Project Management applied to House Renovation - Assignment Example

Topic: Project Management applied to House Renovation Introduction House renovation is technically understood as an alternative process to repair existing homes. This is also sometimes referring to instituting changes to suit the needs of residents who needed to introduce minor or major repair or remodeling to add more spaces, architectural styles, or add more functional structures (Plaut & Plaut, 2010). Renovations are often motivated by household needs, geographic factors, functional relevance, and economic state of residents who wanted to achieve certain level of affluence. The changes or remodeling can be done either by introducing structural alterations or changes by enlarging spaces or making it smaller (Plaut et al., 2010). More functional rooms will be made, or floors will be changed, or it needed more natural lightings, or to fit it with geographic location better to reduce potential risks caused by flooding or earthquake. Objectives and Scope This paper aims to discuss project management of house renovation which will be considered by senior management to effect measurable changes to an area in a home desired to be renovated. It specifically aimed to explicate a propose house renovation plan and explicate how performance management is significant for construction quality control and in the achievement of preferred outcomes. Methodology This research is a qualitative phenomenological study aimed at explicating the interrelation of performance management in relation to house renovation. Qualitative research design is often utilized by researcher to generate potential ideas which will elaborate realistic and testable hypothesis (Shuttleworth, 2008). The latter will provide a comprehensive test or an analysis through interviews, survey design method, and case studies. The house renovation, as locus of study in correlation to performance management, will be compatible with phenomelogical and case study approach because it will rely on the disclosure of the households’ specific needs and wishes (Shuttleworth, 2008). It will likewise focus on a specific home where changes are desired to be introduced. Qualitative study is pliant to experimental techniques and is inclusive of all scientific methods of study (Shuttleworth, 2008). This method is beneficial and purposeful when the subject is too complex to unravel which demands a web of discussion to correlate theories of engineering, architecture, economics, and performance management of its workers (Shuttleworth, 2008). As a case study, the discussion hopes to generate careful thought and accurate explication that would be helpful in the realization of the project (Shuttleworth, 2008). Limitations The researcher is limited to discuss only about house renovations and the significance of performance management in executing the project plan. The limitations is centered solely about the challenges of an organization in defining, measuring and motivating workers’ performance to make the work cost-efficient and effective (Hartog, Boselie, & Paauwe, 2004) following the organizational strategies in human resource management and of quality control standards (Hartog, et al., 2004). It will therefore consider all models that are considerate of key workers’ roles, functions, communication expertise, skills, perceptions— all of which are subject to managerial capacity and other related causality (Hartog, et al., 2004) of renovation and construction. The researcher is likewise limited by international standard of professional ethics in the conduct of research. Related Literature House renovation is an economic activity because this will involve the use of human and capital resources, thus, considerate on household income that will guarantee the full completion of the project (Plaut, et al., 2010; p. 462). It is also dependent on decisions made by the family—as the latter make some rational choice on engineering design and on renovation model it seeks to effect, as well as, the structure they wish to change. This is therefore inclusive of logistics analysis (Plaut et.al., 2010; p. 462) and the theoretical precepts governing decision-making relating to renovation because persons involved must be sensitized on the present value of property, the variables of demolition and reconstruction, and, the cost of the construction materials that will be utilized in renovation (p. 463). These variables cover (a) personal and household variables; (b) housing variables, and (c) geographic variables. The first variables are inclusive of data and information of household’s demographic profiles such as the number of residents of a specific home, their gender, status, nationality, and their economic status (Plaut, et al., 463). The latter is significant to determine the credit quality of the household and in determining their level of accountability when such renovation falls within the market cycle when mortgage is of high interest rate. The second variable cover matters about the value of the house sought to be renovated with it’s anent tax, mortgage rate and its physical condition (Plaut, et al., 464). The latter relates to the area or size of the house, its architectural model, number of rooms, bathrooms, living room, private garage, its parking space and the quality of materials with will be used when renovation is actuated (pp. 464-465). The third variable, i.e. its geographic location, deals on the exact location of the house sought to be renovated-- whether it’s in a rural or urban setting. The latter will also indicate whether the area is in commercial