The notes on "Project Evaluation and Implementation" was prepared with help of Professor Kaushik Banerjee. He is the Honorable Professor at Brainware Business School at Saltlake, Kolkata.
PPT with overall coverage of the project evaluation and all the topic of project evaluation and post project evaluation are covered in this ppt.It includes all the topic of project evaluation:-
=>which of the project should be evaluated?
=>cost&timing
=>social analysis
=>environmental analysis
=>progress report
=>final report
and many more topics are covered in this ppt for the brief description of project evaluation and some left out topics are numerical of project evaluation.
Project management is about acquiring or achieving the project goal and Most projects need to be broken down into a logical sequence of ‘phases’, known as the project life cycle.
PPT with overall coverage of the project evaluation and all the topic of project evaluation and post project evaluation are covered in this ppt.It includes all the topic of project evaluation:-
=>which of the project should be evaluated?
=>cost&timing
=>social analysis
=>environmental analysis
=>progress report
=>final report
and many more topics are covered in this ppt for the brief description of project evaluation and some left out topics are numerical of project evaluation.
Project management is about acquiring or achieving the project goal and Most projects need to be broken down into a logical sequence of ‘phases’, known as the project life cycle.
What is a Project and Project Management? This presentation helps you to gain more knowledge about how to manage a project and helps in understanding the Project Life Cycle.
it includes 21 slides, having definition of project, project management, project management cycle.
it also explains all the phases of PMC.
it also includes characteristics, advantages and disadvantages of project management cycle.
Contents are sourced from different authors including PMBOK 5th Edition.
This is provided for free as part of our Continuing Practice in Project Management Professional Certification. You may download, share but please refrain from commercializing it or altering parts. Thanks.
For more on Innovations and Project Management, please visit www.facebook.com/SigmaProcessExcellence
You may have a great idea for a project, but without planning, your project will remain just that — an idea. Simply put, planning is the critical step to take a project from an intangible theory to a tangible result.
Project planning is part of project management, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment. Project planning can be done manually or by the use of project management software.
What is a Project and Project Management? This presentation helps you to gain more knowledge about how to manage a project and helps in understanding the Project Life Cycle.
it includes 21 slides, having definition of project, project management, project management cycle.
it also explains all the phases of PMC.
it also includes characteristics, advantages and disadvantages of project management cycle.
Contents are sourced from different authors including PMBOK 5th Edition.
This is provided for free as part of our Continuing Practice in Project Management Professional Certification. You may download, share but please refrain from commercializing it or altering parts. Thanks.
For more on Innovations and Project Management, please visit www.facebook.com/SigmaProcessExcellence
You may have a great idea for a project, but without planning, your project will remain just that — an idea. Simply put, planning is the critical step to take a project from an intangible theory to a tangible result.
Project planning is part of project management, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment. Project planning can be done manually or by the use of project management software.
Method of measuring job satisfaction
Generally there are 2 methods
simple global rating and summation
and also a 3rd personal interview for extreme circumstances.
In this research & guide on "How to effectively apply digital project management to organisational innovation culture", I will be sharing the best findings how to manage a team of creative professionals within an innovation organization. Highlighting the skills needed for effective digital project management, the types of organization project management for digital innovation culture & the phases & processes when implementing Digital Project management for innovation culture.
concept of project
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process vs project
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general project characteristics
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elements of projects
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why are projects important
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project phases
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internal stakeholders
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concept of project management
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project management process
Project Appraisal
Project appraisal is a crucial process in project management that involves assessing the feasibility, viability, and potential impact of a proposed project before making investment decisions. It is a systematic evaluation of various aspects of a project to determine whether it aligns with the organization's objectives, meets stakeholder requirements, and is likely to deliver the expected benefits. This comprehensive evaluation helps stakeholders make informed decisions about whether to proceed with the project, modify its scope, or abandon it altogether. In this essay, we will delve into the concept of project appraisal, its importance, key components, methods, and best practices.
Importance of Project Appraisal:
Project appraisal plays a pivotal role in the project lifecycle as it serves several crucial purposes:
Risk Mitigation: By conducting a thorough appraisal, potential risks and challenges associated with the project can be identified early on. This allows stakeholders to develop risk mitigation strategies and contingency plans to address these issues effectively.
Resource Allocation: Appraisal helps in determining the allocation of resources such as finances, manpower, and time to ensure optimal utilization and efficiency throughout the project.
Cost-Benefit Analysis: It enables stakeholders to evaluate the expected costs and benefits of the project, helping them assess its financial viability and potential return on investment (ROI).
Stakeholder Alignment: Project appraisal facilitates communication and alignment among stakeholders by clarifying project objectives, expectations, and deliverables upfront.
Decision Making: Ultimately, project appraisal provides decision-makers with the necessary information and insights to make informed decisions about whether to proceed with the project, modify its scope, or discontinue it based on its feasibility and potential impact.
Components of Project Appraisal:
Project appraisal involves the evaluation of various components to assess the feasibility and viability of a proposed project. Some of the key components include:
Project Objectives: Clearly defined project objectives are essential for determining its feasibility and alignment with organizational goals. Appraisal involves assessing whether the project objectives are realistic, achievable, and measurable.
