Project Evaluation Management Delivery System †Free Samples

Question: Explain Project Evaluation Management Delivery System? Answer: Introducation This Design-Bid-Build process of project delivery system comprises of the three phases that are designing phase, bidding phase and building phase. In the very first phase, the project owner recruits a designer to make the design of the project plan and to provide the required documents that are related to the tender of the project (Kerzner, 2013). The designer needs to do the design in presence of the project owner until the project is completed in order to check the project execution that whether it is meeting the project requirements. Once the initial design is done, various engineers will be recruited by the designer to do the task with him so that they can produce the project successfully and completed. The bid document will be made at the finishing time and therefore then the second phase will begin. There are various contractors, who will always try to take the project tender. These people are known as general contractors. The smaller contractors and the general contractors usu ally take the project tender. All the participants of the bidding auction get to know the bid documents and thus they know it very well that whether they will be able to do the project or not (Burke, 2013). The project owner however, has the authority to reject all of the participants and to set up a brand new time and date for again the bidding auction to happen, so that he can select the best alternative and complete the project in low cost. Once the contractor is selected, there is no chance of changing the bid document. Various authorizations are needed to be taken by the general contractor to start the task of the project. The builder documents the time limit of that project to manufacture a successful document at the finishing time of the project (Larson Gray, 2013). The designer, who was recruited by the project owner does his work as a chosen worker of the owner, and with the general contractor to verify whether the project is undergoing according to the requirements or not . Design-Build This Design-Build process is done to appoint an architect and a general constructor. These people will do the planning, designing and the project implementation right from the beginning till the conclusion (Walker, 2015). This is not the phase of giving the tender of the project to any other contractor. Moreover, the design build phase mostly aims on the partnership act or the joint venture within the respective organization and the designer. CM @ Risk In the CM @ Risk method, the constructor is given a particular construction project after the design is made or the phase of designing (Schwalbe, 2015). The particular constructor is allocated with the bidding of lowest price. It is the responsibility of the allocated constructor to accomplish the project successfully (Minchin et al., 2013). The evaluation of this project can be classified into several smaller classifications. They are as follows: a) Delivery Time This particular time refers to the entire project schedule, right from the starting till the execution of the project finance. This is extremely crucial for any project (Boyle, 2017). b) Project Innovation New and innovation ideas and planning are required for all projects. However, this may bring certain risk factors for the project. c) Level of Design The designing phase of the project should be successfully completed to get the project without failure. d) Major Risk Assessment There is always a chance of risks or threats in any project. However, this type of risks can be eradicated with the help of proper risk assessment and management procedure (Walker, 2015). The main goal of performing this step is to train the workers so that they can manage all sorts of risks and can successfully complete the project. e) Budget This is the most important step for any project. The budget should be calculated before the starting to understand the overall cost of the project (Boyle, 2017). This step is mainly carried out by the financial advisor of the project. f) Experience of Employees and Availability The staffs and the workers of the project should be experienced so that there should not be any risks or mistakes in the project. Also, the staffs should be available so that the project should be completed with time(Burke, 2013). g) Level of Error and Control The level of error in the project and the ability to mitigate and control them should be evaluated before the starting of the project. h) Competition and Contractor Experience Competition increases the productivity of any project. The competitive side of this undergoing project requires to be calculated (Nyborg, 2014). Goals/ Criteria Criteria Weight Project Delivery Systems Project Delivery Systems Project Delivery Systems Design-Bid-Build Design-Build CM @ Risk Score Weighted Score Score Weighted Score Score Weighted Score Delivery Time 25 6 120 9 180 6 120 Project Innovation 25 8 200 4 100 4 100 Level of Design 25 6 180 6 180 6 180 Major Risk Assessment 10 8 160 4 80 8 160 Budget 30 4 80 8 160 4 80 Experience of Employees and Availability 30 4 120 4 120 9 270 Level of Error and Control 30 5 150 5 150 8 240 Competition and Contractor Experience 25 8 200 6 