Major Project Project Mgt

8/3/2019 Major Project Project Mgt.

http://slidepdf.com/reader/full/major-project-project-mgt 1/26

TABLE OF CONTENTS

Sr.

No:Topic’s Name: Page No:

1) Acknowledgment:

2) Executive Summary:

3) Purpose of the Project:

4)Scope Statement; Exclusion &

Deliverables:5) Resources Requirement:

6) Financial Requirement; HR & Technical

7) Feasibility; All types

8) Cost & Time Estimation:

9) Work Down Break Structure (WBS):

10) Network Diagram:

11)Risk Mgt. Process; i.e. Risk Factors &Mitigation:

12) Recommendation:

13) Key Success Factors of the Project:





Project Management

Executive Summary:

The objective of this report /study is primarily to facilitate

potential entrepreneurs to facilitate investment and provide

an overview about construction of New Hostels Intuitions /

University The Feasibility Study is the preliminary study that

determines whether a proposed systems project is technically,

financially, and operationally viable. Generally, a feasibility

study precedes technical development

and project implementation. The capital cost for a

construction project includes the expenses related to the

initial establishment of the facility. The owner is interested in

achieving the lowest possible overall project cost that is

consistent with its investment objectives. In most construction

budgets, there is an allowance for contingencies or

unexpected costs occurring during construction. As

construction projects become larger and more complex, so do

the risks associated with them. The sheer size, scope, and

timing of today's projects pose significant risk management

challenges, including identifying risks, determining the

allocation of risks among the parties involved, developing

mitigation and risk treatment plans and opportunities for cost

savings in single project applications or across an entire

portfolio of projects.

Because of the increasing complexity and size of project risks,

sponsors must view risk on an enterprise-wide project or

portfolio basis to properly and consistently identify risks,

develop optimal risk allocation strategies, and, if necessary.

To mitigate the risk; the Project Manger’s has extensive,

process-driven strategies and tools designed to manage and

monitor risks from a project's earliest stages to the final

delivery and commissioning.

3



Project Management

Purpose of this Project:

The objective of this report /study is primarily to facilitate

potential entrepreneurs to facilitate investment and providean overview about construction of New Hostels Intuitions /

University.

The project may form the basis of an important investment

decision and in order to serve this objective, the document

covers various aspects of Hostel construction concept

development, start-up, and production, marketing, finance

and business management. The document also provides

sectoral information, brief on government policies and

international scenario, which have some bearing on the

project itself. This particular report which comes under

“Construction and Real Estate” sector.

4



Project Management

1. Scope:Negotiation with the owners of land and search of location is

carried out carefully. Planning regarding collection of

materials, labours and other equipments which are required

for the project is completed. Building of hundred meters long,

twenty meters in floor, 8 and 6 feet step wise width and

twelve feet high flood protection wall at nearby City University

of Science & Information Technology (CUIST), Peshawar in 12-

months in this main them to improve the Education level of

the society in the region.

1.1: Goal of the Project:

To construct a well furnished era of the technology

hostel of composed of 100 Rooms for City University of

Science & Information Technology (CUIST), Peshawar.

To construct a high-quality, hostel within 12

months at cost not to exceed Rs. 20,000,000

1.2: Objectives of the Project:

To complete search for the location of area, where

hostel to be constructed within 30-days, after approval

of the project.

To advertise and select the Constructer, within 15-

days after the searching of appropriate area.

To construct the building for hostel within 7-

months after approval from Government agency / body.

To complete the furnishing of hostel within 3-

months after construction of hostel building.

5



Project Management

1.3: Deliverable of the Project:

1.3.1: Intermediary deliverables:

Survey for the selection of suitable/ feasible

place for the construction. Short listing of marked

places.

Result of Law and Investigation.

Selection of delivery.

1.3.2: Final Deliverables

Digging place for the construction.

Collecting of materials for the construction.

Hiring labours for the constructions whosesufficient experienced

6



Project Management

2. Feasibility:

The Feasibility Study is the preliminary study that determines

whether a proposed systems project is technically, financially,and operationally viable. The Alternatives Analysis, usually

included as part of the Feasibility Study, identifies viable

alternatives for the system design and development. Between

them, the documents provide:-

An analysis of the system objectives, functional

requirements, and system design concepts;

A determination of the feasibility of applying

automated systems to effectively, efficiently, and

economically improve program operations;

An evaluation of alternative approaches for

reasonably achieving the objectives and goals; and

Identification of a proposed approach.

