Submitted by:

Project Controller- Pillutla Anirudha Asish (2012PGP076)

Project Manager- Manan Chandna (2012PGP068)
Project Engineer- Ganesh Shanker (2012PGP086)
Procurement Manager- Sajal Goel (2012PGP088)
HR & Legal Officer- Sushree Tripathy (2012PGP099)

Construction of New Hostel

Block in IIM Shillong
Project Management Final Report

Detailed project management report on construction of a new hostel block with an indoor sport
complex within the existing IIM Shillong Campus in 18 months to accommodate 84 students within a
budget of 2.5 Crores.
Contents
1. Executive Summary ............................................................................................................................... 2
2. Introduction .......................................................................................................................................... 2
3. Project Scope and Basic Assumption .................................................................................................... 3
4. Technical Know-How Requirements ..................................................................................................... 4
5. Foreseeable Difficulties and Constraints .............................................................................................. 5
5.1. Financial Difficulties .......................................................................................................................... 5
5.2. Political difficulties ............................................................................................................................ 5
5.3. Construction difficulties .................................................................................................................... 5
5.4. Other difficulties ............................................................................................................................... 5
6. Risk Register .......................................................................................................................................... 6
7. Work Breakdown Structure .................................................................................................................. 7
8. Milestone PERT Chart of the Proposed Project .................................................................................... 7
9. Project Duration and Project Budget .................................................................................................... 8
9.1. Project Milestones ............................................................................................................................ 8
9.2. Resource Requirements .................................................................................................................... 8
9.3. Construction phase – external and internal ..................................................................................... 9
9.4. Resource cost planning ................................................................................................................... 10
9.5. Assumptions .................................................................................................................................... 11
9.6. Total cost of project ........................................................................................................................ 11
10. Social costs, Risks and Expected Benefits of the Proposed Project ................................................ 11
10.1. Social cost-benefit analysis ......................................................................................................... 11
10.2. Risk & mitigations strategies of our project ............................................................................... 12
11. Critical Success Factors for our project: .......................................................................................... 13
12. Limitations and future scope of research ....................................................................................... 13
13. Lessons Learnt and key difficulties faced while preparing the project plan ................................... 14
13.1. Lessons Learned .......................................................................................................................... 14
13.2. Difficulties Faced ......................................................................................................................... 15
14. Annexures ....................................................................................................................................... 16

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1. Executive Summary
This project report summarizes in detail the planning behind the construction of a new hostel block with
an indoor sport complex within the existing IIM Shillong Campus in 18 months to accommodate 84
students within a budget of 2.5 crores.

The project is proposed to be completed in three phases namely, planning, site development and
construction. In the planning phase the major deliverables will be the construction blueprint and
completion of legal formalities which would include permission for erecting a new building within the
campus. In the site development stage, we need to lay a foundation for the building at the proposed
site. The major and final phase of construction will have deliverables such as the completed hostel and
the indoor sports complex on the ground floor.

Once the blueprint was prepared and approved through consultation with the client, the cost estimate
was prepared and scheduling was done consequently. The social costs and risks involved in the project
were accounted for. The benefits of undertaking the construction were outlined with special focus on
the critical success factors. Finally at the end of the report, the limitations are enlisted and learnings
derived from this project are outlined.

2. Introduction and Study Rationale

The project is aimed at the construction of a new hostel block in the premises of IIM Shillong in a span of
18 months from the start of the project. The project has been taken up due to the increasing batch size
that is being admitted into the institute year after year as well as a diverse set of programs being added
to the institute’s offerings. This has led to a growing demand for a new residential complex for students.
The new hostel block is also envisaged to include an indoor sports complex as the current facility is
operating under overcapacity. Also, the plan for the new building has been endorsed by our institute’s
Director during an open house discussion, which reinforces the management’s will to take the project
forward. The capacity of the new hostel block is planned to be for 84 rooms along with an indoor sports
complex. The location of the hostel would be in the area adjacent to the admin building, on the other
side of the road (on the way to barracks), where clearing of trees is already underway. This report
discusses in detail the planning, deliverables, resource requirements, budget, risks and benefits of the
project within its defined scope.

