Project Execution Planning and Management Report: FINANCE 10

This report provides a detailed analysis of project execution planning and management, focusing on the WestConnex project undertaken by Samsung C&T. The report begins with an overview of the project, its background, and objectives, including the various stages of construction. It then delves into project delivery methods, evaluating options like Design Build, Design Bid Build (DBB), and CM@Risk, and recommending the most effective approach based on criteria such as project delivery speed, cost control, and communication. The report further examines financial contracts, comparing options like Lump Sum, Guaranteed Maximum Price, and Cost-Plus Fixed Fee contracts, and recommending the best type. Procurement methods and risk management strategies, including risk identification, assessment, and mitigation, are also discussed. The analysis includes the use of tables and a risk quadrant to visually represent key findings and recommendations, culminating in a comprehensive conclusion that summarizes the key insights and recommendations for successful project execution.

Running Head: FINANCE 1
Project Execution Planning and Management
Name
Institutional affiliation
Date

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Table of Contents
Company name: Samsung C&T..................................................................................................................4
Selected project: WestConnex project.........................................................................................................4
Background of the case project....................................................................................................................4
3. Project Delivery Method.........................................................................................................................6
Table 1: Criterion of Selection for the best method of delivery...............................................................9
4. Evaluation and recommendation on the best the type of financial contract for WestConnex................10
Table 2: Criteria of selection of the financial contract Type..................................................................12
5. Best Procurement Methods....................................................................................................................13
Table 3: Best Criteria for procurement selection method.......................................................................14
6. Identified Risk Records.........................................................................................................................15
Table 4: Risk Register...........................................................................................................................15
Table 5: Qualitative risks categorized in terms of High Medium and low risks.....................................16
Risk mitigation Analysis...........................................................................................................................16
Table 6: Analysis of Risk Mitigation.....................................................................................................17
Analysis of Risk Quadrant.........................................................................................................................17
Figure 1: Sample of Risk Quadrant.......................................................................................................18
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19

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Company name: Samsung C&T
Selected project: WestConnex project
Background of the case project
Samsung C& T is a construction and engineering company found in South Korea.
KRW882.6bn ($ 785.9m) contract of building part of the WestConnex motorway within western
Sydney in Australia was secured by Samsung C & T. The New South Wales Government in
Australia put this newest contract of Sydney Motorway Corporation in place. The Samsung
group that holds the construction part known as the Samsung C& T is responsible for
participating and accomplishing all the suggested three stages the WestConnex construction
project is to go through since it won this latest contract (Zhou, 2019). The Samsung C & T
Korean company is expected to build an underpass and an annex as suggested in the third stage
of the project in Australia.
The project started in March 2015 and the contracting company is targeting to complete
the construction by June of 2023. The motorway is expected to expand the M4 in underground
tunnels that will be between Haberfield and Homebush so that the road capacity from M5 East
corridor with underground tunnels doubles (Jenny, 2019). Samsung C& T participated in the
first and second stage of the project that built the 33km motorway. Samsung C&T owns a 33.3%
stake within the project. The company of Samsung C &T completed the first stage of the $ 680m
contract. In the second stage, the company made an agreement with Australian and Spanish
companies with an intension of getting $ 2.8b contract for the share of 30%. One of an integrated
transport plan for the New South Wales Government in Australia to improve the transport sector

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of Sydney is the WestConnex motorway. The underground tunnels are meant to run between St.
Peters and Kingsgrove (Jenny, 2019). The New South Wales and the Australian government
formed a joint project of WestConnex as a motorway scheme. The scheme is meant to extend
and widen the M4 motorway, to construct a new part of the M5 motorway and also connecting
the M4 and M5 through constructing the inner western bypass. The aim of project is to introduce
a 33km that is supposed to connect western Sydney and south-western Sidney to the airport of
Kingsford and finally to botany Precincts port. (Zhou, 2019). Also, the new tunnel between the
corridors will be included.
The stages that WestConnex project will go through up to the year 2023 are as follows;
Stage one
This stage includes stage 1 A and stage 1 B as explained below;
Stage 1(A): This part of the stage involves the widening of M4 motorway from
Parramatta up to the Homebush (Jenny, 2019).
Stage 1(B): This stage is meant to extend M4 East that is proposed to connect Haberfield,
Homebush and city of Concord.This phase provides the next link the corridors of M4 to M5
(Public Accountability Committee, 2018).
Stage two
This stage of the project constructs M5 which is from Beverly Hills to St. Peters. It
involves construction of the other similar M5 corridor in Beverly Hills connectingKings
groveemanating from St Peters. The new M5 tunnels are to link M4 to M5 links for future

