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EXECUTIVE SUMMARY

This report focuses on applying the project management approach to the scheduling
and control of projects. Planning a project demands a systematic and strategic direction. One
method for developing a strategic project is to create a well-planned strategic schedule. A
project schedule outlines the tasks that must be completed, the resources that must be
employed, and the deadline for completion. In addition, it is a schedule that details the project's
start and finish dates and the milestones that must be accomplished for the project to be
completed on time (Wrike, n.d).

The report comprises the management and control, emphasising Project Abode.
According to the GDV, it has the potential to earn RM 55 million at a 25% profit margin, which
equates to RM 13.75 million. Additionally, the project has a 36-month duration, which gives
the firm considerable time to achieve project value. Further, with a break-even Return on
Investment (ROI) in month 20, the firm will generate income from sales and become financially
favourable after the twentieth month. Furthermore, the project has a moderate level of risk
compared to other forms of development, enabling the organisation to invest with the least
amount of risk.

Similarly, this report will advance the discussion of project management scheduling
and control by providing insight into the Elemental Cost Analysis (ECA) for the Abode project,
the associated Work-Breakdown Structure (WBS), the project's Gantt chart, the related project
risk, and finally, the resources and facilities applied and considered in this project. Elem ental
Cost Analysis (ECA) is a systematic assessment of the costs associated with previously
constructed buildings. Its fundamental objective is to provide comprehensive data that will aid
in precisely calculating the cost of future developments. Additionally, it has a product-based
cost model, including initial elemental estimations and cost plans. The Work Breakdown
Structure (WBS) and the Gantt chart are two often-used approaches for determining a project's
schedule. In addition, the risks associated with the project include labour shortages, health and
safety concerns, defaulting subcontractors, and change orders primarily. Finally, the resources
included for the Abode project include manpower, financial, equipment, technology,
administrative, facilities, tool and machinery, and materials.

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CONTENTS
EXECUTIVE SUMMARY................................................................................................ i

1.0 INTRODUCTION ...................................................................................................... 1

2.0 FINDINGS AND DISCUSSION ................................................................................. 5

2.1 JUSTIFICAIONS IN THE SELECTED PROJECT: PROJECT ABODE..................... 5

2.2 ELEMENTAL COST ANALYSIS (ECA).................................................................. 8

2.3 WORK BREAKDOWN STRUCTURE (WBS) ........................................................ 11

2.4 GANTT CHART..................................................................................................... 14

2.5 RISK MANAGEMENT .......................................................................................... 19

2.6 RESOURCES AND FACILITIES ........................................................................... 23

3.0 CONCLUSION ......................................................................................................... 25

4.0 REFERENCES ......................................................................................................... 27

5.0 APPENDIXS ............................................................................................................. 29

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1.0 INTRODUCTION

Many strategies exist in the field of project management for planning and executing the
entire project, from start to finish. Work Breakdown Structure (WBS), Gantt chart, Critical
Path Method (CPM), Waterfall/Linear Method, Kanban, and other methods are ex amples.
There is many more. Different strategies each have their own purposes and advantages when
it comes to supporting others. The WBS and Gantt chart, for example, are commonly used to
plan out the entire project, to schedules and regulate the project f rom pre-construction to post-
construction in various projects to plan and track the progress of the project, with a clear
timeframe, resources, and predecessor. In general, project planning is critical for guiding
stakeholders, sponsors, and anyone involved in the project. Through-out the project's other
phases, the project manager will work with the teams and the project manager. It is necessary
to plan ahead of time in order to identify achieving targeted outcomes, reducing risks, avoiding
missed deadlines, and finally delivering the agreed-upon product service or outcome without
careful planning, project performance is almost certainly guaranteed to suffer. Project planning
requires breaking down a larger project into tasks, assembling a project team, and determining
a schedule over which the work is to be completed. During this phase, you create smaller goals
within the larger project, making sure each is achievable within the time frame (Alexander,
2018).

A good project, without a doubt, necessitated rigorous and strategic project planning.
One of the ways to design a strategic project is to use well-planned strategic scheduling.
Scheduling is the art of organising our actions so that we can achieve our goa ls and prioritise
our priorities in the time we have. Project scheduling is the process of listing tasks, activities,
and milestones with a start and finish date in the construction sector. The significance of
scheduling in construction projects cannot be overstated, as it is critical to the project's success.
A construction contract almost always requires the contractor to execute the job within a certain
time frame or by a set deadline. Before beginning any building job, there is a lot of work to be
done before the project completes.

