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Chapter one:INTRODUCTION

For the fear of sounding like a vote of thanks speech, we could not possibly thank all of those

marvelous people who have contributed something of themselves directly or indirectly in preparing this assignment. They are of course some very special people who cannot go

without mention.

We prepared the report on Road repairing for The Tajmahal Road (Block-C) fully based on

secondary data and information; as suggested by our course instructor Fahim Muntaha,

Lecturer, Department of Business; ASA University Bangladesh.

First heartiest gratitude to our courser instructor, whose enthusiastic guidance and critical

comments during the entire phase of the writing and valuable suggestions in writing this

assignment, made possible for us to prepare this. To collect the relevant data we have to

knock at many doors most importantly the main office of the contractor, M/S H.M. Helal

Enterprise. We also search the internet. We are novice in writing such a project. Thus several

limitations remain in this assignment. We expect our dear instructor would not mind to rather

give suggestion. We are confident that this kind of assignment will help to increase our skill.

The report is a fruit of excellent collaboration of all members of the group. We will be

grateful if this research report will produced its desired outcomes.

Objective of the report

The main objective of the report is learning by observing a project, gathering idea &

knowledge about the real projects and relating the theoretical idea with practical knowledge.

Scope

This is the first time we got an opportunity to work with this type of interesting topic. This is

one of the most challenging tasks for us, since the information is not open to all of us and

hard enough to get information from people who are responsible for providing it to others.

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Methodology

The repot is a narrative report. This report tries to evaluate the inns and outs of an

implemented project and some other affairs. Before going into the depth of the study

conceptual structure was visualized, under which the whole report is conducted. Preparing a

report about the Project of a company/contractor is a complicated and difficult task and no

single method is appropriate, that is why we had to follow several methods to prepare the

report. For this reason, we have followed a number of procedures to prepare a meaningful

report. The methodologies of the task are described in the following

Sources of data

The report covers two types of data; which arey Primary data: We have acquired the primary data from the office of the contractor,

M/S H.M. Helal Enterprise.

y Secondary data: By the observation and internet we have gathered the secondary data,

collecting data from the records of Dhaka City Corporation.

Collection procedure of data

For preparing the report, we have used various methods. These methods are being discussed

in the following pages. We became knowledgeable through discussion with one of the

responsible public relation of M/S H.M. Helal Enterprise. It is a primary source of collecting

data.

Internet search: We also got some Secondary information surfing through the net.

Limitation

The report is not free from practical limitations. To make this report on Road repairing for

The Tajmahal Road (Block-C)is a big task. We made this report based on our observation

and imitation, which were not enough to fulfill our objective. The first limitation of the report

was not to use time allocation for the report properly, as it is very hot days now. Secondly,

we did not get enough help from the respective individuals of the contractor of Road

repairing for The Tajmahal Road (Block-C). Again, we have some inherent limitations and

some other unavoidable circumstances like Load shedding.

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Chapter two:

Overview of the Industry and Promoter

History of Dhaka City Corporation:

y Dhaka was founded in 1608 A.D.as the capital of the Province by Islam Khan

Chisti during the regime of Mughal Emperor Zahangir and it was at that time renamed

Zahangirnagor.

y In 1864 Dhaka had been declared as Pourosova.

y In 1905, Dhaka was made the capital of a new province

comprising East Bengal and Assam.

y In 1947, the city emerged as the provincial capital of the then East Pakistan.y In 1971, after independence, Dhaka became the capital of Bangladesh.

y In 1978 Dhaka uplifted from Pourosova to Municipal Corporation and since then it

has been heading by the Mayor.

y In 1990, Dhaka Municipal Corporation was renamed as Dhaka City Corporation

Source:

http://www.dhakacity.org/Page/About/Link/2/List_id/22/History_of_Dhaka_City_Corporatio

n

Constitution and Functions of Standing Committee of DCC

There is a provision of the Ordinance on constitution of a Standing Committee and also for

additional Standing Committees for the purpose of various functions of the Corporation. The

various Standing Committees, as have been mentioned in the Ordinance, are as follows:

y Finance & Establishment

y Education

y Health, Family Planning and Sanitation Drainage

y Town Planning and Improvement

y Audit and Accounts

y Work and Buildings

y Water and Electricity and

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y Social Welfare and Community Center.

