Report on 3i builders ltd
2.1 Real Estate
Real estate is a legal term (in some jurisdictions, notably in the USA, United Kingdom, Canada, and Australia) that encompasses land along with anything permanently affixed to the land, such as buildings, specifically property that is stationary or fixed in location. Real estate law is the body of regulations and legal codes which pertain to such matters under a particular jurisdiction. Real estate is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personality under chattel law or personal property law).
However, in some situations the term “real estate” refers to the land and fixtures together, as distinguished from “real property,” referring to ownership rights of the land itself.
The terms real estate and real property are used primarily in common law, while civil law jurisdictions refer instead to immovable property.
2.2 Real Estate in Business Sector
With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Specialists are often called on to valuate real estate and facilitate transactions. Some kinds of real estate businesses include:
Appraisal: Professional valuation services
· Brokerages: A fee charged by the mediator who facilitates a real estate transaction between the two parties.
· Development: Improving land for use by adding or replacing buildings
· Property management: Managing a property for its owner(s)
· Real estate marketing: Managing the sales side of the property business
· Real estate investing: Managing the investment of real estate
· Relocation services: Relocating people or business to a different country
· Corporate Real Estate: Managing the real estate held by a corporation to support its core business—unlike managing the real estate held by an investor to generate income
Within each field, a business may specialize in a particular type of real estate, such as residential, commercial, or industrial property. In addition, almost all construction business effectively has a connection to real estate.
2.3 Residential Real Estate
The legal arrangement for the right to occupy a dwelling is known as the housing tenure. Types of housing tenure include owner occupancy, Tenancy, housing cooperative, condominiums (individually parceled properties in a single building), public housing, squatting, and choosing.
Residences can be classified by if and how they are connected to neighboring residences and land. Different types of housing tenure can be used for the same physical type. For example, connected residents might be owned by a single entity and leased out, or owned separately with an agreement covering the relationship between units and common areas and concerns.
Major physical categories in North America and Europe include:
· Attached / multi-unit dwellings
· Apartment (“flat” outside North America) – An individual unit in a multi-unit building. The boundaries of the apartment are generally
· Defined by a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.
· Multi-family house – Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.
Terraced house (a.k.a. townhouse or row house) – A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space.
Condominium – Building or complex, similar to apartments, owned by individuals. Common grounds are owned and shared jointly. There are townhouse or row house style condominiums as well.
· Semi-detached dwellings
· Duplex – Two units with one shared wall.
· Portable dwellings
· Mobile homes – Potentially a full-time residence which can be (might not in practice be) movable on wheels.
· Houseboats – A floating home
· Tents – Usually very temporary, with roof and walls consisting only of fabric-like material.
The size of an apartment or house can be described in square feet or meters. In the United States this includes the area of “living space”, excluding the garage and other non-living spaces. The “square meters” figure of a house in Europe reports the area of the walls enclosing the home, and thus includes any attached garage and non-living spaces.
It can also be described more roughly by the number of rooms. A studio apartment has a single bedroom with no living room (possibly a separate kitchen). A one-bedroom apartment has a living or dining room, separate from the bedroom. Two bedroom, three bedroom, and larger units are also common. (A bedroom is defined as a room with a closet for clothes storage.)See List of house types for a complete listing of housing types and layouts, real estate trends for shifts in the market and house or home for more general information.
2.4 Real Estate Development
Real estate development is the process by which an entity makes improvements to real property, thereby increasing its value. In legal form the developer may be an individual, but is more often a partnership, limited liability company or corporation. However anyone involved as a principal in such transactions is a property developer by occupation. A real estate developer may choose to develop a business model usually by specific building typology (residential, commercial office, industrial, retail) or by geographic preference. Structured education for real estate development has not truly existed until the last decade as many developers have historically came from career paths as architecture, finance, city planning, engineering or construction. Many development companies are also family owned and operated.
2.5 Categories of Real Estate Development Activity
2.5.1 Land Developers
Land developers typically acquire natural or “unimproved” land (often referred to as englobo land, raw land, real property with no improvements or infrastructure) and “improve” or alter it with utility connections, roads, earth grading, covenants, and entitlements. Infrastructure improvement provides a base for further development of built improvements. Covenants define the context in which future development of built improvements may take place (often in the form of deed restrictions on particular parcels: a sort of “private zoning code” limited only to those properties). Entitlements are secured legal permissions from regulatory bodies (typically in the form of permits, but sometimes in the form of re-zoning or planned unit developments). Once these improvements have been made to the raw land, it is typically subdivided and sold piecemeal at a profit to individuals or building developers.
