ASSIGNMENT

NICMAR / SODE OFFICE

1. Course No. - PGPM 31

2. Course Title - Risk Management and Insurance
3. Assignment No. -
4. Date of Dispatch -
5. Last date of receipt -
of Assignment at SODE office

ASSIGNMENT

For the successful implementation of a project, it is essential that persons involved in

its implementation be sensitive to the risks involved in the project and formulate the
most suitable structure for the management of such risks. There are certain variables
and uncertainties is common to most of the infrastructure projects. Many risk
mitigation techniques are applied to infrastructure projects. Discuss in details the risk
management in construction with special reference to any project currently in progress
with your company.

STUDY

Risk Management for Construction Industry Managers, the lesson book compiled by
NICMAR.

KEY

i. Describe scope of project in short

ii. Explain type of project
iii. Note down important points of perceived construction risk, project risk, risk
economic risk, insurance.
iv. Risk mitigation is done in construction infrastructure development projects.

STRUCTURE

i. Name of project
ii. Scope of work
iii. Important details project, cost, time, type risk involved, risk mitigation etc.
iv. Important points from contractor’s project managers point of view to be
monitored / resolved
v. Method followed for administer and monitor risk
vi. Recommendations / Conclusion
vii. Bibliography / Readings
 ASSIGNMENT
NICMAR / SODE OFFICE

1. Course No. - PGPM 32

2. Course Title - Projects Formulation &
Appraisal
3. Assignment No. - ___________________
4. Date of Dispatch -
5. Last date of receipt -
6. of Assignment at SODE office

ASSIGNMENT

Any company that has to survive in a competitive environment can not remain
complacent with the present. It has to continuously bring about change in order to
adapt to the altered environment.

Investment opportunities in India are today perhaps at a peak. Supported by India’s

natural strengths, the country offers investment opportunities in excess of $500 billion
in diverse sectors over the next five years.

Projects, that are endeavours to create unique products and services, are basically the
instruments leading to organizational growth. Projects have a long term impact on the
character of the organization. Projects create wealth not only for the organization but
also for the nation. Projects, therefore, form a very important part of the organization’s
strategy for survival & growth and therefore are the main concern of the corporate
management.

Realising the tremendous opportunities, the most of the pragmatic organizations are
planning to invest in new projects. Every project starts with the perception of an
opportunity. The better this is characterised, the easier it will be to judge the levels of
expenditure and risk that are justified. Identifying the patterns by which technology
creates new products & services and exploiting them early gives the company a
significant competitive advantage.

In the light of your studies prepare an assignment on project formulation, evaluation

and appraisal of a hypothetical project by covering the following:

i. Market Analysis
ii. Technical Analysis
iii. Financial Analysis.

Reference Books

1. Prasanna Chandra, Projects: Planning, Analysis, Selection, Financing

Implementing & Review, New Delhi, 2006.

2. Walker A., Project Management in Construction, (4th Ed.), Blackwell

Publishing, London, 2002.

3. P. Gopalkrishnan & V. E Ramamoorthy, Text Book of Project Management,

Macmillan India Ltd., Delhi, 2001.

4. John M. Nicholas, Project Management for Business & Technology- Principles

& Practice,2nd edn, Prentice-Hall of India Pvt. Ltd., New Delhi 2004.

5. Harvey Maylor, Project Management, Pearsun Education Ltd., Delhi 2006.

6. G.O.I., A Manual on Project Implementation. Ministry of Programme

Evaluation (GOI), 1989/1994.

7. Iyer P. Parameshwar, Engineering Project Management: with Case Studies,

Wheeler Publishing, New Delhi, 2000.

8. Maylor H., Project Management, 3rd Edn., Pearson Education, New Delhi,
2003.
 ASSIGNMENT
NICMAR / SODE OFFICE

1. Course No. - PGPM 33

2. Course Title - Project Cost Engineering
3. Assignment No. - ___________________
4. Date of Dispatch -
5. Last date of receipt -
6. of Assignment at SODE office

ASSIGNMENT
A project has following milestone schedule:

Start Completion
Sr. No. Activity

1. Preparation of technical specification April 2005 April 2005

2. Issue of tenders May 2005 May 2005
3. Receipt of tenders August 2005 August 2005
4. Placement of order May 2006 July 2006
5. Receipt of equipment July 2007 July 2007
6. Civil works July 2007 Aug 2007
7. Equipment erection Aug 2007 Sept 2007
8. Testing and commissioning Sept 2007 Oct 2007
9. Final acceptance March 2008 March 2008

Cost of the project with activity-wise break-up is as under:

Sl. No. Activity Cost (Rs.

 Lakhs)
1. Equipment 1050
2. Civil engineering works 422.5
3. Erection of equipment 97.5
4. Spares 58.5
5. Freight, insurance, taxes included in the equipment and
--
spares
6. Design & engineering 123.5
7. Construction supervision 91
Sub-total 1768

In the contracts for equipment supply, erection and civil engineering works, payment
terms are as under:
Equipment:
Advance at the time of placement of order 10%
Against supply 70%
Against erection and commissioning 10%
Against final acceptance 10%
Erection Contract:
Against physical erection 80%
Against commissioning 10%
Against final acceptance 10%
Civil engineering works contract:
Against progress 90%
Against final acceptance 10%
From the above details of milestone schedule, activity-wise cost and payment terms,
work out the phasing of expenditure and interest during construction. Assume interest
rate as 16% and entire fund for the project from commercial borrowings.

ASSIGNMENT
NICMAR / SODE OFFICE

1. Course No. - PGPM 34

2. Course Title - Legal-Frame work of Project
Management
 3. Assignment No. - ___________________
4. Date of Dispatch -
5. Last date of receipt -
6. of Assignment at SODE office

ASSIGNMENT
National Building Code of India is a comprehensive building code for regulating the
building construction activities across the country. The purpose of building codes are
to provide minimum standards for safety, health, and general welfare including
structural integrity, mechanical integrity (including sanitation, water supply, light, and
ventilation), means of egress, fire prevention and control, and energy conservation.
“The general building requirements part covers development control rules, including
such aspects as subdivision and layout rules, land use classifications, open spaces,
area and height limitations, means of access, and parking spaces; this part also covers
the general building requirements, such as the requirements of parts of buildings,
provision of lifts, etc.” Explain in detail.