Project Execution and Control

ProjectExecution and Control

1.Contracting for Engineering and Construction Services

PartA

Threecontracting alternatives were open to Woody. They includeddesign-bid-build (DBB) method, design-bid (DB) method and low-bid(LB) requirement (Wideman, 2015b). The design-bid-build (DBB) is themost basic contracting method which works in a situation where thereis clarity of the deliverables with a low probability of the riskoccurring. The main purpose or intent of this contracting method isto create a clear competitive environment free from problems,collusion, and corruption and or bid rigging. It also has an aim ofproviding taxpayers with the lowest price competitive bidders have tooffer. Despite the advantages of DBB, it is time-consuming andcostly.

Thesecond contracting method that could be available to Woody’s is thedesign-bid approach. Here, cost estimates are done when the designengineering is 100%, then bidding is done with design engineering isfrom 10% to 30%, making the estimates of costs more uncertain. Thismethod is similar to DBB, but in DB, not all projects have beensuccessful. This method is full of uncertainty and it states that adesign-builder will build what is required and not what is necessary(Wideman, 2015b). This results in huge wastage of resources and time.A large cost is also incurred when building the design.

Lastly,the low bid requirement is where Woody’s would choose thecontractor with the lowest cost on the assumption that low cost wouldcreate the best value. The best alternative for Woody’s would bethe low bid requirement since the company has been incurring hugecosts (Wideman, 2015b). It could also be used to eliminateunnecessary costs in the corporation.

PartB

Thecontract should be tendered through a government tender and thelowest bidder should be picked.PartC

Thetenders should be administered in the region where Woody’s wouldlike to build by asking those interested to send their bids viaemail.Part D

Theoriginal Woody 2000 project requirements were not delivered.2.Communication and People Management

PartA: Project Organizational Chart

Theabove organizational chart represents Woody’s business (Wideman,2015b). The chart shows that those who held the top managementposition are from the same family, as their second name-Carpenter,indicates that they are related.

PartB

IanLeadbetter should not have been left to run the project. Trainingwould perhaps not have helped.

PartC

TheWoody 2000 project plan should have been communicated using thetop-down approach at the planning stage.

PartD

Duringthe execution stage, I would expect communication such as if theproject is successful and what needs to be changed to make itsuccessful.3.Progress Monitoring and Control

PartA

Agood baseline plan would have helped to make up time since planningis an essential requirement in any project.

PartB: Responsibility Chart for Effective Control

Role

Responsibilities

Woody`s Project manager

Ian Leadbetter

Managing the Woody project.

EID Consultants

Randy Schemers

Offered consulting services to EID.

EID property developers &amp contractors

Alfred Fowler

Directed EID developers and contractors, delegated work to them and controlled what they did.

EID project manage

Invar Kantar

Managed the Expert Industrial Developers.

I. Beam Construction Ltd. fabricators &amp installers

Dave Rivet

Offered steel fabricators and installers.

Classic cladding Co. cladding &amp roofing contractors

Bert Leakey

Offered roofing services for the Woody project.

I. C. Rain Ltd. waterproofing contractors

Charlie Droppe

Offered waterproofing services that were required by the Woody project.

Tin knockers Associates mechanical contractors

Amos Dent

Offered mechanical services that were required by the Woody project.

Zapp Electic Co. electrical contractors

Olaf Volta

Offered electrical services that were required by the Woody project.

Piecemeal Corporation equipment suppliers

Eddie Forgot

Supplied the Woody project with equipment.

Project management consultants

Win Easley

Offered consulting services on the entire management of the Woody project.

PartC

IfI saw that the project would not meet its schedule, I would crash theproject (Wideman, 2015b). Crashing of the project would minimize theproject time and at the same time increase the costs.PartD

Therecords that should have been kept are the time for the project, thecosts incurred and the critical paths.4.Cost Control

PartA

ExpertIndustrial Developers (EID) had prominence in the industry as well astheir work. The main reason why their prices were so high is thatthey felt that Woody’s business was full of uncertainties (Wideman,2015b). They, therefore, felt that the Woody business wouldincur any cost to ascertain their expected cash flows from theirongoing project. The main reason that the price was so high isbecause the cost of the project was also high. EID’s position wasreasonable since as the cost of project increases, the price to bepaid to the contractor must also increase.

PartB

Woodyknew that they were in trouble with over expenditure two years afterthey first launched the project. The main reason for over expenditurewas that the Woody hasn’t planned for the execution of the project(Wideman, 2015b). The result was that the costs started to increase.These costs included the costs of delays in the completion of theproject, which were charged to Woody’s account. As a result, theproject became a reality when the actual expenses exceeded thebudget. Afterward, Woody was incapable of controlling the project,which made it to diminish rapidly.

PartC

Forcost control purposes, the actual expenditures should not exceed thebudget set (Wideman, 2015b). The unnecessary costs and those, thatcan be controlled, would, therefore, need to be scrapped out to makethe actual expenses lower than the budgeted expenses.

PartD: Flowchart for Processing Changes

5.Risk Identification and Management

PartA

TheExpert Industrial Developers (EID) handled their risks byimplementing an internal control system such that costs would not beincurred without being approved for (Wideman, 2015b). However, themeans used were not effective in controlling risks since Woody’sbusiness still had much expenditures. The company might haveeliminated those costs, which were deemed unnecessary, and hose,which could have been controlled and eliminated.

PartB

Theactual surprises in Woody’s business were, that the ExpertIndustrial Developers (EID) charged them a high price for thecompletion of their project (Wideman, 2015b). Another surprise wouldhave been the fact that they had an over expenditure, that is, themoney used was higher than the budgeted figure. To prepare for andrespond to these surprises, Woody’s business should have done somehedging such as borrowing a loan to cater for the project.

PartC

Therewere definitely some changes in the project. The impact of this wasthat the project was diminished abruptly.

Conclusion

Woody’sbusiness was a project that incurred a lot of expenditures. Themanagement employed the Expert Industrial Developers (EID) to takecare of that. However, it was evident that the controls they put inplace were not enough to minimize the expenditures. Due to this, theproject came to a halt. Woody’s business was surprised that the EIDhad charged them a huge price on consultation and management of theproject. They were also surprised that the person whom they trustedin their business, is the one who led to its failure. To finalize,the management of the Woody’s business should have done somehedging by borrowing a loan to cover the expenditures thus minimizingthe budget deficiency.

References

Wideman,M. (2015b). Projectmanagement case study:The Custom Woodworking Company, Woody 2000 project. RetrievedNovember 7, 2016from&nbsphttp://www.maxwideman.com/papers/woody2000/intro.htm