The construction project schedule is a precise explanation and representation of how

the contractor intends to complete the work scope of the project. The work scope is indicated
by the schedule's work activities, as well as how long they'll take and in what order they'll be
completed. Furthermore, the only project management tool that can predict when the project
will be completed is the construction project schedule. The construction timeline should

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forecast when the project will be completed based on the contract, the plan, and how the work
should advance. In conclusion, efficient scheduling will ensure that the project is completed on
time and on budget (Nagata, 2016). It not only specifies the work's pace, but also how the duties
are carried out. Furthermore,

1. Dates are assigned to project activities.

2. Examine whether or not the client's requested time frame is feasible. Penalties for late
project completion can be avoided in this instance.
3. Estimates preliminary costs depending on the schedule of a construction project.
4. Estimates tender or bid amounts.
5. Over time, match equipment, materials, and human resources to project work-tasks.
6. Provides a list of chores to complete. As a result, the project manager understands what
tasks they should be working on and what activities they should prepare for next.
7. Improve safety performance by sequencing operations to ensure that workers are protected
to the fullest extent possible.
8. Allows the building team to see their objectives and when they must be met.
9. Change the order of activities and lengthen or decrease their durations so that resource
utilisation is smoothed and optimised.
10. .Removes issues caused by manufacturing constraints.
11. Ensures that a project is completed as soon as possible.
12. Assists in avoiding delays in the completion of a project as a whole, so avoiding mayhem
for owners ready to begin using the newly developed facilities.
13. Detailed construction schedules can be used to track the progress of the project.
14. Help establish if construction is progressing satisfactorily by comparing actual work to the
timetable.
15. Using the planned timeline and actual accomplishments comparison, allocate the liability
for project delays due to changes requested by the owner, worker strikes, or other
unforeseen situations.

We constantly see or hear the term 'investment' in our daily lives, whether on a website,
social media, or elsewhere. There are many different kinds of investments. Project development
is similar to car investment, financial investment, health investment, and many other types of
investments. Property or project development is a large and complex investment that can take
several forms. From the client's or developer's perspective, it's an investment in the form of an
asset, something they own. From the standpoint of contractors and consultants, it is their task

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to use their professionalism to earn money, grow their reputation, consolidate their abilities,
and 3 gain experience in the construction sector. The consumers who invest in, own, and enjoy
their product are the buyers or other investors. A property or project development will almost
certainly benefit a large number of stakeholders. As a result, a good investment is critical for
all parties. In the framework of project management, we should understand what constitutes a
solid investment, how to spot one, and whether or not to pursue it. To begin, we should
understand that an investment is an asset or item purchased with the intention of earning money
or increasing in value. The term "appreciation" refers to an asset's value increasing over time.
When a person buys something as an investment, the goal isn't to consume it right away, but
to use it to build wealth in the future. An investment always entails the current expenditure of
some asset, such as time, money, or effort, with the expectation of a higher return in the future
than what was first invested. A strong investment portfolio has many broad characteristics,
including risk aversion, cost efficiency, risk efficiency, tax efficiency, simplicity, transparency,
and ease of management, to name a few (Chen, 2020).

1. The asset that was bought

➢ Learn about the asset and what is included in the investment, such as what is included
in the investment. A residential project development includes amenities.

2. The expenses incurred in acquiring the asset

➢ Because of the chance that the asset will create a profit, we need to know when it was
purchased. The amount an investor is willing to pay for an asset is determined by the
prospective benefit. What is the benefit's worth? When will the benefit be provided?
The likelihood of something happening with the benefit's value and timing, as well as
associated costs. Aside from that, there's the opportunity cost.

3. The expected rate of return on investment

➢ Future benefit hoped for. Because it is the asset that will provide the profit, this benefit
is the rationale for the investment. This advantage refers to the profit that the owner
will receive as a result of his or her investment. The concept of Return On Investment
(ROI) is commonly used to determine the value of an investment as a percentage of
asset price over a specific period of time in realising at specific intervals based on three
parameters:

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i. How much it's worth as a percentage of asset price,

ii. How much it's worth as a percentage of asset price,
iii. Starting of the investment and the duration of investments

4. The danger that comes with that return

➢ When- and wherever-possible, risk should be avoided. To determine the investment's
quality, we must first determine how much return to expect and how likely it is to
deliver something else. A solid investment provides the expected return we require
while posing the least amount of risk.
➢ Overall, as a project manager, we must be able to analyse various sorts of investments
based on their characteristics and parameters so that we may recommend and persuade
the best investment with the greatest advantages, best outcomes, and least risk when
selecting a company's next step and direction. Furthermore, project management is
critical because it ensures that risks are ef fectively managed and controlled so that they
do not become difficulties. A good project management practise requires project
managers to carefully analyse all potential risks to the project, quantify them, develop
a mitigation plan against them, and a contingency plan should any of them materialise,
while also ensuring that the company reaps the greatest possible benefits. Thus, project
management approaches are extremely beneficial in supporting the project manager and
the entire project team in planning and executing the entire project in the most efficient
and effective manner possible, with the finest possible outcomes and earnings.

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2.0 FINDINGS AND DISCUSSION

2.1 JUSTIFICAIONS IN THE SELECTED PROJECT: PROJECT ABODE

According to the information provided, SPECTRE Enterprise Sdn. Bhd. (SESB) is a private
limited company established in 2010 with diverse interests and currently having 50 permanent
employees, including:
• 3 top management personnel (CEO, CFO and COO).
• 6 middle management professionals (with backgrounds/qualifications in construction,
manufacturing, and R&D/product development).
• 15 lower middle management executives (with backgrounds/qualifications in finance,
accounting, human resource and management).
• 20 semi-skilled multi-function workers.
• 6 general workers with below entry level qualifications.

