management structure used in the IPD contract mitigates risk because all

Management structure used in the ipd contract

This preview shows page 2 - 4 out of 4 pages.

management structure” used in the IPD contract mitigates risk because all parties involved havea say in how the funds are used. There should not be any disagreement in the misuse of projectfunds. Our group believes that risks will be identified early and profits will increase since allparties involved will benefit with less risk exposure.
Background image
Q3. Which, if any, of the three atrium options should be chosen? Evaluate the implications ofyour suggestion for process sequencing, timeline, team dynamics, risk, and compensation.Our team believes that the first option – the single floor opening with stairs – should be chosen.The reasons are as follows:First of all, the project has a tight schedule per se. Even though the RFP was sent out on March13, the contract was signed on April 30, which left only 8 months for design and construction. Ifthey opt the second or third option, the design, along with multiple revision processes, andconstruction will require an enormous amount of time. It is quite possible that the PIT team willnot be able to finish the project within deadline. Therefore, selecting the single floor option willdecrease the risk of exceeding the deadline.Second, from the perspective of budget and compensation, the single floor option is also themost attractive one. The current budget was already tight. Under the current compensationsystem, if the budget ran over budget, the contingency, which was $51,000, will first be usedwithout having to go through the PET. As Bernstein mentioned, the atrium would have to bedone within project limits, and Autodesk would consider the option only if it incurred a budgetincrease of 500,000 or less. Since the single floor plan would only cost $476,000, it meansadding the atrium was unlikely to exceed the contingency amount. In comparison, the othertwo options both cost over 1 million, it is quite possible that the extra cost would exceed the
Background image
Image of page 4

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture