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Name: Mohd. Norizam Md.

Salleh Student ID:CGS00534317

ASSIGNMENT – EMPM5103

PART A

I/C No: 670703-01-6045 Part A: Page 1 of 20


Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

PART A

Question 1

The primary project success/failure criteria involve time, cost, and


performance. Discuss how these parameters may be defined as project
objectives to achieve the criteria. [20 marks]

Answer 1

Before we go and discuss further about this topic, the following are the defination of
project, time, cost and performance;

Project - means to produce deliverables or to achieve a predetermined targets and


objectives.

Time - A define start and end dates as stipulated in the contract to carry out a
specific project.

Cost - Funding limit to carry out all the necessary works to complete a specific
project at desired quality.

Performance - A specific objective that to be completed within certain specifications,


safety and sustainablity.

Today definition of project success also has been extended or modified to include
project completion :

• Within the allocated time period


• Within the budgeted cost
• At the proper performance or specification level
• With acceptance by the customer/user
• With minimum or mutually agreed upon scope changes
• Without disturbing the main work flow of the organization
• Without changing the corporate culture
(Harold Kerzner, 2009)

In any project these three elements which are time, cost and performance shall
always be referred in determining whether the project is success or fail.

A successful project must be able to achieve the deliverables or the predetermined


targets and objectives in its completion or at the end of project life cycle.

The time, cost and performance are interconnected and as the project objective they
are to be defined and accepted by the employer or the project owner at the initial
stage e.g. during the project briefing, before the detail design and technical
specifications are finally prepared.

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Time is a very essential project objective, shall the project can be completed on
time or at the extended time due to change in scope of works, despite it met the
project owner dateline, in directly it also can control the cost. No more cost is
required for a completed project but if a project is delayed or prolonged the
contractor shall sufferred esclating cost especially on the additional company
resources required to complete the remaining works e.g manpower, equipment,
facilities and etc. In which all these resources can be transferred to other project
and company can make profit shall the project is completed.

On the other hand, for the project owner a completion of a project on time shall mean
that they can carry out their business as per their scheduled and it is a possibility to
make a good fortune. For example shall a shopping mall is completed on time and
can be opened one month before Hari Raya festive, the owner can carry out their
business as planned, attracted the crowd to shop in their mall and make a relevant
profit. But shall the completion of the mall is delayed and the mall cannot be opened
before the Hari Raya festive, the project owner not only shall lose the opportunity to
make money but also shall suffer extra cost. That is why in most cases the project
owner imposes LAD (Late and ascertain damages) as a penalty to the contractor
shall the project delayed.

Another important project objective is cost or a project budget. Cost is important


because in any project the project owner had allocated the cost, base on the
budgeted cost. Shall the works is completed beyond the estimated cost and even exit
the allocation for contingencies, both the contractor and project owner will suffer
especially if the project owner have insufficient fund for the additional cost. Therefore
a successful of a project also takes into account whether the project is completed
within the estimated cost in order for all the people involve getting their pay.

Last but not least, performance of a project is achieved when it can be completed
within accepteble specifications, safety and sustainablity. Despite to be completed on
time and within the estimated cost, a project must also be completed at accetable
performance, sustainable and safety. Therefore any subgrade works, poor
worksmanship and low grade material must be advoided.

Shall all these three project objectives can be achieved then we can say that the
project is completed sucesssfully.

Managing a project within time, cost and performance is easier said than done. As
shown in Figure 1.0, time, cost and performance are the main constraints of a
project. If the project is executed/completed outside the customer expectation, then
the project has a fourth constraint which is requires a good customer relation or
customer friendly in order to allow for the entended completion time, additional cost
or maybe at a lower but acceptable standard. (Rahman Ayub, Ahmad Hilmy Abdul
Hamid 11th. April, 2007),

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Figure 1: System/Product Life Cycle (Harold Kerzner, 2009)

The success or failure of a project shall very much depending on how best the project
manager can produce the deliverables or the predetermined targets and objectives
within the stipulated time, budgets cost and acceptable performance. Therefore a
project manager must do a good planning to determine how much time shall be
required and what is the estimated cost will be needed in order to complete a specific
project at a desirable performance, sustainability and safety by the project owner.

