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CSM80001 Project Costing -

Final Assignment   The Circumstances 

You are employed by a company in Australia and the CEO has decided that the company should bid for work in a new area of business.

The CEO requires a briefing document to outline the risks of contracting for work in the new area, recommendations to minimise these risks where appropriate, and the anticipated costs, resources and timing to prepare a typical bid for a contract in this new area of business.   What Is Required In This Assignment?  You are to prepare a report to the CEO which will go to the company board as a briefing document. The briefing document must have sufficient background supporting data to give the CEO confidence about the result, but only the executive summary will go to the board.   The report will contain the following parts:

1. An executive summary to go to the Board. 

2. A risk assessment summarising the major risks of contracting this work and your recommendations on how to reduce these risks. 

3. An estimate of the costs to prepare a bid for a contract of this type and value.  The estimate is to be summarised in a table by department (rows) and work phase (columns & total). 

4. A schedule (prepared in MS Project 2010) for the bid preparation. The Schedule is to identify the work phase and department for each activity. 

5. An appendix summarising your background research on three projects.  (A summary is required for each project and articles should be referenced rather than printed out. The summary is to focus on the risks encountered and how they were managed.)  You will research and examine three (3) projects for the type of work for which the

CEO considers your company should consider bidding. 

The projects to be considered by the company must be of a similar type and size.    You should choose projects that relate to the field of study for which you are enrolled (e.g. civil infrastructure, production engineering, electronics, etc.) and they are to be of a similar magnitude. A list of some suitable (mostly civil) topics is suggested in Item

below. That list is not extensive and you may choose other topics, provided you have the agreement of the lecturer.   For the purposes of this assignment you are to choose three (3) projects of the same type from a topic related to the course that you are doing.   Points to be taken into account when choosing projects and  types: 

1. The type of project that you choose must be agreed by email with the lecturer before you commence the assignment. The projects reported upon must have been constructed after 1990 and had significant risks to overcome or reported significant delays, cost overruns and other risk occurrences.  There will be a limit to the number of students who will be permitted to choose the same topic and projects. So get your requests in early!  First come first served. (This requirement does not apply to distance learning students).  2017_CSM80001_FinalAssn.docx Page 1 of 10 12-Sep-17 

CSM80001 Project Costing -

Final Assignment  Report on New Business Opportunities The CEO has instructed you to prepare a detailed report to evaluate new business opportunities for contracts in Australia.  When the CEO has reviewed your report and agrees with its content it will be presented to the company Board of Directors with recommendations to them to bid for this new work.   

Your task is in parts, as detailed here: 

Part 1:  Executive summary to the Board  This part of the assignment is

in the form of a 1 page (of text) summary plus suitable attachments summarising the significant risks (a before & after risk map and a list of risks with recommended mitigation) involved with executing this type of contract work, and a summary of the cost, and schedule (summary by department and work phase) to bid for the work. The attachments should not cover more than four pages.

 Part 2: Risk assessment summarising the major risks of contracting this work. 

The risk assessment and recommendations for mitigation must be summarised and reference made to significant difficulties reported in the press about existing contracts of this type. The attachments to the report will include a professional risk assessment for a typical project in this area and include a risk management plan (of not less than 10 risks ranked by significance, showing the treatment of risks) and a before and after risk matrix (of the 6 most significant risks). 

Part 3 & 4: Estimate of the costs and a schedule to prepare a tender bid for a contract of this type.  For this you need to establish a budget estimate on an ‘Excel’ spread sheet for yourself (you are the bid manager) and project team involved in bid preparation:  Plan and schedule activities and resources to complete the report in the time allocated. Schedule to be prepared using ‘Microsoft Project 2010’ software. (Available as 60 Day free trial at  http://www.microsoft.com/project/en-us/try.aspx).   Part 3 Estimate Preparation: Additional information for this item You have been advised by other colleagues that generally for design and construct contracts over $400 million the total cost to prepare a bid may be expected to cost in about $400,000 and take some 5 months to complete.   Establish a budget estimate on an ‘Excel’ spread sheet:   

▪  An hourly cost rate for each of the individuals and departments assigned to the report preparation is to be used as the basis for the estimate.  Note: The hourly rate calculation method to be use is as outlined in Chapter 8 of the course textbook. Hourly rates are to be without preliminaries or profit. 

