Analysis of Queen's Wharf Project: Delivery, Finance, and Procurement

This report provides a comprehensive analysis of the project management strategies employed in the construction of Queen’s Wharf in Brisbane by APIC CONSULT. It delves into various aspects, including project selection rationale, background of the Queen’s Wharf project emphasizing its cultural significance and restoration efforts, and a comparative analysis of different project delivery methods such as Design and Build (DB), Design Bid Build (DBB), and Construction Manager at Risk (CM@Risk), ultimately recommending CM@Risk. The report also evaluates financial contract types like Fixed Fee-Cost Plus, Lump Sum, and Guaranteed Maximum Price, advocating for the Guaranteed Maximum Price contract. Furthermore, it explores procurement methods, including Competitive, Negotiated, and Best Value, suggesting Best Value as the optimal choice. The report also provides a risk management plan identifying potential risks such as schedule slippage, improper management, and lack of communication, along with mitigation strategies, and a quality management plan to ensure project success. Desklib offers a wealth of similar solved assignments and past papers for students.

Running head: PROJECT MANAGEMENT
Topic- Construction of Queen’s Wharf
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Project selection.....................................................................................................................2
2. Background of the case project..............................................................................................2
3. Delivery method.....................................................................................................................3
3.1 Different types of delivery method..................................................................................3
3.2 Selection of project delivery method for the project........................................................3
4. Best financial contract............................................................................................................5
4.1 Explanation......................................................................................................................5
4.2 Selection of best contract.................................................................................................5
5. Best procurement method......................................................................................................7
5.1 Explanation......................................................................................................................7
5.2 Selection of best procurement method.............................................................................7
6. Risk management plan...........................................................................................................8
7. Quality management plan....................................................................................................10
References................................................................................................................................11

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PROJECT MANAGEMENT
1. Project selection
The organization named “APIC CONSULT” generally serves as a general contractor
as well as project consultant to various private companies and government agencies which
mainly undertake the construction of Queen’s Wharf in Brisbane that mainly aims to connect
the various Botanic gardens, Queen’s Street Malls, South Bank as well as Brisbane river.
This project is mainly selected as it will put Brisbane on the map as one of the tourists as well
as entertainment destination in Australia.
2. Background of the case project
The project reflects on the construction of “Queen Wharf” in Brisbane with the help
of the organization named “APIC CONSULT”. It is identified that the project is mainly
undertaken because Queen’s Wharf Precinct is the birthplace of European settlement and thus
it holds the culturally significant buildings and places in Australia. In order to keep this
buildings and places alive, proper restoration work as well as repurposing is needed. Thus,
the organization undertake the construction of Queen’s Wharf so that the visitors as well as
local people can be able to enjoy the beautifully restored spaces including cultural, dining,
hotel as well as entertainment.
It is identified that for the construction, demolition of the non-heritage building
generally occurred in the year 2017 however in the year 2018, excavation as well as shoring
activities for the future integrated resort development generally took place. The basement
excavation is generally expected to be continued until late 2019 when the entire site will get
ready for foundations. It is assumed that the total investment will be around $3.6 billion. The
development of the project mainly includes world class integrated resort, residential precinct,
as well as public infrastructures including public space, pedestrian bridge and repurposed
buildings.

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3. Delivery method
3.1 Different types of delivery method
The various project delivery methods are elaborated below:
Design and build contract: It is one of the project delivery system that is mainly
utilized in order to deliver a project where both construction as well as design services are
mainly contracted by a single entity (Yoon, Jung & Hyun, 2016). It is identified that it
generally relies on single point of responsibility contract that is mainly utilized for reducing
the risk of the owner by overlapping both construction as well as design phase of the project.
Design Bid Build contract: It is generally known as the design tender. It is
considered as one of the project delivery method in which both the agency as well as owner
contracts with various entities for the construction as well as design of the project (Gad et al.
2015). There are generally three main sequential phases including the design phase, bidding
phase and construction phase which are utilized for project delivery method.
CM@Risk Contract: In this project delivery method, the owner is mainly
responsible of hiring the construction manager and will be responsible for the construction of
the whole project (Bilbo et al. 2015). It is identified that the construction manager needs to
establish proper GMP that is Guaranteed Maximum price which will be provided to the
subcontractor after the project design gets completed.
3.2 Selection of project delivery method for the project
A table for the Weight and criteria of different project delivery system is provided in
the table below:
Criteria Weight Project Delivery System
DB contract DBB Contract CM@Risk

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Contract
Score Weighted
score
Score Weighted
score
Score Weighted
score
Deliverable
speed
25 7 175 5 125 8 200
Quality 30 7 210 5 150 4 120
Time 25 1 25 6 150 5 150
Communication 20 6 120 4 80 8 160
Total 100 530 505 630
From the above table, it is reflected that CM@Risk have higher score which is 8 and
weighted score is 200 whereas the score for DB is 7 and DBB is 5. This is generally due to
the pressure that the construction manager faces and they generally have proper time and
resources in order to complete the project within the expected time. Communication is also
one of the significant factors that assists in successful project completion. It is reflected that
score of DB is 6, DBB is 4 and CM@Risk is 8 and thus it is identified that construction
manager generally has proper skill set for successfully communicating. In addition to this, the
quality of the project is considered as one of the key factors for the success of the project. It is
found in context to quality, the score of DB is 7, DBB has score of 6 whereas the score of
CM@Risk is 4. It is found that DB contract has highest point because they the designer as
well as builder work together for the project in order to maintain the quality of the project.
Moreover, it is found that in context to time DBB has highest as compared to DB and
CM@Risk. This is generally because the build team of the project has the blueprint with the
help of the client and they work hard to complete it soon. After properly, analyzing the scores
of project delivery methods, it is identified that CM@Risk is better for this project as
compared to DB and DBB

