Challenges and Issues in Construction
This Literature review depicts the role of constriction and its principles that are to be followed for the successful design of an office complex for the school of 6. In order to design a technical environment the constructors should follow the basic norms as well as values of construction. The issues or problems associated to design and construction of such office complex are illustrated in this literature. In addition to this, the project formulation principles must be followed by the constructors including project planning and the roles of the project managers for the successful accomplishment of such project are also elaborated in this literature. Not only this but also, the details business plan for this specific project are and its comparison with other projects are also critically analyzed in this project.
1.1 Issues and problem related to Design and construction of office complex for the school of environmental design technology
Construction is a complex process that includes numerous steps and various stakeholders. Sometimes the result of a construction process is different from what was planned (Roy & Jacob, 2015). This due to different suggestions from different stakeholders and the clash occurred due to different thoughts. Sometimes the stakeholders do not cooperate and are not ready to compromise. Architects are supposed to prepare a particular set of documents. These documents are a reference to how the construction would be carried out. These documents should be coordinated with the engineers, interior designers, waterproof consultants and landscape architects. At the end, it is a complicated set of data as well as confusing to many (Roy & Jacob, 2015). In remotely situations, many conditions are not known as a result it is pronounced. As a result, even if people have good intentions, wrong things are built (Simatupang & Sridharan, 2016). Construction of an office complex for the School of Environmental Design Technology might face many challenges. These challenges are as follows.
- Poor productivity as well as profitability: nowadays entering into the construction industry is an easy job (Simatupang & Sridharan, 2016). People hardly find barriers in doing so. This creates a market with high competition. The competition decreases profit margins as well as constrains important investments in good practices of business and new technologies. The permanent labor productivity for construction has resolved the problem. On the other hand, some businesses had gained a boost on productivity of labors. As per the study carried out by Construction Owners Association of America, 63% of time invested in construction is wasted because the labors need to wait for the materials, travelling to the area of construction, equipments needed for it, taking early breaks and panning regarding the work. This lack of the production affects the overall result. As a result the construction organizations are trapped between the stagnant production and shrinking their profit margins (Mahmoudi, Ghasemi & Mohammadfam, 2014). Poor productivity and profitability affects the project in a negative way.
- Shortage of well skilled labor: construction industry has faced a reduction in the number of labors (Ashworth & Perera, 2018). According to Associated General Contractors of America, it was found that the 74% of personnel say that there is a lack of skilled labors and 53% of them say that they cannot afford to hire an estimator, engineer and a supervisor. Before the recession that has occurred recently, it was considered that the construction industry is divided into two generations, first being the traditional one and second, the baby boomers (Ashworth & Perera, 2018). Now it has four generations, traditionalists, Generation X, millennials and baby boomers. The diversification of labor has become a threat because of huge differences in attitude, behavior among the generations, work ethic and stark differences. Most of the projects do not have enough number of skilled labors; they hire new people for the project and train them, after the project is over, most of the labors leave the project and some leave even before the project is completed (Ashworth & Perera, 2018). This would result in hiring new people for the next project and again train them. This affects the construction company as well as the project greatly. Along with that, the company needs to invest in the training, which is wasted when the labors leave (Ashworth & Perera, 2018). The combined decreasing experience and increased complexity in project contributes risks for the company. It is difficult to hire an already skilled labor that does not require any training. For this, the company has to invest more, because the demand of skilled labors is higher than the unskilled labors.
- Project performance: the rate of opportunities in a construction industry has been growing but along with this, the project complexity grows as well (Finkel, 2015). Companies set their profit margins very low; as a result, one production surprise has the capability to wipe out the particular county’s profit. Construction organizations try to keep their profit margins quite high. The companies are facing a loss of on budget as well as on time projects (Finkel, 2015). Constructing an office complex requires more time than expected which increases the cost invested as well as the time require. according to a study carried out by Accenture, it has been found that the among the total number of construction carried in a country, only 30% of the projects are completed within the expected budget and only 15% of all are delivered within the expected time. Besides this, several projects have been underperformed (Finkel, 2015). Project performance is an important factor for any project including the construction of an office complex. Delay in the project affects the stakeholders as well as the end users.