In order to do that a project manager despite to do a good planning, they also must
control and organize well all the company resources e.g. money, manpower,
equipment, facilities, materials and information/technology during the
“execution of the project” and “the project close out” phases to avoid over
budget, project delay and sub standard performance which might caused the projects
failure. (Harold Kerzner, 2009. Pg. 8)

There are several factors that are important in ensuring a successful completion of a
project. Those factors are :

i. A good field construction representative must be present to represent the


interest of the owner and designer

ii. Availability of good and detailed construction schedule that is developed by


the contractor of the project

iii. A good project control system must be developed to monitor, measure and
evaluate the cost, schedule, labor-hours and quality of works.

iv. Good communication among all parties in a project


(Oberlender, 1993)

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Planning tools such as Critical path method (CPM), Project Evaluation & Review
Technique (PERT) method and etc are some of the method that can help a project
manager to control time consuming and track thoroughly the execution and works
progress. With the planning tools, the project cost shall also be translated in terms of
project resources such as workers man-hours, materials, equipment, plants and
machines. Therefore the cost and the quality of works can also be monitored
planned versus actual.

Upon the completion of a project, the performance is one of the ultimate issues
despite of completion on time and within estimated cost.

Managing a project, a project manager must manage it within certain guidelines,


policies, procedures, rules and direction of his organization in order to produce
outputs/objectives that have been set. Thus the constraint on time, cost and
performance is to be achieved as the project objectives within a limited resources
given by the company. Yes, the success or failure of the projects is measured
whether it has been done within the specific time, cost and quality.

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Question 2

A project life cycle is a collection of generally sequential project phases whose


name and number are determined by the control needs of the organization or
organizations involved in the project. Discuss the characteristic of the project
life cycle in this context and indicate the phases that need to be taken to
ensure it is used in the realization of a client’s aspirations. [20 marks]

Answer 2

Every program, project, or product has certain phases of development known as life-
cycle phases. A clear understanding of these phases permits managers and
excutives to better control resources to achieve goals.

During the past few years, there has been at least partial agreement about the life
cycle phases of a product. They include;

• Research and development


• Market introduction
• Growth
• Maturity
• Deterioration
• Death
(Harold Kerzner, 2009)

The theorical definations of the Life cycles phases of a system can also be applied to
a project and the phases are as follows;

• Conceptual
• Planning
• Testing
• Implementation
• Closure

Description of Project Life Cycle according to Harold Kerzner, 2009 can be described
as follows;

i) Conceptual phase is include the preliminary evaluation of an idea. It should


include a preliminary analysis of risk and the resulting impact on the time, cost
and performance requirements, togather with the potential impact on company
resources.

ii) Planning phase is mainly a refinement of the element in the Initiate/start up


phase and requires a firm identification of the resources required and the
estalishment of realistic time, cost and performance parameters. The initial
preparation of necessary documentations to support the system are also

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

included. If the project was tandered in a competitive bidding the conceptual


phase would include the decision of whether to bid, and the planning phase
would include the development of the total bid package (i.e. time, schedule, cost
and performance).

iii) Testing phase is predominently a testing and final standardisation effort so that
operation can be started. At this stage almost all documentations must be
completed.

iv) Implementation phase is where the project’s product or services were


intergrates into the existing organisation. Idf the project was developed for
establishment of a marketable product, then this phase could include the
product life-cycle phases of market introduction, growth, maturity and a portion
of deterioration.

v) Closure phase is includes the reallocation of resources. For a company that


sells product to the people, as one product begins detrioration and death of it
life cycle a new products or projects must be initiated. Company within this
environment shall keep intiating new projects to survive. The closure phase
evaluates the total system, also serves as input to the conceptual phases for the
new project and system and also has an impact on other on going projects
which is to identifying priorities.

