Construction Management as an Integral Part in Development - Case Study Example

? Project management in construction Lecturer 3rd April, This case study involves the provision of consultancy in project management. The consultant’s firm roles are to over see and manage building of a commercial building on behalf of the client. The firm is to act the role of the project manager during the course of this project and ensure all specifications by the client are met and also to ensure the project is a success. The firm also has the role of advising the client on the best procurement option for the project. The firm is also responsible for drawing up contracts bids. The company should also draws tender documents in relation to construction and development of this project. Part one 1.1 Consultancy Legal Documentation This part involves presenting all the legal documents necessary in project management. This will protect the project manager or the consultancy firm that is the playing the role of project management. The first document is a contract document between the company offering project management and the client. This is a show of evidence that these parties are in a contractual agreement to work together. They will protect the project manager or the firm when the client fails to meet the firm’s requirement in the course of the project. Another important document is the budget. This ensures that the project is within the set limits. This document empowers the project manager to know when to add funds or reduce them in any phase of the project. The budget provides the project manager with knowledge about every phase of the project. This helps the project manager to know the amount to be spent in a given phase of the project. It also notifies him or her, the room available for adjustments. The budget also helps the project manager to know the amount of time to spend in a given task so as to ensure the project completes before the given threshold (Ritz, 1994). Another important document to protect project management firm is the bid documents. The bid process should be competitive this is evidence that the firm advertised and carried out the bidding process in a competitive and a fair manner. This will protect and promote the company’s reputation towards the public and other stakeholders in the construction industry. This shows the client the company is of high integrity and is open in its dealings. This will protect the firm against any company or individual who challenges the bidding process of the project. Certificate of registration is another document that the consultancy firm can use to protect itself. The certification is a clear demonstration that the company is approved by the necessary departments to carry out activities such project management amongst other. This will avoid problems with local authorities. The certification also shows the company’s experience in handling such matters. The project manager should also be in possession of contract documents between the client and subcontractors. This will help the project manager to know the position to take in making crucial decisions that affect the project. It will also help him to advice the client in a situation when the sub contractors do not deliver the desired results as the contract agreements. They should also possess the insurance certificates. This is to ensure that the main contractor and other sub contractors insure their workers. This will help to solve cases of injury and medical bills. The project manager should ensure the client has insured the whole construction process to avoid delaying of the project (Kerzner, 2009). 1.2 Procurement options This part presents the methods of use during the construction of the project. The option depends on the dimension, nature and complication of the project. The first procurement option is the traditional or construct only. The method entails that both design and construction be procured separately to different companies. This is done as per the project specifications. The services are outsourced. The advantages that come with this option are that there is a high level of price certainty. This means that when using this method the company undertaking the project is sure of the cost of the project. Another advantage is that the option provides room for flexibility. This means that it allows changes to occur during the project. This is an important part in the project because changes must occur and they ought to be accommodated while choosing the option (Walker & Hampson, 2003). Another advantage is that there is transfer of risk from the project owner to the contractors. This reduces the risk of loses to the client. However, the option has its disadvantages, which hinder its selection. These demerits include the fact that the level of increasing the funds is low. This forces the contractors to do a low quality job in order to stay within the budget and complete the job during the stipulated period (Kerzner, 2009). Another disadvantage is that it does not allow parallel working. Parallel working is a situation where different tasks are undertaken at the same time. This means the process is slow and does not allow multitasking. This delays the entire project. Another disadvantage is that time before start is slow. The project takes long before it starts due to the many processes the contractor has to take. This delays the entire project because of the lost time (Beard, 2001). The next option available to the client is the design and construct. Designing and constructing are given to the same company. This means they are given under one contract. The advantages of the option include price certainty is good. This means that the client and the contractor can have clear estimates of the entire project without problems. This allows the stakeholders to have proper plans for the project during all phases. Another advantage is that it allows increasing of funds incase there is a shortfall. This avoids delays during the course of the project. Another advantage is that the option allows parallel working. This means different activities are undertaken at the same time. This helps the contractor to finish the project during the set time and have room for improvements. This ensures there are many activities taking place which increases the quality of the project. This is because the company has specialists in all the fields. Another advantage is that the period before start is short. This means the project takes a short period to start which ensures the project completes during the set time. However, the option has it disadvantages which includes not providing room for changes. This means the project process is static and no provision for changes. This means that if mistakes occur there is no provision to correct them (Dhar & Quantman, 2003). Another option available to the client is the construction management. In construction management, the client contracts a firm to manage construction of the project on his behalf. The client enters directly in to contractual agreement with suppliers and sub contractors. It is the responsibility of the firm to oversee the project and the subcontractors of the client. The advantages of this method include provision of design and construction expertise without conflicting interests. This means that the work of the consultancy firm is professional. The option allows fast delivery of the project