Analysis of Project Execution Planning and Management for Sydney Metro

This report provides a comprehensive analysis of project execution planning and management for the Sydney Metro project. It begins with a brief overview of the project and then delves into the selection of the most suitable project delivery methodology, recommending the Design Bid Build method based on criteria such as delivery schedule, project complexity, and cost-effectiveness. The report then assesses and suggests the most appropriate finance contract type, advocating for the Lump Sum contract due to its benefits for the project owner. Furthermore, it evaluates and recommends the best procurement method and outlines a detailed risk management plan, including a risk register, risk quadrant analysis, and a mitigation plan. The report concludes by summarizing the key findings and recommendations, providing valuable insights for effective project management in the context of a large-scale infrastructure project like the Sydney Metro.

Running head: PROJECT EXECUTION PLANNING AND MANAGEMENT
Project Execution Planning and Management: Sydney Metro Project
Name of the Student
Name of the University
Author’s Note:

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PROJECT EXECUTION PLANNING AND MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1 Brief Idea of the Case Study..................................................................................................2
2.2 Suitable Recommendation of the most significant Project Deliveries Methodology for the
Sydney Metro Project on the basis of Few Criteria.....................................................................2
2.3 Assessment and Suggestion of the Finance Contract for Sydney Metro Project..................6
2.4 Evaluation and Recommendation of the Best Procurement Method.....................................8
2.5 Risk Management Plan for the Sydney Metro Project........................................................10
2.5.1 Risk Register.................................................................................................................10
2.5.2 Risk Quadrant Analysis................................................................................................10
2.5.3 Risk Mitigation Plan.....................................................................................................12
3. Conclusion.................................................................................................................................12
References......................................................................................................................................14

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PROJECT EXECUTION PLANNING AND MANAGEMENT
1. Introduction
Project management could be referred to as the main process for fulfilling the most
distinct and important success criterion at the particular time. The most significant obstacle of
this PM is obtaining all types of project goals in the subsequent constraints (Kerzner 2017). This
report will be outlining a brief description on project execution planning as well as management
for the popular and significant project, called Sydney Metro Project for choosing the best
methodology for project delivery, best finance contract types and the best method for
procurement as well as a suitable risk management plan with relevant details.
2. Discussion
2.1 Brief Idea of the Case Study
Sydney Metro is a completely automated rapid transit system that is located in Sydney,
New South Wales, Australia. The project is being owned by Transport for NSW and it consists
of 13 number of stations. The project is considered as one of the most significant and important
projects in entire Australia and is scheduled to complete in the year of 2024 (Sydney Metro.
2020). The Sydney Metro West project has been announced and it would be running from the
CBD to Westmead. The owner of the project has ensured that maximum effectiveness and
efficiency is being obtained under every circumstance. The design structures and processes are
extremely effective and additional lines are being taken into consideration for this purpose.
2.2 Suitable Recommendation of the most significant Project Deliveries Methodology for
the Sydney Metro Project on the basis of Few Criteria
A methodology of project delivery can be referred to as a system that is being utilized by
any particular agency or owner for proper organization as well as financing of the designs,

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PROJECT EXECUTION PLANNING AND MANAGEMENT
constructions, procedures and even services of maintenance for the structure or facilities only by
making an entrance into proper legal agreement with 1 or more parties and individuals
(Meredith, Mantel Jr and Shafer 2017). There exist three distinct types of project delivery
methods present that could be extremely effective and significant for the respective project. For
this particular project of Sydney Metro, proper description of these three delivery methods is
provided in the following paragraphs:
i) Design Bid Build: The first and the foremost project method of delivery for Sydney
Metro project is design bid build. It is also termed as design tender and is considered as one of
the most traditional method or hard bid. In this specific method, the project’s owner makes a
contract with separate entity for the respective designing as well as construction (Heagney 2016).
There are three major sequential phases to the delivery method of design bid build, which
includes the designing phase, the bid or tender step and finally the construction stage. In the
designing stage, the respective owner maintains an architect for designing as well as producing
the major bid documents like inclusion of construction drawing or technical specification, over
which several generalized contractors would in turn bid to construct the significant project of
Sydney Metro (Fleming and Koppelman 2016). For properly building the project, the architect
would be working with the owner for successfully identifying the requirements of the owner,
development of the written program for documentation of these distinct needs and then also
producing a schematic as well as conceptual design.
The second phase is the bidding or tendering phase, in which bidding can be done in open
and as a result, any qualified bidder might participate or select the limited number of previously
selected contractors, who are being invited for bidding. Several contactors are present for
bidding on the project and hence obtaining numerous copies of the tender documents. The bids

