Morris Terrace By Cap Global Project Management Group for Client Christopher + Belinda
Part A: Project Contracts
The project and different types of contracts present various benefits and challenges for the project. There are five project types under consideration for the project, including stipulated or lump-sum contract, cost of work plus free contract, cost of work plus fee with guaranteed maximum price (GPM) contract, construction management (CM) contract, and Design-build or design-and-contract (D&C) contract. These types of present benefits and challenges. In the following, there is a description of these types in light of these attributes (Tran, Yoon, & Genchev, 2017).
The most visible legal benefit of a lump-sum or stipulated contract is its flexibility. The Morris terrace project under the CAP GPM has been facing many legal issues. The Town council and legal framework call for many demands expected from the project. They include design, preservation of two heritage trees, waste management, and restoration of the surroundings. Therefore, the lump-sum or stipulated contract can award flexibility and authority to CAP GPM to respond to these challenges. However, the contract type can cause risks because the contractor has to consult continuously regarding changing project needs (Kloppenborg, Anantatmula, & Wells, 2019).
The cost of work plus a free contract is suitable for the contractor because legal challenges can affect the price or the cost of the project. Therefore, the cost of the project may fluctuate, and it can hurt the profitability of the contractor. Consequently, it has the benefit of securing profit despite sudden changes. The challenge is that new legal requirements may lead to a change in the fee decided between the two parties. So, later parties may disagree on the set fee for the contract (Kloppenborg, Anantatmula, & Wells, 2019).
It has legal benefits to choose the cost of work plus fee with a guaranteed maximum price because it would save the clients from being uncertain over the cost and profit. They have hired CAP GPM to earn a profit after effective management. However, it causes legal challenges because the cost may go up, and the contractor may ask for more expenditure to incur. Still, it is legally beneficial because everything is agreed well before the project starts.
Construction management has many legal benefits because the contractor has to incur expenses and get a fee for the management of the project. It would allow the contractor to manage all components of the projects. However, it has legal challenges when the contractor can ask for more fees to manage the project (Park, Lee, & Ahn, 2017).
The design-build construction contract has legal benefits and challenges. Benefits include contact with the single person responsible person in materializing the project. However, it has challenged that any problem or issue with an available contractor can cause legal hurdles for the whole project.
Mitigation of Potential Challenges of these Contract Types:
Mitigation of potential challenges in any project type should be a matter of interest for the project team. The project owner should ensure that flexibility and communication plan can solve challenges in contracts. The above-mentioned legal challenges of different contract types have highlighted the fact that both parties to the project should be on one page. A proper stakeholder analysis and communication plan help the project team know emerging issues and risks out of the project. Moreover, dealing with legal consultants can be helpful, as well (Ahimbisibwe & Nangoli, 2012).
Recommended Project Type:
The recommended project contract type is the construction management contract. It is the contract type that allows the contractor to manage the project and its different activities. It will enable the owner to hand over the project and its different functions to the contractor. As a result, the management of the project becomes possible, and it remains in the hands of one responsible person. CAP GPM has been managing and coordinating efforts and activities to materialize the project already. Therefore, the selection of a Construction management contract would be the perfect option (Kloppenborg, Anantatmula, & Wells, 2019).
Project B: Project Pre-Planning
For the pre-planning of the project, the project team should consider various factors around the construction project at Morris Terrace. The following are steps for the pre-planning of the project.
Major Challenges Before Beginning Construction:
The project has been adhering to the instructions and guidelines of the council. The potential challenge might be regarding these conditions as a lack of compliance with any of the conditions can cause problems for the project. There are already freeways around the site that has caused damage to neighbor’s properties. They can blame the CAP GPM for the damage that has already occurred. The project should address these potential concerns of neighbors. It has to make the site clean, and proper testing of the soil is necessary. The council set conditions and abiding by these conditions is a continuous challenge for the project team. Other challenges include the need for fire hydrant testing and the presence of heritage trees, and they call for considering them keenly. Proper report preparation and involving neighbors can be helpful o mitigate these challenges at the beginning of the project.
