Submitted by:

Project ControllerProject ManagerProject EngineerProcurement ManagerHR & Legal Officer-

Pillutla Anirudha Asish (2012PGP076)

Manan Chandna
(2012PGP068)
Ganesh Shanker
(2012PGP086)
Sajal Goel
(2012PGP088)
Sushree Tripathy
(2012PGP099)

Construction of New Hostel

Block in IIM Shillong
Project Management Final Report
Detailed project management report on construction of a new hostel block with an indoor sport
complex within the existing IIM Shillong Campus in 18 months to accommodate 84 students within a
budget of 2.5 Crores.

Contents
1.

Executive Summary ............................................................................................................................... 2

2.

Introduction .......................................................................................................................................... 2

3.

Project Scope and Basic Assumption .................................................................................................... 3

4.

Technical Know-How Requirements ..................................................................................................... 4

5.

Foreseeable Difficulties and Constraints .............................................................................................. 5

5.1.

Financial Difficulties .......................................................................................................................... 5

5.2.

Political difficulties ............................................................................................................................ 5

5.3.

Construction difficulties .................................................................................................................... 5

5.4.

Other difficulties ............................................................................................................................... 5

6.

Risk Register .......................................................................................................................................... 6

7.

Work Breakdown Structure .................................................................................................................. 7

8.

Milestone PERT Chart of the Proposed Project .................................................................................... 7

9.

Project Duration and Project Budget .................................................................................................... 8

9.1.

Project Milestones ............................................................................................................................ 8

9.2.

Resource Requirements .................................................................................................................... 8

9.3.

Construction phase external and internal ..................................................................................... 9

9.4.

Resource cost planning ................................................................................................................... 10

9.5.

Assumptions .................................................................................................................................... 11

9.6.

Total cost of project ........................................................................................................................ 11

10.

Social costs, Risks and Expected Benefits of the Proposed Project ................................................ 11

10.1.

Social cost-benefit analysis ......................................................................................................... 11

10.2.

Risk & mitigations strategies of our project ............................................................................... 12

11.

Critical Success Factors for our project: .......................................................................................... 13

12.

Limitations and future scope of research ....................................................................................... 13

13.

Lessons Learnt and key difficulties faced while preparing the project plan ................................... 14

13.1.

Lessons Learned .......................................................................................................................... 14

13.2.

Difficulties Faced ......................................................................................................................... 15

14.

Annexures ....................................................................................................................................... 16

Page | 1

1. Executive Summary
This project report summarizes in detail the planning behind the construction of a new hostel block with
an indoor sport complex within the existing IIM Shillong Campus in 18 months to accommodate 84
students within a budget of 2.5 crores.
The project is proposed to be completed in three phases namely, planning, site development and
construction. In the planning phase the major deliverables will be the construction blueprint and
completion of legal formalities which would include permission for erecting a new building within the
campus. In the site development stage, we need to lay a foundation for the building at the proposed
site. The major and final phase of construction will have deliverables such as the completed hostel and
the indoor sports complex on the ground floor.
Once the blueprint was prepared and approved through consultation with the client, the cost estimate
was prepared and scheduling was done consequently. The social costs and risks involved in the project
were accounted for. The benefits of undertaking the construction were outlined with special focus on
the critical success factors. Finally at the end of the report, the limitations are enlisted and learnings
derived from this project are outlined.

2. Introduction and Study Rationale

The project is aimed at the construction of a new hostel block in the premises of IIM Shillong in a span of
18 months from the start of the project. The project has been taken up due to the increasing batch size
that is being admitted into the institute year after year as well as a diverse set of programs being added
to the institutes offerings. This has led to a growing demand for a new residential complex for students.
The new hostel block is also envisaged to include an indoor sports complex as the current facility is
operating under overcapacity. Also, the plan for the new building has been endorsed by our institutes
Director during an open house discussion, which reinforces the managements will to take the project
forward. The capacity of the new hostel block is planned to be for 84 rooms along with an indoor sports
complex. The location of the hostel would be in the area adjacent to the admin building, on the other
side of the road (on the way to barracks), where clearing of trees is already underway. This report
discusses in detail the planning, deliverables, resource requirements, budget, risks and benefits of the
project within its defined scope.
The study rationale behind taking up this project is as follows:

The current hostel facility in the institute is operating under overcapacity and the number of
students being inducted every year is on the rise
The sports facility present also needs to be improved to provide the right infrastructure for
students in a premium management institute
The project deals with identification and scheduling of resources to complete the task in a given
time and resource frame
To determine the various types of risks, costs and constraints that could be associated with
managing a project as well as how to mitigate and manage the same
Page | 2

It is an opportunity to apply the principles of project management learnt in class as well as the
tools for the same

3. Project Scope and Basic Assumption

3.1.

Scope

The scope of our work would include:

Selecting builder for the construction of new hostel block with indoor sports facility
Floating of the Bid
Evaluating EOI
Floating RFPs
Evaluation and Final selection of Vendor
Design of the new hostel block with an indoor sports complex
Exact location of the building in the college premises
Layout of the entire building
Construction of the building

Procuring resources like labor, raw material etc.

Providing basic amenities like provision for lights/ fans/ heaters, fully-equipped bathrooms,
drinking water facility, common room with LCD television, gym, squash facility, indoor
badminton court, table tennis etc. to the students of IIM Shillong
After the construction of the facilities it is important to regularly perform maintenance
activities on all the facilities. Understanding the maintenance requirements from the builder
and accordingly allocate resources for maintenance activities
Providing good quality fresh basic eatables and energy drinks through an automatic vending
machine that requires only limited space for installation
Keeping the sports facility open 24 hours at the hostel on all the days, as required by the
Institute

3.2.

3.3.

Limits and Exclusion:

Plumbing and electrical work for the building will be taken care by the contractor
Our job is only the felicitation of the hostel block, day to day job will be carried out by
the contractor
The overseeing of the day to day operations and quality assurance will be done by
Hostel Committee along with a team of experts
Basic Assumption:

Page | 3

The legal and other approvals for hostel block will be taken by the college
administration and not by us
The location of the hostel block will be in the space where TV room, gym, badminton
court are currently located. The space adjacent to the guest house can also be used
We will construct the hostel block and hand it over to the college administration. Day to
day operations post completion will not be our responsibility

4. Technical Know-How Requirements

The technical know-how requirement would need a skilled workforce. The organization has
the policy of employing skilled workforce from internal the organization. Hence the skilled
workforce requirement would be:
Project Manager-1
Chief Strategy and Marketing Officer
Chief Finance and Purchase Officer
Chief Operations Manager
Chief HR Manager
Electrical Engineers -2
Civil engineers -3
Mechanical Engineer 3
Architectures - 2
4.1.

Technical Specifications
The intake of students at IIM Shillong is set to increase in the next few years and hence
there is a need for new hostel block to accommodate the increasing strength
Creation of EOI in a standard format so as to invite qualified builders and contractors
Associate with the most renowned construction player in the region and establish final
deal with them
Location Specification:
A room which has the potential for setting up required technical infrastructure
i.e. plumbing, electricity supply and other basic infrastructure
Room should be big enough to accommodate 1 student
Contractor Specification:
Contractor should have minimum work experience in similar domain in
Meghalaya for at least 2 years

The major specifications that we propose for this hostel building and indoor sports complex are:
Deliverables

Technical Specifications
Page | 4

Size (of the building)

Construction Material
Recreational Facilities
Hostel Capacity
Room specifications
Floor Specifications
Bathrooms
Utilities
Building construction

Ground Floor + 4 floors + one-mess on each floor for cooking and dining
Standard building format (Brick & Mortar)
Ground floor consists of Table Tennis, Indoor Badminton Court, Gymnasium
and Squash Room
84 rooms
Cement Flooring + Provision for 2 tube-lights + 1 fan. The room size and
design will be same as the existing new boys hostel rooms.
Tiled-flooring in the corridors
One bathroom for every 2 rooms
Connecting the entire building to the main power grid of the campus +
Earthing + Drainage Facility + Automatic vending machine in sports complex
CDEF concept

5. Foreseeable Difficulties and Constraints

The various difficulties and constrains in the construction of the building and setting up sports facilities
which may appear are as follows:

5.1.