The study rationale behind taking up this project is as follows:

 The current hostel facility in the institute is operating under overcapacity and the number of
students being inducted every year is on the rise
 The sports facility present also needs to be improved to provide the right infrastructure for
students in a premium management institute
 The project deals with identification and scheduling of resources to complete the task in a given
time and resource frame
 To determine the various types of risks, costs and constraints that could be associated with
managing a project as well as how to mitigate and manage the same

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  It is an opportunity to apply the principles of project management learnt in class as well as the
tools for the same

3. Project Scope and Basic Assumption

3.1. Scope

The scope of our work would include:

 Selecting builder for the construction of new hostel block with indoor sports facility
 Floating of the Bid
 Evaluating EOI
 Floating RFPs
 Evaluation and Final selection of Vendor
 Design of the new hostel block with an indoor sports complex
 Exact location of the building in the college premises
 Layout of the entire building
 Construction of the building

 Procuring resources like labor, raw material etc.

 Providing basic amenities like provision for lights/ fans/ heaters, fully-equipped bathrooms,
drinking water facility, common room with LCD television, gym, squash facility, indoor
badminton court, table tennis etc. to the students of IIM Shillong
 After the construction of the facilities it is important to regularly perform maintenance
activities on all the facilities. Understanding the maintenance requirements from the builder
and accordingly allocate resources for maintenance activities
 Providing good quality fresh basic eatables and energy drinks through an automatic vending
machine that requires only limited space for installation
 Keeping the sports facility open 24 hours at the hostel on all the days, as required by the
Institute

3.2. Limits and Exclusion:

 Plumbing and electrical work for the building will be taken care by the contractor
 Our job is only the felicitation of the hostel block, day to day job will be carried out by
the contractor
 The overseeing of the day to day operations and quality assurance will be done by
Hostel Committee along with a team of experts
3.3. Basic Assumption:

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  The legal and other approvals for hostel block will be taken by the college
administration and not by us
 The location of the hostel block will be in the space where TV room, gym, badminton
court are currently located. The space adjacent to the guest house can also be used
 We will construct the hostel block and hand it over to the college administration. Day to
day operations post completion will not be our responsibility

4. Technical Know-How Requirements

The technical know-how requirement would need a skilled workforce. The organization has
the policy of employing skilled workforce from internal the organization. Hence the skilled
workforce requirement would be:
 Project Manager-1
 Chief Strategy and Marketing Officer
 Chief Finance and Purchase Officer
 Chief Operations Manager
 Chief HR Manager
 Electrical Engineers -2
 Civil engineers -3
 Mechanical Engineer – 3
 Architectures - 2

4.1. Technical Specifications

 The intake of students at IIM Shillong is set to increase in the next few years and hence
there is a need for new hostel block to accommodate the increasing strength
 Creation of EOI in a standard format so as to invite qualified builders and contractors
 Associate with the most renowned construction player in the region and establish final
deal with them
 Location Specification:
 A room which has the potential for setting up required technical infrastructure
i.e. plumbing, electricity supply and other basic infrastructure
 Room should be big enough to accommodate 1 student
 Contractor Specification:
 Contractor should have minimum work experience in similar domain in
Meghalaya for at least 2 years
The major specifications that we propose for this hostel building and indoor sports complex are:

Deliverables Technical Specifications

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Size (of the building) Ground Floor + 4 floors + one-mess on each floor for cooking and dining
Construction Material Standard building format (Brick & Mortar)
Recreational Facilities Ground floor consists of Table Tennis, Indoor Badminton Court, Gymnasium
and Squash Room
Hostel Capacity 84 rooms
Room specifications Cement Flooring + Provision for 2 tube-lights + 1 fan. The room size and
design will be same as the existing new boy’s hostel rooms.
Floor Specifications Tiled-flooring in the corridors
Bathrooms One bathroom for every 2 rooms
Utilities Connecting the entire building to the main power grid of the campus +
Earthing + Drainage Facility + Automatic vending machine in sports complex
Building construction CDEF concept

5. Foreseeable Difficulties and Constraints

The various difficulties and constrains in the construction of the building and setting up sports facilities
which may appear are as follows:

5.1. Financial Difficulties

 The funds for construction of new buildings within the campus have to come through the
Central govt. It may not be obtained on time and might delay the start of the project.
 As a government organization we need to follow the tender process which may lead to change
in the proposed budget if the parties are not ready to work at the amount specified in the
tender.

