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Texas Ring Road

Phase 1: Report

EngM 530
Presented by:
Sam Tseung (1394850)
Prashant Nundloll (1414257)
Devin Prazak (1291870)
Naveed Pirzado (1488955)
Navy Kaur (1423984)

Table of Contents
1. Initiation Phase .................................................................................................................... 3
A. Business Case................................................................................................................... 3
Introduction ..................................................................................................................... 3
Business Objective ............................................................................................................ 4
Statement on Current Situation ........................................................................................ 5
Critical Assumptions and Constraints ............................................................................... 6
Analysis of Option and Recommendation .......................................................................... 6
Project Requirements ....................................................................................................... 7
Budget Estimate and Financial Analysis ........................................................................... 7
Schedule Estimate............................................................................................................. 7
Potential Risks .................................................................................................................. 8
B. Kickoff Meeting ............................................................................................................... 8
Project Kickoff Activity Checklist ..................................................................................... 8
Kickoff Meeting Agenda ................................................................................................... 9
Team and Stakeholder Communication Plan .................................................................... 9
2. Planning Phase ................................................................................................................... 10
A. Project Scope Management ........................................................................................... 10
B. Project Charter ............................................................................................................. 11
C. Table 1: Roles and Responsibilities................................................................................ 13
D. Collect Requirements .................................................................................................... 14
E. Table 2: Requirements Traceability Matrix ................................................................... 14
F. Project Scope Statement ................................................................................................ 18
G. Work Breakdown Structure Flow Chart ........................................................................ 19
H. WBS Index .................................................................................................................... 20
Table 3: Work Breakdown Structure Dictionary ........................................................... 21
I. Project Time Management .............................................................................................. 24
References ............................................................................................................................. 25
Appendix A: Project Schedule................................................................................................ 26

1. Initiation Phase
This phase contains information on introduction, project objective, statement on current
situation, critical assumptions, options, recommendations, project requirements, financial
analysis, schedule estimate, and potential risks.

A. Business Case
Introduction
The Texas Ring Road project is the construction of a ring road in Texas to address traffic safety
and commuter traffic issues in Texas downtown area. Since the early 2000s, the lack of
highways to accommodate commuters residing in Texas, as well as commuters travelling via
Texas, to nearby cities has caused heavy traffic congestions inside the city. The objective for
this ring road is to divert this traffic around the edge of the city, essentially having one highway
connected between an incoming and outgoing peripheral highway. This Texas Ring Road will
not only solve traffic congestions for commuters incoming and outgoing the city but will also
serve to help revitalize the economic downturn with job creation. An estimated 10,000 jobs
will be created through the construction of this highway. There will also be spin-off benefits to
businesses located near the highway. The Texas Ring Road project management team is
partnered with the City of Texas and the Texas Department of Transportation for project
funding, and oversees managing the Texas Ring Road project and ensuring that the deliverables
are completed. The project team will undergo a survey of the area, complete earthwork,
roadbed paving, conduct ride quality and drainage tests, landscaping around the pavement
where necessary, apply permanent pavement markings, and finally commission for public use.

Project sponsor/owner and Client: City of Texas and the Texas Department of
Transportation are the sponsors funding the Texas Ring Road.

Project Managers: Sam Tseung, Prashant Nundloll, Devin Prazak, Naveed Pirzado,
and Navy Kaur.

Project Team: The project team involves: contractors, subcontractors, transportation


engineers, traffic engineers, inspectors, consultants, budget analysts, and business
analysts.

Support Staff: Highway consultants

End users of ring road: Public (commuters)

Figure 1: Blue line indicates the projected Texas Ring Road; orange line indicates incoming
and outgoing city highways

Business Objective
The Texas Bypass is essential to improve public safety and to support continued economic
growth. The Bypass project and its various components have been the subject of many planning
studies dating back to the 1990s. These plans have been subject to exhaustive reviews by
experts in civil engineering and transportation planning both internal and external to the
Ministry. The analysis consistently shows that the selected route, as shown in Figure 1, is the
optimal location for the bypass now and into future. After undertaking significant stakeholder
and public consultation, the consensus reached amongst industry and municipalities was that
this is the most logical route.

This project will have significant economic benefits for the province by creating 8,200
construction-related jobs in Texas and 11,300 jobs overall. The Texas Ring Road is needed to
improve overall traffic safety and support continued economic growth. Since the nineties,
traffic congestion along Victoria Avenue and Highway 1 East has been a major safety concern.
The bypass project was redesigned based on several studies and public and stakeholder
consultations. The new overpasses and bypass route will drastically improve traffic safety and
efficiency as well as maximize strategic advantage of location.

Main Objectives of the Bypass Project:

Addresses the growing commuter traffic issue

Improves safety on Highway 1 East and Victoria Avenue

Diverts large truck traffic from Texas

Eliminate key transportation bottlenecks while creating an efficient traffic flow on Highway 1

Provide better access to Texas, Highway 6 and Highway 11

Statement on Current Situation


Within the past several years, the City of Texas has performed a series of traffic studies to help
predict the optimal way to handle increasing traffic volume. The studies have shown that a
large portion of the traffic within the city is comprised of through-traffic from League City to
Galveston. The inflow of vehicles from these areas were impeding traffic within the city and
population projections show that the number of vehicles in the city will increase steadily. The
current traffic flow capacity will be exceeded within the projected five-year growth. To
attenuate the impacts of traffic congestion, the City of Texas has issued a request for proposal
(RFP) for a ring road project to reduce the volume of through-traffic inside the city, as well as
create an egress way of accessing different areas of the city. Our project team has been involved
with several major traffic management projects which will assist in the successful completion
of the ring road project for the City of Texas.
The current state of options for the project is greenlit or withdrawn. Based on preliminary
project and financial analysis, the minimal acceptable rate of return (MARR) will be met and
project scope should be accomplished with the resources provided by the sponsor. If the project
is withdrawn, then the quality of life for the surrounding area will drop, the number of vehicle
accidents will increase, and daily commuting time will rise. Our company strongly believes
that the best course of action is to greenlight the Texas City Ring Road Project. Upon
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completion, the mentioned problems will be address more than adequately and will continue
to service the growing population for the following 20-25 years. The project will provide
several entrance/exit ramps to allow easier access into different areas of the city. This will
indirectly stimulate economic growth nearer the city center and bring in more outside spending
at local businesses. The direct benefits of the project will show a decrease of Annual Average
Daily Traffic (AADT), a decrease in vehicular collisions and a reduction of commuting time
for residence.

Critical Assumptions and Constraints


The key constraints of this project are: time, human and financial resources, and scope. The
time constraint of this project is determined by the starting and completion dates, which totals
to an 11-months timeframe. Human resources are reliable and available, as our team has made
commitments to this project and additional staff will be made available if necessary. Financial
resources are provided by the sponsor, the City of Texas. Due to the magnitude of the project,
the payments will be made incrementally throughout the duration of the project upon
completion of key milestones. These dates will be discussed prior to completion and payments
need to be made 1 week prior to completion to ensure the financial resources are available to
begin the next portion of the project. The scope of the project will be managed by one of our
senior project managers to ensure that scope creep remains negligible.

Analysis of Option and Recommendation


As of 2013, some of the major highways throughout the City of Texas are servicing between
20,000-90,000 Annual Average Daily Traffic (AADT). The most recent traffic analysis that
the city has performed indicates an increase of 14% within five years. At this rate, the quantity
of traffic moving throughout the city will result in major delays on highways and the congestion
is likely to increase the occurrence of vehicular accidents. Although, the population of Texas
City is only 45,000, as per a 2010 census, the surrounding metropolitan area creates most the
stress on the city's roadways. The surrounding cities of Galveston, League City, Dickenson,
and La Marque have a combined population of 165,000. By constructing a ring road, it will
service at minimum 210,000 people by its completion date. The design life of the project will
be for 15-20 years which at the extent of its design period, will service over 300,000 at a growth
rate of 0.018, which is a conservative estimate for the area.

Project Requirements
The project requires project managers to coordinate with stakeholders, execute quality
procurement process per budget analyses, and cooperate with construction experts to
successfully fulfill the project scope. Major concerns for this projects are ensuring workers are
sufficiently protected while dealing with heavy machineries as well as working outdoors. To
address this concern, worker liability insurance is a requirement before offering contracts to
contractors and subcontractors. Weather conditions as well as individual worker schedules may
have the potential to further delay the project schedule. The City of Texas was also required to
attain the required road allowances and crossing agreements with all pipeline crossings. The
agreements and allowances have been provided to the project team for review.

