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

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.

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

3FORMULATION AND BUSINESS PLANNING
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

4FORMULATION AND BUSINESS PLANNING
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

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organizations try to keep their profit margins quite high. The companies are
facing a loss of on budget as well as on time projects (Finkel, 2015). Constructing
an office complex requires more time than expected which increases the cost
invested as well as the time require. according to a study carried out by
Accenture, it has been found that the among the total number of construction
carried in a country, only 30% of the projects are completed within the expected
budget and only 15% of all are delivered within the expected time. Besides this,
several projects have been underperformed (Finkel, 2015). Project performance is
an important factor for any project including the construction of an office
complex. Delay in the project affects the stakeholders as well as the end users.
 Sustainable concerns: the construction field is the greatest consumer of various
raw materials. It releases almost 25% to 50% of the carbon that is generated all
over the world (Ye, Ren & Shi, 2018). The amount of natural resources utilized
by the construction industry is not at all sustainable. It could even compromise the
surrounding environment for the industry’s growth. Water management and
change in climate are one of the dangerous issues that create a negative impact on
the environment. This also affects the growing industry of construction (Ye, Ren
& Shi, 2018). The huge amount of carbon emitted by the construction industry is
very difficult to reduce especially in the developing countries. A sustainable
design and smart planning might contribute in reducing the amount of energy
consumed by the industries (Ye, Ren & Shi, 2018). This as a result would also
help in reducing pollution.

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2. Literature review
2.1 Critical analysis
The construction of office complex in South Wales would face various problems. These
problems are critically analyzed in the following part: various problems are
 Tendering problems: a standard way of tendering in a competitive way has
various weaknesses as well as limitations (Zainon, Chuing & Mohd-Rahim,
2018). It includes the exchange of various data along with technical knowledge.
This result in bargaining that cannot be carried out for developing better relations.
This does not provide any chance to the construction teams to integrate with each
other. This is because the contractor is not allowed to get involved when the
design phase is carried out (Zainon, Chuing & Mohd-Rahim, 2018). Construction
or design stages are comparatively longer than the tender stages; because of this,
the bidders are pressurized to complete their work within deadlines (Zainon,
Chuing & Mohd-Rahim, 2018). This pressure results in errors in the costing,
which increases the chance of risk. The tendering process is already very
expensive. More than 80% of bidding carried out by various companies is
unsuccessful which makes them to utilize the entire cost or handover to another
client.
 Procurement problems: the procurement of work under the construction project
has been following traditional project (Forsythe & Wilkinson, 2015). This
approach allows the client to engage various organizations for approaching three
key services of construction, measurement as well as cost advice and design.

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Traditional procurement has various problems (Forsythe & Wilkinson, 2015). The
necessity of the design to develop completely prior the tenders gets prepared
results in long duration of completing the project. It also increases the cost
invested in the project because the overall time of the project is increased. The
nomination part of the project does not have the ability to control and organize the
functions of subcontracts that are nominated for the project (Forsythe &
Wilkinson, 2015). This is because the subcontractors are not loyal to the
contractor compare to the architect who has nominated them. In most of the
projects, the designing phase and the construction phase are separated. This tends
to creates an attitude of ‘them and us’ among the contractors and designers
(Forsythe & Wilkinson, 2015). This creates a bitter relationship among them and
reduces the team spirit between the teams. The reduction of team spirit is the
major threat for the project. This might not provide success to that particular
project. The traditional method has been very unsatisfactory for complex and
large projects that need systems regarding advanced management, skills and
structures (Forsythe & Wilkinson, 2015). This system works in a systematic
format which results in lengthy period of construction and design. It also results in
poor communication among the teams as well as clients (Forsythe & Wilkinson,
2015). The traditional method responds to the late demands of stakeholders, this
result in delay of the delivery of project as well as increasing the amount of cost
incurred in it.
 Financial problems: financial problems such as bargaining the wages and control
in project cost are disastrous for the construction industry (Walker, 2015). These

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factors also contain delayed payments, design changes and cost overruns. Late
payment to suppliers, sub contractors and contractors is the major reason for
which a project faces problems. These problems would not be solved unless
legislation is introduced (Walker, 2015). For solving the problem, a set of
solutions were introduced which ranges from building trust accounts to
introducing their interest on payment that is overdue. Cost overruns are other
challenges to construction industry. Cost overruns result in changes in the project
design. Similar to this, changes in design is the most important source of wastage
in construction process.
 Material problems: availability of material is one of the problems faced in the
construction industry (Myers, 2016). A huge amount of materials is wasted in the
process of construction. It has been found out that 10% of the raw materials used
in the field is wasted for some or the other purpose.
 Increase in material cost: if the construction process is increased, the raw
materials might remain of the same rate or the market price of the materials might
increase (Yeom, Seo & Kim, (2018). The increase in the price of raw materials
would increase in the cost invested in the particular project.
 Irregular labors: in order to carry out the construction process, the project needs a
group of labors. These labors have their individual roles in the project (Dind,
Lufkin & Rey, 2017). The absenteeism of the labors affects the project as well
and increases the time consumed in completing it. Either the task of the absent
labor stays undone or it is done by the remaining labors.