150 5 125 Total 200 1210 1120 1275 When the calculation is done for the three above mentioned processes, the best project process is to be selected. According to the evaluation, the design build phase is the best method of the three. The reason for this selection is the time span. The provided time span for this project is 8 years. It is a large project. It will start in 2015 and is estimated to end in 2023. Design-build process is the fastest and the construction time is the fastest in respect to the other two methods. However, there is a high chance that there will be delay in the project as it is a large project (Larson Gray, 2013). This complexity can be eradicated by the utilization of the method of design build. This particular method is cheaper and can be claimed as the cost effective method. This will give the project to be accomplished before the calculated time and in a cost effective way. The above mentioned evaluation matrix clearly signifies that the design build method is the best method for the project (Potts Ankrah, 2014). The marking of the calculation is granted on the basis of the property of the project in the given case study. Financial Contract type Lump Sum Contract Lump Sum contract is a specified budget contract, which is decided between the contractor and the project owner. The risks that are needed to be calculated are done by the contractors. The owner does not take any responsibilities. Negotiation is very common for money within them and the amount that is settled at the end is fully paid to the contractor (Kerzner, 2013). The general contractor has to give the best possible report of the project for the contract. All the costs that are incurred in the project and will be needed for the project are calculated in the starting and are mentioned in the contract clearly. Guaranteed Maximum Price Contract The contractor always has the tendency to incur more expenses to the project. Therefore, he will be responsible for any over expenses. This particular contract is estimated on the basis of the compensation charges for the over expenses in the project. The contractor has to finis the project in the previously mentioned price as per the contract (Schwalbe, 2015). However, if the owner thinks, he can change and alter the project contract as per requirements. Cost Plus Fixed Fee Contract This type of contract is a cost repayment contract, which gives the contractor of the project a negotiable amount that is set at the starting of the contract. This gives an edge for the contractor to gain a profit from the project. The costs that are incurred are evaluated on the current marketing value (Jones, Moura Domingos, 2014). This type of contract is decided only when both the groups agree that a certain amount of money will be paid to the contractor independently from the costs sustained in the project. Goals/ Criteria Criteria Weight Financial Contract Type Financial Contract Type Financial Contract Type Lump Sum Contract Guaranteed Maximum Price Contract Cost Plus Fixed Fee Contract Score Weighted Score Score Weighted Score Score Weighted Score Agreeable 25 8 200 6 150 6 150 Amount of money 30 6 210 9 315 7 245 Profit margin 25 7 140 2 40 8 160 Risk taken 10 2 20 8 80 6 60 Based on current market value 10 2 20 2 20 5 50 Total 100 590 605 665 When the calculation is done for the three above mentioned contracts, the best project contract is to be selected. According to the evaluation, the lump sum contract is the best method of the three. The reason for selecting this contract is that it is simpler than the other two. The owner of the project has to provide a lump sum amount of money to contractor and after that he can relax. The rest of the task will be completed by the contractor and it will be his responsibility to complete the project. The lump sum contract also gives a better profit to both the contractor and the owner. The above mentioned evaluation matrix clearly signifies the lump sum contract as the best contract. The number given is on the basis of the positivity of the method of working in the case study. As the number goes higher, it signifies that the norm is being included in the financial contract at that particular amount. Procurement Method Competitive Method The particular method assists in the equitable and moral method of the suppliers bidding (Kilic Kaya, 2015). This enables all the general contractors, who are interested in the project to present their individual bid for that tender. The owner tries the similar theory and then applies the similar kind of procedure while choosing a particular bidder from the contractors, who have applied (Jones, Moura Domingos, 2014). The objective of the competitive procurement method is to give an equitable and moral practice that will be helpful for the owner to maintain the reinforcement of the contractors. It is observed that by following this particular method the owner is able to choose the best contractor for his project to be undertaken. The moment this decision is taken, the other workers, staffs and the agent will be able to know what can be expected from the respective contractor when they are taking these decisions. The owner gives an advertisement for the project (Bingham, Asmar Gibso n Jr, 2016). There is a form that is to be filled out by the