There are 5 project options for the SESB to invest and develop. As a project manager, I
will prefer and convince the company to invest in the ‘Project Abode’, which is a residential
property development. The details of project as below:
✓ 100 units of double-storey linked residential units in mainland Pulau Pinang.
✓ GDV is RM55 million with a profit margin of 25%.
✓ Project turnover is 36 months.
✓ Break-even ROI will be achieved in 20 months.
✓ Risk threshold is moderate.

According to the information provided, as a project manager I highly encourage

investing in residential property development since nowadays the population in worldwide
including in Malaysia is expanding progressively from year to year. According to Department
Of Statistics Malaysia, Malaysia's population in 2021 is estimated around 32.7 million as
opposed to 32.6 million in 2020 with an annual growth rate of 0.2 per cent. On average,
Malaysia has a population density of 99 persons per one square kilometre were W.P. Kuala
Lumpur has the greatest population density with 7,188 people per square kilometre, followed
by W.P. Putrajaya (2,354 people) and Pulau Pinang (1,691 people) per square kilometre.
Sarawak has the lowest population density with (23 people), followed by Pahang (47 people)
and Sabah (52 people) per square kilometre. However, Penang is a one of the key emphasis
point with numerous work chances and with lots of facilities provided whic h are very

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convenience to the people living nearby. For sure, there are always demand for the residential
property especially that located near to the working place or near to the area for daily vital
purposes.

Table 1: Population and annual population growth rate in Malaysia from 2010 to 2021

However, when it came to the Gross Development Value (GDV), the development may
bring a total of RM 55 million with 25 percent of profit which implies RM 13.75 million in
value for profit after all the costs and taxes, which is a good amount to the company. Besides
that, the project has set a turnover time of 36 months equivalent to 3 years of time, which
providing more time to the company to complete the project, handover and sell deduct all the
taxes and the actual value may receive in 3 years of time. According to the information
provided, the break-even of Return on Investment (ROI) for this project is in month 20th. So
this means that the firm will received money from the sales and no profit or loss but after that
will turn financially positive or profitable after 20th month. Thus, this is also indicates that the
company has sufficient fund in developing the project which we will have ‘pre-sales’ during
the construction and the money received from the buyers can be used in constructing the project
while also reducing the capital need to invest in it during the construction stage and it is
profitable starting on month 20th onwards.

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Risks are uncertainties that may have both a positive and negative impact on the
project's objectives, schedule, cost, quality, and scope. Risks can occur at any stage of the
project's lifecycle. When it comes to risk and its management, one of the most important
considerations is the risk threshold. The risk threshold is characterised as a project management
tool that is used to determine the degree of uncertainty and the amount of impact in which a
stakeholder or organisation may be interested. When it comes to this project, SESB has always
been conservative in its resulting in manageable long-term liabilities, expenditure and
procurement. The risk of investing in this project development is at a moderate stage when
compared to the other development and this can assist the company in investing in a safe and
manageable manner with the least amount of risk that it may face in the future. Additionally,
residential property development can help the company's reputation image as the majority of
residential property will be associated with the developer's name, such as Eco Terraces by Eco
World Development Group Berhad, Bandar Puteri Bangi by IOI Properties, and The Light
Waterfront Penang by IJM Land. Thus, the 100 units of double-storey property can be named
as ‘The Abode Residential City by SESB’ which will definitely enhance the company's image
and the satisfaction with the quality will undoubtedly encourage other purchasers to invest in
future growth.

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2.2 ELEMENTAL COST ANALYSIS (ECA)

The project GDV is RM 55 million, with a profit of 25% and the remainder being the
Total Development Cost from pre-construction through post construction.

As a result, the Total Development Cost (TDC) is expected to be RM 41.51 million. E

lemental cost analysis is a type of cost analysis that is created by reviewing the data from a
project that has been designed or built and the bills of quantities have been priced. As a result,
the cost analysis is produced using information from the successful tender rath er than the
project's actual cost. Furthermore, it is a comprehensive assessment of the costs associated with
previously completed buildings, with the primary goal of giving reliable data to aid in
accurately projecting the cost of future structures. It provides a product-based cost model, as
well as data on which to create initial elemental estimates and cost plans. There are two key
breakdowns in Elemental Cost Analysis: the breakdown of Total Development Cost and the
breakdown of elemental construction cost.

To begin, let's look at the breakdown of Total Development Cost. Land cost,
construction cost, and additional costs are the three primary components of Total Development
Cost. According to a 2020 post published in Penang Property Talk, land expenditures account
for almost 30% of all property development costs in Penang for the entire year of 2019. As a
result, we projected that the development's land cost would be 30% of the total the price of
development Next, we assume that the total construction cost will be 60%, with the remaining
10% going to other costs such as promotion/marketing costs such as advertising and
promotional fares, pre-development costs such as survey costs, market studies, debt financing
costs, statutory contribution & charges, legal cost, contingency cost, consultant fee, interest
charges, and so on. Based on information provided by the Institution of Surveyors Malaysia,
the following is a breakdown of Total Development Cost (Talk, 2020).

