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CONSTRUCTION PROJECT MANAGEMENT TECHNIQUES

SODE-NCP 26
A new international cricket facility is to be constructed outside a mega city ov
er a piece of land. Facility to include:i. ii. iii. iv. v. vi. Capacity of Spect
ators - 80,000 Day / Night play facility TV Camera platform in six directions. S
afety of Players from spectators Pavilion for VIP to sit 300 Parking facilities
(Adequate space for all above)
Time available is 16 months including monsoon. Cost of construction need to be r
ecovered in 5 years. Average cost of ticket is Rs. 100/-. Approximately 4 matche
s per year. Submit the project covering: i. ii. iii. iv. v. Identification of Pr
oject. Stages in development of project Work breakdown structure to undertake th
e project Milestone & CPM chart for corporate control Cost of Project.
SUHAIB JUWALE

PROJECT IDENTIFICATION Feasibility Studies 1. General - An International cricket


facility is to be constructed outside a mega city. (A - Class) that consists fo
llowing facilities: a. b. c. d. e. f. Capacity of Spectators - 80,000 Day / Nigh
t play facility TV Camera platform in six directions. Safety of Players from spe
ctators. Pavilion for VIP to sit 300 Parking facilities (Adequate)
Available time for completion of project is 16 Months. 2. Assigned classified Vo
lume:a. b. c. The construction cost to be recovered in 05 years. Average cost of
ticket is Rs. 100-00 Approximate 04 matches per year.
As per classified volume, return amount per year is 4 x 80,000 x 100 = 320.00 La
cs Total amount get back in 5 years = 5 x 320 = 1600.00 Lacs Project feasibiliti
es are subjected to following conditions. a. b. c. During all matches all ticket
s may be sold. The project gets the matches as per assigned schedule (04 matches
per year upto next 05 years)
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d. e. f.
Matches shall be played on holidays or on weekend days. Social Environment of ci
ty shall be good & healthy. International matches shall be played with host coun
try.
3.
Study: - General points, which may be studied at preliminary stage of feasibilit
y. a. b. Location Project is located outside a Mega city In any mega city of Ind
ia, enough skilled and productive manpower are available. c. d. e. Present cost
of resources is calculated. Transportation /Infrastructure facility is good all
around mega cities. Enough / sufficient raw materials is available at nearby are
a and adequate transportation facility are available for procurement of material
s at site. f. Market is available It have been seen that during cricket matches
with host country (India) the stadium is houseful. g. Adequate source of energy
are available for energy like petrol, diesel, gas, electricity etc. h. i. Adequa
te communication facilities are available. The political, social and environment
al impact on entire project or operational facilities.
If all of the above points comply with the site location, then it is suitable to
construct and operate the project, therefore Project is initially feasible.
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Techno Economic Feasibility Report (TEFR) Technical The most of technical points
have been already discussed in feasibility study. A technical report is given b
elow. a. b. Mega city (Consider Nagpur, Maharashtra) suitable place for project.
In city sufficient skilled & unskilled manpower are available at reasonable rat
e throughout the year. c. Sufficient raw materials like sand, aggregate, bricks,
cement, steel, stone etc are available. d. f. g. h. i. j. There is sufficient s
cope of marketing (spectators) Adequate transportation facilities are available.
Adequate source of energy are available like gas, diesel, petrol & electricity.
Adequate and convenient communication facilities are available. There is no hug
e scope of political interferences. Natural hindrances like rain, flood etc are
there but under control and in limited volume. k. Precautions may be taken for e
nvironmental impact like plantation of trees around Stadium, Rain harvesting for
ground and proper solid waste disposal system. l. Architectural / structural co
nsultant, civil engineers and other technical support systems are available up t
o international level. m. All type of services, materials and other facilities a
re available up to required mark / level. All above discussed factors prove that
the project is technically feasible.
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Economical In economical feasibility report we will finalize the cost of constru


