Project Management Application: Construction (PROJ 6010)
Verified
Added on  2023/05/28
|16
|3249
|340
AI Summary
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.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
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:
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
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 toKubba (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 TypeLegal benefitsChallenges Stipulatedorlump-sum contract Single fixed price bid for all activities of project scope Contractorwouldbearthe riskassociatedwiththe project Reducingtheconstruction cost expense Proposition of Unbalanced bids Changes required for the scope and design deployment Compensation requirement for early completion Costofworkplusfee contract It is budget friendly for the contractor Cost can be reimbursed as the work is aligned Limitationonthemoney 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 thescopeforgainingmore profit from the project Cost of work plus fee with guaranteed maximum price (GMP) contract Easeisprocuringthe contracts for the project Easyaccumulationofthe funds for the project Incentiveoptionavailable for work completion No mechanism for calculating the losses to the contractor Losing the contract due to high pricing Constructionmanagement (CM) contract Inclusionofthe responsibilityforthe expertiseofentire management Thecontractiscontinuous irrespectiveoftheproject manger ConfidentialityDisputesare common in this contract Difficultyinmanagementof the conflicts in the project Design-buildordesign- and-construct(D&C) contract Single Point Responsibility Improved efficiency due to designandconstruction expertise Few Changes are required as theimplementationis simplified Increased Flexibility Owner Involvement is reduced Extracostofriskand contingencies plan Limited qualified designer and builders Larger and complex in nature
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4PROJECT MANAGEMENT APPLICATION Mitigation of Challenges Contract TypeChallengesMitigationofthe Challenges Stipulatedorlump-sum contract Proposition of Unbalanced bids Changes required for the scope and design deployment Compensationrequirementfor early completion Implication of the fair bid recognitionshouldbe implied NegotiableCompensation methodshouldbe followed Costofworkplusfee contract Requirement of justification for each of the costs No track of the indirect costs is another issue Pre-decided profitwould limit thescopeforgainingmore profit from the project Costmanagementplan should be developed Detailcost(bothdirect andindirect)shouldbe used Limited profit acquisition should be used Cost of work plus fee with guaranteed maximum price (GMP) contract Nomechanismforcalculating the losses to the contractor Losing the contract due to high pricing Contingency planning for the monetary losses Optimized costing should be used Constructionmanagement (CM) contract ConfidentialityDisputesare common in this contract Difficulty in management of the conflicts in the project Negotiationshouldbe followedforcontract development Design-build or design-and- construct (D&C) contract Owner Involvement is reduced Extracostofriskand contingencies plan Limited qualified designer and builders Larger and complex in nature Effectivecommunication strategies should be used Trainingshouldbe provided to the people Complexproject managementshouldbe 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,theprojectcompriseofdesigningandconstructingthebuilding,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). Thecontractwouldhelpinimprovingtheefficiencyduetodesignand 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 TheidentifiedchallengesfortheConstructionofRegencyPlazaHotelsand Condominiums project and their mitigation strategies are given below, Project Phase ChallengesTypeMitigation Strategy PlanningDelayinbuildingpermit approval is a major issue that resultinformingthemajor problems in completion of the project OperationalTimeManagementPlan alignedwithProject Baseline ConstructionManyminutechangesin conceptualdesignhadbeen resultinginformingchange requirements for the project DesignChangemanagementplan should be used for effective change implication ConstructionDelayinconstructionof condominiums would result in OperationalTimeManagementPlan alignedwithProject
6PROJECT MANAGEMENT APPLICATION causing loss to the organizationBaseline ConstructionRiftbetweencontractors(of hotelandcondominiums)for workerdistributionasthe numberofworkershave reduced to 250 and the amount ofworkrequiredfor constructionofhoteland condominiums is huge HumanEffectiveCommunication planshouldbeusedfor analyzingtherequirements of both the contractor and hiringmoreworkersfor completion of the project on time FinishUnable to meet the punch list as the smaller items of the hotel andcondominiumsarenot being equipped Procuremen t Continuousimprovement planstepsshouldbe followedfordefiningthe works of the punch list Approach for on-time delivery of project As per the study ofLevy (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
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
