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This blog is created to help people pursuing the NIC MAR - SODE (school of Distance Education) Project Management Course. In

this blog project management concepts will be explained and also approach the assignments will be discussed. This blog is meant

as an additional resource to supplement the distant learning course.

NICMAR - Project Management

Tuesday, 11 September 2012

PROJECT RISK MANAGEMENT

For the successful implementation of a project it is essential that the people involved in its implementation be sensitive to

the risks involved in the project and formulate the most suitable structure for the management of such risks. There are

certain variables and uncertainties in common to most of the infrastructure projects. Many risk mitigation techniques are

applied to infrastructure projects. Discuss in details the risk management to construction with special reference to a

project currently in progress with your company.

Risk Management of Construction Industry Managers, the lesson book complied by NICMAR

  i.  Describe scope of project in short

  ii.  Explain type of project

  iii.  Note down important points of perceived construction risk, pro ject risk, risk economic risk, insurance.

  iv.  Risk mitigation is done in construction infrastr ucture development projects.

i. Name of project

ii. Scope of work

iii. Important details project, cost, time, type risk involved, risk mitigation etc.

iv. Important points from contractor’s project managers point of view to be monitored/resolved.

v. Method followed for administer and monitor risk

vi. Recommendations / Conclusion

vii. Bibliography / Readings

XYZ IMPLITZ LTD is a design consultancy providing tower design solutions to the telecom and power sectors.

The scope of our work includes the following:

Tower design

Design checking

Preparation of Structural Fabrication Drawings

Building analysis for installing a roof top tower.

Preparation of structural drawings of existing buildings (if building structural drawings are not available)

Supporting beam design for installing roof top tower.

Foundation design of ground based tower 

Estimations during tender stages

Dynamic analysis and Non Linear Analysis.Design Checking and strengthening of towers

Preparation of as built drawings

One of the cellular service providers by the name of TELESERVICES MH LTD asked us to design a ground based tower.

It was a 60 metre tower based on a piece of land that the client had acquired from the landowner by entering into a

contract with him. The agreement was for a valid consideration and for a definite period of time. After the lapse of the

period the client would either have to dismantle the tower or renew the agreement with the landowner for a further period.

The parties involved in the project were the client, the consultant, the contractor and the outsourcing companies who

accomplished the work of acquiring the land for the client. The modus operandi was thus:

The outsourcing agent would acquire the land shortlisted by the client from the landowner by doing the necessary

groundwork and entering into necessary legal agreements for a valid consideration. The client would then summon the

consultant and give his requirements of tower height and load of antennae coming on the tower, etc. Based on this the

consultant would prepare layout drawings after conducting a prelimnary survey whether the piece of land would be

enough for a tower of that height. He would then furnish the layout drawings and then conduct the soil investigation of the

proposed site to ascertain the safe bearing capacity of the soil. Depending upon the recommendation of the client, and

the data gathered from the soil investigation and from the client the consultant would then design the tower for the

required load coming on the tower along with its foundation system. He would also design the supporting beams for the

shelter and the diesel generator.

On receiving the design drawings the client would then pass them on to the contractor earmarked for the project and he

would then order the material required for the erection depending upon the bill of materials furnished by the consultant's

drawings. The consultant would also give the fabrication drawings based on which the steel sections would be fabricated

in situ. Based on the erection drawings of the consultant the contractor would then start erection of the tower and its

accessories namely the shelter and diesel generator. Once the erection has been done then commissioning would

Assignment

STUDY

KEY

STRUCTURE

TYPE OF PROJECT

CONSTRUCTION QUALITY

CONTRACTS MANAGEMENT

Construction Finance Management Assignment

Construction Personnel Management Assignment

MANAGEMENT IN ORGANISATION ASSIGNMENT

PROJECT FORMULATION AND APPRAISAL

PROJECT MANAGEMENT 1 POWERPLANTS and ENGINEERING

PROJECT PLANNING ANDCONTROL

PROJECT RISK MANAGEMENT

SAFETY AND ENVIRONMENT

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PROJECT FORMULATION AND APPRAISAL

CONTRACTS MANAGEMENT

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commence in which the client's engineers would cross check the contractor's work by simulating conditions similar to

those that would prevail under normal working of the tower. Once the commissioning is over then the site would be

handed over to the client by the contractor. The client would then ask the consultant to prepare as built drawings of the

site showing the views of the tower as it is standing. In all these works there are a lot of risks that each of the parties have

to bear and find out ways to mitigate. Following are the list of risks that each of the parties have to bear.

Revenue risk is the uncertainty in relation to the revenue that a project would actually generate. The uncertainty of the

revenue of an infrastructure project (as opposed to other industrial projects) is because of its public nature, which carries

with it the uncertainty in the ability and willingness of consumers to pay for the benefits arising from the project. In this

case the client will be bearing the risk of spending on the facility and then hoping that he gets some other operators to

share the tower with him. Also that people in that region will subscribe to mobile telephones so that he can recover the

costs of his erecting a tower in that region.

This risk relates to any defect in the design of the infrastructure facility or the design requirements stipulated for the

project. This is an inherent risk in the project as it is very difficult to conclusively ascertain that the damage to the facility is

actually caused due to the defect in the construction or design assumptions made by the consultant or design data

supplied by the client or the very design itself. Generally, it is the design contractor who is responsible for the design

aspects of the project. In the case of the project the client has to indemnity himself from any damage that may be caused

by the accidental falling of the tower due to wind pressure or any other reason. In design risk itself the cellular service

provider has to indemnify himself vide his purchase orders that he is not responsible for any standard laws that the

design contractor may violate, whether they are labor laws or laws governing structures in that region and national

building codes. He also indemnifies himself against injury to any of the workers of the design contractor during the

process of conducting the survey. The client also indemnifies himself against any false assumptions that the consultant

may make in the designing of the project facility. In our project the consultant had to make various assumptions based on

the standard facts regarding the land strata as the land was such that it was not possible to collect site data using normal

methods.

The main risk involved in the gestation stages relate to the costs being incurred on the narrowing down on a suitable land

for erection of a mobile tower. There is a high probability that the land may be dropped from the list of approved sites by

the client due to practical considerations like lack of proper approach road, etc. Even if a decision is taken to develop and

implement the project further, there is a possibility that the costs incurred at this stage may simply keep an increasing and

may occur again at the developmental stage. There may be instances where the landowner may back out of the proposal

given to him by the client.

 A prelimnary study should be undertaken regarding the impact of the installation of the tower in a particular area, the

extent of hardship it may cause to people living there. There is a possibility that the owner of the building or land where

the tower has been installed will not allow access to the cellular service provider for maintainance purposes in spite of the

fact that he is receiving rent for the piece of land occupied by the client. This he does as he suffers harassment when the

client's engineers come for maintenance work. He faces the risk that the building or landowner may discontinue the

arrangement due to adverse effects of the tower on human beings.

 A prelimnary study of the engineering requirements and feasibility of the project being sought to be undertaken should be

made. There may be a possibility that a ground based tower may not be suitable on the land earmarked for the same.

The soil conditions on the land may not be conducive to erection of a tower of a particular height. The orientation of the

tower that is required to be provided by RF point of view may not be obtained due to practical conditions prevailing at site.

