Project Management of Operators for Large Assets: A Detailed Study

This project report focuses on the project management of operators for large assets, covering essential aspects from project definition and justification to contract processes and financing. It details the project team structure, including roles like project manager, construction manager, and various specialists. The report outlines project management processes, such as communication and resource management, and provides an expected estimate of costs for labor, materials, and subcontractors. It also addresses requirements for project changes, quality assurance, document management, dispute resolution, and safety, emphasizing the importance of thorough testing, quality control, and adherence to legal and safety standards. The report highlights the significance of arbitration and mediation in resolving disputes and the need for a comprehensive safety manual to ensure worker safety.

Running head: PROJECT MANAGEMENT OF OPERATORS FOR LARGE ASSETS
Project Management of Operators For Large Assets
Name of the Student
Name of the University
Author Note

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PROJECT MANAGEMENT OF OPERATORS FOR LARGE ASSETS
Table of Contents
1. Project definition in context of large assets.....................................................................2
2. Project Justification and Contract process.......................................................................2
3. Project Financing.............................................................................................................2
4. Project Condition, Project Team and Project processes.................................................3
5. Expected estimate............................................................................................................4
6. Requirements of project changes.....................................................................................5
7. Requirements for Quality Assurance and Quality control...............................................5
8. Requirements for document management, reporting and governance............................6
9. Requirements for disputes, Arbitration and mediation....................................................7
10. Requirements for Safety................................................................................................7
References............................................................................................................................8

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PROJECT MANAGEMENT OF OPERATORS FOR LARGE ASSETS
1. Project definition in context of large assets
The project management of large assets should include employment of a team of
specialist who would be responsible for the fully integrated feasibility study with diligence
studies in relation to the economic evaluations and risk assessments. A project leader is an
integral part of this project as well who is responsible for specializing in coordination and
integration of the inputs from discipline specialists to validate that the project has a proper and
thorough appreciation of the technical issues that are within an appropriate business context. The
mining consultant of the project is responsible for assisting the project team with mergers and
acquisitions along with the project financing (Finnerty 2013). The tender for the project
financing should be properly laid in order to implement the project successfully.
2. Project Justification and Contract process
The project is justified, as it will help in maintaining and managing larger assets.
Different sites are considered for this project and the implementation of the project work
according to the project plan will help in proper extraction of natural resources through a process
of mining and their maintenance.
The contract type decided for this project is a cost plus contract. This contract is chosen
as it involves the payment of the actual costs of the project, purchases and other expenses
obtained directly from the different construction activity. This contract will involve specific and
clear information about the pre-negotiated amount of the project costs which will cover the
contractor’s overhead and profit. The detailing of the cost in accordance to direct and indirect
costs is necessary in this type of contract (Brandes et al. 2012).
3. Project Financing

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PROJECT MANAGEMENT OF OPERATORS FOR LARGE ASSETS
The project financing is carried out keeping in mind the resources and the cash flow
related with the project. The finance should include the potential benefits of the project and the
profits from the investments. The financing of this project has undergone three phases, which
includes the pre-decision phase that consisted of undergoing proper feasibility studies, expert’s
opinion and aimed at selecting the best version of the project (Winch 2014). The second phase
included the investment phase that deals with the planning and contract of the different materials
that would be required for the project, services, equipments needed and furnishing. This included
the traditional activities contractors hiring and managing their supply chain. The third phase
includes the operations phase that estimates the use of facility and resource management as a part
of the project requirements (Finnerty 2013).
4. Project Condition, Project Team and Project processes
The general project condition includes tools, resources and equipments needed to
implement the project. The project tender estimates the costs of the equipments needed, tools and
resources as well. The tender further includes the pre development fee, utilities, and office
trailers, cost of vehicles and dumpsters, clean up, project staff and labor wages as well (Chin et
al. 2012).
The members of the project team includes-
 A project manager
 A construction manager
 Project stakeholders
 Project Owners
 Contractors

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PROJECT MANAGEMENT OF OPERATORS FOR LARGE ASSETS
 Sub Contractors
 Project Scheduler
 Safety Manager
 Staffs and laborers
The major project management processes related to this project is communication
management process and resource management. Different communication planning methods can
be implemented for maintaining proper communication flow within the project and to keep the
stakeholders informed about the project progress. This is a part of a project management process,
which helps in delivery of successful projects. The resource management process is essential for
keeping a track of the project requirements.
5. Expected estimate
The expected estimates of the project labor plant materials and subcontractors and other
team members are elaborated in the following table
Resource Name Std. Rate
Project Manager $80.00/hr
Workers $35.00/hr
Construction manager $80.00/hr
Laborers $20.00/hr
Sub contractors $50.00/hr
Contractors $70.00/hr
Business Analyst $70.00/hr
Materials cost (estimated) $1000000
Equipments Cost (estimated) $900000
Safety manager $50.00/hr
Project Scheduler $45.00/hr
Quality assurance manger $45.00/hr

