PROJ6010 Construction Project Management Application

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PROJ6010 Construction Project Management Application

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PROJ6010 Construction Project Management Application

0 Download19 Pages / 4,642 Words

Course Code: PROJ6010
University: Laureate International Universities

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Country: United States

Question:

1 . Critically analyse the construction sector, market and environment to identify the critical factors that impact on global project management process and practice in this market specifically, and develop strategies for addressing these sectoral specificities.
2.Demonstrate mastery in the application of project management tools and techniques within a range of complex construction project management situations.
 
3.Analyse the role of project costs/finances, resource management, health and safety, supply chain logistics and contractual agreements
 
4.Identify and analyse the legal benefits and challenges that Regency Plaza might experience from each of the following types of contracts:
Stipulated or lump-sum contract
Cost of work plus fee contract
Cost of work plus fee with guaranteed maximum price (GMP) contract
Construction management (CM) contract
Design-build or design-and-construct (D&C) contract

Explain what you would do to mitigate any potential challenges of these contract types.
Which of these contracts you would have recommended for this project? Explain why.

Project Pre-Planning (Module 4)

Analyse the major challenges you would need to address prior to beginning construction and explain what you would do to mitigate any of these potential challenges.
Evaluate the most effective approach you would use to meet on-time delivery of your project with low cost and high quality. Use examples to support your evaluation.
Explain how you would organise your project’s costs. In other words, what type of project cost breakdown would you use? Provide examples of categories.
Analyse how you would organise your project’s major deliverables and their components using a Work Breakdown Structure (WBS). Explain the level of detail needed in your WBS and why.

Part C: Controlling Communication (Module 5)

Develop a communications management plan that would provide appropriate project status reports to stakeholders.
Analyse how you would use these reports to address project stakeholder expectations, including your preferred medium.
Analyse the level of detail necessary to regularly make these stakeholder reports.

Answer:

Introduction
This report is focused on a project for construction of Regency Plaza hotel complex and it is the role of contractors as well as the team members to ensure successful completion of the project. It has been found that the project was running behind schedule and over budget due to inadequate budgeting or proper planning. In this report, the analysis is carried out on various contract types to identify a suitable type that will be appropriate for the project. A schedule along with the project costs has been reflected in this report to ensure successful completion of the project. A communication plan has also been prepared to demonstrate how communications will be managed during the project. Further, discussions has been presented on the role being played by different elements in close-out phase of the project.
Part A: Project Contracts
Legal benefits and challenges of different contract types for the project
Stipulated or lump-sum contract
This type of contract shifts all the costs liability from client to the contractor. In this type of contract, the contractor agrees to work according to specific schedule along with usage of a management system for reporting or controlling quality. In this type of contract, the risks that may generate from the client activities get reduced because of the fixed price though this rate can vary based on the type of the industry. This contract is referred to as one of the most easily understandable and accepted contract type. The changes in orders can also be minimized in this contract (Halpin, Lucko & Senior, 2017). The major challenge in this type of contract is that if the contractor bids too low for winning the contract, then strict controls have to implemented to control the time and budget. If the contractor bids too high, then there may be chance of not winning the contract.
Cost of work plus fee contract 
The cost of work plus fee contract is referred to as one of the most conventional contract type as it is much profitable and widely utilized in all type of industries. This type of contract encourages the contactors to undertake certain project or jobs that may be risky for them. It is suitable as there is guarantee that they will receive a set fee for the job also the contractors do not have to be worried for controlling cost of the project. With the help of this approach the contract manager will be able to deliver better quality project to the clients. This contract type is not dependent upon materials and labors (Bajari, Houghton & Tadelis, 2014). This type of contract is always settled at a reasonable and fixed prices to avoid issues of bargaining at a later stage during construction. It saves the overall time and owner also gets benefited by falling within the fixed material and labor time. For any type of incomplete construction project this contract type is helpful.
Cost of work plus fee with guaranteed maximum price (GMP) contract 
Though the Guarantee Maximum Price (GMP) contract an owner can obtain a complete unspent contingency. The owners are allowed to take active participation in the savings and that is not possible in case of the lump sum contract. The owners can successfully maintain the quality of project with the help of this contract as they will become capable of accessing the actual cost (Tran et al., 2018). For both the controversial as well as fast tracking construction projects this contract type is always applicable. The owners become capable of taking much better decision making power eve for the changed orders and relative cost. The contact can be successfully controlled and manage. Moreover, it can be said that this contract includes the cost of work and additionally guaranteed maximum price as per the contract.
Construction management (CM) contract 
This type of written agreement is developed by the owners and establish in between the third party managerial companies and owners. This contract helps to track the project more efficiently. The establishment of the Construction management (CM) contract leads to increase in annual rate of employee turnover. It generates positive and successful employee tax codes, accounting and overall management (Chen et al., 2015). However, an issue that may generate with the usage of this specific contract is lag of privacy.  
Design-build or design-and-construct (D&C) contract 
Different opportunities related to innovation and project delivery can be obtained from the design build or design and construct contract. Due to increasing flexibility as well as advanced risk management strategies the claims numbers get reduced (Chen et al., 2015). Various useful project level change implementation become easier and the overall work burden from the project administrative is diminished.
Mitigation strategy for potential challenges related to the different contract types
Different contract level risks are being identified that are needed to be mitigated to reach the desired project outcomes. The mandatory steps to be followed by the project manager are as follows:

All the details of the insurance and contractual requirements are needed to be reviewed professionally by the contract lead at the project initiation phase.
The contractors need to make sure that all insurance needs are kept in mind before contract bidding (Hughes, Champion & Murdoch, 2015).
It gives the contractor opportunity to measure that whether the requirements are reached or any further clarifications are required.
This type of contract will also help to measure the required rate of additional cost.

Recommendation of contract type for the Regency Plaza Project
For this particular project on construction of Regency Plaza, the most appropriate contract type is the Cost of Work plus fees with a guarantee maximum price contract. Typically, in this type of contract, the investor does not have to invest much alike the actual cost which is incurred for the implementation of a successful project. This type of contract is availed by the contractor then the project owner would get opportunity for sharing the cost savings.
Part B: Project Pre-Planning
Analysis and mitigation of major challenges prior to beginning construction
Before the initiation of any project the construction project head needs to identify and develop accurate project documentation based upon the project planning to avoid all types of functional and operational risks. At the preliminary stage of the project planning the risks those are needed to be addressed for a successful project resultants are as follows:
Inappropriate estimated budget of the project: For avoiding cost relates issues, at the project initiation phase the project manager needs to estimate the complete project budget. The finance manager is responsible to design and develop the fix budget for the project (Clough et al., 2015). The governing body and the project sponsors are always selected based on the total budget estimated for the project. If anyhow it is found that the finance manager fails to estimate the actual project budget then the project will not be able to meet the desired outcomes.
Budget risk mitigation strategies: For ensuring that the project cost is not exceeding the fixed estimation, the finance manager should make a feasibility study before initiating the project. The feasibility report will ensure successful completion of the project (De Sande et al., 2015). For the particular project to construct Regency Plaza, the cost should be estimated regarding interior design, condominium unit’s marketing etc.
Inadequate skills of the project team members: Lack of adequate skill and knowledge is another major issue for projects. For commercial success and competitive advantages the project and overall business the team members must possess enough skills (Rahmani, Maqsood & Khalfan, 2017). If they are found to be not enough skilled then the project will fail to meet the expected outcomes, preliminarily set goals and objectives.
Mitigation strategy: In order to mitigate the skills related issues, the project manager needs to arrange professional training and development program. Not only this but also a completely separate and new project team should be developed for Regency Construction project. For proper time to time reporting to the project manager named Hodgkins, three sales staffs should be hired. An advanced base design should be prepared to make coordination with the condominium unit buyers.  
Most effective approach to meet on-time delivery of the project
Effective project management approaches should be adopted by the project manager along with the project team members to deliver successful and desired outcomes to the project clients. The effective approaches utilized for this project outcome delivery are as follows:
Project plan development based on documentation: Considering the project definition documents the construction project manager should design and implement the project plan. The project managers are responsible to design the project plan in such a way that there is no requirement for major changes in the plan at a later stage (Ogunde et al., 2017). At the initiation phase of the project the overview should include project objectives, scope, goals, aim and project management approaches.
Creating project work plan: After considering all construction instruction the head of the construction project manager should develop the detailed project work plan. The sub activities should follow the main tasks horizontally and these structures become much transparent to the project team members with development of a Work Breakdown Structure (WBS). The project level risks will be completely avoided if a prior project plan is created by the project owner (Leite et al., 2016).
Adoption of proper project management process: Before developing any project plan most suitable project management methodology is required to be identified and adopted by the project manager. In addition to this, use tools and techniques should also be adopted by the project manager while developing the construction project (Ogunsanya, Aigbavboa & Thwala, 2016). The process of project management comprises of different procedures such as communication management, quality analysis, change management, risk assessment etc. In order to meet the project objectives and goals within estimated budget and time the project manager and the project team members need to play active role.
Approval for scope change: Before implementing any change regarding the project contract the project team members should take approval from the project sponsors and project manager. In order to control and monitor the construction project accurately the project manager needs to design the scope management plan properly (Kerosuo et al., 2015). If all the scope change management factors are properly considered by the project manager before implementing the project scope change then all the possible issues and risks that may interrupt the success of the project will be completely resolved.
Supporting example
There are many successful construction projects available all over the world however, the case of Regency Plaza construction has been taken into consideration as an example. All the above mentioned procedures have to be followed accordingly by the construction project manager. It is found that the construction project will meet all clients’ demand and requirements of the owner’s successfully within the estimated budget of $3,718,450.00 and time of 1 year. Not only this but it is also assumed that the Regency Plaza will start gaining more than 10% ROI after 2 years of its inauguration.
Organizing the project costs and project cost breakdown
The project costs will be organized in an efficient manner with the help of breaking down the cost according to various activities. The bottom-up approach has been chosen for this project as it provides accuracy along with detailing of each and every expense that is associated with different activities. The costs for standardized work package and formalized structure has been estimated for organizing the project costs.
The costs associated with the project for construction of Regency Plaza has been demonstrated as below:

WBS

Task Name

Cost

0

Regency Plaza construction project

$3,718,450.00

1

   Phase 1: Initiation

$13,040.00

1.1

      Setting up the project objectives

$1,520.00

1.2

      Preparation of the budget

$3,720.00

1.3

      Bid for the contract

$5,000.00

1.4

      Analysis of present market

$1,200.00

1.5

      Development of marketing strategy

$1,600.00

2

   Phase 2: Planning

$96,130.00

2.1

      Plan for procurement

$3,920.00

2.2

      Plan for stakeholder management

$2,160.00

2.3

      Plan for communication

$1,440.00

2.4

      Preparing the architectural drawings

$5,200.00

2.5

      Designing of blueprint

$83,410.00

2.5.1

         Preparation of the blueprint for construction

$80,050.00

2.5.2

         Review and approval of the blueprint

$3,360.00

3

   Phase 3: Execution

$3,606,880.00

3.1

      Construction works

$2,568,302.00

3.1.1

         Clear site

$3,000.00

3.1.2

         Acquire materials

$477,738.00

3.1.3

         Pour lower concrete

$143,698.00

3.1.4

         Layout of structural foundations

$147,298.00

3.1.5

         Layout of pillars and beams

$218,548.00

3.1.6

         Construction of walls

$218,148.00

3.1.7

         Construction of floor supports

$144,898.00

3.1.8

         Finishing the ground floors

$134,080.00

3.1.9

         Build roof supports

$198,928.00

3.1.10

         Construction of roof walls

$276,978.00

3.1.11

         Building roof ceilings

$276,578.00

3.1.12

         Installation of roof

$324,810.00

3.1.13

         Finalizing the construction works

$3,600.00

3.2

      Plumbing, Electrical and HVAC layout

$746,018.00

3.2.1

         Installation of electrical layout

$178,578.00

3.2.2

         Installation of plumbing layout

$229,520.00

3.2.3

         Installation of HVAC requirements

$336,880.00

3.2.4

         Review of layout works

$1,040.00

3.3

      Interior and Exterior design

$292,560.00

3.3.1

         Designing the exteriors

$143,680.00

3.3.2

         Designing the interiors

$143,680.00

3.3.3

         Review of the design

$5,200.00

4

   Phase 4: Closure

$2,400.00

4.1

      Sign-off from stakeholders

$360.00

4.2

      Post project review

$1,680.00

4.3

      Lessons learnt and documentation

$360.00

Project’s major deliverables and Work Breakdown Structure
The major deliverables are considered as the four phases that are required to complete the construction of Regency Plaza. The major deliverables of the project along with the estimated timeline is presented as below:

Figure 1: Major deliverables of the project
(Source: Created by Author)
The Work Breakdown structure for the project demonstrates the various activities that are included in the deliverables to ensure achievement of the project goals and objectives. The Work Breakdown structure for this particular project to complete the construction of Regency Plaza is presented as below:

WBS

Task Name

Duration

Start

Finish

0

Regency Plaza construction project

218 days

Wed 02-01-19

Fri 01-11-19

1

   Phase 1: Initiation

17 days

Wed 02-01-19

Thu 24-01-19

1.1

      Setting up the project objectives

2 days

Wed 02-01-19

Thu 03-01-19

1.2

      Preparation of the budget

3 days

Fri 04-01-19

Tue 08-01-19

1.3

      Bid for the contract

5 days

Wed 09-01-19

Tue 15-01-19

1.4

      Analysis of present market

3 days

Wed 16-01-19

Fri 18-01-19

1.5

      Development of marketing strategy

4 days

Mon 21-01-19

Thu 24-01-19

2

   Phase 2: Planning

43 days

Fri 25-01-19

Tue 26-03-19

2.1

      Plan for procurement

7 days

Fri 25-01-19

Mon 04-02-19

2.2

      Plan for stakeholder management

6 days

Tue 05-02-19

Tue 12-02-19

2.3

      Plan for communication

4 days

Wed 13-02-19

Mon 18-02-19

2.4

      Preparing the architectural drawings

10 days

Tue 19-02-19

Mon 04-03-19

2.5

      Designing of blueprint

16 days

Tue 05-03-19

Tue 26-03-19

2.5.1

         Preparation of the blueprint for construction

10 days

Tue 05-03-19

Mon 18-03-19

2.5.2

         Review and approval of the blueprint

6 days

Tue 19-03-19

Tue 26-03-19

3

   Phase 3: Execution

153 days

Wed 27-03-19

Fri 25-10-19

3.1

      Construction works

113 days

Wed 27-03-19

Fri 30-08-19

3.1.1

         Clear site

5 days

Wed 27-03-19

Tue 02-04-19

3.1.2

         Acquire materials

9 days

Wed 03-04-19

Mon 15-04-19

3.1.3

         Pour lower concrete

10 days

Tue 16-04-19

Mon 29-04-19

3.1.4

         Layout of structural foundations

10 days

Tue 30-04-19

Mon 13-05-19

3.1.5

         Layout of pillars and beams

10 days

Tue 14-05-19

Mon 27-05-19

3.1.6

         Construction of walls

10 days

Tue 28-05-19

Mon 10-06-19

3.1.7

         Construction of floor supports

9 days

Tue 11-06-19

Fri 21-06-19

3.1.8

         Finishing the ground floors

8 days

Mon 24-06-19

Wed 03-07-19

3.1.9

         Build roof supports

10 days

Thu 04-07-19

Wed 17-07-19

3.1.10

         Construction of roof walls

8 days

Thu 18-07-19

Mon 29-07-19

3.1.11

         Building roof ceilings

10 days

Tue 30-07-19

Mon 12-08-19

3.1.12

         Installation of roof

9 days

Tue 13-08-19

Fri 23-08-19

3.1.13

         Finalizing the construction works

5 days

Mon 26-08-19

Fri 30-08-19

3.2

      Plumbing, Electrical and HVAC layout

15 days

Mon 02-09-19

Fri 20-09-19

3.2.1

         Installation of electrical layout

5 days

Mon 02-09-19

Fri 06-09-19

3.2.2

         Installation of plumbing layout

4 days

Mon 09-09-19

Thu 12-09-19

3.2.3

         Installation of HVAC requirements

4 days

Fri 13-09-19

Wed 18-09-19

3.2.4

         Review of layout works

2 days

Thu 19-09-19

Fri 20-09-19

3.3

      Interior and Exterior design

25 days

Mon 23-09-19

Fri 25-10-19

3.3.1

         Designing the exteriors

10 days

Mon 23-09-19

Fri 04-10-19

3.3.2

         Designing the interiors

10 days

Mon 07-10-19

Fri 18-10-19

3.3.3

         Review of the design

5 days

Mon 21-10-19

Fri 25-10-19

4

   Phase 4: Closure

5 days

Mon 28-10-19

Fri 01-11-19

4.1

      Sign-off from stakeholders

1 day

Mon 28-10-19

Mon 28-10-19

4.2

      Post project review

3 days

Tue 29-10-19

Thu 31-10-19

4.3

      Lessons learnt and documentation

1 day

Fri 01-11-19

Fri 01-11-19

Part C: Controlling Communication
Communications management plan

Purpose

Between

Duration

Medium for Communication

Description

Familiarizing the project team with the desired goals and objectives that will be fulfilled by the project

Project manager and the Project team

1 hour

Face-to-face meetings and Interview sessions
 

The communication of project goals and objectives is necessary to make the project team aware about the achievement that will be acquired from the project.

