WBS for Chenseng University Campus Construction

Task 1: Work Breakdown Structure (WBS) of Construction of Chenseng Technical University Campus in China

A work breakdown structure (WBS) is a significant project deliverable that systematizes the work a team will undertake in convenient sections. According to Sutrisna et al. (2018), in a construction project, the breakdown framework is a hierarchical decomposition of the complete scope of the activity to be undertaken by the team in accomplishing the objective of the project and develop the needed deliverables. In this project, the focus is on construction of Chenseng Technical University Campus in China, and such as project of a large magnitude requires detailed WBS that offers necessary structure for detailed cost estimation as well as control with well guiding schedule development and control.

The WBS will entail all work areas to be constructed by the primary organization; whereby the WBS entails seven-location hierarchical describing the estimated cost of the project considering work-scope in man-hours to date. These seven locations include;

University Management Complex

Healthcare and Nursing School

International Business School

School of Engineering

Student Halls and Sport Center

The Law School Science and IT School

Every location will be further sub-divided with the estimated man-hours for each aspect as follows;

University Management Complex

Office of the President- 19000

Alumni Hall and Registry- 42000

Chenseng Memorial Library- 29000

Facilities Management Block- 36000

Student Welfare Center- 38000

Healthcare and Nursing School

Health Service Building- 132000

Center for Health and Fitness- 110000

College of Nursing Building- 115000

Healthcare Library Resources- 84000

International Business School

School of Business Building- 46000

Learning Resource Center- 36000

Center for Entrepreneurship- 32000

Stock Dealing Simulation Center- 41000

School of Engineering

Engineering Research Laboratory- 98000

Electrical Engineering Building- 72000

Mechanical Engineering Building- 75000

Environmental Engineering Building- 82000

Center for Engineering Education- 77000

Student Hall and Sport Center

Athletics Center- 82000

Indoor Rackets Center- 49000

Chenseng Stadium- 132000

Eight Halls of Residence Coded A-H: -28000 each

The Law School

Law School Building- 30000

Samuel Wong Law Library- 34000

Simulated Law courts center- 64000

Science and IT School

Physical Sciences Center- 39000

Applied Sciences Building- 34000

Information Technology Building- 75000

IT and Computer Center- 90000

estimation of the total project cost.

Total number of man- hours = 2,017,000hrs

From the hours we get the below costs

Engineers cost = 15% of 2017000 x £160 =£ 48,408,000

Technicians cost = 45% of 2017000 x £115=£ 104,379,750

All other trades cost = 40% of 2017000 x £75 =£ 60,510,000

TOTAL ESTIMATED COST = £213,297,750

Task 2: Basic Project Planning and Scheduling

Construction challenge making plans is a method of determining “What” is going to be done, “How” matters are going to be done, “Who” might be doing activities, and “How much” sports will cost. When initiatives are simple, together with few defined sports, it is probably possible for a single person to comprehend the whole construction attempt with little difficulty. Unfortunately, Sequeira and Lopes (2015) identify that maximum initiatives for which formal plans are prepared to have a tendency to be defined with dozens or even masses or hundreds of sports: the larger the challenge, the extra the variety of sports and higher the extent of detail managers should handle.

According to Baldwin and Bordoli (2014), when undertaking plan includes numerous activities, it is often really useful to arrange the sports in some manner to allow conversation of plan statistics to others and to preserve knowledge of the various factors of the challenge. While there are many methods that a plan may be organized, one not unusual exercise is the Work Breakdown Structure (WBS). The WBS is a convenient method for decomposing the undertaking complexity in a rational manner into work programs and elementary activities. Some firms prefer to use a fashionable means of identifying work applications common to all similar initiatives. Chowdeswari et al. (2017) attest that these work packages are then coded in order that both charges and the schedule can be controlled. A not unusual numerical accounting device is then implemented to the activities so that the coding indicates elements inclusive of the kind of material concerned or the bodily location inside the undertaking. In essence, the WBS divides and subdivides a project into unique components, whether by area, phase, function, or other considerations. The highest stage inside the WBS consists of a unmarried element, the project. At the following stage, there may additionally be only a few factors or items. Naturally, the similarly one goes down in the WBS, the more the granularity of decomposition and the amount of element. Regardless of the method used to define the elements, Baldwin and Bordoli (2014) claim that man or woman responsibilities are to be defined for the bottom level inside the hierarchy or at the best degree of element that is required to adequately manipulate and control the construction process. The stage of details can be determined through the scheduling desires and the jobs of the humans viewing the WBS. For example, if one is a property owner and having a house built, one is inquisitive about the of entirety date of the undertaking, but a subcontractor may be primarily interested by statistics related specifically to the undertaking this has direct responsibility.

