Dear Members !Dear Members !Dear Members !Dear Members !Dear Members !

Wishing you all a very Happy Diwali !Wishing you all a very Happy Diwali !Wishing you all a very Happy Diwali !Wishing you all a very Happy Diwali !Wishing you all a very Happy Diwali !December is the month of huge celebration every year for our Member Families.

As usual, we have our Member Family PICNIC this year on Sunday the 30th December,2012 in an unique way with an aim to provide utmost joy to all our Members andtheir Families. This event may be a memorable one for every participant.

The venue, modalities of this event in detail will be intimated to all our Members indue course.

I hereby appeal our Members to extend their all-round cooperation in making thismega event a grand success.

(M.V.V.SATYANARAYANA)Chairman

CREDAI VISAKHAPATNAM 5

CREDAI VISAKHAPATNAM8The Competition

Commission of India isunderstood to have

suggested certainmodifications in the Buyers-

Sellers Agreements to bringdown the monopoly of

developers.

The move comes following Federationof Apartment Owners Association

approaching the CompetitionCommission of India to look into the Buyer

Seller Agreement, which they said wasskewed towards developers. The newly formed

Association has been formed to provideinformation about rules and regulation against

exploitation by developers.

“There is complete violation of the agreement by mostdevelopers, as the agreements are one-sided. We hadapproached CCI to probe the dominance ofdevelopers,” Gautam Gulati, Senior Vice-President,Federation of Apartment Owners Association, said.

Amit Jain, a member of the association, said the lackof a regulator has allowed malpractices to proliferate,

with consumers facing the brunt ofquestionable land acquisitions,allotments, misuse of buyers money anddelayed projects. FAOA said it will try towork in association with real estate bodieslike CREDAI and NAREDCO, amongothers.

Real estate experts pointed out thatconsumers have been seeking correctionin the clause, where a buyer is expectedto pay up to 18 per cent interest ondefaulting on the instalment. However, incase of a delay in delivery by thedeveloper, it pays only one to two per centas penalty charge.

Lawyers Business Line spoke to said theCCI’s view on modification in theagreement comes in the wake of the anti-monopoly watchdog being flooded withcomplaints against builders anddevelopers.

Most complaints include one-sidedagreements with buyers, cheating anddelayed projects among others.

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When offering our clients sustainabilityconsulting, Burnham does not merelyadvise our clients on the virtues of wellknown programs like the LEED(Leadership in Energy andEnvironmental Design) certificationprocess; we also speak with themabout all cutting-edge green buildingtechnologies. You may know thatbuildings are responsible for almosthalf (40%) of our total carbon footprintand that they produce forty percentof our solid wastes. However, with therise of green building technologies,buildings can shed their poorenvironmental image and claim a newenvironmentally friendly reputation.

We understand that as a contractoror architect, you’re focused on all ofthe intricacies of our project: acquiring

a permit, managing your workforce,meeting ADA and other

requirements, and much more. That’swhy we make it our job to be up onthe latest developments in greentechnologies and how to best utilizethem. Because builders may almostinstinctively turn to trusted greenmethods like wind- or sun-generatedpower sources, other emergenttechnologies may get overlooked.Here are a few to try now, or to keepyour eye on in coming years:

Insulated nano-coatings are one ofthose technologies that are still beingdeveloped. Currently this technologyis utilized in energy-efficient displayslike those used on e-readers, butengineers are also working to adaptinsulated nano-coatings so that theycan be used in buildings. Engineersare also working with OLEDs (organic

light-emitting diodes),which are currently

used in the displays of cell phones,portable media players, and digitalcameras, to develop them for use insmart windows (glass that can beelectrically controlled to allow indifferent amounts of heat or light).

In addition to the technologies stillbeing developed, our experts can talkwith you about existing technologies,how to use them in your projects, andhow to get the right permits for them.For instance, aerogels, a man-madematerial with the least density of anysolid, are currently being used withgreat efficacy as an insulating materialin windows and skylights.