Element Percentage % Total contribution

Cost of land 30 RM12.38 Million
Cost of construction 60 RM25 Million
Other cost 10 RM4.13 Million
Total 100 RM41.51 Million
Table 2: The elements of a construction projects and the total cost of the total GDV

Preliminaries, Work Below Lower Floor Finishes (WBLFF)/Substructure,

Superstructure, Finishes (Architecture Works), Fittings and Furnishing including Engineering

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Services, and finally External Work are all broken down from a total construction cost of RM
25 million. The percentage breakdown of each element's contribution is based on a similar
project completed and submitted to the Institution of Surveyors Malaysia (refer to Appendix
A).

Element Percentage Total contribution

1. Substructure
− Piling works 27 % RM6.75 Million
− Work Below Lowest Floor Finish (WBLFF)
2. Super structure
− Roof
− Staircase
− Windows
− Frame 25 % RM6.25 Million
− Upper floor works
− External wall
− Internal Doors
− Internal wall and partition works
3. Finishes
− Wall finishes (internal)
− Ceiling finishes (internal) 10 % RM2.5 Million
− Floor finishes (internal)
− External finishes works
4. Furnishing, finishing and engineering services
− Sanitary works
− Plumbing works
− Waste disposal
− HVAC systems
15 % RM3.75 Million
− Electrical installation works
− Fire protection system installation
− Landscaping works
− Glazing works
− Provisional works

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5. External works
− Site works
− Drainage system 13 % RM3.25 Million
− External work services
− Recreational facility
6. Preliminaries 10 % RM2.5 Million
TOTAL 100 % RM25 Million
Table 3: The percentage breakdown of each element's contribution of RM25million of construction cost.

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2.3 WORK BREAKDOWN STRUCTURE (WBS)

A Work Breakdown Structure (WBS) is a deliverable-oriented hierarchical

decomposition of the work to be executed by the project team to accomplish the project
objectives and create the required deliverables. A WBS is the cornerstone of effective project
planning, execution, controlling, monitoring, and reporting. All the work contained within the
WBS is to be identified, estimated, scheduled, and budgeted. Company owners and project
managers use the Work Breakdown Structure (WBS) to make complex projects more
manageable. The WBS is designed to help break down a project into manageable chunks that
can be effectively estimated and supervised. By Using WBS project management, there have
6 major benefit of WBS.

The first benefit of using WBS Project Management is that it helps prevent work from
slipping through cracks. Since WBS Project Management shows the project deliverables and
work that needs to be completed in a project it actually guides the project team on what needs
to be done in an organized manner. Second by of using WBS Project Management is that it
provides the project team members an understanding of where their pieces fit into the overall
project management plan and it gives them an indication of the impact of their work on the
project as a whole. Thirdly is WBS Project Management facilitates communication and
cooperation between and among the project team and other stakeholders. WBS Project
Management shows the hierarchy of the project work and deliverables of a project scope,
completed work, remaining work and project team members working on same work package
etc. So all of these can be easily communicated to project stakeholders with the help of WBS
Project Management. Fourth is WBS Project Management helps prevent changes. Changes are
inevitable in a project. But, preventive and corrective actions must be taken to prevent root
cause of changes in a project. Changes might happen because of an unclear project scope or
missing requirements in a project as well. Fifth is WBS Project Management provides a basis
for estimating staff, cost and time. This is a very important benefit of using WBS Project
Management. It is always hard to make estimations about staff requirements, cost and time for
a big amount of work. Lastly is WBS Project Management is the foundation of the project.
Almost everything that occurs in planning process after the creation of WBS, is directly related
to WBS Project Management.

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As a Project manager for Project Abode (Project Development/Construction), I will

assigned three main phase which is Pre-Construction, Construction and Post-Construction as
show in Figure 1 WBS for Project Abode by SESB.

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PROJECT :Project Abode By AESB (100 unit of

double-story linked residential unit) 1.0 Project Start

1.1 Pre- 1.2 Construction 1.3 Post

Construction Phase Construction

1.2.1 Phase 1 (50 1.2.2 Phase 2 (50

1.1.1 Planning unit) unit) 1.3.1 Clean Up

1.2.1.1 1.2.1.4 Building 1.2.2.1 1.2.2.4 Building

Substructure / 1.2.1.2 1.2.1.3 Service & 1.2.1.5 External Substructure / 1.2.2.2 1.2.2.3 Service & 1.2.2.5 External 1.3.2 Test and
1.1.2 Site Clearing Superstructure Architecture Work Work Superstructure Architecture Work Work Commissioning
WBLFF Engineering Work WBLFF Engineering Work

1.2.1.5.1 Open 1.2.2.5.1 Open

1.1.3 Land 1.2.1.1.1 1.2.1.2.1Ground 1.2.1.3.1 Wall 1.2.1.4.1 Electrical Surface Water 1.2.2.1.1 1.2.2.2.1Ground 1.2.2.3.1 Wall 1.2.2.4.1 Electrical Surface Water 1.3.3 Defects
Survayer Excavation Floor Slab Construction Work Excavation Floor Slab Construction Work Checking
Drainage Drainage

