ASSIGNMENT

National Institute of
Construction Management And Research

(NICMAR)

1. Course Number NCP 26

Construction Project Management

2. Course Title
Techniques

3. Assignment Number 5

4. Date of Dispatch 22 Nov 2013

Last Date of receipt of Assignment

5. 5th Dec 2013
at SODE Office

Submitted By:

Name : JOE P S
Course : PGPCM
Module : M-12
Reg Number : 213-01-11-11240-2142
 ASSIGNMENT

A new international cricket facility is to be constructed outside a megacity over a piece of

Land. Facility to include

i. Capacity of spectators : 80,000

ii. Day / Night Play facility
iii. TV Camera Platform in six direction
iv. Safety of Players from Spectators
v. Pavilion for VIPs to sit 300
vi. Parking (adequate space for all above)

Time available is 16 Months including monsoon.cost of construction need to be recovered

in 5years. Average cost of Ticket is Rs.100/-. Approximate four matches per year> Submit
the project report covering:

i. Identification of Project
ii. Stages in development of project
iii. Work breakdown structure to undertake the project
iv. Milestone & CPM chart for corporate control
v. Cost of project

Assume necessary data.

 A project is a temporary endeavor with a defined beginning and end (usually time-
constrained, and often constrained by funds and deliverables), under taken to meet unique
goals and objectives, typically to bring about beneficial change or added value. It is achieved
within the specified scope, quality, time and costs. Project can also be defined as
organization and performance of resources such as men, money, machinery, materials,
space and technology into logical sequence of activities.

Most projects start with a need to have a new facility long before designers start designs
and drawing of the projects and certainly before field construction work can commence.
Elements of this phase include:

- Conceptual analysis

- Technical and feasibility studies and

- Environmental impact reports.

Here, our project is to build a cricket stadium outside a mega city over a piece of land in 16
months.

In India cricket is not our National Sport, the craze for cricket is always at the peak. It is
watched aggressively not only by old aged or middle aged people but youngsters and
teenagers, boys and girls-everybody is taking keen interest to watch cricket either to watch
on TV screen or at cricket stadium.

The trend of cricket is changing nowadays. People go crazy to watch a fast and furious 20
20’s rather than a boring 5 days test match. The launch of 20 20’s increased the heat of
cricket lovers. In only few overs batsmen hit lot of runs. Showering fours and sixes tense the
bowlers’ nerves but beat the heart throbs of the cricket lover spectators. Commercialization
of the game is also eye catching. . Indian Cricket League (ICL) and Indian Premiere League
(IPL) are new tournaments which are becoming more and more popular. It comes with the
concept of more money and more fun.
 Meanwhile technology was improving and become part of the game. Before there was only
TV and newspapers, but now we have internet. We have digital cameras with extra zoom,
stump vision cameras, speedometers to check the speed of the ball thrown by the bowlers,
digital sound systems, graphics systems, all the necessary data of the past cricket comes on
the screen within a few seconds. The International Cricket Association (ICC) is also then and
there introducing new rules which increase the tempo of the game. These all aspects
strengthen the idea that cricket will live and it is part of our lives.

Stadium is to be built near the mega city. Resources will be available easily. Machinery and
manpower will be available at ease. Infrastructure facilities are there so the roads and
transportation, electricity, water, and materials will be available easily. Air Port and Harbor
will make it easy for importing needs goods from outside and for the transportation of
international players and officials.

Market is highly competitive and we are living in the era of Advertising and marketing. So
many companies would like to sponsor matches. Lot of money can be generated through
giving rights to the television channels for broadcasting of the matches. Not only this,
sponsors are ready to pay money for their logos on the uniform of the cricketers. Money
can be generated through the advertising hoardings on the ground boundary. There is no
doubt that commercialization and glamour will draw more and more cricket spectators to
the stadium to watch their favorite cricketers in action as well as beautiful girls or cheer
leaders.

PROJECT DEVELOPMENT PROCESS

From conceptualization to implementation the stages in the development of construction

project (here cricket stadium) fall into broadly consistent patterns but time and degree of
emphasis each project takes on its own a unique character.

An idea of a project passes through six phases before it become a reality:

 - Conceptualization

- Engineering and design

- Procurement

- Construction

- Commissioning

- Operation and maintenance

PROJECT MANAGEMENT ORGANIZATION

Generally, project management is distinguished from the general management of

corporations by the mission-oriented nature of a project. A project organization will
generally be terminated when the mission is accomplished. According to the Project
Management Institute, the discipline of project management can be defined as follows:

‘’Project management is the art of directing and coordinating human and material resources
throughout the life of a project by using modern management techniques to achieve
predetermined objectives of scope, cost, time, quality and participation satisfaction’’.