Market Analysis: Understanding market dynamics, demand trends, competition, and customer preferences is critical for assessing the market potential of the project. Market analysis helps identify opportunities, risks, and challenges that may impact the project's success.
Technical Feasibility: This involves evaluating the technical aspects of the project, including technology requirements, infrastructure, and operational capabilities. It assesses whether the project can be implemented using available resources and technology.
Financial Viability: Financial appraisal involves assessing the project's costs, funding.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
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harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
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The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
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Project evaluation and implementation notes and questions
1. Project Evaluation and Implementation
Project:
“...A group of one time activity, having well defined sequences, duration, starting,
and finishing time and cost”.
A project has following characteristic:
i. A Project has a single, definable purpose.
ii. It is an end item or result oriented approach.
iii. It is specified in terms of cost, schedule, and performance requirements.
iv. It is unique in application, that is it requires doing something different
than was done previously
v. Project cut across organizational lines because they need skills and
talents of multiple professionals and divisions.
vi. Projects are temporary activities and the organization usually has
something at stake, when doing a project.
vii. A project is the process of working to achieve a goal. During the process,
a project passes through several distinct phases called the project life
cycle.
FUNCTIONS AND NEEDS
1. Planning Function:
a. Identification of project alternatives;
b. Formulation of project and setting up organization;
c. Preparation of feasibility report and appraisal budgets.
2. Scheduling Function:
a. Identification and breakdown of activities;
b. Sequencing of activities;
c. Allocation of resources and responsibility;
d. Costing and funding the project.
3. Control Function:
a. Preparation of MIS;
b. Preparation of work breakdown structure;
c. Time control and cost control activities;
d. Feedback and analysis.
2. NEED AND SCOPE
Project management involves great technical complexities and require diversity of
skills. Managers are faced with the problems of putting together all the
responsibilities and resources subject to certain constraints like limited time
schedules and environmental uncertainty. Project management evolved to deal with
the several problems and to take advantages of different opportunities.
Today project management differs from earlier day projects in terms of
independency, complexity, rapid and radical changes social factors, technological
developments, rising costs, increasing competition, resource shortage and pressure
from interest groups. Project management is a departure from traditional
management philosophy. Traditional Management Philosophy believes in simple
ongoing functions, investing on most predictable and least risky resources but the
management philosophy is growing and changing fast due to technical
advancement and scarcity of resources. Here, Project Management is a one shot
activity, which aims at optimum utilization of resources, and developing project
management goals. Every project has three overriding goals – Budget, Schedule,
and Performance Requirements. Every project should be very much clear about
accomplishment of the previously mentioned three goals.
SOME FAMOUS PROJECTS
I) Manhattan Project
II) Polaris Ballistic Missile Development Project
III) Pathfinder Mission
SCOPE
A. INTERNATIONAL LEVEL:
a. Disagreement Programme
b. Minimum Health Care Project
c. Refugees’ Rehabilitation Programme
B. NATIONAL LEVEL:
a. Poverty Alleviation Programme
b. Five Year Plans
c. National Broadcasting Network Programme
d. Setting up National Highways
e. Building Railway Network etc.
C. STATE LEVEL:
a. Literacy Programme
b. Rural area development schemes
c. Building up of a Sports Complex etc.
D. FACTORY LEVEL:
a. Setting up a factory
3. b. Developing technology for a product
c. Product diversification
d. Vendor development etc.
Cleland and King suggested five general criteria to use project management
techniques:
1. Unfamiliarity: Something different from ordinary routine.
2. Broad magnitude of the efforts: All encompassing activities that touch all
the resources employed heavily in any organization like people, capital,
equipments etc.
3. Changing environment: Applicable in high-tech industries like compilers,
electronics, pharmaceuticals and communications also applicable in the
industries which are less volatile but work in highly competitive and
dynamic environment like chemicals and biotechnology.
4. Interrelatedness: All functional areas are interrelated and work across
organizations.
5. Reputation of the organization: Project Management should look into
completion of the project in time, falling, which it will result in financial ruin,
loss of market share, are damaged reputation or loss of future contracts.
WHERE PROJECT MANAGEMENT NOT APPLICABLE OR NOT APPROPRIATE
I. Where consumers are more familiar with the undertaking business;
II. Where environment is stable;
III. Where the end item is less unique and more standardised;
IV. Production of standardised and continuous industrial and agricultural
outputs.
DIFFERENT FORMS OF PROJECT MANAGEMENT
I. Basic Project Management: Health Education and Welfare Projects.
II. Programme Management: Long time duration and co-ordinated
programmes goals. E.g. Housing projects, Urban development
programmes.
III. New Venture Management: New product development or new market
explorations. Eg. Research and development (R&D) project managemet of
solid state engineering department, R&D product development of Alpha
Company
IV. Ad-hoc Projects: Very short duration, temporary team development
approach. This includes reorganizations, mergers and acquisitions, major
audits, marketing expansion and management development programme.
