Advancement Of Performance Information And Value In Project Procurement

Issues with the Federation Square Project

Discuss about the Advancement of Performance Information and Value.

Project procurement refers to the complex networks of relationship that is created through the consultants, clients as well as construction companies that helps in enabling the building project realization. Proper project procurement method helps the project manager to determine the most appropriate and economic method of project execution helping them to mitigate potential challenges of construction as well as improve economic feasibility of the project. The current report provides an analysis of the Federation Square Project as well as recommends the method of project procurement. The features of the recommended project procurement method have also been analyzed providing a detailed budget of the project. Issues of the project procurement methods are also provided along with a detailed risk management of the project. Finally, adequate recommendations have been provided for mitigating potential issues related to the project.   

Federation Square is located on the Finders Street and the Yarra River that provides Melbourne with adequate opportunity for civil as well as cultural celebration. The project has faced huge amount of delay that is very much expensive for approximately $345 million and has been delayed for about 26 months. According to Dahiru (2015), major problem of the Federation Square Project is the fuelled administration as well as chaos of the construction that is associated to the compound of the inability of the project in development of the project brief regarding the onset of the project. An initial budget of approximately $128 million was used prior to completion of the project. Additional payment was also secured from federal funds that were completed on time for the Centenary of Federation (Ameyaw 2016).

The major indicative budget was set for getting an estimate for the purpose of the design brief. The design brief was based on the areas that were identified as the finish standards rather than the actual design concepts. As per Jelodar (2016), the areas identified for the requirement of the finish standards were set and the decision was proven as the basic source of the success as well as failures of the entire project. Outset of $128 million was set as the initial budget for the project that was found to be highly over estimated for the Federation Square Project. The project was highly eager in delivery of the centenary of federation as well as the decision for fast track was also a major political measure that was set for the $14 million deck substructure (Jefferies 2016). LAB + bates Smart were provided the rights for design of the project and the decision that was provided as the major source of project critical factors.

Recommended project procurement method

The decision for fast track was a major political measure that was taken for political measure also led to construction of the $14 million worth substructure deck before finalization of the project (Kim 2014). The detailed design and construction phases that was carried out led to a complex construction as well as working conditions that is delivered by Leighton Contractors on allocated time as well as budget. Moreover, the fast tracking also proved that overall program was driven fundamentally by the design team capacity for producing the documentation. Complexity of the design from outset of discouraged decision of the Government also led to fast track. Countless design decisions were revised and the political interventions caused aggravation in the sensitive project.

According to Lam (2015), different outcomes of fast tracking was viewed that included the appointment of Multiplex that was absent from competitive process of tendering. After the commencement of work on site, a claim of total $19.1 million was put forward to the Government. Regarding damages and delays caused due to absence of the agreement in a formal contractual manner. Pre-qualification process was also conducted for accessing the best potential contractors for the development of the Federation square project. Multiplex construction was also entered as the lump sum contract, fixed fee contract for the construction of the Federation square by the Victorian Government office of major projects that acts on behalf the state government. The agreement also lets the architect in nova ting the managing contractor. The assumptions of risk of omissions were done by the managing contractor of Multiplex that lead to discrepancies as well as ambiguities within the documentation and design of works (Lim 2016).

The managing contractors of the arrangement were usually altered through an arrangement of construction management that is considered as the major complexity of the contract. The ever changing as well as documentation of design is also incomplete. Further the office of major projects in compromising of design for multiplex as well as allocation of risks. Recent disputes have also been arranged for additional cost that is incurred to the increased scope of project as well as delay in construction project. The ongoing development of the continuing design through period of tendering makes it difficult in definition of scope, time and risks that are required for issues in construction (Lin 2014).     

The project main problems that were found within the Federation Square Project included incomplete design and ever changing project documentation. The reluctance by the majority of the projects involves compromising with the architecture as well as allocation of risk in designing the multiplex. Disputes over arrangement of fees due to additional incurred cost as well as increased scope of project also caused delay in project. The ongoing development of the design that continues through the period of tendering makes it difficult to continuation of design through the period of tender and makes it difficult for the project scope definition, time and risks associated to the issues of construction. According to Lloyd-Walker (2015), the procurement method for mitigating the issues faced by federation square project is early contractor involvement (ECI) that has its own advantages and disadvantages for the current project and has adequate mitigation techniques for the projects. Identifications of the project constraints was also done though effective project management techniques (Lundström 2013).