Budget Estimate and Financial Analysis


The ring road project will have a budget of 1 billion dollars (USD) to construct a 54-mile ring
road around the City of Texas. The entirety of the project will take place over 11 months up to
completion. The project will be broken down into three execution phases; earthwork, paving,
and signage, lighting, and finishing. The project will address the immediate traffic congestion
and has been designed to accommodate the increasing population projection for the next 20-25
years. The first two phases of the project will require the most resources. Earthwork will require
375 million USD with a 25 million USD retainer. Of the 400 million, 100 million will be used
to pay salaries. Paving will require 325 million USD with a 25 million USD retainer, of which
75 million will be used to pay salaries. The last phase of the project will cost 235 million USD.
A 15 million USD retainer will be kept and of the 250 million, 62.5 million will be used to pay
salaries.

Schedule Estimate
The ring road project will take approximately 11 months from start to finish. There are three
major phases of the project, earthwork, paving, and signage, lighting, and finishing. Earthwork
will be completed first starting on October 16, 2016 and finishing on February 17, 2017, taking
a total of 4 months. The next phase, paving, will begin after a portion of lag time after the
earthwork has began. These two phases can be completed somewhat in parallel. The
completion of paving will occur April 17, 2017, 6 months after the project launch date. Signage,
lighting and finishing can take place throughout the second phase of the project and up to the
estimated completion date. A more detailed timeline breakdown can be seen in Appendix A.

Potential Risks
With many construction activities, there are several risks associated. The weather can generate
several delays or unexpected costs. The climate around Texas City can be sporadic since it is a
coastal city. To accommodate for this, a contingency of 45 days will be included in the time
estimates for the project and financial retainers will be used to cover these situations. Another
considerable risk relates to the accruing materials for the project, mainly concrete and asphalt.
Both concrete and asphalt material will be batched onsite by our company employees, but the
raw materials will be provided by a third-party subcontractor. Delivery of these products
depends on this subcontractor, which could result in delays; however, our selection of this
third-party subcontractor was significantly weighted on their qualifications and prior
performances and reliability.

B. Kickoff Meeting
Project Kickoff Activity Checklist
Obtain and review project charter.
Understand and confirm project team members (roles, responsibilities, time
commitment and availability).
Understand and confirm project timeline, considering resource availability identified
above.
Develop stakeholder communications plan with input from team members and key
stakeholders.
Identify who should be attending kick-off meeting (project team, key stakeholders,
project sponsors, others).
Determine the amount of time needed for the kick-off meeting.
Email all meeting participants to understand their availability for a meeting date and
time or utilize Outlook Calendar to assess common availability.
Coordinating calendars, schedule kick-off meeting with everyone involved.

Kickoff Meeting Agenda


The objective of the meeting is to officially start the project and have an effective beginning.
1. Introductions very brief identification of people at the meeting and their role on
the project.
2. Project Overview a general overview of the project would include:
a. A summary of the stated problem that is being resolved
b. A summary of the technology being used on the project
c. How the project is funded
3. Project Details more specific details including:
a. Scope, Goals, Objectives
i. What the project is intended to accomplish
ii. What the project is not intended to accomplish
b. Project Timeline High-level Project Plan
i. Key milestones
ii. Key target dates
c. Identified challenges and risks
4. Project Team Roles & Responsibilities distribute and discuss a list of project team
members, their contact information, and their roles/responsibilities.
5. Stakeholder

Communications

distribute

and review the stakeholder

communications plan that was developed prior to the meeting.


6. Next Steps A specific instruction about what is happening next, including what
each person is expected to do.

Team and Stakeholder Communication Plan


Managing team and stakeholder communications is one of the most important tasks for project
managers. Consistent, effective communications is critical among everyone involved in the
project and the key element in keeping the project on track. This checklist will be used to plan,
track, and distribute the different types of team and stakeholder communications that can occur
during the life cycle of a project.
1. Identify all team members and key stakeholders that should receive ongoing communications
throughout the project.

Contractors

Client Contact(s)/Business Unit Management


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2.

Project Team Members

Advisory Committees/Working Groups

Identify the types of ongoing communication that will be employed.


o Team Meetings/Minutes
o Email Correspondence
o Project Status Reports
o One-on-one Meetings
o Document Retention

3. For each stakeholder identified above, identify the type of communication (from above list)
to be used and the frequency of the communication.
4. Define the content of each communication implemented (consider the stakeholder, level of
detail needed, metrics, etc). Team meeting agendas can be standardized for consistency.

2. Planning Phase
A. Project Scope Management
The project charter summarizes the essential stakeholders, work schedule, and project
management approaches and methods utilized for Texas Ring Road.

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Project Charter
Project Title: Texas Ring Road Construction Project
Project Start Date: September 1, 2016
Project Managers:

Project End Date: July 24, 2017

Sam Tseung (409-458-2394), y2j@texas.com


Prashant Nundloll (409-597-5624), loll@texas.com
Navy Kaur (409-962-5714), kaur@texas.com
Devin Prazak (409-698-8852), prazak@texas.com
Naveed Pirzado (409-546-7947), pirzado@texas.com

Project Objectives:
The project objective is to construct a ring road around the city of Texas. The project will cover
the construction of the main ring road around Texas, along with the numerous side ramps to
access and leave the ring road. It will also include the road signage, traffic lights, associated
utilities such as road lighting, and any other work needed to ensure that the ring road is
accessible and open to the public for use by the completion date of the project. The construction
of the ring road will be conducted in five phases: the planning phase, the earthwork phase, the
paving phase, utilities phase, and the finishing phase. The construction of the ring road, along
with the earthwork, road signage and drainage construction will be subcontracted to Ring Road
Construction Ltd., a road construction contractor. The electrical portion of the project, which
includes road lighting and traffic lights setup, will be subcontracted to Better Electricals Ltd.,
an electric utilities contractor.
Main Project Success Criteria:
The road construction should be completed on time by the completion date of the project, to
alleviate the current commuter traffic issues in the city of Texas. The project should also be
adhering to the safety and quality standards to ensure that the public can use the ring road
safely.
Budget Information:
The budget for the ring road project is 1 billion dollars (USD), which will cover the
construction costs for the ring road to be operational and open for public use as from the
completion date of the project. The budget will be allocated to the earthwork, paving and
utilities phases. Project will be broken down into three execution phases; earthwork, paving,
and signage, lighting, and finishing. 400 million USD is budgeted for the earthwork. The

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budget for paving is estimated at 350 million USD, while the last phase will cost an estimated
250 million USD.
Key Schedule Milestones:
Completion of detailed engineering of the ring road, which includes the design of the
ring road, its drainage system and the associated electrical utilities, by October 19, 2016
Completion of planning phase of project, which includes feasibility, topographical, and
geotechnical studies as well as pavement planning, by October 26, 2016
Completion of earthwork by February 13, 2017
Completion of paving by April 03, 2017
Setup of electrical utilities by May 08, 2017
Painting of pavement markings by May 29, 2017
Placement of barrier by June 26, 2017
Inspection of ring road by July 24, 2017
Approach:
Outline a list of proposed work and budget plans
Develop detailed estimate of the scope of the project
Develop detailed estimate of the time required to complete the project
Develop detailed estimate of the cost of the project

Consult with Better Electricals Ltd. and Ring Road Construction Ltd. to finalize project
schedule

Coordinate paving, drainage construction, and road signage of ring road by Ring Road
Construction Ltd. in an efficient manner

Coordinate electrical utilities such as road lighting and traffic lights by Better
Electricals Ltd. in an efficient manner

Bi-weekly review with Ring Road Construction Ltd and Better Electricals Ltd. (if
necessary) for suggestions and status update

Plan inspection of the ring road construction project by the relevant authorities to ensure
conformity to quality standards
Open inspected final product for use by the public by the project completion date

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Table 1: Roles and Responsibilities


Name

Role

Responsibility

City of Texas
Department of
Transportation

Client

Provide a project scope direction, hire


project managers, and supervise
project execution.

Sam Tseung

Project Manager

Planning and executing project.


Coordinating with the different project
stakeholders.

Prashant Nundloll

Project Manager

Planning and executing project.