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could be based for the quantities of materials within the completed construction of Sydney metro
project. The final phase is the construction phase (Walker 2015). As soon as the project
construction is being given to the contractor, the respective bid documents might not be altered.
The important aspects provide permission and should be achieved from all the jurisdictional
authorities for initiation the construction process. The design changes should be done during
construction. As a result, it becomes effective for any project to get success.
ii) Design Build: The second important and significant project delivery method for
Sydney Metro project is design bid. This particular process is required for appointing an architect
as well as a general contractor for ensuring that the specific individual would complete designing
and deploying the project from initiation to the closing phase (Turner 2016). This particular
delivery method lacks any type of proper phase or step in bidding out of the work to the other
contractor. It majorly stresses over the joint venture as well as the act for partnership within the
construction company of Sydney Metro.
iii) CM @ Risk: The next vital and noteworthy project delivery method for Sydney Metro
project would be CM @ risk. It is a distinct methodology for delivery that involves a major
pledge by the construction manager to ensure delivery of the project in guaranteed maximum
price. Here, the constructor of Sydney metro is provided with the project while completion of the
designing phase to ensure that design gets completed on an effective manner (Marchewka 2016).
As a result, the lowest bidder is assigned for the project. The respective constructor organization
gets assigned the project.
There are some of the most distinct and vital criteria for evaluation of these specific
project delivery methods and these are provided below:

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PROJECT EXECUTION PLANNING AND MANAGEMENT
i) Delivery Schedule: The respective schedule of the project initiates from the project
scope and helps to design the steps for project execution and ensure that the finished project is
accurate and within time (Joslin and Müller 2015).
ii) Project Complexity as well as Innovation: Subsequent adaptation of this new as well
as creative designing methods is required for better solving and eradication of the complex risk
factors.
iii) Level of Design: Designing level is being checked properly for fulfilling the accurate
delivery date of the project.
iv) Initial Risk Assessment: The initial risks are required to be assessed for identifying
the probable failure reasons successfully.
v) Cost: Project should be completed within budget, so that it becomes easier to ensure
that budget is not overshot.
vi) Staff Experiences and Availability: The staff must be well experienced and available
for better execution of the project without much complexity (Verzuh 2015).
vii) Levels of Oversight as well as Control: Subsequent exercises of this ownership as
well as controlling system must be assessed.
viii) Competition as well as Contractor Experiences: The contractor should be
experienced enough for ensuring that better competition is fulfilled without much complexity.
Criteria Total Score Design bid build Design Build CM @ Risk
Delivery Schedule 10 9 7 7
Project 10 8 8 7

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PROJECT EXECUTION PLANNING AND MANAGEMENT
Complexity and
Innovation
Level of Design 10 8 7 6
Cost 10 9 5 7
Staff Experience
and Availability
10 9 8 8
Level of
Oversight and
Control
10 8 7 6
Competition and
Contractor
Experience
10 10 9 8
Table 1: Evaluation Criteria for Project Delivery Methods
(Source: Created by the Author in MS Word)
After successful evaluation and assessment of the three project delivery methods, it is
recommended to use design bid build for Sydney metro project. This particular project is of a
larger tender and hence design bid build would be producing fastest construction. Moreover, due
to a cost effective methodology, the project would not exceed budget.
2.3 Assessment and Suggestion of the Finance Contract for Sydney Metro Project
There are three kinds of distinct financial contract types for Sydney Metro Project, which
are provided in the following paragraphs:

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PROJECT EXECUTION PLANNING AND MANAGEMENT
i) Lump Sum Contract: It is a specific amount contract, which is being agreed amongst
the contractor and owner. The respective risks are being calculated during the planning phase of
this project, in presence of the specific contractor (Todorović et al. 2015). The total amount of
fee to be paid would be negotiated within them and as a result, the finalized settlement to be paid
in full.
ii) Guaranteed Maximum Price: The second finance type contract type is guaranteed
maximum price. It is being assessed on the basis of the compensations of the total costs being
incurred by the specified contractor with a summation of the fixed price to be given to this
contractor.
iii) Cost Plus Fixed Fee: The respective contractor has the responsibility of paying for
their work with a limited fee amount. It ensures a subsequent margin for this specific contractor
for earning a profit from the tender. These incurred overheads would be evaluated for the market
values.
Criteria Total Score Lump Sum Guaranteed
Maximum
Price
Cost Plus Fixed
Fee
Agreeable 10 9 8 9
Amount of
money
10 8 8 7
Profit margin 10 9 7 8
Risk taken 10 9 8 8
Table 2: Financial Contract types

