Project Management Application: Construction (PROJ 6010)

This project management application is for the Construction of Regency Plaza Hotels and Condominiums project. It covers project contracts, pre-planning, controlling communication, and closure. It also includes a work breakdown structure, on-time delivery approach, and cost management plan. Mitigate challenges and manage costs effectively.

Running head: PROJECT MANAGEMENT APPLICATION
Project Management Application: Construction (PROJ 6010)
Construction of Regency Plaza Hotels and Condominiums
Name of the Student:
Student ID:
Name of the University:
Author’s note:

1PROJECT MANAGEMENT APPLICATION
Table of Contents
Introduction......................................................................................................................................2
Part A: Project Contracts.................................................................................................................2
Legal benefits and Challenges of different types of contracts.....................................................2
Mitigation of Challenges.............................................................................................................4
Selection and Justification of the Design-Build-Contract...........................................................4
Part B: Project Pre-Planning............................................................................................................5
Part C: Controlling Communication..............................................................................................10
Part D: Project Close-out...............................................................................................................12
Conclusion.....................................................................................................................................12
Bibliography..................................................................................................................................14

2PROJECT MANAGEMENT APPLICATION
Introduction
According to Kubba (2010), the project planning and development had been largely
helpful for the implication of the innovative and effective work completion. The project plan
would be effectively implied with the formation of the project case study of ‘Construction of
Regency Plaza Hotels and Condominiums’. The project management for construction projects
would be required for the integration of the smart work alignment and development (Gorse &
Emmitt, 2009). The following assignment would include the listing of the project contract
management, project planning, controlling communication, and closure for the mentioned
project. The document would support the successful transfer of the information to the required
stakeholders.
Part A: Project Contracts
Legal benefits and Challenges of different types of contracts
The project contracts are helpful for developing the bond of work-fee between two or
more parties (Forgues & Koskela, 2009). The participating parties would agree to deliver
product/service to the other party in exchange of monetary benefits. The contract would also
enable the stabilization of the advanced work alignment for the project of Construction of
Regency Plaza Hotels and Condominiums. The contract management for the organization had
been supported by the utilization of the contracts like Stipulated or lump-sum contract, Cost of
work plus fee contract, Cost of work plus fee with guaranteed maximum price (GMP) contract,
Construction management (CM) contract, and Design-build or design-and-construct (D&C)
contract (Chen & Jin, 2012). These contracts have helped in gaining legal benefits along with
some challenges as explained below,

3PROJECT MANAGEMENT APPLICATION
Contract Type Legal benefits Challenges
Stipulated or lump-sum
contract
Single fixed price bid for all
activities of project scope
Contractor would bear the
risk associated with the
project
Reducing the construction
cost expense
Proposition of Unbalanced bids
Changes required for the scope
and design deployment
Compensation requirement for
early completion
Cost of work plus fee
contract
It is budget friendly for the
contractor
Cost can be reimbursed as
the work is aligned
Limitation on the money
expended by the contractor
Requirement of justification for
each of the costs
No track of the indirect costs is
another issue
Pre-decided profit would limit
the scope for gaining more
profit from the project
Cost of work plus fee with
guaranteed maximum price
(GMP) contract
Ease is procuring the
contracts for the project
Easy accumulation of the
funds for the project
Incentive option available
for work completion
No mechanism for calculating
the losses to the contractor
Losing the contract due to high
pricing
Construction management
(CM) contract
Inclusion of the
responsibility for the
expertise of entire
management
The contract is continuous
irrespective of the project
manger
Confidentiality Disputes are
common in this contract
Difficulty in management of
the conflicts in the project
Design-build or design-
and-construct (D&C)
contract
Single Point Responsibility
Improved efficiency due to
design and construction
expertise
Few Changes are required as
the implementation is
simplified
Increased Flexibility
Owner Involvement is reduced
Extra cost of risk and
contingencies plan
Limited qualified designer and
builders
Larger and complex in nature