- Sustainable concerns: the construction field is the greatest consumer of various raw materials. It releases almost 25% to 50% of the carbon that is generated all over the world (Ye, Ren & Shi, 2018). The amount of natural resources utilized by the construction industry is not at all sustainable. It could even compromise the surrounding environment for the industry’s growth. Water management and change in climate are one of the dangerous issues that create a negative impact on the environment. This also affects the growing industry of construction (Ye, Ren & Shi, 2018). The huge amount of carbon emitted by the construction industry is very difficult to reduce especially in the developing countries. A sustainable design and smart planning might contribute in reducing the amount of energy consumed by the industries (Ye, Ren & Shi, 2018). This as a result would also help in reducing pollution.
2.1 Critical analysis
The construction of office complex in South Wales would face various problems. These problems are critically analyzed in the following part: various problems are
- Tendering problems: a standard way of tendering in a competitive way has various weaknesses as well as limitations (Zainon, Chuing & Mohd-Rahim, 2018). It includes the exchange of various data along with technical knowledge. This result in bargaining that cannot be carried out for developing better relations. This does not provide any chance to the construction teams to integrate with each other. This is because the contractor is not allowed to get involved when the design phase is carried out (Zainon, Chuing & Mohd-Rahim, 2018). Construction or design stages are comparatively longer than the tender stages; because of this, the bidders are pressurized to complete their work within deadlines (Zainon, Chuing & Mohd-Rahim, 2018). This pressure results in errors in the costing, which increases the chance of risk. The tendering process is already very expensive. More than 80% of bidding carried out by various companies is unsuccessful which makes them to utilize the entire cost or handover to another client.
- Procurement problems: the procurement of work under the construction project has been following traditional project (Forsythe & Wilkinson, 2015). This approach allows the client to engage various organizations for approaching three key services of construction, measurement as well as cost advice and design. Traditional procurement has various problems (Forsythe & Wilkinson, 2015). The necessity of the design to develop completely prior the tenders gets prepared results in long duration of completing the project. It also increases the cost invested in the project because the overall time of the project is increased. The nomination part of the project does not have the ability to control and organize the functions of subcontracts that are nominated for the project (Forsythe & Wilkinson, 2015). This is because the subcontractors are not loyal to the contractor compare to the architect who has nominated them. In most of the projects, the designing phase and the construction phase are separated. This tends to creates an attitude of ‘them and us’ among the contractors and designers (Forsythe & Wilkinson, 2015). This creates a bitter relationship among them and reduces the team spirit between the teams. The reduction of team spirit is the major threat for the project. This might not provide success to that particular project. The traditional method has been very unsatisfactory for complex and large projects that need systems regarding advanced management, skills and structures (Forsythe & Wilkinson, 2015). This system works in a systematic format which results in lengthy period of construction and design. It also results in poor communication among the teams as well as clients (Forsythe & Wilkinson, 2015). The traditional method responds to the late demands of stakeholders, this result in delay of the delivery of project as well as increasing the amount of cost incurred in it.
- Financial problems: financial problems such as bargaining the wages and control in project cost are disastrous for the construction industry (Walker, 2015). These factors also contain delayed payments, design changes and cost overruns. Late payment to suppliers, sub contractors and contractors is the major reason for which a project faces problems. These problems would not be solved unless legislation is introduced (Walker, 2015). For solving the problem, a set of solutions were introduced which ranges from building trust accounts to introducing their interest on payment that is overdue. Cost overruns are other challenges to construction industry. Cost overruns result in changes in the project design. Similar to this, changes in design is the most important source of wastage in construction process.
- Material problems: availability of material is one of the problems faced in the construction industry (Myers, 2016). A huge amount of materials is wasted in the process of construction. It has been found out that 10% of the raw materials used in the field is wasted for some or the other purpose.
- Increase in material cost: if the construction process is increased, the raw materials might remain of the same rate or the market price of the materials might increase (Yeom, Seo & Kim, (2018). The increase in the price of raw materials would increase in the cost invested in the particular project.
- Irregular labors: in order to carry out the construction process, the project needs a group of labors. These labors have their individual roles in the project (Dind, Lufkin & Rey, 2017). The absenteeism of the labors affects the project as well and increases the time consumed in completing it. Either the task of the absent labor stays undone or it is done by the remaining labors.
- Technological problems: the traditional process was labor-intensive in nature. As a result, the usage of machinery as well as plant had been used more in the manufactured compared to the construction industry (Degens, 2016). The modern construction process and the shorter deadline of project deliveries have made it necessary to use equipments.
