT COST ANALYSIS & APPRAISAL
and hazard to the contractual worker, like outline construct. WSDOT has effectively used GECs
on remain solitary uber projects. In different states, GECs have been utilized to effectively convey
statewide projects, for example, connect restoration, and substitution. This model might be
material on future statewide WSDOT programs. For instance, if financing ends up plainly
accessible to convey the fish entry course program, rather than including extra WSDOT staff a
statewide premise, a GEC model could be used by packaging projects into one program
conveyance contract.
Budget Management and Variance:
A task control spending will be created. Expenses will be observed and contrasted with genuine
work finished preceding the City approving installment. Real expenses will be accounted for
against a gauge utilizing a fitting project costing programming bundle. Evaluations at complete
will be invigorated in conjunction with the timetable and pay measures. Dangers will be
reassessed and potential impact will be used to study cost and schedule impacts. A probability
support organization configuration will be set up.
Technical Decisions:
The blockage in peak hour causes southbound drivers achieving the circuitous to give path for long
stretches, along these lines deferring the activity behind them. This is an issue because of the
precarious slope on Bridge Street and can be especially unsafe for southbound overwhelming
vehicles sitting for an expanded measure of time. Respondents communicated bolster for the
indirect to be expelled at the convergence of George Street and Road as a major aspect of the
proposed works and supplanted with activity lights. In any case, drivers can encounter restricted

9PROJECT COST ANALYSIS & APPRAISAL
vision because of a peak in the street and this diminishes their capacity to respond rapidly at a red
light.
Conflict Resolution:
Significant degree changes related to extend augmentation or spending will be avowed by Council
that is changes to the things recorded under Scope. Changes that in a general sense adjust the
request of this Charter will be displayed to Council for positive underwriting for example change
to the desires recorded under augmentation. The Project Director will have expert to settle on
choices basic to keeping up development energy.
The prime expert will be the Group to identity in charge of the general plan trustworthiness of the
considerable number of Works to be embraced under this agreement. The prime legally binding
laborer or backer, when chosen, will be accountable for consistence with the framework desire as
set out in the reports masterminded by the MMM Group. The quality assertion program will pass
on typical reports in the midst of creation and advancement in a shape agreed to by the City
project gathering.
Approvals:
Gail Stephens
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Sponsor or Originator Signature
_________________________________
__________________________________________
_________________________________
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10PROJECT COST ANALYSIS & APPRAISAL
2. Project Scope Statement
PROJECT SCOPE STATEMENT
Project Title: Date Prepared:
Product Scope Description
This project is aimed at replacing an existing bridge so as to ensure safety and infrastructure
development. This report gives an outline of the issues brought up in composed entries,
workshops, online gathering remarks and discourses amid this period. An aggregate of 72 entries
were gotten between August 2011 and September 2011. Issues raised will be considered amid
readiness of the natural effect articulation and the idea outline. While this report does not react in
detail to each issue raised, it includes data on how certain issues will be tended to amid planning
of the ecological effect proclamation and improvement of the idea outline.
Project Deliverables
 Improve security for drivers, walkers and cyclists.
 Improve movement and transport proficiency.
 Improve the level of surge invulnerability.
 Meet long haul group needs.
 Minimize the effect on legacy and the character of the neighborhood.
 Be a financially savvy and a moderate result.
 Potential impacts on the legacy and character of the neighborhood,
 Local people group needs, for example, walker and cyclist associations and recreational

11PROJECT COST ANALYSIS & APPRAISAL
spaces.
 Increased demand and contamination.
 Potential loss of business in the town focus.
 Traffic and transport issues.
 Safety for drivers and walkers drawing closer and intersection the extension.
 The level of surge assurance that would be given.
 The cost adequacy of the new bridge.
The work breakdown structure that has been prepared for the project are as below:
Bridge Replacement
project
Project Charter
Project Requirements
Requirements
management plan
Budget
Cost performance
baseline
Cost management
plan
Schedule
Schedule baseline
Schedule
management plan
Resources
Responsibility
charts/assignments
Human resource
plan
Communication
management plan
Scope
Scope statement
WBS
Scope baseline
Scope management
plan
Risk Assessment
Risk management
plan
Project execution
Implementation of
essential control
and maintenance
plan
Reporting progress
information
Corrective measures
planning
Development of
project award timing
Final measurement of
material quality for the
construction
Contract for bridge
painting
Development of
safety inspection for
the labors
Implementing a
status report
Bridge Working Drawings
Bridge Working
Drawings Requiring
Design
Bridge Working
Drawings Not
Requiring Design
Road Working Drawings
Road requiring
design
Road not requiring
design
Inspect the existing
steel structure
frameworks
Designing of Bridge
storm drains
Other Management Plans &
Reports
Process
improvement plan
Quality management
plan
Procurement
management plan
Weekly progress
reports
Lessons learnt /
Post-event summary
report
Project Initiation
Phase
Design Phase
Construction Phase
Completion Phase