Project Management: Requirements of Construction Projects - Essay Example

CONSTRUCTION PROJECT MANAGEMENT INTRODUCTION This report contains material, which advices the client, ly, Hi- Rize Developers 2007, on construction management of their proposed construction of an office development. Construction projects are usually complex requiring significant management skills, co ordination of a wide range of people with different expertise and ensuring completion within the parameters of time, value and necessary specifications (Pete McGarvey, 2002). In assessing the need for providing the best to the client, the key questions that are to be answered are, Why a project manager is required? Who can be the project manager? What are the procurement methods? Which method is appropriate for this project? What is the schedule of the project completion? How can the project be done efficiently? The answers to these questions depend on various processes involved in the construction project carried out by different personnel. A considerable amount of planning is to be done in a construction project and the workforce consists of people of different expertise. This necessitates a ‘leader’ to be appointed for the temporary team of different people, whose sole objective is to fulfill the client’s requirements. Section-1 of the report deals with the reasoning as to why a client’s project manager has to be appointed. Section-2 suggests the form of procurement method that is appropriate for this project. Finally, Section-3 shows a graphical representation of the schedule of the pre- construction phase. 1. SELECTION OF PROJECT MANAGER Successful project management is the process of planning, organizing, directing and controlling the elements of the project to meet the project needs (T. C. Cornick, James Mather, 1999). Managing the construction project is about managing the project information and communication flow. (The Evolution of Project Management in Construction Projects) Project managers can come from a variety of backgrounds, but will need to have the necessary skills and competencies to manage all aspects of the project from inception to occupation. This role may be fulfilled by a member of the client’s organization or by an external appointment (Pete McGarvey, 2002). The client’s project manager whether ‘in-house’ or externally appointed, is the person to take the role of directing and managing the temporary ‘organization’, the sole purpose of which is to fulfill the client’s project objectives (T. C. Cornick, James Mather). The importance of deploying competent personnel with the correct skills to manage projects cannot be over emphasized. It is a key issue in minimizing risks to successful project delivery. Management ability is a skill which is characterized of the following skills (Construction Works Procurement Guidance); Decisiveness Communication Motivation skills Team building Assertiveness Negotiation skills Objective setting Creating and distributing knowledge in construction projects is strongly depending on the project manager (Ingeborg Knauseder). The construction of an office development, like any other construction project, involves a lot of planning activity. All personnel involved like the labor, carpenter, mason, project sponsor, client advisor, and architect have to be coordinated and there is a need for a person to take up the responsibility of establishing an effective channel of communication between all the individual entities. The project manager will decide on who does what, when, at what cost and at what specification. In relation with this project, the duties of the project manager (Guide to hiring a project manager) can be summarized as follows; i. Planning ii. Submitting a proposal iii. Resource allocation iv. Cost estimation v. Supervision and coordination vi. Assignment of tasks vii. Feedback The resource demand for a project manager can be assessed based on the project complexity, size and duration, and the contract value of the project. The graph below (Supplementary Guidance on Role of Project Sponsor) has been obtained based on previous experience on building projects. In the graph above, the contract value has been assumed to vary directly in relation with the size and duration of the project. The construction of an office development can be considered a project of medium complexity. The complexities begin right from the start of the project as the results of the site investigations show that laying the foundations will be relatively difficult on this particular location. This project would cost about 5m ₤ and the demand for project manager is approximately 105%. Thus we can ascertain the need of a project manager for this project. Unless the project manager can represent the client as a natural extension of his own project organization and act with knowledge and the authority of that organization, he is in the same position as the newly appointed architect or consultants. The appointment of an outside project manager by a well intentioned client can have the effect of creating a barrier which actually inhibits access to the right information at the crucial point of the exploratory process (Ronald Green, 2001). Hence, it is recommended that the project manager should be a representation of the client’s organization so that there is smooth transference of information. 