ASSIGNMENT

ON

PRINCIPLES & PRACTICES OF MANAGEMENT

(PGPM-11)

By

Venkateshwarlu.K
(Course: PGPPM)

(Registration No: 216-02-31-50569-2172)

SUBMITTED TO
SCHOOL OF DISTANCE EDUCATION
NATIONAL INSTITUTE OF CONSTRUCTION
MANAGEMENT AND RESEARCH
25/1, BALEWADI, N.I.A POST OFFICE
PUNE 411045.

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 TITLE OF THE ASSIGNMENT

Your company has bagged a lucrative contract to construct a housing colony for an
industrial group to be located in Western Maharashtra in a coastal belt. You as a Project
Manager have been asked by the company to evolve Organization Structure with
following conditions.

i. Organization should be as lean and thin as possible with bare

minimum of personnel on company roll up to Junior Engineer level.

ii. All supervisors to down below will be temporary for project

duration only to be recruited locally from 100km radius.

Suggest and discuss an organization structure denoting responsibility, authority,

communication control for all facets of construction work and management functions as
visualized by you.

Housing colony consists of 10 Bungalows for senior executives, 20 Apartments in five

buildings, 100 dwellings for white collar workers and 300 dwellings for blue collared
workers. Colony will have market and entertainment complex.

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INDEX
1. Scope of the project
1.1 Understanding the project
1.2 Key functions of the project
2. Authorities to carry out functions
3. Selection of team size
3.1 Work breakdown structure
4. Information flow among site functions
5. Conclusion
6. Bibliography

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1. Scope of the project

The project is to develop an urban housing colony in Western Maharashtra on the costal
belt; comprising of 10 bungalows for senior executives, 20 apartments in five
buildings, 100 dwellings for white collared workers and 300 dwellings for blue collared
workers with a market and entertainment complex.

The work of the project includes complete structural and civil works, architectural,
internal and external finishing including aluminum works, glazing, cladding systems,
service equipments, electromechanical and associated works. Site external work like
soft and hard landscaping is also included.

The scope also includes testing, adjusting, balancing, commissioning and handing over.
Tests on completion, remedying of defects during contract period and provision of
spare parts, warranties and bonds all this come under the scope of the project.

The colony may be divided into three blocks tabulated as below:

Block Area Personnel Quantity Remarks

A 120 per block Senior 10 Bungalows

Executive

B 120 per block Senior 05 4 apartments in each

Executive building

C 100 per block White collared 100 Individual houses

workers

D 80 per block Blue collared 300 Individual houses

workers

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1.1 Understanding the project

The project requires developing an organization structure for the work of building a
housing colony. Desirables for such project are:

1. Efficient use of resources i.e., material, personnel, time and money.

2. High level of quality.
3. Safety of workforce and other people.
4. Environmental concern, minimum damage to the environment and utilization of
efficient and environment friendly processes.

1.2 Key functions of the project

The key functions of construction Project are:

Planning & Scheduling:

A plan is a projected course of action. A project plan will spell out the
details in which the activities will be carried out; resources will be
deployed and time frames when certain outputs should be expected.
Planning always deals with future and it always proceeds action.
Planning involves formulation of a number of alternative realistic work
plans for achieving specified objectives.
Finally s e l e c t i n g a p l a n w h i c h i s b e s t s u i t e d f r o m t h e s t a n d -
p o i n t o f a v a i l a b l e resources and constraints imposed upon the project.

Organizing:
Organizing is the second management process, next to planning. It is
the process that enables people to work together effectively in an
enterprise. Organizing is concerned with division of total project in to
manageable departments/sections and systematically arranging various
operations by delegating specific task to individuals.

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 Staffing:
Staffing can be said to be the function of filling the organization with
right type of people in the right number at the right time.
Organizing involves division of project work into section and staffing is
the provision of people to fill the position so created.

Directing:
The directing function is concerned with the training to the subordinate
to carry out assigned task, supervising their work and guiding their efforts. The
essence of directing lies in the ability to motivate people individually and as
groups.

Controlling:
Control is the measurement and correction of the performance of activities of
subordinates to make sure that all levels of objectives and plans devised to attain
them are being accomplished. Controlling is necessary for ensuring effective
and efficient working. It involves constant review of the work plan
to check on actual achievement and to discover and to rectify deviations
through appropriate corrective measures.

