Name of the University

Scenario/Problem Solving Project Analysis

On
South Gippsland Highway Project (VIC)

PRJ5108 Project Delivery and Procurement

Assignment 3 Part III

Student Name
Student ID

1
Table of Contents
Summary of Part I and Part II Improvements..........................................................................3
Discussion and Findings.........................................................................................................3
Risk Analysis.......................................................................................................................... 5
Conclusion............................................................................................................................. 6
Recommendations................................................................................................................. 7
References............................................................................................................................. 8

2
Summary of Part I and Part II Improvements
South Gippsland Highway project will connect the other routes so that infrastructure develops
in Victoria. This project was approved to develop the link between Old Koonwarra-Meeniyan
Road and Minns Road. The first part described the project delivery method, bidding process,
and current project updates for briefing. The project delivery method and bidding strategies
could be improved by identifying its stages, selection criteria, and strategies respectively
(Rose, 2014). These improvements from previous work will help in the project’s delivery in
the future.

The design-build method has stages including a selection of the team, project planning,
designing, developing guaranteed maximum price, and construction (Chen et al., 2016). All
these steps should be completed for a design-build method to implement for South Gippsland
Highway. Furthermore, the criteria for choosing the design-build process should be taken into
consideration. Criteria include lack of technical knowledge, project status (complex or
simpler), project type (smaller, middle, and larger), multiple changes and variations,
integration of design and construction as well as priority for time, scope, and money
(Ghamdamsi, 2016). In this case, the criteria for the method are that project is large,
technically complex, quick start, as well as direct communication. Therefore, being a large
and complex public infrastructure project, the design-build procurement was found
appropriate here.

Whereas, the bidding strategy adopted previously directly aligns with the project delivery
method. It is important to improve strategies that could be applicable for selecting and
rewarding contracts to contractors as per the design-build method. Although design-build
does not have traditional bidding processes however the proposal was selected based on
environmental concerns and land usage as per traditional custodians of the Bunurong people.
To improve the bidding process, the internal factor could be taken into consideration to
analyze the contractor company’s experience on projects such as business benefits, financing,
characteristics of the company, and experience (Wibowo et al., 2015). Thus, with this
strategy CPB contractors have rewarded the project as their proposal was very effective and
approachable. Besides, they won contracts due to previous experience in large public
infrastructure and handling budgets with timely delivery.

3
Discussion and Findings

South Gippsland Highway project will help in reducing the road crashes, safety concerns, and
flight delays on the route Koonwarra and Meeniyan Road towards Minns Road by allowing
safety measures. This project will reduce fatality crashes observed by the South Gippsland
highway council. As per figure 1, a project aimed to reduce fatalities and serious injuries by
over 30% 20% reduction in deaths, and a 15% reduction in serious injury over five years.

Figure 1. Fatal Crashes to Reduction Model at South Gippsland Shire Source (South
Gippsland Shire Council, 2019)
CPB Contractors is an Australian company that was rewarded with this project because they
propel the project delivery promptly with sincerity and sustainable return on investments in
public infrastructure. The design and delivery method for the project was a design-build
contract made between the Victorian Government and CPB contractors with $115 million.
This company was given a contract due to their company performance and background in
previous works. Figure 2 shows, revenue generation full yearly in the year 2022.

4
 Figure 2. Revenue Generation CPB Contractors Source (CIMIC CBP Contractors, 2021)
The schedule and cost overruns issues were not identified much for this project because of
the contractor's team’s extremely well-planned performance. However, some major
challenges could hamper delays in project activities. For instance, evaluation is required for
issues such as the absence of any project agencies, land delay due to disinterest of Bunurong
people, as well as political changes and agreement with forest and environment clearance
policies. Therefore, the focus should be on dealing with project planning, budget, and
scheduling requirements in public infrastructure projects.

Risk Analysis
Risk analysis is an important observation that will help in dealing with issues identified in
infrastructure projects. An infrastructure project if underdeveloped insufficient could end in
multiple concerns including budget overruns, scope creep, delays, lack of procurement, as
well as unavailability of private financing (Beckers and Stegemann, 2013). For this reason,
the risk register below identifies major risks in South Gippsland Highway project and its
mitigation plan to overcome them.
ID Risk Likelihood Impact Severity Owner Mitigation Plan
Description Out of 5 Out of 5 Likelihood*
Impact
RQ1 Budget Overrun 4 5 20 Project Plan cost evaluation and
Sponsor cost-benefit analysis for
project activities.
RQ2 Scope Creep 3 5 15 Project Extensive research for
and project Manager delays such as weather
delays conditions, and PID
documentation
RQ3 Frequent design 3 4 12 Designer and Distinguish project
variations Architect requirements in the initial
phase as no customer
involvement is allowed. A
project management
method approach should
be adopted for avoiding
various and unnecessary
changes.
RQ4 Procurement 3 2 6 Contractor Adopt a procurement and
failures contract method in the

5
 beginning stage. A fixed-
price contract is applicable
here.
Lack of 4 2 8 Project Negotiate with investors
financial Manager by showing them
investors impressive proposals and
project requirements
aligned with fatal incident
reduction.
Land dispute 3 2 6 Project Bunurong people should
Manager be engaged in community
feedback surveys after the
first half of the project is
delivered.
Political issues 1 2 2 Project Plan requirements as per
for the Manager forest and environment
environment policies implemented in
and forest South Gippsland council
clearance shire.
Table 1. Project Risks Identified for Public Infrastructure Project South Gippsland Highway
Source (Rafindadi et al., 2014)

