Interior Project Management

Unit I
Project planning and project scheduling and project controlling, role of decision in project
management, method of planning and programming, human aspects of project management, work
breakdown structure, life cycle of a project, and disadvantages of traditional management system
Event, activity, dummy, network rules, graphical guidelines for network, numbering of events

1.1) Objective

At the end of this chapter, students can acquire knowledge about the following

● Project Scheduling
● Project Planning
● Project Management
● Networking

1.2) CONTENT:
1.2.1 Project planning

Project planning is a discipline addressing how to complete a project in a certain timeframe,

usually with defined stages and designated resources. One view of project planning divides
the activity into these steps:

● setting measurable objectives

● identifying deliverables
● scheduling
● planning task

Project planning is important at every phase of a project. It lays out the basics of a
project, including the following:

● scope
● objectives
● goals
● schedule
Planning enables project managers to turn an intangible idea into reality. Key purposes of
planning include the following:

● facilitate communication and provide a central source of information for project

personnel;
● help the project sponsor and other key stakeholders know what is required;
● identify who will perform certain tasks, and when and how those tasks will
happen;
● facilitate project management and control as the project progresses;
● enable effective monitoring and control of a project;
● manage project risk; and
● generate feedback useful for the next project planning phase.

1.2.2. Project Scheduling :

Scheduling in project management is the listing of activities, deliverables, and milestones
within a project. A schedule also usually includes a planned start and finish date, duration,
and resources assigned to each activity. Effective project scheduling is a critical component
of successful time management.

There are three main types of schedules:

1.Master project schedule: A master schedule tends to be a simplified list of tasks with a
timeline or project calendar.

2Milestone schedule or summary schedule: This type of schedule tracks major milestones
and key deliverables, but not every task required to complete the project.

3.A detailed project schedule: This is the most thorough project schedule, as it identifies
and tracks every project activity. If you have a complex, large, or lengthy project, it’s
important to have a detailed project schedule to help track everything.

The most common form of project schedule is a Gantt chart. Both a milestone schedule and a

detailed project schedule can be created as a Gantt chart. When choosing a scheduling

software, look for tools that allow you to create different views from the same schedule. If

you create a detailed schedule with milestones as a Gantt Chart, make sure it can be

summarized up to that level for a simpler view that can be easily shared with your team or

stakeholders. This gives you the ability to present the same schedule in different formats

depending on the level of detail required and the target audience.

1.2.3. Project controlling and Project Management:

Controlling is essentially tracking and managing the core project management elements of
scope, quality, time and cost. The Project Management Body of Knowledge (PMBOK®
Guide) identifies the core controlling processes as:

• Integration change control

• Scope change control and scope verification

• Schedule control

• Risk monitoring and control

• Quality control • Cost control and

• Project progression and performance reporting.

Project Control Techniques The following techniques can be implemented and used to
manage and control a project's design and construction from initiation to successful
completion.

• Small work chunks or small tasks— It is always advisable to break a big project into
smaller chunks of tasks to verify the progress. From a control perspective, if your work
packages are scheduled to complete within one reporting periods, it is much easier to detect a
delayed or troubled task. With earlier notice, you are more likely to resolve the variance and
protect the project's critical success factors.

• Baselines— A fundamental control principle is to first, establish a baseline. This is

generally applied to the critical success factors of schedule and budget, but can be applied
equally as well to product-oriented aspects of the project, especially requirements. Then,
measure and report performance against the baseline and maintain it.

• Status meetings— Consistent and regular status meetings help to keep everyone honest,
accountable, and on their toes—especially if work assignments are small and have clear
completion criteria. In addition, status meetings are powerful tools for improving project
communications and managing expectations.

• Completion criteria— This starts during project definition with defining the acceptance
criteria for the project, and it continues for each deliverable and work assignment.
Understanding the completion criteria up front increases productivity and avoids many of the
issues associated with status reporting on work tasks.
• Reviews— Reviews are a key technique for ensuring quality and managing expectations on
project deliverables, and they can take many forms. The principle here is to plan for the
review-feedback-correction cycle on most, if not all, of your key deliverables. Common
examples of reviews are process reviews, design reviews, audits, walkthroughs and testing.

• Milestones and checkpoints— A key feature of most proven project methodologies is the
use of pre-defined milestones and checkpoints. These markers are important points to stop,
report progress, review key issues, confirm that everyone is still on-board, and verify that the
project should proceed with it's mission. Besides being a powerful expectations management
tool, these pre-defined points allow project sponsors and senior management to evaluate their
project investments along the way, and if warranted, redirect valuable resources from a
troubled project to more promising pursuits.

• Track requirements— A technique to help control both scope and expectations is the use of
a requirements traceability matrix. The traceability matrix provides a documented link
between the original set of approved requirements, any interim deliverable, and the final
work product. This technique helps maintain the visibility of each original requirement and
provides a natural barrier for introducing any new feature along the way.

• Formal sign-offs— Formal sign-offs are a key aspect of change control management. The
formal record of review and acceptance of a given deliverable helps to keep expectations
aligned and minimize potential disputes. Most importantly, the use of a formal signoff acts as
an extra incentive to make sure the appropriate stakeholders are actively engaged in the work
of the project and thereby satisfied.

• Independent QA Audit— The use of an independent & dedicated quality assurance audit is
another specific example of the review technique mentioned earlier, and is often a component
of project quality assurance plans.

• V method— The "V method" is a term used for a common validation and verification
approach that ensures that there is validation and verification step for every deliverable and
interim deliverable created. The left side of "V" notes each targeted deliverable and the right
side of the "V" lists the verification method to be used for each deliverable directly across.

With all these techniques and more if necessary, it is very important to put the correct amount
of emphasis on project control, it can be the difference between success and failure of any
project.

1.2.4 Project Time Management Processes

In construction, all projects are time bound. The project time objective specifies the project
completion time. Time is the essence of all construction projects. Time delays attract
penalties while early completion can earn rewards. However, in spite of one’s best efforts to
complete a project on time, changes from the original estimated project time plan sometimes
do occur. A plan, prepared well before the commencement of construction on a project, can
be instrumental in formulating directions, coordinating functions, setting targets, forecasting
resources, budgeting costs, controlling performance and motivating people. It is for this
reason that after the scope is defined, the project planning starts with time planning as the
first step.

1.2.5.NETWORKING:

Networking is the exchange of information and ideas among people with a common
profession or special interest, usually in an informal social setting. Networking often begins
with a single point of common ground.Professionals use networking to expand their circles of
acquaintances, find out about job opportunities in their fields, and increase their awareness of
news and trends in their fields or the greater world.

1.3) REVISION POINTS

1.3.1.Project Phases:

● Initiation defines project goals and objectives. It also is when feasibility is

considered, along with how to measure project objectives.
● Planning sets out the project scope. It establishes what tasks need to get done and
who will do them.
● Execution is when the deliverables are created. This is the longest phase of a
project. During execution, the plan is set into motion and augmented, if necessary.
● Monitoring and management occur during the execution phase and may be
considered part of the same step. This phase ensures that the project is going
according to plan.
● Closing and review is the final Contracts are closed out and the final deliverables
are given to the client. Successes and failures are evaluated.

1.4) IN-TEXT QUESTIONS:

1.Why is project planning important?

2.What are the components of a project plan?