V. Installation Project: This operates in airline accounts, air craft
engineering. E.g. Launching of GTE airplane to airlines.
4. TECHNIQUES OF PROJECT MANAGEMENT
I. PERT/CPM Network scheduling
II. Resource levelling and scheduling
III. Time management techniques like milestone chart
IV. Work breakdown structure
V. Management Information System (MIS)
VI. Integrated Project Management System trough computers.
ORGANIZATION AND HRD ISSUES
PROJECT MANAGER
Project Manager is the most important element of project organization. The main
responsibility of project manager is to plan, direct and integrate the work efforts of
participants to achieve project goals.
TYPES OF PROJECT MANAGERS:
(A) Project Expeditors: Main responsibility is to achieve unity of
communication.
(B) Project Co-ordinator: Main responsibility is to achieve unity of control over
project activities.
(C) Matrix Managers: They have responsibilities of both unity of direction and
control. Matrix Managers direct functional managers and project team
members in criss cross pattern of vertical functional and horizontal project
oriented matrix organization.
PROJECT MANAGER’S RESPONSIBILITIES:
(a) Planning project activities, tasks and end results, including doing the
breakdown scheduling, budgeting, coordinating, tasks and allocating
resources.
(b) Selecting and organizing the project team.
(c) Interfacing with stakeholders.
(d) Negotiating with and integrating functional managers, contractors,
consultants users and top management.
(e) Providing contract with the user.
5. (f) Monitoring project status.
(g) Identifying technical and functional problems.
(h) Solving problems directly or knowing where to find help.
(i) Dealing with crisis and resolving conflicts,
(j) Recommending termination or redirection of efforts when objectives cannot
be achieved.
QUALITIES OF A PROJECT MANAGER:
(A) Personal Characteristics:
a. Flexible and adoptable
b. Preference for initiative and leadership
c. Confidence, persuasiveness, verbal fluency
d. Effective communicator and integrator
e. Able to balance technical solutions with the time, cost and human
factors
f. Well-organized and disciplined
g. A generalist rather than a specialist
h. Able to devote most of his/her time to planning and controlling
i. Able to identify problems and to make decisions.
(B) Behavioural Skills:
A project manager needs strong behavioural and interpersonal skills. In
particular, s/he must be an active listener, active communicator and able to
capitalize on informal communication channels.
(C) General Business Skills:
These should include:
a. Understanding of the organization and the business.
b. Understanding of general management – marketing, control, contract
work, purchasing, law, personal administration and the general
concept of profitability.
(D) Technical Skills:
To make informed decisions, project manager must be able to grasp the
technical aspects of the project. In none or low-technology environments,
understanding can be developed through experience and informal training.
In high-technology projects, qualifications are more rigorous, including a
career moulded in the technology environment and a knowledge of many
fields of science and engineering.
Project Team: Project work is accomplished by a group of people who are main
responsible for completion of project and accomplishment of project goals.
6. ROLES OF DIFFERENT INDIVIDUALS IN A PROJECT TEAM
I. The Project Engineer:
A project engineer shoulders responsibilities for co-ordinating
technological areas and assuring integrated design of the project end –
item. The responsibilities encompasses system analysis and engineering,
design, interface control, system integration and testing.
II. The Contract Administrator:
S/he is responsible for project’s legal aspect such as authorization to
begin work and subcontracting with outside firms. Contract
administrators are involved in preparing the proposal, defining and
negotiating the contract, integrating contract requirements into project
plans, ensuring the project fulfils contractual obligations, identifying and
defining changes to project scope and communicating the completion of
milestones to the customers.
III. Project Controller:
The project controller assists the project manager in planning,
controlling, reporting, and evaluation. S/he works with functional
managers to define tasks and interrelationships on the work breakdown
structure, as well as to identify individuals responsible for controlling
tasks. S/he also maintains work packages files and cost summaries,
releases approved work authorization documents, monitor work progress,
evaluates schedule and cost progress, and revises estimates of time and
cost to complete the project.
IV. Project Accountant:
The project accountant provides financial and accounting assistance to
the project managers. S/he establishes procedures for utilising the PMIS,
assists in identifying tasks to be controlled, establishes cost accounts,
prepares cost estimates for tasks, validates reported information, and
investigates financial problems.
V. The Customer Liaison:
The customer liaison serves as the customer’s or user’s technical
representative. S/he participates in technical discussions and ongoing
reviews (with-in the bonds of the contract) and helps expedite contract
changes.
7. VI. The Production Coordinator:
The production coordinator plans, monitors and coordinates production
aspect of the project. Responsibilities include reviewing engineering
documents released to manufacturing; developing requirements for
releases, equipments and parts, monitoring procurement and assembly
of parts, materials, and process for the end-item, monitoring
manufacturing costs.
VII. The Field Manager:
The field manager oversees installation, testing, maintenance, and
handling over of the project end-item to the customer. Responsibilities
include scheduling field operations, monitoring field operations costs,
supervision of field personnel, and liaison with the project manager.
VIII. The Quality Assurance Supervisor:
S/he establishes and administers inspection procedures to ensure
fulfilments of all quality-related requirements.