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connections. King George way undergoesthe Upgrade as well as of Beverly Hills way. This
upgrade of the interconnected roads is meat to prepare for the New M5 (Thomas, 2018.).
Stage three
This stage is meant to link M4 to M5 that is the connection of Heberfield up to St Peters.
This corridor is therefore meant to connect M4 East and current M5 which passes through
Rozelle and Camperdown. This link has got surface that connects St Peters route and also the
Rozelle. This tunnel is meant to avail the proposed connectionsof Western Habour. WestConnex
is meant to provide an opportunity to renew the urban, boost livelihood for the public and
improving the active transport around and along Parramatta Road.
3. Project Delivery Method
This section presents the methods of project delivery that involves the process of
selection and the criterion used in forecasting the method with better effectiveness and efficiency
of the project.
The Speed of Project Delivery; the project of construction especially transport sector is
delivered into five (3) phases; the first phase began in March of 2015 and the project is to be
accomplished in 2023. The project is extremely large where by it is estimated to take the
minimum of eight years. Also, the speediness of the state is often essential as the city
development is concerned (BURGER, 2018). The way to go of extending the progression of the
construction should be speedier in order to accomplish the unfinished sections of roads in
stipulated streets (Puscasu, 2018).
The Control of Cost; the estimated costs of the project is ($16.8 billion) in this
WestConnex project. Mostly, the funds are being ejected by the NSW state part of Australian

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government ($1.5 billion) through the funding project that is proposed to invest in road and rail
programs. Furthermore, the government is likely to provide the concessional loan of about 2
billion dollars to alter the New M5 delivery.Also, the first two stages were done with the scope
of media especially on news.
Communication that is seamless;most of the contractors had hopes in pursuing and
officiating the construction of the venture. More so, with the expertise and experience being
evidenced from the Sum Sung C & T the contract was given to it. Since the project is more in
colossal state, the project needed the most significant company to accomplish it without failure
with in the stipulated period schedule. This therefore hoped to deliver the project at the highest
speed that helps to cut the costs of the project.
Local Subcontractors’ Usage; about 150 subcontractors have tried to bid especially on
the vibrant occupations that are not easy to pick. In case the local subcontractors are guaranteed,
they have to be utilized before the kickoff of the project since it’s under the scope of the media.
Since some of the phases of the venture is put in news or on media, such venture is put open to
every contractor.
The various delivery methods of the project are discussed below with their
attached scores at the end of the venture.
For the case of project delivery speed
Design Build;the ownershould provide communicationof the design outline constructor in
order to eradicate the worries and the inquiries of the proprietor or the owner (Puscasu, 2018).
There is nothing like the procedure of bid in order to spare time (Dominick, 2013. The designs

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should be made with the techniques of financial savvy and materials because the project can be
even started even when the plan is developed (4).
Design BidBuild (DBB). Such method offers the form to the owner in order to look for
the companies on the independent basis. This therefore helps the project to be intensively
planned for in order to develop the stage and configure the venture without incurring the costs of
development approach (Dbia, 2018). (6)
CM@Risk; It provides the Manager’s responsibility in construction in order to
communicate internal actions about the Guaranteed Maximum Price (Burger, 2018). This at
times depends on the reports of development and the determinations especially about the periods
of GMP. This is done to compile the errands so that the company manager achieves the owner’s
advantage thus covering the execution of the project. (8)
For the case of Seamless kind of communication
Design Build; this talks about the contract on the individual basis between the owner and
services of the design and construction. This is because the construction proprietor wants to
target at least a single contractor to alter in their speed. This therefore assembles the company to
specialize before the organized activities by the architects (7).
DBB; the contract of configuration gives the company in the contract that are likely not
be involved thus connecting other groups at a given pace. However, this strategy of conveyance
is not helpful as per consistent correspondence is concerned (Dbia, 2018). (3)
CM@Risk; this involves the workers on contracts to attain the most advantages in the
contract. This is done in the way that the groups that have worked before and believed to produce
effective work inorder not to lose some of the cash on the project. (8)

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For the case of Control of Cost
Design Build; this assembles the techniques that are superlative on the proprietor’s side.
This is done to control costs to attain the contract’s value through understanding of the
configured manufacture of contracts. (7)
Design Bid Build; in this case, the construction contractors give out expenses before the
project was commenced and how the venture is operated (Dbia, 2018). This hoped to help the
undertaking of numerous increase of expenses. (5)
CM@Risk; the danger of price is in accordance to the supervisor’s development. This is
because the strategies used to spare the cash are motivated to initialize the assignment on the
project. (8)
Table 1: Criterion of Selection for the best method of delivery
Source: Author,2019
Basing on the evaluation above, the Construction Manager at Risk is evaluated as the best
since it got the score of 850. This therefore focuses on the clear techniques of approach that
utilize the tasks substantial basis since its coverage is on the news on media in relation to the
NSW and the Government of Australia to accomplish the project on time (Fischer, 2013).