Co-coordinating:
Since authority coverage to the top of the organizational p yr a m i d , i t i s
necessary to bring together and coordinate the work
of various department and sections.
T h i s r e q u i r e s a n e f f i c i e n t s ys t e m o f communication so that each
department and section is aware of its role and assistance to be expected
from others.

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2. Authorities to carry out functions

Project Manager

The significant works of Project Manager is to co-ordinate the views of their workers
and finally complete the project. He has to collect views of various persons at different
level and required to execute the job to be more correct, realistic and feasible. He is also
required to co-ordinate various gangs, persons involved in construction. He has also to
co-ordinate various activities in a project.

Some other functions of Project manager is as follows:

To call periodical joint meetings of several key personnel working at the site to
review progress and to issue instruction for speeding up work if required.
The project manager will have clear idea about all the process that takes place in
the project.
He should be influencing the team to follow in the achievement of a common
goal.
He should be able to identify the delay if it is occurred and should be able to
rectify it.

Construction Manager

The construction manager is the head of the execution department. The main function of
the execution department is to execute the orders received from the planning
department. The most active post in the organization is the construction manager since
he decides upon the plans proposed on assumed working conditions and executes them
under the actual working conditions. He has a team consisting of engineers and his sub
ordinates for various works in the field.

Commercial Manager

The commercial Manager looks after finance, administration and HR related work,
Banking and managing cash flow, Site Legal matters, General books of account

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maintenance, Subsidiary records, Financial reports, Payment of invoices, Billing, Personnel
records, payrolls and records, wage and personnel reports to public agency, etc..

Design & Engineering Manager

The design manager makes the plan and does the design of every single member of a
structure that has to come in the project. As for the residential project, he does prepare
the layout of the entire colony with specification of the every single apartment and
bungalow allocated as per the specification proposed by the clients. He prepares the
drawings which provide all the essentials for the structure.

Project Coordinator

The function of a project control manager is to regularize the work flow in the project.
He forms a planning department under which all the essentials of the project are been
maintained and recorded.

The project control manager being the head of the planning department has to keep up
the above mentioned functions.

Planning Engineer

Planning engineers develop the most appropriate method and sequence of construction
operations for a particular project, in conjunction with the project manager. They plan
and oversee the entire programme of work and must anticipate a contracts demands in
terms of labor, materials, equipments and technical challenges.

The main responsibilities of the Planning engineers are namely:

Selecting the appropriate techniques and determine appropriate logistics,

solutions and resources.
Drawing up plans and local environments and presenting schedules of work,
often with visual aids such as bar charts and procedure diagrams.
Preparing logistics plans and pricing schedules for individual projects.

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 Monitoring progress throughout the construction process and comparing this it
projected schedule of work.
Liaising with the site agent and surveyor throughout the process, making
adjustments to projects as necessary.
Providing advice and support on the development of specific systems.

Design Consultant

The design manager makes the plan and does the design of every single member of a
structure that has to come in the project. As for the residential project, he does prepare
the layout of the entire colony with specification of the every single apartment and
bungalow allocated as per the specification proposed by the clients. He prepares the
drawings which provide all the essentials for the structure.

Executive Engineer

The key person and the head of the team working at site, is the Executive Engineer. He
operates the complete work at site making use of the available resources and managing
the workforce. Executive Engineer would be responsible for any work happening at site
so it would be his duty to check and study the execution of work.

Quantity Surveyor

The quantity Surveyor is the person responsible for figuring out just what a building is
going to cost and in some cases for making that construction costs and production are
managed as efficiently as possible.

The main responsibilities of the Quantity surveyor are as namely:

The preparation of bills and/or schedules of quantities of materials, labor and

services required in the construction and equipment of building, or engineering
works.
The preparation and valuation of progress and final payments in connection with
any contract or sub-contract.

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 The appraisal of the value of proposed constructions or other structures already
erected.
The preparation of specifications when required so to do.
Acting as arbitrator in cases of dispute in connection with building, or
engineering work, when required so to do.
To advice from time to time on cost management, or value management.

Project Engineer

The Project engineers perform a technical, organizational and supervisory role on

construction projects, including setting out and structures involved in construction
operations. Project engineers perform a technical, organizational and supervisory role
on construction projects, including setting out and structures involved in construction
operations. Project engineers apply designs and plans to mark out the site and can be
involved in projects ranging from small scale to multi-million pound ventures.