ction by two methods, first is actual estimated cost incurred in project and sec
ond is cost may be limited to a specified amount as per assigned volume.
1.
Direct construction cost incurred in project
Cost is found on the basis of rate for current resources available at Project si
te, Market trends and with the consideration of facilities up to international l
evel. a. Viewing Stand and stadium along with sitting arrangement b. Day /Night
Play facilities i/c floodlights in 04 directions c. T.V. Camera Platform in six
directions d. Safety of Players (MS grill fencing) e. Pavilion for VIP to sit 30
0 (i/c all facilities) f. Parking (adequate space) - 970.00 Lacs - 190.00 Lacs 40.00 Lacs - 30.00 Lacs - 95.00 Lacs - 30.00 Lacs 5.00 Lacs
g. Ground development (Grass, Pitch etc.) h. Facilities (water, Sewerage etc.) i
. j. Development (Drainage, Plantation & Misc.) Consultancy for Drawings, Design
ing &Architect
- 40.00 Lacs - 25.00 Lacs - 25.00 Lacs TOTAL 1460.00 Lacs
Note - Cost of Construction based on rough estimate and conceptual ideas.
2.
Indirect construction Cost incurred in project
Under the indirect cost the overheads, contingency and other misc. cost comes li
ke salary, office maintenance, traveling, stationary, business promotion, statut
ory, legal
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etc. As considered the scope of work, period of construction, location of site a


nd current market trends the total cost comes to Rs. 80.00 Lacs. Hence total Con
struction cost = Direct Cost +Indirect Cost (1460+80) = Rs. 1540.00 Lacs
3.
Operational and Maintenance Cost
The O&M cost are estimated, based on current market trends. The minimum O&M cost
are given below for 05 years (Recovery period) Ist Year IInd Year IIIrd Year IV
th Year Vth Year Total 35.00 Lacs 37.00 Lacs 39.25 Lacs 41.75 Lacs 45.00 Lacs 19
8.00 Lacs
4.
Cost recovery Rs. 1540.00 Lacs Rs. 60.00 Lacs
Total construction cost is Interest on cost incurred during construction period
(Only for construction period) Net Amount to be recovered
Rs. 1600.00 Lacs
Amount Recovery schedule Year Amount received O&M through tickets cost Net Amt.
received for cost recovery 285.00 283.00 Amount Balance due for amount recovery
1600.00 1472.80 1315.00 1189.80 All amount in Lacs Interest Due for on bal. next
Amt. years 157.80 142.77 1472.80 1332.57
Ist IInd
320.00 320.00
35.00 37.00
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IIIrd IVth Vth


