LOVELY PROFESSIONAL UNIVERSITY

ASSIGNMENT NO. 1

Lovely Honors School of Business Department of Management

Homework Title : Construction Of Apartment

Course Code : MGT301

Course Instructor : Sweta Singh Course Tutor (if applicable) :

Date of Allotment : 21-08-2010

Date of submission : 30-08-2010

Student’s Roll No.: A12

Section No. : R1813

Registration No: 10800482

Declaration:
I declare that this assignment is my individual work. I have not copied from any
other student’s work or from any other source except where due acknowledgment
is made explicitly in the text, nor has any part been written for me by another
person.

-ARCHIT
 Intro
duction
No matter how simple of a business one may want to run, starting one is almost never an easy
process. Hurdles to success will nearly always exist, and coming up with a plan to deal with
them is one of the first steps in learning how to start a business. Starting a construction company
can be a profitable venture under the right circumstances. Construction is an industry that will
always be in demand and will not yield easily to automation. If you have experience in
construction and want to start your own company, be sure to research requirements, laws, and
business basics before taking the plunge.

One of the first things to consider before starting your own construction company is financing. If
you do not have available funds to purchase materials, tools, and labor, you will need to arrange
financing for the startup of your company. You also need to make sure you have a contractor’s
license and bonding insurance to protect you. The amount of financing you need will vary
greatly depending on the size of the construction project of apartment you intend to start out
with. If you are performing small jobs such as remodels, additions, or decks, you might be able
to purchase materials and tools on credit. Remember that interest eats away at profit, so be sure
that you can meet a completion date and collect your fees from your clients in a timely manner.

It is extremely important to have an understanding of cost estimation when you bid a project.
Underbidding yourself to get jobs will soon eat away at your profits and eventually doom your
success. However, if you bid too high, your more established competitors will beat you out. If
you do not know how to bid competitively, you should either develop the skill or hire someone
who is knowledgeable about construction estimation.

With funds available for purchasing materials, insurance to cover potential accidents, and clients,
you will have to turn your attention to your craft force. If you plan to be on site at all times
overseeing the construction process, you can easily manage your craft force. If you intend to
work hands off, you’ll need to hire someone experienced at leading a crew of workers to make
sure the job is done right and according to schedule.

Start with small jobs and advertise by word of mouth. Do a good job for your initial clients, and
they will spread the word. Ask to place temporary signs at a completed site for advertising
purposes as well. Make sure you have someone available to provide estimates for potential
clients without holding up current construction projects. As your company grows, you can hire
additional personnel to assist with certain jobs.

Be sure to develop a good relationship with building inspectors in your area and to have both a
business attorney and an accountant at your disposal should you need their services. Careful
planning and attention to detail will ensure that your construction company stays afloat during
the roughest first two years of operation. With a qualified craft force and a desire to succeed, you
can grow a solid small to mid-sized construction company within five years.

Project Management for Construction

Fundamental Concepts for Owners Perspective Organizing For Project Management

• The Design And Construction Process

• Labor, Material, And Equipment Utilization

• Cost Estimation

• Economic Evaluation of Facility Investments

• Pricing and Contracting

• Construction Planning

• Fundamental Scheduling Procedures

• Cost Control, Monitoring, and Accounting

• Quality Control and Safety During Construction

• Organization and Use of Project Information

• Legal obligations.

Successful Project Implementation

Successful implementation of the project lies on effective project plan. Based on the expected
goals and objectives the project planning to be made.

Problem Formulation and Statement of The Problem

The crux of the project lies in the problem formulation process. The project team should have
detailed understanding of the problem, scope, intervention areas and the outcome of the project
to be hypothesized.

Project Planning

Project planning: can be defined as

A scientific and systematic process, in which Logical linkages are clearly established, among
various element of projects so that we can make best plan for construction of apartment

Budget

The project budgeting phase is in the project formulation phase. Two types of budgets are to be
made. The prior one is the cost category budget (materials, administration, capital; expenditures
etc.) and the latter is the activity budget. This project budget is to calculate the cost of each
project output.

Feasibility Of the projects

• Technical Feasibility.
• Financial feasibility.
• Environmental Analysis

Pre-Requisites for successful implementation of project

• Cursory assessment of input requirement

• Superficial field investigation
• Slip- shod method used for estimating cost and benefits.
• Omission of project linkages
• Flawed judgment because of lack of experience and expertise
• Deliberate over -estimation of benefits and underestimation of benefits.

Sound project organization

Construction Company organizes for its work depends on number and size of projects, project
complexity, and geographical distribution of the work.

• It is led by a competent leader who is accountable for project performance

• The authority of the project leader and his team is commensurate with their
responsibility.
• Adequate attention is given to the human side of the project system and method is clearly
defined.

Proper Implementation Planning

 • Develop a comprehensive plan for various activities like land acquisition, tender
evaluation, recruitment of personnel, construction of apartment etc.
• Estimate meticulously the resource requirement (manpower, materials, money etc.) For
each period to realize the time plan.
• Define properly the inter linkages between activities of the project.
• Specify cost standards.

+ Advance action

When the project appears prima facie to be viable and desirable, advance action on the following
activities may be initiated:

• Acquisition of land.
• securing essential clearances,
• identifying technical collaborators/consultants,
• arranging for infrastructure facilities,
• preliminary design and engineering, and calling of tenders

Timely Availability of funds

• Once a project is approved, adequate funds must be made available to meet its
requirements as per the plan of implementation- it would be highly desirable if funds are
provided even before the final approval to initiate advance action. Piecemeal, ad- hoc,
and niggardly allocation, with undue rigidities, can damage the maneuverability of the
project team.
• Help should be extended to contractors and suppliers when they have genuine problems
they should be regarded as partners in common pursuit.
• Project authorities must retain latitude offload contracts (partially or wholly) to other
parties well in time where delays are anticipated

Conclusion
I think that the main advantage of requirements driven project planning is that the project
manager can use the actual subject matter of the project to make a plan and to react to changes.
You can use the requirements to estimate work, design tasks and monitor progress. A defined
requirements structure gives you the formality necessary to measure the current state of the
requirements. However the formal structure does not force you to work in a procedural manner,
it merely provides pigeonholes so that you know where to put particular knowledge when you
discover it. So you can always identify gaps and changes in the requirements specification and
adjust your plan accordingly. And lastly, because you are writing the requirements in non-
technical, albeit precise, language, it means that you can involve the every person that involve in
project.