Question:
Discuss About The Construction Process A Particular Project?
Construction Project management is a type of professional service, which utilizes expert and professional techniques of project management skill. The Lend Lease company was formed by Dick Dosseldrop. The company achieved Civil and Civic in the year 1961. In the year 1970, the company stretched their operations into the country America. In different parts of the world, the company is carrying out its operations (Harris and McCaffer 2013). In Australia, the group constructed the harbor of Victoria, in Asia, the road of Alson in Singapore, in America, Park Avenue in the city of New York. The construction project manager supervises the planning, designing, and the overall construction process of a particular project (Fewings 2013). The goal of the construction project management is to commands over time, quality and cost of a particular project. As the construction business is working globally, the type of management related to it has also changed (Fewings 2013). The project further outlines about the important strategies that the organization has taken up along with the developmental projects. The topic further discusses about the important the functions of the construction manager while developing projects (Harris and McCaffer 2013).
The purpose of this report is to analyze the different factors of managing the international construction project. The report will be based on a famous and multinational construction company named Lend Lease group. The report looks at the points like, global project development understanding and a task of a supervisor in such cases, the costing, arranging and assessing the estimation of a global project and control of cost and quality management in an international project.
Construction companies all over the world have taken thousand of projects nationally and internationally. The global project development administration has considered five processes to end a project (Pmi.org 2017). To oversee the international project the company has to take the first step, which is initiating. The initiating process is that process which defines a new project and an authorization for starting the project. In the initiating, the managers envision the measurable success criteria for the project, which should be based on total cost, schedule and project objectives (Pmi.org 2017). The initiation process for big and complex global projects should be started with picturing a route map or master plan, which explains the steps of how the project will be implemented (Pmi.org 2017).
The second step is planning for the project, which consists the overall course of action and developing a project management plan, what are the scope, cost, and time and possible risks and the management of those risks. For an example, the Lend Lease group has done assignments on master plan, concept designing, research and project management of 100,000 square meters broad Alamanda Shopping Centre at Putrajaya, Malaysia.
The third step is execution, which executed the assigned plan and satisfies the project’s specification (Pmi.org 2017). Global projects are controlled by executing the stakeholders’ involvement and quality checks. The inevitable part of the global projects is virtual team, which works on virtually by arranging meetings, video conference, and activities of team building .
The fourth step is controlling and monitoring. In this step, the managers track, view and review the performance and progress of the assigned project and recognize and initiate the areas of change of that project (Albert 2015). As an example, the Lend Lease’s Group’s project JEM, which is the company’s largest investment project globally and that manages the whole process of controlling and monitoring in its construction’s management assignment.
The last step is closing the project, which concludes all the activities such as completion of the project and other contractual obligations with all project management groups (Sears et al. 2015).
The Lean Lease Group has focused on the strong leadership support, effective communication, and practical governance of the project for successfully implementing its global processes (Lendlease.com 2017). The group acts as an important focus for the team in business management (Harris and McCaffer 2013). The group develops and manage relations with the other stake holders in the world of business of PDS (McGeorge and Zou 2012) The Lendlease works with developing, implementing the internal adoption to substantiate, adopt and implement which would render support to the program which would support PDS global for the markets and solutions of the corporate. The company acts as an important point of being contacted with the Business partner IT and manager of IT product.
The group has established its partnership with business leadership of PDS and to define the technology and develop strategy, which is based on platform of service delivery as well as managing the product development of the business, strategies of delivery services and sales of marketing. The company develops and manages programs in order to ensure about the PDS business alignment with the Global strategies. For a global construction development, the project manager is responsible for coordinating, planning and supervising the projects from the inception to end (Knutson 2016). The strategies, which includes in the development of the global project are putting together the budget and negotiate the estimates of cost, arranging the timetables of work. Choosing the efficient methods and strategies for construction , trying to stay in touch with the clients for the work or any kinds of related issues regarding budget and the project manager of construction would keep the eye on the personnel (Knutson 2016).
In the Lendlease group, the project manager chooses the contractors as soon as the completion of the design takes place (Maki and Kerosuo 2015). In some of the cases, this can even take place when the project is in the stage of development. The selection is based on the process of auction with the different contractors. Cooperation must take place with the specialists in the construction and the building (Maki and Kerosuo 2015).
