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Project Management Report
Project Management Report
Project Team Project Manager: Poulomi Pal Chief Finance and Purchase officer: Surbhi Dhupar Chief HR Officer: Tanya Beniwal Chief Marketing and Strategy officer: Shashank S. Tomar Chief Operations and Controller Officer: Piyush Mantri
Contents
Executive Summary ............................................................................................................... 2 Introduction and Study Rationale .......................................................................................... 3 Project Scope ........................................................................................................................ 3 Basic Assumptions in the project ........................................................................................... 4 Technical Specification .......................................................................................................... 4
Technical Knowhow requirement ............................................................................................................. 5
Work Breakdown Structure ................................................................................................... 6 Foreseeable difficulties .......................................................................................................... 7 Milestone .............................................................................................................................. 7 Resource requirement ........................................................................................................... 7
Phase 1 resource requirement ................................................................................................................. 7 Phase 2 resource requirement ................................................................................................................. 8 Phase 3 resource resource planning ......................................................................................................... 9 Assumptions............................................................................................................................................ 10 Total cost of project ................................................................................................................................ 10 Rationale behind the three-phase project cost allocation duration: ..................................................... 10
Executive Summary
Shillong, the capital of Meghalaya in India is a fast developing economy and has progressed commercially in an exponential manner over the past years. The population of Shillong is approximately 4 lakhs and the economic condition of the people are improving with every progressing year. Keeping this in mind, the trends, choice sand demand of consumers are also changing. With increased commercialization, the shopping trends of people are also changing. As of now there are approximately three shopping complexes with a number of single brand retails store in Shillong. The demand for such shopping experiences in increasing and hence our organization has accepted the project to construct a shopping complex in Shillong for the client R.P.Estates. The report consists of the detailed planning and analysis of the project undertaken by the organization of constructing a 3-storeyed shopping complex complete with parking facility. It starts with the planning phase which involves finalizing on the blueprint, the marked areas of shops, layout of the different floors and the design of the parking facility. After consultation with the client and the finalization of the blueprint, an approximate cost estimate is done and scheduling is done. The approximate cost of the project comes out to be Rs.22Crore. The construction would be done in a phased manner, starting first with the basement and ending with the construction of the top floor. The layout of the complex has been finalized with the client and each floor will be covering a space of 1000 sq. ft.
Project Scope
The project scope is defined in the following manner: A completed 3-storey shopping mall with basement parking lot for vehicles complete with all utilities and amenities like electricity , plumbing, vigilance system, communication system, fire protection system and aesthetic designing Provide high skill training to the maintenance staff of the client for precautionary and preventive maintenance of the building and the facilities Handover of the shopping mall with a high scale event launch with sufficient public promotion
The project scope is decided by an agreement between the client and the organization and has limited chances to be changed during any stage.
Technical Specification
Technical Specifications Type of building Shop specifications No. of shops each type Parking space Civil specifications Average standard shopping center 1000 sq.ft on the first and the second each storey to be sold/rented to a retail outlet, 200 sq.ft , 400sq.ft, 750 sq.ft and 800sq.ft area shop space Ground floor and first floor : 4 x 200 sq.ft, 1x 400 sq.ft, 1x 800 sq.ft Third floor : 4x750 sq.ft Capacity for parking 200 4-wheelers and 100 2-wheelers Water-Cement Ratio Mix proportioning shall be carried out according to the ACI standard designation ACI-613 or Design of concrete mixes The water: cement: sand mixture to be used should be 1:4:2 which is the standard combination used in infrastructure building The walls should have a thickness of 6 within the shopping mall to withstand the force and stress Two 11kV feeders to be obtained from State electricity supply, Back-up electricity to be provided by 4x1000kVA diesel generators Centralized cooling system through centrifugal pumps Procurement of any material before being utilized in construction (i.e bulk purchase) would be sanctioned by inspectors from the organization and client side The total area for construction as sanctioned by client is 3000 sq.ft of which the shopping complex is spread over a 1000 sq.ft over the land. The rest of the area should have a walkway of 4 feet width all around the perimeter as well as the around the shopping complex. The parking space should have a clearance space of 10 ft on each side as well as at the entrance and the exit, the space should be approximately 20 ft The walls of the shopping complex are specified to be 6 thick and that of the boundary wall is expected to be 4 thick