- Ineffective communication: During the process of construction, the communication among the stakeholders has to be clear (Hannoudi, Lauring & Christensen, 2016). Most of the times the stakeholders don not cooperate. This leaves loophole in the process. The loopholes results in increasing the construction process and the cost incurred in the process.
- Impatient owners: most of the time, the owners need the project to be completed as soon as possible. This creates a pressure on the labors, which make them work in a hurry and as a result the chances of error in between the project increases (Hardin & McCool, 2015). The error in the project would break the trust of the owner on the construction company and result in a spoilt brand image.
- Identification of risks: identification of risks in one of the most important challenge for the construction company because it might spoil the entire project (Presas, 2017). If the possible risks are identified before the project has been started or when the project has just started, it becomes easier for the company to carry out the project. If the risks are identified after the project has almost completed or half completed, the project becomes more complex (Presas, 2017). The project might fail and the office constructed might have various issues.
2.2 Synthesis
From the details critical analysis it has been synthesized that, in order to accommodate the clients most of the construction projects are being phased. There are different reasons for which the phases are sequentially followed by the project managers and other project managers. During the construction of a building within a single, logical phase with a smooth progression from each of the project design phase through construction has almost become a more effective as well as efficient and less expensive (Brito & Ferreira, 2015). In order to divide the work pressure based on skills and knowledge the project should be subdivided among the project team members (Alias, Zawawi, Yusof & Aris, 2014). If the allotted jb roles are successfully done by each f the project team members then within estimated time the project manager will be able to deliver the expected outcome to the project owner.
Principles of Project Formulation and Management
Before the initiation of the project several principles are to be considered. These principles are as follows
- Be clear: prior to the initiation of project, the aim and objective of the project should be clear to every stakeholder of the project (Smith, 2014). The focus of the project should be clear to the coordinators, sub coordinators and labors. Miss communication should not be encouraged among the stakeholders. This might result in failing the project (Smith, 2014). Once the focus is clear, the members can prioritize the activities and as a result, it would increase the success factor.
- Planning: proper planning is the most important part of a project. Before a project is initiated, the team members should carry out a proper planning (Zhang, Pirzadeh & Lingard, 2018). Everyone should agree to the planning.
- Positive attitude: a positive attitude is very important for the project to succeed (Zuo, Xia & Chen, 2016). The two main parts of this are maintaining a positive relationship has two parts first being, maintaining a good relation with people related to the project.
- Communication: communication should be maintained among the project members. All the members should be interacting among each other (Guanxian, Jun & Lingjie, 2015). The two parts of communication include coordinating the project activities and keeping the stakeholders informed about the activities.
- Timing is everything: the project should be started within a specific time period. If the project id completed before its deadline, labors can be provided with bonus. This encourages them and increases their loyalty towards the company. if the time consumed exceeds the expected time, the tea might amend the documents and add some time to it.
- Sustainability: the project must be sustainable enough. Though the construction industry emits a large amount of carbon dioxide and many other waste materials, the project should take measures to control them.
- Materials: the materials used in the project should be pure so that it does not cause any problem further.
2.4.1 Project plan
During the construction of the technology based building this is necessary for the project and the project team members to consider all necessary principle and components accordingly. During the execution of this specific project proper processes for controlling the project and keeping all records are referred to as indispensible tools for the managers and all other participants involved in the process of construction (de Carvalho et al., 2015). In order to avoid problems related to financial transaction and recording will be completely resolved if the project manager play his or her allotted job role within estimated time period. It is the role of the project manager to analyze the project planning sub phases accurately within estimated timeline. For this project, the planning detail is elaborated below:
Activities |
Duration |
Pre construction planning |
30 |
Preparation of a construction drawing |
10 |
Permission for foundation (G4 level) |
10 |
Permission for the full building |
5 |
3D blueprint presentation of the office building |
5 |
Procurement phase |
15 |
Subcontractor biding with interview |
6 |
Approval and recommendation for the subcontractors |
4 |
Other raw material procurement (hardware and software) |
5 |
Construction phase |
200 |
Notice to proceed |
10 |
Install solider plan |
10 |
Concrete footing |
10 |
Slab concrete |
30 |
Concrete wall |
30 |
Mechanical and electrical installation |
30 |
Painting, traffic coating and marking |
20 |
Interior outlining |
30 |
Installation of cameras erect fence and other security specification |
5 |
Building department division |
5 |
Fulfillment of the construction |
5 |
Installation of all technical support to the office building |
5 |
Closure phase |
10 |
Project team sing off |
3 |
Contract signoff |
3 |
Completion of construction of the building |
4 |
For the construction project manager effective leadership skill is very much essential as they over the roles of the subcontractors and workers. They must possess critical analytical skills because they are responsible to design strategic management plan and problem solving activities during the project development and evaluation time period (Fleming & Koppelman, 2016). For the construction project manager another important role is taking necessary initiatives. In order to secure new clients and to increase the market competitiveness their initiatives are very much crucial (Harrison & Lock, 2017). They should have proper decision making abilities. In addition to this, it is the role of the supervisor to show their excellent skill while hiring project team members for the successful accomplishment of the building construction project within estimated time phase.
