Construction of New Office Complex - Lexorex Corporation - Research Paper Example

Construction of New Office Complex To; Leon Stevenson, CEO Lexorex Corporation From; Deemen Contractors cc. Dr. Carmen Joharn University of South Australia (11 May 2012) Background Lexorex Corporation is a mid-sized company that manufactures toys for children. It began as a small company in 1996, and has grown immensely over the years. its factory complex doubles up as an office complex. The offices are housed in the upper floors of the building, while the lower floors act as the manufacturing plant. At the beginning, this space was adequate for the firm’s operations. The growth of the company has necessitated expansion of its operations. Personnel numbers have more than tripled since its incorporation. Office space has become squeezed and employees have to share the limited space. The increased production requires more space as new machines cannot fit in the old building. The factory/office complex has become both unsafe and unhealthy to work in. Employees’ motivation is low and their productivity has been declining steadily over the last couple of months. It is time for change, and a new office complex will bring in a breath of freshness to the company. The proposed project is for the construction of new offices. The old factory/office block will be converted ad used exclusively as a manufacturing plant. Aim and purpose of the project In order to satisfy the needs of the client, the consultant must identify those problems that need to be solved (Kristina & Bronius, 2011). The first aim, therefore, is to consult the company’s management on the specifics of the building. By doing this, the contractor will know what it is that the company wants. This will assist in delivering a building that takes care of the client’s concerns. These may be in the interior design, spacing or even the general layout of the complex. The proposed project will provide the company with new office space. It aims at ensuring that the company gets a healthier environment for its employees. Building a new office complex is in line with the company’s expansion strategy. It will facilitate this by creating an environment in which this can be achieved. The purpose is to introduce a modern working environment into the company. Innovative architectural designs will be used to create an environment where innovation and great ideas can be nurtured. General scope of the project Designing the building, having the designs verified, coming up with a work breakdown structure, planning, procurement of materials and the final implementation are all part of this project. The contractors will generate a design that must be acceptable to the management of the company and be approved by the authorities. The excavation and laying of the building’s foundation will be done in accordance with the approved plans. The project involves the construction of a thirteen storey office complex. Other activities covered by the project include; partitioning the office spaces, installing required devices such as the elevator, lighting system, interior design and landscaping. All the required works on; washrooms and kitchen tiling, electrification, flooring, glasswork, hardware fittings, sanitation, lighting, air conditioning, fitting electrical appliances landscaping and painting will be done under the project. The project will not include furnishing the offices, maintaining the installed devices and shifting to the new building. It is limited only to construction and the contractors will not be involved in any other processes. Project objectives The main objective of the project is to solve the problems that the company is experiencing in the old building. This general objective can be broken down into specific objectives that address particular problems. These include; a) Create more space for expansion. The building from which the company currently operates has limited space for all its activities. The company needs to expand its manufacturing operations but the space available cannot allow such an expansion. New machines need more space, and so do the additional employees. The object of this project is to build a complex into which the offices will be moved. This will create space in the old building for further expansion. b) Create additional space for employees The company’s office space is squeezed. Employees share overcrowded office spaces and this has led to a decline in their motivation and productivity. The new office complex will house spacious offices. This will decongest the working environment. Space will be created where the employees’ creativity can be enhanced. The additional space will foster better relationships and communication at work. The company will also get space to house additional employees who will be required after the company expands. c) Provide a healthy working environment The congested building has become unhealthy and unsafe to work in. Facilities within the building have become stretched due to the large numbers of employees in the building. Ventilation is insufficient and the employees are prone to air borne diseases due to the overcrowding. It is very easy for them to acquire contagious diseases. The drainage system also gets blocked frequently. The manufacturing plant endangers the lives of employees because it is not spacious. In case of an emergency such as a fire, the exits would not be adequate to let all the people out safely. The project intends to create a healthier and safer environment. The new building’s design and size will accommodate more people. Safety features will also be installed to ensure the safety of employees and other occupants of the building. Outcomes The outcomes of a project can be used to measure its viability or success (Li & Guo, 2011). The client should benefit from the outcomes of the project. Successful project implementation should meet the targeted objectives (Kristina & Bronius, 2011). This project will result in the construction of a modern office complex. The company will benefit from the project in a variety of ways. The increased space will allow Lexorex to expand its operations. The increase in production will boost the company’s earnings. The company will also create more jobs in the economy by employing additional employees. In this way, it will achieve some of its social responsibility goals. Lexorex will also be able to adequately meet the demands of and expanded market. Creation of more office space will allow employees to have personal working space. This will encourage creativity as they design new and innovative designs for the company. Their productivity will also increase. This is crucial to Lexerox’s expansion plans. Information management