SBM3302- INDIVIDUAL ASSIGNMENT
Table of Contents
2.0 Background of the Project
3.0 Critical Evaluation
3.1 Choice of Project Delivery Method
3.2 Choice of Financial Contract
3.3 Choice of Procurement Method
This report proposes to analyse the 16.8 billion AUD construction projects that was awarded to West Link and contractors for the purpose of constructing a 33 kilometres motor highway between Western and South Western Sydney between year 2015 and 2023. In doing so, the report proposes to apply an Evaluation matrix to critically evaluate various project delivery methods, financial contracts and procurement methods so as to a
ive at the optimal solution that best suits such a high profile highway project.
The proposed project delivery methods to be considered are Design-bid-build (DBB), Construction Manager at risk ([email protected]
) and Design build (DB).
Financial contract types upon consideration for evaluation would be Lump sum (LS), Guaranteed maximum price (GMP) and Cost plus fixed fee (CPFF).
Procurement practices to be analyzed are Competitive, Negotiated and Best value method.
2.0 Background of the project
The very nature of transit projects is such that they are huge projects with a project cost exceeding 100 million dollars. With the presence of at least two large contracts, a minimum of two different entities normally deliver such contracts. Further such highway transit projects demand involvement of professionals from varied fields like architecture, interior design, landscape architecture in addition to engineering.
They differ from normal transportation projects as they possess the unique feature of integrating vertical construction structures like parking and transit stations and horizontal construction features like
idges. Further transit agencies involved in such projects need to coordinate with other construction service providers and possess a flexible approach in order to ensure a smooth functioning of the project. (TCRP Report 131, 2009).
In the given M4 widening project also, as the project demanded a huge work capacity and investment, three prominent contractors who were interested in the same namely JPM Company, TOP Construction and KLG Solution were
ought together in the name of West Link which in turn had hired three design teams to work in tandem with its in-house contractors and owner-retained consultants. Two consulting companies that provided technical and management expertise and 180 subcontractors were also involved in this massive project.
Apart from meeting the completion deadline of 2023 and controlling costs the primary challenge confronted by the project would be diversion and control of traffic and ensuring the safety of workers involved simultaneously.
Hence the weighted-matrix delivery decision approach has been applied with a view to provide a structured framework that would prioritize the project goals, align the goals with the appropriate delivery methods chosen and document the results so a
3.0 Critical Evaluation
3.1 Choice of Project delivery method
The process of critically evaluating the various project delivery methods and a
iving at the optimal one using an evaluation matrix works like this.
The process begins with a
iving at the criteria for evaluation. Considering the challenges pertaining to timely completion of the project, the responsibility to handle ever-increasing traffic across the project co
idor, creating an integrated team across the project that could work towards the goal, the criteria factors are project completion (schedule), cost containment, staffing requirement and stakeholder participation.
Weights are attached to the above criteria based upon a simple ranking method from highest to lowest in terms of their influence upon project goals. Going by that while cost containment has been assigned the highest weight, schedule comes next, followed by staffing and stakeholder participation that have been assigned equal weights
This step involves the process of
iefing the project delivery methods to be compared.
Alternatively known as design-tender method, this is a traditional method that involves three important phases in the process of project delivery, namely, design, bidding or tender and finally the construction phase. The design phase involves the process of involving an architect who provides the construction drawings and the design cost normally works around 10% of the total project cost. In the bidding phase, open bids are issued and upon receiving them, the architect evaluates the bids and advises the owner on the qualifying contractor, with whom further discussions happen. Then the construction phase begins, after all legal requirements are met with.
In this project delivery method, two separate contracts each for design and building are present, the prime focus being cost reduction. (AIA Minnesota, 2006)
Design-build As suggested by the name, both the design and the process of construction are undertaken by the owner himself and best suit situations where schedules are tight and return on investment have to be capitalised sooner. This method is particularly chosen when the owner has ample time to start with the construction even before the design is complete. Design build evolved due to this idea as more cost and time are saved which does not happen when traditional methods like design-bid-build are used. Further the construction...