Project management A report on Formula 1 Track Abstract Seeing the growth in the premier motor racing championship of the

world and recent success in Gautam Budh District , now even Chandigarh also wishes to develop a Formula 1 track so as to tap into this multi-billion dollar event and get a share of this huge source of revenue. Also with so many teams coming from different countries and their supporters it will be a huge boost to the tourism to both Punjab & Himachal Pradesh. Again with the increase in the fan following of the sport the track can be used for hosting A1 Grand Prix and Formula 2 & Formula3 races. Table of Contents

INTRODUCTION a) Define the introduction of topic: Constructing of a Formula1 track in Chandigarh, HIMALAYA International Circuit will come up in the IT park area of Chandigarh.

b) Objective of the Topic:Himalaya International Circuit will be designed as one of the fastest, and most exciting motor racing circuits in the world. It will be well suited to the requirements of powerful, high-spec racing cars and motorcycles and will host some of the most challenging motorsport events on the planet. The track s combination of 15 corners, high-speed straights and dramatic changes in elevation has been designed to provide ample

opportunities for overtaking, which is what makes motor racing exciting. At the same time, in terms of adherence to safety norms and regulations, run-off areas, medical facilities, facilities for the media and overall infrastructure, HIC will be among the best in the world. c) Importance of topic: National pride and raising the profile of Chandigarh: The Formula One Grand Prix can provide our community with strong platform to showcase our expertise enhance our international image and promote new business opportunities to attract the interest of entrepreneurs to Chandigarh. The positive media exposure generated by the event can also illustrate the capacity, innovation and achievements of both our country and our people. It is heartening to know that our community will back this major event even if they have to put up with temporary inconvenience and disruption because the air of excitement generated, the feel good aspect that the whole world is watching us and the provision of long term expectation for improvement of facilities and economic benefits. The Grand Prix event will enable opportunities for businesses to increase their brand awareness to the international audience and drive sales. In addition, it also provides important opportunities for relationship building through hosting partners and clients. Giant multinational companies use Formula One as billboards for transporting their products and slogans around the world. Big events help to bring tourists.. It is naturally a highly important boost for the country s economy. Last year (2011) the Airtel Indian Grand Prix generated 346m (BD207m), International tourism made up approximately 7.6 per cent of the country"s gross domestic product and it represented 10 per cent of the kingdom"s employment. An average 2007 Gulf Air Bahrain Grand Prix visitor spent 856 per day and the biggest spenders were Europeans.
The race is a real windfall for hotels in the region as well. Most hoteliers increase the room rates significantly during the event. F1 fans from Gulf Cooperation Council (GCC) states and from Europe have booked their rooms well in advance. Rooms are sold out in most hotels. Most of the bookings were made by European and GCC tourists. The event will also boost the income of Gulf Air. The airline has confirmed it has allotted 32,000 seats for flights from the GCC, Europe and Asia for the duration of the race.

d) Objective of Assignment: y To plan a complete project lay out for the construction of the Himalaya y International Circuit. y To discuss about the challenges y To discuss the feasibility and project scheduling

y y

Formation of the project team , tendering, Bidding & allocation Formation of monitoring & control systems

e) Chapterisation Review

Literature Review Feasibility study

It aim to objectively and rationally uncover the strengths and weaknesses of the existing business or proposed venture, opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the prospects for success. The bottom line is to judge feasibility are cost required and value to be attained. Purpose of Feasibility Report: The main reason of this report to check how much viable it is to construct a Racing circuit in the city of Chandigarh and analysis different parameters for the same and make a report.

Scope of Project: To build a world class Formula1 Circuit. That is comparable to the likes Of International Racing Circuits like Sepang(Malaysia), Singapore, Autodromo Nazionale Monza (Italy) Indianpolis(US), Silverstone(UK) etc.

Current Analysis: Currently there are 20 Circuits where the races were held during season of 2011, held from first weekend of March till the second week of November. So there are plenty of free weekends which can absorb the introduction of another circuit. More Legal Feasibility Indian being a democratic and a sports loving country so we don t except any problems or any legal hurdles in setting up the circuit. Although there may be a few PILs by nearby Individuals or some NGO s regarding the Noise levels or the affect of constructions in the nearby area. Our project plan will take adequate measures for

making sure the affect on such things is minimal and if anything goes to courts our legal team will be prepared to handle it.

