Construction Project Management Report: Subsea Oil Relocation

This report presents a comprehensive construction project management plan for the relocation of Subsea Oil Company from Aberdeen to a new business park. It details the background of the business case, emphasizing the need for relocation due to environmental factors and the inadequacy of the current headquarters. The report outlines project objectives, scope, deliverables, constraints, and a project development plan, including task sequencing, duration, dependencies, resource allocation, and optimization. It also covers a Work Breakdown Structure (WBS), project control mechanisms, the importance of performance criteria, negotiation skills, and strategies for addressing project scope changes initiated by the promoter. The project aims to maximize economic production, sustain supply chain growth, and provide opportunities for Subsea Oil Company, with a budget of £10 million and an estimated project duration of one and a half years for relocation. The report emphasizes the importance of BIM for project control and highlights the need for effective communication and risk management throughout the project lifecycle. It also includes a discussion on project option appraisals, considering the rationale for business cases, value for money, and lifecycle constraints, ensuring the successful relocation of the business.

Construction Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of Business Case.....................................................................................................1
Introduction of project including project objectives and scope with project deliverables..........1
A project option appraisals by taking the rationale for business case, value for money and life-
cycle constraints into considerations...........................................................................................4
A Project Development Plan.......................................................................................................4
WBS Structure............................................................................................................................6
Project control mechanism..........................................................................................................6
Importance of performance criteria on a project.........................................................................7
Measure of performance with justification of its significance....................................................7
Discussion on Negotiation skills with project issues .................................................................8
The way project should be respond towards the biggest issue “changes in the project scope
initiated by the promoter” including the procedures...................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Construction management of a project deals with consumption of available resources
such as men, material, machine and money economically, within least period of time (Dziadosz
and Rejment, 2015). Planning and scheduling refers to the important activities of any
construction project, that helps engineers for completing the project in defined schedule within
specified budget. The present assignment is based on of the construction project management,
where a firm named by Subsea Oil is relocating its business from Aberdeen to new business
park. So, a report is being presented here to organise meeting with clients for successful
completion of project.
MAIN BODY
Background of Business Case
Subsea Oil Company is one the manufacturing organisation of UK that deals its business
in Oil & Gas Industry. This industry plays a vital role in UK in its economic development of
Aberdeen, but due to highly dynamic nature, its becomes essential for such company to focus on
environmental factors that influences its business operations (de Carvalho, Patah and de Souza
Bido, 2015). Considering the internal review of corporate activities, it has been analysed by
management of respective firm that as it is currently headquartered in Union Street but due to
some circumstances, this place is not seem to longer fit for operating and manufacturing the
Subsea Vehicles, especially for testing and oil pipe joints. Therefore, it is going to relocate its
business from Aberdeen to new business park. Its new office will now build in the area of new
western outskirts of the city. This office will be built on 50k square feet area with two storeys.
Introduction of project including project objectives and scope with project deliverables
A project can be defined as a series of activities which are needed to be completed for
reaching the specific objectives. It also defined the set of outputs and inputs which are required
for achievement of a particular goal (Takey and de Carvalho, 2015). In this regard, a construction
project refers to a process of renovating, constructing, refurbishing and more, for building or
setting the infrastructure. In present case of Subsea Oil Company, a BID meeting for proposed
office in the outskirts of Aberdeen city to a new business park. In this regard, a project is
developed that includes entire activities of the proposed plan, including the manner in which it
1

will be constructed within budget and time. For this purpose, main aim and objectives of
respective construction project includes –
Project Aim: “To develop a construction plan for relocation of Subsea Oil Company's office in
outskirts of the city”
Project Objectives:
 To maximise the economic production and main resources of Subsea Oil Company by
relocating its business successfully
 To sustain the growth of supply chain of Subsea Oil Company by setting and supporting
the diversification strategy
 To provide an excellent opportunity for Subsea Oil Company by promoting its
capabilities
Project Constraints:
 Scope – As due to environmental factors the current place where Subsea Oil Company
has headquartered its business, seems not be fit for longer purpose (Carvalho and
Rabechini Junior,2015.). Therefore, shifting business in the location of Western outskirts
will prove beneficial for operating it successfully, for long period of time. In this regard,
by developing this project which includes a number of activities like action plan, risk
management plan, information and communication strategy etc. will lead to increase
scope of successfully relocation the business into new era, within specified budget and
time.
 Schedule – For setting the plan, project manager will focus on clients need then give
priority to building a great team who will responsible to complete the tasks, in defined
way (Gładysz and et. al., 2015). These tasks include development of project management
plan which includes activities like gathering the data related to clients need, budget and
time, action plan for organising, initiating and executing the same etc. For this purpose,
near about 1 month will be taken to complete the project, while for relocation of business
near about one and half year will be taken.
 Cost – This part of project describes the cost which is required by Subsea Oil Company
to be invested for relocation its business. In this regard, it has been estimated that for
achievement of present goal, near about £10m will be required, to relocate the business
successful.
2