The main responsibilities of the Project engineers are namely:

Study the drawings and complete specifications to understand the project

requirements and sequence of the works.
Check material requirements and request and submit to the construction
managers and project managers approval.
Assess manpower requirements and inform project manager accordingly.
Ensure that persons under his control are having enough experience to carry out
the site works.
Ensure the corrective actions are taken where required meeting budget quality
and standards.
Control of plant and equipment usage on site and ensure optimum utilization.
Supervise the material usage at site and control wastage.
Inform the construction manager and the project manager of any delays or
discrepancy at the site and take corrective measures.

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 Ensure safety of the construction and those them are followed on site by all
concerned.

Site Engineer

A site engineer works as part of the site management team liaising with and working
alongside architects, engineers, construction managers, supervisors, planners, surveyors
and subcontractors.

They share responsibility for site security, health and safety, and the organization and
supervision of material and human resources.

The main responsibility of the site engineers are namely:

To carry out all the activities as per the drawing specification with all quality
standards.
Execution of activities as per program and highlighting delay if any in right time.
Highlighting drawing discrepancies to project engineers.
Leading a team of supervisors to carry out their duties and responsibilities.
Ensure optimum utilization.
Ensure safety of construction of all concerned follow safety regulation.
Highlighting safety violations of defaulting personnel.

QA/QC Engineer

The QA/QC Engineer takes care in examining the quality of all the products from
reinforcement, concrete to a completed building.

Quality assurance and quality control are essential components of every company that
produces software applications. Quality assurance (QA) or Quality control (QC)
engineers are the resources that maintain the quality level of a company and its
products.

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Quality control/Quality assurance engineering is involved in developing system to
ensure products or services are designed and produced to meet or exceed customer
requirements and expectations.

Responsible for all aspects related to project quality assurance and quality
control.
Preparation of the project specific quality plan, inspection and test plans, check
sheets and procedures.
Implementation of quality control programme for the project.
Daily sheet inspection and periodical offsite inspection.
Controlling all inspection activities on site.
Ensuring all the test reports is verified to meet the contract requirements.

MEP Engineer

Mechanical:

Primarily, responsible for planning and coordination of various

construction field execution activities within the mechanical discipline.
Position requires development of all technical documentation required to execute
construction field installation activities to include installation work.
Involvement in the procurement, fabrication, installation, modification, maintenance
and testing of various systems and components.
Oversight of all field installation activities including inspections and
problem resolution which requires extensive interface and coordination with Design
Engineering, Quality Control, Procurement Engineering, and Start up Test.

Electrical:
Propose, plan, prioritize, design, lead and oversee all City building energy reduction
projects; conduct economic and engineering analyses and audits; monitor workflow,
equipment quality and cost; coordinate with electrical power utility to
monitor the energy reduction; prepare and retain detailed project documentation.

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 Identify, conduct comprehensive engineering studies and plan for capital
improvement projects, including building power and lighting system
expansion and upgrades.
Identify, review and approve plans, methods, materials, equipment and procedures
with electrical field supervisor before and during construction to insure the work is
in compliance with the design; assist in coordinating work among the
carpentry, electrical, plumbing and air conditioning trades.
Respond to and resolve difficult customer inquiries regarding building electrical
power and lighting issues; resolve difficult and complex regulatory and system design
questions. Prepare and maintain technical engineering records and drawings.

3. Selection of team size

The team size will depend on size of biggest work package. Therefore the scheduling
will have to be done to create work packages of equal size, which will result in better
resource leveling and efficiency. The work performed by the organization involves a
number of processes and sub processes.
The process model can be applied iteratively by means of:
Identifying inputs
Planning & Scheduling
Implementation
Monitoring
Recording
Improving

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 ORGANIZATIONAL STRUCTURE

3.1 Work breakdown structure

Since occupation pattern of the colony can be predicted with some accuracy therefore
the work package can be divided into following packages:
The requirement of the key staffs for the project is as follows:

Project Manager - 1 Nos

Construction Manager - 2 Nos
Project Engineer - 4 Nos
Quantity Surveyor - 4 Nos
Senior Planning Engineer - 1 Nos
Planning Engineer - 2 Nos
QA/QC Manager - 1 Nos
QA/QC Engineer - 4 Nos
Safety Officer - 6 Nos

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Senior Safety Engineer - 1 Nos
Site Engineer - 6 Nos
Junior Engineer - 10 Nos
Supervisor - 22 Nos
Surveyor - 20 Nos
Storekeeper - 6 Nos