zone, within a village, or in a simple rural agricultural setting. Experts on renovation posit that the model and structure of house sought for renovation will also determine the cost of the tax rate depending on amenities which will be added to its original design (pp. 464- 465). Home renovation is related to performance management. Key persons that will be employed or contracted to undertake changes will do property review, conduct planning, make cost estimates, contract workers and the like. They will be considering all these factors in the crafting of strategic plan to make renovation successful within allowable timeframe. They will also make their blueprint of structural changes and renovation plans They may use technology in the project organization, in communicating to hire for desired workers skilled in construction, in estimating the resource cost for the structures, scheduling of cash flows, and in documenting the progression of works as essential part of project management (Lock, 2007). Lock (2007) opined that with escalation of modernization in the field of construction, companies preferred competitive construction workers who can fully contribute in the completion of a project. They hire and retain employees who can illustrate competence, thus, multi-skilled, good in communication, and whose capacity to work express the eloquence of dedication, commitment, hardwork, sensitivity, and sense of timeliness (Lock, 2007). As such, they ought to work with a system based on standard construction practices and in teamwork (Lock, 2007, p. 2). These days, home builders use technology not only for actual construction but also for planning, in drawing an engineering blueprint or plan, and in making estimates of renovation costs (Lock, 2007). Engineers and other experts nowadays use software supportive in the framing of structural estimates and are perceived versatile or adaptive for renovation projects. Thru these information technology, the team can predict the structural risks and they are able to provide contingencies to mitigate risks associated to renovation (Lock, 2007). In managing workers, team of home builders should be knowledgeable about the project cycle of renovation. This covers initiation, planning, execution and closure. Initiation is about commencing the project by documenting a business case, making of feasibility study, determination of terms of reference, hiring of workers’ team, setting up a project office, and performing renovation phase review (MPPM, 2012, p. 1). The planning provides direction setting and formation of project’s blueprint which explicates the plans about the changes desired about. The plan also includes details on resource, finances, quality control, acceptance plan, documentation and communications (MPPM, 2012, p. 1). On the other hand, the project execution is the actuation of the renovation as deliverables. The latter should be set in a timeframe and should be delivered and managed with consideration to its scope, costs, quality, risks issues, management matters, procurement of materials, acceptance of management and bridging communication with the households as clients along with its team of workers (MPPM, 2012, p. 1). Closure, on the other hand, relates to the completion of the project, thus would result to the termination of the contract of human resources involved in the renovation. Closure happens after the formal turn-over of the project to the client or customer (MPPM, 2012). This project cycle is depicted in the illustration shown below: Figure 1. Details of a Project Lifecycle. (MPPM, 2012). The project implementation, which is seriously devised, contemplated and performed by the workers, can also be illustrated using this figure below: Figure 2. Project Execution (MPMM, 2012) The project execution can likewise be explained with the following details: a. Estimating the Project Cost – the project cost can be estimated by the structural changes sought to be renovated by the household. This is considerate of their needs by determining the number of rooms, comfort room, living room, garage, ceilings, lightings, kitchen, dining area, and kind of roofing they want. The estimate must be sensitive to the preferred construction materials they intend to use and the geographic site where the house is located. The budget estimate will also detail the cost or salaries of the number of house builders who will be employed to undertake the plan; cost of the equipments or facilities that will be used in the construction, and the cost of architectural design based on renovation blueprint (MPMM, 2012) b. Planning Timescale – The renovation must be undertaken in phases and thus, must be done using timescale or schedules of execution (MPMM, 2012). It is important for manager heading the undertaking to target the period of the project’s completion because the number of hours and days employed for renovation will also dictate the cost accrued as workers’ salaries (MPMM, 2012). For the households, it will also provide them an idea about the cost of primary and incidental expenses that will be utilized in the execution of renovation e.g. food for construction workers. c. Risk - The strength of the house under renovation will also command the needed foundations and depths to make it withstand earthquakes and flooding (MPMM, 2012). These days, every house renovated must be sensitive to climatic changes and weather of the region where such house is located. Other risks that the managers should consider are the risks associated to the facilities and equipments they needed which may have its mechanical breakdown within