Figure 2: System/Product Life Cycle (Harold Kerzner, 2009)

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

In Figure 2, the complete phases of a project and those products are compared.

Different authors might give 4, 5 or six phases of Project Life Cycle. Some try to
elaborate more variables for examples conceptual is the same as Initiation and
testing (depend in which industry you are in, electronics or manufacturing, they add
in testing before implementation, and in the construction of buildings, normally
people shall include testing & commissioning under execution phase).

So it does not matter how many variables to be taken, but fundamentally in LIFE
CYCLE always covers INITIATION (some call it as conceptual or feasibility),
PLANNING (some call it DESIGN/ENGINEERING STAGE), EXECUTION &
CONTROL (some include TESTING in this phase or separately) and CLOSE OUT
(some call TESTING STAGE & HAND OVER).

Below is one example of “Project Life Cycle” process in gas pipeline construction
projects. The phases used smilar with other construction industries namely
Initiate/Start up, Planning, Excecution and Close out.

Figure 3: “Project Life Cycle” Flow Chart in Gas Pipeline Installation/Construction


Works.

A sample of a complete “Project Life Cycle” in gas pipeline project in respective


phases are tabulated in Table 1.

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Table 1: A sample of Project Life Cycle Phases in Gas Pipeline Project.

No Project Life Activities Involves Under Each PLC Phases


Cycle Phases
1 Initiate • Tender stage.
• Time/Costing/Performance.
• % of Profit and risk analysis.
• Documentations for tender submission
• Submission of Tender.
• Tender clarifications meeting
• Received Letter of award and Acceptance of LOA.
• Signings of contract document.
2 Planning • Identify method of construction to be used.
• Preparing of work schedule for all required works
• Carry out land survey works.
• Carry out utilities mapping using radio detection and GPR.
• Contacting utility companies via letter about the proposed
new gas pipeline and conducting site visits with the all
them, to identify where their utilities were laid before.
• Carry out the engineering/design works.
• Producing the construction plan.
• Submission for local authority works permit, site visit and to
follow up.
• Submission files for “Approval to Install” for the proposed
gas pipeline to Energy of Commission and to follow up.
• Procurements of all required raw materials.
• Nominates sub-contractors.
• Buy/rental equipment, machineries, manpower and other
resources.
3 Execution/Control • Received the delivery of pipes and raw material on site or
at project store/yard.
• Pipes stringing.
• Pipes welding.
• Installation of pipeline using HDD and the open cut
method.
• Tie-ins/connection of all sections of the laid pipeline.
• NDT (X-Ray) and Third party review of NDT film.
• Pipeline hydro test.
• Dewatering/Swabbing/Drying.
• Valves installation
• Nitrogen packing
• Approval to Operate (ATO) from Energy Commission,
• Commissioning the entire pipeline.
4 Close up • Punch list
• Handover documents and drawings
• Submit maintenance manual
• Apply Initial Acceptance from Client
• Defect liability period (12 months)
• Apply Final Acceptance Certificate from client.

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

By tabulating all the works involves in a project, the contractors shall be able to see
what are the critical paths and the area of concerns that need to be tackled in order
to realise the project to client’s expectations which are to complete the project within
the scheduled time, extimated budged, at acceptable quality, safety and
sustainability.

Figure 4: Representative Project Life Cycle, per Morris (PMBOK Guide)

Figure 4, shows the four phases of project life cycle as explain by Morris. The graph
also ilustrate each phases with respect to project completion percentage.

The informations and lessons learn in completing a project life cycle shall later be
applied to the new projects in a better understanding, improve controlling system, can
be closed and hand over to the client smoothly and neat.

Organisations that practice Project life cycle, the following additional andvantages
can also be benifited and the are summerised as below;

i) Clearer delineation of works to be accomplished in each phases are now


possibe.
ii) Pricing and estimating for the next projects may now be a lot easier. The
lesson learn can become a “base marking” for the budgeting and costing for
future smillar project.
iii) Company can makes profit and incremental of funding is possible.

