Created On: 26th July 2012 Revision: 0 Management consulting is the practice of helping organizations to improve their performance, primarily through the analysis of existing organizational problems and development of plans for improvement. Organizations may draw upon the services of management consultants for a number of reasons, including gaining external (and presumably objective) advice and access to the consultants' specialized expertise. As a result of their exposure to and relationships with numerous organizations, consulting firms are also said to be aware of industry "best practices", although the transferability of such practices from one organization to another may be limited by the specific nature of situation under consideration. Consultancies may also provide organizational change management assistance, development of coaching skills, technology implementation, strategy development, or operational improvement services. Management consultants often bring their own proprietary methodologies or frameworks to guide the identification of problems, and to serve as the basis for recommendations for more effective or efficient ways of performing work tasks. CLIENT PMC 1. PROJECT HEAD 1. MANAGER CIVIL 2. MANAGER CIVIL 2. MANAGER MEP 3. MANAGER MEP 4. CIVIL ENGINEER (2) 5. ELECTRICAL ENGINEER 6. MECHANICAL ENGINEER 7. BILLING ENGINEER 8. ADMIN 9. MISC. SUPPORT FROM H.O (PLANING,QC,QA,ETC We doesn’t have to create an We will still have to create a extensive project team for the minimal team to oversee all the duration of project. activity. Our ‘s involvement in day to day activity management & hassles We will have to keep check on PMC of project can be limited when a working to prevent collusion PMC is appointed. between PMC & contractors, at intervals through our team. PMC will be the single point of If PMC fails to deliver or under contact for all project related perform then chances of the entire activities & will hold the primary project suffering will be high. responsibility of delivery of project. PMC will be only as good as the PMC brings with it a lot of team it deputes for the project professional experience & data irrespective of it brand name in bank, ( a knowledge base) market. CVs of main personnel Apart from the team assigned, shall be submitted for our there will others in the PMC approval before appointing organization who can always give inputs, if need arises. PMC usually works in well established system where in they have forms & formats for all activities, which will ensure transparency from any audit Care shall be taken to make sure point of view. these are implemented & this In the case of any particular team system shall not lead to delays. member on leave or leaving the organization, replacements are easy for PMC to arrange. This clause shall be mentioned & The differential in cost of PMC vs. Our strictly implemented so that the own team can be further brought down * continuity of project doesn’t suffer. Our current scenario, many of the The cost involved for PMC will be scopes usually assigned to a PMC is higher. The differential being in the incorporated in the main Architects tune of about Rs 1 .5 Cr. scope. (Design coordination PMC shall be briefed and all the amongst various consultants, Bill Pre Construction documents be certification, extra item certification, shared with them so that they Bid evaluation, Virtual completion are aware of it and doesn’t wash certificate etc) their hands off. In Pre Construction stage, a PMC responsibility is limited to Scheduling of meetings, conducting design coordination meetings with all involved, preparing agenda, Minutes, and review of drawings, DBR etc. which can be done by ourselves & architects. Assuming 3 Lakh SqFt of BuA: Estimated Budget @ Rs 3000 per SqFt = Rs 90 Cr. Usually a PMC charges 3 – 4% of Total Budget as its fees, taking 3% , PMC fee = Rs 3Cr. With the reduced scope ( not including pre construction, only construction management for a duration of say 24 months, not including items which is already in architect’s scope) we can aim @ 1.5 -2% as the PMC fee = Rs 1.35 Cr If We create our own project team calculation is as below, a total of minimum Rs 1.34Cr. Considering bare minimum team. Approx Cost Total Cost Designation Duration per month for Project Manager Civil Rs 80,000 X 1 24 months Rs 19.20 Lakhs Civil / Finishes Rs 30,000 X 2 20 months Rs 12.00 Lakhs supervisor MEP Head Rs 90,000 X 1 24 months Rs 21.60 Lakhs MEP Engineers Rs 60,000 X 2 20 months Rs 24.00 Lakhs Planning & QS Rs 70,000 X 1 24 months Rs 16.80 Lakhs Document Controller Rs 20,000 X 1 24 months Rs 4.80 Lakhs PROJECT Rs 1,50,000 X 1 24 months Rs 36.00 Lakhs HEAD(Design Coordination, contracts /commercial / liaison, overall in charge) SNO. CONCLUSION COMMENT 1. COST IS ALMOST NULLIFIED 2. THIRD PARTY INVOLVEMENT IMPARTITAL AGENCY 3. PROFFESINALLY EXPERTS THEIR EXPERIENCE CAN AVOID PITFALLS 4. EASY TO HIRE & FIRE 5. NEW SKILLS NATIONAL & INTERNATIONAL METHODOLOGIES 6. BETTER COORDINATION 7. REAL TIME PROJECT INFORMATION 8. GET RID OF HR ISSUES EMPLOYEE ENGAGEMENT Since time being the essence of the project, keeping the above views, we recommend appointing a PMC for Construction stage of buildings only. Hence we can reduce the fee of PMC as the scope will be reduced. The cost offset of PMC fees against our own team cost shall considerably nullified by the professional inputs & working methods of PMC and the effective cost & time saved by their approach. Vendor appointments etc shall be in presence of owner representative & check list shall be in place for maintaining transparency. Vendor list shall also be approved by us. PMC & We should create a conductive environment of trust for smooth working and completion of work..