Members of the office charge their work time to the project or to an overhead
account. They are assigned to the office only when they must be in frequent contact
with the project manager or other project office personnel, or when their services
are required continuously and for an extended period.
8. PROJECT SYSTEM DEVELOPMENT LIFE CYCLE
In Project System Development Life Cycle, there are four phases:
a) Conception
b) Definition
c) Execution
d) Operation
FIRST PHASE: CONCEPTION
The conception phase comprises of three separate stages:
a) First Stage: Preliminary investigation and request clarification
b) Second Stage-Project Initiation: Initiation of the point where the idea for a
system is born. In this stage, a problem can be recognized and a potential
solution is sought of. Project initiation requires the need for significant ideas,
uncertainty or risk factors, return on investment factors. In project initiation
stage the following factors are analysed:
a. The environment
b. The needs definition and objective of the project
c. Preliminary alternative solutions and estimates of costs, benefit,
strength and weaknesses.
d. Estimated budgets
e. Affected individuals and organizations
f. Potential solutions
c) Third Stage-Project Feasibility Study:
Feasibility is the process of investigating a problem and developing a
solution insufficient detail to determine if it is economically viable and
worthy of development. In feasibility study after invitation to bid the process
starts. The company, which invites bid, is known as the user’s solicitation.
The user evaluates all contractors’ response, selects the contractor and
feasibility stage is completed. Thus, the top management establishes the
relation and finds which contractor is the best. This is the idea of feasibility
studies. This study includes request clarification and request approval. The
bidders list is prepared and the final contractor is selected.
In India, Mnistry of Programme Implementation gave the following structures
for feasibility study and report.
Preamble Summary of the project
Chapter I Request for bidding
Chapter II General information - origin of project idea, option
examined, methods used for analysis and evaluation of
bidders, selecting the best alternative bidders, source of
9. technology and fund.
Chapter III Project formulation
Chapter IV Engineering and technology choice of technology, criteria
for its selection, upgradation, obsolescence, technical
specification, major inputs, quality standard,
documentation, bill of materials etc.
Chapter V Marketing and commerce, supply and demand analysis,
market share, payment terms, royalty payments,
guarantee, warranty and insurance coverage etc.
Chapter VI Financial analysis – capital costs, operating and
distribution costs, contribution, break-even analysis, ROI,
payback, NPV, IRR etc.
Chapter VII Project management and organization site selection,
capacity planning, product mix, factory layout, PERT-CPM,
machine capacity, organizational structure, project team
structure and responsibility etc.
Chapter VIII Selection of proposal – Ability to satisfy needs, return on
investment, project plan and management, reputation of
contractor, likelihood of success and failure, fit to
contractor for resources and technical capability.
Criteria 1 2 3 4 5
Technical
solution
approach
Bad Poor Adequate Good Excellent
Price of Contract >1.8 1.6-1.8 1.4-1.6 1.2-1.4 <1.4
Price organization
and management
Bad Poor Adequate Good Excellent
Likelihood of
meeting
cost/schedule
targets
Bad Poor Adequate Good Excellent
Reputation of
contractor
Bad Poor Adequate Good Excellent
There are three types of feasibility:
(a) Technical Feasibility:
Can the work for the project be done with the current equipment, existing
technology, and available personnel? If new technology is needed what is
likelihood that it can be developed?
(b) Economic Feasibility:
Is the project viable enough to meet to cost and economically feasible?
(c) Operational Feasibility:
If the project system is developed and implemented, will it be feasible? Will
there be resistance from users that are affected by the application benefits?
10. PROJECT CONTRACT OR CONTRACT MANAGEMENT
(PROJECT PROCUREMENT PROCESS)
Principle of Contract Management:
All works in project are done according to formal or informal contracts. Even in
internal projects where users and contractors belong to the same organization, the
statement of work are documented so that the user’s expectation are clearly known
and that contracted work will confirm to them. Most projects also involve some
degree of external and legal contracting.
(The arrow signs indicate the contract agreement.)
CONTRACTING PARTIES IN THE PROJECT
The contract process starts when the user contracts with principal party (the prime
contractor) to be responsible for the overall project. This principal party may
contract with secondary parties – subcontractors, vendors, consultants, materials
suppliers and contract labour to be responsible for portions of the project. These
secondary parties, for example, a general or prime contractor are hired by the user
to manage the overall construction project, including fabrication and assembling of
the building structure. For specified work such as wiring, pumbling, ventilation,
and interior details, the contractor may subcontract with other organizations to do
the work. For development projects of large scale systems, major subsystem and its
elements are subcontracted.
Prime Contractor
Sub-contractor
Material and
Other supplier
Consultants Contract labour
User
11. In project contract the user while contracts with principal contractor and the
principal contractor with subcontractor, the project manager is acting as an agent
on behalf of user and principal contractor. A project contract should have the
following basic elements –
(a) Offer and acceptance of offer
(b) Lawful consideration
(c) Lawful object
(d) Capacity of parties to make the project contract.