The Ordinance also states that, the Corporation shall, by regulation, determent the functions

of Standing Committee. But the Corporation clearly defining the functions of the Standing

Committees has framed no such rogation. Therefore, the Standing Committees discharge

functions basically on an ad-hoc basis depending on the perception of the members about the

functions of the Standing Committee.

Source:

http://www.dhakacity.org/Page/To_know1/About/Category/2/Id/24/Sub_Id/51/Flag/1/Info

General information about the promoter

Department >>Engineering: Responsible road repairing activities

Functions

y Construct the Foot Over Bridges, Underpasses and Develop Low Lying Areas.

y Take the Necessary Action for the Proper Lighting of the Public Streets.

y Take Necessary Steps for the Watering of Public Streets for Comfort and

Convenience of public.

y Plant Trees on Public Streets and Other Public Places.

y Implement the all Kinds of Development Plans.

y Construct and Repair of Public Markets and Infrastructures of DCC.

y Improve the Traffic Signaling and Related Works.

y Construct, Maintain and Improve the adequate Drainage system

y Set Apart Suitable Places for Use by the Public for Bathing, for Washing Cloths

y Maintain DCC Park , Shishu Park , Play Ground and Asphalt Plant

Key Contact

Brig.Gen Md. Abdul Quadir

Chief Engnieer

1st Floor, Nagar Bhaban

Fulbaria, Dhaka-1000

Phone: 880-2-956 7763

Email: ce@dhakacity.org

chiefeng@yahoo.com

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14.Other address: DCC Engineering department, area no. 1,2,3,4,5,7,8,9,10. P&D

Bazar Sarkel. TED Electric dept. 1&2, Machinery dept. 1&2, Central Accounts dept.

Nagor Bobon, DCC, Dhaka.

15.Tender validity: Upto 120 days from the days of opening tender

16.Tender officer name: Brig. Gen Md. Abdul Quadir17.Any time tender can be void.

18.Bank draft paid to Mayor of DCC as collateral of tender

19.Required information with a tender: Work of experience, TIN & VAT certificate,

Annual turnover, Liquid assets.

Objective of road repairing

To get repaired a road in Taj Mahal road, Block-C, and reduce the public dissatisfaction and

mitigate public demand about repairing the road and protect it from further wearing down.

Goal of road repairing

The goal of this road repairing activities is to ensure public welfare and provide better

facilities to the citizens living in Dhaka as commited by DCC.

Available resources for road

repairing

o The local word commissinar is acting as a responsible member of the government to

look at the perfection of this project.

o Government administrative bodies are always ready to help the contructor of this

project.

o Huge utilities facilities are available to complete this project i.e. enough space,

flexible operating time.

o The quality is detected by responsible engineer from the department of engineering

from DCC on the completion of the project.

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Design of road repairing

Figure: A graphic model indicating the road repairing project

In this project, the road that is going to be repaired is divided into two phases-a) First Phase (left side)

b) Second Phase ( right side)

Second phase of this project will start after the 50 feet of the first phase has been finished.And the first phase will resume when the second phase of the project has been covered equalthe size of first phase. The raw materials of the whole project will be supplied from the rearend of the project. For the highly damaged parts of the road there will be additionalconcentration of raw materials.

Benefits of road repairing

All people in this territory will be befitted through this repairing project. Especially the local people will be the most beneficiary and other business functionality will be benefited byusing this repaired road.

Price of road repairing

The contractual price of this road repairing project is 52, 61,684.00 BDT.

