Project Management

1. NAME: ISMATOV AZIZKHON
ID: L163330120
PROJECT TITLE: COMMUNITY
RECREATION CENTER.
MAJOR: CIVIL ENGINEERING.
SUBJECT: PROJECT MANAGEMENT FOR
CONSTRUCTION.
SUPERVISOR: Dr. TAI SHUANGLIANG.

2.  Community Recreation Center.
 Owner: City of West line (population 45, 000) in
the
 Rocky Mountains.
 Project: Recreation Complex.
 Location: Open space near the edge of the city.
 Budget: $21 million (exclusive of design).
 Project delivery system: Lump sum general
contracting.

3. INTRODUCTION OF THE CASE.
 The principle of design-building aims to create an environment for indoor activities for the seek of
the local people: it would consist of a stadium for soccer and football, basketball, a clubhouse with
locker rooms and variety of other indoor activity halls.
 In this case we are going to design project named Community Recreation Complex which will be
dealing with the design building of a stadium for football and soccer for 15,000 people, a basketball
park with seating of 8,000 seats, a clubhouse having extra room for stuff-locking, and halls for
variety indoor activities.
 From this the following factors will be considered during the design building.
 To know how the design will take place.
 This will include the procedure to be conducted during the design process.
 Plan of what to do after sign the contract with the design build.
 This includes:
 Design
 Construction.
 This part is mostly concentrated on how the build will look like including Lobby areas, Office for
administration, Rooms, Garden, Resting areas, Car parking, Entrance areas, areas for gym and
resting area.
 Plan and schedule
 It includes timing or the duration on which the project will take place within a period of time.
 Schedule and budget.
 This involve available amount of money given by the owner to fulfill the project. The budget will
also have to include the taxi rate

4. DISCUSSION.
What is indemnification (to cover the damage)? How does it influence the outcome
of this case?
 I think, better way could be to make the same contracting company (Guaranteed
Company) continue the procedure to finish the project. Well, they have budget
problem. It might be solved through the city council, which the company should
bond some money from bank with longer time of period for paying back.
What is the relationship of the sample panels (mock-ups) to finish installation?
 In manufacturing and design, a mockup, or mock-up, is a scale or full-size model
of a design or device, used for teaching, demonstration, design evaluation,
promotion, and other purposes. A mockup is a prototype if it provides at least part
of the functionality of a system and enables testing of a design. Mock-ups are used
by designers mainly to acquire feedback from users. Mock-ups address the idea
captured in a popular engineering one-liner: You can fix it now on the drafting
board with an eraser or you can fix it later on the construction site with a sledge
hammer
How is poor construction quality rectified when default occurs?
 To rectify the occurred defaults the third company should be hired (surety
company) to take the quality control over them.

5. ASSIGMENT
Suggest how the problems might have been avoided or mitigated.
better way could be to make the same contracting company (Guaranteed
Company) continue the procedure to finish the project. Well, they have
budget problem. It might be solved through the city council, which the
company should bond some money from bank with longer time of period for
paying back
Indemnification (indemnity) – to cover the damage
a contractual obligation of one party (indemnifier) to compensate the
loss occurred to the other party (indemnity holder) due to the act of
the indemnitor or any other party. The duty to indemnify is usually,
but not always, coextensive with the contractual duty to "hold
harmless" or "save harmless". In contrast, a guarantee is an obligation
of one party assuring the other party that guarantor will perform the
promise of the third party if it defaults
Lump sum contract
A lump sum contract (or stipulated sum contract) is the traditional
means of procuring construction, and still the most common form
of construction contract. Under a lump sum contract, a single
‘lump sum’ price for all the works is agreed before the works begin

6.  The contractor bears the risks associated with this contract and is responsible for
estimating project costs from drawings including overhead and his profit to
determine the price of the project. Lump sum construction contract is considered
as the most effective means of reducing construction price and is useful when
projects and its activities are well defined.
 Advantages of Lump Sum Construction Contract
 Lump sum construction contract is the most widely accepted contract between
the owner and the contractor due to it general predictability, easy management
and assured maximum price arrangements.

7.  Advantages of Lump Sum Construction Contract for Owner are as follows:
 There is certain degree of limitation over owner’s exposure as well as accountability at
the time construction since he has already agreed upon a fixed rate.
 Since the contractor has accepted a fixed price for the construction, the owner is not
liable for any over expenditure. This is the most important benefit.
 It is much simpler to get construction loan with a Lump sum contract as it provides a
high degree of certainty as far as cost is concerned.
 It is much easier to supervise and manage Lump sum contracts.
 The payments are made after fixed durations and that too based on the amount of work
completed unlike the balloon payments in other arrangements.
 Advantages of Lump Sum Construction Contract for the Contractor are as
follows:
 There is a greater margin for profit realization for contractors as well as designers.
 Due to its general reliability, contractors try to enhance quality of production and
performance and try to complete work faster.
 Lump sum contracts offer comparatively easier assessment of soil conditions, bidding
prices and pre- construction analysis which makes selection process less tedious.
 Accounting related to lump sum contracts are low-intensive that diminishes overhead
expenses of the contractor and allow for stable cash flow.

8.  Disadvantages of Lump Sum Construction Contract
 Lump sum contracts pose greater risk to contractor.
 Quantifying changes is a big challenge. Such contracts demand
documentation and record keeping of change orders at all stages that
further requires more paperwork.
 Rejection of change order requested by the employer.
 The building and construction design and plans have to be completed well
before beginning the execution of activities.
 The overall construction completion could take longer than other
contractual alternatives.
 Since the contract is based on fixed price, the contractor may start using
sub-standard means and methods and products. In such a case, the owner
should specify building materials well in advance.
 Lump-sum contracts usually end up with higher fixed price to cover
unforeseen circumstances. Owners are responsible for unpredicted
conditions which are beyond the control of either party.

9. CONCLUSION:
 The main reason to fail the project in West line city was poor
communication between superintendents. They could not agree to each
other’s choices and they criticized. Then, of course, technical problems
started, like delaying the work, the motivation of workers, retirement of
the CEO, complaining of the workers to company and the complaining of
the head of contractors to each other. Simply, no working environment.
 To conclude I want to say that, before starting the project all plans should
be carefully drawn in terms of financially and working schedule. Daily
works should be determined to each contractor for faster working
procedures.
 As after the working started, weekly reports should be submitted to the
project manager by each sub-contractor. All of them should be carefully
checked.
 Every possible environmental event should be considered during managing
the time-schedule. A third company, surety company, should be hired to
check and control over the quality and the managing time over the
subcontractors.

10. Reference:
 CheggStudy. Retrieved in June 7, 2019 from
https://www.chegg.com/homework-help/questions-and-answers/project-
features-community-recreation-center-owner-city-west-line-population-45-
000-rocky--q33259196
 Project Management for Construction by Dr. Tai Shuang Liang