Dis­ci­plin­ing the Project Con­struc­tion

CBRE’S Project Man­age­ment busi­ness line part­ners with clients to de­liver projects from “con­cept to com­ple­tion” by im­ple­ment­ing cost ef­fi­cient, lead­ing in­dus­try pro­cesses to op­ti­mize projects, min­i­mize risk and cre­ate value. gur­jot bha­tia, Manag­ing Directo

Realty Plus - - Editor-In-Chief Note -

With the over­all mar­ket mov­ing to­wards ease of do­ing busi­ness, we can ex­pect po­ten­tial in­vestors to re-look at the mar­ket for in­vest­ment op­por­tu­ni­ties. Ac­cord­ing in­fras­truc­ture sta­tus to af­ford­able hous­ing was an im­por­tant step to­wards pro­mot­ing ac­cess to pri­or­ity lend­ing thereby, spurring sup­ply of low cost hous­ing units across var­i­ous cities in In­dia. Fur­ther, the in­creased al­lo­ca­tion un­der the Prad­han Mantri Awas Yo­jana (PMAY) scheme will not only en­cour­age home buy­ers to in­vest but also en­cour­age par­tic­i­pa­tion from pri­vate play­ers to launch projects in this seg­ment. Re­lax­ations in area mea­sure­ment as well as com­ple­tion time­lines to seek tax ex­emp­tion are also wel­come an­nounce­ments.

Rera the “game-changer”

With RERA be­ing im­ple­mented across the states, de­vel­op­ers are likely to fo­cus on the timely de­liv­ery of their on­go­ing projects and also re­main in­creas­ingly flex­i­ble on pric­ing and pay­ment struc­tures. Project Man­age­ment will prove to be a per­fect so­lu­tion to over­come any short-term chal­lenges that de­vel­op­ers and other stake­hold­ers may face. More than ever, now, it is ex­tremely im­por­tant for de­vel­op­ment com­pa­nies to in­sti­tu­tion­al­ize the dis­ci­pline of Project Man­age­ment. A com­pre­hen­sive Project Man­age­ment plan, which brings to­gether all project ac­tiv­i­ties to en­sure a timely, cost ef­fec­tive and qual­ity de­liv­ery of a project, will en­able de­vel­op­ers to plan, con­struct and de­liver a project with cer­tainty, trans­parency and in line with the guard-rails of RERA

the Fac­tors Driv­ing the ADOP­TION Of PROJECT Man­age­ment strate­gies Project man­age­ment is evolv­ing as the projects are be­com­ing more com­plex and are in­creas­ing in size and scale. Chang­ing dy­nam­ics re­quire in­no­va­tive method­olo­gies and sus­tain­able ap­proach. Man­age­ment teams run the risk of de­pend­ing solely on project teams for in­for­ma­tion on large cap­i­tal ex­pen­di­ture. This has given rise to project in­de­pen­dent gov­er­nance struc­tures that have evolved from base lev­els such as site au­dits, to risk-based in­ter­nal au­dits and cap­i­tal ex­pen­di­ture re­views, and of late, to full-fledged project re­views at par­tic­u­lar points in time and / or con­tin­u­ous re­views.

Project Man­age­ment in fact be­comes short­hand for project, pro­gram and port­fo­lio man­age­ment. At an en­ter­prise/ex­e­cu­tion level, ap­pli­ca­tion of ro­bust Project Man­age­ment op­ti­mizes the project cost in num­ber of ways:

• De­sign Man­age­ment: Value & per­for­mance en­hance­ment via value engi­neer­ing. Cost re­duc­tion via ma­te­rial and tech­nol­ogy sub­sti­tu­tions.

• Iden­ti­fy­ing Risks: Crit­i­cal ar­eas, time con­sum­ing ac­tiv­i­ties, la­bor in­ten­sive jobs, re­source de­pen­dent ac­tions, there-by en­sur­ing cost dis­tri­bu­tion of low and high-risk ac­tiv­i­ties.

De­tailed Pro­gram Man­age­ment: Us­ing track­ing tools and soft­ware, keep­ing mar­gins and back up plan­ning for the iden­ti­fied risks, thereby al­lo­cat­ing a sundry cost for the back-up in case of high risk ac­tions.

• Hu­man Re­source Man­age­ment: Un­der­stand­ing the po­ten­tial of each team mem­ber, al­lo­cat­ing tasks and time­lines in a cus­tom­ized fash­ion, thereby op­ti­miz­ing on the over­all cost of man-hours re­quired.

Cost Man­age­ment: Draft­ing a high-level bud­get at con­cep­tual stage and align­ing it with the re­sources/funds avail­able. Tran­si­tion­ing this fig­ure into a more de­tailed bud­get at the pro­gram man­age­ment level and fur­ther break­ing it down to the last nail be­fore ten­der­ing stage to

avoid any sur­prise costs dur­ing con­struc­tion.

• Pro­cure­ment Man­age­ment: Cost ne­go­ti­a­tions is the key scope here but, it is even more im­por­tant to man­age the time­line and quan­tity of ma­te­ri­als. This avoids ma­te­rial dam­age for be­ing un­used for a long time, cost of stor­age as well as cost of un­used la­bor in course of de­layed de­liv­er­ies.

Reg­u­lar Au­dits: This in­cludes de­sign au­dits, qual­ity au­dits, cost au­dits and process au­dits. Pos­si­bil­ity of a cost over­run (or even time and scope) can be iden­ti­fied and dealt with at a very early stage, rather than wait­ing for it to bal­loon.

Ethics and Com­pli­ance: En­sur­ing ad­her­ence to eth­i­cal prac­tices and pro­cesses in ven­dor se­lec­tion, con­sul­tant se­lec­tion, ma­te­rial pro­cure­ment, etc. – leads to a ro­bust work­ing sys­tem de­void of chances of in­ca­pa­bil­ity or un­der per­for­mance, thereby sav­ing cost on re­work / re­vi­sion / re­place­ment.

Health and Safety: Ad­her­ence and con­scious ob­ser­vance of health and safety mea­sures, avoids any health haz­ards / ac­ci­dents – which in a long term, saves cost on de­lays and least to men­tion, dam­age to the brand’s value.

as per a cbre sur­vey, 90% of in­dian con­struc­tion in­dus­try still needs to adapt to in­ter­na­tional stan­dards on plan­ning & de­liv­er­ing projects. al­most 50% projects are af­fected by health & safety is­sues (ma­jor or mi­nor), there is a 72% short­age of skilled

Gur­jot Bha­tia

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.