1.1 introduction to real estate project management

Trainings by Vidya Bhagwat

Chetan ThakrePMP, BE, MBA, PGDPC

Real Estate Project Management

Facilities Management Construction Management

Residential Commercial Retail Hospitality Industrial

Effective Project Management

Program Content

Module 1 Fundamentals Of Real Estate Project Management

Chapters1.1 Introduction To Real Estate Project Management

1.2 Project Management Process Groups & Knowledge Areas

Program ContentModule 2 Essential Knowledge Areas For Real Estate Project Management

Chapters

2.1 Integration Management : One View For Project Success

2.2 Scope Management : Delivering Promise2.3 Time Management : Managing Delays 2.4 Cost Management : Managing Money 2.5 Quality Management : Gateway For Customer Satisfaction2.6 HR Management : Managing People On Project2.7 Communication Management : Right Information At Right Time 2.8 Risk Management : Proactive Issue Management2.9 Procurement Management : Effective Supplier Management2.10 Stakeholder Management : Managing People Influencing Project


Chapter 1.1 Introduction To Real Estate Project Management

This chapter gives you basic concepts in project management. Understanding basic project management concepts is very important for real estate professionals as: Project management is the backbone of any real estate company. Hence you

are directly or indirectly responsible for project success in your organization. Project is series of several inter-dependent tasks. You might be responsible for

certain task(s) but your actions have wider implications on the project. You must clearly understand this many to many relationship.

Project management processes are different from construction management (technical processes). As a good real estate professional, you must have knowledge both areas.

This course material is based on PMI’s ® (Project Management International) best practice framework. This globally renowned and widely successful project management methodology. It will give you clear understanding all dimensions of real estate project management.

Objective of This Chapter

Project management practices in Indian Real Estate and Infrastructure sector are not well developed . Hence the project delivery performance is also low.

Land AcquisitionManaging Government Agencies

Cost Escalations

Labour Supply Issues

Improper Risk Management

Poor CommunicationGaps In Project Integration

Quality Issues

Some Of The Key Challenges In Indian Real Estate Sector Which Need To Be Taken Into Account

Forecasted Demand Of Project Management Professionals In Indian Construction Sector

Key Drivers For Professional Approach For Real Estate Project Management

Growing customer expectations

Industry competition and external pressure

Shift from unorganized to organized industry

Entry of foreign players

Inner Drive To Grow

Why You Must Know About Project Management Project management is the backbone of any real estate

company. Hence you are directly or indirectly responsible for project success in your organization.

Project is series of several inter-dependent tasks. You might be responsible for certain task(s) but your actions have wider implications on the project. You must clearly understand this many to many relationship.

Project management processes are different from construction management (technical processes). As a good real estate professional, you must have knowledge both areas.

This course material is based on PMI’s ® (Project Management International) best practice framework. This globally renowned and widely successful project management methodology. It will give you clear understanding all dimensions of real estate project management.

How This Study Material Is Going To Help YouThis program trains you for leadership in managing real estate and construction projects. You will have far superior project management knowledge than those who have not completed this course. Some of the key benefits : Effective project phasing to have better management control Developing work plan and managing resources (time, budget,

information and project staff) controlling quality Effective risk management (Risk identification and action plans

to mitigate risks) Effective allocation of responsibilities and monitoring work Effective site organization and administration Effective people management and managing team dynamics


Chapter 1.2

Introduction To Real Estate Project Management


What Is Project ?

Project is a temporary endeavour undertaken to create a unique product or service.

• Example : construction of building, construction of fencing ,

installation of facilities management .

• But maintenance work for the building or facilities

management is not project but called operations

management


The temporary nature indicate that a project has definite

beginning and end. Hence meeting dead lines is extremely

important for project success

The end is reached when the project objectives are

achieved or when the project is terminated

Temporary dose not necessarily mean that the project is

short. Duration of project depends on scope and complexity

Temporary dose not refer to product , service or result

created by project.

