Construction Project Management and Budgeting

This document provides a comprehensive overview of construction project management and budgeting. It highlights the importance of managing the construction phase, including technical proposals and financial proposals. The report also emphasizes the need to identify and share risk during different project phases. By considering these factors, construction work can be done as per government requirements.

International Capital
Market

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Technical proposal.......................................................................................................................1
Financial proposal........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
International capital market is the financial market in which long-term debt or equity
backed securities are bought & sold. As construction is the process of making a building or
infrastructure and it begins from planning, design, financing etc. The project manager is
responsible to manage the construction phase of project. The main aim of this project is to
manage the constructions phase in a concession.
MAIN BODY
Proposal structure
The proposal structure provide the framework which is related to the project such as
construction project. As proposal involves the following things such as: name of project, project
reference numbers, name of the clients, name of the corporation, objective and requirement of
project and the how the whole work has to be done.
Technical proposal
Scope of work: The main issues are poor the infrastructure and service. The proposal has
to be made for the expansion of international airport because infrastructure is in poor condition
and the services which provide to the passengers are needed to be improve (Vernon, 2017).
As the need of construction is important to upgrade and expand its airport infrastructure keep
pace with traffic growth & improve service level. For that purpose government is exploring
options to develop the airport facilities & related infrastructure via a public- private partnership.
So it is important for the legal advisor to review the PSP options and draft pre-qualification
documents and to ensure key issues regarding private sector participation. The technical
assistance team can ensure the compliance of pre-qualification & tender documents with legal
standards & international good practice. As per the technical approach a company have to
emphasis towards the technical solution. It is helpful to analyse gaps and develops the
knowledge which is helpful to resolve the problems which is beneficial to find solutions as per
the requirement of client. This is helpful to analyse the risk which is related to the construction
project and provide help to formulate the mitigation strategies. While doing technical solution it
is important to understand the requirement of party, capabilities and the competitive
environment. A technical solution has not stand-alone factor in context to the efforts and it can
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be influence by & drivers which are associated to the other elements of proposal. It is the
responsibility of engineers to find appropriate solution of the problem. It is important to make
coordination between cost, price and budget. To follow the technical approach, it is require to
evaluate the demonstrate tools, methodologies which provide help to the client. As legal advisor
of project team is responsible to consider the country law & international good practice advice
related to project design, bidding through financial close and proper communication with the
project team. The project design involves to analyse risk allocation regime, to consider tax &
insurance advisers, the rules and regulations which are related to construction work and to
analyse the legal risk with licensing. Before making the contract tender process have to be
follow which involves: procurements needed at state & federal level, designing pre-qualification
procedure & drafting pre-qualification documentation. There is a budget which is made by the
government and it contains the information that how much expenses will occur and on the basis
of it target on bid has to be set. The company which accept the bid at lower price and ensure to
provide quality work (Lane and McQuade, 2014).
Project team: The team which involve and responsible for the constructions and there are
various members in the team which are expert in a specific field
As the legal advisor will support the project team to develop operational & legal criteria to be
used in judging the suitability of prospective bidders, assist in providing clarifications & written
responses to bidders. This project team will develop the hub in context to the airport. To resolve
the problem there will be possible options is a master concession agreement which is the
combination of two distinct projects where as one for the airside facilities & other for the
landside facilities. As the construction team is experience and perform their work as per the
requirement (Fratzscher, 2012).
Institutional experience: As the government has exploring options to develop the airport
facilities & related infrastructure through public-private partnership.
Staff time: The staffs which work in the project are needed to be skilful and they are
professional. It is require that all persons know the language which is English and they have
knowledge about the region. It is required that all workers are experienced in the field of
construction so that work can be done effectively and targets can be achieve within stipulated
time period. If the staffs are experienced than they know to accomplish the task and what are the
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situations which can arise at the workplace so that critical situations can be resolve and work
can be done effectively as per the requirement. It is required that all staffs have to be graduate.
Propose time table: To complete the construction project there is a public- private partnership
has been made. As two different schemes has been analysed under a single 25-30 years MCA,
which provide design, construction & operation (Fan and Twite, 2012).
Financial proposal
The financial proposal contains the information that how the organisation will arrange the
funds in order to achieve the targets.
Finance is the most essential need of every construction project and without it, project can not be
started because to acquire raw material, to hire staffs, to buy land it is important.As the
preliminary calculations shows that BOOT is finance-able on a non-recourse basis, but only with
significant government financial support. Estimates for a million passengers/ year terminal seems
to reflect that BOOT for new terminal can begin operations with a base annual revenue. To
complete the work as per the required manner it is essential to make fixed budget budget. As
fixed budget is that which does not change over a period of time and it is based on a set volumes
of sales or revenue. It is important for the management to analyse the expenditures and cost
which incurred while making the construction project for the airport. There are various things
which are involved in fixed budget such as: staff time cost estimates (Byrne and Fiess, 2016).
While making the budget it is require to allocate the funds which has to be given to the
staffs as a salary and wages. It is important to decide the salary so that budget can be prepare on
the basis of it and it is a fixed expenses because for a certain period of time the salary of workers
does not increase. So it is require to determine staff time cost estimates. Travel cost occurs in
temporary travel assignment, air travel and local transportation, per diem mileage allowance,
lodging etc. It is fixed over a period of time and it is require to be consider while making fixed
budget. Other expenses are also considered such as: rent, taxes and other expenditures which is a
part of it.
There is a formula which is helpful to analyse financial scores: Sf = 100 x Fm / F. In this
SF represents the financial score for the advisor's financial proposal, FM is the minimum price
which is submitted by all potential advisors and F is the price of the proposal under
consideration.
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Risk sharing: Risk is involve in every aspects of construction project and it is the
responsibility of project manager to analyse the risk and try to make effective strategies to reduce
the risk. Risk has to be identified in budgeting during distinct project phases and to share the risk
of project progress is important. There are different phases in construction project which
involves: to review of legal analysis on PSP options & draft pre-qualification, technical and
financial risk. So these are the different types of risk which are needed to be identify so that
construction work can be done as per the requirement of government (Brander and Hellmann,
2015).
CONCLUSION
As from the above report, it has been concluded that it is important to manage the
construction phase so that work can be done as per the requirement. For that purpose technical
proposal and financial proposal is require to be consider.
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REFERENCES
Books and Journals
Brander, J. A., Du, Q. and Hellmann, T., 2015. The effects of government-sponsored venture
capital: international evidence. Review of Finance.19(2). pp.571-618.
Byrne, J. P. and Fiess, N., 2016. International capital flows to emerging markets: National and
global determinants. Journal of International Money and Finance.61. pp.82-100.
Fan, J. P., Titman, S. and Twite, G., 2012. An international comparison of capital structure and
debt maturity choices. Journal of Financial and quantitative Analysis.47(1). pp.23-56.
Fratzscher, M., 2012. Capital flows, push versus pull factors and the global financial crisis.
Journal of International Economics.88(2). pp.341-356.
Lane, P. R. and McQuade, P., 2014. Domestic credit growth and international capital flows. The
Scandinavian Journal of Economics.116(1). pp.218-252.
Vernon, R., 2017. International investment and international trade in the product cycle. In
International Business (pp. 99-116). Routledge.
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