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MGMT5660
Applied Project Management
Team Assignment
Eco-House Project Management Plan
Group 5
Matthew Mackay (20933557)
Hiral Gadhiya (22327094)
Yihang Dou (22302506)
William Widjaja (22454295)
UWA Business School
17/05/2019
1
Contents
1. Description of the Project ......................................................................................................2
1.1 Overview..........................................................................................................................2
1.2 Business Objectives..........................................................................................................2
1.3 Overview of the Scope and Technical Methodology.......................................................3
1.4 Assumptions.....................................................................................................................4
2.0 Project Scope .......................................................................................................................5
2.1 Requirements Matrix........................................................................................................5
2.2 Project Deliverables .........................................................................................................6
2.3 Work-Breakdown Structure (WBS).................................................................................7
2.4 Scope Control...................................................................................................................8
3. Schedule overview.................................................................................................................8
3.1 Scheduling........................................................................................................................8
3.2 Milestones ........................................................................................................................9
3.3 Activities ..........................................................................................................................9
3.4 Dependencies and project plan.......................................................................................12
3.5 Monitoring Schedule......................................................................................................13
3.6 Assumptions...................................................................................................................13
4. Project Budget......................................................................................................................14
4.1 Method of cost estimation..............................................................................................14
4.2 Budget breakdown..........................................................................................................15
4.3 Cost control ....................................................................................................................16
4.3.1 Indicators of cost control in Eco-House project......................................................16
4.3.2 The matters of cost control......................................................................................17
5. References............................................................................................................................18
6. Appendices...........................................................................................................................19
1. WBS (screen shots of MS Project 2016):.........................................................................19
2. Network diagram:.............................................................................................................24
3. Critical path in Gantt Chart:.............................................................................................26
4. Gantt Chart:...................................................................................................................27
2
1. Description of the Project
1.1 Overview
The development and construction of buildings has great benefits to our society, however
significant environmental and health impacts come with it. The Eco-House project is the
construction of an environmentally friendly, resource-efficient house for the existence of the
buildingā€™s lifecycle. Our role in the project it to design, plan, facilitate and manage the
construction of the house from beginning to end to enhance efficiency, reduce environmental
degradation and create a healthy living environment. This is our organisationā€™s first Eco-
House project; thus, we will be using our classical house construction expertise, alongside the
contemporary energy efficient technology and sustainable materials to manage the
construction of the house. The house is being constructed for the project sponsor, Mr X, who
will be the house-owner once the project is closed out.
1.2 Business Objectives
The construction of buildings on a global level have been constantly changing due to modern
technology and advancements. The Eco-House project is designed to create an energy-
efficient house in response to ever-increasing energy consumptions, particularly in Australia.
This low-impacting house will be designed and constructed using green, sustainable materials
and modern technology to reduce carbon emissions, long-term self-sustainability, and
negative health outcomes.
The objectives of the Eco-House project are to reduce the overall impact on the environment,
human health and maximise economic performance. This can be implemented into housing at
any stage of its lifecycle, either as part of its design and construction, or renovation of an
existing building. For the Eco-House, these designs will be integrated into the project from
the beginning of the houseā€™s lifecycle, implementing the design and technology into its
foundations, which will maximise the efficiency to gain optimal significant benefits.
They key objectives from the project are as follows:
ā€¢ Environmental benefits: improve air/water quality, water efficiency, energy savings,
reduce waste costs, and conserve and restore natural resources.
ā€¢ Economic benefits: reduce operating costs, material efficiency, and expand a market
for green products and services.
ā€¢ Social benefits: enhance comfort and health and improve overall quality of life.
3
Due to an ongoing increase in energy consumption in Perth, our goal is to manage a self-
sufficient house to primarily support the environment and the living conditions of our client.
Not only will the house self-sustain itself, but any excess energy will be given back to the
local community. Our strategic rationale for this project, is to create a construction market for
eco-friendly housing, and to progress to larger scaled buildings. Innovation is a strong value
within our company, and this is a step to delve into this market. Not only are we supporting
the environment, but also promoting an environmentally friendly way of construction for
other organisations to follow.
1.3 Overview of the Scope and Technical Methodology
The requirement for this project is to design, plan, facilitate and manage the construction of
an Eco-House in response to high energy demands of todayā€™s society. The project will be
done in a manner similar to a typical construction project, albeit with energy-efficient
modifications, down to the details of the materials used to build the foundation and
framework of the house. The project will be constructed in a small suburb in the outer-
residential areas of Perth, from an empty block of land to a completely built house ready for
living conditions.
The primary criteria for achieving an efficient eco-house is through energy efficiency,
material efficiency, and water efficiency:
ā€¢ Energy efficiency will be achieved through renewable energy sources, such as solar
power, wind power, biomass, and heat water pumps.
ā€¢ Material efficiency will be achieved through renewable, recycled and re-used
materials that have long-term sustainability and durability.
ā€¢ Water efficiency will be achieved through rainwater collectors, recycling of
greywater, and less water-consuming landscaping.
The type of project delivery method for the Eco-House project being used is ā€˜Construction
Manager at Riskā€™ (CMAR). Client X has selected us as the construction manager, and
ultimately responsible for building the house, due to costs, quality project approach and
ability to meet the project schedule (Construction Project Delivery Methods, 2014). As the
CMAR, we will provide professional services and act as the consultant to the client
throughout the project phases, providing input on project budget, cost estimates and schedule.
Costs of construction begins during the design process and refined to a guaranteed maximum
price (GMP) provided to the owner prior to the construction of the project (Construction
Project Delivery Methods, 2014). This is where the actual project costs for contractors and
4
materials are passed through to the client, and we charge a fixed fee on top of that amount
(Construction Project Delivery Methods, 2014). This will look to develop and maintain a
strong collaborative relationship between the CMAR and client to yield positive results.
The project will follow a generic predictive, plan-driven project life cycle model that has
been outlined by PMBOK (Project Management Institute, 2017). The model we will be
following is as follows:
Figure 1 Plan Driven Project life cycle model (PMBOK)
During the selection and initiation phase with key stakeholders, there was agreement on
needs which were approved with the finalisation of the project charter document. This is
where we shape the necessary business case for beginning the project. Planning is the
process for our scope development, project plan created, and baseline created before we
implement it. The plan involves cost management, scheduling, quality management, and
resource management. Due to our knowledge in the construction industry, we can accurately
define the time and cost of the project at the beginning during the planning phase. Execution
is where we begin to put our plan into action and deliver the project outputs. This begins from
building the foundations of the house to its end product at completion of all activities. During
the project execution phase, the deliverables are produced and delivered. Once the project
activities are finalised, the paperwork and approvals for completing the project are
completed, which help to close out the project. Once the client is satisfied with the end
product of the project, we can measure the benefits of the outputs on a quarterly basis.
Throughout the project life cycle, monitoring and control will occur from the initiation phase
until the finalisation of the project. This will allow for progressive measurements of the
project to see whether each phase and activities are going to plan from the start and objectives
are being met.