Coordinating with the different project
stakeholders.

Navy Kaur

Project Manager

Planning and executing project.


Coordinating with the different project
stakeholders.

Devin Prazak

Project Manager

Planning and executing project.


Coordinating with the different project
stakeholders.

Naveed Pirzado

Project Manager

Planning and executing project.


Coordinating with the different project
stakeholders.

Bora Yoon

Lead Contractor from


Ring Road Construction
Ltd.

Plan detailed landscape and drainage


design. Supervise 8,500 skilled
labourers to carry out landscape,
drainage, earthwork, pavement tasks,

Yoona Lim

Lead Contractor from


Better Electricals Ltd.

Plan detailed electrical wiring design


for electrical power supply, and hire
1,500 skilled labourers to carry out
electrical wiring, and lamp posts and
traffic lights installation.

Tiffany Hwang

Senior Civil Engineer


from City of Texas

Lead civil engineering department


team to conduct feasibility,
geotechnical, and topographical
studies.

Sooyoung Choi

Highway Inspector

Inspect road conditions, pavement


cracks, and soil erosion.

Yuri Kwon

Highway Consultant

Provide professional expert advice on


highway planning, highway
infrastructure, and construction details

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Collect Requirements
A series of interviews will be conducted to all contractors and subcontractors to ensure
sufficient qualifications and suitability for the job. Mind Mapping and Multicriteria Decision
Analysis will be used in brainstorming sessions during the planning phase. Dictatorship
decision-making technique is employed by the City of Texas on the project scope direction,
while Majority decision-making within the project management group will be enforced prior
and during construction planning phases. Online questionnaires, surveys, and polls will be
accessible on government website, news outlet, and social medias, aimed to gather important
traffic data, to make informed decisions on effective traffic light placements, entry and exit
ramp placements, and number of traffic lanes on certain freeways. General observations on
traffic congestions will be included prior to decision making. Benchmarking with other
highways outside of Texas for similar purpose as well as past highway construction techniques
and methods will be thoroughly investigated.

Table 2: Requirements Traceability Matrix


Requirement
No.

Name

Category

Source

Status

R1

Conduct Feasibility
Study

Planning

City of Texas request

N/A

R2

Conduct Topography
Study

Planning

City of Texas request

N/A

R3

Conduct Geotechnical
Study

Planning

City of Texas request

N/A

R4

Survey the Area

Planning

Texas Department of N/A


Environmental Affairs
request

R5

Plan pavement
construction method

Planning

All project managers

R6

Landscape design

Planning

Project managers, City N/A


of Texas specifications

R7

Drainage design

Planning

Project
manager, N/A
Texas Department of

N/A

14

Waste
Management
specifications
R8

Electrical wiring design


Planning
on lamp posts, and traffic
lights

Project managers, City N/A


of Texas specifications

R9

Create procurement
process plan

Planning

Project managers, City N/A


of Texas specifications

R10

Analyze budget to meet


procurement
requirements

Planning

Project managers, City N/A


of Texas specifications

R10

Commence earthmoving
on projected area

Construction Project charter

N/A

R11

Set up and execute


foundation work on
projected area

Construction Project Charter

N/A

R12

Implement drainage
design on specified
locations

Construction Project Charter, City of N/A


Texas specifications,
Texas Department of
Waste
Management
specifications, WBS

R13

Commence landscaping
work per specifications

Construction Project Charter, City of N/A


Texas specifications,
WBS

R14

Perform soil compaction

Construction Project Charter, WBS

N/A

R15

Grading to ensure a level Construction Project Charter, WBS


base

N/A

R16

Procure necessary
pavement material and
machineries

Construction Project Charter, WBS

N/A

R17

Batch Asphalt

Construction Project Charter, WBS

N/A

R18

Batching Concrete

Construction Project Charter, WBS

N/A

R19

Steamrolling the
pavement

Construction Project Charter, WBS

N/A

15

R20

Procure required
materials for electrical
systems, lamp posts, and
machineries for
installation

Utilities

Project Charter, WBS

N/A

R21

Electrical wiring
installations

Utilities

Project Charter, Texas N/A


Bureau
of
Street
Lighting specifications

R22

Install Lamp posts

Utilities

Project Charter, WBS

R23

Install Traffic Lights

Utilities

Project Charter, WBS, N/A


Texas Bureau of Street
Lighting
Specifications

R24

Procure pavement
marking paints, standard
street signages, and
installation machineries

Pavement
Markings

Project Charter, City of N/A


Texas specification,
WBS

R25

Install pavement
markings on ramp
directions, speed limit,
cross roads, and lamp
posts markings

Pavement
Markings

Project Charter, City of N/A


Texas specification,
WBS

R26

Plan all street signage


locations: speed limit,
area direction, and
general traffic cautions

Planning

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

R27

Install street signage to


appropriate areas

Pavement
Marking

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

R28

Plan median strip


designs, and guard rails,
as well as its placements

Planning

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

N/A

16

R29

Procure concrete
Barrier
material for median strip,
specified guardrail
material

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

R30

Perform necessary work


to install median strip
and guard rails

Barrier

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

R31

Conduct ride quality


tests

Inspection

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

R32

Conduct highway
inspection

Inspection

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

R33

Conduct pavement crack


inspection

Inspection

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

R34

Conduct soil creep


inspection

Inspection

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

R35

Apply erosion control


techniques to control
surface runoff on
surrounding area

Inspection

Project Charter, City of N/A


Texas specification,
Texas Department of
Transportation
specifications

17

Project Scope Statement


Project Title: Texas Ring Road Construction Project
Date: September 1, 2016
Prepared By: July 24, 2017
Project Justification: The need to relieve traffic congestion, improve traffic safety and
efficiency and revitalize the economy with estimated 10,000 new job creations. The City of
Texas and Department of Transportation has hired five project managers and will provide
sufficient funding to all subsequent contractors, consultants, and labourers. The project will
cost 1 billion USD to construct a 54-mile ring road around the City of Texas. It is estimated
that the ring road will service over 300,000 commuters in the 20-year span.
Project Characteristics and Requirements:
1. The project requires highway engineers, consultants, labourers, and inspectors to
deliver this project to completion.
2. The highway construction designs as well as signages and electrical wiring must meet
government design specification standards.
3. The highway must have guard rails and a median strip opposite lanes
4. The highway must pass all quality tests conducted by government officials.
Summary of Project Deliverables:
Project Management-Related Deliverables: business case, project charter, team contract,
scope statement, WBS, schedule, cost baseline, status reports, final project presentation, final
project report, lessons-learned report, as well as other documents involved in managing the
project.
Product-Related Deliverables: design documents, highway
Project Success Criteria: This highway construction project must be successfully completed
with the allotted budget and be open to public by July 24, 2017 while in the process of creating
10,000 new jobs.

18

Work Breakdown Structure Flow Chart

Figure 2: WBS Workflow Chart

19

WBS Index
1. Texas Ring Road Highway Construction
1.1. Planning
1.1.1. Feasibility Studies
1.1.2. Topography Studies
1.1.3. Geotechnical Studies
1.1.4. Surveying the Area
1.1.5. Pavement Planning
1.1.6. Detailed Engineering
1.1.6.1. Landscape design
1.1.6.2. Drainage design
1.1.6.3. Electrical wiring design
1.1.7 Procurement Planning
1.2. Earthwork
1.2.1. Implementation phase
1.2.1.1. Earthmoving
1.2.1.2. Foundation
1.2.1.3. Drainage
1.2.1.4. Landscaping
1.2.1.5. Compaction
1.2.1.6. Grading
1.3. Paving
1.3.1 Implementation Phase
1.3.1.1. Procurement
1.3.1.2. Batching Asphalt
1.3.1.3. Batching Concrete
1.3.1.4. Steamrolling
1.4. Utilities
1.4.1. Electrical
1.4.1.1. Lighting
1.4.1.2. Foundations
1.4.1.3. Electrical supply
1.4.1.4. Traffic Lights
1.4.1.5. Lamp posts
1.4.2. Pavement Markings
1.4.2.1. Ramps
1.4.2.2. Signage
1.4.2.3. Cross Roads
1.4.2.4. Lamp posts markings
1.4.3 Barrier
1.4.3.1. Median Strip
1.4.3.2. Guard Rails

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1.5. Finishing
1.5.1. Ride quality tests
1.5.2. Highway inspection
1.5.3. Pavement crack inspection
1.5.4. Soil creep inspection
1.5.5. Erosion control

Table 3: Work Breakdown Structure Dictionary


Item
Number

Task Name

Duration

Description

1.

