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NICMARProjectManagement
ThisblogiscreatedtohelppeoplepursuingtheNICMARSODE(schoolofDistanceEducation)ProjectManagementCourse.In
thisblogprojectmanagementconceptswillbeexplainedandalsoapproachtheassignmentswillbediscussed.Thisblogismeant
asanadditionalresourcetosupplementthedistantlearningcourse.

Tuesday,11September2012

PROJECTRISKMANAGEMENT
Assignment
Forthesuccessfulimplementationofaprojectitisessentialthatthepeopleinvolvedinitsimplementationbesensitiveto
therisksinvolvedintheprojectandformulatethemostsuitablestructureforthemanagementofsuchrisks.Thereare
certainvariablesanduncertaintiesincommontomostoftheinfrastructureprojects.Manyriskmitigationtechniquesare
appliedtoinfrastructureprojects.Discussindetailstheriskmanagementtoconstructionwithspecialreferencetoa
projectcurrentlyinprogresswithyourcompany.

STUDY
RiskManagementofConstructionIndustryManagers,thelessonbookcompliedbyNICMAR

KEY
i.Describescopeofprojectinshort

Labels

CONSTRUCTIONQUALITY
CONTRACTSMANAGEMENT
ConstructionFinanceManagement
Assignment
ConstructionPersonnelManagement
Assignment
MANAGEMENTINORGANISATION
ASSIGNMENT
PROJECTFORMULATIONAND
APPRAISAL
PROJECTMANAGEMENT1POWER
PLANTSandENGINEERING
PROJECTPLANNINGAND
CONTROL
PROJECTRISKMANAGEMENT
SAFETYANDENVIRONMENT

ii.Explaintypeofproject
iii.Notedownimportantpointsofperceivedconstructionrisk,projectrisk,riskeconomicrisk,insurance.
iv.Riskmitigationisdoneinconstructioninfrastructuredevelopmentprojects.

STRUCTURE
i.Nameofproject
ii.Scopeofwork

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iii.Importantdetailsproject,cost,time,typeriskinvolved,riskmitigationetc.
iv.Importantpointsfromcontractorsprojectmanagerspointofviewtobemonitored/resolved.

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v.Methodfollowedforadministerandmonitorrisk
vi.Recommendations/Conclusion
vii.Bibliography/Readings

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TYPEOFPROJECT
XYZIMPLITZLTDisadesignconsultancyprovidingtowerdesignsolutionstothetelecomandpowersectors.
Thescopeofourworkincludesthefollowing:
Towerdesign
Designchecking
PreparationofStructuralFabricationDrawings
Buildinganalysisforinstallingarooftoptower.

Alreadyamember?Signin

Preparationofstructuraldrawingsofexistingbuildings(ifbuildingstructuraldrawingsarenotavailable)
Supportingbeamdesignforinstallingrooftoptower.

BlogArchive

Foundationdesignofgroundbasedtower

2012(6)

Estimationsduringtenderstages

September(6)

DynamicanalysisandNonLinearAnalysis.

PROJECTRISKMANAGEMENT

DesignCheckingandstrengtheningoftowers

PROJECTMANATEMENT1:
POWERPLANTS&
ENGINEERING...

Preparationofasbuiltdrawings
OneofthecellularserviceprovidersbythenameofTELESERVICESMHLTDaskedustodesignagroundbasedtower.
Itwasa60metretowerbasedonapieceoflandthattheclienthadacquiredfromthelandownerbyenteringintoa
contractwithhim.Theagreementwasforavalidconsiderationandforadefiniteperiodoftime.Afterthelapseofthe
periodtheclientwouldeitherhavetodismantlethetowerorrenewtheagreementwiththelandownerforafurtherperiod.
Thepartiesinvolvedintheprojectweretheclient,theconsultant,thecontractorandtheoutsourcingcompanieswho
accomplishedtheworkofacquiringthelandfortheclient.Themodusoperandiwasthus:
Theoutsourcingagentwouldacquirethelandshortlistedbytheclientfromthelandownerbydoingthenecessary
groundworkandenteringintonecessarylegalagreementsforavalidconsideration.Theclientwouldthensummonthe
consultantandgivehisrequirementsoftowerheightandloadofantennaecomingonthetower,etc.Basedonthisthe
consultantwouldpreparelayoutdrawingsafterconductingaprelimnarysurveywhetherthepieceoflandwouldbe
enoughforatowerofthatheight.Hewouldthenfurnishthelayoutdrawingsandthenconductthesoilinvestigationofthe
proposedsitetoascertainthesafebearingcapacityofthesoil.Dependingupontherecommendationoftheclient,and
thedatagatheredfromthesoilinvestigationandfromtheclienttheconsultantwouldthendesignthetowerforthe
requiredloadcomingonthetoweralongwithitsfoundationsystem.Hewouldalsodesignthesupportingbeamsforthe
shelterandthedieselgenerator.
Onreceivingthedesigndrawingstheclientwouldthenpassthemontothecontractorearmarkedfortheprojectandhe
wouldthenorderthematerialrequiredfortheerectiondependinguponthebillofmaterialsfurnishedbytheconsultant's
drawings.Theconsultantwouldalsogivethefabricationdrawingsbasedonwhichthesteelsectionswouldbefabricated
insitu.Basedontheerectiondrawingsoftheconsultantthecontractorwouldthenstarterectionofthetowerandits
accessoriesnamelytheshelteranddieselgenerator.Oncetheerectionhasbeendonethencommissioningwould

CONSTRUCTIONQUALITY,
SAFETYANDENVIRONMENT
PROJECTPLANNINGAND
CONTROL
PROJECTFORMULATIONAND
APPRAISAL
CONTRACTSMANAGEMENT
2011(3)

commenceinwhichtheclient'sengineerswouldcrosscheckthecontractor'sworkbysimulatingconditionssimilarto
thosethatwouldprevailundernormalworkingofthetower.Oncethecommissioningisoverthenthesitewouldbe
handedovertotheclientbythecontractor.Theclientwouldthenasktheconsultanttoprepareasbuiltdrawingsofthe
siteshowingtheviewsofthetowerasitisstanding.Inalltheseworkstherearealotofrisksthateachofthepartieshave
tobearandfindoutwaystomitigate.Followingarethelistofrisksthateachofthepartieshavetobear.

RISKSHANDLEDBYEACHOFTHEPARTIESTOTHEPROJECT
Risksfromtheperspectiveofthecellularserviceprovider
RevenueRisk
Revenueriskistheuncertaintyinrelationtotherevenuethataprojectwouldactuallygenerate.Theuncertaintyofthe
revenueofaninfrastructureproject(asopposedtootherindustrialprojects)isbecauseofitspublicnature,whichcarries
withittheuncertaintyintheabilityandwillingnessofconsumerstopayforthebenefitsarisingfromtheproject.Inthis
casetheclientwillbebearingtheriskofspendingonthefacilityandthenhopingthathegetssomeotheroperatorsto
sharethetowerwithhim.Alsothatpeopleinthatregionwillsubscribetomobiletelephonessothathecanrecoverthe
costsofhiserectingatowerinthatregion.
DesignRisk
Thisriskrelatestoanydefectinthedesignoftheinfrastructurefacilityorthedesignrequirementsstipulatedforthe
project.Thisisaninherentriskintheprojectasitisverydifficulttoconclusivelyascertainthatthedamagetothefacilityis
actuallycausedduetothedefectintheconstructionordesignassumptionsmadebytheconsultantordesigndata
suppliedbytheclientortheverydesignitself.Generally,itisthedesigncontractorwhoisresponsibleforthedesign
aspectsoftheproject.Inthecaseoftheprojecttheclienthastoindemnityhimselffromanydamagethatmaybecaused
bytheaccidentalfallingofthetowerduetowindpressureoranyotherreason.Indesignriskitselfthecellularservice
providerhastoindemnifyhimselfvidehispurchaseordersthatheisnotresponsibleforanystandardlawsthatthe
designcontractormayviolate,whethertheyarelaborlawsorlawsgoverningstructuresinthatregionandnational
buildingcodes.Healsoindemnifieshimselfagainstinjurytoanyoftheworkersofthedesigncontractorduringthe
processofconductingthesurvey.Theclientalsoindemnifieshimselfagainstanyfalseassumptionsthattheconsultant
maymakeinthedesigningoftheprojectfacility.Inourprojecttheconsultanthadtomakevariousassumptionsbasedon
thestandardfactsregardingthelandstrataasthelandwassuchthatitwasnotpossibletocollectsitedatausingnormal
methods.
Costsasthemainrisk
Themainriskinvolvedinthegestationstagesrelatetothecostsbeingincurredonthenarrowingdownonasuitableland
forerectionofamobiletower.Thereisahighprobabilitythatthelandmaybedroppedfromthelistofapprovedsitesby
theclientduetopracticalconsiderationslikelackofproperapproachroad,etc.Evenifadecisionistakentodevelopand
implementtheprojectfurther,thereisapossibilitythatthecostsincurredatthisstagemaysimplykeepanincreasingand
mayoccuragainatthedevelopmentalstage.Theremaybeinstanceswherethelandownermaybackoutoftheproposal
giventohimbytheclient.
Socialimpact
Aprelimnarystudyshouldbeundertakenregardingtheimpactoftheinstallationofthetowerinaparticulararea,the
extentofhardshipitmaycausetopeoplelivingthere.Thereisapossibilitythattheownerofthebuildingorlandwhere
thetowerhasbeeninstalledwillnotallowaccesstothecellularserviceproviderformaintainancepurposesinspiteofthe
factthatheisreceivingrentforthepieceoflandoccupiedbytheclient.Thishedoesashesuffersharassmentwhenthe
client'sengineerscomeformaintenancework.Hefacestheriskthatthebuildingorlandownermaydiscontinuethe
arrangementduetoadverseeffectsofthetoweronhumanbeings.
Technicalfeasibility
Aprelimnarystudyoftheengineeringrequirementsandfeasibilityoftheprojectbeingsoughttobeundertakenshouldbe
made.Theremaybeapossibilitythatagroundbasedtowermaynotbesuitableonthelandearmarkedforthesame.
Thesoilconditionsonthelandmaynotbeconducivetoerectionofatowerofaparticularheight.Theorientationofthe
towerthatisrequiredtobeprovidedbyRFpointofviewmaynotbeobtainedduetopracticalconditionsprevailingatsite.
FinancialRisk
Thisriskisthetotalityofallrisksthatrelatetothefinancialdevelopmentsexternaltotheprojectthatarenotinthecontrol
oftheclients.Thisriskiscommontoallthepartiestotheproject.Theserisksinclude:1)risksassociatedwiththe
fluctuationsofforeignexchangerates.2)risksassociatedwiththedevaluationofthelocalcurrency.3)Risksassociated
withthenonconvertibilityornonrepatriationofforeignexchangefromIndia,and4)Risksassociatedwiththefluctuations
ininterestrates.Inourcasethisriskwasprevalentasforeigninvestmentwasbroughtinbytheclientfortheproject.
PoliticalRisk
Politicalrisksareabundleofdistinctrisksthatcanincludenotonlypoliticalfactorsbutalsoadministrative,socialand
economicfactors.Politicalrisksassociatedwithaprojectarecloselyevaluatedastheyaregenerallyoutsidethecontrol
ofthepartiestotheproject,otherthanthegovernmenttoacertainextent.Buteventhegovernmentfixingthepoliciesof
thetelecomindustrydonothavecontroloverallthecategoriesofpoliticalrisks.Itshouldbekeptinmindthatmanyofthe
politicalrisksarisefromthepossibilityofarbitraryactionbythegovernmentandalteringtheframeworkonwhichthevery
foundationoftheprojectrests.Themaincategoriesofpoliticalrisksinclude
Riskofpoliticalinstabilitysuchasriots,revolutions,coupd'etat,terrorism,guerrillawarefare
War,whetherdeclaredorundeclared.
Internationalsanctions
Expropriation
Nationalization
Creepingexpropriation(discretionaryregimes,excessivetaxation,importrestrictions,refusaltoallowor
provideforcollectionorreviewoftarrifs,etc)
FailuretograntorrenewapprovalsandExcessiveinterferenceintheimplementationoftheproject,thereby
causingsevereprejudicetotheconcessionaire.(inthiscasetheTRAI)
ForceMajeureRisks
Theserisksareregardingtheeventsthatareoutsidethecontrolofanypartyandcannotbereasonablypreventedbythe
concernedparty.Theserisksgenerallyariseduetocausesextraneoustotheproject.Thedefiningofforcemajeure
eventsinclude:
Nationalforcemajeureeventscomprisealleventsthatcanbesubmittedtonaturalconditionsoractsofgod
suchasearthquakes,floods,cyclonesandtyphoons.Theseriskssholdbesharedequallyamongtheparties.
Directpoliticalforcemajeureeventsareattributabletopoliticaleventsthatarespecifictotheprojectitself
suchasexpropriations,nationalization
Indirectpoliticalforcemajeure.Eventsarethosethathavetheirorigininpoliticaleventsbutarenotproject
specificsuchaswar,riots,etc.
Inourcasethisriskwasconsideredtotheextentthatastormcoulddisruptoperationsoftowererection
duringtheconstructionstageandthatwouldleadtolossoflifeandproperty.
Constructionrisks

