Your firm of registered Construction Project Managers is appointed at the early planning stage by the respective clients to represent them on the following two projects:
Client A: A major financial institution, part of whose interests lie in the financing, developing, owning and managing of major industrial, commercial and residential projects.
Project particulars: The redevelopment of a major, very successful shopping centre, in an excellent location in a major urban area (e.g. Greenacres, PE; Cavendish, Cape Town, Loch Logan Waterfront, Bloemfontein or Sandton City, JHB). The value of the redevelopment is in excess of R200 million. The existing premises are fully let and attract at least 500000 shoppers every month.
The redevelopment entails major structural, spatial and services alterations and existing tenants’ and businesses will be affected by disruption to mall areas, temporary closure of their businesses and even relocation of their businesses in some cases. The upgrades also need to comply with the latest changes to the building regulations, in particular, the energy efficiency legislation introduced in 2011.
The time schedule for the project is critical. Planning and procurement is to take place from August to early December of 2024 and work can only commence after the 2024/25 festive shopping season, for completion in time for the 2025/26 festive season.
Client B: A municipality in a mountainous, high rainfall, earth tremor prone area of South Africa. The Municipality owns considerable water resource infrastructure and has been supplying water to several neighbouring towns and to the local farming community. Demand has been steadily increasing over recent years and the present storage capacity is insufficient to meet demand.
Project particulars: The partial demolition of an existing, inadequate reinforced concrete storage dam wall and appurtenant works as well as the construction of a composite earth wall/premix core storage dam of considerable capacity to provide adequate water resources for the next 25 years. Included in the project are provisions for increased pipeline capacity to supply existing consumers.
The value of the project is R900 million. The major structural element, the premix core, is to be carried out by Norwegian specialists who have several other projects to complete worldwide and work according to a schedule with very little flexibility.
Clearly distinguishing between projects, A and B, outline and discuss where necessary:
- Your proposed management structure with explanation of it for the effective progress and completion of each project (16);
- The project management skills you would bring to assist your clients in the delivery process (10);
- Your responsibilities, accountability, and liability as project manager (14).
- The deliverables (not service) you would expect from each member of your core professional team and the contracting team at each stage of the project. (20)
- Formulate a comprehensive project management plan strategies to deal with the problems, de-risk and mitigate existing problems and potential problems of both projects. (40)
From the outset, Project A presents extraordinary problems. The centre has to continue operating during construction and on average 15000 shoppers move through the centre per day. Parking is disrupted; because of the structural alterations, leaks occur during rainy weather, contractors and sub- contractors complain of disruption, excessive material losses
and damage to completed work, hazardous site conditions have caused some injuries and property damage to shoppers, tenants and workmen. Tenants have become hostile and refuse to move temporarily to allow works to continue whilst they have indicated they will not pay the higher rentals the client has advised will be due on completion of the works. Claims for injury, damage, loss of business are being lodged and claims for delays and disruption have also been received from some of the contractors.
On the other hand, Project B has been going well. Initial site works, the cofferdam and commencement of the earth fill wall proceed according to schedule. The rock strata at the base and side of the gorge in which the dam is situated, are fissured, however, and a grout curtain is required along the centre line of the dam wall. This will delay the pre-mix core which cannot be commenced until the curtain is complete. The curtain works are scheduled for 6 weeks but it soon becomes apparent that these works are far more complex than originally envisaged meaning a possible 3-month delay. This means that the Norwegian team will be delayed by 2 months from commencing their work but they have another project that means they would not be able to commence for at least 6 months due to the change in dates. The resultant impact will have considerable repercussions, with the financial burden falling on the municipal authority. Additionally, critical works to safeguard the project through the next rainy season will not yet be sufficiently advanced, posing damage and other costly risks to the project and inability to supply water to the surrounding towns and agricultural activities, with severe economic consequences to the area.
The body of the final document should not be less than 40 pages in length. Any references should be clearly noted and listed at the rear of the document. Total mark for the assignment is 100.
Answers to Above Questions on Construction Project Management
Answer 1: The management structure for the management of project A and B is
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