Electrical specifications
Inspection Layout
Constructional Specifications
The organization is required to construct walls on each floor depending upon the above mentioned shop area specification
Legal Approvals
Administration/Management
Systematic Design & Floor Plan Administer the Construction Hiring Contractors Budgeting Accounting Loan Arrangement & Financing Remuneration Training Staffing Compensation&Performance Review Tender Document Preperation Invitation of Tenders Tender Opening & Evaluation Awarding Tenders Procurement of Raw Materials
Ground Level Surfacing Excavation Pouring Concrete Cure & Strip Forms
External Works
Drains & Ducts Columns Joist Beams Laying Masonry Installing Roof Drains Roofing Laying of Tiles Exteriors Interiors False Ceiling
Steel Erection
Main Structure
Masoning Work
Building Finishes
Doors, Windows & Partitions Elevators Railings Cabling & Wiring Heating & cooling Systems Toilets Plumbing Electronic Security Systems Installation Security Personnel Intercom Telephone Lines Wifi Fire Exit Fire fighting equipment Other Hazard Mitigation Municipality Connection
Electricals Sanitation
Works
Security
Communication System
Emergency
Water Supply
Foreseeable difficulties
With any project there are associated difficulties and some of the fore-seeable difficulties associated with this project are: Delay in supplies from suppliers due to reasons like landslides, road blockages or non-availability of the required resources Since the human resource requirement for labour work is supplied by contractors, hence factors like labour unrest within labour union etc may be a problem which might adversely affect the scheduling of the project In case the quality of the raw material fails inspection, and replacement takes longer than anticipated which eats into the buffer time allocated in the project, the scheduling may be hampered thus affecting the progress and cost requirement
Milestone
Milestones 1st October 2013 28th October 2013 1st November 2013 28th March 2014 30th June 2014 16th October 2014 15th September 2014 5th December 2014 11th October 2014 Design and architecture approved by client Permits for construction from Government and Darbar approved Foundations poured marking the start of the construction Bricklaying, and completion of first storey and the basement(parking lot) Completion of second storey Completion of final storey Electrical , mechanical and plumbing inspection passed Final aesthetic designing and fitting of fixtures competed and sanctioned by client Final handover to client with a public event
Resource requirement
The resource requirement for the project is as follows:
Human Resource
Miscellaneous Cost
For clerical jobs Internal resource -2 Average salary 140000 like applying for would be Rs.5000 permits and p.m receiving them Stationary Cost To be obtained 200000 along with other from suppliers amenities and -utilities
Phase 1 total budget = Rs.520000 Contingency margin = 15% Total phase 1 Budget = Rs.598000
12000000
From supplier
Variable
200000
Electrical System
Internal
Contract given
--
58000000
Back Up Power system Labour work, plumbing, electrical fixing and carpentry
From supplier1000kVA x 4 Daily workforce for masonry : 25 Workforce for plumbing : 15 Workforce for electrical System: 7 Workforce for painting : 12
$95000 per generator Masonry @ Rs.300 per person per day Plumbing @ Rs.450 per person per day Electrical @ Rs.450 per person per day Painting @ Rs.250 per person per day Flooring and other internal civil works @ Rs.350 per person per day Kajaria tiles @ Rs.95 for 1x1sq.ft tiles
24700000 2203000
2250000
*The above table does not consider the cost required to be given for electrical supply form the state electricity supplier from 2 11kV feeders as mentioned in the specifications before. This cost is approximately Rs.10000000. Total Budget in Phase 2 = Rs. 162361397 Taking into consideration 15% contingency, the total budget becomes = Rs. 186715607
Electrical lighting Standardized fixtures lighting in the shopping complex Glass fixtures to Both internal and provide the external to the aesthetic look shopping complex
Vigilance System
Installation of close circuit cameras and monitoring room As directed by government to get certified for safe operation On behalf of the client
Procured supplier
Procured supplier
from Fire extinguishers 100000 @ Rs.2000 per unit and other equipment In-house strategy -80000
Assumptions
The salary of permanently hired employees has not been considered in the budget calculation as the organization has separate salary account to handle the same and this cost is taken care of in the overall company expenses and is not specific to the project alone.
Project Duration
The project duration is exactly 1 year and 39 days starting from 25th September 2013 and ending on 3rd December 2014. The project duration has been designed keeping in mind expected problems in work.