2. PROCUREMENT METHODS The next section concerns with the selection of an appropriate procurement route. Procurement refers to the ordering, expediting and delivering of key project equipments and materials, especially those that may involve long delivery periods (The Evolution of Project Management in Construction Projects). Procurement can be defined as an amalgam of activities undertaken by a client in order to obtain a new building and includes processes that seek to place risks and obligations to various parties to the project. Although there are several forms of procurement, the two main forms of procurement available for the execution of this project are; Traditional procurement method Design & Build method TRADITIONAL METHOD: A traditional procurement is one in which the design of the building is carried out by a separate contractor while a different contractor is commissioned to construct the specified design. Generally, the traditional procurement route is the slowest of the procurement methods, since the entire design and specifications are to be given before inviting tenders for construction contracts (Rowlinson. S. and McDermott, P. 1999). The bills of quantities are given beforehand, from which the construction contractor will price the building. The traditional approach involves a detailed process which is often too complex for simple projects. DESIGN & BUILD METHOD: In this method, a single contractor designs and constructs the building based on the client’s requirements. The contract is made on a guaranteed maximum price, which also includes the price risks estimated by the contractor. The design and build approach is usually quicker (Procurement Philosophy for Swindon New Central Library 4.1.1) because the contractor will be undertaking the design work early. This approach is ideal for simple projects but this does not have to mean that it is unsuitable on complex projects. However, on projects where items of monetary value like the building frontals or window dressings are dependent on planning conditions, this method will not allow the contractor any design input. Under a competitive design and build procurement route the contractor will look for using economic materials, which therefore causes the loss of control over the quality by the client, unless the build quality and looks are expressly stated. Price comparison between the traditional and D&B routes: In the ‘traditional’ method the contractor, as stated before, will price the construction based on the pre-priced estimates of the bills of quantities. The risk of estimation will be on the contractor while the risk of the design will remain with the client. But it should be noted that the preparation of bills of materials can highlight the design errors and omissions which further would give time for the architect and quantity surveyor to review the design (Shirley J Hansen, 2006). In the design and build method, the contractor will provide a lump sum for all the work after including contingencies. Since the project risks are transferred to the contractor, a much greater cost certainty (Procurement Philosophy for Swindon New Central Library. 4.3.1) is obtained with this method over traditional procurement method. The key feature of the traditional approach of procurement is that the design of the final appearance will be controlled by the client (John Murdoch, 2000), unlike as in the design and build approach. recommendation: A prestigious office development will involve significant design efforts and time spent in exploring the alternate ways of procuring the end product. Further, since no vehicle access is possible except from Ascot road, the client would want to discuss with the designer how the building should look like, while providing good accessibility at the same time. In order to achieve a robust design without compromising on the aesthetics of the building, it would be better if the client can have the control on the design, choice of materials and material quality, which is possible by adopting the traditional procurement route. The bill of quantities (Procurement of Works- Section VIII. Bill of Quantities) for this project should include, based on the design provided by the architect, the following elements as shown below. SAMPLE BILLS OF QUANTITIES: ITEM DESCRIPTION UNIT QUANTITY RATE (in ₤) per unit TOTAL 1 2 3 4 5 SITE WORK General conditions Trash enclosures Clearing and grading Drainage Site concrete Sub base paving Building pad stabilization Site utilities Site electric-lighting Signage Landscape & irrigation Contingency MATERIALS Cement Mild steel reinforcing bar up to 16mm diameter Fine aggregate for concrete EQUIPMENT Excavator, face shovel or dragline Up to and including 1 m3 over 1 m3 to 2 m3 Above 2 m3 Tractor with bull dozer Up to 150 KW Over 150 to 250 KW Over 250 KW Tractor with ripper Up to 200 KW Over 200 KW SOFT COSTS Legal Travel Construction management fee Appraisal Survey Environmental insurance GENERAL CONTINGENCY Sum Sum Sum Sum Sum Sum Sum Sum Sum Sum Sum Sum t t m3 hours hours hours hours hours hours hours hours sum sum sum sum sum sum sum 1 1 1 1 1 1 1 1 1 1 1 1 200 100 1000 500 400 100 500 400 100 500 200 1 1 1 1 1 1 1 35000 9000 20000 20000 35000 15000 10000 20000 20000 15000 20000 40000 1000 - - - - - - - - - - 40000 800 7500 2500 5000 30000 30000 35000 9000 20000 20000 35000 15000 10000 20000 20000 15000 20000 40000 200000 - - - - - - - - - - 40000 800 7500 2500 5000 30000 30000 Once the design of the building is provided, the above given bill of quantities can be suitably modified and listed in the tender for contractors. 