1.1.4 Hording and 1.2.1.1.2 Pad 1.2.1.2.2 Ground 1.2.1.3.2 External 1.2.1.4.2Plumbing 1.2.1.5.2 Facing 1.2.2.1.2 Pad 1.2.2.2.2 Ground 1.2.2.3.2 External 1.2.2.4.2 Plumbing 1.2.2.5.2 Facing
Signboard Foundation Floor Column Finishes Work and Gating Foundation Floor Column Finishes Work and Gating 1.3.4 Handover

1.1.5 Temporary 1.2.1.1.3 Column 1.2.1.2.3 First 1.2.1.3.3 Internal 1.2.1.4.3 HVAC 1.2.1.5.3 1.2.2.1.3 Column 1.2.2.2.3 First 1.2.2.3.3 Internal 1.2.2.4.3 HVAC 1.2.2.5.3
utilities Stump Foundation Floor Beam Finishes Work Landscaing Stump Foundation Floor Beam Finishes Work Landscaing

1.2.1.4.4 Sanitary 1.2.2.4.4 Sanitary

1.1.6 Sign 1.2.1.1.4 Ground 1.2.1.2.4 First 1.2.1.3.4 Staircase Appliances 1.2.2.1.4 Ground 1.2.2.2.4 First 1.2.2.3.4 Staircase Appliances
Contracts Beam Floor Slab Finishes Beam Floor Slab Finishes
Installation Installation

1.2.1.2.5 Staircase 1.2.2.2.5 Staircase

Construction 1.2.1.3.5 Door 1.2.1.4.5 Lighting Construction 1.2.2.3.5 Door 1.2.2.4.5 Lighting

1.2.1.2.6 First 1.2.2.2.6 First

Floor Column 1.2.1.3.6 Window Floor Column 1.2.2.3.6 Window

1.2.1.2.7 Roof 1.2.2.2.7 Roof

Beam Beam

1.2.1.2.8 Roof 1.2.2.2.8 Roof

1.2.1.2.9 CeIling 1.2.2.2.9 Ceeling

Installation Installation

Figure 1: WBS for Project Abode by SESB.

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2.4 GANTT CHART

Gantt Charts are a way to graphically show progress of a project and it a management tool
assisting in the planning and scheduling of projects of all sizes work task.

Management of a project is made easier if it viewed as into a horizontal bar chart,

showing start and end dates, as well as dependencies, scheduling and deadlines, including how
much of the task is completed per stage and who is the task owner. The tasks of a project can
be quite complex and dependent on each other. With a project management tool, such as a
Gantt chart, all subtasks of a task can be viewed graphically.

To develop a Gannet Chart, need to identify and understand the work breakdown as
knows as work task (activities) in detail to achieve the most accurate outcomes for the
scheduling. As example, first work task in develop one building is start with sup erstructure and
move to architect work. After that, project manager must understand how to set the predecessor
or the link in between the activities by understand types of dependencies. There are four (4)
types of dependency relationships, that is Finish to start, Start to Start, Finish to Finish, and
Start to Finish

1. Finish to Start
➢ Predecessor must finish before Successor can start. As example is land must be
purchased before road building can start.

2. Start to Start
➢ Predecessor must start before Successor can start. As example road excavating must
start before Asphalt can be laid.

3. Finish to Finish
➢ Predecessor must finish before Successor can finish. As example laying Asphalt must
be complete before line painting can be completed.

4. Start to Finish
➢ Predecessor must start before Successor can finish. As example Road excavating must
start before line painting can be completed.

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Dependencies are the relationships of the preceding tasks to the succeeding tasks. Tasks
may have multiple preceding tasks and multiple succeeding tasks. The most common
dependency relationship is a finish-to-start relationship. Task P (predecessor) must be finished
before task S (successor) can start. The least common relationship is the start-to-finish
relationship.

Beside set up the duration for the activities to be complete, project can also fill in other
details such as the number man powers, quantity and type of equipment or machinery, who is
in charge of the activity, cost spend and others into the software. With filling all the details into
one of the Gantt chart software, we are able to see and track clearly on the schedule of the
whole project.

As a Project manager for Project Abode (Project Development/Construction), I will use

Microsoft Project to make a schedule as needed

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Figure 2: Gantt chart for Project Adobe (page 1)

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Figure 3: Gantt chart for Project Adobe (page 2)

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From Gantt chart above (figure 2 & 3), project manager need to identify overall duration
of project. On project adobe, date start project specified in Latter of Acceptance contract (LA)
which is 11 February 2022 to 9 February 2025 and it took 36 month to finish. By using WBS,
this project divide by 3 element that is pre construction, Construction Phase and last is post
construction. The first element in pre-construction will represent as summary task and that took
110 day to complete. The task that involve in pre-construction planning, site clearing land
surveyor, holding and signboard, temporary utilities and sign contract.

The second element is construction phase that represent as summary task that took 905
day where consist phase 1 and phase 2. Phase 1consists of 50 unit of terrace house and phase
2 consists of 50 unit of terrace house. Task and sub task in phase 1 and 2 is same but they have
different date. The task in phase 1 and 2 is consist Substructure, superstructure, architecture
work, Building service & engineering work and lastly external work.

The third element is post construction that represent as summary task that took only 80
day to finish. Task involve in post construction is clean up, Test and commissioning, defect
Checking and lastly is handover.

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2.5 RISK MANAGEMENT

According to Investopedia, risk is defined in financial terms as the possibility that the
real profits from a result or investment may differ from the expected outcome or return. The
danger of losing part or all of one's initial investment is included in risk. Risk is often quantified
by taking into account past behaviours and outcomes. (Risk, Chen, 2020). In general, there are
several types of risks that may be encountered in a construction project, such as pure and
particular risk, which includes damage to persons and property (such as fire, storm, water,
collapse, subsidence, vibration, and so on), fundamental risk, which includes external factors
such as damage due to war, nuclear pollution, supersonic shock waves, government policy on
taxes, labour, safety, or other laws, malicious damage, and industrial disputes, and finally
Speculative risk.

This may include time and money losses caused by unexpected ground conditions,
exceptionally bad weather, unforeseeable labour or material shortages, and other similar
matters beyond the parties' control, as well as time and money losses caused by delays and
disputes (possession of site, late supply of information, inefficient execution of work, poor
direction, supervision, or communication, delays in payment, and delays in resolving disputes).
There are 4 main Risk that might be facing in the Project Abode such as below:

A. Health & Safety Hazards

On any jobsite, the safety of the employees should be the main concern. Site conditions can
swiftly change, and unanticipated dangers might arise at any time, posing unexpected project
risks. Major accidents can cause significant injury or even death to your personnel. Our
objective on every project should be to avoid accidents and guarantee that every worker returns
home safely to their families. Aside from the potential for worker damage, a significant
accident might cause work to be stopped or delayed, resulting in a drop in production owing to
low morale among our employees. Due of the expenditures connected with dealing with an
accident, our project as well as the company may be put in jeopardy.

To face and overcome the risk, it is significantly cheaper to spend in training, engineering
controls, and personal protective equipment (PPE) to prevent accidents than it is to cope with
the aftermath when one happens. Before commencing construction, ensure that all
subcontractors understand the commitment to safety and give training to their staff. Hold a
kick-off safety meeting with all workers and subcontractors before beginning a project. Discuss

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the risks and dangers that will exist at each stage of construction. Ascertain that everyone has
read and comprehended the project's safety strategy. A kick-off safety meeting should address
topics such as safe work practises for the various activities and tasks being done, as well as the
selection and correct use of personal protection equipment (PPE) and basic first aid practices.
Next, talk about the engineering safety measures that will be used on the project, and do toolbox
discussions on a daily or weekly basis to underscore your commitment to workplace safety.
Furthermore, we must focus on high-risk scenarios and alert workers about changes to the
workplace or working environment. These can be divided by trade to cover th e job that is done
each day, with an emphasis on possible dangers and how to accomplish each activity safely.

B. Subcontractor Default
Dealing with a non-performing subcontractor on a construction project is a big risk issue
for general contractors. A non-compliant subcontractor who fails to satisfy its contractual
requirements might entirely derail our project timetable and perhaps damage our profit margin.
Schedule delays might also have an influence on other subcontractors, resulting in costly
rework.

To deal with it, we must first understand that no subcontractor begins a task with the
purpose of defaulting on the assignment. Before they may be paid, subcontractors must
contribute a significant amount of the project's expenditures. If they overextend themselves by
taking on too much work, or if payments on other projects are delayed, this can quickly lead to
cash flow concerns. If we think that things are going off the rails, we must be proactive in
monitoring subcontractors. A sudden drop in the subcontractor's personnel on the construction,
delayed material delivery, and failing to pay their subcontractors or suppliers on time are
common warning flags. We may also replace a terminated subcontractor or supplement their
unfinished work, which can kill a project and damage your company's reputation. With that in
mind, we may be better off working with them to resolve any difficulties that arise in order to
complete the job rather than letting them go. If a subcontractor is having issues, they may not
be forthcoming with us about the situation. As a result, regardless of the subcontractor's
performance, address any red flags with them. We might not be able to recoup if we waited too
long to address a troubled subcontractor. Prequalifying subcontractors, for example, is vital to
guarantee they can perform the task both physically and financially. Examine the prequalified
subcontractors to see which ones are capable of handling the job before inviting them to bid on
our project.

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C. Labour Shortages & Productivity Issues

When taking on new projects, there is a significant danger of not having enough people
available to complete the project or meet productivity targets. Without sufficient labour to do
the task, the project may face lengthier construction timelines and probable delays in
completing the project on time for the owner. Since the recovery from the previous recession
began, the construction sector has been plagued by labour shortages. Construction firms have
been trying to fill employees in order to meet the increasing demand for their services. The
construction sector lost almost a million jobs from February to March 2020 as a result of the
COVID-19 epidemic, but has subsequently recovered 857,000 employments as of December
2020. This isn’t necessarily a bad thing, but there are additional risks that come with having a
less experienced crew. These workers won’t have the same skill sets as experienced workers,
meaning they will be less productive and will probably need closer supervision when they are
first starting out. Safety is also a construction project risk factor to consider when working with
new employees. They lack the training and experience to know all the rules or be able to
identify hazardous situations on the jobsite. Safety training is just as, if n ot more, important as
skills training and should be a top priority with new hires.

To limit the risk, one option will be to give competitive pay and benefits and to build a
strong business culture that appreciates people and rewards hard work and devotion. This
necessitates the investment of time and money in worker training and development. To retain
personnel, make training, mentorship, and continuing education courses available to both new
and existing employees. Create possibilities for promotion and career routes for employees to
advance inside our business.

D. Change Orders
Change orders are an unavoidable component of the building process and can be a
significant risk issue if not managed effectively. A change order is merely an addition or
modification to the original construction contract or scope of work. They might be started by
the owner, the general contractor, or one of the subcontractors. They typically necessitate
performing additional work for reasons such as omissions or errors in the original scope of
work or ambiguous construction drawings, which can result in increased project costs, delays
in meeting contract milestones, interruptions of workflow, and failure to complete a project on
time.

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Managing change orders needs planning, comprehension, and frequent communication

with all project stakeholders. Disagreements about what constitutes a change order are
prevalent since they affect the many parties involved in different ways. Clarify any
contradictions or ambiguities in the scope of work, plans, and specifications. Next, we must
ensure that the subcontractors understand the scope of the task for which they have been hired.

This may remove the need for future change orders. Some contracts may have contradictory
wording or terms about modification orders. A provision could say that change work cannot
commence without a signed and authorised change order, but yet permitting the owner to seek
more work in the absence of an agreement. As a result, address these concerns before entering
into a contract with your customer. Furthermore, there are situations when a change order has
no effect on the cost or timeline of a project, but this is not always the case.

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2.6 RESOURCES AND FACILITIES

Resources are required in construction to execute all duties related to the development
of a project. The term "resources" applies to individuals, equipment, facilities, and capital
necessary to carry out a particular activity. Prior to initiating any project, it is essential to
analyse and allocate resources. This is because insufficient resource planning may culminate
in the project running out of resources halfway through or during the final product's delivery,
resulting in project delays. Similarly, the facilities are the welfare amenities provided to
construction employees on-site. These amenities are critical in fostering an inclusive work
environment for employees.

Additionally, facilities contribute to larger objectives, such as attracting and keeping

top talent, increasing efficiency and production, and fostering a pleasant workplace
environment (Sheynkman, 2022). Consequently, as a project manager, managing resources in
projects is a critical skill since bridging the restrictions imposed by finite resources and the
ability to make the best use of the resources available will ultimately decide the success or
failure of a project. Thus, it is vital to understand the resources and facilities required for project
development for scheduling and control. Additionally, recognising the resources and facilities
that must be provided enables the project team and the organisation to manage costs efficiently.
To provide more insight, the breakdown of resources and facilities frequently required in any
project, including the Abode project, are as follows:

Resources Manpower:
− These human resources refer to people often assigned according to their
specialities.
− Examples: Project Team, Skilled Workers, General Workers, Machinery
Operator, etc.
Financial:
− Cash or funding resources provided in the project by the client/stakeholder
Equipment:
− This category refers to the tangible items used in any construction project.
− Examples: laptops, mobile phones, projectors, etc.
Technology:
− This refers to the software, programmes, or data processing tools accessible
to the project.

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Administrative:
− This category refers to the organisational assistance that the project will
receive from the organisation's structures, such as utilising the human
resources department to assist with recruiting or the legal department to
finalise contracts.
Tool and machinery:
− Items that are required to assist workers and construction projects.
− Examples: Mobile Crane, Lorry, Vibrator, Concrete Mixer, Piling Crane,
Excavator, Tools (hammer, screwdriver, axe, etc.).
Materials:
− Necessary materials required for construction or to complete a project.
− Examples: Concrete (Aggregate, Cement, Water), Reinforcement bar,
Formwork (Timber or Steel Formwork), Brick/block, Roof structures (roof
truss, roof tiles, etc.), Finishes, Door and windows, etc
Facilities
− These buildings or offices will house and offer basic facilities for the individuals in the
project.
− Example: Site office, Employee welfare (accommodation, toilet, etc.), Car parks,
Storage, Waste disposal, Personal Protective Equipment (PPE), etc.
Table 4: Resources and facilities in the Abode project