2.5.2 Building Developers
Building developers acquire raw land, improved land, and/or redevelopable property in order to construct building projects. The buildings are then sold entirely or in part to others, or retained as assets to produce cash flow via rents and other means. Some building developers have their own internal departments for designing and constructing buildings (more common among larger developers), while others subcontract these parts of the work to third parties (typical of small developers).
Real estate development is first and foremost a cash flow business.
Real estate is, by its nature, an expensive non-liquid asset. This means that it costs a lot of money to own it, and it can be difficult to sell. In development activity, there are also the added costs of improvements themselves (typically called “hard costs”) and the fees of various and sundry consultants necessary to get the work done properly (typically called “soft costs”). Because expense is high, sale is difficult, and return on investment is delayed, real estate investment is inherently risky. A large part of the work of developers is the management of risk.
Since there are significant initial investment requirements, a majority of real estate development projects are financed with a large amount of debt leverage. While more leverage increases potential profit, it also magnifies risks and builds in a periodic negative cash flow (regular payments on the debt). Projects will generally be profitable if the upfront commitment of cash is kept to a minimum and the project can quickly start generating a positive cash flow sufficient to cover debt service.
There are almost as many ways to finance a real estate development project as there are development projects. However, most financing arrangements fall into a few broad categories:
- Private investors (pension funds, insurance funds, wealthy individuals, joint ventures, etc.)
- Public investors (REITs, share offerings, public-private partnerships, etc.)
- Private debt (individual loans, bank mortgages, construction loans, etc.)
- Public debt (redevelopment loans, etc.)
- Private grants (non-profit target grants, etc.)
- Public grants (anti-blight subsidies, affordable housing credits, tax incentives, historic preservation grants, etc.)
- Equity financing (use of cash flows from other projects owned by the developer)
Successful real estate developers can become enormously wealthy due to the large sums of money being transacted and the value of the assets they control. However, because of the non-liquidity of their assets, they also are very often cash poor. Inability to remain cash solvent is the primary cause of business failure for real estate developers.
2.7 The Process of Real Estate Development
Although the process for development of real estate varies from project to project, the various phases can be categorized roughly as follows (in approximate chronological order):
- Market research
- Site selection / feasibility analysis
- Due diligence / preliminary pro forma
- Property acquisition, perhaps using option to buy
- Project design / refined pro forma
- Obtain entitlements
- Financing / final pro forma
- Lease-up / sales
Operation (in cases where the project is retained as an asset)
3.1 About 3-I Builders Ltd.
3-i Builders Ltd. is one of the renowned, promising & leading real estate companies in Bangladesh. It specializes in developing luxury apartment complexes in prime locations of the city. The company embarked upon its journey since 2005 at the corporate head office building of 3-i Builders Ltd. in Dhaka. 3-iBL is also an active member of Real Estate of Housing Association of Bangladesh (REHAB) and has become a trusted name in the real estate sector in Bangladesh with unsurpassed value. From its very inception the company has won the confidence and good will of its clients within a short span of time as people have found them an eligible & invaluable partner for the work they plan for their homes. Thus 3-iBL has grown into a dependable organization by building elegant & aesthetically pleasing structures that grace Dhaka’s finest neighborhoods.
It uses the highest quality building materials and finishing products to ensure durability and customer satisfaction. Its main concentration has been in the prime, attractive locations of Dhaka city, the emphasis being on sound construction and aesthetic design.
In addition, 3-IBL has tried to provide accommodation suitable for small families while aviating scope for developments of residential lands in the vicinity of the capital city. Thus it gained its ground in the arena of real estate companies.
The whole team of 3-i Builders Ltd. is uniquely trained & qualified to deliver outstanding quality, on-time performance & on-budget completion. Efforts are underway to cater to the needs of clients in every market segment. The success of such a large construction company requires specialized laborers and highly qualified professional back up and 3-iBL has developed a strong team of such highly skilled experienced professionals to work under its competent management. The company currently has sufficient employees working, experienced in their respective fields.
