Q.1-What phase of the project management cycle should the decisions of the contract type and construction be made?

What are the pre requisites of making these two decisions? Project management cycle has six phases discussing below from these phases both decisions should be taken under the second phase of project management cycle because first we take initiative and after approval of the project we need to plan to achieve selected targets for this both decision are taken under the phase of planning here we decide what is the contract type, who is the contractor, how to manage the project time, feasibility studies, planning, designing, tender documentation, valuation, construction supervision, cost, development etc.

Project Management Cycle

The Project Management phases follow a cyclical approach throughout the life of the project. The cycle represents a continuous process in which each phase provides the foundation for the next. For example, during implementation the monitoring phase provides inputs and changes to the original design which then modifies the implementation plans. These cyclic nature among the design, implement and monitor phases is repeated throughout the life of the project. Initiation This phase is where an idea or a proposal is authorized and funded as a project. It may include some initial planning and estimating to clarify its objective and scope. Usually projects are started by an organization in the form of a proposal or they are initiated by a donor agency by a competitive bidding process or a cooperative agreement. Planning Once the proposal is accepted and funds have been approved the project is finally ready to start. The first step is the development of all project plans, this phase includes two distinct

components; the development of plans that are required as part of the proposal core planning, and the plans to manage the implementation of the project facilitating planning. Implementation Implementation includes taking all necessary actions to ensure the activities in the project plan are completed and the outputs of the plan are produced. Implementation occurs once the final project plans have been approved by the organization and/or the donor agency. Monitoring Monitoring is about measuring the progress of a project against its objectives, looking at deviations from the plan and taking corrective steps to put the project back on track. Monitoring runs across all project phases of the project life cycle. Traditionally the focus is on monitoring the four project constraints of scope, schedule, budget and quality. Adapting This phase refers to the process by which the project manager adapts its project management methods and determines what works best for the project. It also refers to the changes that need to be incorporated in the original processes, approaches, strategies and methods planned to deliver the project interventions. Closing The closing phase of the project is when the project has achieved the planned objectives and all deliverables have been produced. There could be instances that a project is closed before all deliverables have been completed, this could be caused by changes in organizational strategies, unavailability of funds or security conditions that make project work impossible. What are the pre requisites of making these two decisions?

Before selecting type of contract and construction procedure we need to address following things the success of the project management depends on these dimensions these are the pre-requisites of making above mention decisions through these we should know what actually we need to address before taking any decisions. Process The development activities defined in the policies and procedures and the roles and responsibilities required in managing development projects, these include government and donor regulations which heavily influence the project. Processes determine the work that needs to be accomplished which drives the requirements for people skills. People The skills and capabilities of the people in charge of managing the project, who need to follow the processes and procedures to ensure quality of the services provided by the organization. The people component is influenced by the compensation and values of the organization and by the external labor market that sets conditions to find qualified staff. Tools The techniques and devices selected by the organizations with the aim to facilitate the management of the project, meet its objectives and facilitate its contractual obligations. Among the tools are techniques to control budgets, track project progress and evaluate performance. Tools include the technology available to manage the information the project generates and improve its analysis to allow the project to make the right decisions. Q.2-Considering all the contract types discussed in the case what contract type would you recommend to PTIB? What were risk associated with each type? Scope of ASTP is defined in this project from project management cycle planning phase should decide the contract type and construction be made in this case PTIB follow PMBOK to identify which type of contract is sufficient for this project three options according to this given in this case as below; Option 1: Fixed Price Contract Option 2: Cost reimbursable Option 3: Time and Material

We must choose the option 1: Fixed price contract for this project because this option is used only when the project scope, business requirements, activities, cost, technical specification and engineering designs had to be clearly defined and this project we have great focus on it. Rest two options of contracts are used when scope of the project is not precisely defined and scope of project is not clearly defined simultaneously.

What were risk associated with each type? Option 1: Fixed Price Contract In case of undefined and not professional administrator contractor may filed claim against PTIB that would increase the total cost of the project. Project scope, business requirements, activities costs, technical specification and engineering drawings had to be clearly defined in this type any misconduct could change the whole theme of the project

Option 2: Cost reimbursable PITB pay all the actual cost and pre determined fee for contractor's profit to the contractor If Scope of the project needed to be alter at later stage it could be done under this type and contractor take benefits because he is not responsible for the cost above the ceiling price.

Option 3: Time and Material This is used when scope of the project is not cleared here we are not able to use it. It is a combination of both contract fixed and reimbursed it would be most risky for both the parties

Q.3- Considering the contractor options discussed in the case, what type of contractor would you recommend to PTIB? and why? In this case these are the following contractor type mentioned below; Pakistani contractor A Pakistani contractor with necessary financial strength and experience of construction projects in Pakistan especially complex construction projects for example convention centre in Islamabad International Contractor An international contractor having necessary financial strength and proven experience in high rise and high technology building it was another option to PTIB. Joint Venture of Pakistani Contractor with International Contractor A Pakistani contractor with international contractor joint venture partner having necessary financial strength and experience in high rise and high technology building.

According to the data given by the PTIB Joint venture or partnership firms are not eligible for this tender. Only those companies which are validly registered with sales tax and income tax departments and having sound financial strengths can participate. Moreover data given at PTIB website tell us ASTP is an opportunity through this we attract Foreign Direct investment in Pakistan So I would like to recommend international contractor for this project because this option is least risky although it required more time for preparation of documents but according to me it is a first step that move us towards foreign direct investment also international contractor would bring latest construction technology and resources and it would be ideal for us. Reference: http://pitb.gov.pk/sites/pitb.gov.pk/files/Tender_Doc_Procurement_of_Services_for_Deploymen t_of_CSP_for_CDGL_29112012.pdf Data take by the following websites tell us PTIB select Chinese Contractors for this project mentioned name at given websites : "China Construction Company" Designed by: Jurong International http://www.urbanpk.com/forums/index.php/topic/300-lahore-arfa-software-technology-parkastp-punjab-technology-univesity-ptu/ http://topstars.com.pk/building-of-arfa-software-technology-park-lahore/ Q.4- What could be the implications of these two decisions( contract type and contractor) now and at a later stage? I recommend fixed type of contract as well as international contractor for this project to PTIB, it would be beneficial because of the followings; International contractor would have to agree with firm fixed price according to the scope of the project International contractor would not able to any change in contract until the change in scope of the project In this contract financial incentives would be tied in order to achieve certain tasks Before starting work PTIB clearly defines task to the contractor and he would be agreed on it Targets and milestones would be clearly define so contractor is not able to make any changes in it

Price of the contract would be define and any cost above the defined price paid by the contractor he is responsible for that. This type of contract safe both parties from influences of external forces that are not in their control. In this contract type both parties have consensus or mutual understanding on financial, economical and material adjustments. International contractor bring new and latest technology with them to achieve this target. It also attract international investor to invest, it increases the opportunity of foreign direct investment to come in Pakistan. It provide us latest resources to build a high rise and high technology building.

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