Project Execution Planning and Management for Power Generation Plant

This project execution planning and management assignment provides a comprehensive analysis of the "Dominion Virginia Power Bear Garden Power Generating Station" project, operated by Fluor Australia Pty Ltd. The assignment explores critical aspects of project delivery, including the selection of the most appropriate delivery method (design-bid-build), financial contract types (lump sum contract), and procurement methods (negotiation). It evaluates the strengths and weaknesses of each method through selection matrices and justification. The assignment also presents a detailed risk management plan, including a risk register, risk quadrant analysis, and mitigation strategies for potential project challenges such as insufficient project speed, visibility and access rights, compliances, and lack of consistency. The analysis is based on the specific context of the Bear Garden power plant project, which is undertaken to fulfill the growing demand of clean energy all over United States.

Running head: PROJECT EXECUTION PLANNING AND MANAGEMENT
Project Execution Planning and Management
Name of the student:
Name of the University:

1PROJECT EXECUTION PLANNING AND MANAGEMENT
Table of Contents
1. Selected project and Target Company........................................................................................3
2. Background of the case project....................................................................................................3
3. Recommendation for best delivery method.................................................................................3
3.1 Design bid build.....................................................................................................................3
3.2 Design build...........................................................................................................................4
3.3 CM@Risk..............................................................................................................................4
3.4 Selection matrix for the best project delivery method...........................................................5
4. Different financial contract types................................................................................................6
4.1 Lump sum contract................................................................................................................6
4.2 Guaranteed maximum price contract.....................................................................................6
4.3 Cost-Plus Fixed Fee Contract................................................................................................6
4.4 Justification and explanation.................................................................................................7
5. Recommendation for best procurement method..........................................................................8
5.1 Competitive............................................................................................................................8
5.2 Negotiated..............................................................................................................................8
5.3 Best Value..............................................................................................................................8
5.4 Justification............................................................................................................................9
6. Risk management plan...............................................................................................................10
6.1 Risk register.........................................................................................................................10
6.2 Risk Quadrant Analysis.......................................................................................................10
6.3 Risk mitigation.....................................................................................................................11
References......................................................................................................................................12

2PROJECT EXECUTION PLANNING AND MANAGEMENT
1. Selected project and Target Company
“Dominion Virginia Power Bear Garden Power Generating Station - EPC project
Operated by Fluor Australia Pty Ltd Construction Company
2. Background of the case project
In order to delivery any project on time and within budget contract sign up, bidding,,
tender and negotiation based on clients requirements are very essential. The company targeted
for the paper is Fluor Australia Pty Ltd, which is one of the largest construction companies in
Australia and the target project is “Dominion Virginia Power Bear Garden Power Generating
Station - EPC project”.
This bear garden power station is a plant of 590 Megawatt. Within the Two-on-one
structure, two turbines are installed for generate electricity. In order to fulfill the growing
demand of clean energy all over United States this project is initiated. For this project, Fluor
Australia Pty Ltd Construction Company is targeted because Virginia is the second largest
electric power importers in United States. In order to develop the project the best delivery
method, risk management plan, financial contract types and procurement method are evaluated
below.

3PROJECT EXECUTION PLANNING AND MANAGEMENT
3. Recommendation for best delivery method
3.1 Design bid build
Design bid build is one of the traditional and widely used project delivery methods uses
by the construction industry. In this method the owner has to contract the architect, civil
engineers, designers, contractors and sub contractors individually. As soon as the architect and
designer completed the design outline and completes the design documentation the owners
moves further towards the contractor for bidding and make the work done (Yu, Shen and Shi
2017). As in this types of contracts the designer does not get opportunity to directly interact with
the contract thus if any risk occurs then owner become responsible to bear all the potential risks
whenever the contractor asks for the design documents.
3.2 Design build
In this delivery method the design build team work under the project contractor and
project owner as well to give services to the clients. This is an essential alternative of the design
bid build delivery method. It helps to connect the project management activities with reduced
risks and faster delivery (Carpenter and Bausman 2016). It giver better quality services and also
decreases the rate of administrative burden. The profit margins are usually higher for this type of
delivery methods and it also increases the market share.
3.3 CM@Risk
In this project delivery method at first the owner selects and keeps the design firm, which
is completely similar to the design bid build process. The selection of the design firms is based
on the qualification price and other criteria expected by the project owner. In this method once
the designed is selected the project start getting progress with the very initial stage of design. In

4PROJECT EXECUTION PLANNING AND MANAGEMENT
this process the owners are focused on the lowers contract value (Arshad et al. 2019). However,
in this type of method the owner always considers each of the project development and design
components efficiently.

