The contracts planning done by dmrc was very innovative and nonconventional to Indian railway.
This is attained as the project in charge ( dr. shreedharan) had made it sure that the dmrc project does not get caught up in the bureaucracy of the Indian railway. the project in charge made sure that they were involved in the planning stage and the problems were reviewed by them and alternative procedures were found and different contracting framework were adopted making it a quick and effective process.
Innovation and leadership was shown in the dmrc contracts.
1. The following is the difference in the frame work of the contracts used in DMRC project and the traditional indian railway recommended contract framework in the dpr stage.
2. Instead
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Instead of going with construct only contracts as suggested at DPR stage design and construct contracts were adopted by dmrc.
4. Instead of giving out several E & M contracts and giving out several ventilation and a/c contracts the civil engineering, the mechanical and electrical along with the ventilation and lighting were all combined and adopted by dmrc.
5. Instead of implementing multiple contracts which is the traditional strategy the dmrc packaged the two contracts in accordance to the construction method in which the MC1A was pertaining to the core and cover whereas the tunnel boring was of MC1B contract.
Many organisational changes had to be made at the DMRC for effective planning of the contracts:
1. The organizational structure of DMRC was made into a lean structure and it did not have any unwanted and hindrance causing layers.
2. The decision making power was given to the officers and along with it accountability of action.
3. The DMRC made sure that its organizational structure did not have any political influence.
4. It was made sure that the auditing and vigilance committee did not interfere the officers and their
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Their item rate contract puts minimum responsibility to properly manage the cost, quality of the project and project management suffers. The Indian railway takes all the project management responsibility and their supervisors and engineers are liable for all the risks of the project.
The RVNL projects use PMC’s for the purpose of project management.
This is also a problem as the responsibility is shared with a shareholder with minimum stake in the project.
The contract value of the PMC will be about 3% of the entire project with even less security deposit (approx. ten %) if anything goes wrong.
The PMC are the least to lose if anything goes wrong in the project. They may lack determination and may not perform up to the standards.
The contractor who has very high stake in the project is not accountable for problems in project management.
Conclusion:
The DMRC model where the risk is divided equally to the contractor who hold a high stake in the project.
The PMC is also in place to cross correct the contactor execution and making and analysing progress of the
There was a discussion on the scope clouds and contract numbers. Several of the contract drawings will be used for overlapping contracts and so the clouds and notes have been implemented to delineate between them. This project is 9959-5, so the clouds illustrating work under a different contract are not in this scope of work.
Commonly, the level of control retained by the owner links with the level of risk, and those levels typically have an transposed relationship to the risk and control levels of the contractor (CMAA, 2012). Not all of these delivery methods is suited for every project. For each situation, there will be advantages and disadvantages in the use of any specific method. One needs to carefully assess the specific project requirements, goals, and potential challenges in order to establish the delivery method that offers the best opportunity for success (CMAA, 2012).
In chapter 9, Michael C.Thomsett describes the procedure of conducting the project review. He said, “The role of the manager is to keep your team working toward the final deadline, within the budget, and in the line with the goals of the project and on a broader field to produce the result of the highest possible quality and accuracy.”
Being the present manager and being appointed by the government at the feasibility stage I am asked to write a report in order to outline the activities required to successfully manage this major project and to ensure that it is completed on time and within budget.
There are various standard forms of contract being used in the construction work, namely JCT (Joint Contract Tribunals), NEC (New engineering Contract), FIDIC (International Federation of Consulting Engineers). In which, Contract Administrator plays a key role as a referee between the Employer and Contractor.
Gray, Clifford F.; Larson, Erik W., Project Management – The Managerial Process, Copyright © 2001 by The McGraw-Hill Companies, Inc.
It has been argued that main two kinds of collaborative disruptions may happen and these are described herewith. Firstly, arrangement of commercial and contractual in nature should be made as such wherein no member with regard to the project community in order to commit contractually to ensure future activities can be carried out efficiently in the absence of any kind of necessary information as well. It has been argued that individuals react in a defensive manner when they are asked to provide with a firm price at a point which is still lined with uncertain activities with regard to risk, premium allowance, etc. With regard to commercial arrangements, disruption should be avoided and the same can be done by following a logical sequence of developmental flow in terms of design and also the knowledge in terms of the overall cost involved. Secondly, within the same level of organization, a process of collaborative project can also get disrupted in case a team, for instance, even a bidding team with regard to design staff or senior commercial staff hands over the development from one to another, for instance, a project site or a team. In such a case, the second team that gets the handed down work, is assumed to apply its own impositions or interpretations on various main decisions which were initially made by the first team. This happens since the second team does not fully understand why certain decisions were made the first team. Thus, every handover that happens between two teams tends to introduce an interface and thus there is a potential risk of miss communication or poor communication, misunderstanding, etc. which can lead to a loss of appreciation in terms of overall project sense (French, 2007). The main
For decision making purposes, the projects can be further divided into two groups which is independent project and mutually...
Risk management is among the most important practices in the field of project management. A successful project completion and risk management often go side by side. An interesting aspect of project management is that a project can sti...
Very often, the project manager is deemed to be responsible for the entire project which causes the rest of the team to contribute lesser towards the achievement of
Some include risks at the enterprise level, managing risks in complex projects and dealing with turnarounds and large capital projects. Liu, Zou, & Gong (2013) explore how enterprise risk management (ERM) may influence the ability and performance of project management risk (PRM) by considering the features of the construction industry, its businesses and projects. Managing risks within projects such as these has become an important process to achieve project objectives in terms of the scope, time and cost. The results show that enterprise risk management can positively influence the implementation of project risk management. This can be achieved through implementing a risk focused culture, setting up risk management departments and setting up risk procedures. This will help control the project risk and improve the performance of project risk management. Communicating the concerns with other team members can help identify the risks earlier on rather than later in the development of the project. If the Stakeholders and managers involved are satisfied then the project outline becomes a
In general, there are different types of procurement type for various situations, due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, which will be advised to use. However, each method has different advantages and disadvantages. First, traditional path is the tender documents have been prepared and then invite the tender and the employer appoints the contractor to construct the project. There are several advantages of this traditional route in the construction industry.
In this competitive world, companies have to deal with various types of risk all the time with there projects. Generally, it affects the budget and schedule of the project. So it is important to keep in mind the risk management strategies while creating an initial project plan.
Since the procurement manager is responsible for executing contracts for most companies, the Agent should support the project manager in making sure the technical aspects, schedule, scope, and risk are captured completely in the SOW. In closing, this paper examines the legal aspects of procurement management, along with how procurement management can be an effective tool for managing projects. This paper focused on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects that pertain to the Federal Acquisition Regulations (FAR). The company’s position on deciding not to procure all of the material in a contract was examined, along with how that position can be strengthened by understanding the legal aspects of procurement management. Finally, the paper analyzed how the project manager is supported by the contract management function.
The roles of project sponsor and project manager are both vital to the success of a project. Assuming these roles within a major corporation is a huge task and can takes the use of certain strategies to complete projects successfully. During most projects it is custom for the project manager to work closely with the project sponsor from start to finish. When each individual understands what their role in the project is, and the other’s role, they can then easily work together to ensure a smooth completion is successful. This paper will cover three strategies that a sponsor can use to help ensure project success, and also three strategies that a project manager can use to help ensure project success. I will describe how the strategies are used