1.4 Assumptions
ā€¢ All approvals have been granted.
ā€¢ All funding has been approved and the budget will not be withdrawn.
5
ā€¢ Client owns the land where house will be constructed.
ā€¢ Contractors will have readily available equipment for jobs.
ā€¢ Materials to complete activities will be readily available to be utilised.
ā€¢ Specification of materials adequate for work activities.
ā€¢ Technical building components will be effectively implemented by contractors.
ā€¢ Contractors have adequate qualifications for their job.
ā€¢ Management and contractors compliant with health and safety regulations
2.0 Project Scope
Before the relevant tasks are delegated and allocated to execute the project, the scope has to
firstly be defined. The project scope outlines the objectives of the project as well as the goals
that are needed to be achieved. The scope provides the foundation for project managers to
manage scope change and project risk. In this section, the deliverables, requirements matrix,
work-breakdown structure (WBS), and scope control will be defined.
2.1 Requirements Matrix
Requirements Matrix or Requirements Traceability Matrix (RTM), is a tool that ensures that
the scope of the project, requirements and deliverables remains consistent upon comparing to
the scope baseline. The RTM is useful to track project requirements during the project and to
check whether they are met during any phase of the project. They assist in the creation of
project plan tasks and project deliverable documents. The RTM should be devised at the start
of the project as it forms the foundation of the projectā€™s scope. In the RTM, the business needs
as well as their corresponding requirements, which is the critical components that fulfil the
business need, must be stated concisely. The business need refers to the objective or problems
that project managers need to solve or fulfil.
For this project, most of the business needs are related to the construction of the house. Most
of the requirements consist of building specific components of the house, including the energy
saving components and components of an ordinary house. The relevant stakeholders that are
involved in each requirement will also be listed.
PM ā€“ Project Managers
O ā€“ Client/Owner
C ā€“ Contractors
G ā€“ Government
6
Business Need Requirements Stakeholder(s)
Plot of Land Inspection of Property PM, O, C
Measurements of Property C
Levelling the ground/soil
Design of Eco
house
Approval of Project PM, O, G
Exterior design of the house O, C
Interior design of the house
Blueprint of the water & waste system C
Approval of design PM, O, C
Building the
House
Builder's warranty & home indemnity insurance PM, O, C
Material Assessment C
Building the foundation
Building the Frame
Building the Exterior
Building the Interior
Installation of roof
Installation of
Energy Saving
Components
Approvals of water & waste system blueprint PM, G
Carpentry & Plumbing C
Electrician & HVAC
Installing the water system
Installing the waste system
Installing solar panels
Quality Check Testing of Energy saving components PM, C
Table 1: Requirements Matrix
2.2 Project Deliverables
A deliverable refers to any product or result that must be produced to complete a phase in the
project. Project deliverables go hand in hand with project requirements. However, unlike
requirements, project deliverables do not typically change once they are decided at the start of
the project. Some deliverables are required for other deliverables to be produced. For example,
7
the floor plan of the house cannot be finalized before the dimensions of the intended house is
measured and documented. Most of the deliverables of the Eco house project are almost
identical to the deliverables of an ordinary house. This includes design drawings of the house
and the necessary documents to carry out the construction project.
PM ā€“ Project Managers
C ā€“ Contractors
A ā€“ Architects
Deliverables Description Owner
Project Proposal Identifying the Milestones & Timeline PM
Construction &
Landscaping Plan The draft for the house for overall layout of the house A
Design Drawings Interior and exterior design of the house A
Design Documents Textual details of the interior and exterior design A, C
Water Systems Blueprint Design of the customised waste & waste systems C
Approval Documents Necessary documents to execute the project PM
Cable Infrastructure
Blueprint
Cable management of the house for electrical sockets
(underground) C
Site Investigation Report Documents made after surveying the site PM, C
Design Reviews Revisions of designs made during the project A, C
Progress Reports Documents detailing the progress of the project C
Eco house The finished build of the house PM, C
Table 2: Project Deliverables
2.3 Work-Breakdown Structure (WBS)
The work is divided into smallest work packages along with the milestones at certain phase.
The work breakdown structure is divided as per the project lifecycle: Initiation, Planning,
Execution and Finalising. MS Project 2016 is used to create WBS. Please refer appendix 1
for detailed WBS
8
2.4 Scope Control
Scope control is the process of monitoring the progress of the project and predicting and
managing potential changes to the scope baseline that might happen along the course of the
project. This means even after the scope is finalized during the initiation phase, it still needs to
be monitored regularly to ensure that deliverables are delivered successfully. It should be noted
that changing the scope mid project can potentially hinder the progress of the project
significantly.
To minimize this, when a change of scope is proposed, the requests will be thoroughly assessed
by the relevant stakeholders before implementing any scope changes. Upon approval, a process
called variance analysis must be conducted to assess the impact of the change, which is main
changes on schedule and cost of the project. This impact must be documented in detail before
implementation. The scope baseline will then be updated according to the analysis and the old
baseline will be rendered obsolete. For this project, a possible change of scope would be
switching to different construction materials. The project managers will have to work together
with contractors that are involved with handling materials to assess the effect if they decide to
execute the switch. To ensure that this project will be successful, control procedures have to be
made in order to manage scope changes.
Summary of the Scope Management Process:
3. Schedule overview
The project is estimated to take approximately 341 working days starting from 26th
March
2019 to 15th
February 2020. This includes roughly 99 days for planning and documentation
followed by construction activities which takes majority of the time frame. Approximately 30
days will be taken for finishing and finalising.
The primary schedule is made in MS Project which can be modified or altered at any point of
time during the project duration as per the convenience. The estimated start and end date of
the schedule are assigned to every activity along with duration in MS Project.
3.1 Scheduling
Scheduling comprises of two main categories:
9
3.2 Milestones
Milestones are set are every phase where major activities are finishing in order to keep track
of the schedule as well as making sure that project stays within scope. As the project has
certain tasks (like designing and installing inbuilt water treatment plant, etc.) which tend to
alter the scope, milestones will help to identify the status of the project and the remaining
activities. The major milestones in the project are:
1. Finalising scope
2. Approval of the scope and confirmed design
3. Completion of earth work and concreting
4. Completion of the framework and roof
5. Installing the special components of the building and finalising work
3.3 Activities
From the detailed list of the activities discussed above (Section 2.3) in the work breakdown
structure, schedule of the major activities is shown in table 3.Major resources assigned to
these activities are shown in the table 4:
WBS
Work Breakdown
Structure
PM Project Managers
O Client/Owner
Schedule
Planning
Defining
Activites
Sequece of
the activities
(logical
flow)
Assigning
resources
Determining
the duration
of the
activities
Monitoring
Schedule
Schedule
Control
10
G Government Departments
A Architect
ER. Engineer
S.ER Site Engineer
C Contractor
CM Construction Manager
CL Construction Labourer
PCE Pest Control Expert
CR Carpenter
D Designer
EL Electrician
L Labourer
PL Plumber
LC Landscaper
Table 3 Major Resources and abbreviation used for them
The table also contains the work breakdown structure code for the ease of understanding.
