Project_Costing

1.1 Memorandum to CEO SP Construction, Melbourne. Date 7th Jan 2010 To- Ronald Bourke CEO, SP constructions. From - Swapnil Sinnarkar Team Co-ordinator SP Constructions. Subject - Regarding project selection and budget approval. The purpose of memorandum is to share with you the update information about project selected for feasibility study for expansion of business into new field of construction. Our successful delivery of commercial project and need for business expansion construction of sport venues is good option our organisation, with lot of opportunities and less competition as compared to other field construction. To undertake this research on three projects me and m team need some approvals regarding budget and support from you. Along with the letter I have enclosed budget of project, organisational chart and schedule for the project. Looking forward for your reply. Thanking you. Yours Sincerely, Swapnil Sinnarkar Team- Co-ordinator. Enclosure- i) Organisational chart ii) Estimated Budget iii) Project Schedule 1.2 Organisational Chart- Executive Summery: This report includes analysis and research on sport venues as new field of business for expansion. It is prepared by a team of 6 members on behalf of CEO. Team scrutinised risk involve and opportunities in to this field at home country and abroad for board members. Various aspects involved in construction of sport venues are discussed in brief in this report. Three projects scrutinised are Wembley stadium London, MCG in Melbourne and Hindmarsh soccer stadium at Adelaide. Team co-ordinator and planning engineer visited these three stadiums and collect technical and financial data, key findings of projects and prepared report for approval from board members. Team recommend to look forward sport venues as an opportunity for new venture and expansion of business due to booming sport market after analysis of risk involved and future prospects in home country and in overseas. PART -2 Analysis of visited Project 2.1. Wembley Stadium Fig.2 Wembley Stadium Source-: Google Images 2.1.1 Project Description -: The home of English Football since 2003 and New Wembley stadium open with new look and facilities in 2007.Most fabulous, second biggest and tallest in Europe. In history of football it is the one who hosted European cup final five times. It is one of the expensive constructed stadiums ever. It is already go through lot of changes and development but in 2000 The Football Association decided to shut the old stadium for redevelopment of new stadium with capacity of 90,000 and keep up with the changing time. The arch which has been built around the pitch is a landmark for football and London and it is having huge impact on local area and proud for local people. 2.1.21Location-: Wembley National Stadium Ltd, London, U.K. 2.1.3Major Stakeholders -: 1. The Football association 2. The department of culture media and sport 3. Sport England 4. The London development agency 2.1.4 New features -: • Pitch Size- 105m long X 69 m wide • Circumference- 1km • Two giant screen each the size of 600 TVs. • Lift -26 • Retail Units-47 • Restaurants- 8 • Bars-34 • Escalator- 30 • Capacity- 90,000 Seats with no obstacle view, 75,000 seats for concert, 60,000 for athletic with310 wheelchair space and 400 press seats. 2.1.5 Key Construction Quantities-: 1. Concrete – 212,000 tones = 90,000m3 11. Foot print – 103,000 m2 2. Steel Reinforcement = 15,000 tonnes 12. Bowl Volume – 1,139,100 m3 3. Foundation piles – 4000 13. Arch – 1750 tonnes 4. Structural steel – 23,000 tonnes 14. Gas supply – 3Mw 5. Block work -125,000 mm2 15. Electricity supply – 20 Mw 6. External wall cladding – 18,000 m2 16. Toilet- 2618 7. Internal floor space – 180,000 m2 17. Doors – 3488 8. Moving roof area – 13,722 m2 18. Flood Light -380 9. Area roof – 40,000 m2 19. Fibre Optic cable 10. Smoke detector 20.Speakers- 5000. 2.1.6 Project Delivery System-:  Project delivery system adopted during construction of Wembley stadium was engineering plus contract. Main construction contract allotted to Brookfield Multiplex construction.  Architect was Foster plus partner and populous and Structural engineer Mott Stadium consortium (Mott Mc Donald and other counterparts).  Main liaising between principal and contractor with project management responsibility performed by Symond. 