Large Asset Project: Tender Request Based on AS 4120-1994 Standard

This report outlines a project management tender request focused on the unique construction sector, specifically the installation of major equipment in a thermal power station, including boilers, turbines, and generators. It emphasizes the importance of modularization to reduce construction time and the use of specialized technology for handling large equipment replacements. The report covers project justification, highlighting the adoption of concentrated solar radiation (CSP) to reduce electricity costs, and details the contract process, emphasizing the legal binding of all parties involved. It also addresses project financing through project finance direction, identification of project conditions, the role of the project team, and the project processing. Furthermore, it estimates tender costs for project labor and plant location factors. Finally, the report touches on project changes, quality control, document management, reporting, governance, dispute resolution, and safety requirements. Desklib offers a platform to explore similar solved assignments and project management resources.

Running head: PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 1
PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS
Name of Student
Institution Affiliation

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 2
Table of Contents
1. Statement of the project.........................................................................................................3
2. The project justification and the process of the contract...................................................4
2.1. Project justification............................................................................................................4
2.2. The contract process...........................................................................................................5
3. Financing the project.............................................................................................................5
4. Identification...........................................................................................................................6
4.1. The condition of the project...............................................................................................6
4.2. The project team.................................................................................................................7
4.3. Processing of the project....................................................................................................7
5. Estimated tender.....................................................................................................................8
5.1. Project labor........................................................................................................................8
5.2. Plant.....................................................................................................................................8
5.3. Sub-contractor....................................................................................................................9
6. The requirement of project changes.....................................................................................9
7. The requirement for quality control and project assurance............................................10
8. The requirements for management of documents, reporting, and governance.............11
8.1. Management of documents..............................................................................................11
8.2. Reporting...........................................................................................................................11
8.3. Governance........................................................................................................................11
9. Requirements for attribution, disputes and mediation.....................................................12
9.1. Disputes..............................................................................................................................12
9.2. Attribution.........................................................................................................................12
9.3. Mediation...........................................................................................................................12
10. Safety requirements..........................................................................................................13
11. References..........................................................................................................................14

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 3
1. Statement of the project
The project mainly focuses on the sector of unique construction and is based on the aspect of
major equipment installation for a thermal power station. The major equipment that would
require installation includes the following; boilers, turbines, and generators. There are a number
of participants that are closely involved in the project. One major participant or customers that
are directly concerned with this project are the electrical power industries and companies. These
power companies may include independent power producers (IPPs), commercial thermal power
station, government agencies, wholesale power producers as well as other thermal electrical
plants (Abdel-Hamid & Madnick, 2011). There are always a number of the delivery record that
often relates to the thermal power stations. These records can be as stated below;
 Diesel thermal power station
 Combined cycle thermal power station
 Gas turbine generator thermal power station
 Gas engine thermal power station
 A conventional thermal power station which mainly uses the following fuels directly;
gas, coal, oil etc.
 Other special thermal power stations.
The main consideration of this project and that has been taken into account is the ability of the
company to make a modularization of the parts that need to be installed. This is in relation to an
objective of reducing the period of construction (Al-Harbi, 2008). The organization has also
gone further to design and creates equipment that is concerned with the modules transportation
as well as other massive components to the required areas where the installation should be
carried out. Several other large types of equipment are also replaced periodically from the site

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once their operation is complete. The purpose of carrying out this activity is to ensure and
observe the required safety and quality levels as well as for maintaining the overall performance
of the project. It is therefore important to note that updated and special technology is an
important requirement during the operations in the site and the whole project execution. This is
because the sizes of the equipment that will require replacement over and over are very large.
2. The project justification and the process of the contract
2.1. Project justification
One major improvement factor in the current of the thermal power industry is the adoption of the
use of concentrated solar radiation, commonly referred to as CSP. The adoption of this concept
has been continuously evolving since it is aimed at reducing the cost of electricity. The concept
of concentrated solar power has helped achieve low electricity costs since it puts into practice the
use of effective systems of conversion and less expensive components that also have a much
longer lifespan (Baker, Murphy & Fisher, 2008). It is evident that above 90% of the already
installed concentrated solar power plants are mainly large-scale systems (multi-megawatt) that
put into practice the idea of steam turbines energy conversion. The concentrated solar power
plants have a huge potential of producing solar power that can be used in many consumption
sectors. Many common CSPs adopt the use of sterling engine based that has a collector that
directly receives solar heat and the parabolic dish assembly that are very high solar recipients.
The ability to have durable and efficient solar collectors forms the main basis of developing
these thermal solar power stations. The system of collector mainly comprises parabolic mirrors
that are circular in shape. The mirrors concentrate the sun rays directly to the receiver which is
always located at the focal point. The receiver then converts the solar rays directly into heat
which is always at high temperatures (Atkinson, 2012).