Each activity is assigned alphabetical letter as the code which is used to arrange the activities
in the sequence of their expected occurrence.
Sr.
No.
Life
cycle
Activities Code Predecessor
Duration
(days)
WBS
Code
Resources
1
Initiation
Defining scope A 7 1.1.1.2 PM, O
2 Approvals from authorities B A 10 1.1.2 G
3
Getting builder's
warranty/insurance
C A 6 1.1.4 G
4 Quoting fees D A, B 6 1.1.6 PM
5
Planning
Designing house E D 21 1.2.1 A, ER.
6
Estimating costs based on
the design
F E 7 1.2.2 CM
7 Risk analysis G E 10 1.2.3 PM
8 Site soil condition check H E 3 1.2.4 S. ER, C
9
Procurement of the
material/equipment
I F 30 1.2.5 PM
10
Hiring equipment quoting
green materials and their
specifications
J I 20
1.2.6,
1.2.7
PM
11
11
Execution
Construction site layout K J 6 1.3.1 C, CL
12
demolition/removal of
existing shrubs, trees,
stones, etc.
L K 5 1.3.2.1 C, CL
13
excavate foundation
M L 3
1.3.2.2
S.ER,
C,CL
excavate for water treatment
plant
1.3.2.3
S.ER,
C,CL
excavate for bio compost
tank
1.3.2.4
S.ER,
C,CL
14 Trenchwork N M 2 1.3.2.5 CL
15
Pest/Termite treatment- pre
slab
O N 3 1.3.3 PCE
16
concrete casting-foundation
P O 1
1.3.4.2
S.ER,
C,CL
concrete casting-water
treatment plant
1.3.4.3
S.ER,
C,CL
concrete casting-compost
tank
1.3.4.4
S.ER,
C,CL
17 14-day curing Q P 14 1.3.4.5 CL
18 ground slab casting R Q 1 1.3.4.6
S.ER,
C,CL
19 14-day curing S R 14 1.3.4.7 CL
20
Pest/Termite treatment- post
slab
T S 3 1.3.7 PCE
21 building retaining walls U T 5 1.3.5 C, CL
22 backfilling V U 1 1.3.6 C, CL
23 Framework W V 6.5 1.3.9 C, CL
24 Door/window allocation X W 10 1.3.10 C, CL
25
installing wooden panels in
doors and windows
AI X 4 1.3.10.2 CR
26 erecting roof Y X 24 1.3.4
S.ER,
C,CL
27
Installing special building
components
Z Y 30 1.3.12
S.ER,
C,CL, D
28 Carpentry AA Z 10 1.3.14 CR, C
29 Electrician AB Z 32.5 1.3.15 C, EL
30 HVAC AC AB 20.5 1.3.16 C, L
31 Plumbing AD Y, Z 35.5 1.3.17 C,PL
32 Landscaping AE AD 5 1.3.18 C, LC
33 Mechanical fittings AF AD 5 1.3.19 C, L
34 Insulation AG AB 7 1.3.20 C, EL, PL
12
35
Finishing
Finishing and finalising AH
AA, AE,
AF, AG, AC
30
1.3.21,
1.4
C, PM, O
Table 4 List of activities and their sequence
3.4 Dependencies and project plan
From the activity order and the network diagram the relationship between the activities can
be established into four main types of dependencies.
1. Finish to Start:
2. Start to Start:
3. Finish to Finish:
4. Start to Finish:
Amongst all the dependencies, ā€˜finish to startā€™ dependency is most commonly used in this
project. Here, more task dependencies are created when project is auto scheduled in MS
Project. However, dependencies are created on the basis of logic, resource availability and
cash flow in the project. Knowing the dependencies will give chance to alter the tasks as per
the requirement and adjusting the project duration.
The dependencies of all the activities can be as per table 4 which on converting into network
diagram gives us critical path- The longest path of the project or the path with maximum
duration and resources. The simplified critical path diagram as shown in appendix 2 is
formed by Two pass method with AON diagram. The equations used to calculate the duration
of the project are:
Early Start+ Duration of the activity= Early Finish
Late Finish ā€“ Duration of the activity= Late Start
Float can be calculated as Early Start- Late Finish= Float
The activities with zero Float are critical activities which can be observed in the network
diagram in appendix 2. Note that the network diagram created by Two pass method and by
MS Project has some difference in the project duration due to the complexity of the
dependencies which was minimised for two pass method. Some of the activities like C, H, G,
etc. which are dangling (disconnected from the network diagram) may also cause the
difference in the duration of the project. Logically those activities are correct even though
13
they are disconnected. Also, the Gantt chart with red tasks shows the duration and the tasks
which are critical for the project completion.
3.5 Monitoring Schedule
The most common problem in many projects is scope creep which causes delay in the
execution or add more cost to the project. One of way to prevent that is by actively updating
the schedule with the status of the progress and reporting the delay as soon as possible.
During execution there might be some difference in the occurrence of the activities as per
planning.
Schedule control helps in comparing those changes against the schedule baseline. The project
is measured must be in terms of project duration and cost and the schedule control measure
are taken when the schedule is affected. This can be done in following ways:
ā€¢ Re-estimation of the remaining components of the project
ā€¢ Adjusting future components
ā€¢ Measuring schedule variance and schedule performance index for controlling
ā€¢ Brainstorming the alternatives to shorten the duration of the remaining activities
ā€¢ Measuring Milestones and reporting the changes
3.6 Assumptions
The activities are assigned estimated duration and resources in initial project planning phase.
However, there can be certain changes which affect the cost and duration of the project. This
Factors affecting
schedule of the
project
Project
budget
Cash
Flow
Risk
Availibilty
of the
resources
14
are broadly discussed in Risk Management section of the plan. The schedule accounts for
those risks and effort will be given in order to minimise them as prior as possible.
One other assumption made here is that same worker will be doing multiple jobs which takes
more time to finish the work. It is evident from table 4 that contractor will be the most
important resource for the execution. Therefore, the budget and the equipment hiring can be
done in accordance to the contractor and the activities associated with contractor.
4. Project Budget
4.1 Method of cost estimation
In Eco-House Project, three cost estimating methods are used in different stages of project.
Initiating stage: Analogous estimating.
An estimating technique that uses the values of parameters on a scale, such as scope, cost,
budget, and duration or measures of scale such as size, weight, and complexity from a previous
and similar activity or project as the basis for estimating the same parameter or measure for a
future activity or project respectively. Analogous estimating is based on previous experience
of similar projects and estimatorsā€™ awareness of the difference between proposed project and
previous project. Project estimators will consider about many previous examples of
environment-friendly house building and compare them to Eco House, then provides a rough
estimation of cost for the Eco House at initiation.