CONSTRAINTS

Project Constraints

The following represent known project constraints:

Project funding sources are limited, with no contingency. Due to the nature of law enforcement, resource availability is inconsistent.

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Related Projects

None known

Critical Project Barriers

Unlike risks, critical project barriers are insurmountable issues that can be destructiveto a projects initiative. In this project, the following are possible critical barriers:

Removal of project funding Natural disasters or acts of war

If any of these events occur, the Project Plan would become invalid.

Chapter four:Project Proposal

A.PLANNING

Information required:

Taj Mahal road repairing worksBlock: C, H-12/1-12/9,..15/23Initial Budget: BDT 52, 61,684.00

Preliminary serial no: Memo no.575 (2) Prokou.Be./O:6, 20/04/2010Selected organization: M/S H. M. Helal enterpriseProject Completion period: 13/05/2010-10/08/2010 or within 90 days.

The passerby road will be the sole place to keep the raw materials to store and ready to beused in the project as needed. The raw materials will be kept on an equal distance to run therepairing process smoothly and efficiently. During the project the road will be blocked tofacilitate the project work completion with in the scheduled period.

All the machineries and the equipments will be held in the project spot the night before theproject starts. The workers will be accommodated in the tents nearby the project spot. The

labors will be recruited on a hire basis and paid daily a constant amount out of their wagerate.

The marginal rate of IRR for this project is 15%. The expected payback period is 6 months.The project will initiate with self funding of the company and expected to get the periodicinstallment from the government fund.

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The first risk factor in this project is the natural calamities, the unusual failure of the rollermachine & other equipments, the intervention from local terrors and the lack of assistancefrom the local people during the project work. The raw materials may be stolen from theroad.

B.Analysis

Market analysis:

i. Market analysis

Based on the specific information and forecasting the market analysis is conducted.M/S Helal Enterprise

They find it as a certain project since the government allocates funds for each area periodically and they think the changes in the political parties as the primary

constraints. They assume the competition is very high and tough to get the work They know that the public demand for the project is very high.

My responsibilities as a project manager

To help generate the public opinion strongly to avoid the biasness of the politicalparties

Complete the project as early as possible Procure raw materials from the nearest suppliers to make most production

possibilities To ensure that the all the local residents get equal benefits Asking the general people to give suggestions regarding the project activities To secure acceptance and approval of deliverables from the Project Sponsor Include project team members in all phases Introduce flexibility in project operations for well being of people

Technical analysis:

Analysis of the technical and engineering aspects of a project needs to be done continuallywhen a project is formulated. Technical analysis seeks to determine whether the prerequisitesfor the successful commissioning of the project have been consider and reasonably goodchoices have been made with respect to location, size, process, etc.

M/S Helal Enterprise

Followed the DCCs technicians suggestion and sought technical help from them

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They ignore the layout of the site properly and do not see the real condition of the site

They select the workout machines and equipments to help the projects work

They have no idea about the technology whether it is appropriate from the social pointof view regarding the environment

My responsibilities as a project manager

Ensuring the environmental issues and use the technologies accordingly

Identify the source of raw materials and employ transportation for those to carry in theproject spot

See the layout of the project first and make a queue of machines and vehiclesappropriate for the project

Scheduling the whole project throughout the time frame perfectly with time forcontingency

Careful in finalizing the technical aspects of the project as the decision is irreversibleand the investments involved may be high.

Select the technology required in consultation with technical experts and consultants.

Test the equipment and machines before the project begins i.e. roller.

The Project Technical Manager is the primary point of contact between mechanical activitiesand the project.

Financial analysis:

Financial Analysis seeks to ascertain whether the proposed project will be financially viablein the sense of being able to meet the burden of servicing debt and whether the proposed

project will satisfy the return expectations of those who provide the capital.

