EM 504: Project Management Framework and Tools

Application of
Project Management
on Affordable
Housing Projects
Syed Muhammad Talha Ali Naqvi CE-084/2018-19
 Table of Contents
INTRODUCTION .......................................................................................................................... 3
LITERATURE REVIEW ............................................................................................................... 5
REFERENCES ............................................................................................................................... 7
METHODOLOGY ......................................................................................................................... 8
STUDY DESIGN............................................................................................................................ 9
APPENDIX ................................................................................................................................... 10
 INTRODUCTION

Background and Description of Topic

Affordable housing refers to housing units that are affordable by that section of society whose
income is below the median household income
Affordable housing addresses the needs of low-income and middle-income group of the society.
The issue is getting due concentration around the world, especially in developing countries.
Since majority of people in such countries are unable to fulfill their living needs, the
governments are shifting focus towards providing housing facilities within their financial limits.

The affordability is measured in terms of a factor called affordability index. The Housing
Affordability Index measures whether or not a typical family earns enough income to qualify for
a mortgage loan on a typical home at the national and regional levels based on the most recent
price and income data.

Significance
Around 70 per cent of Karachi’s current inhabitants are poor, and a majority of them have been
pushed into relatively more affordable peripheral areas of the sprawling city. However, these
low-income residents find living on the periphery increasingly expensive and inconvenient.
Transport costs have more than doubled and the uncomfortable commutes on crowded public
transport are long. A study by the Urban Resource Center in Karachi, for example, recently
found that working women in the city are spending around four hours a day travelling in public
transport, and much of their income is spent commuting to and from work on buses.

Given the current population growth rate and migration influx, the housing demands in Karachi
continue to grow. Lack of adequate planning is leading to improvised and makeshift solutions.
The informal sector, for example, is catering to this growing housing demand by either
purchasing single-storey homes from owners, or by entering into partnerships with them, in order
to build high-rise apartment blocks. The extra rooms or floors built onto existing structures are
creating increasingly congested housing to meet with the growing demand of low-income
residents.

Since low-cost housing projects require building the facility within limited resources, the
knowledge of Project Management and tools become of utmost importance. The efficient use of
material, manpower and equipments is the most critical aspect in such projects. Project
Management aids in achieving the right quality within various constraints to make the project
successful.
Objectives:
 Identify the major causes of schedule overrun and over budgeting in housing projects
 Study the current PM practices in housing development projects
 Determine the practices that are most effective in low-cost housing development projects.
 LITERATURE REVIEW
Different kinds of research articles have been studied for the purpose of this study. These papers
range in themes widely from case studies, to proven methodologies to effective strategies.

Major sources have been derived from Abu Bakar, Abd Karim, Yusof and Pin, 2012. In this
paper, factors that cause the time and cost overrun of housing projects in Penang are identified.
Also, the necessity of the project manager in housing development projects and effective
strategies for a successful project is also studied in this paper.

City of Sydney Affordable Housing, 2008 focuses on how the Sydney may facilitate and protect
housing which is suitable to the needs of low to moderate income households and which does not
consume such a high chunk of household income that it leaves households with lesser money to
meet other necessity costs. In the context of this paper, affordable housing will primarily be low
cost rental housing, including boarding houses, as well as subsidized housing made available
only to very low to moderate income households. The gross income of such households is:
• Very low income household – less than 50% of the median household income for
Sydney Statistical Division;
• Low income household – more than 50% but less than 80% of the median household income for
Sydney Statistical Division; and
• Moderate income household – more than 80% but less than 120% of the median household
income for Sydney Statistical Division.

Wiesel and Davison, 2012 examines how contemporary Australian affordable housing projects
are designed, financed, developed and managed. The study aims to deepen understanding and
raise awareness of the various trade-offs that shape the design and development of affordable
housing projects in Australia, and to suggest ways in which such trade-offs can be managed to
deliver outcomes that are socially, environmentally and financially sustainable. The study also
offers a tool for project-level evaluation of affordable housing.