The construction management of Lend Lease is extended to the different diversities of functions in their arena. The most important functions are illustrated below
The fundamental principles of the project management incorporate are the bids of two types Open bids and closed bids
The organization managed the world construction project including the developments of retail and the terminals of airport. The project of the organization and the construction of business has an important presence in other countries. The important sectors incorporate residential, commercial, pharmaceutical and industrial. Being a major construction in the United Kingdom, the project management of the company . The important projects that are worked in the Conference centre of Queen Elizabeth 2, the shopping centre in Trafford and the Shopping in the Bluewater shopping centre. The refurbishment of the central station of Glasgow which was completed in the year 2000. The Trump Hotel International in Chicago which was completed in the year 2009.
The overall qualities of the development projects of Lend Lease Group are very high, accepted, and recognized globally. For example, the 1333 South Wabash that is the residential apartment building in Chicago and 418,000 square feet broad. The company has assigned for construction management and constructed 28-strorey building houses in 305 units and 3 levels of parking area that can accommodate in total 277 cars (Lendlease.com 2017).. This project has won LEED_NC certification for best qualities of construction management (Lendlease.com 2017)..
The suggestions for Lean Lease group are that it should take more initiatives and new programs using the existing tools, systems. For sustaining a quality program of the projects, it is necessary to check the investments, the benefits, and the correlation between these two. Lendlease has the peripheral business dimension as the development is based on the Development Dimensions International (DDI). The global impact of the management and the form of exception in this managerial outlook depend on the expertise leaders and community builders. They are creating success in their own path and they are maximizing their team performance and marketing the purpose in the right way. Behavioral change and participation process are important and effective in this term as the development are depending on the training program they have in their workplace. 68% overall increase in participant had noticed by the effective use of training method. There are three most important areas that need to develop and require attention as these are the founder of sustainable business improvement. Career development, quality conversation as the productive conversation can enhance the quality of the work and the coaching or training culture of the organization these are the effective areas where leadership and improved high performance is required (Leite 2015). In Lendlease the half of the participants are developing their self-acquisition and motivate themselves through the effective use of development and training program.
The company is focused on the three major areas. These are Social, Economic and Environmental. The social aspect is important as the security, community, and connectivity is essential and to improve the social outcome. Better planning and better community hub are important in aspect to analysis the social impact over the organization (Smith 2017). In case of operating cost and, optimal capital sourcing are the current and future needs of the company. Here is the related economic assistance and consult authorities of the cost improvements are relevant for the better economic perspective of the organization. The change in environment and the effluent flaws of the company and their sustainable environmental quality like thermal change, air-light or the acoustic of the place is important for the urban environment of their project. Generating multiple earning opportunities is the actual approach of the company. The innovation of long-term values and sustainable improving organization potential are the underpinning core competencies that initiated by the better flexibility and agility to the company.
Lendlease has development management and invested management and all these are related to the retail can residential section (He, X.H and Zhang 2014). Aviation, commercial places, defense areas construction all are the parts of the company’s work from where the better management chances are being created and that has notified the expertise of their work culture. The list has enhanced as the heritage and arts took in charge, the way they innovate their sculpture and the way they put creation I between the works is the optimum regulation and emphasizes that profound the scenario of the company. They have their impactful note on court or justice areas and also in the way of railway and their infrastructure. The quality of their work is constant however the expertise are different in all the cases as they believe that each section of the work needs expertise intervention to fulfill the work at its optimum level. Materiality assessment is the process to identify, validate and prioritize the elements in business (Cochran et al. 2015). Lendlease has gone with their G4 guideline or global reporting where they have stressed over the materiality assessment process to improve the material demand and to access the quality of the infrastructure.
The task supervisor visits and manages the construction team including the laborers’ work and makes it sure that the teams are working collaboratively for keeping in mind the deadlines and specification for a particular project. The task supervisor sometimes selects contractors, sub-contractors, and observing that they are working together. Task supervisor keeps track for the progress of the work and create project reports and plans (Jobhero.com 2017). The task will be allocated and inspects by task supervisors with effective dealing on scheduled work plan (Jobhero.com 2017).
The skills of the task supervisor include efficiently work with various personality with effective oral and written communication skills, good leadership skills, excellent observation skill that help him to look matters into details. He should have well physical condition (Jobhero.com 2017) Task supervisors of Lendlease have to maintain some strategic implementation by building right structure, making cost out efficiency, capital management and effective drive in the restoration period. At the state of build, their innovations rephrase portfolio and the brilliant operational excellence is required to make more investment with the people. The superior class of brand management retail investment is 14% where the project management and construction are 40% (Ahn et al. 2013). The regional business operation is persisting not only in Australia but also spread out in UK, US, Middle East, Singapore, Americas and Asia Pacific. Technical skills like engineering manufacturing and electro-technology all these are team-related work that enhances the business understanding skill those strategies and training development process enhances those leaders to make 47% enhancement of outcome assessment (lendlease.com 2017).