4PROJECT MANAGEMENT APPLICATION
Mitigation of Challenges
Contract Type Challenges Mitigation of the
Challenges
Stipulated or lump-sum
contract
Proposition of Unbalanced bids
Changes required for the scope
and design deployment
Compensation requirement for
early completion
Implication of the fair bid
recognition should be
implied
Negotiable Compensation
method should be
followed
Cost of work plus fee
contract
Requirement of justification for
each of the costs
No track of the indirect costs is
another issue
Pre-decided profit would limit
the scope for gaining more
profit from the project
Cost management plan
should be developed
Detail cost (both direct
and indirect) should be
used
Limited profit acquisition
should be used
Cost of work plus fee with
guaranteed maximum price
(GMP) contract
No mechanism for calculating
the losses to the contractor
Losing the contract due to high
pricing
Contingency planning for
the monetary losses
Optimized costing should
be used
Construction management
(CM) contract
Confidentiality Disputes are
common in this contract
Difficulty in management of the
conflicts in the project
Negotiation should be
followed for contract
development
Design-build or design-and-
construct (D&C) contract
Owner Involvement is reduced
Extra cost of risk and
contingencies plan
Limited qualified designer and
builders
Larger and complex in nature
Effective communication
strategies should be used
Training should be
provided to the people
Complex project
management should be
used
Selection and Justification of the Design-Build-Contract
The contract of Design-Build-Contract should be used for the completion of the activities
of the Construction of Regency Plaza Hotels and Condominiums project. The design bid build
contract would allow the flexibility of the works for managing the change requirements, and

5PROJECT MANAGEMENT APPLICATION
implication of the smart work development and implication management (Carden & Boyd,
2012). The construction of the hotel rooms and condominiums would require inclusion of the
design principles and construction of the facility.
Since, the project comprise of designing and constructing the building, floor,
condominiums, and parking, the utilization of the design and build contract would be helpful for
compiling work development. The single point responsibility in the design bid build contract
would allow the manager/contractor to get the complete authorization over the project activities
(Lester, 2014). The contract would help in improving the efficiency due to design and
construction expertise for the construction project. Moreover, only few changes are required as
the implementation is simplified using the contract which can be implemented due to the fact of
increased flexibility.
Part B: Project Pre-Planning
Identified Challenges and Mitigation Strategies of Project
The identified challenges for the Construction of Regency Plaza Hotels and
Condominiums project and their mitigation strategies are given below,
Project
Phase
Challenges Type Mitigation Strategy
Planning Delay in building permit
approval is a major issue that
result in forming the major
problems in completion of the
project
Operational Time Management Plan
aligned with Project
Baseline
Construction Many minute changes in
conceptual design had been
resulting in forming change
requirements for the project
Design Change management plan
should be used for effective
change implication
Construction Delay in construction of
condominiums would result in
Operational Time Management Plan
aligned with Project

6PROJECT MANAGEMENT APPLICATION
causing loss to the organization Baseline
Construction Rift between contractors (of
hotel and condominiums) for
worker distribution as the
number of workers have
reduced to 250 and the amount
of work required for
construction of hotel and
condominiums is huge
Human Effective Communication
plan should be used for
analyzing the requirements
of both the contractor and
hiring more workers for
completion of the project on
time
Finish Unable to meet the punch list as
the smaller items of the hotel
and condominiums are not
being equipped
Procuremen
t
Continuous improvement
plan steps should be
followed for defining the
works of the punch list
Approach for on-time delivery of project
As per the study of Levy (2010), the development of the project schedule and cost
baseline report would be helpful for defining the estimated cost and time requirements for the
Construction of Regency Plaza Hotels and Condominiums project. The on-time delivery of the
project would include the formation of the task checklist so that the implication of the effective
work alignment would be implied. The checklist development would enable the utilization of the
monitoring of the project completion. The following approach should be used,
Step 1- Using MS-Project for making schedule for the project (for example: it would help
in defining all activities of the project)
Step 2- Developing Task Checklist with expected durations (for example: it would help
in keeping track of the project progress)
Step 3- Development of resource management and risk management plan
Step 4- Consider all contingency plan for the project
Step 5- Monitoring the project performance