the duration of the renovation (MPMM, 2012). Its human resources should likewise be insured against health hazards to ascertain immediate access to pre-need plans for their well-beings. Another important risk that the company should consider are those stipulations in the contract which binds the company and the client. Express and implied stipulations will be ruled by laws relating to obligations and contract. This should be significantly discussed and negotiated before renovation is commenced to avoid legal risks which may arise and negatively impact to the company who’d be confronting suits for breaching contracts (Triantis & Triantis, 2008). d. Project Authorization -The manager should likewise be sensitive about the need of complying to local policies relating to renovation (MPMM, 2012). Some regions require cost of building permits and other related taxes for major renovations. Authorization should be secured to evade legal problems that may arise. (MPMM, 2012). e. Project Organization Structures, Key People, Roles and Accountabilities—The team which will be employed must be organized in such a way that their task will correlate to each others’ functions. They must all be knowledgeable about the fundamental of construction, architecture, accounting, legal or contractual policies and other policies relating to renovation. The key people who’d work as a team must be composed of engineers, architect, accountant, plumbers, carpenters, welders, electrical expert, and other construction post or designation that are needed in this renovation project (MPMM, 2012). The manager will be in-charged in the overall project management and human resource management. He will set the direction of the renovation toward completion. He will do so using the plan, timetable, cost schedule, renovation phasing and monitoring. The manager will call for regular meeting of workers and will bridge communication with the households to ascertain that desired renovation model is achieved (MPMM, 2012). The architect will design the renovation plan together with the engineer or managers and will also determine the materials that will be used in close coordination with the households (MPMM, 2012). Together, they will set the work plan with carpenters, plumbers, electricians, welders, and other co-workers. They must use technology to document the progress of their works, the agreements, the meetings and in making the estimates (MPMM, 2012). They must be contracted with salaries that are consistent to labor laws (MPMM, 2012). The company accountant will be responsible to keep a transparent budget and records of resource use. f. Principles of Resource Scheduling – The team must work within the ambit of resource schedules for cost-efficiency and effectiveness of the renovation. Resource scheduling will also drive them to accomplish their tasks within the allowed budget and estimated cost of construction (MPMM, 2012). Otherwise, they will fall short from their budget estimate and may negatively impact to available financial budget allocated for the completion of the project. g. Managing Progress – The project manager must regularly conduct meeting with its workers to tract the development of the renovation. Their performance will also be evaluated each day to ascertain what has been done so far, what is yet to be accomplished and what the things they still need toward completion (MPMM, 2012). As such, every day, the manager must appraise the work in accordance to renovation plan and communicate these on a regular basis to the households. h. Managing Changes – In case there are problems that may arise within the duration of the renovation, as in the case when a worker gets sick or when the weather is not cooperative, the manager must be apt to appraise what alternatives should be undertaken as remedy to issues (MPMM, 2012). Problems can be easily resolve when the team will maintain open communication with each other; when they conduct regular meeting; and when open communication is practiced between the team and the client (MPMM, 2012). All of these changes must be documented to keep tract of developments and to make them as supporting documents in case there are legal issues that may occur as a consequence of abrupt situational changes (MPMM, 2012) or of factors beyond control. It is therefore crucial for management to have the skill in expediently identifying, recording, approving and enforcing changes when needs arise (MPMM, 2012). i. Resources Needed for Renovation & Resource Control – Renovating a house entail the use of resources for the project completion. The following resources should be considered: i.1. financial resources—this will cover the financial cost which will be accrued in the purchase of materials needed for the renovation; the salaries of the human resources who’d be employed to effect the construction; the operation cost of the renovation which is inclusive of transportation; food of workers; rental and use of equipments as deem fit and necessary; and other incidental expenses in the course of the project development. All of these financial costs will be subjected to regular accounting and for transparency of expenditures. The cost of the renovation can be determined thru estimates depending on what structure of the house sought to be renovated. i.2. human resource – this refer to the workers that would be hired by the company to undertake project development. This must be persons of competence, skilled, and knowledgeable on the fundamentals of engineering. They will be salaried in accordance to agreed rate with health benefits. The company must also