2.1.7 Project Organization Chart-: Project Team-: 1) Stakeholders- i) The Football Association ii) Department of Culture and sport iii) London development agency 2) Architect- Populous and Foster partners 3) Structural Designer-: Connell Mott Mac Donald and SKM Consulting 4) Planning Consultant-: Nathaniel Lichfield and Partners 5) Main Contractor- Multiplex Construction 6) Demolition-Griffith McGee 7) Piling Specialist-Stent 2.1.8 Key Methods-: Construction of Arch-: • Arc is fabricated on site over a period of ten months. • It consists of 41 steel rings fabricated in North East of England. • Straws cut to length on site form a part of structure three assembled ring were positioned and aligned vertically within on site fabrication • Rings are connected together to form arch module. • Each such module lifted out of sheds and placed on stillages on Southern side of stadium .Such 13 module assembled on site. After completing the assembling pencil end welded to each other and then the pencil end attach to hinges embedded in concrete. Lifting Of Arch-: Stage1-: First arch raise in 30 degrees slowly and during this stage cables are attached to permanent support. Stage 2-: Arch rotated to 65 degree, at which points restraints cables are engaged. Stage 3-: Then arch rotated slowly in vertical position to 100 degrees, during this three main struts are lowered to the ground and restrained cable took complete load. Stage 4-: At last it parked at 112 degree and all jacking operations have been done and two struts lowered to ground. In final position arch is inclines to vertical and held in position by 5 restrained cables until the roof perimeter truss is completed and the permanent backstay cables can be connected. The arch is kept in this position until final erection of roof. 2.1.9 Resources -: Technical and Non –technical staff -: 1. Geologist 12. Welder 2. Civil engineer 13.Driver 3. Construction manager 14.Crane and concrete pump operator 4. Survayor 15.Electrisian 5. Quantity Surveyor 16.Store keeper 6. Safty Engineer 17.Service specialist 7. Qaulity Engineer 8. Supervisor 9. Steel Fixer 10. Carpenter 11. Unskilled labour 2.1.10 Temporary Facilities On Site-: Site Office- It is the office constructed for administration, managers and for engineers to work. Store -: It is the provided for storing the construction material and small machineries and necessary equipment. Pantry-: It is constructed for all staff to have their meal. Fencing- Before starting of construction fencing around site is important to protect the site material and defining boundary. 2.1.11 Project Cost and Finance-: • Total project cost of Wembley stadium estimated by Multiplex was £ 757million.Out of this total cost £ 352 million allotted for construction stadium. • A National Lottery fund was invested £ 120 million for construction of stadium. • West Deutsche Landesbank of Germany gave financial support to project by sanctioning £ 426 million to project. • £21 million funding for the project obtained from Ken Livingston and Brent Council. • For improvements to transport infrastructure WNSL secured further £17.2. 2.1.12 Schedule-: Activity 1 - Demolition of old structure – Sep 2002 – Oct 2002. Activity 2- Piling Foundation- Oct 2002 – Jun 2003 Activity 3- Construction of Arch - June 2003- Jan 2004 Activity 4- Erecting steel frame of the stadium- Jan 2003 – Jun2004 Activity 5- Raising Arch – Jun 2004 – Nov 2005 Activity 6 - Construction of roof –Nov 2005 – Feb 2006 Activity 7 - Installation of drainage and preparation of pitch- Feb 2006 – May2006 Activity 8- Opening of stadium - 13 May 2006. 2.1.13 Cost of project-: Cost of project in 2001 = £ 757 million Assume cost of inflation – 5.5% Formula for cost escalation- p x (1+ inflation rate) ^n = 757 x (1+ 0.055) ^8 = 1161.75 Million pounds Cost of project in AUD= 1 pound= 1.82754 AUD =1,161,750,000 x 1.82754 = 2123144595 AUD =$ 2123.15 million 2.2 Melbourne Cricket Ground-: Fig.2 MCG Stadium Source-: Website Australian Institute of Project Management. 2.2.1 Project Description-: It is Australia’s greatest sport stadium with total capacity “of 100,000. It is located in the heart of Melbourne city. Locals often referred it as “The G”. This ground mainly hosts cricket and Australian rule football, but other evens like live concerts, rugby league also been hosted by “The G”. As it had been host for the big events like summer Olympics and 2006 Common Wealth Games, it is remembered in world’s sport history as a centre piece stadium. Boxing Day December 2005 was a golden day in the history of the “G” as it has been listed in a Victorian heritage register. 2.2.2 Location-: Yarra Park, Melbourne, Victoria. 2.2.3 Major Stakeholders-: 1. Victoria State Government 2. Melbourne Cricket Club 3. Australian Football league 4. National Rugby league 5. Cricket Australia 2.2.4 Facts and Figure-: • Total Capacity of ground-100,000 • Total Area – 20,290 Sq.m • Size-174 m x 149 m • Volume- 1,700,000 cubic metres • Size of cricket pitch-22 yards • Sprinklers – 96 nos. • The goal post for the AFL matched are 11 in height • The MCG has 2 electronic video screen vision boards, located at level 4 at either end of the new Northern Stand. 