Project Management Case Study: Oakland Crossing Rail Project Analysis

This project management assignment analyzes the Oakland Crossing Rail Project, a real-world case involving the construction of a rail underpass. The analysis begins with an overview of the project's background, objectives, and funding. The core of the assignment involves evaluating and recommending the best project delivery method (Design-Bid-Build, Design-Build, CM@Risk), financial contract type (Lump Sum, Guaranteed Maximum Price, Cost Plus Fixed Fee), and procurement method (Competitive, Negotiated, Best Value) for the project, with detailed justifications for each selection. The selection process relies on selection matrices, weighting various criteria based on their importance. The assignment also covers risk management, including the creation of a risk register identifying potential risks, their likelihood, and consequences. Furthermore, it includes a risk quadrant analysis and proposes mitigation strategies to address the identified risks. The document concludes with a bibliography of cited sources.

Running head: PROJECT MANAGEMENT
Project execution planning and management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Background of the case project....................................................................................................2
2. Best project delivery method.......................................................................................................2
3. Financial contract type.................................................................................................................5
4. Best procurement method............................................................................................................9
5. Risk management.......................................................................................................................12
5.1 Risk register.........................................................................................................................12
5.2 Risk quadrant analysis.........................................................................................................16
5.3 Risk mitigation.....................................................................................................................17
Bibliography..................................................................................................................................23

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PROJECT MANAGEMENT
1. Background of the case project
The paper mainly reflects on “Oakland Crossing Rail Project” which generally includes
proper construction of a rail underpass under the Morphett road for removing a level crossing.
The main aim of the project is to build the underpass for reducing traffic and for minimizing the
delays for the 42,000 motorist that uses that way each day. It is identified that the Federal
government generally helps in providing $95 million of budget where $74.3 million is provided
by the state government and in addition to this, it is found that Marion Council provided $5
million for undertaking the project. It is analyzed that on average weekday, the boom gates
generally get lowered by 25% at peak time and therefore removal of the crossing will generally
helpful in slashing delays for the people who generally uses this particular part of the southern
suburb’s road network. In addition to this, it is analyzed that this particular project will generally
helpful in supporting around 160 jobs during the construction work and that is expected to start
from 2018 and have been completed by the year 2019.
2. Best project delivery method
It is found that in order to select the best project delivery method, it is found that different
types of project delivery methods are mainly evaluated with the help of the selection matrix
(Carpenter and Bausman 2016). It is found that the delivery methods which are mainly evaluated
mainly includes design bid build, design build as well as CM@Risk.
Characteristi
cs
Weigh
t
Design bid
build
Weigh
t
Design
build
Weigh
t
CM@Ris
k
Weigh
t
Budget 30% Design bid
build is
30% Saves cost
due to
30% Fixed
price for
20%

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PROJECT MANAGEMENT
lowest in
price and it
helps in
offering a
lot of
opportunitie
s for
providing
input about
building
appearance
as both
designers
and
architect
work
together.
intensive
collaboratio
n between
the builder
as well as
designer
the
project is
mainly
followed.
Design 30% The design
that is
created with
the help of
this method
generally
30% It generally
puts least
input within
the design
of the
project.
15% It is found
that
owners
are
generally
liable for
15%

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PROJECT MANAGEMENT
meets
professional
standards.
the design
Risks 20% If the
architect as
well as GC
do not
collaborate
then the
process
generally
slows down
or there will
be increase
in the need
for the
various
change
orders.
5% They help
in
managing
the risks
that
generally
occurs
within the
project
15% CM@Ris
k
generally
accepts
different
types of
risks for
meeting
the
project
deadline.
15%
Schedule 20% The project
duration is
found to be
longer due
5% Quite
faster as
compared
to other
18% Faster
project
delivery
of they
15%

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PROJECT MANAGEMENT
to in-series
nature of
this
particular
method.
methods have
proper
access of
builder’s
perspectiv
e on time.
Total 100% 75% 78% 65%
After analyzing the selection matrix, it is found that design build delivery method will be
most appropriate for the Oakland Crossing Rail Project as with the helps of design build method,
the project managers will be able to meet the various types of performance related requirements
that is mentioned within the contract of the owner (Kramer 2017). It is found that proper
collaboration between the builders as well as designer generally allows only very much little
changes and thus it generally helps in saving cost. Furthermore, as the time for completing the
Oakland project is around 1 year, it is analyzed that DB method is most appropriate as this
method generally allows faster delivery by properly executing the activities on time.
Furthermore, this particular method is quite helpful in minimizes the chances of risk within the
project.
3. Financial contract type
According to Tran et al. (2018), financial contracts is one of the arrangements that
generally takes proper form of an individually negotiated contract, option or an agreement that is
mainly negotiated for transaction that are commonly enters by different participants within the
financial markets. The various types of financial contracts are mainly elaborated below:

