SMB3302 Project: Website Development Planning and Management Report

This report details a website development project for a small retail company aiming to expand its online presence. It explores various project delivery methods, recommending the Design-Build method for its single point of contact and comprehensive responsibility. The report evaluates financial contract types, suggesting a Lump Sum contract for fixed costs and risk allocation. It then assesses procurement methods, advocating for the Best Value method to ensure high-quality vendor selection. Finally, the report develops a risk management plan, identifying potential risks like resource constraints and delays, along with mitigation strategies. The plan uses a risk register to assess the likelihood and impact of each risk. The project aims to improve sales, customer retention, and overall business growth.

SMB3302 Project execution planning
and management
1

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Project for company.................................................................................................................3
2. Background of case project.....................................................................................................3
3. Recommendation for best project delivery method.................................................................4
4. Evaluate best financial contract type.......................................................................................5
5. Evaluate best procurement method..........................................................................................6
6. Develop risk management plan...............................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
2

INTRODUCTION
In every business there are various types of projects which are undertaken by them. The
project consists of many components such as scope, goals, resources, time frame, etc. thus, it is
necessary for project manager to ensure that project is completed in time. Basically, there are
certain crucial decision which has to be made regarding project (Badiru, Badiru and Badiru,
2018). They are selection of project delivery method, financial contract type and procurement.
Alongside, it is essential to identify risk associated with project so that proper measures are
taken. In present report it will be described about developing of online website in small
company. also, several project delivery methods will be explained along with financial contract
type. Furthermore, procurement method will be mentioned as well in it. At last a risk
management plan will be developed.
1. Project for company
A small company that is engaged in providing retail products and services to people is now
considering to develop website (Džumhur, Ljevo and Marić, 2017). However, they want to
expand in other areas and also want to retain customers. Thus, it has enabled them to focus on e
commerce. So, as the firm is engaged in providing digital solutions to and website development
for many years. Thus, this project is been undertaken by our company to develop a website
which will offer products and services to customers online. The website development project is
going to be crucial for our growth and development
2. Background of case project
A small retail company is operating in Australia and offering variety of retail food items to
people. They are having a moderate customer base and want to expand in wide area. Also, sales
and profits generated are rising every month. However, with technological advancement it has
become difficult to upgrade their IT infra as huge cost is required and they can not afford it.
Besides that, it has been analysed that there is decline in sales of company as customers find it
difficult to visit store and buy food items (Jaafar and Yusof, 2019). Due to it, they are not able
to retain customers as well. Moreover, with increase in competition many other issues are faced.
So, it has forced company to develop their own website and offer goods online. So, for that
management has taken decision to initiate a project regarding it. Therefore, as organisation lack
IT resources and also HR so the owner has decided to give project to third party. It will be useful
3

for business to focus on store until website is developed. Along with it, this project will be useful
in increasing sales and profits.
3. Recommendation for best project delivery method
A project delivery method is system used to organise, design, operate and maintain
services for structure through a legal document. The project is required to be delivered with
suitable method so that it is finished on time. The delivery method is way of initiating, executing
and completing of different project stages in effective manner. Also, selection of delivery
method depends on project type and size (Kjersem, Jünge and Emblemsvåg, 2017). So, it is
necessary to chose suitable method otherwise it can lead to failure of project. Besides that,
project might not be finished on time or more resources and cost is required. In addition, each
delivery method consists of different stages that vary from one another. Moreover, features and
complexity differs in them. Hence, it becomes crucial for project manager to evaluate them and
chose best one suitable for project. The project delivery methods are defined as:
Design bid build- it is a common method used in delivering projects. there are several stages in
it. First is owner separate contract with a contractor. Thus, after design documents are completed
then bidding process starts. However, the designer and contractor both are separate but all risk is
beard by owner. The method is less collaborative than other but also most preferred. However,
in this cost incurred is less as compared to other delivery methods. there are huge risks involved
in this as method is based on deign and bid. Hence, it becomes difficult for owner to switch to
other method.
Design build – it is a delivery method that provides owners with a single point of contact for both
the design and construction phases of a project. Here, one entity holds responsibility and
contractual risk for every aspect of a build that is from estimation, assessments to architecture,
subcontracting and completion. This entity, the Design Builder, manages all contracts with
companies, such as subcontractors, vendors and suppliers. There are five stages in this that is
selection of design builder, assessment required, design, construction and completion. There is
effective integration between all members (Liang and O’brien, 2016).
CM at risk method- in construction management method time is reduced which allows in
completion of project. Here, a manager is hired who possess high technical and financial skills.
Basically, an individual or organisation is able to play the role of CM. the firm acts as an owner's
consultant during initial development phase of the project. During this process, the owner of the
4