M/S Helal Enterprises evaluation

They determine 15% as their profit margin and believe that this is the industry standard. Theirexpected payback period is 5-7 months for their investments. They assume that their costmust be a lump sum amount of less than 48 lacks. They will collect funds from peers, familyor use the government funds in the projects. They do not consider any type of financialestimation and projection or any type of capital rationing for the project. They are aware thatwill be much more benefited if the costs of raw materials and other variable costs reduces,

but dont make any type of prediction regarding the project possibilities.

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My responsibility as a project manager

Consider the payback period and cost of capital for the investment first. Calculate the net present value of the project considering the project payments Ensure that the rate of return from the project is higher than the cost of capital Ensure that the cost of capital will be equal or less than the market rate

I will try to complete the project before completion period so that it can facilitate the paybackto reduce. The financial calculations for this project are as follows:

Payback Period: 6 months

NPV @ 12%: 5, 87, 870.00

IRR: 4.88%

BCR: 1.13The payback period for this project is satisfactory because it may be less than the

prediction if the inspection is completed earlier than the projected three months andthe officials do not delay to make the recommendation for the payment. The NPV alsosuggests that the project is highly profitable. The actual IRR from this project isalmost 5 times of cost of capital. The BCR also indicates that the project is rational.Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the

benefits and costs to the community of projects to establish whether they are worthwhile.These projects may be dams and highways or can be training programs and health caresystems. One of the problems of CBA is that the computation of many components of

benefits and costs is intuitively obvious but that there are others for which intuition fails tosuggest methods of measurement. Therefore some basic principles are needed as a guide.

Sensitivity Analysis

If costs reduces or increases by 5%

Criteria 5% increase Expected 5% reductionlabor 735000 7,00,000 665000

Stone 1680000 16,00,000 1520000

Sylhet sand 420000 4, 00,000 380000

Bitumen 1260000 12, 00,000 1140000

Fuel 315000 3, 00,000 285000

Miscellaneous 210000 2, 00,000 190000

Roller 84000 80,000 76000

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Local sand 126000 120,000 114000

Total 4830000.00 4500000.00 4275000.00

If the costs of all the fixed and variable costs increase by 5%, then the net present value will

become 257870 BDT of the project and the projects profit margin will become 5.35% only.In this situation it will become a loss generating project because this is below the cost ofcapital and industry standard also. On the other hand, if the cost of the whole project reduces

by 5%, then it will become much more profitable for the project. For instance the net presentvalue will be 812870.00 and profit margin will become 19%.

Risk Analysis

Risk Risk LevelL/M/H

Likelihood ofEvent

Mitigation Strategy

Project Size

Person HoursH

: Over 4800 Certai

nty Assigned Project Manager,engaged consultant,comprehensive projectmanagement approach andcommunications plan

EstimatedProject Schedule

H: Over 2.9months

Certainty Created comprehensive projecttimeline with frequent baselinereviews

Project DefinitionProject ScopeCreep

L: Scopegenerallydefined, subject

to revision

Unlikely Scope intially defined in projectplan, reviewed monthly by threegroups (Project Manager and

Steering Committee) to preventundetected scope creepConsultantProjectDeliverablesunclear

L: Well defined Unlikely Included in project plan, subjectto amendment

Cost EstimatesUnrealistic

L: Thoroughlypredicted byindustry expertsusing proven

practices to15% margin of

error

Unlikely Included in project plan, subjectto amendment as new detailsregarding project scope arerevealed

TimelineEstimatesUnrealistic

M: Timelineassumes noderailment

Somewhatlikely

Timeline reviewed monthly bythree groups (Project Managerand Steering Committee) to

prevent undetected timelinedepartures

Number of Team L: Team well Unlikely Project Manager and consultant

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MembersUnknowledgeable of Business

versed inbusinessoperationsimpacted bytechnology

to identify knowledge gaps andprovide training, as necessary

Project Staffing

Project TeamAvailability

M: Distributedteam makesavailabilityquestionable

Somewhatlikely

Continuous review of projectmomentum by all levels.Consultant to identify anyimpacts caused by unavailability.

