NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT AND RESEARCH PUNE

CONSTRUCTION CONTRACTS & CONTRACTING

Assignment -5(Five) NCP-26

VEDULA SRIKANT BHARADWAJ SODE-PDPCM-28-061155752101 DATE:

..............................................................................................................................................3 THE PROJECT DEVELOPMENT PROCESS:...11 CALCULATION OF CONSTRUCTION COST:............................................................14 BILIOGRAPHY / READINGS:...................... .... 11 CALCULATION OF AVERAGE EARNINGS:......................................................................................................................................................................8 PROJECT WORK BREAKDOWN:........................................................................1 RECOMMENDATION / SUGGESTION: ..6 CONTROL OF PROGRESS ON SITE:.Contents Contents.................PROJECT IDENTIFICATION AND FEASIBILITY:..................................... 9 THE PROJECT COST:...............................................................................................................................................................1 Technical and feasibility studies and ..........................................................................................................................3 PROJECT PLANNING AND CONTROL:.........................................................11 THE CRITICAL PATH METHOD......................................................................8 COSTING ACTIVITY:...............................................................................................................3 PROJECT MANAGEMENT ORGANIZATION ...........11 CONCLUSION: .....................................14 .......................................................................................1 Environmental impact reports.................................................................................................................................................................................................1 Conceptual analysis ...... 2 1......................................................................................................................................................................................................................................................................................................

It became popular very quickly because of its short time and more excitement and uncertainties till the last ball of the game. 1|P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . quality. So many people like to watch this sort of game because it is said that test cricket is real ‘’test’’ for cricketers. Due to its long time (5 days) few people would like to go to the stadium to enjoy it. boys and girlseverybody is taking keen interest to watch cricket either to watch on TV screen or at cricket stadium. Here. Day by day craze for cricket is soaring not only in old aged or middle aged people but youngsters and teenagers. Most projects start with a need to have a new facility long before designers start designs and drawing of the projects and certainly before field construction work can commence. 5 Days test cricket is the oldest form of the game. product or service within the specified scope. Hockey is our national game but cricket is more popular. materials.1. money. space and technology into logical sequence of activities. Then came more exciting cricket called ‘’ one dayers’’ or limited overs matches. undertaken to create a unique facility. our project is to build a cricket stadium outside a mega city over a piece of land in 16 months. time and costs. PROJECT IDENTIFICATION AND FEASIBILITY: Project is a mission. Elements of this phase include: Conceptual analysis Technical and feasibility studies and Environmental impact reports. machinery. Project can also be defined as organization and performance of resources such as men.

Meanwhile technology was improving and become part of the game. Cheer leaders are the dancers (mostly beautiful girls wearing short clothes) who encourage batsmen to hit more and more runs or bowlers to take more wickets.20 over matches. stump vision cameras. Its real excitement.Some business minded people revolutionized the idea of shorter games viz 20T or 20. There is no doubt that commercialization and glamour will draw more and more cricket spectators to the stadium to watch their favorite cricketers in action as well as beautiful girls or cheer leaders. graphics systems. In only few over’s batsmen hit lot of runs. Commercialization of the game is also eye-catching. speedometers to check the speed of the ball thrown by the bowlers. Before there was only TV and newspapers. So many companies would like to sponsor matches. Showering fours and sixes tense the bowlers’ nerves but beat the heart throbs of the cricket lover spectators. all the necessary data of the past cricket comes on the screen within a few seconds. Market is highly competitive and we are living in the era of Advertising and marketing. but now we have internet. Now the beauty and glamour is added to the game. digital sound systems. We have digital cameras with extra zoom. Lot of money can be generated through giving rights to the television channels for broadcasting of the matches. Stadium is to be built near the megacity. electricity. Indian Cricket League (ICL) and Indian Premiere League (IPL) are new tournaments which are becoming more and more popular. Money can be generated through the advertising hoardings on the ground boundary. These all aspects strengthen the idea that cricket will live and it is part of our lives. 2|P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . Not only this. and materials will be available easily. Machinery and manpower will be available at ease. water. Resources will be available easily. sponsors are ready to pay money for their logos on the uniform of the cricketers. Infrastructure facilities are there so the roads and transportation.

the discipline of project management can be defined as follows: ‘’Project management is the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to 3|P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . An idea of a project passes through six phases before it become a reality:       Conceptualization Engineering and design Procurement Construction Commissioning Operation and maintenance PROJECT MANAGEMENT ORGANIZATION Generally. According to the Project Management Institute. project management is distinguished from the general management of corporations by the mission-oriented nature of a project. A project organization will generally be terminated when the mission is accomplished.RECOMMENDATION / SUGGESTION: After going through all these aspects we can conclude that building a cricket stadium outside the megacity will be beneficial project not to the cricket lovers only but as a profit making business also. THE PROJECT DEVELOPMENT PROCESS: From conceptualization to implementation the stages in the development of construction project (here cricket stadium) fall into broadly consistent patterns but time and degree of emphasis each project takes on its own a unique character.

