Communication Management Plan

Discuss about the Risk Analysis and Management In Construction.

For any work to progress effectively, there must exist a swift communication channel. This communication channel must also present detailed and clear information. This will enable those involved in project management to detect and hindrances to the project and address the in the most effective way.

Below is a communication management plan for the projects at hand.

Sr. No	Category Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Format	Objective	Distribution	Frequency
1.0	Arrival at site	Printed papers posted on notice boards and fliers.	a)      To convey the message of the time of reporting at the site. b)      To make sure employees report early.	a)      Site management team. b)      Client’s team.	Daily
2.0	Short review of what was done on the previous day	Questionnaires	a)      To review previous day’s aims and ascertain if the work was done well.	b)      Site management team. c)      Client’s team.	Daily
3.0	Assigning tasks for the day	Scheduled duty roaster and oral assignment.	a)      To assign various roles to respective workers who should undertake each role.	Site management team	Daily
4.0	Viewing reports of the progress of the work.	email	a)      To compare the actual progress of the work with how the work was scheduled to be done.	a)      Stakeholders	Monthly
5.0	Monthly meetings	Face to face talk.	a)      To discuss about the progress of the work. b)      To talk about the current status of the project. c)      To evaluate necessary steps to ensure that the work proceeds swiftly.	a)      Site management team. b)      Client’s team.	Monthly

Risk Management Plan

Sr. No	Risk factor	Details	Probability	Consequences	Mitigation
1.0	Weather	Adverse climatic conditions that may not be favourable for working	High	a)      Spending more time. b)      Damage at workplace	a)      Undertaking outdoor activities first before the weather changes. b)      Using quality raw materials for walls
2.0	Objects of antiquity	The fossils need to be dug out before the foundation could be established	High	a)      Weak foundation b)      More time for the project	Requesting for more machinery and time in advance.
3.0	Extension of time limit	Due to bad weather, objects of antiquity, and change in material used, the project may take more time	Moderate	a)      Spending more time on the project	Rescheduling activities to fit a tighter schedule.

Before any construction work begins, strategies must be put in place to facilitate the process of dealing with risks that may be encountered during work (Runciman, et al., 2006). The first risk that the contracting firm is likely to encounter is adverse weather conditions. Based on past weather forecasting reports, the construction process is likely to take about a month more than the planned time. The first strategy to lay is protecting the site from damage by the weather. This could be done by doing sufficient plastering of the structures using quality materials like the right cement.  The next step is to perform weather dependent activities before the time for peril comes. These activities include outdoor constructions. Lastly, when the adverse weather conditions come, weather dependent activities would have been completed for they were prioritised. Therefore, workers can shift to weather independent activities like indoor construction (Rojas & Mukherjee, 2006).

The next risk for the project could be obstructions as we lay the foundation. The ground on which a foundation of a building is established is one of the most important considerations during construction (Das, 2010). If there is underlying material which is weak in structure, the objects of antiquity must be excavated first. This challenge will be addressed by getting more machinery to facilitate the process of excavating the objects.

There also seems to be a risk of exceeding the time limit for the project. Due to the weather predictions, the project may take more time than expected. This challenge could be catered for by asking for more time for the project. More time for any project will mean better work unlike when work is done under pressure and limited time (Akintoye & MacLeod, 1997).

Performance and payment, under nature of contract states that the contractor must finish all his WUC fully as stipulated. Then, the principal pays the contractor the lump sum and the work accepted for the lump sum. Payments for products or items are attained by multiplying the quality of each item or work carried out under the contract by the rete that the principal accepted. Sub clause 5.1 dictates that, the sum of the contract must not increase by more than 10% of the original sum. Unless the contractor meets its requirements, he may not claim any payment or the principal may deprive him of any payment.

Risk Management Plan

Relevant Clauses from AS 4000:

• Clause 2.1: Performance and payment

This clause states that, before any payments are made, the contractor must have fully completed his WUC.

• Clause 5.8: No payments until security lodged

With incorporation with clause 5.1, it presents limits to which original expenditures should not exceed. Clause 5.1 also gives requirements that the contractor must meet before receiving any payment.

Clause 8.1 dictates that, if there is any form of inconsistency in information or ambiguity, the superintendent should be informed. We addressed the challenge of ambiguity and informed the superintendent about the problem through writing him a letter to describe the situation. The superintendent then carried out a full audit of the documents.

Relevant Clauses from AS 4000:

• Clause 8.1: Discrepancies

This clause outlines the procedure to follow in case of ambiguity or missing files and the actions that each party should take.

The claim should be based on clause 2.5, adjustment of actual quantities. This is because the clause states that any additional or less quantities must be catered for if the principal accepted a lump sum or rate for any item. The greater than or less than limits for the items also apply.

Relevant Clauses from AS 4000:

• Clause 2.5: Adjustment for actual quantities

This clause give the upper and lower limits for adjustment of any quantities. It gives a range of less than or greater than the original amount.

• Clause 36.2: Purposed variations

Under this clause, the superintendent informs my company of any possible changes to be made. After evaluation of the proposal, my company decides whether to effect the changes or not.

Since the object of antiquity is not a problem that we could have discerned earlier, we had to inform the superintendent of the problem. We also requested for additional resources like money and machinery to do the work. The superintendent agreed to our suggestion and we got the machinery and progressed with the work.