This risk is the totality of all risks that relate to the financial developments external to the project that are not in the control

of the clients. This risk is common to all the parties to the project. These risks include: 1)risks associated with the

fluctuations of foreign exchange rates. 2) risks associated with the devaluation of the local currency. 3)Risks associated

with the non-convertibility or non-repatriation of foreign exchange from India, and 4)Risks associated with the fluctuations

in interest rates. In our case this risk was prevalent as foreign investment was brought in by the client for the project.

Political risks are a bundle of distinct risks that can include not only political factors but also administrative, social and

economic factors. Political risks associated with a project are closely evaluated as they are generally outside the control

of the parties to the project, other than the government to a certain extent. But even the government fixing the policies of 

the telecom industry do not have control over all the categories of political risks. It should be kept in mind that many of the

political risks arise from the possibility of arbitrary action by the government and altering the framework on which the very

foundation of the project rests. The main categories of political risks include

Risk of political instability such as riots, revolutions, coup d'etat, terrorism, guerrilla warefareWar, whether declared or undeclared.

International sanctions

Expropriation

Nationalization

Creeping expropriation (discretionary regimes, excessive taxation, import restrictions, refusal to allow or 

provide for collection or review of tarrifs, etc)

Failure to grant or renew approvals and Excessive interference in the implementation of the project, thereby

causing severe prejudice to the concessionaire. (in this case the TRAI)

These risks are regarding the events that are outside the control of any party and cannot be reasonably prevented by the

concerned party. These risks generally arise due to causes extraneous to the project. The defining of force majeure

events include:

National force majeure events comprise all events that can be submitted to natural conditions or acts of god

such as earthquakes, floods, cyclones and typhoons. These risks shold be shared equally among the parties.

Direct political force majeure events are attributable to political events that are specific to the project itself such as expropriations, nationalization

Indirect political force majeure. Events are those that have their origin in political events but are not project

specific such as war, riots, etc.

In our case this risk was considered to the extent that a storm could disrupt operations of tower erection

during the construction stage and that would lead to loss of life and property.

RISKS HANDLED BY EACH OF THE PARTIES TO THE PROJECTRisks from the perspective of the cellular service provider Revenue Risk

Design Risk

Costs as the main risk

Social impact

Technical feasibility

Financial Risk

Political Risk

Force Majeure Risks

Construction risks

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The construction risks are essentially a bundle of various individual risk factors that adversely affect the construction of a

project within the time frame and costs projected and at the standards specified for the facility. Construction risks

generally relate to:

Risks related to the availability of land for the project

Suitability of the land for the construction of the project facility

Delay in completion of the construction

Cost overruns in supplies, transportation, machinery, equipment, new materials, etc.

 Availability of the basic infrastructure required for the construction of the facility such as water, electricity, etc.

 Availability of workforce

Occurrence of force majeure events, and

Failure of the facility to meet the performance criteria and standards specified.

In our project this risk was very important as all the above mentioned factors could go wrong during theproject.

Operating risks are similar to the construction risks. They are a bundle of risks associated with the operation of the

infrastructure facility. Operating risks generally relate to:

Operating cost overruns

Risks related to obsolescence

Risks associated with compliance of specified performance criteria, quality and quantity (as the case may be)

Force majeure risks and

Risks associated with the inability to comply with the maintenance standards and availability of funds required

for the operation and maintenance of the facility

The main concern of the project contractor would be to ensure that the contract for lease of the piece of land between the

client and the landowner are without any legal hindrances i.e. the title of the land is clear and no other claimants will comewhen he is carrying out the erection work of the owner. He is concerned about the fact that he does not become a basket

for storing all the risks simply on the basis that it is obtaining a commercial return. In our project there was a constant

danger that the land acquisition team had not done their work properly and that the title of the land was not clear but still

the client had to choose it as his radio frequency team had shortlisted it.

Each obligation each risk and each uncertainty has an attached cost. The aim of the contractor should be to ensure the

project can be determined and controlled in a certain manner. In our project the contractor was not paid any initial amount

for mobilization and he had to do all the initial investment on his own. Hence it was very necessary that he controlled the

costs that he incurred.

The project and the documentation should be capable of providing an adequate return to investors in the project. This is a

universal necessity in order to justify any private investment in any venture. In our project the contractor had to arrange

for finance on his own at a certain cost to him and hence he would expect that he earn a certain percentage more in

doing the work than the rate of interest he has to pay funds to execute the work.

The documentation in relation to the project should be such so as to enable the passage of various risks that are not

within the control of the contractor but it has been allocated to it under the main concession or license. The contractor 

should not be straddled between the various documents with risks it has no control over or is not capable of absorbing.

Thus the risk allotted under the contract to the contractor should flow down to the various sub-contractors under the

relevant documents with the sub-contractors. In our case there were no sub-contractors and hence the contractor had to

bear the risk on his own.

This risk is not in control of any party to the contract and the contractor like the client is exposed to the same risks as the

client. This risk is similar to that faced by the client.

Here the contractor is exposed to the vagaries of competition. Since there would be many contractors interested in doing

the work for the client, it is necessary that the tendering and bidding process be as transparent as possible. The

contractor is however at times exposed to nefarious dealings of a coterie of contractors who collude with the clients for 

the purpose of getting the work thus leading to rigging of the tendering process.

In our project there was a great deal of transparency in the tendering procedure and three aspects were considered

important by the client in awarding the contract, one being the contractors past experience in doing such works, secondly,

his price bid and thirdly, his financial strength.

This risk faced by the contractor is similar to that faced by the client. In our case, the contractor was paid after the work

was carried out and he was given no advances for his mobilization, etc. This resulted in him resorting to taking finance

from lenders at a cost. He would then pay off the debts when he got paid by the client. In such cases the timing of 

payment made by the client plays a very important role and the contractor must make the payment terms clear before he

can take up the contract.

Physical risks relate to the ground conditions, natural conditions, adverse weather conditions, physical obstructions and

other physical conditions that would adversely affect the implementation of the construction activities at the project site. It

happens at site that the ground conditions are not what the consultant has assumed in his design. In our project this risk

was not faced by contractor as things were laid to rest in the consultant's report.

The construction risk relate to the factors affecting the very ability to undertake construction activities like availability of 

resources, industrial relations, safety during construction, quality of raw material, workmanship, delay in supplies, strikes

by transport operators, shortage of material required for the project construction techniques, failure to comply with

construction milestones, cost of construction, etc.

The design risks relate to, as the term itself suggests, the risks associated with the design of the project facility. These

relate to incomplete design, design life, availability of information, compliance with standards, completion of design,

viability of design, etc. In some cases even there may be a change of the standards being followed in designing such

project facilities. The contractor in his contract with the client indemnifies himself against any errors made by the

consultant by stating that the erection has been done based on the drawings supplied by the contractor.

Operating risks

Risks from the perspective of the contractor Ability to implement the project in a commercially viable manner 

Certainty of Costs

Return of investment

Distribution and Management of Risks

Force Majeure Risks

Providing a level playing field

Financial Risk

Physical Risks

Construction risks

Design Risks

Risks from the perspective of the consultant

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Posted by Amarpal Kaur at 05:53  2 comments:

Labels: PROJECT RISK MANAGEMENT

of the risk.

The main principle for evaluating an adequate allocation or risks is that the party which is best placed to control or 

redress the risk or the circumstances that may arise if the risk occurs should be allocated the risk.