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/ UnitsCostTotal Human Resources Project Manager$450.00250$112,500.00 Designer for Hotel$300.00130$39,000.00 Designer for Condominiums$300.00150$45,000.00 Contractor for Hotel$350.00300$105,000.00 Contractor for Condominiums$350.00350$122,500.00 Workers (250 workers)$110.001300 $35,750,000.0 0 Painter$250.00200$50,000.00 Carpenter$250.00280$70,000.00 Sub Total$36,294,000.00 Material Resources$0.00 Construction Materials$150,000.00250 $37,500,000.0 0 Equipment and Appliances$130,000.00400 $52,000,000.0 0 Others$15,000.00200$3,000,000.00 Sub Total$92,500,000.00 Fixed Cost Electricity$250,000.001$250,000.00 Water utility$200,000.001$200,000.00 Transportation$75,000.004$300,000.00 Health and Safety$100,000.005$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, WBSTask NameDurationStartFinish 0ConstructionofRegencyPlazaHotelsand Condominiums 370 days Mon 12/5/05Fri 5/4/07 1Planning61 daysMon 12/5/05 Mon 2/27/06 1.1Requirement Analysis10 daysMon 12/5/05 Fri 12/16/05 1.2Bidding Process15 daysMon 12/19/05Fri 1/6/06 1.3Hiring of Team Members10 daysMon 1/9/06Fri 1/20/06 1.4Proposal10 daysMon 1/23/06Fri 2/3/06 1.5Building Permit Approval15 daysMon 2/6/06Fri 2/24/06 1.6Initial Meeting1 dayMon 2/27/06 Mon 2/27/06 1.7Kick off0 daysMon 2/27/06 Mon 2/27/06 2Construction247 daysTue 2/28/06Wed 2/7/07 2.1Conceptual Design17 daysTue 2/28/06Wed 3/22/06 2.2Detailed Design24 daysThu 3/23/06Tue 4/25/06
9PROJECT MANAGEMENT APPLICATION 2.3Floor Works35 daysWed 4/26/06Tue 6/13/06 2.4Steel and Concrete Works40 daysWed 6/14/06Tue 8/8/06 2.522 storey construction50 daysWed 8/9/06Tue 10/17/06 2.696 Condominiums were built60 daysWed 8/9/06Tue 10/31/06 2.7Underground Parking were built30 daysWed 11/1/06 Tue 12/12/06 2.8Hotel Room Division was built16 daysWed 12/13/06Wed 1/3/07 2.9Installation of equipment and devices at rooms and condominiums20 daysThu 1/4/07Wed 1/31/07 2.10Monitoring the facilities5 daysThu 2/1/07Wed 2/7/07 2.11Completed0 daysWed 2/7/07Wed 2/7/07 3Finish62 daysThu 2/8/07Fri 5/4/07 3.1Interior and External Paints20 daysThu 2/8/07Wed 3/7/07 3.2Finalize the works8 daysThu 3/8/07Mon 3/19/07 3.3Drapes and Pillow works10 daysTue 3/20/07Mon 4/2/07 3.4Counter Tops5 daysTue 4/3/07Mon 4/9/07 3.5Finish Plumbing and Electric12 daysTue 4/10/07Wed 4/25/07 3.6Complete Punch List7 daysThu 4/26/07Fri 5/4/07 3.7Closed0 daysFri 5/4/07Fri 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,
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
10PROJECT MANAGEMENT APPLICATION Construction of Regency Plaza Hotels and Condominiums PlanningConstructionFinish 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 DescriptionActivities InvolvedMilestone PlanningInitialanalysis, documentation,and planningwouldbe done in this phase Requirement Analysis, Bidding Process, Hiring of Team Members, Proposal, Building Permit Approval, and Initial Meeting Kick off ConstructionConstructing the hotel, Condominiums,and parking lot ConceptualDesign,DetailedDesign,Floor Works, Steel and Concrete Works, 22 storeys construction,96Condominiumswerebuilt, Underground Parking were built, Hotel Room Division was built, Installation of equipment and devicesatroomsandcondominiums,and Monitoring the facilities Completed FinishFinalClosureofthe projectwithlast 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, Methodof Communication SenderReceiverFrequenc y Information EmailsProject client/manager Project manager/team OnceChangeRequest, Progress Documents/ReportsProject team/manager Project manager/client WeeklyProjectIssues, Progress,and Completion MeetingsProject client/manager Project manager/team OnceProject Requirements Addressing Project Stakeholder Expectations The project stakeholder expectations would be addresses by the help of stakeholder engagement matrix, StakeholderInterestPowerImpact Client (owner of regency plaza)Projectoutputmeetingallscope items and quality HighHigh EndUser(renter/buyersofhotel rooms/condominium) Use of the end product of projectLowLow InvestorsReturns of the project investmentHighHigh Project managerCompletion of the worksLowHigh 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 ElementsRole ScheduleProjectTimelineforexecutionofthe activities CostEnsuring the usage of the resources QualityEnsuring the construction quality is met RiskManagement of the risk factors Lesson Learnt Thestudyhadhelpedinunderstandingtheimportanceofcontractmanagement, 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
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
13PROJECT MANAGEMENT APPLICATION Thestudyhadhelpedinunderstandingtheimportanceofcontractmanagement, 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 Bibliography Carden, L. L. & Boyd, R. O. (2012). Ethical and legal considerations for project managers. Mustang Journal of Business & Ethics 3, 10-23. Retrieved from the Torrens University Australia Library database. Chen, Q., & Jin, R. (2012).Safety4Site commitment to enhance jobsite safety management and performance.Journal of Construction Engineering & Management, 138(4), 509-519. Forgues, D. & Koskela, L. (2009).The influence of a collaborative procurement approach using integrated design in construction on project team performance.International Journal of Managing Projects in Business, 2(3), 370-385. Gorse, C. A. & Emmitt, S. (2009).Informal interaction in construction progress meetings. Construction Management and Economics, (27)10, 983-993. Kubba,S.(2010).Greenconstructionprojectmanagementandcostoversight.Oxford: Architectural Press. Lester,A.(2014).Projectmanagement,planningandcontrol:managingengineering, construction and manufacturing projects to PMI, APM and BSI standards(6th ed.). Oxford: Butterworth-Heinemann. Levy, S. M. (2010).Construction process planning and management.Oxford: Butterworth- Heinemann [D1, D2, A]. Olawale, Y. A. & Sun, M. (2010).Cost and time control of construction projects: inhibiting factors and mitigating measures in practice.Construction Management and Economics, 28(5), 509-526
15PROJECT MANAGEMENT APPLICATION Project Management Institute, Inc. (2007). Construction extension to the PMBOK Guide (3rd edition). Sacks, R., Koskela, L., Dave, B. A. & Owen,Information modeling in construction.Journal of Construction Engineering and Management, 136(9), 968-980. Sundaram, V. (2008).Essentials of design phase cost management and budget control.Cost Engineering 50(2), 24-28. Tuuli,M.M.,Rowlinson,S.&Koh,T.Y.(2010).Controlmodesandmechanismsin construction project teams: drivers and consequences.Construction Management and Economics, 28(5), 451-465.