Project Management, Project Budget - Essay Example

Name: Institution: Instructor: Date: Project goals Project need The construction of a building to house the recycling plant will help curb environmental pollution and contribute to the attainment of Abu Dhabi’s vision 2030. Requirements The building must satisfy The Abu Dhabi International Building Code (ADIBC). This code stipulates the rules and regulations relating to light, energy conservation, ventilation, structural strength, sanitation, maintenance, stability and safety from various hazards. The construction design must meet green building requirements. The overall design of the building should be environmental friendly. The building should meet seismic stability codes to ensure that it is earthquake resistant. All windows and doors should meet factory standards. They should enhance security while at the same time preventing noise and air pollution. Exterior walls should be well protected, insulated and moisture-protected in order to reduce noise pollution and save the energy used for air conditioning. The wall height and ceiling installation should meet industrial requirements. The walls should not be less than 4.5 metres tall. There should be a provision for a parking space. Stakeholders requirements The building must be completed before September 2014 The building should host a recycling plant that will facilitate environmental sustainability, reduce the carbon foot print and meet part of the development goals for vision 2030. Priority level of requirements The project management team has to make sure of the availability of the necessary funds to finance the project when various obligations fall due. The management team must procure all the required resources in time. The management should engage a qualified and experienced contractor to oversee the construction of the building. All the deliverables must be met before the project is completed in time Project Scope Statement Product scope description The project entails the construction of a government sponsored, environmental friendly 40m x 80m building to house a recycling plant in Kizad, Abu Dhabi. The project will cost a total of 2.5 million AED and is expected to be complete by September 2014. To this end, the core activities of the project will include receiving capital from government to initiate the project, acquisition of a building permit, acquisition of building materials and machinery to facilitate the construction of the factory and the actual construction. The primary deliverable for the project will be building and completion of the recycling plant. The project completion would be assessed to ensure that the predetermined objectives are fulfilled. Product acceptance criteria The building will only be certified if it meets all the functional, non-functional and quality standards. The project should be finalized within the time stipulated All the deliverables should be met Project deliverables Underground drilling and digging Base layer project Concrete cylinders Concrete walls and roof Project exclusions The project does not include the procurement of factory equipment to start up the recycling plant. The project does not cater for special fittings required for factory equipment installation. Project constraints Costs: The Total Budget for the project should not exceed AED 2.5 million. Time: Construction of the building must be finalized before September 2014 Space: The dimensions of the building should be 40m x 80m. Ventilation: To minimize air and noise pollution, the building will require advanced ventilation systems. Legal: The building is bound by Abu Dhabi and international building codes. Project assumptions The resources will be available when they are required. The contractor is experienced, qualified and reliable. All the functional, non-functional and quality standards will be met. Natural calamities such as floods and earthquakes will not occur during the construction period. The actual costs will not deviate substantially from the cost estimates. Work Breakdown Structure (WBS) 1. Construction of Factory Building 1.1. Receiving Capital from Government to initiate project 1.1.1. Transfer of funds from the government to the project account 1.2. Acquisition of building Permit 1.2.1. Government approval for factory Construction 1.2.2. Submit bond and insurance documents 1.2.3. Prepare and submit project schedule 1.2.4. Prepare and submit a schedule of values 1.2.5. Obtain building permits 1.2.6. Submit preliminary factory blueprint 1.2.7. Submit monthly requests for payment 