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 Technological problems: the traditional process was labor-intensive in nature. As
a result, the usage of machinery as well as plant had been used more in the
manufactured compared to the construction industry (Degens, 2016). The modern
construction process and the shorter deadline of project deliveries have made it
necessary to use equipments.
 Ineffective communication: During the process of construction, the
communication among the stakeholders has to be clear (Hannoudi, Lauring &
Christensen, 2016). Most of the times the stakeholders don not cooperate. This
leaves loophole in the process. The loopholes results in increasing the
construction process and the cost incurred in the process.
 Impatient owners: most of the time, the owners need the project to be completed
as soon as possible. This creates a pressure on the labors, which make them work
in a hurry and as a result the chances of error in between the project increases
(Hardin & McCool, 2015). The error in the project would break the trust of the
owner on the construction company and result in a spoilt brand image.
 Identification of risks: identification of risks in one of the most important
challenge for the construction company because it might spoil the entire project
(Presas, 2017). If the possible risks are identified before the project has been
started or when the project has just started, it becomes easier for the company to
carry out the project. If the risks are identified after the project has almost
completed or half completed, the project becomes more complex (Presas, 2017).
The project might fail and the office constructed might have various issues.

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2.2 Synthesis
From the details critical analysis it has been synthesized that, in order to accommodate
the clients most of the construction projects are being phased. There are different reasons for
which the phases are sequentially followed by the project managers and other project managers.
During the construction of a building within a single, logical phase with a smooth progression
from each of the project design phase through construction has almost become a more effective
as well as efficient and less expensive (Brito & Ferreira, 2015). In order to divide the work
pressure based on skills and knowledge the project should be subdivided among the project team
members (Alias, Zawawi, Yusof & Aris, 2014). If the allotted jb roles are successfully done by
each f the project team members then within estimated time the project manager will be able to
deliver the expected outcome to the project owner.
2.3 Project formulation principles
Before the initiation of the project several principles are to be considered. These
principles are as follows
 Be clear: prior to the initiation of project, the aim and objective of the project
should be clear to every stakeholder of the project (Smith, 2014). The focus of the
project should be clear to the coordinators, sub coordinators and labors. Miss
communication should not be encouraged among the stakeholders. This might
result in failing the project (Smith, 2014). Once the focus is clear, the members
can prioritize the activities and as a result, it would increase the success factor.

12FORMULATION AND BUSINESS PLANNING
 Planning: proper planning is the most important part of a project. Before a project
is initiated, the team members should carry out a proper planning (Zhang,
Pirzadeh & Lingard, 2018). Everyone should agree to the planning.
 Positive attitude: a positive attitude is very important for the project to succeed
(Zuo, Xia & Chen, 2016). The two main parts of this are maintaining a positive
relationship has two parts first being, maintaining a good relation with people
related to the project.
 Communication: communication should be maintained among the project
members. All the members should be interacting among each other (Guanxian,
Jun & Lingjie, 2015). The two parts of communication include coordinating the
project activities and keeping the stakeholders informed about the activities.
 Timing is everything: the project should be started within a specific time period.
If the project id completed before its deadline, labors can be provided with bonus.
This encourages them and increases their loyalty towards the company. if the time
consumed exceeds the expected time, the tea might amend the documents and add
some time to it.
 Sustainability: the project must be sustainable enough. Though the construction
industry emits a large amount of carbon dioxide and many other waste materials,
the project should take measures to control them.
 Materials: the materials used in the project should be pure so that it does not cause
any problem further.

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2.4 Project planning and the roles of the project managers
2.4.1 Project plan
During the construction of the technology based building this is necessary for the project
and the project team members to consider all necessary principle and components accordingly.
During the execution of this specific project proper processes for controlling the project and
keeping all records are referred to as indispensible tools for the managers and all other
participants involved in the process of construction (de Carvalho et al., 2015). In order to avoid
problems related to financial transaction and recording will be completely resolved if the project
manager play his or her allotted job role within estimated time period. It is the role of the project
manager to analyze the project planning sub phases accurately within estimated timeline. For this
project, the planning detail is elaborated below:
Activities Duration
Pre construction planning 30
Preparation of a construction drawing 10
Permission for foundation (G4 level) 10
Permission for the full building 5
3D blueprint presentation of the office building 5
Procurement phase 15
Subcontractor biding with interview 6
Approval and recommendation for the
subcontractors
4
Other raw material procurement (hardware and 5

