PROPOSED CONSTRUCTION OF
MIXED-USED COMPLEX
Nikol O. Telen
Final Assessment report submitted in partial fulfilment of the requirements
for MEPFC230
on July 21, 2024
Prof. Marie Fe Y. Lacsado
University of Mindanao
Davao City
Contents
Table of Contents
i
Executive Summary
1
Introduction
3
Project Overview
4
Project Management Methodologies and Principles
6
Project Planning
7
Risk Management
9
Communication Plan
10
Quality Management
11
Project Monitoring and Control
12
Project Evaluation
13
Conclusion and Recommendations
14
i
Executive Summary
The construction project aims to develop a service facility that meets the needs of its
main users and aligns with stakeholder expectations. Essential inputs from users, contractors, suppliers, and political stakeholders are integral for successful implementation.
Active involvement and communication with project partners and local government ensure
alignment and timely updates.
The project team, led by a project manager, will be divided into specialized teams: planning and design, construction, and procurement. Each team has a leader reporting directly to the project manager. The planning and design team will create detailed project
plans and specifications, the construction team will coordinate on-site activities, and the
procurement team will ensure timely delivery of high-quality materials and equipment.
The project will utilize the Waterfall methodology due to its structured, sequential approach, suitable for projects with clear scopes and minimal changes. Key project management principles include clearly defining the project scope, managing scope changes
through a formal process, and adhering to constraints of time, cost, and quality to meet
project objectives.
A comprehensive work plan, including a detailed work breakdown structure (WBS), will
guide the project. The design of Building B will be outsourced due to specialized mechanical requirements. The project manager will oversee the selection of team members
and allocation of tasks based on the WBS.
Effective resource allocation involves managing personnel, budget, and equipment. A
third-party design firm will handle Building B’s design, while the in-house team will
manage overall construction. Budget considerations include engineering fees, permits,
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personnel wages, subcontractor payments, equipment rentals, quality inspections, and
safety measures.
Potential risks such as scope creep, labor shortages, and security issues will be proactively
managed. Implementing a formal change control process, offering competitive wages,
enhancing site security, and conducting regular risk assessments are key strategies for
mitigating these risks.
An effective communication strategy includes regular meetings, high-speed internet connectivity, and mobile communication provisions. Weekly or bi-weekly meetings will track
progress and address issues, while urgent meetings will handle immediate concerns.
Quality standards are crucial for functionality, safety, and durability. Compliance with
regulatory standards, environmental guidelines, and occupational safety protocols will
be ensured. A comprehensive QA plan, regular inspections, and training sessions will
maintain high-quality standards throughout the project.
Progress will be monitored using project management software and regular meetings.
Control mechanisms include formalizing scope changes, using Gantt charts for schedule
updates, and tracking KPIs for schedule, cost, and quality performance. Regular updates
to stakeholders will ensure alignment and address any emerging issues.
Project performance will be assessed through KPIs such as Schedule Performance Index
(SPI) and Cost Performance Index (CPI). Quality assessments will compare audit results
with industry standards. Feedback from clients and end users will also be gathered to
evaluate the project’s success in meeting its objectives and delivering stakeholder satisfaction.
2
Introduction
Background
Company A plans to centralize their operations in the SOCSKSARGEN region for more
efficient operations. To achieve this, the employees, materials and equipment will be
moved from different satellite offices in the region to General Santos City. This requires
the company to develop and construct a facility that will accomodate the employees, as
well as the vehicles, equipment and materials.
Objective
Company A aims to consolidate the service facility of each of its five operating districts
into a single location. Thus, there is a need to design and build a service facility that will
serve the five operating districts.
Scope
This report will address the activities and tasks that will be handled by the project
management team. It includes the description of the project, the project management
methodologies, and essential strategies to ensure that the project will achieve its objectives
and provide the owner with a quality product.
3
Project Overview
Project Description
The project will consist of an administrative building (Building A) for management and
operation employees. The building will also provide accomodation for the stay-in employees. Building B is an industrial building for servicing vehicles and equipment. A warehouse
building (Building C) is proposed as a future addition but is not initially included in the
project scope due to budget constraints. The facility is located on 40 hectares of land in
an industrial zone in General Santos City. Site work consists of grading, drainage, and
all on-site utilities that are required for operation of the service facility, such as power,
water, and telecom lines.
The scope of work includes engineering, procurement, and construction for the site work
and two buildings. A soil investigation, legal boundary survey, and contour map is provided by the owner. Special procurement includes the overhead crane for Building B and
the telecom system for Building A. The maintenance building has a 12-m clear ceiling
height, with a 20-ton overhead crane. A small office area and a shop with machining
equipment is to be located in the maintenance building. A wash-down area is to be
provided for washing and servicing of truck vehicles.
The employee’s office building is a two-story structure that will be used by 70 employees
who will be involved in clerical work. A conference room, training facilities, computer
workstations, and small cafeteria are to be included in the building. A dormitory for
stay-in employees with the necessary facilities such as toilet and bath, pantry, and lounge
will also be provided in the building. All sealed surface paving and parking areas are to
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be constructed with portland cement concrete.