For the last few years, 3-i Builders Ltd. has accomplished pretty good track records, enthusiastic customers only through a client-centered approach and unwavering commitments to the satisfaction of construction performance & architectural design. Reputation as a reliable real estate company that gives high priority to customer’s desire and needs has been created through the hard work and dedication of its work force.
Instead of just stressing on good academic qualifications which is compulsory, 3-iBL has selected its staff based their intelligence, creativity and innovation:
Engineering & Design:
3-iBL has developed in house design team for architectural, structural, planning and electrical design. 3-iBL has sufficient engineers in construction and development team in addition to quality control monitoring & evaluation and construction management personnel trained at home and eminent personalities of the country.
Accounts and finance:
3-iBL has an experienced team in this department headed by most qualified cost and management accounting professionals of Bangladesh.
Marketing and customer service:
One of 3-iBL’s strongest points in its efficient customer service department that gives personal attention to each client and is known to give prompt effective action. A warm, friendly atmosphere is created for the client who can make purchase decisions at his/her pace without feeling pressurized.
The mode of operation has always been focused on the core commitments to our clients and the finest trade know-how. Every project receiving equal professional supervision, attention to detail and design rarely found in our field, took over the reins of the company and since then there has been no looking back. In such extremely competitive market of home construction, 3-i Builders Ltd. is promised to provide the greatest values and the highest caliber workmanship.
In terms of clients-builders relationship, 3-iBL believes that open, on-going and unhindered communication is a pivotal to a successful project and a happy client. For elimination of any uncertainty and variability in such relationship, the construction plans and project will be closely supervised and managed from conception to design and to completion.
3.2 Mission Statement
“To be the leading provider of land development solutions today and tomorrow by building on our strong foundation of integrity and on our commitment to associates, clients, and communities. Our commitment is to preserve the natural beauty of the environment and generate economic growth for the area.”
3.3 Company Perspectives
The 3-I BL’s business strategy is to: build on its leading position in the small and medium sized residential units development segment; increase recurring income from growing rental property portfolio; maintain strategic investments to strengthen income and asset base; generate significant future cash flow from diversifying businesses.
3.4 Vision Statement
”With ethics and integrity 3-I BL strives for excellence in all facets of Land Development services in order to enhance our position as an industry leader. Our team transforms forward thinking ideas into cutting edge applications, to achieve maximum results for our clients, company and community.”
3.5 Corporate Values
“Support and demonstrate our corporate values of growth, passion, integrity, flexibility, benevolence and collaboration.’’
INTEGRITY: Over the past 4 years, 3-I BL built a reputation on performance and integrity. Many people know and select 3-I Builders for their land development needs.
VISION: Seeing opportunities others miss
ADAPTIVE: Anticipating and preparing for change
VIBRANT: Infusing energy to vitalize communities
TRUST: Confirming your confidence, exceeding expectations COMMITMENT: Our greatest asset is YOU”
3.6 Why Invest in Land?
Land is real
Unlike shares, land for sale is tangible, – it can be visited, seen, and walked on.
Land is a finite resource
Bangladesh is a small country with the majority of the population wanting to live in the Capital City, Dhaka.
Land is a solid and easy to understand investment
Land is not open to accounting scandals and it is clear when property prices are going up (or down) and the reason for this movement. For example, everyone in Bangladesh is presently aware of the housing crisis in the country. Other traditionally ‘solid’ investments such as precious metals are not as simple as they appear.
Land increases in value
This is due to demand outstripping supply and also from land gaining planning permission to have houses built on it.
Investment land has a wide range of uses
Investment land can be used for grazing animals, starting a business or building a home on, or it can simply be left as it is – whatever is done with it, the price is likely to rise considerably, even with the slowdown in house price inflation
Land investment – The alternative investment opportunity
“The population is growing, the economy is growing, the demand for new workers is growing, and household formation is changing with an aging society and family break up. The demand for housing is increasing.”
The result is a massive pent-up demand for new housing. What shape and form that housing takes is irrelevant to land owners. Whether executive houses, or affordable flats for key workers, land is needed for new homes.
One should decide where to buy land by applying in exactly the same two key criteria as for any other investment, reward and risk. What is the potential reward? How great is the potential risk.
