Project Management Application: Construction (PROJ 6010)

Running head: PROJECT MANAGEMENT APPLICATION
Project Management Application: Construction (PROJ 6010)
Construction of Regency Plaza Hotels and Condominiums
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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