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Your company has bagged a lucrative contract to construct a housing colony for an industrial group to be located in western Maharashtra in a coastal belt. You as a project manager have been asked by the company to evolve organization structure with following conditions. i. Organization should be as lean and thin as possible with bare minimum of personnel on company roll up to junior level. All supervisors to down below will be temporary for project duration only to be recruited locally from 100km radius.


Suggest and discuss an organization structure denoting responsibility, authority, communication control for all facets of construction work and management functions as visualized by you. Housing colony consists of 10 bungalows for senior executives, 20 apartments in 5 buildings, 100 dwellings for white collar workers and 300 dwellings for blue collar workers. Colony will have market and entertainment complex.

Scope of work:
The project is development of an urban housing colony in Western Maharashtra on the costal belt; comprising of 10 bungalows for senior executives, 20 apartments in five buildings, 100 dwellings for white collar workers and 300 dwellings for blue collared workers with a market and entertainment complex.

The work of the project includes complete structural and civil works, architectural, internal and external finishes including aluminum works, glazing, cladding systems, service equipments, electromechanical and associated works. Site external work like soft and hard landscaping is also included.

The scope also includes testing, adjusting, balancing, commissioning and handing over. Tests on completion, remedying of defects during contract period and provision of spare parts, warrants and bonds all this come under the scope of the project.

The colony may be divided into three blocks tabulated as, Area Block A 120 per block Senior Executive B 100 per block White collared workers C 80 per block Blue collared workers 300 Individual houses. 100 40 Bungalows comprising of 2 apartments each. Individual houses. Personnel Nos Remarks

Understanding the project:

The project requires developing an organization structure for the work of building a housing colony. Desirables for such project are: 1. Efficient use of resources; of material, personnel, time and money. 2. High level of quality. 3. Safety of workforce and other people. 4. Environmental concern, minimum damage to the environment and utilization of efficient and environment friendly processes.

Key Functions:
The key function of construction Project: 1. Planning & Scheduling: Planning involves formulation of a number of alternative realistic work plans for achieving specified objectives. Finally s e l e c t i n g a p l a n w h i c h i s b e s t s u i t e d f r o m t h e s t a n d - p o i n t o f a v a i l a b l e resources and constraints imposed upon the project. 2. Organizing: Organizing is concerned with division of total project in to manageable departments/sections and systematically arranging various operations by delegating specific task to individuals. 3. Staffing: Organizing involves division of project work into section and staffing is the provision of people to fill the position so created.

4. Directing: The directing function is concerned with the training to the subordinate to carry out assigned task, supervising their work and guiding their efforts. The essence of directing lies in the ability to motivate people individually and as groups. 5. Controlling: Controlling is necessary for ensuring effective and efficient working. It involves constant review of the work plan to check on actual achievement and to discover and to rectify deviations through appropriate corrective measures. 6. Co-coordinating: Since authority coverage to the top of the organizational p y r a m i d , i t is necessary to bring together and coordinate the work

of various department and sections. T h i s r e q u i r e s a n e f f i c i e n t s ys t e m o f communication so that each department and section is aware of its role and assistance to be expected from others.

Authorities to carry out functions: Project Manager:

The significant works of Project Manager is to co-ordinate the views of their workers and finally complete the project. He has to collect views of various persons at different level and required to execute the job to be more correct, realistic and feasible. He is also required to co-ordinate various gangs, persons involved in construction. He has also to co-ordinate various activities in a project.

Some other functions of Project manager is as follows: To call periodical joint meetings of several key personnel working at the site to review progress and to issue instruction for speeding up work if required. The project manager will have clear idea about all the process that takes place in the project. He should be influencing the team to follow in the achievement of a common goal. He should be able to identify the delay if it is occurred and should be able to rectify it.

Construction Manager:
The construction manager is the head of the execution department. The main function of the execution department is to execute the orders received from the planning department. The most active post in the organization is the construction manager since he decides upon the plans proposed on assumed working conditions and executes them under the actual working conditions. He has a team consisting of engineers and his sub ordinates for various works in the field.

Commercial Manager:
The commercial Manager looks after finance, administration and HR related work, Banking and managing cash flow, Site Legal matters, General books of account maintenance, Subsidiary records, Financial reports, Payment of invoices, Billing, Personnel records, payrolls and records, wage and personnel reports to public agency, etc..

Design & Engineering Manager:

The design manager makes the plan and does the design of every single member of a structure that has to come in the project. As for the residential project, he does prepare the layout of the entire colony with specification of the every single apartment and bungalow allocated as per the specification proposed by the clients. He prepares the drawings which provide all the essentials for the structure.

Project Coordinator:
The function of a project control manager is to regularize the work flow in the project. He forms a planning department under which all the essentials of the project are been maintained and recorded. The project control manager being the head of the planning department has to keep up the above mentioned functions.