How great is the potential return?
Get it right and the rewards can be exceptional. Typically, when land is redesigned for development purposes its value dramatically increases. The exact percentage increase varies between plots and locations, but it should be reasonable to expect a substantial return on investment if your land is rezoned for development purposes.
And what’s the risk factor?
The risk is that one’s land will not be re-zoned for development purposes, in which case, he still owns the land, and it should still have its initial value. After all, land never goes out of business!
The 3-I Builders efforts seek to:
· Create affordable housing (developed land & homes) for people
· Foster better living environments and pleasant surroundings
· Ensure environmental balance and sustainability
· Treat industrial effluents
· Develop a meaningful partnership with others for development
· Provide better working conditions for its staff members
The 3-I BL works in close partnership with the City Corporations, the Government of Bangladesh, other private sector companies, multilateral institutions, the environment department, and myriad financial institutions.
3-I BL has its head office in Dhaka, Bangladesh.
3-I BUILDER LIMITED
House # 29, Road# 10, Sector # 14,
The common features in all the projects o f 3-I Builders are:
Structural &General Engineering Features
- Sub soil investigation and soil Composition Comprehensively analyzed by latest testing equipment and laboratory techniques.
- Structural design Using stand pro-2004 and other Computer added design software with due Construction of Earth Quake and wind force as per Parameters based on ACI, ASTM and BNBC.
- Heavy rain forced Cement Concrete foundation.
- Rain forced Cement Concrete floor slabs.
- Total foundation and Super structure design and supervision by a team of reputed and professional structural design engineers.
- LC with adequate thickness in the top roof slab.
Major Structural Materials
- Rain forcement /Steel: 60/40 grade deformed/Tor steel.(As per design Specification)
· Cement: Holcim / Super Crete / Scan / Cemex / Seven Ring / any other local cement which ever available in the market.
· Aggregate: High strength stone chips and brick chips in all R.C.C. work.
(As per design Specification)
· Bricks: 1st class standard bricks / 1st class picket.
· Sand: 2.5 F.M Coarse Sand (Sylhet) and 1.5 F.M Medium Sand for Concrete.
· All structural materials Including Steel, Cement Bricks, Sylhet Sand, Local Sand and other aggregate etc of the highest standard and Screened for quality.
· Direct Supervision at every stage of Construction by team of Experienced and quality workmanship.
· Systematic quality control, Inspection, Monitoring, Testing and acceptance at every phases of every stage of Construction.
§ Outside walls are plastered 10″/ 5″ standard brick work.
§ All interior walls are also plastered 5″ standard brick work.
§ Roof top parapet wall or railing at 3′-0″ height.
Best quality tiles (RAK / CBC / MIR or Equivalent quality which ever available in the market) in all floors.
§ Stair wooden Rail with metal port support.
§ Best quality RAK / CBC / MIR Homogenizes Ceramic tiles in Stairs & Lobby.
· Standard glazed tiles in bathrooms up to ceiling height (RAK/CBC/MIR) or equivalent
· Sanitary wares are standard. (BISF/RAK or equivalent)
· Cabinet basin in Master bath and pedestal basin in other bath except Maids.
· Hot & cold water line in Master & second Toilet.
· Matching floor Tiles (RAK / CBC / MIR) or equivalent.
· Towel rail, Soap case & Toilet paper holder in all bathrooms.
· Mirror in all bathroom.
· Separate plug points for geysers line only.
· Nicely arranged bathrooms fitting & fixture.
· All bathrooms accommodate English Commode Except 3rd & maids.
· Provision for Exhaust fan in master bathroom.
· Waterproof laminated door (UPVC)
· Maids’ bathroom with long pan, lowdown & head shower.
· Impressively designed platform with tiles (TOP/ CBC / MIR.)
· Provision for double burner Gas out let.
· Provision for gas oven, washing machine & Refrigerator.
· Partly tiles in kitchen Wall.
· Exhaust fan will be provided in main entrance.
· One stainless steel sinks for washing purpose (Thailand / Spain).
· Floor will be covered with Homogenizes tiles (RAK/ CBC / MIR).
Doors & Windows
· Solid teak or Chapolish door will be provided in main entrance.