Theconstructionrisksareessentiallyabundleofvariousindividualriskfactorsthatadverselyaffecttheconstructionofa
projectwithinthetimeframeandcostsprojectedandatthestandardsspecifiedforthefacility.Constructionrisks
generallyrelateto:
Risksrelatedtotheavailabilityoflandfortheproject
Suitabilityofthelandfortheconstructionoftheprojectfacility
Delayincompletionoftheconstruction
Costoverrunsinsupplies,transportation,machinery,equipment,newmaterials,etc.
Availabilityofthebasicinfrastructurerequiredfortheconstructionofthefacilitysuchaswater,electricity,etc.
Availabilityofworkforce
Occurrenceofforcemajeureevents,and
Failureofthefacilitytomeettheperformancecriteriaandstandardsspecified.
Inourprojectthisriskwasveryimportantasalltheabovementionedfactorscouldgowrongduringthe
project.
Operatingrisks
Operatingrisksaresimilartotheconstructionrisks.Theyareabundleofrisksassociatedwiththeoperationofthe
infrastructurefacility.Operatingrisksgenerallyrelateto:
Operatingcostoverruns
Risksrelatedtoobsolescence
Risksassociatedwithcomplianceofspecifiedperformancecriteria,qualityandquantity(asthecasemaybe)
Forcemajeurerisksand
Risksassociatedwiththeinabilitytocomplywiththemaintenancestandardsandavailabilityoffundsrequired
fortheoperationandmaintenanceofthefacility

Risksfromtheperspectiveofthecontractor
Abilitytoimplementtheprojectinacommerciallyviablemanner
Themainconcernoftheprojectcontractorwouldbetoensurethatthecontractforleaseofthepieceoflandbetweenthe
clientandthelandownerarewithoutanylegalhindrancesi.e.thetitleofthelandisclearandnootherclaimantswillcome
whenheiscarryingouttheerectionworkoftheowner.Heisconcernedaboutthefactthathedoesnotbecomeabasket
forstoringalltheriskssimplyonthebasisthatitisobtainingacommercialreturn.Inourprojecttherewasaconstant
dangerthatthelandacquisitionteamhadnotdonetheirworkproperlyandthatthetitleofthelandwasnotclearbutstill
theclienthadtochooseitashisradiofrequencyteamhadshortlistedit.
CertaintyofCosts
Eachobligationeachriskandeachuncertaintyhasanattachedcost.Theaimofthecontractorshouldbetoensurethe
projectcanbedeterminedandcontrolledinacertainmanner.Inourprojectthecontractorwasnotpaidanyinitialamount
formobilizationandhehadtodoalltheinitialinvestmentonhisown.Henceitwasverynecessarythathecontrolledthe
coststhatheincurred.
Returnofinvestment
Theprojectandthedocumentationshouldbecapableofprovidinganadequatereturntoinvestorsintheproject.Thisisa
universalnecessityinordertojustifyanyprivateinvestmentinanyventure.Inourprojectthecontractorhadtoarrange
forfinanceonhisownatacertaincosttohimandhencehewouldexpectthatheearnacertainpercentagemorein
doingtheworkthantherateofinteresthehastopayfundstoexecutethework.
DistributionandManagementofRisks
Thedocumentationinrelationtotheprojectshouldbesuchsoastoenablethepassageofvariousrisksthatarenot
withinthecontrolofthecontractorbutithasbeenallocatedtoitunderthemainconcessionorlicense.Thecontractor
shouldnotbestraddledbetweenthevariousdocumentswithrisksithasnocontroloverorisnotcapableofabsorbing.
Thustheriskallottedunderthecontracttothecontractorshouldflowdowntothevarioussubcontractorsunderthe
relevantdocumentswiththesubcontractors.Inourcasetherewerenosubcontractorsandhencethecontractorhadto
beartheriskonhisown.
ForceMajeureRisks
Thisriskisnotincontrolofanypartytothecontractandthecontractorliketheclientisexposedtothesamerisksasthe
client.Thisriskissimilartothatfacedbytheclient.
Providingalevelplayingfield
Herethecontractorisexposedtothevagariesofcompetition.Sincetherewouldbemanycontractorsinterestedindoing
theworkfortheclient,itisnecessarythatthetenderingandbiddingprocessbeastransparentaspossible.The
contractorishoweverattimesexposedtonefariousdealingsofacoterieofcontractorswhocolludewiththeclientsfor
thepurposeofgettingtheworkthusleadingtoriggingofthetenderingprocess.
Inourprojecttherewasagreatdealoftransparencyinthetenderingprocedureandthreeaspectswereconsidered
importantbytheclientinawardingthecontract,onebeingthecontractorspastexperienceindoingsuchworks,secondly,
hispricebidandthirdly,hisfinancialstrength.
FinancialRisk
Thisriskfacedbythecontractorissimilartothatfacedbytheclient.Inourcase,thecontractorwaspaidafterthework
wascarriedoutandhewasgivennoadvancesforhismobilization,etc.Thisresultedinhimresortingtotakingfinance
fromlendersatacost.Hewouldthenpayoffthedebtswhenhegotpaidbytheclient.Insuchcasesthetimingof
paymentmadebytheclientplaysaveryimportantroleandthecontractormustmakethepaymenttermsclearbeforehe
cantakeupthecontract.
PhysicalRisks
Physicalrisksrelatetothegroundconditions,naturalconditions,adverseweatherconditions,physicalobstructionsand
otherphysicalconditionsthatwouldadverselyaffecttheimplementationoftheconstructionactivitiesattheprojectsite.It
happensatsitethatthegroundconditionsarenotwhattheconsultanthasassumedinhisdesign.Inourprojectthisrisk
wasnotfacedbycontractorasthingswerelaidtorestintheconsultant'sreport.
Constructionrisks
Theconstructionriskrelatetothefactorsaffectingtheveryabilitytoundertakeconstructionactivitieslikeavailabilityof
resources,industrialrelations,safetyduringconstruction,qualityofrawmaterial,workmanship,delayinsupplies,strikes
bytransportoperators,shortageofmaterialrequiredfortheprojectconstructiontechniques,failuretocomplywith
constructionmilestones,costofconstruction,etc.
DesignRisks
Thedesignrisksrelateto,asthetermitselfsuggests,therisksassociatedwiththedesignoftheprojectfacility.These
relatetoincompletedesign,designlife,availabilityofinformation,compliancewithstandards,completionofdesign,
viabilityofdesign,etc.Insomecaseseventheremaybeachangeofthestandardsbeingfollowedindesigningsuch
projectfacilities.Thecontractorinhiscontractwiththeclientindemnifieshimselfagainstanyerrorsmadebythe
consultantbystatingthattheerectionhasbeendonebasedonthedrawingssuppliedbythecontractor.

Risksfromtheperspectiveoftheconsultant

Riskofrevenue
Inthistypeofrisktheconsultantmaygivethetotaldesigntotheclient,butmaynotgetpaidforitduetotheinabilityof
theclienttopayup.Incertaincasestheclientmaygetinsolventandtheconsultantmayhavetomakedowithwhatever
heoffersaspayment.Inourprojectwehadnosuchriskastheclientwasverystrongfinanciallyandthisriskdidnot
arise.
Riskfromthecontractor
Thecontractormaymisinterpretthedrawingsgivenbytheconsultantandconsequentlydoerroneousworkoferectionof
tower.Inourcasetheconsultanthadtoguardagainstthisriskastheclienthadgivenworktocontractorswhowerenot
experiencedinerectionoftower.Thisledtomoreconsultantvisitsonthesitetoinspecttheerection.
ForceMajeureRisk
Thisriskaffectstheconsultantalsoandcoversalltherisksexplainedearlierincaseofclientandcontractor.
Riskofchangeinstandards
Theconsultantmayhavetofacetheriskofchangeinstandardsbythestatutorybodieslikenationalbuildingcodes,
Indianstandardcodes,etc.
Riskofwrongdatafromclients
Intheprojectoftowererectiontheconsultanthastoperformasurveytocollectsitedataforincorporatingintothedesign.
Atthistimetheconsultantisalsogivendatafromtheclientlikeloadofthebatteriesplacedinthebuilding,etc.Thisdata
maybeerroneousandtheconsultanthastoguardagainstsuchaneventuality.
Riskagainststatutorybodies
TheconsultantfacestheriskofcancellationofhislicensebystatutorybodiesliketheMunicipalCorporation,etcfor
violatinggeneralstandardsofdesign.TheconsultanthadobtainedtheISO9000certificateforqualityworkandtherewas
anecessitytodocumentwhatevertheconsultantdid.Thequalitycouncilcouldcanceltheawardfornonconformance
withitslaidoutstandards.

