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Construction project management technique
Registration no.
ASSIGNMENT
NICMAR / CODE OFFICE
1.
Name
2.
Reg. No.
3.
Course No.
NCP 26
4.
Course Title
5.
Assignment No. -
One
Capacity of spectators
ii.
iii.
iv.
v.
vi.
80,000
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Assignment no. 1
Construction project management technique
Registration no.
i.
Identification of project
ii.
iii.
iv.
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
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Construction project management technique
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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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Assignment no. 1
Construction project management technique
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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
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.
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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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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.
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Construction project management technique
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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.
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Construction project management technique
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Detail designing
Preliminary
Engineering
Detailed Engineering
Procurement
Construction
Commissioning
Operation &
Maintenance
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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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Construction project management technique
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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:
Issue of inquiries
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Collection of Vendor documentation as per purchase orders, to
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.
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Finally the project is handed over to operate & further maintenance is required
regularly as required.
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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.
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Construction project management technique
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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,
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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:
Management/organizational requirements
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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.
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Construction project management technique
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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.
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.
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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
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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
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