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PROJECT MANAGEMENT
Lump sum contract: It is found that lump sum contract is considered as one of the
traditional ways of procuring construction however it is considered as the most common form of
construction related contracts. Under the lump sum contract, the lump sum price for the work
that is mainly performed needs to be agreed before the entire work starts (Gade 2018). This
contract is mainly utilized if the work that is requested is properly defined and the drawings of
the project are already completed. It is found that the lump sum agreement will generally helpful
in minimizing the risks of the owners and therefore the contractors generally have greater control
over different types of profit related expectations.
Guaranteed maximum price contract: It is considered as one of the cost types
contracts where the various contractors are generally compensated for different types of actual
cost that is mainly incurred plus the fixed fee. It is analyzed that the contractor takes proper
responsibility for cost overruns as well as emissions of error. It generally helps in setting a
proper limit such that the customers will generally have to pay their workers irrespective of the
cost that is mainly incurred from the project (Susarla, Holzhacker and Krishnan 2020). The main
benefits of using this contract is that it helps in accelerating schedule as well as assists in saving
incentives. However, it also increases contractors’ risk as well as provide inaccurate cost
reporting that is considered as one of the major disadvantages.
Cost plus fixed fee contract: It is found that cost plus fixed free contract is one of the
types of contract where the contractor generally pays for the normal project related expenses plus
an additional fixed fee for different types of services (Nguyen et al. 2018). This further helps in
allowing the contractor for collecting proper profit and further helps in encouraging proper
economic production. It is found that this particular type of contract generally permits

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PROJECT MANAGEMENT
contracting for the various efforts and it is analyzed that it helps in providing very much little
amount of money to the contractors for controlling cost effectively.
It is found that in order to select the best method, selection matrix is mainly utilized
below which further can showcase the most appropriate financial contract for the Oakland rail
crossing project.
Criteria Weightag
e
Financial contracts
Lump sum
contract
Weigh
t
Guarantee
d
maximum
price
contract
Weigh
t
Cost plus
fixed fee
contract
Weigh
t
Cost
uncertainty
30% It belongs
to fixed
price
category
and
therefore
no chances
of cost
uncertainty
.
30% As GMP
attempts to
recap [ the
entire price
of the
contract
there is a
need to plan
for
uncertainty.
20% There is
very much
high risk
such that
the cost
will be
much
more than
price.
10%
Uncertaint 30% It 25% GMP also 15% Scope is 20%

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PROJECT MANAGEMENT
y of scope generally
works well
with a
small
project that
have well
defined
scope
prepares for
the changes
that are
done and it
is analyzed
that these
are mainly
used for
increasing
the contract
price or
increase the
time of
project
completion.
not well
defined.
Value for
money
20% As it
generally
means
fixed price
by the
contracting
body
therefore it
15% It is found
that in this
type of
contract,
the
contractors
as well as
subcontract
15% As the
value of
the money
can
increase
than the
actual
price and
10%

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PROJECT MANAGEMENT
provides
proper
value to
the money.
s must be
paid and it
do not
depend on
the cost that
is incurred.
therefore
the
contractor
s face
faces
budget
related
issues.
Availabilit
y of extra
resources
20% Extra
resources
will be
provided
by the
contractor.
10% Extra
resources
will need
extra
budget
10% Extra
money is
needed for
extra
resources
10%
Total 100% 80% 60% 50%
After analyzing all the methods, it is analyzed that lump sum contract is the best contract
that is mainly suitable for the Oakland rail crossing project. The main reason behind the selection
of this particular project is that in lump sum, the contractor generally bids for a particular price
that is found to be fixed for all the activities which are associated with the scope of the project
(Molavi and Barral 2016). This particular method is mainly utilized in vey large construction like
Oakland rail crossing project. Furthermore, this contract is considered to be quite effective in
minimizing prices and are considered to be useful when the project activities are properly
defined.

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PROJECT MANAGEMENT
4. Best procurement method
According to Qazi et al. (2016), procurement methods is mainly defined as one of the
procedures that helps in properly finding as well as agreeing to different types of terms that
generally acquires various types of goods as well as services from external source with the help
of either tendering or by using competitive methods. It is found that in order to select the correct
method of procurement for the Oakland rail crossing project, it is found that selection criteria are
mainly used for making proper comparison.
Criteria Weightag
e
Competitive Negotiated Best value
Details Weig
ht
Details Weig
ht
Details Weig
ht
Competitio
n
30% Competitiv
e
procureme
nt
generally
helps in
promoting
competitio
n
25% It helps in
formal price
competition
10% It does bot
focuses or
increases
competitio
n
20%
Flexibility 20% They are
the most
transparent
20% It allows
more
flexibility
15% This
method is
not
10%

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PROJECT MANAGEMENT
procureme
nt method
for the
project
clients
identified
to be
flexible
Time 20% Takes
longer time
5% Time saving
is one of
characteristi
cs of
negotiation
contract.
25% This
procureme
nt method
is
considered
to be time
consuming
10%
Expense 20% Inexpensiv
e goods
and
services
are
provided
15% They
generally
help in
saving
budget
20% It is
mainly
used in
order to
achieve
best value
in terms of
cost
15%
Risk 10% The
companies
not bid on
the tender
and
5% The risk that
occurs are
unable to
match with
the
10% It generally
helps in
minimizing
risks and
challenges.
10%