Krishan K. Chitkara
Author and Program Director, CPMT Plus
Krishan K. Chitkara is the Executive Director of the
Institute of Construction Project Management,
Gurgaon
, located at about 15 KM from New Delhi international airport. He has vast experiences in
construction and academic fields.
Chitkara has worked at senior levels for over 30 years in reputed construction establishment and academic
institutions in India and abroad. The diverse construction tasks executed by him include defence works,
residential and commercial complex, precast turnkey jobs, roads and airfields, and lub-oil refinery works.
He was Project Planning Manager and Construction Manager in Iraq, Chief Engineer (Planning) and
Chief Engineer (Construction) in United Arab Emirates and Sultanate of Oman and General Manager of a
concrete precast Company in Saudi Arabia. In India, he served as the General Manager in a Construction
Company, Project Manager and Planning Manager in Military Engineering Service and Advisor in
Ready-mix Concrete.
He is former Director of the National Institute of Construction Management and Research, New Delhi, and
was Professor in Works Management in the College of Military Engineering, Pune. His book titled "
CONSTRUCTION PROJECTS MANAGEMENT: Planning, Scheduling and Controlling
" was published
by Tata McGraw-Hill, New Delhi. He has published several papers and conducted number of
seminars/workshops in Project Management with computer application for senior managers of
government, public and private sectors.
Lt Colonel (Retd) K.K. Chitkara, AVSM, was commissioned into the Corps of Engineers of Indian Army
in the year 1954. He graduated in Civil Engineering and secured first class first in M B A. In India, he is
Fellow of the Institute of Engineers, Institute of Surveyors and Institute of Valuers. He was awarded ATI
VISHISHT SEVA MEDAL by the President of India for the distinguished service of exceptional order
rendered by him for construction of a road in high altitude areas in India.
©
CPMT plus, Krishan K. Chitkara
[email protected]
Contents
Lessons
Appendices
Illustrations
Construction Project Management Techniques Plus
Lesson Contents
Lesson – 1: Construction Project Management Framework
1.1 Introduction and objectives.
1.2 What is a project?
1.3 What are the salient characteristics of a construction project?
1.4 What are the broad phases and processes encountered in a construction project life cycle?
1.5 What does construction project management imply?
1.6
How does the management of construction projects differ from the management of ongoing
process industries?
1.7 Who are the participants involved in the management of a construction project?
1.8 How is construction project management organized?
1.9 What is the role and responsibility of a project manager?
1.10 Why do construction projects usually fail to achieve their mission?
1.11 What makes a competent project manager?
Appendix A: Indian Construction Scenario.
SAQ
: Q 01A to Q40A
Exercises
: Ex 01A to Ex 14A
Lesson – 2: Project Management Techniques: An Overview
2.1
Introduction and objectives.
2.2
What are the techniques employed in making a project go-ahead decision?
2.3
How is project scope defined and communicated?
2.4
How is project time planned?
2.5
How are project resources scheduled?
2.6
How are project costs budgeted?
2.7
How are project objectives controlled?
2.8
Why and how is the planning system codified?
2.9
How is the project information system managed?
2.10 What are the benefits of systematically planning, scheduling and controlling projects?
Appendix B: Project Feasibility Study
SAQ
: Q 01B to Q40B
Exercises
: Ex 01B to Ex 16B
Lesson – 3: Project Work Breakdown
3.1
Introduction and objectives.
3.2
What does project work breakdown imply?
3.3
How are project work breakdown levels classified?
3.4
What are the methods used for identifying project activities?
3.5
How is the duration of an activity defined?
3.6
How is the duration of an activity assessed?
3.7
What are the elements of an activity cost?
3.8
What are the benefits of Work Breakdown Structure (WBS) technique?
Appendix C: Sizing of Work Packages
SAQ
: Q 01C to Q20C
Exercises : Ex 01C to Ex 17C
Lesson – 04: CPM /PERT Network Analysis
4.1 Introduction and objectives.
4.2 What are the basic features of a CPM network?
4.3 How is the CPM network of a major task developed?
4.4 How is a CPM network time compressed?
4.5 How is a PERT network modelled and analysed?
4.6 How does PERT deal with uncertainties in a project duration estimation?
4.7 How is the probability of meeting a project completion date determined in PERT?
4.8 What are the differences between CPM and PERT?
Appendix D: Project Duration Assessment Using Monte Carlo Simulation Technique
SAQ
: Q 01D to Q20D
Exercises : Ex 01D to Ex 7D
Lesson – 05: Precedence Network Analysis
5.1
Introduction and objectives.
5.2
How is a Precedence Network modelled?
5.3
How to time analyse a Precedence Network?
5.4
How to draw a Precedence Network for repetitive works projects?
5.5
Why and how networks are classified?
5.6
How to draw precedence network of a major project?
5.7
What are the similarities and differences among the project network analysis techniques?
5.8
What are the merits and limitations of network analysis techniques?
Appendix E : Project Time–Cost Trade–off Technique
SAQ
: Q 01E to Q25E
Exercises : Ex 01E to Ex 4E
Lesson – 06 : Project Work Scheduling
6.1 Introduction and objectives.
6.2 What is bar chart scheduling technique and what are its merits and
limitations?
6.3 Why network plans are time scheduled?
6.4 How network plans are time scheduled?
6.5 How to apply the Line-Of-Balance (LOB) technique for scheduling repetitive projects?
6.6 How to forecast resource requirement?
6.7 How are schedules classified?
Appendix F: Decision Network Analysis
SAQ
: Q 01F to Q25F
Exercises : Ex 01F to Ex 9F
Lesson – 07 : Planning Construction Manpower
7.1 Introduction and objectives.
7.2 What are project manpower planning functions?
7.3 How are construction workers categorized ?
7.4 How are workers’ productivity norms developed?
7.5 What are the factors affecting workers’ productivity?
7.6 How to schedule manpower requirement?
7.7 How is project manpower grouped?
7.8 How is indirect manpower forecast prepared?
7.9 What are the guiding principles of organizing workers’ teams?
7.10 What are the principles of designing a good incentive plan?
Appendix G: Project Management Organization
SAQ
: Q 01Gto Q20G
Exercises : Ex 01G to Ex 11G
Lesson – 08: Planning Construction Materials
8.1 Introduction and objectives.
8.2 What is the ABC classification of materials?
8.3 How is materials provisioning planned?
8.4 How is materials quantity estimated?
8.5 How is materials procurement processed?
8.6 What influences regular stock inventory?
8.7 How is project materials inventory planned?
8.8 How Operations Research solves materials planning problems?
8.9
What is the scope for application of Value Engineering in the procurement of materials and
how to implement it?