· All Chowkat will be made by Silkarai/Mahogany as per Seasonal availability
· Plastic door shutter for all bathrooms.
· All Internal doors will be made by Chapolish, partex or equivalent quality flash door shutters with French polish. Except toilet.
· Both sides sliding aluminum frame with 5mm Tended glass as per perspective views.
· Good quality locks in windows. Safety grills made by MS flat bar
· Safety grills of M.S section with matching color enamel paint in all windows.
Painting and Polishing
· All interior wall and ceiling will be colored with high quality Plastic paints (Berger /Elite / Asian Paint).
· Weather coat snowcem paint will be used outside and in front side (Berger/Elite/Asian paint).
· All Bathroom and kitchen ceiling will be enamel paint matched with the tiles.
· MK/TCL/Taiwan / Taiwan or equivalent electrical switches, circuit breakers, plug points and other fittings (ABB/TCL/MK).
· Light fixture in stairs and lobby (Swash/Crescent)
· Independent electrical meter in each apartment.
· Electrical distribution box with main switch.
· Concealed electrical wiring (BRB / PARADISE) cables.
· All power outlets with earthen connection.
· Provision for air conditioner in Master Bedroom, 2nd Bedroom and Living Area.
· Two emergency points in each apartment (Light and One fan).
· Emergency power in lift, lobby, inter-com service, common spaces like car Parking, reception area, security room and main gate.
· Provision for Telephone line, TV & Satellite dish line in Living and Master bed room.
· Central control penal box for power and Gas supply at ground floor.
· Concealed fan hook.
Specification of Lift & Generator
§ Lift: Super quality high speed Lift with capacity of lifting six persons, adequate lighting, Emergency alarm and escape provision.
§ Generator: One stand by Generator for operating the lift , Water pumps, Lighting in common spaces, stair, two light points and one fan in each apartment in time of power failure
Water supply feature
· RCC overhead water tank with optimum capacity water storage.
· Underground RCC water reservoir.
· Water connection for optimum water supply in underground storage tank.
· Water supply line to each apartment concealed in duct.
· 2 H. P. motor pump will be installed for lifting water.
Sewerage and drainage features
· All sewerage lines concealed in duct.
· PVC pipes of appropriate diameter.
· PVC pipe lines for down rain water concealed in duct.
· PBC waste water pipe lines concealed in duct.
· Drain and apron surrounding for quick drainage connected wash lines.
· Car parking facility at ground floor.
· All Car parks marked with color.
General Amenities & Salient Features
· Heavy secured gateway with decorative lamps and brass pate having logo of the complex.
· Spacious entrance with comfortable secured driveway and provision for a controlling system to maintain visitors, vehicles, goods etc.
· Main Lobby and Reception are in secured premises with an impressive concierge desk completed mailbox.
· A guard room with Toilet facilities in ground floor covered and protected with high tech security grills.
· Office room for Management/Owner’s Association.
· One Sub Station in the project.
(To be provide on request at reasonable additional cost)
· Plastic emulsion paint (PEP) on interior walls.
· Automatic door locks, special door locks.
· Cabinet in dining room and kitchen.
· Pelmets / curtain rails for doors and kitchen.
· Wall tiles in room and kitchen (Decorative)
· Interior design & Decorative ceiling works.
· Decorative light fittings.
· Bathtubs, Jacuzzi, in closer, hot water line or other provisions in toilets.
· High quality fittings Toilet and Kitchen.
· Non-slip / anti- slip floor tiles in toilets and kitchen.
· Anti – burglar alarm, calling bell.
· Any other request within technical possibility
The features applicable for different projects may vary
1.Wide roads for easy access
3.Pollution free environment
Over the years 3-I BL’s approach to Land development has evolved from A to Z to bring sophisticated, yet easy-to-use solutions which guarantee success. They deliver the best quality and increased resource efficiency following a few simple steps:
Their superior project management is based on deep customization of user-oriented solutions. They carefully assess customers’ project requirements to eliminate all possible risks and eventually find an optimum choice for them.
Their team works out for their customer a project scheme, including its estimate and timeline, and, as soon as they give us their approval of it, the actual development process begins. All team members have excellent credentials in their particular field of Land development, so customers may rest assured of their profound understanding and excellent implementation of IT.
