Project Delivery Method For Widening The Sydney Motorway Network

Overview of Project Delivery Methods

Question:

Discuss about the Project Execution Planning and Management.

The project delivery method is defined as an efficient process or procedure utilized in any construction project for developing the design, scope, consultants and design sequence for completing the project. Therefore, each project differs in characteristic with the other based on the delivery method used for completion of the project. Currently, in the public funded project, the three major project delivery methods are followed including CM @ risk, Design build and design bid build. The selection of the appropriate project delivery method needs to be considered based on the alignment of the project requirement with the characteristics of the method.

The various characteristics of the method of the three project delivery method are illustrated in the section below:

Design-Bid Build: The process of Design Bid Build is considered as one of the traditional process used for design and construction. In this process the design of the project is completed before the bidding process, and the construction part of the project is provided for construction project. In this type of delivery method, the errors regarding the design of the construction project becomes the responsibility of the project owner.

Design Build: In the project delivery method of Design build, both the design and construction module of the project are being procured. This type of project is being characterized by the contract from one single entity. Usually the process of RFP (Request for Proposals) and RFQ (Request for Qualifications) are being employed in the project.

CM @ Risk: This type of project delivery method is characterized with different construction and design procurement for completing the construction. The contract between the construction manager and the construction agency is at risks determining the final time and cost required for the construction project.

Based on the characteristics of the three delivery methods, CM @ Risk, Design Build and Design-Bid Build methods has been provided the score in the evaluation matrix.

In the project delivery method evaluation matrix, it has been identified that application of design build method would be most appropriate for selecting the appropriate project delivery method for the project for widening the existing highway for the Sydney motorway network. From the case study for the project of widening of the Sydney Motorway Network it has been identified that the working capacity and complexity in widening of the road are the significant factor that needs to be considered while selecting the project delivery method. The M5 motorway has been predicted to have an increase in the traffic of 24 % in the weekdays. Therefore, the construction for widening of the motorway needs to be carried out with utmost care and safety without risking the daily life of thousands of individuals. Therefore, in the evaluation matrix, design complexity has been provided with maximum weightier. In addition to that, the inability or failure to manage the organizational structure associated with the widening of the motorway carries the potential for slipping out vital activities in the project. Therefore, risk assessment and management in the project is the second most significant factor having the maximum weight. Further, the project has been scheduled to be completed within 2023. Failure to complete the project within set deadline will in turn increase the complexity and budget for construction. Therefore, schedule delivery has been allocated as the second highest weight for the project. Cost allocated and the owner experience has been provided with the thirst highest weight as AUD 16.8 billion has been contracted for the project.

Characteristics of Three Project Delivery Methods

Based on the evaluation matrix, Design-Build has been identified as the appropriate project delivery method that can be employed in the widening of the motorway project.

The project for the widening of the motor way required the creating four lanes from the exiting two lanes in order o improve the transportation facilities. The financial contact for the construction projects provides a legal agreement binding the contractor and the owner of the project. The contract further provides the detailed information about the type and amount of compensation provided to the contractors and designers for completing the project within the allocated amount of time. In the construction project, there are three major types of contract followed for binding the contractor on the basis of financial amount.

Lump Sum Contract: The contract for the lump sum is characterized by the fixed financial amount provided for the completion of the project. Completing the project before the schedule would help in increasing the benefits and profits from the lump sum provided in the beginning. The lump sum is applicable when the scope and objective of the project are mentioned by the project owner. Application of lump sum contract helps in eliminating any risks associated with the contractor.

Cost Plus Contract: In the cost plus contract the total budget provided by the owner is based on the actual price required by the activities that have been followed during the construction project. The cost plus contract provides the contractor with the ability to negotiate the financial amount required for the construction project. During the determination of the prince, all the direct and indirect cost are taken into consideration.

Guaranteed Maximum Price Contract: The financial contract of Guaranteed Maximum Price Contract are distributed among the contractors based o the total price provided based on the activities and construction module pre-define din the design of the project. in this type of contract, the financial budget can only be increased after formal approval from the owner.

The project for the development of the widening of the motor way network needs to be carried out on the lump sum of AUD 16.8 billion provided to the West LINK for completing the entire project. Therefore, the fixed cost criteria have been allocated with maximum weight along with the risks and quality factor for constructing and completing e entre project. Furthermore, the project needs to be completed within the allocated deadline with 2023. Therefore, schedule has been provided with second highest weight for the construction project. Similarly, all the other criteria has been evaluated and judged based in the requirement as mentioned in the construction project.  

Evaluation of Project Delivery Methods

Based on the evaluation matrix, lump sum financial contract should be utilized for the construction of widening the motorway of the project.

The selection of appropriate procurement methods in the construction project helps in ensuring the project success and client satisfaction. The application of appropriate procurement process helps in improving the quality and standard of the construction project. Based on the construction project criteria, three main types of procurement methods are followed namely best value procurement, negotiated procurement and competitive procurement.   

Competitive procurement methods:

The competitive procurement process allowed the all contractors with the process for judging the contractors in the basis of various characteristics of the contractors on the basis of technical quality of the contractors. The competitive procurement methods evaluated the capability, experience and financial cost of the contractor. Further the experience and technical capability of the contractor are judged before selecting the appropriate contractor.

Negotiated procurement methods: In the negotiation procurement process, the contractor can discuss and negotiate the budget with the owner. The profit margin and risk factor associated with the project are considered before selecting the appropriated contractors. This type of procurement methods includes huge amount of financial budget by the contractors.

Best Value procurement methods: In the method for best value procurement process, the contractor with the least amount of bid is chosen for the construction project. This process is associated with less risks and future consequences of the construction. Further, the application of the best value procurement process eliminates the assessment of the contractor based on the quality and technical process employed for the construction project.

In this project for the widening the new freeway, a fixed amount has been provide by the government and deadline for completion has been set. Therefore, the cost for the procurement has been provided with the highest priority in the methods followed by the schedule. The construction would help in improving the quality and safety of the people using the pathway. In addition to that, mission out of any parts or activities in the construction would increase the risks associated with the project. Therefore, the risks have been allocated to next highest weight in the evaluation matrix.

Based on the evaluation matrix, competitive procurement method has been selected as the appropriate method for selecting the procurement for the construction project. Therefore the application of the competitive procurement could help in improving the quality and standard of the project.

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