TYPES OF CONSTRUCTION PROJECTS: CONSTRUCTION ECONOMICS TIME VALUE OF MONEY TECHNO-ECONOMIC ANALYSIS Economic analysis: COMPUTER CAPABILITIES IN MANAGEMENT IPMI USES COMPUTERISED SYSTEMS SOFTWARE TOOLS & APPLICATIONS

1. PROJECT
MANAGEMENT
VISHNU VIJAYAN
HOD-Department Of Civil Engineering
Baselios Mathews II College Of Engineering
Sasthamcotta, Kollam,Kerala,INDIA

2. What is Project ?

3. Project
•A project is a temporary endeavour
undertaken to create a unique product,
service, or result.
•It has a beginning and an end
•Create a unique product ,service or
result
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4. Then..
What is Project Management?

5. Project Management
• Project management is the application of knowledge ,skills,
tools and techniques to the project activities to meet project
requirements .In order to achieve a specified goal or Target
with in the cost, with in the stipulated time and without
compromise the quality and safety.
(or)
• Project management is the process, activity of planning,
organizing, motivating, and controlling resources to achieve
specific goals.
• The term construction project management means that It
is an overall planning of construction project, it requires
proper co-ordination and control of the construction project
from the conception to completion of the project.
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6. TYPES OF CONSTRUCTION
PROJECTS:
The Construction project can be classified into three.
(i) Private construction.
(ii) State construction.
(iii) Federal Construction.
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7. Project Life Cycle

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9. CONSTRUCTION
ECONOMICS

10. CONSTRUCTION ECONOMICS
• Construction Economics is the process of
economising the construction work from
initiation to completion of the Project
work.
• This will be ensure the practical and
sustainable financial decisions over the
project.
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11. TIME VALUE OF MONEY
• The time value of money(TVM) is the idea
that money available at the present time is
worth more than the same amount in the
future due to potential earning capacity.
This core principle of finance holds that
,provided money can earn interest ,any
amount of money is worth more sooner it
received.
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12. TECHNO-ECONOMICANALYSIS
• The analyse of technical aspects as well as
economic aspects are equally important for the
success of a project.
• A good project must be Technically feasible and
economically viable.
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13. Technical analysis:
The technical analysis of a construction projects
must be consider the following factors in the
technical analysis stage.
1. Location of site, availability of raw materials,
sufficient land should be easily approachable by
rails and road, availability of electricity, water,
communication facility, availability of man power
around the area etc.
2. Soil characteristics
3.Selection of suitable technologies:
4. Specification:
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14. Financial analysis:
• No project can begin without capital (money), so the proper
allocation and budgeting of money will leads the life of a
project.
• The capital cost can be classified into 2 categories
• Working cost: cost of equipment and raw materials etc.
• Operating cost: cost after the completion of project.
• Source of funding
• financial analysis find out the source of money to role the
project smoothly without affect any delay in the work .there
are two types of source for funding namely Internal source
and external source .
• Internal source:
• External source:
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15. ECOLOGICALANALYSIS
• At the time of construction needs to identify the major hazards
present at the construction site or hazards will come in the
future by the constriction activity.
• Also find out the Situation and condition that leads to impact
the environment.
• Try to avoid such impact to the environment make the
construction by sustainably as soon as possible.
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16. Economic analysis:
• The ultimate aim of economic analysis is to check the
proposed project is economically viable or not. So comparison
of cost and return (benefits) of the project are important. There
are different economic methods are adapted to analysis the
economy of the project. The following are the main methods
are adopted for the analysis of economy of a project.
• Payback Period method
• Net Present Value (NPV)
• Internal Rate of Return method (IRR)
• Benefit cost ratio method (BCR)
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17. Payback Period method
• This method finds how long will be take to get the invested
money back from the project.
A project with shorter payback period is desirable.
• Cash out flow: expenditure /investment
• Cash inflow income from the project
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18. CONTD..
• Net present value:
• It is based on the concept that the money has some time value.
A project with positive net present value is preferable.
• Internal rate of return
• In this method NPV is assumed to be zero and the rate of
return is find out .a project with larger rate of return is
accepted.
• Benefit cost ratio:
• Benefit cost ratio method the value of different projects are
evaluated and if the project getting less than 1 (B/C < 1)
benefit cost ratio is rejected and one with larger benefit cost
ratio is accepted.
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19. COMPUTER CAPABILITIES
IN MANAGEMENT
• GENERAL:
computer and modern packages can provide the
necessary IPMI, required for the successful completion of
project management.
Computers are the effective tools for project managers
Decision making process is expedited by
computerisation .
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20. Advantages in management
• Project activities easily sorted out and list outing...
• Project schedule arrangement (depends on the progress )
• Better analysis in time cost trade offs, resource allocation ,cost
control ETC.......
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21. IPMI USES
• Features are,
• Payroll accounting
• Records management ,
• Job cards
• Risk analysis
• Graphics & spreadsheet analysis,
• Material management
• Estimating Tender analysis
• BOQ analysis
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22. COMPUTERISED SYSTEMS
In construction industry grouped into 3:
1.Planning and Design systems
2.Commercial Application systems
3.Site oriented Operational systems
Computer use by key functionaries:
OWNER
CONSULATANT
CONTRACTORS
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23. SOFTWARE TOOLS &
APPLICATIONS
• MS Excel: create spread sheet of documents
• LOTUS : developing database functions, value engineering et.
• PRIMAVERA : scheduling applications
• MS Projects : scheduling applications
• MS Word :creating letters ,documents, memorandum
• MS Perfect : creating letters ,documents, memorandum
• Auto Cad :prepare drawings & details
• Timberline : estimation
• MS Power point : dynamic tool for presentation
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24. Thank You …..