Project Execution and Management Report: ADCO Constructions Project

This report provides an in-depth analysis of a project undertaken by ADCO Constructions, a respected construction firm in Australia. It begins with an overview of the company's background and the project's context, focusing on the construction of a two-story medical care unit in Wales, Australia. The core of the report examines project delivery methods, evaluating Design-Bid-Build, Design-Build, and Construction Manager at Risk, ultimately recommending Design-Bid-Build as the most suitable approach. The report then delves into financial contract types, comparing Lump Sum contracts, Guaranteed Maximum Price contracts, and Cost-Plus Fixed Fee contracts, and advocating for the Lump Sum contract. Finally, it explores procurement methods, including Competitive, Negotiation, and Value-Based approaches, to provide a holistic view of project execution and management strategies. This report is a comprehensive analysis of key elements in construction project management, offering practical insights into decision-making for similar projects.

Running head - PROJECT EXECUTION AND MANAGEMENT
Project Execution and Management
Name of the student
Name of the university
Author’s note

1PROJECT EXECUTION AND MANAGEMENT
Introduction
ADCO constructions is considered to be one of the most respected and trustworthy
organization in the field of construction. The organization is well recognized for its capability
of delivering critical projects in a certain period of time. ADCO have been delivering projects
all over the Australia (Construct 2019). After being established in the year of 1972, the
organization have delivered more than 3500 projects across the country with minimum
failures. The value of all the projects that have been completed by the organization estimated
to be $10 billion. It employees more than 580 people directly and have been named among
the top 20 private organizations all over the country (Construct 2019).
The following report would be discussing about a project that the organization have
taken for delivering. The report will be providing a brief overview of the project,
demonstrating the background and the purpose of this project. It will also demonstrate the
purpose of project delivery method and the best method which should be used in the project.
The purpose of financial contract type will also be discussed in the report, recommending the
best contract type for the project. Procurement method and its purpose will also be discussed
in the report, along with the best procurement method of the project taken by ADCO
Constructions.
Discussion
Background of the company
The target company for the report is ADCO Construction. The company runs by the
joint partnership of their chair person. The organization have been awarded by a grossing
amount of $1.4 billion for the completion of the projects like non-residential projects and
contracts in the country (Construct 2019). All the projects which are taken for delivering are
certified and checked by the government of Australia. Critical checking are done for

2PROJECT EXECUTION AND MANAGEMENT
concerning the safety of the people, as most of the projects involves public transport and
residential. Therefore, ADCO have been considered to be safe for delivering such project in
the given amount of time.
Background of the project
The project taken by ADCO Constructions is a construction of two storey building.
The building would primarily be used as a medical care unit. The building would be
constructed on the hard terrains of Wales, Australia (Construct 2019). The project is
estimated to be completed within then given timeframe provided by the client. It is also
estimated that the project would be completed within the estimated cost which is being
provided by the client. The main purpose of the project is to provide fast medical care for the
people residing near the locality.
Project Delivery Method
Project delivery system or process of delivering the methods of the project is
quantified as a process that holds primary team’s interest (Touran and Burgos 2018). The
interest of primary appointed team is seen to be consisting of various kind of members whom
are being allied in a way in which the members would be integrating for the optimal
performance of the project. It is defined and used in such a way that collaboration of the
outcome results are made. The process of project delivery method itself is classified for being
a value based process in which delivery of the projects are very high ended and the results
which comes after the implementation of the various method in the project delivery system
are classified as high quality results (Cook 2017). Project delivery method is basically used in
various kind of projects as it helps in delivering the desired results that the clients wants. The
outcomes of the projects after applying the project delivery system would be helping the
organization in delivering the entire project at one time. The system of project delivery