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2.2. The contract process
During the recent periods, there has been a tendency for long projects resulting in a tendency of
increased legal system complexity that the project is designed to operate under. The contract is
generally a document that legally binds both the procurement and all the relevant parties that are
directly involved in the project in order to ensure that there is complete fairness during the
acquisition process. It is the responsibility of the project managers to ensure that they have a
concise understanding of what is required of them (Burke, 2013). This will also help ensure that
the activities of material or services acquisition do not end up being isolated incidents. All these
aspects will ensure that the client, the project managers as well as all other individuals involved
in the project are able to generate a successful management project practice.
3. Financing the project
Any successful power plant project is always financed through the project finance direction. A
project financing can generally be defined as non-resource or limited financing that is established
as a separate incorporated vehicle. The financing is majorly reliant on the non-resources which
represent at least one of the different factors that are mainly considered as vital when considering
the project frame and the traditional corporate finance (Turner, 2013). When considering the
corporate finance, it is evident that the key aspect of any repayment to the creditors, as well as
the investors, is the factor of sponsoring a company that mainly backed up by the preparation of
a balance sheet that is always prepared not only for the project. It is also worth noting that in any
case, the project fails to meet its objectives, the creditors have very little to worry about since
they are always repaid. The repayment always directly relies on the general score of the client’s
balance sheet (Gray, Cook, Natera, Inglis & Dodge, 2008).
The financing of a project can also be in the large-scale sector that carries out projects that are
capital intensive and that generates a hard flow of cash. An example of this sector is on the

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internationally traded commodities. As opposed to the structuring of small projects, the
structuring of much larger projects often lower the general legal factors and the transaction costs.
This is mainly due to large economy o scales. Similarly, financing a large scale hard currency
may also result in a situation where the vendor will be reliable for exposing the risk factors. The
government where the project is being carried out may also have some interest, specifically in
those high profile projects that are usually funded directly. The government in many cases may
fail to renew their agreement, could also make some changes on their regulations or could even
go to an extent of expropriating the assets of the project as well as their cash flow. Such practices
are carried out in order to acquire political rents and also to enable them to get access to the hard
currency during periods of economic downturn (Kerzner & Kerzner, 2017).
4. Identification
4.1. The condition of the project
One of the key factors that must be taken into consideration during the earlier stages of the
project is the project is the project condition. In order to plan for future of the project, the
condition of the project must be keenly considered. This is because the general working of the
project in most cases always depends directly on the condition of the project. In any case, there
occurs a false judgment or any form of misconception on the project, there are chances of
occurrence of ultimate project failure there will be no incorporation of the several different
strategies that regard to how the given project is intended to operate (Cleland & King, 2010).
4.2. The project team
The project team is generally viewed as a major factor that will directly involve the all the
individuals who will be expected to be actively involved in the procedural duties of the project
right from the time it kicks off to the point it reaches its completion. These team of individuals
will be the ones responsible for all the activities that will ensure that the thermal power plant

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project is executed as specified in the tendering requirements and that the project will be able to
achieve the set objectives. The project team is mainly composed of the following members; the
stakeholders, the project manager, the creditors and other project members that are recruited due
to their specialization. The project manager(s) holds a very critical position since they are the
ones who take overall control of all the operations of the project. All the other project members
will carry out their duties in relation to the directions that are issued by the project manager. The
project team has the responsibility of ensuring that they work hard giving all their best in order to
ensure that they achieve success in the general objectives of the project. It is also their duty to
equally work together as a group to make facilitate easy flow of the designed work plan
(Meredith & Mantel, 2011).
4.3. Processing of the project
This activity is mainly carried out by the project manager with timely and procedural assistance
from the setup project team. In order to process a project, it is first important to create a
predefined goal that will help in influencing and therefore speeding the normal proceeding of the
thermal power plant project (Morris & Hough, 2009). In any case, the processing of the project is
not carried out in the most appropriate way, then the project manager will be solely and directly
responsible for any shortcoming that would result due to that.
5. Estimated tender
5.1. Project labor
The estimates of the tender for the project labor will in most cases involve individuals who will
be directly taking part in a number of activities in several sectors that involve the project. These
individuals are required to be of high expertise and should be professionals in this sector since
they will be directly involved in the day to day activities in the different departments (Munns &
Bjeirmi, 2016).

