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CONSTRUCTION PROJECT

MANAGEMENT TECHNIQUES
COURSE NO- NCP 26/ GPcPM-14
ASSIGNMENT 4

SUBMITTTED BY: GURMEET SINGH


REG. NO. : 214-11-14-12363-2151
COURSE: GPcPM

National Institute of Construction Management and Research


School Of Distance Education, Pune

ASSIGNMENT
A new international cricket facility is to be constructed outside a mega city over a piece of
land. Facility to include:
i)
ii)
iii)
iv)
v)
vi)

Capacity of spectators : 80,000


Day/ Night play facility
TV camera platform in six directions
Safety of players from spectators
Pavilion for VIPs to sit 300
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 Rs. 100/-. Approximate 4 matches per year. Submit the
project report covering:
i)
ii)
iii)
iv)
v)

Identification of project
Stages in development of project
Work breakdown structure to undertake the project
Milestones & CPM chart for corporate control
Cost of project

Assume necessary data.

1.

PROJECT IDENTIFICATION:
The definition of project is a temporary endeavor to create a unique product, service or
result with a definite beginning and end.
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The construction of international cricket facility is a temporary endeavor with a unique


facility and with time line for construction, we can consider this as a project.
There are various phases during the project life cycle:
A. Conceptual analysis
B. Technical and feasibility studies
C.
D.
E.
F.

Environmental Impact reports


Planning
Design
Execution
G. Start Up

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

FEASIBILITY STUDY:
Cricket is the most popular game in India, inspite of hockey been our national game. There
is immense popularity and interest for the game with in various sections of age and sex.
The cricketing body is trying to bring up various changes in the playing pattern to ensure as
well as increase the interest in the game. In addition to this they are trying to market the
game in various other countries were this sport is not played. The revenue from the game is
increasing day by day with various forms of cricket been played in addition to the
advertisements. With the introduction of shorter games viz 20T or 20- 20 over matches
excitement and interest on the game has increased considerably. The success of Indian
Premier League & Indian cricket League has further helped in commercialization of the
game.
The requirement on construction of new state of art cricket stadium was studied. There is
no cricket stadium available in this mega city with the facilities outlined because of which
the city was not considered for holding international matches. A huge piece of land was

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available at the outskirts of the city to construct this stadium. Following areas were
considered for the feasibility of this stadium:
1) Land:
A huge piece of land is required to construct a state of art facility cricket stadium. The
required area of land was not available within the limits of the city, the also the cost of
land is exorbitant which was would escalate the construction cost and in turn the ticket
cost. The land currently available is sufficient enough to create stadium with facilities
meeting the international standards. The cost of the land as compared is less since been
constructed outside the city which will help in reducing the capital costs.
2) Accessibility:
The construction cost for the stadium will reduce because of the proximity to the city.
This will ensure all the required resources, machinery etc will be readily available and
god bargain cost. The location of the stadium will ensure patrons, viewers are available
to watch the matched because of the availability of the public transport, vehicles etc.
This been mega city there is possibility of the stadium getting international matches
which means the international visitors to the city as well as stadium. This will help in
getting good foreign exchange and advertisement revenue.
3) Utility services:
The services such as water and power will be readily available as the stadium is
constructed outside the city limits. This will ensure day/ night facilities available
without adding additional expense of generating power.
4) Revenue Generation
The proximity to city will ensure revenue thru sales of ticket, advertisement boards,
providing stadium of bigger meetings etc.

TECHNO-ECONOMIC FEASIBILITY REPORT (TEFR):


The proposal to construct the stadium was reviewed from the point of commercial and
environmental. The land outside city is a barren and away from sea or creek. This
means while constructing the stadium the damage to environment by cutting
mangroves, destroying agriculture etc is not there. However there are trees which
would require cutting in order to start with the construction. The earth material and
construction debris shall be disposed as per the area municipal requirements. The

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stadium is required to plan minimum equal number of trees or more to ensure the
damage by cutting the trees is reduced.
Commercially the stadium stand with an advantage starting with the land costs, in
addition to this the location of the stadium outside the city limits will help in reducing
the construction cost. The resources will be readily available which will ensure the
project will be completed within the time frame. The revenue collection from sale of
tickets and marketing rights will help in recovering the cost over a period of time.

2.

THE PROJECT DEVELOPMENT PROCESS:


The project goes thru various phases from inception to completion, the five main
process includes:

Initiation
Planning
Execution
Monitoring and Controlling
Closing

The following diagram shows how the project management process group fits together.