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3.0 CONCLUSION

Finally, project management approaches are quite effective in planning and carrying
out the entire project development process. To begin, we should do a thorough examination of
the background and nature of each type of project, as well as how the projects will benefit us,
what the risks are, what the project needs are, and does the firm satisfy the project criteria? We
only know which project is the best for us to invest in based on these. Following that is the
Elemental Cost Analysis (ECA), which is a cost analysis performed by reviewing the
information of a project that has been designed or built in which the bills of qua ntities have
been priced. As a result, the cost analysis is done using data from the successful tender rather
than the project's actual cost. Furthermore, it is a comprehensive evaluation of the costs
associated with previously completed structures, with the primary goal of giving trustworthy
information that will aid in properly projecting the prices of future constructions. When it
comes to project scheduling, the Work Breakdown Structure (WBS) and Gantt chart are the
most often utilized methodologies in project development. The work breakdown structure
(WBS) is a deliverable-oriented hierarchical decomposition of the work to be performed by the
project team in order to achieve the project objectives and generate the requisite deliverables.
It is the foundation of efficient project planning, execution, control, monitoring, and reporting.
All of the work in the WBS must be recognized, estimated, planned, and budgeted. A work
breakdown structure (WBS) is intended to make a complex project more manageable. Bre aking
it down into smaller parts allows multiple team members to work on it at the same time,
resulting in higher team productivity and simpler project management. Gantt charts are
effective and strategic tools for project planning and scheduling of all sizes since they are
particularly useful for simplifying complex tasks. Project management timelines and tasks are
turned into a horizontal bar chart, displaying start and finish dates, dependencies, scheduling,
and deadlines, as well as how much of the job is accomplished each stage and who is the task
owner. When the scope changes, this is important for keeping tasks on track when there is a
big team and various stakeholders. Aside from scheduling, it is critical for us as project
managers to understand risk management. Every project development or investment will
undoubtedly have its own set of hazards, which can range from minor to major. A project
manager should anticipate risks throughout the planning and scheduling stages and develop
ahead of time solutions or strategies for risk management to minimize or mitigate losses in
terms of money, time, and other resources. Last but not least, knowing the resources and
facilities required in the development of a project is an important responsibility for project

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management in planning, scheduling, and control because we can forecast or plan ahead what
the resources needed in the project and know what the company lacks in developing the project
so that the company can prepare before the execution. Not only that, knowing the resources
and facilities can help the project team and company to obtain the best cost control while also
optimizing the input and output of the resources.

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4.0 REFERENCES

The 4 Main and Important Functions of Facilities Management. SpaceIQ. . (2022). Sheynkman,
A. , Retrieved February 7, 2022, from https://spaceiq.com/blog/functions-of-facilities-
management/.

Work Breakdown Structure, . (2003). PMP , Retrieved from U.S. Department of Energy office
of management, Budget and evaluation.

Alexander, M. (2018). Why planning is the most critical step in project. Retrieved from
https://www.techrepublic.com/article/why-planning-is-the-most-critical-step-in-
project-management/

Chen, J. (22 October, 2020). Investment. Retrieved from

https://www.investopedia.com/terms/i/investment.asp#:~:text=An%20investment%20

Creating The Work Breakdown Structure . (2000). Kim Colenso , Retrieved from Artemis
Management Systems.

Gantt Chart and the Scientific Management in Projects. (2021). Joana Geraldi &Thomas
Lechler, Retrieved from https://www.researchgate.net/publication/263571905.

Gantt Charts. (2010). Saleh A. Mubarak, Retrieved from

https://www.researchgate.net/publication/319359193.

Nagata, M. (2016). Construction Project Scheduling: A Basic Guide. Retrieved from

https://www.traunerconsulting.com/construction-project-scheduling-a-basic-guide/

Talk, P. P. (19 September, 2020). Penang land deals transacted in 2019. Retrieved from
https://www.penangpropertytalk.com/2020/09/penang-land-deals-transacted-in-2019/

The Top 10 Property Developers In Malaysia 2020. (2021). Property Guru, Retrieved from
https://www.propertyguru.com.my/property-guides/top-10-property-developers-
malaysia-2020-21116.

What is a Project Resource? . (2021). Planview, https://blog.planview.com/what-is-a-project-

resource/.

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What is a Project Schedule in Project Management? . ( 2022). Wrike, Retrieved from

https://www.wrike.com/project-management-guide/faq/what-is-a-project-schedule-in-
project-management/.

Work Breakdown Structure (WBS) . (2010). Mohaymen Alutbi , Retrieved from University of
Thi-Qar.

Alexander, M. (2018). Why planning is the most critical step in project. Retrieved from
https://www.techrepublic.com/article/why-planning-is-the-most-critical-step-in-
project-management/

Chen, J. (2020). Investment. Retrieved from

https://www.investopedia.com/terms/i/investment.asp#:~:text=An%20investment%20

Nagata, M. (2016). Construction Project Scheduling: A Basic Guide. Retrieved from

https://www.traunerconsulting.com/construction-project-scheduling-a-basic-guide/

Talk, P. P. (2020). Penang land deals transacted in 2019. Retrieved from

https://www.penangpropertytalk.com/2020/09/penang-land-deals-transacted-in-2019/

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5.0 APPENDIXS

Appendix A: The example of Elemental Cost Analysis by Institute of Surveyor Malaysia

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Appendix C: Turnitin Check

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