Case Study

You have been appointed the Contract Manager (CM) of your organisation. Your organisation has a five-storey building project they are currently tendering, and they want a detailed risk analysis undertaken of project and contractual risks. The scope of the project is detailed as follows:

Scenario for your organisation - the project's building contractor

A five-storey building is to be built in Brisbane; in an area that has been previously zoned as "heavy industrial". The Client wants a Fixed Lump Sum submission, and will not consider any variations throughout the contract. The tender drawings contain most details, but the client has warned that he is currently incorporating some changes, which will be issued after tender stage. There may be a small amount of contaminated soil, and the client has included four bore logs and analysis for your reference. Any removal of contaminated soil must be built into the Fixed Lump Sum price. The Contractor must make allowances for wet weather, as they will not be entitled for extensions of time for a delay of this nature. As the Contractor you want to win the project, as you need to keep a continuity of work for organisation's employees. However, you need to make sure you understand all the risks, and make allowances for them in the tender price.

Use the issues identified in the case study to answer the following questions, including completing a risk register for the project (positive opportunities and negative risks) and two (2) action plans for the top two (2) priority risks:

Questions

Q1.Identify and describe at least three (3) risks which may impact on the project.