Appendix H : Resources Allocation Using Linear Programming
SAQ
: Q 01H to Q25H
Exercises : Ex 01H to Ex 11H
Lesson – 09: Project Construction Equipment
9.1 Introduction and objectives.
9.2 How is major construction equipment classified?
9.3 How ground conditions affect the performance of earthwork equipment?
9.4 What are the salient features of earth excavating equipment?
9.5 What equipment is commonly used for earth cutting with short hauling distance?
9.6 What equipment is commonly used for scraping and transporting earth with long hauls?
9.7 How the transportation distance affects the selection of earth hauling equipment?
9.8 What are the types of earth compacting and grading equipments?
9.9 What are the types of commonly–used concreting plants and equipments?
9.10 What are the common types of cranes used for material hoisting?
Appendix I : Earthmoving Equipment: Approximate Production Planning Data for
Primary Tasks
SAQ
: Q 01I to Q22I
Exercises : Ex 01I to Ex 10I
Lesson –10: Selecting Construction Equipment
10.1 Introduction and objectives.
10.2 What are the factors that affect the selection of construction equipment?
10.3 How task considerations dictate the choice of the equipment?
10.4 How cost considerations influence the equipment selection?
10.5 What are the equipment engineering factors considered during the selection of an equipment?
10.6 What are the equipment acquisition options available to the contractors.
Appendix J : Time Value Of Money
SAQ
: Q 01J to Q30J
Exercises : Ex 01J to Ex 10J
Lesson –11 : Planning Construction Costs
11.1 Introduction and objectives.
11.2 How is cost estimated during the project life cycle?
11.3 What are the methods of estimating project costs?
11.4 How is detailed cost estimate structured?
11.5 How are construction costs classified?
11.6 How are resources unit cost standards developed ?
11.7 Why and how is work package standard cost determined ?
11.8
How are ‘S’ Curve used as a forecasting tool?
Appendix K: Break-Even Analysis
SAQ
: Q 01K to Q25K
Exercises : Ex 01K to Ex 10K
Lesson – 12 : Planning Construction Budget
12.1
Introduction and objectives.
12.2
Why a project needs budget?
12.3
How is a project budget structured?
12.4
How is a sales revenue budget prepared?
12.5
How is an operating expenses budget compiled?
12.6
How are the cost inflation, escalation and contingencies are catered
for in the budget?
12.7
What forecasts are included in the master budget?
12.8
What is a flexible budget?
12.9
What are the essential features of an effective project budget ?
Appendix L: Capital Budgeting Process
SAQ
: Q 01L to Q30L
Exercises : Ex 01L to Ex 9L
Lesson –13 : Project Scope Control
13.1 Introduction and objectives.
13.2 What does the scope control imply?
13.3 How are project’s designs and drawings processed?
13.4 What are the various modes of executing construction projects?
13.5 How is project time and cost performance controlled?
13.7 How is scope control system organized?
13.8 What are the pre–requisites and benefits of an effective scope control system?
13.9 What are the guiding principles for implementing project management practices?
Appendix M: Project Quality Management
SAQ
: Q 01M to Q40M
Exercises : Ex 01M to Ex 9M
Lesson – 14: Resources Productivity Control
14.1 Introduction and objectives.
14.2 What does resources productivity control involve?
14.3 How is labour productivity controlled?
14.4 How is equipment productivity controlled?
14.5 How is materials productivity controlled?
14.6 How can a jobsite construction manager influence the project success productively?
Appendix N: Worker’s Safety Comes First
SAQ
: Q 01N to Q40N
Exercises : Ex 01N to Ex 10N
Lesson – 15 : Project Cost Control
15.1 Introduction and objectives.
15.2 What is project cost control approach?
15.3 How is cost performance measured?
15.4 How is the value of work done (sales) controlled?
15.5 Why and how is direct cost controlled?
15.6 How is contribution controlled?
15.7 How is budgeted performance controlled using the earned value analysis?
Appendix O: Project Risk Management–An Overview
SAQ
: Q 01O to Q40O
Exercises : Ex 01O to Ex 15O
Lesson –16: Project Time Control
16.1 Introduction and objectives.
16.2 How to monitor time progress?
16.3 Why and how to crash the project time?
16.4 What is what–if analysis?
16.5 How to determine the extension of time in a contracted project ?
16.6 What are the guidelines for reviewing work progress?
Appendix P: Construction Contracts Administration
SAQ
: Q 01P to Q40P
Exercises : Ex 01P to Ex 17P
Lesson – 17: Planning Data Codification
17.1 Introduction and objectives.
17.2 Why is project data codified?
17.3 What data in a project needs codification?
17.4 How are codes labelled?
17.5 How to assign codes at various levels in a work breakdown structure?
17.6 How to structure activity identification codes?
17.7 How to define resources codes?
17.9 How to prepare technical document codes?
17.10 What are the principles underlying an effective codification system?
Appendix Q: Managing Privatized Infrastructure Projects
SAQ
: Q 01Q to Q40Q
Exercises : Ex 01Q to Ex 10Q
Lesson – 18: Project Management Information System
18.1 Introduction and objectives.
18.2 What is meant by information?
18.3 What information is needed for managing projects?
18.4 How PMIS is designed to deliver the information?
18.5 How is monitored information communicated?
18.6 How can project management software support PMIS?
18.7 How to select the software for PMIS?
18.8 How have advances in Information Technology supported PMIS?
18.9 What are the functions of the Project Monitor ?
18.10 What is the role of management in PMIS?
Appendix R: Upgrading Total Project Management Skills
SAQ
: Q 01R to Q40R
Appendices Contents
Appendix–A: Indian Construction Scenario
Construction and Scope.
Construction Contribution in the Indian Economy.
Growth of Indian Construction Industry.
·
Domestic Construction Tasks Ahead.
Globalization: Challenges for the Construction Industry.
Appendix–B: Project Feasibility Study
Purpose of the Feasibility Study.
Analysing Factors Affecting Project Feasibility.
Feasibility Report.
Appendix–C : Sizing Project Work Packages
Importance of Work Packages.
Factors Affecting Sizing of Work Packages.
Re-sizing Work Packages.
Appendix–D: Project Duration Assessment– Using Monte Carlo Simulation Technique
Introduction.
Concept.
Activity Duration Probability Distribution Function.
Methodology.
Examples.
Risk in Assessed Project Completion Time.
Appendix–E: Project Time–Cost Trade–off Technique
·
Time–Cost Relationship.
·
Concept.
·
Plotting Project Cost–Time Function.
·
Time Crashing.
A Word of Caution.
Appendix–F: Decision Network Analysis
Scope.
·
Types Of Decision Network Analysis Techniques.
·
Decision Network Analysis.
·
Decision Tree Analysis.
·
Conclusion.
Appendix–G: Project Management Organization
Project Organization Concept.
·
Project Organizational Forms.
·
Project Organizational Structure.
·
Project Responsibility Centres.
·
Strengths and Weaknesses of the Project Management Matrix Organization.
Conclusion.
Appendix–H : Resources Allocation Using Linear Programming
Introduction and Scope.
Solution of Linear Programming Problems by Graphical Method.
Solution of Linear Programming Problems by Simplex Method.
Solution of Linear Programming Problems by Dual Method.
Conclusion.
Appendix–I: Earthmoving Equipment: Approximate Production Planning Data for
Primary Tasks
· Introduction.
·
Tracked Bull Dozer Ideal Output Per Hour in Bulk Volume in Easy-To-Do
Loose Soil.
