Cost Management of Engineering Works in Construction - Assignment Example

Chapter Individual Task Memorandum February 12, 2008 The Project Manager The Survey Officer CDO  Minor Maintenance Works and Routine Repairs of Campus Buildings and Facilities Description According to Cleland and Gareis (1994), projects should transform an unsatisfactory (existing or future) state to a better state within a certain time, using a limited effort. You as the project manager play an important role in the process of the project because it is the only way to organize the activity process within the project effectively. In addition, the minor maintenance works and routine repairs of campus buildings and facilities should be managed by a professional project manager to keep the project going on from time to time till the finishing date. In this case, the project manager needs to monitor and communicate with the staff accordingly to Employee attitude towards work commitment Enforce standard procedures and policy Perform better and high quality of communication skills Discipline on time management Motivate and encourage for challenge tasks. From my previous evaluation of this project, aside from us, I do recommend that we should also have other personnel for this project. We will need an assistant Project Manager, Architect, Structural Engineer, Building Services Engineer, Work Supervisor, Clerk, Technician, Labour and Driver. These personnel except for labourers and drivers will be hired in regular basis and be paid depending on their job description. Labourers and drivers will work in term contract basis and shifting schedules in order to avoid too much time consumption for the project. This maintenance project should be done within a year, that’s why we need to have a detailed plan and schedule of building maintenance. The projects sites should be isolated from students of the campus in order to avoid accidents and projects distractions. Continues work of the project and effective distribution of tasks among staff with efficient budget allocation may contribute to the success of the project within a year’s time. Projects are not just all about technical issues. Non-technical issues such as the management of the members of the team or the issue of outsourcing are also important to consider. Basically, establishing strong human relations within the people doing the project is necessary because they are the ones who perform the tasks. An unsatisfied member might get his performance affected that might cause the development of the project extra time and cost. When a member resigns or quits because of certain issues within the team, time and cost will also be affected as a new one should employed. Other issues include: ill-prepared scope of works; inadequate communication; and complacency or satisfaction. In sum, employees within the project need to be empowered, and it is within the responsibility of the project manager. The project manager must remember the project management is not all about managing the technical aspects of the project, but also the performance and disposition of the people performing the specific tasks. Thus, he or she should be familiarized or should integrate a positive culture within the project team. Aside from having a good team the proper choice of type of contract should be done. The project aims to lower the cost and lessen the days of work. There are several kinds of contract: Lump Sum Contract or Firm Fixed price, Time-Based Contract, Retainer and/or Contingency (Success) Fee Contract, Percentage Contract  and Indefinite Delivery Contract (Price Agreement). Since the project’s content and duration of services and the required output of the consultants are clearly defined it is best to use the Lump Sum (Firm Fixed Price) contract. Lump sum contracts are easy to administer because payments are due on clearly specified outputs. The project manager can choose which contractor will be handling the maintenance of the campus. Before choosing which contract the company will be using, the project manager should be able to update the Schedule of Rate. The tenderer should present the cost of the work trade. The project manager should be able to have at least several tenderers so that the company will be able to assess which contractor offers the best. In choosing which contractor the following factors should be consider: cost and duration of the project, accessibility of the materials and the safety of the students in the campus. Choosing the appropriate tenderer will help the company to lower its cost. The project will be paying the consultants, project managers and others. To help lower the cost of the project it is best to identify the priorities of the project. Personnel, materials and the cost of contract are the factors that need to be assess before proceeding in the work. Chapter 2 Group task 2 Schedule of rates published by Architecture services department of HKSAR (SOR-ASD) From the given development in Architecture services department (ASD), this project will be considering the SOR. With this regard, the rates to be paid in each worker will consider the type of job they are doing, the materials, labour and wastage is also considered. Reinstatement and making good surfaces disturbed after fixing should also have different rates. Apparently, superintendence, overhead expenses and profit has different schedule of rates as published by Architecture services department of HKSA. General preliminaries in maintenance of building must also be considered in accordance to SOR there should be an assessment to get an estimate tender sum for comparison of different tenders. Schedule of rates prepared in particular for this maintenance contract (SOR-MC) From the previous discussion, the SOR of maintenance should consider the following: Concrete Work Brickwork and Blockwork