NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT & RESEARCH PUNE SCHOOL OF DISTANCE EDUCATION

POST GRADUATE PROGRAMME IN CONSTRUCTION MANAGEMENT PGPCM

NCP-26

SUBMITTED BY Mr. ANANT S. BODHANKAR (Reg. No : 28-06-11-5604-2101)

PROJECT IDENTIFICATION:
Project definition: A project is defined as an endeavor taken to create a

unique product or services. Although the project is mint for delivering a unique kind of services, it has common steps in its developmental phase. Following are the steps that commonly appear in the life cycle of any project. 1 2 3 4 5 6 7 Conceptual Analysis. Technical & Feasibility Studies. Construction planning and analysis Construction phase Service / operational phase Maintenance and make over. Demolition / renovation.

Conceptual analysis:

Conceptual analysis is the very first step of project life cycle when the project virtually takes a birth. It deals with:

Exploring the junk of idea. Brainstorming. Optional analysis. Finally ends in coming to a conclusion of the kind of service & Benchmarking for the same.

Techno - Economic feasibility Report (TEFR): This is the second step in which the ideas or the options that are thought of are weighted on technical grounds. Further the feasibility deals with decision making from the view point of Returns (financial as well as social) from developing of the facility. This report of technical and feasibility will discuss upon factors such as:

1.
2. 3. 4. 5.

Location aspect of the service i.e. Where to create? Topography of the area. Phases of construction. Roughly time estimate for construction. Materials required for the creation. Availability of that material in the Local Market/ international

6.
markets. 7.

Transport availability for bringing in material to the site. Availability of Skilled and Productive labor near the Site. Present and Future cost of the resources available and its cost of

8.
9.

maintenance. 10. 11. 12. 13. Rate of Depreciation of the Resources Deployed. Adequate sources of energy including gas, oil and electricity. Communication Facility Any political or institutional factors that may cease or impeded the

Development and Operation of facility.

14.

Weather Report all round the year.

Lets go in these steps for the given case of Cricket Ground: Definition of the project:
The present service is meant for creating a facility for cricket match with following benchmarking: Total capacity spectators Number of matches per year = 80,000 =4

Number of years assumed for recovery of the investment = 5 Cost per ticket = Rs. 100.00

Hence, total amount that can be recovered in five years = 80,000 x 4 x 5 x 100 = Rs. 16, 00, 00, 000 (16 crores).

Project Features:
Following are the major construction features in this project:

1.
2.

Construction of cricket ground: 25000 Sq.m. Pitch length: 22 yards Spectators seating capacity: 80,000 Facilities for stadium; Press Box, VIP lounge, Pantry, Players dressing rooms (2nos), Gymnasium, Practice pitches, Facility for TV crew, Night landing facilities

3.
4.

5.

Other revenue generating facilities: Restaurants, Souvenir shops, mini Market, baby care center etc.

 Feasibility Studies:
Before the commencement of any project is being studied from various aspects Major aspect of study is Economic feasibility.

Economic feasibility:
Total maximum outlay of the project Total period for return Revenue : : : : Rs.1600 lacs 5 years Rs 100 x 80000 Rs. 80, 00,000 p.a. Rs. 80 Lacks. Maintenance charges : Rs 10 Lacs p.a.

Depreciation @ 20% per annum (Based on condition that cost of construction is too recovered in 5 year.

Year 0 1 2 3 4 5 Cash 16,00,0000 48,00,000 48,00,000 48,00,000 48,00,000 48,00,000 Flow Let Internal rate of return be r %. Bank rate of return: 12% For project to financially feasible, Rate of return should be more than bank rate of return.

16000000

= 4800000 / (1+r) 5 + 4800000 / (1+r) 4+ 4800000 / (1+r) 3

+ 4800000 / (1+r) 2 + 4800000 / (1+r) 1

The Value of r = 0.145, i.e. 14.5 %

It is being proposed that

debt: Equity: 70:30

Thus since no land is coming under Forest Land, sufficient land can be acquired at the market rate + bonus (in the form of free tickets for the matches for one year etc.) to ensure the cooperation from the owners.

PROJECT DEVELOPMENT PROCESS:

A. Project Management Organization:
In development of project, organization of the various elements is necessary which ultimately forms Project Management Cell ( PMC) consisting of the following departments that work in co-ordination with each other and ensures that the project shall complete in the decided time, with the specified quality standards and within the Budgeted cost.

1.

Architectural Department: Preparation of concept plan/ architectural arrangements of the various

components of the stadium, discussion on the plans with management and deciding the final layout of the stadium and allied arrangements from with the Management, getting sanctioning of the plan from the appropriate city planning authority , releasing the plans and GFC for construction on approval from the

authority.

