Project Management_Final Report (1)

8/9/2019 Project Management_Final Report (1)

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Construction of New Hostel

Block in IIM Shillong

Project Management Final Report

Detailed project management report on construction of a new hostel block with an indoor sport

complex within the existing IIM Shillong Campus in 18 months to accommodate 84 students within a

budget of 2.5 Crores.

Submitted by:

Project Controller- Pillutla Anirudha Asish (2012PG

Project Manager- Manan Chandna (2012PG

Project Engineer- Ganesh Shanker (2012PG

Procurement Manager- Sajal Goel (2012PG

HR & Legal Officer- Sushree Tripathy (2012PG


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Contents1. Executive Summary ............................................................................................................................... 2

2. Introduction .......................................................................................................................................... 2

3. Project Scope and Basic Assumption .................................................................................................... 3

4. Technical Know-How Requirements ..................................................................................................... 4

5. Foreseeable Difficulties and Constraints .............................................................................................. 5

5.1. Financial Difficulties .......................................................................................................................... 5

5.2. Political difficulties ............................................................................................................................ 5

5.3. Construction difficulties .................................................................................................................... 5

5.4. Other difficulties ............................................................................................................................... 5

6. Risk Register .......................................................................................................................................... 6

7. Work Breakdown Structure .................................................................................................................. 78. Milestone PERT Chart of the Proposed Project .................................................................................... 7

9. Project Duration and Project Budget .................................................................................................... 8

9.1. Project Milestones ............................................................................................................................ 8

9.2. Resource Requirements .................................................................................................................... 8

9.3. Construction phase – external and internal ..................................................................................... 9

9.4. Resource cost planning ................................................................................................................... 10

9.5. Assumptions .................................................................................................................................... 11

9.6. Total cost of project ........................................................................................................................ 11

10. Social costs, Risks and Expected Benefits of the Proposed Project ................................................ 11

10.1. Social cost-benefit analysis ......................................................................................................... 11

10.2. Risk & mitigations strategies of our project ............................................................................... 12

11. Critical Success Factors for our project: .......................................................................................... 13

12. Limitations and future scope of research ....................................................................................... 13

13. Lessons Learnt and key difficulties faced while preparing the project plan ................................... 14

13.1. Lessons Learned .......................................................................................................................... 14

13.2. Difficulties Faced ......................................................................................................................... 15

14. Annexures ....................................................................................................................................... 16


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1. Executive SummaryThis project report summarizes in detail the planning behind the construction of a new hostel block with

an indoor sport complex within the existing IIM Shillong Campus in 18 months to accommodate 84

students within a budget of 2.5 crores.

The project is proposed to be completed in three phases namely, planning, site development andconstruction. In the planning phase the major deliverables will be the construction blueprint and

completion of legal formalities which would include permission for erecting a new building within the

campus. In the site development stage, we need to lay a foundation for the building at the proposed

site. The major and final phase of construction will have deliverables such as the completed hostel and

the indoor sports complex on the ground floor.

Once the blueprint was prepared and approved through consultation with the client, the cost estimate

was prepared and scheduling was done consequently. The social costs and risks involved in the project

were accounted for. The benefits of undertaking the construction were outlined with special focus on

the critical success factors. Finally at the end of the report, the limitations are enlisted and learningsderived from this project are outlined.

2. Introduction and Study RationaleThe project is aimed at the construction of a new hostel block in the premises of IIM Shillong in a span of

18 months from the start of the project. The project has been taken up due to the increasing batch size

that is being admitted into the institute year after year as well as a diverse set of programs being added

to the institute’s offerings. This has led to a growing demand for a new residential complex for students.

The new hostel block is also envisaged to include an indoor sports complex as the current facility is

operating under overcapacity. Also, the plan for the new building has been endorsed by our institute’sDirector during an open house discussion, which reinforces the management’s will to take the project

forward. The capacity of the new hostel block is planned to be for 84 rooms along with an indoor sports

complex. The location of the hostel would be in the area adjacent to the admin building, on the other

side of the road (on the way to barracks), where clearing of trees is already underway. This report

discusses in detail the planning, deliverables, resource requirements, budget, risks and benefits of the

project within its defined scope.