The following is a project plan after care inspection of the campus site and access roads. There has been number of schedules that have been taken into account. The first project starts with the construction of the University Management Complex and within it, there are five tasks as shown in the WBS. Each task should take 4 weeks. Apart from the first task, each task will start 2 weeks after the preceding task has started. It is followed by Healthcare and Nursing School. Within it there are four tasks as shown in the WBS. Each task should take 6 weeks and they will all follow each other in a simple linear sequence (Finish to Start) with no lags. The thirst task is the International Business School and within it there are four tasks as shown in the WBS. Each task should take 7 weeks. Apart from the first task, each task will start 2 weeks after the preceding task has started. The forth task is the School of Engineering. There are five tasks as shown in the WBS. Each task should take 6 weeks and they will follow each other (Finish to Start) with no lags. The fifth task is the Student Halls and sport center and there exist eleven tasks as shown in the WBS. The first three tasks will be carried out in a simple linear sequence - Athletics Centre (5 weeks) - Indoor Rackets Centre (4 weeks) - Chenseng Sports Stadium (5 weeks). Once the sport stadium is complete, work can start on the eight halls. Each hall should take 3 weeks. Apart from the first task, each task will start 1 week after the preceding task has started. The sixth task is the Law School. The tasks are three as shown by the WBS. They will be carried out in a simple linear sequence - Law School Building (5 weeks) - Samuel Wong Law library (4 weeks) - Simulated law courts center (2 weeks). The last task is the construction of the Science and IT school. Within it there are four tasks as shown in the WBS. Each task should take 8 weeks. Apart from the first task, each task will start 2 weeks after the preceding task has started. Below is a Gantt chart depicting the seven main tasks and the total duration that each task spend in weeks from the first date to the last;

TASK 3: Project Cost and Bid Pricing

Estimation of bid fee or tender price of a construction mission is calculated because the sum of the total value of construction and mark-up charge. The total price of creation projects consists of direct price and indirect prices for the construction works. According to Hyari et al. (2016), the direct price of construction projects consists of the value of materials, labors, plants, and equipment at the same time as the indirect fees are associated with expenses on employees’ recruitment and their training, research, and improvement required for the construction works. Thus according to Tsakada (2015), a direct cost is associated with the sports completed at the development sites, that is, if the activities aren't carried out, direct expenses are not incurred. In the case of indirect prices, they are non-traceable based totally on activity. Indirect costs can also have incurred even supposing the development works/sports have now not been carried out.

Direct Cost = Labor Cost + Plants & Equipment Cost + Crew Cost + Materials Cost + Subcontractor Cost

Indirect Cost = Project Overheads + Common Plants & Equipment Cost + Common Workmen Cost

Mark-up Cost = Profit + Contingency + General Overheads + Allowance for Risks

Construction Project Cost = Direct Cost + Indirect Cost + Mark-up Cost

The seven tasks are undertaken in weeks where task one takes up twenty weeks, task two takes up twenty-four weeks, task three takes up twenty-eight weeks. Task four takes up thirty weeks, task five will take twenty-four weeks to be completed, task six will take up eleven weeks and finally the last task will take up fourteen weeks to be completed.