Thus we see that risk can be managed, but to do so, requires a deliberate and structured approach. A pragmatic

approach to risk management should be followed depending upon the project success depends ultimately on a

combination of honest intention, rigorous analysis and professional judgement

1. Project financing in corporate sector by C.G. Karandikar / G.M Dave

2. Construction Finance management ( NCP 29 ) by NICMAR

3. Project formulation and Appraisal ( PGPM – 21) By NICMAR

4. Website: http:/indiabudget.nic.in

5. Website: Census of india

6. NSS 63rd Round ( July 2006 – June 2007)

CONCLUSION

References:

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PROJECT MANATEMENT - 1: POWER PLANTS & ENGINEERING

Enhancing the level of energy consumption, particularly in less developed and developing countries, is a global

challenge. 20% of world population living in industrialized countries consumes 60% of energy and remaining 80% of 

population has to manage within 40% of total energy. This has obviously resulted in wide disparities between the

standard of living and quality of life of high energy consuming countries on one hand and those who do not have the

opportunities of adequate access to energy on the other. It is precisely for this reason that development of different

sources of energy and increase in its consumption has become a priority agenda of all the developing countries.

In the light of the above, prepare an assignment on how to solve the problem of energy deficiency in India by alternate

sources of energy.

India is one of the five fast developing countries.

Energy is the primary and most universal measure of all kinds of work by human beings and nature. Whatever happens in

the world is only the expression of flow of energy in either of its forms. Energy is a crucial input in the process of 

economic, social and industrial development. Energy consumption in the developing countries is increasing at a faster 

rate. As conventional energy sources are depleting day by day, utilization of alternative energy sources is the only

solution.

India has made rapid strides towards economic self reliance over the last few years.

 Although we have seen an impressive increase in installed capacity addition, from barely about 1,350 MW at the time of 

independence (1947) to about 160,000 MW today, over 90,000 MW of new generation capacity is required in the next

seven years. On the energy demand and supply side, India is facing severe shortages.

The increasing appetite for energy that has developed in the recent past has been further complicated by rapidly

diminishing conventional sources, like oil and coal. To further add to the problems of increased demand and constrained

supply, there are serious questions about pursuing a fossil fuel-led growth strategy, especially in the context of 

environmental concerns. The challenge facing a developing nation such as ours is to meet our increasing energy needs

while minimizing the damage to the environment.

 Alternative energy options enable local institutions to manage their own energy needs and thus provide rural

development opportunities. This situation encourages decentralized decision making, which has far-reaching implications

for the governance of a community. In addition, dissemination and popularization of energy-efficient devices and

alternatives to conventional fuels can do the following:

1. Provide better lighting. Better lighting enables the poor to stretch their period of economic activity; their children

can help them in daily chores and then study in the evenings.

2. Help the environment. Efficient use of conventional sources of energy or use of renewable energy helps save the

environment from further degradation and gives it an opportunity to regenerate.

3. Provide sustainable fuel systems. A-forestation and agro forestry, combined with the introduction of energy-

efficient devices, can help to create a sustainable fuel-use system within the rural community and sustain the

ecological balance of a region.

4. Benefit women. Lower dependency on fuel wood and other household fuel sources reduces the drudgery of 

women by shortening or eliminating the distances they travel for fuel collection. The improved cook stove, for 

example, has been associated with an average net annual saving of seven person-days of labour a year in India.

5. Benefit human health. Use of improved cook stoves and biogas plants, for example, helps reduce or eliminatehealth problems associated with using conventional cook stoves, including respiratory diseases and eye

problems.

6. Enhance income. Alternative energy sources can provide local employment opportunities through direct use of 

energy in small-scale industry and agriculture, through construction, repair, and maintenance of energy devices, or 

through the sale of energy to local utilities. In India, for example, biomass gasification systems are used to dry

horticulture produce (such as large cardamom and ginger). Another example is the use of solar water-heating

systems to meet the hot-water demand of hotels and hospitals.

Assignment

INTRODUCTION

BENEFITS OF ALTERNATIVE ENERGY OPTIONS

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Wind energy

Solar energy

Biogas / Biomass

Energy From Waste

Other alternative sources of energy such as fuel cell, hydrogen energy, tidal, geothermal, energy

management, etc

 

THE MAJOR AREAS OF INTEREST IN ALTERNATIVE ENERGY

ENERGY SCENARIO: Supply and Demand

Fig1: Sources of forms of energy supply

Fig 2: Demand

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Table shows the status of renewable energy technologies in India.

India's energy Balance

Conventional energy supply scenario

Non-conventional energy supply scenario

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only 4.5 percent of the total installed generating capacity from all available power sources in India Wind power alone

accounts for 2,483 MW, which makes the nation’s wind energy program the fifth largest in the world. The features of wind

energy that makes it attractive are zero fuel costs, and quicker benefits and usefulness for sustainable economic

development. Gross wind energy potential in the country is estimated at 45,000 MW, and the states with high wind power 

potential are Tamil Nadu, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Kerala, Rajasthan and Madhya Pradesh.

The development of infrastructure facilities, will expedite the process of economic development. Energy is the most

crucial input for power generation projects and this will certainly contribute to the socio-economic development of the

country. Even after rapid industrialization, India is still dependent on agriculture, which is the backbone of Indian

economy. To increase the agriculture production irrigation facilities, for which electricity is needed, have to be installed.

Rural electrification is very essential for the social development. Energy generation by wind reduces the generation cost

and will help in balancing the cost of energy.

Wind energy is pollution-free as wind fans have potential to reduce CO2 emissions. Wind energy is inexhaustible,

environment-friendly, emits no pollutant? or waste heat and needs no cooling water.

India is one of the few countries in the world that has made significant attempts to harness these indigenous energy

sources.

Wind power potential of the country is estimated to the tune of 20000 MW. By the end of 20th century energy production

through non-conventional energy sources is about 6000 MW through biomass, followed by 5000 MW from wind energy

and 2000 MW from solar energy. Of all these sources, wind power is found to be most cost effective and economically

viable. In collaboration with Pioneer Asia Wind Turbines, a division of Pioneer Asia Industries, Chennai, is offering 850 kw

wind turbines in India. An independent wind farm developing in India is also proving to be successful with the

achievements of Chennai-based Indio Wind Energy Ltd.

 A special mention has to be made about, Muppandal in Tamil Nadu, which has the highest number of wind farms in Asia

and the third highest in the world. Its highest capacity utilization of 42% has been achieved in a commercial project

followed by Jogimattic in Kamataka. The industry average is 20%.

Based on the capabilities the ministry of non-conventional energy sources, it is planned to get an additional 15,000-MW

wind power capacity during the 10th Five Year Plan. Faster growth of wind power generation in the country is necessary

to dose in the gap between the real and potential, as envisaged by wind industry and environmentalists.

Gujarat is one of the many potential states in India for development of wind power projects.

There are 18 wind-monitoring stations in operation and 12 sites have been identified with annual mean wind speed of 18

KMPH (Kilometer per hour) and above. Many companies are engaged in the field of manufacture and installation of Wind

Turbine Generators. NEPC MICON Ltd, a Chennai based company is the pioneer and leader in India for wind energy

technology. The company has created wind farm of 178 MW with 711 Wind Turbine Generators and has created Asia’s

largest wind farm Another company, which is harnessing the wind for power is Windia Power Ltd, a joint venture company

promoted by Weizmann Ltd. and Ned Wind Rhenen of Netherlands. They mainly manufacture and market Turbine

Generators (WTGs) in India.