Most Effective Approach to meet On-time Delivery of the Project:
On-time delivery of the project is possible through adopting the most effective approach for the delivery of the project. It is construction management. This delivery method is less costly and brings higher quality. It is possible because of the presence of different approaches in project management simultaneously. In the given project, construction management is suitable because the owner of the project has hired a consultant. The consultant, in turn, hires required consultants and architects as per the need arises. This approach allows the construction project management to be flexible and enables the support of the best-qualified professionals in their field. For instance, hiring a licensed quantity surveyor, PH architects, and several other contractors and professionals has been possible because of the adoption of the construction management’s project delivery method. It allows professionals to oversee the activities that increase the level of quality. It also decreases the cost to be incurred on each activity.
Organization of Project’s Costs:
The project is of construction that is always complex. Different activities and concerns of stakeholders have invited the attention of the council to put conditions for the project. In this scenario, the cost estimate becomes problematic because external factors affect the project outcomes. It is worthwhile managing and arranging the project’s costs. The cost breakdown is useful as it is similar to the work breakdown and its structure. The organization of project cost would follow the following cost breakdown structure.
| Stages for the cost breakdown | Description |
| Demolition | The construction project needs incurring costs on demolition. |
| Foundations | Setting foundations are different from constructing the overall building, and it requires separate cost estimates. |
| Basement Building | Basement building also requires a distinctive construction strategy like the foundation. It requires different cost measurement methods. |
| Ground Floor | It is one of the main activities in cost management. |
| Townhouse Construction | It is another main activity in cost management. |
| Landscape Construction | It is the third main stage for cost management. |
These stages of cost breakdown are part of the Morris terrace project as it identifies and evaluates areas required for incurring the cost.
Analysis of Organization of the Project and Work Breakdown Structure:
Work breakdown structure is useful in breaking down the project and its deliverables. In the given case study construction project, the organization of project deliverables would be made using WBS. The general stages of the project are demolition, foundations, basement building, ground floor, townhouse construction, and landscape construction. But the deliverables for the inclusion into work breakdown structure are in the following. It is worth mentioning that these are required activities for the completion of the project. They are almost necessary for the project so almost equal to each other.
| Work Breakdown Structure Activities |
| Demolition |
| Fire Stopping |
| Metal and Pre Finishers |
| Timber products and finishes |
| Roof safety system |
| Concrete pavement |
| Concrete finishes |
| Block Construction |
| Structural timber |
| Waterproofing |
| Roofing |
| Cladding |
| Windows and doors |
| Door hardware |
| Lining |
| Signs and display |
| Timber flooring |
| Mechanical design and install |
| Finishing the construction |
Part C: Controlling Communication
The project requires a proper communication management plan that has salient features to keep stakeholders along with all activities. The following actions are aimed at controlling communication for project management.
Development of the Communication Management Plan:
The development of a communication management plan requires three stages. These include input, tools and techniques, and output. The following elements of the project plan would inform the project stakeholders about the activities of the construction project. Communication plans require all kinds of information that should be a part of the communication process. Input for the communication management plan is the plan, stakeholder register, and project charter. In the case study project, stakeholders are the most important. Regulatory bodies, neighbors, project teams, professionals, and clients are prominent stakeholders. For the processing of communication, different tools and techniques are there. They include analysis of the communication requirements, models of communication, and meetings. Meetings are very effective methods to process inputs because all members of the project team are part of it. It results in the output in the form of the communication management plan (Reed & Knight, 2010).
| Input | Tools and Techniques | Outputs |
| Project management plan
Stakeholder register Project charter Team management plan |
Analysis of communication requirements
The use of communication technologies The use of communication models Meetings |
Communication management plan
Updates into the project documents |
The above communication management plan has enough information for a stakeholder to be aware of the project and its requirements. Communication must engage all stakeholders, and their information should pass through the process to get desired outputs favoring the project.
Project Status Reports and Stakeholder Expectations:
Stakeholders of the Morris Terrace project have to know about the status of the project. It is in the form of a communication plan. Moreover, the construction management methodology calls for getting assistance from professionals in their relevant fields. It is essential to keep them communicated so that all stakeholders remain satisfied. In the given case study construction project, owners also need the communication plan. They have hired the CAP GPM for the management and coordination of the project. Therefore, status reports would help the owners know what is going on in the project. There are neighbors as well who may consider the project unfriendly for them and to the environment.