because different activities take place at the same time. Another advantage is that there is early control of the budget. This avoids overspending in one phase, which delays the entire project. The option is flexible and allows room for changes during the course of the project. The project takes a short period before it starts. The reason behind this is that everything is in place and no need for further planning (Demkin, 2007). Integrated project delivery approach is another procurement option available to the client. The option entails that the client select all the team members basing on their technical expertise. The method adds value through collaboration of the project team members who include the client, trade contractors, facility managers and the final users of the project. The method allows sharing of risks and rewards among the stakeholders. The option involves the client selection of team members through competitive and value based procurement process. This allows him to have the best team members who will work towards realising the final project. The advantage include there is early involvement of key participant so as to have there views in making the major decision of the project. It is a continuous process that allows improvement. This means that changes are possible during the course of the project. This means there is also quality improvement during the course of the project. There is open communication during the course of the project. This is the most appropriate option for this project because of its advantages, which outweigh the advantages of other options. The disadvantages are also minimal making it most reliable (Birnberg,2004). 1.3 Client’s legal documents The client has to possess the land ownership documents. This is to ensure that he has the rights to develop the land. This will avoid problems with the local authorities. Investors’ right agreement is another document the client should possess. This to show the agreement with the major investors of the project this is to avoid future conflicts in case investors want to withdraw. The client should also have all the contract agreement between him and other stakeholders. The purpose of this is to avoid problems during the course of the project if the subcontractors do not meet the requirements of the client (Walker & Hampson, 2003). Part Two 2.1 Problems This part of the case study presents the problems that arise during the course of the project. It provides the legal position of each stakeholder when such problems occur. 2.2.1 Environmental survey In this scenario, the client did not enter into a contract with the environmental consultants; therefore, the environmental firm cannot sue the client. The environmental firm legal proceedings can not be a success because the work was through correspondence, and no contract was signed. The best ways to resolve this is by bringing the parties together and have a written contract which will help even in the future. The client should also pay the consultant (Kerzner, 2009). 2.2.2 Architecture design and landscaping In this scenario, there is a contractual agreement between the client and architect spelling out that the architect should undertake designing and landscaping. The client should therefore, sue the architect for not carrying out the client’s specification. The client has a strong legal position because it was not in the contract to subcontract. The legal document spells out the client’s requirements, which must be met by the architect (Demkin, 2007). 2.2.3 Electric cable The contractor hitting electric cable causing loss of power to the neighbor is offensive. The client has a strong legal position and can not be sued. The reason behind this is that the contractor could have alternative routes for power loss. The contractor is the one to face the law because he is in charge of the major works on site. The amicable way to solve this is to contact the power station. The contractor should connect the area to the sub power station which is on site. 2.2.4 Human remains This is a result of environmental consultant not doing their job in the right way. The client does not have a legal position against this environmental firm. This is because they did not enter into any contractual agreement with the firm. This can be solved by the firm doing assessment again before the client pays the firm. The construction management company can also sue the environmental consultancy because they are one who gave the firm the contract. 2.2.5 Great Crested Newts Given that is illegal to disturb the crested newts the provisions by the law should be followed. The law provides that land developers should provide newt fencing to prevent the newts from entering the development site. The newts should not be moved, and the fence should act as a receptor to protect the newts from harm. This was a problem of the environmental consultants firm for not doing a complete assessment (Kerzner, 2009). 2.2.6 Insolvent sub-contractor The client should take the initiative to pay the material suppliers after agreement with the sub-contractor instead of paying him his dues. This will avoid major conflicts in the side of the client. 2.2.7 Delayed payments In this scenario the client should authorize the accounts department to pay the contractor. The client should also take the responsibility of delays. This will be the best way to solve such a scenario. 2.2.8 Quality of workmanship The client should not interfere with contractors work if it does not compromise quality of the project. In case quality is compromised the client should request the contractor to improve on that. 2.2.9 Stolen materials The client and contractor should contact their insurers to compensate them for the loss items. The client should also provide funds so as not delay the entire project. Security should increase so as to avoid such a scenario. 2.2.10 Delays in completion The contractor has a strong legal position against the contractor. This should not happen because it will compromise the reputation of the client. The client should allow a little room of flexibility where the project should delay. This will promote excellent working relations (Ritz, 1994). In conclusion, construction management is an integral part in development and should be taken seriously. Documentation in any development is very important so as to avoid problems and solve them amicably when they arise. The stakeholders should always be aware of their legal position during the development process. The construction consultant firms should also provide their clients with all the procurement option available to them so as to allow them to be flexible. The construction stakeholders should solve their problems in the best ways possible. References Walker, D, & Hampson, K. 2003. Procurement Strategies: A Relationship based approach. New York: Wiley- Blackwell. Demkin, J. A. 2007. The Architecture handbook of professional practice. London: Wiley. Ritz, G. 1994. Total Construction project Management. Michigan: McGraw Hill. Birnberg, H. 2004. Project management for building designers and owners. London: Oxford. Kerzner, H. 2009. Project management: A system approach to planning, scheduling and controlling. London: Wiley. Dhar, R, & Quantman, W. 2003. The architecture guide to design-build services. San Francisco: Wiley. Beard, J. 2001. Design-Build: Planning Through Development. New York: McGraw Hill. Read More