Project Management Of Sydney Airport Renovation

Project Context

Discuss about the Quality Management in Construction Projects.

Project management is an application of knowledge, skill, tools and techniques that used for integration of organizational needs in professional and structured manner. The process of project management falls into fives phases that involve initiation, planning, execution, monitoring and controlling as well as closing. The current project is about the renovation of Sydney airport for improving the facilities and managing the products and services more organized manner. The report will define project context and explain the contract processes that used for managing the project. Moreover, the report will explain the financing of the project and analyze the conditions of the project. It will also provide information for quality assurance and document management for the project. Further, the report will discuss the dispute management and safety requirements of the airport renovation.

The current project is about the renovation of Sydney airport for improvement in the facilities and managing the activities more professional manners. The airport authority is looking for managing the project in an ethical manner and considering the process according to AS 4120-1994. This document involves the information about ethics and principles that require being implemented in the current project tender.  The major ethics that will be going to be the focus for this project involve that tendering at all level of this construction project will be conducted honestly and in a manner that is fair to involve all the practices. Both the parties will comply with legislative obligations including the trade practices and consumer affairs (Kerzner & Kerzner, 2017). The contract will be made for the project will involve the cost of tendering and correct numbers of tenders from the initiation of work for the completion. Moreover, the parties that involved in the tender will meet their commitment and maintain the optimum utilization of resources. The tender document will specify the principal requirements and provide the estimated time for completing the project according to needs.

The definition of the current project includes renovation of the airport for encouraging the facilities and ground areas for managing the services for travelers. The major aim of this project is to improve the standards and quality of the services for visitors to craft improvement in the design of the building. The airport authority will provide funds and resources for managing project operation and explain the requirements in written format to clarify the objectives. The document of the tender will confirm the objectives of the project which involve contracting terms and numbers of parties that work for the project in different areas of renovation (Walker, 2015). The contracting term and document will also include information for safety measures, industrial relations and working requirements. The working requirements of airport authority are the development of parking areas, improvement in the waiting lounges, food zone and security functions.  In spite of that, the general conditions will be identified before starting the work and the requirements are based on subcontracting manners. The selection of tender will be based on pre-qualification application criteria and by focusing on the Code of practices. This approach will provide equal opportunities for Tenderer who can complete the work according to requirements.

Contract Management

The tendering process of current project will focus on funding and communicating the financial needs of project team to complete the tasks.  The selection of project team considered the principles that have been followed by the team to meet the standard requirements of airport renovation. Apart from that, the call off tender will be based on documents that offered by tendering organization and prices of applicable methods that incorporate for managing the project activities (Richardson, 2016). The airport management will apply the Code of Practices to call off the tender and select the most advantageous tender for renovation. The method of tender will be selected in which the authority allow Tenderer who are capable of managing the airport operations. Moreover, the tender inquires would be communicate to project manager who has knowledge about issues and requirements. The airport management members will conduct meeting with manager to discuss the document which forwarded to all. The amendments to tender document will be made according to issues that could suggest by the project manager in the statuary period. These minor changes may be dealt with in pre-contract negotiation (Turner, 2017). Receipt of tender is an important aspect of tender process in which the all arrangement will be considered with confidentiality and focusing on the security measures. The disclosure of prices and strategy to complete the project is strictly prohibited. The acceptance of project proposal and circumstances will consider for offering the project with specific time and data. The closing of tender is on Monday 2:00 pm.

Evaluation of tender will be made on the basis of technical, managerial, physical and financial resources that airport authority has for the renovation. The large project is essential to evaluate before starting to increase the feasibility and manage the risks that could influence the cost and time (Kivilä & et al., 2017). The management will evaluate compliance with pre-qualification that applicable for Code of Practices and value for money.

The contract process for managing project about the renovation of Sydney airport will be based on the standards regulations of Australia. The contract process for current project will involve call of tender, evaluation of tender documents and submission of applied terms for completing the requirements on the basis of AS4120-1994. The airport authority and selected Tenderer will develop written contract for completing the project within estimated time and cost according to tendered process at the initial stage of tendering. This kind of contract will be beneficial for both parties to maintain the fair approach and quality in management of operation and functions (Eskerod & et al., 2015). The agreement of project specification and requirement in written format is necessary for large construction operation to re-access the requirements and analyze the performance against them. It gives a proper understanding of tasks and resources allocation process for technical and financial terms that cannot be denied by both parties. The consideration of written contract is beneficial for spell out the requirements and terms to make the deal less complex and increase the knowledge of teams which are taking active participation. Moreover, the process of preparing and drafting written contract also lead to more organized and planned agreement. The written agreement is helpful for enhancing the enforcement opportunities in a legal manner and increases the flexibility to complete the tasks accordingly.