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4. Best financial contract
4.1 Explanation
Financial contract is defined as one of the contract that helps in binding two or more
number of parties. The contract is considered as one of the key for creating the relationship
between the buyer and the seller as it generally provides a framework in order to deal with
each other. The different types of financial contracts are elaborated below:
Fixed Fee-Cost plus Contract: It is found that this type of contract is generally
required when the estimated project cost is not known and therefore the contractor have fixed
fee for it (Roberts, 2015). It is found that fixed fee type of contract is quite easier and it
generally put the client to a simpler way for making a proper decision.
Lump sum contract: In this type of contract, the contractor took the responsibility
for the labour as well a material. This contract generally assists in providing a better
protection and it does not have fixed cost (Delmolino et al. 2016). This contract is very much
hard to make and it creates lot of difficulties for project initiation.
Guaranteed Maximum Price: This is the contract where the contractor is mainly
compensated for the actual costs that is mainly incurred on top. The contractor has the
responsibility of limiting the cost if there is cost overrun (Fernández & Gulan, 2015).
4.2 Selection of best contract
The table that is provided below reflects the weight and criteria of the project:
Criteria Weight Financial Contract type
Fixed fee – Cost
plus Contract
Lump Sum
Contract
Guaranteed
Maximum Price
Contract

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Score Weighted
score
Score Weighted
score
Score Weighted
score
Contractor’s
responsibility
25 7 175 5 125 6 150
Risk 20 4 80 6 120 5 100
Cost 30 5 150 6 180 7 210
Time 25 7 175 4 100 5 125
Total 100 555 525 585
From the table above, it is identified that in context to the responsibility of the
contractor, fixed fee contract has the highest score in compared to other financial contracts
which suggests that they are responsible for completing the project within the expected time.
They are generally responsible of gaining much amount by finishing the task within shorter
time and thus they put risk on the client which is not suitable for the construction of Queen’s
Wharf. In context to risk, Lump contract has highest risk as the clients of the project know
about the project inside and they generally calculate the limit of the cost for the construction
of the project. In addition to this, cost is generally considered as one of the significant factors
for the project. It is identified that Guaranteed maximum price have the highest score. They
generally have proper price limit in order to make the project. It is found that with the help of
guaranteed maximum price, the contractor is required to provide the left-over costs to the
clients. Moreover, in context to time, it is found that fixed fee financial contract has the
highest score and this is mainly because in this type of financial contract, there is no budget
constraint and therefore the project manager does not have limit before the initiation of the
project. It is found that Guaranteed Maximum price is considered to the best option as fixed
cost from the government is approved in order to complete the project with the help of the
contractor within the expected time.

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5. Best procurement method
5.1 Explanation
Procurement methods are considered as the procedures that is mainly utilized by
procuring the entity for acquiring goods, services as well as works. The various types of
procurement methods are elaborated below:
Competitive: Competitive procurement mainly involves in the opening of a process
to tenders in order to obtain the best value. Competitive procurement generally involves the
buter to receive bids from sellers or vendors in order to evaluate those bids before the
selection of a supplier (Brennan, 2016).
Negotiated: This is the best method as it is utilized in order to select a contractor
without involving in any type of formal advertising or formal price competition. It is found
that the rules as well as regulations that are generally employed for specifying the selection of
the contractor are generally made as the best advantage for the government (Kornevs,
Kringos & Meijer, 2016).
Best Value: This is one of the procurement system that generally looks at number of
factors other than the price, including quality as well as expertise during the selection of the
contractors and vendors (Gur, Lu & Weintraub, 2017). In this system, the value that is
associated with various procured goods or services are generally described in comparison to
the benefits as well as costs.
5.2 Selection of best procurement method
Criteria Weight Procurement contract
Competitive Negotiated Best Value
Score Weighted Score Weighted Score Weighted

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score score score
Responsibilit
y
25 7 175 5 125 6 150
Risk 20 4 80 6 120 5 100
Cost 30 5 150 6 180 7 210
Time 25 7 175 4 100 5 125
Total 100 555 525 585
From the table above, it is found that in context to responsibility, negotiated has the
highest value where in context to cost, best value has the highest cost. On the other hand, it is
found that negotiation has the highest score when risk is analyzed whereas competitive
procurement contract is at the top when time of the project is concerned. In addition to this, it
is found that best value is considered as one of the best option for the organization. This is
because it generally looks at number of factors other than the price, including quality as well
as expertise during the selection of the contractors and vendors
6. Risk management plan
Risk Description Impact Probability Mitigation
Schedule
slippage
Due to slippage
of schedule, it
will be quite
difficult to
finish the
project on time.
High Medium It is very much
necessary to
manage the
schedule of the
project quite
effectively.
Improper
management
Due to
improper
management,
Medium Medium Proper
management is
necessary for

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PROJECT MANAGEMENT
the project
managers are
unable to finish
the project
within the
expected
deadline.
completing the
project within
the expected
time and
budget.
Lack of
experienced
workers
Due to lack of
experience, the
project
managers
generally face
lot of difficulty
in finishing the
project.
Medium High Experienced
workers must be
hired.
Lack of project
budget
Due to
improper
budget, the
project manager
generally faces
financial
challenges
High High The budget of
the project must
be managed
properly.
7. Quality management plan
Problem Purpose Outcome Responsible
Low quality of The main purpose is The utilized Quality analyst

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materials to use proper quality
of materials.
material quality got
improved.
Inexperienced
workers
Due to inexperience
workers, it is quite
difficult to manage
the work.
Experienced
workers need to be
hired
Human resource
manager
Improper
management
Due to improper
management, it is
quite difficult to
finish the project.
Proper management
is achieved within
the project.
Operation manager

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