As more green building technologiescontinue to be developed, oursustainable consulting team canadvise you on which ones to embracefor your next project. From thetechnologies mentioned above to self-cleaning materials to solartechnologies, we keep you apprised ofwhat’s current, what’s coming soon,and what will work best for you and

our planet.

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As India's economy grows, tens ofthousands of young Indians who havestudied overseas are heading back totheir homeland, drawn by rising livingstandards. It's a phenomenon knownas the reverse brain drain."There weremany people who thought I was stupidfor not settling there and having ahouse in the suburbs," says Janki Shahas she reflects on her decision to moveback to India from the United States.But for Janki the lure of picket fencesand neatly manicured lawns wasn'tenough to keep her in America. Likemany Indians, Janki left India to studyoverseas, hoping to gain a broaderworld view and a good education. Shestudied design in Atlanta, then workedin New York, before returning to Indiato start her own camping company.

"India is a very exciting market, andright now is a great time to come backto India to start something on yourown," she says. 'Untapped market' Twoyears ago, Janki and her husband setup Big Red Tent, a company that runs

weekends in the Indian countryside,and hopes to broaden the appeal ofcamping in India, where it is still notthat common. The economic downturnin the United States and a sense thatIndia was "more conducive" to newbusiness ideas was what drove themto start up a company back home.

Continue reading the mainContinue reading the mainContinue reading the mainContinue reading the mainContinue reading the main

“Start Quote India is now seen as amarketplace which people want tocapture, not just as a destination whichpeople use to lower their pricing”Avdesh Mittal Headhunter "If we werein the States we'd be one of manycamping companies in a saturatedmarket, whereas here we have thespace and support to start up.

"India is a fantastic untapped market,open to experimental and innovativeideas, and the middle classes nowhave the money and are willing to trynew things," says Janki. Culturalaffinity and family ties have often beenreasons why Indians return home after

studying. But the business potentialthat India offers right now, makes itan even more attractive prospect saysAvdesh Mittal, a partner at theMumbai branch of internationalheadhunters Heidrick and Struggles.

"The kind of funding that is nowavailable here in India was not availablein the past. It used to be Silicon Valleytypically where the young graduatescould find the money to make theirstartups, but now with the economicenvironment and the future so bright,there are more and more people willingto give these guys the money."

'Creating affluence''Creating affluence''Creating affluence''Creating affluence''Creating affluence'

Mr Mittal says his company has alsoseen a rise in the numbers of mid-career professionals returning home,attracted by a higher standard ofliving. "India is now seen as amarketplace which people want tocapture, not just as a destination whichpeople use to lower their pricing.

By Rajini Vaidyanathan

CREDAI VISAKHAPATNAM 13

"It is a place where professionals candrive revenue into the marketplace,and in turn it is creating affluence andimproving the quality of life," he says.

A recent study from the Kaufmanentrepreneurship foundation in theUnited States spoke to Indian andChinese professionals who had beeneducated in America. It found thatthe availability of economicopportunities, particularly when itcame to starting up businesses, as wellas pride in contributing to the homecountry's economic development werethe main reasons why people werereturning. The same report estimatedthat tens of thousands were nowcoming back each year.

WWWWWeak infrastructureeak infrastructureeak infrastructureeak infrastructureeak infrastructure

It is a stark contrast to a studyconducted in the 1960s of Indianstudents who had left for America.

India's weak infrastructure, corruptionand red tape were all cited as reasonswhy the 6,000 students studying inAmerica back then did not want toreturn to their homeland, accordingto the 1964 study by Mehdi Kizilbashfor the Comparative EducationReview. [image: Anish Thakkar andMayank Sekhsaria] Mayank Sekhsaria(r) left a job at Google to return toIndia and start a business with friends

The return of highly skilled andeducated graduates might be seen asa boost for India, but it is also aconcern to America. Some 52% ofSilicon Valley's startups were foundedby immigrants, according to researchconducted by researchers fromHarvard and Duke universities, andretaining this kind of brainpower is apriority for President Obama. In a

recent speech in El Paso, Texas, MrObama said visa regulations neededto be examined.