 1.5) SUMMARY:

● Scope. The scope determines what a project team will and will not do. It takes the
team's vision, what stakeholders want and the customer's requirements and then
determines what's possible. As part of defining the project scope, the project
manager must set performance goals.
● Budget. Project managers look at what manpower and other resources will be
required to meet the project goals to estimate the project's cost.
● Timeline. This reveals the length of time expected to complete each phase of the
project and includes a schedule of milestones that will be met.

1.6) TERMINAL EXERCISES:

● Illustrate the methods to create a project plan.

1.7) ASSIGNMENTS:
● Create a Schedule for a small scale project of area around 500 sq.ft

1.8) REFERENCE BOOKS:

● Dr B C Punmia et al Project planning and control with PERT and CPM,
Laxmi Publications
● National Building code of India 2005 - Bureau of Indian Standards
● MChakraborti, Estimation, Costing, Specification and Valuation in
Civil Engineering 4. Dutta, Estimating and Costing, S Dutta and Co,
Lucknow 1983

1.9) LEARNING ACTIVITIES:

1.10) KEYWORDS:
● Stakeholders. Stakeholders include anyone with an interest in the project.
They can include the customer or end user, members of the project team,
other people in the organization the project will affect and outside
organizations or individuals with an interest.
 ● Prioritize tasks. List tasks necessary to meet goals and prioritize them
based on importance and interdependencies. A Gantt chart can be helpful
for mapping project dependencies.

UNIT- II ANALYSIS AND OPTIMIZATION

Critical Path Method And Pert Analysis; Project cost, indirect project cost, direct project
cost, slope of the direct cost curve, total project cost and optimum duration, contracting the
network for cost optimization, steps in cost-time optimization

2.1) Objective

At the end of this chapter, students can acquire knowledge about the following

● Critical Path
● PERT
● Project Cost
● Network Crashing

2.1) CONTENT:

2.1.1 CRITICAL PATH METHOD AND PERT ANALYSIS;

Critical Path Analysis and PERT are powerful tools that help you to schedule and manage
complex projects.
They were developed in the 1950s to control large defense and technology projects, and
have been used routinely since then. As with Gantt Charts , Critical Path Analysis (CPA) or
the Critical Path Method (CPM) helps you to plan all tasks that must be completed as part
of a project.

They act as the basis both for preparation of a schedule, and of resource planning. During
management of a project, they allow you to monitor achievement of project goals. They
help you to see where remedial action needs to be taken to get a project back on course.

Within a project it is likely that you will display your final project plan as a Gantt Chart
(using Microsoft Project or other software for projects of medium complexity or an excel
spreadsheet for projects of low complexity).The benefit of using CPA within the planning
process is to help you develop and test your plan to ensure that it is robust. Critical Path
Analysis formally identifies tasks which must be completed on time for the whole project
to be completed on time. It also identifies which tasks can be delayed if resources need to
be reallocated to catch up on missed or overrunning tasks. The disadvantage of CPA, if you
use it as the technique by which your project plans are communicated and managed
against, is that the relation of tasks to time is not as immediately obvious as with Gantt
Charts. This can make them more difficult to understand.

A further benefit of Critical Path Analysis is that it helps you to identify the minimum
length of time needed to complete a project. Where you need to run an accelerated
project, it helps you to identify which project steps you should accelerate to complete the
project within the available time.

HOW TO USE THE TOOL

As with Gantt Charts, the essential concept behind Critical Path Analysis is that you
cannot start some activities until others are finished. These activities need to be
completed in a sequence, with each stage being more-or-less completed before the next
stage can begin. These are "sequential" activities.
Other activities are not dependent on completion of any other tasks. You can do these at
any time before or after a particular stage is reached. These are non-dependent or
"parallel" tasks.

DRAWING A CRITICAL PATH ANALYSIS CHART

Use the following steps to draw a CPA Chart:

Step 1. List All Activities in the Plan
For each activity, show the earliest start date, estimated length of time it will take, and
whether it is parallel or sequential. If tasks are sequential, show which stage they depend on.
For the project example used here, you will end up with the same task list as explained in the
article on Gantt Charts (we will use the same example as with Gantt Charts to compare the
two techniques). The chart is repeated in figure 1 below:
Figure 1. Task List: Planning a custom-written computer project

Earliest Dependent
Task Length Type
start on...

A. High-level analysis. Week 0 1 week Sequential

B. Selection of
Week 1 1 day Sequential A
hardware platform.
C. Installation and
commissioning of Week 1.2 2 weeks Parallel B
hardware.

D. Detailed analysis of
Week 1 2 weeks Sequential A
core modules.

E. Detailed analysis of
Week 3 2 weeks Sequential D
supporting modules.

F. Programming of core
Week 3 2 weeks Sequential D
modules.

G. Programming of
Week 5 3 weeks Sequential E
supporting modules.

H. Quality assurance of
Week 5 1 week Sequential F
core modules.

I. Quality assurance of
Week 8 1 week Sequential G
supporting modules.

J.Core module training. Week 6 1 day Parallel C,H

K. Development and
QA of accounting Week 5 1 week Parallel E
reporting.

L. Development and
QA of management Week 5 1 week Parallel E
reporting.
 M. Development of
Management Week 6 1 week Sequential L
Information System.

N. Detailed training. Week 9 1 week Sequential I, J, K, M

Step 2. Plot the Activities as a Circle and Arrow Diagram

Critical Path Analyses are presented using circle and arrow diagrams.
In these, circles show events within the project, such as the start and finish of tasks. The
number shown in the left-hand half of the circle allows you to identify each one easily.
Circles are sometimes known as nodes.
An arrow running between two event circles shows the activity needed to complete that task.
A description of the task is written underneath the arrow. The length of the task is shown
above it. By convention, all arrows run left to right. Arrows are also sometimes called arcs.

This shows the start event (circle 1), and the completion of the "High-Level Analysis" task
(circle 2). The arrow between them shows the activity of carrying out the High-Level
Analysis. This activity should take 1 week.
Where one activity cannot start until another has been completed, we start the arrow for the
dependent activity at the completion event circle of the previous activity. An example of this
is shown below:

Here the activities of "Select Hardware" and "Core Module Analysis" cannot be started until
High Level Analysis has been completed. This diagram also brings out a number of other
important points:
Within Critical Path Analysis, we refer to activities by the numbers in the circles at each end.
For example, the task "Core Module Analysis" would be called activity 2 to 3. "Select
Hardware" would be activity 2 to 9.
Activities are not drawn to scale. In the diagram above, activities are 1 week long, 2 weeks
long, and 1 day long. Arrows in this case are all the same length.
In the example above, you can see a second number in the top, right hand quadrant of each
circle. This shows the earliest start time for the following activity. It is conventional to start at
0. Here units are whole weeks.
Here activity 6 to 7 cannot start until the other four activities (11 to 6, 5 to 6, 4 to 6, and 8 to
6) have been completed.