Planning stage: Parametric estimating and Bottom-up estimating.
More details will be known after initiating, Parametric estimating can be used at the beginning
of planning stage to determine the impact of key variables on project costs via using statistical
relationship between historical data and other variables, because just a bit more information is
needed to complete a parametric cost estimate as compared to an analogous estimate.
After that, Bottom-up estimating will be applied in Eco House Project at the end of planning
stage in the Eco House project. Bottom-up estimating method is needed to meet the
requirements of each of the lower, more detailed pieces of work, preferably the lowest level of
WBS work elements, and these estimates are then aggregated into a total quantity. The cost
estimates of Eco House should have a small enough margin of error when Bottom-up
estimation is finished, and then can be used to create a project budget, show cash flow needs,
and be used as a basis for controlling the project. Also, the costing accuracy level will be
controlled no more than plus or minus 5 per cent after using bottom-up estimating.
15
4.2 Budget breakdown
The initial costs associated with program income and program expenses. Program income
related some sponsorship and funding from individuals, government or communities. Programs
expenses includes consultants, contracts and materials and salaries of employees assigned to
the project and backfilling if required as related to grant funding.
Program Income Section $
Individual Contributions (sponsor) $250,000
Community Charities $50,000
Government Funding $15,000
Total Program Income $315,000
Table 5: Budget list (A)
Program Expense Section $
Approvals Fees $2,000
Consulting Fees $6,000
Accountant Fees $5,000
Designing Costs $10,000
Engineers $100,000
Contractors $68,000
Equipment Costs $15,000
Raw materials and suppliers $200,000
Project management Fees $90,000
Total Program Expense $496,000
Table 6: Budget List (B)
16
4.3 Cost control
The beginning of cost control from Eco-House is setting a limit for the costs of construction.
It means that every decision project manager make in the course of Eco-House building will
be guided by the limits, and project team have to be creative enough to ensure Eco House is
successfully completed without running past the budget limits.
4.3.1 Indicators of cost control in Eco-House project
KPI (Key Performance Indicator)
KPI tools will be used in controlling cost in the Eco-House construction, the indicators are as
follow:
The Actual Cost: This is the actual cost of the Eco-House project that has been incurred from
the date the project began (26/06/2019) to the current date.
The Cost Variance: The difference between the cost of the project and the baseline that project
team has set.
The Planned Value: The budgeted cost of the work that has been scheduled for the cost.
Basically, it is the cost of the activities that have planned for the Eco-House project so far.
The Earned Value: The cost of the actual work that has been performed in the Eco-House
project from the 26/06/2019 to the current date.
The Return on Investment: The profitability of the project. It can be either positive or negative,
depending on whether the projectā€™s benefits were greater than its costs.
There are various costs that can be measured in the Eco-House project, such as the labour
(engineers and contractors), the cost of materials, the expenses associated with equipment,
approvals, various fixed expenses, miscellaneous expenses, and so on. All of these are pretty
easy to calculate and track. It gets a lot harder to track other costs like administrative costs,
telephone charges, and so on. These are best all categorized under ā€˜miscellaneous costs.
17
4.3.2 The matters of cost control
a) Establishing that all decisions taken during Eco-House design and construction are based
on a forecast of the cost implications of the alternatives being considered, and that no
decisions are taken whose cost implications would cause the total budget to be exceeded.
b) Encouraging the Eco-House project team (particularly project managers) to design within
the cost plan at all stages and follow the variation/change and design development control
procedures for the project. It is generally acknowledged that 80% of cost is determined by
design and 20% by construction. It is important that the project team is aware that no
member of the team has the authority to increase costs on its section or element of the work.
Increased costs on one item must always be balanced by savings on another.
c) Regularly updating and reissuing (once a month) the cost plan and variation orders of Eco-
House causing any alterations the brief.
d) Arranging for the contractors to be given the correct information at the correct time in order
to minimise claims. Any anticipated or expected claims should be reported to the client and
included in the regular cost reports.
e) Checking that the agreed change management process is strictly followed at all stages of
the Eco-House project. The procedure should only be carried out retrospectively, and then
only during the construction phase of the project, when it can be demonstrated that
otherwise significant delay, cost or danger would have been incurred by awaiting
responses.
f) Factor Inflation: Eco-House is a two-year construction program the pricing of the materials
and salaries is not consistent. The inflation rate Australia 2018 is 1.92% and estimating
inflation rate is around 1.90% in 2019 and 2020. Therefore, the extra expenses caused by
light inflation are considered in Eco-House budget management.
g) Account for Emergency: Various nature disasters and man-made mistakes are always going
to be a potential occurrence. Contingency provisions are based on a thorough evaluation of
the risks and are available to pay for events which are unforeseen and unforeseeable.
Emergency account is set in Eco-House project budget in order to prevent the huge loss
that results from the happening of flood, fire, storm, hailstone, strike, changes in the clientā€™s
requirements or variations resulting from errors or omissions.
h) Track cost in real time: This is where KPIs come in handy, it is important to keep close
track of the Eco-House building as it starts. Monitoring software will be used in tracking
all KPIs of Eco-House construction.
18
5. References
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schedule control . New York: M. Dekker.
Byers, S 2019, Scheduling Projects, PowerPoint presentation, MGMT5660: Applied Project
Management, The University of Western Australia. Available from:
http://www.lms.uwa.edu.au. [15 May 2019].
Boyle, T 2017, ā€˜Dangling Logic in Project Schedulesā€™, Tomsblog, blog post, 4 September.
Available from: https://boyleprojectconsulting.com/TomsBlog/2017/09/04/dangling-logic-in-
project-schedules/. [13 May 2019].
Construction Project Delivery Methods. (2014). Archtoolbox: architectā€™s reference, viewed
07 May, 2019, <https://www.archtoolbox.com/project-management/project-
planning/construction-project-delivery-methods.html
Harned, B 2018, How to use milestones in Project Management. Available from:
https://www.teamgantt.com/blog/the-how-and-why-of-using-milestones-in-your-project-plan.
[15 May 2019]
Kloppenberg, TJ 2015, Contemporary Project Management: Organize/Plan/Perform,
4th edn, Cengage Learning, USA.
Kuehn, Ursula 2011, Integrated cost and schedule control in project management . 2nd ed.
