Design and Construction of Office Complex: Business Planning Report

This report provides a comprehensive literature review on the formulation and business planning aspects of designing and constructing an office complex for the School of Environmental Design Technology. It identifies critical issues and problems related to the construction process, including poor productivity, skilled labor shortages, project performance concerns, and sustainable design challenges. The review analyzes these problems through critical analysis of tendering, procurement, financial, and material issues. It explores project formulation principles, project planning, and the roles of project managers, as well as business planning elements such as objectives, mission, market analysis, and cost details. The report compares the project's challenges with those of other construction projects and concludes with a summary of findings and recommendations for successful project execution. The report uses a variety of sources to support the analysis, and it follows APA formatting guidelines.

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

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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.