contractor, who are interested and can then apply for the tender after submission of their quotation. Then they have to wait until the owner approves them. The owner examines the bids and chooses that particular contractor, who is the best for the task. If the owner of the project is price oriented, then he will select the contractor with the lowest bid. The procedure unlocks the tender for getting it to all the contractors, who are interested. There is a honest decision from the owners side in choosing the best contractor for the project (Potts Ankrah, 2014). It is seen that most of the contractors do not favor to utilize the traditional way of competitive bidding. Negotiated Method In this particular Negotiated method of procurement, the owner selects a contractor, who will be helpful to him regarding the contract (Nyborg, 2014). The amount of money that is to be paid to the contractor, is further decided with the contractor. When the contractor is ready with his quotation, the tender is selected. However, when the situation is opposite, the contractor can also negotiate the budget of the project but keeping in mind the risk factors and the profit margin for the contractor. When the negotiation is successful on the tender given to the contractor, a contemporary contractor is summoned to do the task on the tender and thus the procedure repeats itself (Naoum Egbu, 2016). It is better to avoid this method as there is a chance that the contractor can demand more money. Best Value Method In this particular procurement method, the main focus is given to the lowest bidding and on the factor that the particular contractor has the necessary proficiency in the field of job that is related to the project. The standard of work that the contractor demands to deliver is further contemplated as the owner explores for the best standard of work for this particular project (Schwalbe, 2015). The determination is done before the project planning. Utility of the contractor appointed are scheduled time taken, previous working processes, cost that is incurred on the contractor and standards of his final product. The profits are pre planned out in a tabular form for several contractors and from them the best one is selected. This system is mostly used by maximum owners of projects as it is simple to be implemented, risk exposure is less, major decision making is not required, future consequences can be estimated easily (Kibert, 2016). When the project owner will have a specific amount of money considered then he would check for other contractors, who have the experience of such complex and big projects. This step will eradicate the procedure of choosing a particular contractor on the basis of the least bid (Kilic Kaya, 2015). Goals/ Criteria Criteria Weight Procurement Method Procurement Method Procurement Method Competitive Negotiated Best Value Score Weighted Score Score Weighted Score Score Weighted Score Bidding 25 9 225 8 200 2 50 Decision of the owner is final 25 8 240 2 60 8 240 Negotiation 15 2 20 9 90 2 20 Risk taken 20 5 100 8 160 2 40 Total 85 585 510 350 The procurement method that is recommended for this particular project is the best value method. The method helps to eradicate the risks and vulnerabilities of the project and to attain success with utter perfection. This particular method is accepted by many governments to lower their risks. The above matrix clearly describes the benefits and the advantages of best value method. This method is even cost effective and user friendly. References Bingham, E., Asmar, M. E., Gibson Jr, G. E. (2016). Project Delivery Method Selection: Analysis of User Perceptions on Transportation Projects. InConstruction Research Congress 2016(pp. 2110-2118). Boyle, G. (2017).Design project management. Routledge. Burke, R. (2013). Project management: planning and control techniques.New Jersey, USA. Jones, H., Moura, F., Domingos, T. (2014). Transport infrastructure project evaluation using cost-benefit analysis.Procedia-Social and Behavioral Sciences,111, 400-409. Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons. Kibert, C. J. (2016).Sustainable construction: green building design and delivery. John Wiley Sons. Kili, M., Kaya, ?. (2015). Investment project evaluation by a decision making methodology based on type-2 fuzzy sets.Applied Soft Computing,27, 399-410. Larson, E. W., Gray, C. (2013).Project Management: The Managerial Process with MS Project. McGraw-Hill. Minchin Jr, R. E., Li, X., Issa, R. R., Vargas, G. G. (2013). Comparison of cost and time performance of design-build and design-bid-build delivery systems in Florida.Journal of Construction Engineering and Management,139(10), 04013007. Naoum, S. G., Egbu, C. (2016). Modern selection criteria for procurement methods in construction: A state-of-the-art literature review and a survey.International Journal of Managing Projects in Business,9(2), 309-336. Nyborg, K. (2014). Project evaluation with democratic decision-making: What does costbenefit analysis really measure?.Ecological economics,106, 124-131. Potts, K., Ankrah, N. (2014).Construction cost management: learning from case studies. Routledge. Schwalbe, K. (2015).Information technology project management. Cengage Learning. Walker, A. (2015).Project management in construction. John Wiley Sons.