Table 1Project Scheduling
Task Name Start Finalize blueprint Village Head Permit Municipal Corp. Permits Utility Permits Ground Level Surfacing Excavation & Foundation
Start date 25th September 2013 25th September 2013 2nd October 2013 2nd October 2013 11th October 2013 29th October 2013 9st November 2013
End Date 1st October 2013 8th October 2013 10th October 2013 28th October 2013 8th November 2013 28th November 2013
Drains & Ducts Bricklaying Steel Erections Basement (Parking Lot) First storey Second storey Third storey Plumbing Electrical Sheathing Vigilance system Fixtures Final Inspection Handover Inauguration
10 days 15 days 15 days 35 days 20 days 75 days 90 days 18 days 20days 5 days 5 days 10 days 3 days 1 day
29thth November 2013 12th December 2013 2nd January 2014 22nd January 2014 5th March 2014 28th March 2014 30th June 2014 16th October 2014 7th November 2014 7th November 2014 24th November 2014 24th November 2014 6th December 2014 9th December 2014
11th December 2013 31st December 2013 21st January 2014 4th March 2014 28th March 2014 30th June 2014 16th October 2014 7th November 2014 3rd December 2014 24th November 2014 28th September 2014 5th December 2014 9th December 2014 10th December 2014 11th December 2014
Political Risk
Enter into written contracts with the Labour Union after having elaborate discussions with the Contractors/Representatives regarding work time duration, leaves, compensation etc. Risks The two major risks identified under this Enter into strictly defined contracts associated head are: Non-availability of resources and with the suppliers with supply risk of non-compliance from suppliers end chain Operational Project delays, especially in the critical Keep sufficient, though not much Risk path due to malfunctioning of buffers in project scheduling to accommodate such delays Inflation risk As money will buy less in future than today Pre decided contracts with suppliers due to inflation the power of money keeps would mitigate this risk thus insulating eroding the project in terms of price mitigation Business Risk It is the possibility that the investments Phase wise project financing to be cash flows will not be sufficient to justify applied with sufficient time lead the investment, represents the degree of
Risk Identification Project financing required for the project might not be obtained in time that would delay the start of the project. This would directly affect the cost and schedule implications of the project . The labour force might go on strikes in case of requirement of overtime leading to project shutdown and subsequent delay. Specially important in case the critical path is affected
Risk Mitigation The usual creditor list is analyzed and approached for project financing based on past history with the creditor, credibility of the creditor
Liquidity Risk
business risks in the project As real estate is generally considered as illiquid asset, not easily convertible to cash without discounting the price. Liquidity risk is high 1. Procuring Licenses and permits- Conflicts of interests with local authorities, official formalities mainly based on good relations with municipal council 2. Construction costs- Inadequate planning of project, lack of procedures, inadequate or unrealistic estimates of costs and deadlines, insufficient communication structure with internal personnel and contractors 3. ContractsContracts are awarded mainly on basis of price without taking into consideration the quality or experience of the contractor
This can be mitigated is all the registration related to real estates are handled by the client as agreed upon in the contract with the client N/A
Scenario analysis is the easiest and most commonly used technique for analysing the risks. The significance of each risk is assessed in terms of: Probability of the event Impact of the event Risk number = P x I P Probability of occurrence I Impact factor of risk Possibility of occurrence Very high chance High chance Greater Chance Possible Likely Unlikely Probability Type and level of risk Impact (P) 0.90 Maximum impact of scope, time and cost 0.75 High impact on scope, medium impact on time and lesser impact on 0.60 cost 0.45 High impact on time, medium impact on scope and lesser impact 0.30 on cost 0.15 High impact on cost, medium impact on time and lesser impact on scope Impact Factor (I) 0.9 0.6
0.3
0.1
Sl. No 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17
Risk Delay in approval from regulatory bodies Unstable government policies Change in regulations Political instability Lawless ness, strikes, lockouts Hike in material prices Unavailability of skilled labour Change in project scope Insufficient technology Delay in completion of construction Request for increase in project budget Strains in contractual relationships Financial delays Change in credit policy Unexpected obstacle on site Slow communication between team members
Risk Probability Impact Number 7.00% 0.9 6.30% 8% 0.6 4.80% 6.00% 0.9 5.40% 5.90% 0.6 3.54% 10.00% 0.3 3.00% 10% 0.3 3.00% 9.50% 0.3 2.85% 3.00% 0.3 0.90% 2% 0.6 1.20% 3.90% 0.6 2.34% 7.80% 0.3 2.34% 4.00% 0.6 2.40% 6.80% 0.3 2.04% 3.00% 0.9 2.70% 2.10% 0.9 1.89% 4% 0.9 3.60%
For each of the 17 risks identified and assessed, a risk response strategy is assigned and eventually implemented. Risk Delay in approval from regulatory bodies Change in regulations Unstable government policies Slow communication between team members Political instability Lawless ness, strikes, lockouts Hike in material prices Unavailability of skilled labour Change in credit policy Strains in contractual relationships Delay in completion of construction Request for increase in project budget Financial delays Unexpected obstacle on site Insufficient technology Change in project scope Risk Risk Number Response 6.30% Share 5.40% Retain 4.80% Share 3.60% 3.54% 3.00% 3.00% 2.85% 2.70% 2.40% 2.34% 2.34% 2.04% 1.89% 1.20% 0.90% Avoid Retain Share Transfer Avoid Share Avoid Avoid Mitigate Mitigate Mitigate Avoid Avoid
Benefits
The project would help the organization in expanding the portfolio of services Also it would lead to winning of further projects of similar nature in Shillong
Facilitating services- Facilitating services are services which are absolutely essential to operation. In a shopping complex, housekeeping and front desk are essential smooth functioning of the shopping mall. The operational staff should be active and well prepared to handle any emergency situation that may occur. It is also important in the sense that since the complex would be open to a large number of audience, hence an agile and active management staff needs to be kept for ready service.