Project Financing

For large construction project like the renovation of the airport, the written contract will help to prevent the misunderstandings or disputes in the mid of process. Additionally, both parties apply this kind of contracting process for managing payment terms and maintaining the peace of mind by clarifying the terms in a written manner (Alias & et al., 2014). This is one of the major proofs as any party cannot end the contract without completing the agreed work.  In spite of that, the written contract will involve the specification of labor rate, planning of resources, material that to be used and sub-contract with local firms for support in the completion of the project. The contracting terms will also involve suspension of work if the quality and process are not according to contract as well default in the payment. Both the parties have rights of terminating the contract if they have issues in fulfillment of requirements, but for that, they have to offer the claims to other parties. The services will be completed within estimated time and delay and improvement in cost will not be entertained by the airport authority.

In order to manage the project of renovating Sydney airport, the authority will need the funds to purchase the raw material, offering wages to labor and management of other facilities. For managing their financing needs the airport authority will borrow money from the banking institutions and ask the investors to offer funds to improve the design and facilities of the airport (Banihashemi & et al., 2017). For the renovation of the airport, the management will require $6 billion AUS. The distribution and analysis of fund requirements will be done by project management.     

The current project condition of the airport of Sydney is good as management is managing operations and functions related to customers more professional and organized manner. Now, the management is looking to improve parking, waiting and food areas for offering services to large numbers of visitors. To manage the project and arrangement of resources, the management will need funds, human and technical resources. The current financial condition of the organization is good as they can start the project. Additionally, it is a public property so the national government will also offer funds to manage the project. Apart from that, the project management team will be design and developed through approval of tender with construction organization (Costantino & et al., 2015). The project manager will introduce project team to implement the changes in design and existing layout of Sydney airport.  

Quality Assurance and Document Management

The process of change management is a structured approach to moving a project from the current state to desired future state. The requirements for change management in airport building are based on current condition and future objectives of authority. The organization and project team determine objectives and consider the scope of changes in building before starting the project. The changes after implementation of project plan could influence the time and cost of the project and affect the other operations (Brook, 2016). The changes in the project are made to extend the project lifecycle and gain the benefits. The proper management of changes need good communication and coordination among project team members that can help to implement the plan more professional manner that might not affect the existing operations.

The large construction project of renovating the Sydney airport will have a significant impact on quality assurance and quality control according to international standards. The project management and airport authority team will ensure the high quality in every operation to improve the facilities and service functions for visitors. For the current project of renovation, the quality control will focus on design standard as per the ISO 9001 certificate to maintain the quality. The renovation project of the airport has international facilities for visitors which will require concern over quality control checkup and specification of qualification in drawing of property and managing the layout for further improvement (Liu & et al., 2014). In the quality control process, the selection of supplier plays a critical role in maintaining high quality for developing the waiting areas, parking and food zone at the airport. The quality of raw material will support to ensure the quality of the project and meet the required standards. The management is responsible for implementing the quality system to control the quality as well testing of the supplied material. The corrective actions will be made according to issues in the quality approach and lacking in the required material. The project manager will set the criteria for analyzing the quality.

The process of quality assurance involves evaluation of construction specification at airport areas and current conditions. The quality assurance approach may include specific tests for wood, steel and wires that have been used for managing the construction. It is the responsibility of project manager to analyze the quality in every aspect to meet the international standards. For example, for renovating the terminal area of the airport for parking the manager will assure the quality of raw material like cement, steel and skills level of labor to maintain the effectiveness (Boyle, 2017). To maintain the quality and assurance about consideration of standards, the manager will try to develop strong collaboration between project partners and lead them with inspiration. This kind of approach will be beneficial for this particular project to achieve the desired goals and objectives.

Dispute Management

The success of the project is measured through sheer weight and volume of document management. The documentation is essential for managing the design, project outcome, project team and financial activities. For the current project of renovating the Sydney airport, the documentation process will be maintained by both project team and airport authority to evaluate the outcome of the contracting objectives. The use of information system for managing record of each activity will be less time and cost consuming for this large project (Lock, 2017). The storage of data in a proper database will also help to share the information with the team members and management staff for further decision making. The project team will use standard documentation format for creating, distribution and store various type of project documents.

The reporting about the project is a quality management function that is essential for maintaining communication among teams for having control over activities. The development and communication of status reports for each operation is part of project documentation that helps the project manager and owner to monitor and assess the progress. The reporting function aids to analyze continuous efforts and information about daily activities regarding the project and sharing with the stakeholders (Martinelli & Milosevic, 2016). The development of regular project reports will help to increase the confidence level in project manager and success of a large project of renovating the airport. The project report and reporting will be based on the project plan and developed in an easier manner according to understating of the audience. Moreover, the project report will focus on results rather than an explanation of the operations.  

Project governance is becoming a necessary element of project management that support in identification of root causes for the unsuccessful project. The project governance needs to be tailored to organizational specific needs. The major role and responsibilities of project governance for airport renovation project involves the consideration of accountability and engagement of stakeholders. The governance team will set definition for accountability and responsibility which will have the direct impact on the effectiveness of meetings and change in control process, risk assessment and communication plan (Rumane, 2016). Moreover, the governance will conduct meetings with stakeholders like suppliers, manager, owner and government bodies to understand their interest and develop the communication. This kind of approach will help to increase the sustainability of the project.