Some of the world’s most prominent names in wind power industry like NEG, Micon, Vestas, Enercon, Ecotechia, GE

wind etc. are also in India with fully owned subsidiaries or as joint ventures with Indian partners.

Here special mention has to be made of the Project Pawanshakti (means wind power) in Gujarat. Pawanshakti is the joint

venture of Indian initiative and expertise with Danish technical and financial assistance. With the help of Danish

International Development Agency (DANIDA), Department of Non-conventional Energy Sources, Ministry of Energy,

Government of India (DNES) and Gujarat Electricity Board, the Gujarat Energy Development Agency has executed the

project in a record time of eighteen months. It is situated in Lamba village, 50 km north of Porbandar on the Saurashtra

coast in Gujarat State. Project Pawanshakti with its sophisticated technology can easily provide power to irrigate 10000

hectares of land. The project generates 20 million units of electrical energy every year.

 A notable feature of the Indian programme has been the interest among private investors/ developers in setting up of 

commercial wind power projects. The gross potential is 45,000 MW (source MNES) and a total of about 1869 MW of 

commercial projects have been established until March 2003. About 8.8 billion units of electricity have been fed to various

State grids from wind power projects.

India is blessed with abundance of sunlight, water and biomass. To accelerate the momentum of development and large-

scale utilization of renewable energy sources, the Indian renewable Energy Development Agency Limited (IREDA) was

incorporated in March 1987 under the Ministry of Non-Conventional Energy Sources (MNES), Government of India. By

2010, IREDA hopes to add about 3000 MW of power generation capacity through renewable energy projects it funds.

The breakup of projects implemented in prominent wind potential states is given in the Table

Present Scenario of Solar Energy in India

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More and more possibilities are being explored in environment friendly energy fields. IREDA estimates a potential of 

5,000 trillion kwh per year of the solar thermal energy.

3 million square meters of solar thermal systems have been installed providing 15 million liters per day of hot water. In

addition, there are 372,293 solar cookers. The public sector units CEL and BHEL (Bharat Heavy Electrical Ltd) are the

major manufacturers of solar cells in India. In the private sector, RESPV and TATA-BP Solar (India) are the major players.

In addition, Pentafour Solec Technology Ltd is a new and promising entrant in the field, setting up a solar cells

manufacturing line of 3 MW per annum. Production efficiencies of 13 percent are being obtained for cells manufactured in

India for single crystal silicon.

The demand in India of single crystal PV modules in 1994 was 5.6 MW. The Indian Department of Telecommunications

still forms 70 percent of the domestic market.

There are also 954 PV community lights/TV and community facilities; 85,000 PV domestic lighting units/Lanterns; 32,872PV street lights; and 1,373 PV water pumps. India receives a good level of solar radiation, the daily incidence ranging

from 4 to7 kWh/m2 depending on location. Solar thermal and solar photovoltaic technologies are both encompassed by

the Solar Energy Programme that is being implemented by the MNES. The

Programme, regarded as one of the largest in the world, plans to utilize India’s estimated solar power potential of 20

MW/km2 and 35 MW/km2 solar thermal. The country has also developed a substantial manufacturing capability,

becoming a lead producer in the developing world.The principal objective of the Solar Thermal Programme is the market

development and commercialization of solar water heaters, solar cookers etc.

Solar water heating has been applied in a wide variety of circumstances from individual residences to hotels to industrial

processes.

The MNES has been promoting the sales of box solar cookers since the early 1980’s. In

March 1999 the world’s largest Solar Steam Cooking System was installed at Mount Abu, Rajasthan. It is a hybrid system

with back-up oil-fired boilers and is designed to prepare food for 10 000 people. There is also a separate Solar Buildings

Programme aimed at creating an awareness of the potential for solar-efficient buildings. The passive solar design concept

is a climate-responsive architectural practice that is now being researched developed and implemented throughout thecountry.

 A Solar PV Programme has been developed by the MNES for the past two decades, aimed particularly at rural and

remote areas. The MNES has instituted a plan for establishing solar PV power generation of 1 MW for use in specialized

applications, voltage support at rural sub-stations and peak shaving in urban centers. At the present time 15 grid-

interactive solar PV power projects have been installed in seven states and further 10 are under construction.

Solar water heaters (SWHs) have proved the most popular so far. A conservative estimate of solar water heating systems

installed in the country is over 475000 sq. meters of the conventional flat plate collectors. Solar water heaters are cost

competitive in most applications when you account for the total energy costs over the life of the system.

Solar photovoltaic (PV) for decentralized power supply are fast becoming popular in rural and remote areas. Today, solar 

PV systems are at work converting the radiation of sun directly to electricity. PV generated power has three main

advantages over all other types of remote power generation- free inexhaustible power, simplicity and low maintenance.

PV power is practical and extremely handy where access to conventional electric lines is difficult and costly, and for low

and portable power needs.

The future is bright for continued PV technology dissemination around the world. PV technology fills a significant need in

supplying electricity, creating local jobs and promoting economic development in rural areas, while also having the

positive benefits of avoiding the external environmental costs associated with traditional electrical generation

technologies. People who choose to pursue a renewable and sustainable energy future now, are the ones showing the

way for the future. Solar energy is presently being used on a smaller scale in furnaces for homes and to heat up

swimming pools. On a larger scale, solar energy could be used to run cars, power plants, and space ships.

Over the last few years it has been observed that present and up-coming trends in industrial as well as business

demands, strenuous competition, growing population, mechanized living styles are causing increase in energy demands.

 Advanced technological developments, which are changing at a very fast rate, are adding to these demands substantially.

The ease of use and low cost, petroleum-based fuels gained dominant position as energy sources over a long period.

Due to the continuously increasing consumption of these energy sources, the natural stocks of these sources haveconsiderably reduced with time.

Hence these sources have lost economic leverage leading to increase in the use of alternatives, such as biomass, solar 

and wind energy, which have become attractive

It is observed that much of the energy is wasted in various ways which results in decrease of the energy sources without

any service to the mankind. A few of these are,

• Poor road condition results in more fuel consumption, more wear and tear of vehicles, higher maintenance cost of 

vehicles, more replacement of spare parts, more accidents etc. Accidents alone result in further energy loss besides

other serious losses. This energy loss is continuous and very big.

• Poor maintenance of machinery and equipments in industries, other companies, offices etc. result in wastage of energy.

One can imagine total energy loss in this form.

• Municipal Corporations, Nagar Parishads and Gram Panchayats work include electricity and water supply. There are

many reasons we can observe how a great amount of energy is wasted. Water supply needs a huge energy right from

construction of dams till it reaches the consumer. Hence waste of one drop of water is a great energy loss. Same is the

case with electric energy. In the year 1990 in a seminar on energy crisis, one paper was presented which stated that in a

city the cost of electricity wasted due to early switching on and late switching off of street lights was Rs. 64,00,000.

Hence, total wastage in this type is of the order of crores.

• Wastage of energy in the domestic use is of a high order. Much of the energy is lost due to misuse or non-required use.

• Wastage of energy in the form of electricity and water is of a very high order. Along with usual known wastage there is a

great deal of indirect wastages. For example poor quality seeds will consume energy but will not give expected yield.