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5.2. Plant
This segment generally integrates the location where the project is destined to be executed. The
plant may be arrived at in relation to the implementation positioning factor. It should be taken
into account that there are a number of factors that have an influence on how and where the plant
should be located. Such factors include the availability of the required raw materials, the arising
cost which may result from the transportation of the required materials among others. The table
below shows some of these materials and how influential they are to the project (Oberlender &
Oberlender, 2013).
Description Weight value (100%)
Excavation of power block 1.6
Discharge of circulating water system 3.0
Structure of circulating water system 2.6
System intake canal of circulating water
system
2.1
Landscape 0.8
Sanitary and wastewater treatment system 1.5
Crushers plant and batcher 0.6
Yard firefighting and underground utility 2.8
Table 1factors that determine the location of a plant and their influence rate
5.3. Sub-contractor
The purchase of equipment for use in the project can only be responsible for 30% of the total
cost of the power plant that is to be constructed. Based on several financial reports, it is realized

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that the classification of the procurement of the equipment can be done as foreign or domestic.
The head office of the GENCO that is located in Seoul is in charge of handling all the issues that
are related to procurement from the countries abroad. This is because the equipment is imported
from the foreign countries and therefore it appears to be more economical when considering
efficiency and effectiveness. When considering the site arrangement and the design criteria, the
technical specifications should be taken into account. The sub-contractor main functions always
fall in the fields of general description, an outline of the power plant, the condition of the site,
environmental design limits and the quality of sea and industrial water. The specification also
has a technical side that comprises of the condition of operation and the responsibility division
for the equipment supply (Packendorff, 2014).
6. The requirement of project changes
In many cases, it is evident that internal and external changes to a project may be incorporated
and this could directly focus on the possibility of occurrence of a risk event. Project change is
therefore necessary in order to mitigate the risk factor that is incorporated during the project
execution. The project change mainly focuses on how to decrease the risk factor so that it has no
impact on how the project is carried out. It will also ensure that it does not alter the general
functionality of the company that is involved in the project (Winter, Smith, Morris & Cicmil,
2016). The project manager usually plays the role of incorporating the project changes so that it
puts focus on getting back to how organization functions normally.
7. The requirement for quality control and project assurance.
. This mainly involves offering an assurance that the project will definitely be achieved
successfully. It is worth noting that the project on thermal power plant has got a number of
feasibility aspects that regard to the factors that have to be considered when carrying out the

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project (Schwaber, 2014). A feasibility study has to be performed in order to determine the
factors that would influence the process of carrying out the project. In any case, the project is
considered not feasible, the organization that was in charge of carrying out the project would
bear the consequences.
The aspect of controlling a project is generally related to a number of different functional
aspects of the project. It is evident that how a project functions normally greatly depend on the
project functional parts. It is important to ensure that each and every part of the project should be
very functional in relation to the requirements. This will ensure that it does not have an impact
on the rest of the project functional areas. In many situations, it is clearly evident that the project
manager has the role of ensuring that they consider the overall project quality control. There are
a number of factors that determine the quality control aspect of a project. It is therefore important
to periodically check the quality of a project in order to ensure that there is a normal and proper
functionality of all the project parts. In situations that there are concerns or issues that occur in
any sector and department of the project, it will be necessary to incorporate the mitigation
strategy. This will ensure that the system does not get involved in the issue hence the normal
functioning of the project systems are not interrupted (Pm, 2011).
8. The requirements for management of documents, reporting, and governance
8.1. Management of documents
The process of managing the project document is an important activity that has to be perfectly
carried by the concerned departments and project members within the organization. A number of
software that tends to make this process simple and more efficient have emerged with the recent
ever-expanding technology (Forsberg, Cotterman & Mooz, 2010). The software is commonly
used by different organizations to enhance proper document management. The management tools

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of the project can be applied in this activity in order to improve the management of several
activities that are carried out within the organization.
8.2. Reporting
This is a practice that should be carried out periodically during the project execution. This
practice will enable all the departments within the project to carry out their activities in relation
to what is required of them and by the project. The individual who is tasked to carry out this
activity effectively is the supervisor of the project (Schwalbe, 2015). The project supervisor is
required to have the necessary and general knowledge of how the internal and external sectors of
the organization carry their activities.
8.3. Governance
Both the project managers and the project supervisor are directly in charge of management and
governance of the project. They have the duty of ensuring that the project is moving towards the
right direction and that it is operating within the set guidelines. The project manager generally
exercises direct control over all the activities as well as the governance of the whole project. In
this regard, for an individual to qualify as project manager, the individual is required to attain
high levels of education and should also possess vast knowledge on the different departments of
the whole project as well as on the governance of the project. This is because these factors
always have a great impact on how the overall project carries out in the long run (Shtub, Bard &
Globerson, 2009).
9. Requirements for attribution, disputes and mediation.
9.1. Disputes
Disputes are always very crucial factors that have the possibility of altering the normal
functioning of the several departments within the project setup. Disputes may occur in several