5.2.

5.3.

5.4.

Financial Difficulties
The funds for construction of new buildings within the campus have to come through the
Central govt. It may not be obtained on time and might delay the start of the project.
As a government organization we need to follow the tender process which may lead to change
in the proposed budget if the parties are not ready to work at the amount specified in the
tender.

Political difficulties
The whole of Meghalaya is suffering from strikes and bandhs because of the current political
scenario and the demand for ILP. This may lead to laborers not reporting on time or unable to
work freely.
The schedule might get hampered and it might take more number of days to finish the project.
Also if ILP issue comes into effect, getting manpower from outside might be a problem

Construction difficulties
Timely procurement of raw materials due to location of Shillong
Risk of non-compliance from suppliers end may pose a problem for the timely finish of the
project

Other difficulties
Design variations after the initiation of the project
Price inflation of construction materials

Page | 5

Implementation of various project management tool could be of problem as the labor

contractor and other involved parties can be categorized as level 1 organization where these
people might not be well versed with project management control frameworks
Excessive approval procedures in administrative government departments
Low management competency of subcontractors
Unsuitable construction program planning
General safety accident occurrence
Unavailability of sufficient professionals and managers

Various difficulties and constrains mentioned above may pose following problems in the proposed
project:

Late delivery of the project;

Increases in operating costs
Design and construction defects impacting upon the operation of the completed project;
Deficiencies in other infrastructure or services upon which the successful operation of the
project depends, e.g. sports facilities as they require accurate measurements of the area

6. Risk Register
It acts as a central repository for all risks identified by the project or organization and, for each risk,
includes information such as risk probability, impact, counter-measures, and risk owner and so on.
Post identification of the risk, risk register has been created to know the exact probability and their
impact on the project
Risk Event

Likelihood

Impact

Delay of Design and construction

Release of funds not on time
Delay of interior setup like room
furnishing and sports facilities
Inaccurate estimations of time
and money
Delay in site clearance and
Permission from local authorities
Errors
and
omissions
in
construction
Fluctuation of estimated prices of
raw materials
Labor issues

2
2
1

4
3
1

Detection
Difficulty
2
2
1

Stage of the Project

Start-up and ongoing

Start-up and ongoing
After
completion
of
construction
Ongoing, throughout the
project
Start-up

Final Stages of construction

Construction

During construction

Page | 6

7. Work Breakdown Structure

8. Milestone PERT Chart of the Proposed Project

The project consists of the following milestones:
1. Getting legal approval: This milestone indicates the readiness of the team for going for the next
phase of the project which is to begin the preparation of site and the construction phase. This task is
a milestone since it signifies the end of the preparation phase for the project and starts with the
implementation of the same.
2. Site development: This is a milestone since it signifies the readiness of site so that the construction
work can start on it properly.
3. Completion of external construction: It involves the finishing of construction of all the 4 floors and
signifies the readiness of the building to start with internal furnishing and layout of the sports
utilities in the same.
4. Completion of sports utilities and ready for handover: This milestone signifies the completion of the
project and is ready to be open for the students.

All the 4 of the milestones along with the expected timeline is shown in the images below:

Page | 7

9. Project Duration and Project Budget

9.1.

Project Milestones

Milestones

Day of Completion

Construction Blueprint
Completion of Legal formalities
Excavation of site
Laying of Foundation and surface drainage
Completion of indoor sports complex ( ground floor )
Completion of First floor
Completion of Second floor
Completion of Third floor
Completion of Fourth floor
Completion of additional infrastructure
Project Handover

Day 45
Day 60
Day 100
Day 150
Day 280
Day 330
Day 380
Day 430
Day 480
Day 520
Day 540

9.2.

