Construction in Dubai - Assignment Example

?Building survey Construction is considered amongst one of the most dangerous land based activities in the working sector of most of the countries. It is a process that consists of the building or assembling of infrastructure, and is an act of human multitasking. In the modern industrialized world, construction usually involves the translation of designs into reality. The lack of awareness/low level of education of the construction workers, multi level subcontracting, high mobility of workforce etc can be considered prime reasons for construction hazards in many countries. Regardless of the dangers that await the working sector, the construction business is considered to be the backbone of Dubai's flourishing economy. Dubai has gathered much attention in recent years with their fascinating and innovative building ideas and architectural wonders, like the Dubai Skyline and the Burj al Arab, among others. Real estate and construction( 22.6%) are the largest contributors to Dubai's economy(Economy Watch,2010), and are considered amongst one of the key sources of employment, income and growth. Before jumping into attempting this building survey, we first need to understand and familiarize ourselves with the construction world, who are the people involved, what are their key roles, what are the challenges they face etc. Coordinating one aspect of a construction is a difficult task. But coordinating the entire process, from initial planning and foundation work, through the final coat of paint, takes someone with a lot of managerial skills. Being a construction manager demands organization, attention to detail, an ability to see the “big picture,” and an understanding of all facets of the construction process, usually acquired through experience. A construction manager is the intermediary between his clients and his workers, between the architect and his subcontractors, and between the project and any regulatory personnel(Princeton,2012). A construction manager's foremost functions include planning, directing, coordinating, supervising etc. Their construction projects include, but are not limited to, buildings, residential areas, commercial, industrial structures, roads, bridges, schools and hospitals. A construction manager(CM) may take on an entire project or part of a project depending on contract. They are either salaried or self-employed people, who oversee construction projects. They supervise the construction process from its abstract stage till its completion, making sure that the job is completed within the allotted time frame and budget. General responsibilities of a construction manager include helping in the acquisition of land(they know what type of land is necessary and what size), to obtain permits, to hire workers and speciality contractors. A CM must review the project thoroughly before undertaking it, so he has an understanding of what will be needed along the way, and what needs to be done prior to beginning the project. Many constructions managers are given the duty to come up with a budget for the construction project. They will then come up with a detailed cost analysis to get an estimate of the cost to be incurred. This is of fundamental importance as any delays in the project may cause a considerable amount of money. A CM should be an excellent multi-tasker. He should be able to jiggle multiple things at the same time, work under stress and pressure, and have the ability to meet deadlines. It is also the construction manager's job to provide a worker friendly environment, and to come up with a health and safety plan. Safety should be of utmost importance during the architectural plan of the building. The managing contractor should be able to design out unnecessary hazards and come up with a plan to minimize, if not completely eliminate them. He needs to prepare the pre-tender stage plan, which is a collection of information about the significant health and safety risks of the construction project which he will then have to manage during the construction phase. A construction contract is the warranty that the executed job will receive the specific amount of compensation or how the compensation will be distributed. Construction contract types are usually defined; by the way, the disbursement is going to be made and specifies other specific terms, like duration, quality, specifications and several other items(Rodriguez, 2012). Some of the most common contract types are: Lump Sum contract, Unit price contract, Cost plus contract, Incentive contracts etc. A lump Sum contract is where the contractor agrees to do a particular project for a fixed lump sum price. This type of contract is feasible when the project specifications are defined. But when complete plans and project details are not specified, it does not work out in the best interest of the consumer, as the contractor will try to acquire the maximum profit as possible from the contract. For e.g, if not specified, the contractor may use cheap products and materials to lower his cost and squeeze out more profits. A Unit price contract is based on an estimated quantities of items included in the project and their relevant unit prices. The final price of the project is dependent on the amount of the quantities needed. This kind of contract is appropriate when the different types of items, but not their numbers can be accurately identified in the contract documents(Engineering, 2012). A third type is a Cost Plus contract