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different forms. It is the role of the project manager to ensure that they are able to identify the
dispute and find a way of dealing with it. The project manager should ensure that they expertly
resolve all the cases such that it does not at any point alter the normal functioning of the project
(Cooper, 2015).
9.2. Attribution
In a set up where all the sectors of the project are operating as required, there are a number of
attributes that have to be taken into consideration. The attributes may be in different types and
could at times be very small. It is worth noting that all the attributes have to be properly handled
no matter the type or size. This is because they all have the possibility of altering the overall
functioning of the project (Turner, 2008).
9.3. Mediation
This is an aspect that is mainly taken care of by the creditors and the stakeholders of the project.
This is an issue that is of importance since it can help when judging other factors that are also
related to the internal functioning of the project. This factor also plays a valuable role for the
stakeholders and their duties on how they can directly operate the project normally and
efficiently (White and Fortune, 2012).
10. Safety requirements
The safety requirements of the thermal power plant project must be carefully put considered
since it has a likelihood of affecting all members that are directly involved in the project. A
thermal power plant mainly handles a lot of dangerous chemical substances and therefore the
safety of the workers must be given the top priority. All the individuals that are directly involved
in the construction duties within the site should be given adequate training on how to carry out
their activities carefully while putting their safety concerns first. When proper safety

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requirements are installed and keenly followed, it will also have an impact on the overall
functionality of the project. (Wideman, 2011)

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11. References
Abdel-Hamid, T. K., & Madnick, S. E. (2011). Software project dynamics: an integrated
approach (Vol. 1). Englewood Cliffs, NJ: Prentice Hall.
Al-Harbi, K. M. A. S. (2008). Application of the AHP in project management. International
journal of project management, 19(1), 19-27.
Atkinson, R. (2012). Project management: cost, time and quality, two best guesses and a
phenomenon, its time to accept other success criteria. International journal of project
management, 17(6), 337-342.
Baker, B. N., Murphy, D. C., & Fisher, D. (2008). Factors affecting project success. Project
Management Handbook, Second Edition, 902-919.
Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
Cleland, D. I., & King, W. R. (2010). Systems analysis and project management. McGraw-Hill.
Cooper, D. F. (2015). Project risk management guidelines: Managing risk in large projects and
complex procurements. John Wiley & Sons, Inc..
Forsberg, K., Cotterman, H., & Mooz, H. (2010). Visualizing Project Management: A Model for
Business and Technical Success (with CD-ROM). John Wiley & Sons.
Gray, R. M., Cook, M. B., Natera, M. T., Inglis, M. M., & Dodge, M. L. (2008). Project
Management: The. In Managerial Process”, McGraw-Hill.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Meredith, J. R., & Mantel Jr, S. J. (2011). Project management: a managerial approach. John
Wiley & Sons.
Morris, P. W., & Hough, G. H. (2009). The anatomy of major projects: A study of the reality of
project management.
Munns, A. K., & Bjeirmi, B. F. (2016). The role of project management in achieving project
success. International journal of project management, 14(2), 81-87.
Oberlender, G. D., & Oberlender, G. D. (2013). Project management for engineering and
construction (Vol. 2). New York: McGraw-Hill.
Packendorff, J. (2014). Inquiring into the temporary organization: new directions for project
management research. Scandinavian journal of management, 11(4), 319-333.
Pm, I. (2011). A guide to the project management body of knowledge (PMBOK guide). Project
Management Institute.
Schwaber, K. (2014). Agile project management with Scrum. Microsoft press.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.
Shtub, A., Bard, J. F., & Globerson, S. (2009). Project management: Engineering, technology,
and implementation. Prentice-Hall, Inc..
Turner, J. R. (2013). The handbook of project-based management: improving the processes for
achieving strategic objectives. McGraw-Hill.
Turner, J. R. (2008). Handbook of project-based management. McGraw-Hill Professional
Publishing.
White, D., & Fortune, J. (2012). Current practice in project management—An empirical study.
International journal of project management, 20(1), 1-11.
Wideman, R. M. (Ed.). (2011). Project and program risk management: a guide to managing
project risks and opportunities. Project Management Institute.

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Winter, M., Smith, C., Morris, P., & Cicmil, S. (2016). Directions for future research in project
management: The main findings of a UK government-funded research network.
International journal of project management, 24(8), 638-649.