HI-Rize Development, Essay Example

This project management report involves, Hi-Rize Development 2016 (HRD 2016), a client organization is planning to extend its property portfolio through the construction of its first major office development. In 2014, HRD identified a possible site upon which it is planning to construct its prestigious office development. Located in a major Midlands city, the company has commissioned an architect, WNP Partners, to produce an outline proposal. The site of the project drops approximately 6m along its length in Main Street down to Ascot Road, which is relatively level and does not have a vehicle access is possible except Ascot Road. Besides, a borehole from a neighboring site investigation indicated a sloping profile, which is approximately 10m of sandy soil, overlaying 8m of clay that is on top of carboniferous limestone bedrock (with a relatively deep water table in the sandy soil). The initial design is for a multi-storey block providing under-building parking and approximately 120,000 square feet (approx. 10,100m2) of lettable office space by the drawings. In line with the importance of the current developments in the organization, no final decisions have been made on the structural frame type, envelope design or the service level, other than that they should be compatible with a prestigious office development. The company has prepared a set of their ‘client’s requirements’ that should be put into consideration when preparing the report. In line with the importance of the current project, the aim of this paper is to provide a reasoned discussion with regards to the most effective stakeholder management, where five key stakeholders and their roles will be outlined. Besides, the various tasks, as well as activities that must be undertaken, will also be discussed. Lastly, a linked bar chart project plan highlighting essential parts of the project will also be outlined.

Stakeholder Management Approach (5 key stakeholders)

In any construction project, contractors, suppliers, and subcontractors are considered to be some of the most significant stakeholders in a construction project. In light of the importance of these stakeholders, there are a great number of times when organizations should have the appropriate resources available in-house and expertise, and work is framed out of subcontractors or contractors. Contractors and subcontractors may include construction management foremen, carpenter, electrician, network consultants, architects, and everyone who is not an employee. An efficient management of suppliers or constructors necessitates a broad range of skills needed in the management of the project team members.

Among the most common problems that are bound to arise from the Schedule slippage, Quality of the work, as well as Cost overruns in the project. However, it is worth noting that many construction projects are dependent on the goods that are provided by the outside suppliers. The best example of this type of a construction project is where a significant number of mortar, bricks, nails, as well as lumber, come from outside suppliers. In a case where the goods are delivered late, or poor quality goods, or in short supply, or if the prices of purchasing goods are considered to be greater than the originally projected prices, there are high chance that the projects may be regarded as unsuccessful. Depending on the construction project, if the suppliers, as well as the managing contractors, consume more than half of the time dedicated to the project, the project will not be successful. Considering the importance of suppliers, contractors, and subcontractors, it is worth noting that they involve a sophisticated set of skills that must include the efficient management of conflicts, negotiation approaches as well as other relevant interpersonal skills. In this case, it is necessarily important for the client to involve the following stakeholders for the entire construction process to be successful.

Construction Managers

Construction managers should be included in the project for the accomplishment of the entire process. The top management of the organization may include both the president and the vice-president of the company, the directors, all the division managers, and the corporate operating committee, among others. The construction managers provide direction to the organizational strategy as well as the development of the organization. The greatest advantages of the top management, as stakeholders it is always to recruit the most qualified staff who will ensure the project achieve its success. Besides, the top management will help the organization achieve an increased ability the most appropriate resources and materials for the project. Besides, visibility of an effective top management is that it is essential in ensuring the project manager’s professional standing with the company is maintained.

A major challenge that the top management may present to the success of the project is the failure of the senior management can be visible and dramatic to all the organizational members, especially, if the project is large and costly to the company. There exist a broad range of approaches that the current project managers can adopt in dealing with the challenges faced by the top management. Key strategies for address challenges that face senior managers may include the development of major milestones as well as in-depth plans, which must be approved by the top management in the course of designing as well as planning for the different phases of the project. Asking the top management questions associated with frequency and the different information reporting needs. Besides the development of a status reporting methodology that will be distributed on a scheduled basis and keeping the top management informed potential impacts, as well as risks at all times, will help in ensuring that the top management achieves its goals and objectives in the construction project.