5.2. Political difficulties

 The whole of Meghalaya is suffering from strikes and bandhs because of the current political
scenario and the demand for ILP. This may lead to laborers not reporting on time or unable to
work freely.
 The schedule might get hampered and it might take more number of days to finish the project.
 Also if ILP issue comes into effect, getting manpower from outside might be a problem
5.3. Construction difficulties

 Timely procurement of raw materials due to location of Shillong

 Risk of non-compliance from supplier’s end may pose a problem for the timely finish of the
project

5.4. Other difficulties

 Design variations after the initiation of the project
 Price inflation of construction materials

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  Implementation of various project management tool could be of problem as the labor
contractor and other involved parties can be categorized as level 1 organization where these
people might not be well versed with project management control frameworks
 Excessive approval procedures in administrative government departments
 Low management competency of subcontractors
 Unsuitable construction program planning
 General safety accident occurrence
 Unavailability of sufficient professionals and managers

Various difficulties and constrains mentioned above may pose following problems in the proposed
project:

 Late delivery of the project;

 Increases in operating costs
 Design and construction defects impacting upon the operation of the completed project;
 Deficiencies in other infrastructure or services upon which the successful operation of the
project depends, e.g. sports facilities as they require accurate measurements of the area

6. Risk Register
It acts as a central repository for all risks identified by the project or organization and, for each risk,
includes information such as risk probability, impact, counter-measures, and risk owner and so on.

Post identification of the risk, risk register has been created to know the exact probability and their
impact on the project

Risk Event Likelihood Impact Detection Stage of the Project

Difficulty
Delay of Design and construction 2 4 2 Start-up and ongoing
Release of funds not on time 2 3 2 Start-up and ongoing
Delay of interior setup like room 1 1 1 After completion of
furnishing and sports facilities construction
Inaccurate estimations of time 2 4 2 Ongoing, throughout the
and money project
Delay in site clearance and 2 4 1 Start-up
Permission from local authorities
Errors and omissions in 3 4 4 Final Stages of construction
construction
Fluctuation of estimated prices of 4 4 1 Construction
raw materials
Labor issues 3 3 4 During construction

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7. Work Breakdown Structure

8. Milestone PERT Chart of the Proposed Project

The project consists of the following milestones:

1. Getting legal approval: This milestone indicates the readiness of the team for going for the next
phase of the project which is to begin the preparation of site and the construction phase. This task is
a milestone since it signifies the end of the preparation phase for the project and starts with the
implementation of the same.
2. Site development: This is a milestone since it signifies the readiness of site so that the construction
work can start on it properly.
3. Completion of external construction: It involves the finishing of construction of all the 4 floors and
signifies the readiness of the building to start with internal furnishing and layout of the sports
utilities in the same.
4. Completion of sports utilities and ready for handover: This milestone signifies the completion of the
project and is ready to be open for the students.

All the 4 of the milestones along with the expected timeline is shown in the images below:

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9. Project Duration and Project Budget

9.1. Project Milestones

Milestones Day of Completion

Construction Blueprint Day 45

Completion of Legal formalities Day 60
Excavation of site Day 100
Laying of Foundation and surface drainage Day 150
Completion of indoor sports complex ( ground floor ) Day 280
Completion of First floor Day 330
Completion of Second floor Day 380
Completion of Third floor Day 430
Completion of Fourth floor Day 480
Completion of additional infrastructure Day 520
Project Handover Day 540

9.2. Resource Requirements

Resource Purpose Procurement Cost per Total cost

unit/resource in project
Human Six people for Internal to the For the internal 180000
Resource working on the organization – 5 workforce the salary
project design and External consultant per month is Rs.30000
handling interaction -1 per person. External
with the client consultant charges
Rs.5000 per design
sanctioned

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Human For clerical jobs like External resources Average salary would 40000
Resource applying for permits be Rs. 10000 pm ( for 2
and receiving them months only )
Miscellaneous Stationary Cost along To be obtained 200000
Cost with other amenities from suppliers
and utilities --

Total budget = Rs.420000; Contingency margin = 10%

Total Budget (with contingency margin) = Rs.462000

9.3. Construction phase – external and internal

This phase consists of calculating the cost required for acquiring material (raw material and finished
goods).