Conclusion

ENERGY MANAGEMENT -THE BIGGEST ENERGY SOURCE

Present scenario regarding wastage of energy

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Labels: PROJECT MANAGEMENT 1 POWER PLANTS and ENGINEERING

There are so many such practical losses which call for better energy management. Due to the continuous increase in

consumption of these energy sources, the natural stocks of these sources have considerably reduced with time. Hence

these sources have lost economic leverage leading to increase in the use of alternatives, such as biomass, solar and

wind energy, which have become attractive.

To make a system almost wastage free, right from initial stages the system should be developed adopting Design For Six

Sigma (DFSS) methodology. Steps involved will be-

Define: details including purpose, elements involved like machineries, transmission, distribution, use should be minutely

decided.

Measure: Details of measurement system in all the phases should be decided.

Analyze: The elements of the first two phases be thoroughly analyzed so that the system could effectively designed.

Design: Based on the above phases system should be completely designed.

Verification: Design is to be verified using problem redefinition technique and after practical verification finalimplementation is to be done.

Methodology to use energy

Use of energy should also be based on Six Sigma methodology.

Define: Define the purpose of energy use clearly.

Measure: Measure the performance.

Analyze: Analyze the performance.

Improve: find ways to improve the performance.

Control: decide the parameters to be maintained for the future and see that they are within the control limits.

 Along with the methodologies suggested here overall planning of the energy sources should be done using these

methodologies like which source of energy is to be adopted for which purpose.

In hilly areas wind energy may be the best choice. Solar energy is best option for streetlights.

Biogas energy may be the best alternative in remote villages.

 Adoption of these methodologies will definitely lead to cost effective use of energy. It will also help conventional sources

to last long and the alternative ones be the most useful to the mankind But this definitely needs a complete cultural

change. Let us all work towards making it possible and make India more energetic.

1. M.L. Mckinney and R.M. Schoch “Environmental Science” -Systems and Solutions Web Enhanced Ed. 1998, Published

by Jones and Bartlett Publishers.

2. W.P. Cunningham & B.W. Saigo “Environmental Science” 1999 Published by WCB/McGraw- Hill “Down to Earth” -

Science & Environment fortnightly Various Issues

3. “Indian Express” Newspaper -Wind Power Supplement

4. Website: www.windpowerindia.com and other related websites

5. Ashok V. Desai, “Bioenergy”, Wiley Eastern Ltd. New Delhi, India, 1990, pp 6.

6. Kai Yang- Basem El- Haik, “Design for Six Sigma, A Roadmap for Product Development,” Mc Graw Hill, New York,

2003, pp1-35

7. Greg Brue, “Six Sigma for Managers,” Tata Mc Graw – Hill Publishing co Ltd. 2002, PP 79-131

Methodology to develop energy conversion system

Conclusion

References

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Sunday, 9 September 2012

CONSTRUCTION QUALITY, SAFETY AND ENVIRONMENT

You have been selected as a project manager for a prestigious high rise building in Mumbai, which will be housing very

rich personalities from industry and film world.

Your company management has asked you to formalize Quality Management System (QMS) for interior finishes,Plumbing and prevention of rainwater seepage so that the overall quality standard and image of company is raised.

Construction is one time activity. It affords no second chance of modification, repair or rejection once the construction

work is completed.

With the increase in complexity and the size of construction operations, the responsibility for ensuring quality has

gradually shifted from worker to supervisor of inspection and later to the quality control department.

It is well known fact that the quality can not be constructed. It has to be designed in to a project system. QMS therefore

starts from the design stage itself.

QMS is the responsibility of the project authority. The owner or his representative formulates the policy, determines the

scope of the quality planning & management.

The quality of construction depends upon right material used. the correct method followed and produce end product of 

acceptable performance. The means of quality control are tests, inspection, supervision and analysis of data etc. Quality

Assignment

INTRODUCTION to QUALITY"The level of quality of a civil work (or part of it) can be measured by the degree of fulfillment of 

its construction specification and standards with in time.

STANDARDS & SPECIFICATIONS for making & transport concrete

CONCRETE MAKING STANDARDS & SPECIFICATIONS

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tests are conducted in laboratories and inspection and supervision are carried out on the site and data analysis done by

experts in the office.

The standards and specifications for concrete and various ingredients are universally standardized and they are required

to be in conformity with same. Indian Standards IS for concrete and its basic ingredients viz cement aggregate coarse

and fine, water admixtures and various of concreting, its placement and final acceptance should be as per IS

specification.

Raw material for concrete is Cement, Aggregate & Water. Now all the standards and specifications for making of a

particular concrete are according to ASTM or BS or IS.Testing is to be done at each level for quality control i.e. in the

following order:

Ø Setting time

Ø Soundness

Ø Strength

Ø Fineness and grading

Ø Chemical composition

Ø Specific Gravity

Ø Heat evolution

Ø Water retention

Ø False set

Ø Adulteration

Ø Photographic Examination

Ø Grading & surface area

Ø Bulk unit weight

Ø Specific gravity

Ø Absorption and surface moisture

Ø Chemical stability

Ø Resistance to freeze and thaw

Ø Abrasion resistance

Ø Crushing

Ø Impact value

Ø Sampling aggregate

Ø Organic

Ø Inorganic

Ø Sulphates

Ø Chlorides

Ø Suspended matter

Ø Hydrogen ion concentration

Ø Seawater

Ø sugar

The following European standard test methods for concrete have already been published as BS ENs:-

Part 1 : Sampling

Part 2 : Slump test

Part 3 : Vebe test

Part 4 : Degree of compactability

Part 5 : Flow table test

Part 6 : Density

Part 7 : Air content – Pressure methods

Part 1 : Shape, dimensions and other requirements for specimens and moulds

Part 2 : Making and curing specimens for strength tests

Part 4 : Compressive strength – Specification for testing machines

Part 5 : Flexural strength of test specimens

Part 6 : Tensile splitting strength of test specimens

Part 7 : Density of hardened concrete

Part 8 : Depth of penetration of water under pressure

Ø Moisture Content

Ø Segregation

Ø Setting time

Statistical Quality Control is based on data calculated with all the specifications so that to get the relevant workers either skilled in different works or unskilled to transfer the load etc. Which in return would give quality in the project.

Preparation of inspection and checklists are very important at each stage to control the quality work in time also. If no

inspections or checklists are prepared then there may be a blunder in construction either in specification or in structural

details.

SPECIFICATION:

Concrete Making:

Cement test:

Aggregate test:

Water test ( for impurities):

Concrete testing

BS EN 12350 Testing fresh concrete

BS EN 12390 Testing hardened concrete

EN 12390 : Part 3 Compressive strength of test specimens has been approved at second formal vote and will be

published by BSI in due course.

CONCRETE TRANSPORTING STANDARDS & SPECIFICATIONS:

SQC:

INSPECTION & CHECKLISTS:Why are they:

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Labels: CONSTRUCTION QUALITY, SAFETY AND ENVIRONMENT

are prepared for the record of inspection done at different stages. To prepare checklists, is an essential and legal for any

type of work. Checklist of all services – sanitary fittings, Electrification work- wiring, surface and conduit wiring, Air 

Conditioning, cable laying, Ducting.

Use of an inspection or checklist could be after a short time or along time period if any uncertainty happens. At that

moment the authorities can calculate the conditions that what could have been happened on disaster time and that where

was the fault.

There should be regular inspections and preparation of checklists at the start of the event, then in midway of the activity

and at last and at the end of the event.

