Assignment on

Construction Project
Management

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LIST OF CONTENT

1 Introduction………………………………………………………. 03

2 Project Identification..……………………………………………. 04

3 Project Development Process..………………………………….. 09

4 Project Work Breakdown………………………………………… 18

5 CPM/Network Analysis………………………………………….. 22

6 Conclusion & Reference…………………………………………. 28

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1. INTRODUCTION

A New International cricket facility is to be constructed outside a mega city

over a piece of land. Facility to include:
1. Capacity of Spectators: 80,000
2. Day/Night play facility
3. TV Camera platform in six directions
4. Safety of players from spectators
5. Pavilion for VIPs to sit: 300 seat
6. Parking (adequate space for all above)

Time available is 16 months including monsoon. Cost of construction need to be recovered in

5 years. Average cost of Ticket is 100/-. Approximate 4 matches per year.

Submit the Project Report:

1. Identification of Project
2. Stages in development of Project
3. Work break down structure to undertake the project
4. Milestone and CPM chart for corporate control
5. Cost of project.

2. PROJECT IDENTIFICATION

 What Is Project?
The project can be defined as, “Organization and performance of resources such as men,
machinery, money, materials, space and technology into logical sequence of activities.” Project
is a mission, undertaken to create a unique facility, product or service within the specified
scope, quality, time and costs. Project can also be defined as organization and performance of
resources such as men, money, machinery, materials, space and technology into logical
sequence of activities.

 Project Identification and Feasibility:

The primary thing about the any project is its necessity as well as its feasibility. Now the
necessity of the project like a cricket stadium is created by the people of the city as well as a
mega city demands a cricket stadium in its vicinity. The feasibility demands a deep thought
like for a location of stadium i.e.

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(a) Where can the plant be located?
(b) What is the present and future projected cost of resources?
(c) The sources for Financing of the project?
(d) Are there enough raw materials as well as skilled and productive labour available in the
area or can be created?
(e) Are there adequate electricity and communication facilities available?
(f) What political or institutional factors may cease or impede the development and
operation of the facility?
(g) What will be the sociological, economical and environmental impact of entire project on
community, like mushrooming of good hotels and restaurant in the vicinity of the
stadium?

So one thing must be clear in one’s mind that whether it is to construct a small house or to
construct a cricket stadium costing several crores of rupees or any other multi crores project of
construction of Dam etc. the general pattern remains same.

Projects are usually a part of an overall strategic programme. A programme at the micro level
comprises one or more projects.

Most projects start with a need to have a new facility long before designers start designs and
drawing of the projects and certainly before field construction work can commence. Elements
of this phase include:

 Conceptual analysis
 Technical and feasibility studies and
 Environmental impact reports

Here, our project is to build a cricket stadium outside a mega city over a piece of land in 16
months.

 Feasibility Study of the Proposed Stadium:

It is abundantly clear that the stage of conceptualization and initial planning is when there is
maximum flexibility and that this flexibility must be utilized to the fullest to achieve maximum
benefits in terms of cost saving s and quality. The feasibility study would broadly consist of:

 Identifying and the need for a Stadium

 The projected cost and long term financial viability of the Stadium
 The need for the stadium is obvious and clear. The popularity of the sport and the level
of matches will ensure high patronage at all times. The stadium should not present any
real pollution related or other socio-political-economic problems at the outset. However,
traffic studies should be undertaken to validate the selection of the site for the stadium.
Thus, the project needs to be defined only in terms of financial viability.
 The projected earnings are as follows:

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 Stadium Capacity 80,000

Assuming 95% attendance, Capacity 76,000

Average price of attendance INR 100

Income from tickets per match INR 76,00,000.00

@4 matches per year INR 3,04,00,000.00

For 5 years INR 15,20,00,000.00

It is clear from the above that the revenue from tickets alone will not be sufficient to fund and
sustain the stadium. Additional sources of income will have to be utilized and some of the
options are as follows:

Advertising / sponsorship revenue @ 50 Lacs per year

Grants from BCCI & State Cricket Assoc. @ 30 Lacs per year
Income from lending out ancillary
@ 10 Lacs per year
grounds / halls for gatherings

Income from cricket coaching clinics @ 05 Lacs per year

Income from club house @ 10 Lacs per year

Therefore, income from above would be 3.45 crores per year.