The study rationale behind taking up this project is as follows:

The current hostel facility in the institute is operating under overcapacity and the number of

students being inducted every year is on the rise

The sports facility present also needs to be improved to provide the right infrastructure for

students in a premium management institute

The project deals with identification and scheduling of resources to complete the task in a given

time and resource frame

To determine the various types of risks, costs and constraints that could be associated with

managing a project as well as how to mitigate and manage the same


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It is an opportunity to apply the principles of project management learnt in class as well as the

tools for the same

3. Project Scope and Basic Assumption

3.1.

Scope

The scope of our work would include:

Selecting builder for the construction of new hostel block with indoor sports facility

Floating of the Bid

Evaluating EOI

Floating RFPs

Evaluation and Final selection of Vendor

Design of the new hostel block with an indoor sports complex

Exact location of the building in the college premises

Layout of the entire building

Construction of the building

Procuring resources like labor, raw material etc.

Providing basic amenities like provision for lights/ fans/ heaters, fully-equipped bathrooms,

drinking water facility, common room with LCD television, gym, squash facility, indoor

badminton court, table tennis etc. to the students of IIM Shillong

After the construction of the facilities it is important to regularly perform maintenance

activities on all the facilities. Understanding the maintenance requirements from the builder

and accordingly allocate resources for maintenance activities

Providing good quality fresh basic eatables and energy drinks through an automatic vending

machine that requires only limited space for installation

Keeping the sports facility open 24 hours at the hostel on all the days, as required by the

Institute

3.2. Limits and Exclusion:

Plumbing and electrical work for the building will be taken care by the contractor

Our job is only the felicitation of the hostel block, day to day job will be carried out by

the contractor

The overseeing of the day to day operations and quality assurance will be done by

Hostel Committee along with a team of experts

3.3. Basic Assumption:


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The legal and other approvals for hostel block will be taken by the college

administration and not by us

The location of the hostel block will be in the space where TV room, gym, badminton

court are currently located. The space adjacent to the guest house can also be used

We will construct the hostel block and hand it over to the college administration. Day today operations post completion will not be our responsibility

4. Technical Know-How Requirements

The technical know-how requirement would need a skilled workforce. The organization has

the policy of employing skilled workforce from internal the organization. Hence the skilled

workforce requirement would be:

Project Manager-1

Chief Strategy and Marketing Officer

Chief Finance and Purchase Officer

Chief Operations Manager

Chief HR Manager

Electrical Engineers -2

Civil engineers -3

Mechanical Engineer – 3

Architectures - 2

4.1.

Technical Specifications

The intake of students at IIM Shillong is set to increase in the next few years and hence

there is a need for new hostel block to accommodate the increasing strength

Creation of EOI in a standard format so as to invite qualified builders and contractors

Associate with the most renowned construction player in the region and establish final

deal with them

Location Specification:

A room which has the potential for setting up required technical infrastructure

i.e. plumbing, electricity supply and other basic infrastructure

Room should be big enough to accommodate 1 student

Contractor Specification:

Contractor should have minimum work experience in similar domain in

Meghalaya for at least 2 years

The major specifications that we propose for this hostel building and indoor sports complex are:

Deliverables Technical Specifications


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Size (of the building) Ground Floor + 4 floors + one-mess on each floor for cooking and dining

Construction Material Standard building format (Brick & Mortar)

Recreational Facilities Ground floor consists of Table Tennis, Indoor Badminton Court, Gymnasium

and Squash Room

Hostel Capacity 84 rooms

Room specifications Cement Flooring + Provision for 2 tube-lights + 1 fan. The room size and

design will be same as the existing new boy’s hostel rooms.

Floor Specifications Tiled-flooring in the corridors

Bathrooms One bathroom for every 2 rooms

Utilities Connecting the entire building to the main power grid of the campus +

Earthing + Drainage Facility + Automatic vending machine in sports complex

Building construction CDEF concept

5.

Foreseeable Difficulties and ConstraintsThe various difficulties and constrains in the construction of the building and setting up sports facilitieswhich may appear are as follows:

5.1.

