Cross Rail Project: Construction Plan, Budget & Risk Analysis
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Introduction - Cross Rail Construction Plan and AnalysisPurpose of the plan
The purpose of the construction project of the cross rail is associated with increasing the capacity of the railways through reduction in crowding and enhancement of the connectivity between the city of London and the south east of England. The capacity is aimed to be increased by an estimated percentage of 10% by the programmed of construction of railways by Cross rail Ltd. The project plan would aid in providing a high frequency railway service of passengers connecting the rails from the west corridor to the east corridor.
Background of the project
The Cross line project proposed for the first time, in 1941 by George Dow. The Government approved the construction project involving the laying of the railway tracks of about 118km from Maidenhead and Heathrow in the west to Abbey wood in the east of England. The construction has delayed for a long time and finally the construction bill is due for the completion in the year 2023 that has started in the year this year in 2022.
Approach of the project
The approach that has followed against risk management has structured in a way to deliver the construction of the crossrail in a series of stages. The different stages and phases of the construction project includes,
Phase1: Introduction of rolling stock on suburban services
Phase 2: Network routes between the west and the east corridors
Phase 3: Agreements with the vendors and suppliers
Phase 4: Conducting hardware and software testing
Phase 5: Training and implementation of the technology
Goals and objectives
Business Goals
Cross rail established in the year 2001, to set up and build a new railway in London that may know as the line of Elizabeth, which will be open from central London. This company has fully owned by the subsidiary of Transport of London and sponsored by transport department of London. As per the opinion of Mio et al.(2020), states that the goal of Cross rail provides high-frequency advisory practices that can help the local people of London. The goal of the business is to help the clients and the people that undertaken into the company. The aim of the company is to help clients all over the world with their full potential under the scheme of rail infrastructure. Goals are very important in every sector of work as they provide the potential to work and achieve the goals of their organization as soon as possible.
On the other hand, the goal of Cross rail is to support the new innovation that can be concluded for the development of their organization and can provide a huge benefit to the organization. The company also works accordingly to achieve the infrastructure theme, which will help to enable the provisions in the network of transport. As per the viewpoint of Di Vaio et al. (2020), states that the company can achieve its goals of the organization as they focus on the development that will lead to the sustainable development of the company.
Project Goals
Cross rail works for developing the construction of the railway that will construct in central London from west to east. The aim of constructing the project is to provide service to the passengers from the railway services. The main objective of the project is to increase the capacity of rail, and to reduce the capacity that happens during travelling on railways due to huge crowds. The project also aims to increase and improve the connectivity from London to South East England. As per the opinion of Shields et al. (2018), the goals of any organization help to determine the attachment and improve the level of determination that is regarded in the organization.
Cross rail also aims to develop the project of the organization as they put it into the organization. The aim of the cross rail project is to determine the sustainability by which the company can provide their passengers with a good service. The main organizational aim of cross rail is to develop the status of the organization as they focus on the development that regarded and concluded for the development of the organization. As per the opinion of Valencia et al. (2019), states that cross rail also makes the configurations that regarded for the development of the organization that can develop for the changes in the organization. Moreover, the organization can work for the development and can consider the objectives where they can be able to achieve the development in the organization.
Engineering Economic Analysis
The technology of Building information has established by the project management team. The net cash flow from the operating activities that have generated is£ 10m (Jackson, 2018). The cash that has utilized against operations calculated as £40.10m and an amount of £1112.3m utilized against the investing activities. The net cash that has generated from the investing decisions made during the year is £1153.9m. The cash inflows that may generate to utilize in the preparation of the budget considering the elements of cost that related to the project planning. The net cash inflows and cash equivalents at the end of the year estimated at £0.3m (Kaewunruen, 2019). The available cash inflows utilized for the various scheduled activities.
Cost Benefit Analysis
The total costs that are associated with the project as incurred sum up to a total of £ 23.69 million. The total benefits that are derived from the project are a total of £ 75 million. Therefore, the cost benefit ratio is calculated as 0.32 and it helps the project management team in decision-making regarding the investment activities. The project is feasible because the total benefit that will be gain by the company is £75.