Approval of the project budget

Finance manager and the Project manager

1 hours

Face-to-face meetings and Presentation

The budget that has been determined from the project has to be approved to ensure that project could completed within estimated budget.

Status reports about the project

Project manager, Project sponsor and the Finance manager

2 hours

Face-to-face meetings and Emails

The documentation of project status should be done on a timely basis and shared within the project team to determine how much work has been completed till date.

Details about the project contract

Contractors and project manager

1 hour

Face-to-face meetings, Presentation and Emails

It is essential that the project contractor is familiar with the desired goals and the project objectives. The awareness of project contractor about the project requirements is essential so that completion of the project could be ensured within the estimated time and budget.

Present Market analysis and competition

Marketing manager and the Project sponsor

2 hours

Conference Meetings and presentations

In this project, the market have to be analyzed for determining the present market status and how much competitive benefit will be achieved from completion of the project.

Analysis on the use of reports to address project stakeholder expectations

Name of the stakeholder

Type of report

Preferred medium for communication

Project manager

Status report of the project

Team meetings, Formal presentations and interview sessions

Finance manager

Budget of the project

Face-to-face meetings and Email communication

Marketing manager

Status report of the project

Face-to-face meetings and Formal Emails

Project Sponsor

Management level reports

Face-to-face meetings, Emails and presentation

Analysis on the level of detail necessary for regularly making stakeholder reports

Name of the stakeholder

Level of detail

Project manager

Plan for the project and schedule of the activities required to complete the project

Finance manager

Cost and budget feasibility of the project to ensure successful outcomes as per desired requirement

Marketing manager

Marketing strategies and analysis of present market status for the project

Project sponsor

Budgetary requirements and financial statements for the project

Part D: Project Close-out
Explanation on the role played by different elements in close-out of the project
Project acceptance – This element in the close-out phase will help the project manager and the team members of the Regency Plaza to agree that the desired requirements has been fulfilled (Mubarak, 2015). This element reflects whether the project has been completed as per the desired criteria and the project objectives or not. At this stage, this element presents that the project should be accepted as the bidder has agreed to fulfill objectives by maintaining the desired quality.
Contract close-out – This element refers to termination of contract for the Regency Plaza construction after immediate completion of the project. In this activity, the sign-off will be done by the contractor along with other stakeholders to approve the closure of contract (Lock, 2017).
Document turnover and archiving – This element will involve preparation and handing over the essential documents after completion of the Regency Plaza project. The technical documents along with the lessons learned report will be stored in appropriate place so that it could be referred to for future projects (Walker, 2015).
Team performance appraisal – This element will comprise of appraising the team members of the Regency Plaza project with certain incentives or award programs and motivate them to perform better in future project.
Team reassignment or demobilisation schedule – This element will involve dissolution of the project team and reassigning them to their previous roles or activities (Alavipour & Arditi, 2018). In this activity, the schedule for demobilizing the team will be prepared so that they could return to their previous roles.
Analysis on the process of coordinating a lessons learned component
The lessons learned component will be coordinated through proper analysis of the information that has been gathered from the case study of Regency Plaza to ensure that future projects could be carried out successfully. The lessons learned from the Regency Plaza project case will be documented as technical document and archived so that it could be used as reference for future projects.
Conclusion
From the overall report, it can be concluded that it is the role of contractors as well as the team members to ensure successful completion of the project. The process of project management comprises of different procedures such as communication management, quality analysis, change management, risk assessment etc. In order to meet the project objectives and goals within estimated budget and time the project manager and the project team members need to play active role. It has been found that the project was running behind schedule and over budget due to inadequate budgeting or proper planning. Therefore, it has been determined that Cost of Work plus fees with a guarantee maximum price contract is suitable for the project. From the developed schedule, it has been found that the project will require 218 days to complete with a cost of $3,718,450.00. Planning is required for successful completion of the project and the schedule have to be followed so that the desired goals and objectives could be met.
References
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Chen, Q., Jin, Z., Xia, B., Wu, P., & Skitmore, M. (2015). Time and cost performance of design–build projects. Journal of Construction Engineering and Management, 142(2), 04015074.
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