CONSTRUCTION PROJECT MANAGEMENT

Dr. K. N. SatyanarayanaBuilding Technology & Construction Management Division

Department of Civil EngineeringIndian Institute of Technology, Madras

satyakn@iitm.ac.in

Infrastructure investment as a % of GDP

201213 201314 201415 201516 201617 Total Twelfth plan7.2

7.4

7.6

7.8

8

8.2

8.4

8.6

8.8

9

7.4

7.62

7.95

8.38

9

8.18

Investment as a % of GDP

Source: CPC - Twelfth five year plan (2012 -2017) volume 1

Required Investment in Infrastructure Sector

Source: CPC - Twelfth five year plan (2012 -2017) volume 1

Category Amount (in Lakh Cr INR)

%

Electricity 15.02 27%Renewable 3.19 6%Roads 9.15 16%Telecommunications 9.44 17%Railways & MRTS 6.43 12%Irrigation & Water 7.60 14%Ports & Airports 2.85 5%Oil & Storage 2.07 4%

Grand Total 55.75 100%

Roads

Airports

Ports

Power

Urban Infrastructure

Real Estate

Special Economic Zones

IT Parks

Corporate Campus for TCS Will house around 20,000 workers 12 glassy buildings relying on natural

light Step like structure evokes traditional

South Indian temples

Tower will be highest in South India International project team consisting

of architect Carlos Ott, Carlos Ponce De Leon, Uruguay and C R Narayana Rao, Chennai; consultatt TCE, India; and contractor L&T, India

Expected to be completed in 2008

Courtesy: Site office

TCS Technopark, Chennai

Future Development of Indias Construction Industry

India GDP

Construction Growth

Construction industry will exceed the overall GDP growth

http://www.bcindia.com/en/p.21730941/Exhibitors/India

India's Construction Spending Outlook

(IHS 2010) IHS Global Insight - India construction: importance of infrastructure construction in India

Global Construction Market

Source: Holcim Ltd. - Helvea Swiss Equities Conference, January 2012

All figures in percent

Source : Global Construction Study, Global Insight, Inc.

The Construction Market 2003 Growth & Risk

Construction Market in India

Currently 4th largest in the world (after US, China & Japan)

Value in Year 2010 - $360 billion Expected in Year 2020 - $840 billionGovernments Infrastructure Budget for 12th 5 Year Plan (2012-17) - $1 trillion

4 Key Segments Housing (67%), Infrastructure (13%), Commercial (11%), Industrial (9%)

Source: Business Standard, March 27, 2012

Indian Construction Industry - Overview

Share of Construction in GDP 7.40% (2012-13)

Total Construction Workforce 31.5 million Engineers 2.65% Sub-Engineers 1.85% Skilled 10.57% Unskilled 82.45% (Predominantly migrant, about 1/3 women)

27,770 enterprises

Planning Commission, Government of India, Twelfth five year plan (2012-17), Vol 1, Oxford University Press, New Delhi, 2008.

Source: RICS Research Real Estate and Construction Professionals in India by 2020

19Source: RICS Research Real Estate and Construction Professionals in India by 2020

Possible work areas Design Construction Planning Project Development Project Management, Contract Management Building services, Facilities management Development of software for Structural analysis & design, CFD, Geo-mechanics, Project management, EIP,. Project Financing- BOT type projects, Risk Management Supply Chain Management Plant & Machinery Banks Engineer, Lenders Engineer Arbitrator Training of staff & workmen, construction skills development Safety Management Safety, Environment & Health Quality Management Technical Writer !!!