A project contract of project duly signed by the project manager binds both the
user and prime contractor. Unless a project agreement is issued in acceptance of a
specified bid or offer by a prime contractor or vendor, it is not a contract. Again it
becomes a contract when it is accepted by the prime contractor. If
acknowledgement is made by the vendor or prime contractor differing in any
respect from the original offer, this constitutes only a counter offer, this is not an
acceptance. Again equipment details, materials, services provided, price, time of
delivery and place, quantity and quality should be mentioned in project contract.
COMPILATION OF PROJECT CONTRACTS:
(a) Pre-qualification and short listing of prospective bidders.
(b) Notice inviting tender/enquiry
(c) Issue tender documents to prospective bidders
(d) Pre-bid conference for clarification of queries to the tenderer.
(e) Receive the bids, evaluate them and make comparative statements (scrutiny
of tenders)
(f) Technical and commercial negotiations
(g) Price negotiation
(h) Letter of intent. The receipt of the letter of intent is the date of start of
delivery.
(i) Preparing proper agreement
(j) Monitoring and control of progress
(k) Proper documentation
(l) Planning and implementation of corrective actions.
PRACTICAL ASPECTS OF CONTRACT FOR EFFICIENT CONTRACT
MANAGEMENT
(a) Proper Planning
Proper product selection and design;
Proper process selection;
Proper technology selection;
Proper location or site selection;
Proper time schedule and cost estimate
(b) Collating/ Collecting/ Assembling all relevant detailed information in the
tender document.
(c) Arbitration clause and jurisdiction of court.
12. (d) Performance guarantee test
(e) Identifying appropriate agencies
(f) Thorough and proper negotiation
(g) Bid Evaluation Criteria (BEC)
(h) Adequate communication and record keeping
(i) Contractor should be asked to develop a detailed programme in the form of
network and furnished to the purchaser.
(j) Authority must have the prerogative off loading his work to other agencies at
his cost (Risk Purchase).
OBJECTIVE OF CONTRACT MANAGEMENT:
(a) To see that the project contract should be finished in time. For this, the user
should prepare quality assurance plan. It is the check system to examine
validity of contract. The user should ask the prime contractor to furnish
broad frame of contract including GANT chart and networks.
(b) Project should be finished in time.
(c) Projects should have proper cost consideration. Here it is ensured that user
and prime contractor should enjoy win-win situation.
(d) Project work has been broken into small packages it means all project is
broken into manageable units and user can identify people for responsibility
centres.
LEGAL ASPECT OF CONTRACT
In project contract the user while contracts with principal contractor and the
principal contractor with subcontractor, the project manager is acting as an agent
on behalf of user and principal contractor. A project contract should have the
following basic elements –
(a) Offer and acceptance of offer
(b) Lawful consideration
(c) Lawful object
(d) Capacity of parties to make the project contract.
Lawfulness of contract is violated if:
(a) Forbidden by law;
(b) Fraudulent;
(c) Intent to cause injury to person, property of others;
(d) Immoral or opposed to public interest.
Common illegal contracts are:
13. (a) Agreement for obstruction of justice;
(b) Unreasonable restraint on trade and employment;
(c) Promoting immorality
(d) Defrauding
(e) Interfering with public officials’ duties.
Termination of Offer:
(a) Rejection of offer;
(b) Counter proposal;
(c) Revocation by offerer;
(d) Reasonable time laps;
(e) Illegality, insanity and death;
(f) Bankruptcy.
Lawful Consideration:
There should be lawful consideration in agreement of contract. A minor can
exceptionally disaffirm or disown the contract. In this case only if court believes
that reasonable causes exists for implementation of execution of contract, even
though it is found that minor is involved, court may declare validity of contract.
Global Tender:
In case of global contract, the user may sign a contract with Aliens. Aliens have
same right regarding contractual matters. However, in case of global contract
different countries have different contractual matters. Any fraudulent, immoral,
injuries, opposed to public interest global contracts are invalid. The user should
give direct and exposed notice, inviting global tenders. Here, care should be taken
so that all competent parties have fair and equitable chance to bid. In global
contract the user may have right to inspection and right to rejection. The term of
payment should specifically mentioned in contract agreement. In global contract it
is mentioned whether global tender is agreed upon execution of contract according
to –
(a) Free on Board (FOB) contract
(b) Free or rail (FOR) contract
(c) Cost insurance and freight (CIF) contract.
In case of non-delivery or non-completion on agreed date, it implies breach of
contract and the user may cancel the contract. S/he can also sue for damages for
non-delivery. Again if the user cancels the contract and the global tender suffers a
loss due to anticipatory breach or breach, the global tender can collect the damage
to the extent s/he has suffered the loss of profit. But it is due to global tender’s act,
the user may recover the loss. Again in case of inviting global tender, the user
should make sure that there should not be any infringement of patent rights which
is globally applicable anywhere in the world.
