CSM80006 Engineering Project Management Assessment Answer

Cost of Excavation

The trench is 0.5 meters wide and 1 meters deep overall, with a rectangular cross-section. The previous estimate results in a total volume of 1,025 cubic meters of loose soil that needs to be removed.

It is stated that it will cost $45 per cubic meter to remove and dispose of the excavated soil. Therefore, the price of the excavation will be:

Excavation Cost = Total Volume × Cost per Cubic Meter × $45 × 1,025 m3

= $46,125

Pipe Costs

The price per unit for 200 mm diameter pipe is listed as $50 per meter length, which includes a 5% wastage. We must take the length of the pipeline into account when determining the pipe's overall cost:

The pipe's length is 2,000 meters.

The pipe's actual length will be as follows, taking 5% waste into account:

Effective Length is calculated as follows: Effective Length = Pipeline Length + (5% of Pipeline Length)

= 2,000 m + (5/100) 2,000 m

= 2,000 m + 100 m

= 2,100 meters

Now that the pipe cost has been calculated:

Pipe Cost = Effective Length Cost per meter length ($50) ×2,100

= $105,000.

Bedding Material and Backfill Subcontract Cost

The subcontract cost for supplying bedding material and backfill in the trench is listed at $35 per meter of trench length. Since the trench and pipeline lengths are equal, it is possible to determine the subcontract cost directly:

Subcontract Cost = Length of Pipeline x Trench Cost ($35/m)

= 2,000 m × $35

= $70,000

From the above calculations, the updated base cost estimate for the building of the 2-kilometer pipeline is obtained by adding the costs for excavation, pipes, and subcontracts:

Base Cost Estimate = Excavation Cost + Pipe Cost + Subcontract Cost

= $46,125 + $105,000 + 70,000

= $221,125

Consideration should be taken into account for the salary of the staff, equipment charges, waste disposal charges, indirect overhead costs, and profit margin in order to calculate the construction cost of the project and the base cost estimate for the client. The costs are broken down as follows:

Pay for Personnel

Supervisor: 270 dollars per shift

$230 per shift for two machine operators.

$300 for three shifts of labor

The total daily wages for the staff, assuming two shifts, will be:

Total Personnel Wages = Supervisor's Wage + Laborers' Wage + Machine Operators' Wage Shifts

= ($270 + (2 × A$230) + (3 × A$200)) × 2 =

= (A$270 + A$460 + A$600) × 2

= A$1,330 × 2

= A$2,660

Charges for Equipment

Excavator: A$900 for each shift.

A$600 per shift for gratuities

UTE: A$250 for each shift

The daily total equipment costs, assuming two shifts, will be:

Excavator, Tipper, and UTE Fees

Add Together for Total Equipment Fees

= (A$900 + A$600 + A$250) x 2

= A$1,750 × 2

= A$3,500.

Waste Disposal Fee:

The waste disposal fee is listed as A$2,500 (lump payment) for wastes such as pipe and other wastes.

Costs of Indirect Overhead:

$10,000 is the total cost of indirect overhead for the project.

Profit Margin:

A 5% profit margin is estimated for the construction contractor.

In order to determine the construction cost:

Construction costs are calculated as follows: Total Personnel Wages = Total Equipment Charges + Total Waste Disposal Charge + Indirect Overhead Costs

= A$ 2,660 + A$ 3,500 + A$ 2,500 + A$ 10,000

= A$ 19,660 + A$ 6,000

= A$ 25,660

To determine the cost of construction so far, it is important to multiply the building cost by the profit margin to arrive at the client's base cost estimate:

Base Cost Estimate for the Client = (Construction Cost Profit Margin)

= A$25,660 + 5% × A$25,660

= A$25,660 + A$1,283

= A$26,943

The basic cost estimate for the client is A$26,943, and the construction cost of the project is A$25,660.

Base Cost Estimate for the Client: Base Cost Estimate for the Client in A$ = Client's costs * Exchange Rate

= $5,000 * 1.35

= A$6,750

Therefore, the construction cost of the project is A$26,943, and the base cost estimate for the client is A$6,750

In Brief;

Personnel wages: Supervisor (A$270 per shift)

Machine Operators (A$230 per shift, 2 operators)

Labours (A$200 per shift, 3 labours)

Equipment charges: Excavator (A$900 per shift), Tipper (A$600 per shift), UTE (A$250 per shift)

Waste disposal charge: A$2,500

Indirect overhead costs: $10,000

Profit margin: 5%

Client's costs: $5,000

Base Cost Estimate for the Client = Construction Cost - (Profit Margin × Construction Cost)

= A$25,660 – (5% × A$25,660)

= A$25,660 - A$1,283

= A$ 24,377

Taking the percentage of the base cost estimate and add it to the project estimate to account for risks and contingencies. This can be used to determine the project estimate using the formula below by allowing 8.5% of the base estimate for risks and contingencies.

Risks and Contingencies = 8.5% of the base cost estimate

Base Cost Estimate + Risks and Contingencies = Base Cost Estimate + 8.5/100

= Project Estimate. Base Cost Estimate is Base Cost Estimate times (1 + 8.5/100).

We can now determine the project estimate using the A$6,750 base cost estimate that was previously calculated for the client:

Project Estimate = A$6,750 × (1 + 8.5% of 100)

= A$ 6,750 × (0.085)

= A$ 6,750 × 1.085

= A$ 7,332.75

Therefore, the project estimate is roughly A$ 7,332.75, taking 8.5% into account for risks and contingencies.

Cost of Excavation: $46,125 is the anticipated cost of excavating to remove the loose soil from the trench.

Pipe Costs: With a 5% wastage rate, the cost of the 200mm diameter pipe that will be installed in the project comes to $105,000.

Subcontract Cost for Bedding Material and Backfill: The trench's bedding material and backfill will cost $70,000.

Payroll: The daily salary for the project's staff, which consists of a supervisor, two machine operators, and three workers who work two shifts each day, is $2,660.

Equipment Costs: The cost to use equipment such an excavator, tipper, and UTE is $3,500 per day.

Fee for Waste Disposal: $2,500 is needed to remove and dispose of the excavated soil and other wastes.

Indirect Overhead Costs: The total indirect overhead costs for the project are $10,000.

Profit Margin: A 5% profit margin is added to the construction cost.

Recommendations and considerations for the project;

Considering the following suggestions to handle the project successfully:

1. Clearly identify the project's parameters, such as its size, materials, and requirements.
2. To evaluate risks related to excavation, pipe installation, labor, equipment, and other project-specific elements, create a thorough risk management plan.
3. Pick a dependable builder with a history of efficient pipeline construction initiatives.
4. Create a realistic project schedule that includes frequent checks and monitoring of the progress.
5. Put in place a thorough quality assurance plan to guarantee that construction operations follow necessary standards and requirements.
6. Create efficient routes of communication between all parties involved, such as clients, contractors, subcontractors, and authorities.
7. Follow environmental laws and best practices when excavating, disposing of, and handling garbage.
8. Include allowances and contingency reserves in the project budget to guard against any cost and schedule overruns.
9. Maintain correct records, such as contracts, licenses, bills, and reports.
10. Engage the neighborhood and the authorities to handle issues, get permission, and guarantee a smooth construction process.

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