 Assurance of quality is done at managerial level with the use of MIS having support system at each level. For the given

project the following authorities would give the assurance:

Ø Architect

Ø Interior designer for specifications

Ø Civil engineer (Structural)

Person/Officers- their qualifications & experiences:

Building In charge with a min qualification B.E. Civil and an experience of 10 yrs in the building industry

Site Engineer  with min qualification as diploma in civil engineering

Surveyor  with min qualification as diploma in civil engineering

Resident Architect with min qualification as B.Arch.

Every day development at the site for the various jobs need to be checked as per the bar chart submitted by the builder at

the beginning of the activities. Everyday the surveyor will go at the site and measure the various quantities of the items

/jobs done. After noting down he shall handover the same to the site engineer employed. Site engineer shall accordingly

go to the site, check the quality of work and can recheck the detail of the quantities submitted to him by the surveyor. This

shall continue for a week .At the end of the week this information shall be made in a tabular form and shall be sent to the

building in-charge duly signed by the surveyor and the site engineer. Along with this report will also be sent mentioning

the bar chart followed for the jobs to be done.

 A representative from the architects firm (Resident architect) shall visit the site at least on the alternative days. Resident

architect will check that the details of the design submitted by them, are being followed or not.

Reporting to whom: The surveyor at the site shall submit the detail of quantities to the site engineer.

The site engineer shall make his weekly reports of the works done and the requirement of the drawings needed at site

and submit it to the building in charge.

The building in charge shall accordingly make his own summery of the project and shall instruct the builder and thearchitect according to the requirement. He shall be visiting the site often or make surprise visits.

Testing of incoming materials: already discussed in specifications and standards for making concrete.

Civil engineering projects and construction companies have begun to attract the attention of social scientist and

management experts. Social scientist argue that it takes more than just SQC and technical skills to produce quality. It

requires the restructuring of the project organization the way they think, work and interact. Management expert suggests

that quality monitoring evaluation and management information systems should be built in to the construction process at

all stages from design to execution.

NICMAR study material

PMBOK

Checklists

How much use is made of them:

In my experience & opinion:

HOW TO ASSURE QUALITY:

CREATING QUALITY ASSURANCE ORGANISATION/UNIT AT THE SITE

Functions & Duties:

 

Methods of quality assurance:

In process inspections & testing: for the quality assurance of the various jobs being done at site by regular visits of the

site engineer and the building in charge at different stages.

Testing at finishing stages: At finishing stage for all the different activities, one needs to check the alignment of the

internal finishes with the walls and floors respectively. The slopes and the finishes are in compliance with the

specifications submitted by the construction agencies.

Penalties for non-compliance & incentives for compliance: As I have already mentioned earlier that the bar chart for all

the jobs to be done shall be prepared in the beginning of the project. After all the discussions of the builder, architect &

building in charge, a flow chart shall be made duly signed by all showing that which job is to be completed at which time.

While the construction is going on if the building in charge notices the delay in any activity will send a notice to the

concerned agency. It then becomes the duty of the agency to look into the delay and cover up till the next stage of the bar chart. Now if this agency fails to do so, the building in charge/employer shall have all the right to impose the penalty

clause according to the agreement.

Conclusion

Books Referred:

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Saturday, 8 September 2012

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PROJECT PLANNING AND CONTROL

 A New International cricket facility is to be constructed outside a mega city over a piece of land. Facility to include:

1. Capacity of Spectators : 80,000

2. day/Night play facility

3. TV Camera platform in six directions

4. Safety of players from spectators

5. Pavilion for VIPs to sit : 300 seat

6. Parking (adequate space for all above)

Time available is 16 months including monsoon. Cost of construction need to be recovered in 5 years. Average cost of 

Ticket is 100/-. Approximate 4 matches per year.

Submit the Project Report:

1. Identification of Project

2. stages in development of Project

3. work break down structure to undertake the project

4. Milestone and CPM chart for corporate control

5. Cost of project.

The primary thing about the any project is its necessity as well as its feasibility. Now the necessity of the project like a

cricket stadium is created by the people of the city as well as a mega city demands a cricket stadium in its vicinity. The

feasibility demands a deep thought like for a location of stadium i.e.

(a) Where can the plant be located?

(b) What is the present and future projected cost of resources?

(c) The sources for Financing of the project?

(d) Are there enough raw materials as well as skilled and productive labour available in the area or can be created?

(e) Are there adequate electricity and communication facilities available?

(f) What political or institutional factors may cease or impede the development and operation of the facility?

(g) What will be the sociological, economical and environmental impact of entire project on community, like mushrooming

of good hotels and restaurant in the vicinity of the stadium?

In short, what do all these factors taken as a whole mean for the technical and economic feasibility of the project?

The project can be defined as,” Organization and performance of resources such as men, machinery, money, material,

space, and technology into logical sequence of activities.’’ So, when we deal with the project, we are primarily dealing

with resources like time, money, equipment, technology, space usage, material and last but not least people. We have to

organize these resources and platform activities in their logical sequence to complete the project. So one thing must be

clear in one’s mind that whether it is to construct a small house or to construct a cricket stadium costing several crores of 

rupees or any other multi crore project of construction of Dam etc. the general pattern remains same.

Projects are usually a part of an overall strategic programme. A programme at the micro level comprise one or moreprojects. A programme is managed in a co-coordinated way to achieve its overall objectives through the implementation

of its projects.

Feasibility of the project is to the calculations

Internal money of the state would remain with in the limits.

City itself is an attractive place.

From conceptualization to implementation the stages in the development of construction projects fall into broadly

consistent patterns but in timing and degree of emphasis each project takes on its own a unique character.

Most projects start with a need to have a new facility long before designers start preparing designs and drawings of theprojects and certainly before field construction work can commence. Considerable thought goes into broad scale

planning. Elements of this phase include

(a) Conceptual analysis

(b) Technical and feasibility studies

(c) Environmental impact reports

 Architects and design engineers primarily handle these phases. Increasingly, however, the client operation and utilization

of Knowledge and field constructors’ experience are more strongly injected at this stage through direct participation and

stringent review procedures. There are two phase of engineering and design:

(i) Preliminary engineering and design

(ii) Detailed engineering and design

(a) Architectural concepts, like form of the stadium, capacity of the stadium, functions fully filled state of the all art facilities

etc.

(b) Evaluation of alternatives in regard to the ecological process, size and capacity.

(c) Economic feasibility studies : For instance of a high – rise building, the owner specifies the area he would like to

utilize. So, Architect will make preliminary planning of floor of the building required, taking into consideration all the

prevailing laws of the area. He will also go through requirement of general functional areas such as parking and service

areas and also overall design approach. Similar is the case of cricket stadium, here architect will make preliminary

planning for general site lay – out , form of the stadium keeping in mind the sitting facility , day- night facility with proper 

camera platform , proper entrances and exits for the manual as well as vehicular traffic with adequate parking facilities

etc.

Assignment

PROJECT IDENTIFICATION

Project ReportProject report is a basis for communicating what has been planned for the project. In this project I have assumed

the site in Punjab as there is no other such type of facility is available yet. Following are some important points

for the report;

PROJECT DEVELOPMENT PROCESS

Conceptualization

Engineering and design

(i) Preliminary engineering and design stages

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The process involves successively breaking down, of the project in to the parts that is the different type engineering

requirements such as structural design, HVAC, Electrical plumbing & other services for analyzing and designing the

structure in to its elements so that it complies with all the recognized standards of safety and performance. This is most

important for a project like stadium where people are very large in number and secondly due to the structure of the

stadium which should be column free and light weight as well as sound in aesthetic sense . so , a set of drawing and

specifications are prepared for use by the constructors covering civil, electrical , mechanical , interior drawings etc. as the

case may be.