In a large project, disputes and conflict can be arising at any time and affect the process. Both the parties in a contract are having some rights to resolve them accordingly. The major disputes in a construction project are like lack of performance, meeting the target, quality and breach of contracting terms (Komurlu, & Arditi, 2017). For managing the disputes and conflict, both the parties could use different strategies like negotiation and settlement. Negotiation is one of the better approaches for managing disputes and maintains the flow of project according to desired standards. The consideration of this approach will help to achieve the win-win outcome and gain the control over activities by creating the common ground (Sallis, 2014). This process will focus on interest, intention and position of parties that created the problem. By understanding their approach the solution will be drawn that could help to manage the coordination and success of the project.

Safety Requirements

Arbitration is a private, contractual form of dispute management that provides the determination of disputes by the third party arbitration which is selected by parties. The arbitration is useful for managing contractual rules and regulations that have a direct impact on the statutory framework that applied by the local courts. According to laws of AS/NZS 4804-2001, there are limited rights of appeal and legal costs are usually awarded to the successful party. The arbitration clauses are traditionally found in all standards form contract that is based on AS 4001-1994 regulation of tendering (Heagney, 2016). The consideration of these is important for dispute resolution default and leaving the parties to specifically agree to arbitration. This process commences with a notice to concur which provides for an agreement between both the parties for arbitration.

Meditation is a process that provides control over disputes in project management operations and offering the control to the third party. The mediator understands and analyzes issues and conditions of both parties that involve in contract based on AS 4001-1994 and help them to reach the solution (Marsh, 2017). For example, the mediator between airport authority and project team will simply facilitate an open negotiation over the issues and try to maintain a private discussion with them to reach on a conclusion to meet the objectives of both. Moreover, the mediator will keep the record of a settlement between both parties for future problem management.

In construction project management, health and safety are one of the important elements that need to be considering for encouraging the effectiveness of the project and increase the morale of workers. Airport renovation project involves the risk of a slip, trip and collapse of machines and roofs.  In order to manage and overcome the impact of risk on the health of the staff and workers the manager needs to consider the health and safety regulations. According to health and safety regulation of Australia, the project management team or owner of the project is responsible for any hazardous incident at the workplace (Shen & et al., 2015). The project teams are considering Occupational Safety and Health act to maintain the safety measures for construction work. In order to overcome the possibilities of health-related issues at work site, the project manager offer training, safety guidelines and support to the team members. The Australian Work Health and Safety Strategy 2012-2022 has identified the construction industry priority and develop the guidelines for managing the work.

Activities

Conclusion

From the above study, it can be carried out that tender process is having significant impact on the planning and management of project. The report has analyzed and discussed various tender terms and development of contract for starting project. The current project is about renovation of airport and report has developed plan for managing tender, financing, and analysis of changes in requirements. Moreover, report has provided information for quality assurance and control and management of safety.

References

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Banihashemi, S., Hosseini, M. R., Golizadeh, H., & Sankaran, S. (2017). Critical success factors (CSFs) for integration of sustainability into construction project management practices in developing countries. International Journal of Project Management, 35(6), 1103-1119.

Boyle, G. (2017). Design project management. Routledge.

Brook, M. (2016). Estimating and tendering for construction work. Taylor & Francis.

Costantino, F., Di Gravio, G., & Nonino, F. (2015). Project selection in project portfolio management: An artificial neural network model based on critical success factors. International Journal of Project Management, 33(8), 1744-1754.

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Komurlu, R., & Arditi, D. (2017). The Role of General Conditions relative to Claims and Disputes in Building Construction Contracts. NEW ARCH-INTERNATIONAL JOURNAL OF CONTEMPORARY ARCHITECTURE, 4(2), 27-36.

Liu, J., Love, P. E., Smith, J., Regan, M., & Davis, P. R. (2014). Life cycle critical success factors for public-private partnership infrastructure projects. Journal of Management in Engineering, 31(5), 04014073.

Lock, D. (2017). The essentials of project management. Routledge.

Marsh, P. (2017). Managing variations, claims and disputes. In Contracting for Project Management (pp. 125-138). Routledge.

Martinelli, R. J., & Milosevic, D. Z. (2016). Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.

Richardson, J. (2016). Improving the transition of a successful tender from estimating to project management phases.

Rumane, A. R. (2016). Quality management in construction projects. CRC Press.

Sallis, E. (2014). Total quality management in education. Routledge.

Shen, Y., Tuuli, M. M., Xia, B., Koh, T. Y., & Rowlinson, S. (2015). Toward a model for forming psychological safety climate in construction project management. International journal of project management, 33(1), 223-235.

Turner, J. R. (2017). Contracting for project management. Routledge.

Walker, A. (2015). Project management in construction. John Wiley & Sons.

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