Scaffolding and Staging Carpentry and Joinery Ironmongery Steel and Metal Work Plasterwork and other Floor, Wall and Ceiling Finishes Glazing Painting Demolition Electrical Installation Basically, the previous breakdown of SOR depends on the type of tender imposed by a worker to finish the project. With regards to this, it very vital for the worker to do his job effectively in according to the type of job imposed to him since there is an appropriate compensation per given tasks. Comparison The approach to arrive at a price base for the purpose of tender assessment When running a maintenance project, it is important to understand the values and issues that workers have in order to address them and keep everyone on board for the duration of the project. Workers are not always keen to participate but engaging them at this early stage of the project will help ensure success. With respect to the success of the projects, the approach to arrive at a price base for the purpose of tender assessment must be considered. As seen in the previous discussion SOR-ASD shows limited breakdowns as compared to the assessment of task shown in SOR-MC. Since we are in the maintenance project for CDO, then for this project SOR-MC in which a list of items that describes the works to be possibly carried out together with assumed quantities will be produced and tenderers will be required to put individual unit rate on each item. The approach for valuing works orders i) (SOR-ASD): If the schedule of rates have the rate, we will use that rate, if not, we will use pro-rata rate or build up rate or agreed rates or star rates) ii) (SOR-MC): Use the tender rate priced by the contractor directly. From this comparison is it always suggested to use the SOR-MC approach in order to value work orders since we don’t need to assume pro-rata rate or build up rate and instead we only consider tender rate priced by the contractor directly and easy more efficient compared to SOR-ASD. The degree of difficulty in agreeing the value of works orders It may be difficult for both parties to agree the build up rates if we are using SOR-ASD since the descriptions of tasks to be measured is quite broad. On the hand, SOR-MC is quite reliable and easy for the worker to assess since it shows in detail the breakdowns of the job. Tendered can easily identify the possible compensation they will get in accordance to the given tasks. The allocation of risks by tenders In accordance to the allocation of risks by tender, the scope of works can not be define, not exact quantity in the tender stage if we use the SOR-ASD. However, in SOR-MC, although the stages of the project are not yet defined, the breakdowns in accordance to the possible task to be done are shown. Actually, the allocation of risks by tenders reflects on the schedule, the resources, the scope and/or the quality. As part of the development of project maintenance, risks should be considered. In the pursuit of a project maintenance in CDO to improve its capacity to provide the services to the people and in the same time satisfy the needs of students and stakeholders in the University, risks management and analysis of project construction issues are thus the most effective solution. Other implications to CDO From the previous analysis, several factors can be determined, which need improvement. Primarily, the contracts to be used in the projects must be appropriate, which suits the style and preferences of its employees. The management style of the project managers must then be given enough attention to ensure the organisation and control of the tenderers. Function also includes organising, which determines what needs to be done, how will it be done and who will do it, leading to directing and motivating all parties and resolving conflicts, controlling, and making sure that the organisation has achieved its stated purpose (De Bono, 2005). In short, the scope in the project management entails the refreshing and reinforcing of the tasks and responsibilities of the project manager. Due to the problems and the target project plan that have been distinguished by CDO, it is decided to create a plan in relation to maintenance measures. Recommendations Based on the discussions above, it is found out that planning is a key resource of the organisation, together with people, finances and material assets. Thus, it is accepted to state that project plan is a business issue. The discussion above revealed that through effective project planning management of the CDO’s resources and materials, organisation administrators can add value to the services, reduce risks in the organisation’s business, reduce the costs of business development and service delivery and encourage improvement in internal business processes and external service implementation. On the other had, it is recommended that when doing a maintenance project, it is better to build a report that is ideal for a specific need then to make a report based on a predefined concession. It is best to understand the different types of contract so that the company can choose which among them will be cost effective and fast. Finally, the use of the quantities in decision-making model helps us to minimise mistakes. Aside from the steps above, it is also recognised to list all the alternatives, identify future events that may occur, and construct a pay-off table in making effective decisions. References: Cleland, D.I. and Gareis, R. (Eds) (1994). Global Project Management Handbook, McGraw-Hill International Editions. De Bono, S (2005). Assessing Managerial Attributes Case Study of Maltese Managers in the Service Industry, DBA Executive Summary. Requests for Building Construction, Repairs and Maintenance, (2007) http://www.columbia.edu/cu/administration/policylibrary/policies/cufo/00bb9c6715814c870115b5e1b5e80002.html Read More