A feasibility study is an evaluation of a proposal designed to

determine the difficulty in carrying out a designated task.

Generally, a feasibility study precedes technical development

and project implementation. In other words, a feasibility study

is an evaluation or analysis of the potential impact of a

proposed project. Feasibility, perhaps the most inclusive is to

do the assessment by constraint category. Common constraint

categories include the flowing:-

2.1: Technical Feasibility

Technically this project is feasible; because it may

provide accommodation for the student of City

University of Science & Information Technology (CUIST),

Peshawar. City University uncovered area / spare area is

7

http://en.wikipedia.org/wiki/Evaluation

http://en.wikipedia.org/wiki/Project

http://en.wikipedia.org/wiki/Evaluation

http://en.wikipedia.org/wiki/Project



Project Management

suitable place for this purpose and the equipments that

are required for the project are also available and there

is no short coming of any thing. The project can fulfill all

the needs.

2.2: Financial Feasibility

Financial resources that are required for the project are

enough. The operating cost of the project is reasonable

and there is sufficient fund for the project. So financially

this project is feasible.

3.3: Operational Feasibility

Operationally this project is feasible because

operationally the ways for proposals bids are created

and there is no deficiency exists.

3.4: Geographic Feasibility

Geographically this project is feasible because all the

resources and materials that are required for the project

are available at the same place and there is no

disbursement of activities, so it is feasible

geographically.

3.5: Time Feasibility

The most important thing is time feasibility; but as for

as this project is concerned it is timely feasible;although it is lengthy project and it will take up to 12- 14

Months maximum time and if two or three months gape

occurs we can cover that through slack time which is

possible.

8



Project Management

3.6: Resource Feasibility

Resource wise this project is feasible because we have

enough resources which are available easily and there is

no hurdle in it.

3.7: Legal Feasibility

To determine whether the proposed system conflicts

with legal requirements; legally this project is feasible

because this project is approved by the Government of

Pakistan; and other Government Agencies and legally

documented. There is no legal constraint for the project.

8.3: Political Feasibility

As for is the political feasibility is concerned there is not

such thing in the project that can create a political

conflict. So we can say that this project is feasible

politically.

9



Project Management

4. Resources Requirement:

4.1: Financial Requirement:

Project Investment

The total cost of the project is Rs. 20.00 million

Capital Investment: 5.00 million

Working Capital Requirement: 15.00 million

Total Investment: 20.00 million

The proposed pre-feasibility is based on the assumption of 50% debt

and 50% equity. However this composition of debt and equity can

be changed as per the requirement of the investor

Debt: 50%

Equity: 50%

Total Project Investment: 100%

4.2: Human Requirement:

4.2.1: Skilled Labours

4.2.2: Unskilled Labour

4.3: Raw Material Requirement

Following raw materials would be required for thecontraction of the hostel:-

• Bricks

• Crush

• Steel

• Mud

•

Cement

10



Project Management

• Floor Tiles

• Bath Room Fittings

• Cupboards

• Lighting Accessories

• Sewerage and water Supply Pipes

• Dedex Pipe

• Steel Doors and Grill

• Win Bard

• Chipboard

• Glass

• Varnish

• Paints

• Hardware

• Wires

• Misc. Electrifications Equipment

• PVC Pipes

4.4: Machinery Requirement

All the required machinery i.e. Mixer, Lifts etc would be

purchased for this purpose; although they available on too,

but the rental expenses are too much high, therefore, it is

proposed that such sort of machinery should be purchased.