·
Front-End Loader Ideal Output Per Hour in Bulk Volume Easy-To
Haul Loose Soil.
·
Ideal Output of the Tracked Loader Shovel.
·
Excavating and Lifting Equipment Ideal Output Per Hour in Bulk Volume.
·Scrapper Ideal Output Per Hour in Bulk Volume in Easy To Scrap Soil.
Performance Factors.
Appendix–J: Time Value Of Money
·
Time-Money Link.
·
The Future Value of a Single Amount.
·
The Future Value of an Annuity of Equal Amount.
·
The Present Value of a Future Amount.
·
The Present Value of an Annuity of Equal Amount.
·
The Present Value of Cash Inflow of Unequal Amount and Discount.
Appendix–K: Break-Even Analysis
Introduction.
Break-Even Analysis Methodology.
Assumptions and Limitations.
Uses of Break-Even Analysis.
Appendix–L: Capital Budgeting Process
Importance of Capital Budgeting.
Estimating the Cash Flow.
Establishing the Cost of Capital.
Applying the Investment Appraisal Criterion.
Appendix–M: Project Quality Management
Introduction and Scope.
Quality Concept.
Quality Management Principles.
Corporate Quality Policy.
Production Quality Management Processes.
Quality Cost Analysis.
Total Quality Management.
TQM Vs TPM.
Appendix–N : Worker’s Safety Comes First
Why Safety Comes First?
Causes of Accidents at Construction Site.
Statutory Safety Measures in India.
Formulating Project Safety Policy.
Building Safety in Site Layout and Temporary Facilities.
Safety Related Role of the Project Personnel.
Conclusions.
Annexure (i):
Extracts from The Building and Other Construction Workers ( Regulation of Employment and
Condition of Service ) Act 1996 and Central Regulation 1998.
Annexure (ii):
Construction Safety Checklist.
Appendix–O: Project Risk Management–An Overview
·
Introduction and objectives.
·
How are risks identified?
·
How are project risks analyzed?
·
How is risk response plan developed?
·
How are project risks controlled?
·
How does the human side affect the management of risks?
·
What is the role of a Project Manager in managing risks?
What are the benefits of managing project risks?
Appendix–P: Construction Contracts Administration
· Introduction and Scope.
· Role of the Participants.
· Production Performance Control.
· Specification Interpretation.
· Scope Change Control.
· Sub-contractor Approval.
· Disputes, Claims and their Modes of Settlement.
· Contract Termination Control.
· Interim Valuation Payment Control.
· Contract Bonds and Securities.
· Project Close-out.
· Formal Correspondence Rules.
· Guidelines to Minimize Problems in Contract Administration.
Appendix–Q : Managing Privatized Infrastructure Projects
Introduction and Scope.
Stakeholders.
Role of Government in Designing and Implementing the Concessions.
Concessionaire Project Management Process.
Key factors in Management of Privatized Infrastructure Projects.
Conclusion.
Appendix–R: Upgrading Total Project Management Skills
·
Introduction and Scope.
Knowledge Areas Needed for Managing Construction Projects.
Skills Development Model.
Skills Up-gradation Methodology.
Academia-directed Project Management Education.
Corporate-directed Project Management Training.
Individual-directed Self-learning.
Distance Learning in Virtual Classroom to Speed up Delivery.
Conclusion.
Illustrations List
Lesson 1
Construction Projects Management Framework
Illustration # 1.1 Typical Housing Project (CPMPSC Exhibit 1.01 pp27).
Section 1.8
Lesson 2
Project Management Techniques: An Overview
Illustration #2.01: 2000 Housing Units Project: Sub-project Work Breakdown Structure (CPMPSC Exhibit 3.1
pp74).
Section 2.4.1
Illustration # 2.02: Residential Building Task Work-breakdown Structure (CPMPSC Exhibits 3.2 pp 75).
Section 2.4.1
Illustration # 2.03
: Residential Building Foundation Work Package and Activities Work Breakdown Structure
(CPMPSC Exhibits 3.3 pp 76).
Section 2.4.1
Illustration # 2.04
Primary School Construction: Work breakdown Structure
( CPMPSC Exhibit3.6 pp 83).
Section 2.4.1
Illustration # 2.05
Construction of Education Buildings: Activities Matrix with Duration (CPMPSC Exhibit 3.7
pp 84).
Section 2.4.1
Illustration # 2.06:
Pumping Station Project: CPM Network Time Analysis ( CPMPSC Exhibits pp 105).
Section
2.4.2
Illustration # 2.07: PERT Network of Pumping Station Project (CPMPSC Exhibits pp 133).
Section 2.4.2
Illustration # 2.08
PNA Network of Raft Foundation Construction (CPMPSC Exhibits5.1 pp 148)Note
illustration
Section 2.4.2
Illustration # 2.09
Summary Precedence Network of Educational Buildings (CPMPSC Exhibits 5.5 pp 164)
Section 2.4.2
Illustration # 2.10
Summary Precedence Network of Primary School (CPMPSC Exhibits5.4 pp 163)
Section2.4.2
Illustration # 2.11
Raw Water Clarifier Tank Construction Precedence Network and Schedule (CPMPSC
Exhibits 5.7 pp 167)
Section 2.4.2
Illustration # 2.12
Site Development Project CPM and PNA Networks (CPMPSC Exhibits 5.8 pp 174)
Section
2.4.2
Illustration # 2.13
Site Development Project: Bar Chart Work Programme (CPMPSC Exhibit 6.1 pp 183).
Section 2.4.4
Illustration # 2.14
Site Development Project: Resources Limited Schedule (CPMPSC Exhibit 6.5 pp 196).
Presentation to be improved.
Section 2.4.4
Illustration # 2.15
2000 Housing Units Project: Summary Schedule of Education Buildings (CPMPSC Exhibit
6.6 pp 197)
Section 2.4.4
Illustration # 2.16
Residential Buildings Foundations Construction Cyclograph, (CPMPSC Exhibit 6.7 pp 204).
Illustration # 2.17
Residential Building Finishes Plan: Derived Using Line-of-Balance Technique, (CPMPSC
Exhibit 6.8 pp 205).
Section 2.4.4
Illustration # 2.18
Residential Building Finishes Control Chart : Derived Using Line-of-Balance Technique
(CPMPSC Exhibit6.9 pp 207)
Section 2.4.4
Illustration # 2.19
: 2000 Housing Units Project: Residential Building Monthly Target Tracking Chart( CPMPSC
Exhibit 6.10 pp 209-210).
Section2.4.4
Illustration #2.20: 2000 Housing Units Project, Summary Schedule of Construction Tasks (CPMPSC Exhibit 2.2
pp 44).
Section 2.4.4
Illustration # 2.21: 2000 Housing Units Project, Man–month Requirement and Earned Value Forecast(CPMPSC
Exhibit 2.3pp 48).
Section 2.5.1
Illustration #2.22: 2000 Housing Units Project: Extract from Workers 'Requirement Forecast (CPMPSC Exhibit
7.1 pp 235).