Financial Difficulties

The funds for construction of new buildings within the campus have to come through the

Central govt. It may not be obtained on time and might delay the start of the project.

As a government organization we need to follow the tender process which may lead to change

in the proposed budget if the parties are not ready to work at the amount specified in the

tender.

5.2. Political difficulties

The whole of Meghalaya is suffering from strikes and bandhs because of the current political

scenario and the demand for ILP. This may lead to laborers not reporting on time or unable to

work freely.

The schedule might get hampered and it might take more number of days to finish the project.

Also if ILP issue comes into effect, getting manpower from outside might be a problem

5.3.

Construction difficulties

Timely procurement of raw materials due to location of Shillong

Risk of non-compliance from supplier’s end may pose a problem for the timely finish of the

project

5.4. Other difficulties

Design variations after the initiation of the project

Price inflation of construction materials


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Implementation of various project management tool could be of problem as the labor

contractor and other involved parties can be categorized as level 1 organization where these

people might not be well versed with project management control frameworks

Excessive approval procedures in administrative government departments

Low management competency of subcontractors

Unsuitable construction program planning

General safety accident occurrence

Unavailability of sufficient professionals and managers

Various difficulties and constrains mentioned above may pose following problems in the proposed

project:

Late delivery of the project;

Increases in operating costs

Design and construction defects impacting upon the operation of the completed project;

Deficiencies in other infrastructure or services upon which the successful operation of theproject depends, e.g. sports facilities as they require accurate measurements of the area

6. Risk RegisterIt acts as a central repository for all risks identified by the project or organization and, for each risk,

includes information such as risk probability, impact, counter-measures, and risk owner and so on.

Post identification of the risk, risk register has been created to know the exact probability and their

impact on the project

Risk Event Likelihood Impact DetectionDifficulty

Stage of the Project

Delay of Design and construction 2 4 2 Start-up and ongoing

Release of funds not on time 2 3 2 Start-up and ongoing

Delay of interior setup like room

furnishing and sports facilities

1 1 1 After completion of

construction

Inaccurate estimations of time

and money

2 4 2 Ongoing, throughout the

project

Delay in site clearance and

Permission from local authorities

2 4 1 Start-up

Errors and omissions in

construction

3 4 4 Final Stages of construction

Fluctuation of estimated prices of

raw materials

4 4 1 Construction

Labor issues 3 3 4 During construction


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7. Work Breakdown Structure

8. Milestone PERT Chart of the Proposed Project

The project consists of the following milestones:

1. Getting legal approval: This milestone indicates the readiness of the team for going for the next

phase of the project which is to begin the preparation of site and the construction phase. This task is

a milestone since it signifies the end of the preparation phase for the project and starts with the

implementation of the same.

2. Site development: This is a milestone since it signifies the readiness of site so that the construction

work can start on it properly.

3. Completion of external construction: It involves the finishing of construction of all the 4 floors and

signifies the readiness of the building to start with internal furnishing and layout of the sports

utilities in the same.

4.

Completion of sports utilities and ready for handover: This milestone signifies the completion of the

project and is ready to be open for the students.

All the 4 of the milestones along with the expected timeline is shown in the images below:


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9. Project Duration and Project Budget

9.1. Project Milestones

Milestones Day of Completion

Construction Blueprint Day 45

Completion of Legal formalities Day 60

Excavation of site Day 100

Laying of Foundation and surface drainage Day 150

Completion of indoor sports complex ( ground floor ) Day 280

Completion of First floor Day 330

Completion of Second floor Day 380

Completion of Third floor Day 430

Completion of Fourth floor Day 480

Completion of additional infrastructure Day 520

Project Handover Day 540

9.2.

Resource Requirements

Resource

Purpose

Procurement

Cost per

unit/resource

Total cost

in project

HumanResource

Six people forworking on the

project design and

handling interaction

with the client

Internal to theorganization – 5

External consultant

-1

For the internalworkforce the salary

per month is Rs.30000

per person. External

consultant charges

Rs.5000 per design

sanctioned

180000


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Human

Resource

For clerical jobs like

applying for permits

and receiving them

External resources Average salary would

be Rs. 10000 pm ( for 2

months only )

40000

Miscellaneous

Cost

Stationary Cost along

with other amenities

and utilities

To be obtained

from suppliers

--

200000

Total budget = Rs.420000; Contingency margin = 10%

Total Budget (with contingency margin) = Rs.462000

9.3.