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Question 3

The word “Planning” is often used as a yardstick of the difference between the
good project manager and the poor project manager. Discuss how project
managers manage planning of the project. [20 marks]

Answer 3

Managing a project planning is a discipline for stating how a project will be


accomplished timely, within budget at acceptable performance, safety and
sustainability.

Often projects fail because they are poorly planned, or even completely unplanned.
Therefore the failure will come as a complete surprise rather than being preceded by
periods of worry and depression. Without proper planning, a poor project manager,
might drive the projects to start off “behind the eight ball”. The consequences of poor
planning include;

i. Project definition without defined requirements


ii. Wild enthusiasm
iii. Chaos
iv. Search for guilty
v. Punishment of the innocent
vi. Promotion of nonparticipants
vii. Disillusionment
viii. Project failure (Harold Kerzner, 2009)

In the other hand a good project manager with a sound knowledge in integrating all
the management process and the elements of the process shall be able to lead the
projects to a success. A good project manager should master himself on all the nine
knowledge and drive it throughout the project life cycle. The nine knowledge areas
are as follows;

a. Project Integration Management


b. Project Scope Management
c. Project Time Management
d. Project Cost Management
e. Project Quality Management
f. Project Human Resource Management
g. Project Communications Management
h. Project Risk Management
i. Project Procurement Management (PMBOK)

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Four basic reasons for project planning are as follows;

 To eliminate or reduce uncertainty.


 To improve efficiency of the operation.
 To obtain a better understanding of the objectives.
 To provide a basis for monitoring and controlling work.

The starting point for a good project plan is a proper understanding of the
requirement and knows what exactly is the project supposes to achieve?

Planning is essential to the successful execution of a project it involves thinking hard


about the project, what it is to achieve and how the team will go about it.

The main purpose of project plans is to guide project execution. Plans must be
realistic and useful. A fair amount of time and effort must go into the planning process
and the people knowledgeable in doing the work need to plan the work. Planning
assumes two items:

(1)That there is sufficient information available for planning purposes and;


(2)That the people planning have sufficient experience to use the information wisely.

A good project manager must plans realistically with regard to timely performance
and reasonable cost. Meeting these criteria ensures that the actual project will be
performed successfully within the scheduled time and financial constraints. Planning
must be done logically and thoroughly if we are to have any chance for the project to
succeed. In planning philosophy, we must understand two key points:

With the nine knowledge areas and the basics reason for project planning, a good
project manager shall be able to plan properly the project planning processes consist
of the following activities: -

• Statement of Work (SOW).


• Work Breakdown Structure (WBS).
• Project Logic Evaluation (PLE).
• Separate time, cost and quality planning.
• Time planning schedule.
• Risk management planning.
• Resource planning
• Communication planning

Derive a statement of work (SOW):

One of the most important of project objectives is when the needs of the stakeholders
are met. This is a narrative description of the end results that to be accomplished

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

under the contract. Stakeholder is anybody directly or indirectly impacted by the


project.

Therefore, it is important to identify who are the stakeholders at the very beginning of
the project. Identifying the stakeholders of a project it is not always easy, particularly
those who are impacted indirectly. Some examples of stakeholders are as follows;

• The project sponsor/owner e.g. the shopping mall owner.


• The customer who receives the deliverables e.g. those retailers who rent the
outlet in the mall.
• The users of the project output e.g. the customers who shop at the mall.
• The project manager and project team.

When the stakeholders are identified, the next step is to find out their requirements
and to fulfil them. Conducting a stakeholder interviews is one of the best way to
identify their requirement/need. Often stakeholders will talk about the need that aren't
relevant and don't really required. This information can be recorded and noted as a
low priority. That is why the interviews to draw out the true needs that create real
benefits normally took a long time.