Vienna, Virginia: Management Concepts. Available from: Knovel General Engineering &
Project Administration [2 May 2019 ]
Project Management Institute. (2013). A Guide to the Project Management Body of
Knowledge (PMBOK Guide), 6th
ed. Newtown Square, PA, Project Management
19
6. Appendices
1. WBS (screen shots of MS Project 2016):
20
21
22
23
24
2. Network diagram:
25
Legend:
ES EF
A
LS D LF
A- Activity
D- Duration
ES- Early Start
EF- Early Finish
LS- Late Start
LF- Late Finish
Critical Path
Sequence of the
activity
26
3. Critical path in Gantt Chart:
Gantt Chart 1 Critical path of all the major activities (Screenshot taken from MS Project 2016)
27
4. Gantt Chart:
Gantt Chart 2 Gantt chart of all the tasks for the entire project timeframe: 29/03/2019 to 14/02/2020 (Screenshot taken
from MS Project 2016)
28
Figure 2 Legend for Gantt Chart

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Applied Project Management Team Assignment Eco-House Project Management Plan

  • 1. MGMT5660 Applied Project Management Team Assignment Eco-House Project Management Plan Group 5 Matthew Mackay (20933557) Hiral Gadhiya (22327094) Yihang Dou (22302506) William Widjaja (22454295) UWA Business School 17/05/2019
  • 2. 1 Contents 1. Description of the Project ......................................................................................................2 1.1 Overview..........................................................................................................................2 1.2 Business Objectives..........................................................................................................2 1.3 Overview of the Scope and Technical Methodology.......................................................3 1.4 Assumptions.....................................................................................................................4 2.0 Project Scope .......................................................................................................................5 2.1 Requirements Matrix........................................................................................................5 2.2 Project Deliverables .........................................................................................................6 2.3 Work-Breakdown Structure (WBS).................................................................................7 2.4 Scope Control...................................................................................................................8 3. Schedule overview.................................................................................................................8 3.1 Scheduling........................................................................................................................8 3.2 Milestones ........................................................................................................................9 3.3 Activities ..........................................................................................................................9 3.4 Dependencies and project plan.......................................................................................12 3.5 Monitoring Schedule......................................................................................................13 3.6 Assumptions...................................................................................................................13 4. Project Budget......................................................................................................................14 4.1 Method of cost estimation..............................................................................................14 4.2 Budget breakdown..........................................................................................................15 4.3 Cost control ....................................................................................................................16 4.3.1 Indicators of cost control in Eco-House project......................................................16 4.3.2 The matters of cost control......................................................................................17 5. References............................................................................................................................18 6. Appendices...........................................................................................................................19 1. WBS (screen shots of MS Project 2016):.........................................................................19 2. Network diagram:.............................................................................................................24 3. Critical path in Gantt Chart:.............................................................................................26 4. Gantt Chart:...................................................................................................................27
  • 3. 2 1. Description of the Project 1.1 Overview The development and construction of buildings has great benefits to our society, however significant environmental and health impacts come with it. The Eco-House project is the construction of an environmentally friendly, resource-efficient house for the existence of the buildingā€™s lifecycle. Our role in the project it to design, plan, facilitate and manage the construction of the house from beginning to end to enhance efficiency, reduce environmental degradation and create a healthy living environment. This is our organisationā€™s first Eco- House project; thus, we will be using our classical house construction expertise, alongside the contemporary energy efficient technology and sustainable materials to manage the construction of the house. The house is being constructed for the project sponsor, Mr X, who will be the house-owner once the project is closed out. 1.2 Business Objectives The construction of buildings on a global level have been constantly changing due to modern technology and advancements. The Eco-House project is designed to create an energy- efficient house in response to ever-increasing energy consumptions, particularly in Australia. This low-impacting house will be designed and constructed using green, sustainable materials and modern technology to reduce carbon emissions, long-term self-sustainability, and negative health outcomes. The objectives of the Eco-House project are to reduce the overall impact on the environment, human health and maximise economic performance. This can be implemented into housing at any stage of its lifecycle, either as part of its design and construction, or renovation of an existing building. For the Eco-House, these designs will be integrated into the project from the beginning of the houseā€™s lifecycle, implementing the design and technology into its foundations, which will maximise the efficiency to gain optimal significant benefits. They key objectives from the project are as follows: ā€¢ Environmental benefits: improve air/water quality, water efficiency, energy savings, reduce waste costs, and conserve and restore natural resources. ā€¢ Economic benefits: reduce operating costs, material efficiency, and expand a market for green products and services. ā€¢ Social benefits: enhance comfort and health and improve overall quality of life.
  • 4. 3 Due to an ongoing increase in energy consumption in Perth, our goal is to manage a self- sufficient house to primarily support the environment and the living conditions of our client. Not only will the house self-sustain itself, but any excess energy will be given back to the local community. Our strategic rationale for this project, is to create a construction market for eco-friendly housing, and to progress to larger scaled buildings. Innovation is a strong value within our company, and this is a step to delve into this market. Not only are we supporting the environment, but also promoting an environmentally friendly way of construction for other organisations to follow. 1.3 Overview of the Scope and Technical Methodology The requirement for this project is to design, plan, facilitate and manage the construction of an Eco-House in response to high energy demands of todayā€™s society. The project will be done in a manner similar to a typical construction project, albeit with energy-efficient modifications, down to the details of the materials used to build the foundation and framework of the house. The project will be constructed in a small suburb in the outer- residential areas of Perth, from an empty block of land to a completely built house ready for living conditions. The primary criteria for achieving an efficient eco-house is through energy efficiency, material efficiency, and water efficiency: ā€¢ Energy efficiency will be achieved through renewable energy sources, such as solar power, wind power, biomass, and heat water pumps. ā€¢ Material efficiency will be achieved through renewable, recycled and re-used materials that have long-term sustainability and durability. ā€¢ Water efficiency will be achieved through rainwater collectors, recycling of greywater, and less water-consuming landscaping. The type of project delivery method for the Eco-House project being used is ā€˜Construction Manager at Riskā€™ (CMAR). Client X has selected us as the construction manager, and ultimately responsible for building the house, due to costs, quality project approach and ability to meet the project schedule (Construction Project Delivery Methods, 2014). As the CMAR, we will provide professional services and act as the consultant to the client throughout the project phases, providing input on project budget, cost estimates and schedule. Costs of construction begins during the design process and refined to a guaranteed maximum price (GMP) provided to the owner prior to the construction of the project (Construction Project Delivery Methods, 2014). This is where the actual project costs for contractors and
  • 5. 4 materials are passed through to the client, and we charge a fixed fee on top of that amount (Construction Project Delivery Methods, 2014). This will look to develop and maintain a strong collaborative relationship between the CMAR and client to yield positive results. The project will follow a generic predictive, plan-driven project life cycle model that has been outlined by PMBOK (Project Management Institute, 2017). The model we will be following is as follows: Figure 1 Plan Driven Project life cycle model (PMBOK) During the selection and initiation phase with key stakeholders, there was agreement on needs which were approved with the finalisation of the project charter document. This is where we shape the necessary business case for beginning the project. Planning is the process for our scope development, project plan created, and baseline created before we implement it. The plan involves cost management, scheduling, quality management, and resource management. Due to our knowledge in the construction industry, we can accurately define the time and cost of the project at the beginning during the planning phase. Execution is where we begin to put our plan into action and deliver the project outputs. This begins from building the foundations of the house to its end product at completion of all activities. During the project execution phase, the deliverables are produced and delivered. Once the project activities are finalised, the paperwork and approvals for completing the project are completed, which help to close out the project. Once the client is satisfied with the end product of the project, we can measure the benefits of the outputs on a quarterly basis. Throughout the project life cycle, monitoring and control will occur from the initiation phase until the finalisation of the project. This will allow for progressive measurements of the project to see whether each phase and activities are going to plan from the start and objectives are being met. 1.4 Assumptions ā€¢ All approvals have been granted. ā€¢ All funding has been approved and the budget will not be withdrawn.