Construction suppliers

Foremost, construction suppliers form a critical part in the building process. To achieve the desired project, the client should prioritize suppliers’ activities and payment. Importantly, construction suppliers determine the building period in regards to availability of construction resources. In this project the suppliers have the power to either reject or accept the contractor’s contact in regards to mode of payment and construction materials needed. Early in the relationship of a project, the project manager has the responsibility of negotiating or clarifying, as well as documenting the project deliverables as well as specifications. Once the project has begun, the project managers are expected to keep in touch with the construction suppliers to avoid any uncertainties and extended period of construction process. Similarly, suppliers need to communicate arising issues and concerns related to building materials early enough to avoid confusion and alteration of the initial construction plans.

The Project Advisory Team

Important stakeholders refer to those individuals within an organization that are consistently dedicated to the project both on full-time as well as part-time basis. On the importance of the success of a project, the project advisory team plays an essential role in providing direction as well as leadership to the team members as they work towards achieving the success of the project as a whole. Project managers should work closely with a project advisory team with the aim of solving problems and difficulties arising from the construction site. Collaboration between the advisory team and the project managers ensures the overall success of the entire project.

Despite their importance, project team faces significant challenges that may affect the effectiveness of achieving success in the project. It is important to note that qualified project advisory team is significant in offering Smart Staffing, dispute resolution as well as positive guidance. Notably, the project advisory team is motivated and excited when they are involved in various aspects of project development. To achieve success in a building and construction project, the project manager needs to incorporate the needs of all team members and come up with ways of addressing the needs in a prompt manner.

The Government officials

As an important stakeholder, governmental officials should be included in this construction project. The client should involve governmental officials in attempt of clearing with legal procedures to avoid future complications related to documentations. Basing on the fact that the organization operates within a community, its activities directly and indirectly affect some of the governmental procedures. Despite the fact that businesses pay taxes, the infirmary expected by the community, in which operation to operate in an environmentally responsible as well as ethical manner. Besides, the government officials are also in need of seeing businesses get involved in local charity giving events. Operating in an ethically responsible manner will not only guarantee competitive advantage in the marketplace, but it will also give the organization the opportunity to achieve its desired goals. Additionally, as an entity, the government is responsible for making decisions that significantly affect the organization. On the importance of the role of government in any organizational project, the company manages to have a good relationship with you with local authorities but with the national authorities. In most cases, the government wants firms to do well in order so that they can raise as well as collect taxes from them. This will be achieved through anticipating legal as well as regulatory changes as well as community Development different aspects of the project. By setting there regulatory standard, various government bodies’ aim at ensuring that organization does not harm the individuals as well as the communities in which they operate.

Project Organizing Team

Organizing team is another important stakeholder that the client should involve in the construction process. Most importantly, the project organizing team should be involved prior to the construction procedure.  Notably, this team is responsible for planning and organizing for the construction process before the entire procedure commence. The organizing team determines the required amount of money that is needed to complete the construction process. The group is also responsible for setting starting and completing dates for the construction process. Most significantly, the organizing team shall server as basis of reference in determining the achievement of the set construction objectives. Organizing team is essential in that they oversee the entire process of construction thus making sure that the desired construction project is complete and the whole process is successful. Therefore, it is advisable for the client to involve the above mentioned stakeholders for the construction process to be successful in the long run.

Proposals on Procurement Routes (Tasks and Activities)

The evaluation of the most appropriate form of procurement route for the project serves as an important activity in ensuring that the project is successful. As a method of purchasing construction goods and services, the selected procurement route for the current project will need to follow a strategy that fits the long-term objectives of the organization’s business plan. Important communication between the main stakeholders will be considered to ensure the most efficient procurement route is chosen. As an important stage of a project, there is the need of critically evaluate the available procurement routes so as to determine the most convenient and cost effective approach. The most common available procurement approaches include the traditional procurement route, the design & build procurement approach, as well as management procurement.

Traditional Procurement Route

As the most common procurement approach in building works, the traditional procurement is most common in the procuring of building works. This procurement approach is a single-stage, and is fully design where the design is developed in detail by the project’s consultant team. Besides, in this procurement approach, the constructor is placed under an enormous contract that comprises penalties for a late completion. Among the various advantages of this procurement route is that quality is guaranteed because the full design is provided before the tender; it is characterized by design flexibility as the specialist are given the opportunity  to update to the set standards of the contract. Besides, there is a design control when the traditional procurement approach is used. On the other hand, a disadvantage of the traditional procurement is that this procurement approach requires a full detailed project pretender and lump sum payment.