achieve predetermined objectives of scope. By contrast. Supporting disciplines such as computer science and decision science may also play an important role. Figure 1: Basic Ingredients in Project Management 4|P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . cost. quality and participation satisfaction’’. A working knowledge of general management and familiarity with the special knowledge domain related to the project are indispensable. there are sufficient similarities as well as differences between the two so that modern management techniques developed for general management may be adapted for project management. the general management of business and industrial corporations assumes a broader outlook with greater continuity of operations. Nevertheless. time. The basic ingredients for a project management framework may be represented schematically in Figure -1. The representation in Figure -1 reflects only the sources from which the project management framework evolves.

and the constraints imposed on human material and financial resources. 2. 2. These conflicts should be resolved at the onset of a project by making the necessary tradeoffs or creating new alternatives. The Project Management Institute focuses on nine distinct areas requiring project manager knowledge and attention: 1. Subsequently. Specification of project objectives and plans including delineation of scope. budgeting. project management in construction encompasses a set of objectives which may be accomplished by implementing a series of operations subject to resource constraints.Specifically. Maximization of efficient resource utilization through procurement of labour. 3. design. 3. cost. Project scope management to ensure that all the work required (and only the required work) is included. time and quality. materials and equipment according to the prescribed schedule and plan. Development of effective communications and mechanisms for resolving conflicts among the various participants. setting performance requirements. There are potential conflicts between the stated objectives with regard to scope. 4. Project integration management to ensure that the various project elements are effectively coordinated. 5|P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . the functions of project management for construction generally include the following: 1. Implementation of various operations through proper coordination and control of planning. Project time management to provide an effective project schedule. and selecting project participants. contracting and construction in the entire process. estimating. scheduling.

staffing. 5. 6. Project human resource management to development and effectively employ project personnel. organizing. 8. 9. Planning is concerned with ‘how and when’ to achieve the predetermined objectives. how it is to be achieved. Project cost management to identify needed resources and maintain budget control. This is the fundamental document that spells out what is to be achieved. Project quality management to ensure functional requirements are met. In Projects and Trends in the 1990s and the 21st Century. coordinating etc. "The basic project document is the project plan. directing.The main objectives of planning are listed below:      Analysis Anticipation Scheduling resources Co-ordination and control Production of data All effectively managed projects involve the preparation of the project plan. author Jolyon Hallows says. 7. and what resources will be necessary.4. PROJECT PLANNING AND CONTROL: Planning is the basic function of the management. Project communications management to ensure effective internal and external communications. Planning sets all other functions of management viz. Project risk management to analyze and mitigate potential risks. 6|P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . Project procurement management to obtain necessary resources from external sources. motivating.

a vital document which is referred to frequently. It is the blueprint for the entire scope of the project." The basic components of the project.” a good project manager recognizes from the outset that a project plan is far more than an academic exercise or tool for appeasing upper management.The project lives and breathes and changes as the project progresses or fails. and something without which the project manager cannot proceed. often update on-the-fly." says Hallows. There is not enough space for toilet and washing facilities on the in the tunnel. VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . telling us how to get from one point to another. according to Hallows."   7|P a g e Space for basic toilet and washing facilities is limited in small tunnels. are laid out in the figure below Figure 2: Basic Components Of Project "With the plan as a road map.

Messing facilities. The simplest form of WBS is the outline. although it can also appear as a tree diagram or other chart. and their associated subtasks. PROJECT WORK BREAKDOWN: Work within each phase to identify the events or tasks. CONTROL OF PROGRESS ON SITE: Without control planning loses much of its value. If a programme is to be really effective as a control document.  Define everything that needs to be done. Weekly and monthly meetings are invaluable in helping to control progress. Control involves comparing the actual achievement with the plans. The action necessary for correcting underproduction will be considered and the best solution will then be incorporated into the programme for the next period.   A system for cleaning and maintaining the toilets is essential. with a supply of cold potable water is also required. this is called the work breakdown structure: The Work Breakdown Structure (WBS)  The WBS has become synonymous with a task list. No one s h o u l d arrive home from work less healthy than when they left home to go to work. it must represent time and quantity of work carried out. Along with welfare. Progress can be recorded on planning charts that clearly indicate what is happening and where corrective action needs to be taken. Sticking 8|P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . first aid provisions must be available to match the requirements of the project. It must be applied continuously to update the plans and to enable reconsideration of the workload in the light of what has already taken place.

9|P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . A cost estimate establishes the base line of the project cost at different stages of development of the project. the WBS lists each task. cost engineering is defined as that area of engineering practice where engineering judgment and experience are utilized in the application of scientific principles and techniques to the problem of cost estimation. Figure3 :The Project Environment COSTING ACTIVITY: Cost estimating is one of the most important steps in project management. each associated subtask. milestones. A cost estimate at a given stage of project development represents a prediction provided by the cost engineer or estimator on the basis of available data. According to the American Association of Cost Engineers. cost control and profitability.with the outline. and deliverables. The WBS can be used to plot assignments and schedules and to maintain focus on the budget.

holding and improvement Planning and feasibility studies Architectural and engineering design Construction. 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. including materials.The costs of a constructed facility to the owner include both the initial capital cost and the subsequent operation and maintenance costs. including assembly. if applicable Operating staff Labor and material for maintenance and repairs Periodic renovations Insurance and taxes 10 | P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . 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.

Of Matches Per Year Average No. (Note: Other income from the broadcasting rights to the TV channels.00 4.00 Total Construction Cost `.00 Per Year Earnings from match Earnings form the Match Tickets in 5 Years 120000000. Of Spectators Per Match 60000.No 1 20000.00 Table 1: Calculation of Average Earnings. This method calculates the minimum completion time for a project along with the possible start and finish times for the project activities.00 Table 2: Calculation of Construction Cost.will is different than this ticket income. hoarding advertising. CALCULATION OF CONSTRUCTION COST: Total Area Of Development in Sqm Average Construction Cost Per Sqm in `. Sl. No 1 80000. 11 | P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 .00 120000000.00 Sl. fees from sponsor’s etc.) THE CRITICAL PATH METHOD The most widely used scheduling technique is the critical path method (CPM) for scheduling.00 24000000.00 100.   THE PROJECT COST: Financing costs Utilities Owner's other expenses CALCULATION OF AVERAGE EARNINGS: Capacity of spectators Average Cost of Tickets In ` No. often referred to as critical path scheduling. 6000. Indeed. This cost will be covered in 5 years exactly.00 Earnings form the Match Tickets In ` 6000000.

12 | P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . construction planners often represent a resource constraint by a precedence relation. The critical path itself represents the set or sequence of predecessor/successor activities which will take the longest time to complete. For example. Thus. and a resource constraint is a constraint deriving from the limited availability of some resource of equipment. For example. so completion of the entire project could be delayed by delaying activities along any one of the critical paths. as described in Chapter 9. A predecessor relationship implies that one activity must come before another in the schedule. A constraint is simply a restriction on the options available to a manager.many texts and managers regard critical path scheduling as the only usable and practical scheduling procedure. The duration of the critical path is the sum of the activities' durations along the path. material. a project consisting of two activities performed in parallel that each requires three days would have each activity critical for a completion in three days. Formally. The duration of the critical path represents the minimum time required to complete a project. No resource constraints other than those implied by precedence relationships are recognized in the simplest form of critical path scheduling. To use critical path scheduling in practice. space or labor. Any delays along the critical path would imply that additional time would be required to complete the project. one of two activities requiring the same piece of equipment might be arbitrarily assumed to precede the other activity. the critical path can be defined as the longest possible path through the "network" of project activities. There may be more than one critical path among all the project activities. Computer programs and algorithms for critical path scheduling are widely available and can efficiently handle projects with thousands of activities. critical path scheduling assumes that a project has been divided into activities of fixed duration and well defined predecessor relationships.

if a dummy activity X is introduced. the unique designations for activity B (node 1 to 2) and D (node 1 to 3) will be preserved. most critical path scheduling algorithms impose restrictions on the generality of the activity relationships or network geometries which are used. as shown in part (b) of the figure.This artificial precedence constraint insures that the two activities requiring the same resource will not be scheduled at the same time. Several cases in which dummy activities are useful are illustrated in Fig. Furthermore. Graphical network representations rather than a list are helpful for visualization of the plan and to insure that mathematical requirements are met. the elimination of activity C would mean that both activities B and D would be identified as being between nodes 1 and 3. 10-1(a). Also. these restrictions imply that the construction plan can be represented by a network plan in which activities appear as nodes in a network. A dummy activity is assumed to have no time duration and can be graphically represented by a dashed line in a network. and no two nodes can have the same number or designation. The actual input of the data to a computer program may be accomplished by filling in blanks on a screen menu. 10-1. dummy activities may be introduced for the purposes of providing unique activity designations and maintaining the correct sequence of activities. Nodes are numbered. if the problem in part (a) is changed so that activity E cannot start until both C and D are completed but that F can start after D alone is completed. reading an existing datafile. In Fig. or typing data directly to the program with identifiers for the type of information being provided. the order in the new sequence can be indicated by the addition of a dummy activity 13 | P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 . required resources and predecessor activities. Two nodes are introduced to represent the start and completion of the project itself. In essence. The actual computer representation of the project schedule generally consists of a list of activities along with their associated durations. as in Figure 9-6. With an activity-on-branch network. However.

3. project Management for Construction. Fundamental Concepts for Owners. Construction Project Management Techniques. but it is important to limit the number of such dummy link insertions to the extent possible. spectators. 2. dummy activities may be necessary to meet the requirements of specific computer scheduling algorithms. cricket association etc. Architects and Builders. 2008. In general. Second edition 2000. Engineers. First Published by Prentice Hall. Chris Hendrickson and Tung Au. 14 | P a g e VEDULA SRIKANT BHARADWAJ/SODE/PDPCM-28-061155752101 .Y. BILIOGRAPHY / READINGS: 1. USA. 1989. Figure 4: Critical Path Method CONCLUSION: This cricket stadium will be profitable for all the parties say sponsors. as shown in part (c). Published by NICMAR.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.