Project TeamsShared WorkExperiencecreates poorworkingrelationship

M: Some haveworked together

before

Somewhatlikely

ComprehensiveCommunications Plan

Weak UserParticipation on

Project Team

L: Users arepart-time team

members

Unlikely User Group Participantscoordinated by full time

employee

Economic:

Economic analysis, also referred to as social cost benefit analysis, is concerned with judginga project from the larger social point of view. In such an evaluation the focus is on the socialcosts and benefits of a project which may often be different from its monetary costs and

benefits.

Economic

Social cost benefit analysis (SCBA)Definition: One kind of economic analysis evaluates investment of project from the view

point of society or economy.If I am a project manager I can evaluate my project for SCBA this way:As our project is road construction our SCBA is making good benefits of those people whoare using this road for a long period of time for there comfortable journey by this road. Forand example we can define our SCBA like this wayGuess, there are 1000 peoples are using this road for at cost 10tk daily before repair it butafter repair this road people using this by at cost 8tk so there is approximately 2000tk willsave for each journey.And another think for well construct road more than 1000 peoples like 1500 peoples nowusing this road for there suitable journey by at cost 8tk, this will be more beneficiary as

economic context.

Ecological

An increasing awareness that global life-support systems are endangered is forcing us torealize that decisions made on the basis of short-term criteria can produce disastrous long-term results on a global scale. There is also a growing acknowledgement that conventionaleconomic and ecological models and concepts fall short in their ability to address globalecological problems in a truly systemic way.

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Ecological Economics is a transdisciplinary field of study that addresses the relationshipbetween economic and ecological systems in the broadest possible sense.

Ecological Economics goes beyond conventional conceptions of scientific disciplines andattempts to integrate and synthesize many different disciplinary perspectives in order toachieve an ecologically and economically sustainable world.

If I am a project manager I can evaluate my project for Ecological this way:In our project not any industrial project its about road construction, according to our projectthere is much less ecological effect on environment but there are some consideration too. When we melt bitumen there are some toxic gas emits that effect varietys of

pollution. Like air pollution.

Another thing is when we use roller for road construction there is some soundpollution too.

But as a project manager we are trying to solve the problem like we are decided that we useconcrete mixer for road construction that can at least reduce air pollution.

Ecological:

In recent years, environmental concerns have assumed a great deal of significance and rightlyso. Ecological Analysis should be done particularly for major projects which have significantecological implications and environment-polluting industries.

C. Financings: FRICTO

FRICTO is in the form of flexibility, risk, income, control, taxes and others. Are the keybusiness considerations that influence the capital structure (dept equity ratio) decision andthe choice of specific instruments of financing?

y Flexibility means the ability of a project to raise future capital from any sourceit wishes to tap to meet the further financial needs. Project manager select the

project by his planning and financing technique. Before selecting the projecthe should analyses by NPV, PBP, and BCR.

y Risk: The two main source of risk for a firm are business risk and financialrisk. Business risk refers to the variability of earnings before interest and taxesand arises mainly from fluctuation in demand and variability of prices and

costs. Financial risk represents the risk arising from financial leverage.

y Income: Income is the returns from the project financing. ConstructionCompany will get the benefit from the construction work. ConstructionCompany also gives the wages for their labor. It also beneficial for the worker.

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y Control: From the point of view of the promoters of the project, the issue ofcontrol is important. They would ordinarily prefer a scheme of financingwhich enables maximize their control, given their commitment of fund to the

project.

y Taxes: From the point of view of the constructor of a company, they shouldgive the taxes on their profit. They should follow the company Act-1994.

They find self financing the best for flexibility, control, and less risks. But they fearabout the taxes and other occurrences for self financing. They also consider the periodicpayments from the projectssponsor as risk free and flexible form of financing.

If I were a project manager I will arrange this capital as 60: 40 ratio of self financing and thedebt financing that will facilitate more return and less tax payments to the government. It willalso help to support another project ( if any).