Supporting services- The supporting services are not essential to providing the core benefit, but plays an important role in marketing of operation. These services can be additional training for soft skills and communication to the management staff. Also training regarding the operation and maintenance services of various aspects is equally important to be provided to the management staff.
keep your facilities in good condition make sure your prices are competitive be part of a group buying, promotion and marketing scheme with travel agents, airlines and car hire businesses hire skilled staff grow a loyal customer base have a good reputation
Lessons Learnt
The project planning has given us some important learnings as this is our first major project on such a large scale. We have identified difficulties faced and their subsequent resolution. We need to document
this so that in future there is no recurrence of the similar problems and if we need permanent answers to some questions which might have been mitigated on a temporary basis. The formulation of the project plan was challenging owing to the uncertainties involved in the project. We are using sophisticated technology of this magnitude for the first time and it is a challenge to understand their operations and plan accordingly for their use or installation. Suitable training is required for the same. The next challenge is to deal with the bureaucratic ways of functioning of the government. We have to depend on client for land acquisition and also issues of compensation for inhabitants and land-owners. EIA and clearance from the concerned authorities poses to be another important factor that needs to be taken into account. The complex nature of smooth land acquisition in one of the busiest places in Shillong is in itself a problem. Also, there might be resistance from local shop owners who do not view such commercialization in a good light for their income prospects. The learnings from this project would be to keep provisions for unforeseen circumstances and risks for projects in the future as we realized their importance in this project. Technology awareness is equally important and we need to conduct training and development exercises to keep our knowledge updated. We also have to be careful about project scope and liabilities of the project. These need to be incorporated in the contract and also provision for dispute resolution mechanism should be included which must include arbitration clauses like jurisdiction of courts and probable arbitrators. Coordinating with various stakeholders is always important and so is customer relationship management
Reference
1. Barrie, Donald S. and Boyd C. Paulson, Jr., Professional Construction Management, McGraw-Hill Book Company, 2nd Ed., 1984. 2. Halpin, Daniel W. and Ronald W. Woodhead, Construction Management, John Wiley and Sons, 1980. 3. Hodgetts, R.M., Management: Theory, Process and Practice, W.B. Saunders Co., Philadelphia, PA, 1979. 4. Kerzner, H. Project Management: A Systems Approach to Planning, Scheduling and Controlling. 2nd. Ed., Van Nostrand Reinhold, New York, 1984. 5. Levitt, R.E., R.D. Logcher and N.H. Quaddumi, "Impact of Owner-Engineer Risk Sharing on Design Conservatism," ASCE Journal of Professional Issues in Engineering, Vol. 110, 1984, pp. 157-167. 6. Moolin, F.P., Jr., and F.A. McCoy: "Managing the Alaska Pipeline Project," Civil Engineering, November 1981, pp. 51-54. 7. Murray, L., E. Gallardo, S. Aggarwal and R. Waywitka, "Marketing Construction Management Services," ASCE Journal of Construction Division, Vol. 107, 1981, pp. 665-677. 8. Project Management Institute, A Guide to the Project Management Body of Knowledge, Newtown Square, Pennsylvania, 2000.