CSM80001 Project Costing - Final Assignment 

 Assignment Submission Requirements: This assignment is due Monday 6th November, 2017. 12:00 noon.  The assignment is to be submitted by the deadline in both hard copy and electronic format

• Hard copy is to be delivered to the CSM80001 mailbox located on Level 7 of the ATC building, near office ATC743

• Electronic copy of all files including supporting documents and the schedule are to be uploaded via the ‘Assignment’ section of Blackboard before the closing time.  Assignment Marks: Marking Scheme:  42.0% Exec Summary & Advice to board 30.0% Report  28.0% Projects    References:  Cost Engineering for Project Success, an Australian Perspective, L J Pole 2013  Microsoft Project – 60 Day free trial software:  http://www.microsoft.com/project/en-us/try.aspx  Note: MS Project 2010 will not function effectively in its’ “out of the box” downloaded form. The MSP2010 software is much more user friendly when you upload and open the Eastwood Harris MSP2010 Template Ver03 which provides a Quick Access Toolbar. (Refer to the files provided in the Final Assignment section of Blackboard).   Manuals and learning material for MS Project 2010: Ctrl + click to follow the link to the Swinburne Library ‘e’ book version.  Planning and Scheduling Using Microsoft Project 2010  by Paul Eastwood Harris  http://ezproxy.lib.swin.edu.au/login?url=http://library.books24x7.cCSM80001 Project Costing - Final Assignment   

2. Read carefully through all of this assignment and do some preliminary research before you choose a topic. To enable you to meet the requirements of this assignment you must make sure that you have sufficient background knowledge and/or there is sufficient information available on the topic that you want to select. If not, you need to choose another topic for which you can find more information.   Some Suggestions for Suitable Project Topics –   Infrastructure projects such as: Highway extensions and upgrades, Tunnels, Steel or concrete bridges, Ports (harbours), Long distance pipelines, Railways, Desalination plants, Earth/rock fill or concrete dams, Airports Large scale property development such as: High rise buildings, Satellite townships, Sport venues,  Other project types (particularly in your own field of study) such as: Software development, Manufacturing plant, Product development, or as may be agreed with the lecturer.  Some key search words ‘construction’ or ‘Project’ with ‘cost overruns’ and similar)  Another way to research possible areas of business is to look at the Engineers Australia infrastructure report card 2010 to be found at http://www.engineersaustralia.org.au/irc/. This reference describes various categories of infrastructure and contains key words and references that you can use can use in a search engine such as “Google” to find details of projects. Various completed projects are described in detail in the Australian Constructors award for Project Insights going back to 2006, to be found at http://acaa.net.au/?page_id=91. Project values can be found in media releases at http://acaa.net.au/?page_id=94 or by searching. Note that these presentations put a favourable light on the projects and you should also search press articles and other more independent internet information such as delays, disputes or cost over runs. 

1. The three (3) projects of the same type and approximate value that you choose must be selected and advised by email to the lecturer th nbear@swin.edu.au before

5 pm Friday 6  October 2017. 

2. Your email must give a short description of each project including the location, the contractor name, when they started, a one sentence description of the scope and the value.  NOTE: I

f too many students choose the same projects those who ask first with the above summary information will be accepted and the others will need to find alternative projects. So be early! You will be advised by email if the projects you nominate are accepted, or not. Students in the same team will not be permitted to choose the same topics.    2017_CSM80001_FinalAssn.docx Page 2 of 10 12-Sep-17 om/library.asp?%5EB&boo kid=37116   

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