Texas Ring
Road Highway
Construction

233 days

Construction of ring road in Texas

1.1.

Planning

40 days

Planning the the construction of the ring road

1.1.1.

Feasibility
Studies

1 week

Assessing the practicality of the proposed plan

1.1.2.

Topography
Studies

1 week

Assessing the shape and features of the land

1.1.3.

Geotechnical
Studies

2 weeks

Assessing the type of soil and rocks

1.1.4.

Surveying the
Area

1 week

Examining and recording the features of the area

1.1.5.

Pavement
Planning

1 week

Planning where the materials will be batched and


how the pavement will be set

1.1.6.

Detailed
Engineering

15 days

The design engineering phase of the project

1.1.6.1.

Landscape
Design

1 week

Designing how the landscape will be modified to


accommodate the ring road

1.1.6.2.

Drainage
Design

1 week

Designing the drainage system for the ring road

1.1.6.3.

Electrical
Wiring Design

1 week

Designing the set up for the electrical utilities


such as the lightings and traffic lights

21

1.1.7.

Procurement
Planning

1 week

Detailing how and when the materials for the


pavement, railing, paint, asphalt, etc. will be
delivered

1.2.

Earthwork

78 days

Process to move and process earth surface ready


for pavement

1.2.1.

Implementation
Phase 1

78 days

Commence earthwork activities

1.2.1.1.

Earthmoving

3 weeks

Excavating large quantities of earth using the cut


and fill technique

1.2.1.2.

Foundation

3 weeks

Consists of a solid roadbed before pavement

1.2.1.3.

Drainage

3 weeks

Transport excess rain and groundwater to a


combined city sewage

1.2.1.4.

Landscaping

2 weeks

Process to integrate ring road to nearby nature

1.2.1.5.

Compaction

2 weeks

Remove voids in soil to increase density and soil


bearing capacity of road bed.

1.2.1.6.

Grading

2 weeks

Ensure a level base along the ring road, sloped to


prevent pooling of water on the road surface

1.3.

Paving

35 days

Paved surface on top of roadbed

1.3.1.

Implementation
Phase 2

35 days

Pavement installation

1.3.1.1.

Procurement

2 weeks

Procure necessary materials and machineries


ready for pavement

1.3.1.2.

Batching
Asphalt

2 weeks

A composite material used to surface the


majority of the ring road

1.3.1.3.

Batching
Concrete

2 weeks

Concrete will be required for specific portions of


the road, such as overpasses, bridges, and
medians

1.3.1.4.

Steamrolling

1 week

Heavy roller is used to smoothen road surface

1.4.

Utilities

60 days

Utilities needed for functionality of highway

1.4.1.

Electrical

25 days

Electrical systems for lamp posts and highways

1.4.1.1.

Lighting

1 week

Lamp posts on side road and traffic lights for


intersections

22

1.4.1.2.

Foundations

2 weeks

Foundations of lamp posts and traffic lights for


installations

1.4.1.3.

Electrical
Supply

1 week

Electrical wiring to lamp posts and traffic lights

1.4.1.4.

Traffic Lights

1 week

Placed in intersections and crossroads to control


traffic

1.4.1.5.

Lamp Posts

1 week

Provide sufficient lighting to highway, LED


lighting is used to maximize power efficiency.

1.4.2.

Pavement
Markings

15 days

Provide communications to road users: warn


upcoming road conditions, indicate where
passing is allowed, etc.

1.4.2.1.

Ramps

1 week

Pavement markings to indicate ramp directions

1.4.2.2.

Signage

1 week

Posted on side of road to communicate vehicle


speed limit, approximate distance to nearby
metropolitan, and directions to major parts of
city.

1.4.2.3.

Cross Roads

1 week

Pavement markings to indicate road intersections

1.4.2.4.

Lamp Posts
Markings

1 week

Marking lower portions of lamp posts to increase


visibility.

1.4.3.

Barrier

20 days

Arrange material, and deploy barrier satisfying


contract requirements

1.4.3.1.

Median Strip

2 week

Arrange manpower, material, and manage


contractor for execution

1.4.3.2.

Guard Rails

2 week

Source out contract including manpower and


material and manage field work and safety

1.5.

Finishing

20 days

Quality Inspection
external experts

1.5.1.

Ride Quality
Tests

1 week

Arrange Ride Quality Testing company to


perform ride quality inspection and road
roughness measurement tests

1.5.2.

Highway
Inspection

2 weeks

Perform highway inspection to ensure


deliverables are met as per contract
specifications

with

stakeholders

and

23

1.5.3.

Pavement
Crack
Inspection

1 week

Facilitate walk down with civil engineering


experts to check crack inspection

1.5.4.

Soil Creep
Inspection

1 week

Arrange walk down with civil engineering and


external geology experts experts for soil creep
inspection

1.5.5.

Erosion Control

1 week

Arrange erosion control testing company to


check bridge integrity against erosion control
and install silt screens directed federal and state
regulations.

Project Time Management


The time needed to complete the different project activities was estimated using data from
previous road construction projects in other cities in the past. The project schedule, as shown
in Appendix A, will be adhered to in terms of task scheduling and task completion. The
sequencing of project activities will be mostly sequential, although, according to the project
schedule, some activities will be partly executed in parallel to each other. Examples of project
activities that will be executed in parallel include carrying out the geotechnical studies and
pavement planning at the same time, installing traffic lights and lamp posts concurrently, and
carrying out the pavement crack inspection, soil creep inspection, and erosion control at the
same time. In order to minimize and prevent scope creep, the schedule will be controlled using
the following tools:
- Performance reviews and progress reports
- Microsoft Project for schedule planning and control
- Schedule compression using methods such as crashing and fast tracking

24

References
1. Highway construction http://www.brighthubengineering.com/building-constructiondesign/125227-highway-construction-and-engineering/
2. Project Management Institute. A Guide to the Project Management Body of Knowledge
(PMBOOK Guide), 5th Edition. 2013. (ISBN-10: 1935589679)

25

Appendix A: Project Schedule

26

27

28

Texas Ring Road


Phase 2: Report

EngM 530
Presented by:
Sam Tseung (1394850)
Prashant Nundloll (1414257)
Devin Prazak (1291870)
Naveed Pirzado (1488955)

Table of Contents
Project Cost Management ....................................................................................................... 3
Planning Cost Management ............................................................................................... 3
Estimating Cost.................................................................................................................... 3
Determining the Budget ...................................................................................................... 6
Earned Value Management ................................................................................................ 9
Project Quality Management ................................................................................................ 12
Plan Quality Management ................................................................................................ 12
Quality Assurance ............................................................................................................. 13
Quality Control .................................................................................................................. 13
Project Risk Management ..................................................................................................... 16
Risk Identification ............................................................................................................. 16
Risk Analysis ...................................................................................................................... 17
Risk Response and Control .............................................................................................. 20
Project Procurement Management ....................................................................................... 21
Plan Procurement Management ...................................................................................... 21
Conduct Procurement ....................................................................................................... 21
Control Procurement ........................................................................................................ 22
Close Procurement ............................................................................................................ 22
Project Stakeholder Management ........................................................................................ 22
Identifying Stakeholders ................................................................................................... 22
Lessons Learned ..................................................................................................................... 26
APPENDIX ............................................................................................................................. 28

Project Cost Management


Referring to the key constraints of this project, an allotted budget has been set aside in order to
complete the Texas Ring Road. Sam Tseung and Prashant Nundloll will be responsible for cost
management of this project and will conduct plan cost management, cost estimation using
bottom up estimate, determine the appropriate budget including reserves, control and monitor
costs using earned value management.
The results obtained from these management methods, we can deduce the appropriate budget
needed to set aside to accomplish work activities and its associated activity reserves.

