Mavis Terrace by Cap Global Project Management Group for Client Christopher + Belinda
Introduction
The project management process is always associated with several phases or approaches. The main components or processes are project contract, project pre-planning, communication control, and project closeout. These phases or processes are triggered by multiple processes, as well. This study revolves around a particular project, “MORRIS TERRACE.” Christopher and Belinda intend to carry the legacy of late Miss Morris, as she was a giving woman. Thus, the new project is based on new conduction on the purchased property. They aim to distribute funding to international housing. The purpose is to help people who are unroofed.
Part A: Project Contracts
Legal Benefits and Challenges that Project Might Experience
There are some legal benefits for both Christopher and Belinda, and Cap Global Project Management is quite aware of it. For instance, it is in the best interest of the project management to realize all requirements for the project. Therefore, streamlining legal setup can always help protect project owners from any legal complication in the future. Without any legal complication, the project can be completed within the set or calculated budget. Another legal benefit that project owners can is the protection, Lawyers, and accountants will be available for these project owners and management to provide recommendations and advice. Thus, maintaining the smooth and legal process of the project is one of the big benefits. On the other hand, the biggest challenge is that Christopher and Belinda are inexperienced developers, and it seems a high challenge to make them understand the legal complexity and an increase in these project costs. Approaching the local council with preliminary concept sketches is a big challenge, as any denial may increase the cost of the project. Another challenge is that council policy may contradict project policies or strategies. Thus, keeping everything synced seems a big challenge (Melton, 2011).
Stipulated or Lump-Sum Contract
The biggest legal benefit is that the contractor cannot demand extra money for carrying out the project. Change orders can be minimized, which can keep the cost or the project low. Through stipulated or lump sum contracts, the bidding and selection process becomes easier. The biggest challenge is that there may be any possible change in the project scope, which can also increase the cost or budget. Thus, any change may lead to a legal complication, which may be time-consuming as well.
Cost of Work plus Fee Contract
Some legal benefits and challenges also trigger the cost of work plus fee contracts. The project management is ready to bear the actual cost of the project along with a decided or agreed fee of the work for the contractor. Legally, the contractor cannot change the fee once he decides with the developer or owner. Legally, Contractee has to take benefits of a fall in prices of material. The prominent challenge is that the final price of the contract seems uncertain, as it can create hurdles when setting the project budget (Hpaconsultant.com, 2019).
Cost of Work plus Fee with Guaranteed Maximum Price (GMP) Contract
The use of guarantee maximum price contract is in the limelight due to some benefits and challenges. It is beneficial for a Morris project as expenses or costs can be estimated in advance with higher accuracy. Legally, it is permitted, and developers and contractors may agree on a specific amount before project or construction initiation. If the contractor does not estimate the cost accurately, it may lead to a loss, and it is one of the prominent disadvantages or challenges. The contractor may go against legal prices to prevent losses.
Construction Management (CM) Contract
The construction management contract is quite different from other lump-sum agreements. For instance, the construction management contractor can work on behalf of the principle. In terms of legality, this delegation is always permitted. However, both may be in agreement to avoid any fraudulent or falsified activities. The big challenge is that the whole construction project is to be handed over, and it always increases the project risks.
Design-Build or Design-and-Construct (D&C) Contract
Design and construct contract is also essential, as the contractor has to make a design and initiate the project development or construction process. It is beneficial, as it saves time and the cost of the designer. On the other hand, the big challenge is that the contractor may get away from council policies due to lack of experience or unknown legal elements.
Mitigating potential Challenges of These Contract Types
All these contract types are linked with some key challenges. The best way to mitigate this challenge is to make a cohesive monitoring function. Project management should use key performance indicators or metrics in the contract management process. Another way to minimize the contract challenge is to categorize the contract in terms of value and legal complexity. For highly complicated agreements, it is to be mentioned that automation is a key to making the difference. In all these types of contract management, the most important thing is to have a proper implementation plan. The proper handover procedure and contact management software can be useful to mitigate all these challenges or risks.