Planning Engineer:
Planning engineers develop the most appropriate method and sequence of construction operations for a particular project, in conjunction with the project manager. They plan and oversee the entire programme of work and must anticipate a contracts demands in terms of labor, materials, equipments and technical challenges. The main responsibilities of the Planning engineers are namely: Selecting the appropriate techniques and determine appropriate logistics, solutions and resources. Drawing up plans and local environments and presenting schedules of work, often with visual aids such as bar charts and procedure diagrams. Preparing logistics plans and pricing schedules for individual projects. Monitoring progress throughout the construction process and comparing this it projected schedule of work.

Liaising with the site agent and surveyor throughout the process, making adjustments to projects as necessary. Providing advice and support on the development of specific systems.

Design Consultant:
The design manager makes the plan and does the design of every single member of a structure that has to come in the project. As for the residential project, he does prepare the layout of the entire colony with specification of the every single apartment and bungalow allocated as per the specification proposed by the clients. He prepares the drawings which provide all the essentials for the structure.

Executive Engineer:
The key person and the head of the team working at site, is the Executive Engineer. He operates the complete work at site making use of the available resources and managing the workforce. Executive Engineer would be responsible for any work happening at site so it would be his duty to check and study the execution of work.

Quantity Surveyor:
The quantity Surveyor is the person responsible for figuring out just what a building is going to cost and in some cases for making that construction costs and production are managed as efficiently as possible. The main responsibilities of the Quantity surveyor are as namely: The preparation of bills and/or schedules of quantities of materials, labor and services required in the construction and equipment of building, or engineering works. The preparation and valuation of progress and final payments in connection with any contract or sub-contract.

The appraisal of the value of proposed constructions or other structures already erected. The preparation of specifications when required so to do. Acting as arbitrator in cases of dispute in connection with building, or engineering work, when required so to do. To advice from time to time on cost management, or value management. To carry out such other duties as may properly be those of a Quantity surveyor.

Project Engineer:
The Project engineers perform a technical, organizational and supervisory role on construction projects, including setting out and structures involved in construction operations. Project engineers perform a technical, organizational and supervisory role on construction projects, including setting out and structures involved in construction operations. Project engineers apply designs and plans to mark out the site and can be involved in projects ranging from small scale to multi-million pound ventures. The main responsibilities of the Project engineers are namely: Study the drawings and complete specifications to understand the project requirements and sequence of the works. Check material requirements and request and submit to the construction managers and project managers approval. Assess manpower requirements and inform project manager accordingly. Ensure that persons under his control are having enough experience to carry out the site works. Ensure the corrective actions are taken where required meeting budget quality and standards. Control of plant and equipment usage on site and ensure optimum utilization. Supervise the material usage at site and control wastage.

Inform the construction manager and the project manager of any delays or discrepancy at the site and take corrective measures. Ensure safety of the construction and those them are followed on site by all concerned.

Site Engineer:
A site engineer works as part of the site management team liaising with and working alongside architects, engineers, construction managers, supervisors, planners, surveyors and subcontractors. They share responsibility for site security, health and safety, and the organization and supervision of material and human resources. The main responsibility of the site engineers are namely: To carry out all the activities as per the drawing specification with all quality standards. Execution of activities as per program and highlighting delay if any in right time. Highlighting drawing discrepancies to project engineers. Leading a team of supervisors to carry out their duties and responsibilities. Ensure optimum utilization. Ensure safety of construction of all concerned follow safety regulation. Highlighting safety violations of defaulting personnel.

QA/QC Engineer:
The QA/QC Engineer takes care in examining the quality of all the products from reinforcement, concrete to a completed building. Quality assurance and quality control are essential components of every company that produces software applications. Quality assurance (QA) or Quality control (QC) engineers are the resources that maintain the quality level of a company and its products. Quality control/Quality assurance engineering is involved in developing system to ensure products or services are designed and produced to meet or exceed customer requirements and expectations. Responsible for all aspects related to project quality assurance and quality control. Preparation of the project specific quality plan, inspection and test plans, check sheets and procedures. Implementation of quality control programme for the project. Daily sheet inspection and periodical offsite inspection. Controlling all inspection activities on site. Ensuring all the test reports is verified to meet the contract requirements.


MEP Engineer:
Mechanical: Primarily, responsible for planning and coordination of various construction field execution activities within the mechanical discipline. Position requires development of all technical documentation required to execute construction field installation activities to include installation work. Involvement in the procurement, fabrication, installation, modification, maintenance and testing of various systems and components. Oversight of all field installation activities including inspections and problem resolution which requires extensive interface and coordination with Design Engineering, Quality Control, Procurement Engineering, and Start up Test.

Electrical: Propose, plan, prioritize, design, lead and oversee all City building energy reduction projects; conduct economic and engineering analyses and audits; monitor workflow, equipment quality and cost; coordinate with electrical power utility to monitor the energy reduction; prepare and retain detailed project documentation. Identify, conduct comprehensive engineering studies and plan for capital improvement projects, including building power and lighting system expansion and upgrades. Identify, review and approve plans, methods, materials, equipment and procedures with electrical field supervisor before and during construction to insure the work is in compliance with the design; assist in coordinating work among the carpentry, electrical, plumbing and air conditioning trades. Respond to and resolve difficult customer inquiries regarding building electrical power and lighting issues; resolve difficult and complex regulatory and system design questions. Prepare and maintain technical engineering records and drawings.

