Report on Project Costing, Risk Assessment for Australian Contracts

This report, submitted by Rijul Gupta, a bid coordinator, evaluates new business opportunities in Australian construction contracts, focusing on high-rise building projects. It details project costing, risk assessment, and bidding strategies for three projects with a combined value of approximately $450 million. The report includes an executive summary, risk assessment with mitigation strategies for various construction-related risks, project estimates, work scheduling, and an organization chart. Background research on three specific projects (CBW complex, One Central Park, and Brookfield Place) is also provided, including their features, construction details, and associated risks. The report covers cost breakdowns, timelines, and recommendations for effective project management, risk mitigation, and bidding processes. The report identifies several risks, including excavation and demolition challenges, design changes, site location issues, subcontractor conflicts, logistics, community constraints, and potential cost increases due to law changes or weather conditions, and suggests mitigation strategies for each. The report is a comprehensive guide to project management, risk assessment, and bidding for construction projects.

Project costing

Table of Contents
1. EXECUTIVE SUMMARY.........................................................................................................1
2. RISK ASSESSMENT..................................................................................................................2
2.1 Chart showing before and after risk conditions..............................................................14
2.2 Summarisation of important risks related to this contract work.....................................15
2.2.1 Analysis and management of risk...........................................................................15
2.2.2 Likelihood...............................................................................................................16
2.2.3 Consequence...........................................................................................................16
2.2.4 Severity of risk........................................................................................................16
2.2.5 Recommendations...................................................................................................23
3. PREPARING PROJECT ESTIMATES....................................................................................24
4. SCHEDULING OF WORK ......................................................................................................26
4.2 Planning in respect of Bid..............................................................................................28
4.3 Estimation of cost for expenditure related to site visit...................................................33
5. ORGANISATION CHART.......................................................................................................35
6. BACKGROUND RESEARCH ................................................................................................36
6.1 CBW complex................................................................................................................36
6.1.1 Background.............................................................................................................36
6.1.2 Location..................................................................................................................36
6.1.3 Features of project..................................................................................................36
6.1.4 Construction and design.........................................................................................37
6.1.5 Risk encountered....................................................................................................37
6.1.5 project delivery system...........................................................................................37
6.1.6 Calculation of Current dollar value........................................................................38
6.2 One central park.............................................................................................................39
6.2.1 Background.............................................................................................................39
6.2.2 Location..................................................................................................................40
6.2.3 Features of project..................................................................................................40
6.2.4 Construction and design.........................................................................................40
6.2.5 Risk assessment......................................................................................................40
6.2.6 Project delivery.......................................................................................................40

6.2.7 Dollar rate calculation.............................................................................................41
6.3 Brookfield Place.............................................................................................................43
6.3.1 Background.............................................................................................................43
6.3.2 Location..................................................................................................................43
6.3.3 Features of project..................................................................................................43
6.3.4 Construction and design.........................................................................................43
6.3.5 Challenges in project..............................................................................................44
6.3.6 Delivery system of project......................................................................................44
6.3.7 Dollar rate calculation.............................................................................................44
REFERENCES................................................................................................................................1

1. EXECUTIVE SUMMARY
Melbourne,
Department of marketing and sales
Subject: Reporting on various business proposals
This is the report in which all new opportunities that are available with respect to
Australian business contracts are to be evaluated. A detailed study will be carried out under
which focus will be provided on three projects which are selected on high rise buildings and that
has been instructed by CEO. All the aspects which are to be covered in this report include new
ideas that are introduced in company, summary about all three projects and all other functions
which are performed and the manner in which cost is calculated. Also, risk assessment will be
carried out so that proper analysis can be made.
Bidding will be done in relation of all the three projects that are present in Australia. The
total value that is involved in them is around $450 million. All factors that are to be considered
in the process of preparation of bid are as follows:
1. Duration that will be taken under this is approx. 5 months.
2. Total staff which is involved in this is 7 departments and 15 people under them.
3. Estimated cost of this is $ 300,420
The bifurcation of total cost is as follows:
S.n Department Cost
1 Administration $0
2 Marketing $60,273
3 Construction $12,992
4 Engineering $10,577
5 Contracts $18,798
6 Estimating $78,108
7 Planning $51,206
Total $231,954
19.25% overhead charge $44,651.21
ticket fare and accomodation $23,810
Grand total $300,415.53
S.N
. Phase Start Finish Cost
1

1 Scope
Definition
March
6,2017
May
11,2017
$56,577.36
2. Estimation April7,
2017
June
7,2017
$14,8513.4
4
3. Review June 11,
2017
June 28,
2017
$15,744.32
4. Submission June
29,2017
July 3,
2017
$3788.64
All the required information is provided in this report and can see in attached documents.
Regards,
Rijul Gupta
(Bid coordinator)
2. RISK ASSESSMENT
In all the three projects, there are various risks which are identified and all of them are
mentioned below together with the mitigations in respect of them:
S. No. Description of risk Recommended mitigation
1 In respect of Excavation and
demolition activities
→ In all the big projects which
are related to high rise, there
are various operations with
respect to excavation,
construction and demolition
that are required to be carried
out in simultaneous manner.
So, due to this, in order to
conduct all activities in a
proper manner, it is needed
that an initial planning shall be
done and also, redesigning of
structure is to be performed.
→ It is needed that all the
2

disruptions that take place in
construction activities shall be
reduced and for that, effective
planning shall be done (Ali and
Kamaruzzaman, 2010). Also,
total work that is to be done
should be divided into various
parts so that it can be achieved.
2 Risk of design: Omission and
other changes in drawings.
→ In the process of designing,
there are several changes that
take place and also, some
modifications are made at the
last minute. The process that is
to be carried out so that
detailing can be completed will
take a long time and by this,
overall period of project will
be extended.
→ In order to overcome all
disputes which take place, it is
required that good relations
shall be maintained in between
the contractor and clients.
→ Proper communication
system shall be developed so
that complete information can
be communicated in the best
possible manner.
3 Related to location of site → The risk in relation to safety
is present as street in which
3

site is situated has high level of
people movement.
→ With respect to construction
work, there shall be effective
discussion that is to be
conducted by contractor with
council, all stakeholders and
neighbouring meetings.
4 Conflicts among all sub-
contractors
→ It is required that proper
environment shall be created
so that all members enjoy
working in specified field and
by this, team spirit is
developed.
→ All the work shall be
allocated to different
departments in a proper
manner and they shall be
explained clearly about what is
to be done in the provided
zone (Larham, 2010).
→ In the whole period of
construction, it should be
ensured that good coordination
and communication is
established.
→ A team member is needed
to guide all others who are
there in the team and for this, it
shall be noted that appropriate
4

and skilled persons are elected.
5 Coordination and logistics
related risk in which
transportation, location and
other aspects are included.
→ Proper plan is to be made
regarding the construction site
in which tenants are there in
some portion and remaining is
utilised for construction. In
this, proper execution of plan
will be required to be done so
that project can be completed
in an efficient manner.
→ Effective work environment
is to be made and for the same,
it has to be ensured that
appropriate training is given to
all assigned workers by a
qualified leader. By doing so,
proper working is ensured.
→ There are various issues
which arise and in order to
deal with them in the best
manner, it is required that
professional people shall be
allocated.
6 Community and constraints
that are related to it. In the site
updates, related to
infrastructure is required by
various contractors.
→ The main factor that is
involved in making project a
success is that proper
engagement shall be made by
whole community.
→ Appropriate actions are to
be taken with respect to
5

different updates related to
construction and for that,
several tools shall be taken into
consideration. Some of the
issues related to it are
newsletters, regular reporting
and project hotlines along with
complaints by neighbouring
buildings. Also, personal
relations are to be maintained.
7 Carrying out of construction
on various work faces in
simultaneous manner
(Amelung and Moreno, 2012).
→ All the functions shall be
assigned on appropriate basis
to team members who are
responsible for controlling of
team.
→ in the construction work
there is a complex mix and to
overcome that it is required
that several procedures related
to it shall be implemented by
project manager.
→ There are many ways with
the help of which it is possible
to overcome risk and it
includes conduction of
coordination meeting on daily
basis or an exclusion zone can
be established.
→ The construction work is
6

performed in different sectors
and in order to maintain
harmony among them it is
required that proper
coordination shall be
established between all the
subcontractors involved.
8 Risk related to additional cost
which arise due to changes that
takes place in laws and
policies.
→ In respect of all future
obstructions, it is required that
consideration shall be given to
margin of contingency.
→ Preparation of unbiased
contract and report shall be
undertaken.
→ In the report all the cost that
are incurred additionally or if
any delay has taken place
because of modifications in
laws and policies shall be
mentioned. This should be
done only when they are
related specifically to that
project.
9 Delay or hindrance is caused
in construction work due to
bad weather conditions.
→ All the environmental
factors and weather conditions
in relation to site shall be
studied in detail.
→ Regular updates should be
provided about the weather
condition of site.
7

→ Separation of contingencies
and allowances will be done
for weather aspects.
→ weather conditions of past
years shall be properly
analysed in relation to site so
that chances of occurrence of
extreme weather conditions
can be identified.
→ Before starting project all
the factors shall be researched
about weather of site so if any
risk is there then it can be
identified.
10 Risk of amalgamation in
respect of quality of project
and cost efficiency and
sustainability of environment.
→ Survey and study shall be
carried out for the
environment.
→ Various important methods
are there that can be used and
they include water recycling,
trigeneration power, passive
solar design and black water
treatment plant.
→ It is required that new and
innovative methodology shall
be incorporated in building
such as green walls.
→ Various developments keep
on occurring and in order to
make all the members aware
8

about them it is needed that
training shall be provided to
them about all the new
technologies.
11 Difficulty in implementation
of several structures because
of their designs and innovative
designs and all this leads to
delay in project.
→ Best construction
techniques should be
undertaken and for this study
about scope of project should
be done (Cooper, 2017).
→ workers will be able to
carry out operations in most
effective manner if they are
provided with all knowledge
regarding technology.
→ Use of best machines and
equipments shall be made and
it shall be ensured that proper
guidance of experts should be
used for that.
→ The person who is most
experienced will be assigned
responsibility about related
field and then he will have to
direct all other members of
team in proper manner.
12 Difficulty which is faced in
using big equipments and also
in installation process of broad
structures to extreme levels.
Also safety risk is involved
→ Such technicians should be
appointed who have worked
under same field in past and
have experience.
→ Equipment should be taken
9