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Assignment no.

1
Construction project management technique
Registration no.

ASSIGNMENT
NICMAR / CODE OFFICE
1.

Name

2.

Reg. No.

3.

Course No.

NCP 26

4.

Course Title

Construction Project Management techniques

5.

Assignment No. -

One

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


piece of land. Facility to include:
i.

Capacity of spectators

ii.

Day/ Night play facility

iii.

TV camera platform in six directions

iv.

Safety of players from spectators

v.

Pavilion for VIPs to sit 300

vi.

Parking (adequate space for all above)

80,000

Time available is Sixteen months including monsoon. Cost of construction need to


be recovered in five years. Average cost of ticket is Rs. 100/-. Approximate 4
matches per year. Submit the project report covering:

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i.

Identification of project

ii.

Stages in development of project

iii.

Work break down structure to undertake the project

iv.

Milestone & CPM chart for corporate control

v.

Cost of project

Identification of Project
Project is a mission, undertaken to create a unique facility, product or service
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 studyEnvironmental impact reports-

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Here, our project is to build a cricket stadium outside a mega city over a piece of
land in 16 months.
Hockey is our national game but cricket is more popular. Day by day craze for
cricket is soaring not only in 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.
5 Days test cricket is the oldest form of the game. So many people like to watch
this sort of game because it is said that test cricket is real test for cricketers. Due
to its long time (5 days) few people would like to go to the stadium to enjoy it.
Then came more exciting cricket called one dayers or limited overs matches.
It became popular very quickly because of its short time and more excitement and
uncertainties till the last ball of the game.
Some business minded people revolutionized the idea of shorter games viz 20T or
20-20 overs matches. Its real excitement. 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. Now the beauty and glamour is added to the game. Cheer leaders are the
dancers

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(mostly beautiful girls wearing short clothes) who encourage batsmen to hit more
and more runs or bowlers to take more wickets. Indian Cricket League (ICL) and
Indian Premiere League (IPL) are new tournaments which are becoming more and
more popular.
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. 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.
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

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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.


CONCLUSION: 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.

Feasibility Study
Feasibility study (or Detail Project Report) is to be carried out by doing the
detailed analysis by the team of experts in building the stadium, engineers &
Cricket Board. These consultants to be selected based upon their respective
professional reputation & previous project experience. The study team also
reviews the information from the user point of view, market study & transport
analysis which is the main important issue while selecting the area.
Location
While selecting the location for the international cricket facility outside the Mega
City following points need to be carefully viewed because the success of project is
widely depend upon these points.

Transportation: Public transport must be available conveniently from the city to


the facility as the success of the project is largely depending upon these.

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Infrastructure : There must be the proper road connectivity from the city to the
facility
Accommodation: The distance for the five star hotels and other ranges of hotels
from luxury to low range for the public also be at the convenient distance i.e it
should not be too far.
Airport : The land selection should be largely depend upon the distance of
Airport from the facility due to the security reasons of the players
Industries: The distance of the facility should be well enough far from the any big
industries & their routing of the transport should avoid that route which is to be
used for the cricket facility.
Future Scope: The area for the facility should have the potential so that
In future also, there would be possibility for building the similar facility or
building the public infrastructure like Malls, parks & etc.
Existing Facility/ Utilities: To be make sure the land which is to be Selected
should have no underground facilities & any no nearby overhead electricity.
Geographically Suitability: The location should not be in flood area, not a very
fertile for agriculture uses & has the natural drainage or there is scope to drain the
water, also it should not any earthquake zone.
Soil Condition & Fills: To see weather site condition require the excavation of
existing fill soils and the underlying soft compressible peat to establish a suitable
foundation for both the stadium structure and the replacement surface parking.
Where possible, excavated soil will be reused on the site. A storm management
plan would be prepared as part of the project.

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Techno-Economic Feasibility Study


Finance & Economic
As given , there is chance of 4 matches but in the facility , there can be scope to
establish that during the off season other activities can be organized for the fund
pooling , also the national cricket / practice session can be held to ensure the
substantial fund pooling.
Also, enough scope should be provided for the advertisements panels for fund
pooling
Scope for the future expansion which can be integrated with Shopping /
commercial complexes for better attraction for the public.
Basic Market Orientation & then to estimate the approximate occupancy of the
stadium
Project sales targets can establish thereafter & expected revenues
Critical factor that determine market potential.

Investment requirements, project financing and returns


Estimate of total project cost
Proposed financial structure of venture, indicating expected sources and terms of
equity and debt financing.

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Type of financing
Projected financial statement, information on profitability, and return on
investment
Sources of Revenues : Ticket collection , advertisement agencies , Parking &
leasing for national/ state level games & also by providing on rent for practice or
other sports camp facilities for various colleges, institutes or sports academies.
Running expenditure on maintenance, salaries of worker & staff.