Over a 5-year period these earnings would be 17.25 crores.

Therefore, the stadium can generate approximately 32.5 crores over a 5-year period.

 Project Report:
Project report is a basis for communicating what has been planned for the project. In this project
I have assumed the site in Gandhinagar as there is no other such type of facility is available
yet. The city is developing very fast in respect to the social as well as economical aspects. The
city is well planned and itself is an attractive place with its rich cultural heritages.

3. PROJECT DEVELOPMENT PROCESS

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From conceptualization to implementation the stages in the development of construction
project (here cricket stadium) fall into broadly consistent patterns but time and degree of
emphasis each project takes on its own a unique character. An idea of a project passes through
six phases before it become a reality:

 Conceptualization:
Most projects start with a need to have a new facility long before designers start preparing
designs and drawings of the projects and certainly before field construction work can
commence. Considerable thought goes into
broad scale planning. Elements of this phase include:

(a) Conceptual analysis

(b) Technical and feasibility studies
(c) Environmental impact reports

 Engineering & Design:

Architects and design engineers primarily handle these phases. Increasingly, however, the
client operation and utilization of Knowledge and field constructors’ experience are more
strongly injected at this stage through direct participation and stringent review procedures.
There are two phase of engineering and design:

(a) Preliminary engineering and design

(b) Detailed engineering and design
 Procurement:
Procurement involves two types of activities. One is to contract and subcontract to several
parties for different types of work activities. These contractors and subcontracts make
arrangements or supply of all men, materials and machines required to complete the part of the
work allotted to them. The other is to take responsibility to procure all resources to complete
the project.

 Construction:
It is the process whereby the Designer’s plans and specifications are converted into physical
structures and facilities. It involves the organization and co-ordination of all the resources time,
money, material, technology, people, equipment etc. The target will be to complete the project
on schedule and within stipulated costs complying all the standards of quality and performance
specified by the designers, as in this case the total time allotted is 16 months including monsoon
period.

 Commissioning:
Most structures and facilities of any significance involve commissioning phase. During
construction large amount of testing is done, so as to be sure that all components function will

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individually and together as a total system. Electrical and mechanical systems are tested,
adjusted, corrected as required to bring them to a level to perform at an optimum output, like
in this case of stadium having a day/night facility all the electrical systems are tested repeatedly
and it should match the international standards.

 Maintenance:
This is the phase where we need maximum attention and here we lack which is the main cause
for the failure of the project. For instance PCA stadium, Mohali that is a state of the art cricket
stadium but there is no regular maintenance, but whenever there is a much of international
standards a huge amount of money is expended for its renovation like 85lakh rupees were spend
for the test match between India and England, so whenever the project is handed over to the
owner either to operate or utilize where he takes services of all production engineers,
maintenance engineers, service people and people of different trades as required to have a
smooth functioning of the project over its lifetime.

 PROJECT MANAGEMENT ORGANIZATION:

Generally, project management is distinguished from the general management of corporations
by the mission-oriented nature of a project. A project organization will generally be terminated
when the mission is accomplished. According to the Project Management Institute, the
discipline of project management can be defined as follows:

“Project management is the art of directing and coordinating human and material resources
throughout the life of a project by using modern management techniques to achieve
predetermined objectives of scope, cost, time, quality and participation satisfaction’’.

By contrast, the general management of business and industrial corporations assumes a broader
outlook with greater continuity of operations. Nevertheless, there are sufficient similarities as
well as differences between the two so that modern management techniques developed for
general management may be adapted for project management.

The basic ingredients for a project management framework may be represented schematically
in Figure-1. A working knowledge of general management and familiarity with the special
knowledge domain related to the project are indispensable. Supporting disciplines such as
computer science and decision science may also play an important role. The representation in
Figure-1 reflects only the sources from which the project management framework evolves.