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PROJECT EXECUTION PLANNING AND MANAGEMENT
(Source: Created by the Author in MS Word)
After evaluation, it is highly recommended for Sydney Metro project to use lump sum
contract, as the project owner has to give only a fixed amount of fee to the respective contractor
and as a result, the project owner would be benefitted.
2.4 Evaluation and Recommendation of the Best Procurement Method
The project execution planning is responsible for helping the project manager in
executing, monitoring as well as controlling the entire project and hence ensure that better
efficiency and effectiveness is being gained in the project work subsequently (Hornstein 2015). It
is required to ensure that the various steps are being followed properly and detailing about the
specified activities within the project work. This type of planning sets out the major protocols
and processes to be utilized for development of the design and hence checking if the project
quality is maintained eventually. It helps in reducing the chance of project failure and ensuring
successful establishment of the appropriate terms and conditions, required to be fulfilled for
meeting project scope and contractual needs.
Such distinct information is being described in the project documentation and is being
made at the initiation phase eventually for the entire development procedure (Kerzner 2019). The
major project constraints include scope, schedule, budgets and quality and the secondary major
constraint of the work involves proper optimization of the distribution of every required input
and also relating them towards gathering of the objectives and goals. The major goal of the
project management is ensuring a complete project that can be complied with the goals of the
customer and also ensure maximum client satisfaction is ensured under every circumstance. As
soon as the client’s objectives are properly followed, the execution of the project becomes easier.
Three procurement methods for Sydney Metro are provided below:

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PROJECT EXECUTION PLANNING AND MANAGEMENT
i) Competitive Method: This particular method is responsible for identifying the most
ethical bidding methodology by their suppliers. As a result, the contractors get interest in the
tender for submitted their bids accordingly (Kerzner 2017). The best bidding participant gets the
tender and the competition is fairly judged.
ii) Negotiated Method: In the next procurement method, the contractor of the project can
eventually negotiate with the project budget, after keeping in mind the respective profit margin
to their contractor. It is rarely being used as the contractors have the tendency to ask for huge
amount of fees, which are not affordable for the project owners.
iii) Best Value Methodology: The final methodology of procurement is the best value
method. The subsequent low bidding factor should be considered and the contractor comprises of
the expertise. The values are analyzed and the best value is being chosen for the contractor
(Badewi 2016). This particular method helps to remove the procedure to select a contractor on
the basis of the lowest bid.
Criteria Total Score Competitive Negotiated Best Value
Bidding 10 8 8 9
Decision of the
owner is final
10 6 7 8
Negotiation 10 7 9 8
Risk taken 10 7 7 10
Table 3: Three Procurement Methods
(Source: Created by the Author in MS Word)

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After evaluation of the procurement methods, it is recommended to use the best value
method for Sydney Metro Project. The main reason is that the working quality of the contractor
should be considered properly for gaining high quality of work.
2.5 Risk Management Plan for the Sydney Metro Project
2.5.1 Risk Register
A risk register is required for identifying all types of significant risks that are possible for
the respective project work (Heldman 2018). The risk register for Sydney Metro Project is
provided below:
Risks Likelihood Impact Severity Owner of the
risk
Safety hazards
like accidents
Medium High High Workers
Managing
change order
High Medium Medium Project owner
Incomplete
drawings
Low High Medium Architect
Labor shortages Low Medium High Project owner
Table 4: Risk Register for Sydney Metro Project
(Source: Created by the Author in MS Word)
2.5.2 Risk Quadrant Analysis
The risk quadrant analysis is responsible for identifying the commodities as per the
values and risks for proper determination of the accurate results.

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Table 5: Risk Quadrant Analysis for Sydney Metro Project
(Source: Created by the Author)
For the respective project of Sydney Metro, the four identified risks in the risk register
can be put into the risk quadrant analysis.
i) High Return Low Risk: Managing change order is the high return low risk for Sydney
Metro project.
ii) High Return High Risk: The safety hazard such as accidents is the high return high
risk as the impact and severity are extremely high for this particular risk (Svejvig and Andersen
2015).
iii) Low Return Low Risk: Labor shortage is the low return low risk as Sydney Metro has
contract based labors and they do not wish to be abscond from their work.
iv) Low Return High Risk: Incomplete drawing is the low return high risk as Sydney
Metro has appointed proper architect, however any type of discrepancy in the drawing could be
extremely vulnerable.