Total costs
£ 23.69
Total Benefits
£ 75.00
Cost- Benefit ratio
£ 0.32
Table 1: Cost benefit analysis
(Source: self-created)
Cash flow diagram
The cash flow diagram shows the benefits that are could be derived over a period of 5 years. The investment of 300 million Euros could be recovered after a period of 4 years and 8 months. The Net present values of the costs that are to be made have been shown in the figure 2 [Refer to appendix 2].
Hence, as per the analysis it is observed that the profit margin will increase in the next five years from £75 to £379.6 and the project is feasible.
Scope of the Project
Projected Budget
The total projected costs that are required and needed for completion of the project, over the defined period of time, has been used for forecasting and allocating the costs on the variables of the project. The planning of the project is very vital from the perspective of estimating the funds that are to be required for the completion of the project. The budget defines the drive of the project funding. The budget planned according to the things that are required for the railway project. The necessary components of the budget have been analysed. The costs related to the direct and the indirect costs, fixed and the variable costs, labour and the materials that have been used impact the processing of the budget are to be aligned with the essential steps that are to be followed for construction and management of the project budget and the plan. The estimated projected costs for the project are £ 15.79 be against the actual expenses of £ 23.69bn.
The contracted cost for the engineered project of Cross rail has estimated at a planned price of £ 50 bn against the actual amount of £ 75 bn (Zerjav, 2018). The difference that has evaluated between the expenses is £ 7.90bn and the difference between the contract prices has estimated to be £ 25bn. The soft costs under the general conditions calculated as £ 4.90bn and actual costs of £ 7.35bn. The overhead profit that may tabulated after making all the adjustments is an estimated profit of £ 34.21bn against actual profits of £ 51.32 bn. The difference therefore is £ 17.11 bn. The differences or the planned and the estimated budget variables like the contract price, total expenses and the overhead profit could be determined pictorially through the figure number 1.
Construction Budget: Estimated vs. Actual
Project Name
Cross rail Project
Date
2022-2023
Income
Planned
Actual
Difference
Contract Price
£ 50.00
£ 75.00
-£ 25.00
Expenses
Budget Item
Estimated Cost
Actual Costs
Difference
"Design fees"
£ 0.30
£ 0.45
-£ 0.15
"Permits"
£ 0.20
£ 0.30
-£ 0.10
"Surveying"
£ 0.70
£ 1.05
-£ 0.35
"Insurance/bonds"
£ 0.10
£ 0.15
-£ 0.05
"Temporary fencing"
£ 0.50
£ 0.75
-£ 0.25
"Equipment rental"
£ 0.60
£ 0.90
-£ 0.30
"Temporary utilities"
£ 0.10
£ 0.15
-£ 0.05
"Job trailer rental"
£ 0.30
£ 0.45
-£ 0.15
"Dumpsters"
£ 0.50
£ 0.75
-£ 0.25
"Project management"
£ 0.10
£ 0.15
-£ 0.05
"Supervision"
£ 0.20
£ 0.30
-£ 0.10
"General labor"
£ 0.60
£ 0.90
-£ 0.30
"Cleaning"
£ 0.70
£ 1.05
-£ 0.35
""
£ 0.80
£ 1.20
-£ 0.40
"Excavation"
£ 0.90
£ 1.35
-£ 0.45
"Underground utilities"
£ 0.22
£ 0.33
-£ 0.11
"Paving"
£ 0.30
£ 0.45
-£ 0.15
"Striping"
£ 0.10
£ 0.15
-£ 0.05
"Structural concrete"
£ 0.20
£ 0.30
-£ 0.10
"Site concrete"
£ 0.11
£ 0.17
-£ 0.06
""
£ -
£ -
"Masonry/stone"
£ 0.30
£ 0.45
-£ 0.15
"Structural steel"
£ 0.20
£ 0.30
-£ 0.10
"Rough carpentry/lumber"
£ 0.70
£ 1.05
-£ 0.35
"Millwork/cabinetry"
£ 0.10
£ 0.15
-£ 0.05
"Insulation"
£ 0.50
£ 0.75
-£ 0.25
"Roofing"
£ 0.60
£ 0.90
-£ 0.30
"Siding"
£ 0.10
£ 0.15
-£ 0.05
"Doors and hardware"
£ 0.30
£ 0.45
-£ 0.15
"Windows"
£ 0.50
£ 0.75
-£ 0.25
"Metal framing/drywall/ceilings"
£ 0.10
£ 0.15
-£ 0.05
"Flooring"
£ 0.20
£ 0.30
-£ 0.10
"Painting"
£ 0.60
£ 0.90
-£ 0.30
"Specialties"
£ 0.70
£ 1.05
-£ 0.35
"Appliances"
£ 0.80
£ 1.20
-£ 0.40
"Elevators"
£ 0.90
£ 1.35