NEGOTIATIONS FOR PROJECT
The purpose of negotiation is to clarify technical or other terms in the contract and
it is essentially a discussion between a user and a co0ntractor with the view to
reading an agreement. Negotiation is not necessarily done on standardised items
14. for which agreement terms are simple and costs are fairly well known. But, it is
common place on complex system that requires development work and involve
considerable uncertainty and risk. Different contractual agreements are signed
after negotiation. They are:
(a) Fixed Price Contract:
The price paid by the user is fixed regardless of the cost incurred by the
contractor. Here, the contractor agrees to perform all work at a fixed price.
Clients are able to get the minimum price by putting out the contract to
competitive bidders. For example, Contract agreement cost estimates (Cex) =
Rs. 1,00,000, Fee = Rs. 10,000 and Price = Rs. 1,10,000. Now, whatever the
projects actually ends up costing (Cac) the price to the clients remaining Rs.
1,10,000.
(b) Cost plus contract:
The price paid by the customer for the project is based on the costs incurred
in the project plus the contractor’s fees. The contract is reimbursed for all
direct costs plus an additional amount to cover overhead and profit. Here,
the burden of risk is on the client. For example, Contract agreement cost
estimates (Cex) = Rs. 1,00,000. But all allowable costs will be reimbursed.
Fee = Rs. 10,000, target price = Rs. 1,10,000. All allowable costs (perhaps,
all cost (Cac) will be reimbursed in addition to the fee.
(c) Incentives:
The amount paid by the customer depends on the contractor’s performance.
The contractor either receives a bonus for exceeding the requirements or
must pay customer a penalty for failing to meet the requirements.
Other types of agreements are:
(d) Supply only contract
(e) Supply and supervision of erection
(f) Supply and erection (including commissioning)
(g) Consultancy contract
(h) Maintenance contract
(i) Other services contract:
This is applied for shipping agents to accredited agents. Shankar and Co. in
Germany executes this contract of clearing on behalf of suppliers.
Negotiation process starts during preparation of the proposal. During negotiation,
terms related to specifications, schedules and prices are converted to legal and
contractual agreements. Performance and costs are also discussed. Throughout
negotiation the goal is to obtain an agreement to the best advantage of the
company. In countering objections, the project manager’s best defence is a well
15. thought out project plan that clearly shows what can or must be done t achieve
desired parameters. To execute negotiation the project manager must be familiar
with technical details of system design, fabrication, related costs and competitive
advantages and disadvantages. Final negotiation is the last opportunity to correct
the misperception. After that the signed contract becomes the binding agreement
for the project.
PROJECT COST : CAPITAL AND OPERATING (PHASE SIX – DEFINTION)
CAPITAL COST:
(I) Land and site development:
a. Basic cost of land including conveyance and other allied charges;
b. Premium payable on lease hold;
c. Cost of levelling and development;
d. Cost of laying approach roads and internal roads;
(II) Building and civil work:
a. Building for main plant and equipment;
b. Building for auxiliary services like steam supply, work shop,
laboratory, water supply etc.;
c. Godowns, warehouses etc.;
d. Non-factory buildings like canteen, guesthouses, time-office etc.;
e. Quarters for essential staffs;
f. Garages, sewers, drainage, tanks, wells, basins, bins, cisterns.
(III) Plant and Machinery:
a. Cost of imported machinery: This consists of FOB (Free on Board)
value, shipping, freight and insurance cost, import duty, clearing
loading and unloading etc.;
b. Cost of indigenous machinery: This consists of FOR (Free on Rail)
costs. E.g. sales tax, octroi, railway freight etc.;
c. Cost of stores and spares;
d. Foundation and installation charges.
(IV) Technical know-how and engineering fees
(V) Expenses on foreign technicians and training of Indian technicians abroad
(VI) Miscellaneous fixed assets:
Furniture, office machinery, tools, vehicles, diesel generating sets,
transformers, boilers, laboratory and workshop equipment, fire fighting
equipments etc.
(VII) Patent, Licences, Trademarks, Copyright
16. (VIII) Preliminary expenses:
Market survey, feasibility report, drafting of memorandum and article of
association etc.
(IX) Capital issue expenses:
Underwriting commissions, brokerage, fees to managers and registers,
printing advertising and publicity, stamp duty etc.
OPERATING COSTS:
(I) Material Cost:
a. Direct Material: Direct material can be identified with and allocated
to cost unit and cost centres. This includes prime cost material.
b. Indirect Material: Indirect material cannot be identified with the cost
units and cost centres. This includes duties and taxes, freight inward,
VAT etc.
(II) Labour Costs:
a. Direct wages: Prime cost labour, fringe benefits, employer’s
contributions to PF and ESIC, medical benefits, etc.
b. Indirect wages: Ancillary to production. This includes wages for
maintenance workers, idle time wages, overtime, night shift, holiday
wages, bonus etc.
(III) Expenses:
a. Direct Expenses: Chargeable or process expenses. This includes hire
charges for technical jobs, drawing, layout, expenses relating to
receipt of contract, travelling etc.
b. Indirect expenses: Rent, rates and taxes, insurance, canteen
charges, hospital expenses, power, lighting, heating etc.