The project creates unique product, service or result which

may be tangible or intangible. Hence understanding

requirements for each project are important


Project

Projects To attain its objectives and terminate Start and end date

Operations To sustain the business Ongoing

ExampleConstruction of new building

Example Selling apartments in the building

Strategic Management

Project Management Operational Management

Acquire tools for creation & augmentation of organization value. Bestow tools to worthy

persons to generate profit

Create Desired Value For The Organization Use created value to generate profit & revenue

Three Main Functions In An Organization

Real Estate Project Management is the application of knowledge, skills, tools and techniques to execute projects effectively and efficiently to meet both process and product requirements.

Example of project management activities– Identifying structural requirements– Meeting promised quality standards– Managing relation with owners– Managing compelling project constraints

What Is Real Estate Project Management

Civil Engineer plays pivotal role in designing , structural decision making and construction. Some of the key responsibilities of civil engineer are mentioned below but not limited to :

Understanding the site topography and positioning the building on the site

Planning the routing and the site drainage, access roads and utility connections

Understanding the local geology and soil conditions, including the location of the water table

Selecting and designing a foundation system and the rock or soil layer on which the building will be founded

Role Of Civil Engineer In Real Estate Project

Selecting a structural system that is compatible with the building architecture and designing it to be capable of resisting all the occupancy and environmental loads (snow, earthquake, wind, etc.). This includes the selection and the design of a floor system and may also include the design of the building envelope, or the separation between the interior and the exterior environments of a building. The structural system must also be compatible with the other engineered systems in the building (e.g. HVAC, building envelope)

Once the design is finalized and approved, the next step is to define the specifications of all the materials used in the building, prepare a quantity take-off, and prepare an estimate of the construction cost

The plans and other technical documents serve as the basis for conducting the bidding process and the selection of a contractor and possibly, specialty subcontractors.


Civil engineers are also involved in the planning, scheduling and inspection of construction, including testing and interpretation of tests. They may also be involved in the site layout and the selection of construction methods. Construction safety is also one of their concerns

The architectural design, design of engineering systems and possibly landscaping is the role of other professionals, such as architects, mechanical engineers, fire protection engineers, electrical engineers, lighting specialists, acoustics specialists, etc.

Civil Engineer Plays Very Critical Role In Real Estate Project Management


Knowledge : refers to what project manager knows about project management and real estate product management

Performance : refers to what project manager is able to do or accomplish while applying project management knowledge

Personal : refers to how project manager behaves when performing the project related activities includes attitudes, core personality characteristics etc

Interpersonal skills : refers to project manager’s ability to communicate and manage other stake holders

Project Management Skills

Does Project Size Matter

Project Management Small companies managing one or few independent projects at a time. Example – Construction of single building

Program Management is the process of managing several related projects, often with the intention of improving an organization's performance

The action related to these interdependencies may include• Resolving resource constraints• Aligning organizational / strategic direction• Resolving issues and change management

Program Management

Program Management

Example - Multiple Projects In A Township"Live the dream“ – DSK Dream City

Portfolio refers to projects, programs , sub portfolios and operations managed as a group to achieve strategic objectives.

The projects and programs or projects of a portfolio may not necessarily interdependent or directly related.

Focuses on ensuring that projects and programs are reviewed to prioritize resource allocation and that the management of portfolio is consistent with and aligned to organizational strategies

.

Portfolio Management

Portfolio Management Example - Company Projects Under Various Categories i.e. Residential, Commercial, Industrial , FM etc “Highest quality standards for project execution, materials and services, collaborates only with the best-in-class associate” - Godrej Properties

The project management office is a management structure that standardizes the project related governance processes and facilitate sharing of resources , methodologies, tools and techniques.

The primary function may include but not limited to

• Managing all shared resources

• Identify and developing project management methodology, best practices and standards

• Coaching, mentoring, training

• Coordinate communication across projects

• Role : supportive or controlling or directive

Project Management Office

The difference in the role of project managers and PMO includes following

The project manager focuses on specified project objectives while PMO manages major program scope changes

The project manager controls the assigned resources for the project, while the PMO optimizes the use of shared resources

The project manager manages constraints of individual project, while the PMO manages interdependencies among projects at the enterprise level

Portfolios, Programs And Projects

PMO

Project Governance is an oversight function that is aligned with organization’s governance model and that encompasses the project life cycle. It provides framework to project manager and team with structure, processes, decision making model and tools for managing the project.

