PROJECT INITIATION 01 Design and Construction Process 02 Contractual Arrangements 03 Phases of a Project 04 SWOT Analysis 01 DESIGN AND CONSTRUCTION PROCESS Design and Construction Projects progress through three phases: Project Definition Project Design Project Construction 02 CONTRACTUAL ARRANGEMENTS 03 PHASES OF A PROJECT PROJECT CONSTRUCTION PHASES 04 SWOT ANALYSIS WHAT SWOT stands for strengths, weaknesses, opportunities, and threats. WHY Conducting a SWOT analysis can help you improve your project planning process, reduce project risk, as well as to increase the likelihood of your project being successful. SWOT Analysis: The Four Focus Areas 01 STRENGTHS These refer to internal factors that will set your project up to success. 02 WEAKNESSES These are internal factors that, from your experience, will make it difficult for your project to succeed. OPPORTUNITIES 03 THREATS 04 Opportunities represent factors that are outside of your control (as opposed to strengths). These are external factors that, if they were to take place, they could significantly hurt your project. SWOT for Construction Projects S W O T STRENGTHS Does is meet client priorities? Is it tested or approved? Does it meet best practice guidelines? What is the client’s previous experience/knowledge? Is there a synergy with client business needs? Is it an effective use of resources, assets, and team? WEAKNESSES Is it innovative or untested? Does the client have doubts or the project has vulnerabilities? What are the time, cost, and quality issues? Are the systems/processes reliable? OPPORTUNITIES Is it acceptable to stakeholders? What is the impact of market changes? Does the strategy cover the life cycle of the project? Is there a wide public support? THREATS What is the potential for disputes? Is there a lack of support by project team? Is there a competition? What is the likely impact of risk events? Are there any obstacles to success? TIP: SWOT analysis in project management is only effective if you gather the right information and use it to take appropriate action. SWOT ANALYSIS from the Contractor’s Point of View The project examined is a business situated in Belgrade, the capital of Serbia, referred to as “Azzaro.” It is situated parallel to Yuri Gagarin Street, so it continues a row of businesses with modern architecture that for the past several years has fronted this busy street. The architecture is modern by domestic standards and uses glass and Alucobond facade plate. (Alucobond is a lightweight composite material consisting of two prefinished 0.5-mm-thick aluminum cover sheets laminated to a core of polyethylene plastic. Alucobond panels also maintain an extremely flat surface due to the laminated construction of the material, thus reducing or eliminating oil canning.) The gross area of the building is 5,800m2. The building’s construction consists of an armored concrete shaft of raster walls (7.2×5.4) and two armored concrete cores, each with two lift shafts. The building is situated on an armored concrete ground plate. The mezzanine ceiling is an armored concrete plate 22cm thick on the floor and 24cm thick on the gallery; the plates above the ground floor are also 24cm thick, with an armored concrete girder 40cm thick. The total value of the investment is US$5 million. SWOT Analysis from the Contractor’s Point of View 1. 2. 3. 4. 5. 6. 7. 8. Resistance to New Methods of Working Favorable Contract Terms Inexperienced Workers Workforce Stimulation High Level of Groundwater Modern Technology Skillful Work Team Good Relationship with Material Suppliers 9. 10. 11. 12. 13. 14. 15. Repeated Changes in Allocation of Space Possibility of Injury at Work Advanced Project Management Reliable Investor Lack of Coordination The Possibility of Working on Future Projects Supervisory Board with an Interest in the Project STRENGTHS 7 4 14 8 2 WEAKNESSES 10 6 3 11 12 OPPORTUNITIES 9 5 THREATS 1 13 15 WORKSHOP 2: SWOT ANALYSIS READ AND UNDERSTAND THE GIVEN SITUATION. AFTERWHICH, PERFORM SWOT ANALYSIS USING THE GIVEN MATRIX AND INDICATE A CONCLUSION TO THE SITUATION. A commercial construction firm that reports to be a design-build general contractor actually operates more as a pure construction manager. They sell their services as being an agent for the owner. This firm will procure all design and construction services, originate the contractual agreements, charge a fee on all hard and soft costs, but have the second-tier firms execute their contracts with the project owner directly. This method of procurement is referred to as a pass-through contract. The CM does not sign or initial any of the contract documents, pay requests, change orders, requests for information (RFIs), submittals, etc. The CM explains to owners the attractiveness of this contracting arrangement as a means of saving additional tax and insurance markups. The CM does not have problems convincing the subcontracting and supplying firms of the advantage of contracting directly with an owner, as these firms are now one step closer to the owner, and subsequently the bank. Several of this CM’s projects have had problems with second-tier contractors (such as foundation settlement, lack of sufficient air conditioning, window leakage, roof leakage, or dead landscaping). In each instance, the CM has stepped back, not protecting the owner, and forces the owner to resolve problems with subcontractors directly. On other projects, there have been problems with the owner not paying the contractors or designers, and again the CM has stepped back, not protecting the subcontractors. The secondtier firms have had to pursue resolution, through liens or other means of collection, with the owner directly. The pass-through CM receives a guaranteed lump sum fee for their services and jobsite general conditions are cost-reimbursable.