RISKMITIGATIONINCONSTRUCTIONPROJECTS.
Riskresponseandmitigationistheactionthatisrequiredtoreduceoreliminatethepotentialimpactofrisk.Thereare
twotypesofresponsetorisk
Oneisanimmediatechangeoralterationtotheproject,whichusuallyresultsintheeliminationoftherisk,secondisthe
contingencyplanthatwillonlybeimplementedifanidentifiedriskshouldmaterialize.
Theriskmanagerisresponsibleforidentifyingtherisksthatarise,takingsuitableactiontomitigateoravoidthemand
evaluatetheconsequencesofhisactions.Usingadequatecontingencyplansrisksthatareunavoidablearemitigated
thusensuringthattheoverallprojectobjectiveoftime,cost,andqualityisnotjeopardized.
Theoptionsofrespondingtoriskarethefollowing:
Riskavoidance
Riskreduction
Risktransfer
Risksharing
Riskretention
Insurance
Allocationofrisks
Riskavoidance
Thisisperceivedastheultimatemitigationstrategyimplyingthattheprojectmaybeaborted.Thismaybecausedby
eliminatingthecauseoftherisk.Alternativecoursesofactionareexamined.Otherexamplesofriskavoidanceinclude
theuseofexemptionclausesincontracts,eithertoavoidcertainrisksorconsequencesofrisks.Incertaincasesthe
projectmaybeaborted.Anexampleofriskavoidanceinourprojectsisthattheclientwhogivesworkofasbuiltdrawing
totheconsultantmentionsonhispurchaseordertotheconsultantthathebeindemnifiedfromanywrongassumptions
madebytheconsultantoranywrongpoliciesfollowedbytheconsultantandwhichareagainststandardslaidoutbythe
statutorybodies.
Riskreduction
Thismethodadoptsanapproachwherebypotentialexposuretorisksandtheirimpactisalleviated.Hereoneconsiders
alternativesolutionsforriskreduction,examiningindetailandobtainmoreinformation.Takemanagementordesign
action.Inourprojectstheclientusedtoemploythisstrategybygivingothercellularoperatorstheuseofthetower
installedathiscostbychargingamonthlyfeeforthesamefromtheoperator.Thiswillreducehisrisktotheextentthat
hiscostofmaintainingthefacilitywillbecomelesstothatextent.
Risktransfer
Thismethodinvolvesthetransferofrisktootherprojectparticipants.Commonly,risksaretransferredthroughthe
placementofcontracts,theappointmentofspecialistsubcontractorsorsuppliersorbytakingoutaninsurancepolicy.In
ourprojectsthecellularoperatorusedtotransfertheriskontheprojectcompany,bynotpayingitanymobilization
chargesoradvancesfortheworkcommencement.Theprojectcompanyinturnwastransferringtherisktothe
contractorsbypayingthemwhentheycompletedtheworkonaparticulartowersite.Thustheyusedthemethodofrisk
transfertomitigatetherisks.Secondlytheclientusedtotransfertheriskofdamagetohisexpensivetowerequipmentby
takingoutaninsurancepolicyforthesame.
Risksharing
Whereaportionoftheriskistransferredwhilstsomeriskisretainedthisisknownasrisksharing.Thisapproachmaybe
adoptedwheretheriskexposureisbeyondthecontrolofoneparty.Insuchinstancesitisimperativethateachparty
appreciatesthevalueoftheportionoftheriskforwhichitisresponsible.Inourprojectoftowererectiononcethetower
erectionandcommissioningwascompletethenthecellularserviceproviderwouldsharethefacilitywithsomeother
operatorsothathecouldearnsomemoneyinthebargainandthussharetheriskthathebearsagainsttheownerofthe
land.
Riskretention
Oncealltheriskmitigationstrategiesareexhaustedandtherearestillsomerisksremaining,thenthismethodisadopted
tonullifythisrisk.Thismeansthatwhentheestimateisbeingdonefortowererectionthensomecontingenciesare
alwaysconsideredintheestimatestoeliminatetheresidualrisksthatremainafterapplyingalltheriskmitigation
strategiesthatareelaboratedearlier.Inourprojecttheconsultantemployedthisstrategytomitigatetheriskthathefaced
fromhisstaffi.e.heusedtobeartheburdenofwrongdesignandassumptionsmadebyoneofhisemployeesin
designingthetower.Theconsultantpaidcompensationtotheclientforanysucheventuality.
Insurance
Thisisatechniqueofrisktransferorriskreductiondependinguponthenatureofthecontractbetweentheinsurerand
theinsurancecompany.Thisisatechniquetominimizethecostoflossduetospecificrisksforacertainconsideration.
Thistechniquewasadoptedbythecellularservicesproviderstotransferthelossduetodamagetotheirtowerstothe
insurancecompanyforaspecificconsideration.Thecontractorwhowasexecutingtheprojectswasalsoresortingtothis
methodofriskmanagementforcoveringhislossduetoanydamagetohisequipmentusedforexecution.
Allocationofrisks
Thiswouldentailathirdpartytoundertakethemeasurestocontrolormitigatearisk,andbeartheadverse
consequences,ifitisnotabletoredresstherisk,therebyinsulatingtheotherpartiestotheprojectfromthedirectimpact

oftherisk.
Themainprincipleforevaluatinganadequateallocationorrisksisthatthepartywhichisbestplacedtocontrolor
redresstheriskorthecircumstancesthatmayariseiftheriskoccursshouldbeallocatedtherisk.

CONCLUSION
Thusweseethatriskcanbemanaged,buttodoso,requiresadeliberateandstructuredapproach.Apragmatic
approachtoriskmanagementshouldbefolloweddependingupontheprojectsuccessdependsultimatelyona
combinationofhonestintention,rigorousanalysisandprofessionaljudgement

References:
1.ProjectfinancingincorporatesectorbyC.G.Karandikar/G.MDave
2.ConstructionFinancemanagement(NCP29)byNICMAR
3.ProjectformulationandAppraisal(PGPM21)ByNICMAR
4.Website:http:/indiabudget.nic.in
5.Website:Censusofindia
6.NSS63rdRound(July2006June2007)
PostedbyAmarpalKaurat05:53

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Labels:PROJECTRISKMANAGEMENT

PROJECTMANATEMENT1:POWERPLANTS&ENGINEERING
Assignment
Enhancingthelevelofenergyconsumption,particularlyinlessdevelopedanddevelopingcountries,isaglobal
challenge.20%ofworldpopulationlivinginindustrializedcountriesconsumes60%ofenergyandremaining80%of
populationhastomanagewithin40%oftotalenergy.Thishasobviouslyresultedinwidedisparitiesbetweenthe
standardoflivingandqualityoflifeofhighenergyconsumingcountriesononehandandthosewhodonothavethe
opportunitiesofadequateaccesstoenergyontheother.Itispreciselyforthisreasonthatdevelopmentofdifferent
sourcesofenergyandincreaseinitsconsumptionhasbecomeapriorityagendaofallthedevelopingcountries.
Inthelightoftheabove,prepareanassignmentonhowtosolvetheproblemofenergydeficiencyinIndiabyalternate
sourcesofenergy.

INTRODUCTION
Indiaisoneofthefivefastdevelopingcountries.
Energyistheprimaryandmostuniversalmeasureofallkindsofworkbyhumanbeingsandnature.Whateverhappensin
theworldisonlytheexpressionofflowofenergyineitherofitsforms.Energyisacrucialinputintheprocessof
economic,socialandindustrialdevelopment.Energyconsumptioninthedevelopingcountriesisincreasingatafaster
rate.Asconventionalenergysourcesaredepletingdaybyday,utilizationofalternativeenergysourcesistheonly
solution.
Indiahasmaderapidstridestowardseconomicselfrelianceoverthelastfewyears.
Althoughwehaveseenanimpressiveincreaseininstalledcapacityaddition,frombarelyabout1,350MWatthetimeof
independence(1947)toabout160,000MWtoday,over90,000MWofnewgenerationcapacityisrequiredinthenext
sevenyears.Ontheenergydemandandsupplyside,Indiaisfacingsevereshortages.
Theincreasingappetiteforenergythathasdevelopedintherecentpasthasbeenfurthercomplicatedbyrapidly
diminishingconventionalsources,likeoilandcoal.Tofurtheraddtotheproblemsofincreaseddemandandconstrained
supply,thereareseriousquestionsaboutpursuingafossilfuelledgrowthstrategy,especiallyinthecontextof
environmentalconcerns.Thechallengefacingadevelopingnationsuchasoursistomeetourincreasingenergyneeds
whileminimizingthedamagetotheenvironment.

BENEFITSOFALTERNATIVEENERGYOPTIONS
Alternativeenergyoptionsenablelocalinstitutionstomanagetheirownenergyneedsandthusproviderural
developmentopportunities.Thissituationencouragesdecentralizeddecisionmaking,whichhasfarreachingimplications
forthegovernanceofacommunity.Inaddition,disseminationandpopularizationofenergyefficientdevicesand
alternativestoconventionalfuelscandothefollowing:
1.Providebetterlighting.Betterlightingenablesthepoortostretchtheirperiodofeconomicactivitytheirchildren
canhelpthemindailychoresandthenstudyintheevenings.
2.Helptheenvironment.Efficientuseofconventionalsourcesofenergyoruseofrenewableenergyhelpssavethe
environmentfromfurtherdegradationandgivesitanopportunitytoregenerate.
3.Providesustainablefuelsystems.Aforestationandagroforestry,combinedwiththeintroductionofenergy
efficientdevices,canhelptocreateasustainablefuelusesystemwithintheruralcommunityandsustainthe
ecologicalbalanceofaregion.
4.Benefitwomen.Lowerdependencyonfuelwoodandotherhouseholdfuelsourcesreducesthedrudgeryof
womenbyshorteningoreliminatingthedistancestheytravelforfuelcollection.Theimprovedcookstove,for
example,hasbeenassociatedwithanaveragenetannualsavingofsevenpersondaysoflabourayearinIndia.
5.Benefithumanhealth.Useofimprovedcookstovesandbiogasplants,forexample,helpsreduceoreliminate
healthproblemsassociatedwithusingconventionalcookstoves,includingrespiratorydiseasesandeye
problems.
6.Enhanceincome.Alternativeenergysourcescanprovidelocalemploymentopportunitiesthroughdirectuseof
energyinsmallscaleindustryandagriculture,throughconstruction,repair,andmaintenanceofenergydevices,or
throughthesaleofenergytolocalutilities.InIndia,forexample,biomassgasificationsystemsareusedtodry
horticultureproduce(suchaslargecardamomandginger).Anotherexampleistheuseofsolarwaterheating
systemstomeetthehotwaterdemandofhotelsandhospitals.

THEMAJORAREASOFINTERESTINALTERNATIVEENERGY
Windenergy
Solarenergy
Biogas/Biomass
EnergyFromWaste
Otheralternativesourcesofenergysuchasfuelcell,hydrogenenergy,tidal,geothermal,energy
management,etc

ENERGYSCENARIO:SupplyandDemand

Fig1:Sourcesofformsofenergysupply

Fig2:Demand

India'senergyBalance

Conventionalenergysupplyscenario

Nonconventionalenergysupplyscenario
TableshowsthestatusofrenewableenergytechnologiesinIndia.

ALTERNATIVEENERGYSOURCES
Asseenfromabovefacts,thealternativesourcesofenergyprovideuswithhugeadvantagesinourstruggletosolveour
energycrisis.Nowletuslookathowexactlywestandintermsofthesesourcesandevaluatethecurrentpatternof
development.

Windenergy
WindpowerisknownasGreenPower,becauseofitstechnicalandcommercialviabilityanditsenvironmentfriendly
nature.Thespecialfeaturesofwindenergythatmakesitattractivearezerocostfuels,lowgestationperiod,quicker
benefitsandusefulnessforsustainableeconomicdevelopment.