Once all the interviews were conducted and the comprehensive priority lists are
produced, a project manager need to set the goals that can be easily measured. A
technique for doing this is to review them against the SMART principle, i.e.; specific,
measurable, agreed upon, realistic and time based. This shall ease the project
manager in identify whether a goal has been achieved or not.

Once a clear set of goals have been established, they should be included in the
project plan together with the needs and expectations of the stakeholders.

Misinterpretation of SOW can and will occur no matter how careful the team had
tried. Common causes of misinterpretation are as follows;

• Mixing tasks, specifications, approvals


• Using imprecise language such as nearly, approximately and etc.
• No pattern, structure and chronological order
• Wide variation is size and description
• Failing to get third party review (Harold Kerzner, 2009)

The statement of works for good project managers is their intention to meet the
project’s objectives and provide all project deliverables within the constraints
of “Time, Cost and Quality”.

When the most difficult part of the planning process is completed, we should move on
and plan for the project deliverables.
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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Work Breakdown Structure (WBS):

The successful accomplishment of both contract and corporate objectives that have
been derives in SOW, requires a plan that defines all the efforts to be expended,
assigns responsibility to a specially identified organisational element, and establishes
schedules and budgets for accomplishment of the works. The detailed planning is
also established in accordance with company budgeting policy before contractual
efforts are initiated.

Traditionally, activity planning for the schedule is independent and separate from the
cost. The accuracy and usefulness of the breakdown and relationship is dependent
upon intimate knowledge of the construction elements, judgment and skills of the
planner.

WBS provides a tool for planning the activities, including estimates of resources,
activity durations and costs. The basic aim of a WBS is to split the project into
tangible deliverable items. The more work packages we split the project into, the
more interfacing with other people, departments, functions or even companies there
may be. However the less work packages there are, the harder it will be to budget
and estimate resource requirements. It is advisable that a work package should not
be more than 8 hours of work (or a day’s work).

Otherwise, it will be difficult to assign resources, monitor progress and carry out
performance measurement. In most construction programme, the activities define are
mostly too large to be classified as a work package and at such it is difficult to assign
specific quantifiable resources, difficult to estimates duration, and most of all difficult
to provide a logic – predecessor/ or successor in a network diagram.

In planning a project a project manager must structure the work into small elements
that are:

• Manageable so that specific authority and specific responsibility can be


assigned
• Independent element which have very minimum interfacing with
• Integra table so that total package can be seen
• Measureable in terms of progress (Harold Kerzner, 2009)

The WBS is structured in accordance with the way the work will be performed and
reflects the way in which project costs and data will be summarised and eventually
reported. It also must address how we will plan, organize, and control the major work
activities to meet our goals of finishing the work on time, within budget and as
specified. One important point before planning is that we do not want to do more than

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

necessary to satisfy customer needs, since that is wasting money. On the other
hand, we should not do less than necessary, or we may lose the customer.

WBS also should consider other areas that required structured data such as
scheduling, configuration, management, contract funding and technical performance
parameters. WBS is important because it’s provides a common framework that
covers;

 The total program can be described as a summation of subdivided elements.


 Planning can be performed.
 Cost and budgets can be established.
 Time, cost and performance cab be tracked.
 Objectives can be linked to company resources in a logical manner.
 Schedules and status-reporting procedures can be established.
 Network construction and control planning can be initiated.
 The responsibility assignments for each element can be established.

(Harold Kerzner, 2009)

The WBS shows and determines the smaller elements and activities thus providing
the greater probability that every major and minor activity will be accounted for. Most
common WBS is the six-level indented structure shown below:

Managerial levels -> Level 1 -> Total program


-> Level 2 -> Project
-> Level 3 -> Task

Technical levels -> Level 4 -> Subtask


-> Level 5 -> Work package
-> Level 6 -> Level of effort

After the works have been split into smaller elements, commonly CPM (Critical Path
Method) is used to allow the project manager to measure project progress in order to
achieved project goals.

Project Logic Evaluation (PLE):

This is the process to predict success of the project, thus allow the project manager
to look into alternative if there is changes occurred.