7PROJECT MANAGEMENT APPLICATION
Step 6- Change Management should be included
Step 7- Evaluation of the progress
Organization of Project cost
The project of Construction of Regency Plaza Hotels and Condominiums was set for the
budget of $157m. The construction of the condominiums would be effectively implied with the
implication of the resource usage. The project cost would be divided into human resource usage,
Cost of material usage, contingency cost, and fixed cost (Olawale & Sun, 2010). The following
is the budget management plan for the project,
Particulars
Standard
rate
Duration/
Units Cost Total
Human Resources
Project Manager $450.00 250 $112,500.00
Designer for Hotel $300.00 130 $39,000.00
Designer for Condominiums $300.00 150 $45,000.00
Contractor for Hotel $350.00 300 $105,000.00
Contractor for
Condominiums $350.00 350 $122,500.00
Workers (250 workers) $110.00 1300
$35,750,000.0
0
Painter $250.00 200 $50,000.00
Carpenter $250.00 280 $70,000.00
Sub Total $36,294,000.00
Material Resources $0.00
Construction Materials $150,000.00 250
$37,500,000.0
0
Equipment and Appliances $130,000.00 400
$52,000,000.0
0
Others $15,000.00 200 $3,000,000.00
Sub Total $92,500,000.00
Fixed Cost
Electricity $250,000.00 1 $250,000.00
Water utility $200,000.00 1 $200,000.00
Transportation $75,000.00 4 $300,000.00
Health and Safety $100,000.00 5 $500,000.00

8PROJECT MANAGEMENT APPLICATION
Sub Total $1,250,000.00
Contingency
$20,807,040.0
0
Total Budget
$150,851,040.0
0
Work Breakdown Structure
The project schedule has been developed using the MS-Project as a scheduling tool and
the work breakdown structure identification can be done from the schedule developed below,
WBS Task Name Duration Start Finish
0 Construction of Regency Plaza Hotels and
Condominiums
370
days
Mon
12/5/05 Fri 5/4/07
1 Planning 61 days Mon
12/5/05
Mon
2/27/06
1.1 Requirement Analysis 10 days Mon
12/5/05
Fri
12/16/05
1.2 Bidding Process 15 days Mon
12/19/05 Fri 1/6/06
1.3 Hiring of Team Members 10 days Mon 1/9/06 Fri 1/20/06
1.4 Proposal 10 days Mon
1/23/06 Fri 2/3/06
1.5 Building Permit Approval 15 days Mon 2/6/06 Fri 2/24/06
1.6 Initial Meeting 1 day Mon
2/27/06
Mon
2/27/06
1.7 Kick off 0 days Mon
2/27/06
Mon
2/27/06
2 Construction 247
days Tue 2/28/06 Wed 2/7/07
2.1 Conceptual Design 17 days Tue 2/28/06 Wed
3/22/06
2.2 Detailed Design 24 days Thu 3/23/06 Tue 4/25/06

9PROJECT MANAGEMENT APPLICATION
2.3 Floor Works 35 days Wed
4/26/06 Tue 6/13/06
2.4 Steel and Concrete Works 40 days Wed
6/14/06 Tue 8/8/06
2.5 22 storey construction 50 days Wed 8/9/06 Tue
10/17/06
2.6 96 Condominiums were built 60 days Wed 8/9/06 Tue
10/31/06
2.7 Underground Parking were built 30 days Wed
11/1/06
Tue
12/12/06
2.8 Hotel Room Division was built 16 days Wed
12/13/06 Wed 1/3/07
2.9 Installation of equipment and devices at rooms and
condominiums 20 days Thu 1/4/07 Wed
1/31/07
2.10 Monitoring the facilities 5 days Thu 2/1/07 Wed 2/7/07
2.11 Completed 0 days Wed 2/7/07 Wed 2/7/07
3 Finish 62 days Thu 2/8/07 Fri 5/4/07
3.1 Interior and External Paints 20 days Thu 2/8/07 Wed 3/7/07
3.2 Finalize the works 8 days Thu 3/8/07 Mon
3/19/07
3.3 Drapes and Pillow works 10 days Tue 3/20/07 Mon 4/2/07
3.4 Counter Tops 5 days Tue 4/3/07 Mon 4/9/07
3.5 Finish Plumbing and Electric 12 days Tue 4/10/07 Wed
4/25/07
3.6 Complete Punch List 7 days Thu 4/26/07 Fri 5/4/07
3.7 Closed 0 days Fri 5/4/07 Fri 5/4/07
The first column has shown the WBS id for each of the activity which can be used for the
development of the WBD diagram as below,