project will rely on the CMAR, so they are empowered to contract multiple subcontractors to
solicit and receive bids. They are also acknowledged as the sole point of responsibility for the
project's delivery.
In current project, design build method will be taken. This is because the third party will
hold entire responsibility of developing website and completing it on time. Moreover, firm will
be engaged with all activities related to vendors, estimating cost, etc. with that it will be easy to
design interface of website with business.
4. Evaluate best financial contract type
A project undertaken require proper financial resources so that it can be completed within
specified time. Moreover, it is necessary to find out appropriate financial contract type. It is
because helps in selecting the type of finance on basis of project. However, the selection depends
on type of project as each contract type is having some pros and cons (Marion, Richardson and
Earnhardt, 2016). Alongside, the suitable contract type is useful in identifying resources and
estimating budget of project. Similarly, for this project there are several financial contract types.
Thus, it is necessary to select it by evaluating it. The types are as follows : (3 types of contracts,
2017)
Lump sum – it is a contract type in which the contractors bids a single and fixed price for entire
project. This means that cost of all project activities is estimated and then final amount is
calculated. So, that amount is bid for overall project. Usually, in this contractor has to all risks
associated with project either rise in cost or variation in profit. However, this type is mostly used
in large projects related to construction. But it is considered as effective way of bidding if all
activities are defined clearly and properly.
Guaranteed maximum price contract – this is a type of agreement between contractor and firm.
Here, contactor agrees that project will not exceed a particular amount of cost incurred.
However, if there incur more cost on project as estimated then contractor has to bear it. So in
order not to bear mostly high price is bided (O’Connor, O’Brien and Choi, 2016). It enables in
recovering cost easily. The pros of using this type is cost is controlled in effective way and
project is finished on time. Besides that, if scope of project expanded then price adjustment is
done.
Cost fix price contract – in this type the price of project is set or fixed. This means that payment
is not done on basis of resources utilised in project. Here, both buyer and seller accept a specific
5

price. But risk has to be beard by seller. In this the date of completion and price is fixed.
Generally, it is used by government in tenders. The seller is having some legal duties as well
which has to be followed. Further, it is categorised into three that are firm fixed, fixed price
incentive and economic price.
For website development project, lump sum type will be suitable. This is because it will
help in fixing cost of project and then allowing to bid for it. Thus, it is agreed with contractors
that they have to develop website in that cost only. Furthermore, any risk occurred will be beard
by contractor. Besides, company will not have to bear any additional cost. So, it will be sole
responsibility of contractor to complete project (Shivakumar, 2018).
5. Evaluate best procurement method
A project requires an effective procurement method so that raw materials are utilised in
efficient way. it refers to developing relationship with client, vendors, suppliers, etc. in order to
fulfil the needs of project. This is a long process that includes planning, selecting, monitoring,
etc. of all activities. The project manager has to identify vendors so that they are able to acquire
resources and fulfil needs. Likewise, procurement methods also depend on type of financial
contract. They are defined as :
Competitive – it is a method in which bidding is done openly. Here, all vendors are allowed to
participate in bidding process. This method is commonly called bidding. However, on basis of
price of tender vendor or supplier is selected. It is easy method that allows in selecting supplier.
Negotiated – this procurement method is where a vendor is selected without any formal process.
So, no ads are given and no price is compared. However, all rules and regulations related to
government is followed related to negotiation method. Also, other factors are also considered in
it (Tonchia, 2018).
Best value – BVP is a method in which all others factors along with price is considered as well.
In this it includes material quality, experience, delivery date, and others are evaluated and then
supplier is selected. Alongside, here value of products and services is identified on basis of
comparing cost and benefits of it. This gives overview about all things related to vendor.
In context of present contract, the best value method will be chosen. It is because all other
factors will be analysed as well of supplier. Through that, high quality and experienced vendor
will be selected and then relation can be built. Other than this, if software and app offered by
6