4.5: Material Cost Calculation:

Material Cost:

Sr. No: Material: Rs. Unit:

1. Bricks 3,600 Thousand

2. Sand: 2,200 Truck (350 cbft)

11



Project Management

3. Crush 20 Cubic ft

4. Steel 40 Kg

5. Cement 230 Bag

6. Mud 800 Trolley

7. Title: 4,500 Thousand

8. Grills including labour 250 Sq ft

9. Gate including Labour 250 Sq ft

10. Glass 50 Sq m

11. Tile for Front: 800 Sq m

12. Door: 150 Sq ft

13. Wood 60 Sq Ft

14. Lamination: 2000 Per Sheet

15. Chipboard: 700 Per Sheet

16. Ply: 300 Per Sheet

12



Project Management

6. Estimation Cost & Time of the Project:

The costs of a constructed facility to the owner include

both the initial capital cost and the subsequentoperation and maintenance costs. Each of these major

cost categories consists of a number of cost

components.

The capital cost for a construction project includes the

expenses related to the initial establishment of the

facility:

• Land acquisition, including assembly,

holding and improvement

• Planning and feasibility studies

• Architectural and engineering design

• Construction, including materials,equipment and labor

• Field supervision of construction

• Construction financing

• Insurance and taxes during construction

• Owner's general office overhead

• Equipment and furnishings not included

in construction

• Inspection and testing

The operation and maintenance cost in subsequent years

over the project life cycle includes the following expenses:

• Land rent, if applicable

13



Project Management

• Operating staff

• Labor and material for maintenance and

repairs

• Periodic renovations

• Insurance and taxes

• Financing costs

• Utilities

• Owner's other expenses

The magnitude of each of these cost components

depends on the nature, size and location of the project

as well as the management organization, among many

considerations. The owner is interested in achieving the

lowest possible overall project cost that is consistent

with its investment objectives.

It is important for design professionals and construction

managers to realize that while the construction cost

may be the single largest component of the capital

cost, other cost components are not insignificant. For

example, land acquisition costs are a major

expenditure for building construction in high-density

urban areas, and construction financing costs can

reach the same order of magnitude as the construction

cost in large projects such as the construction of

nuclear power plants.

From the owner's perspective, it is equally important to

estimate the corresponding operation and maintenance

cost of each alternative for a proposed facility in order

14



Project Management

to analyze the life cycle costs. The large expenditures

needed for facility maintenance, especially for publicly

owned infrastructure, are reminders of the neglect in

the past to consider fully the implications of operation

and maintenance cost in the design stage.

In most construction budgets, there is an allowance for

contingencies or unexpected costs occurring during

construction. This contingency amount may be

included within each cost item or be included in a

single category of construction contingency. The

amount of contingency is based on historical

experience and the expected difficulty of a particular

construction project. For example, one construction

firm makes estimates of the expected cost in five

different areas:

• Design development changes,

• Schedule adjustments,

• General administration changes (such

as wage rates),

• Differing site conditions for those

expected, and

• Third party requirements imposed

during construction, such as new permits.

Contingent amounts not spent for construction can be

released near the end of construction to the owner or to add

additional project elements.

15



Project Management

Proje

ctCost:

Rs.20

,000,000

Projec

tCost:

Rs.20,

000,000

Initiation

35%

Rs.7,000,000

Initiation

35%

Rs.7,000,000

Concrete

5%

Rs.1,000,000

Concrete

5%

Rs.1,000,000

Farming

8%

Rs.1,600,000

Farming

8%

Rs.1,600,000

Plumbing

10%

Rs.2,000,000

Plumbing

10%

Rs.2,000,000

Electrical

12%

Rs.2,400,000

Electrical

12%

Rs.2,400,000

Inertial

15%

Rs.3,000,000

Inertial

15%

Rs.3,000,000

Roofing

15%

Rs.3,000,000

Roofing

15%

Rs.3,000,000

Procurementof

Land

70%

Procurementof

Land

70%

Architecture

Design

2%

Architecture

Design

2%

Procurementof

Material

28%

Procurementof

Material

28%

PourFoundation

50%

PourFoundation

50%

InstallTerrace

30%

InstallTerrace

30%

PourStairway

20%

PourStairway

20%

FrameExterior

Wall

25%

FrameExterior

Wall

25%

FrameInterior

Wall

35%

FrameInterior

Wall

35%

InstallRoofing

Tresses

40%

InstallRoofing

Tresses

40%

InstallWater

Lines

30%

InstallWater

Lines

30%

InstallGasLines

30%

InstallGasLines

30%

InstallFixtures

40%

InstallFixtures

40%

InstallWiring

25%

InstallWiring

25%

InstallSwitches

35%

InstallSwitches

35%

InstallFixtures

40%

InstallFixtures

40%

InstallDrywall

20%

InstallDrywall

20%

InstallCarpet

40%

InstallCarpet

40%

InstallPainting

40%

InstallPainting

40%

InstallFelt

50%

InstallFelt

50%

InstallShingles

30%

InstallShingles

30%

InstallGateway

20%

InstallGateway

20%

Appropriation Method of Allocating Project Costs Using the Work down Structure (WBS)