Procurement involves two types of activities. One is to contract and subcontract to several parties for different types of 

work activities. These contractors and subcontracts make arrangements or supply of all men, materials and machines

required to complete the part of the work allotted to them . The other is to take responsibility to procure all resources to

complete the project.

It is the process whereby the Designer’s plans and specifications are converted into physical structures and facilities. It

involves the organization and co-ordination of all the resources time, money, material, technology, people, equipment etc.

The target will be to complete the project on schedule and within stipulated costs complying all the standards of quality

and performance specified by the designers, as in this case the total time allotted is 16 months including monsoon period.

Most structures and facilities of any significance involve commissioning phase . During construction large amount of 

testing is done, so as to be sure that all components function will individually and together as a total system. Electrical

and mechanical systems are tested, adjusted, corrected as required to bring them to a level to perform at an optimum

output, like in this case of stadium having a day/night facility all the electrical systems are tested repeatedly and it should

match the international standards.

This is the phase where we need maximum attention and here we lack which is the main cause for the failure of the

project. For instance PCA stadium, Mohali that is a state of the art cricket stadium but there is no regular maintenance,

but whenever there is a much of international standards a huge amount of money is expended for its renovation like

85lakh rupees were spend for the test match between India and England, so whenever the project is handed over to the

owner either to operate or utilize where he takes services of all production engineers, maintenance engineers, service

people and people of different trades as required to have a smooth functioning of the project over its lifetime.

The construction planning process is stimulated through a study of project documents. These documents include- but are

not limited to the available technical and commercial studies and investigations design and drawings, estimate of 

quantities, construction methed statements, project planning data, contract documents, site conditions, working

regulations, market survey, local resources, project environment and the client’s organization. The planning process take

in to the account the strength and weakness of the organization as well as the anticipated opportunities and risks.

(i) Planning is the creative and demanding mental activity of working out what has to be done, how , by when, by whom

and with what – ‘ doing the job in the mind .’ plans are not just pieces of paper . Plans represent the result of careful

though, comprehensive discussions, decisions and actions, and commitments made between people and contractual

parties.

(ii) Planning techniques form the planner’s toolbox. They assist in the analysis of the plan, organizing the information, and

have a crucial effect on the way in which the plan is communicated to others. Taken together, these to elements of 

planning produce “the plan” a strategy and tactics for the execution of the project. In terms of activities, time quantities,

resources and perhaps costs and values, now the point is how and by whom this planning and planning techniques use

to convert all these theories of planning and planning techniques in to a practical shape. Planners cannot plan without

managers. It is the manager’s task to plan: that is to decide on strategies and tactics, to break down the work to be done

into tasks and sub-tasks and to assign the responsibility for completing these tasks to individuals or organization. So in

short, planners and implementers should go side by side for any project and act as a team.

Planning can be described as a process of thinking in advance. It is based on experience, sound judgment and some

quantitative techniques. It deals with the future and as such there are bound to be uncertainties, which may cause

deviations from the target proposed to be achieved. So, one should not hope that everything will be fine, because plans

and schedules do not work by themselves. It is rightly said that we must plan the work first and then work the plan. So for 

working the plans and schedules effective controlling is necessary. “Planning is looking forward while controlling is looking

back.”

Project Control covers:-(i) Deviation: Deviations occur due to following reasons

While doing original planning and scheduling activity duration might have been over estimated or under estimated.

1. Some activities are delayed due to reasons beyond control like change in foundation condition, bad weather, monsoon

as in this case, non availability of certain resources, labour strike, break down of equipment etc. So covering these risks

the total time allotted to complete the cricket stadium is 16 months.

2. Natural calamities like floods, earthquakes, epidemic etc., festivals etc.

3. Addition deletion or major modification in the work by client.

4. Introduction of new material, equipment or construction techniques. It is necessary to review the actual progress

against the predetermined targets. By assessing the reasons of deviations and decide whether a new network is

necessary for the remaining work. If not, what is the effect of this deviation on the remaining portion or what remedial

actions are possible to retain the target date of completion unchanged.

It consists of review of the planning and scheduling at regular intervals. But for that updating, the information required will

be, period at which review is taken either in terms of days or weeks. List of activities completed and partially completed

with the period required to complete the balance of the activity etc. Now after getting the required updating should bedone at regular intervals, which depends upon magnitude of work, rate of progress etc. At short intervals as the scope of 

absorbing delays is limited as the period advances, for small projects. At certain stages such as foundation level, plinth

level, sub structure and super structure etc. Whenever new techniques or equipment are available , when work has

stopped for a long period for some reasons the updating of a project also helps in rescheduling of the activities which are

delayed or lagging behind so that the project can be completed within the stipulated time.

While preparing the network we consider the working days while on work sits there will be holidays such as weekly of day,

 (ii) Detailed Engineering and Design

Procurement

Construction

 Commission

Maintenance

PROJECT PLANNING & CONTROL

CONTROL

Updating Network

Calendaring the Network

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festivals etc. these holidays have therefore to be incorporated in calendaring the network.

Project control must be linked up with the cost. The objectives of the cost control are the method must give the program

of expenditure so that requirements of fund can be assessed. At the time of review we should have a clear picture of ,

actual expenditure incurred vis-à-vis program expenditure, actual expenditure vis- a vis the expected returns. In case

deviations, what are the reasons and what will be the estimated cost of remaining portion of the work . Improper Cost

estimation & Controlling can bring a project to a stand still , if the project is under budgeted the project will be stopped mid

way , similarly proper planning is to be done stage wise requirement of the funds for the various stages of the project &

the sources for the same

Project work breakdown is the division of the project into the small Identifiable activities or events with some milestones

also. These activities are also called as levels, which can be classified very well. For instance the activities of the cricketstadium are:

- Selection of land

- Preliminary design

- Final design & preparation of working drawings

- Selection of the vendors for the execution of the work & supply of equipments & materials

- Demarcation of the field area.

- Construction of foundation for the stands and other sitting areas.

- Construction of boundary walls.

- Construction of steps with proper risers.

- Construction of roof.

- Provisions of services application of wall, floor and ceiling finish.

- Completion of electrical and mechanical works.

- External works: drainage etc.

- Parking facility etc.- Structure for Lights.

- Road work.

- Testing & Commissioning of the Electrical Equipments.

- Testing & Commissioning of the HVAC system.

- Testing & Commissioning of the other services such as Fire Fighting, security system, fire detection system etc.

- Final Handing over of the facility to the client.

The project is divided into activities and events. In the preparation of the network for the project, the arrows indicate the

activities and events are identifiable instantaneous stages they are represented as Nodes in a network. So, arrows of the

network are joined in accordance with the interdependence of the activities, which they represent. In small and simple

work this interrelationship is obvious but in a large project it is necessary to establish it systematically. The Work

Breakdown Break Methodology involves the breaking down of the project into Major activities involved & further these

activities are broken into further smaller activities & so on. The interrelationship of the dependent activities is worked out

& a sequence of the execution of the activities involved is prepared, this interrelationship is represented in the graphical

from & is called as network. This project can be broken down into activities as Civil work, Electrical work, Plumbing worketc., further the Civil work can be further broken down into Foundation work, Superstructure work, Road work etc.,

similarly the foundation work can be broken down into layout, excavation, PCC, RCC etc & further these works can be

fragmented as RCC work will involve the following activities

- Preparation of form work.