vendor are of low quality then it will highly impact on website quality. Thus, the BVP include all
factors required to select supplier (Zhang, Xie and Li, 2019).
6. Develop risk management plan
In every project there are various types of risks that can occur. These risk highly impact on
overall project quality and its effectiveness. Alongside, it also affect on its completion time as
well. Therefore, it is essential to identify those risk so that effective and proper measures are
taken. The measures help in minimising the impact of risk on project. However, it gives insight
to project manager that what measure or action has to be taken. In risk management plan there
are different elements includes in it (Džumhur, Ljevo and Marić, 2017). Each element is
related to risk. For current project the risk management plan is as follows :
Risk register
It is a plan which is developed to find out degree as well as impact of different types of
risks on project.
Risk description Likelihood Impact Owner Mitigation action
Lack of resources 3 4 Project
manager
To ensure that all
resources are properly
allocated and
monitoring of its
utilisation.
Lack of labour 2 3 Contractor To hire back up labour
so that in critical case
they can be used.
Delay in tasks 1 3 Project
manager
To prepare schedule and
discuss it with team.
This will ensure that all
activities are completed
on time.
Technical error 2 3 Developer To have a back up plan
that how particular error
will be solved.
7

Risk quadrant analysis
It identifies commodities as per value and risk then defined suitable strategy which can be
applied.
Quadrant 1
Technical risk
Quadrant 2
Financial risk
Quadrant 3
Time
management
Quadrant 4
Shortage of labour
Risk mitigation plan
A risk mitigation plan is process of developing options and measures that can be taken in
order to mitigate the impact of risks. It enables in reducing the threat of risk on project. Thus, the
plan is directly implemented.
Category Identified risk Mitigation plan
Technical Here, the risk
identified is
technical error
which can result in
delay of project or
its failure
To ensure that all
software and
application used in it
are properly tested.
Moreover, a back up
plan will be prepared
in case testing done
fails and technical
error occurs (Jaafar
8

and Yusof, 2019).
Financial The risk that can
occur is lack of
resources in order
to perform project
tasks.
A back up budget will
be estimated and kept
aside so that it can be
used.
HR Here, shortage of
labour can occur
which will impact
on project
activities.
The sources will be
identified from where
labour can be quickly
recruited.
Time
management
There may be delay
in completion of
project if complex
tasks arrives.
In this immediate
action will be taken
and proper monitoring
will be done.
CONCLUSION
From report it is concluded that project management is planning, organising and
completion of particular project in time. There are several project delivery methods such as deign
bid build, deign build, etc. in current project design build will is suitable. Furthermore, financial
contract type is also of various types that are lump sum, cost, thus, lump sum will be used in this
project. In addition, procurement methods are different as well like competitive, best value.
Thus, BVP will be used in present project. It is summarised that there are certain risks that can
occur such as lack of resource, technical error, delay in project tasks and others. Therefore, a risk
mitigation plan is developed which will include actions that needs to be taken.
9

REFERENCES
Books and journals
Badiru, A.B., Badiru, S.A. and Badiru, I.A., 2018. Mechanics of Project Management: Nuts and
Bolts of Project Execution. CRC Press.
Džumhur, S., Ljevo, Ž. and Marić, J., 2017, May. BIM Project Execution Planning Suited for
Road Infrastructure Pilot Project in Bosnia and Herzegovina. In International
Symposium on Innovative and Interdisciplinary Applications of Advanced
Technologies (pp. 560-570). Springer, Cham.
Jaafar, K. and Yusof, S., 2019. Evaluating Stakeholder's Level of Involvement in Project
Execution Phase. The Journal of Modern Project Management, 7(1).
Kjersem, K., Jünge, G.H. and Emblemsvåg, J., 2017, September. Project Execution Strategy and
Planning Challenges. In IFIP International Conference on Advances in Production
Management Systems (pp. 243-250). Springer, Cham.
Liang, X. and O’brien, W.J., 2016. Analysis of the criticality and frequency of alignment
elements in project execution plans. In Construction Research Congress 2016 (pp. 140-
149).
Marion, J.W., Richardson, T. and Earnhardt, M., 2016. Project execution: A research agenda to
explore the phenomenon. The Journal of Modern Project Management, 4(1).
O’Connor, J.T., O’Brien, W.J. and Choi, J.O., 2016. Industrial project execution planning:
Modularization versus stick-built. Practice periodical on structural design and
construction, 21(1), p.04015014.
Shivakumar, S.K., 2018. Digital Project Execution. In Complete Guide to Digital Project
Management (pp. 155-179). Apress, Berkeley, CA.
Tonchia, S., 2018. Project Execution. In Industrial Project Management (pp. 241-267). Springer,
Berlin, Heidelberg.
Zhang, J., Xie, H. and Li, H., 2019. Improvement of students problem-solving skills through
project execution planning in civil engineering and construction management
education. Engineering, Construction and Architectural Management.
10

Online
3 types of contracts, 2017. [online] Available through : < https://www.dudesolutions.com/blog/3-
types-of-contracts-in-facilities-and-project-management >
11