Figure 5: Full Critical Path Diagram

This shows all the activities that will take place as part of the project. Notice that each event
circle also has a figure in the bottom, right hand quadrant. This shows the latest finish time
that's permissible for the preceeding activity if the project is to be completed in the minimum
time possible. You can calculate this by starting at the last event and working backwards. The
latest finish time of the preceeding event and the earliest start time of the following even will
be the same for circles on the critical path.
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You can see that event M can start any time between weeks 6 and 8. The timing of this event
is not critical. Events 1 to 2, 2 to 3, 3 to 4, 4 to 5, 5 to 6 and 6 to 7 must be started and
completed on time if the project is to be completed in 10 weeks. This is the "critical path" –
these activities must be very closely managed to ensure that activities are completed on time.
If jobs on the critical path slip, immediate action should be taken to get the project back on
schedule. Otherwise, completion of the whole project will slip.
"Crash Action"
You may find that you need to complete a project earlier than your Critical Path Analysis
says is possible. In this case, you need to re-plan your project.
You have a number of options and would need to assess the impact of each on the project’s
cost, quality and time required to complete it. For example, you could increase resource
available for each project activity to bring down time spent on each but the impact of some of
this would be insignificant and a more efficient way of doing this would be to look only at
activities on the critical path.
As an example, it may be necessary to complete the computer project in figure 5, in 8 weeks
rather than 10 weeks. In this case, you could look at using two analysts in activities 2 to 3 and
3 to 4. This would shorten the project by two weeks, but may raise the project cost – doubling
resources at any stage may only improve productivity by, say, 50 percent as additional time
may need to be spent getting the team members up to speed on what is required, coordinating
tasks split between them, integrating their contributions etc.
In some situations, shortening the original critical path of a project can lead to a different
series of activities becoming the critical path. For example, if activity 4 to 5 were reduced to
1 week, activities 4 to 8 and 8 to 6 would come onto the critical path.
As with Gantt Charts, in practice, project managers use software tools like Microsoft Project
to create CPA Charts. Not only do these make them easier to draw, they also make
modification of plans easier and provide facilities for monitoring progress against plans.
PERT (Program Evaluation and Review Technique)
PERT is a variation on Critical Path Analysis that takes a slightly more skeptical view of time
estimates made for each project stage. To use it, estimate the shortest possible time each
activity will take, the most likely length of time, and the longest time that might be taken if
the activity takes longer than expected.

2.1.2 Project Costs

There are many costs involved with project management. Project management is when an
organization assigns a team to lead a project or to achieve a certain goal. The total cost
incurred in carrying out a project can be classified by two different types of project costs:
direct cost vs indirect costs. Differentiating between the two types of cost in a project is vital
for a variety of reasons but is most used for project budgeting and business accounting.

Before an organization begins a project, they need to budget out how much it will cost to
finance the project. The organization can use this information to keep costs below the
budgeted areas. Budgeting for the various costs involved with a project will help any
organization to be efficient and to limit overspending. Budgeting can also assist in forecasting
for future costs that an organization may incur throughout the project. When a project is
complete, organizations can use the budget as research to plan future projects with similar
budgeted costs.

Direct costs vs indirect costs are also used in the project's accounting method. An
organization uses accounting to ensure a project is using resources efficiently as well as
producing results. Accounting can be used to help audit a company's project management
activities to see where there was overspending in areas there should not have been or even
target areas where more spending could occur. Accounting the types of project costs is also
important for financial reporting. The financial reporting can, in the form of reporting to the
company's leadership, show the financial status of an ongoing project. Financial reports,
especially when calculating for various costs, are vital for an organizations tax reporting.
Different costs have different accounting methods that any project management team needs to
be aware of when accounting.

Direct Cost

The direct cost definition in project management is an explicit cost incurred or spent on a
project. Direct costs are easily identifiable in a project because they are directly involved with
every level of activity in a project.

Direct Cost Examples

Common direct cost examples in project management are:

● Labor costs of wages of employees on project management team

● Contracted fees of labor involved in project
● Any raw resources consumed during project activities
● Travel expenses
● Supplies and materials needed in project
● Rent on equipment or office space including a company's headquarters

Indirect Cost

Indirect costs in project management include all the implicit costs of a project. Indirect costs
are also known as overhead costs or burden costs. Other terms associated with indirect, or
burden costs are factory overhead, manufacturing burden, indirect production costs, or labor
burden. Indirect costs are support costs not directly involved with a project's operations.

Indirect Cost Examples

Indirect costs examples mostly include administrative or other support expenses surrounding
a project.

● Financing consulting advice

● Rent on equipment or office space including a company's headquarters
● Research and development
● Operation expenses like utilities for power
● Salaries and benefits of administrative staff
● Financial fees accumulated for budget preparation and accounting
 ● Advertising project needs and recruiting staff

Slope of the direct cost curve

Cost Slope: The direct cost curve is a curve that can be approximated by a straight line,
depending upon the flatness of the curve. The slope of this straight is the cost slope. It is very
helpful in the project cost analysis

Total project cost and optimum duration

The project total time-cost relationship can be determined by adding up the direct cost and
indirect cost values together. The optimum project duration can be determined as the project
duration that results in the least project total cost.

2.1.3. Estimation of Project Completion Time:

There is uncertainty regarding the determination of exact time of completion of a project.
Time of execution of an activity is taken as expected time of completion of the activity. Total
project completion is determined, just like as C.RM., by adding the expected time of
completion of activities lying on critical path.

To measure uncertainty, probability of completion of project in scheduled time can be

determined by following the steps:

(1) Find expected completion time and variance of each activity

(2) Find the critical path and project completion time.

(3) Find variance of critical path as sum of the variance of all critical activities.

(4) Find standard deviation of project (σp) as square root of variance of critical path.
If project completion time is Te, it is required to find out the probability of completion of
project in time te.

Find probability that project will be completed by the time TE as

P = T’E – TE /σ

(5) See the value of area under normal distribution curve from table. This will give the area
under the curve from – to TE (A). To the relevant area that is from mid-point to TE value
subtract area (A) from 0.5.

(6) Multiply the subtracted area by 100 to know the relevant probability

2.1.4.Optimum duration
Most projects have a habit of running wildly out of control because most project managers do
not have a method of checking how long a project should run based on the total effort
involved in the project. Fortunately, there has been some thought done on this topic. The
optimum project duration (in elapsed months), is equal to 2.5 times the cube root of the total
project effort (in person months). This rule of thumb provides a reasonableness check of
total project duration as compared to total project effort.

Source
The source of this rule of thumb is Barry Boehm’s Basic COnstructive COst MOdel
(COCOMO).

Tips and Hints

COCOMO is intended for use on full life cycle development projects and does not lend itself
as well to individual phases, particularly if the nature of the work is specialized, as in the
front-end Concept Definition or EWAS stages.

2.1.5 Contracting the network for cost optimization

If network infrastructure is not your organization’s core competency or you have outsourced
the environment, you lack control of equipment and transport services and probably struggle
with complex pricing and non-standard billing. Worse yet, if your service provider owns
either all or components of the processes, procedures, staffing and tools, it limits the changes
you can make.

If that describes your environment, a network infrastructure cost optimization consultation

can help you drive infrastructure costs down, capture the network environment processes,
identify systemic issues and leverage best practices

2.1.6.COST OPTIMIZATION BY NETWORKING TOOLS

Critical Path Method

CPM networks are used for repetitive type projects or for the projects for which accurate
estimates of time for each activity can be made. This method is not suitable for research and
development projects as accurate time estimation is not possible. CPM is a deterministic
approach. CPM takes into account uncertainty or variation involved in a job at the planning
stage itself. In CPM, activity duration is considered more deterministic. In CPM, the process
of forwarding and backward pass calculation to find out the start and finish times, the floats,
the critical activities and the length of the critical path are adopted. CPM is a process of using
network analysis to identify those activities which are on critical path i.e. whether any delay
in the completion of these activities will cause a delay in project completion.