WindElectricconversionSystem

PresentScenarioofWindEnergyinIndia
Withaninstalledcapacityof2,483MWasonMarch31,2004,Indiaisnowthefifthlargestwindpowerproducingnation
intheworldafterGermany,USA,SpainandDenmark.Today,IndiahasearnedrecognitionasanewWindSuperPower.
ThecapitalcostofwindenergyprojectsinthecountryrangesfromRs.4croretoRs.4.5croreperMW.Thecostof
powergenerationisestimatedtobeRs.2toRs.2.50perKWh,dependingonthesite.Thecostperunitofpowercomes
downto50KWh,fiveyearsaftertheprojectcommissioningduetothecostoffuelbeingnil.
Thereafter,forthenext15years,itwouldstayatthislevel,astheonlyrecurringcostwouldbeontheoperationsand
maintenanceoftheplant.Therefore,windharvestedpowerisbothcheaperandreliablethanotherconventionalsources
ofpower.
Needfortheuseofenergythroughsolar,windandbiomasssourcesinremoteareasisincreasingandwillputthenation
attheforefrontofrenewablepowerusedwiththegovernmentrecentlyproposingrenewableenergystandardforthe
nation.
ApressreleaseontheWebsiteforthePressInformationBureau(PIB)inNewDelhioutlinestherenewableresources
thatarecurrentlyutilizedinIndia,andtheGovernmentsCommonMinimumProgramtoestablishenoughrenewable
energysourcestoelectrifyallIndianvillagesby2010.
Undertheprogram,anadditional4,000MWofpowerfromrenewablesourceswouldbeaddedtothenationscurrent
powergenerationby2007,andthegovernmenthassetagoalofelevatingtheshareofrenewableenergysourcesto
10%by2012.
Currently,accordingtotheBureau,renewableenergycontributesabout5,000MWofthenationspowerneeds.Thatis

only4.5percentofthetotalinstalledgeneratingcapacityfromallavailablepowersourcesinIndiaWindpoweralone
accountsfor2,483MW,whichmakesthenationswindenergyprogramthefifthlargestintheworld.Thefeaturesofwind
energythatmakesitattractivearezerofuelcosts,andquickerbenefitsandusefulnessforsustainableeconomic
development.Grosswindenergypotentialinthecountryisestimatedat45,000MW,andthestateswithhighwindpower
potentialareTamilNadu,Maharashtra,Gujarat,AndhraPradesh,Karnataka,Kerala,RajasthanandMadhyaPradesh.
Thedevelopmentofinfrastructurefacilities,willexpeditetheprocessofeconomicdevelopment.Energyisthemost
crucialinputforpowergenerationprojectsandthiswillcertainlycontributetothesocioeconomicdevelopmentofthe
country.Evenafterrapidindustrialization,Indiaisstilldependentonagriculture,whichisthebackboneofIndian
economy.Toincreasetheagricultureproductionirrigationfacilities,forwhichelectricityisneeded,havetobeinstalled.
Ruralelectrificationisveryessentialforthesocialdevelopment.Energygenerationbywindreducesthegenerationcost
andwillhelpinbalancingthecostofenergy.
WindenergyispollutionfreeaswindfanshavepotentialtoreduceCO2emissions.Windenergyisinexhaustible,
environmentfriendly,emitsnopollutant?orwasteheatandneedsnocoolingwater.
Indiaisoneofthefewcountriesintheworldthathasmadesignificantattemptstoharnesstheseindigenousenergy
sources.
Windpowerpotentialofthecountryisestimatedtothetuneof20000MW.Bytheendof20thcenturyenergyproduction
throughnonconventionalenergysourcesisabout6000MWthroughbiomass,followedby5000MWfromwindenergy
and2000MWfromsolarenergy.Ofallthesesources,windpowerisfoundtobemostcosteffectiveandeconomically
viable.IncollaborationwithPioneerAsiaWindTurbines,adivisionofPioneerAsiaIndustries,Chennai,isoffering850kw
windturbinesinIndia.AnindependentwindfarmdevelopinginIndiaisalsoprovingtobesuccessfulwiththe
achievementsofChennaibasedIndioWindEnergyLtd.
Aspecialmentionhastobemadeabout,MuppandalinTamilNadu,whichhasthehighestnumberofwindfarmsinAsia
andthethirdhighestintheworld.Itshighestcapacityutilizationof42%hasbeenachievedinacommercialproject
followedbyJogimatticinKamataka.Theindustryaverageis20%.
Basedonthecapabilitiestheministryofnonconventionalenergysources,itisplannedtogetanadditional15,000MW
windpowercapacityduringthe10thFiveYearPlan.Fastergrowthofwindpowergenerationinthecountryisnecessary
todoseinthegapbetweentherealandpotential,asenvisagedbywindindustryandenvironmentalists.
GujaratisoneofthemanypotentialstatesinIndiafordevelopmentofwindpowerprojects.
Thereare18windmonitoringstationsinoperationand12siteshavebeenidentifiedwithannualmeanwindspeedof18
KMPH(Kilometerperhour)andabove.ManycompaniesareengagedinthefieldofmanufactureandinstallationofWind
TurbineGenerators.NEPCMICONLtd,aChennaibasedcompanyisthepioneerandleaderinIndiaforwindenergy
technology.Thecompanyhascreatedwindfarmof178MWwith711WindTurbineGeneratorsandhascreatedAsias
largestwindfarmAnothercompany,whichisharnessingthewindforpowerisWindiaPowerLtd,ajointventurecompany
promotedbyWeizmannLtd.andNedWindRhenenofNetherlands.TheymainlymanufactureandmarketTurbine
Generators(WTGs)inIndia.
SomeoftheworldsmostprominentnamesinwindpowerindustrylikeNEG,Micon,Vestas,Enercon,Ecotechia,GE
windetc.arealsoinIndiawithfullyownedsubsidiariesorasjointventureswithIndianpartners.
HerespecialmentionhastobemadeoftheProjectPawanshakti(meanswindpower)inGujarat.Pawanshaktiisthejoint
ventureofIndianinitiativeandexpertisewithDanishtechnicalandfinancialassistance.WiththehelpofDanish
InternationalDevelopmentAgency(DANIDA),DepartmentofNonconventionalEnergySources,MinistryofEnergy,
GovernmentofIndia(DNES)andGujaratElectricityBoard,theGujaratEnergyDevelopmentAgencyhasexecutedthe
projectinarecordtimeofeighteenmonths.ItissituatedinLambavillage,50kmnorthofPorbandarontheSaurashtra
coastinGujaratState.ProjectPawanshaktiwithitssophisticatedtechnologycaneasilyprovidepowertoirrigate10000
hectaresofland.Theprojectgenerates20millionunitsofelectricalenergyeveryyear.
AnotablefeatureoftheIndianprogrammehasbeentheinterestamongprivateinvestors/developersinsettingupof
commercialwindpowerprojects.Thegrosspotentialis45,000MW(sourceMNES)andatotalofabout1869MWof
commercialprojectshavebeenestablisheduntilMarch2003.About8.8billionunitsofelectricityhavebeenfedtovarious
Stategridsfromwindpowerprojects.
ThebreakupofprojectsimplementedinprominentwindpotentialstatesisgivenintheTable

PresentScenarioofSolarEnergyinIndia
Indiaisblessedwithabundanceofsunlight,waterandbiomass.Toacceleratethemomentumofdevelopmentandlarge
scaleutilizationofrenewableenergysources,theIndianrenewableEnergyDevelopmentAgencyLimited(IREDA)was
incorporatedinMarch1987undertheMinistryofNonConventionalEnergySources(MNES),GovernmentofIndia.By
2010,IREDAhopestoaddabout3000MWofpowergenerationcapacitythroughrenewableenergyprojectsitfunds.

Moreandmorepossibilitiesarebeingexploredinenvironmentfriendlyenergyfields.IREDAestimatesapotentialof
5,000trillionkwhperyearofthesolarthermalenergy.
3millionsquaremetersofsolarthermalsystemshavebeeninstalledproviding15millionlitersperdayofhotwater.In
addition,thereare372,293solarcookers.ThepublicsectorunitsCELandBHEL(BharatHeavyElectricalLtd)arethe
majormanufacturersofsolarcellsinIndia.Intheprivatesector,RESPVandTATABPSolar(India)arethemajorplayers.
Inaddition,PentafourSolecTechnologyLtdisanewandpromisingentrantinthefield,settingupasolarcells
manufacturinglineof3MWperannum.Productionefficienciesof13percentarebeingobtainedforcellsmanufacturedin
Indiaforsinglecrystalsilicon.
ThedemandinIndiaofsinglecrystalPVmodulesin1994was5.6MW.TheIndianDepartmentofTelecommunications
stillforms70percentofthedomesticmarket.
Therearealso954PVcommunitylights/TVandcommunityfacilities85,000PVdomesticlightingunits/Lanterns32,872
PVstreetlightsand1,373PVwaterpumps.Indiareceivesagoodlevelofsolarradiation,thedailyincidenceranging
from4to7kWh/m2dependingonlocation.Solarthermalandsolarphotovoltaictechnologiesarebothencompassedby
theSolarEnergyProgrammethatisbeingimplementedbytheMNES.The
Programme,regardedasoneofthelargestintheworld,planstoutilizeIndiasestimatedsolarpowerpotentialof20
MW/km2and35MW/km2solarthermal.Thecountryhasalsodevelopedasubstantialmanufacturingcapability,
becomingaleadproducerinthedevelopingworld.TheprincipalobjectiveoftheSolarThermalProgrammeisthemarket
developmentandcommercializationofsolarwaterheaters,solarcookersetc.
Solarwaterheatinghasbeenappliedinawidevarietyofcircumstancesfromindividualresidencestohotelstoindustrial
processes.
TheMNEShasbeenpromotingthesalesofboxsolarcookerssincetheearly1980s.In
March1999theworldslargestSolarSteamCookingSystemwasinstalledatMountAbu,Rajasthan.Itisahybridsystem
withbackupoilfiredboilersandisdesignedtopreparefoodfor10000people.ThereisalsoaseparateSolarBuildings
Programmeaimedatcreatinganawarenessofthepotentialforsolarefficientbuildings.Thepassivesolardesignconcept
isaclimateresponsivearchitecturalpracticethatisnowbeingresearcheddevelopedandimplementedthroughoutthe
country.
ASolarPVProgrammehasbeendevelopedbytheMNESforthepasttwodecades,aimedparticularlyatruraland
remoteareas.TheMNEShasinstitutedaplanforestablishingsolarPVpowergenerationof1MWforuseinspecialized
applications,voltagesupportatruralsubstationsandpeakshavinginurbancenters.Atthepresenttime15grid
interactivesolarPVpowerprojectshavebeeninstalledinsevenstatesandfurther10areunderconstruction.
Solarwaterheaters(SWHs)haveprovedthemostpopularsofar.Aconservativeestimateofsolarwaterheatingsystems
installedinthecountryisover475000sq.metersoftheconventionalflatplatecollectors.Solarwaterheatersarecost
competitiveinmostapplicationswhenyouaccountforthetotalenergycostsoverthelifeofthesystem.
Solarphotovoltaic(PV)fordecentralizedpowersupplyarefastbecomingpopularinruralandremoteareas.Today,solar
PVsystemsareatworkconvertingtheradiationofsundirectlytoelectricity.PVgeneratedpowerhasthreemain
advantagesoverallothertypesofremotepowergenerationfreeinexhaustiblepower,simplicityandlowmaintenance.
PVpowerispracticalandextremelyhandywhereaccesstoconventionalelectriclinesisdifficultandcostly,andforlow
andportablepowerneeds.

Conclusion
ThefutureisbrightforcontinuedPVtechnologydisseminationaroundtheworld.PVtechnologyfillsasignificantneedin
supplyingelectricity,creatinglocaljobsandpromotingeconomicdevelopmentinruralareas,whilealsohavingthe
positivebenefitsofavoidingtheexternalenvironmentalcostsassociatedwithtraditionalelectricalgeneration
technologies.Peoplewhochoosetopursuearenewableandsustainableenergyfuturenow,aretheonesshowingthe
wayforthefuture.Solarenergyispresentlybeingusedonasmallerscaleinfurnacesforhomesandtoheatup
swimmingpools.Onalargerscale,solarenergycouldbeusedtoruncars,powerplants,andspaceships.

ENERGYMANAGEMENTTHEBIGGESTENERGYSOURCE
Overthelastfewyearsithasbeenobservedthatpresentandupcomingtrendsinindustrialaswellasbusiness
demands,strenuouscompetition,growingpopulation,mechanizedlivingstylesarecausingincreaseinenergydemands.
Advancedtechnologicaldevelopments,whicharechangingataveryfastrate,areaddingtothesedemandssubstantially.
Theeaseofuseandlowcost,petroleumbasedfuelsgaineddominantpositionasenergysourcesoveralongperiod.
Duetothecontinuouslyincreasingconsumptionoftheseenergysources,thenaturalstocksofthesesourceshave
considerablyreducedwithtime.
Hencethesesourceshavelosteconomicleverageleadingtoincreaseintheuseofalternatives,suchasbiomass,solar
andwindenergy,whichhavebecomeattractive
Presentscenarioregardingwastageofenergy
Itisobservedthatmuchoftheenergyiswastedinvariouswayswhichresultsindecreaseoftheenergysourceswithout
anyservicetothemankind.Afewoftheseare,
Poorroadconditionresultsinmorefuelconsumption,morewearandtearofvehicles,highermaintenancecostof
vehicles,morereplacementofspareparts,moreaccidentsetc.Accidentsaloneresultinfurtherenergylossbesides
otherseriouslosses.Thisenergylossiscontinuousandverybig.
Poormaintenanceofmachineryandequipmentsinindustries,othercompanies,officesetc.resultinwastageofenergy.
Onecanimaginetotalenergylossinthisform.
MunicipalCorporations,NagarParishadsandGramPanchayatsworkincludeelectricityandwatersupply.Thereare
manyreasonswecanobservehowagreatamountofenergyiswasted.Watersupplyneedsahugeenergyrightfrom
constructionofdamstillitreachestheconsumer.Hencewasteofonedropofwaterisagreatenergyloss.Sameisthe
casewithelectricenergy.Intheyear1990inaseminaronenergycrisis,onepaperwaspresentedwhichstatedthatina
citythecostofelectricitywastedduetoearlyswitchingonandlateswitchingoffofstreetlightswasRs.64,00,000.
Hence,totalwastageinthistypeisoftheorderofcrores.
Wastageofenergyinthedomesticuseisofahighorder.Muchoftheenergyislostduetomisuseornonrequireduse.
Wastageofenergyintheformofelectricityandwaterisofaveryhighorder.Alongwithusualknownwastagethereisa
greatdealofindirectwastages.Forexamplepoorqualityseedswillconsumeenergybutwillnotgiveexpectedyield.

Therearesomanysuchpracticallosseswhichcallforbetterenergymanagement.Duetothecontinuousincreasein
consumptionoftheseenergysources,thenaturalstocksofthesesourceshaveconsiderablyreducedwithtime.Hence
thesesourceshavelosteconomicleverageleadingtoincreaseintheuseofalternatives,suchasbiomass,solarand
windenergy,whichhavebecomeattractive.
Methodologytodevelopenergyconversionsystem
Tomakeasystemalmostwastagefree,rightfrominitialstagesthesystemshouldbedevelopedadoptingDesignForSix
Sigma(DFSS)methodology.Stepsinvolvedwillbe
Define:detailsincludingpurpose,elementsinvolvedlikemachineries,transmission,distribution,useshouldbeminutely
decided.
Measure:Detailsofmeasurementsysteminallthephasesshouldbedecided.
Analyze:Theelementsofthefirsttwophasesbethoroughlyanalyzedsothatthesystemcouldeffectivelydesigned.
Design:Basedontheabovephasessystemshouldbecompletelydesigned.
Verification:Designistobeverifiedusingproblemredefinitiontechniqueandafterpracticalverificationfinal
implementationistobedone.
Methodologytouseenergy
UseofenergyshouldalsobebasedonSixSigmamethodology.
Define:Definethepurposeofenergyuseclearly.
Measure:Measuretheperformance.
Analyze:Analyzetheperformance.
Improve:findwaystoimprovetheperformance.
Control:decidetheparameterstobemaintainedforthefutureandseethattheyarewithinthecontrollimits.

Conclusion
Alongwiththemethodologiessuggestedhereoverallplanningoftheenergysourcesshouldbedoneusingthese
methodologieslikewhichsourceofenergyistobeadoptedforwhichpurpose.
Inhillyareaswindenergymaybethebestchoice.Solarenergyisbestoptionforstreetlights.
Biogasenergymaybethebestalternativeinremotevillages.
Adoptionofthesemethodologieswilldefinitelyleadtocosteffectiveuseofenergy.Itwillalsohelpconventionalsources
tolastlongandthealternativeonesbethemostusefultothemankindButthisdefinitelyneedsacompletecultural
change.LetusallworktowardsmakingitpossibleandmakeIndiamoreenergetic.

References
1.M.L.MckinneyandR.M.SchochEnvironmentalScienceSystemsandSolutionsWebEnhancedEd.1998,Published
byJonesandBartlettPublishers.
2.W.P.Cunningham&B.W.SaigoEnvironmentalScience1999PublishedbyWCB/McGrawHillDowntoEarth
Science&EnvironmentfortnightlyVariousIssues
3.IndianExpressNewspaperWindPowerSupplement
4.Website:www.windpowerindia.comandotherrelatedwebsites
5.AshokV.Desai,Bioenergy,WileyEasternLtd.NewDelhi,India,1990,pp6.
6.KaiYangBasemElHaik,DesignforSixSigma,ARoadmapforProductDevelopment,McGrawHill,NewYork,
2003,pp135
7.GregBrue,SixSigmaforManagers,TataMcGrawHillPublishingcoLtd.2002,PP79131
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Sunday,9September2012

CONSTRUCTIONQUALITY,SAFETYANDENVIRONMENT
Assignment
YouhavebeenselectedasaprojectmanagerforaprestigioushighrisebuildinginMumbai,whichwillbehousingvery
richpersonalitiesfromindustryandfilmworld.
YourcompanymanagementhasaskedyoutoformalizeQualityManagementSystem(QMS)forinteriorfinishes,
Plumbingandpreventionofrainwaterseepagesothattheoverallqualitystandardandimageofcompanyisraised.

INTRODUCTIONtoQUALITY
"Thelevelofqualityofacivilwork(orpartofit)canbemeasuredbythedegreeoffulfillmentof
itsconstructionspecificationandstandardswithintime.
Constructionisonetimeactivity.Itaffordsnosecondchanceofmodification,repairorrejectiononcetheconstruction
workiscompleted.
Withtheincreaseincomplexityandthesizeofconstructionoperations,theresponsibilityforensuringqualityhas
graduallyshiftedfromworkertosupervisorofinspectionandlatertothequalitycontroldepartment.
Itiswellknownfactthatthequalitycannotbeconstructed.Ithastobedesignedintoaprojectsystem.QMStherefore
startsfromthedesignstageitself.
QMSistheresponsibilityoftheprojectauthority.Theownerorhisrepresentativeformulatesthepolicy,determinesthe
scopeofthequalityplanning&management.

STANDARDS&SPECIFICATIONSformaking&transportconcrete
CONCRETEMAKINGSTANDARDS&SPECIFICATIONS
Thequalityofconstructiondependsuponrightmaterialused.thecorrectmethodfollowedandproduceendproductof
acceptableperformance.Themeansofqualitycontrolaretests,inspection,supervisionandanalysisofdataetc.Quality

testsareconductedinlaboratoriesandinspectionandsupervisionarecarriedoutonthesiteanddataanalysisdoneby
expertsintheoffice.
SPECIFICATION:
Thestandardsandspecificationsforconcreteandvariousingredientsareuniversallystandardizedandtheyarerequired
tobeinconformitywithsame.IndianStandardsISforconcreteanditsbasicingredientsvizcementaggregatecoarse
andfine,wateradmixturesandvariousofconcreting,itsplacementandfinalacceptanceshouldbeasperIS
specification.
ConcreteMaking:
RawmaterialforconcreteisCement,Aggregate&Water.Nowallthestandardsandspecificationsformakingofa
particularconcreteareaccordingtoASTMorBSorIS.Testingistobedoneateachlevelforqualitycontroli.e.inthe
followingorder:
Cementtest:
Settingtime
Soundness
Strength
Finenessandgrading
Chemicalcomposition
SpecificGravity
Heatevolution
Waterretention
Falseset
Adulteration
Aggregatetest:
PhotographicExamination
Grading&surfacearea
Bulkunitweight
Specificgravity
Absorptionandsurfacemoisture
Chemicalstability
Resistancetofreezeandthaw
Abrasionresistance
Crushing
Impactvalue
Samplingaggregate
Watertest(forimpurities):
Organic
Inorganic
Sulphates
Chlorides
Suspendedmatter
Hydrogenionconcentration
Seawater
sugar
Concretetesting
ThefollowingEuropeanstandardtestmethodsforconcretehavealreadybeenpublishedasBSENs:
BSEN12350Testingfreshconcrete
Part1:Sampling
Part2:Slumptest
Part3:Vebetest
Part4:Degreeofcompactability
Part5:Flowtabletest
Part6:Density
Part7:AircontentPressuremethods

BSEN12390Testinghardenedconcrete
Part1:Shape,dimensionsandotherrequirementsforspecimensandmoulds
Part2:Makingandcuringspecimensforstrengthtests
Part4:CompressivestrengthSpecificationfortestingmachines
Part5:Flexuralstrengthoftestspecimens
Part6:Tensilesplittingstrengthoftestspecimens
Part7:Densityofhardenedconcrete
Part8:Depthofpenetrationofwaterunderpressure
EN12390:Part3Compressivestrengthoftestspecimenshasbeenapprovedatsecondformalvoteandwillbe
publishedbyBSIinduecourse.

CONCRETETRANSPORTINGSTANDARDS&SPECIFICATIONS:
MoistureContent
Segregation
Settingtime
SQC:
StatisticalQualityControlisbasedondatacalculatedwithallthespecificationssothattogettherelevantworkerseither
skilledindifferentworksorunskilledtotransfertheloadetc.Whichinreturnwouldgivequalityintheproject.

INSPECTION&CHECKLISTS:
Whyarethey:
Preparationofinspectionandchecklistsareveryimportantateachstagetocontrolthequalityworkintimealso.Ifno
inspectionsorchecklistsarepreparedthentheremaybeablunderinconstructioneitherinspecificationorinstructural
details.

Checklists
arepreparedfortherecordofinspectiondoneatdifferentstages.Topreparechecklists,isanessentialandlegalforany
typeofwork.Checklistofallservicessanitaryfittings,Electrificationworkwiring,surfaceandconduitwiring,Air
Conditioning,cablelaying,Ducting.
Howmuchuseismadeofthem:
Useofaninspectionorchecklistcouldbeafterashorttimeoralongtimeperiodifanyuncertaintyhappens.Atthat
momenttheauthoritiescancalculatetheconditionsthatwhatcouldhavebeenhappenedondisastertimeandthatwhere
wasthefault.
Inmyexperience&opinion:
Thereshouldberegularinspectionsandpreparationofchecklistsatthestartoftheevent,theninmidwayoftheactivity
andatlastandattheendoftheevent.
HOWTOASSUREQUALITY:
AssuranceofqualityisdoneatmanageriallevelwiththeuseofMIShavingsupportsystemateachlevel.Forthegiven
projectthefollowingauthoritieswouldgivetheassurance:
Architect
Interiordesignerforspecifications
Civilengineer(Structural)
CREATINGQUALITYASSURANCEORGANISATION/UNITATTHESITE
Person/Officerstheirqualifications&experiences:
BuildingInchargewithaminqualificationB.E.Civilandanexperienceof10yrsinthebuildingindustry
SiteEngineerwithminqualificationasdiplomaincivilengineering
Surveyorwithminqualificationasdiplomaincivilengineering
ResidentArchitectwithminqualificationasB.Arch.
Functions&Duties:
Everydaydevelopmentatthesiteforthevariousjobsneedtobecheckedasperthebarchartsubmittedbythebuilderat
thebeginningoftheactivities.Everydaythesurveyorwillgoatthesiteandmeasurethevariousquantitiesoftheitems
/jobsdone.Afternotingdownheshallhandoverthesametothesiteengineeremployed.Siteengineershallaccordingly
gotothesite,checkthequalityofworkandcanrecheckthedetailofthequantitiessubmittedtohimbythesurveyor.This
shallcontinueforaweek.Attheendoftheweekthisinformationshallbemadeinatabularformandshallbesenttothe
buildinginchargedulysignedbythesurveyorandthesiteengineer.Alongwiththisreportwillalsobesentmentioning
thebarchartfollowedforthejobstobedone.
Arepresentativefromthearchitectsfirm(Residentarchitect)shallvisitthesiteatleastonthealternativedays.Resident
architectwillcheckthatthedetailsofthedesignsubmittedbythem,arebeingfollowedornot.
Reportingtowhom:Thesurveyoratthesiteshallsubmitthedetailofquantitiestothesiteengineer.
Thesiteengineershallmakehisweeklyreportsoftheworksdoneandtherequirementofthedrawingsneededatsite
andsubmitittothebuildingincharge.
Thebuildinginchargeshallaccordinglymakehisownsummeryoftheprojectandshallinstructthebuilderandthe
architectaccordingtotherequirement.Heshallbevisitingthesiteoftenormakesurprisevisits.

Methodsofqualityassurance:
Testingofincomingmaterials:alreadydiscussedinspecificationsandstandardsformakingconcrete.
Inprocessinspections&testing:forthequalityassuranceofthevariousjobsbeingdoneatsitebyregularvisitsofthe
siteengineerandthebuildinginchargeatdifferentstages.
Testingatfinishingstages:Atfinishingstageforallthedifferentactivities,oneneedstocheckthealignmentofthe
internalfinisheswiththewallsandfloorsrespectively.Theslopesandthefinishesareincompliancewiththe
specificationssubmittedbytheconstructionagencies.
Penaltiesfornoncompliance&incentivesforcompliance:AsIhavealreadymentionedearlierthatthebarchartforall
thejobstobedoneshallbepreparedinthebeginningoftheproject.Afterallthediscussionsofthebuilder,architect&
buildingincharge,aflowchartshallbemadedulysignedbyallshowingthatwhichjobistobecompletedatwhichtime.
Whiletheconstructionisgoingonifthebuildinginchargenoticesthedelayinanyactivitywillsendanoticetothe
concernedagency.Itthenbecomesthedutyoftheagencytolookintothedelayandcoveruptillthenextstageofthebar
chart.Nowifthisagencyfailstodoso,thebuildingincharge/employershallhavealltherighttoimposethepenalty
clauseaccordingtotheagreement.

Conclusion
Civilengineeringprojectsandconstructioncompanieshavebeguntoattracttheattentionofsocialscientistand
managementexperts.SocialscientistarguethatittakesmorethanjustSQCandtechnicalskillstoproducequality.It
requirestherestructuringoftheprojectorganizationthewaytheythink,workandinteract.Managementexpertsuggests
thatqualitymonitoringevaluationandmanagementinformationsystemsshouldbebuiltintotheconstructionprocessat
allstagesfromdesigntoexecution.

BooksReferred:
NICMARstudymaterial
PMBOK
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Saturday,8September2012

PROJECTPLANNINGANDCONTROL
Assignment
ANewInternationalcricketfacilityistobeconstructedoutsideamegacityoverapieceofland.Facilitytoinclude:
1.CapacityofSpectators:80,000
2.day/Nightplayfacility
3.TVCameraplatforminsixdirections
4.Safetyofplayersfromspectators
5.PavilionforVIPstosit:300seat
6.Parking(adequatespaceforallabove)
Timeavailableis16monthsincludingmonsoon.Costofconstructionneedtoberecoveredin5years.Averagecostof
Ticketis100/.Approximate4matchesperyear.
SubmittheProjectReport:
1.IdentificationofProject
2.stagesindevelopmentofProject
3.workbreakdownstructuretoundertaketheproject
4.MilestoneandCPMchartforcorporatecontrol
5.Costofproject.

PROJECTIDENTIFICATION
Theprimarythingabouttheanyprojectisitsnecessityaswellasitsfeasibility.Nowthenecessityoftheprojectlikea
cricketstadiumiscreatedbythepeopleofthecityaswellasamegacitydemandsacricketstadiuminitsvicinity.The
feasibilitydemandsadeepthoughtlikeforalocationofstadiumi.e.
(a)Wherecantheplantbelocated?
(b)Whatisthepresentandfutureprojectedcostofresources?
(c)ThesourcesforFinancingoftheproject?
(d)Arethereenoughrawmaterialsaswellasskilledandproductivelabouravailableintheareaorcanbecreated?
(e)Arethereadequateelectricityandcommunicationfacilitiesavailable?
(f)Whatpoliticalorinstitutionalfactorsmayceaseorimpedethedevelopmentandoperationofthefacility?
(g)Whatwillbethesociological,economicalandenvironmentalimpactofentireprojectoncommunity,likemushrooming
ofgoodhotelsandrestaurantinthevicinityofthestadium?
Inshort,whatdoallthesefactorstakenasawholemeanforthetechnicalandeconomicfeasibilityoftheproject?
Theprojectcanbedefinedas,Organizationandperformanceofresourcessuchasmen,machinery,money,material,
space,andtechnologyintologicalsequenceofactivities.So,whenwedealwiththeproject,weareprimarilydealing
withresourcesliketime,money,equipment,technology,spaceusage,materialandlastbutnotleastpeople.Wehaveto
organizetheseresourcesandplatformactivitiesintheirlogicalsequencetocompletetheproject.Soonethingmustbe
clearinonesmindthatwhetheritistoconstructasmallhouseortoconstructacricketstadiumcostingseveralcroresof
rupeesoranyothermulticroreprojectofconstructionofDametc.thegeneralpatternremainssame.
Projectsareusuallyapartofanoverallstrategicprogramme.Aprogrammeatthemicrolevelcompriseoneormore
projects.Aprogrammeismanagedinacocoordinatedwaytoachieveitsoverallobjectivesthroughtheimplementation
ofitsprojects.

ProjectReport
Projectreportisabasisforcommunicatingwhathasbeenplannedfortheproject.InthisprojectIhaveassumed
thesiteinPunjabasthereisnoothersuchtypeoffacilityisavailableyet.Followingaresomeimportantpoints
forthereport
Feasibilityoftheprojectistothecalculations
Internalmoneyofthestatewouldremainwithinthelimits.
Cityitselfisanattractiveplace.

PROJECTDEVELOPMENTPROCESS
Fromconceptualizationtoimplementationthestagesinthedevelopmentofconstructionprojectsfallintobroadly
consistentpatternsbutintiminganddegreeofemphasiseachprojecttakesonitsownauniquecharacter.

Conceptualization
Mostprojectsstartwithaneedtohaveanewfacilitylongbeforedesignersstartpreparingdesignsanddrawingsofthe
projectsandcertainlybeforefieldconstructionworkcancommence.Considerablethoughtgoesintobroadscale
planning.Elementsofthisphaseinclude
(a)Conceptualanalysis
(b)Technicalandfeasibilitystudies
(c)Environmentalimpactreports

Engineeringanddesign
Architectsanddesignengineersprimarilyhandlethesephases.Increasingly,however,theclientoperationandutilization
ofKnowledgeandfieldconstructorsexperiencearemorestronglyinjectedatthisstagethroughdirectparticipationand
stringentreviewprocedures.Therearetwophaseofengineeringanddesign:
(i)Preliminaryengineeringanddesign
(ii)Detailedengineeringanddesign
(i)Preliminaryengineeringanddesignstages
(a)Architecturalconcepts,likeformofthestadium,capacityofthestadium,functionsfullyfilledstateoftheallartfacilities
etc.
(b)Evaluationofalternativesinregardtotheecologicalprocess,sizeandcapacity.
(c)Economicfeasibilitystudies:Forinstanceofahighrisebuilding,theownerspecifiestheareahewouldliketo
utilize.So,Architectwillmakepreliminaryplanningoffloorofthebuildingrequired,takingintoconsiderationallthe
prevailinglawsofthearea.Hewillalsogothroughrequirementofgeneralfunctionalareassuchasparkingandservice
areasandalsooveralldesignapproach.Similaristhecaseofcricketstadium,herearchitectwillmakepreliminary
planningforgeneralsitelayout,formofthestadiumkeepinginmindthesittingfacility,daynightfacilitywithproper
cameraplatform,properentrancesandexitsforthemanualaswellasvehiculartrafficwithadequateparkingfacilities
etc.

(ii)DetailedEngineeringandDesign
Theprocessinvolvessuccessivelybreakingdown,oftheprojectintothepartsthatisthedifferenttypeengineering
requirementssuchasstructuraldesign,HVAC,Electricalplumbing&otherservicesforanalyzinganddesigningthe
structureintoitselementssothatitcomplieswithalltherecognizedstandardsofsafetyandperformance.Thisismost
importantforaprojectlikestadiumwherepeopleareverylargeinnumberandsecondlyduetothestructureofthe
stadiumwhichshouldbecolumnfreeandlightweightaswellassoundinaestheticsense.so,asetofdrawingand
specificationsarepreparedforusebytheconstructorscoveringcivil,electrical,mechanical,interiordrawingsetc.asthe
casemaybe.

Procurement
Procurementinvolvestwotypesofactivities.Oneistocontractandsubcontracttoseveralpartiesfordifferenttypesof
workactivities.Thesecontractorsandsubcontractsmakearrangementsorsupplyofallmen,materialsandmachines
requiredtocompletethepartoftheworkallottedtothem.Theotheristotakeresponsibilitytoprocureallresourcesto
completetheproject.

Construction
ItistheprocesswherebytheDesignersplansandspecificationsareconvertedintophysicalstructuresandfacilities.It
involvestheorganizationandcoordinationofalltheresourcestime,money,material,technology,people,equipmentetc.
Thetargetwillbetocompletetheprojectonscheduleandwithinstipulatedcostscomplyingallthestandardsofquality
andperformancespecifiedbythedesigners,asinthiscasethetotaltimeallottedis16monthsincludingmonsoonperiod.

Commission
Moststructuresandfacilitiesofanysignificanceinvolvecommissioningphase.Duringconstructionlargeamountof
testingisdone,soastobesurethatallcomponentsfunctionwillindividuallyandtogetherasatotalsystem.Electrical
andmechanicalsystemsaretested,adjusted,correctedasrequiredtobringthemtoaleveltoperformatanoptimum
output,likeinthiscaseofstadiumhavingaday/nightfacilityalltheelectricalsystemsaretestedrepeatedlyanditshould
matchtheinternationalstandards.

Maintenance
Thisisthephasewhereweneedmaximumattentionandherewelackwhichisthemaincauseforthefailureofthe
project.ForinstancePCAstadium,Mohalithatisastateoftheartcricketstadiumbutthereisnoregularmaintenance,
butwheneverthereisamuchofinternationalstandardsahugeamountofmoneyisexpendedforitsrenovationlike
85lakhrupeeswerespendforthetestmatchbetweenIndiaandEngland,sowhenevertheprojectishandedovertothe
ownereithertooperateorutilizewherehetakesservicesofallproductionengineers,maintenanceengineers,service
peopleandpeopleofdifferenttradesasrequiredtohaveasmoothfunctioningoftheprojectoveritslifetime.

PROJECTPLANNING&CONTROL
Theconstructionplanningprocessisstimulatedthroughastudyofprojectdocuments.Thesedocumentsincludebutare
notlimitedtotheavailabletechnicalandcommercialstudiesandinvestigationsdesignanddrawings,estimateof
quantities,constructionmethedstatements,projectplanningdata,contractdocuments,siteconditions,working
regulations,marketsurvey,localresources,projectenvironmentandtheclientsorganization.Theplanningprocesstake
intotheaccountthestrengthandweaknessoftheorganizationaswellastheanticipatedopportunitiesandrisks.
(i)Planningisthecreativeanddemandingmentalactivityofworkingoutwhathastobedone,how,bywhen,bywhom
andwithwhatdoingthejobinthemind.plansarenotjustpiecesofpaper.Plansrepresenttheresultofcareful
though,comprehensivediscussions,decisionsandactions,andcommitmentsmadebetweenpeopleandcontractual
parties.
(ii)Planningtechniquesformtheplannerstoolbox.Theyassistintheanalysisoftheplan,organizingtheinformation,and
haveacrucialeffectonthewayinwhichtheplaniscommunicatedtoothers.Takentogether,thesetoelementsof
planningproducetheplanastrategyandtacticsfortheexecutionoftheproject.Intermsofactivities,timequantities,
resourcesandperhapscostsandvalues,nowthepointishowandbywhomthisplanningandplanningtechniquesuse
toconvertallthesetheoriesofplanningandplanningtechniquesintoapracticalshape.Plannerscannotplanwithout
managers.Itisthemanagerstasktoplan:thatistodecideonstrategiesandtactics,tobreakdowntheworktobedone
intotasksandsubtasksandtoassigntheresponsibilityforcompletingthesetaskstoindividualsororganization.Soin
short,plannersandimplementersshouldgosidebysideforanyprojectandactasateam.

CONTROL
Planningcanbedescribedasaprocessofthinkinginadvance.Itisbasedonexperience,soundjudgmentandsome
quantitativetechniques.Itdealswiththefutureandassuchthereareboundtobeuncertainties,whichmaycause
deviationsfromthetargetproposedtobeachieved.So,oneshouldnothopethateverythingwillbefine,becauseplans
andschedulesdonotworkbythemselves.Itisrightlysaidthatwemustplantheworkfirstandthenworktheplan.Sofor
workingtheplansandscheduleseffectivecontrollingisnecessary.Planningislookingforwardwhilecontrollingislooking
back.
ProjectControlcovers:
(i)Deviation:Deviationsoccurduetofollowingreasons
Whiledoingoriginalplanningandschedulingactivitydurationmighthavebeenoverestimatedorunderestimated.
1.Someactivitiesaredelayedduetoreasonsbeyondcontrollikechangeinfoundationcondition,badweather,monsoon
asinthiscase,nonavailabilityofcertainresources,labourstrike,breakdownofequipmentetc.Socoveringtheserisks
thetotaltimeallottedtocompletethecricketstadiumis16months.
2.Naturalcalamitieslikefloods,earthquakes,epidemicetc.,festivalsetc.
3.Additiondeletionormajormodificationintheworkbyclient.
4.Introductionofnewmaterial,equipmentorconstructiontechniques.Itisnecessarytoreviewtheactualprogress
againstthepredeterminedtargets.Byassessingthereasonsofdeviationsanddecidewhetheranewnetworkis
necessaryfortheremainingwork.Ifnot,whatistheeffectofthisdeviationontheremainingportionorwhatremedial
actionsarepossibletoretainthetargetdateofcompletionunchanged.

UpdatingNetwork
Itconsistsofreviewoftheplanningandschedulingatregularintervals.Butforthatupdating,theinformationrequiredwill
be,periodatwhichreviewistakeneitherintermsofdaysorweeks.Listofactivitiescompletedandpartiallycompleted
withtheperiodrequiredtocompletethebalanceoftheactivityetc.Nowaftergettingtherequiredupdatingshouldbe
doneatregularintervals,whichdependsuponmagnitudeofwork,rateofprogressetc.Atshortintervalsasthescopeof
absorbingdelaysislimitedastheperiodadvances,forsmallprojects.Atcertainstagessuchasfoundationlevel,plinth
level,substructureandsuperstructureetc.Whenevernewtechniquesorequipmentareavailable,whenworkhas
stoppedforalongperiodforsomereasonstheupdatingofaprojectalsohelpsinreschedulingoftheactivitieswhichare
delayedorlaggingbehindsothattheprojectcanbecompletedwithinthestipulatedtime.

CalendaringtheNetwork
Whilepreparingthenetworkweconsidertheworkingdayswhileonworksitstherewillbeholidayssuchasweeklyofday,

festivalsetc.theseholidayshavethereforetobeincorporatedincalendaringthenetwork.

Costcontrol
Projectcontrolmustbelinkedupwiththecost.Theobjectivesofthecostcontrolarethemethodmustgivetheprogram
ofexpendituresothatrequirementsoffundcanbeassessed.Atthetimeofreviewweshouldhaveaclearpictureof,
actualexpenditureincurredvisvisprogramexpenditure,actualexpenditurevisavistheexpectedreturns.Incase
deviations,whatarethereasonsandwhatwillbetheestimatedcostofremainingportionofthework.ImproperCost
estimation&Controllingcanbringaprojecttoastandstill,iftheprojectisunderbudgetedtheprojectwillbestoppedmid
way,similarlyproperplanningistobedonestagewiserequirementofthefundsforthevariousstagesoftheproject&
thesourcesforthesame

PROJECTWORKBREAKDOWN
ProjectworkbreakdownisthedivisionoftheprojectintothesmallIdentifiableactivitiesoreventswithsomemilestones
also.Theseactivitiesarealsocalledaslevels,whichcanbeclassifiedverywell.Forinstancetheactivitiesofthecricket
stadiumare:

PreConstructionPhase
Selectionofland
Preliminarydesign
Finaldesign&preparationofworkingdrawings
Selectionofthevendorsfortheexecutionofthework&supplyofequipments&materials

ConstructionPhase
Demarcationofthefieldarea.
Constructionoffoundationforthestandsandothersittingareas.
Constructionofboundarywalls.
Constructionofstepswithproperrisers.
Constructionofroof.
Provisionsofservicesapplicationofwall,floorandceilingfinish.
Completionofelectricalandmechanicalworks.
Externalworks:drainageetc.
Parkingfacilityetc.
StructureforLights.
Roadwork.

Commissioning&HandingOver.
Testing&CommissioningoftheElectricalEquipments.
Testing&CommissioningoftheHVACsystem.
Testing&CommissioningoftheotherservicessuchasFireFighting,securitysystem,firedetectionsystemetc.
FinalHandingoverofthefacilitytotheclient.

WorkBreakdownMethodology
Theprojectisdividedintoactivitiesandevents.Inthepreparationofthenetworkfortheproject,thearrowsindicatethe
activitiesandeventsareidentifiableinstantaneousstagestheyarerepresentedasNodesinanetwork.So,arrowsofthe
networkarejoinedinaccordancewiththeinterdependenceoftheactivities,whichtheyrepresent.Insmallandsimple
workthisinterrelationshipisobviousbutinalargeprojectitisnecessarytoestablishitsystematically.TheWork
BreakdownBreakMethodologyinvolvesthebreakingdownoftheprojectintoMajoractivitiesinvolved&furtherthese
activitiesarebrokenintofurthersmalleractivities&soon.Theinterrelationshipofthedependentactivitiesisworkedout
&asequenceoftheexecutionoftheactivitiesinvolvedisprepared,thisinterrelationshipisrepresentedinthegraphical
from&iscalledasnetwork.ThisprojectcanbebrokendownintoactivitiesasCivilwork,Electricalwork,Plumbingwork
etc.,furthertheCivilworkcanbefurtherbrokendownintoFoundationwork,Superstructurework,Roadworketc.,
similarlythefoundationworkcanbebrokendownintolayout,excavation,PCC,RCCetc&furthertheseworkscanbe
fragmentedasRCCworkwillinvolvethefollowingactivities
Preparationofformwork.
Cutting,bending,laying&bindingofsteel.
Pouringofconcrete.
Curing.
Removingofshuttering.

PARTOFAWORKBREAKDOWNSTRUCTURE

AssessingDuration
OncetheWorkBreakdownstructureisformed,alltheactivitiesareassignedtimedurationandlogicallyinterrelationship
ofactivitiesisformedasthefollowingactivitycanstarthowmanydaysaftertheprecedingactivity
Howtoevaluatethetotaltimetakentocompletetheproject?Inconstructionwork,estimatesofactivitydurationcannot
beanythingotherthanapproximation.Inrepetitiveconstructionwheretheactivitiesandtradesfollowinsequence,any

delayedintheplannedcompletionofanactivitywillresultinthefollowingtradeswaitingunproductivelyforitscompletion.
Thereforeitisprudenttomakesomeprovisionforlatecompletionbyplanningashortdelayorbufferbetweeneach
activity.Forexampleinthiscaseofcricketstadium,themonsoonperiodcandelayedtheprojecttocompleteaccording
toitsactualplannedcompletionsothatswhycoveringtherisksthereisaprovisionforlatecompletionbyplanninga
shortdelayorbufferbetweeneachactivity.So,16monthsoftimetocompletethestadiumcoverstheshortdelay(either
naturalorduetohumanfailure)aswellasalittlebufferbetweeneachactivity.
Nowwhatisthisbufferstandsfor?Theestimateofbuffertimeisrelatedtotheprojectmanagersassessmentofthe
reliabilityoftheestimateofactivitydurationwherethereliabilityispoor,largebuffermustbeused.Takingthecaseof
foundationofasimplehouse,
ActivityFoundationtimetaken5days
Buffertimetime2days
Totaltimetaken=7days.
So,projectmanagerassessthetotaltimeforfoundationas7days(not5days)includingthedelayperiodorbuffertime.

Costingactivity
Thediscussionaboveconsideredonlythedirectcostofactivity(orproject).Actuallyactivity(project)costconsistsof
directandindirectcosts.Thesecompriseofthefollowingcomponents
(a)Directcost:
(i)Costofmaterial
(ii)Wagespaidtolabor
(iii)Expenditureontoolsandequipmentusedontheactivity.
(b)Indirectcost:
(i)Supervisioncharges
(ii)Administrativecharges
(iii)Interestncapital
(iv)Revenueduetoearlycompletionofworkandlossduetodelay.
Indirectcostsisworkedoutperdayoftheprojectexecutionoritisallocatedonthebasisofcertainstagesofwork
packagese.g.foundation,silllevel,lintellevelinthecaseofbuildingorfoundationssubstructuresuperstructure,
approachesetc.
Indirectcostincreasesasdurationincreaseanddirectcostgoesondecreasingasdurationincreases.Nowinthiscaseof
cricketstadiumgivendata,
(i)Capacityofspectators80,000
(ii)CapacityofV.I.Pstands300
(iii)Timeavailable16months(includingmonsoons)
(iv)Costofconstructiontoberecoveredin5year
(v)AveragecostofticketisRs.100
(vi)Approximatematchesinayearis4
So,totalcostoftheproject:
Totalearningofticketsforasinglematchifpacktofullcapacity=80,000X100
(Excludinganyotherearningreceivedfromsponsorsortelecastright)=80,00,000/
Totalearninginayearhaving4matchesperyear
=80,00,000X4=3,20,00,000/
Nowasgivenearlierthatthecostofconstructiontoberecoveredin5years,
So,totalcostofthestadium=3,20,00,000X5=16,00,00,000/
So,atotalcostofconstructionofstadiumisnearly16croresandtotaltimetakentocompleteisin16monthduration.
Afterthepreliminaryplanningoftheprojectthedetailedestimatesofthecostispreparedfortheprojectwhichinvolves
thelandcosts,projectconstructioncost,feefortheconsultants,indirectcostsuchassupervisioncost,administration
costetc.

CPM/NETWORKANALYSIS
Networkelements
Networkisdefinedasthepictorialrepresentationoftheactivitiesofagivenprojectintheformofarrows,whichforman
essentialelementofnetwork.Arrowrepresentsanactivity,taskofoperationoftheworksinceactivityconsumes
resources.Arrowhasadirectionalsense,whichcanberepresentedbyanarrowheaditisusedtoindicatethegeneral
directionofflowofwork.Itisconventionaltoshowarrowsdirectingfromlefttoright.Tailofarrowindicatesthestartofthe
activityanditshadindicatesthecompletionoftheactivity.Beginningofcompletionofanactivitymarksaphaseorstage
ofwork.Thisisrepresentedbyasuitablegeometricalfigurelikecircle,triangleandrectangle.Thisisknownasevent.
Eventsnaturallydonotconsumeanyresourcebyitself.Thereisanothertypeofactivities,whichdonotrequireany
resourcesandwhicharebasicallyimagingactivitiescalleddummyactivities,theseactivitiesonlyshowthe
interdependencyoftheactivitiesbutdoesntconsumeanyresource.

Developmentofnetwork:
Networkcanbedevelopedintwoways,
(i)Precedingandfollowingactivities:
Someactivitiescannotbestartedunlesscertainactivitiesarecompleted.Fore.g.excavationoffoundationmustbe
completedbeforefoundationconcreteispoured.Thesetypesofactivitiesareknownassequentialactivities
(ii)Concurrentactivities:
afewactivitiescanbecarriedoutconcurrently.Fore.g.excavationforfoundationoffourwallsofaroomcanbestarted
simultaneously.Letustakethecaseoferectingsteelframework(forlightning)oncementconcretefoundationinacricket
ground,thefollowingoperationsareidentifiedinthenetwork:
Clearingandlevelingthesite.
Givinglineout.
Procuringmaterialforconcrete.
Procuringsteelforfoundation.
Excavation1
Excavation2

Formworkfoundationsteel1
Formworkfoundationsteel2
Concreting1
Concreting2
Backfilling1
Backfilling2
Erection&paintingofsteelwork
Clearing&levelingsite
Preparationofground&pitch
ThesearethegeneralactivitiesforthedevelopmentofMasterControlNetwork(MCN),howeverwecandivideeach
activityintosubactivitytodevelopasubnetwork.e.g.concretingcanbedividedasconc.Infoundation,inboundary
wall,insuperstructureetc.theactivitiesofexcavation,formwork,concretingandbackfillingaredividedintotwopartsto
maketheseactivitiesconcurrenttofurtherreducethetimeocompletionandthuscost.

Thelogictableisasshownbelow:
Activityno

Activitiesdescription

duration

Preceding

Following

Concurrent

activity

activity

Activity

Siteclearing&leveling

30

Layout

15

Procurementofmaterial

180

Excavationfor

45

E,L

foundation
E

Foundationwork

60

F,H,I,J

Waterproofing

21

H,I,J,M

backfilling

15

Constructionof

90

F,I,J

150

K,N,P,R,T,U

F,H,J

boundarywalls
I

Constructionofsuper
structure

Constructionoftoilets

60

Services

90

G,N,P,R,T,U,Q

25

90

F,H,I,J

work(electrification,AC,
plumbing)
L

Foundationforlight
structure

Fabricationofstructure
forlightsford/nfacility

Constructionofdrains

100

G,K,P,R,T,U,Q

ConstructionofRoads

120

Constructionofparking

90

G,K,N,R,T,U,Q

area
Q

Finishingworksintoilets

50

G,K,N,R,T,U,P

M/Srailingworks

60

G,K,N,R,T,U,P

Paintingwork

90

H,K,N,P,R,T,U

,Q
T

Structureofweldedwire

60

G,KN,P,R,U,Q

150

G,KN,P,R,T,Q

mesharoundthe
Groundforsafetyof
players
U

PreparationofGround
andpitch

InstallationofGadgets

15

S,c

Commissioningof

20

Services
X

Handingover

AnalysisProcedure
Theprojectcanbeanalyzedinano.ofways,throughprecedencenetworkandPERT/CPMnetworks.Precedence
networkisthewayofrepresentingtheprojectthroughtheactivityonnodeapproach.Inprecedencenetwork,anactivity
isshownonthenode,whichisrepresentedbyabox.Theprecedencediagramisshownasastraightline,called
connectors,ifanactivityaisfollowedbyanotheractivityB,itisknownas

SequentialActivity

SequentialactivityanditwillberepresentedinCPM/PERTnetworkasinthefiguregivenbelow.Howeverifthesome
activityAisfollowedbyanotheractivityB,thenitwillberepresentedinprecedencediagramas:

SequentialActivity

Precedencenetworkiseasiertounderstandthanarrownetworkstodrawaswellastounderstand.Itisalsoeasierto
explaintoanontechnicalpersonwhodoesnothavemuchknowledgeaboutanetwork.Nowtimeanalysisinboththe
networks(precedenceandPERT/CPM)isdoneonthesamelines.Everyeventisassociatedwithtwotimings,
Earliestoccurrence(ET)andLatestoccurrence(LT)Similarlyeachactivityisassociatedwithfourtimes:
Earlieststarttime(EST)=Theearliesttimebywhichanactivitycanstart.
Lateststarttime(LST)=Thelatesttimebywhichanactivitymuststart.
Earliestfinishtime(EFT)=Theearliesttimebywhichanactivitycanbefinished.
Latestfinishedtime(LFT)=Theearliesttimebywhichanactivitymustbefinished.
Sofarthenetworkswerediscussedwithrespecttoonlytimeanditisassumedthatresourcesrequiredforcarryingout
variousactivitiesareasandwhenneeded.Butsuchasituationisrarelypossibleandevenifpossibleisneitherdesirable
noritwillbeeconomical.So,theaimshouldbetousetheresourcesintheoptimummannerandatuniformrateasis
possible.Butattimesthereareconstraintsonavailabilityofsomeresourcessuchassomeequipmentorsomespecial
typeoflabor.So,activitieshavetobeplannedandscheduleinsuchawayastosatisfytheseconstraintswithout
extendingtheprojectduration:howeveriftheconstraintsareofcriticalnatureevenprojectdurationhastobealteredto
satisfythem.Intheendletusgivealookatstepbystepprocedureforlargenetwork,
(i)Prepareprojectnetwork.
(ii)Calculateeventtimings,activitytimings&Floats
(iii)Prepareabarcharttosuitablescale.Listtheactivitiesinaproperscale.
(a)Theactivitiesshouldbelistedinincreasingtaileventnumber
(b)Iftherearemoreactivitieswiththesametaileventnumbertheyshouldbesoarrangedthatheadeventnumbersin
increasingnumbers
(iv)FirstscheduleallactivitiesatESTandworkoutresourcerequirements.Ifthedistributionisnotsatisfactoryfindout
sumofthesquares.
(v)Rescheduletheactivities.Startwiththelastactivity.ItshouldbeshiftedtowardsLSTstagebystage
(vi)Nextactivityisthentakenupandsameprocedureisfollowedtillwefinishalltheactivities.
(vii)Whileschedulingactivityfromwhoseheadeventmorethanoneactivityisemanating,careisnecessary.Thelatter
arerescheduledhencetheprecedingactivitymustbeoverbytheearliesttimeworkedoutbyrescheduling.Of
subsequentactivities.

CPMNetwork:
Essentiallyitwasaproblemconcernedwithobtainingtradeoffbetweencompletiontimeofworkandthecost.Themethod
knownascriticalpathmethodisthereforebasedontheassumptionthatthetimerequiredbyvariousactivitiesisknown.
Itisdeterministicinnatureandisnotconcernedwithuncertainties.CPMismoresuitableinconstructionsituationwhere
someexperienceinhandlingsimilaractivitiesinthepastisavailable.
OnceacommitmenttoCPMismadetheimplementationshouldbethoroughlyplannedinadvance,withfrankandopen
discussionsandinvolvementifsuccessisrequired.Itmustbeunderstoodthatnoamountofgoodofficeplanningwill
coveruplackofproductionandefficiencyinthefield.CriticalPathMethodiscapableofservingonthebasisofan
integratedcompanyworldwidemanagement,rangingfromprebidfeasibilitystudiesthoughestimating,planning,cost
accounting,progresscontrolandfinancialcontrol.
CriticalPathMethodisthepathofeventshavinglongestdurationi.e.ABDEINOVWXhavingduration482days=16
months,whichisrequiredcompletiontime.Thismeansthatanydelayincompletionofanyactivityincriticalpathisnot
havingFloat.

CONCLUSIONS&RECOMMENDATIONS
Forvariousprojects,irrespectiveoftheirmagnitudes,networktechniquesareveryusefulaidsforprojectplanningand
controlling.Someofthefeaturesandcharacteristicsmakethempowerfulandflexibletoolsofdecisionmaking.Theyare
usefulatvariousstagesofprojectmanagementfromearlyplanningstages,whenvariousalternativeprogramsof
proceduresarebeingconsideredtotheschedulingphase,whentimeandresourcesschedulearelaidoutandfinallyin
theoperationalphase,whenusedasacontroldevicetomeasureactualversusplannedprogress.Theyalsomakeit
possibletoevaluatetherequirementoftheresourcessuchasMan,MoneyandMaterialatthevariousstagesofthe
Project.Theyarestraightforwardinconceptandeasilyexplainabletothelayman.Datacalculations,althoughtediousfor
largeprojects,arenotdifficult.Computerprogramsarereadilyavailableforlargeprojectslikeacricketstadiumasinthe
case.Itisveryusefultoolinthehandsoftheconstructionmanagersbecauseitisverywellsuitedfortakingcareofthe
peculiarrelationshipwithintheconstructionprojects.

BOOKSREFERRED
NicmarStudyMaterials
Lt.Col.K.K.ChitkaraProjectManagementTataMc.Graw,1998

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