Executing and Closing Projects - Part A

1 Project Information

Sydney CBS and South East Light Rail Project is a light rail line construction project. The construction of light rail line is started in 2015 and is expected to complete line 2 by December 2019 and line 3 by April 2020. Below are the details about the project and its current status as on July 30, 2018. (Anon., 2020)

Case Study (Project)

Sydney CBD and South East Light Rail Project (2014 - 2020)

WBS Codes

Main Tasks & Sub-Tasks

1

Setup Construction sites

2

Civil Works in CBD

2.1

Civil Works on George St

2.2

Civil Works on Eddy Av

3

Civil Works in Surry Hills

4

Civil Works on Moore Park branch

5

Civil Works on Randwick branch

5.1

Civil Works on Alison Rd

5.2

Civil Works on Wansey Rd

6

Civil Works on Kingsford branch

7

Installation of Electronic Systems

8

Construction of Platforms

9

Testing & Commissioning

(WBS codes have been assigned to the dummy tasks for assignment purpose only)

Project name: Sydney CBD and South East Light Rail

Status report date: June 30, 2018

Project ownership: ALTRAC Light Rail

Prepared by: Project Manager

Distribution list: Government, ALTRAC Light Rail, Steering Committee

2 Gantt Chart

Gantt Chart explains the time frame of the work break-down structure. The Gantt chart below explains the following about the timeline of various WBS:

  • WBS 1 and 2 should be completed by June 30, 2016.
  • WBS 3 and 4 should commence by July 1, 2016 and WBS 3 should be completed by June 30, 2017. WBS 4 should be completed by December 2017.
  • WBS 5.1 should commence from Jan 1, 2017 and complete on December 31, 2017 and WBS 5.2 should commence from Jan 1, 2018 and complete by December 31, 2018.
  • WBS 6 and 7 should commence from Jul 1, 2018 and complete by Dec December 31, 2019 and June 30,2019 respectively.
  • WBS 8 starts on Jul 1, 2018 and gets completed on Dec 31, 2019. WBS 9 starts on Jan 1, 2020 and ends on Jun 30, 2020.

Therefore, as on June 30, 2018, the project should have completed WBS 5.1 and should have commenced WBS 5.2.

WBS #s

Reporting Timelines

Jul-Dec 2015

Jan-Jun 2016

Jul-Dec 2016

Jan-Jun 2017

Jul-Dec 2017

Jan-Jun 2018

 

Jul-Dec 2018

Jan-Jun 2019

Jul-Dec 2019

Jan-Jun 2020

1

———————

                 

2

———————

                 

2.1

———

                   

2.2

 

——

                 

3

   

——————

             

4

   

——————————

           

5

     

————————————————

     

5.1

     

——————

           

5.2

         

————————

     

6

             

——————————

 

7

             

——————

   

8

                 

——

 

9

                   

———

3 Variance Analysis

Below is the table used for analysing the scheduled variance and the cost variance of the project as on June 30, 2018. I have explained the basic terms below:

  • PV (Planned Value): This refers to the budget assigned for a Work break-down structure (WBS).
  • EV (Earned Value): This refers to the proportionate of planned value for the work completed.
  • AC (Actual Cost): This is the actual cost incurred to till date.

WBS #s

Task Status

PV

EV

AC

Performance Index %

Schedule

Cost

1

Completed

30

30

30

100%

100%

2

Completed

200

200

240

100%

83.33%

2.1

Completed

150

150

180

100%

83.33%

2.2

Completed

50

50

60

100%

83.33%

3

Completed

100

100

90

100%

111.11%

4

Completed

70

70

75

100%

93.33%

5

In progress

210

165

255

78%

64.70%

5.1

Completed

150

150

180

100%

83.33%

5.2

In progress

60

15

75

25%

20.00%

6

Not started

250

0

0

   

7

Not started

50

0

0

   

8

Not started

100

0

0

   

9

Not started

100

0

0

   

Totals

 

1520

930

1185

61.18%

78.48%

Inference:

Scheduled Performance Index: The schedule performance index of WBS 1, 2, 3 and 4 is 100%. Therefore, it can be inferred that the cost of these tasks was completed as budgeted. The schedule performance index of WBS 5.2 is 25%. It means, the work completed is less than the budgeted plan. Hence, WBS 5.2 is lacking behind the schedule.