Task supervisor in this sector is needed to be smart, technical, knowledgeable and innovative. In business, finance and management studies the quality that produced by the company depends on the product they supplied in this form. Innovative nature of the leader is important as the creation they developed in their project is need to be new and that has a touch of unique placement and ensure the quality of the work as the company has done last few years. Business market and size is also important in that construction arena as the conducted quality that has provided by the suppliers need to be taken as a challenge. All the requirements need to be fulfilled and that ensure trust to the company as Lendlease has done over the year. Due to the construction project analysis and availability of current situation enactment of the purpose and their enjoinment with the work make a proper service (ddiworld.com 2017).
Leaders need to be emphatic and they have to join the culture of the organization and maintain the high number of potential capabilities. In the administrative work, cost-effective mannerism, operational purpose and for the better communication or community maintenance the way they enacted their organization needs to be filled and advertised the scale in between labors, managers and sales percentages. Skill and their potential quality analysis is the concern factor that workers are dealing in (Masood et al. 2015). The improvement in training or construction in between the management issued has to improve by the effective intervening of their team leader. Thus their importance and their behavioral display show or make a pattern to encourage their team to provide more productivity to the organization. Thus, the team performance, managing issues and the strategic maintenance of the objectives is the key driving goal of the leader that ensures the organization up gradation and outcome.
The cost estimation for the future project is a very important process for survival of a construction company in the construction industry. The Lean Lease company states that the cost estimation is useful for determining the future scope of the project. The cost estimate of the contractors will estimate the total construction bid (Wbdg.org 2017). The constructional authority hires cost estimators and they should be involved from the beginning of a project to make sure that the total project budget has reflected on the decision made by rest team members in the project (Wbdg.org 2017).
The total estimation will be changed on the needs of the client. There are multiple levels of estimation before starting each phase of the work. The first level of estimation is based on cost per square foot of the chosen area and other factors such as geographic location of the future project, size demanded by the clients of the future project, possible number of employees or people, cars and other types of cost in the constructional process (Wbdg.org 2017).
The other levels of costing include checks and rechecks of the estimated cost of the first level with finer amount of accuracy. The last phase of the cost estimation is involved in biding phase that develop and submit the probable cost with biding.
The important elements of a cost management are the total quantity take offs of the various materials associated in the project, the labor rate, the price of the materials in the project, the cost of the equipments used in the project and indirect cost like temporary construction, staffing utility management, small tools (Wbdg.org 2017).
The total project cost of Armani Hotel constructed by Lean Lease group in Italy is estimated around 20 billion US dollar (Harris and McCaffer 2013). The hotel area is 19,000 square meters broad. The total project cost of the Sydney Opera house constructed by Lean Lease Group is 102 million Australian dollars, which has been completed in fourteen years (Eoi.es 2017). The scheduled project was four years long and the estimated budget was 7 million Australian dollars. The contractors claimed 1.2 million Australian dollars for the first stage project completion however, when it completed the cost became 5.2 million Australian dollars (Eoi.es 2017). The total project cost of the Palace of Westminster is 5 billion Euros, which is also another successful construction project by Lean Lease. Estimation of the cost is important for any business organization especially in the context of Lendlease, which is a construction company of Australia. However, approximation of the cost program is considered as the cost estimate of an organization. A credible, reliable and accurate cost estimate process can be helpful for Lendlease to avoid any error in their budget program. In order to estimate a cost a cost estimator is hired by the business organization. Building estimator, quantity surveyors and cost engineers are categorized under the cost estimator (Hörcher et al. 2017). Several types of cost estimations like manufacturing cost, resource exploration cost, labor cost are the prime areas of cost estimation process. In the context of Lendlease labor cost is vital for this organization as it is a construction organization. In order to forecast the expenditure of a project cost estimation is done by the business organization. In the context of Lendlease $1,255,000 is the average cost estimation of such organization. According to the statistics, they have estimated $1,172,653, which is higher than their cost estimation.
Cost estimation prevents an organization from financial loss that can be taken place during a project (Swei et al. 2017). However, often the organization faces loss from a project if they have no previous budget plan. Documentation is a process that measures the purpose of the estimate. The data of the cost estimate ensures the risk analysis and validity of the cost estimate process. The documentation process of the estimation is considered as the basic estimation or BOE. However, based on the basic estimation the further estimation will be conducted. Supporting calculation and quantity take off documentation are other processes of cost estimation. In the context of Lendlease such cost estimation methods will be beneficial to make a proper budget plan for this organization. On the other hand, cost estimation strengthens their business as well as their project. Lendlease group offers pension plan to their employees. Hence, for this reason, payments are provided through insurance organization. Periodic actuarial calculations are done by the organization to make a proper budget plan. However, actual losses arise if there is a difference between the previous estimate and the actual result of expenditure. Thus, it is important for this organization to keep a balance between the actual expenditure and their previous estimation.
On the other hand, change in the demographic factor and financial factor difference occurs between the previous estimation and the actual expenditure. However, it is important for the organization to make a proper budget plan through the accurate estimation. On the other the actual gain and loss takes place through the comprehensive income in context of Lendlease group. However, it is important to for such construction company to make a proper plan regarding the cost estimation of their project budget. A accurate estimation leads the organization to carry out their project properly and to reduce any financial loss of this project. Measurement of labor cost and material cost will help such organization to get a previous idea of the expenditure in a construction project, which leads this organization to achieve profitability (Ruijs et al. 2017).
The total estimated cost should be directly related to the quality delivered by the constructional management (Laaturakentaminen.fi 2017). The quality assurance or the quality control is a type of program that covers activities, which is necessary for providing quality work to fulfill the project’s requirements. The cost of quality is the primary tool to measure quality, which is developed by Crosby and Juran. In the construction industry, the cost of quality is related to the contractors, who are being selected by the owner on basis of competition (Laaturakentaminen.fi 2017). The cost of quality is directly linked to the biding though, however, the private owners consider additionally the contractors’ record on safety, their technical support, capabilities of the equipments and the reputation of the performance quality (Laaturakentaminen.fi 2017). The all types of quality control are mostly affected by the allotted cost of the project as it is related to the cost of contractors, cost of the equipments and other costs. For international projects and projects of any type, the total cost is determined by the quality of any section be it the quality of equipments, laborers, contractors, raw materials and other factors, which are necessary in the construction process. The better the quality any construct ion company provides, the more will its cost (Laaturakentaminen.fi 2017). Quality of the construction management is related to the total estimated cost. However, the quality control is a process that includes various activities in order to meet the requirements of a project and to give a quality work. However, cost control and quality conformation are the two major areas of a construction project (). In the context of Landlease quality work is essential to satisfy their customers while to control the cost is essential besides providing the quality. Often the organization wants to provide quality service or product in a low cost (O’Loughlin et al. 2017). As a result, they may face the high operation cost in their project. For this reason, it is important for Lendlease to give good quality service in a proper cost, which may not affect their business profitability. In order to maintain the cost it is essential to forecast the cost of the quality service, which gives a preliminary idea to the organization about their expenditure for a quality service. In the context of a construction, company contractor has a responsibility to maintain the cost quality during a project. For this reason, they initiate a previous plan to measure the cost of the quality service that they want to provide to the customers. However, often the allotted cost of the project hampers the quality control.
As for example, the organization often fails to provide the high quality service due to low budget of their project. In order to control the cost construction organizations are not able to provide high quality product. On the other hand, it is important for the Lendlease to use high quality materials in their constriction project besides controlling the cost. Cost of the project is based on the raw materials, equipments, labor and some other factors (Xiang et al. 2017). Therefore, the quality of the project is based on the efficiency of the labor and quality of the raw materials and equipments. Quality is a big factor for the project as based on the success of a project depends. For this reason, quality assurance is necessary for the Lendlease. However, the prevention of the defects is also undergoes under the project cost and it refers as the quality cost. Prevention cost is a vital part of quality assurance. In order to minimize any defect in the construction quality assurance team takes a full observation of the project. Therefore, inspection cost is another part of quality assurance. In this practice, the external agency comes for a inspection of the entire project to certify the quality of the project. Hence, such practices of the quality assurance system include a high cost. For this reason, cost control is important for the construction organization to carry out the quality assurance practice. Employees are responsible for the quality control while creating a design during the project. Accurate design will ensure the quality of a project as well as reduces the operation cost (Sun 2017).
Conclusion
It can be concluded by stating that construction project management is very complex and multi-phased task that should be employed successfully to build large international or local buildings. The quality of the project is largely depend on the cost, time, number of laborers and contractors and equipments used. As the global or international project is broader than local projects, the way it is controlled is completely different. In such projects the level of construction is much broader and have multiple phase. The construction company should keep alert for such projects and they have huge responsibility to deliver the projects in its highest quality.
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