320.00 320.00 320.00
39.25 41.75 45.00
280.75 278.25 275.00
1332.57 1178.04 1007.76
1051.82 899.79 732.76
126.22 107.97 87.93
1178.04 1007.76 820.69
Note Total received amount are 1600.00 Lacs as equal to construction cost. As pe
r above mentioned chart the total construction cost is recovered in 05 years, bu
t if we recover the applicable interest rate, operation and maintenance cost for
the tenure of 5 years then it seems to be unfeasible. In consideration of all ab
ove facts, we can construct a viable and feasible project by another method, whi
ch is discussed as below.
Alternative method 1. Direct Construction Cost incurred a. Viewing Stand and sta
dium along with sitting arrangement b. Day /Night Play facilities i/c floodlight
s in 04 directions c. T.V. Camera Platform in six directions d. Safety for Playe
rs (MS grill fencing) e. Pavilion for VIP to sit 300 (i/c all facilities) f. Par
king (adequate space) - 500.00 Lacs - 80.00 Lacs - 40.00 Lacs - 25.00 Lacs - 125
.00 Lacs - 35.00 Lacs - 15.00 Lacs - 25.00 Lacs - 20.00 Lacs - 20.00 Lacs TOTAL
885.00 Lacs
g. Ground development (Grass, Pitch etc.) h. Facilities (water, Sewerage etc) i.
j. Development (Drainage, Plantation & Misc.) Consultancy for Drawings, Designi
ng &Architect
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2.
Indirect Construction Cost incurred
Under the indirect cost the overheads, contingency and other misc. cost like sta
ff salary, office maintenance, traveling, stationary, business promotion, statut
ory, legal etc. As considered the scope of work, period of construction, locatio
n of site and current market trends the total cost in earlier discussed method i
s Rs. 80.00 Lacs. But the same can be reduced to 75.00 Lacs Hence total Construc
tion cost = Lacs 3. Operational and Maintenance Cost Direct Cost + Indirect Cost
(885+75) = Rs. 960.00
The O&M cost are estimated, based on current market trends . The minimum O&M cos
t given below are for 05 years (Recovery period) Ist Year IInd Year IIIst Year I
Vth Year Vth Year Total 35.00 Lacs 37.00 Lacs 39.25 Lacs 41.75 Lacs 45.00 Lacs 1
98.00 Lacs
4.
Cost recovery Rs. 960.00 Lacs Rs. 50.00 Lacs
Total construction cost is Interest on cost incurred during construction period
(Only for construction period) Net Amount to be recovered
Rs. 1010.00 Lacs
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Amount Recovery schedule for alternative method All amount in Lacs Year Amount r
eceived O&M Net Amt. Amount Interest Balance Due for through tickets cost receiv
ed for due for on bal. amount next cost recovery Amt. years recovery st I 320.00
35.00 285.00 1010.00 121.20 1131.20 846.20 nd II 320.00 37.00 283.00 846.20 101
.54 947.74 664.74 IIIrd 320.00 39.25 280.75 664.74 74.77 739.51 458.76 th IV 320
.00 41.75 278.25 458.76 55.05 513.81 235.56 th V 320.00 45.00 275.00 235.56 28.2
7 263.83 -11.17
Therefore the Project is fully feasible and viable. The sport facility will reco
ver the total construction cost along with intrest, operation & maintenance expe
nditure in a recovery period of 05 years. Project Definition Primary dealing wit
h resources like time, money, equipment, technology, space, material and people,
organization of these resources and planning & performing of these activities i
n logical sequences to complete the project. The project can be defined as organ
ization and performance of resources such as men, money, machinery, materials, s
pace and technology in logical sequence of activity. The above definition are ap
plicable for a general project but this project also consist to perform all acti
vity in logical sequence and strictly within specified time, operate and maintai
n the project for next few years to get back the construction cost along with in
terest and other expenditures. Project Report Construction of international cric
ket facility at out side to Nagpur city, which consist all facilities up to inte
rnational level. The total construction cost is Rs. 960 lakh and
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same is recoverable in next 05 year along with all other expenses, interest, ope
ration and maintenance expenditures etc. through average cost of ticket i.e Rs.
100.00, capacity of Spectators are 80,000 and 4 matches per year for next 05 yea
rs. The feasibility report is based on assigned volume and as per current trends
of market, viewers choice, present interest structure etc. A time factor of cons
truction period is an important point and it is highly sensitive. If constructio
n is delayed the projects will definitely goes in loss and getting matches may b
e affected. The project is feasible / viable subjected to construction within ti
me and cost, operation and maintenance up to international level and with specif
ied limit of money.
PROJECT DEVELOPMENT PROCESS Project Management Organization From conceptualizati
on to implementation the stages in the development of project. An idea of this p
roject passes through six phases before it becomes a reality. a. Conceptualizati
on like conceptual analysis is assigned, technical and feasibility study have al
ready been done and we have already
discussed on environmental and social impact. b. Engineering and designing facto
r have been considered along with construction process and cost. c. Procurement
subcontractors process Procurement or arrangement of contractor,
suppliers, several parties for different type of specialized
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work, which depends on the agency. d. Construction. e. Commission & Testing of f