3. ESTIMATED PRE-CONSTRUCTION SCHEDULE: Scheduling is a key activity during preconstruction stage. Project financing commitment to tenants and market projections all depend on understanding the scheduled start and completion. The only way to accurately predict whether or not the required completion dates can be met is using a schedule. The earlier the dates are projected, the earlier the owner can be making a choice based on those dates (CE-332 Construction Engineering and Management). Pre-construction includes the initial concept and scoping of the work, evaluation of the feasibility of the project, budgeting, and conceptual through final design (Ian A. Street, Joseph W. Wallwork Project Controls in the Pre Construction Phase). The pre-construction schedule usually refers to either the design schedule or the pre-bid schedule. The design schedule is an effective tool in pressurizing the members of the design team to meet their deliverable dates. A pre-bid schedule is frequently issued with the construction bid documents, and is intended to help the bidding contractor visualize the designer’s intent and the owner’s expectations. In addition to providing the owner with an early and summarized view of the project timetable, the development of this schedule also forces the designer to review staging requirements, refine general design concepts, and deal with potential trouble spots prior to bid (Ian A. Street, Joseph W. Wallwork Project Controls in the Pre Construction Phase). The figure below shows a bar chart or Gantt chart (Gantt Charts, 2008) schedule of selected pre construction activities. The chart has been created using Microsoft Excel, with different pre construction activities on the X axis and the probable times for completion in weeks on the Z axis. The chart has been created as a floating bar chart. KEY: PRE CONSTRUCTION ACTIVITIES 1- Statutory clearances 2- Design revision 3- Materials planning 4- Baseline construction schedule 5- Independent cost estimate 6- Project budget 7- Procurement budget 8- Workforce planning 9- Safety planning 10- Administrative submittals 11- Financial closure 12- Detailed engineering The likely time that the pre- construction phase of this project will be over is 16 weeks. This is only the scheduled time, while the actual time maybe greater or lesser in real time, depending on the time taken for clearances to be granted. CONCLUSION: The report has attempted to cover the general aspects of project management and the selection of project managers. Also, traditional procurement route has been recommended for this project, since the design of the multi storey building needs to be as per the choice of the client. Another aiding factor for the choice of procurement method is the site location, which is a strategically prominent place. A separate contractor for design will allow full utilization of the site’s potentials. The architect has been already commissioned and so, based on the bill of quantities provided by the designer, a separate contractor for construction will be able to price the building. The pre construction schedule of the project has been approximately estimated from previous experiences in construction projects. This will help to keep a check on the project progress, since a lapse in schedule can have a financial impact on the project. References Pete McGarvey (2002) Code of Practice for Project Management for Construction and Development, Blackwell publishing. T. C. Cornick, James Mather (1999) Construction Project Teams: Making Them Work Profitably, Thomas Telford publisher. The Evolution of Project Management in Construction Projects http://www.tesisenxarxa.net/TESIS_UPC/AVAILABLE/TDX-0518105-155912//02Nfm02de12.pdf Pete McGarvey (2002) Code of Practice for Project Management for Construction and Development, Blackwell publishing T. C. Cornick, James Mather Construction Project Teams: Making Them Work Profitably. Thomas Telford publisher. p52 Construction Works Procurement Guidance http://www.scotland.gov.uk/Publications/2005/11/28100404/04042 Ingeborg Knauseder, The Client’s Project Manager - a Key-Role for Knowledge Management in Construction Projects http://know-center.tugraz.at/previous/i-know04/presentations/The%20clients%20project%20manager-%20a%20key%20role%20for%20knowledge%20management%20in%20construction%20projects.pdf. Guide to hiring a project manager www.ourproperty.co.uk/guides/project_manager.html Supplementary Guidance on Role of Project Sponsor http://archive.treasury.gov.uk/pub/html/docs/cup/procurement/supp_pgi.pdf Ronald Green (2001), The Architects Guide to Running a Job. Architectural Press The Evolution of Project Management in Construction Projects http://www.tesisenxarxa.net/TESIS_UPC/AVAILABLE/TDX-0518105-155912//02Nfm02de12.pdf Rowlinson. S. and McDermott, P. (1999) Procurement systems: A guide to best practice in Construction, E & F.N. Spon, London. Procurement Philosophy for Swindon New Central Library 4.1.1 http://ww2.swindon.gov.uk/moderngov/mgConvert2PDF.asp?ID=6858. Shirley J Hansen, (2006) Performance Contracting: Expanding Horizons. Fairmont press Inc. Procurement Philosophy for Swindon New Central Library. 4.3.1 http://ww2.swindon.gov.uk/moderngov/mgConvert2PDF.asp?ID=6858. John Murdoch (2000) Construction Contracts: Law and Management, Taylor & Francis publication Procurement of Works- Section VIII. Bill of Quantities http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,contentMDK:20063133~pagePK:84269~piPK:84286~theSitePK:84266,00.html CE-332 Construction Engineering and Management http://www1.gantep.edu.tr/~aoztas/ce332-notes/CHP9-planning.ppt. Ian A. Street, Joseph W. Wallwork Project Controls in the Pre Construction Phase http://www.greyhawkna.com/New%20Folder%20(2)/articles/Project%20Controls%20in%20the%20Pre%20Construction%20Phase.pdf Ian A. Street, Joseph W. Wallwork Project Controls in the Pre Construction Phase http://www.greyhawkna.com/New%20Folder%20(2)/articles/Project%20Controls%20in%20the%20Pre%20Construction%20Phase.pdf. Gantt Charts http://en.wikipedia.org/wiki/Gantt_chart Read More