2.

Legal and land acquisition Department: Checking all documents and property, give title clearance, preparing legal agreements between the Clients/ land lords, submission of legal document to the concerned Government Authority.

3.

Engineering department: Survey, droughts of plans and drawings, estimation, finalization and review of various specifications as per sales requirements, schedules of works, supervision of work, maintaining of quality of work.

4.

Execution department: They are responsible for execution of the works through various agencies or through departmental labors etc. as per design, drawings and specifications. This is the most important department which has responsibility of making the plans true at site.

5.

Planning, monitoring and control cell: They are supposed to prepare the construction schedule in coordination with the construction and other related department, reporting to the management on regular basis regarding the progress of work, follow-up with the various departments to ensure the timely completion of the work and within the budgeted cost.

6.

Accounts & Finance Department:

Preparing annual budget as per policy decision allocating the funds to various departments, arranging of funds through clients/bankers/depositors to achieve the target. Prepare accounts and balance sheets, prepare and pay various taxes to be paid by the company, maintenance of record of wages and salaries payable to company employee, allocation of funds to the various departments.

7.

HR, Personnel and Administrative Department: Setting up rules and regulation of the site as per the Government rules, allocation of space and furniture to various departments, awarding staff with increments, appreciations etc. arranging training programs and tours for betterment of company, maintaining provident Fund records.

Project Reporting:
TIER 1

1.

Monthly Corporate Report to Director: - Project planning and control will

look after progress of the project and monitoring in terms of the cost, quality and time. Planning and control will involve instilling a detailed management information system for control and monitoring and here we are talking about 3 tier control of project. TIER 2 2. Weekly Progress Report to project Manager. 1 Weekly Progress Review Meetings. Contractor In-House

The above-mentioned report and meeting talks about detailed monitoring of the project at site Execution Level whereby detailed report of Weekly Progress is discussed and analyzed for recovery plans and progress monitoring. Report is prepared for assigning the planned and achieved targets and to formulate recovery plans if required for control of delay. Weekly meetings with Contractor discusses pending issues and design queries that may delay the progress of the work also the meeting is held up to chalk out recovery plans for expediting the work by deployment more resources. In house weekly meeting are held to discuss future plans and issues related to progress, design, and certain critical decision, which needs timely attention.

TIER 3 Daily Progress Report by Contractor: - Daily Report is a comprehensive record of progress of the work at site in terms of daily planned targets and achieved one. Any slippage from the planned is recovered for recovery on the next working day and also the report is thoroughly checked and verified by site Engineer for billing and procurement of materials so as to Maintain supply chain

management. Daily progress Report act as a ready tool lower management level to assess the progress and also for maintaining record of resource available at site for further progress. Please find enclosed herewith our project Organization Chart, based of which hereby we have described responsibilities of various key posts: (ANNEXURE 1)

 Project Execution:
1. Project Manager: The project manager is the centric pin around which the whole construction wing revolves. He is entrusted with the task of integrating the interdisciplinary and inters organizational efforts under changing environment for successful accomplishment of the specified objective. He operates independently for achieving the specified goals within the available resources. He is accountable for success & failure of the project. In particular his responsibilities include team building, financial control, contract management, technical management,

resources managements, interface management .and quality managements His functions vary but his roles, which reflect the behavior pattern identified with their specified position is similar in almost all types of projects. The construction planning process is stimulated through a study of project documents. These doc. Include-but are not limited to the available technical and commercial studies and investigating, design & drawings, estimates of quantities, construction method statement, project planning data. Contract documents, site conditions, worming regulations, market survey, local

resources, project environment and the clients org. The planning process takes in account the strength and weaknesses of the org. Planning follows a systematic approach. Generally following steps are involved in planning for a project: 1. Define the scope of work to be performed.

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2. Identifying

the

activities

involved,

and

assessing

the

approximate

quantities of physical resources needed activity wise. 3. Preparing the logic or network diagrams (s) establish a relationship among activities, and integrating these diagrams (s) to develop the project network or model. 4. Analyzing the project network or model to determine project duration, and identifying critical and non-critical activities.

5. Exploring trade off between time and cost to arrive at the optimal time
and costs for on the project work schedule. 6. Establishing work option within specified time and resources constraints, and deciding on the income of each work schedule. 7. Establishing standards for planning and controlling men, materials equipment, costs and income of each work package. 8. Forecasting input resources, production costs and the value of the work done. 9. Assigning physical resources like men, materials and equipment activitywise, and allocating these to the organizational units earmarked or execution. 10. Forecasting the project budget allocations for achieving targets assigned to each organizational units. 11. 12. 13. 14. Designing a control system for the org. Developing the resource, time and cost control methodology. Evolving an information communication system. Computerizing the planning and control system.