acilities. f.
designed
approach
of
constructing
Operation and maintenance of facility.
The manager of organization must develop a logical approach to the planning of a
project, which involve following thought.
Feel for project
Assessing key projec
t dates and data. Establishment of construction schedules. Choose & deciding of
programme techniques to use. The project shall be managed under following object
ives. (1) (2) (3) (4) Reducing the project in parts to a number of manageable ac
tivities. Anticipation & scheduling of resources. Co-ordination and control Prod
uction of data for planning.
Project Planning and Control For the project / construction of cricket facilitie
s, the planning is divided in two parts. Pre construction planning and planning
during construction. Before the start of work a Detailed Project Planning Report
shall be prepared which consist planning of activity, all expenditure, staffing
, machineries and materials required, planning for procurement & consumption of
materials, cash flow, fund availability work-study and master programme etc.
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A realistic and data based master programme for project is prepared. Hence the i
nformation to be used as a basis of calculative hours of works, this is obtained
from ground reality, many item / activity calculated together as per type of wo
rk and project condition. Control must be carried out to make planning effective
, as without control planning loses much of its value. It must be applied to upd
ate the plans and to enable reconsideration of the workload in the light of what
has already taken place. Control involves Comparing at regular intervals, the a
ctual achievement with the plans and then any necessary corrective action to bri
ng back on schedule. It must represent time and quantity of work carried out for
better control. Progress can be recorded, cross checked at regular intervals an
d further course of action required is to be taken. For this project a longitudi
nal section of work shall be prepared with colorful diagram showing work in prog
ress, achieved, back lock or critical line. A good and unique controlling system
always provides a leadership for executing the work within specified time and c
ost. There are functions performed in the process of updating the schedule alone
(without regard to cost revision) they are a. Denoting actual progress on the n
etwork. b. Revising the network logic or time estimated of uncompleted activitie
s, if appropriate. c. Re comparing the basic schedule with earliest and latest a
llowable time. d. Revising the schedule activity start time denoting new critica
l paths.
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PROJECT WORK BREAKDOWN Work Breakdown methodology Arrows of the network are join
ed in accordance with the independency of the activities which they represent. I
n small and simple work this interrelation is obvious, but in a long/big magnitu
de project it is necessary to establish it systematically. This is done by work
break down structure. As we know the activity of a project bears a certain relat
ionship with one another. Basically we have two types of relation 1. Proceeding
& following activities. 2. Few activities can be carried out concurrently. In de
ciding the interrelationship between two activities, following consideration is
required. A. Technical restraints B. Resource restraint After listing the operat
ion of work and considering all technical restraints and resource restraints a l
ogical table is prepared as called classification of levels. For better controll
ing ideal planning of work, deployment of manpower and supervision the entire wo
rk may be distributed / divided in various manageable parts and each part is mon
itored and managed for getting better out put. As mention in methodology the ent
ire work is divided in 10 parts for ideal planning, better controlling, deployme
nt of manpower and supervisory staff.
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1. Viewing Stand 2. Viewing Stand 3. Viewing Stand


-I - II - III
4. Day /Night Play facilities 5. T.V. Camera Platform in six directions. 6. Safe
ty for Players (MS grill fencing) 7. Pavilion for VIP to sit 300 (i/c all facili
ties) 8. Parking (adequate space) 9. Play Ground development 10. Development wor
k (water, Sewerage, Tree, Drain etc)
Work is divided in various parts because same manpower & equipment will be utili
zed in other activities and will move from one part to another part.
Assessing Duration The duration of activities shown with chart. The CPM with dur
ation shown is not realistic & the network gives a wrong impression, example the
excavation takes time 25 days for entire project but during the period of 25 da
ys (like after 04 days we can start foundation concrete, reinforcement and shutt
ering work), therefore the entire project is divided in ten manageable parts for
precedence diagram and duration of activities for each parts assessed separatel
y as below.
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1 Activities duration for Viewing stand and stadium (Part I, II & III) Sr No. 1.
2. 3. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Description of activiti
es Site Clearance Lay out Excavation Foundation RCC Back filling Masonry in Foun
dn. Plinth Beam RCC Stand RCC Shuttering of Roof Steel of Roof Concrete of Roof
Masonry in super structure Electric wiring & water line Plaster (Internal & Exte
rnal) Door & Window fixing Flooring & Roof treatment Drainage work Toilets fitti
ng & fixtures Water & electrifications Painting Sitting arrangement Final testin
g Duration In week 01 01 02 02 01 01 03 14 02 01 01 04 02 04 02 04 02 01 01 03 0
2 01 Activity Denotation For - I For -II A-1 B-1 A-2 B-2 A-3 B-3 A- 4 B-4 A-5 B5 A-6 B-6 A-7 B-7 A-8 B-8 A-9 B-9 A-10 B-10 A-11 B-11 A-12 B-12 A-13 B-13 A-14 B
-14 A-15 B-15 A-16 B-16 A-17 B-17 A-18 B-18 A-19 B-19 A-20 B-20 A-21 B-21 A-22 B
-22
For-III C-1 C-2 C-3 C-4 C-5 C-6 C-7 C-8 C-9 C-10 C-11 C-12 C-13 C-14 C-15 C-16 C
-17 C-18 C-19 C-20 C-21 C-22
2-Activities duration for Camera Platform Sr No 1. 2. 3. 4 5 6 7 8 9 Description
of activities Foundation with viewing stand Column, beam RCC in superstructure
Shuttering of platform Steel of Platform Concert of platform Platform fabricatio
n & railing Platform erection. Finishing / Painting Final testing Duration In we
ek 00 10 02 01 01 02 02 04 02 Activity Denotation D-1 D-2 D-3 D-4 D-5 D-6 D-7 D8 D-9
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3-Activities duration for Pavilion of VIP to sit 300 Sr No 1. 2. 3. 4 5 6 7 8 9