Construction phase – external and internal

This phase consists of calculating the cost required for acquiring material (raw material and finished

goods).

Resource Purpose Procurement Cost per

unit/resource

Total cost in

project

Steel Frames &

Rods

Construction From supplier Rs. 44200 per unit

available

442000

Cement Construction From supplier 50 kg sacks @

RS.275 per sack

144375

Sand Construction From supplier RS.43 per cubic

feet of river sand

303709

Bricks Construction From supplier Rs.19000 for 3000

bricks

660739

Plaster Construction Contract given to

vendor

Rs.50 per sq.m of

wall area

42017

Paint Internal and

external

Contract given to

vendor

300000

Sanitary fixtures Internal to

building

From supplier 150000

Plumbing and

sewage facility

Internal and

external to

building

Contract given 1200000

PVC Pipes Construction From supplier 20000

Electrical System

(Excluding

Lighting,

including HVAC)

Internal Contract given 5800000


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Generators

(Diesel Operated)

Back Up Power

system

From supplier-

1000kVA x 4

$95000 per

generator

2470000

Manpower

Requirement

Labor work,

plumbing,

electrical fixing

and carpentry

Daily workforce for

masonry : 25

Workforce for

plumbing : 15

Workforce for

electrical System: 7

Workforce for

painting : 12

Masonry @ Rs.300

per person per day

Plumbing @ Rs.450

per person per day

Electrical @ Rs.450

per person per day

Painting @ Rs.250

per person per day

Flooring and other

internal civil works

@ Rs.350 per

person per day

220300

Tiles and mosaic

flooring

Interior to the

building

From supplier Kajaria tiles @

Rs.95 for 1x1sq.ft

tiles

225000

Total Budget = Rs. 11978140

Taking into consideration 10% contingency, the total budget becomes = Rs. 13176000

9.4.

Resource cost planning

The completion phase includes the final touches required for the completion of the building including,

internal decorations like standardized lighting and fixtures and glass fixtures.

Resource Purpose Procurement Cost per

unit/resource

Total cost in

project

Electrical

lighting fixtures

Standardized

lighting in the

shopping complex

From supplier

--

700000

Glass fixtures to

provide the

aesthetic look

Both internal and

external to the

shopping complex

Procured from

supplier but fixed

by contractor

--

2000000

Fire-fighting

system

installation

As directed by

government to

get certified for

safe operation

Procured from

supplier

Fire extinguishers

@ Rs.2000 per

unit and other

equipment

100000


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9.5.

Assumptions

The salary of permanently hired employees has not been considered in the budget calculation as the

organization has separate salary account to handle the same and this cost is taken care of in the overall

company expenses and is not specific to the project alone.

9.6. Total cost of project

The total project cost comes out to be approximately Rs. 2.25 crores

Considering contingency cost of 10%, and rounding off the value obtained, the cost of the project stands

to be Rs. 25000000. (Rs. 2.5 Crores)

10. Social costs, Risks and Expected Benefits of the Proposed Project

10.1.

Social cost-benefit analysis

A social cost-benefit analysis aims to chart all of the effects that would influence the welfare of society

on account of constructing the stadium. It is a systematic and cohesive method to survey all the impacts

caused by the urban development project. It comprises not just the financial effects (investment costs,

direct benefits like tax and fees etc.), but all the social effects, like: pollution, safety, indirect (labor)

market, legal aspects etc.

The social cost-benefit analysis calculates the direct (primary), indirect (secondary) and external effects:

Direct effects are the costs and benefits that can be directly linked to the owners/users of theproject properties (e.g., the users and the owner of stadium).