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3.4 Selection matrix for the best project delivery method
Criteria Weight of
Criteria Project Delivery Method
Design-Bid Build Design-Build CM @ Risk
Score Weighted
Score Score Weighted
Score Score Weighted
Score
Schedule of the
delivery 10 7 110 8 100 10 98
Construction 10 6 25 7 30 10 65
Complexity level
while designing 20 4 20 15 25 12 45
Risk assessment 12 5 85 10 40 8 50
Experience of
the owners 16 6 80 15 95 9 70
Experience of
the staffs 8 12 90 12 85 7 30
Experience of
the contractors 8 10 65 20 50 8 20
Budget 9 7 55 15 60 10 42
Control approach 7 8 75 8 70 5 25
Total 100 605 555 445

6PROJECT EXECUTION PLANNING AND MANAGEMENT
After evaluating the scores for project delivery methods it is identified that score for the
design bid build method the score is highest based on summation of the criteria. Therefore, for
this plant design project owner should use Design bid build method.
4. Different financial contract types
4.1 Lump sum contract
Lump Sum contract is defined as one of the most traditional contract type that helps to
reduce the clients risks because it keep the price absolutely fixed. This particular bidding process
is absolutely straight forward (Tran, Molenaar and Gransberg 2016). The lump sum payments
are done on regular basis and with a predictable installment value and stable cash flow.
4.2 Guaranteed maximum price contract
This particular agreement is defined as a form of agreement with contractors and ensures
that the contract sum that is estimated earlier will not exceed. The process is used on building
contract and design where the contractors are directly responsible to complete the design of
clients and other construction activities (Adamopoulou and Zizza 2017). This contract helps to
create a target cost agreement where the contractors are incentivized for making additional
savings. This process allows the clients to access the project directly.
4.3 Cost-Plus Fixed Fee Contract
This financial contract type is directly linked to project cost and contractors. In order to
execute any project with a minimum amount of cost this contract type is very profitable. This
particular approach helps to give a boundary to the project budget (Khalafalla 2019). However,

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for implementing such project both project owner and contract are required to incur accurate
investment.
4.4 Justification and explanation
Criteria
Weight of
the
criteria
Financial Contract Types
Lump sum
contract
Guaranteed
Maximum Price
Contract
Cost plus Fixed Fee
Contract
Score Weighted
Score Score Weighted
Score Score Weighted
Score
Fixed capital
amount 20 10 120 8 110 8 120
Project
timeline 15 8 80 7 52 7 45
Increment in
production 15 7 90 9 35 10 20
Bidding and
negotiation 7 8 50 5 50 7 22
Risk
assessment 8 9 65 6 45 6 22
Design
analysis 17 6 65 7 38 9 36
Unexpected
risk 8 7 84 8 27 7 42
Quality
analysis 10 6 80 8 40 8 20
Total 100 634 397 327

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From the weighted score of each financial contract types it is identified that the value of
lump sum contract is highest 634. Therefore, for this particular project Lump sum contract has to
be considered.
5. Recommendation for best procurement method
5.1 Competitive
It has been determined that competitive sourcing strategies are referred to as one of the
most part of procurement process. In order to earn commercial profit with long term
sustainability competitive sourcing is very essential (Perera et al. 2019). However, contractors
are needed to choose the best bid option. While selecting bidding form the proprietor some
hypothesis and similar process are applied. It helps to improve the competitiveness
5.2 Negotiated
Temporary staff is selected to govern the process of negotiation and bidding. It helps to
work out a deal those are much critical in procurement (Patil and Nadaf 2017). This specific
concept provides detail of construction tools, characteristics, critical success factors and
professionals who are part of the decision making.
5.3 Best Value
Best vale procurement system is focused on factors other than price. It deals with factors
like quality, vendor selection, expertise, contractors etc (Ilori and Talukhaba 2017). In this
system, the procured services and goods are simply demonstrated as the comparison between the
benefits and budget.

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5.4 Justification
Criteria Criteria
Weight
Procurement Methods
Competitiveness Negotiation Best Value
Score Weighted
Score Score Weighted
Score Score Weighted
Score
Risk 20 8 110 9 100 9 90
Cost 10 9 60 8 90 8 80
Schedule 10 9 80 7 51 7 75
Quality 10 8 90 6 72 9 54
Experiences 15 5 45 7 54 5 62
Public related
accountability 8 4 52 8 65 7 32
Size of the
project
Contractor's
7 6 34 9 45 5 42
Contractor's
expertise 10 7 42 6 52 7 31
Owner's
decision 10 5 64 7 85 9 42
Total 100 577 614 508
From the scores it is identified that for the Bear Garden Power Generating Station
implementation project, the scope of negotiation is highest 614 thus, the project manager need to
choose this method of procurement for project success.

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6. Risk management plan
6.1 Risk register
Risk id Risk name Impact Likelihood Risk score
R1 Insufficient speed of the project Major (4) Likely (4) High (16)
R2 Visibility and access rights Major (4) Possible (3) High (12)
R3 Compliances Moderate (3) Unlikely (1) Low (3)
R4 Lack of consistency Major (4) Unlikely (2) Moderate (8)
6.2 Risk Quadrant Analysis
Figure 1: Risk Quadrant Analysis for the project
(Source: created by author)

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6.3 Risk mitigation
Risk name Risk mitigation plan
Insufficient speed
of the project
A project should never start without proper feasibility analysis, budget and
scheduling (Kountur 2018). Therefore, on order to complete the project on
time it is very essential to maintain a consistent speed throughout based on
it the project’s complexity
Visibility and
access rights
The project contract needs to set based on project background and bidding
options (Newby 2016). Infact all the involves parties are needed to be
agreed with the project contract before initiation
Compliances In order to avoid costly fines the project owner should ensure that a
feasibility report is successfully presented
Lack of
consistency
Project manager and contractor need to focus on the compliance issues,
communication approach, legal viabilities and PM processes to avoid this
risk.