10 11 12 13 14 15 16 17 Description of activities Site Clearance & Lay out Earth
work Foundation Concrete, steel, shuttering Back filling Plinth beam Columns Sl
ab - Concrete, steel, shuttering Column & Tie Beam Roof - Concrete, steel, shutt
ering Masonry work Finishing (plaster / painting) Glasses fixing Final painting
Sitting arrangements Services Facilities Final testing Duration In week 01 02 02
01 04 03 04 04 03 03 05 01 03 02 03 02 01 Activity Denotation E-1 E-2 E-3 E-4 E
-5 E-6 E-7 E-8 E-9 E-10 E-11 E-12 E-13 E-14 E-15 E-16 E-17
4-Activities duration for Day & Night Play facilities Sr No 1. 2. 3. 4 5 6 7 Des
cription of activities Site Lay out & Excavation Foundation work Fabrication & E
recting of pillars Cabling, Trenching & Transformer Fittings & fixtures Final Co
mmissioning of lights Final testing Duration In weak 02 04 25 05 01 02 02 Activi
ty Denotation F-1 F-2 F-3 F-4 F-5 F-6 F-7
5 - Activities duration for Development work Sr No 1. 2. 3. 4 5 6 Description of
activities Site Clearance Excavation for drain / sewer line etc Drain Construct
ion Water & sewer Line Toilets Fittings & Fixtures Tree plantation Misc. work Du
ration In weak 01 03 06 02 01 01 Activity Denotation G-1 G-2 G-3 G-4 G-5 G-6
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6 - Activities duration for players safety work Sr No Description of activities D


uration In week 04 06 03 04 01 Activity Denotation H-1 H-2 H-3 H-4 H-5
1. 2. 3. 4 5
Grill Fabrication Grill fixing / railing with barbet wire Grill painting Barbet
wire fixing Final checking
7-Activities duration for playground work Sr No 1. 2. 3. 4 5 6 7 8 Description o
f activities Site Clearance Leveling & Excavation / earth work Ground preparatio
n (watering/ flooding) Ground preparation (manure / sand/ good earth Turf laying
with grass Grass development Cutting & watering / deweeding Final checking Dura
tion In weak 01 06 02 04 06 02 04 01 Activity Denotation I-1 I-2 I-3 I-4 I-5 I-6
I-7 I-8
8- Activities duration for parking facilities Sr No Description of activities Du
ration In week 01 01 03 01 Activity Denotation J-1 J-2 J-3 J-4
1. 2. 3. 4
Leveling & Excavation / earth work Sub base preparation Concrete paving & finish
ing Parking arrangement
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Costing Activity Cost breakup is given below w.r.t. activities and for each part
s of cricket facilities. A. Costing of Viewing Stand activities Sr No 1. 2. 3. 4
5 6 7 8 9 10 11 12 13 14 15 16 Description of activities Earth work / excavatio
n Foundation RCC / Reinforcement / Shuttering Back filling Masonry in Foundn. Pl
inth Beam RCC/ Reinforcement / Shuttering Stand RCC Masonry in super structure E
lectric wiring & water line Plaster (Internal & External) Door & Window fixing F
looring & Roof treatment Drainage work Toilets fitting & fixtures Water & electr
ifications Painting Sitting arrangement Cost in lacs 04.00 10.00 0.80 1.20 09.00
330.00 10.00 06.00 12.50 05.00 72.00 0.60 1.40 25.00 08.00 1.50 Total 500.00 La
cs
2-Costing of Day & Night Play facilities activities Sr No 1. 2. 3. 4 5 6 7 Descr
iption of activities Excavation Foundation work RCC / Reinforcement / Shuttering
Fabrication & Erecting of pillars Procurement & Transformer Installation. Cable
trenching & laying Fixing of flood lights Final testing Cost in lacs 0.10 0.60
26.70 1.20 1.00 160.00 0.40 Total 190.00 3- Costing of Camera Platform Sr No 1.
2. 3. 4 Description of activities Foundation with viewing stand Superstructure R
CC Platform fabrication, railing Platform erection. Finishing / Painting Cost in
Lacs 00.00 32.00 6.50 1.50 Total 40.00 Lacs
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4- Costing of Players safety activities Sr No 1. 2. Description of activities Gri