Cost Performance Index: The cost performance index of WBS 1 is 100%. It means the actual cost and budgeted cost are equal. The CPI of WBS 2 (including 2.1 and 2.2) is 83.3%. It means the planned value is 83.33% of the actual cost. The CPI of WBS 3 is 111.111%. This means the WBS 3’s actual cost was less than the projected cost. There was cost saving in this WBS.

The CPI of WBS 4 is 93.33% and WBS 5 is 64.70%. Again, in these two tasks the actual cost has shot up. To further break it down, WBS 5.2 has CPI of 20%. This is a main area where the company has incurred too much of cost when compared to its budgeted cost.

4 Estimate at Completion (EAC)

Estimate at Completion is calculated based on the assumption the project’s experience until now will be continued. Hence, the formula used would be as below:

EAC = BAC / CPI

BAC is the total planned value of the project and this stands at $1520 million.

The CPI is Earned value / Actual cost and this stands at 78.48%.

Therefore, the estimate at completion = 1520/78.48% = 1,936.80

The overbudget amount = EAC – BAC = $1,936.80 – $1,520 = $416.80million

The following can be the reasons for the cost overruns:

  • Poor contract management lead to increase in the actual costs. In case of this project, there was poor management of the contract and the contractor even went into legal issues. Thus, the costs could have increased.
  • The period between the project bidding and the project commencement had a period of more than a year. This could have lead to increase in prices of the material or labour. Hence, the cost overrun could be witnessed.
  • The other reason could be a poor budgeting. A poor budgeting would lead to inappropriate budget and thus the actual cost could be more than the budgeted cost.
  • The redundancies found on George street delayed the work by couple of months. The cost to clear these redundancies would have increased the cost of project.

As total cost may increase by $416million, there is a need for re-baselining. The baseline being the planned value, this has to be restated with the proper approval from the required team.

5 To-Complete Performance Index (TCPI)

The formula to calculate the To-Complete Performance Index (TCPI) when BAC is invalid is stated below:

TCPI = (BAC – EV) / (EAC – AC)

TCPI = (1,520 – 930) / (1,936.80 – 1185)

TCPI = 590 / 751.8

TCPI = 0.7848

6 Cost Summary

Here is the summary of Cost:

Total planned value = $1520 Million

Total Earned Value as on June 30, 2018 = $930 Million

Total Actual Cost as on June 30, 2018 = $1185 Million

Estimate at Completion = $1,936.80 Million

Over Budget Cost = $416.80million

7 Forecast Completion Date

Forecast Completion Date = Total Duration of the project / SPI

Total duration of the project = (June 30, 2020 – July 1, 2015) / 61.18%

Total duration of the project = 1826/61.18%

Forecast completion date = 2985

Forecast completion date = June 30, 2020 + 1158 days

Forecast completion date = September 1, 2023.

Re-baselining the project is necessary in this case as the project that was scheduled to be completed in mid-2020 is now extended till mid on 2023. This will increase the costs and the entire project would be off the track if the rebaselining is not done. Hence, we would want the approval from the required team for the rebase lining the project.

8 Milestone Report

Milestone Task

Scheduled Completion

Projected Completion

Actual Completion

Issues

1

June 30, 2016

June 30, 2016

June 30, 2016

This WBS was completed as per the schedule.

2

June 30, 2016

June 30, 2016

Sep 11, 2016

The redundant utilities found in Gorge Street caused a major delay at this stage of the project.

(Hawke, 2016)

3

June 30, 2017

June 30, 2017

May 24, 2017

This WBS was completed well ahead of the target.

4

Dec 31, 2017

Dec 31, 2017

Feb 08, 2017

The tunnel construction in Moore park junction took little more time than the estimated one.

5

Dec 31, 2017

Sep 13, 2019

Feb 01, 2020

The legal claims between New South Wales Government and Acciona Infrastructure

(Anon., 2020)

6, …

   

Not started

 
         

Executing and Closing Projects - Part B

1. Project Information

Project name: Sydney CBD and South East Light Rail project

Date: June 30, 2018

Project ownership: ALTRAC

Prepared by: Project Manager

Distribution list: List of those receiving the report, their positions and role in the project.

