7BSP0334-0901 Project Management Assignment Sample

1. Introduction (7BSP0334-0901 Project Management Assignment Sample)

This report discusses project proposals and budgeting in the construction industry. In addition, this section is also going to discuss a variety of techniques that are used for this project scheduling and budgeting of this construction industry. Additionally, critically discuss and analyse the application of project scheduling and budgeting to the new world. The main aim of this topic and shed a light on developing project schedules and resource plans for decision-making for the construction industry and report a budget plan which includes some issues and try to control project planning’s to real-world projects.

2. Estimated cost and duration of the project

An estimation of this project has been conducted based on the requirements of this construction project including its required resources. In this project electricians, carpenters, general construction workers, bricklayers, and plumbers have participated as human resources. Based on the different daily wages of these human resources and different days they have worked in this project cost estimation and duration have been constructed (Habibiet al. 2018). Total cost for this project apart from the profit of the building contractor and building materials is 42750 pounds and including materials, it is 54250 pounds. However, the total duration of this construction project is 110 days as per the calculation of total working days of all the associated workers of this construction project.

In case this construction project is done 5 days a week and it is started on 1st March 2021 then this work will be finished on 23rd July 2021.

3. Network diagram and Gantt chart

7BSP0334-0901- Project Management Assignment SampleFigure 1: Network diagram (Source: MS-Excel)

 

Critical path for this project is A-C-D-E-F-G-H-I-J-K-L-M-N-O.

7BSP0334-0901- Project Management Assignment Sample 2Figure 2: Gantt chart  (Source: MS-Project)

The Gantt chart suggests the start date of this project, its required resources, duration of each task, and the name of the tasks. In this project electricians, carpenters, general construction workers, bricklayers, and plumbers are the main resources apart from materials for the materials required for this project (Aljohaniet al. 2017).

4. Budget and a Cost Baseline for this project

Tasks Particulars Number Cost per day (Pounds) Time (Day) Total cost (Pounds)
Side preparation General construction worker 3 100 4 1200
Pour foundation Bricklayer and General construction worker 1, 3 150, 100 10 4500
Erect frame Bricklayer and General construction worker 1, 3 150, 100 12 5400
Walls Bricklayer and General construction worker 1, 3 150, 100 24 10800
Roof Bricklayer, carpenter, and General construction worker 1, 1, 1 150, 150, 100 15 6000
Windows/Doors Carpenter and General construction worker 1, 2 150, 100 6 2100
Electrical Electrician and General construction worker 1,1 200, 100 6 1800
Plumbing Plumber and General construction worker 1, 1 200, 100 8 2400
Tiles Bricklayer and General construction worker 1, 2 150, 100 5 1750
Heating Plumber and General construction worker 1, 1 200, 100 3 900
Kitchen installation Carpenter, Plumber, and Electrician 1, 1, 1 150, 200, 200 5 2750
Paint and decoration General construction worker 3 100 3 900
Fitted wardrobes Carpenter 1 150 3 450
Patio and garden General construction worker 3 100 5 1500
Clean up General construction worker 3 100 1 300
Materials and machines for this project Cost of materials and machines
  Sandbags NA NA NA 4500
Cement NA NA NA 1800
Wood NA NA NA 1000
Bricks NA NA NA 2000
Iron sticks NA NA NA 500
Paint NA NA NA 300
Putty NA NA NA 300
Chemicals NA NA NA 100
Machines NA NA NA 500
Other materials NA NA NA 500
Project completion Total time: 110 days Total budget: 54250 pounds
Table 1: Budget and cost baseline for this project (Source: Case study)

5. Limitations affect the final schedule

Yes, resource limitation affects the final schedule of this project because the entire budget and duration estimation have been formulated based on the availability of required resources for this project. Three variables have been responsible for the success of this project such as resources, duration, and budget. In case the budget is reduced, then resources and durations will also be reduced because in this project, budget is the main concern and it needs to remain under 70000 pounds. On the contrary, in case the construction needs to be accomplished as soon as possible then the contractor will have to increase its budget and resources (Hong et al. 2018). However, in this case, the budget is limited and the contractor is supposed to modify its budget estimation in such a way that this project will be finished before the estimated duration (Lee et al. 2020). For example, the charge of the carpenters is 150 pounds a day, the bricklayer’s charge is also 150 pounds a day, the electrician and plumber charge 200 pounds a day.

Besides that, the daily wages of the general construction worker is 100 for each. The budget estimation suggests if the contractor allows the carpenter to finish their work within 7 days instead of 8 days for the installation of kitchen and fitting of wardrobes then it will save 150 pounds in this project. Besides, for the clean-up purpose instead of 3 general construction workers, 2 can be recruited to do the same and it will save 100 pounds (Chan et al. 2019). In terms of pouring foundation, the workers can be asked to finish that within 9 days instead of 10 days and it will help to save 450 pounds. Therefore, it can be stated that in case required resources for this project are reduced then it will affect the quality and duration of the final project and thus the entire schedule will be affected.

6. Impact on the project delay

In case this project gets delayed for 2 days during the task “pour foundation” then it will consume the cost of 2 more days for this task. As estimated from the data provided in the case study, per day cost estimation of this task is 450 pounds. In this aspect, the contractor will have to spend 900 pounds more to finish this project and the total required time for this construction project will be 112 days (Luo et al. 2017). Besides that, in case this project gets delayed for 3 days while doing the task “windows and doors” it will cost 1050 pounds more as the cost estimation based on the provided data in this case study suggests that per day expense for this task is 350 pounds. In this case, the estimated cost for this project due to 5 days delay in these tasks will be increased by 55650 pounds and the total required time will be 115 days to accomplish this project.