They provide a streamlined continuous control over the entire project. This helps them reduce the amount of testing procedures as well as stay within the time and budget frames.
The total layout has been thoughtfully arranged to maximize advantages especially in relation to day light and cross ventilation throughout. Privacy has been emphasized by spreading the layout from end to end. The master and the second bedrooms have been located away from the living room.
Various interior designing and additional fittings & fixtures as per choice of allottee may be arranged at cost basis upon approval of the company.
3.12 Terms and Conditions for the Buyer
Interested client(s) will submit application in prescribed form supplied by the company duly signed by the investor(s) along with earnest money and other necessary documents. The company has the right to accept or reject any application without assigning any reason whatsoever. Investor(s) willing to pay one time payment or a large amount in one time will be given preference.
Allotment will be made on first come first served basis. On acceptance of application & earnest money, 3-I BL will issue an allotment letter to the applicant on receipt of which he/she shall start making payments as per the schedule of payments in the brochure. Buyers willing to make a one time payment will be entertained with substantial discount. Until the full payment of installments, buyer shall have no right to transfer the allotment to the third party.
Mode of Payment:
All payments shall be made by A/C Payee Cheque or Bank Draft or Pay-order in favor of “3-IBL”. Bangladeshis residing abroad may remit payments by TT or DD. Buyer must strictly follow the payment schedule. may issue reminders to the buyer for delay in payment beyond due date. The buyer is liable to pay a delay charge @ 0.1% per day on the amount of payment delayed. If the payment is delayed beyond 3 months3-IBL shall have the right to cancel the allotment. In such an event the amount paid by buyer shall be refunded after deducting the earnest money Taka 200,000/-(Two Lac) only and realizing the refund amount from the new investor(s).
The company has the right to accept or reject any application or allotment. It also reserves the right to make changes in the design both Architectural & Structural of the project should these become necessary. Limited changes in the specification and facilities may be made by 3-IBLfor overall interest of the project.
The possession of the apartment will be handed over on or before ——- except for the reasons beyond control of 3-IBLsuch as force Majuro, natural calamities, political disturbances, strikes, Acts of God or economic conditions, etc. This hand over will only be made after the full payment of installments.
Connection fee, security deposit for water, Gas & Electricity and incidental costs relating to these are not included in the price of apartment. Buyer will make these payments directly to the authorities concerned. Should expenditure on these accounts be incurred by 3-IBLbuyer will reimburse the same to the company proportionate to his/ her share.
All costs relating to transfer of ownership of the proportionate share of land will be borne by the allot tee on actual basis.
4.1 Findings from Queries
During the period of my internship I had some findings that are described here on the basis of Frequently Asked Questions (FAQs). I asked the Project Manager some questions. My queries, his answers, and my comments on the answers are given below:
1. Please name one of your Completed/Running Projects.
Ans. 3-I ALENA (Uttara: 10 Sector / Running Projects)
Comments: This the 3rd and running project of the company
2. Does it satisfy the characteristics of project such as objective, fund, time etc?
Yes, the 3-I ALENA project satisfies the characteristics of project which are
Cost Time Constraints
Life Cycle – Tasks
Comments: It is an ongoing project and till now it satisfies objective, fund, time etc. But the project manager should be careful of monitoring the project himself because many uncertainties are all around the project.
3. What is the objective of this project?
The project objective consists of the business benefits that an organization expects to achieve as a result of spending time and exerting effort to complete a project. A project objective is often referred to as the goal. The project objective serves as the marching orders or charge for the project leader and team. It provides information as to what, where, and when, as well as information about how much improvement or change needs to occur. At the completion of the project, any person should be able to refer back to the project objective and determine whether the project was successful. Project goals keep the focus on what is most important. However, on some teams these primary goals are lost in their meeting’s activities. Even if the progress is only inches rather than by huge leaps, the team must be pushing the project forward as quickly, safely, and reasonably as possible.
Objectives or Goals of 3-I ALENA Project
Finish the project within the scheduled timetable
The objective of 3-I ALENA project is be to finish the project within the timeframe agreed upon. This means the project manger must do everything possible to drive the project to the end and stay on time. He should remember to avoid guessing and incompetence in the planning of the scope so as to have a reasonable time schedule with which to work.