Section 2.5.2
Illustration # 2.23
:Residential Building's Sub-Project: ABC Classification of Direct Material ( CPMPSC Exhibit
8.1 pp249)
Section 2.5.3
Illustration # 2.24
: Functional Classification of Construction Equipment (CPMPSC Exhibit 9.1 pp 277).
Section
2.5.4
Illustration # 2.25: 2000 Housing Units Project: Major Plant & Equipment Planned (CPMPSC Exhibit 2.6 pp
53).
Section 2.5.4
Illustration # 2.26 :Construction Equipment Costing: Hourly Owning and Operating Cost Estimate ( CPMPSC
Exhibit 10.3 pp 328).
Section 2.5.4
Illustration # 2.27: Foundation Construction Sub-Project: Activity-wise Workers' Requirement Estimate for One
Foundation Module Construction (CPMPSC Exhibit 2.7 pp 54).
Section 2.6.1
Illustration # 2.28: Foundation Construction Sub-Project: Major Materials Requirement Estimate for One
Foundation Module (CPMPSC Exhibit 2.8 pp 56).
Section 2.6.1
Illustration # 2.29: 2000 Housing Units Project: Organisation Chart ( CPMPSC Exhibit 12.1 pp 368 same as
Exhibit 1.01 pp27).
Section 2.6.2
Illustration #2.30:
2000 Housing Units Project: Task Responsibility Centres (CPMPSC Exhibit 12.2 pp 369)
.
Section2.6.2
Illustration #2.31
Project Expense Budget Formats (CPMPSC Fig 12.2 pp 374).
Section 2.6.2
Illustration # 2.32: Project Control System (CPMPSC Exhibit 13.1 pp 395).
Section 2.7.1
Section 2.7.1
Illustration # 2.34
Typical Performance Control Responsibility Matrix ( CPMPSC Exhibit 13.6 pp 418).
Section
2.7.1
Illustration # 2.35: Labour Productivity Accounting System (CPMPSC Fig 14.1 pp 421).
Section 2.7.2
Illustration # 2.36
Project Budgeted Cost Chart ( CPMPSC Exhibit 15.11 pp-463).
Section 2.7.3
Illustration # 2.37
Integrated Time- Cost Performance Chart ( CPMPSC Fig 15.1 pp445).
Section 2.7.3
Illustration # 2.38
CPM / PERT Updated Network (CPMPSC Fig 16.1 pp 474).
Section 2.7.4
Illustration # 2.39: Primary School Construction: Updated Summary Precedence Network (CPMPSC Exhibit
16.1 pp 478)
.Section 2.74
Illustration # 2.40: Updated Line-of-Balance Chart (CPMPSC Exhibit 16.2 pp 479).
Section 2.7.4
Illustration # 2.41:
Updated Bar Chart Schedules ( CPMPSC Exhibit 16.3 pp 481)
Section 2.7.4
Illustration # 2.42: Pumping Station Project Original and Time Compressed Network (CPMPSC Exhibit 16.6 pp
488)
. Section 2.7.4
Illustration # 2.43
2000 Housing Units Project Work Codes ( CPMPSC Exhibit 17.1 pp 507).
Section 2.8
Illustration # 2.44:
Labeled List of Drawings for a Health Centre Building ( CPMPSC Exhibit 17.3 pp 526).
Section 2.8
Illustration # 2.45. Project Team Functions and Software Requirements. ( CPMPSC Table 18.1 pp 538)
Section18.3
Lesson 3
Project Work Breakdown
Illustration # 3.1: 2000 Housing Units Project: Sub-project and Task Level Work Breakdown (CPMPSC Exhibit
3.1 pp74)
Section 3.3.2
Illustration # 3.2:
Construction of Residential Building: Work-breakdown Structure (CPMPSC Exhibits 3.2 pp
75)
Section 3.3.2
Illustration # 3.3 :
Construction of Residential Building Foundation : Work-breakdown Structure (CPMPSC
Exhibits 3.3 pp 76)
Section 3.3.2
Illustration # 3.4: Pumping Station Project: Work-breakdown Structure (CPMPSC Exhibit 3.4 pp 80)
Section
3.4.2
Illustration # 3.5
Primary School Construction: Work breakdown Structure ( CPMPSC Exhibit3.6 pp 83)
Section 3.4.2
Illustration # 3.6
:Planning of a Factory Project During Feasibility Stage: Task Matrix (CPMPSC Exhibit 3.5 pp
82)
Section 3.4.3
Illustration # 3.7:
Construction of Education Buildings: Activities Matrix with Duration (CPMPSC Exhibit 3.7 pp
84)
Section 3.4.4
Illustration # 3.8: CI/SfB Table No.1 (CPMPSC Table 3.2 pp 85 )
Section 3.4.5
Lesson 4
Project CPM/PERT Network Analysis
Illustration # 4.1
: Pumping Station Project: CPM Network Time Analysis ( CPMPSC Exhibits pp 105)
Section
4.3.1
Illustration # 4.2
: Pumping Station Project: Layout Drawing ( CPMPSC Fig 3.1 pp 78 )
Section 4.3.1
Illustration # 4.3
Activities of Pumping Station Project (CPMPSC Exhibits pp 122)
Section 4.3.3
Illustration # 4.4
Activities Dependence Table of Pumping Station Project (CPMPSC Exhibits pp 123)
Section
4.3.4
Illustration # 4.5
Work Package Logic Diagram of Pumping Station Project (CPMPSC Fig 4.15 pp 125)
Section 4.3.5
Illustration # 4.6
Logic Diagram of Pumping Station Project (CPMPSC Fig 4.17 pp 127)
Section 4.3.5
Illustration # 4.7
Draft Network of Pumping Station Project (CPMPSC Fig 4.18 pp 129)
Section 4.3.6
Illustration # 4.8
Critical Path Calculation of Pumping Station Project (CPMPSC Fig 4.19 pp 131-132)
Section
4.3.10
Illustration # 4.9
Pumping Station Project: Time Compressed Network (CPMPSC Exhibits16.6 pp 488)
Section
4.4
Illustration # 4.10
PERT Network of Pumping Station Project (CPMPSC Exhibits 4.3 pp 133)
Section 4.5.1
Illustration # 4.11: Normal Distribution Table (CPMPSC Table 4.4 pp143 with figure)
Section 4.7
Lesson 5 Precedence Network Analysis
Illustration # 5.1
Precedence Network of Raft Foundation Construction (CPMPSC Exhibits5.1 pp 148)
Section
5.2
Illustration # 5.2
Repetitive Works Project: Precedence Network of Four Rafts Foundation Construction
(CPMPSC Exhibits 5.2 pp 156)
Section 5.4
Illustration # 5.3
Summary Precedence Network of Educational Buildings (CPMPSC Exhibits 5.5 pp 164)
Section 5.4
Illustration # 5.4