The first step was to know the right description of the bolts, for example size and type. Then the price for the bolts is also established. Lastly, the superintendent takes the initiative of engaging the relevant authorities to change the overall price of the items (Shnookal & Charrett, 2010).

EV analysis is a technique used to calculate the performance of a project by monitoring the expenditure, time of completion and the work that has been done. For you to calculate this, you need to obtain the PV, EV, and AC (Vanhoucke, 2009).

1. PV=total of current planned budget

= 50+ 100+ 120+ 120+ 130

=640 AUD

1. AC= Amount spent

= 65+ 160+ 235+ 120+ 130+ 130

Weather Risk

= 840 AUD (thousands)

1. EV= 50% of budget at completion

=0.5 of 1290

= 645 AUD (thousands)

1. CPI= earned value divided by actual cost

= 645/840

=0.7679

1. SPI= earned value divide by planned value

= 645/640

= 1.0078

1. SV= EV-PV(Usmani, 2012)

=645-640

=5 AUD (thousands)

1. CV= EV-AC

=645-840

=-195 AUD (thousands)

1. BAC= 50+ 100+ 120+ 120+ 120+ 130+ 130+ 130+ 120+ 120+ 100+ 50

= 1160 UAD (thousands)

b)

1. i) EAC= BAC/CPI

EAC= 1160/0.7679

=1510.61 AUD

1. ii) EAC = AC + (BAC – EV)

=840+ (1160-645)

=1355 AUD

iii) EAC = AC + (BAC – EV) / (CPI * SPI)

=840+ (1160-645) / (0.1238*0.2)

=1312.601 AUD

A draft monthly report detailing the status of the project at the end of 6^th month

• Project name:
• Client:Town of Sunshine
• Sponsor: State Government
• Other stakeholders: Local tennis club, community leader, council member
• Main contractor: (My company) Ltd.
• Construction time of project: 12 months
• Planned budget: 1290 thousands AUD

Project completed at the end of 6^th month: 50% of original work.

On a general scale, the project is running on a higher budget than expected, as revelled by the CPI value. However, the SPI value, 1.0078, reveals that we are doing well in terms of the schedule. Below is a monthly summary of how the project has been running.

On the first month, the planned expenditure was 50000 UAD. However, the amount was exceeded and the expenditure was 65000. This was due to added costs of claims to resolve some errors like replacing bolts.

On the second moth, we anticipated to spend 100000 UAD. This budget was also exceeded and the total expenditure added by 60000 more UAD. This was because of the necessity to deal with the object of antiquity, which also meant that we spend more money.

Similarly, the third month’s budget was lower than what was spent. The planned amount was 120000 UAD. The total expenditure for that month totalled to 235000 UAD. The major contribution to the over expenditure was the claim to change the design of seating material.

The fourth month was quite stable because no emergency issue had to be dealt with. The planned amount was 120000 UAD and the same amount was spent for that month.

Though the fifth month dint have extra things to deal with, there was slight over expenditure. The budget was 120000 UAD whereas the actual expenditure was 130000 UAD, 10000 UAD more than the planned amount.

During the sixth month, our team did a fabulous job of balancing between the expenditure and the budget. The planned amount was 130000 UAD and that was the same amount that was spent.

VOWD = Rate * WH (Fairfield, Whisenant, & Yohn, 2003)

Pipes delivery: 30/100*3000*200= 180000USD

Third month =36000/0.75

=48000 AUDpaid

Forth month=144000/0.80

Forth month=  180000 AUD 

Paid by third month=135000*20/100

=27000 AUD

Laying pipes: 20/100*300*120=7200 AUD

Tested pipes: 10/100*3000*30=9000 AUD

Total= 9000+7200+48000+180000= 244000 AUD

1. Accrual

30/100*3000*200/0.8+20/100*3000*120+10/100*3000*30= 306000 AUD

References

Akintoye, A., & MacLeod, M. J. (1997). Risk analysis and management in construction. International journal of project management, 31–38.

Das, B. M. (2010). Principles of foundation engineering. Cengage learning.

Fairfield, M., Whisenant, J., & Yohn, T. (2003). Accrued earnings and growth: Implications for future profitability and market mispricing. The accounting review, 353–371.

Rojas, E. M., & Mukherjee, A. (2006). Multi-agent framework for general-purpose situational simulations in the construction management domain. Journal of Computing in Civil Engineering, 165–176.

Runciman, W. B., Williamson, J., Deakin, A., Benveniste, K., Bannon, K., & Hibbert, P. (2006). An integrated framework for safety, quality and risk management: an information and incident management system based on a universal patient safety classification. BMJ Quality & Safety, 82–90.

Shnookal, T., & Charrett, D. (2010). Standard form contracting; the role for FIDIC contracts domestically and internationally. Proceedings of the society of construction law conference Australia, Perth.

Usmani, F. (2012). Schedule Variance (SV) & Cost Variance (CV) in Project Cost Management. Retrieved from PM study circle: https://pmstudycircle.com/2012/05/schedule-variance-sv-cost-variance-cv-in-project-cost-management/

Vanhoucke, M. (2009). Measuring time: Improving project performance using earned value management. Springer Science & Business Media.