Project Management : Development Appraisal And Economics

Management of construction projects needs skills and knowledge in modern management and comprehension of construction and design process. In construction projects, the relevant technology processes, and arrangements differ, but common sequence of events apply. Construction projects generally require a specification of the project plans and objectives that entail budgeting, scope, setting of performance requirements, scheduling, and project participants (Rojas, 2009). It also requires project management specifics like the resource utilization by procurement of materials, labor, and equipment to project plan and schedule. In addition, it leads to implementation of several operations by effective control, estimation, design, construction, and contracting (Mincks & Johnston, 2010). The sequence of events occurring in the construction phase is categorized into three broad areas including foundation, structural, and finishes sequence.

This is to ensure that the necessary raw materials and physical resources are available at each stage, and that the workforce on site has the right skills for the scheduled work. The project management team will need to produce a series of planning documents that can be accessed throughout the project. Each member of the project management team must know their role and responsibilities, including which sections of the workforce they will be directly managing.

A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)

It is essential that project managers have a thorough understanding of procurement concepts, and the contracts that are involved in the practice. This assignment will focus on the types (Fixed Price, Cost Reimbursable, and Time and Material), and subtypes of procurement contracts, and discuss the pros, cons, and the burden of risk of each. At the end of the assessment, (FFP). This a clear understanding of which type of contract is least advantageous choice for the ACME breakroom construction project. Further, the paper will highlight this type of contract is a bad choice, and discuss

Procurement intends to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organization, its stakeholders and clients (Kidd, 2005). Therefore, construction procurement exists to purchase a construction project as requirement of firms or organizational entities to achieve its goals. However, the choice to use external resources is the part of firms’ decision-making

Abbey University, the Client, proposed a Design and Build procurement route for the development of Park Terrace should they decide to purchase the property. The purpose of this report is to provide an alternative procurement route and compare the strategy on how this will relate with each other and subsequently aid Abbey University with their final determination on the chosen procurement route by outlining numerous possibilities or advantages and disadvantages.

The traditional procurement route has become one of the standard approaches in the construction industry since the 19th century. The key characteristics of a traditional procurement route with a competitive tender process are competition or tendering cannot start until the design process is complete, the designing process is separate from the construction process and the lack of contractor involvement in the design process, with the design and technical development being carried out by the clients consultant. (Cartlidge, 2013).

Probably the most important techniques that a project manager must master is the Program Evaluation and Review Technique (PERT) or Arrow Diagram Method (ADM) as known by the Project Management Institute. This method is one of the most common scheduling models in project management (Meredith & Mantel, 2009, p 21). A method that analyzes the probabilities of a project finalizing on time. The PERT identifies the worst, best and most likely case scenarios and aids the project manager in developing a simple project schedule while considering risks and deciding which risks to take. Since every project deals with uncertainty at some level and in some form, the PERT is in my opinion the number one technique that every project manager must be well educated on.

NTCP Model is closely related to PMBOK principles of project management, it incorporates the basic belief and put forward a framework for addressing risk and uncertainties within project management domain. This model has been formulated by undertaking serious research involving multiple dimensions. Henceforth, the model presents a solid framework to understand basic project elements and map them accordingly to understand what type of methodologies and skill set will be required by the project manager to effectively manage the project meet its outcome objectives. Using the clear approach provided by NTCP model towards dealing with risk or uncertainty makes the model very effective. Furthermore, key element is that model can

Procurement activities and choices constantly evolve as the needs to ensure construction project successful is eminent. According to JCT (2011), procurement refers to a generic term that embraces all relevant activities undertaken by a client to implement a construction or refurbishment project. It is important that the basic principles such as selection process, the relationship between the client and contractors, responsibilities and management are always there. As a private developer in Chelmsford wanting to pursue in making sure a successful completion of building a new food store with 37 residential units with flexible floor space and associated car parking facility, it is important that the contract placed ensures it covers every aspect of necessity for the successful project completion.

To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement strategy is very important to the success of a construction project. Therefore, the characteristic of each strategy have to analyze and also its relative advantages and disadvantages. A recommendation of most appropriate procurement

When choosing a type of procurement it is based on the clients experienced and knowledge of construction that the client has and there requirements. Once this has been decided then the relevant contracts can be drawn up outlining the relevant responsibilities shared and risk taken into consideration and also meeting the correct legislation and the Housing Grants, Construction and Regeneration Act 1996. With regards to the Housing Grants, Construction and Regeneration

These documents cater for the project for the integration of IT in the Dental Hospital which will be the largest Dental Hospital in Western Australia. The Dental Hospital will consist of 70 Docters, consisting 120 Helpers , and thus should cater for the needs regarding the age of the Patients as well. The project is sponsored by the Western Australia Government solely, and thus claims high outcomes for the hype involved this Dental Hospital. The

‘The procurement strategy identifies the best way of achieving the completion of a construction project – taking into account the best value for money over the entire life cycle of the building or facility’ (RICS, 2013. p. 21). There are three routes of procurement that could be adapted for your project:

The purpose of this document is to provide the reader with an overview of the classical process of construction bidding. The reader will have a general understanding of the fundamental components of the construction bidding process. The simple schematic below, figure 1, provides an outline of the construction bidding process.