Resource Purpose Procurement Cost per Total cost in

unit/resource project
Steel Frames & Construction From supplier Rs. 44200 per unit 442000
Rods available
Cement Construction From supplier 50 kg sacks @ 144375
RS.275 per sack
Sand Construction From supplier RS.43 per cubic 303709
feet of river sand
Bricks Construction From supplier Rs.19000 for 3000 660739
bricks
Plaster Construction Contract given to Rs.50 per sq.m of 42017
vendor wall area
Paint Internal and Contract given to 300000
external vendor
Sanitary fixtures Internal to From supplier 150000
building
Plumbing and Internal and Contract given 1200000
sewage facility external to
building
PVC Pipes Construction From supplier 20000
Electrical System Internal Contract given 5800000
(Excluding
Lighting,
including HVAC)

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Generators Back Up Power From supplier- $95000 per 2470000
(Diesel Operated) system 1000kVA x 4 generator
Manpower Labor work, Daily workforce for Masonry @ Rs.300 220300
Requirement plumbing, masonry : 25 per person per day
electrical fixing Workforce for Plumbing @ Rs.450
and carpentry plumbing : 15 per person per day
Workforce for Electrical @ Rs.450
electrical System: 7 per person per day
Workforce for Painting @ Rs.250
painting : 12 per person per day
Flooring and other
internal civil works
@ Rs.350 per
person per day
Tiles and mosaic Interior to the From supplier Kajaria tiles @ 225000
flooring building Rs.95 for 1x1sq.ft
tiles

Total Budget = Rs. 11978140

Taking into consideration 10% contingency, the total budget becomes = Rs. 13176000

9.4. Resource cost planning

The completion phase includes the final touches required for the completion of the building including,
internal decorations like standardized lighting and fixtures and glass fixtures.

Resource Purpose Procurement Cost per Total cost in

unit/resource project
Electrical Standardized From supplier 700000
lighting fixtures lighting in the --
shopping complex
Glass fixtures to Both internal and Procured from 2000000
provide the external to the supplier but fixed --
aesthetic look shopping complex by contractor
Fire-fighting As directed by Procured from Fire extinguishers 100000
system government to supplier @ Rs.2000 per
installation get certified for unit and other
safe operation equipment

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9.5. Assumptions

The salary of permanently hired employees has not been considered in the budget calculation as the
organization has separate salary account to handle the same and this cost is taken care of in the overall
company expenses and is not specific to the project alone.

9.6. Total cost of project

The total project cost comes out to be approximately Rs. 2.25 crores

Considering contingency cost of 10%, and rounding off the value obtained, the cost of the project stands
to be Rs. 25000000. (Rs. 2.5 Crores)

10. Social costs, Risks and Expected Benefits of the Proposed Project

10.1. Social cost-benefit analysis

A social cost-benefit analysis aims to chart all of the effects that would influence the welfare of society
on account of constructing the stadium. It is a systematic and cohesive method to survey all the impacts
caused by the urban development project. It comprises not just the financial effects (investment costs,
direct benefits like tax and fees etc.), but all the social effects, like: pollution, safety, indirect (labor)
market, legal aspects etc.

The social cost-benefit analysis calculates the direct (primary), indirect (secondary) and external effects:

 Direct effects are the costs and benefits that can be directly linked to the owners/users of the
project properties (e.g., the users and the owner of stadium).
 Indirect effects are the costs and benefits that are passed on to the producers and consumers
outside the market with which the project is involved (e.g., the owner of shops outside the campus )
 External effects are the costs and benefits that cannot be passed on to any existing markets because
they relate to issues like the environment (noise, emission of CO2, etc.), safety (traffic, external
security) and nature (biodiversity, dehydration, etc.).