- Cutting , bending , laying& binding of steel.

- Pouring of concrete.

- Curing.

- Removing of shuttering.

 

Once the Work Breakdown structure is formed, all the activities are assigned time duration and logically interrelationship

of activities is formed as the following activity can start how many days after the preceding activity

How to evaluate the total time taken to complete the project? In construction work, estimates of activity duration cannot

be anything other than approximation. In repetitive construction where the activities and trades follow in sequence, any

Cost control

PROJECT WORK BREAKDOWN

Pre Construction Phase

Construction Phase

Commissioning & Handing Over.

Work Breakdown Methodology

PART OF A WORK BREAK DOWN STRUCTURE

Assessing Duration

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delayed in the planned completion of an activity will result in the following trades waiting unproductively for its completion.

Therefore it is prudent to make some provision for late completion by planning a short delay or buffer between each

activity. For example in this case of cricket stadium , the monsoon period can delayed the project to complete according

to its actual planned completion so that’s why covering the risks there is a provision for late completion by planning a

short delay or buffer between each activity. So, 16 months of time to complete the stadium covers the short delay (either 

natural or due to human failure) as well as a little buffer between each activity.

Now what is this buffer stands for? The estimate of buffer time is related to the project manager’s assessment of the

reliability of the estimate of activity duration ; where the reliability is poor , large buffer must be used . Taking the case of 

foundation of a simple house,

 Activity; Foundation ---------------time taken 5 days

Buffer time ---------------time 2 days

Total time taken = 7 days .

So, project manager assess the total time for foundation as 7 days (not 5 days) including the delay period or buffer time .

The discussion above considered only the direct cost of activity (or project ). Actually activity ( project ) cost consists of 

direct and indirect costs. These comprise of the following components;

(i) Cost of material

(ii) Wages paid to labor

(iii) Expenditure on tools and equipment used on the activity.

(i) Supervision charges

(ii) Administrative charges

(iii) Interest n capital

(iv) Revenue due to early completion of work and loss due to delay.

Indirect costs is worked out per day of the project execution or it is allocated on the basis of certain stages of work

packages e.g. foundation, sill level, lintel level in the case of building or foundations substructure super structure,

approaches etc.

Indirect cost increases as duration increase and direct cost goes on decreasing as duration increases. Now in this case of 

cricket stadium given data,

(i) Capacity of spectators 80,000

(ii) Capacity of V.I.P stands 300

(iii) Time available 16 months (including monsoons)

(iv) Cost of construction to be recovered in 5 year

(v) Average cost of ticket is Rs.100

(vi)Approximate matches in a year is 4

So, total cost of the project:

Total earning of tickets for a single match if pack to full capacity =80,000 X 100

(Excluding any other earning received from sponsors or telecast right)=80, 00,000/-

Total earning in a year having 4 matches per year

=80, 00, 000 X 4 =3, 20, 00,000/-

Now as given earlier that the cost of construction to be recovered in 5 years,

So, total cost of the stadium =3, 20, 00,000 X 5 =16, 00, 00,000/-

So, a total cost of construction of stadium is nearly 16crores and total time taken to complete is in 16 month duration.

 After the preliminary planning of the project the detailed estimates of the cost is prepared for the project which involves

the land costs, project construction cost, fee for the consultants, indirect cost such as supervision cost, administration

cost etc.

Network is defined as the pictorial representation of the activities of a given project in the form of arrows, which form an

essential element of network. Arrow represents an activity, task of operation of the work since activity consumes

resources. Arrow has a directional sense, which can be represented by an arrow head it is used to indicate the generaldirection of flow of work. It is conventional to show arrows directing from left to right. Tail of arrow indicates the start of the

activity and its had indicates the completion of the activity. Beginning of completion of an activity marks a phase or stage

of work. This is represented by a suitable geometrical figure like circle, triangle and rectangle. This is known as event.

Events naturally do not consume any resource by itself. There is another type of activities, which do not require any

resources and which are basically imaging activities called dummy activities, these activities only show the

interdependency of the activities but doesn’t consume any resource.

Network can be developed in two ways,

(i) Preceding and following activities:

Some activities cannot be started unless certain activities are completed. For e.g. excavation of foundation must be

completed before foundation concrete is poured. These types of activities are known as sequential activities

(ii) Concurrent activities:

a few activities can be carried out concurrently. For e.g. excavation for foundation of four walls of a room can be started

simultaneously. Let us take the case of erecting steel framework (for lightning) on cement concrete foundation in a cricket

ground, the following operations are identified in the network:

Clearing and leveling the site.

Giving lineout.

Procuring material for concrete.

Procuring steel for foundation.

Excavation-1

Excavation-2

Costing activity

(a) Direct cost:

(b) Indirect cost:

CPM/ NETWORK ANALYSISNetwork elements

Development of network:

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Formwork foundation steel -1

Formwork foundation steel -2

Concreting-1

Concreting-2

Backfilling-1

Backfilling-2

Erection & painting of steel work

Clearing & leveling site

Preparation of ground& pitch

These are the general activities for the development of Master Control Network (MCN), however we can divide each

activity in to sub activity to develop a sub- network .e.g. concreting can be divided as conc. In foundation, in boundary

wall, in superstructure etc. the activities of excavation, formwork, concreting and backfilling are divided in to two parts tomake these activities concurrent to further reduce the time o completion and thus cost.

The logic table is as shown below:

 Activity no Activities description duration Preceding

activity

Following

activity

Concurrent

 Activity

 A Site clearing & leveling 30 B C

B Layout 15 B D C

C Procurement of material 180 V

D Excavation for  

foundation

45 B E,L

E Foundation work 60 D F,H,I,J L

F Waterproofing 21 E G H,I,J,M

G backfilling 15 F X

H Construction of  

boundary walls

90 E S F,I,J

I Construction of super  

structure

150 E K,N,P,R,T,U F,H,J

J Construction of toilets 60 E Q

K Services

work(electrification, AC,

plumbing)

90 I V G,N,P,R,T,U,Q

L Foundation for light

structure

25 D M E

M Fabrication of structure

for lights for d/n facility

90 L V F,H,I,J

N Construction of drains 100 I O G,K,P,R,T,U,Q

O Construction of Roads 120 N S V

P Construction of parking

area

90 I S G,K,N,R,T,U,Q

Q Finishing works in toilets 50 J S G,K,N,R,T,U,P

R M/S railing works 60 I S G,K,N,R,T,U,P

S Painting work 90 H,K,N,P,R,T,U

,Q

V O

T Structure of wel ded wire

mesh around the

Ground for safety of 

players

60 I S G,KN,P,R,U,Q

U Preparation of Ground

and pitch

150 I X G,KN,P,R,T,Q

V Installation of Gadgets 15 S,c W

W Commissioning of  

Services

20 V X

X Handing over 5 W

The project can be analyzed in a no. of ways, through precedence network and PERT/CPM networks. Precedencenetwork is the way of representing the project through the activity-on-node approach. In precedence network, an activity

is shown on the node, which is represented by a box. The precedence diagram is shown as a straight line, called

connectors, if an activity a is followed by another activity B, it is known as

Analysis Procedure

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