Resource Requirements

Resource

Purpose

Procurement

Cost
unit/resource

per Total cost

in project

Human
Resource

Six
people
for
working
on
the
project design and
handling interaction
with the client

Internal to the
organization 5
External consultant
-1

For
the
internal 180000
workforce the salary
per month is Rs.30000
per person. External
consultant
charges
Rs.5000 per design
sanctioned
Page | 8

Human
Resource

For clerical jobs like External resources

Average salary would 40000
applying for permits
be Rs. 10000 pm ( for 2
and receiving them
months only )
200000
Miscellaneous Stationary Cost along To be obtained
Cost
with other amenities from suppliers
and utilities
--

Total budget = Rs.420000; Contingency margin = 10%

Total Budget (with contingency margin) = Rs.462000

9.3.

Construction phase external and internal

This phase consists of calculating the cost required for acquiring material (raw material and finished
goods).
Resource

Purpose

Procurement

Cost
per
unit/resource
Steel Frames & Construction
From supplier
Rs. 44200 per unit
Rods
available
Cement
Construction
From supplier
50 kg sacks @
RS.275 per sack
Sand
Construction
From supplier
RS.43 per cubic
feet of river sand
Bricks
Construction
From supplier
Rs.19000 for 3000
bricks
Plaster
Construction
Contract given to Rs.50 per sq.m of
vendor
wall area
Paint
Internal
and Contract given to
external
vendor
Sanitary fixtures
Internal
to From supplier
building
Plumbing
and Internal
and Contract given
sewage facility
external
to
building
PVC Pipes
Construction
From supplier
Electrical System Internal
Contract given
(Excluding
Lighting,
including HVAC)

Total
cost
project
442000

in

144375
303709
660739
42017
300000
150000
1200000

20000
5800000

Page | 9

Generators
(Diesel Operated)
Manpower
Requirement

Back Up Power
system
Labor
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

Tiles and mosaic Interior to the From supplier

flooring
building

$95000
per 2470000
generator
Masonry @ Rs.300 220300
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 @ 225000
Rs.95 for 1x1sq.ft
tiles

Total Budget = Rs. 11978140

Taking into consideration 10% contingency, the total budget becomes = Rs. 13176000

9.4.

Resource cost planning

The completion phase includes the final touches required for the completion of the building including,
internal decorations like standardized lighting and fixtures and glass fixtures.
Resource
Electrical
lighting fixtures

Purpose

Standardized
lighting in the
shopping complex
Glass fixtures to Both internal and
provide
the external to the
aesthetic look
shopping complex
As directed by
Fire-fighting
system
government
to
installation
get certified for
safe operation

Procurement

Cost
per Total cost
unit/resource
project

From supplier

in

700000
--

Procured
from
2000000
supplier but fixed
-by contractor
Procured
from Fire extinguishers 100000
supplier
@ Rs.2000 per
unit and other
equipment

Page | 10

9.5.

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.

9.6.

Total cost of project

The total project cost comes out to be approximately Rs. 2.25 crores
Considering contingency cost of 10%, and rounding off the value obtained, the cost of the project stands
to be Rs. 25000000. (Rs. 2.5 Crores)

10.

Social costs, Risks and Expected Benefits of the Proposed Project

10.1. Social cost-benefit analysis

A social cost-benefit analysis aims to chart all of the effects that would influence the welfare of society
on account of constructing the stadium. It is a systematic and cohesive method to survey all the impacts
caused by the urban development project. It comprises not just the financial effects (investment costs,
direct benefits like tax and fees etc.), but all the social effects, like: pollution, safety, indirect (labor)
market, legal aspects etc.
The social cost-benefit analysis calculates the direct (primary), indirect (secondary) and external effects:

Direct effects are the costs and benefits that can be directly linked to the owners/users of the
project properties (e.g., the users and the owner of stadium).
Indirect effects are the costs and benefits that are passed on to the producers and consumers
outside the market with which the project is involved (e.g., the owner of shops outside the campus )
External effects are the costs and benefits that cannot be passed on to any existing markets because
they relate to issues like the environment (noise, emission of CO2, etc.), safety (traffic, external
security) and nature (biodiversity, dehydration, etc.).

