Analysis of Construction Project Cost Management

Running head: DREAM HOME CONSTRUCTION PROJECT
Dream Home Construction Project
Name of the student:
Name of the University:

1DREAM HOME CONSTRUCTION PROJECT
1. Explanation of the project management processes
This project depicts construction of a dream home in Port Philip Bay which is only 5.5
Kilometer away from Melbourne Central business district. The scope of the project,
communication management plan and stakeholder engagement strategies that are to be used, also
elaborated in this paper. However, in order to achieve the best lean project management the best
lean prcatices that are to be applied by the project team is also elaborated in the paper.
PMBOK and Prince2 are the two leading construction work development methods
applied by the builders, architect and contractors. Similarly, in order to initiate and complete the
dream home construction project in Melbourne between PMBPK and Prince2 project
management methods Prince2 is selected and applied (Ahmed & Mohammed, 2018). For
constructing the dream home pre project initiation, project initiation, subsequent delivery stage
and final delivery are the development activities will be followed to direct, manage and
successfully deliver the project.
a. Finalizing client’s requirements in terms of project scope
In order to finalize the clinet’s requirements different project management processes are
used by project teams such as waterfall, Prince2, PMBOK etc. Though, for this particular project
Prince2 project management method is used. Project scope is defined as one of the most import
stage in managing and delivering any project (Bu, 2017). Infact before beginning any project its
scope and objectives needs to be clear to the project team members and all stakeholders. In other
words, project scope should be well define and also shared among all stakeholders and associate
project team members. The scope of the project is to construct a dream home considering the
concept of green building in Port Philip Bay, Melbourne. The scope of the project is to improve
the construction process by eliminating waste elements.
The construction will be identified as a successful one only if it successfully reaches the
lean project management prcatices. Lean also considers different processes related to project
goals and activities that help to improve the project and execute it successfully avoiding all
probable risks and problem situation. Efficiency and effectiveness of the project also team gets
enhanced with lean project management (Fewings & Henjewele, 2019). The owner of the project

2DREAM HOME CONSTRUCTION PROJECT
has estimated a budget amount of AUD$500,000 and the dream home construction contract is
given to the builder company “Energy efficient building technologies”. Therefore, the scope of
the project is to complete the construction work in the measured budget of AUD$500,000 and
time of 12 months. The project must not exceed the budget estimated at the early stage of
construction. Apart from that, it should satisfy the client’s expectation in terms of quality, time
and budget.
The project objectives will be achieved in estimated budget and timeline after finalizing
the clinet’s requirements. Apart from detail project processes the other things on which the
project team needs to focus on include communication management plan and stakeholder
engagement strategies. In the scope of the project, each development activities will be clearly
designed and how theses can be individually are also evaluated (Fleming & Koppelman, 2016).
The ultimate budget, timeline and quality of a project are evaluated in the project scope. It is
duty of the project manager and associates team members to ideate the project scope and make it
executed according to lean thing and lean project management activities.
b. Ensure communications with all relevant stakeholders are effective and efficient
In order to effectively as well as efficiently manage the communication among the
project team members open communication approach is the most suitable one applicable for
most of the projects. For managing any construction project individual knowledge areas are
needed to be managed individually. Among these knowledge areas risk, communication, quality,
resource, cost and budget are very crucial areas to be considered and managed as well by the
associates (Hussain et al., 2018). For long term success of any project communication is a
fundamental area needs focus and attention of the project supervisor and contractors as well.
The process helps to create and share ideas, facts and views related to the project.
Effective communication is important to direct the dream home construction project towards the
expected objectives, aim and goals. A construction project manager can be highly qualified but
will never identified as a good leader if lags good communication skills. In other all ability of a
project manager will become obsolete if he is he found dies not posses good communication
skills. Not only the project supervisor but also all other project team associate need to have good
communication skills (Jegan & Kothai, 2017). A project manager must communicate his
directions efficiently to their subordinated to get all the work done properly.

3DREAM HOME CONSTRUCTION PROJECT
Different types of communication process such as upward, downward, horizontal, open
communication etc are there used by project contractors to direct, conduct and complete any
project on time within accurate deadline. Among these approaches for the dream home
construction project open communication is the best suited one (Ma & Cai, 2018). The role of a
sender communicator is to generate the message and convey it to the rest of the associate team
member. In other words, sender is the person who initiates the process of communication.
Communication is a continuous process needs to be used by project manager, contractors, sub
contractor and other team members.
A good and effective communication process includes three main elements in terms of
sender, message and receiver. In other types of communication approaches the messages are
generally encoded and do not become clear to the receiver unless decoded clearly. However, for
the dream home construction project open communication is the most applicable one. This
process gives an independent communication platform to the project team members including
project manager, contractor, sub contractor, architect and civil engineer etc (Stransky & Matejka,
2019). In this process idea, creativity and unique concepts of each individual is considered as
important source. In order to complete the communication successfully the communication plan
which is developed by the project supervisor and other associates is elaborated in the below
section.
Purpose of
communication
Stakeholders
involved
When Channel of
communication
Frequency
Meeting to conduct
discussion on project
objectives, aims and goals.
Project
supervisor and
project team
members
At the project
beginning
phase
Face to face
meeting, emails
weekly
To conduct discussion on
budget and its distributed
for various related
resources
Finance
manager project
supervisor and
project team
members
At the project
initiation stage
Face to
face meeting and
email
Weekly
The purpose of the Contractor and During the Face to Monthly