Communication Plan And Project Risk Management

Communication Methods and Processes for the Project

The following table provides an insight into the communication methods, techniques and processes that would be utilized   in the project:

 Project Risk 

 The following risks are associated with the project under consideration:

Answer a

The communication procedure  for  the effective processing of all progress payments  on  a monthly basis has been outline in the section below:

 Step 1: The progress  claims  to be made for the project has to be  submitted to the superintendent :   the written  reports  much  include  the details of the WUC done and other due payments (Waddell  2015).

Step 2:  Within 14   days   of  receiving  the  progress report, the superintendent  would  issue the  following  to the principle and contractor:  a  progress certificate, a  certificate containing the evidences of  the assessments  made by the superintendent   himself regarding  the  retention of money and due amounts.

Step 3:   The   Principal, within  7 days of  receiving  the  certificates, would essentially pay the  amount mentioned  in  the certificate, after deducting the  retention amount and/  or other  set offs mentioned  in the  certificate.

 The Building and Construction Industry Security of Payment Act 2002, which  is also known as the SOP Act  has  been  put into force   with the sole aim of ensuring  that all project personnel associated  with the construction  industry gets paid in an appropriate manner (Wong, Wang  and Do 2014). Thus it   can  be said  that  the same allows the contractors  to receive their payment, as mentioned in the contracts, without  the involvement of   any legal board or advisory.

Answer b

 Clause 8.1 of the AS 4000 indicates  that any discrepancies  (noticed  by  either of the parties)  in the  documents  prepared  for the construction work, would  have  to  be reported  to the Superintendent  in  writing. The clause also states that  if the contractor  has  to  incur more  constructional cost  due to the  discrepancies  in the original  plans  and documents,  the  same would first be  assessed by the Superintend    and then added  to the   contract  sum (Whyte  and Donaldson  2015).

  Additional claims for the errors and ambiguities in the documents were made in accordance to this particular clause.

Answer c

Clause 8.1 of the AS 4000 indicates that the  Contractor  is  not  allowed to include  any variation in the WUC  except the same being  requested  formally  (in writing)   by the client (Finnie  2013). However, the  Superintendent  has the right to direct certain  variations to the contractor before the date  of practical  completion o the project,  provided   the variations belong to the following types:

1. changes like decrease, increase and/ or variation in any  part.
2. changes in the quality  of the work
3. changes in the  dimension of work and
4. carrying out additional  work

Project Risks Associated with the Construction Project

  Since  the  client  has  requested  the contractor   redesign  the  seats,  the  variation  essentially  falls under  those mentioned  in  this particular clause. Therefore, claims have been made in accordance to the same.

Answer d

 The identification of the object of antiquity  and the removal  of   the same was not  included  in the WUC  originally  provided to the contractor: thus, this  particular   activity  has been considered  as  a  variation to the WUC and additional charges  has been made  according  to clause 8.1 (Gutierrez et al. 2013).

 The Superintendent had dealt with the charges for additional time and work in accordance to clause 25.2.

Answer e

 The use of stainless steel bolts instead of galvanized iron bolts, although recommended by the contractor himself, is essentially variation or change in the quality of   work to be conducted.  Thus, as indicated in clause Clause 8.1 of the AS 4000, the Superintendent would have to provide written instructions to   contractor regarding the same, after  which  the later might  proceed with the  work (Ward . and Jefferies  2014).

 Question 3 b

 Question 4

To……

Dear Mr. John Doe

 The progress  made in the project  up till  the  end of the  sixth  month  has  been outlined   in the section below.

In the  very early  phase   of the project,  several   errors and discrepancies   have  been identified in the project  plan,  which   had eventually  led to the re-development  of designs even before  the actual construction work could start. While an estimated additional amount of  $10,000 would  be charged  for the same,  efforts are  being directed  towards completing the project within the  predetermined time.

The  progress of the project has been  set back by  a many as 14 days  as an object of antiquity has been  uncovered  during the excavation period .  The removal of this object  has  incurred an additional cost of $100,000 . Besides this,  during the third month of   the project,  we were requested  t o change the materials to   be used  for  developing  the seating  facilities at  the pavilion. As we   had already ordered the same from  our vendor,  an additional cost of $100,000   has been incurred.  

Owing to the set back during  the  excavation period only 40 percent  of  the  original work has  been completed in the  last 6 months. The following table has been included  in the report so as to highlight  the expenditure profile   of  the project.

 Table:  Expenditure  profile of  the project, all values in thousand AUSD

Finnie, D., 2013. Comparison of time adjustment clauses between DZ3910, AS4000 and STCC. Construction Economics and Building, 13(1), pp.66-84.

Gutierrez, A.L.C., Panuwatwanich, K. and Walker, A., 2013. Learning from the past: analysis of factors contributing to construction project disputes in Australia. Law and Dispute Resolution.

Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Lock, M.D., 2014. The essentials of project management. Ashgate Publishing, Ltd..

Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A.M.E. and Villanueva, P., 2014. Project risk management methodology for small firms. International Journal of Project Management, 32(2), pp.327-340.

Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. CRC Press.

Schwalbe, K., 2015. Information technology project management. Cengage Learning.

Waddell, M., 2015. A new era for Australian Standards General Conditions of Contract. CONSTRUCTION LAW INTERNATIONAL, 10(2).

Ward, P. and Jefferies, M., 2014. ARE AUSTRALIAN STANDARD FORMS OF CONSTRUCTION CONTRACT CAPABLE OF DEALING WITH THE ISSUE OF EXTENSIONS OF TIME EFFICIENTLY AND EFFECTIVELY?. RCOM A, p.537.

Whyte, A. and Donaldson, J., 2015. Digital model data distribution in civil engineering contracts. Built Environment Project and Asset Management, 5(3), pp.248-260.

Wong, P.S., Wang, Z.H. and Do, D., 2014. Use of the security of payment act in resolving disputes in Victoria, Australia. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 7(1), p.A4514001.

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