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Figure 5: Sample of PLE, DR. DAVID GOH TEE TECK (2010)

How to understand a project’s logic

We propose three steps to elicit the ‘full’ (explicit and implicit) project logic:

1. Knowing the project logic stated in the logical framework and other project
documents;
2. Identifying the specific activities carried out during the project cycle, who
decided about changes to the original design, why and under which
circumstances; and
3. Investigating the practices that evolved over time, as result of the interaction of
individuals

Mirtha R. Muñiz Castillo and Des Gasper (May 2009)

Practices and relations, not only milestone and planned activities, should be the
focus of any project assessment because a change process is not caused merely by
a design.

Change is pursued, lived and felt by individuals who negotiate goals, experience
conflicts or reach agreements while seeking to exercise their autonomy in their
specific circumstances.

A project’s full de facto logic is jointly constructed – by project participants, project


staff, formulators and other stakeholders. As such, the project logic should be
discovered and reviewed through several channels during the project cycle so that
changes in interpersonal relations and entitlements are traced over time. Hence,
opportunities as well as challenges for project operational effectiveness, such as
punctual interferences or high administrative workload (cf., Hirschman, 1967), could
be identified and opportunely addressed.
Separate time, cost and quality planning

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Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

WBS separate all activities inclusive time, cost and quality and there are as follows;

i) Scheduling and costing - After developing the activities, the next step is to
estimate the duration requires and the activities sequence. From thereon, the
network diagram is finally developed, which form the construction master
programmes.

The contract’s department, which is home for the project quantity surveyors and
estimators normally, carries out the cost estimate and budgets. Once the project
estimate and budget is established by the QS, the project manager is given a
copy for his review and comment. If agreeable, the budget will then be sent for
the project sponsor’s approval.

ii) Quality planning – Normally projects do require the contractor to submit a


Quality Assurance Plan (QAP) for the client’s approval and agreement. The
quality plan has to meet the minimum quality specified in the contract
specification and drawings. Due to the government and CIDB’s intensive
promotion of the ISO 9000 quality system, it has become mandatory for projects
to have a competent quality officer to manage and be accountable for the
quality control processes in a project.

Planning and controlling standards for quality are fundamental in both the
design and construction phases of a project. Quality assurance involves the
economic studies to select the types of materials and methods to be included in
design and controlling processes, making certain that the works are carried out
in accordance with the contract specification and drawings.
Methodology ranges from computerized documentation, technical design, to
sampling and testing products and structural dimensioning in the field. A proper
and well-documented quality assurance plan should be submitted to the client’s
consultant for approval. A good quality assurance plan will assure the client of
your ability and provide confidence to the level of control and inspection
conducted by the client’s representative. Quality assurance is always
considered as the in-plant representative of the customer. Quality assurance is
also the agent for improvement of the processes and product.

Maverick SM (May 02, 2004)

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Time planning schedule

This is so called milestone schedules contain such information as summarised as


below:

• Project start date


• Project end date
• Other time planning schedule
• Deliverables or reports

Other major milestone such as review authority’s matter, survey, design,


procurement, testing and so on should also be identified and schedule.

The planning schedule shall allow the project manager to manage all the works, track
the planned and actual progress, taking contingencies measures to meet the date
line and etc. Scheduling tools namely CPM, PERT, Gant chart and others are usually
used.

Risk Management Planning

For risk to be managed it must first be identified and recognized and then the
likelihood of its occurrence and its consequences can then be assessed and steps
taken to minimize its impact by deflecting to another party (e.g. buy insurance, sub-
contracting), mitigating its impact by reducing the probability of occurrence, or
accepting the consequences should the risk occur.

Risk management plan identifies as many risk events as possible, minimizes their
impact, manages responses, and provides contingency funds to cover risk events
that actually materialized. Risk management is a preventive process designed to
ensure that surprises are reduced and that negative consequences associated with
undesirable events are minimized. The challenge of project risk management is in
identifying the risk retained and recognizing the fact that a risk, which is transferred
under some circumstances, may be retained under others. Basically, transferring risk
does not reduce risk, but places the risk at the foot of another party. In some cases,
transfer can significantly increase risk because the party to whom it is being
transferred may not be financially capable of supporting the risk.