 Quality requirement – In order to maintain the quality of project, information and
communication strategy has been developed. This includes to inform regularly the
stakeholders and project office about status report through electronic medium. In addition
to this, team meetings will regularly be scheduled with entire project team, with purpose
to review the detailed plans for maintaining the performance of project. For project
review, meetings will be organised on monthly basis with sponsors, project managers and
company's stakeholders (Brito and Ferreira, 2015). Similarly, timely team meetings,
project review and updated the action plan in case of any chance of failure management,
will help in maintaining the project quality in efficient manner.
 Resources – For relocation of business, resources which are mainly required by Subsea
Oil Company includes materials and man power, with sufficient amount of funds, so that
project can be implemented and executed successfully within set period of time (Mok,
Shen and Yang, 2015).
 Risk Tolerance – For controlling and managing the risks that might arise barriers in
completion of project, a risk management plan will also developed in following way -
Project Deliverables – This part includes the initiating, planning, executing, controlling &
monitoring and handover process for obtaining the outcomes. Here, for execution a
3

documentation system will be used, that helps in collecting and collaborating activities for
updating the plans within a structured environment (Brito and Ferreira, 2015). After setting the
whole activities within a time frame and specified budget, including strategies that needs to be
taken in case of failure of any task, the whole data will handover to company's stakeholders.
A project option appraisals by taking the rationale for business case, value for money and life-
cycle constraints into considerations
The main purpose of present business case is to successfully relocate the business of
Subsea Oil Company, within a specified budget. In this regard, purpose-built facility is
considered as the one of main option that can be chosen for successfully delivery the result
(Mok, Shen and Yang, 2015). Through this process, main factors like Financial and budget
process; Procurement & contract strategy; Project Methodology and Standards can be taken into
main considerations. Another main options for maintaining the scope of project, value for money
and desired resources (machine and man power), including the life cycle constraints that are
project scope, costs, schedule and other, involves Build the project team and Approach the right
commercial property expert. Hereby, for delivering the project deliverables it is essential for
highly involved the cross-team approach. In this regard, building the project team refers to be
better option as per the main requirement of project.
A Project Development Plan
For relocation of project the following plans will be taken into main consideration that
includes –
Step 1: Define the tasks – At this stage, all works that need to be done for relocating the
building of Subsea Oil will define first. It includes finding the sources for funding to arrange
near about £10m; identifying the contractors who will help in relocating the building in best way;
arranging the resources that are man and machine; implementing the tools for proper control of
project; etc. Along with this, for being aware of purpose of project plan, a proper Work
Breakdown Structure will be made, that defines all the tasks that need to be done for completing
the project.
Step 2: Sequence the tasks – After designing the project deliverables i.e. WBS of
project plan, second step is to sequence the activities. For this purpose, Gantt Chart can be
4

created which elaborates the feasibility of plan and allows project team to plot each activity
against time.
Step 3: Add Durations – As time for completion the project is set as 1 month, therefore,
under this step of project plan, it states to add duration of each task as shown in given Gantt
Chart.
5

Step 4: Add Dependencies and Constraints – Under this step, constraints are defined as
limitations which are also placed upon project like scope, schedule and cost, including resources,
quality requirement and risk tolerance. While project dependencies include the budget
assumptions, project progress, availability of some materials for immediate delivery etc. By
adding these aspects, action-based plan can be revised and re-planned for project completion
more efficiently.
Step 5: Add Resources – This refers to next step which states to add more resources by
proper allocation of cost, so that proper work can be made. Under present project, management
tools to estimate the overall project costs, materials, more labours on hour basis so that office can
be relocated within set duration (one and half a year)
Step 6: Optimise the plan to find better way – Improvising the plan is essential for
finding issues as well as generating the ideas, to ensure that project success can be achieved in
desired way. So, hereby, after completion of one-third activities, progress of project will be
checked and in case of any issue, proper action plan will be taken to reshape the remaining tasks.
Under this stage, Project manager will build a great team to find the right solution as well as
make proper decision on time (Gładysz and et. al., 2015). While for strengthening the project,
great relationship will be built by developing and maintaining the trust with company's
stakeholders. Similarly, for controlling and monitoring the risks, updating the stakeholders and
team members about progress will help in reducing chance of failure.
Step 7: Review the plan – For developing the project, the main points that will be
considered most includes Client's needs, technology, financial and budget process, architecture
and design, procurement and contract strategy etc. This stage refers to be more likely for success
of project, which assist to review the plan for ensuring that needs of overall stakeholders have
been addressed. This step also includes initiation, planning, executing, monitoring & controlling
as well as handover the project deliverables. It would help in maintaining the quality of project
as well.
6