Economic Feasibility The cost of construction of a this Formula1 Circuit will be approx 11 billion Rupees(236.5 million dollars). Each race will generate revenue of XXX rupees, there by the end of fourth year we shall break even and start generating profits.(2500---650) More over the profits from racing is not expected to be much but the main source of revenues and income will be generated through the development of the nearby township area (housing complexes, Malls, amusements parks and offices). It is expected, that the return by development of entire area will fetch around 1,25,000 crores. Schedule Feasibility After the clearance from Govt bodies the project should be able to finish in about 15 months time so that is ready for 2013 season. With the backing of DLF group and support of XXXX the we expect the clearance of formalities should be a smooth process.

Financial Feasibility The entire project is the brain child of DLF group so most of the financing will be done internally and for external source of funds they will tie up Punjab & State bank of Patiala.

Project Planning Initial task was to identify the potential location for a circuit and associated development in and around Chandigarh. Comprehensive analysis and assessments will be undertaken considering long term financial, social and environmental viability. We are committed to delivering the next generation of racing circuits, with great racing, overtaking, world class facilities and architecture. But above all the intention is to create a sustainable venue that will not need continuous financial support, and will facilitate investment and re-generation. The DLF group has shortlisted an area of 400- 500 acres near by IT park in the union territory and has requested the government to acquire the land from local farmers at reasonable rates . Moreover the DLF group has pledge the will proved employment to local people in its project. Once the land is finalized, DLF, along with a consortium of consultants, will develop a world-class car-racing track. Apart from the track main source of income will be revenue generated through the development of area around the track. The

Consortium will request the govt to give tax benefits to the race for a period of three years, till the time it reaches break-even point. Table 1 : Circuit's Details
Total Area Pit Building No. of Pits Grandstand Capacity General Admission Track Length No. of Turns Straights Width Longest Straight Gradient Widest Run-Off Gate Entrance 90 hectares L:350m W:24-30m 30 units 30,000 80,000 5,542km Left:5 Right:10 8 16m (T1:18m; T2:20m; T15:25m) 928m (T15 to T1) T2T3:-5.6%; T9T10:+3.67% T-13 to T-14 8

The track will be designed by Mr Hermann Tilke, world renowned architecture in designing Formula1 tracks across the world. Some of his work includes Sepang(Malaysia), Bahrain, Singapore. Track design of Himalaya International Circuit

Networking & Project Scheduling Project scheduling means the work breakdown structure of any work that has to done. The scheduling will start after the signing of contract with the government.               Acquisition of the required land: one month Track design & layout: 15 days Tendering & Bidding: one month Allocating of works to different vendors: 15 days( after tendering) Licensing & permission from various govt bodies : two months Clearing up of track area: one months Track construction: 5 months (after clearing) Construction of grand stand: 5 months (after clearing) Construction of temporary stands : 3 months ( after clearing) Fitting of IT equipment: 3 months( after construction) Constructing of outer parking : 2 months (after track completion) Fitting of security equipment: one month

Tendering Bidding Contracting

Tendering is the management and commercial function of determining the tender based upon the estimate and other details prepared by contractor s estimator and other personal. Tender system The process of finalization of contract will be achieved through the tender process because of it is :  Most effective method of securing competitive rates. New technologies and options are received through open tender process.

Advantages of Tender process  Tender Notice or Notice Inviting Tender  The Tender Notice is a brief description of the job being tendered which is to be published in Newspapers and on the Internet.  The Internet is a very cost effective way of publishing the tenders.

Format of Tender Notice will be :Name of the Project. Himalaya International Circuit Name & Address of the Company floating the tender: DLF Group, Cyber City Name of work, materials or services. Place of work location. Approximate estimated cost of work. Period of completion. Date on which the Tender Document sale commences. Date and time up to which tender documents can be obtained. The cost of tender documents. The date and time up to which the tenders to be submitted and are to be opened. Specification.

Guidelines for filling of Tender System  The capacity, past credentials and financial status of the tendered is thoroughly investigated before awarding the contract. These aspects should be commented in detail along with the tender documents.  The rates should be quoted in the numbers and words without any corrections. To take advantage of any possible increase in statutory taxes & duties, the tax component such as excise duty, Sales Tax, Works Contract Tax, etc. should be clearly indicated.  Tenderness should not quote many special conditions as some of them may have financial implications, did this can be added to your quoted cost. Also it creates confusion and creates room for manipulative forces.  The rates quoted for individual items should be realistic and should not be abnormal and unworkable.