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2 1.

Civil Engineer: Prepare project Implementation plan and get it reviewed from project manager. 2. 3. Review the budget. Review all the tender documents, prepare scope of work, prepare CAF (Contract authorization form) and send to the Management approval. 4. 5. Complete responsibility of smooth working of the project site. Co-ordinate with Master Architect and his sub Consultants for completion of the schedule work in time and quality. 6. Keep overall watch on technical and non-technical staff and getting the maximum our put from the team. 7. Attend all the program meetings, conference meetings, sub-contractor meetings, seminar or any meetings. 8. Monitor the project master schedule, sub-contractor schedule and organize the weekly meeting with the sub-contractor for monitoring the schedule. 9. Co-ordinate with the in house department like Architect Department, Legal Department, purchase department, Account Department,

Contract Department, Project Department etc. 10. 11. All the correspondence to the sub-contractor and in-house department. Report daily to the Project Manager.

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3 1.

Site Engineer (Senior Engineer): Detail study of drawings, specifications and BOQ, before starting the Project. 2. Co-ordination between different agencies to ensure smooth working of the project. 3. 4. 5. Maintain the quality of work and control wastage of material on site. Inspect and sign the job cards for sub-contractors individual activity. Discuss the practical problem faced during execution with the project In-charge. 6. 7. Prepare the material requirement ( indent ) Check the daily reports, R.A. Bills, Final bills at various work stage. Prepare the daily report of sub contractors and provide special comments to the PICs for action. 9. 10. 11. 12. Remain present for all type of concreting works. Maintain the proper housekeeping at site. Attend the weekly progress review meetings of the sub contractors. Report to PICs.

8.

4
1.

Contract Administrator: Collect all the drawings, BOQ, Specifications and issue the tender documents to the pre-qualified bidders. 2. Organize a pre-bid meeting with all the qualified contractors, and answer all their queries in the meeting and send written Minutes of

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Meeting for the same. 3. 4. Evaluation of all the bids and finalize the best bid. Issue a notice to proceed for the best-qualified contractor from the evaluation. 5. Organize kick off meeting with the work awarded contractor and discuss all the quality, schedule, submittals, request for information status, Proposal status, and discuss the implementation of

Environmental, Health and Safety of all the workers. 6. Organize weekly progress review meeting with his subcontractors and prepare weekly minutes of meeting and send it to various concerned departments. 7. Prepare all contractual correspondence and send to the sub-

contractors. 8. Report to Project Manager / Contract Manager.

Project Operational phase:

This is the final phase of the construction life cycle of the project when the project becomes able to deliver the services for which it has been existed. This mainly deals with the operational phase and very rarely related to the construction wing or construction phase except the on field changes that are required to be done as per the requirement for the preliminary span of operation typically varying from 06 months to 08 months.

Maintenance and make over, demolition & renovation phase:

This phase typically comes at the end of the structure when its components are

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either tend to become non serviceable or else becomes out dated as per the existing demand / changes in the expectations from the services. This deals with substantial renovations as possible within the existing system partial demolition and reconstruction of the facility. This typically may come after 60 to 65 years latter in the life of the structure. But in case of the services like create stadium where serviceability is ruled by the demand or changes in the expectations from the services the renovation cycle may come even early. Hence to avoid this one may go for look ahead to wards the trend and may give additional features to the facility being constructed so that it will sustain the dynamism in the expectations.

B. PROJECT PLANNING AND CONTROLING: Project Preliminary Plan:

Acceptance of the feasibility studies marks the commencement of the

preliminary plan-making process. Its main aim is to provide direction to the client managers and staff employed during the development phase of the project. The project preliminary plan forms the basis for developing the project construction plan. The preliminary plan shall include the following: a. A project time schedule and the skeleton network to highlight the work dependencies, project milestones and the expected project completion time. b. The project designs and drawings preparation schedule. A breakdown of project work into contracts, along with a schedule of contracting activities, including the tender preparation period, tender

c.

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finalization

period

and

the

contracted

works

commencement

and

completion dates. d. e. f. A resources procurement system. Project organization and staffing pattern. Preliminary forecast of funds requirement.

