Assignment 2: Project Risk Management & Contingency Determination

Overview:

Sydney Metro project details as per Assignment 1. As part of the risk management team of XYZ Contractor, you are supporting the submission for a Design and Construct (D&C) Contract. You should undertake the required risk management and assessment activities for determination of the required cost and schedule contingency allowance for the defined scope of project below from a D&C contractor's perspective. You are required to research and find more details of this major project in order to successfully complete the assignment.

Option A: Victoria Cross Station

Details:

• 31m below groundlevel
• Construction at the station includes excavating two shafts, one will be used for future station entry and vertical access and the second shaft will become a future servicefacility.
  • Shaft 1: $10m (-20%, +50%), 2 month (-10%,+100%)
  • Shaft 2: $5m (-20%, +50%), 1 month (-10%,+100%)
  • Excavation of shaft 2 will commence after completion of shaft1.
• 3 properties around the station need to be acquired in 6months.
  • Property 1: $5m (-10%,+30%)
  • Property 2: $2m (-5%,+20%)
  • Property 3: $3m (-5%,+25%)
  • If one owner can negotiate a higher price, the other owners will likely raise the prices too and viceversa.
  • It's expected the acquisition of these properties will be completed prior toconstruction.
• Otherconcerns:
  • Underground services (2 months delay and $2m-$3m-$8mcost)
  • 2 months delay in completion ofacquisitions
  • Wet weather and increase in non-working days, more than 30mm/day rain will cause 3 days non-working day duringexcavationOption
  • B:Barangaroo Station

Details:

• 25m below groundlevel
• The construction site is usedfor:
  • Launching the TBM under Sydney Harbour to the BluesPoint
  • Retrieving the cutter heads and shields of the two tunnel boring machines that tunnel from the Marrickville divesite
  • Excavation and construction of the future BarangarooStation
  • Shaft 1: $20m (-20%, +50%), 6 month (-10%,+100%)
• 2 properties around the station need to be acquired in 8months.
  • Property 1: $10m (-10%,+30%)
  • Property 2: $5m (-5%,+20%)
  • If one owner can negotiate a higher price, the other owner will likely raise the prices too and vice versa. No relationship between these properties and other properties at the Victoria Cross Station wasidentified.
  • It's expected the acquisition of these properties will be completed prior toconstruction.
• Otherconcerns:
  • Underground services (2 months delay and $1m-$2m-$6mcost)
  • 3 months delay in completion ofacquisitions
  • 2 months delay in launching theTBM
  • Wet weather and increase in non-working days, more than 30mm/day rain will cause 3 days non-working day duringexcavation

Option C:Tunnels between two stations

Details:

• TBMs will be used to excavate 15.5 kilometers of new twin rail tunnels between Chatswood and Marrickville.
  • Estimated cost of TBM: $500k (-10%,+30%)
  • Tunneling cost: ($600k-$700k-$1b)/km, length3km
  • Expected tunneling duration: 6 month (-1mth,+3mths)

• Sydney Metro City & Southwest needs fiveTBMs.
• OtherConcerns:
  • Breakdown of TBM, very unlikely but if occurs, it may cause 1-2-4 months delay with the repair cost of$50k-$50k-$200k

Additional Details:

Figure 4 https://www.sydneymetro.info/

• Overhead cost: $5m permonth
• Design Cost - Stations: 5% of DirectCost
• Design Cost - Tunnel: 10% of DirectCost
• Connection cost between tunnel & stations = 5% of DirectCost
• ProjectSchedule:
  • Acquisition of properties at BarangarooStation
  • Acquisition of properties at Victoria CrossStation
  • Excavation & construction @ Victoria CrossStation
  • Excavation & construction @ BarangarooStation
  • Relocation of underground services (ifrequired)
  • TBMTunneling
• Any other required details can be assumed, but need to be documented andreported.

Objectives:

As part of their submission, XYZ Contractor should assess risks, uncertainties and required contingencies. You are working with XYZ Contractor and should support the team to:

• Identify and assess top 20 inherent and contingent risks with potential scheduleimpact
• Identify and assess top 20 inherent and contingent risks with potential costimpact
• Prepare the BaseSchedule
• Prepare the BaseEstimate
• Prepare the quantitative RiskRegister
• Undertake schedule risk assessment for determination of required schedulecontingency
• Undertake quantitative cost risk analysis for determination of required costcontingency

• Prepare QSRA and QCRAreport

The submission must be a professionally written report, excluding references and appendices. Page numbers are mandatory and you are encouraged to discuss the assignment with the teaching staff and other students. You should also use headings (including main and sub-headings) where appropriate to eectively structure and organise the various sections of your report. The words you choose for the main and sub-headings should be able to succinctly reflect what you are trying to express in the various sections of the report. Remember, the report must be written in a logical and systemic format, which can be easily understood for assessment.

As well as content and structure, making reasonable assumptions and referencing is equally important. Your report does not have to be overly referenced. However, the source of the information and all key assumptions referred to in your report should be made clear. The report should be written in a MS Word file and submitted electronically.

Table of Content for Assignment

There is not a specific table of content for this assignment as far as the objectives above being fully addressed and communicated for management decision. However, the provided rubric below can provide a reasonable table of content for risk and contingency assessment report.

with references if providing answer - sydneymetro.com.au for example has a lot of information but not clear