Similarly, they can have concerns regarding the damage to the environment. These status reports would let them know that the project has been considering their concerns. It would solve any problems or concerns faced by them.
The preferred medium is the use of technology because online and technological mediums are effective in communicating. In the above tools and techniques, there is the use of communication technologies. Moreover, there are meetings as well. The technological medium and face to face interaction are beneficial for the proper meeting between stakeholders. As a result, stakeholder expectations can be on track. The construction project requires stakeholder alignment very much (Qi & Maoshan, 2019).
Analysis of the level of details to make these stakeholder reports regularly:
The case study has offered a detailed description of the project. It starts with the intentions of the owners who want to construct apartments on the site. They have hired CAP GPM, and then, hiring different professionals is on the way to complete the project. Then, there is the analysis of cost estimates. There is a description of the concerns of neighbors and other stakeholders. The council set conditions for the project to proceed. The marketing and sales team also has its concerns while there is the importance of quantity surveyor to materialize the project successfully. These are the levels of details present in the case study. The information is substantial and helps make stakeholder reports regularly (Kloppenborg, Anantatmula, & Wells, 2019).
Any project management activity or procedure requires information because stakeholders are interested in the information. Every project is complex and essential, but some projects are more complex, like the construction project. CAP GPM and the owners of the project have to ensure every stakeholder has enough substantial information. It is an essential element of controlling communication by developing stakeholder reports and handing them over to them.
Part D: Project Close-out
At the closeout of any project, different elements play a crucial role.
Project Acceptance:
The vital element of the project closeout is the announcement that the project has been accepted. The project has many deliverables, and the completion of each project stage must be there. The acceptance of the project means that stakeholders or project members are satisfied with the project. Every component of the project is complete, and it has been formally accepted through written project acceptance (Mir & Pinnington, 2014).
Contract Closeout:
A project can be the result of a contract between parties. Therefore, at the end of the project, there should be a contract closeout. It means that the project has met all terms of the contract along with administrative actions required for closing out the project. It also has the aspect that there are no disputes between parties, and all fees and transactions have been done.
Document Turnover and Archiving:
Project closeout has the element of document turnover and archiving. A project combines many activities, and they produce a large number of documents. It is the responsibility of the project team to compile all related information. It has been a common practice during the project that every document is maintained. At the closing stage, it is essential to archive the data used during project management. It is appropriate to place them at a safe place so that it can be used at the time of future reference (Kloppenborg, Anantatmula, & Wells, 2019).
Team Performance Appraisal:
The project is completed due to the efforts of a project team that has members. At the project closeout, it is essential to perform a performance appraisal of the team involved in the project. It gives them recognition and reward as they have used their energies and efforts to make the project successful.
Team Reassignment or Demobilization Schedule:
At the project closeout stage, it is time to reassign the team and demobilize them. It means that all machinery, types of equipment and personnel on the site need to be removed from there. The material and machinery can be sent back to the vendor or moved to another location. It is also the case with the team that may be made free or moved to another site.
References
Ahimbisibwe, A., & Nangoli, S. (2012). Project Communication, Individual Commitment, Social Networks, and Perceived Project Performance. Journal of African Business, 13 (2), 101-114.
Kloppenborg, T. J., Anantatmula, V. S., & Wells, K. N. (2019). Contemporary Project Management. Cengage.
Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: Linking Project Management Performance and Project Success. International Journal of Project Management, 32 (2), 202-217.
Park, K., Lee, S., & Ahn, Y. (2017). Construction Management Risk System (CMRS) for Construction Management (CM) Firms. Future Internet, 9 (1), 1-21.
Qi, W., & Maoshan, Q. (2019). Project Managers’ Competences in Managing Project Closing. Project Management Journal, 50 (3), 361-375.
Reed, A. H., & Knight, L. V. (2010). Effect of a virtual project team environment on communication-related project risk. International Journal of Project Management, 28 (5), 422-427.
Tran, T., Yoon, K., & Genchev, S. (2017). Lump-Sum versus Pay-As-You-Go: The Moderating Effect of Contract Types on Optimal Logistics Decisions. Managerial and Decision Economics: MDE, 38 (4), 547-555.