Apart from this, the project managers also require to have unique technical skills along with industry process ideas and blueprint evaluation. As the project is about “Design and construction of Office Complex for the School of Environmental Design Technology” thus, it is the role of the project manager to design the complex outline considering all security aspects. They should have professional leadership and motivation power so that they can motivate the rest of the associate project team members (Jalal & Koosha, 2015). Again they must specifically follow the construction safety codes and ensuring the safety of the building labors and other associates also. Proven quality raw materials are also needed to construct the office complex (Hughes, Champion & Murdoch, 2015). Therefore, in order to design the office building complex they should evaluate the design blueprint successfully before starting the construction.
Project Planning and Phasing
It is the role of the construction project manager to design the office complex in such a way so that it called be highlighted as the most connected and sustainable office building allover Australia (Kerzner & Kerzner, 2017). Though for designing this building complex different issues or problems has been faced those are different from other construction level projects.
The main issue associated to this project is lack of proper technical support. As the project is based on “Design and construction of an Office Complex for the School of Environmental Design Technology” thus, technical support is one of the most crucial components for this. Again the associates of the project should have proper knowledge and skills regarding the technical application (Mir & Pinnington, 2014). However, not everyone but some of the project team members are not having clear vision regarding the proper application of technology. This was a serious issue which interrupted the success of the project. On the other hand, another office construction project has faced issues on improper preparation of project budget. Due to incorrect estimation of budget, some of the planned technical specifications are not incorporated to the construction project (Mok, Shen & Yang, 2015). In order to avoid such issues this is the role of the project manager to design a project feasibility mode at the project initiation phase. Apart from this, another aspect must be analyzed is clear investigation on all the financial constraints.
The location chosen for the project is in outskirts area thus logistic was another major issue faced by the project manager and the project team members associated to this project (Oakland & Marosszeky, 2017). This risk involves equipment availability like labors, fuel, spare parts etc. Due to its location it was difficult to move these equipments to the construction location. In order to avoid this kind of logistic level issues it is necessary for the project manager to address the issues at the project initiation phase. In order to deign n error free office complex for Environmental Design Technology the project manager is required to focus on the logistics aspects (Ogunde et al., 2017). Another construction project of Sydney super market in Australia has faced serious level managerial challenge. It is the role of the project manager to subdivide the roles among the team members to make sure that within the estimated time phase the project is being completed successfully.
Roles and Skills of Construction Project Manager
Most of the construction project faces another issue which is environmental risks such as natural disaster such as weather, seasonal implications etc. The natural environments are always different from each other. A common weather risk management list should be prepared by the project manager at the project initiation phase to make sure that the natural risks can be avoided in some scale (Sears et al., 2015). The regional whether patter must be considered to avoid all the environmental risks. Another school building construction project of New South Wales has faced socio political risks.
2.6.1 Overview
The ABC Commercial construction company is a well known construction company of Australia which is hired by the office complex owners for designing the complex. It is the role of the construction project manager and the project team members to design the office complex following all factors so that all issues can be measurably avoided. The company has successfully previously operated in Australia and for this complex also it is expected that the construction company will operate effectively (Turner, 2016). The objectives, market structure, services, financial consideration for this specific project are also elaborated in this project. With the successful financial structure the gross margin, sales and net profit can be obtained by the finance manager and project manager. Based on the net profit margin the changes for this specific project can also be requested by the construction project manager and other project associates.