Thus, he or she should be familiarized or should integrate a positive culture within the project team. Aside from having a good team the proper choice of type of contract should be done. The project aims to lower the cost and lessen the days of work. There are several kinds of contract: Lump Sum Contract or Firm Fixed price, Time-Based Contract, Retainer and/or Contingency (Success) Fee Contract, Percentage Contract  and Indefinite Delivery Contract (Price Agreement). Since the project’s content and duration of services and the required output of the consultants are clearly defined it is best to use the Lump Sum (Firm Fixed Price) contract.

Lump sum contracts are easy to administer because payments are due on clearly specified outputs. The project manager can choose which contractor will be handling the maintenance of the campus. Before choosing which contract the company will be using, the project manager should be able to update the Schedule of Rate. The tenderer should present the cost of the work trade. The project manager should be able to have at least several tenderers so that the company will be able to assess which contractor offers the best.

In choosing which contractor the following factors should be consider: cost and duration of the project, accessibility of the materials and the safety of the students in the campus. Choosing the appropriate tenderer will help the company to lower its cost. The project will be paying the consultants, project managers and others. To help lower the cost of the project it is best to identify the priorities of the project. Personnel, materials and the cost of contract are the factors that need to be assess before proceeding in the work.

Chapter 2 Group task 2 Schedule of rates published by Architecture services department of HKSAR (SOR-ASD) From the given development in Architecture services department (ASD), this project will be considering the SOR. With this regard, the rates to be paid in each worker will consider the type of job they are doing, the materials, labour and wastage is also considered. Reinstatement and making good surfaces disturbed after fixing should also have different rates. Apparently, superintendence, overhead expenses and profit has different schedule of rates as published by Architecture services department of HKSA.

General preliminaries in maintenance of building must also be considered in accordance to SOR there should be an assessment to get an estimate tender sum for comparison of different tenders. Schedule of rates prepared in particular for this maintenance contract (SOR-MC) From the previous discussion, the SOR of maintenance should consider the following: Concrete Work Brickwork and Blockwork Scaffolding and Staging Carpentry and Joinery Ironmongery Steel and Metal Work Plasterwork and other Floor, Wall and Ceiling Finishes Glazing Painting Demolition Electrical Installation Basically, the previous breakdown of SOR depends on the type of tender imposed by a worker to finish the project.

With regards to this, it very vital for the worker to do his job effectively in according to the type of job imposed to him since there is an appropriate compensation per given tasks. Comparison The approach to arrive at a price base for the purpose of tender assessment When running a maintenance project, it is important to understand the values and issues that workers have in order to address them and keep everyone on board for the duration of the project. Workers are not always keen to participate but engaging them at this early stage of the project will help ensure success.

With respect to the success of the projects, the approach to arrive at a price base for the purpose of tender assessment must be considered. As seen in the previous discussion SOR-ASD shows limited breakdowns as compared to the assessment of task shown in SOR-MC. Since we are in the maintenance project for CDO, then for this project SOR-MC in which a list of items that describes the works to be possibly carried out together with assumed quantities will be produced and tenderers will be required to put individual unit rate on each item.

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