Formulation and Business Planning for Design and Construction of Office Complex for School of Environmental Design Technology

Running head: FORMULATION AND BUSINESS PLANNING
Formulation and Business Planning: Design and construction of Office Complex for the
School of Environmental Design Technology
Name of the student:
Name of the university:

1FORMULATION AND BUSINESS PLANNING
Table of Contents
Introduction..........................................................................................................................2
1. Problem identification 1000............................................................................................2
1.1 Issues and problem related to Design and construction of office complex for the
school of environmental design technology....................................................................................2
2. Literature review..............................................................................................................6
2.1 Critical analysis.............................................................................................................6
2.2 Synthesis......................................................................................................................10
2.3 Project formulation principles.....................................................................................10
2.4 Project planning and the roles of the project managers...........................................12
2.4.1 Project plan.......................................................................................................12
2.4.2 Roles of the project managers...........................................................................14
2.5 Comparison with issues and problems regarding this project with other project....15
2.6 Business planning........................................................................................................16
2.6.1 Overview...............................................................................................................16
2.6.2Objectives..........................................................................................................17
2.6.3 Mission.............................................................................................................17
2.6.4 Key success.......................................................................................................17
2.6. 5 Services............................................................................................................18
2.6.6 Market analysis summary.................................................................................19

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2.6.7 Market strategy.................................................................................................19
2.6.8 Duties of the construction project supervisor...................................................19
2.6.9 Cost details........................................................................................................20
Conclusion.........................................................................................................................20
References..........................................................................................................................22

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Introduction
This Literature review depicts the role of constriction and its principles that are to be
followed for the successful design of an office complex for the school of 6. In order to design a
technical environment the constructors should follow the basic norms as well as values of
construction. The issues or problems associated to design and construction of such office
complex are illustrated in this literature. In addition to this, the project formulation principles
must be followed by the constructors including project planning and the roles of the project
managers for the successful accomplishment of such project are also elaborated in this literature.
Not only this but also, the details business plan for this specific project are and its comparison
with other projects are also critically analyzed in this project.
1. Problem identification 1000
1.1 Issues and problem related to Design and construction of office complex
for the school of environmental design technology
Construction is a complex process that includes numerous steps and various stakeholders.
Sometimes the result of a construction process is different from what was planned (Roy & Jacob,
2015). This due to different suggestions from different stakeholders and the clash occurred due
to different thoughts. Sometimes the stakeholders do not cooperate and are not ready to
compromise. Architects are supposed to prepare a particular set of documents. These documents
are a reference to how the construction would be carried out. These documents should be
coordinated with the engineers, interior designers, waterproof consultants and landscape

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architects. At the end, it is a complicated set of data as well as confusing to many ( Roy & Jacob,
2015). In remotely situations, many conditions are not known as a result it is pronounced. As a
result, even if people have good intentions, wrong things are built (Simatupang & Sridharan,
2016). Construction of an office complex for the School of Environmental Design Technology
might face many challenges. These challenges are as follows.
 Poor productivity as well as profitability: nowadays entering into the construction
industry is an easy job (Simatupang & Sridharan, 2016). People hardly find
barriers in doing so. This creates a market with high competition. The competition
decreases profit margins as well as constrains important investments in good
practices of business and new technologies. The permanent labor productivity for
construction has resolved the problem. On the other hand, some businesses had
gained a boost on productivity of labors. As per the study carried out by
Construction Owners Association of America, 63% of time invested in
construction is wasted because the labors need to wait for the materials, travelling
to the area of construction, equipments needed for it, taking early breaks and
panning regarding the work. This lack of the production affects the overall result.
As a result the construction organizations are trapped between the stagnant
production and shrinking their profit margins (Mahmoudi, Ghasemi &
Mohammadfam, 2014). Poor productivity and profitability affects the project in a
negative way.
 Shortage of well skilled labor: construction industry has faced a reduction in the
number of labors (Ashworth & Perera, 2018). According to Associated General
Contractors of America, it was found that the 74% of personnel say that there is a

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lack of skilled labors and 53% of them say that they cannot afford to hire an
estimator, engineer and a supervisor. Before the recession that has occurred
recently, it was considered that the construction industry is divided into two
generations, first being the traditional one and second, the baby boomers
(Ashworth & Perera, 2018). Now it has four generations, traditionalists,
Generation X, millennials and baby boomers. The diversification of labor has
become a threat because of huge differences in attitude, behavior among the
generations, work ethic and stark differences. Most of the projects do not have
enough number of skilled labors; they hire new people for the project and train
them, after the project is over, most of the labors leave the project and some leave
even before the project is completed (Ashworth & Perera, 2018). This would
result in hiring new people for the next project and again train them. This affects
the construction company as well as the project greatly. Along with that, the
company needs to invest in the training, which is wasted when the labors leave
(Ashworth & Perera, 2018). The combined decreasing experience and increased
complexity in project contributes risks for the company. It is difficult to hire an
already skilled labor that does not require any training. For this, the company has
to invest more, because the demand of skilled labors is higher than the unskilled
labors.
 Project performance: the rate of opportunities in a construction industry has been
growing but along with this, the project complexity grows as well (Finkel, 2015).
Companies set their profit margins very low; as a result, one production surprise
has the capability to wipe out the particular county’s profit. Construction