Specifically, project management in construction encompasses a set of objectives which

may be accomplished by implementing a series of operations subject to resource constraints.
There are potential conflicts between the stated objectives with regard to scope, cost, time and
quality, and the constraints imposed on human material and financial resources. These conflicts
should be resolved at the onset of a project by making the necessary tradeoffs or creating new
alternatives. Subsequently, the functions of project management for construction generally
include the following:
 1. Specification of project objectives and plans including delineation of scope, budgeting,
scheduling, setting performance requirements, and selecting project participants.
2. Maximization of efficient resource utilization through procurement of labour, materials
and equipment according to the prescribed schedule and plan.
3. Implementation of various operations through proper coordination and control of
planning, design, estimating, contracting and construction in the entire process.
4. Development of effective communications and mechanisms for resolving conflicts
among the various participants.

The Project Management Institute focuses on nine distinct areas requiring project manager
knowledge and attention:

1. Project integration management to ensure that the various project elements are
effectively coordinated.
2. Project scope management to ensure that all the work required (and only the required
work) is included.
3. Project time management to provide an effective project schedule.
4. Project cost management to identify needed resources and maintain budget control.
5. Project quality management to ensure functional requirements are met.
6. Project human resource management to development and effectively employ project
personnel.
7. Project communications management to ensure effective internal and external
communications.
8. Project risk management to analyze and mitigate potential risks.
9. Project procurement management to obtain necessary resources from external sources.
PROJECT PLANNING AND CONTROL

Planning is the basic function of the management. Planning is concerned with ‘how and when’
to achieve the predetermined objectives. Planning sets all other functions of management viz.
organizing, staffing, directing, motivating, coordinating etc.The main objectives of planning are
listed below:
i. Analysis
ii. Anticipation
iii. Scheduling resources
iv. Co-ordination and control
v. Production of data
All effectively managed projects involve the preparation of the project plan. This is the
fundamentaldocument that spells out what is to be achieved, how it is to be achieved, and
what resources willbe necessary. In Projects and Trends in the 1990s and the 21st Century,
author Jolyon Hallowssays, "The basic project document is the project plan. The project lives
and breathes and changesas the project progresses or fails." The basic components of the
project, according to Hallows, arelaid out in the figure below.
"With the plan as a road map, telling us how to get from one point to another," says Hallows, "
agood project manager recognizes from the outset that a project plan is far more than an
academicexercise or tool for appeasing upper management. It is the blueprint for the entire
scope of the project, a vital document which is referred to frequently, often updated on-the-fly,
and somethingwithout which the project manager cannot proceed."

CONTROL OF PROGRESS ON SITE

Without control planning loses much of its value. It must be applied continuously to update the
plans and to enable reconsideration of the workload in the light of what has already taken
place.

Control involves comparing the actual achievement with the plans. If a programme is to be
really effective as a control document, it must represent time and quantity of work carried out.

Progress can be recorded on planning charts that clearly indicate what is happening and where
corrective action needs to be taken.

Weekly and monthly meetings are invaluable in helping to control progress. The action
necessary for correcting underproduction will be considered and the best solution will then be
incorporated into the programme for the next period.

PROJECT WORK BREAKDOWN

Work within each phase to identify the events or tasks, and their associated subtasks. Define
everything that needs to be done; this is called the work breakdown structure.

The Work Breakdown Structure (WBS)

The WBS has become synonymous with a task list. The simplest form of WBS is the outline,
although it can also appear as a tree diagram or other chart. Sticking with the outline, the WBS
lists each task, each associated subtask, milestones, and deliverables. The WBS can be used
toplot assignments and schedules and to maintain focus on the budget.

WBS W B S LEVEL W B S ELEMENT

1 Feasibility Study

1.1 Trend Analysis

1.2 Fund Allocation

2 Planning & Design

2.1 Design Activities

2.1.1 Substructure

2.1.2 Superstructure

2.1.3 Electrical design & arrangement

3 Mobilization

3.1 Employees

3.2 Machineries

3.3 Other Resources

4 Construction – Substructure

4.1 Site Clearing

4.2 Footing

4.3 R.R Masonary

5 Construction – Superstructure

5.1 Columns & Beams

5.2 Walls

5.3 Roofs

6 Finishing Works

6.1 Fencing

6.2 Flooring

6.3 Electric Works

6.4 Carpentry Works

6.5 Plumbing Works

6.6 Painting Works

6.7 Seating Arrangement

6.8 Emergency Arrangements

7 Playground Making

7.1 Pitch Construction

7.2 Landscape (Lawn)

7.3 Boundary Line Arrangement

8 PROJECT COMPLETION
COSTING ACTIVITY

Cost estimating is one of the most important steps in project management. A cost estimate
establishes the base line of the project cost at different stages of development of the project. A
cost estimate at a given stage of project development represents a prediction provided by the
cost engineer or estimator on the basis of available data. According to the American Association
of Cost Engineers, cost engineering is defined as that area of engineering practice where
engineering judgment and experience are utilized in the application of scientific principles and
techniques to the problem of cost estimation, cost control and profitability.

The costs of a constructed facility to the owner include both the initial capital cost and the
subsequent operation and maintenance costs. Each of these major cost categories consists of a
number of cost components.