ll foundation on wall of drain Grill Cost in Lacs 08.00 22.00 Total 30.00 Lacs 5
-Costing of Pavilion to sit 300 Sr No 1. 2. 3. 4 5 6 7 8 9 Description of activi
ties Excavation Foundation work RCC / Reinforcement / Shuttering Structure RCC c
omplete Masonry / wall Finishing work Glasses Sitting arrangement Facilities Ser
vices Cost in lacs 0.40 3.00 48.00 6.00 5.00 9.00 2.80 18.00 2.80 Total 95.00Lac
s
6- Costing of Parking facilities Sr No 1. 2. 3. 4 Description of activities Eart
hwork Concrete Pavement Parking arrangements Services Cost in Lacs 0.80 26.00 3.
00 0.20 Total 30.00 Lacs 7- Costing of Play groundwork Sr No 1. 2. 3. Descriptio
n of activities Earthwork Ground preparation / manure/ sand / good earth Turfing
and other work Cost in Lacs 1.00 2.50 1.50 Total 5.00 Lacs
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Other Activities like Facility of water, toilet, fittings, and fixtures consist
amount of Rs. 40.00 lacs, drain construction, Trees plantation 25.00 lacs.
CPM/NETWORK ANALYSIS Network Elements Network is defined as the pictorial repres
entation of a given project in the form of arrows / boxes, which form essential
elements of network. Arrows / boxes represent an activity, task of operation of
work since an activity consumes resources (Materials, labour, tools & equipment
and also time). The activities are represented by boxes and are linked together
by lines of dependency. The general direction of time flow is form left to right
hand. A box contain the earliest starting time, latest starting time, earliest
finish time, latest finish time, duration and free float period. When the start
of an activity has more than one line of dependency it is dependent on all the a
ctivity to which it is connected and therefore all the preceding activity must b
e completed before it can start. Analysis procedure a. The diagram can start and
end with a single activity, a dummy is to be introduced at the beginning and at
the end. b. The earliest start time of an activity is the highest earliest fini
sh of preceding activity. The earliest finish time is earliest start (+) duratio
n. c. Calculate the latest activity time. d. The overlapping activity analyzed t
hrough early finish and or the overlapping for which the entire work is divided
in various parts.
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Time analysis is precedence network is done on the same lines as CPM. After the
duration of activities is determined, the ES etc are calculated. RECOMMENDATION
/ CONCLUSION This project is technically fully feasible but commercially / econo
mically, herewith find out two methods through first project get back only const
ruction cost but interest and operational expenses have not recovered through ti
ckets cost. If we apply below standard construction cost without fire fighting c
ost and some reduction in adequate facilities then construction cost reduces by
39.38% then the total cost along with interest, operational and maintenance cost
recoverable under recovery period.
The problem of resources viz- a viz network planning and scheduling considering
in following three stages. 1. Resource estimation or aggregation. 2. Resource sm
oothening or leveling. 3. Specifying resources constraints. In the network there
is scope available for change, cover-up the delay in any activity due to reason
s beyond control. The network duration shown in weak (not days) so that sufficie
nt margin is available at every stage for cope up work. Time cost trade off reso
urces allocation, cost per activity not given exactly in the report because enti
re report based on rough estimation, if these all find out, the network make a p
owerful & flexible tools for decision and controlling. The network prepared with
consideration of Technical and Resources restraints also.
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After all, this precedence network is a very useful tool in the hand because it
is very well suitable for taking care of peculiar relationship within the constr
uction project or this type of project.
Bibliography
NICMAR publication lesson book on Construction Quality Management Butterworth-He
inemann publication, The Management of Construction by Lawrence Bennett
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