Recommended Contract and Rational
The selected contract type is the cost of work plus fee contract, as it is a suitable way to initiate the project or construction. The main reason for choosing this contract is that it can reduce project costs and risks. The contractor and developer have to agree on a certain amount, which is to be paid to the contractor, along with the whole cost of the project. However, controlling the project design and control at the top level is the right approach to reduce the risk. For this particular project, it seems a suitable type of contract as far as risk mitigation is concerned.
Part B: Project Pre-Planning
Major Challenges and Mitigation
The major challenge in the project pre-planning is the two-planning development approval. It is a fact that the council town planners can consider the opinions of neighbors or residents when it comes to constructing a new building. Engaging the local private town planner is also a big challenge, as it can increase the cost of the project management process. The mediation between the client and the consumer may fail, and further, it may increase the cost of the project as well. Another major challenge is to coordinate with the marketing and sales processes. Due to low property sales, contractors are waiting for competitors to observe pricing tactics and make decisions. Thus, coordinating with sales and marketing is complicated, and it should be mitigated. For instance, it can be mitigated through collaboration. The best way to mitigate this challenge is to identify issues timely. Sales and marketing coordination and town planning are two significant challenges. Based on impact and probability, mitigation strategies can be made.
Effective Approach for on Time Delivery
The effective approach is to be used by the project management for on-time delivery. It is a fact that on-time delivery is linked with project efficiency and adequate control. The best approach to enable on-time delivery is agile. It seems an incredible project management approach, which can help to implement the project process in different phases. For instance, to enable on-time delivery, project management can adopt an agile approach because it may help to complete each activity or phase even before time. Overall, the efficiency of the whole project can be improved, and it can ensure visible project delivery on time. For example, in this particular project, a pre-planning process can be divided into several tiny activities to keep the cost of this process low. In the planning and execution, the project team will be able to make some changes with the time instead of directing drastic changes. Due to these frequent changes according to the feedback of the client and stakeholders, the quality is also to be sustained. Thus, it can be said that agile is the best way to ensure timely delivery of the project along with high quality and reduced cost (Vivifyscrum.com, 2019).
Organizing Project Costs: Using Type of Cost Breakdown
Organizing the project cost is mandatory in the project management process. In this particular project, the project team is looking to organize the project cost with a visible breakdown. For instance, in this project, the project team has to procure the cost estimation from a quantity surveyor. After reaching the architectural and engineering documentation, the acquisition of the building permit cost will be visible. Interestingly, it is also to be considered through quantity surveyor. This project cost breakdown is effective, as it can help to prepare tender documents and make a decision regarding a precise pricing strategy. Total development cost and total construction costs are calculated in the case, and it seems an example I this incredible cost break down (Project management skills.com, 2019).
Organizing Project’s Major Deliverables and their Components using WBS
The project deliverables and their major components are in the limelight in this project. For instance, main project activities, which are evident in this construction process, are demolition, foundation, basement build, ground floor slab, townhouse construction, and landscape construction. The major deliverable form of each of these activities can be derived. For example, when it comes to townhouse construction, the major project deliverable is housing facilities for people who are homeless. It can also be used to make money, as profit will be distributed in Australian neighbor countries to support housing. It is the strategic intent of this whole project, and it is a big deliverable. Also, significant deliverables in this mega construction project can be engineering reports, as owners or developers will be navigating these reports to justify the success or failure of the project. On the other hand, site investigation reports, design review, and design documents are also some key deliverables. Based on several project activities, which are broken down, these deliverables can be observed (Project Management Institute, 2013).
Part C: Controlling Communication
Developing a communications management plan
The first step in developing the communication plan is identifying the audience. The project manager has to identify the target people to whom the message is to be delivered. Of course, stakeholders such as engineers, architects, and contractors can be targeted people to portray the message. The second step in the project communication plan is to determine the message type. For instance, in this particular project, project status and project reports are two types of messages, which are to be shared between developers and contractors. Thus, determining the kind of message is imperative to bring clarity to the whole project process. Apart from this step, the next step is to identify or determine the delivery method. It is a crucial step, as the project has to make decisions regarding different techniques such as meetings, presentations, face to face, or email. Communication scheduling is critical, as the contractor is directed to share information weekly. Finally, the determination of the source of the message is also a crucial step in the communication plan. The communication or information will be both top-down and down-top (Pritchard, 2013).
Addressing project stakeholder expectations
The expectations of stakeholders must be met in this project plan. For instance, when intending to manage or control the communication process, it seems imperative to use a participative approach. Stakeholders always expect multiple responses or behavior from the project owners and management. Thus, these expectations can be met by delegating the communication process. For instance, subcontractors, builders, PM, superintendent, client, and architects will be working at the bottom-line of the project. These stakeholders will be encouraged to share their ideas, thoughts, opinions, and reservations (Pritchard, 2013).
Detail necessary to regularly make these stakeholder reports
These stakeholders must be encouraged to share reports regularly. The best way to make them share reports regularly is to provide a pertinent platform regarding communication. The project team can use technology to contact stakeholders at any time to understand the project’s progress. The best thing that the project team can do is train stakeholders to stimulate their capacity to communicate with project managers or contractors. Also, the best thing that the project team can depict is regularly visiting these stakeholders. Supporting or encouraging them to make reports weekly is the right approach. However, efficiency in report making should be brought. In short, the report must be accurate and up to date every week as it can help us to make some improvements and know the whole project progress.
Part D: Project Close-Out
Role of elements in the closeout of your project
Project Acceptance
The project acceptance is a critical element because the project management will decide about the project closure if it is generally accepted by all key stakeholders, especially developers or owners. If the project is accepted, it means it met all requirements of the client or developer. Thus, accordingly, the project can be closed (Melton, 2011).
Contract Closeout
The contract closeout is also crucial, as it indicates that all terms and conditions of the contract are met effectively. It also sets the foundation for project closeout.
Document turnover and archiving
The document turnover is a process of producing or achieving documents mentioning the completion of the project. The detailed documentation regarding project cost and completion is a source of project closeout.
Team performance appraisal
Team performance appraisal is also critical. At the end of the project, the performance can be measured by different methods to reward or compensate employees. Performance appraisal is an indication of project closeout, as workers or stakeholders are free from work.
Team reassignment or demobilization schedule
The team reassignment means the project team has to start another project or phase. It seems like a demobilization schedule. The team reassignment occurs when the project is complete, and stakeholders have some opportunities to perform other works
Coordinating lessons learned component
There are several lessons which are to be learned from the whole project. The project management has to close the project at a good note, and it can be done by coordinating or communication lesson learned (Demkin, 2008)
Conclusion
In the end, it is to conclude that the project team has got the potential to complete all activities on time in this particular construction project. From planning to communication and closeout, every stakeholder has to play his role to achieve project outcomes and goals and objectives. Project MORRIS TERRACE, conducted by (C+B), seems successful if it conducts everything according to plan. All these strategies or methods can be changed with time due to new trends or and changes in the scope. Therefore, project management has to be realistic in this context.
References
Demkin, J. A. (2008). The Architect’s Handbook of Professional Practice. John Wiley & Sons.
Hpaconsultant.com. (2019, April 21). Project Contracts. Retrieved from https://www.hpaconsultant.com/blogs/management/project-contracts/
Melton, T. (2011). Real Project Planning: Developing a Project Delivery Strategy. Butterworth-Heinemann.
Pritchard, C. (2013). The Project Management Communications Toolkit, Second Edition. Artech House.
Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge (5 ed.). Newtown Square.
Project management skills.com. (2019, March 10). Project Cost Estimating Tools & Techniques. Retrieved from https://www.project-management-skills.com/project-cost-estimating.html
Vivifyscrum.com. (2019, March 7). Top 7 Advantages of Agile Project Management. Retrieved from https://www.vivifyscrum.com/insights/advantages-of-agile-project-management