Primary School Structure Construction Precedence Network( CPMPSC Exhibits 5.3 pp 162)
Section 5.5.1
Illustration # 5.5
Summary Precedence Network of Primary School (CPMPSC Exhibits5.4 pp 163)
Section 5.5.2
Illustration # 5.6:
Raw Water Treatment Clarifier Layout (CPMPSC Exhibits pp 165)
Section 5.5.2
5.7 pp 167)
Section 5.5.2
Illustration # 5.8
Site Development Project CPM and PNA Networks (CPMPSC Exhibits 5.8 pp 174)
Section
5.7.3
Illustration # 5.9A: Factory Construction Project Conversion of CPM into PNA Network (CPMPSC Exhibits
5.9a pp 175)
Section 5.7.3
Illustration # 5.9B: Factory Construction Project: PNA Network (CPMPSC Exhibits 5.9 b. pp 176)
Section
5.7.3
Lesson 6 Project Work Scheduling
Illustration # 6.1: Site Development Project: Bar Chart Work Programme (CPMPSC Exhibit 6.1 pp 183)
Sections 6.2.1 & 6.4.3
Illustration # 6.2
2000 Housing Units Project: Summary Schedule of Education Buildings (CPMPSC Exhibit 6.6
pp 197)
Section 6.2.2
Illustration # 6.3 Site Clearance Project Earliest Start Time Schedule ( CPMPSC Table 6.2 pp188}
Section 6.4.5
Illustration # 6.4
Site Development Project: Time Limited Optimum Resources Schedule ( CPMPSC Exhibit 6.4
pp 193)
Section6.4.8
Illustration # 6.5
Site Development Project: Resources Limited Schedule (CPMPSC Exhibit 6.5 pp 196)
Section
6.4.11
Illustration # 6.6
Residential Buildings Foundations Construction Cyclograph (CPMPSC Exhibit 6.7 pp 204)
Section 6.5.1
Illustration # 6.7
Residential Building Finishes Plan: Derived Using Line-of-Balance Technique (CPMPSC Exhibit
6.8 pp 205)
Section 6.5.5
Illustration # 6.8
Residential Building Finishes Control Chart : Derived Using Line-of-Balance Technique
(CPMPSC Exhibit6.9 pp 207)
Section 6.5.5
Illustration # 6.9 :
2000 Housing Units Project: Residential Building Monthly Target Tracking Chart( CPMPSC
Exhibit 6.10 pp 209-210)
Section 6.5.5
Illustration # 6.10
2000 Housing Units Project: Summary Schedule of Construction Tasks (CPMPSC Exhibit2.2
pp 44)
Section 6.5.5
Illustration # 6.11: 2000 Housing Units Project: Man–month Requirement and Earned Value Forecast (CPMPSC
Exhibit2.3 pp 48)
Section 6.6
Lesson 7 Planning Construction Manpower
Illustration # 7.1: Typical Building Construction Worker’s Production Planning Data( CPMPSC Table7.3
pp225)
Section 7.4.1
Illustration # 7.2
:2000 Housing Units Project: Extract from Workers 'Requirement Forecast (CPMPSC Exhibit
7.1 pp 235)
Section 7.6.4
Illustration #7.3: Typical Housing Project Organisation ( CPMPSC Exhibit 1.1 pp27and Exhibit 7.2 pp 237)
Section 7.7.1
Lesson 8 Planning Construction Materials
Illustration # 8.1:
Residential Building's Sub-Project: ABC Classification of Direct Material (CPMPSC Exhibit
8.1 pp249)
Section 8.2.2
Illustration # 8.2:
Monitoring Material Schedule ( CPMPSC Table 8.5 pp261 )
Section 8.5.3
.
Illustration # 8.3:
Minor Materials Mobilisation Stock (CPMPSC Exhibit 8.2 pp 270)
Section 8.7.4
Illustration # 8.4
(CPMPSC Fig 8.3 pp268).
Section 8.7.2
Lesson 9 Project Construction Equipment
Illustration # 9.1: Functional Classification of Construction Equipment (CPMPSC Exhibit 9.1 pp 277)- newly
added illustration in the lesson 9.2.
Section 9.2
Illustration # 9.2
: 2000 Housing Units Project: Major Plant & Equipment Planned (CPMPSC Exhibit 2.6 pp
53)
.
Section 9.2
Illustration # 9.3: Earth Excavating and Lifting Equipment (CPMPSC Exhibit 9.2 pp 281)
Section 9.4
Illustration # 9.4: Earth Cutting and Hauling Equipment ( CPMPSC Exhibit 9.4 pp 286)
Section 9.5
Illustration # 9.5: Common Earth Compacting Equipment ( CPMPSC Exhibit 9.5 pp 293)
Section 9.8.1
Illustration # 9.6 Typical Major Compacting Equipment: Salient Features (CPMPSC Exhibit 9.6 pp299)
Section
9.8.1
Illustration # 9.7:
Major Concreting Equipment ( CPMPSC Exhibit 9.7 pp 301)
Section 9.9
Illustration # 9.8:
Materials Handling Equipment (CPMPSC Exhibit 9.8 pp 306)
Section 9.10
Lesson 10 Selecting Construction Equipment
Illustration # 10.1: Standard Methods of Determining Depreciation (CPMPSC Exhibit 10.2 pp 322)
Section
10.4.1
Illustration # 10.2: Construction Equipment Costing: Hourly Owning and Operating Cost Estimate ( CPMPSC
Exhibit 10.3 pp 328)
Section 10.4.3
Illustration #10.3:Plant Leasing Offer of a Concrete Pump (CPMPSC Exhibit 10.4 pp 335)
Section 10.6.3
Illustration #10.4: Equipment Replacement Decisions Data (CPMPSC Exhibit 10.5pp 338)
Section 10.6.4
Lesson 11 Planning Construction Costs
Illustration # 11.1
Typical Indirect Costs Classification of a Multi-national Company ( CPMPSC Exhibit 11.1
pp347)
Section 11.5.3
Illustration # 11.2
Indirect Costs: Functional Breakdown ( CPMPSC Exhibit 11.2 pp348)
Section 11.5.3
Illustration # 11.3
:Foundation Construction Sub-Project: Activity-wise Workers' Requirement Estimate for One
Foundation Module Construction (CPMPSC Exhibit 2.7 pp 54)
Section 11.7.1
Illustration #11.4
Foundation Construction Sub-Project: Major Materials Requirement Estimate for One
Foundation Module (CPMPSC Exhibit 2.8 pp 56)
Section 11.7.1
Illustration # 11.5
Readymix Concrete Production Cost ( CPMPSC Exhibit 11.2 pp348)
Appendix K
Lesson 12 Planning Construction Budgets
Illustration #12.1 :
2000 Housing Units Project: Organisation Chart ( CPMPSC Exhibit 1.1 pp27andExhibit 12.1
pp 368).