-£ 0.45
"HVAC"
£ 0.22
£ 0.33
-£ 0.11
"Fire sprinklers"
£ 0.30
£ 0.45
-£ 0.15
"Plumbing"
£ 0.20
£ 0.30
-£ 0.10
"Electrical"
£ 0.44
£ 0.66
-£ 0.22
"Fire alarm"
£ 0.20
£ 0.30
-£ 0.10
"Low voltage/security"
£ 0.30
£ 0.45
-£ 0.15
""
"Subtotal"
£ 15.79
£ 23.69
-£ 7.90
"Sales tax"
£ -
"Total"
£ 15.79
£ 23.69
-£ 7.90
""
"Soft costs/General conditions"
£ 4.90
£ 7.35
-£ 2.45
"Site"
£ 1.83
£ 2.75
-£ 0.92
"Building"
£ 8.26
£ 12.39
-£ 4.13
"Overhead/profit"
£ 34.21
£ 51.32
-£ 17.11
Table 1: Projected Budget for the construction Project (Source: Created by learner)
Assessment of the Risks
The risks related to the construction of the railway tracks have been discussed and possible ways for mitigation have been suggested.
Risks
Impact
Severity
Likelihood
Mitigation
Working hours
Could lead to reduction in the efficiency of the workforce
High
Likely
1. Assigning of a Project manager 2.Approach of the management could be comprehensive (DeJong, 2018) 3.Preparing of a communication Plan
Scheduling of the project
Potential loss on the concurrent tasks could be effected (Abu, 2022)
Low
Very likely
1. Creation of a realistic and comprehensive timeline for the project (Gil, 2018) 2.Regular monitoring and review of the baseline of the project plan
Scope of the project
Unidentified scope of the project could lead non achievement of the goals and objectives of Crossrail (Williams, 2018)
Medium
Less likely
1.The defined objective of the project plan in the beginning could be reviewed on a regular basis 2.The undetected scope variables are to be identified
Unrealistic estimation of the costs
Excessively high or low estimation of Costs lead to allocation of funds that are not effective for the construction of railway tracks (Lawrence, 2018)
High
Certainly
1.The cost are to be estimated as per the details of the project plan
Procurement of materials
Procurement of materials from unreliable sources could lead to compromise with the quality of the railway tracks This could lead to increase in future happenings that would disrupt the infrastructure
Low
Very likely
1.The materials are to be procured from reliable sources that are of good quality (Kivimäki, 2019)
Timeline set for the completion of the project
The tasks are to be completed at a given timeline such that the project is completed in the set timeline by the year 2024 (Macchiarulo, 2018)
Medium
Likely
1.The timelines are to be set as per the discussions with the project committee 2.The timelines are to be monitored on a day to day basis
Deliverables from the vendors
Unreliable vendors could impact on the speedy flow of the project and delay the timeline that has been set by the management team
High
Certainly
1.The impact that could be threat to the could be identified beforehand 2.Alternative sources of vendors and suppliers are to be
Table 2: Assessment of risks for the construction Project
(Source: Created by learner)
The management of risks is an integral part of the development of the project plan. Risk allocation could regard as the main approach for Cross rail. The designers, managers, suppliers and other parties are all concerned with the mitigation of risks in procurement of the project.
Constraints relative to the project
Project Constraints
Cross rail works to develop the construction management that helps to make the changes in the organization. The company can also work to develop the changes that are required by the organization to run the business smoothly.
The constraints that faced by Cross rail are about the ongoing issues that faced by the organization. The other issues that faced by the organizations are the negative points that grab the poles and make it difficult for the people who will travel on the railway.
This had a negative impact and caused the problems that regarded in the organization. There is also the problem of toilets that faced by the organization in the railway.