  • 6. 5 ā€¢ Client owns the land where house will be constructed. ā€¢ Contractors will have readily available equipment for jobs. ā€¢ Materials to complete activities will be readily available to be utilised. ā€¢ Specification of materials adequate for work activities. ā€¢ Technical building components will be effectively implemented by contractors. ā€¢ Contractors have adequate qualifications for their job. ā€¢ Management and contractors compliant with health and safety regulations 2.0 Project Scope Before the relevant tasks are delegated and allocated to execute the project, the scope has to firstly be defined. The project scope outlines the objectives of the project as well as the goals that are needed to be achieved. The scope provides the foundation for project managers to manage scope change and project risk. In this section, the deliverables, requirements matrix, work-breakdown structure (WBS), and scope control will be defined. 2.1 Requirements Matrix Requirements Matrix or Requirements Traceability Matrix (RTM), is a tool that ensures that the scope of the project, requirements and deliverables remains consistent upon comparing to the scope baseline. The RTM is useful to track project requirements during the project and to check whether they are met during any phase of the project. They assist in the creation of project plan tasks and project deliverable documents. The RTM should be devised at the start of the project as it forms the foundation of the projectā€™s scope. In the RTM, the business needs as well as their corresponding requirements, which is the critical components that fulfil the business need, must be stated concisely. The business need refers to the objective or problems that project managers need to solve or fulfil. For this project, most of the business needs are related to the construction of the house. Most of the requirements consist of building specific components of the house, including the energy saving components and components of an ordinary house. The relevant stakeholders that are involved in each requirement will also be listed. PM ā€“ Project Managers O ā€“ Client/Owner C ā€“ Contractors G ā€“ Government
  • 7. 6 Business Need Requirements Stakeholder(s) Plot of Land Inspection of Property PM, O, C Measurements of Property C Levelling the ground/soil Design of Eco house Approval of Project PM, O, G Exterior design of the house O, C Interior design of the house Blueprint of the water & waste system C Approval of design PM, O, C Building the House Builder's warranty & home indemnity insurance PM, O, C Material Assessment C Building the foundation Building the Frame Building the Exterior Building the Interior Installation of roof Installation of Energy Saving Components Approvals of water & waste system blueprint PM, G Carpentry & Plumbing C Electrician & HVAC Installing the water system Installing the waste system Installing solar panels Quality Check Testing of Energy saving components PM, C Table 1: Requirements Matrix 2.2 Project Deliverables A deliverable refers to any product or result that must be produced to complete a phase in the project. Project deliverables go hand in hand with project requirements. However, unlike requirements, project deliverables do not typically change once they are decided at the start of the project. Some deliverables are required for other deliverables to be produced. For example,
  • 8. 7 the floor plan of the house cannot be finalized before the dimensions of the intended house is measured and documented. Most of the deliverables of the Eco house project are almost identical to the deliverables of an ordinary house. This includes design drawings of the house and the necessary documents to carry out the construction project. PM ā€“ Project Managers C ā€“ Contractors A ā€“ Architects Deliverables Description Owner Project Proposal Identifying the Milestones & Timeline PM Construction & Landscaping Plan The draft for the house for overall layout of the house A Design Drawings Interior and exterior design of the house A Design Documents Textual details of the interior and exterior design A, C Water Systems Blueprint Design of the customised waste & waste systems C Approval Documents Necessary documents to execute the project PM Cable Infrastructure Blueprint Cable management of the house for electrical sockets (underground) C Site Investigation Report Documents made after surveying the site PM, C Design Reviews Revisions of designs made during the project A, C Progress Reports Documents detailing the progress of the project C Eco house The finished build of the house PM, C Table 2: Project Deliverables 2.3 Work-Breakdown Structure (WBS) The work is divided into smallest work packages along with the milestones at certain phase. The work breakdown structure is divided as per the project lifecycle: Initiation, Planning, Execution and Finalising. MS Project 2016 is used to create WBS. Please refer appendix 1 for detailed WBS
  • 9. 8 2.4 Scope Control Scope control is the process of monitoring the progress of the project and predicting and managing potential changes to the scope baseline that might happen along the course of the project. This means even after the scope is finalized during the initiation phase, it still needs to be monitored regularly to ensure that deliverables are delivered successfully. It should be noted that changing the scope mid project can potentially hinder the progress of the project significantly. To minimize this, when a change of scope is proposed, the requests will be thoroughly assessed by the relevant stakeholders before implementing any scope changes. Upon approval, a process called variance analysis must be conducted to assess the impact of the change, which is main changes on schedule and cost of the project. This impact must be documented in detail before implementation. The scope baseline will then be updated according to the analysis and the old baseline will be rendered obsolete. For this project, a possible change of scope would be switching to different construction materials. The project managers will have to work together with contractors that are involved with handling materials to assess the effect if they decide to execute the switch. To ensure that this project will be successful, control procedures have to be made in order to manage scope changes. Summary of the Scope Management Process: 3. Schedule overview The project is estimated to take approximately 341 working days starting from 26th March 2019 to 15th February 2020. This includes roughly 99 days for planning and documentation followed by construction activities which takes majority of the time frame. Approximately 30 days will be taken for finishing and finalising. The primary schedule is made in MS Project which can be modified or altered at any point of time during the project duration as per the convenience. The estimated start and end date of the schedule are assigned to every activity along with duration in MS Project. 3.1 Scheduling Scheduling comprises of two main categories:
  • 10. 9 3.2 Milestones Milestones are set are every phase where major activities are finishing in order to keep track of the schedule as well as making sure that project stays within scope. As the project has certain tasks (like designing and installing inbuilt water treatment plant, etc.) which tend to alter the scope, milestones will help to identify the status of the project and the remaining activities. The major milestones in the project are: 1. Finalising scope 2. Approval of the scope and confirmed design 3. Completion of earth work and concreting 4. Completion of the framework and roof 5. Installing the special components of the building and finalising work 3.3 Activities From the detailed list of the activities discussed above (Section 2.3) in the work breakdown structure, schedule of the major activities is shown in table 3.Major resources assigned to these activities are shown in the table 4: WBS Work Breakdown Structure PM Project Managers O Client/Owner Schedule Planning Defining Activites Sequece of the activities (logical flow) Assigning resources Determining the duration of the activities Monitoring Schedule Schedule Control