Finish the project within the scheduled budget.
Budgets are set by 3-I ALENA project teams while others inherit them. Whether they set the budget or inherit it, they need to make sure they are doing their best to track their expenditures and know where the money is going. When they will finish the project within the scheduled budget, they will demonstrate their ability in running the project responsibly.
Finish the project with the same level of quality.
Unfortunately, when projects lag behind, quality is often sacrificed in order to catch up. Project leaders sometimes feel that in order to pick up speed, pieces of the project will need to be downsized or cut completely. True, the project plan will have to be revised when problems arise, but the revision should never compromise quality. While it is important to keep deadlines, it is equally important to keep the project’s quality high throughout the project.
Finish the project within the specified guidelines.
3-I ALENA project makes sure they are meeting the customer’s needs. They must “wow” the customer! This can be done simply by finishing the project with the specifics the customer really wanted. The best way to solidify this is to verify their accomplishment by customer handoff and close down.
Do the best you can with what you have been given.
There is no such thing as a perfect project. Some projects run up against major odds and hurdles. For example, many recent projects in our country have endured major setbacks because of terror attacks, severe weather causing Power outages, or a nation at war. Even against these catastrophes, projects were remarkably turned around and back on track because of great project team leaders and teams. Project goals were met because they did their best with what came their way.
4. In your project management, do you follow the four phases of project management?
Four Phases of Project Management
According to the project management there is four phases exist. 3-I ALENA is going through with all the phases.
- First they define the project in which they set up their goals according to the desire of their clients. Like this 3-I ALENA project, the top management defined it. This stage called D1.
- After that at D2 stage they make the detail proposal for the project. They ensure the answer of these questions, like-
- How to conduct the project?
- Who will conduct the project activities?
- When will they have to deliver the project to the clients?
- In project right now is in D3 stage that means the project manager is implementing the project according to design criteria of the project.
- The 3-I ALENA project is the first project of the company and till now it is being implemented. So, the D4 stage will be completed.
Comments: It is clear that they are following the four phases of project and has already completing three of four phases and the last phase is still left. Every phase of this project is important for the company as it is the first project.
5. Projects have become complex- how do you respond?
Project Complexity is the extent to which a <href=”#Project”>project, or one of its <href=”#Components”>components, involves a large number of <href=”#Part”>parts, and/or a large number of people, to be coordinated and/or <href=”#Interface”>interfaced.
Successful land development requires the developer to go through a complex process of many interrelated parts. While land development is both an art and a science, the most important aspect of the process is its holistic nature. Each separate part influences the others and a viable solution must take into account market demands, budget constraints, and site conditions.
The process usually begins with an idea for the creation of a new development that will serve the needs of the local market. This new development should take its place as a good neighbor within the local community by acknowledging its relationship to adjacent land uses. It should also become economically viable for both its inhabitants and the developer. Therefore, the project manager said that to produce a successful idea for his project, he begins with a thorough understanding of what his potential buyer needs and wants in a new development.
Comments: As the projects have become complex for the reasons described above, there is another extra reason for the company and that is, the company is going to complete a project for the first time.
6. Do you follow any time planning like Gantt chart, Activity on arrow or anything else?
Ans. The Company follows only Gantt chart but no other A-O-A or A-O-N Diagram.
Comments: We think that the company is not willing to reveal their secrecy and that is why they are hiding their strategies.
7. Do you follow the Critical Path Analysis to complete the project in time?
Ans. As there is no A-O-A or A-O-N Diagram, there is no critical path to be needed.
8. What kind of cost plan is used: Bottom up, Top down or anything else?
Ans. The Top-down cost planning is used here as it is a real estate project and prices of lands are set before the project is completed.
Comments: It is a good decision to use top-down method as the price is fixed for the land and the project manager does not have the scope to increases cost and must use as needed. Cost is the main concern here, not the quality.
9. How do you estimate the cost of project- Experience, Forecasting etc?
Estimating is the process of forecasting a future result in terms of cost, based upon information available at the time. Many techniques, books and software packages exist to help with estimating project costs. Cost estimating is one of the most important steps in project management. A cost estimate establishes the base line of the project cost at different stages of development of the project. A cost estimate at a given stage of project development represents a prediction provided by the cost engineer or estimator on the basis of available data.
