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Microsoft Word - 143066_Thi_Ly_VU_SBM3302_-_Case_study_100784_2050868700 Asia Pacific International College 1 INDIVIDUAL ASSESSMENT COVER SHEET STUDENT DETAILS Student name: UNIT DETAILS Unit name: Project Execution Planning and Management Unit code: SBM3302 Course name: Business Information System Class day and time: Lecturer and/or Tutor name: Jafar Hamra Campus: 55 Regent street, Sydney, NSW 2000 ASSESSMENT DETAILS Title: Project procurement and Risk management Assessment no.: 2 Word count: Due date: Date submitted: Introduction 2 1.1 The need for Sydney Metro 2 1.2 Project Objective 2 1.3 Project Stakeholders 3 1.4 Budget 3 1.5 Project Scope and timeline Asia Pacific International College 2 3 2. Delivery methods 4 3. Choosing Financial Contract Type 6 1. Introduction 1.1 The need for Sydney Metro As Sydney continues to change its face for the growth in economic and society, Sydney population is forecast to increase from 4.3 million to 6.2 million people in 2036 . Driven by population growth, employment in Sydney is expected to increase from its current level of 2.1 million worker to 3.1 million by 2036. This employment and the increase of population growth are required increased transport capacity. To ensure the productivity of the transport network, rail network is expected to increase by 31% by 2026. Since the number of the people travelling to Sydney city is forecast to growth to 775,000 by 2031. In response to these needs, Sydney metro city and Southwest will provide: - Extending Sydney Metro from Chatswood through the Sydney CBD - Adding new stations at Crows Nest, Victoria Cross and Waterloo - Significantly increasing the number of CBD stations by building new Sydney Metro stations at Barangaroo, Martin Place and Pitt Street, as well as new metro platforms beneath Central Station - Providing extra connectivity and interchange capacity at Chatswood, Central Station, Martin Place, Sydenham and Bankstown - Upgrading the Bankstown Line between Sydenham and Bankstown to be part of the high capacity, high frequency Sydney Metro system. 1.2 Project Objective The project has been created to address the exist problems and also extend the capacity of rail network. The main project objectives are to: - To improve the quality of the transport experience for customers - To provide a transport system that is able to satisfy long-term demand - To grow public transport patronage and mode share - To support the productivity of the Global Economic Corridor - To serve and stimulate urban development improve the resilience of the transport network Asia Pacific International College 3 - To improve the efficiency and cost effectiveness of the public transport system - To implement a feasible solution recognising impacts, constraints and delivery risk. 1.3 Project Stakeholders Internal stakeholders : - Department of Premier and Cabinet, Treasury, Infrastructure NSW, - the Department of Planning and Environment, - TfNSW divisions, - Sydney Trains, - NSW Trains, and Roads and Maritime Services. External stakeholders included - local governments, - local businesses, - special interest groups, - infrastructure development organisations and - the general community. 1.4 Budget The NSW Budget will commit $6.2 billion towards the Sydney Metro City and Southwest project. 1.5 Project Scope and timeline Sydney Metro has two components: + Stage 1: Sydney Metro Northwest - formerly North West Rail Link. This $8.3 billion project is now under construction and will open in the first half of 2019 with a metro train every four minutes in the peak. Tunnelling has finished and construction of the 36- kilometre line is progressing rapidly + Stage 2: Sydney Metro city and Southwest- a new 30-kilometre metro line extending metro rail from the end of Sydney Metro Northwest at Chatswood under Sydney Harbour, through new central business district (CBD) stations and south west to Bankstown. Construction will begin in 2017 with the first tunnel boring machine (TBM) in the ground before the end of 2018. This line is due to open in 2024 with the capacity to run a metro train every two minutes each way through the centre of Sydney. It includes new metro stations at: ● Crows Nest ● Victoria Cross ● Barangaroo ● Martin Place Asia Pacific International College 4 ● Pitt street ● Central (new underground platform) ● Waterloo 2. Delivery methods Due to financial, organizational and time constraints, various project delivery methods have evolved to fit particular project and owner needs. To find the best delivery method for this project, we will consider the factors and its impact on the project. • The magnitude, form, function and complexity of the project(20%): Sydney