4. Information flow among site functions

As discussed above the breakdown in an organization can be categorized five

departments namely,
1. Planning & Infrastructure department
2. Commercial department
3. Design & Engineering department
4. Execution department
5. Quality department

Planning & Infrastructure department

Planning is the process of determining objectives, setting time frames, creating options
and choosing the efficient one, estimating types and quantum of requirement of
resources and allocating them. The Planning team would work on the Project schedule,
sequence material and activities, initial site mobilization activities planning, Site layout,
Town Planning and Connectivity.
The Planning team would ensure that the basic infrastructure like water and electricity
is made available to the units. The intention to club these two divisions is based on
logical interpretation of the basic tenets on which the two teams work. A coordinative
effort between these two divisions will ensure that the product is ready for the
execution team to deliver.

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Commercial department

The team will work around the year to ensure that the required cash flows are
maintained and also to ensure that the work doesnt get affected due to the inherent
issues of managing the project.
Booking to ensure that all the required books are to do the book keeping and also execute
the plans, store, and purchase and logistics management at site. Employees in the
Manager level will ensure that all the required books are to do the book keeping and
also execute the plans of the General Managers.
The General Managers are to ensure that the plans are made keeping in mind the vision
and direction set by the Project Manager.

Design & Engineering department

Design and engineering department plays a vital role in the construction project. This
department performs the preliminary project details, specifications, customer
requirements and develops the engineering documents accordingly considering the
project schedule and phase of the project. A team member would be involved in the
Engineering drawing and interface with engineering consultants, one team member in
architecture and one in execution.

Execution department

The primary thing that has to be realized is that execution is a very critical team for the
success of the organization. This team has to be closely monitored and should also be
given enough flexibility to allow intelligent deviations from the plan and also should be
flexible enough to incorporate the changing conditions in the environment.

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Quality department

Quality Control plays a very vital role in a project. Hence, it would be critical to have a
Quality team member involved in every critical aspect of the project. A team member
would be involved in the Planning and Infrastructure, one team member in Architecture
and one in Execution.
A team member of the cadre of an AGM would ensure that the Managers who look
after the individual portfolios execute the plans according to the vision and direction of
the Program Manager.

5. Conclusion

Construction is a labor-intensive industry, which places heavy reliance upon the skills
of its workforce. In the construction sector, a very fast employment growth is expected.
Additionally, excellent job opportunities will exist as number of job opening exceeds
the numbers of qualified applicants. Thus, the retention of good people is very crucial.
Good manpower planning is necessary. Storage of workforce results in delays leading
to a cost escalation. Availability of workforce differs from region to region. Even the
cost of man hour is different in different places.
Thus it is necessary to keep these factors in mind before processing with project. Pre-
planning for the manpower should be done with a proper estimation of required personnel. This
will be great help to avoid labor related uncertainties.
The structure of site organization should be such that is able to focus on its core
activities and outsourcing is cost effective. Communication is very important aspect. It
is recommended to use thee-mail and communication tool effectively.
Having stated that the non-integration of the construction supply chain hinders the
creation and improvement of value for money in the construction process.
Specifically the recommendations are anchored on collaboration and supply chain
management.
The recommendations include:

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 Ensuring the early involvement of key project team members that have expert
knowledge so that an appropriate level of client satisfaction and value can be
defined
Establishing of subcontractor and supplier relationships by selecting teams based
on value rather than lowest price
Integrating pre-construction and construction activities and adopting common
processes such as ICT
Managing the project parameters of cost, schedule, quality, and H&S in union;
Working together as a team to agree mutual goals and devise dispute resolution
mechanisms
Developing and monitoring continuous improvement programmers
Developing and implementing sound risk management processes
Dealing with risks and rewards equitably by using modern commercial
arrangements such as collaborative contract forms, target cost and open book
accounting
Using non-adversarial forms of contract and ensuring that contractual
relationships are appropriate for expected project objectives
Using cost-plus and design and build forms on contract and deemphasizing the
use of management contracting as well as traditional forms of contracting

6. Bibliography

PROJECT ENGINEERING AND MANAGEMENT by Sinha A.K. and Ram Sinha.

Koontz H. & Weirich H., MANAGEMENT A GLOBAL PERSPECTIVE, 10th

edition, McGraw Hill, 1993.

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