AZERBAIJAN REPUBLIC MINISTRY OF EDUCATION

AZERBAIJAN STATE OIL ACADEMY IN PARTNERSHIP WITH GEORGIA STATE UNIVERSITY MBA PROGRAM COURSE: PROJECT MANAGEMENT COURSE PAPER PASHA CONSTRUCTION

STUDENTS: ABDURAHMANOV MEHMAN MEKHRALIYEV ULVI INSRUCTOR: AGAYEV FAIQ

Project Management

PASHA Construction Project Management

CONTENTS
1. 2.

Project Management Project Management for Optimal Selection of Bidders

Pasha Construction An ongoing commitment to our clients
Unwavering dedication to finding a better way

3.

Our Values
Safety first. Second nature. Client focus Pursuit of a better way Integrity Opportunity

4.

Corporate Responsibility
Core values Health and safety Sustainability Diversity Community regeneration

5. 6. 7. 8. 9. 10.

Pasha Construction Project Management Azerbaijan Prequalification Process Tender Issue Tender Evaluation and Award Conclusion

1. Project Management
Project Management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. It is a carefully planned and organized effort to accomplish a successful project. A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. It is a one-time effort that produces a specific result. The temporary nature of projects stands in contrast with business as usual (or operations), which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies.

Project Management focuses on carefully managing the processes to produce and distribute products and services. Major, overall activities often include product creation, development, production and distribution. (These activities are also associated with Product and Service Management.) Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations of processes. A great deal of focus is on efficiency and effectiveness of processes. Therefore, project management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of the products or services in the organization.

2. Project Management for Optimal Selection of Bidders

The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. Typical constraints are scope, time, and budget. The secondaryand more ambitiouschallenge is to optimize the allocation and integrate the inputs necessary to meet pre-defined objectives. Project management includes developing a project plan, which includes defining and confirming the project goals and objectives, identifying tasks and how goals will be achieved, quantifying the resources needed, and determining budgets and timelines for completion. It also includes managing the implementation of the project plan, along with operating regular 'controls' to ensure that there is accurate and objective information on 'performance' relative to the plan, and the mechanisms to implement recovery actions where necessary. Projects usually follow major phases or stages (with various titles for these), including feasibility, definition, project planning, implementation, evaluation and support/maintenance.

PASHA GROUP

PASHA Group is one of the largest established companies in the Republic of Azerbaijan and is engaged in a wide range of business activities, primarily in property development and construction, tourism, insurance and banking. The Group includes one of the following main divisions:

PASHA Construction is a full service development and construction company established to deliver some of the most prestigious projects in Baku. PASHA Construction was launched in November 2006 and has enjoyed phenomenal growth since conception. PASHA Construction portfolio consists of over 1,000,000 SM of projects, with 756,000 SM currently under construction. These developments include retail, residential, office centers, hotels and large mixed use schemes.

An ongoing commitment to our clients

At the centre of our business is client focus, which is why we never provide a predetermined set of solutions to a challenge. Instead, we develop a bespoke offer that responds directly to our customers needs and ensures the right people are involved at every step along the way. To support this, we have nurtured an agile corporate culture that enables us to respond quickly and intelligently to change. Our clients are as far-reaching and diverse as our expertise, which includes a broad range of services, sectors and geographies. Spanning the full property lifecycle, our core services are programme and project management, construction delivery, cost consultancy and facilities management. Our integrated, cross-discipline approach ensures that our clients benefit not only from the services we provide to them, but also from the full range of our expertise.

Unwavering dedication to finding a better way

As part of this dedication, we ensure that we are experts on the issues and challenges facing our clients business. We work across sectors, knowing that each informs the rest, to deliver a variety of property solutions. In the commercial office; retail; hotels, leisure and sport; and residential sectors, we work to create places that serve the end-users, reflect local culture, and surpass our clients expectations. We work alongside public organisations on education, health and social care, and estates strategies, integrating wholly with their teams and delivering results from the inside out. We grapple with transport, energy, utilities and environmental challenges, delivering solutions that respond to our clients needs and improving the way of life in cities and communities around the world.

Across all of these sectors, services and our more than 65 global locations, our projects share a single potent quality: our unwavering dedication to finding a better way. Everything we do challenges, innovates and strives for a solution that achieves our clients goals more efficiently, more affordably, and more effectively.

4. Our Values
Our core values define us, govern our relationships with our colleagues and clients, and influence our decisions. Safety first. Second nature We make the wellbeing of our people our top priority everywhere we work by nurturing a behavioral culture that lives and breathes health and safety on every project. Client focus We have built an agile and fast-paced business culture, one that supports our dedication to our clients, bringing them customised solutions and certainty of delivery. Pursuit of a better way We attract, develop and retain people who have the courage to challenge the status quo, the passion and insight to bring new ideas to the table, and the enthusiasm to see them through. Integrity We lead by example, take responsibility for our actions, and always behave in an honest and transparent way to the benefit of our clients and the industry. Opportunity We strive to maintain a collaborative, engaging and creative environment in which our people can thrive. For our clients and our communities, we create opportunity by evolving intelligently in response to our clients needs and to the changing environments in which we work.

5. Corporate Responsibility
At Pasha, we are committed to conducting our business in an ethical and sustainable way; having a positive impact on our people, communities, clients; and creating opportunity at every step of the way. Our approach to corporate social responsibility applies to all of our activities and is governed by the following: Core values Our core values sit at the core of everything we do. In addition to challenging us to go the extra mile for our clients and employees, these values embrace leadership and integrity, ensuring that we always operate openly, transparently and honestly. Health and safety At Mace, our ongoing mission is to have the best health and safety record in the industry. To this end, we employ a strategy of training and development, risk assessment and preparation, behavioural change, and continuous improvement, all the while engaging with our stakeholders in a collaborative and supportive manner. Sustainability In everything we do, we strive to create opportunity for our people, clients and communities while preserving resources; however, we also understand that sustainability is about striking a critical balance between commercial success and responsibility to society and environment. Diversity In order to continue to employ the best people and promote diversity in the workplace, we grow intelligently to create opportunity. In addition to providing benefits and remuneration packages that rival the top of the industry, we make key decisions to expand and grow into new sectors, services and regions in order to offer the greatest opportunity to our employees. Community regeneration Mace has an enviable track record of delivering projects in a way that maximises the benefit to local communities worldwide and develops construction solutions that consider the long-term impact on the communities in which we work. We create opportunities for local people to become involved in the projects we deliver and inform the industrys approach to social inclusion.

PASHA CONSTRUCTION Tender decision making Flow Charts

Prequalification Process Tender Issue Tender Evaluation and Award

8. Prequalification Process
The purpose of pre-qualifying bidders is to ensure we bid to competent contractors who can undertake the specified Works in accordance with the Clients for programme, cost, quality and safety. The process commences with the production of a long list of prospective contractors. Upon approval of the long list the prequalification questionnaire is sent out to the bidders, completed and returned to Mace. These are then analysed, a pre-qualification report produced. Evaluation of prequalification questionnaire is based on the following indicators: Company experience in Azerbaijan and adjoining markets Production and installation capacity Main discipline and its duration Financial indicators Overall turnover Previous contract references Performance Bond Capability Human resources QA/QC Health & Safety

After successful evaluation of prequalification questionnaires submitted by the bidders a short list of recommended contractors submitted to the Client for approval.

PREQUALIFICATION PROCESS
CM submits list of competent Contractors for work package to Client

CM (Mace)

CM identifies work package & scope

CLIENT

Client reviews list and adds Contractors if desired (within 3 working days)

Client Revie w

APPROVED. Client issues approved list to CM

CM (Mace)

NO APPROVAL. CM revises list in collaboration with Client and resubmits

CM issues PreQualification questionnaire to approved list

CM prepares shortlist with PreQualification Report & submits to Client

CLIENT

Client reviews shortlist and approve/comment

Client approved Tender List

9. Tender Issue
The tender is compiled by the Project Manager and will include generally as a minimum:

The proposed contract with amendments Drawings and specifications Programme of the Works Scope of the Works and the pricing document

This document is then submitted to the Client for review/comments. Any comments are incorporated into the final document and issued to the approved contractors to price. During the bid period the contractors will be requested to attend a mid-bid interview to discuss the bid, answer any queries and ensure the contractors clearly understand the scope of the Works and bid requirements. A Client representative has the opportunity to attend this meeting along with the Design Team. During the bid period the Project Manager will also deal with any bid queries from the contractors. These are passed to the relevant Design Team member to be answered; this is then forwarded to all the bidding contractors for clarity and fairness of the bid. The bid is then returned to the Project Manager in sealed letter at the specified time on the specified date.

TENDER ISSUE
CM compiles complete draft tender document (Bid form, proposed contract, drawings, spec, programme) and submits to Client for review

Client comments incorporated

CM (Mace)

CM re-issues revised documents to Client for review

REJECTED

CLIENT

Client reviews complete tender document

Client Review (5 working days)

REVISED

APPROVED / APPROVED WITH COMMENTS CM prepares tender invitation letters for issue. CM issues documents to Client approved Tender List

CM

CM undertakes midbid meetings, coordinate tender queries, re-pricing exercises, issue additional information (Client and Design Team invited)

10. Tender Evaluation and Award

Once the bids are all received they are opened by the Project Manager, Project Director and a nominated member of the Clients team in attendance. A commercial and technical analysis is then undertaken by CM based on the following indicators: Cost / Compliancy with the budget requirements Technical indicators consist of: Method Statement QA/QC Procedure HSE Procedure Programme requirements Relevant equipment availability Site layout Lifting plan and etc.

Any clarifications that are raised are passed to the bidders for clarification by the Project Manager. In addition, it is normal that a post bid interview is held with the respective bidders to discuss their Bids, their approach to the Works and also to address any further bid queries. It is normal that a member of the Clients team is in attendance at these meetings. Due to the fact that the bids may have been issued to bidders, after early evaluation in consultation with the Client, the in-depth analysis and interviewing may be undertaken with only the 2/3 lowest bids. This will be assessed on a bid-by bid basis in full consultation with the Client. After the analysis of the bid and post bid interviews a report will be prepared by CM in conjunction with the Design Team for submission to the Client. At this point the Client in conjunction with CM has the opportunity to finalize a commercial negotiation with the lowest bidder and confirm the final terms and conditions of the Trade Contract. The contract placement report will then be finalized and issued to the Client. CM will then prepare the Letter of Intent and the Contract for checking and issue by the Client. The Client should then sign and return the Contract Placement Report and Contract accordingly.

TENDER EVALUATION AND AWARD

CM and Client open submissions and records all tender results Tender Result Report signed by all parties present at opening meeting
YES

Tenders returned to CM

CM reviews tenderers postclarifications and selects shortlist for negotiations CM prepares Contract Placing Report (CPR), draft LOI and contract and submits to Client for review

CM (Mace) CM undertakes tender analysis

Tender Clarifications issued by CM

NO

All Querie s Closed

CM / Client negotiations with shortlisted tenderers

TENDERER

Tenderers review queries and submit responses to CM

Tenderers confirm final offer

CM (Mace) AND CLIENT

Client reviews CPR, LOI and draft contract

Contractor agreed by joint decision of Client and CM within 7 days of CPR submission

Client AWARDS Contract via LOI, compiles contract and issues

Start Up Meeting

Package

Package Description

PR Ref

PR Ref Description

Baseline / Target Budget USD Quantity Unit No mths Item Item mths mths Item months months Item Item mths Item mths mths Item Item Item Item Item Item Item Item mths mths mths m2 mths mths Item mths mths mths Unit Rate 5,000.0 6,000.0 90,000.0 20,000.0 4,500.0 5,500.0 30,000.0 40,000.0 2,500.0 350,000.0 4,000.0 3,000.0 27,000.0 11,000.0 20,000.0 1,500.0 6,000.0 1,500.0 25,000.0 5,000.0 6,000.0 1,000.0 8,000.0 8,750.0 8,000.0 5,000.0 1.0 3,500.000 11,000.0 100,000.0 5,000.0 1,000.0 3,000.0

Total Budget USD Total 5,000.0 138,000.0 90,000.0 20,000.0 103,500.0 126,500.0 483,000.0 30,000.0 30,000.0 800,000.0 50,000.0 350,000.0 16,000.0 1,216,000.0 69,000.0 69,000.0 27,000.0 253,000.0 460,000.0 34,500.0 24,000.0 3,000.0 25,000.0 10,000.0 6,000.0 4,000.0 8,000.0 131,250.0 280,000.0 75,000.0 45,000.0 45,000.0 80,500.0 80,500.0 253,000.0 253,000.0 100,000.0 100,000.0 115,000.0 23,000.0 69,000.0 207,000.0 6,307,750.0

Preliminaries
1200 Site Accommodation & Welfare 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 3 storey welfare block Staff to operate welfare facilities. (2 tea-lady assumed) Allow for temporary warehouse FF&E to offices Tea, coffee, water, supplies etc. Sundries
Subtotal

1 23 1 1 23 23 1
Subtotal

1210 1215

Temporary Plumbing Temporary Electrics

Water Tank, Sewage Tank and necessary connections Temporary Electics maintance staff Temporary Electrics sundries High Voltage Connection Small Generators
Subtotal

20 20 1 4 23 1 23 23 23 4 2 1 2 1 4 1 15 35 15 45,000
Subtotal

1420 1440

Security - Guarding Multi Service Gang

Allow security staff & related sundries (6 security is assumed - 4 for day , 2 for
Subtotal

1450 1500 1510 1520 1530

Final Cleaning Water Charges Electrical Charges Local Authority Charges Telephone Charges

Allow for site clearance, levelling and access roads Allow for sundry tools, materials, hand-tools Allow for Multi Service Gang Labour Allow to progressively clean the site and health & safety (3 people) Allow for turnstiles Allow for card reader Allow for fire extinguishers, FHRs, etc. Allow for air compressors Allow for wheel washing facility Allow for welding machine Allow for 10 electric saws, 10 drills Allow for rental of Bobcat Allow for 21 tonne track machine - 3 machines Allow for 6 tonne site dumber Final cleaning to project Allow for water charges
Subtotal

23 23
Subtotal

Allow for electricity charges Allowance for local authority fees

Subtotal

1 23 23 23
Subtotal

Allow for telephone charges Allow for staff telephone charges Allow for internet connection

SUBTOTAL OF PRELIMINARIES

Package

Package Description

PR Ref

PR Ref Description

Baseline / Target Budget USD Quantity Unit m3 No's ton m3 ton m2 m2 mt m3 ton m2 m2 mt m2 m3 ton m2 m2 mt m2 m3 ton m2 ton mt ton ton m2 m2 m2 m2 m2 m2 Unit Rate 2.00 3.00 4.00 1 2 2 2 2 1 1 1 1 1 1 110 1250 30 25 110 1400 30 110 30 1400 70 3000 3000 464 130.5 130.5 300 445 275.5

Total Budget USD Total 57,386.0 2,214.0 12,456.0 72,056.0 12,480.4 2,371.3 31,987.6 34,784.0 1,238.0 82,861.2 10,788.0 1,025.0 20,487.4 21,341.0 665.0 723.1 55,029.5 395,612.0 427,081.1 411,324.0 19,936.9 202,664.0 48,787.2 261,360.0 62,382.9 68,054.0 99,245.5 1,996,447.6 306,009.2 306,009.2 4,950,000.0 5,892,015.0 10,842,015.0 2,042,064.0 221,551.2 302,078.0 1,858,500.0 477,485.0 4,901,678.2 3,490,860.5 3,490,860.5

Construction Cost
2140 Earthworks and Jetgrouting 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Earthworks Jetgrouting Cement
Subtotal

28,693 738 3,114 12,480 1,186 15,994 17,392 619

Subtotal

2400

Substructure - Arena

Concrete Re-Bar Formwork Waterproofing Movement Joints Concrete Re-Bar Formwork Waterproofing Movement Joints Non-Structural Walls
Subtotal

2300

Substructure - Car Park

10,788 1,025 20,487 21,341 665 723 3,596 342 13,711 797 1,842 35 8,712 567 2,268 71
Subtotal

2400

Superstructure R/C Works

Superstructure Concrete - M.Concourse Slab & Ground Level Superstructure Re-Bar - M.Concourse Slab & Ground Level Superstructure Formwork - M.Concourse Slab & Ground Level Non-Structural Walls & Cores Concrete - Slabs at +35.012 , +39.727, +43.394 Mesh Steel of Superstructure Slabs Formwork of Superstructure Slabs Concrete of Staircases, Cores Formwork for Staircases, Cores Re-Bar for Staircases, Cores Precast Sitting Terraces
Subtotal

2450 2800

Precast Sitting Terraces Structural Steel Works

4,372 1,650 1,964

Subtotal

Structural Steel Works (with FR) (levels between +31.154-+40.450) Roof Structural System (over level +40.450) Faade Glazing - Single Glazed Aluminum Composite Panels BOH Cladding - Cladding of Facades along Service Road Ribbons Glazed Faade of Level +31.154 to +35.012 (Arena Main Concourse Level)
Subtotal

3200

Faade

4,401 1,698 2,315 6,195 1,073 12,671

3600

Roof Cladding

Roof Cladding System

Subtotal

4255

General Fit-Out

Lower Ground

34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

Bowl surface Staircases Car Park Plant Rooms Store Change Room Sauna Steam Room Gymnasts Lounge Interview Room Kitchen Plunge Pool Media Lounge Sponsor Room Training Hall Gymnasts Lounge Media Store VIP Foyer Balcony Cafeteria Coaches Change Room Coaches Office Cafeteria Kitchen Cafeteria Servery Concession Stand Concourse Lecture Theatre Lobby Restaurant Restaurant WC WC Concession Stand Concourse Dance Studio Lobby Restaurant Mezzanine Therapist Weights Room WC
Subtotal

2,404 760 9,236 4,173 518 390 24 18 297 189 491 24 297 154 1,641 139 141 283 85 244 24 34 27 38 228 2,034 87 68 349 62 764 70 1,858 312 120 361 92 97 460

m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 m2

5 6 80 90 100 90 100 90 100 90 100 90 100 90 100 80 75 65 20 20 20 20 20 20 20 20 20 20 20 20 20 30 30 30 30 30 30 30 30

12,020.0 4,560.0 738,880.0 375,570.0 51,800.0 35,100.0 2,400.0 1,620.0 29,700.0 17,010.0 49,100.0 2,160.0 29,700.0 13,860.0 164,100.0 11,120.0 10,575.0 18,395.0 1,700.0 4,880.0 480.0 680.0 540.0 760.0 4,560.0 40,680.0 1,740.0 1,360.0 6,980.0 1,240.0 15,280.0 2,100.0 55,740.0 9,360.0 3,600.0 10,830.0 2,760.0 2,910.0 13,800.0 1,749,650.0 19,600.0 247,400.0 326,160.0 433,314.0 172,640.0 323,750.0 206,340.0 152,040.0 180,650.0 2,061,894.0 5,000,000.0 5,000,000.0 30,558,501.1

Ground Level

Main Concourse Level 52 53 54 55 56 57 58 59 60 61 62 63 64 Upper Concourse Level 65 66 67 68 69 70 71 72 Box Level 8000 Landscape 73 74 75 76 77 78 79 80 81 82 83 84 85 86 Trees Vehicle Road, Parking Zones Stone Pavement - Pedestrian Ways - Travertine Podium Pavement - 30 mm Granite Water Cascade Red Carpet Entrance Seating under tress Grassing of raised terrace garden, stepped lawns Water Jets Glacial Boulders Ribbon Form Pergola Water Proofing of Podium Base Exterior Lighting
Subtotal

28 6,185 4,077 3,801 332 925 6,878 3,801 18,065 1.00

Subtotal

No m2 m2 m2 m2 m2 No m2 No No m2 m2 m2

700 40 80 114 520 350 2100 30 12000 3000 600 40 10 5,000,000.0

1981

Construction Contingency

Contingency

SUBTOTAL OF CONSTRUCTION

11. Conclusion
As we discussed in the above section, any business organization will have their product life cycles. The project management of the organization should always keep watching the new trends of people's taste or requirements, the available latest technology and competitor's new proposals so that necessary actions can be taken in advance to decrease the growth stage and increase the span of the maturity stage. The type of operational decisions and selection procedures all depends on the product of any organization plans to develop or introduce into the market.