CSM80009 ASSIGNMENT From Part 1, answer any ONE full question

This individual assignment in CSM80009 unit is for 20% weighting, which includes 2 parts
(each worth 10%). You should answer 2 questions as per instructions in each part – i.e. any
one from Part A (10 marks) + all from Part B (10 marks).
The due date for this Assignment is end of Week 9 (5 October 2018, 5PM).
You are required to submit your assignments by email to: mkannimuthu@swin.edu.au
Optional: You may consult with Palaneeswaran Ekambaram at his office ATC738 on
Wednesdays (10AM to 12Noon) for your queries and basic feedback.
CSM80009 INDIVIDUAL ASSIGNMENT (SEMESTER 2, 2018)
CSM80009 ASSIGNMENT (2018) (20% WEIGHTING)
1
CSM80009 Assignment (2018)

PART 1 (10% WEIGHTING)
From Part 1, answer any ONE full question (including its subparts)
Question 1 of Part 1 Note: You should answer either (i) OR (ii) in this Question 1
1. Provide a risk assessment report for the ageing infrastructure in (i) a
transport sector OR (ii) a manufacturing industry. Also, discuss your
suggestions for the maintenance of chosen ageing infrastructure asset.
Hint: Following references may be useful to supplement your answers:
(a) https://www.essaybishop.com/write-my-essay/dhs.gov/xlibrary/assets/st-aging-infrastructure-issues-research-technology.pdf;
(b) http://infrastructureaustralia.gov.au/policy-publications/publications/files/Australian-Infrastructure-AuditVolume-1.pdf;

(c) https://infrastructure.gov.au/infrastructure/publications/files/Trends_Infrastructure_and_Transport_to_2030.pdf;
(d) https://www.oracle.com/webfolder/s/delivery_production/docs/FY15h1/doc15/Benchmarking-ToolInfographic.pdf
Question 2 of Part 1 Note: You should answer both (i) AND (ii) in this Question 2
2. (i) By assuming procurement/ project delivery for a major infrastructure
project (e.g. energy or roads or water) in a particular region, prepare your
risk assessment report and ‘Bowtie risk analysis’ for any one of following
scenarios: (a) The main contractor becomes insolvent e.g. after 65% of project
deliverables/ milestones have been completed; OR (b) A major specialist subcontractor
becomes insolvent during a critical stage of project delivery;
AND
(ii) Assume that your organization is planning for transformation by
adopting novel/ disruptive technologies to enhance competitive
advantages. You are required to prepare a SWOT (i.e. Strengths,
Weaknesses, Opportunities, and Threats) analysis report for any one of
following: (a) Autonomous Robots; OR (b) 3D Printing; OR (c) LIFI and Visible
Light Communication (VLC); OR (d) Unmanned Aerial Vehicle (UAV).
INDIVIDUAL
WORK
Part 1: any 1 question
Part 2: all questions
2
PART 2 (10% WEIGHTING)
Answer ALL questions in this part (including its subparts)
Question 1 of Part 2
Consider a Hospital complex construction project in Queensland. In the initial risk planning for project costing, the project
risks are clustered into following components:
(a) excavation and ground water infiltration risks;
(b) geotechnical risks for foundation and other substructure construction (i.e. affected by eventual
geotechnical conditions);
(c) weather related risks for superstructure construction (excluding finishes);
(d) risks related to interior and exterior finishes (mainly by means of rework and changes);
(e) labour union problems during the project delivery
(f) inflation risks (i.e. with respect to economy growth and central/reserve bank rates);
The estimators/ cost planners are asked to think of 3 scenarios (i.e. best, most likely and worst case) for each
‘clustered’ component, attributing a probability and value to each scenario. The combined probabilities of all
those scenarios for each component must add up to 100% (as they are mutually exclusive scenarios which
cannot occur together). Specific details are in the following table.
Optimistic Most likely Pessimistic
Excavation and
ground water
infiltration
Risks
Scenario
Outcome
Probability
No possibility of
groundwater table raise
and ground water
infiltration
$10,000
0.15
Raise of
groundwater
table in rainy
season
$80,000
0.5
Serious groundwater
infiltration requiring
dewatering, etc.
$100,000
0.35
Geotechnical
risks of
substructure
Scenario
Outcome
Probability
No rock found
$200,000
0.25
Boulders
found
$650,000
0.4
Solid rock found
$900,000
0.35
Weather
related risks of
superstructure
construction
Scenario
Outcome
Probability
Does not rain for whole
contract
$100,000
0.25
Rains for 15
days
$200,000
0.45
Rains for 45 days
$400,000
0.3
Interior and
Exterior
finishes
Scenario
Outcome
Probability
No rework and changes
$100,000
0.3
Some rework
and changes
$150,000
0.3
Several rework and
changes
$200,000
0.4
Labour union
problems
Scenario
Outcome
Probability
No problems during this
project
$5,000
0.33
Some minor
problems
$50,000
0.34
Few major problems
during this project
$250,000
Inflation Scenario
Outcome
Probability
Reserve Bank keeps rates
on hold
4.5%
0.25
Economy
grows &
Reserve Bank
increases by
one base
point
6.5%
0.55
Economy booms &
Reserve Bank
increases 2 points
8%
0.2
Prepare a risk management report based on the expected monetary value (EMV) in this project
3
Question 2 of Part 2
3. In a public sector procurement, the client opted for Design-Build-Maintain (DBM) integrated single point of
responsibility arrangement and decided to select the DBM contractor through a ‘best value’ procurement
process including “price + non-price” assessments and time value adjustments for the “Design-Build” (DB)
part. The requisite responsibility for maintenance (M) by the DBM contractors is 10 years after completion of
DB part. Six organisations have been prequalified in this project.
The client’s ‘best value’ selection is based on following formula:
Selection score of a contractor’s DBM proposal = [(Price quoted by that contractor for DB + Price proposed by that
contractor for M) + ‘Time value’ penalty adjustment for DB component]/ [(Technical score of that contractor’s
DB component + Technical score of that contractor’s M proposal)]
The prequalified contractor with lowest ‘selection score’ will be selected as the ‘Best Value’ DBM proposer
in this procurement. The client estimate for time of DB component is 365 days. For each extra day
exceeding client estimate, the time value adjustment per day of DB = $220,000. (For example, if a
contractor proposal require 367 days, time value penalty adjustmentfor DB = $440,000; if a contractor
submits DB for 360 days, the time value penalty adjustment = 0).
Following table summarizes details of four prequalified Design-Build contractors in this project:
Prequalified
DBM
contractor
Technical
proposal
score for
the DB
component
Price proposal
for the DB
component
($)
Time
required
for the DB
component
(days)
Price proposal
for the M
component
($ per year)
Technical
proposal score
for the M
component
Alpha 76.9 2,940,000 369 150,000 80.5
Beta 79.5 3,060,000 335 160,000 76.8
Gamma 68.7 2,880,000 385 125,000 84.3
Delta 84.2 3,900,000 394 175,000 88.8
Theta 78.5 3,850,000 357 160,000 83.1
Rho 80.0 3,000,000 365 140,000 80.0
(i) Select a best value DBM contractor in this public sector procurement exercise.
(ii) Discuss your strategy if you would consider a “Best and Final Offer” process for suitable competitive
negotiations in this procurement.