The project level analysis is underpinned by the concept of sustainability, giving consideration to
financial, social and environmental goals and outcomes of affordable housing projects. A
sustainability framework encourages providers planning a new project to aim high, to manage
multiple objectives and to consider both immediate and long-term impacts.

Ahadzie and Mensah, 2010 reviews the role of project managers (PMs) and their performance on
the projects in Ghana including how they have helped or met project objectives especially in
terms of completion dates and cost.

The paper suggests that, all other things being equal, some characteristics of the professional
project management services could be adopted and embodied into a framework within which
current management practices can be advanced for improving effective delivery of future
housing projects.

Harelimana, 2017 discussed some affordable housing trends using primary and secondary data
filtered from prior studies. Different criteria have been discussed in depth in order to provide
significant overview about affordable housing. Although the paper studies the case of low-cost
housing in Rwanda, the strategies identified could be used in the local sector as well.

This study also reviews news articles for current situation of housing development in Pakistan.
(Sources are mentioned in References)
 REFERENCES

[1] Abu Hassan Abu Bakar, Nurkhuraishah Abd Karim, Mohamad Nizam Yusof and Chan Han
Pin (2012), The Necessity of the Project Manager in Housing Development: Case Studies in
Penang, Malaysia.

[2] City of Sydney Affordable Housing (2008)

[3] Ilan Wiesel, Gethin Davison, Vivienne Milligan, Peter Phibbs, Bruce Judd and Michael
Zanardo (2012), Developing sustainable affordable housing: a project level analysis

[4] D.K. Ahadzie and K. Amoa-Mensah (2010), Management Practices In The Ghanaian House
Building Industry.

[5] Jean Bosco Harelimana (2017) Towards Affordable Low Cost Housing: Strategies of Low
Cost Housing Development for the Low Income Population in Rwanda. Int J Fam Busi Manag
1(1): 1-7.

[6] Pakistan and Gulf Economist (September 24, 2018), Affordable housing dilemma. Retreived
from: http://www.pakistaneconomist.com/2018/09/24/affordable-housing-dilemma/

[7] The Express Tribune (December 3, 2015), Karachi’s housing problem — is there a solution?
Retreived from: https://tribune.com.pk/story/1003337/karachis-housing-problem-is-there-a-
solution/
 METHODOLOGY
Following are the major steps for this study:

 Design of questionnaire
 Carrying out the survey
 Analysis based on relative frequency
 STUDY DESIGN

The questionnaire is designed so to fulfill the objectives of the study. Respondents are to answer
questions freely and not from selected number of answers.

The interview/questionnaire is divided into two sections, first section relates to the information
about the respondent i.e experience, types of projects experienced and number of projects
completed.

The second section relates to the information about the critical factors, role of government,
success parameters etc. This part also gathers information about previously completed as well as
currently going projects.

Finally, the section relates to information about the role of project management in housing
development projects and most successful strategies.

The target audience for this study are the construction companies and project managers who are
currently experiencing or have gone through affordable housing development projects.

The results of this study will be derived from personal interviews as well as questionnaire sent
through email and other social media platforms.
 APPENDIX

SURVEY FOR EFFECTS OF SCHEDULE COMPRESSION METHODS ON

EQUIPMENT AND LABOR PRODUCTIVITY
Section 1: General Information

1. Position: ___________________________

2. Experience: ________ years.

Section 2: Role of Project Management

3. According to you, what are the major obstacles in developing low cost housing projects?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

4. What role does government play in low-cost housing development?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

5. What are the major factors that determine the success of a low-cost housing project?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

6. Has there been any project not completed within time or budget ? What was the reason?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

7. What according to you, is the major cause of failure of a project?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
8. How does the skill of project management helps in low cost housing projects? What role does
a project manger plays in such projects?

______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________

9. How do you define an ideal project manager for a low cost housing project?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

10. Suppose you are managing a low-cost housing project, and it is going over-budget. What
strategies will you adopt to control the project?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

10. Suppose you are managing a low-cost housing project, and it is going behind schedule. What
strategies will you adopt to control the project?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

Thank You For Your Time!