NCP-26 Construction Project Management Techniques
January 13, 2017 | Author: Vivek Rai | Category: N/A
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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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Assignment no. 1 Construction project management technique Registration no.
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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Assignment no. 1 Construction project management technique Registration no. 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 over’s 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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Assignment no. 1 Construction project management technique Registration no. (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 Registration no. 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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Assignment no. 1 Construction project management technique Registration no. 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 Mall’s, 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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Assignment no. 1 Construction project management technique Registration no.
Project Development Process Planning / Initial Resource Pooling
Detail designing
Preliminary Engineering Detailed Engineering
Procurement
Construction
Commissioning
Operation & Maintenance
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Assignment no. 1 Construction project management technique Registration no.
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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Assignment no. 1 Construction project management technique Registration no.
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 Page 12 of 32
Assignment no. 1 Construction project management technique Registration no. 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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Assignment no. 1 Construction project management technique Registration no. 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 designer’s 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 Page 14 of 32
Assignment no. 1 Construction project management technique Registration no. 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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Assignment no. 1 Construction project management technique Registration no.
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: Page 16 of 32
Assignment no. 1 Construction project management technique Registration no.
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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Assignment no. 1 Construction project management technique Registration no. 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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Assignment no. 1 Construction project management technique Registration no. 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
1
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Assignment no. 1 Construction project management technique Registration no.
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. Page 21 of 32
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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. Page 22 of 32
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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 Page 23 of 32
Assignment no. 1 Construction project management technique Registration no. 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 Page 24 of 32
Assignment no. 1 Construction project management technique Registration no. 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. Page 25 of 32
Assignment no. 1 Construction project management technique Registration no.
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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Assignment no. 1 Construction project management technique Registration no. 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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Assignment no. 1 Construction project management technique Registration no. 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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Assignment no. 1 Construction project management technique Registration no. 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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Assignment no. 1 Construction project management technique Registration no. 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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