Planning Cost Management


The planning cost management will involve: determining the policies, procedures, and
documentation that will be used for planning, executing, and controlling project cost.
The following variables describe how the project costs will be planned, structured, and
controlled.
Unit of measures: Staff hours at their respective hourly cost will be used to quantify the labor
input of the project while material costs will be calculated in terms of cost per unit.
Level of precision: Activity cost estimates will be rounded up to the nearest $1000 CAD.
Level of accuracy: The acceptable range for determining a realistic activity cost estimate is

10%.
Organizational procedures links: WBS provides the framework for cost management plan,
therefore, WBS will be used for project cost accounting.
Rules of Performance measurement: Earned Value Management rules will be used to indicate
the level of performance, cost performance index and schedule performance index.
Control Thresholds: Allowable 10% for each activity cost.

Estimating Cost
A bottom up estimate was performed before including the activity in the Work Breakdown
Structure (WBS) and project scheduling. The number of units and unit cost per item named are
based on historical data on previous road construction projects. The following table outlines

the cost estimate on each work activity and its work package contingency reserve. The total
project cost estimate is $680,000,000, not including project contingency reserve.
Table 1: Project Cost Estimation, all costs are rounded to thousands
Item
Number

Task Name

# Unit or Cost/unit
Hrs.
or
Cost/hr.

Subtotals

Work
Activity
Contingency
Reserve

WBS
Level
Totals

% of Total

1.1.

Planning

$81,480

$20,370

$101,850

14.98%

1.1.1.

Feasibility
Studies

30,177

$0.3

$9,053

1.1.2.

Topography
Studies

30,177

$0.3

$9,053

1.1.3.

Geotechnical
Studies

30,177

$0.3

$9,053

1.1.4.

Surveying
the Area

30,177

$0.3

$9,053

1.1.5.

Pavement
Planning

30,177

$0.3

$9,053

1.1.6.1.

Landscape
Design

18,107

$0.5

$9,053

1.1.6.2.

Drainage
Design

18,107

$0.5

$9,053

1.1.6.3.

Electrical
Wiring
Design

18,107

$0.5

$9,053

1.1.7.

Procurement
Planning

45,265

$0.2

$9,053

1.2.

Earthwork

$71,295

$237,650

34.95%

1.2.1.1.

Earthmoving

5,198

$8

$41,588

1.2.1.2.

Foundation

20,794

$2

$41,588

1.2.1.3.

Drainage

6,654

$2.5

$16,636

$166,355

1.2.1.4.

Landscaping

3,697

$4.5

$16,636

1.2.1.5.

Compaction

55,452

$0.6

$33,271

1.2.1.6.

Grading

3,697

$4.5

$16,636

1.3.

Paving

1.3.1.1.

Procurement

142,590

$0.5

$71,295

1.3.1.2.

Batching
Asphalt

23,765

$1.2

$28,518

1.3.1.3.

Batching
Concrete

15,843

$1.8

$28,518

1.3.1.4.

Steamrolling

15,843

$0.9

$14,259

1.4.

Utilities

1.4.1.1

Lighting

8,911

$0.8

$7,129

1.4.1.2.

Foundations

7,921

$0.9

$7,129

1.4.1.3.

Electrical
Supply

9,505

$0.75

$7,129

1.4.1.4.

Traffic
Lights

14,258

$0.5

$7,129

1.4.1.5.

Lamp Posts

17,823

$0.4

$7,129

1.4.2.1.

Ramps

25,460

$0.35

$8,911

1.4.2.2.

Signage

35,644

$0.25

$8,911

1.4.2.3.

Cross Roads

19,802

$0.45

$8,911

1.4.2.4.

Lamp Posts
Markings

13,709

$0.65

$8,911

1.4.3.1.

Median Strip

10,185

$1.5

$15,278

1.4.3.2.

Guard Rails

12,732

$1.2

$15,278

1.5.

Finishing

$142,590

$101,850

$900

$61,110

$203,700

29.96%

$33,950

$135,800

19.97%

$100

$1,000

0.14%

1.5.1.

Ride Quality
Tests

300

$0.6

$180

1.5.2.

Highway
Inspection

257

$0.7

$180

1.5.3.

Pavement
Crack
Inspection

360

$0.5

$180

1.5.4.

Soil Creep
Inspection

180

$1.0

$180

1.5.5.

Erosion
Control

120

$1.5

$180

Total
Project
Cost
Estimates

$680,000

100%

Determining the Budget


The following table indicates the split in work package cost estimates over the period of the
project. The total project cost estimate including the activity contingency reserve is $680
million, and the contingency reserve is $170 million. This makes a total of $850 million on cost
baseline. An additional allocated management reserve is $150 million. The entire project budget
is a grand total of $1 billion.
Table 2: Cost Baseline, all costs are rounded to thousands
Item #

Activity

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May.

Jun.

Jul.

Total

1.1.

Planning

$45,266.67

$56,583.33

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$101,850

1.1.1.

Feasibility
Studies

$11,316.67

$11,316.67

1.1.2.

Topography
Studies

$11,316.67

$11,316.67

1.1.3.

Geotechnical
Studies

$11,316.67

$11,316.67

1.1.4.

Surveying the
Area

$11,316.67

$11,316.67

1.1.5.

Pavement
Planning

$11,316.67

$11,316.67

1.1.6.1.

Landscape
Design

$11,316.67

$11,316.67

1.1.6.2.

Drainage
Design

$11,316.67

$11,316.67

1.1.6.3.

Electrical
Wiring Design

$11,316.67

$11,316.67

1.1.7.

Procurement
Planning

$11,316.67

$11,316.67

1.2.

Earthwork

$14,853.13

$84,167.70

1.2.1.1.

Earthmoving

$14,853.13

$44,559.38

1.2.1.2.

Foundation

1.2.1.3.

Drainage

1.2.1.4.

Landscaping

$23,765.00

$23,765.00

1.2.1.5.

Compaction

$47,530.00

$47,530.00

1.2.1.6.

Grading

1.3.

Paving

1.3.1.1.

Procurement

1.3.1.2.

Batching
Asphalt

$40,740

$40,740

1.3.1.3.

Batching
Concrete

$40,740

$40,740

1.3.1.4.

Steamrolling

$10,185.0

$10,185.0

1.4.

Utilities

28518

1.4.1.1

Lighting

$9,506

$9,506

1.4.1.2.

Foundations

$9,506

$9,506

1.4.1.3.

Electrical
Supply

$9,506

$9,506

1.4.1.4.

Traffic Lights

$9,506

$9,506

1.4.1.5.

Lamp Posts

$9,506

$9,506

$39,608.33

$43,569.17

$71,295

$23,765

$237,650

$59,412.50

$19,804.17

$59,412.50

$23,765.00

$23,765.00

$23,765

$23,765.00

$203,700

$101,850

$101,850.0

$20,370.0

66542

40740

$135,800

1.4.2.1.

Ramps

$11,883

$11,883

1.4.2.2.

Signage

$11,883

$11,883

1.4.2.3.

Cross Roads

$11,883

$11,883

1.4.2.4.

Lamp Posts
Markings

$11,883

$11,883

1.4.3.1.

Median Strip

$20,370

$20,370.00

1.4.3.2.

Guard Rails

$20,370

$20,370.00

1.5.

Finishing

1.5.1.

Ride Quality
Tests

1.5.2.

100

900

$1,000

$100.0

$100.0

$200.0

Highway
Inspection

$200.0

$200.0

1.5.3.

Pavement
Crack
Inspection

$200.0

$200.0

1.5.4.

Soil Creep
Inspection

$200.0

$200.0

1.5.5.

Erosion
Control

$200.0

$200.0

Project Cost
Estimates

$680,000

Figure 1: A summary of project budget components and its associated costs (hundred
thousands of dollars)
8

Earned Value Management


Earned value management for the project was conducted at the end of each month. As an
example, the earned value management calculated at the end of March is shown below. Table
3 shows the planned value, the percent completion and the earned value of each activity in the
work breakdown structure at the end of March. Table 4 shows the various earned value indices
at the end of March. The actual cost at the end of March was calculated to be $400,000,000.
Table 3: Earned Value and Planned Value Management at the End of March (in
thousands of dollars)
Item Number

Activity

Planned Value

Percentage Complete

Earned Value

1.1.

Planning

1.1.1.

Feasibility
Studies

$11,316.67

100%

$11,316.67

1.1.2.

Topography
Studies

$11,316.67

100%

$11,316.67

1.1.3.

Geotechnical
Studies

$11,316.67

100%

$11,316.67

1.1.4.

Surveying the
Area

$11,316.67

100%

$11,316.67

1.1.5.

Pavement
Planning

$11,316.67

100%

$11,316.67

1.1.6.1.