where the contractor is compensated for the actual cost of labour and materials required for the completion of the project along with an overhead fee and profit. This contract is flexible in accommodating the ongoing changes but at the same time, the cost tends to get out of control, so it needs to be closely monitored. An incentive contract takes up a fraction of the profit and assigns it to the cost. A fixed price incentive contract provides for adjusting profit and establishing the final contract price by application of a formula based on the relationship of total final negotiated cost to total target cost(Engineering, 2012). A Cost Reimbursement incentive contract gives us an initially negotiated fee and also allows for adjustments to be made to it depending on the relationship between the allowable costs and the total targeted costs. A more traditional type of a contract would be an owner- designer contract, where the owner, the designer and the architect group to work together on the project and oversee the planning, design and construction of the project. A second type would be the owner-contractor contract, which would only involve the construction aspect of the project. Design and build contract forms are a more modern approach where the consumer signs a contract with a sole contractor, who designs and also builds the project. When a same panel of people is assigned to do the entire job, it is beneficial because the layout of the building is designed in a way to keep the construction process in mind. This helps in reducing the construction costs to a minimum without compromising on the quality of the end product. Also, this project is advantageous as the construction work can begin alongside the design making process. In other contracts, the constructor first has to wait for the design to be approved by the authorities in order to proceed with the construction. This saves up a lot of valuable time and it is highly probable that the project is finished within the given time frame. Last but not the least is the Time and Materials contract, which is normally seen in maintenance and public works contracts. The contractor charges an hour based fee, which results in the owner paying only when the contractor is working. But a common consequence of this results in the contractor slacking and doing the doing the job slowly to earn more profits. The second important role in the construction world is of the project manager. Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. The primary challenge of project management is to achieve all of the project goals and objectives while honouring the preconceived constraints. It is the project manager`s job to ensure that the various project elements are effectively coordinated, that all the work required is included, to identify needed resources and maintain budget control, to effectively employ project personnel, to recognize the potential risks and to obtain necessary resources from external sources. A traditional project management approach would include a group of 4 to 5 basic stages. The first step is the initiation of the project, where the nature and scope of the project is determined. The second step is to design and plan the project. Here, you plan the project in detail to analyse the costs to be incurred, the time frame required for the completion of the project and the risks involved. The third stage is the execution of the plans. This involves coordinating people from different working units and making them work together effectively as one unit to successfully execute the project plans. The fourth phase requires a project manager to oversee the project to make sure that it will be completed in a timely manner, to foresee possible problems and to come up with solutions to them. The last stage is the closing of the project, where the project manager makes certain that all the project requirements have been met, and that the owner is going to be satisfied with the final creation. The biggest challenge that a project manager must face is the uncertainty of risk. A good project manager can lessen this uncertainty to a minimum, often by sticking to a policy of open communication amongst all group participants, making sure that they voice their opinions and concerns. Resource planning, developing schedules, time and cost estimates, documentation, risk analysis, team leadership are other roles that a project manager plays. When considering this particular survey in mind, the construction worker belongs to a project management firm, thus his job description is an amalgamation of the two, a construction manager and a project manager, in the form of a construction project manager(CPM). So he needs to plan , coordinate and complete the project from inception till its completion according to the customer's requirements. The practice recently won a bid for a large commercial developmental project, and the construction project manager has been assigned with the job of the construction of the building. The key roles that I have mentioned above are all going to be part of this process. For the purpose of this survey, lets create a hypothetical scenario, and assume that the contract is Design-Build contract. That makes the CPM(me) the architect and the builder. If this wasn't the case, the CPM would have first hired an architect to design the building and then get the permit for it to start constructing on that site. So since I am the architect, I will first design the building according to my