Part A: Project Influences
- Analyse the case study from PESTLE perspective. Include in your analysis the impact
(if any) of each PESTLE element. - As the Project Manager for the project, what steps might you have taken to prepare for these influences? Explain how each of these steps would have positively impacted the project’s success.
- Evaluate the decision to build. In your opinion, was the decision to build a good one? Explain your position.
Part B: Assessing Project Viability
- Describe the decisions you would need to focus on first regarding project feasibility.
- Assess how you might approach the size and scale of the construction project.
- Analyse the need for estimations of project cost and profitability.
- Explain how you would decide whether the decisions were effective and the recommendations you would make for those that were not effective.
Part C: Project Planning
- Analyse the role of each of the following plans that need to be implemented in the
construction project:- Value Management
- Risk Management
- Quality Management
- Change Management
- Environmental Management
- Health & Safety Management
- Resources Management
- Describe the impact these plans might have on the project.
Project Influences, Viability, and Planning: Case Study
A project has been under influence from the macro environment. It is also said to be an external environment, and PESTLE analysis lets you understand the external environment. This paper offers an analysis of project influences in light of factors in the PESTLE analysis. It then assesses the viability and planning of the project. Different parts of the paper offer different aspects of project management for a construction project.
Part A: Project Influences
PESTLE Analysis and the Case Study:
The political, economic, social, technological, legal, and environmental aspects of PESTLE are playing their role in the case study. Politically, the project does not have a direct negative influence because the government is supportive. The presence of legal provisions is not considered as restrictions or interruptions from the government. The client is interested in a global business model that makes the political context of other countries important (Racz, et al., 2018).
The economic component of the PESTLE analysis is worth considering where the market is offering some recessionary mode. Different options are also causing some financial concerns for the project completion where modular design, boutique design, and various other designs of apartments have a severe financial component.
The most crucial component influencing the project is society as the surrounding area might complain about the project. It is also related to the legal part that requires neighbors on-board in the construction project. However, neighbors could pose a threat to the project. In response to their concerns and amid lobbying by one of the residents, the council has placed extra conditions for the project. It increases concerns on the legal front as well.
Technologically, the project is yet to decide how to come up with a suitable design. Boutique style design may be a wise decision, but it is costly. However, the CAP GPM has to coordinate efforts y getting options on the best possible design for the project. Therefore, cost and design perspectives are essential in this regard.
Environmentally, the client is interested in socially responsible and sustainable designs. Any damage to the neighboring area can also cause a problem where dust control and preservation of the natural environment are included in concerns. The conservation of two heritage trees should be the priority.
Preparing for the Influence:
The influence of PESTLE components is there, and one cannot ignore their influence over the viability of the project. A project manager would have positively impacted the success of the project by taking suitable steps. These steps would help prepare for these influences. The social factor of the analysis needs a communication plan that takes neighbors in agreement with the project. The majority of residents have expressed positive to the project, while some have opposed it (Malcher, Andrea, & Pásztorová, 2017). Having contact with influential people of the community can be a wise decision to develop an opinion favoring the project. The technological factor of the influence is also useful to consider, especially when there is a debate over the design of the project. Economic factors can be made neutral and favorable only by focusing on the project. The project team and all stakeholders should be on one page to make this project a success. Stakeholder analysis and meeting their needs could be beneficial to prepare for the influence of the PESTLE factors (Eskerod, Huemann, & Ringhofer, 2015).
Evaluation of the Decision to Build:
The PESTLE analysis does not pose a threat to the project, and the project manager should go for the assessment for project viability. The decision to build the project is wise, and the project team should not get it late. An effective communication and stakeholder plan can help the project team decide to move forward with the project.
Part B: Assessing Project Viability
CAP GPM and its clients have been facing different issues with project viability. Surprise expenses are coming to the surface, and some stakeholders might pose a threat to the completion of the project. The assessment of project viability is possible by answering its feasibility, size and scale, estimations, and decisions with their effectiveness.