Section 12.3.2
Illustration # 12.2:
2000 Housing Units Project: Task Responsibility Centres (CPMPSC Exhibit 12.2 pp 369)
Section 12.3.2
Illustration #12.3 :
Typical Contractor’s Monthly Interim Payment Application (CPMPSC Table 12.1 pp 372)
Section 12.4
Illustration #12.4 :
Typical Expense Budget Breakdown (CPMPSC Fig 12.2 pp 374)
Section 12.5.1
Lesson 13 Project Scope Control
Illustration # 13.1 : Project Performance Control (CPMPSC Fig. 13.2 pp 399)
Section 13.2
Illustration # 13.2:
2000 Housing Units Project: Design and Drawings development Schedule (?)
Section 13.3.1
Illustration # 13.3:
2000 Housing Units Project: List of Drawings for Health Centre Building. (CPMPSC Exhibit
17.3 pp526)
Section 13.3.2
Illustration # 13.4:
2000 Housing Units Project Typical Responsibility Centre Performance Reports ( CPMPSC
Exhibit 13.2 pp 403)
Section 13.5.2
Illustration # 13.5: Project Control System (CPMPSC Exhibit 13.1 pp 395)
Section 13.7.2
Illustration # 13.6
Foundation Construction Sub-Project (CPMPSC Exhibit 13.3 pp 406)
Section 13.5.2
Illustration # 13.7 : Typical Performance Control Responsibility Matrix ( CPMPSC Exhibit 13.6 pp 418)
Section
13.8
Lesson 14 Resources Productivity Control
Illustration # 14.1:
Time–Keeper Daily Time Card (CPMPSC Table 14.1 pp 422). To be developed by the
programmers
Section 14.3.2
Illustration # 14.2: Supervisor/Foreman Daily Labour Employment Report (CPMPSC Table 14.2 pp 424)
Illustration # 14.3: Weekly Labour Productivity Report (CPMPSC Table 14.3 pp 425)
Section 14.3.2
Illustration # 14.4:
Labour Productivity Control Chart (CPMPSC Exhibit 14.1 pp426.
Section 14.3.2
Illustration # 14.5: Typical Daily Equipment Employment Report (CPMPSC table 14.4 pp 428)
Section 14.4.2
llustration # 14.6: Weekly Equipment Productivity Sheet (CPMPSC Table 14.5 pp 429)
Section 14.4.2
Illustration # 14.7: Stock Record Card ( CPMPSC Table 14.6 pp 432)
Section 14.5.3
Illustration # 14.8
Typical Materials Requisition and Issue Control (CPMPSC Table 14.7 pp 433)
Section 14.5.4
Illustration # 14.9: Typical Materials Return Control (CPMPSC Table 14.8 pp 434)
Section 14.5.4
Illustration # 14.10: Typical Stores Accounting Ledger Sheet (CPMPSC Table 14.9 pp 435)
Section 14.5.5
Lesson 15 Project Cost Control
Illustration # 15.1
: Project Budgeted Cost Chart (CPMPSC Exhibit 15.1.1 pp 463)
Section 15.7
Illustration # 15.2 : Integrated Time- Cost Performance Chart ( CPMPSC Fig. 15.1 pp 445 )
Section 15.7
Lesson 16 Project Time Control
Illustration # 16.1 : CPM / PERT Updated Network (CPMPSC Fig 16.1 pp 474).
Section 16.2.2
Illustration # 16.2 : Primary School Construction: Updated Summary Precedence Network (CPMPSC Exhibit
16.1 pp 478)
Section 16.2.2
Illustration # 16.3 : Updated Line-of-Balance Chart (CPMPSC Exhibit 16.2 pp 479)
Section 16.2.2
Illustration # 16.4:Updated Bar Chart Schedules ( CPMPSC Exhibit 16.3 pp 481)
Section 16.2.2
Illustration # 16.5:
Master: Network of Pumping Station Project (CPMPSC Exhibit 16.4 pp 483)
Section 16.5
Illustration # 16.6 : Pumping Station Project: Modified Network Incorporating Changes ( CPMPSC Exhibit 16.5
pp 484)
Section 16.5
Lesson 17 Planning Data Codification
Illustration # 17.1
: 2000 Housing Units Project Work Codes ( CPMPSC Exhibit 17.1 pp 507)
Section 17.4.2
Illustration # 17.2
: CI / SfB Table 1 (CPMPSC Table 17.1 pp 505)
Section 17.4.4
Illustration # 17.3
:CSI MasterFormat ( CPMPSC Table 17.6 pp 516)
Section 17.4.5
Illustration # 17.4
: Manpower Code ( CPMPSC Table 17. 10 pp 524)
Section 17.7.1
Illustration # 17.5
:Materials Code ( CPMPSC Table 17.4 pp 512)
Section 17.7.2
Illustration # 17.7
:Finance Accounting Code ( CPMPSC Table 17.9 pp 523)
Section 17.8.3
Illustration # 17.8
: 2000 Housing Units Project Health Centre Building: Labelled List of Drawings ( CPMPSC
Exhibit 17.3 pp 526)
Section 17.9.1
Lesson 18 Project Management Information System
Illustration # 18.1
: Typical Software Requirement in Project Management (CPMPSC table 18.1 pp 538)
Section
18.3
Acknowledgements
Krishan K Chitkara, the author, expresses his sincerest thanks to the contribution and support
extended by the following in making the CPMT Plus:
Construction Industry Development Council, India. Author is grateful to the
Hon. G. V. Ramakrishna, Chairman, for writing the ‘Foreword’ in CPMT Plus, and
thankful to Mr. P. R. Swarup, Director, CIDC, for his encouragement and
cooperation in developing this CD-ROM.
Housing and Urban Development Corporation (HUDCO). Author is thankful to
Mr. V. Suresh, Chairman, Directors and Staff for their support in developing
the CPMT Plus. In particular, Dr. P. S. Rana, Director Corporate Planning has
been the main source of inspiration in bringing out this CD and the students from
HUDCO have made valuable contribution in the development of the CPMT Plus.
Primavera Systems, INC, of USA, for providing and permitting to use the working
model of Primavera Project Planner 3.0 and SureTrak Project Manager 3.0 in the
CPMT Plus. Primavera Project Planner (R), P3 (R), and SureTrak Project Manager
(R) are registered trademarks of Primavera Systems, Inc.
International Labour Organisation, Geneva, for permitting to reproduce the
‘Checklist’ from “ Safety, Health and Welfare on Construction Sites: A Training
Manual’. published in 1995.
Project Management Institute, Inc, PA 19073-3299 USA, for allowing to include
the project manager skill model titled “The Superior Project Manager”, from “The
Quest To Find The Superior Project Manager”, published in PM Network, July
1998.
Institute of Construction Project Management, Gurgaon, faculty and staff
engaged in promoting state-of the art knowledge in Construction Management.
Construction Journal of India for the support in development of CPMT Plus.
Publisher and Developer of CPMT Plus, for their untiring effort in bringing this
project to its present form.
Last but not the least, I am thankful to my family for their understanding and
continued support which saw me through the extended working hours.
K. K. Chitkara,
Author and Program Director,
CPMT Plus.
Disclaimer. Despite their best efforts, the author, supporters and contributors of this
Appendices Contents
Appendix–A: Indian Construction Scenario
Construction and Scope.
Construction Contribution in the Indian Economy.
Growth of Indian Construction Industry.
·
Domestic Construction Tasks Ahead.
Globalization: Challenges for the Construction Industry.
Appendix–B: Project Feasibility Study
Purpose of the Feasibility Study.