10PROJECT MANAGEMENT APPLICATION
Construction of Regency
Plaza Hotels and
Condominiums
Planning Construction Finish
Requirement
Analysis
Bidding Process
Hiring of Team
Members
Proposal
Building Permit
Approval
Initial Meeting
Kick off
Conceptual Design
Detailed Design
Floor Works
Steel and Concrete
Works
22 storeys
construction
96 Condominiums
were built
Underground
Parking were built
Hotel Room
Division was built
Installation of
equipments and
devices at rooms
and condominiums
Monitoring the
facilities
Completed
Interior and
External Paints
Finalize the works
Drapes and Pillow
works
Counter Tops
Finish Plumbing
and Electric
Complete Punch
List
Closed
The specific work packages has been explained below,
Work
Package
Description Activities Involved Milestone
Planning Initial analysis,
documentation, and
planning would be
done in this phase
Requirement Analysis, Bidding Process, Hiring
of Team Members, Proposal, Building Permit
Approval, and Initial Meeting
Kick off
Construction Constructing the hotel,
Condominiums, and
parking lot
Conceptual Design, Detailed Design, Floor
Works, Steel and Concrete Works, 22 storeys
construction, 96 Condominiums were built,
Underground Parking were built, Hotel Room
Division was built, Installation of equipment and
devices at rooms and condominiums, and
Monitoring the facilities
Completed
Finish Final Closure of the
project with last
activities
Interior and External Paints, Finalize the works,
Drapes and Pillow works, Counter Tops, Finish
Plumbing and Electric, and Complete Punch List
Closed
Part C: Controlling Communication

11PROJECT MANAGEMENT APPLICATION
Communication Management Plan
The communication management plan would include the following steps for the project
of Construction of Regency Plaza Hotels and Condominium,
Method of
Communication
Sender Receiver Frequenc
y
Information
Emails Project
client/manager
Project
manager/team
Once Change Request,
Progress
Documents/Reports Project
team/manager
Project
manager/client
Weekly Project Issues,
Progress, and
Completion
Meetings Project
client/manager
Project
manager/team
Once Project
Requirements
Addressing Project Stakeholder Expectations
The project stakeholder expectations would be addresses by the help of stakeholder
engagement matrix,
Stakeholder Interest Power Impact
Client (owner of regency plaza) Project output meeting all scope
items and quality
High High
End User (renter/buyers of hotel
rooms/condominium)
Use of the end product of project Low Low
Investors Returns of the project investment High High
Project manager Completion of the works Low High
Level of Details Required

12PROJECT MANAGEMENT APPLICATION
The details of the project completion would be effectively implied with the formation of
the development strategies (Levy, 2010). The analysis would be developed effectively for
developing successful work alignment.
Part D: Project Close-out
Role of Project Elements
Elements Role
Schedule Project Timeline for execution of the
activities
Cost Ensuring the usage of the resources
Quality Ensuring the construction quality is met
Risk Management of the risk factors
Lesson Learnt
The study had helped in understanding the importance of contract management,
documentation, project planning, communication processes, and project closure. The use of MS-
Project software for developing the project schedule, Gantt chart, and Network diagram had been
effectively implied for taking care of the project completion. The study of the contracts for
identifying the benefits of Stipulated or lump-sum contract, Cost of work plus fee contract, Cost
of work plus fee with guaranteed maximum price (GMP) contract, Construction management
(CM) contract, and Design-build or design-and-construct (D&C) contract.
Conclusion

13PROJECT MANAGEMENT APPLICATION
The study had helped in understanding the importance of contract management,
documentation, project planning, communication processes, and project closure. The project of
‘Construction of Regency Plaza Hotels and Condominiums’ had been used for the analysis of the
importance of the project management principles and techniques for effective construction
management. The use of MS-Project software for developing the project schedule, Gantt chart,
and Network diagram had been effectively implied for taking care of the project completion. It
had allowed the significant management of processes and defining the explicit management of
the works. The study of the contracts for identifying the benefits of Stipulated or lump-sum
contract, Cost of work plus fee contract, Cost of work plus fee with guaranteed maximum price
(GMP) contract, Construction management (CM) contract, and Design-build or design-and-
construct (D&C) contract. The pre-planning phase had evaluated the various possible issues and
the challenges needed to address using the project management tools.

14PROJECT MANAGEMENT APPLICATION
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15PROJECT MANAGEMENT APPLICATION
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