The capital cost for a construction project includes the expenses related to the initial
establishment of the facility:

 Land acquisition, including assembly, holding and improvement

 Planning and feasibility studies
 Architectural and engineering design
 Construction, including materials, equipment and labor
 Field supervision of construction
 Construction financing
 Insurance and taxes during construction
 Owner's general office overhead
 Equipment and furnishings not included in construction
 Inspection and testing

The operation and maintenance cost in subsequent years over the project life cycle includes the
following expenses:
  Land rent, if applicable
 Operating staff
 Labor and material for maintenance and repairs
 Periodic renovations
 Insurance and taxes
 Financing costs
 Utilities
 Owner's other expenses

COST OF PROJECT:

1. Construction Cost
From the past datas, It is assumed that Construction of new stadium cost
Rs. 10000/- per Spectators. Including all Facilitites.

Hence, The project Costs,

1=> 80000 Nos x 25000 Rs = 20000 Lakhs
2. Operating costs

Sl.No Category Cost per Annum

1 Staff Expenses 100 Lakhs

2 Periodic Maintenance 5% 1000 Lakhs

3 Insurance & Taxes 10% 2000 Lakhs

4 Other Misc costs 1 % 200 Lakhs

Total Expenses Per annum 3300 Lakhs

3. Income

Income shall be comesin the mode of Ticket Sales, Broadcasting Rights, Advertising,
Sponsorship.

Income through Ticket Sales :

Capacity of spectators = 80000

Average cost of ticket =Rs.100

Per year matches =4

Assuming One match average spectators = 65000

Earning from match tickets = Rs.100 x 65000 = Rs. 65 Lakhs

Per year earning through matches = 65L x4 = Rs. 260 Lakhs

Income through Broadcasting Rights:

It is assumed 2000 Lakhs per Match

One year Income : =4 Matches x 2000 = 8000 Lakhs

Income throughSponsorship Rights

It is assumed 300 Lakhs per Match

One year Income : =4 Matches x 300 = 1200 Lakhs

Income through Advertisements

It is assumed 100 Lakhs per Match

One year Income : =4 Matches x 100 = 400 Lakhs

Total Income Per Year

Income Through Ticket Sales : 260 Lakhs

Income through Broadcasting Rights : 8000 Lakhs

Income through sponsorship rights : 1200 Lakhs

Income through Advertisement : 400 Lakhs

Total Income per year : 9860 lakhs

Cost summary:

Cost for Construction of New Stadium : 20000 Lakhs

Total Expenditure for 5 years : 16500 Lakhs

Income expected in 5 Years : 49300 Lakhs

Net Profit : 12800 Lakhs

Hence the construction cost shall be recovered in 5 years & the project will make the profit of
12800 lakhs in 5 years.

The Critical Path Method

The most widely used scheduling technique is the critical path method (CPM) for scheduling,
often referred to as critical path scheduling. This method calculates the minimum completion
time for a project along with the possible start and finish times for the project activities. Indeed,
many texts and managers regard critical path scheduling as the only usable and practical
scheduling procedure. Computer programs and algorithms for critical path scheduling are
widely available and can efficiently handle projects with thousands of activities.
The critical path itself represents the set or sequence of predecessor/successor activities which
will take the longest time to complete. The duration of the critical path is the sum of the
activities' durations along the path. Thus, the critical path can be defined as the longest possible
path through the "network" of project activities, as described in Chapter 9. The duration of the
critical path represents the minimum time required to complete a project. Any delays along the
critical path would imply that additional time would be required to complete the project.

There may be more than one critical path among all the project activities, so completion of the
entire project could be delayed by delaying activities along any one of the critical paths. For
example, a project consisting of two activities performed in parallel that each require three
days would have each activity critical for a completion in three days.

Formally, critical path scheduling assumes that a project has been divided into activities of fixed
duration and well defined predecessor relationships. A predecessor relationship implies that
one activity must come before another in the schedule. No resource constraints other than
those implied by precedence relationships are recognized in the simplest form of critical path
scheduling.

To use critical path scheduling in practice, construction planners often represent a resource
constraint by a precedence relation. A constraint is simply a restriction on the options available
to a manager, and a resource constraint is a constraint deriving from the limited availability of
some resource of equipment, material, space or labor. For example, one of two activities
requiring the same piece of equipment might be arbitrarily assumed to precede the other
activity. This artificial precedence constraint insures that the two activities requiring the same
resource will not be scheduled at the same time. Also, most critical path scheduling algorithms
impose restrictions on the generality of the activity relationships or network geometries which
are used. In essence, these restrictions imply that the construction plan can be represented by
a network plan in which activities appear as nodes in a network, as in Figure 9-6. Nodes are
numbered, and no two nodes can have the same number or designation. Two nodes are
introduced to represent the start and completion of the project itself.
The actual computer representation of the project schedule generally consists of a list of
activities along with their associated durations, required resources and predecessor activities.
Graphical network representations rather than a list are helpful for visualization of the plan and
to insure that mathematical requirements are met. The actual input of the data to a computer
program may be accomplished by filling in blanks on a screen menu, reading an existing
datafile, or typing data directly to the program with identifiers for the type of information being
provided.

CONCLUSION:

This cricket stadium will be profitable for all the parties say sponsors, spectators, cricket
association etc.

Bibliography/ References

1) NICMAR Study Material NCP 26

2) Various websites in Internet