WBS Structure
Project control mechanism
For managing the efficiency of a project, it is essential to implement the control
mechanism also, due to dynamic and complexity nature of construction project. Through this
process, project managers can entail more accurate and reliable information to stakeholders of
Subsea Oil Company, about the progress and successful deliverables. The project control
mechanism can be used for detecting the issues and taking corrective actions accordingly, for
maintaining the project efficiency. Under this project, Building information model (BIM) can be
taken as a tool for controlling the mechanism of project, it refers to the digital representation of
functional and physical characteristics of building project. This mechanism involves the
following -
 Provide support to make appropriate decisions
 Enhance communication for addressing the stakeholders' need
 Provide help to visualise the design solutions as well as make the executive process in
efficient and effective manner
 Support life-cycle and cost of system, by providing a baseline for monitoring and
controlling the project.
7

Thus, BIM allows the project manager for quickly optimising the construction schedule with
seasonable cost, changing material deliverables and availability.
Importance of performance criteria on a project
Performance criteria refers to the several standards through which project manager
measures the performance of whole project. Performance criteria is basically adopted by
business associations in order to aware team members about the requirement of project,
expectation of company, predetermined goals and objectives in effective manner (Sears and et.
al., 2015. It is highly important for project manager to emphasise on performance criteria as if in
case they do not focuses on this zone, then it would difficult for them to check that whether they
have worked as per the clients requirement or not. In context of present scenario, project
manager of construction site here develops performance management criteria on the basis of
their core requirements. This is basically on the basis of the three stages that is Pre construction,
construction and post construction (handover stage) stage. At pre construction stage project
manager develops performance criteria that all required information related to client, suppliers,
raw material, documentation etc. are gathered by the team members or not at the time of
executing work in effective manner. Performance criteria at construction stage states that team
members execute their work in the communicated manner or not (Fewings and Henjewele,
2019). They also ensures that whether assigned work with provided time frame are executed in
the same manner or not. In the last stage that is handover stage, performance criteria is highly
important because it allows project manager in checking that they completed the construction
work as per the requirement of customers or not. This can be effective done by taking feedback
from the customers or user towards the same constructed building.
Measure of performance with justification of its significance
As per the provided scenario, project manager of the Subsea Oil, has considered as
reviewing as the effective measure of the performance by which they can easily execute their
developed plan in effective manner. Here, it can be said that reviewing performance of whole
construction plan at every stage is highly important as it aware project manager about the actual
working activities of employees that whether they are working as per the provided instruction or
not (Walker, 2015). This also provides them support in accomplishment of every activity in
timely manner as per the provided instruction to them.
8

It can be said that if proposed measure is not taken by the project manager at the time of
constructing building for Subsea Oil then it could directly hamper deadline of the project as
project manager will not have any idea about the task growth that whether it is executing in the
same manner or not. This could directly place negative impact over actual finishing date or
project no one is tracking performance of workers.
Discussion on Negotiation skills with project issues
Negotiations basically refers to the method through which individual settle down
differences and avoid disputes as well arguments. Negotiation skill is highly important for
business manager as well as project in order to manage various requirements of situation as well
as people associated to it for attaining success in quicker manner (Shen and et. al., 2015). The
main aim of negotiation skill is that it allows project manager in building their relationship with
the client and also contributes in the effective fostering of goodwill as every associated
individual is satisfied with appropriate settlement. With reference to the current case, project
manager of Subsea Oil is required to have strong negotiation skill so that they can manage
convince client, suppliers and team executives in order to modify their interest according the
construction scenario. This will also support project manager in reducing influence of every
related issue without even developing feeling of difference in interest among respective
stakeholders (Demirkesen and Ozorhon, 2017).
Some of the major issues involved with the construction of building for Subsea Oil are
stated as below:
 Change in the work
 Late Instruction received by the client
 Differences in interest of client and project manager
 Ineffective contract that does not includes all essential details
 Incomplete drawing and designs that does not have vast scope
The way project should be respond towards the biggest issue “changes in the project scope
initiated by the promoter” including the procedures
Every project is consist of different issues that could affect their performance and project
deadline in negative manner. In context of the current case related to construction of Subsea Oil,
it can be said that its project manager has identified that major problem related to construction
was changes in the project scope developed by the promoter.
9