16



Project Management

7. Work Breakdown Structure (WBS):

A key strategy of effective planning is to partition the project

into manageable chunks that can be individually plannedestimated and controlled. The work breakdown structure is a

graphical tool that displays the project's statement of work

making it easier to understand and communicate. It is

employed from the earliest stages of project planning.

The work breakdown structure (WBS) is a powerful tool for

expressing the scope or extent of a project in simple graphic

terms. It represents the project in terms of the hierarchy of

deliverables and services it will produce. The project is

therefore described just as a manufacturer would document

the bill of materials breakdown for a washing machine or

automobile. The WBS starts with a single box at the top which

represents the whole project. The project is then partitioned

into its components with lower level boxes. The WBS supports

the principle of management by deliverables providing a map

of what is to be produced.

7.1 WBS ROLE

The role of the WBS is to:

Partition the major projectdeliverables into smaller components toimprove the accuracy of cost estimates

Provide a mechanism for collectingand organizing actual costs

Provide a mechanism forperformance measurement and control

Note that the WBS provides a simple map of what is to be

produced. It does not deal with schedules and therefore has

17

http://www.chambers.com.au/glossary/man_del.htm

http://www.chambers.com.au/glossary/man_del.htm



Project Management

no time dimension. It is however used as entry criteria for

schedule development.

7.2 WBS for Construction of 100 Rooms:

A: INITIATION:

A1: Procurement of Land:

A2: Architecture Design:

A3: Procurement of Materials:

B: CONCRETE:

B1: Pour Foundation:

B2: Install Terrace:B3: Pour Stairway:

C: FORMING:

C1: Frame Exterior Walls:

C2: Frame Interior Wall:

C3: Install Roofing Tresses:

D: PLUMBING:

D1: Selection of Plumber:D2: Plumbing Contract:

D3: Install Water Lines:

D4: Install Gas Lines:

D5: Install Fixture:

E: ELECTRICAL:

E1: Furnishing Plane:

E2: Install Wiring:

E3: Install outlet:

E4: Install Fixtures:

F: INTERIOR:

F1: Install Drywall:

F2: Install Carpet:

F3: Install Painting:

G: Roofing:

G1: Install Felt:

18



Project Management

G2: Install Shingles:

G3: Install Gateway:

19



Project Management

7.3: Activities; Predecessors etc:

SR. NO: ACTIVITY:PREDECESSOR

S:

A: INITIATION:

A1: Procurement of Land: -

A2: Architecture Design: -

A3: Procurement of Materials: -

B: CONCRETE:

B1: Pour Foundation: A1, A2, A3

B2: Install Terrace: B1

B3: Pour Stairway: B1

C: FORMING:

C1: Frame Exterior Walls: B1

C2: Frame Interior Wall: C1

C3: Install Roofing Tresses: C2, D2, D3, D4

D: PLUMBING:

D1: Selection of Plumber: B1

D2: Plumbing Contract: D1

D3: Install Water Lines: D1

D4: Install Gas Lines: D1

D5: Install Fixture: D1

E: ELECTRICAL:

E1: Furnishing Plane: C3

E2: Install Wiring: E1

E3: Install outlet: E2

E4: Install Fixtures: E3

F: INTERIOR:

F1: Install Drywall: E1

F2: Install Carpet: F1F3: Install Painting: F2

G: ROOFING:

G1: Install Felt: E1

G2: Install Shingles: G1

G3: Install Gateway: G2, F3, E4

20



Project Management

7.4: Network Diagram:

Start

A1

A3

A2 B1

B2

B3

D1

C1

D2

D3

D4

D5

C2 C3 E1

E2

E3

E4

G3

G1F1

F2

G2 F3

End

21



Project Management

8. Risk Mgt. Process @ Hostel Construction:

As construction projects become larger and more

complex, so do the risks associated with them. Thesheer size, scope, and timing of today's projects pose

significant risk management challenges, including

identifying risks, determining the allocation of risks

among the parties involved, developing mitigation and

risk treatment plans and opportunities for cost savings

in single project applications or across an entire portfolio

of projects.