The decision needs to be taken on project feasibility:
The feasibility of the project is critical for the viability of the project. The project manager has to make certain decisions regarding project feasibility. They include looking into the possibilities of the chosen design of apartments. There are mixed views on the project design as there is a boutique-style or any other like the Californian Bungalow design of construction. Similarly, there is a match between modular construction and traditional construction. The case study notes that the project might face a lack of interest from banks to finance in case of a modular construction style. The compliance with the law and acceptance from the neighbors highlights another area to focus on. Expert opinion and taking assistance from project consultants could help ensure feasibility. Different types of project feasibility, including technical feasibility, legal feasibility, and operational feasibility, are relevant to the project, and there should be the focus (Melnic & Iliescu, 2017).
Approach to the size and scale of the construction project:
Presently, the construction project is based on apartments, and a part of the opposition is because of this design. Therefore, the project management team, with the coordinating role of CAP GPM, should focus on this construction project exclusively. The scale and size of the project are between medium and large. The time for the project is also not beyond one year, as traditional construction techniques would take around one year. The modular construction technique would get it completed in half the period. The project team should decide on the contract by looking into its different types. A lump sum and fixed contract type may be appropriate. However, each stage of the project should follow its specific contract type. Despite the size and scale of the project, the macro environment indicators must be taken into consideration (Saeed, Mostafa, & Gholamian, 2018).
Need for estimations of project cost and profitability:
Estimation is necessary for any project, and it is also true in the case of this construction project. The assistance from the quantity surveyor can help to offer estimates and projections for the cost and profitability. The cost and benefit analysis of the project considers different types of costs. The estimate should include them precisely. For instance, there have been sudden, surprising costs that may disrupt earlier estimates. Therefore, each existing and possible area should be part of the estimation so that it remains profitable. The case study has included some estimates for cost and profitability. They should be more certain to guide the project because a sudden expense can disrupt any type of planning (Azarova, 2018).
Decisions and their effectiveness along with recommendations:
The criterion to evaluate the effectiveness of the decision is simple. Any decision should contribute to the overall plan and performance of the project. The construction project is always complicated because it involves some hidden costs and expenses. The construction project has hired experts and professionals to carry out different activities. The client has hired the project coordinator, and the project coordinator has assisted in the hiring of different professionals and experts. These decisions are effective because they have fulfilled the needs of the project.
However, decisions that are not effective should be reviewed. The decision to choose the construction style between traditional construction style and modular construction decision requires detailed analysis. The use of a boutique construction style or Californian Bungalow style has also yet to be decided. Therefore, the analysis recommends coordinating with stakeholders and project team members to get through challenges faced for the project.
Part C: Project Planning
The project planning process for a construction project requires focusing on different plans. Considering different plans would help the construction project meet desired objectives and purposes. The client has high expectations from CAP GPM, and it has to make sure the construction project has different plans present for the management of the construction project.
Value Management:
The construction project has to plan for value management. A PESTLE analysis has indicated that some neighbors consider it valuable for them. While some of them are hostile to the project, a proper value management plan would communicate to them that this project is beneficial and useful for them. If the project gets completed in time and within the cost, it will offer value to the project management team. If it provides residential facilities to the area and people, it would be valuable for them too. Therefore, the value management plan has a much higher role in the construction project.
Risk Management:
Construction projects like the one in the case study cannot be safe from risks. These risks are beyond seen risks in the financial or stakeholder areas. They have also related to unprecedented risks those call for a contingency approach. A risk register contains different kinds of risks, and their priority is essential to consider. Risk management paves the way for the project, and as a result, a project gets accomplished with desired objectives (Serpell, Ferrada, & Rubio, 2019).
