Importance of Sustainibility

Contents

Introduction.

Feasibility report

Risk management

Project design and optimization of cost-driven.

Project financing.

Work breakdown structure.

Base or slab stage.

Frame stage.

Lock-up stage.

Fixing.

Completion.

Gantt chart

Schedule control

Payment considering cash flow..

Stage of payment receivable.

Payment breakdown.

Cash flow control

Stakeholder engagement

Stakeholder Power grid.

References.

Introduction

The project can be referred to as a series of activities that require to be achieved for attainment out a particular outcome (Kerzner 2017). It is mainly a set of outputs and inputs for achieving a specific goal. Moreover, the projects have a different range from simple to complicated which is managed by a team. Before beginning with the project, the budget must be estimated and done in an economical manner which is required to be quantitative as well as qualitative.

This paper is about the housing project concerning the novel migrants of low-income. An outstanding project meant for the migrants has been brought up by the ASIA project Development & Optimization Pvt. Ltd. 2.5 million dollars have been allocated by the Victorian government to accomplish the aim of providing the shelter to the migrants lying in the low-income range. Dandenong Suburb has been chosen out of the other options as the region is covered with gardens, fresh woods, and parks and also considered to be the cheapest offering multi-cultural environment. Moreover, feasibility, affordability, and access to shopping centres, transportation, and colleges and schools are the added advantage to this area. It has been decided by ASIA to build approx 10 to 12 storey houses within this project.

Feasibility Report

The feasibility reports have been proposed by ASIA based on financial, technical, schedule, regulations, market, and organization.

The project can be considered to be financially secured considering the total budget as $2.5 million. The stakeholders involved are communicated as well as contacted to get a better outcome along with the transparency. Moreover, the time frame provided is about 16 months for completing this project. Considering the technical aspects, the blueprint has been created and scrutinized by the immaculate architectures and engineers. ASIA comprises of own teams for marketing along with the relevant associations with the marketing firms for promoting the project of the company across the business market. Furthermore, the project is supported by some non-profit organizations for the purpose of migrants' rehabilitation, and for this reason, the discussions related to the project with the stakeholders have been done according to the laws of the Victoria government.

Risk Management

Risk management is mainly the crucial activities within the business process and the managers are required to first determine the potential risks within the project along with the methods to eliminate those risks (Hopkin 2018). The risk management plan is prepared before beginning with the project to understand and identify the potential risks as well as the probability of eliminating it. The risk register is the initial step that is prepared for identifying the risks associated with a project which is organized between the contractor and involved parties.

The housing program project is required to be executed within 18 months which may have some risks and for this risk registration plan is needed in which issues and resolutions will be documented in the registration number so that it could be tracked and this is done for overcoming the previous risks and preventing the latest ones.

Below is the table provided through which the project manager can identify the potential risks of the project:

ID

Date

Risk description

Likely-hood

(1-10)

Impact

(1-10)

Severity

Owner

Status

Risk mitigation

1

20/5/19

The financial attraction of the project to investors

5

5

15

 

Open

-Data collection

- assurance of tremendous future return

2

20/5/20

Land Acquisition

5

3

8

 

Open

-Possession and legal contract of land

3

22/5/20

Finance costs need for project high

3

3

7

 

Open

-appropriate management of present expenses

-appropriate financial planning

4

24/5/20

Construction time delay

3

4

11

 

Open

-Closed and everyday administration

-establishing and carrying out targets

5

30/5/20

The weather problems (rains, storms, flood or earthquakes)

2

4

8

 

Open

-giving alternatives and precautionary actions for climate change

6

2/7

shortage of labours or workers

3

3

15

 

Open

-Motivating human resource

-allotment of capable and knowledgeable human resources

7

13/7

interruption in project approvals and permits

4

3

6

 

Open

-Assignment of activities to various teams

- report submission deadline

Table 1: Risk Assessment

Project Design and Optimization of Cost-Driven

A framework of design optimization has been created for synthesizing the designs at the preliminary phase of the project as per the estimated costs. The calculation for Net Present Value can be done by calculating the total sum of the cost of the project that mainly involves the construction cost and annual cash flow.

Project Financing

Project finance can be considered as the financial source that can be used for industrial projects, long-term infrastructure, and public services (Shan et al. 2017). Project finance is one of the main lending structures within this housing project that depends on the cash flow to reimburse the project. Due to no revenue generation at the time of the project development process, there is the possibility of some possible risks during construction and hence the business needs to bring in the policies within the budget of 2.5 million dollars so that it could be equally divided concerning the plan.

Work Breakdown Structure

Work breakdown structure in a project can be referred to as the deliverables of particular tasks which is the graphical representation of the distributed work scope establishing accountability as well a commitment within the team members of a project (Siami-Irdemoosa et al. 2015). This is considered to be significant for every project for reducing the challenging activities along with the dissemination of activities to certain groups or individuals for effective work.

Work breakdown structure

Figure 1: Work breakdown structure

Five stages of construction are described below:

Base or Slab Stage

This is the initial phase wherein the foundation is built and involves appropriately measuring sites and is estimated to be finished within 1-2 weeks. The net amount required to be paid would be 15% by the government.

Frame Stage

Once the activities such as plumbing, the conduct of gutters, electricity, and insulation are completed it requires to be agreed by the building surveyor. It would require around 3-4 weeks and the amount involved would be 15% of the project costs.

Lock-Up Stage

This is the stage for 4 weeks for completing the activities of the project and involves fixing windows and doors as well as coverage of the roof. It covers 35% of the project cost.

Fixing

This is the stage involving fittings of all kinds such as electricity, plumbing, and shelves. This requires to be completed within 5-6 weeks and may cover up to 20% of the entire cost of the project.