  • 11. 10 G Government Departments A Architect ER. Engineer S.ER Site Engineer C Contractor CM Construction Manager CL Construction Labourer PCE Pest Control Expert CR Carpenter D Designer EL Electrician L Labourer PL Plumber LC Landscaper Table 3 Major Resources and abbreviation used for them The table also contains the work breakdown structure code for the ease of understanding. Each activity is assigned alphabetical letter as the code which is used to arrange the activities in the sequence of their expected occurrence. Sr. No. Life cycle Activities Code Predecessor Duration (days) WBS Code Resources 1 Initiation Defining scope A 7 1.1.1.2 PM, O 2 Approvals from authorities B A 10 1.1.2 G 3 Getting builder's warranty/insurance C A 6 1.1.4 G 4 Quoting fees D A, B 6 1.1.6 PM 5 Planning Designing house E D 21 1.2.1 A, ER. 6 Estimating costs based on the design F E 7 1.2.2 CM 7 Risk analysis G E 10 1.2.3 PM 8 Site soil condition check H E 3 1.2.4 S. ER, C 9 Procurement of the material/equipment I F 30 1.2.5 PM 10 Hiring equipment quoting green materials and their specifications J I 20 1.2.6, 1.2.7 PM
  • 12. 11 11 Execution Construction site layout K J 6 1.3.1 C, CL 12 demolition/removal of existing shrubs, trees, stones, etc. L K 5 1.3.2.1 C, CL 13 excavate foundation M L 3 1.3.2.2 S.ER, C,CL excavate for water treatment plant 1.3.2.3 S.ER, C,CL excavate for bio compost tank 1.3.2.4 S.ER, C,CL 14 Trenchwork N M 2 1.3.2.5 CL 15 Pest/Termite treatment- pre slab O N 3 1.3.3 PCE 16 concrete casting-foundation P O 1 1.3.4.2 S.ER, C,CL concrete casting-water treatment plant 1.3.4.3 S.ER, C,CL concrete casting-compost tank 1.3.4.4 S.ER, C,CL 17 14-day curing Q P 14 1.3.4.5 CL 18 ground slab casting R Q 1 1.3.4.6 S.ER, C,CL 19 14-day curing S R 14 1.3.4.7 CL 20 Pest/Termite treatment- post slab T S 3 1.3.7 PCE 21 building retaining walls U T 5 1.3.5 C, CL 22 backfilling V U 1 1.3.6 C, CL 23 Framework W V 6.5 1.3.9 C, CL 24 Door/window allocation X W 10 1.3.10 C, CL 25 installing wooden panels in doors and windows AI X 4 1.3.10.2 CR 26 erecting roof Y X 24 1.3.4 S.ER, C,CL 27 Installing special building components Z Y 30 1.3.12 S.ER, C,CL, D 28 Carpentry AA Z 10 1.3.14 CR, C 29 Electrician AB Z 32.5 1.3.15 C, EL 30 HVAC AC AB 20.5 1.3.16 C, L 31 Plumbing AD Y, Z 35.5 1.3.17 C,PL 32 Landscaping AE AD 5 1.3.18 C, LC 33 Mechanical fittings AF AD 5 1.3.19 C, L 34 Insulation AG AB 7 1.3.20 C, EL, PL
  • 13. 12 35 Finishing Finishing and finalising AH AA, AE, AF, AG, AC 30 1.3.21, 1.4 C, PM, O Table 4 List of activities and their sequence 3.4 Dependencies and project plan From the activity order and the network diagram the relationship between the activities can be established into four main types of dependencies. 1. Finish to Start: 2. Start to Start: 3. Finish to Finish: 4. Start to Finish: Amongst all the dependencies, ā€˜finish to startā€™ dependency is most commonly used in this project. Here, more task dependencies are created when project is auto scheduled in MS Project. However, dependencies are created on the basis of logic, resource availability and cash flow in the project. Knowing the dependencies will give chance to alter the tasks as per the requirement and adjusting the project duration. The dependencies of all the activities can be as per table 4 which on converting into network diagram gives us critical path- The longest path of the project or the path with maximum duration and resources. The simplified critical path diagram as shown in appendix 2 is formed by Two pass method with AON diagram. The equations used to calculate the duration of the project are: Early Start+ Duration of the activity= Early Finish Late Finish ā€“ Duration of the activity= Late Start Float can be calculated as Early Start- Late Finish= Float The activities with zero Float are critical activities which can be observed in the network diagram in appendix 2. Note that the network diagram created by Two pass method and by MS Project has some difference in the project duration due to the complexity of the dependencies which was minimised for two pass method. Some of the activities like C, H, G, etc. which are dangling (disconnected from the network diagram) may also cause the difference in the duration of the project. Logically those activities are correct even though
  • 14. 13 they are disconnected. Also, the Gantt chart with red tasks shows the duration and the tasks which are critical for the project completion. 3.5 Monitoring Schedule The most common problem in many projects is scope creep which causes delay in the execution or add more cost to the project. One of way to prevent that is by actively updating the schedule with the status of the progress and reporting the delay as soon as possible. During execution there might be some difference in the occurrence of the activities as per planning. Schedule control helps in comparing those changes against the schedule baseline. The project is measured must be in terms of project duration and cost and the schedule control measure are taken when the schedule is affected. This can be done in following ways: ā€¢ Re-estimation of the remaining components of the project ā€¢ Adjusting future components ā€¢ Measuring schedule variance and schedule performance index for controlling ā€¢ Brainstorming the alternatives to shorten the duration of the remaining activities ā€¢ Measuring Milestones and reporting the changes 3.6 Assumptions The activities are assigned estimated duration and resources in initial project planning phase. However, there can be certain changes which affect the cost and duration of the project. This Factors affecting schedule of the project Project budget Cash Flow Risk Availibilty of the resources
  • 15. 14 are broadly discussed in Risk Management section of the plan. The schedule accounts for those risks and effort will be given in order to minimise them as prior as possible. One other assumption made here is that same worker will be doing multiple jobs which takes more time to finish the work. It is evident from table 4 that contractor will be the most important resource for the execution. Therefore, the budget and the equipment hiring can be done in accordance to the contractor and the activities associated with contractor. 4. Project Budget 4.1 Method of cost estimation In Eco-House Project, three cost estimating methods are used in different stages of project. Initiating stage: Analogous estimating. An estimating technique that uses the values of parameters on a scale, such as scope, cost, budget, and duration or measures of scale such as size, weight, and complexity from a previous and similar activity or project as the basis for estimating the same parameter or measure for a future activity or project respectively. Analogous estimating is based on previous experience of similar projects and estimatorsā€™ awareness of the difference between proposed project and previous project. Project estimators will consider about many previous examples of environment-friendly house building and compare them to Eco House, then provides a rough estimation of cost for the Eco House at initiation. Planning stage: Parametric estimating and Bottom-up estimating. More details will be known after initiating, Parametric estimating can be used at the beginning of planning stage to determine the impact of key variables on project costs via using statistical relationship between historical data and other variables, because just a bit more information is needed to complete a parametric cost estimate as compared to an analogous estimate. After that, Bottom-up estimating will be applied in Eco House Project at the end of planning stage in the Eco House project. Bottom-up estimating method is needed to meet the requirements of each of the lower, more detailed pieces of work, preferably the lowest level of WBS work elements, and these estimates are then aggregated into a total quantity. The cost estimates of Eco House should have a small enough margin of error when Bottom-up estimation is finished, and then can be used to create a project budget, show cash flow needs, and be used as a basis for controlling the project. Also, the costing accuracy level will be controlled no more than plus or minus 5 per cent after using bottom-up estimating.