Quality Management:
Quality is at the center of any project, and a project team has to plan and assure quality. It has two aspects to consider. First, quality has the perspective of constructors and project management team. Second, it has the aspect of end consumers. A project has to consider both aspects of quality so that end consumer and project teams can reap benefits. Quality management is possible by dividing the project into different stages, and each stage should be evaluated in light of the sent criteria. As a result, the project remains on track in terms of quality.
Change Management:
The project in the case study has noted some unplanned situations. It has to hire a surveyor for estimation, and it has to consider two heritage trees. It indicates the importance of change management that is essential for the completion of the project timely and expertly. Change management and the introduction of change management throughout the project team is necessary. A construction project cannot stick to the already planned activities, but it has to be ready to adapt to the dynamic environment.
Environmental Management:
Project planning is an essential component of environmental management. In the construction project present in the case study, the client feels responsibility for the environment and sustainability. Environmental management has a crucial role because a construction project has to disturb the environment. It has to perform activities affecting the larger environment. Neighbors and the government can complain and raise objections. In this context, the role of environmental management is high (Chi, Ruuska, & Xu, 2016).
Health and Safety management:
Health and safety management is for the benefit of nearby residents, neighbors, and community members. It is also for workers and employees working on the construction project. Health and safety management has to look at both perspectives. The government has laws for the protection of employees and the community, and a lack of adherence may lead to problems for the project.
Resources management:
Resources are scarce, and a project has to use them wisely. Financial resources, human resources, sponsors, and donors offer support and assistance. Management of these stakeholders can be helpful in resource management. A construction project has to adopt a wise approach to managing different types of resources (Chung-Chi, Lee, & Chou, 2016).
Impact of these Plans:
These plans and their management would lead to project management planning. Project planning is possible if each of the above plans gets accomplished. One by one plan makes the planning possible, and the end result is also favorable.
Conclusion:
The report concludes that CAP GPM is coordinating a construction project for a client who wants to build apartments. However, the project is under the influence of different PESTLE analysis factors. The report has analyzed the viability of the project and states that the project is viable in the light of the contextual factors. The planning of the project has been analyzed, and it recommends using different plans to ensure proper planning of the project.
References
Azarova, I. (2018). Methods of construction duration estimation. Economic and Social Development: Book of Proceedings, 23-27.
Chi, C. S., Ruuska, I., & Xu, J. (2016). Environmental impact assessment of infrastructure projects: a governance perspective. Journal of Environmental Planning and Management, 59 (3), 393-413.
Chung-Chi, C., Lee, G.-G., & Chou, T.-C. (2016). A process model for bricolage-based resource co-management for a resource-constrained government IT project. Information Technology & People, 29 (1), 200-220.
Eskerod, P., Huemann, M., & Ringhofer, C. (2015). Stakeholder Inclusiveness: Enriching Project Management with General Stakeholder Theory. Project Management Journal, 46 (6), 42-53.
Malcher, V., Andrea, S., & Pásztorová, J. (2017). COMMUNICATION MANAGEMENT IN SOFTWARE PROJECTS. International Journal of Information, Business and Management, 9 (4), 32-40.
Melnic, A.-S., & Iliescu, C. (2017). Projects’ Financial Feasibility. Economy Transdisciplinarity Cognition, 20 (2), 5-11.
Racz, L., Fozer, D., Nagy, T., Toth, A. J., Haaz, E., Tarjani, J. A., et al. (2018). Extensive comparison of biodiesel production alternatives with life cycle, PESTLE and multi-criteria decision analyses. Clean Technologies and Environmental Policy, 20 (9), 2013-2024.
Saeed, A., Mostafa, K., & Gholamian, M. R. (2018). Building a rough sets-based prediction model for classifying large-scale construction projects based on sustainable success index. Engineering, Construction and Architectural Management, 25 (4), 534-558.
Serpell, A. F., Ferrada, X., & Rubio, L. (2019). Measuring the performance of project risk management: a preliminary model. Organization, Technology & Management in Construction, 11 (1), 1984-1991.