The members of TFA also create difficulties that can hamper the reputation of the organization. As per the opinion of Irfan et al. (2019), states that the company can also make the difficulties that are regarded and concluded for the differentiation in the organizational strength and hamper the reputation of the company.
Critical barriers
The critical barrier that is faced by the Cross rail is integrated by the handrails that are installed on the walkways that are completely secured and are meshed with the installation to secure the installation depot’s engineer from hazards.
The barriers of cross rails also add the steel mesh that is strong and durable that is easy to handle in the organization.
Cross rail will also adopt for the barriers that are required for the structural integrity of the building, the vehicles and the machinery. The barriers may created in the determination of the length that is required for the barriers of the organization.
As per the opinion of Clark et al.(2019), states that the barriers that are developed and integrated with the organization are required by the development that is required for the changes and are regarded for the development of the organization. Moreover, the development that is required and developed for the changes in the organization.
Future Challenges
The future challenges that faced by the organization of cross rail have been reviewed in detail by the organizations.
The construction management also needs to develop the consideration that is required to manage the construction project and regarded for the development process in the organization.
The management also tried to develop and break down the project constructions as they may regarded to work fewer than 36 main countries of the world.
The management also needs to develop the constraints that regarded for the development of the organization as they make the changes in the organization.
The company also needs to develop the constraints that may regard for the development and regarded as the organizational strength of the organization that concluded for the organization.
As per the opinion of Anstee et al. (2019), states that the company also needs to develop the constraints that regarded. It may develop for the optimum strength that is required to make the changes in the organization.
The challenges that also can make the changes are also required for the development in a detailed view of the organization.
Project Management
The WBS, task name and status of the project has defined using the planning table. The status of the tasks are identified and defined on the basis of start and end date and the duration taken for completion.
WBS NO.
TASK NAME
STATUS
START DATE
END DATE
DURATION in days
1
"PROJECT CONCEPTION AND INITIATION"
Complete
1/2/2022
2/9/2024
769
1.1
"– Project Charter"
Complete
1/2/2022
1/11/2024
740
1.1.1
"–– Project Charter Revisions"
Complete
1/7/2022
1/11/2024
735
1.2
"– Research"
Complete
1/10/2024
2/23/2024
45
1.3
"– Projections"
Complete
1/10/2024
1/20/2024
11
1.4
"– Stakeholders"
Complete
1/16/2024
1/29/2024
14
1.5
"– Guidelines"
In Progress
1/19/2024
2/1/2024
14
1.6
"– Project Initiation"
In Progress
1/22/2024
2/9/2024
19
2
"PROJECT DEFINITION AND PLANNING"
In Progress
1/28/2024
2/14/2024
18
2.1
"– Scope & Goal Setting"
On Hold
1/28/2024
2/6/2024
10
2.2
"– Budget"
In Progress
1/31/2024
2/2/2024
3
2.3
"– Communication Plan"
In Progress
2/4/2024
2/12/2024
9
2.4
"– Risk Management"
Complete
2/6/2024
2/14/2024
9
3
"PROJECT LAUNCH & EXECUTION"
Complete
2/18/2024
3/26/2024
38
3.1
"– Status & Tracking"
In Progress
2/18/2024
2/20/2024
3
3.2
"– KPIs"
In Progress
2/18/2024
2/23/2024
6
3.2.1
"–– Monitoring"
In Progress
2/18/2024
2/26/2024
9
3.2.2
"–– Forecasts"
Not Started
2/21/2024
2/23/2024
3
3.3
"– Project Updates"
Not Started
2/22/2024
2/23/2024
2
3.3.1
"–– Chart Updates"
In Progress
2/25/2024
3/26/2024
31
4
"PROJECT PERFORMANCE / MONITORING"
In Progress
2/25/2024
3/26/2024
31
4.1
"– Project Objectives"
In Progress
2/25/2024
2/28/2024
4
4.2
"– Quality Deliverables"
On Hold
2/26/2024
3/3/2024
7
4.3
"– Effort & Cost Tracking"
Not Started
2/25/2024
3/6/2024
11
4.4
"– Project Performance"
Not Started
3/3/2024
3/26/2024
24
Table 3: Project Plan (Source: Created by learner)
Timeline of the project
The timeline of the project has to conducted in line with the timelines that have been set in the project plan
Roles and responsibilities
Roles and responsibilities
Explanation
Planning of the project Architect and Civil engineer
The project plan needs to be planned and forecasted as per the cost requirements and preparation of the estimated cost sheet and budget for the project(O,2019) Planning and designing of the Construction Plan
Management of the project Contractor Asset manager
Scheduling of the employees and the creation of a schedule for the project
Monitoring of the plan Inspection officer
The achievements of the projects are to be monitored and the deviations between the estimated and actual progress is to be met (Milillo, 2018)
Legal and regulatory responsibilities
Adherence to the safety and the legal protocols
Overseeing the progress made
The progress made in the project plan has be closely monitored on a regular basis (Ceruti, 2019)
Table 4: Roles and responsibilities
(Source: Created by learner)
Communication Plan
The communication plan with the various members of the project team helps in achieving the goals of reviewing the status of the project, the various issues that could come up and the reasons for the delays (Bedford, 2021). The roles and responsibilities for the members of the team are well defined in the meetings and the next steps could be discussed on the basis of the progress made.