The social cost-benefits associated are as follows:

10.1.1. Direct Effects

 Construction of the new hostel will provide accommodation to the additional students who will be
joining the institute next year.
 The indoor sports complex will ensure that students get access to better recreational facilities.

10.1.2. Indirect Effects

 The shops around the college will benefit due to the increase in the number of students.

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 The noise level would increase during construction phase and might disturb the nearby residents.

10.1.3. External Effects

 The effect on environment would be significant during construction phase

10.2. Risk & mitigations strategies of our project

Types of Risk Risk Identification Risk Mitigation

Financial Risk Firstly, the funds for construction of new
buildings within the campus have to come
from the Central govt. It may not be
obtained on time and might delay the start
of the project.
Project should be initiated with the IIM
Shillong corpus after a written
confirmation by the central govt. that the
funds will be moved to IIM Shillong in
due course of time.

Secondly, as a government organization we Understanding the cost of such projects

need to follow the tender process which in Shillong, a good estimate of the
may lead to change in the proposed budget amount to be paid to potential
if the parties are not ready to work at the contractors should be done so that
amount specified in the tender. parties don’t leave the tender process.
Usually if the parties find that the
A few other risks which has a direct impact venture is not profitable, all of them
on the cost of the project leave.
 Design variations after the initiation of
the project Contract should strictly not allow any
 Price inflation of construction materials design variations.
 Excessive approval procedures in
administrative government Price inflation is not in our control but
departments the proposed budget usually considers
the possibility of price rise of raw
materials
Political Risk The whole of Meghalaya is suffering from Measures can be taken to house laborers
strikes and bandhs because of the current within the campus so that work is not
political scenario and the demand for ILP. hampered. As far as raw materials
This may lead to laborers not reporting on procurement is considered, buffer stock
time or unable to work freely. The schedule would need to be purchased
might get hampered and it might take more
number of days to finish the project.

Risks associated The two major risks identified under this Enter into strictly defined contracts with
with supply head are: Non-availability of resources and the suppliers
chain risk of non-compliance from supplier’s end

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Safety related  Low management competency of Subcontractors are not in our direct
risks subcontractors control but while contractors previous
 Unsuitable construction program work can be checked to understand the
planning kind of subcontractor they use.
 General safety accident occurrence
 Lack of coordination between Skilled labor scouting should be done well
project participants in advance to avoid such problems.
 Unavailability of sufficient amount Usually there are intermediary players
of skilled labor who help in getting the skilled labor. Such
 Unavailability of sufficient people should be approached if such an
professionals and managers issue arises

11. Critical Success Factors for our project:

The key success factors of our project are listed below:

 Schedule: It is important for the project to meet the schedule and the proposed timelines. So
the critical success factor is to meet or beat established project milestones

 Safety: It is important that all the safety guidelines are followed and thus the success factor in
this case will be- no recordable or lost time injuries and reportable injuries lower than the
industry average

 Budget: There are a lot of risks involved in this project. It is imperative that we manage risks to
contain costs within the estimated budget

 Quality: Conform to project requirements and quality without adverse effects on milestones or
budget. None of the above success factors should be achieved at the cost of quality

 Environmental & Regulation Compliance: Complete project without any violations conforming
to the standards and regulations

 Operational and construction standards- Education, implementation and consistency of

standards

12. Limitations and future scope of research

The proposed hostel block will not include any changes in the plan/design at a later stage due to the
strict timelines. The design of the block and the room specifications will be similar to the existing new
hostel blocks.

There will be just cement flooring (cement) to ensure timely completion. There will be no additional
classrooms or study rooms in this hostel.

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We have not taken into account risks associated with the external factors like weather, terrain and
natural disasters. With Shillong being an area affected by extreme climate and prone to natural disasters
like mild earthquakes etc., the ideal project plan should also have strategies to mitigate these risks and
have contingencies planned to meet the success factors.