Critical factors determining profitability


Technical
Study would be require on special technical complexities and need for know-how
and special skills as main primary objective for the project is to built up the
international facility so the structure & in built facilities must be superior & look
unique with all modern amenities so there would be the special technology would
be needed & at the same time it should be cost effective. So, the design of the
facilities should be compatible with the proposed technology will be used within
the budget.
To be assessed & analyzed the total requirement of equipment needed for the
project then search out the possible supplier of equipment , ideally open market
(Global tender) competitive quotation required before finalize the equipment from
particular supplier. And then the total cost of the equipment.

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To be assessed & analyzed the total requirement of manpower needed for the
project & there availability , a full deployment chart is to be make out for the total
man month required for the project. As this is the international level standard
facility so some special skilled manpower / experts are needed even from abroad
also to make this feature a unique one.
Infrastructure facility like transport and communication , power , water , etc
Breakdown of projected operating costs by major categories of expenditures.
Source, cost, and quality of raw material supply and relations with support
industries.
Import restrictions on required raw materials.
Proposed location in relation to supplier, markets, infrastructure & manpower
Proposed stadium size in comparison with other own international stadium.
Potential environmental issues.

Government support and regulations


Project in context of government economic development and investment program.
Specific government incentives and support available to project.
Expected contribution of project to economic development.

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Project Development Process


Planning / Initial
Resource Pooling

Detail designing

Preliminary
Engineering
Detailed Engineering

Procurement

Construction

Commissioning

Operation &
Maintenance

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Planning, Organizing & Staffing


First of all the project has to plan to how to execute it with desired quality standard
& in schedule .Analyzing the amount of resources are needed in time frame.
Mainly, to analyze the type of functions are required & accordingly the positions
required with delegations & their channels of communication
Secondly, organizing the basic resources in orderly manner, and arranges people
and resources in an acceptable pattern so that they could perform the required
activities efficiently and achieve the objectives.
Recruitment / staffing to have good organization structure with good human
resources for the organization. This is achieved through staffing by manpower
planning, recruitment, selection & placement.
After that, establishment of the standard & controlling the project with delegating
the authorities.
After that the project concurrence is taken from the government, and remarks if
any should be incorporated in the Project.

Initial Resource Pooling


First of all initial set up to be build up & pooling the initial personal to start the
Job & establish the basic resources required.

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Design & Engineering


Preliminary Engineering / Front End Engineering Design
(FEED)
This is the conceptualization phase of engineering based upon the feasibility &
Techno-Economic feasibility report. This includes the basic design of the facility
& requires the architectural concepts, evaluation of alternatives in regard to
technological process, size & capacity & scope for future expansion, also includes
economic feasibility studies with different options. This is the stage of generation
of overall flow sheets & specifications. In this phase , there is the decision of size
& shape of the facility , site layout , decision of establishing other amenities like
parking , rest rooms , modern techniques , broadcasting facility , entertainment for
players & etc in line with the technological process to be used. This stage would
give the specifications & standards on which total facility to be constructed.
On the preliminary engineering and design are essentially complete, there is
generally and extensive review process before detailed work is allowed to proceed.

Detailed Engineering
This process involves successively breaking down, analyzing and designing the
structure into elements so that it complies with all the recognized standards of
safety and performance. A set of drawing and specification are prepared for use by
the contractors. In preparing the detailed drawing & specifications, the large input
comes from engineers or architects of different trades such as civil, mechanical,
electrical, instrumentation & etc or interior designer or landscape architect as the
case may be. While carrying out the detailed engineering and design work, these
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engineers even carryout large amount of field studies for all engineering
information required for foundations and strengths of structural materials to be
incorporated in the project. Field construction methods are also taken into
consideration for workable construction details at each stage.

Procurement
Procurement involves two type of activities which includes directly purchase of
material required for the project or subletting the purchase items or subcontracting
the work directly to subcontractor. So as per the design, various sealed quotations
is to be taken from various suppliers (expert in their fields) for procuring the
material & also the procurement department ensure the timely delivery as per the
specified time
The main procurement functions will include:

Vendor list definition

Issue of inquiries

Standardization of materials/ Services

as per the designer/

international community requirements.

Collection of Technical evaluation of quotations

Commercial tabulation of quotations

Preparing of Purchase order drafts

Expediting of orders and issue of schedules and procurement


progress reports

Witness/ approve test and inspections

Coordination with company procurement dept.

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Collection of Vendor documentation as per purchase orders, to

be included in the final data book.

