NICMAR

NATIONAL INSTITUTE OF CONSTRUCTION. . MANAGEMENT AND RESEARCH

Course Title - Construction Project Management Techniques

Course code - NCP 26

Submitted to - SODE office

Submitted By - Amit Bhatia

Reg. No. - 213-07-11-11676-2151

Course - Post Graduate Programme in Construction . Management

Acknowledgement

I would like to thank NICMAR / CODE OFFICE who gave me this kind of

assignment. While I was working on this project, I read some relevant books

and literature. I also did research on organization structure of some

construction companies.

I would like to thank CODE OFFICE for explaining the assignment

thoroughly and supporting me in preparing this project.

Amit Bhatia

Statement:-

A new international cricket facility is to be constructed outside a mega city

over a piece of land. Facility to include:

1) Capacity of spectators: 80,000

2) Day/ night play facility

3) TV camera platform in six directions

4) Safety of players from spectators

5) Pavilion for VIPs to sit 300

6) Parking (adequate space for all above)

Time available is 16 months including monsoon. Cost of construction need

to be recovered in 5 years. Average cost of ticket is Rs.100/-. Approximate

4 matches per year. Submit the project report covering:

Identification of Project.

Stages in development of project.

Milestones & CPM chart for corporate control

Cost of project

Assume necessary data.

1) Project Identification And Feasibility

A project is a temporary endeavor with a defined beginning and end

(usually time-constrained, and often constrained by funds and

deliverables), under taken to meet unique goals and objectives, typically

to bring about beneficial change or added value. It is achieved within the

specified scope, quality, time and costs. Project can also be defined as

organization and performance of resources such as men, money,

machinery, materials, space and technology into logical sequence of

activities.

Most projects start with a need to have a new facility long before

designers start designs and drawing of the projects and certainly before

field construction work can commence. Elements of this phase include:

Conceptual analysis

Technical and feasibility studies and

Environmental impact reports.

Here, our project is to build a cricket stadium outside a mega city over a

piece of land in 16 months.

In India cricket is not just a game, but it is followed like a religion.

Though its not our National Sport, the craze for cricket is always at the

peak. It is watched aggressively not only by old aged or middle aged

people but youngsters and teenagers, boys and girls-everybody is taking

keen interest to watch cricket either to watch on TV screen or at cricket

stadium.

The trend of cricket is changing nowadays. People go crazy to watch a

fast and furious 20 20’s rather than a boring 5 days test match. The

launch of 20 20’s increased the heat of cricket lovers. In only few overs

batsmen hit lot of runs. Showering fours and sixes tense the bowlers’

nerves but beat the heart throbs of the cricket lover spectators.

Commercialization of the game is also eye catching. . Indian Cricket

League (ICL) and Indian Premiere League (IPL) are new tournaments

which are becoming more and more popular. It comes with the concept

of more money and more fun.

Meanwhile technology was improving and become part of the game.

Before there was only TV and newspapers, but now we have internet.

We have digital cameras with extra zoom, stump vision cameras,

speedometers to check the speed of the ball thrown by the bowlers,

digital sound systems, graphics systems, all the necessary data of the

past cricket comes on the screen within a few seconds. The International

Cricket Association (ICC) is also then and there introducing new rules

which increase the tempo of the game. These all aspects strengthen the

idea that cricket will live and it is part of our lives.

Stadium is to be built near the mega city. Resources will be available

easily. Machinery and manpower will be available at ease. Infrastructure

facilities are there so the roads and transportation, electricity, water, and

materials will be available easily. Air Port and Harbor will make it easy

for importing needs goods from outside and for the transportation of

international players and officials.

Market is highly competitive and we are living in the era of Advertising

and marketing. So many companies would like to sponsor matches. Lot

of money can be generated through giving rights to the television

channels for broadcasting of the matches. Not only this, sponsors are

ready to pay money for their logos on the uniform of the cricketers.

Money can be generated through the advertising hoardings on the

ground boundary. There is no doubt that commercialization and glamour

will draw more and more cricket spectators to the stadium to watch their

favorite cricketers in action as well as beautiful girls or cheer leaders.

1.1 Recommendation / Suggestion: After going through all these

aspects we can conclude that building a cricket stadium outside the mega

city will be beneficial project not to the cricket lovers only but as a profit

making business also. Cricket Stadium construction in India is a good

business focus to fetch more profit.

2) Project Development Process

From conceptualization to implementation the stages in the development

of construction project (here cricket stadium) fall into broadly consistent

patterns but time and degree of emphasis each project takes on its own a

unique character.

An idea of a project passes through six phases before it become a reality:

Conceptualization

Engineering and design

Procurement

Construction

Commissioning

Operation and maintenance

2.1 Project Management Organization

Generally, project management is distinguished from the general

management of corporations by the mission-oriented nature of a project.

A project organization will generally be terminated when the mission is

accomplished. According to the Project Management Institute, the

discipline of project management can be defined as follows:

Project management is the art of directing and coordinating human and

material resources throughout the life of a project by using modern

management techniques to achieve predetermined objectives of scope,

cost, time, quality and participation satisfaction.