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Below are the Advantages of CM@Risk
 CM@risk reduces the risk of potential owners
 There is greater participation of members
 There is much control of costs since the budget is aired to the mass through media
 Most of the sub-construction services are available.
4. Evaluation and recommendation on the best the type of financial contract for
WestConnex
Under this section, contract types financially are explained that present the process of
selection and also a criterion to be used in forecasting better option for the efficiency of the
project.
Speed of project delivery is 50% - it is a construction contract between WestConnex
and the New South Wales Government in Australia that will be completed within the specified
time.
Lamp sum contract: Temporary workers of single amounts are usually able to take on the
contract and the contractors who took on the project made clear arrangements but had to
postpone some of the arrangements due to unforeseen circumstances. (5)
Guaranteed Maximum Price Contract: Maximum values of workers able and willing to
contract are encouraged to apply not until their GMP is reached. (7)

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Cost-Plus Fixed Fee Contract: Cost together with constant charge of worker who is not
permanent would be compensated with belonging development cost and given the level of the
price that would increase the defenses to complete the project. (6)
Control of costs is 20% - Since Sydney’s population rate is increasing, the project is to
affect several individuals.
Lump sum contracts: The single amount is important to the legislature for this period
since keeping some money is required for the project. However, large differences that may
appear will affect the value. (6)
Guaranteed Maximum price contract: Maximum values of workers able and willing to
contract and keep the expenses within the greatest value they won’t require to compensate to
force cash expenses. (9)
Cost plus fixed fee contract: Cost together with constant public venture charge as this
serves as an open venture, the agreement type is not important to the government since they are
unaware of the more costs incurred by the project. (3)
Quality of the work is 20% - Throughout the entire period of eight years, not only speed
is required but also the quality of the work should be maintained.
Lump sum contract: When the contractors get to know they may lose money on the
project, they may rush the work and may not reach the required qualities. (5)
Guaranteed maximum price contract: Highest cost is ensured and in case the expenses
exceed, the contractors must incur the costs after achieving the greatest since highs where the
quality is prone to risk. (5)

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Cost plus fixed fee contract: the cost together with constant levied expense to the
contractor is of high quality since receivable to every expenses are to be paid by the owner. (7)
Sharing of Hazard is 10% - The government of Australia is heading the costs of the
project and the cost of 1.5 billion dollars was settled. In case the government fails to settle the
remained debt the hazard sharing between the Samsung C& T and the Australian government.
(Thomas, 2018).
Lump sum contract: When the contractor sees more hazards at this stage, the cost is
cleared and there are noteworthy shots that may materialize and cause risks. (5)
GMP contract: The cost that is extreme is ensured in case the worker who is not
permanentexceeds final value he or she has to subscribe to the project owner. The contractual
worker will try is highest degree to stay as the highest cost. (8)
Cost plus fixed fee contract: When the contractor is taken relative to certain aggregate
costs, he may acquire more money and that is not the owner’s biggest advantage claiming the
costs to elevate all the considered things. (7) (Thomas, 2018)
Table 2: Criteria of selection of the financial contract Type

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5. Best Procurement Methods
In this part, the process of selection and the criteria used in forecasting the best method of
procurement are presented. In this chapter, speed of delivery of project will be rated at 40%,
Quality of work rated at 30% and finally the flexible selection will be rated at 30%.
For the case of project delivery speed:
Competitive bidding; this is mostly comprised of tedious contracts thus qualifies not
useful under speed (3). Also, negotiated contracts; these help in choosing the ventures in which
the venture is completed with the official stamps. (8). Furthermore, the best value obtained from
the project is seen not to be very tedious thus reducing some time as stipulated in the contract.
(7).
For the case of quality work:
With Competitive bidding, the proprietors use the cost effective bidder thus ending not
getting the quality criteria. (3). Also, for the case of Negotiated contract; this views the past
challenges faced by the contractor and the workers (Dominick, 2013). this therefore displays the
hazards in the operation of the venture. (6). Lastly, Best value; it is observed that best value is
the most obtained strategy for qualitative tasks since requires more monetary payments to ensure
quality work. (8)
For the case of selection flexibility:
With competitive bidding; this involves the offer by the organizations on the projects
stipulated and also involving the local providers and the pool of offer since it is colossal venture.
(5)