3PROJECT EXECUTION AND MANAGEMENT
system is also used by an agency or any firm or organization in order to organizing the design
of the project and financing the project for completion. The organizing and the financing of
the project is done in various other sectors like construction, its operation, along with the
maintenance of the service for any structure of work or facilities of that sector. The system
tends to enter the legal agreements made with more than one or more facilities or parties that
are part of the project.
There are various types of methods which helps in delivering project method.
Methods like Design-Bid-Build or Design Award Build, Design Bid Build with construction,
Design Build or Design Construct, Design Build Operate Maintain, Build Operate Transfer,
General Contractor or Construction Manager, Integrated Project Delivery and Public Private
Partnership are used for delivering the method of project delivery for a particular project
(Franz et al. 2016).
The project delivery methods which would be evaluated in the report are Design-Bid-
Build (DBB), Design-Build and Construction Manager at Risk (CMAR).
Design Bid Build
The method of project delivery system named Design Bid Build is classified to be a
project delivery system which is developed by the owner of a firm or organization in where a
contract is created (Khwaja et al. 2018). The system is used for drawing all the documents
related to the contract that have been made between the architecture and the engineer
appointed for completion of the project. The documentation would be consisting of certain
sets of blueprints and all the detailed specification of the project which will yet to be
completed. All the bids related to the project are solicited from the contractors appointed for
the project and based on the documentation (Ma, Zhang and Li 2018). After the process of
the documentation is done, the contract is awarded to the contractor having lowest responsive

4PROJECT EXECUTION AND MANAGEMENT
bid for completing the project. Basically, the contractor which claims for completing the
project within a short period of time gets the contract of the project. In this manner, it would
be easy for the owner to keep track of all the potential contractor which could complete the
project and deliver a quality project as compared to the desired outcome of the client. The
documentation would also help the owner of the firm in handling all the necessary
requirements related to the project.
Design Build Method
The method of Design Build Method of project delivery system is said to be process
of project delivery system which is commonly used in construction industry or used by
construction firm (Touran and Burgos 2018). The method helps in delivering a particular
project in which the design and the service of the construction are contracted to be a single
entity or a single person. The single person could be quantified as design builder or design
build contractor. Therefore, if wanted by the owner, the contract could be categorized into
architect-led-design-build or contractor led design build. In this system, the project would
singly be dependable on one person itself to whom the contract of the project is assigned. The
system would be used for minimizing risk factor for owner of the project and for reduction in
the delivery schedule with the overlying of the design phase and the construction phase of the
project undertaken (Khwaja et al. 2018). The traditional approach of the project would be
consisting of appointment with the designers at one point and appointment of the contractor
at another side. The system is sometimes compared with the master build approach as it is
one of the oldest form of procedure that is used in the line of construction. Therefore, the
system is trustworthy or delivering the project in time.
Construction Manager at risk

5PROJECT EXECUTION AND MANAGEMENT
The method of construction manager at risk is a part of project delivery system. The
method quantifies in making certain traits which entails a commitment to be made by the
construction manager of the project for delivering the project within the set guaranteed
maximum price (Khwaja et al. 2018). The cost is set by the firm or the organization for
completing the project. The construction manager would be acting as a consultant to the
owner of the project. The construction manager would act as the consultant to the owner
through the design phase and development of the project (Touran and Burgos 2018). As the
construction manager would be bound to a GMP, a fundamental character of the relationship
would be changed. Initially, the cost of the project would be controlled by the manager at the
construction site.
Ideal Project Delivery Method for the firm
For the project undertaken by ADCO Construction should be using the design bid
build project management process. It would be helpful for the company to provide the project
to their set contractors. As for the process of bidding in the project delivery system, it would
be done based on some of the basic needs in the construction. Due to the brand loyalty that
have been built by the organization would help them in getting some of the best contractors
existing in Australia for bidding in the contract. Henceforth, the design bid build method
would be ideal for the project of two storey building undertaken by ADCO Constructions.
Financial Contract type
The term contract type is used for signifying the basic difference in the contract
structure of a project or the form, which would be including the various types of
arrangements and the risks from the government and the contractor (Hoff et al. 2016).
Basically, these contractors quantify all the risks and the cost to the project which would be
used for completing the project appointed. These contracts are stated to be mutual

6PROJECT EXECUTION AND MANAGEMENT
understanding or legal bidding agreement in between two parties which is mostly based on
policies of the firms or organization and conditions set by both the parties for the project.
The types of contract type to be discussed in the assignment are Lump sum contracts,
guaranteed maximum price contract and cost-plus fixed fee contract.
Lump Sum Contracts
This type of contract is basically used in the construction industry. It is one of the
construction contract type in which sometimes references is made to prefer a stipulated sum
to a single price for starting the project (Antoniou and Aretoulis 2018). Therefore, the price is
placed in hands of the contractor for completing the projects
Guaranteed Maximum Price Contract
This type of contract is considered to be a cost type contract in which the contractor
would be compensating for the actual cost of the project, incurred with a plus fixed fee
subject to a ceiling price (Forcada et al. 2017). The contractor would be responsible for the
cost overruns, unless the GMP have been increased.
Cost-Plus Fixed Fee Contract
Cost-plus fixed fee contract is considered to be a specific type of contract in which the
contractor would be paid for the normal fee or expenses for the project, also with additional
fixed fee for their provided services (Tafti and Almaswari 2018).
Ideal Contract type for the project