FUNCTION-WISE CLASSIFICATION OF COST
(I) Production cost:
a. Direct material
b. Direct labour
c. Direct expenses
d. Factory overhead
17. (II) Administrative cost:
a. Salaries of office staffs, accountants, directors and others;
b. Maintenance of factory estate;
c. Rent, rates, depreciation of office building;
d. Postage, stationary, telephone etc.
(III) Selling and distribution costs:
a. Salaries and commission of salesmen and sales manager;
b. Expenses on advertisement;
c. Rent, rates and depreciation of sales office, warehouses etc.
PHASE – C: EXECUTION
The execution phase starts when works specified in the project plan input into
action. Sometimes the phase is termed as acquisition phase because most of the
project resources are acquired here. It is also known as design phase as all the
project systems have a pattern, configuration, and structure. Again, when an
acceptable design is chosen, the system goes into production. Production involves
either fabrication of a single item or mass production. The execution phase has
following cycles:
Issue of formal order for executing the project.
(I) Selection and appointment of project manager and his team
(II) Prepare detailed budget
(III) Initiate discussion with financial institutions, banks, contractors and
consultants.
(IV) Issue/publish “Notice for inviting tenders” (NIT) for various works.
(V) Initiate and finalise negotiation with collaborators of technology and
suppliers of machinery
(VI) Setup liaison cell for effective coordination and control
(VII) Prepare detailed project report.
PHASE – D: OPERATION AND IMPLEMENTATION
In the final, the operation phase is applied. Here, the user takes charge, operates
the system and evaluates its performance. The contractor may remain involve for
providing maintenance support and evaluation services. This phase also include
project evaluation and project appraisal.
Success of project management depends heavily on operation and implementation
of the project. Defective implementation causes delays, which in turn results in
cost escalation, technological obsolescence, non-availability of items and suppliers.
Here, project management teams work in a group for successful operation. The
project-head should finalise budget and allocate funds for each area and each
subsystems. This is called work breakdown structure. Here, project network
analysis (PERT-CPM) is implemented. Project financial inventory control is applied
like EOQ. Another responsibility of project team in this phase is setting up “cost
engineering cell”. Project quality control system and quality standardise applied.
18. PROJECT EVALUATION
Objective:
Improve performance of project;
Obtain better ROI (return on investment)
Achieve greater profitability;
Effective use of resources.
Principles:
Evaluation must be objective;
It must be impartial;
It must be carried out by appropriate professionals;
It must be practicable;
It has the aim to improve effectiveness of system and produce of future
projects
Activities:
(A) Feedback and analysis:
a. Examine:
Files of a company
Files of a project
b. Evaluate:
Economical and political climate
Management tactics and strategies
Process and technology utilised
c. Interview:
Key persons in the project
Experts
Others
d. Review and assess:
Project organization
Management style
Contribution team member
Top management of the company
19. (B) Guidelines to future project:
a. Planning:
Market survey and environment scanning
Define scope and work carefully
Plan the infrastructure and manpower
b. Feasibility study
c. Time and cost
d. Implementation and monitoring:
Award of contract to the lowest bidder is not always wise
decision. Check up reliability and past performance.
Setup liaison to improve coordination between various agencies
like collaborator and government.
Maintain written records of major events.
Introduce proactive P.M.I.S. (Project management Information
System)
e. Develop project management team, systems and procedure:
Design MIS to suit appropriate level.
Standardise report and procedure.
Select suitable software for MIS.
Impart proper training to project team.
COST BENEFIT ANALYSIS
A project involves one time capital investment and a recurring cost for a
subsequent period. In return, the project is evaluated to yield benefits for a long
time to come. There are certain models for cost benefit analysis:
(I) OECD Model: Little and Mirrlees in 1969
(II) UNIDO Model: Sen, Dasgupta and Stephen Marglin in 1972
(III) GUIDE Model: Coling Bruce in 1976
Methods of evaluations: Estimation of investment and return on investment
(I) Payback period
(II) Average or accounting rate of return
(III) Net present value
(IV) Cost benefit analysis
(V) Internal rate of return
20. QUESTIONS
1. Discuss various types of projects.
2. Explain the project life cycle.
3. List and briefly explain the various steps in identification of a project.
4. What factors have a bearing on the choice of technology for a project?
5. Discuss “Jury of executive opinion” and “Delphi method” of demand
forcasting.
6. Discuss various uncertainties in demand forecasting.
7. What points should be kept in mind while estimating the working capital
requirements and planning for its funding?
8. Define NPV. Discuss various properties of NPV. What are the advantages
and disadvantages of NPV as an appraisal criterion?
9. Discuss in detail the key steps in the sample survey for market appraisal.
How would you characterize the market on its basis?
10.Define Social Cost Benefit Analysis (SCBA). What are the five strategies of
appraisal in the UNIDO method for SCBA as described in the Guide to
practical project appraisal?
11.What is IRR and how it is calculated? What are the various problems with
IRR which leads to multiple IRR? Discuss the implications of multiple IRR
in project appraisal.
12.Discuss the various means of financing a project. What financing mix do
you suggest for a small scale unit.
13.Discuss and evaluate the “variance analysis” approach to project control.