Landscape
Design

$11,316.67

100%

$11,316.67

1.1.6.2.

Drainage
Design

$11,316.67

100%

$11,316.67

1.1.6.3.

Electrical
Wiring Design

$11,316.67

100%

$11,316.67

1.1.7.

Procurement
Planning

$11,316.67

100%

$11,316.67

1.2.

Earthwork

1.2.1.1.

Earthmoving

$59,412.50

100%

$59,412.50

1.2.1.2.

Foundation

$59,412.50

80%

$47,530.00

1.2.1.3.

Drainage

$23,765.00

75%

$17,823.75

1.2.1.4.

Landscaping

$23,765.00

90%

$21,388.50

1.2.1.5.

Compaction

$47,530.00

80%

$38,024.00

1.2.1.6.

Grading

$23,765.00

79%

$18,774.35

1.3.

Paving

1.3.1.1.

Procurement

$101,850.00

55%

$56,017.50

1.3.1.2.

Batching
Asphalt

$40,740.00

59%

$24,036.60

1.3.1.3.

Batching
Concrete

$40,740.00

57%

$23,221.80

1.3.1.4.

Steamrolling

$10,185.00

20%

$4,074.00

1.4.

Utilities

1.4.1.1

Lighting

$0.00

0%

$0.00

1.4.1.2.

Foundations

$0.00

0%

$0.00

1.4.1.3.

Electrical
Supply

$0.00

0%

$0.00

1.4.1.4.

Traffic Lights

$0.00

0%

$0.00

1.4.1.5.

Lamp Posts

$0.00

0%

$0.00

1.4.2.1.

Ramps

$0.00

0%

$0.00

1.4.2.2.

Signage

$0.00

0%

$0.00

1.4.2.3.

Cross Roads

$0.00

0%

$0.00

1.4.2.4.

Lamp Posts
Markings

$0.00

0%

$0.00

1.4.3.1.

Median Strip

$0.00

0%

$0.00

1.4.3.2.

Guard Rails

$0.00

0%

$0.00

1.5.

Finishing

10

1.5.1.

Ride Quality
Tests

$0.00

0%

$0.00

1.5.2.

Highway
Inspection

$0.00

0%

$0.00

1.5.3.

Pavement
Crack
Inspection

$0.00

0%

$0.00

1.5.4.

Soil Creep
Inspection

$0.00

0%

$0.00

1.5.5.

Erosion
Control

$0.00

0%

$0.00

Total

$533,015

$412,153

Table 4: Earned Value Indices


Term

Description

Value

Planned Value

Portion of the approved total cost


during a period of time

$533,015,000

Earned Value

Value of physical work actually


completed

$412,153,000

Actual Cost

Cost incurred to perform an


activity in a period of time

$400,000,000

Budget at Completion

Original total budget

Cost Variance

Earned Value - Actual Cost

Schedule Variance

Earned Value - Planned Value

$1 000 000 000


$12 153
-$120 862 000

Cost Performance Index Earned Value/Actual Cost

1.03

Schedule Performance
Index

Earned Value/Planned Value

0.773

Budget Estimate at
Completion

Estimate of the cost to complete


the project based on performance
to date

$970 873 786

11

Original Time Estimate

Time estimated to complete


project originally

233 days

Estimated Time to
Complete

Estimate of the time to complete


the project based on performance
to date

301 days

As shown in the table above, the cost was under budget at the end of March according to the
positive cost variance and a cost performance index (1.03) greater than unity. It was estimated
that the project would be completed under budget at a total cost of $970,873,786 according to
the performance till March. However, the project was behind schedule at the end of March,
shown by the negative schedule variance and a schedule performance index less than unity. It
was estimated that, according to the performance till March and if the trend followed the same
path, the project would be completed 68 days later than expected. Since completing the project
on schedule is one of the major criteria of success for the ring road project, the project
management team implemented scheduling compression strategies such as fast tracking
(conducting activities in parallel instead of sequentially) and crashing (shortening duration of
activities by adding resources such as overtime hours and expediting material delivery) in an
effort to bring the schedule back on track.

Project Quality Management


Texas Ring Road project manager, Sam Tseung, will ensure the delivery of a safe highway and
made with materials of good quality.
The quality processes that are included: plan quality management, quality assurance, and
quality control

Plan Quality Management


City highway construction standards are used to identify the quality of road.
Three major items on material quality checklist and its quality metric in addition to the Texas
City Highway Code are specified below:
1. M15 grade of concrete batches must meet the relative proportion of ingredients: 1
cement, 1.5 fine aggregate, 3 coarse aggregate. A 1:1.5:3 ratio.
2. Steel columns for lamp posts: Maximum 5 crater cracks, longitudinal cracks, fatigue
cracks, each less than 1 mm deep and 5 mm long.

12

3. Highway paint barrels: all incoming paints must be checked for color consistency,
adhesion failure, light coverage, and pops by inspector.
Failure to adhere to the minimum quality standards will have the material reproduced at the
cost of manufacturer.
A routine check for worker license by an inspector will be conducted to confirm worker work
experience and the necessary qualifications.

Quality Assurance
Government inspectors will liaise with contractors to stay on top of scheduling and overlook
all construction phases performed by subcontractors. Inspectors will ensure that the Texas City
Highway Code are adhered and the costs awarded for each performed work activities are
recorded and reimbursed at the end of each week.
All change requests will be forwarded to inspectors, then subsequent decisions will be discussed
with project managers and the responsible subcontractor.
A quality audit will be performed by project manager at the end of procurement phase in order
to identify the lessons learned and ways to improve performance on future projects.

Quality Control
The following cause-and-effect diagram helps us to trace the root cause of construction delay:

Figure 2: Cause and Effect diagram on Highway Construction Delay


13

A number of key materials required for the project can be analyzed for quality control. Three
major materials, concrete batches, steel beams, and highway paint barrels are of particular
importance.

Concrete Batches
During the execution phase of the project, an average of 120 batches of concrete will be
produced per day. The civil engineer assigned to the concrete production and design is required
to perform a field slump test on 12 randomly chosen batches per day. The slump test will
indicate the consistency, water content, and workability of the concrete. The city of Texas will
accept a 5% defective rate but more than 40% is unacceptable. If more than 2 batches fail the
slump test then the batches will be rejected.
N=120 batches of concrete
n=12 sampled batches
c=2 batches defective
p0=0.05 acceptable defective rate
p1 = 0.40 unacceptable defective rate
Suppliers risk: = P(x > 2 | p = 0.05)
2

=1 (
=0

12
) 0.05 0.9512

12
12
12
= 1 ( ) (0.05)0 (0.95)12 ( ) (0.05)1 (0.95)11 ( ) (0.05)2 (0.95)10
0
1
2
=1- 0.54036 - 0.34128 - 0.09879
=0.01957=1.96%
Texas Ring Road Project Team risk: = P(x 2 | p = 0.40)
2

= (
=0

12
) 0.40 0.6012

12
12
12
= ( ) (0.40)0 (0.60)12 + ( ) (0.40)1 (0.60)11 + ( ) (0.40)2 (0.60)10
0
1
2
= 0.002177 + 0.017414 + 0.06385
=0.08344=8.34%

Steel Beams
Steel beams will arrive in 300 product-lots. Again, the City of Texas will accept 5% defective
rate and more than 30% is unacceptable. The lead supervisor for steel products will be required
to check 20 beams and if more than 3 are defective the lot will be rejected.
N=300 product lots n=20 sampled beams
c=3 beams defective
p0=0.05 acceptable defective rate
p1 = 0.30 unacceptable defective rate

14

Suppliers risk: = P(x > 3 | p = 0.05)


3

=1 (
=0

20
) 0.05 0.9520

20
20
20
20
= 1 ( ) (0.05)0 (0.95)20 ( ) (0.05)1 (0.95)19 ( ) (0.05)2 (0.95)18 ( )
0
3
1
2
(0.05)3 (0.95)17

=1 - 0.35849 - 0.37735 - 0.188677 - 0.059582


=0.0159=1.59%
Texas Ring Road Project Team risk: = P(x 3 | p = 0.30)
3

= (
=0

20
) 0.10 0.9020

= (20) (0.30)0 (0.70)20 + (20) (0.30)1 (0.70)19 + (20) (0.30)2 (0.70)18 + (20)
0
3
1
2
(0.30)3 (0.70)17
= 0.000798 + 0.006839 + 0.027846 + 0.0716
=0.107=10.7%