construction needs, lowering the cost to maximize profits and at the same time, not compromising the structure and quality of the building. The construction project that I designed must be approved by the legal authorities, and must adhere to zoning and building code requirements. I need to make a proper financial plan or hire a financial advisor to eliminate cash flow problems. Since construction of a building is a major task, it cannot be done alone. It is achieved through tiered sub-contracting and immense human multi-tasking. Being the principal contractor, it is my job to oversee the construction site regularly, but since my job description requires my attention in various matters, it is not likely for me to be present at all times. For this reason, I will first hire a managing sub-contractor, who will help me oversee the construction and will constantly update me on the progress as well as the hindrances that face this task. For other works, like the building services work, which basically includes the designing, installation, operation and monitoring of the mechanical, electrical and public health systems required for the safe, comfortable and environmentally friendly operation of modern buildings(Wikipedia, 2010), I will hire a Specialty Subcontractor. For internal decorations etc, I will hire a Nominated Specialty Subcontractor, chosen by the client himself or according to his satisfaction, to complete the job. These subcontractors will then bring their working units to perform their respective tasks. To ensure the safety and health of the workmen, it is my responsibility to come up with a reliable safety plan, and to make sure that the unit hired are professionals in their jobs. No one is under trained, and if they are, they go through proper training before operating on any machinery. To guarantee the completion of the project within the specified time limit, organisation and communication is of utmost importance. Since I am the CPM, it is my task to design the building, to foresee problems that may arise and come up with solutions to eliminate them; to make a detailed cost budget so as to minimize costs and also to keep in check that the project cost does not get out of hand. I need to be in constant contact with the managing subcontractor for updates on the construction, so that my assistance is available if needed, and to resolve conflicts. All the tiered levels of subcontracting need to report to me and also need to be in contact with each other so that time is used more efficiently. As the CPM, I also need to exercise Construction Cost Management, where I work in the best interests of the owner at every stage, offering advice on matters such as optimum use of available funds, control of the scope of the work, optimum use of design and construction firms' skills and talents, avoidance of delays, changes and disputes; enhancing project design and construction quality; and cash flow management(Design, 2012). For efficient cost management, I will proceed with the Negotiated Construction Bid technique. As I am the principle and sole contractor, the owner does not have the benefit to compare prices. This bidding technique will benefit me as I charge a slightly higher amount for my services without compromising on the quality of the project. I will negotiate to the point where it will benefit me and my company without ripping off the customer. I will then exercise competition construction bid technique, where I will call bids from the specialty subcontractors hired by me. For understanding purposes, let's assume that a worker under the building services unit was working with an excavator to remove some iron pipes from the site. In order to amuse a female co-worker, he drove the excavator in a zigzag manner and accidently caused the death of another worker. In such instances, the project can be shutdown, or delayed for legal reasons for such an extent of time that it costs a lot of valuable money. It is only fair to assume that this worker was either underage and not authorized to drive an excavator or he was extremely unprofessional. Other on site hazards are also possible. My job as the CPM is to make certain that I hire professional people for the project, and to provide them with sufficient training, to avoid such case scenarios. If I do a good job, everything is organized since the beginning of the project and it's also completed in a timely manner to the customer`s satisfaction, it will reflect in a positive manner on my company and my name. It will increase my company`s credibility and more people will trust us with their projects. More projects mean more income for the company, resulting in the company flourishing. word count : 2572 References: Economy Watch Content (2010). Dubai Economy http://www.economywatch.com/world_economy/dubai/ The Princeton Review (2012).Construction Manager. A Day in the life of a Construction Manager. http://www.princetonreview.com/careers.aspx?cid=44 Rodriguez, J. (2012). Types of Construction Contracts http://construction.about.com/od/Construction-Management/a/Types-Of-Construction-Contracts.htm The Engineering toolbox (2012). Contract Types. Common engineering and construction contracts http://www.engineeringtoolbox.com/contract-types-d_925.html Wikipedia (2010). Building services engineering http://en.wikipedia.org/wiki/Building_services_engineering Clinic Design (2012). Construction. http://www.healthdesign.org/clinic-design/design-process/construction/cd_faq?print=true Read More