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Indian Construction Industrys Current Status

Many small size companies with a few companies with modern management and technical skills (28,000 companies + Individual Builders)

Over employment and low productivity

Age old construction methods

Large time and cost overruns in public projects, in general

Scarcity of project managers and construction managers

Lack of trained workers

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Poor safety standards

Quality only good by exception

Lack of planning and monitoring

Standards conservative - resulting in higher consumption of materials

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International Comparison

Largest Indian company only 35th in the world ranking

Very large consulting engineering firms with latest knowledge and skills Standardization high pre-engineered structure usage high and catalogue

products

EPC / Design & Build / Turnkey contracts specialized in each industry / infrastructure

Prefabricated steel and Pre-cast concrete products or usage of ready-mix

System formwork

Meticulous planning

Techno Economic Indices guide

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Specialist / General contractor

High labour costs per man-hour but high productivity due to mechanization and better methods

o For example: 100 man-hours for 100 m2 flat formwork

o 0.2 man-hours / sq.m of formwork

o Cost of concrete / m3 not much different

Good organization and management

Focus on work preparation and pre planning

Better management skills and practices

Contract terms (FIDIC fair)

High productivity and safety record

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Highly skilled and specialized manpower

Quality assurance and control

IT systems for PM and monitoring review

Good supply chain management and procurement due to scale of operations and global reach

First time right and no rework

Construction Projects Participants

Owner Architect/Engineer Contractor Materials and Equipment Suppliers Subcontractors Regulatory Agencies Consultants technical, legal, financial

CONSTRUCTION PROJECT MANAGEMENT

Managing a construction project is different from managing a continuously running organisation like a factory or hospital

A project has distinct beginning and end Project management involves

>> Planning>> Executing>> Controlling

PROJECT MANAGEMENT TEAM OBJECTIVE

The completion of project within specified cost limits The completion of project within specified time limits

Construction to specified standards

Meeting the clients functional requirements

Minimise adversarial relationships between project participants

Preservation of health and safety of the people involved

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Science of Project Management

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Project Management Techniques/Skills

Topics covered in Construction Management

Planning and Control Time and Cost Construction Contracts Personnel Management Quality Management Safety Management Materials Management Productivity Improvement Financial Management Computer Applications

GANNT CHART (BAR CHART)

Network Diagram

Architect: Jorn Utzon

Construction: 1957 to 1973

Initial budget: $5 million

Final cost: $120 million

http://www.twf.org.au/research/drew3.html

Huge Losses in India due to Project Delays

The ministry of statistics and programme implementation has a division governed by it called the Infrastructure and Project Monitoring Division.

The latest notes prepared by the division highlighting the implementation status of projects and performance of 11 infrastructure sectors is a sad saga of government delays and colossal waste of public money.

The division has 605 projects worth Rs 267,815 crore (Rs 2,678.15 billion) on the monitoring system on which Rs 105,146 crore (Rs 1,051.46 billion) have already been spent.

Out of these 605 projects, around 248 projects are way behind schedule. Another 149 projects, though approved, have not even been commissioned, and 46 other projects are waiting for the updating of their completion schedule.

Merely 22 projects are ahead of schedule, while 14 are on schedule.

The overall cost overrun with respect to original cost is 21.5 per cent, mainly because of delays, which range from one month to 13 years!

http://us.rediff.com/money/2004/nov/05spec.htm

Safety

Tragedy at Tehri PURNIMA S. TRIPATHI

at the Tehri dam site An accident in a tunnel under construction at the Tehri dam site claims the lives of

about 30 workers.

PICTURES: SANDEEP SAXENA

A view of the 2,400 MW Tehri hydel project with the vertical shaft in the foreground, where the landmass caved in.

http://www.frontlineonnet.com/fl2117/stories/20040827003003300.htm

2 killed, many injured as fly-over scaffolding crashes in Hyderabad PHOTO : P.V. Sivakumar

BOLT FROM THE BLUE: The heavy scaffolding of the Panjagutta flyover under construction collapsed on Sunday after heavy rain, crushing vehicles. HYDERABAD: Two persons were killed and scores injured as the scaffolding of a fly-over under construction caved in near Panjagutta cross roads on Sunday evening, even as heavy rain lashed the twin cities disrupting normal life.Date:10/09/2007 URL: http://www.thehindu.com/2007/09/10/stories/2007091057640100.htm