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PROJECT MANAGEMENT OF OPERATORS FOR LARGE ASSETS
6. Requirements of project changes
The requirements or causes of the project change are listed below (Stark 2015)-
1. The difference in opinion of the project stakeholders may lead to the changes in project
requirements. Possibility of change in this project requirement should be considered in the
tender.
2. Changes in the regulation can be considered as another requirement of project changes.
If new regulations or legislations are introduced, it may result in change of project scope and
requirements.
3. The improper requirement specification is another major reason of requirements of
project changes in particular project.
4. Changes in sponsorship may lead to the requirements of project changes and therefore,
this criteria should also be kept in mind
5. Another requirement of project change may be due to the change in the business
strategy that may ultimately lead to the change in scope and requirements of a project.
6. Updated technology mainly during a long project as this may be another reason of
requirement of project changes.
7. Requirements for Quality Assurance and Quality control
Quality Assurance and quality control is required for this project in order to ensure that
the project meets the specified requirements (Oakes 2012).

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PROJECT MANAGEMENT OF OPERATORS FOR LARGE ASSETS
The requirement for ensuring quality control and quality assurance for the project
includes-
1. The need for through testing of every phases of the project to ensure that the project
under development meets the set specification
2. A quality control manager should be appointed who would be in charge of the project
quality assurance
3. The routine quality testing is essential for assuring the specified quality of the project.
4. Proper operational techniques should be identified for fulfilling the requirements
based on the quality of the project.
5. Different operational actions should be supervised by the quality control manager to
ensure the specified quality of the product
8. Requirements for document management, reporting and governance
Document management is necessary for keeping a track of the of the project progress
according to the planned schedule. Furthermore, it helps in keeping a track of all the project
works. The requirements of documents management include appointed of a document manager
who would be responsible for keeping a track of the project works and archive all the project
documents (Winch 2014).
Project reporting is necessary to keep the project owner and project stakeholders updated
about the project progress. The sub contractors are responsible for reporting to the contractors,
who in turn report to the construction manager and project manager. The tender should include
the cost of reporting as well.

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PROJECT MANAGEMENT OF OPERATORS FOR LARGE ASSETS
Project governance or project supervision is necessary to ensure that the project is
implemented according to the project plan. The project manager and the construction manager is
responsible for project governance and therefore, the requirements of governance includes
project and construction manager.
9. Requirements for disputes, Arbitration and mediation
Arbitration and mediation are the two methods of dispute resolution. Arbitration is a
dispute resolution technique that are used for resolving the disputes outside the court. It is
generally used for resolution of commercial disputes and therefore it is necessary requirement of
a project.
A single mediator who helps in facilitating the discussion and eventual resolution of the
dispute however, conducts mediation. This is another major requirement that should be
considered in this project.
10. Requirements for Safety
Ensuring project safety is an integral part of project management. Therefore,
requirements for safety in a project includes
 Designing of a safety manual by the project supervisor for ensuring the safety of a
project
 The project should comply by the legal requirements in ensuring the safety of the
workers. Workers safety should be considered as a first priority.

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References
Brandes, T.T., Fernandez, P.B., Issa, P., Lee, V.Y. and Ma, L.J., Sprint Communications
Company LP, 2012. System and method for project contract management. U.S. Patent 8,108,232.
Chin, C.M.M., Spowage, A.C. and Yap, E.H., 2012. Project Management Methodologies: A
Comparative Analysis Participation. Journal for the Advancement of Performance Information &
Value, 4(1).
Finnerty, J.D., 2013. Project financing: Asset-based financial engineering. John Wiley & Sons.
Finnerty, J.D., 2013. Project financing: Asset-based financial engineering. John Wiley & Sons.
Oakes, M.G., 2012. Project reviews, assurance and governance. Gower Publishing, Ltd..
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume 1)
(pp. 1-29). Springer International Publishing.
Winch, G.M., 2014. Three domains of project organising. International Journal of Project
Management, 32(5), pp.721-731.
Winch, G.M., 2014. Three domains of project organising. International Journal of Project
Management, 32(5), pp.721-731.