1.3. Acquisition of building materials 1.3.1. Submit factory blueprint and place orders for Materials 1.3.1.1. Steel 1.3.1.2. Roofing Material 1.3.1.3. Plumbing Materials 1.3.1.4. Electrical fittings and appliances 1.3.1.5. Heating and Ventilation System 1.3.2. Detail, fabricate and deliver steel 1.4. Machinery to assist in building of the factory 1.4.1. Leasing Machinery for Construction 1.5. Designated build up area in Kizad, Abu Dhabi 1.5.1. Install temporary power 1.5.2. Install temporary water service 1.5.3. Set up site office 1.5.4. Set line and grade benchmarks 1.5.5. Erect temporary fence 1.5.6. Clear and grub site 1.5.7. Stone site access and temporary parking area 1.5.8. Rough grade site (cut and fill) 1.5.9. Install storm drainage 1.5.10. Install building fire riser and exterior fire line. 1.5.11. Perform final site grading 1.5.12. Erect building batter boards and layout building 1.6. Foundations 1.6.1. Excavate foundations 1.6.2. Form column piers and spread foundations 1.7. Steel Erection 1.7.1. Erect steel columns, beams and joist - ground floors 1.7.2. Erect steel columns, beams and joist - first floor and roof 1.7.3. Install miscellaneous iron and bracing - first floor 1.7.4. Install stairs and miscellaneous iron railing 1.7.5. Touch-up paint on steel 1.8. Form and Pour Concrete - Floors and Roof 1.8.1. Form First floor including all floor openings 1.8.2. Install rebar and in-floor utilities 1.8.3. Pouring Slab: First Floor 1.8.4. Curing First floor slab 1.8.5. Strip forms from First floor slab 1.8.6. Install rebar and in-floor utilities 1.8.7. Pour roof slab 1.8.8. Cure roof slab 1.8.9. Strip forms from roof slab 1.8.10. Form ground floor 1.8.11. Install electrical underground 1.8.12. Install plumbing underground 1.8.13. Install rebar and in-floor utilities 1.8.14. Pour ground floor slab 1.8.15. Cure ground floor slab 1.8.16. Strip forms from the ground floor slab 1.9. Carpentry Work 1.9.1. Install exterior sheathing and metal studs 1.10. Masonry Work 1.10.1. Rough-in plumbing both at masonry walls and toilets. 1.10.2. Lay masonry at core, mechanical, and toilets 1.10.3. Install exterior masonry work 1.10.4. Install roof drains 1.10.5. Install tile in toilet rooms 1.10.6. Clean masonry 1.10.7. Clean toilet room tile 1.11. Roofing 1.11.1. Install flashing at parapet walls 1.11.2. Pour lightweight concrete roof fill 1.11.3. Install seamless roofing material 1.11.4. Spread stone ballast on seamless roof 1.11.5. Set rooftop equipment 1.12. Window and Doors 1.12.1. Install windows 1.12.2. Install doors 1.13. Building Finishes 1.13.1. Install millwork and wood trim 1.13.2. Paint walls and woodwork 1.13.3. Install conduit at ceiling plenum space 1.13.4. Install duct in ceiling plenum space 1.13.5. Install ceiling grid 1.13.6. Install ceiling tile 1.13.7. Install hardware and accessories 1.13.8. Complete interior and exterior sod and plantings 1.13.9. Pave, curb, and stripe parking lot 1.14. Plumbing 1.14.1. Rough-in plumbing in drywall walls 1.14.2. Set valves and tie-in fire line riser. 1.14.3. Set plumbing fixtures and trim 1.14.4. Flush, test, and clean piping and fixtures 1.15. Electrical 1.15.1. Rough-in electrical in masonry walls 1.15.2. Rough-in electrical in drywall walls 1.15.3. Set area transformer and pull in conduit wire. 1.15.4. Install and terminate electrical devices 1.15.5. Make electrical terminations for Heating and Ventilation equipment 1.15.6. Install light fixtures - test and clean 1.16. Heating and Ventilating 1.16.1. Set equipment in the mechanical room 1.16.2. Rough-in mechanical in masonry walls 1.16.3. Rough-in mechanical in drywall walls 1.16.4. Install duct in building chase 1.16.5. Set heating and ventilation trim and test and balance system 1.17. Final Clean-up and Occupancy 1.17.1. Install hard tile flooring in common areas 1.17.2. Clean hard tile floors 1.17.3. Debris removal from building and performing a final clean-up 1.17.4. Substantial completion date 1.18. Complete Final Inspections 1.18.1. Complete punch list items from all inspections 1.18.2. Obtain a certificate of occupancy 1.18.3. Issue final completion documents including warranties 1.18.4. Issue final request for payment Project Budget According to the 2012 International Construction Cost Survey, the cost per square meter (internal area) of constructing a basic factory building or warehouse in the United Arab Emirates (UAE) is US $ 1, 157 (Turner & Townsend, 32). The total area of the proposed factory building is 3200 square meters. This implies the total cost according to this estimate is US $ 