in the company will be improved under the new office layout. This will foster cooperation among different departments within the company. Approach and methodology A Work Breakdown Structure (WBS) and grant chars are used to show how the project implementation process will be approached. The WBS provides an illustration of the work to be undertaken and the stages involved. The grant chart shows the schedule and timeline of the project. Work Breakdown Structure (WBS) The WBS shows the stages of the project to completion. It shows how the project will progress from the excavation stage to the finishing. The importance of this structure is to give a picture of how will be conducted. It enables the project managers to follow an organized format in implementing their project. It also acts as a guide on the responsibilities and obligations of different groups of people involved in the project. Formulating a WBS gives the project direction and exposes any aspects of the project that may have been overlooked at the planning or desighn stage. It is attached in the appendix as figure1. Grant chart The grant chart shows the timeline of the project. It illustrates the stages set out in figure 1 and the time within which they are to be completed. The time schedule is an important pointer to a project’s feasibility. It enables the stakeholders to assess whether it can be completed within the desired time frame. The client is given an idea on when to expect the finished product. The schedule gives guidance during the construction. If various tasks are running behind schedule, an evaluation is done to establish the cause. Any apparent issues may then be raised with the concerned parties for solutions. It is Figure 2 in the appendix. Estimation of costs This is a large construction project and the costs are immensely huge. Cost in monetary terms covers expenses incurred for; designing project and obtaining approvals, paperwork and travelling, Building materials, labour, electricity, construction, and other incidental costs. The whole project is estimated to cost $6M. This, however, is just an estimate. The actual cost of the project may end up being marginally higher or lower. Reasons for such a deviation are many. The cost of materials may fluctuate during the construction time leading to changes in the estimated prices. Inflation and foreign exchange rates are other factors affecting the cost of the project. As these change, they bring a change in the estimated costs. Other costs not envisioned in the proposal may arise in the course of the project. These will be covered under the miscellaneous costs clause. This will undoubtedly bring a change int he estimated costs. A detailed cost estimation schedule is provided in the appendix as figure 3. Resources The proposed construction project requires massive resources to be completed successfully. There are different types of resources required to implement the project. These are financial resources, human resource and materials for the project. The estimated amounts of money required for the project is $6M. This amount will be entirely provided by the client. This is because the project is funded by the company in entirety. The contractor may use its own resources at given times to defray costs that should have been met by the client. In such an event, the contractor is entitled to reimbursement. Human resource is a major requirement for the completion of the project. Architects and construction engineers will be required to come up with the design and ensure that the building adheres to its salient features. Other professionals required include; public health officials, interior designers, masons, carpenters, wielders, painters, ICT and communication systems experts, electricians among others. The contractors will use its own workforce for most aspects of the project such as design and construction. Other services will be outsourced by the contractors. The construction materials needed for the project will be procured by the contractor but the client will bear the cost. Project assumptions The project assumes that the necessary contractual documents will be signed within the scheduled time to avoid delays in the construction. It is also assumed that the required materials are readily available and can be delivered to the site when required. Another assumption made by the project is that the funds for the project are available and will be released when required. It is assumed that all the legal requirements relating to ownership, permits and authorizations have been met. Risk Construction projects involve an array of risks. These may take the form of work package level and activity level risks (Prasanta, D 2009). These include; technological, financial, environmental and social risks. The risks that this project may be exposed to are detailed in the appendix, figure 4. This chart contains the risks and a risk control plan for the project. Recommendation and conclusion The construction of a new office complex for Lexerox is a project that will take approximately 1 and ½ years to complete and be ready for occupation. The stated objectives will be realized on completion of the project. The risk control plan for the project involves both the client and the contractor. For this reason, it is important that a good relationship is maintained between them. The project presents an opportunity for job creation to the company. On completion, Lexerox will be in a position to increase its human resource and manufacturing capacity. Appendix Figure1: Work Breakdown Structure Figure2: Time Schedule WBS Start End 2.1 1 June 2012 15 July 2012 3.1 16 July 2012 20 August 2012 4.1 21 August 1 August 2013 2.2 & 2.3 2 August 2013 1 September 2013 3.3 to 5.1 2 September 2013 30 November 2013 Figure3: Estimated costs Item Estimated cost Designing the project $0.3M Procuring materials $4M Labour Costs $1M Miscellaneous and incidental costs $0.7M Figure4: Risks and Control Plans Risk Control Plan Unavailability of funds to complete the project approach financial institutions for funding Risk of accidents happening on the site Insure all employees working on the site. Establish and maintain safety measures Provide helmets and other safety equipment Technological failure Have standby machinery on site in case some machines fail References Kristina, Z & Bronius, N 2011, The Theoretical Substation of Project Management Challenges, Economics & Management, Vol. 16, pp. 1013-1018. Li, H & Guo, H 2011, Complexities in Managing Mega Construction Projects, International Journal of Project Management, Vol. 29 Issue 7, pp. 795-946. Prasanta, D 2009, Managing Risks of Large-scale Construction Projects, Cost Engineering, Vol. 51 Issue 6, pp. 23-27. Read More