Highway Paint Barrels


A total of 1500 barrels of highway paint will be purchased from a seller to complete the
necessary highway markings. Twelve barrels will be loaded into the sprayer equipment 9 times
a day to finish the highway marking activity within the allotted 15 days. Therefore one hundred
barrels of paint will be used daily, of which if 5 are defective, the batch will be rejected. Texas
City has agreed with the manufacturer to accept a 5% defective rate but will not accept more
than 10% defective.
N=1500 barrels
n=100 barrels c=5 barrels defective
p0=0.01 acceptable defective rate
p1 = 0.10 unacceptable defective rate
Suppliers risk: = P(x > 5 | p = 0.05)
5

=1 (
=0

100
) 0.05 0.95100

100 (0.01)0 (0.99)100


100 (0.01)1 (0.99)99
100 (0.01)2 (0.99)98
)
)
=1(
)

0
1
2
100 (0.01)3 (0.99)97
100 (0.01)5 (0.99)95
100 (0.01)4 (0.99)96
(
)
)
)

3
5
4

=1- 0.36603 - 0.3697 - 0.18486 - 0.061 - 0.0149 - 0.0029


=0.00061=0.061%

15

Texas Ring Road Project Team risk: = P(x 5 | p = 0.10)


5

= (
=0

100
) 0.10 0.90100

= (100) (0.10)0 (0.90)100 + (100) (0.10)1 (0.90)99 + (100) (0.10)2 (0.90)98 +


0
1
2
100 (0.10)3 (0.90)97
100 (0.10)5 (0.90)95
100 (0.10)4 (0.90)96
(
)
)
)

+(

+(

3
5
4
= 0.00002656 + 0.00029513 + 0.0058916 + 0.015875 + 0.033866
=0.05595=5.60%

Both contractor and producers risks in all sample material categories are under the agreed 15%
risks. The specified conditions on each sampled category ensures the materials purchased from
suppliers are at an acceptable quality.

Project Risk Management


Texas Ring Road project manager, Prashant Nundloll, will conduct a project risk management
plan in order to minimize all project risks. The risk management plan was split into three
categories: risk identification, risk analysis, and risk response and control. The risks were
determined in risk identification, and their probability of occurring were evaluated qualitatively
and quantitatively in risk analysis. Measures were then set in place in risk response and control
in order to counter the possible negative effects of the risks.

Risk Identification
The following major risks for the construction of the ring road were identified during a meeting
with the project stakeholders:
1. Weather Conditions - Unfavourable weather conditions could cause delays to the
project schedule, since construction of certain parts of the road depend on the
temperature and whether the conditions are dry or wet. Also, natural occurrences such
as tornadoes and hurricanes are will also negatively affect the project schedule.
2. Inadequate Planning and Scheduling - Due to the immensity of the project, any
inadequate planning on the part of both the project management team and contractors
will most likely result in project schedule delay and unexpected costs.
3. Poor Cost Estimates - Underestimating the cost of materials and labor will cause reevaluation of material and labor cost, which may lead to needing more funds. This could
also result in schedule delays.
4. Geotechnical Problems - Problems may arise regarding the preparation of the soil
(foundation problems, earthworks, managing underground water, and ground stability)
16

which could develop into delays, depending on the magnitude of the problem. Further
delay includes performing geotechnical problem related surveys and studies and then
consult with professionals for a solution.
5. Equipment Malfunction/Failure - Machine breakdowns on a large scale project are
likely to happen, especially if the machines are old or not maintained properly.
6. Delay of material and equipment delivery - Any delay in the delivery of material or
equipment delivery will lead to pushing back work activities.
7. Design Changes- Changes to the design may be needed due to unforeseen
circumstances. Depending on when the design changes occur during the execution of
the project, minor to major delays in the project schedule may occur.
The risks are categorised as shown in the risk breakdown structure below:

Figure 3: Risk Breakdown Structure

Risk Analysis
The following table was used as the standard for assigning probability of occurrence and impact
on project ratings to the different risks identified.

17

Table 5: Probability level and Impact rating


Level

Probability Description

Impact Description

Rating

High

Highly likely to occur

Severe impact on project

15

Medium

May occur

Moderate impact on project

10

Low

Unlikely to occur

Very limited to trivial impact on


project

The following table was used to assess the priority of monitoring the risks and the general
response plan to follow according to their ratings:
Table 6: Rating range on a combined impact of risk and probability level
Final Rating

Description

Priority

150-225

The likelihood combined with the impact of the risk on the


project is severe

High

75-100

The likelihood combined with the impact of the risk on the


project is moderate

Medium

25-50

The likelihood combined with the impact of the risk on the


project is limited

Low

Using the tables above, the identified risks were categorized in terms of priority as follows:
Table 7: Risk priority ranking
Risk
#

Risk

Probability

Impact

Final Rating Priority

Weather Delay

Medium

Medium

100

Medium

Inadequate Planning

Low

High

75

Medium

Poor Cost Estimates

Medium

Low

50

Low

Geotechnical
Problems

Medium

High

150

High

Equipment
Malfunction/Failure

Low

Medium

50

Low

Delay of material
delivery

Low

High

75

Medium

18

Design Changes

Low

High

75

Medium

The results of the qualitative risk analysis are shown in the probability and impact matrix below:

Figure 4: Probability and Impact Matrix


Based on the above qualitative risk analysis, a sensitivity analysis was performed on the risks
to quantify them. The risks were quantified in days, where a negative risk would result in a
delay (in days), and a positive risk would cause the activity to be expedited. Weather conditions
would severely affect the project schedule, since rain, tornadoes or typhoons would cause work
to be halted until such a natural occurrence would be over and work can be resumed. The risk
due to the weather conditions was calculated using weather reports from previous years and
weather predictions for the expected duration of the project. Underestimating the amount of
time certain activities would take to be completed could results in delays in the overall schedule.
The risk due to inadequate scheduling was estimated to be relatively low due to the extensive
time that was spent by the project management team and contractors to plan the project. If
materials and labor costs are poorly estimated, especially if they are underestimated, their actual
cost could cause the management team to use the reserve money from the budget, which could
cause delays in the project schedule due to the bureaucracy of obtaining approval for the use of
reserve money through the proper channels.
Since a major portion of the project involves excavation and preparation of the land for the
construction of the ring road, any geotechnical problems that may be encountered during the
19

execution of the project could lead to delays in the schedule, depending on the scale of the
problem encountered. Machine breakdowns on a large scale project are likely to happen,
especially if the machines are old or not maintained properly, and hence can cause delays in the
project schedule. Potential delays in material and equipment delivery could result in work being
halted or not completed on time, which would result in schedule delays. Any changes in the
design could have a big impact on the execution of the project, especially if it happens in the
latter stages of the project.
The tornado diagram in figure 5 shows the results of the sensitivity analysis, which plots the
different risks against the number of days of delay that can be caused due to each of them. The
negative number of days shows positive risk, that is, if the risk/activity takes less time than
anticipated, while the positive number of days show the number of days that the schedule will
be delayed by.

Figure 5: Tornado Diagram on risk sensitivity

Risk Response and Control


Since weather conditions cannot be controlled, the associated risk will be accepted whenever
unexpected natural occurrences happen. The risk will be monitored throughout the project
execution phase through the use of weather forecasts and will be avoided by making necessary
changes to the schedule accordingly. The risk associated with inadequate planning and
scheduling will be mitigated using schedule compression techniques such as fast tracking
(performing some of the activities in in parallel as opposed to sequentially) and crashing
(shortening the schedule by adding resources like approving overtime, or expediting delivery
of materials).
Poor cost estimates can be avoided by negotiating for preferential rates due to the huge quantity
of materials and the large workforce needed for this project. Geotechnical problems will be
mitigated using the extensive feasibility, topography, and geotechnical studies performed
20

before the execution phase of this project. The risks associated with equipment malfunction and
delays in material delivery will be transferred to the contractors, since they are responsible for
the provision of the material and equipment. The risk due to design changes should be mitigated
by the detailed engineering performed before the execution phase of the project.
All the risks will be monitored periodically to ascertain that they can be controlled. The
contingency reserve of $170 million will be used in the control of the risks in order to lessen
their impact on the project schedule. The management reserve of $150 million will be used to
mitigate the effects of any unexpected risks that may arise during the execution of the project
so that any resulting delay will be minimised.