Construction
Construction will be undertaken by a selected team through global tender after
scrutinizing its technical & financial details of past & future commitments and
then from a set of selected teams/ tenderers one with most economical and best
offer offered by the Contractor is awarded the work which later mobilized its team
as per Plan. This team will work as part of integrated PMT to ensure timely
completion of the Project within the Contract Schedule.
Contractor intends to execute the Construction work scope generally using inhouse resources of supervision, labor and equipment, thereby retaining overall
control of both the quality and the scheduling of the work.

In this process whereby the designers plans and specification are converted into
physical structures and facilities. It involves the organization and co-ordination of
all the resources like time, money, equipment, technology, people and materials.
The target will be to complete the project on schedule and within stipulated costs
complying all the standard of quality and performance specified by the designers.

Commissioning
After the completion of project there would be a commissioning process to check
the proper completeness of the project or correct if any defects remains. Generally,
electrical &mechanical systems are tested, adjusted, corrected as required to bring
them level to perform at an optimum output.

Operation & Maintenance


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Finally the project is handed over to operate & further maintenance is required
regularly as required.

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

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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:
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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.
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

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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.

Work Break Down Structure


Methodology
Work Breakdown Structure (WBS)
The WBS is made up of work elements or work packages that relate to progress
and schedule and that comprise the scope of work. The primary portion of work
packages is represented by physical deliverables such as drawings, specifications,
equipment, materials, construction and start up services, etc. The progress of this
aspect of the project scope can be measured as the completion of activities take
place and are commonly known as progressable items. Other elements that
support execution of the works such as administration, management, etc. are

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known as non-progressable items. These latter items are also part of the WBS
but are primarily captured for the cost control purposes and need not be
represented as activities within the schedule, although they may be required for the
purposes of schedule resource analysis.
The WBS is the hierarchy of these elements that represent the organization and
reporting structure of the project and reflects how the project is planned, executed
controlled. This subdivision of work provides the lowest level of progress and
schedule control.
The main characteristics of the WBS are,

The subdivision of the work to detailed level for purposes of


manageability.

Comprises progress able work for progress measurement.

Reflects the entire project scope.

Creation of a Work Breakdown Structure

WBS preparation is a team effort between engineering, construction, and


procurement that is facilitated by the Project Controls Manager and/or Lead
Scheduler. The WBS is reflective of the engineering, procurement, and
construction execution plans and is structured to accommodate the way
engineering tasks are executed, the way materials are procured and the way
construction activities are sequenced.

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The cost and physical work are subdivided into elements that can be defined,
planned and controlled. Notwithstanding the general requirement to complete
construction works by operating system, the most common approach to
establishing the WBS is by geographical or plot areas.
WBS Creation Steps
When reviewing the source documents listed in the table above, consideration is
given to the following topics, in particular, to assure the above requirements are
met:

Plot Plan / field development layout characteristics and design areas

Split of work with Joint Venture partners of other work centre

Unusual contract or internal requirements

Management/organizational requirements

Client financial/accounting requirements

Engineering, procurement and construction execution strategies

Planning and scheduling requirements

Cost control and reporting requirements

System turn over requirements1

Historical database requirements

Project controls systems/tools defined

Engineering and Construction cost and cash flow analyses

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Physical location of work (necessary on some projects)

Project phase

Establish the WBS hierarchy structure by establishing the levels and assigning
each component to a level.
Review the project management system coding requirements (number of digits,
structure capabilities, etc.).
Establish the coding structure and codes.
Review the structure with the project management, client, and startup support
teams.
Load the WBS into the project management systems.
Establish or modify the timesheet coding matrix based on WBS.
Distribute the approved WBS structure and timesheet coding structure to the
project team.

Classification of Levels

Total Project Level The total project is the highest level of the WBS. The total
project is summarized into a single duration span or completion date at this level.
This includes all labour, materials, subcontracts, etc.

Executive Summary Level At this first level, division is by major project


function, such as EPC or sometimes implementation stages. This level is often
represented by a Project or Contract Master Schedule in simple bar chart format.
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Control Level This level subdivides the progressable work of the project into
specific geographic areas and is used for Cost and Work hour control. The
discipline code in combination with the unit or major cost area typically makes up
a control package identifier. Resource Load Level This level is a major area
breakdown within the unit and is created as a summary of the Detailed CPM level.
It is used to resource load the summarized Work package/CTR activities.

Budget/Estimate During the estimate development, details are utilized for


quantities at a low level, in terms of size and specification. The estimate is
developed in accordance with the project WBS.

Detailed CPM Level The Control Level generally contains too great a work
scope to be scheduled and managed effectively. Therefore, the project is further
subdivided so that it can be effectively planned and controlled. The following
criteria apply for the Detailed CPM Level.