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 Figure 1: Basic Ingredients in Project Management

Specifically, project management in construction encompasses a set of objectives which may

be accomplished by implementing a series of operations subject to resource constraints. There
are potential conflicts between the stated objectives with regard to scope, cost, time and quality,
and the constraints imposed on human material and financial resources. These conflicts should
be resolved at the onset of a project by making the necessary trade-offs or creating new
alternatives.

 PROJECT PLANNING & CONTROL:

Planning is the basic function of the management. Planning is concerned with ‘how and when’
to achieve the predetermined objectives. Planning sets all other functions of management viz.
organizing, staffing, directing, motivating, coordinating etc. The main objectives of planning
are listed below:

 Analysis
 Anticipation
 Scheduling resources
 Co-ordination & control
 Production of data

All effectively managed projects involve the preparation of the project plan. This is the
fundamental document that spells out what is to be achieved, how it is to be achieved, and what
resources will be necessary. In Projects and Trends in the 1990s and the 21st Century, author
Jolyon Hallows says, "The basic project document is the project plan. The project lives and
breathes and changes as the project progresses or fails." The basic components of the project,
according to Hallows, are laid out in the figure below.

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 Figure 2: Basic components of project

"With the plan as a road map, telling us how to get from one point to another," says Hallows,”
a good project manager recognizes from the outset that a project plan is far more than an
academic exercise or tool for appeasing upper management. It is the blueprint for the entire
scope of the project, a vital document which is referred to frequently, often update on-the-fly,
and something without which the project manager cannot precede."

The construction planning process is stimulated through a study of project documents. These
documents include but are not limited to the available technical and commercial studies and
investigations design and drawings, estimate of quantities, construction method statements,
project planning data, contract documents, site conditions, working regulations, market survey,
local resources, project environment and the client’s organization. The planning process takes
in to the account the strength and weakness of the organization as well as the anticipated
opportunities and risks.

 CONTROL:
Planning can be described as a process of thinking in advance. It is based on experience, sound
judgment and some quantitative techniques. It deals with the future and as such there are bound
to be uncertainties, which may cause deviations from the target proposed to be achieved. So,
one should not hope that everything will be fine, because plans and schedules do not work by
themselves. It is rightly said that we must plan the work first and then work the plan. So for
working the plans and schedules effective controlling is necessary. “Planning is looking
forward while controlling is looking back.”

Control involves comparing the actual achievement with the plans. If a programme is to be
really effective as a control document, it must represent time and quantity of work carried out.
Progress can be recorded on planning charts that clearly indicate what is happening and where
corrective action needs to be taken. Weekly and monthly meetings are invaluable in helping to

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control progress. The action necessary for correcting underproduction will be considered and
the best solution will then be incorporated into the programme for the next period.

Planning Data Where to look for data? Studying relevant documents

Collection
What is to be done?
Defining scope of work.
What are the activities
involved? Breaking down project work into
activities.
Planning Time How it can be done?
Developing network plans.
When it is to be done?
Scheduling work
Where it is to be done?
Planning Resources

Forecasting resources requirement

Planning manpower requirement

What is needed to do it? Planning materials procurement

Planning equipment procurement

Planning Resources Budgeting costs

Designing organizational structure

Who is to do it? Allocating tasks and resources

Establishing responsibility centres

How to account Designing control system

performance?
Formulating monitoring
How to monitor
Planning Implementation methodology
performance?
Developing project Management
How to communicate
information? Information system (PMIS)

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4. PROJECT WORK BREAKDOWN

The project work breakdown process involves splitting of the project works into its manageable
constituents arranged in a hierarchical order till the desired level. The work-breakdown levels
are categorised into sub-projects, tasks, work packages, activities and operations. These levels
depend upon the plan type, the nature and complexity of the project and the expected degree
of control. The work-breakdown levels for various types of plans are given in the figure below.
It may be noted that the levels classification is a broad concept and, at times, overlapping of
levels may become unavoidable.