7. Discussion of financial risks

  • Liquidity Risk

It defines incurring loss and which is an inability to meet payment obligations promptly. It depends upon borrowing money to a considerable extent and here they are commonly scrutinized to determine whether they can meet their debt obligations without realizing great losses in this construction industry (Huang and Mazouz, 2018).

  • Equipment Risk

It mainly prematurely replaced and is currently due to excessive wear and tear. Productivity has found to be lost in operational delays due to equipment failures in this project proposal (Pham et al. 2020).

  • Construction Cost Risk

It discussed about different types of costs and which is focused on some uncertainties, which may affect the company cost. In which contractor must be able to take those risks to build efficient planning of Construction Company and develop a project planning.

  • Labour Risk

This type of risk is defined and factors may increase the preterm labour and premature birth including such as using illegal things, emotional abuse. In this context, this company must remove the labour issues, which can cause such drastic situations in this company, and mitigation must be different in the project planning of this construction industry (Kim et al. 2020).

  • Physical Risk

These risk factors encompass everything in a construction company that must be developed in project planning and develop the budget planning which can make an effective business plan and help to enhance the future performance of this business.

Risk Severity Likelihood Impact Mitigation Action Timeframe
Liquidity Risk  High Low High Optimize Working Capital 1 month
Equipment risk Medium Low Medium Rising in energy demands and costs 2 month
Construction Cost Risk High Medium High Add a margin to the subcontractor in which price is included before in the project proposal 4 month
Labor risk Low Medium Medium Provide an excellent training 2month
Physical

risk

Low Medium Medium Managing and building employee awareness in a project proposal 1month
Table 2: Discussion of financial risks (Source: Kim et al. 2020)

8. Conclusion

This project proposal concludes the project budget and schedule, which are the main aim and apply appropriate project planning in which a company named Simpson, can develop their future performance and mitigate their risks. Additionally, this section also concludes the estimated cost and duration of this project in which the company can set their future practices and uses the table of network diagram to show how large the project and task is. In addition, the entire context also prepares a budget and a cost baseline for this project in which can help to discuss and monitor all types of issues of this construction industry.

Reference

Journal

Aljohani, A., Ahiaga-Dagbui, D. and Moore, D., 2017. Construction projects cost overrun: What does the literature tell us?. International Journal of Innovation, Management and Technology8(2), p.137. Available at:http://www.ijimt.org/vol8/717-MP0022.pdf

Chan, D.W., Olawumi, T.O. and Ho, A.M., 2019. Perceived benefits of and barriers to Building Information Modelling (BIM) implementation in construction: The case of Hong Kong. Journal of Building Engineering25, p.100764. Available at:https://www.academia.edu/download/60208541/1-s2.0-S2352710218310209-main20190805-101564-1cpfnuc.pdf

Habibi, F., Birgani, O., Koppelaar, H. and Radenović, S., 2018. Using fuzzy logic to improve the project time and cost estimation based on Project Evaluation and Review Technique (PERT). Journal of Project Management3(4), pp.183-196. Available at:http://m.growingscience.com/jpm/Vol3/jpm_2018_12.pdf

Hong, J., Shen, G.Q., Li, Z., Zhang, B. and Zhang, W., 2018. Barriers to promoting prefabricated construction in China: A cost–benefit analysis. Journal of cleaner production172, pp.649-660. Available at:http://ira.lib.polyu.edu.hk/bitstream/10397/70329/2/Shen_Barriers_Promoting_Prefabricated.pdf

Huang, W. and Mazouz, K., 2018. Excess cash, trading continuity, and liquidity risk. Journal of Corporate Finance48, pp.275-291. Available at:http://orca.cf.ac.uk/106673/3/JCF-RR-Final-18-10-2017.pdf

Kim, S., Chang, S. and Castro-Lacouture, D., 2020. Dynamic modeling for analyzing impacts of skilled labor shortage on construction project management. Journal of Management in Engineering36(1), p.04019035. Available at:https://ascelibrary.org/doi/abs/10.1061/(ASCE)ME.1943-5479.0000720

Lee, J., Yang, H., Lim, J., Hong, T., Kim, J. and Jeong, K., 2020. BIM-based preliminary estimation method considering the life cycle cost for decision-making in the early design phase. Journal of Asian Architecture and Building Engineering19(4), pp.384-399.Available at:https://www.tandfonline.com/doi/pdf/10.1080/13467581.2020.1748635

Luo, L., He, Q., Jaselskis, E.J. and Xie, J., 2017. Construction project complexity: research trends and implications. Journal of construction engineering and management143(7), p.04017019. Available at:https://www.researchgate.net/profile/Lan-Luo-18/publication/314017360_Construction_Project_Complexity_Research_Trends_and_Implications/links/5badd64792851ca9ed2b94bd/Construction-Project-Complexity-Research-Trends-and-Implications.pdf

PHAM, C.P., NGUYEN, P.T., PHAN, P.T., NGUYEN, Q.L.H.T.T., LE, L.P. and DUONG, M.T.H., 2020. Risk Factors Affecting Equipment Management in Construction Firms. The Journal of Asian Finance, Economics, and Business7(11), pp.347-356. Available at:https://www.koreascience.or.kr/article/JAKO202032462596975.pdf

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