Highway Project Bidding Report: Risk Assessment and Mitigation

This report evaluates a highway project bidding opportunity, focusing on the Sunshine Avenue Road to the Calder Freeway in Victoria, Australia. It outlines the project's goals, which include entering the market as a head contractor or project management deputy. The report details potential risks, such as lack of skilled labor, bad weather, and existing infrastructure, and proposes mitigation strategies. The report includes a cost analysis for bid preparation, estimating expenses for employees and the bid process timeline. The report also provides a comprehensive risk assessment table, detailing risk descriptions, likelihood, consequence impact, and proposed risk treatments. Furthermore, the report examines the bid preparation timeline, cost breakdown, and literature review of similar projects, emphasizing the importance of professional expertise and project planning. The report also includes tables detailing department codes, staff descriptions, and the costs associated with the bid preparation.

Running head: HIGHWAY PROJECT
Paraphrasing
Name of the Student:
Name of the University:
Author note:

1HIGHWAY PROJECT
Reporting on the opportunity in the bidding to the Highway project
Dear Ladies and Gentleman
It has been decided by our company that it has extended some of its activities into the
new venture of business, that has made its report prepared in evaluating the business opportunity
in its construction in the highway Victoria/ Australia. The sole aim of the project is to upgrade to
the Sunshine Avenue Road to the Calder Freeway and its goal is to enter into the market as the
head contractor or the deputy of the Project Management. The CEO has made clear instructions
in preparing the report that is to focus on the risks that is present in this new area and then to
schedule and estimate it. This report will be considered as one of the most significant risks that
will help in the mitigation or to eliminate the risks.The analysis of the risks is shown to be a risk
that can be easily controlled and that will not help in the suspension of the project, that has been
identified by the team like the:
 Lack of proper workmanship
 Delays due to the shortage in the number of the skilled labor
 Proficiency and a beginner’s experience in the highway and the road projects
 Suspension or delays due to bad weather
 Suspension due to the activities that may be caused by the existing infrastructures
In this report, it is expected that the cost for the preparation of the bid and its process may
include the need to:
1) 14 employees from 6 departments.

2HIGHWAY PROJECT
2) Around Four months to prepare the bid from 6th March 2017 to 3th July 2017.
The estimated cost that has been made is $262,874. The scheduled summary that has been found
through the attachment includes the working details, start and finish dates and the details of the
employees. The work in the new business area always need proposals and appreciations in our
consideration.
Number Risk Description
1 Lack of proper workmanship
2 Suspension or delays due to bad weather
3 Change in policy and legislation
4 Risk of fatal injury amongst the workers
5 Fluctuation due to national economy
6 Removal of fauna habitat that might injure the species
7 Suspension due to the activities that may be caused by the existing infrastructures
8 Accuracy in the estimation of the cost, escalation of the wrong base and the takeoff error
calculations in the designing details
9 Delays due to the shortage in the number of the skilled labour
10 Demolition omissions

3HIGHWAY PROJECT
11 Risk of approvals from high officials
12 Material delivery delays
13 Equipment shortage that is less in number will help in carrying out the road project
14 Delays due to the shortage in the number of the skilled labour
15 Impact of the omissions on the construction at an individual receptor
16 Changed environment that is due to speed reductions

4HIGHWAY PROJECT
Nu
m
be
r
ra
nk
Risk Description
Risk TreatmentRisk
Descriptio
n
Like
liho
od
Cons
eque
nce
impa
ct
Before
Treat
ment
1 1
Novice
experience
.
60
%
3000
0000.
00
1800
0000
Extrem
e
1.
2. current staff
training through
the professional
courses that needs
to be developed
2 4
Suspensio
n and
delays due
to
weather
35
%
1200
0000
4200
000 High
1. application of
allowances and
contingency so
that the risk may
be covered
2. condition of the
weather in the
current and the
last few years have
been built to make
the forecast in a
correct way
3 15
Changes in
the
legislation
and the
policy
10
%
1300
0000
1300
000
Mediu
m
Availing a
contingency plan
and an impartial
contract
4 7
Fatal risk
and injury
of the
workers
22
%
1500
0000
3300
000
Mediu
m
1. setting up a
correct H & S plan
that will together
make the safety of
the procedures
2. maintaining and
developing the
safe working
environment by
the members
5 9 Fluctuation
s in the
equipment
and the
16
%
1800
0000
2880
000
Mediu
m
The estimated cost
needs to recognize
its effect that has
an increased