Stakeholders
The company’s Board is the primary stakeholder in this project due to it being the main
decision maker in the implementation of the project. Employees who will be relocated to
the new facility, although of minimal influence, must alse be considered since they are the
main users of the facility. Their inputs on what is needed in a facility that satisfies the
intended usage is essential. Project partners such as contractors and suppliers, play a role
and contribute to the implementation of the project. The project can benefit from active
partner involvement due to improved communication. The political aspect of the project
should also be taken into consideration. Land developments are closely watched and are
carefully deliberated in the city council so the project manager must stay connected with
and informing the project sponsor regularly.
Project Team
The project team will consist of the project manager who will delegate the different
aspects of the project to different teams, such as planning and design, construction, and
procurement. Each team will have its team leader who will report directly to the project
manager. The planning and design section will be tasked to provide the necessary plans
and specifications for the project. The construction team will facilitate the construction
by coordinating with contractors, while the procurement team supports by providing their
materials and equipment on time and at the best quality.
5
Project Management Methodologies and Principles
Methodologies
For this project, the Waterfall methodology is well-suited due to the project’s structured
and linear approach, and the scope is clear with minimal changes. The linear and sequential nature of Waterfall ensures that each phase of the project is completed before moving
on to the next, reducing the likelihood of overlooking essential steps.
Principles
To ensure the project meets its objectives within the constraints of scope, time, cost,
and quality, project management principles must be applied. The scope must be clearly
defined in the early planning stage so stakeholders will come to agreement on the project
delvirables. During implementation, project scope changes must be monitored and managed through a formal change control process. Changes in scope may affect the sequencing
and duration of activities, thus the overall project completion time. This may also entail
added costs due to increase resource use or implementation of a more expensive methodology. By adhering to these core project management principles, the construction project
will have a structured approach that ensures all aspects of the project are managed effectively. This will help in delivering the project on time, within budget, and to the desired
quality standards, while also addressing risks and stakeholder expectations comprehensively.
6
Project Planning
Project Plan
The project manager will develop a comprehensive work plan to guide all aspects of the
project. The first step in the process is a detailed review of the project data: the owner’s
study that developed the statement of work, budget, and schedule for the project.
After the project manager’s initial review, he or she develops a WBS in sufficient detail
to identify major areas of work to be performed. The purpose of this initial development
of the WBS is to define the required disciplines for selection of project team members
A WBS for the project, which indicates the tasks to be performed, the grouping of the
tasks, and the person responsible for each part of the project will be prepared. From the
WBS, each project team member will development of a work package for the work that
he or she is to perform.
For this project, the design work for Building B is to be assigned to an outside design
organization because the building requires mechanical expertise that is not available in
the project manager’s organization and the time constraints that would be placed on
in-house personnel to accomplish the work.
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Timeline
The Gantt chart for the project[1] is shown below
Resource Allocation
Allocating resources involves careful planning and management of personnel, budget, and
equipment to ensure that each phase of the project is on track to its objectives. The
project manager, being the overseer of the entire project, coordinates between different
teams and stakeholders. The project will involve a third-party design firm to prepare the
design and plan of Building B. The overall construction of the facility will be contracted
to third-party and managed by the in-house construction team. Coordination with the
suppliers will be conducted by procurement team in support to the construction team.
The design of Building B will be outsourced due to specialized equipment. Thus, budget
will be allocated for engineering and design fees. Costs for obtaining necessary permits
and approvals from local authorities is also considered. During construction, personnel
wages, payments for subcon services and suppliers, and equipment rentals are included
in the budget. Budget allocation for regular quality inspections and safety audits, and
personal protective equipment (PPE) and other safety measures are essential for the
efficient operation.
By carefully planning and managing the allocation of personnel, budget, and equipment,
the construction project can be executed efficiently, ensuring that it meets all project
objectives and constraints.
8
Risk Management
Identifying potential risks is crucial for proactive management and mitigation to ensure the
construction project stays on track. Scope creep or uncontrolled changes or continuous
increase in project scope can lead to project delays, increased costs, and compromised
quality. To mitigate this, a formal change control process to evaluate and approve changes
must be put in place. Regular communication with stakeholders to ensure the project
stays in scope or changes are minimal.
The location of the project is highly progressive as described by several construction
projects in the area. Risk of labor shortages must be considered since skilled labor will be
unavailable due to high demand. Offering competitive wages and good working conditions
to attract and retain workersm, and training and development of existing staff will be
effective.
Being located in the outskirt of the city entails security risks such as theft, vandalism,
and other conflicts, Site security measures such as fencing, lighting, and surveillance may
be implemented to mitigate these risks. Hiring security personnel to monitor the site and
secure valuable equipment and materials is a viable option.
By identifying these potential risks and implementing proactive mitigation strategies, the
project management team can better navigate uncertainties and ensure the successful
completion of the construction project. Regular risk assessments and updates to the risk
management plan will also help in addressing new risks as they arise.