Programme Evaluation and Review Technique (PERT)

PERT was developed by U.S. Navy engineers while working on the Polaris Missile
Programme during 1957-58. PERT is used for planning and controlling the project involving
uncertainties. This technique is usually used for non-repetitive projects such as launching
satellites, research and development projects. Etc. in which correct times estimation for
various activities cannot be made due to lack of past data. PERT is an event-oriented
technique. This technique uses a network diagram consisting of events that must be
established to reach the project objective. More stress is given on time in this technique. The
uncertainties inactivity times are measured by using the following three-time estimates. (a)
The optimistic time estimate (b) The pessimistic time estimate (c) The most likely time
estimate • The optimistic time estimate: this is the shortest possible time in which an activity
can be completed under ideal conditions. Better than normal conditions are assumed to
prevail. • The pessimistic time estimate: this is the maximum time that would be required to
complete the activity. It represents the time it might take to complete a particular activity if
everything went wrong and abnormal situations are assumed to prevail. • The most likely
time estimate: this time estimate lies between the optimistic and pessimistic time estimate.
This is the most probable time which shows a situation where conditions are normal, things
are usual and there is nothing exciting
2.1.7.Network crashing
Crashing is the technique to use when fast-tracking has not saved enough time on schedule. It
is a technique in which resources are added to the project for the least cost possible. Cost and
schedule tradeoffs are analyzed to determine how to obtain the greatest amount of
compression for the least incremental cost. It is a method for shortening the project duration
by reducing the time of one or more critical activities to less than their normal time. It is
mainly used to reduce project duration. In this crashing, if time reduces then cost decreases.
There are four terms of Crashing (a) Nt-Normal time (b) Nc-Normal cost (c) Ct-Crashed time
(d) Cc-Crashed cost

Network crashing is a technique of cost optimization. In-network crashing decreasing of

duration is done up to an extent (below which it cannot be crash). and cost which is
corresponding to respective crashed duration is nothing but crashed cost. Crashing can be
achieved by either compromising in the technical specification (quality of work) or increasing
in the utilization of more resources. But the crashing network is generally based on the
increase in the use of resources and not by compromising in the quality of technical
specifications. While crashing the network from normal duration to crash duration we may
get a particular crash duration for which crash cost is minimum (optimum). This duration is
called optimum duration and corresponding cost as optimum cost. It can also be observed that
crashing below or above the optimum duration will give an increase in cost. Hence cost
optimization is minimum cost while crashing network from normal duration to crash
duration.

2.1.8.Steps in cost-time optimization

Optimization means making the best out of a situation or the resources available to you.
When you optimize something, you aim to maximize its potential and make it as useful as
possible.

An everyday example of optimization could be a sales representative planning an overseas

trip to meet with an important client. Before leaving, they could arrange to meet with other
clients on the same trip, or even research new sales leads in the area. This means they are
making the most of their own time. It also reduces the company’s expenses, which can
include airfare, accommodation, and meal costs.

So how do you define optimization in terms of business process management? This practice
is known as process optimization. Process optimization is an exercise that aims to streamline
operations within a project process, maximizing resource use and improving overall output. It
is a significant element of business decision-making and is used in many different project
management areas.

Why optimize processes?

When managing multiple processes, optimization is vital. It can be hard to keep track of
every business process, which is precisely why optimization is so important. It guarantees
that each one is working to its full potential.

Process optimization is also an integral part of Agile project management. The software
development process requires an iterative approach, whereby steps are repeated and
consistent tweaks are made. One example could be a video game development team that
regularly deploys bug fixes. This ensures that the software product is fully ready before it is
launched.

When you optimize project management processes, you're increasing the likelihood of a host
of benefits. These include:

Streamlined operations: A successful optimization plan can overhaul outdated, repetitive

practices and automate them to create a smarter system. It also provides a clearer view of
business processes by uniting all operations under a single solution.
Better resource management: By seeking ways to cut waste and maximize resources, project
teams will become far more efficient, saving time and money.

Reduced error: With constant optimization at every stage, teams can spot risk factors and
issues early on and rectify them before they escalate. Automation can also help reduce human
error and improve accountability.

Improved quality assurance: When teams consistently assess the performance of their project
deliverables and make regular changes to improve output, they will increase their quality
standards.

Customer satisfaction: A high-quality product or service is guaranteed to please customers

and encourage return business. This, in turn, will boost business profitability.

What are the challenges of process optimizations?

There are plenty of obstacles to process optimization.

One major challenge is that it can be resource-intensive. The main process optimization
techniques have numerous steps that need to be implemented, requiring data analysis, time,
and effort. However, as mentioned above, one of the overall goals of process optimization is
to make the most of project resources. Therefore, it could be argued that if team members
devote some effort to optimizing processes now, they will save a lot more time in the long
run.

Another challenge with process optimization is that some team members may be reluctant to
change. It can be difficult to convince people to alter their daily practices, especially if there
are no apparent disadvantages to them. In addition to employee pushback, there will also be a
teething period where people adapt to the new way of doing things. The key here is for
project managers to share their vision with the team early, highlighting the myriad advantages
of process optimization to get everyone on board.

Finally, there's another pitfall to be wary of: optimizing processes for optimization’s sake.
While it is important to identify areas for improvement and strive for new achievements, the
potential disruption caused by an ill-conceived process optimization plan can be highly
detrimental to a business. Project managers should conduct extensive research before
implementing any kind of process optimization and be confident that there is strong potential
for an improved outcome. Otherwise, it might be better to follow the old rule of: “If it isn’t
broke, don’t fix it.”

Process optimization methods and techniques

There are many process optimization techniques you can use to get you started. Here are
three examples:

Process mining: This is a group of techniques with a data science approach. Data is taken
from event logs to analyze what team members are doing in a company and what steps they
take to complete a task. This data can then be turned into insights, helping project managers
to spot any roadblocks and optimize their processes.

DMAIC: DMAIC is a data-focused method used in Six Sigma to improve processes. It stands
for Define, Measure, Analyze, Improve, and Control. These five stages combine to form a
cycle. First, customers are defined. Then, performance is measured, and the data is analyzed.
Finally, improvements are implemented and controlled to ensure the process remains in
optimal condition.

PDSA: PDSA is an acronym for Plan, Do, Study, Act. It uses a four-stage cyclical model to
improve quality and optimize business processes. Project managers will start by mapping
what achievements they want to accomplish. Next, they will test proposed changes on a small
scale. After this, they will study the results and determine if these changes were effective. If
so, they will implement the changes across the entire business process.

It's good practice for a project manager to take some time to research various process
optimization methods before deciding which one is most suited to their business.

Who should take charge of process optimization?

A project manager is responsible for initiating process optimization. It is their job to define
project processes before making a roadmap of what needs to be optimized. They will then put
their plan in action and monitor it to ensure it achieves its goals.

However, to ensure the best plan for process optimization, a project manager needs to consult
critical stakeholders to help them in their decision-making. These stakeholders could include
the chief operations officer, line manager, or other senior executives. This is to ensure that the
process optimization plan will be suitable for the relevant department. For example, there is
no sense in trying to optimize HR processes without valuable input from the person who
understands them best: the HR manager.

Customize your workspace: Make Wrike work for you with easy-to-configure features.
Create custom statuses, dashboards, and request forms that match your team processes.

Automate your workflows: Build automated workflows that eliminate time spent on
repetitive tasks and boost process efficiency.

Communicate in real time: Start with a communication plan template. Use @mentions to
notify team members of updates, collaborate with live editing features, add comments in
custom fields, and integrate your favorite messaging apps for optimal communication.