Completion

At this stage, every activity would be well-organized such as painting and installation. This stage involves a careful examination of anything required to be fixed before moving into it. It will take 7-8 weeks and 15% of the project costs.

Gantt Chart

Gantt chart

Fig 2: Gantt chart

Schedule Control

 The schedule concerning all the phases is required to be scrutinized with cost analysis. This signifies that the task agreements must be finished concerning the estimated time as any delay would increase the project costs.

The Gantt chart represents that various stages of the construction time duration vary as per the actions of the project. The base stage requires 1-2 weeks for project completion. The expected time for frame stage would be 1-4 weeks and for lock-up, it may take 3-4 weeks. The fixing stage would take 5-6 weeks whereas the completion stage would take 7-8 weeks.

Payment Considering Cash Flow

Management of cash flow is considered to be a crucial aspect of the deliverables of the project. The main purpose of managing cash flow is based on meeting the initial plans due to the major changes that have been anticipated.

Stage of payment receivable

The amount of receivable can be established in the four phases along with the complete amount of completion from the government at the end of the project. The project can be broken into four stages and hence the profit margin could be achieved since the margin of profit is not so high, which is approximately 13 to 15 %.

Stages

 Amount inflow

Profit

Initial stage (planning stage and design):

1million $

20% = 2,00,000$

Investing stage (marketing and hiring stage):

500,000$

10% = 50,000$

Development stage (construction ):

500,000$

10% = 50,000$

Final stage (delivery stage):

500,000$

10% = 50,000$

Total

2.5 million $

14% = 3,50,000$

Table 2: Stage of Payment Receivable

The primary stage has a significant role to play in the project continuation and small errors at the time of the design stage that can negatively affect the project. It is required to consider every minute detail at the time of the initial stage. A huge amount of money is involved in this stage. The second stage requires acquiring labours as well as equipment. The cash outflow will be very high as billing is required to be done by the company for every resource involved in the project such as staff salary, products, equipment, and labours.

Payment breakdown

It can be regarded as the estimated cash outflow that is vital for doing before the initiation of the project at the planning stage whereas the data may differ with the project reaching the final stage.

Entity

 Estimated cost (cash outflow)

Equipment

1,20,000$ - 1,50,000$

Labour salary

80,000$ - 1,00,000$

salary of Staff

50,000$ - 55,000$

Materials

6,70,000$ - 7,50,000$

Miscellaneous expenses

1,00,000$ - 1,10,000$

Risk backup

1,00,000$

Playground

50,000$ - 80,000$

Water, Gas and electricity supply underground

90,000$ -1,00,000$

Legal expenses

40,000$ - 45,000$

Machinery cost

50,000$ - 60,000$

Supplier cost

100,000$

Fixing cost

150,000$ - 250,000$

Total

17,00,000 –19,50,000$

Table 3: Payment Breakdown

Cash flow control

Certain factors are required to be considered at the time of project initiation and development. A complete documented record can be useful for the manager to track every expense involved in the project along with the receivable amount such as costs, cash position, payables, billings and receivables (Purnus and Bodea 2015).

Stakeholder Engagement

Stakeholder engagement is a process of associating with individuals getting influenced by the options that it can impact the utilization of choices (Rajablu et al. 2015). Moreover, partner commitment is essential and is driven by the need for moral as well as several authorities along with the contribution from various zones. It is crucial to engage stakeholders in discussion for knowing about the issues related to environmental and social concerning the performance that can be beneficial in decision-making as well as accountability (Butt, Naaranoja and Savolainen 2016).

Some of the stakeholders are listed below:

  • Team members
  • Suppliers and clients
  • Executive stakeholders
  • NGOs
  • Government personnel
  • Communities

Stakeholder Power grid

Stakeholder Power Grid

Figure 3: Stakeholder Power Grid

According to the power grid of the stakeholders of the project requires following communication along with the procedure:

  • The stakeholders are required to be contented by the procedure and policies related to the project
  • The activity is carried out within the project is required to be managed attentively
  • The complete work must be monitored
  • The information must be given to the stakeholder in case of any changes made in the project

The shareholders' participation helps make an appropriate reputation, management, and trust of the organization (Mok, Shen and Yang 2015). It leads to the optimization and validation of the program investment. The reinforcement of the result is valued by the shareholder in the creation of sustainable and innovative choices for the progress of the company. The project team must involve the shareholders in taking any decision as everyone's voice brings in more information and innovation. Therefore, the engagement of shareholders is highly significant and helps identify the plans to have a competitive advantage.

References

Butt, A., Naaranoja, M. and Savolainen, J. 2016. Project change stakeholder communication. International Journal of Project Management, 34(8), pp.1579-1595.

Hopkin, P. 2018. Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

Kerzner, H. 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Mok, K.Y., Shen, G.Q. and Yang, J. 2015. Stakeholder management studies in mega construction projects: A review and future directions. International Journal of Project Management, 33(2), pp.446-457.

Purnus, A. and Bodea, C.N. 2015. Financial management of the construction projects: A proposed cash flow analysis model at project portfolio level. Organization, Technology & Management in Construction: An International Journal, 7(1), pp.1217-1227.

Rajablu, M., Marthandan, G. and Yusoff, W.F.W. 2015. Managing for stakeholders: The role of stakeholder-based management in project success. Asian Social Science, 11(3), p.111.

Shan, M., Hwang, B.G. and Zhu, L. 2017. A global review of sustainable construction project financing: policies, practices, and research efforts. Sustainability, 9(12), p.2347.

Siami-Irdemoosa, E., Dindarloo, S.R. and Sharifzadeh, M. 2015. Work breakdown structure (WBS) development for underground construction. Automation in Construction, 58, pp.85-94.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Project Management Assignment Help

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