The Contract Form is the first reference by which risk will be assessed, thereby
apportioning risk in a way, which is considered acceptable in the industry. In the
event of dispute, it will be the first source of reference for an analysis of the
respective rights, duties and liabilities of the parties.

A building contract is a trade-off between the contractor’s price for undertaking the
work and his willingness to accept a degree of risk. If the contractor is to carry certain
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specific risk, he should expect to see them reflected in his contract by an increase in
the contract price. It must be recognized that standard forms of contract do have
provisions for excusing the contractor from many risks affecting the project. It is often
the misconception among developers that irrespective of the form of contract chosen,
once the lowest tender has been accepted, the contract signed between the
contractor and developer, all the risk of failure will be transferred to the contractor.

At such, many developers tends to indulge in pernicious editing of the standard


forms of contract to “redress’ the balance of risk, ultimately, it will result in an
interpretation by the courts by virtue of implied terms that neither party had intended.
In principle, a standard form of contract is to serve the industry to which it relates and
it must produce an apportionment of risk, which is broadly regarded as efficient within
that industry, or at least, to the extent that it is not, the inequalities should be capable
of being identified and financially evaluated. Exaggerated expectations of the
standard forms of contract and the failure to appreciate the strength of a claim (due to
difference of appreciations of the facts of law and the illusion of certainty) are all
common sources of disputes.

Maverick SM (May 02, 2004)

Resource planning

During staff acquisition phase, existing staffs are assigned to the projects after the
project site organizational chart is submitted to project sponsor for approval. In the
event of shortage, the management would outsource by advertisement or the project
manager may recommend others known to him for employment particularly previous
colleagues in the same industry or his friends with relevant education qualification
and experiences.

In the other hand, acquisition for materials and equipments are normally handled by
the purchasing department and the machinery department. The project manager
shall have to make formal request for them. Sometimes, the available resource may
be insufficient or untimely and the project manager has to bargain and negotiate with
the key functional managers.

Communication planning

Project communication management plan is a document, which provides a detailed


method of collecting and filing documents, a distribution structure and the method of
accessing and updating information for the particular project.

I/C No: 670703-01-6045 Part A: Page 19 of 20


Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317

Successful project execution is almost impossible unless there is an effective


communication system. If communication breaks down, it offers a potential barrier to
information flow. Typically a project communications fall into the following categories

 Project correspondence
 Audiovisual presentation
 Project reporting, meetings,
 Training
 Listening.

Performance reporting is part of the project communication system.

Performance reporting – that include status reporting, progress reporting and


forecasting are mandatory for every project which is stipulated in the conditions of
contract. Project managers would be required to submit templates of the progress
report format to the client for acceptance.

Upon agreement of the sample format, the project manager would be required to
submit biweekly or monthly reports, which would also include progress photographs
of work-in-progress. Producing a concise and well-presented biweekly/monthly
progress report is the best way for project managers to set the standard for reports
on the project. It is also a good instrument to check on how the project is going. The
main purpose of the report is to inform the key stakeholders as to how the work is
progressing and to keep a running history of vital project activities.

Project forecasting predicts future project status and progress based on past
information and trends. Earned Value analysis (EVA) can be used to estimate the
budget at completion based on how the project is progressing.

In the other hand project meetings are integral progress review elements of a project.
Meetings help determine delays (that have occurred) and achievements according to
the baseline plans. It is also important to get the entire project team members
together at scheduled times to talk and listen about the project. Meetings can help
team members to know where the individual parts fit into the collective aim of the
group, and where individual success can contribute to team success.

Conclusion

A good project manager should be able to plan and manage all planning activities as
discussed above.

I/C No: 670703-01-6045 Part A: Page 20 of 20

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