Contracting Strategy:
The Contacts will be awarded to the various Contractors such that the contractors are not independent on each other for the completion of one activity., i.e. Contractors Manager has to analyze and define the Scope of Works for various contractors such that each one performs as an entity and are independent of whatever they are doing on site. For example when we assign Contract for the Sewage Network and Irrigation we should be assigning it to the same contractor, so that in execution the site people do not face the problem of invert levels and complaints of non completion of the jobs due to independency of the activity. For the proposed Cricket Stadium we could allocate contracts as follows:

Construction:
1. Earthworks Main stadium foundations and superstructures including General arrangement for sitting.

2.

3.

Commentator box, VIP stands, Player Gallery, Player rooms and

toilet facilities etc, 4. Canteen for players and spectators

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5.
6.

Six Platforms for TV cameras Parking arrangement. Safety fencing all around the stadium for players safety point of

7.

view.

8.
9.

Furniture for stadium and players. Equipment for players.

10. Electrical Works for cables and Day / Night lighting arrangements
for stadium. 11. Turnkey for Electrical Substations.

12. I.T. (Cabling) and Equipments (Turkey) 13. Security System Turnkey. 14. Sewer, drainage, water supply including Construction of tanks and
various pumping units. 15. Proper leveling of the main contractor. 16. Lawn Contract including sprinkler irrigation arrangements.

17. Proper drainage system during the monsoon.

18. Maintenance contract to maintain the stadium and facilities. 19. Contract for pitch preparation.

PROJECT WORK BREAKDOWN:

The project work breakdown process involves splitting of the project works into the Manageable constituents arranged in a hierarchical order till the desired level. These levels are categorized into subprojects, tasks, work packages,

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activities and operations. These levels depend upon the plan type, the nature and complexity of the project and the expected degree of control. Following is a level one Work Break down Structure for the proposed cricket stadium. Further this is to be divided into activity level so as to have complete control of the activities. Project Concept plan:

1. 2. 3. 4.

Preparation of Architectural layout. Review and comments on architectural layout. Approval from Management for architectural drawing. Submission of architectural layout for TP sanction.

Engineering detailing:

1. 2. 3.
4.

Survey and markings for the area. Detailing of site office and establishments. Soil investigation for foundation design. Foundation design. Design of structural components. Design of water supply, sanitary systems. Design of Electric works, lighting layouts. Design of security systems.

5. 6. 7. 8.

Tendering and sub contracting:

1. 2. 3.

Inviting quotations for the work packages. Short listing and negotiation with the sub contractors. Award of works.

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Construction: 1. Establishing the site office. Commencement of earthworks and foundation related activities. Start of super structural works. Start of finishing items. Start of landscaping and area improvement. To Install and test system such as electrical supply, .security, etc.

2. 3. 4. 5. 6.

The breaking down of a task packages into its constituent activities requires a study of methodology of execution of the work package. Generally, known by term method statement, this methodology is evolved by the planning engineer on the basis of his construction experience & discussions with Construction project are best managed by work packages, which, in turn, are best, planned & monitored by activities. A project planner uses activity as the common database for planning project. Activities duration from the basis for time planning & scheduling of the project works. The inputs of labors, Materials & machinery needed for execution of each activity enable preparation of resources forecasts. The activity sale price is used to determine income & cash flow forecasts. The activity base is vital for monitoring progress of the project work. Various methods of identifying tasks, Work-packages & activities are described.

CPM / NETWORK ANANLYSIS:

Network Elements: 19

The

client

entrust

the

construction

of

project

facilities

to

the

project

management may team headed by the project manager or the resident engineer. This team may be from the clients own construction agency or from a client-appointed Construction Management/Consultant firm or from a suitable organized combination of these. The planning chief is entrusted with the task of developing the project construction plan. It includes the contracted works plan and commissioning plan, as applicable. The project construction plan as well as the contracted works plan further includes the following plans: a. Time plan It despites the schedule of project activities for completion of the project within the specified time.

b.

Resources plan it forecasts the required input resources of men, material, machinery and money for achieving the project completion time target and cost object.

c.

Plan for controlling project it encompasses the design of control system monitoring system codification sys. And the computerized information sys.

CPM - Critical path Method:

Critical path is defined as the set of activities that take the longest duration to achieve the completion of the project. These activities have zero floats

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available and any delay in these activities leads to direct impact on the project Completion date. 1. Earthworks. 2. Foundation Work & Retaining Structures. 3. Civil Works. 4. Internal Services. 5. Roofing. 6. Spectator Stands. 7. VIP Stands. 8. Television Stands. 9. Press Box. 10. Appointment of Consultant. 11. Submission of Feasibility Report. 12. Land Acquisition. 13. Award of Contract for Civil Earthworks.

BIBLIOGRAPHY/REFERENCES:
Construction Project Management Planning Scheduling and Controlling by Shri K. K. Chitkara. NICMAR Study material.

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