The construction of the stadium will generally fall under the following phases:

Conceptualization
Engineering and design
Procurement
Construction
Commissioning
Hand over
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2.1. PROJECT MANAGEMENT ORGANIZATION


The project management is the application of knowledge, skills, tools and techniques to
meet the project requirements. The projects do not operate in vacuum, they are impacted
by the cultural norms, management policies, procedures and organizational structure.
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.
The organization structure will guide who the project manager shall approach for resources,
how the communications will be done and other aspects of project management. A project
manager shall be appointed once the project is awarded. The authority of the project
manager shall be determined during establishing the project management organization. The
success of the project depends on the authority provided to the project manager. He will
then be responsible to go thru the scope of work, identify anomalies if any, set the project
charter and identify the team. 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.
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 tradeoffs or creating new alternatives. Subsequently, the functions of project
management for construction generally include the following:
1. Specification of project objectives and plans including delineation of scope, budgeting,
scheduling, setting performance requirements, and selecting project participants.
2. Maximization of efficient resource utilization through procurement of labour, materials
and equipment according to the prescribed schedule and plan.
3. Implementation of various operations through proper coordination and control of
planning, design, estimating, contracting and construction in the entire process.
4. Development of effective communications and mechanisms for resolving conflicts
among the various participants.
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The Project Management Institute focuses on nine distinct areas requiring project manager
knowledge and attention:
1. Project integration management to ensure that the various project elements are
effectively coordinated.
2. Project scope management to ensure that all the work required (and only the required
work) is included.
3. Project time management to provide an effective project schedule.
4. Project cost management to identify needed resources and maintain budget control.
5. Project quality management to ensure functional requirements are met.
6. Project human resource management to development and effectively employ project
personnel.
7. Project communications management to ensure effective internal and external
communications.
8. Project risk management to analyze and mitigate potential risks.
9. Project procurement management to obtain necessary resources from external sources.
2.2.

PROJECT PLANNING AND CONTROL:


Planning is important process and all projects shall be planned. The planning of the
project starts with collecting the requirements of the project, scope. Once the scope is
confirmed the activities are broken down to work break down structure. Once the
activities are defined sequence and duration for activities are determined. The main
objectives of planning are listed below:

Analysis
Anticipation
Scheduling resources
Co-ordination and control
Production of data

A preliminary schedule for the project is prepared and discussed with all stake holders, a
formal agreement is taken on the schedule. This agreement helps in getting commitment
with the personnel performing the work. The planning is an iterative process and will
change during the life cycle of the project due to various reasons such as change in scope,
change in sequence etc. Every time the plan is changed a meeting is to be carried out with
all the stake holders for their information and formal agreement. .
The monitoring and control process are means of measuring the performance of the project
to the project management plan. The process helps in identifying the deficiencies,
providing recommendations and preventive actions to bring the project back to the plan.
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This involves measuring the project against the baseline, determine the variances exercise
judgment to determine recommendations or corrective actions.
A good project manager recognizes from the outset that a project plan along with adequate
controls 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 proceed.
3.0 PROJECT WORK BREAKDOWN:
A project work breakdown structure (WBS) is a deliverable or product oriented grouping
of project work elements to organize the total work scope of a project. In short WBS will
provide the full scope of the work, any work not include in WBS means it is not included
in the scope. Any request to carry out such work shall call for a change order. The WBS
facilitates the planning and control of cost, scope, schedule and technical quality of the
project outcome.
3.1 CLASSIFICATION OF LEVELS:
The project scope is broken down to a higher level to further lower levels such as
work package level where managing the work becomes easier. A work package is the
last logical level of WBS. The first level is broken down prior to start of the project.
The level is broken down by the team until:
It can be realistically and confidently estimated
It can be completed quickly
It can be completed with out interruption.
3.2 WORK BREAKDOWN METHODOLOGY:
As such there is no standard determined way for breaking down the scope, however
if a set rules are followed even though the WBS created by different team will not
look same however the basis will be same.
Decomposition of the total project work in to work packages generally involves
following activities:

The WBS shall be created by a team


The entire project is included in the first level
Identify and analyze the deliverable related to work
Structuring and organizing the WBS
Decomposing these upper levels in to lower level detailed components.
Developing and assigning identification codes to the WBS components
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Verifying the degree of decomposition of the work is necessary and


sufficient

3.3 ASSESSING DURATION:


Once the scope is broken down to work package level, it becomes easy to estimate
the resource and duration of the activity. During this process the amount of work
effort required to complete the activity is estimated and the amount of resources to
be applied to complete the activity is estimated. The past historical data and
assumptions support the estimation of the activity duration.

3.4 COSTING ACTIVITY:


Cost estimating is one of the most important steps in project management. A cost
estimate establishes the base line of the project cost at different stages of
development of the project. A cost estimate at a given stage of project development
represents a prediction provided by the cost engineer or estimator on the basis of
available data. According to the American Association of Cost Engineers, cost
engineering is defined as that area of engineering practice where engineering
judgment and experience are utilized in the application of scientific principles and
techniques to the problem of cost estimation, cost control and profitability. The
costs of a constructed facility to the owner include both the initial capital cost and
the subsequent operation and maintenance costs. Each of these major cost
categories consists of a number of cost components.
The capital cost for a construction project includes the expenses related to the
initial establishment of the facility:

Land acquisition, including assembly, holding and improvement


Planning and feasibility studies
Architectural and engineering design
Construction, including materials, equipment and labor
Field supervision of construction
Construction financing
Insurance and taxes during construction
Owner's general office overhead
Equipment and furnishings not included in construction
Inspection and testing

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4.0 THE CRITICAL PATH METHOD