D. ImplementThe implementation phase for road construction project, which involves setting up ofconstructing facilities, consists of several stages:

1) Project and engineering designs: DCC Engineering department has set up theactivities to be incurred in this project are Sites probing and prospecting, presentationof blueprints, and plant designs, plant engineering, selection of specific machineriesand equipment.

2) Negotiation and contracting: After selection of tender DCC and selected companymake negotiation and drawing up of legal contracts with respect to project financing,acquisition of technology, civil works, provision of utilities, supply of machinery andequipment, marketing arrangements, etc under tender schedule segments for this

project.

3) Construction: The construction companystarts the site preparation, procurements ofworking materials and other resources, erection and installation of machinery andequipment having work order from DCC.

4) Training: Training engineers, technicians, and workers is on the basis for previousprojects.

5) Project commissioning: Start up of the project work.

After that they have worked for the long 3 monthsin the project spot. First they dug thesoil to uncover the road surface and then they coated the road with the liquid tar andthen pour the stone mix with bitumen on the road and finally the roller made thepolicing in the road with the local sand.

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Yes they faced some sort of problem while implementing the project because of sudden rain,disturbance from the outside vehicles and no assistance from some local people during the

project.

E.Review

The project was reviewed by the responsible engineer once a week and suggested thecontractor for the proper guidelines to complete the project with quality works. Yet someimprovement requires because the ingredients used was not well mixed with other ingredientsand the raw materials were not provided as necessary in some places.

The stones will be mixed with the bitumen for the longer period so that thoseintegrates with each other very well, this will ensure the longevity of the road

The soil will be kept out of the project completely because it will cause the damagevery shortly.

Some highly skilled labors will be used to mix the raw materials for better

combination Scale must be used to ensure the proper disbursement of mixture on the road that will

make the road plain and smooth and give the road longer endutance.

Chapter Five:Findings and Recommendation

Findings

Important Remarks

This project has an established objective of repairing the road Taj Mahal, Block-C.

This project should be completed with in 13/05/2010-10/08/2010 which indicates that

this project is a definite life span.

There is an involvement of several responsible individuals, organizations to complete

the project properly in the specific time period.

The project produces a new, repaired and completed road.

This project will be completed within 3 months and a budget of BDT 52, 61, 684.00

and the road will be repaired.

It follows some sequential phases to complete the project.

This project is a contract between M/S Helal enterprise and the DCC

This project looks for short term benefits

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Limitations of the project

This project follows conventional way of tendering process.

The project has limited tasks in compared to the time line. There is no precaution against any type of contingency.

Non availability of designated person in the project to observe the tasks.

There are no environmental issues considered in this project.

Can not ensure the accountability of each individual responsible person.

Insufficient skills among the involved workers.

Informal way of tasks to be done.

Cannot ensure the quality of the project works.

Do not provide any type of reworks.

Recommendations for Roadrepairing projects

The project should follow the online tendering process to avoid selection biasness,

encourage participants, reduce initial costs for the participants, avoid threat from

terrorists etc.

The project should get less time to complete the tasks to ensure efficiency.

The contractor should be solvent enough to complete at least two-thirds of the

project by own financing

End users will participate in the project designs.

The project work should be invigilated twice a week and legal actions should be

imposed instantly if any fault is experienced.

The contractor should provide warranty for his performances for certain period of

time.

Penalty should be introduced for the breech of contract through mobile court.

Raw materials procured should comply with the construction standard.

Some of the projects should be given to the sophisticated local contractor to create

some sort of role model in the construction.

Construction workers should be trained through a one-spot workshop that will

enhance the skills of the labors and quality can be achieved.

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Concrete construction should used instead of the tar construction that is more

consistent with the environment.

Local people should help as much as possible positively for smooth run of the

projects.

Chapter Six:Conclusion

Project is a

ATTACHMENTS/APPENDICES

Sample ofTender notice of Dhaka City Corporation activities

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