Create detailed reports: Data analysis is an essential part of process optimization. Design your
own reports with charts and graphs. Get project portfolio visibility at a glance and gain
insights for future planning.

Take a tour of Wrike’s business process management tools and sign up for a free two-week
trial to find out how you can kickstart your process optimization plans.define optimization
Physical Site Audits
A. Document physical network infrastructure inventory
B. Reconcile physical inventory with virtual inventory
C. Realize tactical savings and drive invalid costs out
D. “Right sizing” optimization recommendations with related savings
E. Potential savings 2.5M - $3.5M

Network Contract Audits

F. Deep network infrastructure contract audit to help realize immediate savings and
drive costs out of the infrastructure
G. Reduce infrastructure budget with technology discounts
H. Estimated project lengths 6-12 months
I. Contract Audit potential savings $2M – 3M

2.3) REVISION POINTS:

The time management processes identified above are the key steps to creating a project
schedule. However, keep these seven tips in mind to make sure your schedule is realistic.

​ 1.Get input from stakeholders: Don’t create your schedule in isolation. It’s
important to use your team and other stakeholders to identify tasks, resources,
dependencies, and durations.
​
​ 2.Reference past projects: Looking at previous projects with similar scope and
requirements can help create realistic estimates and ensure you haven’t forgotten any
tasks.
​
​ 3.Keep risk in mind: Identify and document any factors that pose a risk to staying on
schedule. This will help your risk management efforts.
​
​ 4.Consider any non-work time: For example, make sure vacations and holidays are
reflected in your schedule so that you’re not assuming people will be working when
they’re not.
​
​ 5.Define the critical path on your project: Identifying your project’s critical path
allows you to prioritize and allocate resources to the most important tasks in the
project.
​
​ 6.Record scheduling assumptions: Write down the logic behind your scheduling
predictions. For example, if you assume it will only take 10 hours to complete a task
because you have a senior engineer. Then, if you end up with a junior engineer, you
can understand and explain why it took twice as long as planned.
​
 ​ 7.Include project milestones: Milestones are events or markers that stand for an
important point in your project. They’re useful for creating a summary schedule,
reporting to executives, and identifying problems early.

2.4) IN-TEXT QUESTIONS:

1.What are the Benefits of project scheduling in project management?

2.How to do scheduling in project management?

2.5) SUMMARY:
● Many projects can benefit from project scheduling tools, or project scheduling
software that allows stakeholders to easily visualize their project scheduling process.
Which project scheduling software you choose depends on your project scheduling
methods, but you should ensure the ability to produce Gantt charts easily and
efficiently.
2.6) TERMINAL EXERCISES:
● Brief note on Analysis and Optimization.

2.7) ASSIGNMENTS:
● Create a Schedule for a Residential project of area around 1500 sq.ft

2.8) REFERENCE BOOKS:

● Dr B C Punmia et al Project planning and control with PERT and CPM,
Laxmi Publications
● National Building code of India 2005 - Bureau of Indian Standards
● MChakraborti, Estimation, Costing, Specification and Valuation in
Civil Engineering 4. Dutta, Estimating and Costing, S Dutta and Co,
Lucknow 1983

2.9) LEARNING ACTIVITIES:

2.10) KEYWORDS:

● Scope. The scope determines what a project team will and will not do. It
takes the team's vision, what stakeholders want and the customer's
requirements and then determines what's possible. As part of defining the
project scope, the project manager must set performance goals.
UNIT - III : PROJECT UPDATING AND ALLOCATION

When to update? Data required for updating, steps in the process of updating
Resource usage profile: Histogram, Resource smoothing and Resource leveling, computer
applications in project management.

3.1) OBJECTIVE:

AT THE END OF THIS CHAPTER STUDENTS CAN ACQUIRE KNOWLEDGE ABOUT THE FOLLOWING:

● Updating and Resource Usage

● Histogram

● Resource smoothing and Resource leveling

● Computer applications in project management

3.2.CONTENT:

3.2.1.Resource Allocations

Resource allocation, also known as resource scheduling, involves identifying and assigning
resources to various activities for a specific period. It also monitors the resource’s workload
throughout the project life cycle and reassigns them if necessary.

Types of Resources:
On an enterprise level, resources can be human and non-human. Some examples of resources
for the projects are:

Labor:
They constitute team members or employees and contingent staff with different skill sets and
form the backbone of any project.

Equipment/Tools:
It includes everything from software to hardware, depending on the organization’s type.
Facilities:
It comprises the environment needed for executing a project, such as a conference room or
office space.

Materials:
These are the consumables required to generate outputs. For example, office stationery, raw
materials to build a house.

Budget:
Finance needed to purchase any of the above resources.

3.2.2.Difference between ‘resource smoothing’ and ‘resource levelling’

Resource smoothing is used when the time constraint takes priority. The objective is to
complete the work by the required date while avoiding peaks and troughs of resource
demand. Resource leveling is used when limits on the availability of resources are
paramount. It simply answers the question ‘With the resources available, when will the work
be finished?’.

Few reusable resources are limitless, so the time schedule has to be adjusted to take into
account the limited availability of resources over time. There are two approaches to
reconciling resource limits and time constraints; resource smoothing (or time limited resource
scheduling) and resource levelling (or resource limited scheduling).

Resource smoothing is used when the time constraint takes priority. The objective is to
complete the work by the required date while avoiding peaks and troughs of resource
demand.

A smoothed resource profile will be achieved by delaying some work. This will remove some
flexibility from the schedule and its ability to deal with unavoidable delays, but the advantage
is usually a more efficient and cost-effective use of resources.

Resource leveling is used when limits on the availability of resources are paramount. It
simply answers the question ‘With the resources available, when will the work be finished?’
In many situations a mixture of levelling and smoothing may be required. This is particularly
true in the programme and portfolio dimensions.

3.2.3.Computer Applications in Project Management (or) Project management

Softwares

Project management software for interior designers helps design teams plan, manage, and
execute their projects from start to finish.

Ranging from managing vendors to tracking billable time — interior design project
management software meets the needs of an interior design business.

As a result, a design manager can efficiently manage multiple projects from start to finish and
keep track of project progress along the way.

How essential is interior design project management software?

At this point, you might be questioning whether you need to use project management
software as an interior designer.

The answer is no. You don’t need it, and it’s not essential.

But it’s certainly a worthwhile investment.

Why? Because as an interior designer, you’ve probably got a pretty hectic schedule:

● You have multiple projects on the go at the same time

● You constantly liaise with contractors, suppliers, and vendors
● You source new clients while keeping current clients up-to-date on progress
● You manage accounts and invoices
● You process change orders
● You keep track of inventory and sourcing new products

And these are just to name a few.

But with good project management software, you can manage all of the above in the
same location.
By hosting everything on the same platform, it’s a whole lot easier to keep on top of
everything. And you can sleep easy knowing that nothing will fall through the cracks.

So, yes. Although project management software isn’t essential for interior designers, it
certainly has its benefits.

What are the benefits of using project management software as an interior designer?

Let’s explore some of the ways project management software can be incredibly useful for
interior design teams.

1. Manage vendors, contractors, and clients

As an interior designer, you’re juggling a lot of people.

From the vendors you use to source materials to the contractors who are doing the heavy
lifting, managing all these people can be pretty overwhelming.

But using project management software makes it easier to manage all of your vendors
and contractors.