The critical path method is one of the common scheduling technique used in todays
project environment. This CPM is the longest path through a network diagram and
determines the shortest time it would take to complete the project.
The critical path itself represents the set or sequence of predecessor/successor activities
which will take the longest time to complete. The duration of the critical path is the sum
of the activities' durations along the path. Any delays along the critical path would
imply that additional time would be required to complete the project.
There may be more than one critical path among all the project activities, so completion
of the entire project could be delayed by delaying activities along any one of the critical
paths. For example, a project consisting of two activities performed in parallel that each
requires three days would have each activity critical for a completion in three days.
Formally, critical path scheduling assumes that a project has been divided into activities
of fixed duration and well defined predecessor relationships. A predecessor relationship
implies that one activity must come before another in the schedule. No resource
constraints other than those implied by precedence relationships are recognized in the
simplest form of critical path scheduling.
To use critical path scheduling in practice, construction planners often represent a
resource constraint by a precedence relation. A constraint is simply a restriction on the
options available to a manager, and a resource constraint is a constraint deriving from
the limited availability of some resource of equipment, material, space or labor. For
example, one of two activities requiring the same piece of equipment might be
arbitrarily assumed to precede the other activity. This artificial precedence constraint
insures that the two activities requiring the same resource will not be scheduled at the
same time. Also, most critical path scheduling algorithms impose restrictions on the
generality of the activity relationships or network geometries which are used. In essence,
these restrictions imply that the construction plan can be represented by a network plan
in which activities appear as nodes in a network, as in Figure 9-6. Nodes are numbered,
and no two nodes can have the same number or designation. Two nodes are introduced
to represent the start and completion of the project itself.
The actual computer representation of the project schedule generally consists of a list of
activities along with their associated durations, required resources and predecessor
activities. Graphical network representations rather than a list are helpful for
visualization of the plan and to insure that mathematical requirements are met. The
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actual input of the data to a computer program may be accomplished by filling in blanks
on a screen menu, reading an existing data file, or typing data directly to the program
with identifiers for the type of information being provided.
With an activity-on-branch network, dummy activities may be introduced for the
purposes of providing unique activity designations and maintaining the correct
sequence of activities. A dummy activity is assumed to have no time duration and can
be graphically represented by a dashed line in a network. Several cases in which
dummy activities are useful are illustrated in Fig. 10-1. In Fig. 10-1(a), the elimination
of activity C would mean that both activities B and D would be identified as being
between nodes 1 and 3. However, if a dummy activity X is introduced, as shown in part
(b) of the figure, the unique designations for activity B (node 1 to 2) and D (node 1 to
3) will be preserved. Furthermore, if the problem in part (a) is changed so that activity
E cannot start until both C and D are completed but that F can start after D alone is
completed, the order in the new sequence can be indicated by the addition of a dummy
activity Y, as shown in part (c). In general, dummy activities may be necessary to meet
the requirements of specific computer scheduling algorithms, but it is important to limit
the number of such dummy link insertions to the extent possible.

Figure : Critical Path Method

IMPROTANT NETWORK TERMS IN CPM:


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a) CRITICAL ACTIVITY:
The activities having same Early start time and late start time as well as early finish
time and later finish. This means any delay in these activities will lead to delay in the
project.
b) NEAR CRITICAL PATH:
The path in close duration to the critical path
c) TOTAL FLOAT:
Total float is the amount of time activity can be delayed without delaying the end date of
project.
d) FREE FLOAT:
This is the amount of time an activity can be delayed without delaying the early start
date of its successor.
e) PROJECT FLOAT:
The amount of time the project can be delayed without delaying he externally imposed
completion date.

5. THE PROJECT COST:


5.1 CALCULATION OF AVERAGE EARNINGS:

Sl. No

Capacity
of
spectators

Average
Cost of
Tickets
In `

No. Of
Matches
Per Year

Average No.
Of
Spectators
Per Match

Earnings
from the
Match
Tickets In `

Per Year
Earnings
from match

Earnings from
the Match
Tickets in 5
Years

80000.00

100.00

4.00

60000.00

6000000.00

24000000.00

120000000.00

Table 1: Calculation of Average Earnings.

5.2 CALCULATION OF CONSTRUCTION COST:


Sl.No

Total Area Of
Development in Sqm

Average Construction
Cost Per Sqm in
`.

Total Construction
Cost
`.

20000.00

6000.00

120000000.00

Table 2: Calculation of Construction Cost.

This cost will be covered in 5 years exactly.

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(Note: Other income from the broadcasting rights to the TV channels, hoarding advertising, fees
from sponsors etc.will is different than this ticket income.)

6.

RECCOMENDATIONS/ CONCLUSION:
Based on the feasibility study and break even study, it is recommended to construct the
stadium. Below additional recommendations shall be considered:

7.

Plantation of trees near the vicinity to save the environment


Source environment friendly material such as solar power street lights.
The construction debris shall be dumped in prescribed locations.

BILIOGRAPHY / READINGS:
1. Construction Project Management Techniques, Published by NICMAR.
2. Project management Institute manual
3.

PMP Book by Rita Mulcahy

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