"Today, we provide students fromaround the world with visas to getengineering and computer sciencedegrees at our top universities.

"But then our laws discourage themfrom using those skills to start abusiness or a new industry here in theUnited States. Instead of trainingentrepreneurs to stay here, we trainthem to create jobs for ourcompetition."

"We don't want the next Intel or the nextGoogle to be created in China or India.We want those companies and jobs totake root here," said Mr Obama.

At present, the most common way foran Indian student to stay past theiruniversity education is to apply for aH1B visa, which requires a companyto sponsor the applicant. For Jankiand others in her position, there wasno easy mechanism to stay in Americato become a full-time entrepreneur.There are calls for the legislation to bereviewed to prevent a rise in the so-called reverse brain drain. SenatorJohn Kerry is one of the namesbacking a Start Up Act in the US whichwould allow visas to be issued tobudding entrepreneurs. AmericanDream, Indian reality MayankSekhsaria's story is one lawmakerssuch as Mr Kerry do not want to seerepeated. He left a job at Google inAmerica to return to India and start abusiness with friends. His company,Greenlight Planet, aims to bring lightand power to India's villages throughthe sale of solar power lamps. Mr

Sekhsaria, who is 26, says theopportunity to return and dosomething with a social cause wasdoubly rewarding.

"I 've always seen a tremendousopportunity and ability to make achange. This was limited for thegeneration before but the whole startup culture is developing here, andthat's exciting." But while many Indiansare choosing to return home, Mayanjbelieves they will still seek to studyabroad first, to gain a broad world viewand a good education.

"The Indian education system has alot to be done," he says, "We are stillgoing to see people go abroad andget that global perspective and comeback." With India's economic mightrising, it is likely that the numbersattracted back home will rise, and thatthe so-called American Dream willbecome more of an Indian reality.

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Move will benefit buyers in smalltowns; result in banks lending ataffordable rates

Banks want strategic changes inregulations, including revision in thedefinition of home loans under prioritysector and reduction in marginrequirement for buying a house, togive fillip to the housing sector.

Given the increase in property pricesin the last few years, an Indian Banks’Association committee hasrecommended to the Finance Ministrythat home loans up to Rs 35 lakh(extant limit: Rs 25 lakh) should getthe priority sector tag.

The move will lead to banks providingloans to house buyers at affordableinterest rates, said the committee onhousing sector. This will also benefit a

large group of customers in Tier- II andTier- III towns. Further, loans to buildersconstructing affordable homes costingwithin Rs 35 lakh a unit could beclassified as priority sector. Builders canthen get loans at preferential interestrates, thereby accelerating housingprojects in segments where the unit costdoes not exceed Rs 35 lakh.

Loans (up to a certain limit) given bybanks to categories such asagriculture, micro and smallenterprises, micro credit, educationloans, housing loans, export credit andweaker sections are classified aspriority sector lending.

The committee observed thatcustomers were finding it difficult tostump up 20 per cent margin as wellas pay for stamp duty and registration,

and other charges, which aggregateto as high as 25 to 30 per cent of thevalue of house property.

In order to mitigate this, the committeeis of the view that banks should fundup to 85 per cent of the cost of house(that is reduce margin from 20 percent to 15 per cent).

Margin requirementMargin requirementMargin requirementMargin requirementMargin requirement

Bringing down the margin wouldincrease the ability of customers tobuy homes.

Historically, housing and landedproperty has indicated a rising trend,which would result in better loan-to-value ratio (the amount of loan givenby the bank/ value of property) insubsequent times, said the committee.

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Banks have indicated to the FinanceMinistry their willingness to give a pushto the slowing economy by fundingbuilders developing housing projects,especially for the aam aadmi (commonman).

They will consider giving a portion (20per cent) of the project-specific term loanas cash credit (CC) to bring down theinterest cost. CC is a short-term loan limitwhereby the borrower can draw fundsas and when required and pay interestonly on the amount utilised.