5HIGHWAY PROJECT
material
costs
contingency that
includes the
consideration of
the price that
would be invested
in the construction
of the project.
6 6
Removal
of the
fauna
habitats
32
%
1100
0000
3520
000
Mediu
m
The environmental
team deals with
the surveys and its
proper study
7 2
Suspensio
n caused
due to the
lack of the
infrastruct
ure
38
%
1400
0000
5320
000 High
Relocating the
assets that will be
undertaken with
the approvals of
the requirements
8 11
Accuracy
in cost
estimation
13
%
1900
0000
2470
000
Mediu
m
Benchmarking
exercises that
needs to be taken
and also designing
some of them
9 5
lack of
proper
workman
15
%
2500
0000
3750
000 High
Selection of
subcontractors
who might have a
better experience
and have great
exposure
10 14
Omissions
of the dust
and the
pebbles
26
%
5000
000
1300
000
Mediu
m
Ensuring sheeting
system and dust
free programs
11 13 Risk is
from the
approvals
in an
official
manner
and
licenses of
the start
ups
18
%
1100
0000
1980
000
Mediu
m
Making sufficient
commencements
and allowances for
getting the
approvals

6HIGHWAY PROJECT
12 8
Material
delays in
the
delivery
21
%
1400
0000
2940
000 High
Choosing the
professional
procurement in
the team that has
to deal with
suppliers of the
materials
Ordering in bulk
that is to ensure
the availability and
the consistency
13 10
Shortage
of
equipment
’s
13
%
1900
0000
2470
000
Mediu
m
Identification of
the necessary
equipment that
needs producers
and suppliers at
the time of the
delivery.
14 3
Delay due
to
shortage
of skilled
worker
31
%
1400
0000
4340
000 High
Contractors have
been appointed to
ensure a
continuous flow in
the workplace.
15 12
Omissions
constructi
on that
will make
an impact
on the
sensitive
individual
receptor.
39
%
6000
000
2340
000
Mediu
m
Implementation of
management
methods and
systems that is
required to
maintain the
quality of air
16 16
Changed
roads and
constructi
on
environme
nt
30
%
3000
000
9000
00
Mediu
m
Possibility of the
construction works
that may be high
in demand that
will make a less
effect on the other
groups

7HIGHWAY PROJECT

8HIGHWAY PROJECT
Nu
mb
er
r
a
n
k
Risk
Description
Risk Severity
Before
Treatment Befo
re
Trea
tme
nt
Risk
Treatmen
t
Risk Severity After
Treatment
Li
k
el
ih
o
o
d
Co
nse
que
nce
imp
act
Li
k
el
ih
o
o
d
Conseq
uence
im
pa
ct
After
Trea
tme
nt
1 1 Proficiency of
the
experiences in
the highway
and the road
projects
6
0
%
300
000
00.
00
180
000
00
Extr
eme
1.
employm
ent of the
new staffs
that has
professio
nal
experienc
es in the
projects
of the
highways
and roads
3
0
%
160000
00.00
48
00
00
0
Med
ium
2. proper
training
through
the

9HIGHWAY PROJECT
current
staffs that
comes
professio
nally
when
developin
g the sills
7 2
Suspension
caused due to
the
infrastructure
activities
3
8
%
140
000
00
532
000
0
High
Relocatin
g the
assets
that is
required
to be
undertak
en by the
requirem
ent
approvals
2
1
%
262000
0.00
55
02
00
Med
ium
14 3
Delay due to
shortage of
skilled labor
3
1
%
140
000
00
434
000
0
High
Contracto
rs
appointe
d so that
a
continuo
us flow in
the
workplac
e may put
in an
increase
labour
cost
1
5
%
600000
0.00
90
00
00
Med
ium
2 4
Suspensions
and delay that
is due to bad
3
5
%
120
000
00
420
000
0
High
Allowanc
e and
contingen
2
0
%
250000
0.00
50
00
00
Med
ium

10HIGHWAY PROJECT
weather
cy to
cover the
risk
Research
of the
rainfall
and
weather
temperat
ure of the
previous
years
9 5 Poor quality
workmanship
1
5
%
250
000
00
375
000
0
High
Selecting
the
subcontra
ctors that
have an
experienc
e that will
lead in
constructi
ng the
quality
9
%
500000
0.00
45
00
00.
00
Med
ium

11HIGHWAY PROJECT
2.5
 The risks that has been mentioned are important that has high attention level that will be
required in implementing the different mitigation and the recommendation level.
 There is a need for the investigation in the environmental area to visit the site through a
careful planning that includes the necessary information as well.
 The ideal contracting or the project delivery system will help to eliminate the contracting
and the financial risks like for example avoiding the price system in a fixed way over the project
overrun. The more the popularity is in Australia is through the system of the Alliance System for
the large amount of the projects that may be our future project.
 There is a need to keep on the seeking for the professional and the skilled staffs in the
projects in the technical and the administration sectors to plan, conduct and that will manage our
projects in the future.
 The competency in the system needs to be high as well that should be operated
prior and during the execution of the project amongst all its partners and project planners
in order to achieve the results that is supposed to be intended.
3.
The cost of the preparation of the bid will come upto $262,874 that includes the cost of
the site visits and its clarification.
3.1 Time of the Bid preparation