SEMINAR I

LINKING CORPORATE STRATEGY WITH PROJECT STRATEGY VIA PORTFOLIO MANAGEMENT

Submitted By: Shashank Gupta, CP0512

Guided By: Dr. P.V. Akalkotkar Professor and Head of Department, CPM

CEPT UNIVERSITY M.Tech. Programme in Construction & Project Management CEPT University Ahemedabad-380009

1.1 Introduction Construction activity in India is estimated at about 700,000 crores per annum. In the 11th five year plan period 2007-12, the estimated annual outlay is around .290,000 crores only in infrastructure project. In the 12th plan period 2012-17, this is estimated to be $1 trillion i.e. about 45,00,000 crores. This works out to be 900,000 crores to be spent every year. If we add to this the construction in the real estate and other private projects, the figure become mind boggling (H.L.Chawla, 2011). Construction activities are field and project oriented as such it requires different type of treatment than that of regular industry. The complexity and diversity of projects in most organizations make the need for a clear project strategy all the more compelling while making the ability to execute that strategy even more challenging. Better construction management is required for optimising resources and maximising productivity and efficiency.

1.2 Need for study As long as buildings are constructed by human beings, "Absolute Perfection" cannot be achieved. Therefore, it is necessary that all of the work be performed in strict accordance with the requirements of the Plans, Specifications, Building Codes and Building Code Standards. Construction negligence occurs whenever a project does not follow existing safety rules or standards of care and becomes a danger to workers or the public. Negligence that occurs during a building or repair project is a common form of construction negligence. It can also occur after construction is complete due to poor workmanship. The available statics suggest that almost 95% of the construction industry in India is in the unorganized sector where fly-by-night operators rule. Of remaining 5%, more than 85% comprises semi-skilled and un-skilled workers. Construction methods though have changed but old methods are still in use for small structures. Standardization and quality control are rather weak. Many contracting firms run without adequate technically trained staff and without much appreciation for technical considerations. (Deodhar, 2011) The local developers and contractors are not following the guidelines and standards on the site. To increase their profit margin they are using materials of low quality and of much lower specifications. Because of all these factors there is decrease in the quality of the final project which ultimately results in the overall reduction in the life cycle of the project. It also increases the maintenance cost of the project and wastage of material.

1.3 Objectives To find the gap between what should be done and what is being done in the construction projects. To evolve a model for efficient utilization of portfolio management.

1.4 Scope The scope of the study is restricted to real estate construction projects having budgeted cost no more than 500 million in Indian Rupees. The analysis is carried out on the developers and contractors located in the Ahmedabad region.

1.5 Methodology (a) Literature Review The literature Study will be as below: 1. Study of various standards and guidelines in the construction industry. 2. Study of various past projects (b) Data Collection Data collection will be done through questionnaire survey from the private developers and contractors. (c) Data Analysis The data analysis will be based upon the survey taken from the private developers and contractors (d) Conclusion Conclusions will be drawn based on the analysis of the data collection and reviews from experienced experts in the field. (e) Scope of future Based on the conclusions obtained after data analysis, future scope will be decided.

1.6 Research Plan Literature review - 22nd Feb13 Data collection and its analysis - 5th April13 Final submission - 18th April13

REFERENCES
Buys, A., & Stander, M. (2010). "Linking Projects to Business Strategy through Project Portfolio Management". South African Journal of Industrial Engineering , 59-68. Deodhar, P. S. (2011). "Need of Industry Status to Construction". NBMCW . H.L.Chawla. (2011, january). "Effective Contract Management: Some Important Issues and Suggestions". NBMCW .