Question

Based on the information below, please write a conclusion paragraph and also a 1 to 2 paragraphs on recommendations for the objectives below.

Overview: In responding to a Request for Proposal (RFP), XYZ Contractor is preparing a lump sum price proposal for digging an underground hole with specifications below. • 10m x 10m x 5m - Concept Design • No geotechnical data, assume 80% soil, 20% rock • Productivity rate in soil: 20m3/d 10m • Productivity rate in rock: 10m3/d 10m Excavator: $2000/d • Labor: $500/d 5m • Overhead including profit: $200/d • Additional assumptions can be made, if needed. Objectives: As part of their submission, XYZ Contractor should assess risks, uncertainties and required contingencies. You are working with XYZ Contractor and should support the team to: • explain and develop the Risk Matrix (4 X 4) with three levels of risk scores, i.e. Low, Medium and High • explain and develop the Consequence Table for 'cost', 'time' and WHS impacts • explain and develop the Likelihood Table • explain and develop the escalation table • explain how these tools should be used effectively to identify, analyse and evaluate risks • use the developed tools to assess top 10 risks, and • assess required time and cost contingency

Answer 1

Conclusion:

• From the overview it can be concluded that in the conceptual design when the geo-technical data is not given the accurate estimate can not be properly given so the lump sum method is adopted.In this method the productivity rate for both the soil and the rock are good as 20m³/day and 10m³/day respectively.To increase the profit the full use of the excavator should be done in both the shifts as the rent is so high.

Recommendation of the objectives:

• A risk assessment matrix helps to evaluate and prioritize risks that are based on the impact and likelihood to occur.
• Risk management strategies are dependent to gather background data, calculating likelihood and severity and outlining risk prevention.
• There are some important tools useful in the risk management like SWOT(Strength, weakness,opportunities,threats). Risk register is a tool that can be as simple as a spreadsheet or as a dynamic as a project management software.
• Probability and Impact Matrix is another tool for the project managers which helps prioritize risk which you don't want to waste your time chasing small risks and waste available resources.
• Risk data quality assessment is a technique which is collated for the risks which have been identified.It help to understand accuracy, quality and integrity of the risk as related to the collected data about it.