The total variable cost for each task is calculated as follows;

Total project budget = TOTAL FIXED COST + TOTAL VARIABLE COST

181,400,000 + 74,745,000 = £256,145,000

In Yuan 256,145,000 × 8.77 = 2,246,391,650

Fixed price for the project = 2,246,391,650+ 15% of 2,246,391,650= 2,583,350,398

To the nearest million Yuan = 2,583,000,000

In the worst case currency exchange rate, that is, 9.25 yuan = £1

So 2,668,000,000 yuan will be equal to 2,583,000,000 ÷9.25= £ 279,243,243.2

profit will be 279,243,243.2- 264,545,000 = £ 23,098,243.24

to the nearest £100,000 = £23,100,000

TASK 4: The Risk Sharing proposal

Risk Sharing — also regarded as "hazard distribution," threat-sharing approach that the charges and losses of each member of a set of policyholders are allocated within the group based totally on a predetermined formula. Risk is taken into consideration to be shared if there's no policyholder-unique correlation between premiums paid right into a captive, for example, and losses paid from the captive's reserve pool (Battiston et al., 2012). With just a few exceptions, commercial enterprise leaders and assignment managers have to share dangers whenever possible. Most of the time, sharing hazard is a win-win scenario where balance is increased for all parties. We'll study a few real-international examples in a minute; however first, we have to take a look at some large strategies. One method for sharing hazard is to diversify. To an investor, diversify way to put a little money in a number of locations in order that the demise of one funding doesn't wipe out the investor. That approach has a right away corollary in commercial enterprise threat assert Li et al. (2011). In this approach, a commercial enterprise or challenge chief allocates sources in order that a trouble or disruption has minimal effect on other components of the commercial enterprise.

A second commonplace strategy for chance sharing is outsourcing. Outsourcing way taking a enterprise unit or function, disposing of it from the agency itself, and sooner or later contracting every other entity to do the work. In many cases, Favilukis et al. (2017) argue that whilst you outsource services, you also are outsourcing threat. This is especially genuine when the outsourced characteristic is already far out of doors the enterprise's middle competency and primary mission.

Therefore, the extra student fee income CTU is expecting each year is

£65,325,000 - £15,322,000 = £50,003,000

To the nearest 100,000 it is equal to £50,000,000

Having received £170m from CTU we will only have to recover £45m from the extra student extra fee income so that we will have covered the cost of £225m. Since each year we will be receiving 50% of £50,000,000 which is £25,000,000, it will take us 45,000,000 ÷25,000,000 = 1.8 years.

That means, we will have recovered all our costs in 1.8 years.

The extra incomes over the five years is equal to

In year 2 = £500,000

,, 3= £25,000,000

,, 4 =£25,000,000

,, 5= £25,000,000

Total extra income = £80,000,000

I would recommend we accept the risk sharing proposal since its probable return is quite high at a approximately 35.6%.

TASK 5: PERT Sensitivity Analysis

The Program Evaluation and Review Technique (PERT) is a stochastic network technique developed in the late 1950s. The original model assumes PERT β distribution for the interest intervals (Hajdu and Bokor, 2016). Later on, this changed into criticized by using many researchers, and several new distribution types have been introduced, which have been believed to be better in modeling the real hobby period distributions or have been easier to handle from a mathematical point of view. The introduction of recent activity duration distributions was criticized even with the aid of Clark—one of the pioneers of PERT—at the same time as other researchers were arguing that these new activity distributions could better describe the stochastic distributions of the interest durations and their utility allows define the distribution of undertaking length better identifies Wang et al. (2012). In the course of our research, we've got investigated the impact of various pastime length distribution kinds (PERT-beta, uniform, triangular, lognormal) on the mission period, in addition to the effect of the inaccuracy of the activity periods' estimation when performing the PERT three-point estimation. Our fundamental assumption—that the differences in the distribution of the venture period resulting from the use of exceptional pastime length distributions are not full-size compared to the differences as a result of the inaccuracy of the three-point estimations—has been tested on several hypothetical tasks and case studies. Four different distributions had been applied, one at a time. The intention has been to really show the differences among the outcomes of the application of the chosen distributions, therefore the distributions have now not been mixed. Monte Carlo evaluation has been used to create the probabilistic distributions of the tasks.