Project Procurement Management


Project manager, Devin Prazak, will enforce the project procurement management plan which
consists of plan procurement management plan, procurement execution, control procurement,
and close procurement.

Plan Procurement Management


The City project managers determined that all project deliverables are outsourced, this gives us
the ability to access skills and newer technologies, as well as provide job openings for the City
in the effort to revitalize the economy downturn.
All planning, earthwork, paving, and utilities will be outsourced.
Tiffany Hwang, senior civil engineer, is responsible for all planning phases. Bora Yoon from
Ring Road Construction Ltd. is the lead contractor for earthwork, and paving phases. Yoona
Lim from Better Electricals Ltd. is the lead contractor responsible for utilities phase. Sooyoung
Choi is the main highway inspector to enforce quality control. And finally, Yuri Kwon is the
highway consultant who is responsible in providing professional advice on construction details.

Conduct Procurement
The City of Texas released a request for proposal (RFP) for each outsourced area of work. The
RFP was open for any interested agency for six weeks, upon which the submitted proposals
would be considered. The proposals were all evaluated based on a weighted scoring guide
relevant to the citys needs and a short list of sellers was created. The sellers were notified and
asked to provide the city with a best and final offer (BAFO) from which the city would select

21

the most appealing offer. All of the awarded contracts are time and material contracts which
are based on the contractor's services and material that they provide.

Control Procurement
To control procurement, Texas City has set up a system to manage any issues that may arise
over the duration of the project. A contract change control system will be implemented so that
any major changes to the agreed upon contract will require an official request to be delivered
and reviewed by the appropriate members of that project area. The change requests will be
approved or denied in a formal write up with supporting reasons for the decision within 5
business days after the request was submitted. Throughout the project there will be procurement
performance reviews which will be used to analyze the efficiency of material use. Regular
performance reviews and inspections will take place during the execution of the project. These
reviews will ensure Occupational Health and Safety practises are being followed and to ensure
the quality of workmanship is to the standard of Texas City. Work performance information,
approved change requests, and records management will also be officially document and kept
on site in both electronic and hard-copy format.

Close Procurement
Upon completion of the contracts, any outstanding issues of concern will be addressed. All
work completed needs to be confirmed and up to the standards of Texas City. All relevant
documents should be updated and reflect the final results, as well as, archived for future
reference in both electronic and hard-copy format. Contracts can then be reviewed and formally
closed and turn over to the City of Texas can be signed off.

Project Stakeholder Management


Project stakeholder management encompasses the expectations of all members, individuals and
organizations involved and engages each accordingly. Due to the magnitude of the ring road
project, a large number of people will be affected with varying concerns and involvement.
Project manager, Devin Prazak, will ensure these stakeholders will be managed appropriately.

Identifying Stakeholders
The stakeholders include all individuals and groups affected by the announcement, execution
and completion of the project. These stakeholders, their roles, and contact information can be
seen below in table 8.
Table 8: Stakeholders information
22

Name

Position

Internal/
External

Responsibility

Contact
Information

City of Texas
Department of
Transportation

Client

Internal

Project Sponsor/
Financer

ctt@texas.com

Sam Tseung

Chief
Operating
Officer
(COO)

Internal

Senior Manager,
approves funds, and
is the superior of all
project managers

y2j@texas.com

Prashant
Nundloll

Project
Manager

Internal

Plan and execute


project.

loll@texas.com

Navy Kaur

Human
Resource
Manager

Internal

Team member,
assist in resource
team hiring

kaur@texas.com

Devin Prazak

Civil
Construction
Manager

Internal

Manage field civil


prazak@texas.com
related activities and
resources

Naveed Pirzado

Electrical
Manager

Internal

Manage electrical
construction,
installation and
commissioning
activities

Bora Yoon

Lead
Contractor
from Ring
Road
Construction
Ltd.

External

Plan detailed
by@rrcl.com
landscape and
drainage design.
Supervise 8,500
skilled labourers to
carry out landscape,
drainage, earthwork,
pavement tasks,

Yoona Lim

Lead
Contractor
from Better
Electricals
Ltd.

External

Plan detailed
yl@bel.com
electrical wiring
design for electrical
power supply, and
hire 1,500 skilled
labourers to carry
out electrical wiring,
and lamp posts and
traffic lights
installation.

pirzado@texas.com

23

Tiffany Hwang

Senior Civil
Engineer
from City of
Texas

Internal

Lead civil
engineering
department team to
conduct feasibility,
geotechnical, and
topographical
studies.

ty@texas.com

Sooyoung Choi

Highway
Inspector

External

Inspect road
conditions,
pavement cracks,
and soil erosion.

sc@hi.com

Yuri Kwon

Highway
Consultant

External

Provide professional yk@hc.com


expert advice on
highway planning,
highway
infrastructure, and
construction details

Employees

Employees of
different
disciplines

Internal

Employees involved N/A


road construction
project

Customer

Public/
commuters

External

Local and
international public/
commuters

N/A

Suppliers

Material
Suppliers

External

Supply all the


material

supplier@gmail.com

Government

US
department of
transportation

External

Government official
regulation and
guidelines provider
for roads and
highways
construction

gov.us@gmail.com

The following is the stakeholder analysis performed based on internal and external
stakeholders interest and influence level.

24

Figure 6: Stakeholders Analysis


As the stakeholder analysis is performed by the project manager and shown in the above table,
all of the internal stakeholders are very support and cooperative. During the stakeholder
analysis, the project manager also identified that the sponsor, COO and external stakeholder
such as government and senior civil engineer have highest interest and influence in this project
so need to be managed with maximum effort. For example, they need a weekly updates on
project progress, scope, cost and schedule baselines. Based on this requirement, the project
manager will continue communicating and updating these stakeholders to ensure they are
satisfied. In addition, the remaining stakeholders (as mentioned in the stakeholder table) are
also given the required attention to gain their satisfaction. For this purpose, the project manager
has implemented an automated system in the organization, where all stakeholders including
internal and external can see the project milestones and progress to ensure they are properly
informed on the project's progress.

25

Lessons Learned
Category

Issue Name

Problem/Success

Impact

Recommendation

Project
Management
Knowledge
areas

Project
Management
Concepts

The structure of
phase-1 closeout
report was not
properly done,
where project
charter was
included in
planning phase,
however it should
have been in
Initiation phase

Though the
assigned work was
completed as per
PMI project
management
guidelines, there
were mistake in
project report
compilation, the
impact was
minimal.

The project
manager should
recheck the final
report before
submitting to client
/ stakeholders and
rectify any issue
proactively.

Procurement
Management

Contract
Requirements

The Project
Manager (PM) was
not fully engaged
in the contract
process.

All requirements
were not included
in the initial
contract award.

PM must be fully
engaged in all
contract processes.
This must be
communicated to
both PM and
contract personnel.

Human
Resources
Management

Award Plan

There was no plan


for providing
awards and
recognition to
team members.

Toward the end of


the project morale
was low among
the project team.
There was
increased conflict
and team members
were asking to
leave the project.

The PM should
institute and
communicate an
awards/recognition
program for every
project.

Quality
Management

Construction
Material

A process for
determining
acceptable
construction
material quality
was planned into
the project.

This allowed the


project team to
work with the
contractors to
smoothly ensure
all materials were
of acceptable
quality and
avoided any re-

Always plan quality


standards and
allowances into the
project plan. This
helps avoid delays
and cost overruns.

26

work and delays


associated with
substandard
material.
Risk
Management

Zoning
Approval

A risk was
identified that
there may delay in
receiving approval
from the
government. This
was a success
because it was
identified early
and planned for.

Impact was
minimal because
the PM included
potential zoning
delays into
feasibility section
of the project
schedule.

Always consider
external impacts on
the project cost and
schedule. This
must be continuous
throughout the
project lifecycle.

27

APPENDIX
The inconsistencies in the project proposal and this report are as follows:
A more specific responsibilities for each project team members:
Project Cost Management - Prashant Nundloll and Sam Tseung
Project Quality Management - Sam Tseung
Project Risk Management - Prashant Nundloll
Project Procurement Management - Devin Prazak
Project Stakeholder Management - Devin Prazak
Lessons Learned - Navid Pirzado

28

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