CONSTRUCTION PROJECT

MANAGEMENT
Dr. K. N. Satyanarayana
Building Technology & Construction Management Division
Department of Civil Engineering
Indian Institute of Technology, Madras
satyakn@iitm.ac.in
Infrastructure investment as a % of GDP
201213 201314 201415 201516 201617 Total Twelfth plan
7.2
7.4
7.6
7.8
8
8.2
8.4
8.6
8.8
9
7.4
7.62
7.95
8.38
9
8.18
Investment as a % of GDP
Source: CPC - Twelfth five year plan (2012 -2017) volume 1
Required Investment in Infrastructure Sector
Source: CPC - Twelfth five year plan (2012 -2017) volume 1
Category
Amount (in Lakh Cr
INR)
%
Electricity 15.02 27%
Renewable 3.19 6%
Roads 9.15 16%
Telecommunications 9.44 17%
Railways & MRTS 6.43 12%
Irrigation & Water 7.60 14%
Ports & Airports 2.85 5%
Oil & Storage 2.07 4%
Grand Total 55.75 100%
Roads
Airports
Ports
Power
Urban Infrastructure
Real Estate
Special Economic Zones
IT Parks
Corporate Campus for TCS
Will house around 20,000 workers
12 glassy buildings relying on natural
light
Step like structure evokes traditional
South Indian temples
Tower will be highest in South India
International project team consisting
of architect Carlos Ott, Carlos Ponce
De Leon, Uruguay and C R Narayana
Rao, Chennai; consultatt TCE, India; and
contractor L&T, India
Expected to be completed in 2008
Courtesy: Site office
TCS Technopark, Chennai
Future Development of Indias
Construction Industry
India GDP
Construction
Growth
Construction industry
will exceed the overall
GDP growth
http://www.bcindia.com/en/p.21730941/
Exhibitors/India
India's Construction Spending Outlook
(IHS 2010) IHS Global Insight - India construction: importance of infrastructure construction in India
Global Construction Market
Source: Holcim Ltd. - Helvea Swiss Equities Conference, January 2012
All figures in percent
Source : Global Construction Study, Global Insight, Inc.
The Construction Market 2003 Growth & Risk
Construction Market in India
Currently 4
th
largest in the world (after US, China
& Japan)
Value in Year 2010 - $360 billion
Expected in Year 2020 - $840 billion
Governments Infrastructure Budget for 12th 5
Year Plan (2012-17) - $1 trillion
4 Key Segments Housing (67%), Infrastructure
(13%), Commercial (11%), Industrial (9%)
Source: Business Standard, March 27, 2012
Indian Construction Industry -
Overview
Share of Construction in GDP 7.40% (2012-
13)
Total Construction Workforce 31.5 million
Engineers 2.65%
Sub-Engineers 1.85%
Skilled 10.57%
Unskilled 82.45% (Predominantly migrant, about 1/3 women)
27,770 enterprises
Planning Commission, Government of India, Twelfth five year plan (2012-17), Vol 1, Oxford University Press, New Delhi, 2008.
Source: RICS Research Real Estate and Construction Professionals in India by 2020
19 Source: RICS Research Real Estate and Construction Professionals in India by 2020
Possible work areas
Design Construction Planning
Project Development
Project Management, Contract Management
Building services, Facilities management
Development of software for Structural analysis & design, CFD,
Geo-mechanics, Project management, EIP,.
Project Financing- BOT type projects, Risk Management
Supply Chain Management Plant & Machinery
Banks Engineer, Lenders Engineer Arbitrator
Training of staff & workmen, construction skills development
Safety Management Safety, Environment & Health
Quality Management
Technical Writer
!!!
20
21
Indian Construction Industrys Current Status
Many small size companies with a few companies with modern
management and technical skills (28,000 companies + Individual Builders)

Over employment and low productivity

Age old construction methods

Large time and cost overruns in public projects, in general

Scarcity of project managers and construction managers

Lack of trained workers

22

Poor safety standards

Quality only good by exception

Lack of planning and monitoring

Standards conservative - resulting in higher consumption of materials
23
International Comparison