By contrast, the general management of business and industrial

corporations assumes a broader outlook with greater continuity of

operations. Nevertheless, there are sufficient similarities as well as

differences between the two so that modern management techniques

developed for general management may be adapted for project

management.

The basic ingredients for a project management framework may be

represented schematically in Figure -1. A working knowledge of general

management and familiarity with the special knowledge domain related

to the project are indispensable. Supporting disciplines such as computer

science and decision science may also play an important role. The

representation in Figure -1 reflects only the sources from which the

project management framework evolves.

Figure 1:  Basic Ingredients in Project Management

Specifically, project management in construction encompasses a set of

objectives which may be accomplished by implementing a series of

operations subject to resource constraints. There are potential conflicts

between the stated objectives with regard to scope, cost, time and

quality, and the constraints imposed on human material and financial

resources. These conflicts should be resolved at the onset of a project by

making the necessary 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 labor, 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.

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 the basic function of the management. Planning is concerned

with ‘how and when’ to achieve the predetermined objectives. Planning

sets all other functions of management viz. organizing, staffing,

directing, motivating, coordinating etc.The main objectives of planning

are listed below:

i. Analysis

ii. Anticipation

iii. Scheduling resources

iv. Co-ordination and control

v. Production of data

All effectively managed projects involve the preparation of the project

plan. This is the fundamental document that spells out what is to be

achieved, how it is to be achieved, and what resources will be necessary.

In Projects and Trends in the 1990s and the 21st Century, author Jolyon

Hallows says, "The basic project document is the project plan. The

project lives and breathes and changes as the project progresses or fails."

The basic components of the project, according to Hallows, are laid out

in the figure below.

Figure 2: Basic Components of Project

2.3 Control of Progress on Site

Without control planning loses much of its value. It must be applied

continuously to update the plans and to enable reconsideration of the

workload in the light of what has already taken place.

Control involves comparing the actual achievement with the plans. If a

programme is to be really effective as a control document, it must

represent time and quantity of work carried out.

Progress can be recorded on planning charts that clearly indicate what is

happening and where corrective action needs to be taken.

Weekly and monthly meetings are invaluable in helping to control

progress. The action necessary for correcting underproduction will be

considered and the best solution will then be incorporated into the

programme for the next period.

2.4 Project Work Breakdown

Work within each phase to identify the events or tasks, and their

associated subtasks. Define everything that needs to be done; this is

called the work breakdown structure.

The Work Breakdown Structure (WBS)

The WBS has become synonymous with a task list. The simplest form of

WBS is the outline, although it can also appear as a tree diagram or other

chart. Sticking with the outline, the WBS lists each task, each associated

subtask, milestones, and deliverables. The WBS can be used to plot

assignments and schedules and to maintain focus on the budget.

Figure3: The Project Environment

2.5 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

The operation and maintenance cost in subsequent years over the project

life cycle includes the following expenses:

Land rent, if applicable

Operating staff

Labor and material for maintenance and repairs

Periodic renovations

Insurance and taxes

Financing costs

Utilities

Owner's other expenses

3. The Project Cost:

3.1 Calculation of Average Earnings:

Sr. 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

1 80000.00 100.00 4.00 60000.00 6000000.00 24000000.00 120000000.00

Table 1: Calculation of Average Earnings.

3.2 Calculation of Construction Cost:

Sr. NoTotal Area Of

Development in Sqm

Average Construction Cost Per Sqm in

Total Construction Cost

`.

1 20000.00 6000.00 120000000.00

Table 2: Calculation of Construction Cost.

This cost will be covered in 5 years exactly.

(Note: Other income from the broadcasting rights to the TV channels,

hoarding advertising, fees from sponsor’s etc. will is different than this

ticket income.)

3.3 The Critical Path Method

The most widely used scheduling technique is the critical path method

(CPM) for scheduling, often referred to as critical path scheduling. This

method calculates the minimum completion time for a project along with

the possible start and finish times for the project activities. Indeed, many

texts and managers regard critical path scheduling as the only usable and

practical scheduling procedure. Computer programs and algorithms for

critical path scheduling are widely available and can efficiently handle

projects with thousands of activities.

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. Thus, the critical path can be defined as the

longest possible path through the "network" of project activities, as

described in Chapter 9. The duration of the critical path represents the

minimum time required to complete a project. 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 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. 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.

5 Conclusion:

This cricket stadium will be profitable for all the parties say

sponsors, spectators, cricket association etc.

No holiday periods have as such been assumed but lags between

the phases can be used for the purpose.

Foundations have been planned in a way to complete it before the

monsoons so that when the monsoons arrive it will be indoor work

mainly & will not hamper work schedules much.

There will be variances in the planning & execution since the

ground situation & the planning assumptions have certain

conflicts.

The variances are to be carefully monitored during the project

execution & corrected.

There have been lag periods provided to take care of contingencies

that are bound to arise like stoppage of work due to rains, labor

problems etc.

6. Bibliography/ Reading

1. Construction Project Management Techniques, Published by

NICMAR

2. Construction Project Management by Lt Col K.K.Chitkara