Analysing Factors Affecting Project Feasibility.
Feasibility Report.
Appendix–C : Sizing Project Work Packages
Importance of Work Packages.
Factors Affecting Sizing of Work Packages.
Re-sizing Work Packages.
Appendix–D: Project Duration Assessment– Using Monte Carlo Simulation Technique
Introduction.
Concept.
Activity Duration Probability Distribution Function.
Methodology.
Examples.
Risk in Assessed Project Completion Time.
Appendix–E: Project Time–Cost Trade–off Technique
·
Time–Cost Relationship.
·
Concept.
·
Plotting Project Cost–Time Function.
·
Time Crashing.
A Word of Caution.
Appendix–F: Decision Network Analysis
Scope.
·
Types Of Decision Network Analysis Techniques.
·
Decision Network Analysis.
·
Decision Tree Analysis.
·
Conclusion.
Appendix–G: Project Management Organization
Project Organization Concept.
·
Project Organizational Forms.
·
Project Organizational Structure.
·
Project Responsibility Centres.
·
Strengths and Weaknesses of the Project Management Matrix Organization.
Conclusion.
Appendix–H : Resources Allocation Using Linear Programming
Introduction and Scope.
Solution of Linear Programming Problems by Graphical Method.
Solution of Linear Programming Problems by Simplex Method.
Solution of Linear Programming Problems by Dual Method.
Conclusion.
Appendix–I: Earthmoving Equipment: Approximate Production Planning Data for
Primary Tasks
· Introduction.
·
Tracked Bull Dozer Ideal Output Per Hour in Bulk Volume in Easy-To-Do
Loose Soil.
·
Front-End Loader Ideal Output Per Hour in Bulk Volume Easy-To
Haul Loose Soil.
·
Ideal Output of the Tracked Loader Shovel.
·
Excavating and Lifting Equipment Ideal Output Per Hour in Bulk Volume.
·Scrapper Ideal Output Per Hour in Bulk Volume in Easy To Scrap Soil.
Performance Factors.
Appendix–J: Time Value Of Money
·
Time-Money Link.
·
The Future Value of a Single Amount.
·
The Future Value of an Annuity of Equal Amount.
·
The Present Value of a Future Amount.
·
The Present Value of an Annuity of Equal Amount.
·
The Present Value of Cash Inflow of Unequal Amount and Discount.
Appendix–K: Break-Even Analysis
Introduction.
Break-Even Analysis Methodology.
Assumptions and Limitations.
Uses of Break-Even Analysis.
Appendix–L: Capital Budgeting Process
Importance of Capital Budgeting.
Estimating the Cash Flow.
Establishing the Cost of Capital.
Applying the Investment Appraisal Criterion.
Appendix–M: Project Quality Management
Introduction and Scope.
Quality Concept.
Quality Management Principles.
Corporate Quality Policy.
Production Quality Management Processes.
Quality Cost Analysis.
Total Quality Management.
TQM Vs TPM.
Appendix–N : Worker’s Safety Comes First
Why Safety Comes First?
Causes of Accidents at Construction Site.
Statutory Safety Measures in India.
Formulating Project Safety Policy.
Building Safety in Site Layout and Temporary Facilities.
Safety Related Role of the Project Personnel.
Conclusions.
Annexure (i):
Extracts from The Building and Other Construction Workers ( Regulation of Employment and
Condition of Service ) Act 1996 and Central Regulation 1998.
Annexure (ii):
Construction Safety Checklist.
Appendix–O: Project Risk Management–An Overview
·
Introduction and objectives.
·
How are risks identified?
·
How are project risks analyzed?
·
How is risk response plan developed?
·
How are project risks controlled?
·
How does the human side affect the management of risks?
·
What is the role of a Project Manager in managing risks?
What are the benefits of managing project risks?
Appendix–P: Construction Contracts Administration
· Introduction and Scope.
· Role of the Participants.
· Production Performance Control.
· Specification Interpretation.
· Scope Change Control.
· Sub-contractor Approval.
· Disputes, Claims and their Modes of Settlement.
· Contract Termination Control.
· Interim Valuation Payment Control.
· Contract Bonds and Securities.
· Project Close-out.
· Formal Correspondence Rules.
· Guidelines to Minimize Problems in Contract Administration.
Appendix–Q : Managing Privatized Infrastructure Projects
Introduction and Scope.
Stakeholders.
Role of Government in Designing and Implementing the Concessions.
Concessionaire Project Management Process.
Key factors in Management of Privatized Infrastructure Projects.
Conclusion.
Appendix–R: Upgrading Total Project Management Skills
·
Introduction and Scope.
Knowledge Areas Needed for Managing Construction Projects.
Skills Development Model.
Skills Up-gradation Methodology.
Academia-directed Project Management Education.
Corporate-directed Project Management Training.
Individual-directed Self-learning.
Distance Learning in Virtual Classroom to Speed up Delivery.
Conclusion.
Appendices
Indian Construction Scenario Time Value Of Money Project Feasibility Study Break-Even Analysis Sizing Project Work Packages Capital Budgeting Process Project Duration Assessment: Using Monte Carlo
Simulation Technique Project Quality Management Project Time—Cost Trade–off Technique Worker's Safety Comes First
Decision Network Analysis Project Risk Management: An Overview Project Management Organization Construction Contracts Administration Resources Allocation Decisions Managing Privatised Infrastructure Projects Earthmoving Equipment: Approximate Production
INDIAN CONSTRUCTION SCENARIO
Appendix A
A.1
CONSTRUCTION SCOPE
The construction activity has been in existence since the dawn of civilisation, when the caveman
started building his dwellings. Even in ancient times, man created architectural marvels which
came to be regarded as the wonders of the world, for example, the Pyramids of Egypt, the Great
Wall of China, the Angkor temples of Cambodia, and the Tower of Babel. The medieval times
witnessed the construction of world-famous landmarks like the Taj Mahal in India and the Leaning
Tower of Pisa in Italy. A more recent example of man's achievements in this direction is the Eiffel
Tower in Paris and the high-rise skyscrapers.
In the present day world, technical breakthroughs have revolutionized construction activity.
Modern construction areas include high-rise buildings, dams and irrigation networks, energy
conversion and industrial plants, environmental protection works, infrastructure facilities like
roads, bridges, railways, airports and seaports, satellite launching stations, on-shore and off-shore
oil terminals.
In India , investment in new construction works during the year 1998–99 was of the order of Rs.
1367.54 billion
A.2
CONTRIBUTION OF CONSTRUCTION WORKS IN THE INDIAN ECONOMY
Construction activity contributes to the economic development of a country. The GDP per capital
and the investment in the construction per capita generally follows a straight-line relationship, that
is, construction activity increases with the increase in per capita income. In some of the
developing countries, the growth rate of construction activity outstrips that of the population and
of the GDP. In case of India, for example, during the last ten years, the total capital formation by
construction was about 44% of the total investment and the contribution of construction in GDP
was nearly 5%.
Construction accelerates economic growth of a nation. In India, for example, during the plan
period 1980-85 for every rupee of investment, construction added 78 paise to the GDP as
compared with 20 paise per rupee of investment in agriculture.