  • 16. 15 4.2 Budget breakdown The initial costs associated with program income and program expenses. Program income related some sponsorship and funding from individuals, government or communities. Programs expenses includes consultants, contracts and materials and salaries of employees assigned to the project and backfilling if required as related to grant funding. Program Income Section $ Individual Contributions (sponsor) $250,000 Community Charities $50,000 Government Funding $15,000 Total Program Income $315,000 Table 5: Budget list (A) Program Expense Section $ Approvals Fees $2,000 Consulting Fees $6,000 Accountant Fees $5,000 Designing Costs $10,000 Engineers $100,000 Contractors $68,000 Equipment Costs $15,000 Raw materials and suppliers $200,000 Project management Fees $90,000 Total Program Expense $496,000 Table 6: Budget List (B)
  • 17. 16 4.3 Cost control The beginning of cost control from Eco-House is setting a limit for the costs of construction. It means that every decision project manager make in the course of Eco-House building will be guided by the limits, and project team have to be creative enough to ensure Eco House is successfully completed without running past the budget limits. 4.3.1 Indicators of cost control in Eco-House project KPI (Key Performance Indicator) KPI tools will be used in controlling cost in the Eco-House construction, the indicators are as follow: The Actual Cost: This is the actual cost of the Eco-House project that has been incurred from the date the project began (26/06/2019) to the current date. The Cost Variance: The difference between the cost of the project and the baseline that project team has set. The Planned Value: The budgeted cost of the work that has been scheduled for the cost. Basically, it is the cost of the activities that have planned for the Eco-House project so far. The Earned Value: The cost of the actual work that has been performed in the Eco-House project from the 26/06/2019 to the current date. The Return on Investment: The profitability of the project. It can be either positive or negative, depending on whether the projectā€™s benefits were greater than its costs. There are various costs that can be measured in the Eco-House project, such as the labour (engineers and contractors), the cost of materials, the expenses associated with equipment, approvals, various fixed expenses, miscellaneous expenses, and so on. All of these are pretty easy to calculate and track. It gets a lot harder to track other costs like administrative costs, telephone charges, and so on. These are best all categorized under ā€˜miscellaneous costs.
  • 18. 17 4.3.2 The matters of cost control a) Establishing that all decisions taken during Eco-House design and construction are based on a forecast of the cost implications of the alternatives being considered, and that no decisions are taken whose cost implications would cause the total budget to be exceeded. b) Encouraging the Eco-House project team (particularly project managers) to design within the cost plan at all stages and follow the variation/change and design development control procedures for the project. It is generally acknowledged that 80% of cost is determined by design and 20% by construction. It is important that the project team is aware that no member of the team has the authority to increase costs on its section or element of the work. Increased costs on one item must always be balanced by savings on another. c) Regularly updating and reissuing (once a month) the cost plan and variation orders of Eco- House causing any alterations the brief. d) Arranging for the contractors to be given the correct information at the correct time in order to minimise claims. Any anticipated or expected claims should be reported to the client and included in the regular cost reports. e) Checking that the agreed change management process is strictly followed at all stages of the Eco-House project. The procedure should only be carried out retrospectively, and then only during the construction phase of the project, when it can be demonstrated that otherwise significant delay, cost or danger would have been incurred by awaiting responses. f) Factor Inflation: Eco-House is a two-year construction program the pricing of the materials and salaries is not consistent. The inflation rate Australia 2018 is 1.92% and estimating inflation rate is around 1.90% in 2019 and 2020. Therefore, the extra expenses caused by light inflation are considered in Eco-House budget management. g) Account for Emergency: Various nature disasters and man-made mistakes are always going to be a potential occurrence. Contingency provisions are based on a thorough evaluation of the risks and are available to pay for events which are unforeseen and unforeseeable. Emergency account is set in Eco-House project budget in order to prevent the huge loss that results from the happening of flood, fire, storm, hailstone, strike, changes in the clientā€™s requirements or variations resulting from errors or omissions. h) Track cost in real time: This is where KPIs come in handy, it is important to keep close track of the Eco-House building as it starts. Monitoring software will be used in tracking all KPIs of Eco-House construction.
  • 19. 18 5. References Bent, J A. & Humphreys, K K, 1996, Effective project management through applied cost and schedule control . New York: M. Dekker. Byers, S 2019, Scheduling Projects, PowerPoint presentation, MGMT5660: Applied Project Management, The University of Western Australia. Available from: http://www.lms.uwa.edu.au. [15 May 2019]. Boyle, T 2017, ā€˜Dangling Logic in Project Schedulesā€™, Tomsblog, blog post, 4 September. Available from: https://boyleprojectconsulting.com/TomsBlog/2017/09/04/dangling-logic-in- project-schedules/. [13 May 2019]. Construction Project Delivery Methods. (2014). Archtoolbox: architectā€™s reference, viewed 07 May, 2019, <https://www.archtoolbox.com/project-management/project- planning/construction-project-delivery-methods.html Harned, B 2018, How to use milestones in Project Management. Available from: https://www.teamgantt.com/blog/the-how-and-why-of-using-milestones-in-your-project-plan. [15 May 2019] Kloppenberg, TJ 2015, Contemporary Project Management: Organize/Plan/Perform, 4th edn, Cengage Learning, USA. Kuehn, Ursula 2011, Integrated cost and schedule control in project management . 2nd ed. Vienna, Virginia: Management Concepts. Available from: Knovel General Engineering & Project Administration [2 May 2019 ] Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge (PMBOK Guide), 6th ed. Newtown Square, PA, Project Management
  • 20. 19 6. Appendices 1. WBS (screen shots of MS Project 2016):
  • 21. 20
  • 22. 21
  • 23. 22
  • 24. 23
  • 26. 25 Legend: ES EF A LS D LF A- Activity D- Duration ES- Early Start EF- Early Finish LS- Late Start LF- Late Finish Critical Path Sequence of the activity
  • 27. 26 3. Critical path in Gantt Chart: Gantt Chart 1 Critical path of all the major activities (Screenshot taken from MS Project 2016)
  • 28. 27 4. Gantt Chart: Gantt Chart 2 Gantt chart of all the tasks for the entire project timeframe: 29/03/2019 to 14/02/2020 (Screenshot taken from MS Project 2016)
  • 29. 28 Figure 2 Legend for Gantt Chart