Team Assignment 2 - Project Controls, Team 5.

Table of Contents

CVE30004: Cost Engineering 1

Assignment Cover Sheet 2
Irregularities and Plagiarism 3
Executive Summary 5
Figure 1.1: Progress Summary Table 5
Figure 1.2: Project Cost Report 5
Allowances 6
Contingencies 6
Forecast & Stratergies 6
Minimise risk and Maximum Profits 6
Figure 1.3: Project Progress Chart 7

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Team Assignment 2 - Project Controls, Team 5.5

Executive Summary

The Warehouse Rentals Pty Ltd project is currently in week 23 of the schedule and has suffered a 3-week delay due
to several factors, which includes a 3-week closure of manufacturer due to covid 19 and a 5-week delivery
extension, There was a 3-week delay in plumbing due to rain and a 1-week delay in construction due to Covid 19.
More effort has been expended in order to accelerate the job to cover up for the lost weeks which have been
successful in some tasks including In-situ concrete works for the warehouse. To date, the project has been at 81%
completion with the remainder of the works mostly external works. All these works will need to be completed in the
next 9 weeks in order to meet the project planned completion date on 7th of November.

The current cost performance index to date is 0.98, as shown in the progress summary table. This shows a budget
overrun in the project. Contributing factors to this include an increase in the price for precast concrete panels and
sheet piling works overlooked in the design. The total cost overrun for this case is $55, 857.

Figure 1.1: Progress Summary Table

Figure 1.2: Project Cost Report

A graphical visualisation of the project performance to date and forecast to completion is shown in Figure 1.3 below.
As can be seen from the graph, the project has been facing delays in its schedule early on. Based on the current
schedule performance index of 0.81, the project has been forecasted to be completed on time and over budget.

Variations approved by clients

● $35,000 price increase due to rain delays for Aiton plumbing
● $43,000 incurred due to overlook design during tender stage
● $21,800 for discovery of fuel tank, resulting in 3 weeks delay
● $51,719 price increase for precast material due to material price increase

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Team Assignment 2 - Project Controls, Team 5.5

Allowances - Works occurred during the wettest time of the year, therefore we have allowed $50,000 for 5 days for
the potential delay. The project may not finish in time and go over the handover date. The allowance for this is
$100,000 for 2 working weeks. Due to COVID-19 in a neighbouring suburb, we have allowed $15,000 for potential
one week site shut down. We allowed $3,500 for an access scaffold stairs in a scenario that the subcontract does not
have one.

Contingencies - One of the major contingencies is the loss of rent if there are any delays. We have allocated
$60,000 as the maximum value with a 40% probability that it might happen. We have allocated $7,000 for other
contingencies such as COVID-19 and materials getting stolen.

Forecast & Stratergies - The forecasted completion date is 7th November. Strategies implemented to to make up
for lost work are to schedule overtime work, increase crew size, reduce time for roof sheeting installation by
increasing the production rate for this activity, and run multiple activities simultaneously. Also, we can tackle a
proactive approach by training crew members to perform their tasks more efficiently and effectively minimising
rework.

As seen in the deviation below, our forecast profit is $363,374.68.

Minimise risk and Maximum Profits

● Provide masks and RAT tests for all personnel on site to prevent spread of COVID, as COVID is a major
threat to project delays
● To comply with safety standards, all staff are equipped with the newest innovative technology.
● Pay the precast subcontractor for the agreed price, not the increased price.
● Follow the timeline to not go over the handover date resulting in liquidated damage.
● Negotiate with the subcontractor for $43,800 due to overlooking details of the drawing to pay half the cost,
as it was not present in the design phase, thus it is not our fault.

Figure 1.3: Project Progress Chart

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