The Structure of Construction Project Management - Assignment Example

Project Management 6 4 There are four types of methods of procurement, depending on the size and scale of project, and the method of working that best suits the client. 1. Traditional method of procurement (also known as conventional procurement): This method is by far the most common, and involves the separation of the design and construction stage of a project, linked by competitive tendering to choose construction after the completion of the design stage. In this method, complete drawings and specifications have to be prepared prior to tendering, because of which this is not the fastest method of procurement. The biggest advantage of this method is the relative certainty of quantum of expenditure by the client before the beginning of the project, with some flexibility built in to accommodate changes in budget due to subsequent changes. 2. Design and build procurement: A method where the contractor is required to deliver the completed product, and is responsible for design as well as construction. The advantage of this method is that if the client is very specific about his requirements of the final project, the contractor has no excuse but to deliver, as all consultants and their coordination are his responsibility. The disadvantage of such a contract is that if the client is not vigilant, the contractor can cut corners in order to maximise his profit, at the cost of the quality of the finished project. This method is used for highly specialized projects like dams and nuclear power stations to optimize coordination between various consulting and building teams within the project. 3. Partnering / Joint development procurement: This method of procurement makes the contractor a stakeholder in the project, sharing profits as well as risk. The development of such projects are increasingly been seen in large township developments, where phase wise development is done. This method makes it possible for each stakeholder to manage cash flows more easily, despite a slower return on investment. 4. Consolidated contract procurement. This is a method by which very large and complicated projects requiring several consultants are executed. This is used in cases where no single entity, including architect, contractor or consultant can single handedly deliver the project on time and to specifications. 4.2 A contract is an exchange of commitments towards a common goal. It may be written or oral, and contains the terms and conditions according to which all participants shall work to achieve those goals in the best interests of the venture. The basic requirements that a construction contract has to fulfill are: It needs to be compatible with the laws of the land. It has to be formulated properly, with a clear structure so as to eliminate confusion or ambiguity as to its contents. A contract has to consider the making of an offer and its implicit acceptance by another party, subject to the terms and conditions within it. A contract has to mention the considerations for carrying out the job, in the form of clearly defined monetary compensation for the standard as well as deviations in the terms and conditions. All parties entering into a contract need to have the ability to execute the contract. No person with a criminal record, of unsound mind or under the age of 18 can be a signatory to a contract. Performance obligations in a contract: Every party to the contract has an obligation to complete the work set down in the contract, and to set up a self-auditing mechanism to study his own periodic performance on the project, and to rectify any delays and deficiencies in the execution that may potentially compromise the project. It is also the contractor's prerogative to check the client's satisfaction continuously. Time obligations of a contract: It is the contractor's responsibility to start work after a careful project timeline with realistic deadlines, and to work towards maintaining or exceeding those deadlines. It is also the contractor's responsibility to bring any repercussions of changes in design or specifications on time to the notice of the client so that the master work schedule may be adjusted accordingly. A contractor may request extensions to complete certain tasks only if the delay is caused by factors not of his creation. Cost obligations of a contract: A contractor is bound by contract to deliver the project to certain specifications in a certain period of time within a specific cost, that he quoted for after studying the project requirements. In case of changes, an additional cost has to be paid to the contractor. Such costs may be agreed prior to inclusion into the contract. Quality obligations of a contract: A contractor is required to execute the project so as to meet industry standards or to exceed them in his work. He is expected to follow best practices to meet all specifications and also maintain a good Health and Safety framework on site. The quality of the project should be regularly reviewed and benchmarked by the contractor, and all work should be carried out to meet employer satisfaction throughout the project. 4.3 In the contemporary construction management scenario, it is often the case that several disparate teams of people from various specialty backgrounds need to work together on a project with some complexity. It is in these situations that true project management comes into its own. Purely empirical steps like scheduling, charting and monitoring are not enough to get the most out of the people on site. What is required is a positive attitude and a motivated problem-solving stance from all concerned. Multi-discipline execution or working is the working of several different teams working on separate parts of the project, handling tasks independently, and each with its own independent vertical starting with a sub-contractor down to the crew. It is a project manager's (or CDM coordinator) responsibility to coordinate and manage their work so as to achieve all project goals. To meet these project goals, a sense of belonging to the project and an inner motivation to achieve is needed. Non-adversarial: A non-adversarial attitude is the basis for the team work and motivation mentioned above. It involves the ability of the teams to sit together and solve potential problems quickly, to avoid the use of legal means to protect their interests when they seem at risk, and the willingness to look for solutions together. Such a holistic view occurs on the foundation of trust, transparency and excellent communication between all actors, free of small personal self interest and ego. 4.4 Best Practice are established norms for methods and procedures that if followed would result in the best possible outcome. Most professional fields have best practices that have been enumerated and formalised so as to provide a common ground for performance for all projects or tasks undertaken with these in mind. Best practices have several distinct advantages: They ensure a high level of commitment from all project components, and hence assure the client, the contractor and society at large of the correct methodology of work of the particular project. Best practices allow a modular management for the company, as all departments can follow their own specific best practices and perform optimally. To make the concept a success, all levels of a company / all parties to the project need to be focused on the final objectives to be achieved. Benchmarking is a process by which the best practices of companies involved in similar types of work are monitored during and evaluated after the work is complete. It allows all participants in the process to quantify their achievements in various parameters of performance for a project, and provides a database for future improvements to their own methods and procedures. IT quantifies levels of achievement for work that was till recently an ambiguous and indefinable quantity. Benchmarking also allows teams to micro-monitor performance and follow their achievement plans and goals. 4.5 The building of a truly sustainable building project has two parts. The first is sustainable construction, that deals principally with eco-friendly and ecologically sensitive methodologies of construction, and 'environmental management' that looks at a much wider impact of the project on the environment, and the ways and means this impact can be positive. It is comparatively difficult to look at environmental management as anything but corporate environmental responsibility. Its benefits are long term, and its advantages are subtle. Sustainable construction: involves processes including the design, construction, procurement and manufacture of ecologically sensitive materials in an ecologically sensitive manner. It involves reducing the carbon footprint of the building project by choosing local materials and techniques, as also construction methods that require low amounts of fossil fuels. Sustainable construction also looks to reduce energy consumption of the project on the long term as operating energy loads. Maintenance of the project and any future refurbishment are also factored into the sustainability of the construction. Environmental management looks at mitigating the impact on the surrounding environment. This includes the project's impact on local flora and fauna, the region's bio diversity, ground water resources, among other factors. Steps taken as a part of the environmental management fo a project include Creation of a plant nursery to replace plants that may be killed during construction. Creation of a water management plan to minimise or eliminate waste water from site. Creation of rain water harvesting pits to recharge ground water aquifers, vermin-composting etc. Sustainability for a project is achieved in its entirety when the sustainable construction plan and the environmental management initiative are both followed by the project proponents. Read More