You can store all of their contact information on the platform and even invite them to
collaborate with you on certain projects. That way, everyone involved in the project is in the
loop, and you don’t have to worry about constantly reaching out to them for updates.

All you have to do is check the project management platform, and you can see how things are
progressing.

And when it comes to managing clients, project management software really shows its value.

With the right platform, you can keep track of client relationships and make sure that you’re
providing clients with the service they need. This keeps your customers happy and makes
your life easier, too.

Create real-time purchase sheets

When you’re working with a client, you need to provide them with a breakdown of costs for
materials.
Creating a purchase sheet is the perfect way to do this. It outlines everything you plan to buy
for the project and the cost for each item.

So how can interior design project management software help with this process?

Well, with project management software, you can create a shareable purchase sheet that
you can update in real-time.

This allows your clients to see how much of their budget you’ve used and what you’ve
bought. It also allows them to track progress without asking you for updates, which we all
know can be a time-consuming task.

Using a project management platform also allows you to make quick changes to the
purchase sheet.

Let’s say the client’s budget changes. You’ve got to work with 75% of the budget you were
promised, which means you need to update the purchase sheet to reflect this.

With project management software, this is a painless task. You can change everything
quickly, and you can easily see what you need to change to suit your new budget.

Track and bill your time

In addition to material costs, you also need to provide clients with how much they need to
pay you for your service.

Some interior designers opt to use a flat rate, which is fine. But it does mean that sometimes
your profit margin might not be so high. Or worse, you might not even break even.

Tracking your time allows you to provide clients with an accurate cost and makes sure your
service is profitable.

Having said that, we do get it. The thought of tracking your time is tedious and off-putting.

With interior design project management software, time-tracking doesn’t have to be

such an arduous task.
It allows you to efficiently keep track of your time without much effort at all.

All you have to do is start your timer when you begin working and stop it when the work is
done. It’s that simple.

And if you forget to start the timer — don’t worry, it happens to the best of us — you can add
your time manually instead.

As a result, you can keep track of your billable hours and accurately invoice your clients at
the end of the project.

Manage your inventory

We know that not all interior designers need inventory management. So if this isn’t
something you think you need, feel free to skip ahead.

If you use inventory management, keep reading.

Inventory management is on the ‘least exciting’ end of the interior design spectrum, but it’s
important nonetheless.

Put simply, inventory management allows interior designers to manage and track their
inventory.

Ranging from homeware and bathroom supplies to paints and decorative items, inventory can
vary from business to business.

So how can project management software help your interior design firm better manage
inventory?

Let’s take a look at some of the main reasons.

● Keep track of inventory in real-time: If you’re not using software to track your
inventory, it’s hard to keep on top of what you have available.

But using project management software allows you to monitor your inventory in real-time.
As a result, you know what’s available and what you might need to source for a client.
 ● Automate the inventory management process: With project management
software, you can create automations to update the status of your inventory. As
a result, you can make sure new inventory is stocked up when you need it.

● Manage your inventory from anywhere: With a cloud-based platform, you

can track your inventory from anywhere. Whether you’re on the bus or in a
meeting with a client, you can see what’s available with one glance.

3.3) REVISION POINTS:

Share files: With project management software, interior design teams can upload all their
files, share them with teammates, and collaborate on them together.

Whether that’s a kitchen floor plan or a SketchUp design for a new project, using a platform
to share these files makes it easier for everyone to access them and work together on bringing
them to life.

● Send messages: Do you have some information you’d like to share with a staff
member? With a project management platform, you can easily send a message or
comment their way. This usually generates a notification, so nothing gets missed.

With all these features, interior design project management allows you to collaborate
with your team better.

Whether that’s assigning tasks to an internal studio designer or sending an update to an

external contractor — with the right software in place, collaboration can be much more
efficient.

3.4) IN-TEXT QUESTIONS:

1.What are the Benefits of project allocation?

2.Steps involved in cost time optimization?

3.5) SUMMARY:
● A histogram is a graphical representation that organizes a group of data points
into user-specified ranges. Similar in appearance to a bar graph, the histogram
condenses a data series into an easily interpreted visual by taking many data points
and grouping them into logical ranges or bins.
3.6) TERMINAL EXERCISES:
● Brief note on Cost Optimization.

3.7) ASSIGNMENTS:
● Create a Schedule for a Commercial project.

3.8) REFERENCE BOOKS:

● Dr B C Punmia et al Project planning and control with PERT and CPM,
Laxmi Publications
● National Building code of India 2005 - Bureau of Indian Standards
● MChakraborti, Estimation, Costing, Specification and Valuation in
Civil Engineering 4. Dutta, Estimating and Costing, S Dutta and Co,
Lucknow 1983

3.9) LEARNING ACTIVITIES:

3.10) KEYWORDS:

● Optimization :the action of making the best or most effective use of a

situation or resource."companies interested in the optimization of the
business"
UNIT - IV ESTIMATION AND COSTING :

Data required, factors to be considered, methodology of preparation, abstract of estimate,

contingencies, labour charges, bill of quantities, different methods of estimate for interior
design works, methods of measurement of works; Costing of Fixtures & Fittings;
Introduction to specification; GST method calculation and estimation

4.1) OBJECTIVE:

AT THE END OF THIS CHAPTER STUDENTS CAN ACQUIRE KNOWLEDGE ABOUT THE FOLLOWING:

● Estimation

● Bill of Quantities

● Costing of Fixtures & Fittings

● GST method calculation and estimation

4.2.CONTENT:

ESTIMATE:

An estimate is the anticipated or probable cost of a work and is usually

prepared before the construction is taken up. Before undertaking any work or
project it is necessary to know its probable cost which is obtained or derived
by estimating. The estimate is prepared by computing, calculating the
quantities required and then calculating the cost at suitable rates, to get the
expenditure likely to be incurred in the construction of the work or structure.

4.2.1DATA FOR ESTIMATE

Drawings

Plan, sectional elevations, and detailed drawings to scale and fully dimensioned
are required. The plan, elevation and sectional elevations are usually drawn to
a scale of 1cm=1m and detailed drawings are prepared to scales of 1 cm=10
cm to 1 cm=29 cm

Rates

The rates per unit of various items of work, the rates of various materials to be
used in the construction, and the wages of different categories of labour,
skilled or unskilled as mason. carpenter. mazdoor, bhishti, etc., available for
preparing estimates. The location of the work and its distance from the source
of materials and the cost of transport should be known. These rates may be
obtained from P.W.D. Schedule of Rate book or the rates may be worked out by
the "Analysis of rate” method.

Different types of estimate

(I) Preliminary Estimate or Approximate or Abstract Estimate or

Rough Cost Estimate.

(2) Plinth Area Estimate.

(3) Cube Rate Estimate or Cubical Content Estimate.

(4) Approximate Quantity Method Estimate.

(5) Detailed Estimate or Item Rate Estimate

(6) Revised Estimate.

(7) Supplementary Estimate.

(8) Supplementary and Revised Estimate.

(9) Annual Repair or Maintenance Estimate

IMPORTANCE AND ITS PURPOSES

To ascertain the necessary amount of money required by the owner to complete the
proposed work. For public construction works, estimates are required in order to obtain
administrative approval, allotment of funds and technical sanction.

To ascertain quantities of materials required in order to programme their timely

procurement. To procure controlled materials, if any, like cement, steel, etc, quantities
of such materials are worked out from the estimate of the work and attached with the
application for verification.

To calculate the number of different categories of workers that are to be employed to

complete the work within the scheduled time of completion.