9
Communication Plan
An effective communication strategy is essential for the successful management of a construction project, ensuring that all stakeholders are informed, engaged, and aligned to the
project objectives. Stakeholders must be informed about project progress , changes, and
issues through regular meeting. Weekly or bi-weekly meetings to review progress, discuss
issues, and plan upcoming activities. To address urgent issues or decisions that cannot
wait for regular meetings, urgent meetings must be facilitated. To ensure all concerned
team members are able to attend, communication channels must be properly established.
High-speed internet connectivity is essential for this purpose. Mobile phones and call
credits must be provided for employees involved in decision-making for quick resolution
on urgent matters that require immediate attention.
10
Quality Management
Establishing clear quality standards is critical to ensuring the construction project meets
its intended outcomes in terms of functionality, safety, durability. Regulatory standards
such as the Building, and Structural codes ensure structural integrity of the building. Environmental compliance is required to minimize the environmental impact of the project.
Materials must be certified by a competent regulating body to ensure they meet specified
performance criteria.
To ensure safety in the construction site and workplace, occupational safety standards
and protocol must be followed and in place. A safety program must be prepared by the
safety officer to be implemented in the workplace. The Fire Code must also be followed by
adhering to fire exit, and safety device requirements. The buildings must have sprinkler
systems, fire extinguishers in appropriate locations, and proper fire exit ladders.
A comprehensive QA plan that outlines processes, responsibilities, and procedures to
ensure project quality must be developed. Project personnel should be informed about
quality standards and best practices by conducting seminars and training.To ensure compliance with standards and specifications, regular inspections and tests at various stages of
construction will be conducted. Detailed records of inspections, tests, and any corrective
actions taken must be maintained.
11
Project Monitoring and Control
Effective progress monitoring involves regular assessment of various project aspects, including scope, time, cost, quality, risks, and stakeholder engagement. Monitoring through
a project management software, such as Microsoft Project, helps to centralize all project
activities, schedules, documents, and communication and ensure everyone are on the same
page. Daily toolbox meetings for the project team to discuss what was accomplished the
previous day, what will be done today, and any obstacles encountered must be done specially during construction areas. Discussion on the past week’s progress, upcoming tasks,
and potential risks as well as reviews of status reports, update schedules, and addressing
any delays or issues can be done in weekly meetings. Updates to stakeholders, including
project sponsors and owner may be done on a monthly basis to review progress, discuss
any changes, and gather feedback.
To ensure the project stays on track, a set control mechanisms will be implemented.
Changes in scope should be formalize through a control process. A board consisting
of key stakeholders and project leaders to evaluate and approve significant changes will
be established for this purpose. For schedule updates, Microsoft Project will be used
alongside a Gantt chart to visualize the project timeline and identify any delays. Project
performance will also be measured using KPIs in schedule, cost, and quality. Regular monitoring, proactive risk management, and effective communication are key to maintaining
control and achieving project success.
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Project Evaluation
The criteria for assessing project performance not only involves the completion of deliverables, but also how well the project met its objectives, adhered to its constraints,
and stakeholders satisfactor. Key Performance Indicators (KPIs) will be established to
evaluate performance. A Schedule Performance Index (SPI) will be used to measure time
efficiency. An SPI of 1 or higher indicates the project stayed on schedule. To evaluate
cost efficiency, the Cost Performance Index (CPI) will be used. A CPI of 1 or higher
indicates the project stayed within budget. For quality assessment, results from quality
audits and inspections will be compared with industry standards and specifications. Aside
from this performacnce indices, feedback from clients and end users regarding the quality
and functionality of the facility are substantial.
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Conclusion and Recommendations
Future projects can significantly benefit from enhanced project planning and scheduling. Developing a detailed Work Breakdown Structure (WBS) and incorporating realistic
time estimates with buffer periods for potential delays can improve accuracy. Utilizing
advanced project management software and regularly updating the critical path will help
proactively address delays. Additionally, accurate cost estimation using historical data
and industry benchmarks, coupled with sufficient contingency funds and regular financial
audits, can ensure budget adherence. Investing in sophisticated cost tracking tools for
real-time updates on project spending is also crucial.
Quality management should focus on strict adherence to standards, continuous training
for the project team, and thorough quality assurance checks at each phase. Regular inspections, third-party audits, and a robust defect tracking system will help maintain highquality standards. Effective risk management involves comprehensive risk assessments
during the planning phase, conducting risk workshops with stakeholders, and developing
proactive risk mitigation plans. Regularly updating these plans and having well-defined
contingency strategies for high-impact risks are essential practices.
Strengthening stakeholder management through regular communication, active engagement in decision-making , and implementing feedback mechanisms will help align expectations and improve satisfaction. Ensuring environmental and safety compliance involves comprehensive environmental impact assessments, setting sustainability goals, and
conducting regular safety training and audits. Adopting new technologies like Building
Information Modeling (BIM)
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References
[1] RM Lewis G.D. Oberlender G.R. Spencer. Project Management for Engineering and
Construction: A Life-Cycle Approach. 4th ed. USA: McGraw Hill, 2022.
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