Objectives
Communicate to whom ?
Ways to communicate
Timeline
The status report of the project
Project team and the various sponsors and funders of the project (Pulido, 2019)
Emails and face to face
Monthly
Meetings
Project team
Video conferencing ,face to face
Weekly
Report for Task progress
Project team
Face to face
Weekly
Table 5: Communication plan
(Source: Created by learner)
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Recommendations from the economic engineering management perspective
The recommendations that can make the changes in the economic perspective of engineering develop and focus on the management that can improve the decision making of the organization. The economic perspective from the engineering management perspective also develops the organizational management for their improvement of the global company. The engineer also works to develop the instructions that are required for the development perspective of the organization. As per the viewpoint of Ahn et al.(2020), it may states that implementation has applied for the development of organization. It may help to conclude the determination and the requirements of the business levels that acts as the organizational benefits and concluded for the development in the organizational in the level that is required for the changes and for the development in the organization.
On the other hand, the perspective of the engineering development can make the changes that may base on the perspective of incomplete knowledge and causes an impact on the organization. According to the perspective of engineering, the additional changes that can have in the organization also lead to the development and the changes in the organization. The company also needs to develop the organizational development that is required and developed according to the perspective of the organization. As per the viewpoint of Singh et al. (2019), states that the organizational status that can hamper the reputation and causes the changes in the organization leads to making the changes and developing the optimum strength of the organization.
The perspective of economic engineering also leads to the success of the organization as they make the development in the organizational strength and causes for the changes that can harm the optimum strength and can affect the organizational strength.
The strength that made to the development of the organization also leads to the changes that can cause the problem. The management can hamper the reflection that concluded for the development that regarded and made the changes in the organization. The other management also needs to develop the status of the organization that can help to develop the strength and required for the strength in the perspective of the organization. As per the viewpoint of Okoro et al. (2022), it has stated that organizational strength has hampers the quality of the organization. It may regard as the development that is required to develop the contents and the organizational strength in the organization. The company also can suggest the development that is required to take the consideration and develop the ideas that can be completed and regarded for the development of the organization. The management also needs to develop the organizational strength that can make the changes and make the development that can considered for the development and can regarded for the changes that need to include for the changes and the requirements for the organization. The company also needs to develop the changes that can make the development and are required for the development in the effort of the organization.
The management can make vital changes that are required and conclude the changes that are required for the changes that can develop the management. There are required for concluding the development and make the changes that concluded in the status of the organization for the development. These can make the changes and conclude the requirements of the organization.
Conclusion
The project plan has been fulfilling the objective of improving and enhancing the suburban passenger service of the city. The projected budget shows the elements of the expenses that would incurred relative to the planning, organising, management, execution and implementation of the project plan. The overhead profits that could earn estimated at 34.21bn but the actual profits are higher than the estimated costs. The management team is recommended to manage the risks that are associated with the planning, designing of the overlay of the construction of components of the project. The risks could mitigate by following the approach of effective communication and defining the roles and responsibilities of the team members. It has been conclude from the project planning that regular meetings with the team members helps to define the objectives in a much better way and the goals of the project are determined without any deviations. The cash inflow of 0.3m could use in the most effective manner for execution of the technological developments for enhancing the plan of the construction project.
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