Indirect effects are the costs and benefits that are passed on to the producers and consumers

outside the market with which the project is involved (e.g., the owner of shops outside the campus )

External effects are the costs and benefits that cannot be passed on to any existing markets because

they relate to issues like the environment (noise, emission of CO2, etc.), safety (traffic, external

security) and nature (biodiversity, dehydration, etc.).

The social cost-benefits associated are as follows:

10.1.1.

Direct Effects Construction of the new hostel will provide accommodation to the additional students who will be

joining the institute next year.

The indoor sports complex will ensure that students get access to better recreational facilities.

10.1.2.

Indirect Effects

The shops around the college will benefit due to the increase in the number of students.


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The noise level would increase during construction phase and might disturb the nearby residents.

10.1.3.

External Effects

The effect on environment would be significant during construction phase

10.2.

Risk & mitigations strategies of our project

Types of Risk Risk Identification Risk Mitigation

Financial Risk Firstly, the funds for construction of new

buildings within the campus have to come

from the Central govt. It may not be

obtained on time and might delay the start

of the project.

Secondly, as a government organization weneed to follow the tender process which

may lead to change in the proposed budget

if the parties are not ready to work at the

amount specified in the tender.

A few other risks which has a direct impact

on the cost of the project

Design variations after the initiation of

the project

Price inflation of construction materials Excessive approval procedures in

administrative government

departments

Project should be initiated with the IIM

Shillong corpus after a written

confirmation by the central govt. that the

funds will be moved to IIM Shillong in

due course of time.

Understanding the cost of such projectsin Shillong, a good estimate of the

amount to be paid to potential

contractors should be done so that

parties don’t leave the tender process.

Usually if the parties find that the

venture is not profitable, all of them

leave.

Contract should strictly not allow any

design variations.

Price inflation is not in our control but

the proposed budget usually considers

the possibility of price rise of raw

materials

Political Risk The whole of Meghalaya is suffering from

strikes and bandhs because of the current

political scenario and the demand for ILP.

This may lead to laborers not reporting on

time or unable to work freely. The schedule

might get hampered and it might take more

number of days to finish the project.

Measures can be taken to house laborers

within the campus so that work is not

hampered. As far as raw materials

procurement is considered, buffer stock

would need to be purchased

Risks associated

with supply

chain

The two major risks identified under this

head are: Non-availability of resources and

risk of non-compliance from supplier’s end

Enter into strictly defined contracts with

the suppliers


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Safety related

risks

Low management competency of

subcontractors

Unsuitable construction program

planning

General safety accident occurrence

Lack of coordination between

project participants

Unavailability of sufficient amount

of skilled labor

Unavailability of sufficient

professionals and managers

Subcontractors are not in our direct

control but while contractors previous

work can be checked to understand the

kind of subcontractor they use.

Skilled labor scouting should be done well

in advance to avoid such problems.

Usually there are intermediary players

who help in getting the skilled labor. Such

people should be approached if such an

issue arises

11. Critical Success Factors for our project:The key success factors of our project are listed below:

Schedule: It is important for the project to meet the schedule and the proposed timelines. So

the critical success factor is to meet or beat established project milestones

Safety: It is important that all the safety guidelines are followed and thus the success factor in

this case will be- no recordable or lost time injuries and reportable injuries lower than the

industry average

Budget: There are a lot of risks involved in this project. It is imperative that we manage risks to

contain costs within the estimated budget

Quality: Conform to project requirements and quality without adverse effects on milestones orbudget. None of the above success factors should be achieved at the cost of quality

Environmental & Regulation Compliance: Complete project without any violations conforming

to the standards and regulations

Operational and construction standards- Education, implementation and consistency of

standards

12. Limitations and future scope of research

The proposed hostel block will not include any changes in the plan/design at a later stage due to thestrict timelines. The design of the block and the room specifications will be similar to the existing new

hostel blocks.

There will be just cement flooring (cement) to ensure timely completion. There will be no additional

classrooms or study rooms in this hostel.


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We have not taken into account risks associated with the external factors like weather, terrain and

natural disasters. With Shillong being an area affected by extreme climate and prone to natural disasters

like mild earthquakes etc., the ideal project plan should also have strategies to mitigate these risks and

have contingencies planned to meet the success factors.