To assess the requirements of Tools, Plants and equipment required to complete the
work according to the programme.

To fix up the completion period from the volume of works involved in the estimate.

To draw up a construction schedule and programme and also to arrange the

funds required according to the programming.
To justify the investment from the benefit cost ratio.

To invite tenders and prepare bills for payment.

An estimate for an existing property is required for valuation.

4.2.2.SPECIFICATION

Specifications describe the nature and the class of the work, materials to be used in the work,
workmanship etc. and are very important for the execution of the work. The cost of a work
depends much on the specification

Purpose of giving Specifications

The cost of a unit quantity of work is governed by its specifications.

Specification of a work is required to describe the quality and quantity of different materials
required for a construction work and is one of the essential contract documents.
This also specifies the workmanship and the method of doing the work. Thus
specification of a work serves as a guide to a supervising staff of a contractor as well as to the
owner to execute the work to their satisfaction.

A work is carried out according to its specification and the contractor is paid for the
same. Any change in specification changes the tendered rate.
As the rate of work is based on the specification, a contractor can calculate the rates of various
items of work in tender with his procurement rates of materials and labour. Thus the tender
rate without specification of works is baseless, incomplete and invalid.

Specification is necessary to specify the equipment, tools and plants to be engaged for a work
and thus enables us to procure them beforehand.

The necessity of specification is to verify and check the strength of materials for a work
 involved in a project.

4.2.3.Types of Specifications

General Specifications
In general specifications, nature and class of works and names of materials that should be used
are described. Only a brief description of each and every item is given. It is useful for
estimating the project. The general specifications do not form a part of the contract document.

Detailed Specifications
The detailed specifications form a part of a contract document. They specify the qualities,
quantities and proportions of materials and the method of preparation and execution for a
particular item of work in a project. The detailed specifications of the different items of the
work are prepared separately and they describe what the work should be and how they shall be
executed. While writing the detailed specifications, the same order sequence as the work is to
be carried out is to be maintained.

Detailed specifications consists of:

General provisions
 Conditions of contract

 Depend on nature of work

 Relating to documents

 General obligations of the contractor

 Conditions relating to labour

 Subletting, execution of work

 Measurement and payment

 Default and non-completion settlement of disputes and specific conditions etc..

Technical provisions
 Shows desired quality of final product

 Details of inspection and test

 Deals with specifications of materials, workmanship, performance and

proprietary commodities

Standard specifications
 Standardized format.
  Lengthy process of wording will be avoided.

 Saves time, labour and cost.

 Eg: earth work, brick work, etc.

Can be used in Cpwd, Mes, Railway dep.

Essential requirements of specifications

Subject matter:

The subject matter of the specification should relate to the information required for
the contractor after the contract is given to him.

The requirements which are to be enforced only should be included in the specification.

Grammar:

All sentences should follow the rules of grammar.

Abbreviations:
Well known abbreviations in the building industry should be used. Development of style:

The main aim is to present a clear picture of facts. The style of arranging ideas should
be clear and brief.

Selection of words:

Suitable words in the desired meaning should be used. Words having more than one
meaning or unfamiliar words shall not be used.

Accuracy:

The information given in the specification should be complete and correct. Information
should not be repeated.

Clearness:

As far as possible the information should be clear. It should state whether the contractor
shall or shall not do. In fact the parties, owner and contractor should follow the same sense.

Brevity:

Sentences should be short, simple and concise. Straight forward specification would be
clearly understood by the persons filling the tenders. The brevity is the essence of
specifications.
 Practical limits & commercial sizes:
The specification should be framed within the practical limitation of the materials and
workmanship. It should not specify practical impossibilities. It should specify the use of
commercial sizes and patterns of materials available in the market.

Fairness:

The specification should be fair and should not be framed in such a way so as to throw all the
risks on the shoulders of the contractors. Likely hazards, difficulties should be specified so as
to give a clear picture of the work to the contractor.

4.2.4.PREPARATION OF A PRICE LIST

Most businesses will need to draw up a price list at some stage. If you sell a fixed range of
products, this may be the only form of pricing you need. This type of standard price list can
also be used as the basis for pricing your non-standard orders.

It's a good idea to date your price lists - particularly if your customer is likely to keep it for a
long time. You should make it clear when any special offers expire. It can also be useful to
include a clause at the end of the price list stating that prices are subject to change.

We should make clear whether any delivery, packing or postage costs are included in your
prices. Additionally, although you don't have to indicate discounts for bulk purchases on your
price list, it might attract more business.

We may be able to use software packages such as Sage Simply Accounting to help you draw
up complex price lists.

THE DIFFERENCE BETWEEN A QUOTATION AND AN ESTIMATE

It's impossible for some businesses to give standard prices for goods and services. This may be
because the skills, time and materials required for each job vary depending on different
customers' needs.

This situation is more common in some trades than others - decorators or builders, for
example, rarely do exactly the same job twice. When it's not possible to work from a standard
price list, you have to give a quotation or an estimate instead.

A quotation is a fixed price offer that can't be changed once accepted by the customer.

This holds true even if you have to carry out much more work than you expected.

An estimate is an educated guess at what a job may cost - but it isn't binding. To take account
of possible unforeseen developments, you should provide several estimates based on various
circumstances, including the worst-case scenario. This will prevent your customer from being
surprised by the costs.
 4.2.5.PREPARATION OF A WRITTEN ESTIMATE

When you prepare an estimate it's good practice to give the customer a written copy, including
a full breakdown of costs.

Our estimate should include the:

○ Overall price

○ Breakdown, listing the components of the price,schedule, detailing when work will be
done or products delivered

○ Terms and conditions

○ Time period the estimate is valid for

○ Payment terms or schedule

We must include our full business contact details in our estimates. If we have letterhead, it's a
good idea to put our estimates on this.

Include a disclaimer stating clearly that the estimate's price is subject to change. Agree in
advance how many variations will be cost. These can arise if the client changes their
requirements or if a job turns out to be more complicated than expected.

4.2.6.PREPARATION OF A WRITTEN QUOTATION

Quotations commit you to the price you specify, so they are usually used when:

The work you're quoting for has clear requirements - in terms of time, labour, materials, etc.
our costs are stable and our confidence in the work won't turn out to be more complicated than
expected.

It's good practice to give your customers a written quotation. This should include the:

● Overall price

● Breakdown of the components of the price, indicating what is covered and what is not

● Period the quotation is valid for

● Schedule for when the work will be done or products delivered

● Full contact details of your business

● Payment terms or schedule

It's also advisable to get your customer's written confirmation that they're happy with the price
you have quoted and the work that this includes. This should be done before you carry out the
work, or provide the goods or services.

Computer software can be used to help you determine the costs involved in any work for
which you're drawing up a quotation. Many accounting and spreadsheet packages can be used
for this.