Construction is an employment spinner. It generates more employment than most of the sectors.
In India, during the eighties, the overall annual employment increased by 2%, whereas increase of
employment in the construction sector during the same period recorded an annual growth of about
7%. Further, in India, the number of persons employed in the Indian Construction Industry is
around three millions.
India’s planned development coupled with the reforms, despite the ever increasing population,
have contributed to the remarkable growth in the country’s economy.
Year
1995
1996
1997
1998
1999
Population
946
963
980
998
999
Population Growth Rate
1.84
1.81
1.79
1.82
Source: Construction Industry Development Council, Third National Conference, Souvenir–2; February 2000
Main Macroeconomic Indicators : GDP and Components – INR in Trillions
Year
1995
1996
1997
1998
1999
GDP at Real Prices (1993-94)
8.76
9.38
9.99
10.49
11.02
GDP at Current Market Prices
11.27
12.06
12.86
14.27
14.98
Primary Sector
8.11
8.43
9.41
9.77
Manufacturing Sector
0.75
0.84
0.90
0.96
Service Sector
1.50
1.69
1.86
2.05
Construction Sector
1.70
1.90
2.1
2.2
Source: Construction Industry Development Council, Third National Conference, Souvenir–2; February 2000
FINANCIAL INDICATORS
Year
1995
1996
1997
1998
1999
Changes in Consumer Price Index %
9.10
8.40
7.2
6.1
4.20
Short Term Interest Rate %
18-20
18-20
18-20
18-20
Long Term Interest Rate %
10-13
10-13
10-13
10-13
US $ Annual Average Exchange
Rate
Rs.31.0
Rs.32.0
Rs.36.0
Rs.42.7
Rs.43.8
Source: Construction Industry Development Council, Third National Conference, Souvenir–2; February 2000
India witnessed a rapid growth in the production of the essential construction materials
.
Production of the Essential Construction Materials
Annual Production in Million Tons Per Year
Year
Cement
Steel
Coal
1947
3.2
1.0
-1950
5.3
1.4
32.3
1970
14.7
4.5
76.3
1980
29.6
8.8
119.0
1990
45.8
12.6
225.5
1995
76.2
22.7
-1998
82.9
24.8
318.9
Dur
ing the last few years, the construction prices of the essential construction materials have
remained fairly stable.
AVERAGE CONSTRUCTION MATERIAL PRICES
(INR)
ITEM
Unit
1995
1996
1997
1998
1999
Cement in bulk
Tonne
2,600
2,700
2,750
2,800
2,800
Steel bars
Tonne
14,000
14,500
15,000
15,000
15,000
Source: Construction Industry Development Council, Third National Conference, Souvenir–2Feb.2000
Construction is the second largest industry on the basis of the total labour force engaged.
Development patterns in the construction largely reflect the national trends in terms of growth,
income generation, housing and other economic indicators. However, a lot remains to be done for
the construction workers, most of them live below the poverty line. This largely floating, mostly
untrained workforce with no fixed accommodation and lacking other normal facilities, is engaged
in hazardous work conditions with no appreciable compensatory benefits. The safety, training and
welfare of the construction workers must come first, always and every time.
A.3 GROWTH OF INDIAN CONSTRUCTION INDUSTRY
During India’s pre-independence period, the Indian Construction Industry was mainly confined to
low-tech nature of construction in the field of railways, dams, drains, canals, roads, buildings,
ports, utility services and other facilities. With the dawn of independence, Indian construction
entered into a new era. The new construction increased rapidly from mere Rs2.00 billion in
1951-52 to Rs1367.54 billion in 1998-99. It is expected to rise to Rs 3060.36 billion during
2006-07.
GROWTH IN CONSTRUCTION INDUSTRY
New Construction in Billion IRS
1951-52
1961-62
1969-70
1980-81
1986-1987
1990–1991
Rs 2.00b
Rs. 5.50b
Rs 13.60b
Rs 136.4 9b
Rs 305.73b
Rs 583.63b
FORECASTING GROWTH IN CONSTRUCTION INDUSTRY
New Construction in Billion IRS
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-2001
Rs
1027.58b
Rs1129.56b
Rs1242.44b
Rs1367.54b
Rs1497.92b
(forecast)
Rs
1669.94b
(forecast)
Based on the bidding value, Indian contractors are broadly divided into three categories, i.e.
bidding value over Rs 300m, between Rs 100m to Rs 300m, and less than Rs 100 million. There
are over 28,000 construction companies. Majority of the constuction companies fall in the last
category having bidding capacity less than Rs 100 million. There are about 200 companies
including those with joint ventures, who can undertake large-sized turnkey / EPC contracts. The
top ten construction companies in India are tabulated below:
LEADING INDIAN CONSTRUCTION COMPANIES
Name of the Companies Turnover U.S $ Million Main Work Larsen &Toubro Ltd. (ECC Group)
http://www.larsentoubro.com
http://www.lntecc.com
448.24(96-97) Heavy Industrial Construction, Institutional Buildings, Special Structures.
Gammon India Ltd.
http://www.gammomindia.com
61.23 (96-97) 63.54 (97-98)
Hydraulic Structures, Tunnelling, Natural Draft Cooling Towers, Heavy Industrial Construction, Bridges and Flyovers
Hindustan Construction Company Ltd.
http://www.hccindia.com
87.31 (96-97) 88.66 (97-98)
Hydraulic Structures, Bridges, Flyovers, Irrigation Structures, Heavy Industrial Construction.
Jaiprakash Industries Limited 180.70(96-97) 151.76(97-98) for 9 months only
Hydraulic Structures, Hydro-Electric Power Plants, Heavy Industrial Construction.
Unitech Ltd.
http://www.unitechlimited.com
64.07 (1997) 54.86 (1998)
Roads, Bridges, Heavy Industrial Construction, Housing and Institutional Buildings, Real Estate
Kvaerner Cementation India Ltd.
http://www.kvaerner.com
50.50 (95-96) 58.50 (96-97)
Hydraulic Structures, Heavy Industrial Construction
Continental Construction Ltd. http://www.cclindia.com
29.00 (95-96) 27.00 (96-97) 32.00 (97-98)
Hydraulic Structures, Roads and Highways, Hydro Power Plants.
National Buildings Construction Corporation Ltd.
http://www.nbccindia.com
60.00 (96-97) 61.00 (97-98)
Hydraulic Structures, Roads and Highways, Hydro Power Plants and Cooling Towers, Directional Drilling.
Bridges & Roof Co. Ltd. http://www.bridgroof.com
54.30 (96-97) Hydraulic Structures, Roads and Highways, Hydro Power Plants and Cooling Towers, Directional Drilling.
Punj Lloyd Ltd. [email protected]
43.50 (96-97) 51.50 (97-98)
Hydraulic Structures, Roads and Highways, Hydro Power Plants and Cooling Towers, Directional Drilling, Pipelines, Heavy Construction.
Source: Construction Industry Development Council, Third National Conference, Souvenier -- 2nd Feb., 2000