From the above critical path the expected project completion duration completion is 12+24+30+14 = 80 days

Probability the project to be complete in 82 weeks or less

P(X≤82) = P(X-U ≤ 82-80 ) = ≤ 3.43 , We have to use the Standard Normal Distribution

From the table the value is 0.9997 which in percentage is 99.97%

Therefore the probability of project completion on or before 82 weeks is = 99.97%

Task 6: Site Engineers

According to Basart and Serra (2013), civil engineers at a production site form a selected population due to their particular paintings location, the threat involved in their paintings, and the want for help from others. Teamwork and powerful order enforcement are therefore vital for construction project success.

Site engineers present at any given week are as follows;

Manpower budget for the site engineers

TASK 7: Visa Constraints for expat Site Engineers

The cross-border mobility of people, goods and services, and capital have expanded fairly each in intensity and variety over current decades. States have a widespread hobby in facilitating these flows with the intention to advantage from economic globalization. Yet, according to Czaika and Neumayer (2017) mainly due to protection concerns, maximum governments furnish visa-free mobility simplest very selectively. Drawing on a brand new bilateral visa policy database covering as much as 194 destinations and 214 starting place nations over the 1995 to 2013 period, our analysis reveals that the introduction of a visa limit by means of a destination country for citizens from a specific origin deters tourism inflows with the aid of approximately 20 percent. Visa regulations also reduce bilateral trade and foreign investment, however to a smaller quantity than previous research have suggested.

It will be feasible to observe the maximum visa limit without extending the duration of the project. This is possible by rescheduling the tasks as follows:

The site engineer schedule will be as follows

Task 8: Progress Analysis during the Project

To manipulate a challenge manner to compare its origina1 plan with its gift fame and to initiate corrective moves while needed. A most important impediment to govern is in estimating the reputation or development of the assignment (Globerson and Shtub, 1995). Dividing a venture into work applications is one manner to simplify the making plans and control process. During the venture life cycle, many work applications are in progress at every unmarried moment. Therefore, comparing the part of paintings completed within the in-progress work applications becomes a crucial issue. You can tell something is in schedule if something is scheduled to happen at a particular time and it is done. If it does not happen, then it can be said not as scheduled. In our case we will consider the work done completed in comparison with the allocated/ scheduled completion time. At week 16, I expect the following tasks to be completed at this percentage. Using this formula

Percentage completion= Time that has elapsed / Time scheduled for the task x 100

University management complex = 12/12 x100 = 100% 🡪GREEN

Health Care and Nursing School = 4/24 x 100 = 16.67% 🡪RED

International Business School = 4 /13x 100 =30.77% 🡪GREEN

The law school = 4/11 x 100 = 36.36% --🡪 AMBER

TASK 9: Earned Value Analysis

Earned Value analysis according to Asaminew (2013) is a method of overall performance measurement. Earned Value is a program management method that uses “work in progress” to signify what's going to appear to work in the future. Earned Value is an enhancement over traditional accounting development measures. Traditional techniques act on planned accomplishment (expenditure) and actual costs. Earned Value goes one step in addition and examines actual accomplishment. This offers managers extra perception into potential hazard areas. With a clearer picture, managers can create threat mitigation plans based totally on actual cost, schedule, and technical development of the paintings. It is an “early warning” program/assignment control tool that permits managers to discover and control issues before they turn out to be insurmountable. It allows initiatives to be controlled better – on time, on budget. Earned Value Management System is not a specific system or toolset, however rather, a hard and fast of hints that guide a company’s management control machine. Below is the earned value analysis of the CTU project;

To get the planned % progress for the 16 weeks, I will use the following;

Percentage progress planned= Time that has elapsed /Time scheduled for the task x 100

University management complex = 12/12 x100 = 100%

Health Care and Nursing School = 4/24 x 100 = 16.67%

International Business School = 4/13 x 100 =30.77%

The law school = 4 /11x 100 = 36.36%

To get the projected duration based on actual, I will use the following;

Projected actual duration = 100% x number of weeks already worked/Completed %within the weeks worked

Projected total spend = projected actual duration x actual cost already spent/Weeks already worked

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