The social cost-benefits associated are as follows:

10.1.1. Direct Effects
Construction of the new hostel will provide accommodation to the additional students who will be
joining the institute next year.
The indoor sports complex will ensure that students get access to better recreational facilities.
10.1.2. Indirect Effects
The shops around the college will benefit due to the increase in the number of students.
Page | 11

The noise level would increase during construction phase and might disturb the nearby residents.

10.1.3. External Effects

The effect on environment would be significant during construction phase

10.2. Risk & mitigations strategies of our project

Types of Risk
Financial Risk

Risk Identification
Firstly, the funds for construction of new
buildings within the campus have to come
from the Central govt. It may not be
obtained on time and might delay the start
of the project.

Risk Mitigation
Project should be initiated with the IIM
Shillong corpus after a written
confirmation by the central govt. that the
funds will be moved to IIM Shillong in
due course of time.

Secondly, as a government organization we

need to follow the tender process which
may lead to change in the proposed budget
if the parties are not ready to work at the
amount specified in the tender.

Political Risk

Understanding the cost of such projects

in Shillong, a good estimate of the
amount to be paid to potential
contractors should be done so that
parties dont leave the tender process.
Usually if the parties find that the
A few other risks which has a direct impact venture is not profitable, all of them
on the cost of the project
leave.
Design variations after the initiation of
the project
Contract should strictly not allow any
Price inflation of construction materials design variations.
Excessive approval procedures in
administrative
government Price inflation is not in our control but
departments
the proposed budget usually considers
the possibility of price rise of raw
materials
The whole of Meghalaya is suffering from Measures can be taken to house laborers
strikes and bandhs because of the current within the campus so that work is not
political scenario and the demand for ILP. hampered. As far as raw materials
This may lead to laborers not reporting on procurement is considered, buffer stock
time or unable to work freely. The schedule would need to be purchased
might get hampered and it might take more
number of days to finish the project.

Risks associated The two major risks identified under this Enter into strictly defined contracts with
with
supply head are: Non-availability of resources and the suppliers
chain
risk of non-compliance from suppliers end
Page | 12

Safety
risks

related

11.

Low management competency of

subcontractors
Unsuitable construction program
planning
General safety accident occurrence
Lack of coordination between
project participants
Unavailability of sufficient amount
of skilled labor
Unavailability
of
sufficient
professionals and managers

Subcontractors are not in our direct

control but while contractors previous
work can be checked to understand the
kind of subcontractor they use.
Skilled labor scouting should be done well
in advance to avoid such problems.
Usually there are intermediary players
who help in getting the skilled labor. Such
people should be approached if such an
issue arises

Critical Success Factors for our project:

The key success factors of our project are listed below:

Schedule: It is important for the project to meet the schedule and the proposed timelines. So
the critical success factor is to meet or beat established project milestones

Safety: It is important that all the safety guidelines are followed and thus the success factor in
this case will be- no recordable or lost time injuries and reportable injuries lower than the
industry average

Budget: There are a lot of risks involved in this project. It is imperative that we manage risks to
contain costs within the estimated budget

Quality: Conform to project requirements and quality without adverse effects on milestones or
budget. None of the above success factors should be achieved at the cost of quality

Environmental & Regulation Compliance: Complete project without any violations conforming
to the standards and regulations

Operational and construction standards- Education, implementation and consistency of

standards

12.

Limitations and future scope of research

The proposed hostel block will not include any changes in the plan/design at a later stage due to the
strict timelines. The design of the block and the room specifications will be similar to the existing new
hostel blocks.
There will be just cement flooring (cement) to ensure timely completion. There will be no additional
classrooms or study rooms in this hostel.

Page | 13

We have not taken into account risks associated with the external factors like weather, terrain and
natural disasters. With Shillong being an area affected by extreme climate and prone to natural disasters
like mild earthquakes etc., the ideal project plan should also have strategies to mitigate these risks and
have contingencies planned to meet the success factors.
Taking into account all the above factors are out the scope of the current project plan and are topics for
future scope of research.