- To improve the profit margin and enhance the local market share including significant commercial expansion
- To design a well structured and technology focused office complex with all security measures and increase the market share
- To begin the service in terms of School of Environmental Design Technology
The mission of the construction company strives to offer quality interior technical infrastructure to the employees and learners as well including site preparation, cost estimation, construction, repair also. In addition to this, it also odder alteration to the consumers requiring for large scale services in constriction services. After analyzing the detail requirements of the construction project outline it is found that the aim of the construction company is to design a commercial construction industry for the owners.
Nowadays the Australian construction market is booming. For achieving a defendable position in the competitive market field it is necessary to consider the followings:
- To secure around four to five large scale commercial contractors in the coming three years (Borse & Attarde, 2016)
- Enhance the total market expenditure by around 20 percentage
- Expand the learners base by expanding the other geographic areas for retaining a sufficient profit level
After detail analysis of the “Design and construction of Office Complex for the School of Environmental Design Technology” project the services that are expected to be offered by the office complex include the following:
- Building Information Modeling (BIM) is referred to as one of the most widely used mechanism which supports the construction project (Rozali, 2015). Therefore the contractors should follow the 3D printing modeling and BIM to successfully complete the project within estimated time and budget.
- Another service expected from the BIM project is remodeling and alteration
- Permitting and site operation are also expected services to be done by the construction project manager and the team members to design a suitable office complex for the School of Environmental Design Technology (Shen, et al., 2015)
- Other services are carpentry, cement foundation, painting, plumbing etc
- Exterior renovation, utility installation, subcontractor’s assessment and evaluation are the other services must be actively played by the project team
It has been expected that, if these activities are accurately evaluated by the construction project manager and the associate project team members then the project will meet the critical success criteria and objectives those are set at the very initial project development phase.
Technical Aspects of Building Design and Construction
The business growth over the past three to four years has become around 9% in average and this is expected to be completed. This constitutes very attractive market for the commercial contractors. The construction project manager is focused on the consumer’s behaviors that are demand of the employee simultaneously. They are also responsible to provide as well constructed network outline within the office complex so that it can gain effective technical support throughout (Todorovi?, et al., 2015). The other services those are going to be offered by the construction company are special facilities segments and restaurants. For different divisional construction the constriction project manager will focus on different construction mechanism. Sometimes general and sometimes specific facility construction mechanism are being followed by the manager and other team members to successfully completing the office complex.
As it is determined that, building constriction gets the highest priority to gain an average of profit margin. As the office complex is designing for School of Environmental Design Technology, thus, the most important component on which they should focus is its infrastructure (Walker, 2016). Strict accounting and supply management should be followed for accomplishing the project.
- Time to time the job site must be supervised by the constructor project supervisor
- Proper quality control by developing the building with quality raw materials
- Proper scheduling for the subcontractors and timely material delivery
- Verification of the work done
- Insuring that all the works are being done according to the construction guidelines
The details of the cost structure that has been estimated for “Design and construction of Office Complex for the School of Environmental Design Technology” project is divided below:
Estimated cost |
% considered |
Cost/ SF |
Cost |
Net cost |
$119.40 |
$2388,000 |
|
Fees estimated for the contractors |
25% |
$29.85 |
$597,000 |
Interior and design cost |
7% |
$10.45 |
$209,000 |
Total |
|
$159.70 |
$3,194,000 |
Open shop cost |
% considered |
Cost/ SF |
Cost |
Net |
$110,38 |
$2207,500 |
|
Fees estimated for the contractors |
25% |
$27.59 |
$551,900 |
Architecture fees |
7% |
$9.66 |
$193,200 |
Total building budget |
|
$147.63 |
$2,952,500 |
Conclusion
From the overall discussion it can be concluded that in order to design and construction of an office for environmental design technology this is necessary for the construction project team members to consider al basic project development principles. If any of the principle is being neglected by then the entire project may lead towards failure. Smart technically supported building design can deliver flexible and comfortable occupants so that the energy can be consumed accordingly. If the 3D building construction level guidelines are followed by the constructors then the project will definitely deliver a successful design outline to the employee. As much supporting working environment the designers will be able to provide that much the rate of productivity will increase accordingly. The complete business planning is illustrated here considering operational and functional components. For this project the issues that are occurred with the issues of other constriction project of similar type are also illustrated in this report. Moreover, it can be said that cost effective and sustainable design outline will definitely provide a successful standard building to the employees who are working for the office building and the students or learners who will come for successfully completing the learning course on their desired subjects.
Conclusion
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