Example : Company which deliver very high end premium projects will need to make sure that all activities starting from contacting customer, quality of construction up to delivery of the property to customer must follow same high class standards

Importance Of Project Governance

Project governance framework includes Success and deliverable acceptance criteria Process to identify , escalate & resolve the issues Relationship among project team & stakeholders Project organization chart that with project roles Processes &procedures for communication Project decision making processes Guidelines for aligning project governance and organizational

strategy Project life cycle approach

Project Governance

Organizational Influences On Project Management

As projects are done by a group in the organization and for the organization, naturally organization influences projects. Ability of project team to deliver project successfully is influence by four factors


Organizational Cultures And Style

Organizational structures

Enterprise Environmental Factors (EEFs)

Organizational process assets (OPAs)

Organizational Cultures And Styles Shared visions, mission, values & beliefs Regulations, policies, methods, and procedures; Motivation and reward systems Risk tolerance View of leadership, hierarchy & authority Code of conduct, work ethic, and work hours; and Operating environments.

• Organizational Communications

PM Authority Resource Availability

Project Budget Managed By

PM Role PM Admin Staff

Little Or None Functional Mgr Part Time

Organizational Structure : Functional




Little Or None Functional Mgr Part Time

Organizational Structure : Weak Matrix




Low To Moderate Mixed Full Time Part Time

Organizational Structure : Balanced Matrix




Moderate To High Project Mgr Full Time

Organizational Structure : Strong Matrix




High To Almost Total Project Mgr Full Time

Organizational Structure : Projectised

EEF refers to condition not under the control of project team, that influence, constrain or direct the project. EEF are considered as inputs in most of the planning processes.

• Internal or External

• positive or negative influence on the outcome

Enterprise Environmental Factors (EEFs)

These include The culture, structure, and processes All industry and/or government standards Company or organization infrastructure Human resource guidelines and policy. Authorization systems, policies, and guidelines. Market and overall economic conditions. Risk tolerance of stakeholders. Political climate. The communications channels Project management information systems

Enterprise Environmental Factors

Organizational process assets (OPA)are the plans , processes, policies, procedures and knowledge bases used by performing organization.

Processes And Procedures

Corporate Knowledge Base

Organizational Process Assets

OPAs are often updated for future projects and also in the current projects. Whereas it is very difficult to change EEF during the course of your project.

Hence you use OPAs to improve the management of your project. You manage project within the constraint and guidelines established by the EEFs

Organizational Process Assets

Project life cycle is the series of phases that the project passes through from its initiation to its closure.

Each project may be divided into many phases to improve management control.

Collectively, the project phases are known as the project life cycle.

Usually they are sequential. These are unique to the industries Each phase is marked by completion of one or more

deliverables. Phase-end reviews are called phase exits, stage gates, or kill points.

Project Life Cycle And Project Phases

Each project may be divided into many phases to improve management control.

These are unique to the industries

Phase To Phase Relationships : Sequential

Phase To Phase Relationships : Overlapping

The ability to influence the final characteristics of the project’s product without significantly impacting cost is highest at the start and decreases as the project progresses

Predictive Life Cycle (Fully Plan Driven) : In this case project scope, time and cost required to deliver the scope are determined as early in the project life cycle as practically possible.

Project Life Cycle And Types Of Project Life Cycle

• Iterative And Incremental Life Cycle : Iterative life cycles are one in which project phases (also called iterations) intentionally repeat one or more project activities as the project team’s understanding of the product increases.

Project Life Cycle And Project PhasesTypes Of Project Life Cycle

• Adaptive Life Cycle ( Change Driven Or Agile Methods) : Intended to respond to high level of change and ongoing stakeholder involvement. Adaptive method is also iterative an incremental but differs in that the iterations are vary rapid (usually within duration of 2 to 4 weeks) and are fixed in time and cost. Adaptive projects generally perform small incremental improvements that will deliver value to stakeholders

Project Life Cycle And Project PhasesTypes Of Project Life Cycle

1.1 introduction to real estate project management

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