Selection of team size:


The team size will depend on size of biggest work package. Therefore the scheduling will have to be done to create work packages of equal size, which will result in better resource leveling and efficiency. The work performed by the organization involves a number of processes and sub processes. The process model can be applied iteratively, by means of: Identifying inputs (from the output of the previous stage). Planning & Scheduling. Implementation. Monitoring. Recording. Improving.


Work breakdown structure:

Since habitation pattern of the colony can be predicted with some accuracy therefore the work package can be divided into following packages:

The requirement of the key staffs for the project is as follows: Project Manager Construction Manager Project Engineer Quantity Surveyor Senior Planning Engineer Planning Engineer QA/QC Manager QA/QC Engineer Safety Officer Senior Safety Engineer Site Engineer Junior Engineer Supervisor Surveyor Storekeeper 1 Nos 4 Nos 7 Nos 6 Nos 1 Nos 2 Nos 1 Nos 6 Nos 5 Nos 1 Nos 14 Nos 22 Nos 4 Nos 27 Nos 5 Nos

Information flow among site functions:

As discussed above the breakdown in an organization can be categorized five departments namely, 1. Planning & Infrastructure department, 2. Commercial department, 3. Design & Engineering department, 4. Execution department, 5. Quality department.

Planning & Infrastructure department:

The Planning team would work on the Project schedule, sequence material and activities, initial site mobilization activities planning, Site layout, Town Planning and Connectivity.

The Planning team would ensure that the basic infrastructure like water and electricity is made available to the units. The intention to club these two divisions is based on logical interpretation of the basic tenets on which the two teams work. A coordinative effort between these two divisions will ensure that the product is ready for the execution team to deliver.

Commercial department:
The team will work around the year to ensure that the required cash flows are maintained and also to ensure that the work doesnt get affected due to the inherent issues of managing the project. Booking to ensure that all the required books are to do the book keeping and also execute the plans, store, and purchase and logistics management at site. Employees in the Manager level will ensure that all the required books are to do the book keeping and also execute the plans of the General Managers. The General Managers are to ensure that the plans are made keeping in mind the vision and direction set by the Project Manager.

Design & Engineering department:

The Quality Team will have a structure as follows: Quality Control plays a very vital role in a project. Hence, it would be critical to have a Quality team member involved in every critical aspect of the project. A team member would be involved in the Engineering drawing and interface with engineering consultants, one team member in architecture and one in execution.

Execution department:
The primary thing that has to be realized is that execution is a very critical team for the success of the organization. This team has to be closely monitored and should


also be given enough flexibility to allow intelligent deviations from the plan and also should be flexible enough to incorporate the changing conditions in the environment.

Quality department:
The Quality Team will have a structure as follows: Quality Control plays a very vital role in a project. Hence, it would be critical to have a Quality team member involved in every critical aspect of the project. A team member would be involved in the Planning and Infrastructure, one team member in Architecture and one in Execution. A team member of the cadre of an AGM would ensure that the Managers who look after the individual portfolios execute the plans according to the vision and direction of the Program Manager.

Construction is a labor-intensive industry, which places heavy reliance upon the skills of its workforce. In the construction sector, a very fast employment growth is expected. Additionally, excellent job opportunities will exist as number of job opening exceeds the numbers of qualified applicants. Thus, the retention of good people is very crucial. Good manpower planning is necessary. Storage of workforce results in delays leading to a cost escalation. Availability of workforce differs from region to region. Even the cost of man hour is different in different places. Thus it is necessary to keep these factors in mind before processing with project. Pre-planning for the manpower should be done with a proper estimation of required personnel. This will be great help to avoid labor related uncertainties. The structure of site organization should be such that is able to focus on its core activities and outsourcing is cost effective. Communication is very important aspect. It is recommended to use thee-mail and communication tool effectively. Having stated that the non-integration of the construction supply chain hinders the creation and improvement of value for money in the construction process.


Specifically the recommendations are anchored on collaboration and supply chain management. The recommendations include: Ensuring the early involvement of key project team members that have expert knowledge so that an appropriate level of client satisfaction and value can be defined; Establishing of subcontractor and supplier relationships by selecting teams based on value rather than lowest price; Integrating pre-construction and construction activities and adopting common processes such as ICT; Managing the project parameters of cost, schedule, quality, and H&S in union; Working together as a team to agree mutual goals and devise dispute resolution mechanisms; Developing and monitoring continuous improvement programmers; Developing and implementing sound risk management processes; Dealing with risks and rewards equitably by using modern commercial arrangements such as collaborative contract forms, target cost and open book accounting; Using non-adversarial forms of contract and ensuring that contractual relationships are appropriate for expected project objectives; Using cost-plus and design and build forms on contract and deemphasizing the use of management contracting as well as traditional forms of contracting.


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