Banks will support residential projectswhere the unit size and pricing are suchthat the affordability is within four to fivetimes the annual income of the customers

Revival via housingRevival via housingRevival via housingRevival via housingRevival via housing

To kick-start unfinished residential projectswhich are stuck due to cash crunch,bank loans could replace builders’ highcost borrowings from the informal sector,provided the benefit of reduced cost ispassed on to the buyers.

The aforementioned suggestions, madeby an Indian Banks’ Associationcommittee headed by Corporation Bankchief Ajai Kumar, are, however, subjectto the central bank backing theirinitiatives. They are aimed atencouraging builders to constructaffordable homes and bring down thehigh property prices.

If the suggestions are accepted, then theywill have a salubrious impact on not justthe real-estate sector but also on a hostof allied sectors including steel, cement,and construction equipment.

This will create employment and notchup the GDP growth, said a senior publicsector bank official.

Affordable housing projects, with soundescrow account mechanism, coming upin Tier-2 and Tier-3 cities will be givenmore priority by banks.

Loans to house allottees go into theescrow account, which are shared in anagreed proportion between the buildersand the lenders. This leads to the gradualclosure of the project loan through fundsreleased against individual loans.

Banks may enter into a tripartiteagreement for housing loans with theindividual borrower and builder/owner ofthe land to safeguard the interests of theborrower/bank in the event of non-delivery of completed flat.

As required by State/localauthorities for issueof no-objectionc e r t i f i c a t e s /approvals, banksmay consider issuingbank guarantee forthe performance ofhousing projects by

builders.

Banks and builders want the central bankto revisit the loan restructuring policy sothat term/construction loans get thebenefit of recast in case of delay inprojects.

Delays happen as operations at theground level depend on a multiplicity offactors, including obtaining statutoryapprovals.

Lower rates of interest may be consideredby banks for projects above a thresholdlevel of external credit rating.

Buyers becoming wearyBuyers becoming wearyBuyers becoming wearyBuyers becoming wearyBuyers becoming weary

The bank official said that investors aswell as end-users are showing wearinessin buying homes.

The housing market is in a state of flux.While builders have purposely withhelddisposing of flats at rates lower than theirpre-fixed rates on expectation that themarket will strengthen in due course,buyers are hoping that the real estatemarket will weaken.

In the financial year so far, home loans inthe banking system edged up by 3.84per cent to Rs 4,18,200 crore as onAugust 24, 2012.

Home loan growth in the correspondingperiod last year was a tad higher at 5.22per cent to Rs 3,64,200 crore as onAugust 26, 2011.

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What exactly are Project Managementand Construction Management?These two terms have been used inter-changeably in the local context thatover time, there has been a lot ofconfusion when performanceexpectations kick in. This is more sowhen foreign consultants are involved.

Project Management in the localcontext, normally involves the sitemanagement team (Project Manager)in managing the Works Contract,ensuring full compliance with the termsand conditions of contract by both theContractor and Employer. Projectmanagement should ideally begin withthe inception of the project, meaning,commencing from the masterplanningright through to sketch design,

detailing, contract documentation,contract procurement andconstruction. In so doing, the ProjectManager has to manage the taskingand scheduling of the design anddocumentation phase of the projectand subsequently, control the qualityof the Works as specified in theContract, monitor the completionschedule and assisting the Contractorto manage the time schedule. TheProject Manager should also be in aposition to advise on the appointmentof consultants and site staff, andrecommend contractualarrangements and certify entitlementof cost variations and time claims byContractor. These tasks can only beaccomplished successfully with the

able assistance of the other keyConsultants, such as Architects,Structural Engineer and MEPEngineers and also the SiteSupervisors.

Construction Management, as iswidely practiced locally, involves theconstruction management team(Construction Manager) calling andmanaging the various sub-contractWorks such as RCC structure,brickworks, plastering, etc. TheEmployer normally has its staffperform the role of ConstructionManager, but of late, has out-sourcedsuch services. In theory, theConstruction Manager not only hasto appoint sub-contractors but also

CREDAI VISAKHAPATNAM 23

has to manage and coordinate theirworks and ensuring completion ontime and with good quality. In reality,time factor often override the qualityfactor.

Aspects of PAspects of PAspects of PAspects of PAspects of Project Managementroject Managementroject Managementroject Managementroject Management

Project Management, therefore, is amore holistic approach towardsmanagement and is only possiblewhen the contractual arrangementcalls for only a main contractorperforming all the works in the project,whether by their own workers or sub-contracted out to specialist sub-contractors. The Project Manager’smain responsibilities are to manageand supervise the project and Workssuch that it is completed on time, withgood quality and within reasonablecosts. The Project Manager thereforemust have the pre-requisite knowledgeand experience to plan the pre andpost construction activities, as well asmonitor the construction schedule andwork closely with the Contractor to re-schedule or expedite works whennecessary. The Project Manager mustalso have considerable knowledge ofconstruction details and methodologyin order to prevent poor workmanshipfrom cropping out. The ProjectManager must also possess theknowledge of appropriate use ofmaterials and finishes and gooddetailing and construction methods toassist the Employer and Contractor torein in unnecessary cost over-runs.

It must be borne in mind that goodquality and workmanship do not meanthat it will result in more costs or thatyou need more time to complete theWorks. Quality works, timeliness andreasonable costs are not mutuallyexclusive. All you need is betterplanning, better detailing and bettersupervision. A good Project Managerwill go a long way in delivering aquality product within reasonable timeand cost. And only if the top

management has the will andconviction in carrying out whatever isnecessary for delivering that product.

Time ManagementTime ManagementTime ManagementTime ManagementTime Management

Time is always of essence. Time ismoney. More time on a project meansmore money spent on personnel,facilities and equipment. More time onthe project would also mean morebank interest payment by bothdeveloper and contractor. It is thereforeimportant that good project planningand implementation be emphasized,especially so for high-riseconstruction. A good contractor,experienced in high-rise constructionwould be able to competently schedulethe project completion, but equallyimportant would be a competentProject Manager to manage andcheck the contractor ’s sequencing ofworks and methods of construction.If the contractor errs in certainaspects, this can be picked up andrectified by the Project Manager. Itwould be difficult if the ProjectManager is poor in knowledge in high-rise project and construction planningand execution, but disastrous if it islikewise for the Contractor ’s staff. Tomanage a project to its timelycompletion is certainly more difficultfor a high-rise construction as thereare more works concentrated on asquare metre of built-up area,meaning there is a higherconcentration of people, activities andequipment per building block. Thereare certainly more critical eventsrequiring more precise sequencing ofworks. The Project manager can assistthe Contractor and Developer in thetimely completion of projects byadvising on the following aspects:

•Machinery – Use of tower cranes,gondolas, materials hoists andpassenger hoists. The deployment ofthe right equipment at the right placewill not only help to expedite works,

but help in the supervision andmanagement of works.

•Planning – Proper advance planningof activities and its timings can ensurespeedy construction and anexperienced Project Manager canassist and fine-tune the planning andscheduling with on time site input. Theycan often give different dimensions tothe plans and schedules.

•Construction Methods –Construction methods are alwaysbeing up-dated and improved. It neednot be the ground shaking leap oftechnology, but sometimes the simpleincremental improvement that canincrease the speed of construction orallow concurrent activities to becarried out. Such innovations includeworking platforms and extendedgondolas.

•Materials – The use of appropriatematerials such as steel constructionand precast concrete can speed upconstruction and the Project Managercan help the developer to make aninformed choice.

Quality ManagementQuality ManagementQuality ManagementQuality ManagementQuality Management

There are two aspects or componentsof management that affects quality.They are the quality of the system andquality in personnel. In striving forquality in the Works, it is imperativethat there must be quality in bothaspects mentioned above. In themanagement system, anorganizational structure must be putin place to move the projects fromimplementation to completion. Thesewould entail a comprehensiveunderstanding of the works andprocesses involved and thesubsequent detailed documentation ofthese processes into a workablesystem. Different projects will demanddifferent priorities but the managementsystem should remain consistent in itsapproach, meaning that the system

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must be able to accommodate all theproject types, with only minor fine-tuning for each project. The systemwould probably evolve with the newmanagement ideas, technology andregulatory requirements. The secondaspect is that there must be capablestaff to manage the system andimplement it.

There are two distinct phases in thedevelopment of a project. The first isthe planning phase involving designand plans approval by the authorities.The second would be theprocurement/construction phase inwhich there would be tender(s) and theactual construction. It is imperativethat the personnel in the managementbe organized and deployed not onlyaccording to their capabilities andexperiences, but woven into aformidable team that is capable ofpushing the project smoothly, from theplanning phase to the construction/completion phase. The thoughtprocess at each phase must becongruent and consistent with eachother. In the construction phase,proper supervision of works wouldinvariably result in satisfactory if notgood workmanship and quality.However, there must be a systematicmethod of supervision which shouldbe well documented and implementedthroughout the construction phase.There must be a system of review andfeedback of the site problemshindering good workmanship. Suchfeedbacks should filter down the sitesupervision team and also theContractor site team. supervision, attimes standing supervision isimperative if quality is not to becompromised. If the management isnot on its toes, the Contractordefinitely will not be on theirs.

Quality of works not only depends ongood workmanship, but is alsodependant on the following:

Detailing – You can have the best

workers, but poor detailing willinevitably result in poorworkmanship and poor finishessuch as leaking windows, unsightlyservice ducts and poor externaljoints.

Equipment – Frequent use of simpleequipment such as leveler andtheodolite can achieve betterverticality required especially in a

high-rise construction.

Methodology – Very often, the workmethods are often not carefullythought of and as a result, much isleft to the workers to do what theythought is the best. Good andthorough method statements can goa long way in making sure the rightsequence and timing is beingadhered to, resulting in noconfusion and speedy execution ofworks.

Supervision – The Project Managermust deploy suitable supervisionstaff to ensure good workmanship.They must be provided with the rightequipment and a safe environment.

Only with the basic pre-requisite ofquality in management system aswell as personnel in place, can an

organization be confident indelivering quality products. Themanagement and personnel are thecore ingredients in Quality Control,without which the taste of successcan never be savoured. A goodProject Manager will go a long wayin delivering a quality product withinreasonable time and cost.

Cost ManagementCost ManagementCost ManagementCost ManagementCost Management

Cost has always been a major concernto Developers and in many a times,comes at the expense of quality.However, it need not be the case ifthere is good design, planning andexecution, with the help of goodproject management. A goodmanagement system andcompetent personnel, includingsupervision staff, can rein in projectcost escalation in the followingways:

Abortive Works – Can be minimizedwith good design and planning.

Rectification Works – Can beprevented with vigilant supervision.

Materials – The use of the rightmaterial, especially for the externalfaçade is important, especially when

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the installation the method requiresmore manpower, machinery/equipment or specialist attention.Steel may be costly, but there aresavings in foundation costs andconstruction time. Careful planningcan achieve an optimum approach.

Alternative Materials – Once it isapparent that cost over-run isinevitable; the problem can bealleviated by judicious substitution ofmaterials without sacrificing muchof the quality in materials.

Innovative Methods – Innovationcomes with experience and once theindustry matures, innovativemethods of construction orinstallation will naturally followthrough, especially in this inter-connected world where knowledgetransfer is swift.

New Technology – More efficient

ways of construction,such asprefabrication andprecasting canincrease theconstruction speedas well as achievinggood quality.

Project ManagementApproaches in India

Traditionally, theProject Managementis primarily part ofthe Developer ’sorganization, that is,it is an in-housemanagement. Somedevelopers do employProject Managementfirms to undertake thetask, whilst someprefer a hybrid team,a mix of professionalmanagers and ownstaff.

In-house ManagementIn-house ManagementIn-house ManagementIn-house ManagementIn-house Management

This is the most common approachtaken by local developers, in which allthe staff required for theimplementation and completion of aproject are sourced within thecompany or employed specifically toperform designated duties. It has itsadvantages and pitfalls, but thedisadvantages seem to out-weight theadvantages. The main advantage tothis approach is that the developer hasfull control of all the staff, both at thehead office and on site. It has fullcontrol, from the managers to thesupervisors and store men. Thedeveloper has the opportunity to setup a good team of managers to setthe pace of development. If successful,such in-house management can meanquality projects and costs savings.Unfortunately, with a vast set of

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problems peculiar locally, this is aformidable task.

It is only in the last 6 or 7 years thatIndia ’s real estate sector started toboom and that mega projects startedto spring up in major cities. However,in these years, the preference ofeducation and profession was in theIT sector. There is thus a dearth ofexperienced and technicallycompetent professionals to power theconstruction industry. To make mattersworse, the buoyant market resulted infrequent job hopping for better payand many site staff does not see theirprojects through to completion. Howmuch experiences can one gain withfrequent job hopping? With such ascenario, it is difficult for the developersto assemble a decent team, much lessa good one.

It is also observed that promotionwithin an organization is often basedon friendship and unfailing support ofthe subordinates and much lessthrough merit. It is difficult to find goodstaff and equally daunting to retainthem. Good staff is hard to come by,what more those with high-rise andcomplex projects experience?

Out-sourced ManagementOut-sourced ManagementOut-sourced ManagementOut-sourced ManagementOut-sourced Management

Many developers have now employedprofessional managers to managetheir projects, especially thecommercial or special projects. Thereare some good entities providing suchservices. These professional managerswill employ the necessary staff to callfor tenders, recommend award andeventually supervise the construction,recommend payment and compile thefinal accounts. In this system, there isless politicking involved, but there isalways the problem of flow ofinstruction or information from thedeveloper to the managers. But out-sourcing does not solve the problem

of finding experienced and competentstaff. The staff is also as good as theirmanagers. The main failing of thissystem is that the developer does notreally experience the learning curve asits staff is not involved in the micromanagement.

Hybrid ManagementHybrid ManagementHybrid ManagementHybrid ManagementHybrid Management

Here, the developer employs theprofessional managers for the topposts, the numbers of which dependson the complexity of the project. In thisinstance, the developer can employ thebest in the field and may source fromoutside the country if the need arises.As the employment is on a contractbasis, the cost of such employment canbe factored into the project without anysubsequent baggage. If the rightcaliber of manager can be sourced,then the rewards in time, cost andquality can be tremendous, though itmay cost a little more. Moreover, the

junior staff employed by the developerin support of the managers has theopportunity to learn and the promisingones can be inducted as seniormanagers in the long run.

Contractual & ManagementContractual & ManagementContractual & ManagementContractual & ManagementContractual & ManagementPPPPProblems Contractual Issuesroblems Contractual Issuesroblems Contractual Issuesroblems Contractual Issuesroblems Contractual Issues

Project and construction managerscan only manage and supervise aproject in accordance to the Contractspecifications and requirements. Theydo not have the authority to impose orinstruct the Contractors outside of thecontract. It is thus paramount that thedrawings, specifications and othercontractual documents mustincorporate the good practices of eachtrade and detailing. Secondly, thecontract must empower the ProjectManager/Superintending Officer totake the contractor to task for poorworkmanship or dereliction in duty andtake the appropriate actions to make

the Contractor perform. Otherwise, itwould be akin to giving him a gun forfiring blanks.

Out-dated Specifications andStandards

The pace of the building industry isconstantly changing and evermorefaster as building technology advanceswith the introduction of new materials,products and processes. Theconstruction industry here is very muchinsular and at times not receptive tochanges. There is this noticeableinherent fear of new practices andsometimes a reluctance to adopt newideas. Only when the developers andconsultants start to visit the moredeveloped countries do they realize thatthey are some way behind in terms oftimely delivery of a good project. Youwill find that many of the IndianStandards are dated back to the 1970sor 1980’s. Many of the specifications

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are actually detailing constructionmethods that are used decades ago.Moreover, there are many new productsbeing introduced, both producedlocally and from abroad. It is a veryslow process to get the local developersand consultants to use these newproducts and technology.

Traditional Management Practices

India may have world class managersin the finance and IT sectors, but whenit comes to the construction and realestate sectors, it is severely lacking. Thisis primarily due to the late boom in thisindustry and also the way the designand management of the project istraditionally structured. On one hand,you have the Architects and Engineersexecuting their design and authorities ’other hand, there is this managementof construction by other managers. Inthis scenario, there is a potential in lackof co-ordination and proper flow ofideas and feedbacks between the twoparties. More disturbing would be thatimportant lessons from poor design,detailing, specifications andcontractual deficiencies are not learntby the designers and drafters ofcontract as there is not much dialoguebetween the designers and themanagers. Such traditional practicesresulted in lessons not learnt andrepetitive mistakes committed.

There is also an ‘over -staffing ’ of sitepersonnel by the developer to the extentthat some duties are duplicated andsome are not clearly delineated. It isalso observed that some developers dohave a habit of employing more staffon site to keep an eye on each other.Such practices only encourage the staffto form cliques and distract them in theperformance of their duties insupervising the project.

Inexperienced Site StaffInexperienced Site StaffInexperienced Site StaffInexperienced Site StaffInexperienced Site Staff

As explained earlier on the late boom

in the real estate sector and theimportance of the IT sector, good andexperience site managers andsupervisors are hard to come by. Theindustry is left with not much choicebut to deploy whoever is available onthe platter. Good managers andsupervisors can be sourced fromoutside the country, but the cost isalways a deterrent.

LLLLLack of Fack of Fack of Fack of Fack of Focus by Consultantsocus by Consultantsocus by Consultantsocus by Consultantsocus by Consultants

With the advent of the real estateboom, the project consultants are over-loaded with work. They are expandingtheir offices fast. As with the site staff,good and experienced designers arehard to come by. The urgent need topush out projects fast to be marketedby the developers resulted in not so wellthought design and details.Specifications are often left out if notlittered with discrepancies. No matterhow good is the workmanship, if thereis poor detailing, the product cannotwork well. All this mad rush resulted inthe lack of focus by consultants toproduce quality design and details.

Late Appointment of Project Managers

With the anomalies mentioned abovethat is very much peculiar here, itcannot be overstated that the ProjectManager should be appointed early,as early as the design stage. Only thencan valuable input on the design andspecifications be incorporated into thedesign and contract to make it moreconducive to good workmanship.While interacting with the developer’sstaff and cons ultants at an early stage,the Project Manager is able to have amore effective and personalcommunication with them duringconstruction. For some reasons,developers like to leave it late inappointing the project managers, evensometimes only after the award ofcontract.

ConclusionConclusionConclusionConclusionConclusion

Despite the deficiencies and obstaclesfaced by the Industry, there are waysto alleviate the problems in achievingreasonable quality, delivery time andcost in projects. The steps taken caninclude:

Adopting the most suitable projectmanagement system that suits theorganization;

Identifying, sourcing and retainingcompetent staff;

Producing a comprehensive set ofcontract documents which is in linewith international practices andstandard;

Employing competent Consultantsand Project Manager, out-sourcingto foreign personnel or companiesif the cost allows for;

Appointing the key players early;

Embracing new technologies andconstruction methods; and

Marrying project and constructionmanagement.

AcknowledgementAcknowledgementAcknowledgementAcknowledgementAcknowledgement

The article has been reproduced fromthe proceeding of 'National Workshopon HighRise Constructions' with thekind permission from the eventorganizers.