BUSM 3077 Construction Project Management Assessment

Tasks 1:

The project manager will use earned value management (EVM) to track the project's progress.

Question 1.1: Use EVM to track the project's progress and calculate the following metrics (table 1):

• Planned value (PV)
• Earned value (EV) – calculate based on the % completion
• Actual cost (AC) – make reasonable assumption of the actual cost yourself
• Schedule variance (SV)
• Cost variance (CV)
• Schedule performance index (SPI)
• Cost performance index (CPI)

Question 1.2: Analyse the EVM data to identify any schedule or cost variances, and recommend corrective actions if necessary.

Table 1: EVM analysis

Task 2

There are some challenges of above project at the initial stage:

The site is in a densely populated area and is prone to traffic congestion, which may impact the delivery of materials and equipment. The project timeline is tight, with a deadline of 18 months from the start of construction to completion. The project budget is limited and cost overruns must be avoided.

Question 2.1: please advise the procurement method could be used for delivering this project with clarification

Question 2.2: please select a tender process of selecting a contractor for this project (include steps)

Task 3

As an assistant project manager specializing in risk management, you are consulted about whether to invest $150 million to build a new commercial building or to instead invest only $80 million to upgrade the existing building. The market demand for the building is uncertain. Based on a recent market study, there are (*)%, (*)%, and (*)% probabilities of a strong, medium, and weak market demand, respectively, for the building. A strong demand leads to $250 million revenue with the new building but only $130 million for the upgraded building due to its limited capacity. A medium demand brings $180 million revenue with the new building but only $80 million for the upgraded building. Further, a weak demand only brings $60 million and $120 million revenue with the upgraded building and the new building, respectively.

* Each student chooses a percentage of probabilities yourself of the three market demands

Use the decision tree analysis technique to help make the decision.