Best PM Practices in Real estate Industry

Best PM Practices in Real estate Industry0

Head 1:  Role of PMC in Real Estate Industry

Real Estate Industry is segmented in Residential, Industrial and Corporate sectors including School, Hospitals , Hotels and IT Buildings etc

To manage such big or small projects and projects with specific requirements like piling of very tall structures etc, we require an expertise within organizations,if not, external advice, and a thorough knowledge.

PMC, internal as well as external, plays important role in projects and provides the effective management solutions to increase and improve the efficiency and outcome (in term of cost and time) at every stage of project life cycle (i.e. from inception to completion of projectsif PMC appointed timely) and creating a win-win situation for all stakeholders

PMC manages the Project by application of their Knowledge, Skills and Experience at various stages. However, at the same time PMC also has to face various challenges like Design Issues, Constructability Issues, Long lead material Issues, Inter Contractor Coordination Issues, Engineering Issues, Safety Issues, etc which can be tackled only by a well organized and multi dimension approach of the PMC

Head 2: Current Practices followed by Developers

Earlier, realization of PMC was missing in Real estate industry. Now year 2012 onward, it is observed that Developers understand the necessity of PMC in Real Estate Industry majorly for School,IT-ITES,Commercial,Hotel, HospitalProjects etc.

Still there are not much housing projectswhere PMC are appointed except few big projects.

Following practices are observed which are followed by Developers currently-

  1. Not giving time at planning stage i.e giving maximum input during Construction stage.
  2. Starting project without set of GFC Drawings from Consultants
  3. Run project without sufficient technical team i.e to avoid cost overrun
  4. Appointment of  poor grade contractor to save money , which ultimately affect quality of project and cause more wastages due to repair , rework and improper management
  5. Neglect safety , house keep and government rules ( like NGT , use of Ground water , SHE Policy , labour law etc )
  6. Doing delay in project handover even after good sale

It is also observed that PMC are appointed by Developers like DLF – M3M – Godrej – Tata due to compulsion of funding agency. In such cases PMC act as 3rd eye for funding agency.

Head 3: Best PMC Practices which will bring of better construction quality

Followings steps to be followed

  • Maximum effort to be given during planning stage (say 80%)
    • Appointment of Principal Architect , Structure , MEP and other Consultant  for effective design management
    • Ensure effective team size for Planning , Construction and Post Construction stage
    • Ensure perfect BOQ , effective tender document , proper vendor selection for Civil – Electrical-Plumbing-Mechanical and landscape by competent team
    • Ensure 5 M ( machine , material , men , money, manpower  ) planning
    • Ensure site logistics considering next 3-5 years planning
    • Ensure effective cost plan , schedule
    • Ensure formats , checklists for effective monitoring and control
    • Plan Responsibility matrix with KRA and escalation level
  • Construction stage
    • Deployment of competent team  in phase as perManagementCharter ( Target , Schedule , Budget )
    • Ensure guideline for Housekeep , safety , quality
    • Use of software to manage project
    • Ensure daily report ( DPR ) by Team Leader in evening with NC
    • Ensure weekly and monthly meetings at different level with Management ,  Consultants , Contractor and Team
    • Ensure timely payment of vendors considering all statuary requirement like PF-ESI-Labour issues / also track 3rd party liability
    • Effective Contract Administration i.e settle any claims and any dispute timely
    • Ensure timely audit for Billing , Quality and Safety by 3rd party like Finance Audit
    • Ensure training program for project team

Note :

  1. PMC is most effective and efficient when it is involved in Total Project Life Cycle i.e from Inception to Completion.
  2. Good PMC can contribute savings by doing Value Engineering
  3. PMC should work as independent agency and should only be answerable to Top Management
  4. Scope of PMC should include anticipation of issues and timely action

By Kuldeep Chandra

“Masters in Building Engineering and Management” from School of Planning and Architecture , New Delhi

Kuldeep Chandra has 34 years of experience with Government Department as well as in Private Sector like- Sahara India Construction Corporation Limited (Project Amby Valley), J P Associate Noida, ATS Infrastructure Limited, Mahagun India Group and also with Al Hail Investment LLC, Muscat Oman for Projects at various location in Oman – Dubai – Abu Dhabi –Sharjah. Kuldeep Chandra runs a Project Management Consultancy firm “PMO Concepts” and is involved in the various real estate projects like- Residential- Commercial – Hospital – Hotel – IT – School in NCR – UP – Chandigarh and in GOA for different Clients.

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