Largest Indian company only 35th in the world ranking

Very large consulting engineering firms with latest knowledge and skills

Standardization high pre-engineered structure usage high and catalogue

products

EPC / Design & Build / Turnkey contracts specialized in each industry /

infrastructure

Prefabricated steel and Pre-cast concrete products or usage of ready-mix

System formwork

Meticulous planning

Techno Economic Indices guide

24

Specialist / General contractor

High labour costs per man-hour but high productivity due to mechanization
and better methods
o
For example: 100 man-hours for 100 m
2
flat formwork
o
0.2 man-hours / sq.m of formwork
o
Cost of concrete / m
3
not much different

Good organization and management

Focus on work preparation and pre planning

Better management skills and practices

Contract terms (FIDIC fair)

High productivity and safety record

25

Highly skilled and specialized manpower

Quality assurance and control

IT systems for PM and monitoring review

Good supply chain management and procurement due to scale of operations

and global reach

First time right and no rework

Construction Projects Participants
Owner
Architect/Engineer
Contractor
Materials and Equipment Suppliers
Subcontractors
Regulatory Agencies
Consultants technical, legal, financial
CONSTRUCTION PROJECT MANAGEMENT

Managing a construction project is different from

managing a continuously running organisation like a
factory or hospital

A project has distinct beginning and end

Project management involves

>> Planning
>> Executing
>> Controlling
PROJECT MANAGEMENT TEAM OBJECTIVE

The completion of project within specified cost limits

The completion of project within specified time limits

Construction to specified standards

Meeting the clients functional requirements

Minimise adversarial relationships between project

participants

Preservation of health and safety of the people involved

29
30
Science of Project Management
31
Project Management Techniques/Skills
Topics covered in Construction
Management
Planning and Control Time and Cost
Construction Contracts
Personnel Management
Quality Management
Safety Management
Materials Management
Productivity Improvement
Financial Management
Computer Applications
GANNT CHART (BAR CHART)
Network Diagram
Architect: Jorn Utzon
Construction: 1957 to 1973
Initial budget: $5 million
Final cost: $120 million
http://www.twf.org.au/research/drew3.html
Huge Losses in India due to Project Delays
The ministry of statistics and programme implementation has a division governed by it called
the Infrastructure and Project Monitoring Division.
The latest notes prepared by the division highlighting the implementation status of projects
and performance of 11 infrastructure sectors is a sad saga of government delays and
colossal waste of public money.
The division has 605 projects worth Rs 267,815 crore (Rs 2,678.15 billion) on the monitoring
system on which Rs 105,146 crore (Rs 1,051.46 billion) have already been spent.
Out of these 605 projects, around 248 projects are way behind schedule. Another 149
projects, though approved, have not even been commissioned, and 46 other projects are
waiting for the updating of their completion schedule.
Merely 22 projects are ahead of schedule, while 14 are on schedule.
The overall cost overrun with respect to original cost is 21.5 per cent, mainly because of
delays, which range from one month to 13 years!
http://us.rediff.com/money/2004/nov/05spec.htm
Safety
Tragedy at Tehri
PURNIMA S. TRIPATHI
at the Tehri dam site
An accident in a tunnel under construction at the Tehri dam site claims the lives of
about 30 workers.
PICTURES: SANDEEP SAXENA
A view of the 2,400 MW Tehri hydel project with the vertical shaft in the
foreground, where the landmass caved in.
http://www.frontlineonnet.com/fl2117/stories/20040827003003300.htm
2 killed, many injured as fly-over scaffolding crashes in Hyderabad

PHOTO : P.V. Sivakumar



BOLT FROM THE BLUE: The heavy scaffolding of the Panjagutta flyover
under construction collapsed on Sunday after heavy rain, crushing
vehicles.
HYDERABAD: Two persons were killed and scores injured as the scaffolding
of a fly-over under construction caved in near Panjagutta cross roads on
Sunday evening, even as heavy rain lashed the twin cities disrupting normal
life.
Date:10/09/2007 URL: http://www.thehindu.com/2007/09/10/stories/2007091057640100.htm