The breaking down of a task/work package into its constituent activities requires a study of the
methodology of execution of the work package. Generally, known by the term method
statement, this methodology is evolved by the planning engineer on the basis of his construction
experience and discussions with the respective project engineers. Construction projects are best
managed by work packages, which, in turn, are best planned and monitored by activities. A
project planner uses activity as the common data base for planning projects. Activity duration
forms the basis for time planning and scheduling of project work. The inputs of labour,
materials and machinery needed for execution of each activity enable preparation of resources
forecasts.

These activities are also called as levels, which can be classified very well. For instance the
activities of the cricket stadium are:

 Site consolidation
 Line out and marking
 Foundation Works
 Erecting Super Structure
 Erecting ancillary structures
 Services – Electrification, Illumination, Plumbing, HVAC, Fire Fighting
 Finishing Works
 Pitch development
 Parking layout and demarcation
 Clearance, Testing and Handing Over
 Maintenance (may not be a part of main WBS but should be)

Single item of schedule can be split up into various operations for example, excavation for
foundation for a building can be split up and excavation for foundation of each wall can be
considered as an operation by itself. Like-wise RCC work can be split up into: Erection of
formwork, cutting, bending and placing reinforcement and pouring concrete. Each sub item
can be an independent operation.

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 MODELING AND ANALYZING NETWORKS:
With the advancement of technology and the speed of construction, the traditional charts
planning approach has become inadequate to tackle the modern complex construct projects.
The bar charts provide very little information about the inter-relationship of voluminous
interdependent tasks. This traditional bar charts approach carries risk of schedule slippage's,
time over-runs, improper decisions and contractual complications. The network analysis
techniques developed in sixties, is being effectively used a management tool for planning and
then scheduling of complex projects involving interlink activities. Project Networks analysis
is a generic term that covers all network techniques used planning scheduling and controlling
of projects.
The three commonly used techniques this family are Critical Path Method (CPM), Program
Evaluation and Review Techniques (PERT) and the Precedence Network Analysis (PNA)
Technique. The common features these techniques are that they make use of network model
for depicting time-plan of project, apply critical path concept for determining project duration
and identifying critical activities, and employ network analysis techniques for controlling
project time object but each technique has a distinct model and its field of application varies.

Network analysis procedure The modelling and analysis of a network involves following steps:

 Defining scope of network

 Determining activities
 Developing network logic diagram
 Structuring model
 Incorporating activity durations
 Numbering events/activity
 Computing critical path
 Validating Network

5. CPM/ NETWORK ANALYSIS

 NETWORK ELEMENTS:
Network is defined as the pictorial representation of the activities of a given project in the form
of arrows, which form an essential element of network. Arrow represents an activity, task of
operation of the work since activity consumes resources.

Arrow has a directional sense, which can be represented by an arrow head it is used to indicate
the general direction of flow of work. It is conventional to show arrows directing from left to
right. Tail of arrow indicates the start of the activity and its had indicates the completion of the

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activity. Beginning of completion of an activity marks a phase or stage of work. This is
represented by a suitable geometrical figure like circle, triangle and rectangle.

This is known as event. Events naturally do not consume any resource by itself. There is another
type of activities, which do not require any resources and which are basically imaging activities
called dummy activities, these activities only show the interdependency of the activities but
doesn’t consume any resource.

The logic table is as shown below:

Activity Activities Duration Preceding Following Concurrent

no description
(Days) activity activity Activity

Site clearing & 30

A B C
levelling

B Layout 15 B D C

Procurement of 180
C V
material

Excavation for 45
D B E,L
foundation

E Foundation work 60 D F,H,I,J L

F Waterproofing 21 E G H,I,J,M

G backfilling 15 F X

Construction of 90
H E S F,I,J
boundary walls

Construction of 150 K,N,P,R,T,

I E F,H,J
super structure U

Construction of 60
J E Q
toilets

Services 90
G,N,P,R,T,U,
K work(electrificatio I V
Q
n, AC, plumbing)