Advantages of Early Contractor Involvement (ECI)

Traditional constructional procurement method involves engagement into design works as well as overseeing of the project. As per Molavi (2016), the principal is usually engaged into the contractor for building the works during the contractor entering into subcontractors with sub trades. Traditional model of contracting involves losing control over key project outcomes as well as minimizing the risk exposure through adopting a variety of design build also known as turnkey contracts. The trade-offs leads to losing control over the project. The contract model results in risk allocation reliance too much in such circumstances inappropriate pricing of risks causes serious damage for the project. ECI helps in optimizing the risk management, control and price as well as risk allocation of a project. ECI helps in design build of contract models as well as benefits at much earlier stages. The majority of the projects involve the exploitation of construction processes that is responsible for the project completion (Naoum 2015).

ECI is very much effective and helps in minimizing the rates that is exposed the project contractor in opting variants of which of the design bills of the turnkey contracts and the strains of helps in losing the control of the project is involved (Naoum 2016). The major projects constraints that are seen in expecting a contact is essentially a form of collaborative contracting that helps in early involvement of the contractor and adoption of various lending and findings by the project manager. The project is also very easily traceable and can be usually used to learn price selection process for significant emphasis on the capability of the proposed project. The used measurement of the selected rates that ends possible options after the principal in getting contacting behavior of the tenders that helps in the construction agreement of the constraint during the distance stages of collaboration. The contract to design development, the risk identified are very much address as well as identified in proper appointment detailed design and pricing of the federation square project (Nawi 2014).

The contractor of federation square project that value the extracted as well as reduction of the cost of the tendering process in the design phase helps in a building the height of reputation of the project as well as makes it economically viable for the situation through mitigating the necessary and potential issues of the project. Usually the efforts helps in reducing the risk, which is identified, that are mitigated as well as poorly located for a project. According to Osei-Kyei (2015), importance of cognitive behavior also provides adequate benefits to the project in terms of the contact. Any maintenance of the project helps in ensuring the discussion process in the stage through the project development life cycle. Contractors of the federation square project should also ensure that they have stages that provide general value as well is allowed to have adequate control into the project risk management. These risk management is applied to the contractor of the project management that is easily dominated by the use of ECI technique of project management.

Constraints in Expecting a Contract

According to Walker (2016), major issues in project procurement method involves the supply related issue in which finding a qualified supplier is one of the most frequent and most difficult criteria in the project for completion. Finding a proper project management method for the Federation square project is the major challenges to find proper professionals in a supply chain of the materials that helps in finding a supply of materials (Rahman 2013). The strategic selection is another major issue that is faced by most of the project managers in case of Federation square project. Strategy that has been selected for proper project management method is a major issue in which elements of the procurement strategy across any geographical location is a big challenge. According to Sadeghi (2014), the direction of cost of materials, achievement of savings and the heat problems that are needed to reduce cost savings and maintenance of the project. Accuracy of the data in terms of project design as well as estimation is another important issue that is often faced by the project management and in the Federation square project, it is one of the most essential issues in management of the project (Verwey 2015).

Risk management in project involves times that are required to be avoided in terms of the projects. Optimizing the possibility of failure within the project, the major risk that is present in the project includes construction as well as design phase in which properties and the contractor does not follow methods during the construction of the structure. Moreover, the labors also do not use high quality materials during the construction of the project that will lead to numerous building failures as well as structural failures. Shehu (2014) stated that for structural joint, the project manager to search project management risks of time will also obtain them and scheduling is considered in the project’s risk list. This will ensure that the product is delivered on time and hence it will help the contractor to regain its reputation and market value on the organization (Walker 2015).

Conclusion

It can be concluded that major problem of the Federation Square Project is the fuelled administration as well as chaos of the construction that is associated to the compound of the inability of the project in development of the project brief regarding the onset of the project. The ongoing development of the continuing design through period of tendering makes it difficult in definition of scope, time and risks that are required for issues in construction. The majority of the project procurement method utility involves delivering the project on scheduled time as well as budget.

Conclusion

It is recommended to Federation square project to promote the mission and objective of the project on a large scale among the construction workers of the organization and hence ask them promote awareness through adequate safety and security training. During construction phase such as using safety and security while high-rise construction as well as the construction on the loose soil during the construction phase that will help them to ensure that construction is done with adequate safety and security and minimal structural failure is obtained during the construction procedure. Moreover, the labors should be created awareness regarding the use of safety boots and safety helmets during construction to prevent the head and feet from any kind of sudden injury due to impact load and other form of concrete debris.

References

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