The costs of a 3-I ALENA land development facility to the owner include both the initial capital cost and the subsequent operation and maintenance costs. Each of these major cost categories consists of a number of cost components.
The capital cost for a 3-I ALENA land development project includes the expenses related to the initial establishment of the facility:
· Land acquisition, including assembly, holding and improvement
· Planning and feasibility studies
· Architectural and engineering design
· Construction, including materials, equipment and labor
· Field supervision of construction
· Construction financing
· Insurance and taxes during construction
· Owner’s general office overhead
· Equipment and furnishings not included in construction
· Inspection and testing
The operation and maintenance cost in subsequent years over the project life cycle includes the following expenses:
- Land rent, if applicable
- Operating staff
- Labor and material for maintenance and repairs
- Periodic renovations
- Insurance and taxes
- Financing costs
- Owner’s other expenses
The magnitude of each of these cost components depends on the nature, size and location of the project as well as the management organization, among many considerations.
The project manger of 3-I ALENA project follows the following rules will to ensure that an accurate and realistic estimate is produced.
He assumes that resources will only be productive for 80 percent of his time.
Resources working on multiple projects take longer to complete tasks because of time lost switching between them.
People are generally optimistic and often underestimate how long tasks will take.
Make use of other people’s experiences and his own.
Obtain an expert view.
Include management time in any estimate.
Always build in contingency for problem solving, meetings and other unexpected events.
Cost each task in the Work Breakdown Structure to arrive at a total, rather than trying to cost the project as a whole.
Agree a tolerance with his customer for additional work that is not yet defined.
Communicate any assumptions, exclusions or constraints he have to his customer.
Provide regular budget statements to his customer, copying his team, so that they are always aware of the current position.
Comments: There is no previous experience of the company as a whole, so they must be careful of estimating cash inflows and cash outflows and uncertainty involving these.
10. What kind of cost plan analysis you follow- payback method, discounted cash flow, IRR?
Ans. Discounted Cash Flow method is being used to plan analysis here as it gives almost corrects estimation and considers time value of money.
11. How do you identify the risk of project? What are the probable risks of this project? What is your preparation?
Several techniques are available that Project manager can employ to identify risks to his projects. He relies on regular team meetings, brainstorming sessions, reviews with stakeholders or experience from similar projects to identify risk of the project. Risks may result from high-level support, funding, resources, skills, hidden agendas and planning related issues.
What are the probable risks of this project?
Once he has identified the risks, he takes the following steps to overcome the situation:
Once he has identified his risks, he writes them down in a risk log. The log is used to monitor and track his risks. He makes his risk log visible to the project stakeholders so they are able to see risks that concern them being addressed. They may flag new risks he hasn’t identified. The risk log should evolve over time with potential risks removed and new ones added as the project progresses.
Once he has filled out his risk log, then he evaluates his risks. He grades the risks on two levels, likelihood and severity. Assign a value to both the likelihood and severity of high, medium or low. It follows that he should concentrate his efforts on the high / high and high / medium risks. He looks at the financial implication of each risk as an additional factor.
Once he understands where his risks are coming from and which he should addresses first, then he takes corrective actions. He thinks of two actions for each risk. He documents the actions (in his risk log) he intends to take to minimize the impact from each risk.
Finally, he monitors and controls his risks. Risk control involves keeping a risk management plan, a record of risks handled, and a description of his proposed corrective actions, costs involved and a risk escalation plan for when problems occur. He includes information about the risks in his progress reports. This keeps them visible and prevents any nasty shocks during the project.
Nobody likes to think about what may go wrong in a project, especially early on, but to overlook risk management means that we chance an unnecessary project failure.
Comments: Risk and uncertainty are all around this project as it is the first project of the company. A simple mistake can be very dangerous for the success of the project. So, steps should be taken carefully.
12. Do you prefer team work in project management? What do you do?
The project manager of 3-I ALENA project prefers team work in project management. He believes that Human Resource Management is needed everywhere, at home, at the office, and especially when working on a project with a group of people. Using human resources during a project requires getting the most effective use of the people involved with the project. This includes everyone associated with the project: sponsors, customers, partners, and individual contributors.
According to him, there are three major aspects of project human resource management: organizational planning, staff acquisition, and team development.