Taking into account all the above factors are out the scope of the current project plan and are topics for
future scope of research.

13. Lessons Learnt and Key Difficulties Faced

13.1. Lessons Learned

 Importance of minutes of meetings was established while working on the project. It was
observed that referring past decisions and the discussions becomes important for taking future
decisions and hence for future reference minutes of meetings play a very crucial role. Keeping
track of allocated tasks and responsibilities became much easier with the help of minutes of
meetings.

 While managing a project, preparing timeline and budget are not the only key areas. There are
many other important things, like work breakdown structure, know-how of the domain to some
extent for efficient scheduling budget management, social cost-benefit analysis, anticipation of
possible risks and measures to mitigate them etc., which needs to be considered while planning
for any project.

 Importance of consensus and discussions between client and project management team is
another key area which was observed. The discussions brought out many new ideas on table but
at the same time it was realized that unnecessary discussions may be time consuming without
adding value to the project. Similarly, agreeing to a point is very important for the project to
proceed further effectively. All of this is accomplished through clear and consistent
communication.

 Good project management involves no shortage of dialogue between team members, clients,
and anyone else that should be in the loop. Constructive criticism pushes your team to do their
best and makes expectations clear. If someone is already producing phenomenal work, be sure
to recognize it and let them know. It is important to cultivate creativity whenever possible.

 Another aspect to bear in mind throughout the life of a project is that changes will be made.
Turning change into an opportunity is important; re-evaluation of the state of project and using
it to motivate the team should be the step forward. That way, even if drastic changes come up—
your project will end a success.

 Also a key learning is that good project management doesn’t end when a project is completed.
Evaluating the results of the team’s hard work is an integral step in the process. Obviously the

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 views of client about team’s efforts will be communicated by them but a personal introspection
becomes important for future improvement.

13.2. Difficulties Faced

 Without clear knowledge about the actual resources and schedule involved in a construction
project it was difficult to figure out things at many points in time. With the help of online
resources and batch mates with prior experience in this field, this difficulty was tackled to some
extent.

 The team involved people with varied backgrounds who have their own understanding about
various topics. Hence, it became difficult in certain discussions to reach on consensus timely.
Thus meetings sometimes became a time consuming affair but this has its own positives and
negatives. Also dividing the roles as project manager, HR manager, communications manager
etc. helped in dealing with this issue to some extent as the concerned person was the one who
led the discussion of his/her domain, brining everyone on same page and helping in reaching a
consensus.

 Lack of proper communication sometimes in the initial phase proved to be bottleneck hindering
the project. But gradually as the project planning continued the team developed a co-ordination
and this issue was addressed soon.

 Timely follow-up, which is an important step in project management, was in some points not
adequate and hence revising the points discussed in the past meetings consumed a lot of time
but minutes of meetings came to rescue to a large extent.

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 Annexure

Annexure 1: Expression of Interest

Sl. No. Particulars Details

1 Profile of Builder

2 Name

3 Address in full

4 Telephone /Mobile No.

5 Fax, Email

6 Month and year of establishment

7 Name of Proprietor /Partner

8 Annual turnover during the last 3

Years.
9 Whether the firm is income-tax
Assesse?
If Yes please give the details of PAN
No. and copy of the latest
Assessment order.
10 Registration No., if applicable
11 EPF No. , if applicable
12 Details of Infrastructure, persons
employed, No. of offices/branches
available with the service provider

13 Service Tax No., if applicable

14 VAT No. , if applicable
15 TIN No. , if applicable
Name of at least 2 References of

16 repute with address and telephone

Numbers (Enclose their Certificates)

Note: Attach extra sheet if required.

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 Place: Signature of the
Date: Caterer/Hotelier

Annexure 2: Details of Previous Contracts

Period of Contract Name & address of Type of Number of Value of

Organization Contract Parties contract
From To undertaken serviced (annual)

Annexure 3: Details of Present Contracts if any, of similar nature being rendered by

you (that will be available for inspection by our officials)

Period of Contract Name & address of Type of Number of Value of

Organization contract persons contract
From To undertaken serviced (annual)

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