Modern Construction Enterprise: A Case Study on CIMIC Group Limited

This case study examines CIMIC Group Limited, formerly Leighton Holdings, a prominent international contractor in environmental, resources, mining, property and building, infrastructure, and engineering services. The study evaluates the enterprise's approach to market identification, highlighting their data gathering and innovative project methods. It analyzes client relations, emphasizing organized contact through regular meetings and project reviews. The integration of the supply chain, from suppliers to clients, is discussed, along with the monitoring and management of project risks, including identification, control, and ongoing monitoring. The case study explores how CIMIC Group Limited measures project success through technical innovation, project termination, client satisfaction, and organizational implications. Furthermore, it addresses common construction issues such as delays, financial problems, and communication challenges, proposing solutions for effective project delivery. The study concludes with a discussion of successful projects and highlights the company's strategies for navigating the complexities of modern construction.

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CASE STUDY ON THE CIMIC GROUP LIMITED
A Case Study on Modern Construction Enterprise By
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INTRODUCTION
This case study evaluates a successful enterprise by focusing on how the enterprise deals with
issues that arise during construction, measures project success, monitors and manages project
risks, integrated its supply chain, organizes its contract with clients, and identifies its market. The
construction enterprise focused in this case study is the CIMIC Group Limited which was
formerly known as Leighton Holding and has been an active international contractor in the
environmental, resources, mining, property and building, infrastructure, and engineering
services.
Market Identification
The major projects that have been undertaken by the CIMIC Group Limited include the Airport
Link in Brisbane, Gateway Bridge Duplication, Clem Jones Tunnel, Westpac Place, Star City
Casino, ABC Center, Brisbane Aiport, Burdekin Dam, and Tollowa Dam. The major step of
market identification used by the CIMIC Group Limited involves the gathering data pertaining to
any project that the owner or government is likely to be interested in constructing either in
Australia or globally. The data gathered is likely to entail significant information such as the
specification of the project and also the project brief which contains the requirements of the
owner and the characteristics of the project. In the case of bridge and road construction, the
company advertises a highly innovative and fluid project methods and models so as to encourage
potential project owners to consider them during procurement process (Freestone & Nichols,
2010).
The CIMIC Group Limited also identifies their market by taking part in various procurement
processes that have been advertised through various platforms globally. Some of the project

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delivery methods that are likely to be used by different project owners include PPPs, alliance,
ECI, construction management, managing contractor, D&C, and construct only (Zhang, 2011).
Clients
One of the major factors that determine successful project delivery is a good relationship
between the construction enterprise and the clients. There is a need for ensuring an organized
contact between the enterprise and the clients. One of the ways in which the CIMIC Group
Limited organizes its contact with clients include regular project meetings with the clients
before, during, and after the project delivery. The construction enterprise and the clients
normally have consistent meetings to notify each other about the project requirement of
decisions, need of change, progress, and news (Loosemore & Teo, 2012).
Project reviews and feedback meetings are also another way in which CIMIC Group Limited
organizes its contact with clients. The major reason for these reviews is to evaluate and collect
actual experiences in the project so as to improve the project processes continuously. Clear and
transparent organization of the CIMIC Group Limited also ensures contact between the
construction enterprise and the clients (Zhao, 2017).
Supply Chain
The supply chain is a term used to denote the hierarchy of interconnection of the supply
contractors required during the procurement of a structure. The supply chain in CIMIC Group
Limited is used to describe the linkage of the construction company that uses numerous basic
materials into the final finished structure. The supply chain entails all the suppliers, sub-
contractor, surveyor, designer, the main contractor, and the client. Currently, the CIMIC Group
Limited has integrated its supply chain where the supplier is expected to deliver the services and

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products specified for the purposes of construction as cheaply as possible. The parties in the
integrated supply chains have a long-term objective to work together so as to attain added value
to the client. This relationship that is long-term enable the supply chain management to the
realized fully by the construction enterprise. In this system, the whole of supply team is
appointed after the preparation of project brief, normally under just a single contract and not
separate contracts with a specific company (Mohylova, 2015).
Project Risks
Construction project monitoring is a positive and accurate way of checking the progress,
accuracy, and quality of a construction project. In the CIMIC Group Limited, there are teams
which oversee all the aspects of the construction identifies and provide advice, updates, and
reports during the construction process. The major areas that are usually monitored during the
project delivery include conformance with specifications and plans, materials, costing, health and
safety, supplier performance, quality control, and construction environment (Çınar & Ozorhon,
2018). The first step of risk management is the identification of risks which may include external
risks such as natural occurrences, cost risks such as planning changes, personnel risks such as
lack of skills, and quality risks such as defective materials. The next step is controlling the risk
which involves dealing with the risk through bearing the risk, reduction on the risk, or risk
avoidance. The last step is monitoring of the risk so as to eliminate the risk completely from the
project (Tait & Martin, 2012).
Project Success
The common criteria used by the CIMIC Group Limited in measuring its performance and
successes include technical innovativeness, project termination, personal growth, organizational

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and managerial implications, the efficiency of project execution, and technical performance. The
technical innovativeness entails the various technologies that the company have come up with to
ensure a more efficient construction process. These technologies include the implementation of
modular construction in various projects. Project termination is also another key factor in
determining the project success. Client satisfaction is also another way of measuring the success
of the construction enterprise. This is normally determined by collecting the various views of the
customer by asking them to rate the company after the completion of the project. The responses
are then reviewed and analyzed before drawing a general conclusion (Verstina, 2017).
Construction Issues
Some of the construction issues that are normally faced by the CIMIC Group Limited during the
process of project delivery include delay construction time, lack of project organization, financial
problems, poor communication, political conflicts, the dispute between parties, and delay in
payment. The issue of time delay can be solved by stipulating the schedule of construction so as
to monitor the progress of the project. The organization of the project can be ensured by having
management with proper management skills and capability. Financial problems can be solved by
proper finance management, finance allocation, and proper record keeping. Proper
communication between all the parties involved in project delivery can be ensured through
efficient and consistent communication between the parties by organizing frequent meetings
(Zhang, 2011).
CONCLUSION
This case study majorly discusses the organization of contract with the clients, integration of
supply chain, management and monitoring of project risks, determination of project success,

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market identification, and management of issues during construction of a modern construction
enterprise. Some of the construction projects that have been successfully completed by the
CIMIC Group Limited include Airport Link in Brisbane, Star City Casino, ABC Center,
Brisbane Aiport, and Tollowa Dam.

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