13.

Lessons Learnt and Key Difficulties Faced

13.1. Lessons Learned

Importance of minutes of meetings was established while working on the project. It was
observed that referring past decisions and the discussions becomes important for taking future
decisions and hence for future reference minutes of meetings play a very crucial role. Keeping
track of allocated tasks and responsibilities became much easier with the help of minutes of
meetings.

While managing a project, preparing timeline and budget are not the only key areas. There are
many other important things, like work breakdown structure, know-how of the domain to some
extent for efficient scheduling budget management, social cost-benefit analysis, anticipation of
possible risks and measures to mitigate them etc., which needs to be considered while planning
for any project.

Importance of consensus and discussions between client and project management team is
another key area which was observed. The discussions brought out many new ideas on table but
at the same time it was realized that unnecessary discussions may be time consuming without
adding value to the project. Similarly, agreeing to a point is very important for the project to
proceed further effectively. All of this is accomplished through clear and consistent
communication.

Good project management involves no shortage of dialogue between team members, clients,
and anyone else that should be in the loop. Constructive criticism pushes your team to do their
best and makes expectations clear. If someone is already producing phenomenal work, be sure
to recognize it and let them know. It is important to cultivate creativity whenever possible.

Another aspect to bear in mind throughout the life of a project is that changes will be made.
Turning change into an opportunity is important; re-evaluation of the state of project and using
it to motivate the team should be the step forward. That way, even if drastic changes come up
your project will end a success.

Also a key learning is that good project management doesnt end when a project is completed.
Evaluating the results of the teams hard work is an integral step in the process. Obviously the

Page | 14

views of client about teams efforts will be communicated by them but a personal introspection
becomes important for future improvement.

13.2. Difficulties Faced

Without clear knowledge about the actual resources and schedule involved in a construction
project it was difficult to figure out things at many points in time. With the help of online
resources and batch mates with prior experience in this field, this difficulty was tackled to some
extent.

The team involved people with varied backgrounds who have their own understanding about
various topics. Hence, it became difficult in certain discussions to reach on consensus timely.
Thus meetings sometimes became a time consuming affair but this has its own positives and
negatives. Also dividing the roles as project manager, HR manager, communications manager
etc. helped in dealing with this issue to some extent as the concerned person was the one who
led the discussion of his/her domain, brining everyone on same page and helping in reaching a
consensus.

Lack of proper communication sometimes in the initial phase proved to be bottleneck hindering
the project. But gradually as the project planning continued the team developed a co-ordination
and this issue was addressed soon.

Timely follow-up, which is an important step in project management, was in some points not
adequate and hence revising the points discussed in the past meetings consumed a lot of time
but minutes of meetings came to rescue to a large extent.

Page | 15

Annexure
Annexure 1: Expression of Interest
Sl. No.

Particulars

Profile of Builder

Name

Address in full

Telephone /Mobile No.

Fax, Email

Month and year of establishment

Name of Proprietor /Partner

Annual turnover during the last 3

Years.
Whether the firm is income-tax
Assesse?
If Yes please give the details of PAN
No. and copy of the latest
Assessment order.
Registration No., if applicable
EPF No. , if applicable
Details of
Infrastructure,
persons

10
11
12

employed,

Details

No. of offices/branches

available with the service provider

13
14
15

Service Tax No., if applicable

VAT No. , if applicable
TIN No. , if applicable
Name of at least 2 References of

16

repute with address and telephone

Numbers (Enclose their Certificates)

Note: Attach extra sheet if required.

Page | 16

Place:
Date:

Signature of the
Caterer/Hotelier

Annexure 2: Details of Previous Contracts

Period of Contract
From

To

Name & address of

Organization

Type of
Contract
undertaken

Number
Parties
serviced

of

Value
contract
(annual)

of

Annexure 3: Details of Present Contracts if any, of similar nature being rendered by

you (that will be available for inspection by our officials)
Period of Contract
From

To

Name & address of Type

of Number
Organization
contract
persons
undertaken
serviced

of Value
contract
(annual)

of

Page | 17