Design & Build Procurement Approach

In this procurement approach, the main contractor is appointed in constructing as well as designing the construction works. Among the most significant benefits of this procurement approach is that it is characterized by a single-point responsibility and it is easy to fast track and overlap the design. Besides, the design and builds approach is characterized by a low risk for the client. On its disadvantages, the design and procurement approach serves as the cheapest route of meeting client’s requirements and may at times lead to poor quality work. Besides, in the design and build procurement, there needs to be a pre-agreed dispute resolution procedures as the project may be characterized by significant conflicts.

Management procurement

This Procurement approach helps in the purchasing of services as well as goods from the external suppliers. The route provides procurement procedures and processes explaining step-by-step approach of purchasing from suppliers. The greatest benefits of this approach is that it is suited for Complex projects and it is potentially cost saving .since the project tender is awarded through competitive tender approach. On the other hand, the various disadvantages of the management procurement approach include the fact that it is not sustainable, and it is characterized by fixed costs. Besides, the absence of a specialist may leave significant gaps in the work undertaken.

Having revised the procurement approaches, most effective procurement approach may be the traditional route as it will help the project manager to achieve the project objectives. As evident in this analysis, there will be an increased level of accountability because of the competitive selection of constructors. Besides, the approach is characterized by competitive equity because the tendering contractors bid for the same project. Another benefit of the traditional approach is that price certainty when the project is awarded is guaranteed. Essentially, this procurement approach gives the project manager to reduce the expected risks associated with the procurement process.

Linked Bar Chart Projection Plan ( activities and Tasks)

It is important to have detailed plan of the various duties and activities of the construction project to as to achieve success. On the importance of the success of any given project, there is the need to come up with well-organized and managed activities. While putting into consideration the fact that the current project will take three years to complete, this section will include all the key tasks and activities and an evaluation of the most appropriate form of procurement route for the current project. Construction planning serves as a challenging and fundamental activity both in the management as well execution of construction project. Essentially, construction planning involves the choice of technology, estimation of duration as well as resources, the definition of tasks and works, and the schedule of the work. It is also important to note that, alongside the technical aspects of construction, it is important to make a good addition decision, with regards to the relationships that exist between the organization and the participant included in the project. however, the key activities of the current project will be: Choosing the construction method and technology; defining work tasks; choose a design professional; interview contractors; the evaluation of the most appropriate form of procurement route for the project; get the construction permits; commencing the actual project, respectively.

Plan Evaluation

The AMC operate intimately with the client the plan for the recommended systems. Furthermore, the AMC is required to use his experience and skills in achieving the recommend the systems and methods necessary to accomplish the owner’s expectancy. Precisely, the evaluation procedure entails activities such as analyzing structures, preparing mechanical operations, identifying electrical elements and determining architectural components.

Site Evaluation

Site evaluation requires the AMC together with the engineer to work together ensuring that the construction project utilizes only the proposed amount of money and resources. This is mostly done by ensuring that economical methods, materials, and systems are used as they prepare the site ready for the building process.

Preliminary Budgets

In this case, the AMC is responsible of supplying the client with budget numbers that are majorly based on conceptual estimates of the construction procedure. The budget estimate is presented using square footage and / or unit costs. Additionally, the preliminary budgets are determined by the ability of AMC to work with competent construction workers that have positive previous records in terms of behavior, reputation and attitude. After the estimation of budgets, the client is expected to make final decisions regarding the entire process. Preliminary budgets are important since they enable the client to estimate the quality of service expected from the contractor and the subcontractors.

Preliminary Schedules

The AMC normally coordinates with the client, contractors and suggested subcontractors to establish preliminary schedules, would be used as a source of reference in purchase of materials and accomplishment of objectives.  The preliminary schedules involve a wide range of activities. These activities include preparation of sketched drawings and seeking of documentation approvals. The primary planning schedule serves in assisting the client know the exact time required for the project completion.

General Conditions

As part of preconstruction activities, the AMC shall present the total estimated cost of the conditions to client. These conditions refer to the anticipated expense that would be incurred during the construction period. Operational expenses depend on the type of construction, workers and initial budget.