There are following types of tender:     Open tender/ Public tender Close tender Competitive tender Direct Order tender

We will choose the Competitive Tender because of the following reason :-

Competitive Tender A tender is the completed and priced pre-prepared document that lays out all the terms, conditions and specification. The Council usually invites between 6-7 suppliers to provide a tender. The tender enquiry is issued to all suppliers on the same day. The tender period allowed for pricing and submitting a tender varies; however it is normally around 4 weeks. Tender returns all come back in plain, unmarked envelopes to the Head of Legal Services for opening by the Procurement team, on the same day and at the same time. Organization of project Team We need to develop a core team who will oversee the entire process from the day of commissioning of project till the flag off of the race. The Ceo Mr Kushal Pal Singh will personally head the committee. The will consist of expert people from different fields. Each member being a specialist in his/her field with relevant knowledge pertaining to contruction. If required we may hire the services of an expert consultant from FIA. Project manager(1): Francis Barnetto Architecture(1): Hermann Tilke Engineers(5)- Civil(2) : Shailendra Shanker Civil : Sidharatha Jain Mechanical(1) : Karan Vasudev

Electrical(1) : Nikhil Nayyar Computer/IT (1) Samyukta Swahney Contractor (2) : Nikhil dey Nikhil Jindal Financial Consultant (1): Neha Gupta Mediator/Lobbyist (1): KPS Gill Legal Advisor(1): Sahil Mehta.

ARRANGEMENT OF PROJECT FINANCE

This section explores the compatibility of the different contractual arrangements with different financing arrangement alternatives ranging from project financing to corporate financing and hybrid financing. DLF the project company for constructing the Himalaya race circuit will raise fund for the project by following method :-

y y y y y y

Own capital BY Sponsors Of the Project By loan from Financial institution like state bank of Patiala From Suppliers From Capital market by SPO i.e. secondary public offer From Customers of their project

70% of total amount will be raised by non recourse debt and 30% will be by sponsors

Project Control Cycle

PLAN Specifications Project Schedule Project budget Resource plan Vendor contracts

ACTION Correct deviations from plan RE-PLAN as necessary

MONITOR Record status Report progress Report cost

COMPARE Actual status against plan -Schedule -Cost

Chapter10 Project Monitoring & Control 11

Why there is need for control and monitoring :  Simply because we know that things don t always go according to plan (no matter how much we prepare)  To detect and react appropriately to deviations and changes to plans

Steps for Controlling and Monitoring: There will be various offices that will monitor their respective domain like:  At head office  At site office  One the spot

What will be monitored during the Project?  Men (human resources) - The human resources are needed to be monitored very closely as there is a lot of chances of mistake. The full utilization of their skill will totally depend on the monitoring and control of the human resources as DLF will need lots of man power to finish this project on time.

 Space  Time- The time factor is really important as the project completion will totally depend on this as how the time are being utilized. So time of the task should be monitored that these are finishing on time or not otherwise it will affect the deadline of the project.  Tasks- The task allotted to various managers will be monitored and controlled by their repective head  Quality/Technical Performance- The quality of the finished task should be monitored.  Machines- The machines which will be hired from different suppliers will be monitored.   Materials- The quality of Raw Materials, Quality of all product which will be used during the construction  Money- Like the sources of funds and their optimum utilization. The money should be utilize in control manner and the available funds should be kept in mind.  Resources- The resources available for the project will be monitored and the proper guildlines will be provided to the respective team to utilize it in the control manner.  Progress- The progress of the project task will be monitored by the monitor & control team. The milestones should be reached on time and this will show the progress of the project.

How the respective Manager will monitor their Domain:  Through meetings with clients, parties involved in project (Contractor, supplier,etc.)  For schedule Update CPA, PERT Charts, Update Gantt Charts  Using Earned Value Analysis  Calculate Critical Ratios  Milestones  Reports  Tests and inspections  Delivery or staggered delivery  PMIS (Project Management Info Sys) Updating

Project Quality Management This is basically divided into 3 parts Quality Planning Quality assurance Quality Control

Quality Planning  It consists of the mission and vision of the project of the project Quality assurance Quality Control

Table 1 : Circuit's Details

Total Area Pit Building No. of Pits Grandstand Capacity General Admission Track Length No. of Turns Straights Width Longest Straight Gradient Widest Run-Off Gate Entrance 90 hectares L:350m W:24-30m 30 units 30,000 80,000 5,542km Left:5 Right:10 8 16m (T1:18m; T2:20m; T15:25m) 928m (T15 to T1) T2T3:-5.6%; T9T10:+3.67% T-13 to T-14 8