3,702,400 (3,200 × US $1,157). The project was only allocated 2.5 million AED which is equivalent to US $ 680,642.50. For this reason, the assumption is that only a sixth of the 40 by 80 meters piece of land allocated for the factory is covered with the actual plant while the rest of it consists of parking space, loading bays and storage area. Taking this assumption, the building should costs US $ 617,066, which is inclusive of all consultation fees. The difference is used to offset the landscaping cost. The breakdown of these costs is given in appendix 1. Project Risk Project risk can be defined as “the implications of uncertainty about the extent of project performance achievable” (Chapman and Ward, 12). Some of the risks for this project include Failure by the government to release the funds to the project management team in good time hence delaying the commencement of the project. The contractor could also lack the necessary skills and experience to construct a building that meets the quality standards required by the government. Some suppliers could fail to deliver the resources or avail them on the required dates. The occurrence of natural disasters such as and earthquakes, which could interrupt or bring the construction process to a halt. Risks such as natural calamities should be transferred to insurance companies to cover any losses occasioned by their occurrence. Such losses are more often than not too severe to be absorbed by an organization. However, it should be noted that some catastrophic natural calamities are not insurable. The response plan for this risk is very simple as it only involves filling the claim form after the occurrence of the risk, investigation of the claim and compensation. This process could take as little as one month. Project Performance Measurements Even though the actual construction of the building ends much earlier than the stipulated date, inspection and certification is completed exactly one day before the end of September. The actual plant was estimated to cost AED 2.5 million. However, the total cost amounts to AED 2,266,960. Therefore, the cost variance is AED 233,040. Since this variance is channeled to landscaping, it will be much less or even negative. Works Cited Turner & Townsend. “International construction cost survey.” Survey. 2012. Web. 05 Dec. 2013. Turner & Townsend. “International construction cost survey.” Survey. 2013. Web. 06 Dec. 2013. < http://www.turnerandtownsend.com/ICC-2013/_21145.html> Appendix 1 Table 1: Budget Estimates (Turner & Townsend, 49) UAE – international building costs per m2 of internal area Composite AED USD Purchasing power parity Excavate basement (m3) (1,800m3 job) 31 8 18 Excavate footings (m) 31 8 18 Concrete in slab (m3) (1,500m3 job) 472 128 271 Reinforcement in beams (tonne) 4,100 1,117 2,360 Formwork to soffit of slab (m2) 115 31 66 Blockwork in wall (m2) (10,000 block job) 150 41 86 Structural steel beams (tonne) 10,250 2,793 5,900 Pre-cast concrete wall (m2) 666 182 383 Curtain wall glazing incl support system (m2) (1,000m2 job) 1,435 391 826 Plasterboard 13mm thick to stud wall (m2) (3,000m2 job) 123 34 71 Single solid core door incl frame and hardware (50 door job) 3,741 1,019 2,153 Painting to walls primer + 2 coats (m2) 15 4 9 Ceramic tiling (m2) (1,000m2 job) 120 33 69 Vinyl flooring to wet areas (m2) (500m2 job) 110 30 63 Carpet medium tufted (m2) (4,500m2 job) 308 84 177 Lighting installation (m2) (5,000m2+ job) 154 42 88 Copper pipe 15mm to wall (m) (1,000m+ job) 56 15 32 Fire sprinklers (per m2) (5,000m2 job) 130 35 75 Air conditioning incl main plant (m2) (5,000m2+ job) 900 245 518 Labour Group 1 tradesman eg plumber/electrician 31 8 18 Group 2 tradesman eg carpenter/bricklayer 31 8 18 Group 3 tradesman eg carpet layer, tiler, plasterer 29 8 17 General labourer 15 4 9 Site foreman 77 21 44 Material Concrete 30 MPa (m3) (1,500m3 job) 256 70 147 Reinforcement bar 16mm (tonne) (120 tonne job) 2,973 810 1,711 Concrete block (400x200) per 1,000 (>10,000 block job) 3,588 978 2,065 Standard brick per 1,000 2,563 698 1,475 Structural steel beams (tonne) (100 tonne + job) 5,638 1,536 3,245 Glass pane 10mm tempered (m2) 656 179 378 Softwood timber for framing 100mm x 50mm (m) 13 4 7 13 mm plasterboard (m2) 10 3 6 Emulsion paint (litre) 60 16 35 Copper pipe 15 mm (m) (1,000m+ job) 12 3 7 Copper cable (m) (3C + E, 2.5mm PVC) (100,000m+ job) 3 1 2 Plant Hire 50t mobile crane + operator (day) 6,606 1,800 3,802 Market: getting warmer Tendering: lukewarm Cost escalation: 2% Contractors’ margin: 8% Preliminaries: 12% Read More