INSTRUCTION: Read the case study below and answer the questions that follow. Case Study: NEW ZEALAND WIND FARM: Completed On$-$time and Within Budget Despite Record Storms Despite its remote location, unstable terrain, and torrential record$-$breaking storms that swept away a bridge and closed the area for four months, New Zealand built a wind farm on$-$time and within budget. How was this challenging task accomplished? By employing effective project management and using the correct tools and techniques to ensure end results matched with strategic goals, New Zealand$$s Te Apiti Wind Farm Project was completed in the most profitable and efficient way.

Background In light of significant power shortages and limited forms of available power generation across New Zealand, it has become increasingly important to explore more diverse types of power generation. And, due to the country$$s mountainous terrain, harnessing renewable energy is seen as an ideal opportunity. Meridian Energy Ltd$.$ is New Zealand$$s largest state$-$owned renewable energy generator. It committed to exploring a wind farm project and identified a target site before undertaking extensive consultation with the community. From this it shaped the project to meet the expectations and wishes of the community during the planning process. Public consultation commenced in May $2003,$ and full consent was granted within four days of the hearing. Work started on the Te Apiti site on $10$ November $2003.$

Challenges The key challenges for the team were to work in the physically demanding environment, adhere to landowners$$ requirements and meet all the key project milestones. Over $20$ km of roadways would need to be constructed and $40$ km ofunderground cabling installed. The terrain of the $1150$ hectares site presented many additional challenges: there were numerous gullies, streams, steep drop$-$offs and unstable soil, and a major Natural Gas Corporation pipeline ran through the site. The plan called for Te Apiti to be the first wind farm in New Zealand connected directly into the national power source grid, and be one of the first new power stations subject to the requirements of the Electricity Governance Rules. Meridian therefore had to demonstrate compliance with the technical requirements of the system operator in order to ensure that the operation and security of the grid would not be compromised. From its commencement in November $2003,$ the project suffered adverse weather conditions with double the expected rainfall. On $6$ February $2004,$ rainfall peaked with a $50-$year storm record, followed by a $100-$year storm on $16$ February. The rainfall brought the area$$s highest recorded flooding, and a civil emergency was declared. However, the floods caused little problems onsite due to diligent environmental management, although the main access bridge was swept away, and the Manawatu Gorge$$the main water route$$was closed for four months, limiting site access to a single route. Due to the flood and resulting infrastructure damage, key challenges included: working with the local government to restore the destroyed bridge; revising the work schedule when all contractors, facilities and staff were required to assist with flood recovery incompliance with the Civil Emergency Act; stabilizing existing roads to ensure consistent delivery of materials; maintaining and updating daily and weekly schedules to meet program targets; and acquiring additional resources to support the project team.

QUESTION $1(10$ Marks$)$

How would you describe the risk management approac h taken by the management of the Te Apiti project?

QUESTION $2(20$ Marks$)$

Assume that you were appointed to advise the projec t manager for the Te Apiti project. What claus es would you recommend be inc luded in contrac ts with suppliers to minimise the risk s on the T e Apiti projec t$?$ Us e ex amples to c onvinc e the T e Apiti pro jec t manager of the value of your recommendations.