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software)
Construction phase 200
Notice to proceed 10
Install solider plan 10
Concrete footing 10
Slab concrete 30
Concrete wall 30
Mechanical and electrical installation 30
Painting, traffic coating and marking 20
Interior outlining 30
Installation of cameras erect fence and other
security specification
5
Building department division 5
Fulfillment of the construction 5
Installation of all technical support to the office
building
5
Closure phase 10
Project team sing off 3
Contract signoff 3
Completion of construction of the building 4

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2.4.2 Roles of the project managers
For the construction project manager effective leadership skill is very much essential as
they over the roles of the subcontractors and workers. They must possess critical analytical skills
because they are responsible to design strategic management plan and problem solving activities
during the project development and evaluation time period (Fleming & Koppelman, 2016). For
the construction project manager another important role is taking necessary initiatives. In order
to secure new clients and to increase the market competitiveness their initiatives are very much
crucial (Harrison & Lock, 2017). They should have proper decision making abilities. In addition
to this, it is the role of the supervisor to show their excellent skill while hiring project team
members for the successful accomplishment of the building construction project within estimated
time phase.
Apart from this, the project managers also require to have unique technical skills along
with industry process ideas and blueprint evaluation. As the project is about “Design and
construction of Office Complex for the School of Environmental Design Technology” thus, it is
the role of the project manager to design the complex outline considering all security aspects.
They should have professional leadership and motivation power so that they can motivate the
rest of the associate project team members (Jalal & Koosha, 2015). Again they must specifically
follow the construction safety codes and ensuring the safety of the building labors and other
associates also. Proven quality raw materials are also needed to construct the office complex
(Hughes, Champion & Murdoch, 2015). Therefore, in order to design the office building
complex they should evaluate the design blueprint successfully before starting the construction.

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2.5 Comparison with issues and problems regarding this project with other project
It is the role of the construction project manager to design the office complex in such a
way so that it called be highlighted as the most connected and sustainable office building allover
Australia (Kerzner & Kerzner, 2017). Though for designing this building complex different
issues or problems has been faced those are different from other construction level projects.
The main issue associated to this project is lack of proper technical support. As the
project is based on “Design and construction of an Office Complex for the School of
Environmental Design Technology” thus, technical support is one of the most crucial
components for this. Again the associates of the project should have proper knowledge and skills
regarding the technical application (Mir & Pinnington, 2014). However, not everyone but some
of the project team members are not having clear vision regarding the proper application of
technology. This was a serious issue which interrupted the success of the project. On the other
hand, another office construction project has faced issues on improper preparation of project
budget. Due to incorrect estimation of budget, some of the planned technical specifications are
not incorporated to the construction project (Mok, Shen & Yang, 2015). In order to avoid such
issues this is the role of the project manager to design a project feasibility mode at the project
initiation phase. Apart from this, another aspect must be analyzed is clear investigation on all the
financial constraints.
The location chosen for the project is in outskirts area thus logistic was another major
issue faced by the project manager and the project team members associated to this project
(Oakland & Marosszeky, 2017). This risk involves equipment availability like labors, fuel,
spare parts etc. Due to its location it was difficult to move these equipments to the construction
location. In order to avoid this kind of logistic level issues it is necessary for the project manager

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to address the issues at the project initiation phase. In order to deign n error free office complex
for Environmental Design Technology the project manager is required to focus on the logistics
aspects (Ogunde et al., 2017). Another construction project of Sydney super market in Australia
has faced serious level managerial challenge. It is the role of the project manager to subdivide
the roles among the team members to make sure that within the estimated time phase the project
is being completed successfully.
Most of the construction project faces another issue which is environmental risks such as
natural disaster such as weather, seasonal implications etc. The natural environments are always
different from each other. A common weather risk management list should be prepared by the
project manager at the project initiation phase to make sure that the natural risks can be avoided
in some scale (Sears et al., 2015). The regional whether patter must be considered to avoid all the
environmental risks. Another school building construction project of New South Wales has faced
socio political risks.
2.6 Business planning
2.6.1 Overview
The ABC Commercial construction company is a well known construction company of
Australia which is hired by the office complex owners for designing the complex. It is the role of
the construction project manager and the project team members to design the office complex
following all factors so that all issues can be measurably avoided. The company has successfully
previously operated in Australia and for this complex also it is expected that the construction
company will operate effectively (Turner, 2016). The objectives, market structure, services,
financial consideration for this specific project are also elaborated in this project. With the