Also explain the various prerequisites for successful project implementation.
14.Write a note on techniques of project appraisal.
15.What do you mean by project identification? Explain the various types of
projects.
16.Discuss the suggestions helpful in scouting the project ideas.
17.What are the different kinds of relationship commonly used in the trend
projection method?
18.Discuss the uncertainties in demand forecasting. How can one cope with
these uncertainties?
21. 19.What points should be kept in mind while estimating the working capital
requirements and planning for its financing?
20.What are the components found in cash flow statement?
21.What is MIRR? Why it is superior to the regular IRR?
22.Why is payback period method so popular, despite its shortcomings?
23.As per the UNIDO method, how are the following valued?
a. Tradable inputs and outputs
b. Non-tradable inputs and outputs
c. Labour
d. Foreign exchange
24.How are the following determined or defined in the Little-Mirrlees
approach?
a. Shadow price of traded goods
b. Accounting price of non-traded goods
c. Shadow wage rate
d. Accounting rate of return
25.Illustrate the problem of scheduling in view of resources constraint with
the help of an example.
26.Discuss the various methods of demand forecasting.
27.Discuss various phases in the life cycle of the project.
28.Write a short note on project scheduling and control.
29.Briefly discuss various sources of financing a project.
30.Market and demand analysis plays a crucial role in investment decision
making. – Justify.
31.What are the various remedies for non-performance of a contract?
32.What are the important considerations in preparing a project report?
33.What are the various sources, which are helpful in product identification?
34.What is the rational of SCBA?
35.Distinguish between accounting rate of return and internal rate of
return.
22. 36.Discuss various problems in implementation of a project.
37.What are the factors considered in technical appraisal of a project?
38.Explain the various stages of Project Life Cycle.
39.What do you mean by Project Management? Also explain the scope of
project management.
40.Write a note on types of projects.
41.Write a note on techniques used for Forecasting Future Demand.
42.Explain the basic criterion of project appraisal followed by the banks and
other financial institutions.
43.Discuss in detail the various stages involved in the execution and
management of a project.
44.Write a note on techniques used to analyse project profitability.
45.What do you mean by market appraisal of a project? Explain the steps
involved in market appraisal.
46.Explain the role of capital budgeting techniques in project appraisal and
analysis.
47.What do you mean by project scheduling and control? Explain the
advantages of project scheduling.
48. What is Social-Cost Benefit analysis? Explain the rationale of
social cost benefit analysis.
49.Write in detail the remedies for non-performance of contract.
50.Define Project. Explain the characteristic of a project.
51.Discuss the problems of identification, formulation, appraisal and
implementation of new project.
52.What do you mean by Project Management? Also, explain the importance of
project management.
53.Write a brief note on consideration involved in Project Appraisal.
54.What do you mean by Technical Appraisal? Explain the process of
Technical Appraisal.
55.Write a note on techniques of Market Analysis.
56.What are the sources of finance to meet the short-term financial
requirements?
23. 57.What process is followed to measure funds requirements of a project?
58.Critically evaluate the internal rate of return techniques of Capital
budgeting.
59.What do you mean by SCBA? What is the need to conduct SCBA?
60.Write in brief about UNIDO approach used to conduct SCBA.
61.What do you mean by project scheduling and control? Explain the
advantages of project scheduling.
62.Discuss the uncertainties of demand forecasting.
63.List the key issues to be covered in a technical collaboration
arrangement.
64.Discuss the contents of the projected balance sheet.
65.How internal rate of return is calculated? Discuss the accept and reject
criteria under IRR method.
66.Describe and evaluate the various forms of project organization.
67.Discuss the authority and orientation problems in project setting.
68.Discuss the prerequisites for successful project implementation.
69.Compare and contrast UNIDO approach and L-M approach of social cost
benefit analysis.
70.Why project audit is conducted? Also discuss problems in conducting
project audit.
71.Define contract management and also discuss the remedies for non-
performance of contract.
72.Discuss the different phases in Project Life Cycle.
73.Why it is important to do a thorough and detailed job of need
identification?
74.Describe two methods for measuring the effectiveness of your proposal
efforts?
75.What is meant by the term total slack as applied to a path?
76.Describe why it is necessary to develop a baseline budget for a project?
77.Describe what the project manager should do to perform the organising
function? Give some specific examples.
78.Explain the approaches of SCBA.
24. 79.Explain the details of preparation of project report.
80.Explain project audit and why it is important for an organization?
81.What is capital budgeting? Give various techniques of capital
budgeting.
82.How the detailed project report is prepared? Give various steps involved in
it?
83.What are the social cost of a project? What challenges are faced by the
developing countries regarding social costs?
84.What is project implementation? What is the role of a project manager
in implementation of a project?
85.What is sales forecasting? How it is done?
86.What is cost estimation? How the cost of a project is estimated?
87.What is market survey? Why it is done?
88.What is working capital? How the working capital requirements are
estimated?
89.What is ranking of projects? Which are the methods used for ranking a
project?
90.Discuss the scope of project management.
Anirban Chakraborty