Because of the increasing complexity and size of project

risks, sponsors must view risk on an enterprise-wide

project or portfolio basis to properly and consistently

identify risks, develop optimal risk allocation strategies,

and, if necessary.

8.1 Risk Factors in the Project: The following risk factors may be involved in the

Construction of Hostel in the City University of

Science & Information Technology (CUIST),

Peshawar; they are describe in the following

heading:-

Shortage of materials; specialized skilled;

skilled labours & man powers due to

terrorist activities in the region.

Time period for completion of project may

be increased; if the time period is increased

so the cost might be increased too; due to

inflation factor.

22



Project Management

The problem of non-availability of machinery

or experts may arise on the occasion.

Any other, problem regarding contractors;

sub contractor; skill labour etc.

8.2 Risk Mitigation Techniques:

8.2.1: Insurance Design and Placement:

o The project-specific risk transfer and

management programs that include theoptimal blend of insurance, alternative risk

transfer, and retained risk to maximize

protection.

8.2.2: Subcontractor Default :

o Through our proprietary Sub Secure®, the

Project Manager should the skill of that to

identify potential adverse implications of a

subcontractor's financial situation and

provide guidance for managing the risk of

subcontractor default. In addition, Marsh

can provide guidance on the nuances of a

subcontractor default insurance program,

like Sub Guard®, and how to implement it

on a project. Besides; can also help

subcontractors to gain competitive

advantage by presenting their financials to

contractors in the best possible light.

8.2.3: Risk Consulting:

o To mitigate the risk; the Project Manger’s

has extensive, process-driven strategies and

23

http://global.marsh.com/risk/wrapUps/

http://global.marsh.com/documents/SubSecureFactSheet7-09.pdf

http://www.zurichna.com/NR/rdonlyres/D8ABD9F0-95AE-4B06-B58C-1087399A2D46/0/Subguard.pdf

http://global.marsh.com/risk/wrapUps/

http://global.marsh.com/documents/SubSecureFactSheet7-09.pdf

http://www.zurichna.com/NR/rdonlyres/D8ABD9F0-95AE-4B06-B58C-1087399A2D46/0/Subguard.pdf



Project Management

tools designed to manage and monitor risks

from a project's earliest stages to the final

delivery and commissioning.

8.2.4: Project Governance :

o Projects with tight margins, tight schedules,

high risks, and complex reporting

requirements limit management's ability to

identify and mitigate problems when they

occur.

8.2.5: Project Performance Audits:o Rectifies the challenges brought on by the

increased need for transparency in project

management, common goals in the review

process, and standardization in contractor

payment processes.

8.2.6: Loss Control:

o Site safety is crucial to project performance;

control the same

8.2.7: Supply Chain:

o The Project Managers should have complete

suite of supply chain risk services, from

identifying and mapping risk within the

supply chain to identifying and applying

solutions (alternative risk strategies) to

monitoring threats that affect a client's

supply chain.

24

http://global.marsh.com/industry/construction/projectadvisory.php


http://global.marsh.com/risk/supply/



http://global.marsh.com/risk/supply/



Project Management

Schematically, the Risk Management Process isDepicted in the following Diagram:

25



Project Management

9. Strategic Recommendations

The Education Industry is only profitable if the

projects are completed in time.

Quality of materials used ensures quality of

Hostels built. Superior quality is the best competitive

advantage these days.

Careful selection of residential area counts

towards selling price and timely sales

The investment in good architectural design is

worth it. A good look is the first thing buyers would

be looking for at the first place.

10. Key Success Factors/Practical Tips for Success:

The key success factors for hostel are careful

selection of construction site and a good

architecture. The investment in good construction

material and efficient use of labour are also very

crucial. In short quality pays in the long run

Documents

Major Project Project Mgt