7PROJECT EXECUTION AND MANAGEMENT
The best contract type for the project would be lump sum contract type. As the ideal
project delivery for this project is design bid build, it would be wise for producing a lump
cost to the contractor for completing the project.
Procurement Method
The term procurement is used for describing all the possible activities which is
undertaken by the client for seeking to bring about the construction or refurbishment of a
building. It is the method in which pros and cons of financial constraints are measured for
affecting the project (Naoum and Egbu 2015).
Competitive procurement method
The main motive of the process is to inform the management about the processes that
the management should be holding high standards of integrity for ensuring a competitive
process at the project (Stopka et al. 2017).
Negotiation procurement method
The method would be enabling the owner of the project for negotiating with the
contractors for the cost and timeline of the project (Zhang, Liang and Gao 2017).
Value Based Procurement method
This method is an alternative approach to total cost reduction, improving the
efficiency of the project and also enhancing outcomes of the project (Naughton et al. 2017).
Ideal method of procurement for the project
For the project undertaken by ADCO constructions, the ideal procurement process
would be the value based procurement. The process would be helping in creating a
sustainable methods for completing the project.

8PROJECT EXECUTION AND MANAGEMENT

9PROJECT EXECUTION AND MANAGEMENT
Risk Management Plan at Construction site
Ris
k
No
Risk Incident Risk
Description
Current
Controls
Likelihoo
d
Owner(stakehold
er concerned)
1 Site risks
1. Delay in
handover of
site.
2. Delay in
project
commenceme
nt.
3. Leads to
increase in
maintenance
costs
4. Momentum
and the
Government of
Australia
would come
under intense
pressure to
finish the
project within
the specified
time.
1. Starting the
project only
after the site
has been
handed over
for the
commenceme
nt of the
project in
writing.
2.Abstain from
using any
illegal or
unethical
means like
acquiring the
land from the
local people
by force
High Government of
Australia
2 Material
risks
1.Increase of
risk collapse
2. injury and
even death of
the people
using the
buildings
3.Accidents on
roads
1 Materials
procured for
the project
should
mandatorily
have ISO
certifications.
2.Appoint of
engineers.
Very high Government of
Australia
3 Design risk 1.Collapse of
structures
during
construction
and collapse of
structures
after closure of
the projects.
2.After closure
1.Ensure that
appropriate
design
specifications
are complied.
2. Audit of the
projects
annually or if
required on
High Government of
Australia

10PROJECT EXECUTION AND MANAGEMENT
of projects
would lead to
injury and
death of users
of facilities
monthly basis
3.Procuremen
t contract
should specify
the
requirements
to adhere to
designs
4
WHS risks Construction
companeis
generates
lower reveneu
due to lack of
investors
1. Injuries and
bruises or
even death
2. Action from
Safe Work
Australia
Very high Government of
Australia
5 Environment
al risks
Large scale
environmental
pollution
owing to
release of
gases, smoke,
solid wastes
and liquid
wastes include
untreated
water loaded
with
chemicals.
1. Comply
with the
environmental
laws in power
in Australia
like
Environment
Protection and
Biodiversity
Conservation
Act 1999
2. Waste
water in
released only
after treating
3.Recycle
water and
reuse it in the
construction
works
Very high Government of
Australia

11PROJECT EXECUTION AND MANAGEMENT
Risk Quadrant Analysis
Consequence
s
Catastrophic Tolerable High Very high Very high Very high
Major Low
Tolerabl
e High Very high Very high
Moderate Low Low Tolerable High High
Minor Very low Low Tolerable Tolerable High
Insignificant Very low Very low Low Tolerable Tolerable
Rare Unlikely Possible Likely
Almost
certain
Likelihood
Conclusion
Thus, the repost could be concluded by providing a brief overview of project
execution and management. The report have provided a brief overview of project site,
construction firm, project delivery method, financial contracts and procurement method. The
report have also provided the best methods that should be used by the organization for
completing the project/

12PROJECT EXECUTION AND MANAGEMENT
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