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View-on- Project- Management- Consultants

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					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..

				
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posted:11/16/2012
language:English
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