2. Establish the Need for An Exception Report

This exception report is related to the project Sydney CBD and South East Light Rail Project. The project was supposedly completed on June 30, 2020. But, because of various reasons, the team is not able to complete the project on the scheduled date. The forecasted completion date stands at September 21, 2023. This means, the project may take 1,158 more days than the estimated due date to get completed, this is little more than 3 years of project extension.

The tolerance provided by the team is +/- 12 weeks, that is approximately 84 days. Hence, it can be concluded that the project completion date deviation is lot more than the tolerant value.

This gives us the provision to compile the over the schedule exception report to the concerned authority. If this known deviation is not reported at the earliest, the Government, the contractor company and the general public will be affected with this project. We seek for the guidance on this issue from the higher authority as well as we give the suggestions for team to manage this behind-schedule project.

We henceforth, present this exception report to the concerned person for a better understanding about the reasons for the behind schedule project, recommendations and the lessons that is learnt from the same.

3. Exception Report

3.1 Exception title

 

 

Behind the Schedule Exception Report of Sydney CBD and South East Light Rail project

3.2 Cause of the exception

The major cause of the exception is listed below:

· The redundancies were found in George Street that took the team almost 5 extra months to clear.

(Hawke, 2016)

· Legal action was commenced against by Acciona seeking additional payments.

(Anon., 2020)

3.3 Consequences of the deviation

It is important to address the deviation. If this is not addressed the following would be the implications:

3.3.1 The project:

- If this deviation and the reasons for the deviation is not addressed for, the major key performance indicators would lack its value.

- This is the way to prepare the public and the government for the delay. This can also cause the increase in the labour cost.

- The project extension can lead to increase in the cost of material due to the time factor of money.

3.3.2 The corporate, programme management or the customer

- The customer/public will face the irritation of the construction for few more months than expected. Hence, it is necessary to keep them informed.

- The Government would be answerable for everyone for the project delay and also for the increased cost of the project. Hence, it is important to keep them informed and to seek the advice to overcome the same.

3.4 Options

 

 

 

 

The following options are available to manage this delay of project completion:

- Going forward speeding up the work in all possible stages by deploying the labour for 24/7.

- Accepting the reality of the delay and getting set for bearing the increased cost.

3.5 Recommendation

 

The most feasible option would be speeding up the work in all possible stages by deploying the labour for 24/7. Though this would not make the project to be completed as per the pre-decided timeline, it will at least not take three extra years to complete.

In this way, the Construction company can retain its name and the blame on the Government for the project delay by the public would be reduced.

3.6 Lessons

 

1. During such projects, we can come across unforeseen problems like that happened in this case by finding the redundancies. Hence, it is necessary to make sufficient provision for such unforeseen problems while planning for the project.

2. Preparing a comprehensive terms and conditions document would reduce the legal consequences during the project period.

9 References for Sydney CBD and South East Light Rail Project Analysis

Anon., 2020. Wikipedia. [Online]
Available at: https://en.wikipedia.org/wiki/CBD_and_South_East_Light_Rail#Delays
[Accessed 30 August 2020].

Hawke, S., 2016. ABC. [Online]
Available at: https://www.abc.net.au/news/2016-08-09/light-rail-construction-to-cause-sydney-cbd-delays/7704766?WT.ac=localnews_sydney
[Accessed 29 Aug 2020].

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

My Assignment Services- Whatsapp Tap to ChatGet instant assignment help

Hire Certified Experts
Ask your Question
Need Assistance on your
existing assignment order?

We care

MyAssignmentServices uses cookies to deliver the best experience possible.
My Assignment Services acknowledges the academic integrity guidelines prescribed as per Australian Universities to ensure that the services, sample material, and study resources available on our website, in no way are utilised to commit academic misconduct of any type. All users of our services must adhere to and affirm acceptance of all conditions elucidated in our policy document on academic integrity.

Please accept and affirm the following to be able to continue exploring our website and services: I agree to NOT use any educational material, study resources, assignment samples, online mentoring services, available on the web domain www.myassignmentservices.com and all its subdomains to commit any academic misconduct. I have read and been made fully aware of the academic integrity policy of My Assignment Services and by clicking on the button below, I am in principle, wilfully and legally bound to adhere to guidelines of the academic integrity policy in whole and in part.
View Cookies policy | How we ensure Academic Integrity?