Conclusion
In brief, South Gippsland Highway project offers a new section to connect Koonwarra and
Meeniyan routes. This project was offered to CPB contractors for delivery as per planned
requirements. Not many issues are identified in schedule or cost delays due to strategic
planning taken into consideration. Also, procurement options were designed and built
methods that provide the whole responsibility of delivery to CBP contractors respectively.
The summary of previous versions identifies that bidding processes should be more extended
with their processes including proposal selection. However, there could be risks associated
with construction activities for which mitigation techniques must be adopted. For example,
risks included political risks, lack of technical expertise, no financial capital, cost overrun,
and failed procurement. To remove this concern, the risk register showcases mitigation and
contingency planning which if risk appeared could be managed. Hence, the discussion and
findings state that a project becomes more successful if all important considerations related to
public infrastructure projects are undertaken.

6
Recommendations
After analyzing the project’s pertaining risks related to schedule delays, and cost overruns
some major recommendations are proposed in this section. Considering this is a mega
project, some research should be done for preparation in planning scheduling and cost
evaluation as well as management processes should be structured in construction (Al-Hazim
et al., 2017). Also, planning should be done by forecasting weather conditions to avoid any
unnecessary clash. The second recommendation is that project schedule management could
be done by project management agencies. They offer a competent planning team that is
accurate in developing the master plan and applying it in each stage from design
conceptualization to project closeout (Al-Keim, 2017).

The lack of proper information on environment and forest regulations as well as land or
ground conditions could also delay the schedule (Shrestha, Burns, and Shields, 2013). The
approvals must be sanctioned by locals and the government before proceeding is another
recommendation. Design changes in extensive projects will also increase the total cost of
implementation. For this reason, the recommendation will be the adoption of the integrated
project delivery (IPD) approach which increases collaborative decisions among stakeholders
at the project design’s early start (Durdyev et al., 2019). Henceforth, to overcome schedule
delays and overruns in the South Gippsland highway project, it is important to focus on
implementing extra efforts in the planning and construction stage.

7
References
Al-Hazim, N., Salem, Z. and Ahmad, H., 2017. Delay and Cost Overrun in Infrastructure
Projects in Jordan. Procedia Engineering, 182, pp.18-24.

Al-Keim, A., 2017. Strategies to reduce cost overruns and schedule delays in construction
projects (Doctoral dissertation, Walden University).

Beckers, F. and Stegemann, U., 2013. A risk-management approach to a successful

infrastructure project. [online] Available at: <https://www.mckinsey.com/business-
functions/operations/our-insights/a-risk-management-approach-to-a-successful-infrastructure-
project> [Accessed 24 August 2022].

Chen, Q., Jin, Z., Xia, B., Wu, P. and Skitmore, M., 2016. Time and Cost Performance of
Design–Build Projects. Journal of Construction Engineering and Management, 142(2).

CIMIC CBP Contractors, 2021. 2021-cimic-group-annual-report. cimic-group-annual-report.

[online] Queensland: CIMIC, pp.1-278. Available at: <https://cimicdigital-
cdn.azureedge.net/-/media/projects/cimic/group/publications/annual-reports/2021-cimic-
group-annual-report---10-february-2022.pdf?la=en> [Accessed 24 August 2022].

Durdyev, S., 2020. Review of construction journals on causes of project cost

overruns. Engineering, Construction and Architectural Management, 28(4), pp.1241-1260.

Ghamdamsi, A., 2016. Criteria for Selection of Design and Build Procurement
Method. Journal of Construction Management, pp.1-19.

Rafindadi, A., Mikić, M., Kovačić, I. and Cekić, Z., 2014. Global Perception of Sustainable
Construction Project Risks. Procedia - Social and Behavioral Sciences, 119, pp.456-465.

Rose, K., 2014. Personal Effectiveness in Project Management: Tools, Tips &amp; Strategies
to Improve your Decision-making, Motivation, Confidence, Risk-taking, Achievement, and
Sustainability. Project Management Journal, 45(2), pp.e1-e1.

Shrestha, P., Burns, L. and Shields, D., 2013. The magnitude of Construction Cost and
Schedule Overruns in Public Work Projects. Journal of Construction Engineering, 2013,
pp.1-9.

South Gippsland Shire Council, 2019. South Gippsland Shire Council Draft Road Safety
Strategy. Draft Road Safety Strategy. [online] Victoria: South Gippsland Shire Council.

8
Available at:
<http://file:///C:/Users/Admin/Downloads/Attachment_3.1.1_Draft_Road_Safety_Strategy__
_2019___2023_March_2019%20(1).pdf> [Accessed 24 August 2022].

Wibowo, M., Astana, N. and Rusdi, H., 2015. An analysis of bidding strategy, project
performance, and company performance relationship in construction. In: The 5th
International Conference of Euro Asia Civil Engineering Forum (EACEF-5). [online]
Indonesia: Procedia Engineering, pp.95 – 102. Available at:
<https://doi.org/10.1016/j.proeng.2015.11.015> [Accessed 24 August 2022].