have partnership with other related institutions which could help in hastening the performance of the team which include legal consultants. i.3. technical resource – this resource refer to the mechanical devices and tools that will be utilized in the construction or renovation. It is also inclusive of information technology and programs that will be used in the project. The use of the technical and tools for renovation should be based on international standard or reference of quality control for construction and engineering (Song and Vorburger, 1991); j. Resource Control – Financial management is subject to accounting policy governing contractual relations. This is integral in project management, thus control must be part of company’s performance management to mitigate risks and deficiencies in budget. Such is parcel of the economic area analysis and the prognosis of project evolution. Financial control is also inclusive of the process of preparation, substantiation, financial decision-making and execution (Popeanga, 2008). Financial control must likewise harmonize the unitary and individual interests of all stakeholders in the renovation (Popeanga, 208, p. 139). The human resources will be controlled through constructive feed backing-system, appraisal and performance evaluations. These is essential to note so that those who needs capability enhancement will be given due trainings. It will also help management decide which of the workers who would be promoted, retained or terminated. Meanwhile, the technical resource is government by standard quality control designed for engineering and architectural standards. j. Managing Project Cost – The cost of the renovation must be duly considered at the planning stage of renovation and in collaboration with the clients. Resource must be managed with transparency and thorough accounting (MPMM, 2012). As such the administrative staff of the company in collaboration with clients will be involved in resource cost estimating, budgeting, and control. Contingencies must therefore be communicated and agreed well before commencing the project (MPMM, 2012). k. Managing Project Closure – When the renovation is completed, the area must be subjected to ocular inspection with the households to ascertain that the desired model is achieved and if there are some specific concerns that needs to be addressed (MPMM, 2012). To make the renovation wholly acceptable, the manager must allow the households to be part in monitoring the progress of the renovation project and encourage comments or feedback from time-to-time for consideration (MPMM, 2012). The participation of the households in decision-making is crucial in lessening the risk of non-acceptance. The completed project must be turn-over formally to the household and their feedback, whether constructive or not, should be considered well, too. Conclusion and Recommendations House Renovation demands performance management. This is to systematize and to logically sequence the phases of work to ascertain that targeted outcomes are achieved. Managers should therefore be accurate in its planning and must ensure that the renovation be undertaken specifically, measurably, agreeably, realistically and time-bound (MPMM, 2012). The renovation plan must be detailed and must be based on prior review or assessment of the original house desired to be renovated. Regular meeting should be conducted with workers and with the client to ascertain to be able to communicate the progress of the renovation works and to allow constructive feed-backing to mitigate risks. It is therefore recommended that the management must: a. Conduct prior evaluation of the property sought to be renovated to have an empirical bases for changes; b. Discuss thoroughly the legal implications of contractual obligation with clients; c. Make a plan and estimate based on the allowable budget of client; d. Hire skilled, expert and professional construction workers; e. Maintain transparency of resource use through accountability and in accordance to preferred standard of quality control in construction and engineering; f. Document all plans, communications and recommendations to mitigate risks associated to construction. Maintain open communication with client and with workers and be adept on managing changes. g. Complete the project within the given timetable for cost-efficiency but effectively. h. The company must utilize technology and construction materials that are attuned to standard quality control. References Emil Surlalu. The Human Resources Strategic Management. Revista De Management Comparat International/International Review Comparative Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(5), (2009) 968-975. Gabriel Popeanga. Financial control - part of management and financial administration, Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(8), (2008) 138-141, December. Hartog, D.N. den & Boselie, J.P.E.F. & Paauwe, J.,Performance Management: A model and research agenda, Research Paper ERS-2004-068-ORG, Erasmus Research Institute of Management (ERIM), Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE), Erasmus Uni. 2004: 1-12. Lock, Dennis. Project Management ( 9th Ed.) England: Grower Publishing Limited. 2007 Martyn Shuttleworth. Qualitative Research Design. Experiment Resources Online, 2008  http://www.experiment-resources.com/qualitative-research-design.html Accessed: 12 February 2012 Method123 Project Management Methodology. Project Management Cycle. California, USA. 2012:1. Pnina O. Plaut & Steven E. Plaut, Decisions to Renovate and to Move. 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