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successful financial structure the gross margin, sales and net profit can be obtained by the
finance manager and project manager. Based on the net profit margin the changes for this
specific project can also be requested by the construction project manager and other project
associates.
2.6.2Objectives
 To improve the profit margin and enhance the local market share including
significant commercial expansion
 To design a well structured and technology focused office complex with all
security measures and increase the market share
 To begin the service in terms of School of Environmental Design Technology
2.6.3 Mission
The mission of the construction company strives to offer quality interior technical
infrastructure to the employees and learners as well including site preparation, cost estimation,
construction, repair also. In addition to this, it also odder alteration to the consumers requiring
for large scale services in constriction services. After analyzing the detail requirements of the
construction project outline it is found that the aim of the construction company is to design a
commercial construction industry for the owners.
2.6.4 Key success
Nowadays the Australian construction market is booming. For achieving a defendable
position in the competitive market field it is necessary to consider the followings:
 To secure around four to five large scale commercial contractors in the coming
three years (Borse & Attarde, 2016)

19FORMULATION AND BUSINESS PLANNING
 Enhance the total market expenditure by around 20 percentage
 Expand the learners base by expanding the other geographic areas for retaining a
sufficient profit level
2.6. 5 Services
After detail analysis of the “Design and construction of Office Complex for the School of
Environmental Design Technology” project the services that are expected to be offered by the
office complex include the following:
 Building Information Modeling (BIM) is referred to as one of the most widely
used mechanism which supports the construction project (Rozali, 2015).
Therefore the contractors should follow the 3D printing modeling and BIM to
successfully complete the project within estimated time and budget.
 Another service expected from the BIM project is remodeling and alteration
 Permitting and site operation are also expected services to be done by the
construction project manager and the team members to design a suitable office
complex for the School of Environmental Design Technology (Shen, et al., 2015)
 Other services are carpentry, cement foundation, painting, plumbing etc
 Exterior renovation, utility installation, subcontractor’s assessment and evaluation
are the other services must be actively played by the project team
It has been expected that, if these activities are accurately evaluated by the construction
project manager and the associate project team members then the project will meet the critical
success criteria and objectives those are set at the very initial project development phase.

20FORMULATION AND BUSINESS PLANNING
2.6.6 Market analysis summary
The business growth over the past three to four years has become around 9% in average
and this is expected to be completed. This constitutes very attractive market for the commercial
contractors. The construction project manager is focused on the consumer’s behaviors that are
demand of the employee simultaneously. They are also responsible to provide as well
constructed network outline within the office complex so that it can gain effective technical
support throughout (Todorović, et al., 2015). The other services those are going to be offered by
the construction company are special facilities segments and restaurants. For different divisional
construction the constriction project manager will focus on different construction mechanism.
Sometimes general and sometimes specific facility construction mechanism are being followed
by the manager and other team members to successfully completing the office complex.
2.6.7 Market strategy
As it is determined that, building constriction gets the highest priority to gain an average
of profit margin. As the office complex is designing for School of Environmental Design
Technology, thus, the most important component on which they should focus is its infrastructure
(Walker, 2016). Strict accounting and supply management should be followed for
accomplishing the project.
2.6.8 Duties of the construction project supervisor
 Time to time the job site must be supervised by the constructor project supervisor
 Proper quality control by developing the building with quality raw materials
 Proper scheduling for the subcontractors and timely material delivery
 Verification of the work done
 Insuring that all the works are being done according to the construction guidelines

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2.6.9 Cost details
The details of the cost structure that has been estimated for “Design and construction of
Office Complex for the School of Environmental Design Technology” project is divided below:
Estimated cost % considered Cost/ SF Cost
Net cost $119.40 $2388,000
Fees estimated for the
contractors
25% $29.85 $597,000
Interior and design
cost
7% $10.45 $209,000
Total $159.70 $3,194,000
Open shop cost % considered Cost/ SF Cost
Net $110,38 $2207,500
Fees estimated for the
contractors
25% $27.59 $551,900
Architecture fees 7% $9.66 $193,200
Total building
budget
$147.63 $2,952,500
Conclusion
From the overall discussion it can be concluded that in order to design and construction
of an office for environmental design technology this is necessary for the construction project
team members to consider al basic project development principles. If any of the principle is

22FORMULATION AND BUSINESS PLANNING
being neglected by then the entire project may lead towards failure. Smart technically supported
building design can deliver flexible and comfortable occupants so that the energy can be
consumed accordingly. If the 3D building construction level guidelines are followed by the
constructors then the project will definitely deliver a successful design outline to the employee.
As much supporting working environment the designers will be able to provide that much the
rate of productivity will increase accordingly. The complete business planning is illustrated here
considering operational and functional components. For this project the issues that are occurred
with the issues of other constriction project of similar type are also illustrated in this report.
Moreover, it can be said that cost effective and sustainable design outline will definitely provide
a successful standard building to the employees who are working for the office building and the
students or learners who will come for successfully completing the learning course on their
desired subjects.

23FORMULATION AND BUSINESS PLANNING
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