Metro is Australia’s biggest public transport project. Project scope will cover many sub-projects. The first stage had been used from 2018. The second stage aims to be done in 2024 and is expected to have 31 metro railway stations and a 66 km standalone metro railway system, revolutionising the way Australia’s biggest city travels. Due to the size of the projects, it will need the participation of many organisations. Also each stages and mini projects with lots of activities will make project more complex and hard to control. • Time: Delivery speed(40%) This project timeline already set the expectation due date in 2024. However, with the complexity of the project, there will be many factors make change in project delivery speed. On the other hand, this project involve to the activities of differents organisations and constructors therefore to ensure project speed is extremely important task. •Communication(10%): Sydney Metro is a long-term project and involves participation of many organisations. Ensure the effective communication among contractors, vendors, other stakeholders required a great effort of the project manager and team member. In term of project delivery, a clear communication with unified information will help create a specification work manner. • Establishing the project timeline(10%): Project timeline will decide the duration for each task. The more studying the more correct timeline will be setted. • Cost /Budget/ Other Financial Challenges(20%): Payment for the project will be paid by government. The cost will be different in each stages, for example the cost of a new metro rail line running mostly through tunnels between Sydney's CBD and Parramatta is set to exceed the $12.5 billion price of the railway soon to be built under Sydney harbour. That second stage requires digging twin tunnels between Chatswood and Sydenham, and then overhauling the existing Bankstown Line, at an estimated cost of $11.5-$12.5 billion. Asia Pacific International College 5 Method/Cr iteria Design Build Design Bid Build CM@risk The magnitude, form, function and complexity of the project The Design Builder is obligated to meet the design criteria and performance requirements specified in the bidding documents. • Contractor has little control over design • Owner has less control over selecting subcontractors CM assists in change orders, conflict resolutions for the owner Core( /10) 8 6 5 Delivery speed Ability for fast track/phased construction. Due to sequential nature, project takes longer time Overall project time can be reduced with expedited bid packages and early purchase of goods Score( /10) 9 7 6 Communicat ion Better relations and communication, more Contractor involvement throughout the process Conflict can occur between contractor and design team Constructor is involved during design Score( /10) 8 6 7 Establishing the project timeline Easy to create the timeline Project timeline is followed the traditional project development Timeline will be change due to the characteristic of this method Score( /10) 8 5 6 Cost /Budget/ Other Financial Challenges -On a design/build project the contractor and designer work together to serve the Owner on cost, schedule and scope of work. -Identification of costs early. -Owner has control and is involved in design - The project is competitively bid, lowest price However: Needs more cost control Constructor provides constructability and cost savings suggestions. Score( /10) 8 6 6 Table 1: Weight of criterias used to choose delivery method Define delivery method base on criteria and its impact Asia Pacific International College 6 Criteria Weight Delivery Method DB DBB CM@risk Score Score weight Score The magnitude, form, function and complexity of the project 20% 8 160 6 120 5 100 Delivery speed 40% 9 360 7 280 6 240 Communic ation 10% 8 80 6 60 7 70 Establishin g the project timeline 10% 8 80 5 50 6 60 Cost /Budget/ Other Financial Challenges 20% 8 160 6 120 6 120 Total 100% --- 840(1) --- 630(2) --- 590(3) Table 2: Weight and Ranking Delivery method → Conclusion: The most suitable delivery method for this project is Design Build. Because it: • Seamless communication between contractor and design team • Owner has control and is involved in design • One responsible entity reduces owner’s time commitment and risk. 3. Choosing Financial Contract Type Since Sydney Metro is one of the biggest transport project, its complexity and magnitude will have strong impact on how the project is executed. Choosing one type of contract might not work in every situation or stage, therefore the project should perform under a wide variety of Asia Pacific International College 7 contractual agreement such as: Fixed price or lump-sum, Cost-plus contract,