Taking into account all the above factors are out the scope of the current project plan and are topics forfuture scope of research.

13. Lessons Learnt and Key Difficulties Faced

13.1.

Lessons Learned

Importance of minutes of meetings was established while working on the project. It was

observed that referring past decisions and the discussions becomes important for taking future

decisions and hence for future reference minutes of meetings play a very crucial role. Keeping

track of allocated tasks and responsibilities became much easier with the help of minutes of

meetings.

While managing a project, preparing timeline and budget are not the only key areas. There are

many other important things, like work breakdown structure, know-how of the domain to some

extent for efficient scheduling budget management, social cost-benefit analysis, anticipation of

possible risks and measures to mitigate them etc., which needs to be considered while planning

for any project.

Importance of consensus and discussions between client and project management team is

another key area which was observed. The discussions brought out many new ideas on table but

at the same time it was realized that unnecessary discussions may be time consuming without

adding value to the project. Similarly, agreeing to a point is very important for the project to

proceed further effectively. All of this is accomplished through clear and consistent

communication.

Good project management involves no shortage of dialogue between team members, clients,

and anyone else that should be in the loop. Constructive criticism pushes your team to do their

best and makes expectations clear. If someone is already producing phenomenal work, be sure

to recognize it and let them know. It is important to cultivate creativity whenever possible.

Another aspect to bear in mind throughout the life of a project is that changes will be made.Turning change into an opportunity is important; re-evaluation of the state of project and using

it to motivate the team should be the step forward. That way, even if drastic changes come up —

your project will end a success.

Also a key learning is that good project management doesn’t end when a project is completed.

Evaluating the results of the team’s hard work is an integral step in the process. Obviously t he


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views of client about team’s efforts will be communicated by them but a personal introspection

becomes important for future improvement.

13.2. Difficulties Faced

Without clear knowledge about the actual resources and schedule involved in a construction

project it was difficult to figure out things at many points in time. With the help of online

resources and batch mates with prior experience in this field, this difficulty was tackled to some

extent.

The team involved people with varied backgrounds who have their own understanding about

various topics. Hence, it became difficult in certain discussions to reach on consensus timely.

Thus meetings sometimes became a time consuming affair but this has its own positives and

negatives. Also dividing the roles as project manager, HR manager, communications manager

etc. helped in dealing with this issue to some extent as the concerned person was the one who

led the discussion of his/her domain, brining everyone on same page and helping in reaching a

consensus.

Lack of proper communication sometimes in the initial phase proved to be bottleneck hindering

the project. But gradually as the project planning continued the team developed a co-ordination

and this issue was addressed soon.

Timely follow-up, which is an important step in project management, was in some points not

adequate and hence revising the points discussed in the past meetings consumed a lot of time

but minutes of meetings came to rescue to a large extent.


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Annexure

Annexure 1: Expression of Interest

Sl. No. Particulars Details

1 Profile of Builder

2 Name

3 Address in full

4 Telephone /Mobile No.

5 Fax, Email

6 Month and year of establishment

7 Name of Proprietor /Partner

8 Annual turnover during the last 3

Years.

9 Whether the firm is income-tax

Assesse?

If Yes please give the details of PAN

No. and copy of the latest

Assessment order.10 Registration No., if applicable

11 EPF No. , if applicable

12 Details of Infrastructure, persons

employed, No. of offices/branches

available with the service provider

13 Service Tax No., if applicable

14 VAT No. , if applicable

15 TIN No. , if applicable

16

Name of at least 2 References of

repute with address and telephone

Numbers (Enclose their Certificates)

Note: Attach extra sheet if required.


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Place: Signature of the

Date: Caterer/Hotelier

Annexure 2: Details of Previous Contracts

Period of Contract Name & address of Type of

Contract

undertaken

Number of Value of

Organization Parties contract

From To serviced (annual)

Annexure 3: Details of Present Contracts if any, of similar nature being rendered by

you (that will be available for inspection by our officials)

Period of Contract Name & address of Type of Number of Value of

Organization contract persons contract

From To undertaken serviced (annual)

Documents

Project Management_Final Report (1)