Foundation for 25
L D M E
light structure

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 Fabrication of 90
M structure for lights L V F,H,I,J
for d/n facility

Construction of 100 G,K,P,R,T,U,

N I O
drains Q

Activity Activities Duration Preceding Following Concurrent

no description
activity activity Activity

Construction of 120
O N S V
Roads

Construction of 90 G,K,N,R,T,U,
P I S
parking area Q

Finishing works in 50 G,K,N,R,T,U,

Q toilets J S
P

M/S railing works 60 G,K,N,R,T,U,

R I S
P

Painting work 90
H,K,N,P,R,
S V O
T,U,Q

Structure of 60
welded wire mesh
around the Ground G,KN,P,R,U,
T I S
for safety of Q
players

Preparation of 150
Ground and pitch G,KN,P,R,T,
U I X
Q

Installation of 15
V Gadgets S,C W

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 Commissioning of 20
W Services V X

Handing over 5
X W

 ANALYSIS PROCESS:

The project can be analysed in a no. of ways, through precedence network and PERT/CPM
networks. Precedence network is the way of representing the project through the activity-on-
node approach. In precedence network, an activity is shown on the node, which is represented
by a box. The precedence diagram is shown as a straight line, called connectors, if an activity
a is followed by another activity B, it is known as

Sequential Activity

Sequential activity and it will be represented in CPM/PERT network as in the figure given
below. However if the some activity A is followed by another activity B, then it will be
represented in precedence diagram as:

Sequential Activity

Precedence network is easier to understand than arrow networks to draw as well as to

understand. It is also easier to explain to a non-technical person who does not have much
knowledge about a network. Now time analysis in both the networks (precedence and
PERT/CPM) is done on the same lines. Every event is associated with two timings,

Earliest occurrence (ET) and Latest occurrence (LT) Similarly each

activity is associated with four times:

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 Earliest start time (EST)= The earliest time by which an activity can start.
 Latest start time (LST) = The latest time by which an activity must start.
 Earliest finish time (EFT) = The earliest time by which an activity can be
Finished.
 Latest finished time (LFT) = The earliest time by which an activity must
be finished.
So far the networks were discussed with respect to only time and it is assumed that resources
required for carrying out various activities are as and when needed. But such a situation is
rarely possible and even if possible is neither desirable nor it will be economical. So, the aim
should be to use the resources in the optimum manner and at uniform rate as is possible.

 CPM NETWORK:

Essentially it was a problem concerned with obtaining trade-off between completion time of
work and the cost. The method known as critical path method is therefore based on the
assumption that the time required by various activities is known. It is deterministic in nature
and is not concerned with uncertainties. CPM is more suitable in construction situation where
some experience in handling similar activities in the past is available.
Once a commitment to CPM is made the implementation should be thoroughly planned in
advance, with frank and open discussions and involvement if success is required. It must be
understood that no amount of good office planning will cover up lack of production and
efficiency in the field. Critical Path Method is capable of serving on the basis of an integrated
company-worldwide management, ranging from pre bid feasibility studies though estimating,
planning, cost accounting, progress control and financial control.
Critical Path Method is the path of events having longest duration i.e. A-B-D-E-I-N-O-V-W-
X having duration 482 days=16 months, which is required completion time. This means that
any delay in completion of any activity in critical path is not having Float.

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6. CONCLUSION & REFERENCE

 Successful pre construction planning and scheduling will go a long way in ensuring that
the product is of the desired quality and meets all expectations with respect to cost, time and
quality.
 Due to both financial and time constraints, it is essential that thorough control be
maintained throughout the duration of the project.
 The utilization of network techniques must be inherent to the management strategy.
 A conscious effort to adopt sound quality practices must be undertaken. This is deemed to
be a world class facility. The quality objective is apparent and must be adhered to.
 Adequate allowance for stoppage/slowing of work must be made during monsoons.

REFERENCE:
1. Nicmar Study Materials
2. Lt. Col. K.K.Chitkara “Project Management” Tata Mc. Graw,1998

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