REQUIREMENT OF LABOUR AND MATERIALS

Cost of labour -types of labour, standard schedule of rates The labour can be classified into

1) Skilled 1st class

2) Skilled 2nd Class

3) Unskilled

The labour charges can be obtained from the standard schedule of rates 30% of the skilled
labour provided in the data may be taken as Ist class, remaining 70% as II class. The rates of
materials for Government works are fixed by the superintendent Engineer for his circle every
year and approved by the Board of Chief Engineers. These rates are incorporated in the
standard schedule of rates. Lead statement: The distance between the source of availability of
material and construction site is known as "Lead " and is expected in Km. The cost of
conveyance of material depends on lead. This statement will give the total cost of materials
per unit item. It includes first cost, conveyance loading, unloading stacking, charges etc. The
rates shown in the lead statement are for metalled roads and include loading and stacking
charges. The environment lead on the metalled roads are arrived by multiplying by a factor a)
for metal tracks - lead x 1.0 b) For cartze tracks - Lead x 1.1 c) For Sandy tracks - lead x 1.4
Note: For 1m3 wet concrete = 1.52m3 dry concrete approximately SP.Wt of concrete= 1440
kg/m3 (or) 1.44 t/m3 1 bag of cement = 50 Kg

ABSTRACT ESTIMATE

This is the third and final stage in a detailed estimate. The quantities and rates of each item of
work, arrived in the first two stages, are now entered in an abstract form. The total cost of each
item of work is now calculated by multiplying the quantities and respective rates.

Bill of Quantities

The BOQ is a document that breaks down the project scope by work items and quantities,
ensuring that all contractors quote the same amounts of work.

The BOQ continues to be useful when all contractors have submitted their offers and a winner
has been chosen. The BOQ is useful as a tracking tool during the construction process, and it
can be combined with the project schedule for cost planning.

When creating a progress report, the completed work can be input as partial quantities in the
BOQ spreadsheet.

Since there is already a unit price for each item, the spreadsheet will automatically calculate
the monetary value of the completed work.

By comparing each report with the previous one, the contractor can calculate interim
payments. If the contract terms include an advance payment and a quality retainage, they are
normally deducted as percentages from each interim payment.

For example, if the advance payment was 10% and the retainage is 5%, there is a 15%
deduction from every interim payment.

At the end of the project, the BOQ can be filled with the actual work quantities to check
discrepancies with the original quantities.

This results in additional payment for the contractor if the actual work is more than planned,
but the contractor may also owe money to the owner for items where the actual work was less.

Consider that some contract types do not allow this; in fixed-price contracts or construction
management at risk, for example, the construction firm assumes any additional expenses while
keeping the savings achieved.

Who Prepares The BOQ In A Construction Project?

The Bill of Quantities is normally prepared by a cost consultant or quantity surveyor, a role
that is often assumed by the engineering firm in charge of design.

This way, the scope and quantity of work are determined by a neutral party, and bidding
contractors compete under equal conditions. Large companies with an internal engineering
staff often create their own BOQs.

The design firm and the cost consultant can be different companies, but delegating both tasks
to the same engineering firm is more efficient. When two separate companies are involved, the
cost consultant must first get familiarized with the project documents, requiring more
coordination and communication.

What Does a BOQ Include?

The document format of a BOQ can change from project to project, but it will generally
include an itemized list of the work required: architectural, structural, mechanical, electrical,
communications, plumbing, fire protection, etc. The BOQ also includes the following
information:

The quantity of work for each list item and the measurement unit. For example, a painting task
may be specified for an area of 200 square feet. When measurement units are impractical,
work quantities are described as global tasks (e.g. general cleaning) or based on the number of
items installed (e.g. 100 LED lamps).

The unit price of each item, which is calculated by each of the bidding contractors.

The unit price must consider all costs involved: materials, labor, equipment, overhead and the
contractor’s profit.
 The total price of each list item, which is calculated by multiplying the amount of work and
the unit price.

As previously mentioned, the list items in a BOQ are classified by areas like HVAC
installations and fire protection systems. All items in each category are added into subtotal
prices, and these are added to get the total price of the project. The main advantage of the
BOQ is itemizing materials and labor, making these costs easier to manage. Quoting a project
without work items is confusing, especially when large amounts of materials are involved.

The BOQ should use a clear language when describing each work item, since the document is
also read by professionals from non-technical fields. If additional information is needed for
one of the line items in the BOQ, the construction drawings and technical specifications are
available for reference. In other words, there is no need to include all the technical information
about each line item in the BOQ.
4.3) REVISION POINTS:

Quantity take-offs for interior finishes measure all the visible surfaces within a building. This
includes the ceiling, flooring and walls. Each space or room within a building should be
independently taken-off. A simple matrix similar to a Room Finish Schedule should be
developed. This may require more upfront work to create this tool, however it is often helpful
in case an assumption of a space is incorrect or changes are requested. The room matrix can
be easily adjusted without having to perform more takeoffs.

Ceilings and Flooring are measured by the horizontal square footage (SQ FT). Wall Base is
measured by the perimeter of the space, or lineal footage (LN FT). Wall tile, wall treatment
and painting are measured by the vertical square footage (SQ FT). There are some unique
items that may be counted (EACH) or carried as an allowance (ALLO) at this point in the
estimating process.

For spaces that are square or rectangular, it is simple to calculate the area by multiplying the
width by the length. Often there are irregular spaces that require more complex geometry
calculations, especially spaces that have angular or curved walls. When measuring irregular
spaces, an estimator should measure slightly beyond the room, especially at cut outs to
account for waste and slower production rates at these areas. There are several take-off
software programs out in the market and within the industry that can assist in calculating these
types of spaces. If the ceiling and flooring are measured on the same floor plan, use a hatch
pattern for one of the two items and a solid color for the other to help distinguish them from
each other.

In addition to taking off the floor and ceiling area of a space, the perimeter of the room should
also be calculated. This will be used for not only the wall base, but also to help estimate other
wall surfaces. The height of the space also needs to be calculated. Often the height of a space
is not available on the Schematic Drawings. In this case a standard wall height of 10’ per
story can be assumed. For the wall area, it may be necessary to adjust if there is glazing,
casework or other furnishings on the wall.
 For items like doors, frames, exposed metal or other single items, these should be individually
counted for painting during the estimating process.

An allowance is often used at this phase of the design process. This may be for special drop
soffits that may become part of the design, or possibly for an accent wall or other wall
graphics not yet designed.
4.4) IN-TEXT QUESTIONS:
1.What are the Benefits of Costing?

2.Steps involved in preparing a BOQ?

4.5) SUMMARY:
● Estimating and Costing are closely the same things. The estimate is defined as the process of calculating
or computing the various quantities and the expected expenditure to be incurred on a particular work or
project. The estimate gives the probable cost of the work.
4.6) TERMINAL EXERCISES:
Brief note on Estimation and Steps involved in Estimation of an Project.

4.7) ASSIGNMENTS:
Create a BOQ for a Commercial project.

4.8) REFERENCE BOOKS:

● Dr B C Punmia et al Project planning and control with PERT and CPM, Laxmi Publications
● National Building code of India 2005 - Bureau of Indian Standards
● MChakraborti, Estimation, Costing, Specification and Valuation in Civil Engineering 4. Dutta,
Estimating and Costing, S Dutta and Co, Lucknow 1983

4.9) LEARNING ACTIVITIES:

4.10) KEYWORDS:

● BOQ :Bills of Quantities (BoQ) is one of systematic ways applied in the construction industry in which its
primary function is to record items of works for tendering purposes and to create a fair
agreement among the parties involved for contracting purposes
 UNIT - V IPM STUDIO:

Preparation of detailed schedule for an interior project based on the working drawings and site condition

5.1) OBJECTIVE:

AT THE END OF THIS CHAPTER STUDENTS CAN ACQUIRE KNOWLEDGE ABOUT THE FOLLOWING:

● Scheduling

● Bill of Quantities

5.2.CONTENT:

5.2.1.Scheduling:
5.2.2.BOQ: