SBM3302 Project Execution and Management Report - ADCO Constructions

This report provides a comprehensive analysis of project execution and management, focusing on ADCO Constructions. It begins with an introduction to the company and the specific two-story medical unit building project in Wales, Australia. The report then delves into project delivery methods, comparing Design-Bid-Build, Design-Build, and Construction Manager at Risk, ultimately recommending Design-Bid-Build for the project. The discussion extends to financial contract types, favoring a lump-sum agreement. Furthermore, the report explores procurement methods, advocating for a value-based approach. Finally, a detailed risk management plan is presented, identifying potential risks and outlining control measures to ensure successful project completion. This report is a detailed study of project management principles applied to a real-world construction scenario.

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 regarded as one of the most trusted and respected
construction organisations. The organisation is well known for its ability to deliver critical
projects up in a particular period (Construct 2019). ADCO has delivered projects throughout
Australia. The organisation has supplied more than 3,500 projects across the nation with
minimum mistakes after being established in 1972. The price of all the projects the
organisation has finished is calculated to be $10 billion. It directly employs over 580
individuals and has been named one of the top twenty private organisations across the nation
(Construct 2019).
In the following report, the project that the organisation took for delivering would be
discussed. The report will give a summary of the project, showing the project's context and
purpose. It will show the project delivery system objective and the best technique to use in
the project. Also the report would be addressing the aim of the sort of economic agreement,
recommending the highest kind of contract for the project. The procurement technique and its
significance will also be mentioned in the study, together with ADCO Constructions ' best
procurement technique chosen for the project.
Discussion
Background of the company
ADCO Construction is the target firm for the study. The firm is run by the chairman's
joint partnership. The organisation has been granted to complete projects such as non-
residential projects and tenders in the nation by a gross sum of $1.4 billion (Construct 2019).
All projects taken for delivery are licensed and controlled by the Australian government.
Critical checks are carried out about people's safety, as most projects involve government and

2PROJECT EXECUTION AND MANAGEMENT
private transport (Construct 2019). Therefore, ADCO was regarded secure in the specified
quantity of time to deliver such a project.
Background of the project
ADCO Constructions ' project is two-story building design. The building would be
used mainly as a medical unit. The construction of the building would be developed in Wales,
Australia's steep terrain. It is estimated that the project will be finished within the client's
specified timeframe. It is also predicted that within the estimated price supplied by the client,
the project would be completed. The project's primary aim is to provide quick medical care to
residents.
Project Delivery Method
The method of project delivery or the structure of delivering the project methods is
classified as a system that maintains the first team interest. The leading designated team's
attention is said to consist of multiple types of members being arranged in a specific manner
that would integrate the members for the project's ideal results (Touran and Burgos 2018). It
is defined and used in such a way that results collaborate. The project delivery technique
process itself is categorised as a value-based process where the project distribution is very
high ended and the outcomes arising from the execution of the different methods in the
project distribution model are categorised as high quality outcomes.
Project delivery technique is used in different types of projects since it allows
to deliver the required outcomes that customers want. After implementing the project
delivery system, the results of the projects would help the organisation to address the whole
project at one moment (Antoniou and Aretoulis 2018.). An enterprise or any company or
organisation also uses the project delivery system to organise the project layout and finance
the project for execution. The project is organised and funded in multiple other industries

3PROJECT EXECUTION AND MANAGEMENT
such as building, its operation, along with service maintenance for any job structure or
equipment in that industry. The system appears to enter into legal contracts with more than
one or more establishments or parties involved in the project.
There are different kinds of techniques that help deliver the method of the project.
Plans such as Design-Bid-Build or Design Award Build, Design Bid Build with Construction,
Design-Build or Design-Build, Design-Build Operate Maintain, Build Operate Transfer,
General Contractor or Manager of Construction, Integrated Project Delivery and Public-
Private Partnership are used to deliver the project delivery method model for a specific
project.
Design-Bid-Build (DBB), Design-Build and Construction Manager at Risk (CMAR),
are the project delivery techniques to be assessed in the report.
Design Bid Build
The project delivery system called Design Bid Build is categorised as a project
delivery system which is developed by the proprietor of a company or organisation that
creates a contract. The system is being used to draw all the contract papers produced between
the architecture and the engineer assigned to complete the project (Franz et al. 2019). The
documentation would consist of some sets of blueprints and all the comprehensive project
specification that is yet to be finished. All project-related offers are requested from the
project consultants appointed based on the paperwork. The contract is granted to the
contractor with the smallest response bid to complete the project after the documentation
process is completed. In this way, keeping track of all the prospective contractor that could
finish the project and produce a quality project compared to the client's required result would
be simple for the proprietor (Hoff, Hammond and White 2016). The material would also
assist the firm's owner handle all the project-related demands.

4PROJECT EXECUTION AND MANAGEMENT
Design-Build Method
The project delivery system method known as the design-build technique is said to be
the project delivery system process that is widely used in the construction industry and used
by the building company. The method helps to deliver a specific project where the
construction's design and service are contracted to be a monolithic entity or a single person.
The individual may be quantified as a design-builder or as a design-builder. The agreement
could, therefore, be split into architect-led-design-build or contractor-led design-build if the
proprietor sought (Khwaja et al. 2016). The project would be reliable in this system, where
one individual alone to whom the project agreement is allocated. The system is used to
minimise the risk factor for the project proprietor and to reduce the shipping timetable by
overlapping the design stage and the project building phase. The project's traditional strategy
would consist of appointment at one stage with the developers and appointment at another
side of the contractor. Sometimes the design-build system is compared to the master build
strategy because it is one of the oldest methods used in the building line. The system is
therefore trustworthy for timely delivering the project.
Construction Manager at risk
The construction manager's risk project method is a component of the project delivery
system. The technique quantifies in creating specific characteristics that involve a
commitment to be produced by the project's construction manager to deliver the project
within the maximum guaranteed price set. The price of finishing the project is set by the
company or organisation. The construction manager should function as the project owner's
advisor (Ma, Zhang and Li 2018). The building manager would behave as the owner's advisor
through the design stage and project development. An essential character of the relationship

5PROJECT EXECUTION AND MANAGEMENT
would be altered as the construction manager would be obliged to a particular GMP. At the
building site, the project price would initially be regulated by the supervisor.
Ideal Project Delivery Method for the firm
The design bid construction project management process should be used for the
project conducted by ADCO Construction. Providing the project to their set contractors
would be useful for the business. As for the project delivery system bidding phase, it would
be performed based on some of the fundamental building requirements (Naoum and Egbu
2015). Because of the brand loyalty the organisation has constructed, it would assist them get
some of Australia's most excellent contractors to bid in the agreement. Hereafter, the design
bid construction technique would be perfect for ADCO Constructions ' two-story construction
project.
Financial Contract type
The phrase contract type is used to indicate the fundamental distinction in a project's
contract structure or form, which would include the different kinds of agreements and the
government and contractor's hazards. These contractors measure all the risks and costs to the
project which would be used to complete the appointed project (Naughton et al. 2017). These
agreements are said to be mutual knowledge or legal negotiating agreement between two
sides, mostly based on corporate or organisational policies and conditions set for the project
by both parties.
The categories of contract type to be addressed in the report are Lump-sum
agreements, guaranteed maximum price and cost-plus fixed free to contact.
Lump-Sum Contracts

6PROJECT EXECUTION AND MANAGEMENT
This sort of agreement is used in the building industry. It is one of the types of
building contracts in which references are sometimes made to prefer a specified amount to a
single cost to start the project (Stopka et al. 2016). The value is therefore placed in the
contractor's hands to complete the projects.
Guaranteed Maximum Price Contract
This sort of agreement is understood to be a contract of cost type in which the
contractor compensates for the real project costs incurred with a fixed fee plus a ceiling price
(Tafti and Almaswari 2018). Unless the GMP has been extended, the contractor would be
liable for the cost overruns.
Ideal Contract type for the project
The best sort of agreement in the project would be the lump sum agreement ((Stopka,
et al. 2016). Because the design bid build is the perfect project delivery for this project, it
would be wise for the contractor to produce a lump price to complete the project.
Procurement Method
The word procurement is used to describe all possible activities that the client
undertakes to try to bring about a building's construction or renovation. It is the technique by
which the advantages and disadvantages of economic limitations of the project affected.
Competitive procurement method
The primary purpose of the way is to inform the management that the management
should maintain high standards of quality to ensure a thorough process in the project (Zhang,
Liang and Gao 2017).

7PROJECT EXECUTION AND MANAGEMENT
Negotiation procurement method
The technique would allow the project proprietor to negotiate the price and timeline
of the project with the contractors.
Value-Based Procurement method
This technique is an alternative method to complete cost reduction, enhancing project
effectiveness and enhancing project results as well ((Naughton et al. 2017).
The ideal method of procurement for the project
The value-based procurement would be the perfect procurement method for the
project conducted by ADCO construction. The technique would help to create a sustainable
way to complete the project.
Risk Management Plan
Ris
k
No
Risk Incident Risk Description Current
Controls
Likelihoo
d
The owner
(stakeholde
r
concerned)

8PROJECT EXECUTION AND MANAGEMENT
1 Site risks
1. Delay in the
handover of
site.
2. Delay in
project
commencement
.
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
commencemen
t 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.The collapse
of structures
during
construction
and destruction
of structures
after closure of
the projects.
2.After closure
of projects
would lead to
injury and death
of users of
facilities
1. Ensure that
appropriate
design
specifications
have complied.
2. Audit of the
projects
annually or if
required on
monthly basis
3.Procurement
contract should
specify the
requirements
High Government
of Australia

9PROJECT EXECUTION AND MANAGEMENT
to adhere to
designs
4
WHS risks Construction
companies
generate lower
revenue due to
lack of investors
1. Injuries and
bruises or even
death
2. Action from
Safe Work
Australia
Very high Government
of Australia
5 Environmenta
l risks
Large scale
ecological
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. Wastewater
in released only
after treating
3.Recycle water
and reuse it in
the
construction
works
Very high Government
of Australia
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

10PROJECT EXECUTION AND MANAGEMENT
The major risk quadrants would be classified as catastrophic, major, moderate and
minor risks. The matrix points out the intensity of the risk that could lark at any construction
sites. Most of the risks are classified to be very high as major life threats are found in a
construction sites. Material threats are also a part of the risk quadrant matrix. Low cost
materials could cause the fall of the buildings or any super structure. Labor work is also a part
of the quadrant. Poor work could speed up the process of material decay, which in turn could
risk the lives of the normal people.
Conclusion
Thus, a brief overview of project execution and management could conclude the
report. A summary of the project site, building company, method of project delivery,
economic agreements and process of procurement was given in the story. The report also
presented the organisation with the best techniques to complete the project.

11PROJECT EXECUTION AND MANAGEMENT
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