CPM / Network Analysis


Network Elements
Network is defined as the pictorial representation of a given project in the form of
arrows which form an essential element of network. Arrow represents an activity,
task of operation of the work-since an activity consumes resources. Arrow
represents utilization of resources.
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Arrow has a directional sense, which can be represented by the arrow head. This is
used for the direction of the flow of work. It is marked from left to right.
Beginning of the arrow i.e tail is the start of work & the head is the completion of
the activity beginning of completion of an activity marks a phase or stage of work.
This is represented by a suitable geometrical figure like circle, triangle or
rectangle. This is known as event and is an instantaneous stage of work. Even
nature does not consume any resource by itself.
Arrows indicating activities and Events indicating identifiable instantaneous stages
are the important elements of project network. There is another type of activities,
which do not require any resources, and which are basically imaging activities
called dummy activities.
In general while creating the network diagram on Primavera following are the
network elements:
Activity
Duration
Relationship (SS,SF,FS,FF)
Links
Resource
Type of Activity
Constraint
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Calendar

Analysis Procedure
After building the Network Logic & chart various analysis is to be carried out to
see the effectiveness of the schedule & also to see the condition of the project time
to time. If , the schedule is prepared on Primavera then the analysis is to be carried
out to see the followings :
Early Event Time
Forward Pass
Latest allowable Time
Backward Pass
Critical Activity
Critical Path (Longest Path)
Total & Free float for the activity
Condition of Early & Late Curve
Mainly , the analysis is done to have the condition of actual progress between the
Early & Late Curve, if the actual progress is inclined towards the Late curve , then
all the activities coming in Critical Path & the activities which having the total
float near to Zero is to be reshape. As per the current scenario, the forecast of
resources also can be formulated. According to the WBS of the project, its been
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very easy to have the progress of each area / phase or as per the elements of WBS
to identify the portion which is responsible for the shortfall.

CPM Network
Network Logic Chart is prepared on Primavera with WBS & enclosed

along

with the S Curve indicating the Early & Late Curve. According to the current
progress, it shows the completion time for each activity & the Project.
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 to3) 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.
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Many

computer

scheduling

systems

support

only

one

network

representation, either activity-on-branch or acitivity -on-node. A good


project manager is familiar with either representation

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Project Cost
Various elements to be taken while assessing the cost for the Project. While
evaluating the project cost, each element has to be identify who contribute in the
project & then its cost has to be assessed like total Man Months, Total Machine
Months, material, Fuel & etc. Then there rate / unit are to be taken & cost to be
incurred against each head to be evaluated & finally the overall cost.
Cost components considered for the purpose of this exercise include:
Capital cost of infrastructure (civil engineering, land, power supply,
security system, telecommunications, etc.) and other basic utilities.
Operating cost of International play ground with all modern facilities.
Maintenance cost of the cricket ground.
Costing:
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

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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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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
COST OF PROJECT:
Capacity of spectators = 80000
Time limit =16 months
Average cost of ticket =Rs.100
Per year Matches =4
Assuming one match average spectators = 72000
Earning from match tickets = Rs. 100 x 72000 = Rs. 7200000
Per year earning through matches = Rs. 7200000 x 4 = Rs. 28800000
In 5 years earnings through matches = Rs. 24000000 x 5 = Rs. 144000000

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Say the built up area of the stadium = 18000 sqm
Cost of construction per sqm. = Rs. 8000
Total of construction = 20000 x 6000= Rs. 144000000
This cost will be covered in 5 years exactly.
(Note: Other income from the broadcasting rights to the TV channels, hoarding
advertising, fees from sponsors etc. will be different than this ticket income.)
Recommendations / Conclusion
Conclusively, before starting of the Project there would be the detailed feasibility /
Techno-Feasibility study on which largely the success of the Project depends
which frame out all the Technical & Financial aspects & gives the worth of the
project. After the conceptualization study then the project development process
starts which includes the Start of Project Process, in this Planning , organizing ,
staffing with commencement of all technical , procurement , construction activity
with resources by using the best techniques & proper thought.
There must be the Project control Department who ensures the all aspects & task
must be performed as per the initial plan & completion of the schedule as per
schedule & within the Budget. The best way to control & monitor the project by
the CPM Method which have the full control of every activity & tells at glance the
position of the Project. There are several tools to be used & continuous analysis
must be performed to see the progress & budget condition which ensures the
success of the Project.

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Bibliography/ Readings
Construction Project Management Technique by NICMAR

Joy P.K Handbook on Construction Management Mac. Milan,Mumbai


1990

Lt. Col. K.K Chitkara Project Mangement Tata MacGraw 1998


Various Literature from Present Company
Planning Procedure of Current Project in Present Company

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