2.2.5Key Features-: • The MCG has high quality lighting with 6 lighting towers providing clarity and versatility to the spectators. • More than 80 days of cricket and football each year played at MCG and at least thee million people visit the ground annually and to cope up with this two sports events the MCG adopt the world’s first successful portable cricket pitch technology. • The LED screen used in stadium consume half the power require for two screen ,also has five times the life span and it is lighter structure so it making easier during construction. • Number of security surveillance camera are used for protection property, asset and controlling the crowd during events and to avoid mishap. 2.2.6 Key Construction Quantities-: 1. Concrete-55,000Cu.m 6.Escalator 2. Steel for reinforcement 7.Pasangr lifts-12 3. Preacast seating plates 8.Parking area- 370 cars 4. Structural steel 9.Glass roof 5. Steel cable support 10.wo video screens 2.2.7 Project Delivery System-: Project delivery system adopted in redevelopment of MCG was “Project Management” (EPCM).In this project manager as Steinfort project management act as Mediator between Client and Contractor & Designers. 2.2.8OrganisationalChart . Project Team-: 1) Stakeholders- i) Melbourne Cricket Club, ii)Cricket Australia, iii) Victoria State Government, iv) Football League and National Rugby League. 2) Architect-: MCG5 (Darryl Jackson and Associates, HOK Sports, Hassell, Tompkins Shaw and Esans & Cox Sanderson Ness) 3) Main Contractor-:Arup and Partners 4) Structural Designer-:Connell Mott Mac Donald and Arup 5) Project Managing Consultancy- Paul Steinfort & Associates 2.2.9 Resources-: Technical and Non –technical staff -: 1. Geologist 12. Welder 2. Civil engineer 13.Driver 3. Construction manager 14.Crane and concrete pump operator 4. Survayor 15.Electrisian 5. Quantity Surveyor 16.Store keeper 6. Safety Engineer 17.Service specialist 7. Qaulity Engineer 18.Planning Engineer 8. Supervisor 19.Billing Engineer 9. Steel Fixer 10. Carpenter 11. Unskilled labour 2.2.10 Project Finance -: The recent re-development was the major change made in the history of the MCG. The cost involved in the re-development was $ 437 million. 2.2.11 Cost of project-: Cost of project in 2006 = AUD 437 million Assume cost of inflation – 5.5% Formula for cost escalation- p x (1+ inflation rate) ^n = 437 x (1+ 0.055)^8 = 513.14 Million AUD 2.3. Hindmarsh Stadium-: Fig.3 Hindmarsh Stadium Source-:Google Image 2.3.1 Project Description-: Hindmarsh soccer stadium is home of soccer in South Australia. It was completely rebuilt for 2000 Sydney Olympics. The main changes done were up gradation of main grandstand and all terraces surrounding the ground were replaced with uncovered seating. Up graded seating capacity of ground now is 15,000. .he cost of project was $ 41 million (SA Auditor-General 2001-3). 2.3.2 Major Stakeholder-: 1) South Australian Soccer Federation. 2) South Australian Government 3) Department of Recreation, Sport and Racing. 4) NSL Club. 2.3.3 Key Features-: Construction of new corporate boxes and new club rooms according to specification given by Soccer Federation. 2.3.4 Project Delivery system -: Project delivery system used in refurbishment of Hindmarsh stadium was professional construction manager (PCM).Where structural design and civil engineering contract allotted to Connell Wagner and Hansen Yuncken Pty.Ltd. was the primary consultant. 2.3.5 Project Organisational Chart-: 2.3.6 Resources-: Technical and Non –technical staff -: 1. Civil engineer 11.Driver 2. Construction manager 12.Crane and concrete pump operator 3. Survayor 13.Electrisian 4. Quantity Surveyor 14.Store keeper 5. Safety Engineer 15.Service specialist 6. Qaulity Engineer 16.Planning Engineer 7. Supervisor 17.Billing Engineer 8.Steel Fixer 18.Welder 9. Carpenter 10. Unskilled labour 2.3.7 Project Finance-: Soccer federation arranged major funds for this project from National Bank of Australia, Ministry for Recreation, sport and racing. Total cost of project is $ 41million. 2.3.8 Cost of project-: Cost of project in 2002 = AUD 41 million Assume cost of inflation – 5.5% Formula for cost escalation- p x(1+ inflation rate)^n = 41 x (1+ 0.055)^8 = 59.64Million AUD 3. Risk Analysis – Likelihood -: Threshold Description Probability A Almost Certain 95% B Likely 80% C Moderate 50% D Unlikely 20% E Rare 5% Threshold Description Cost(AUD) 1 Insignificant Up to 15m 2 Minor Up to 45m 3 Moderate Up to 75m 4 Major Up to105m 5 Catastrophic Over 150m Consequences-: Risk Severity Likelihood X consequences Combinations Approx Range of Value Severity Colour Extreme A3-A5, B4-B5, C4-C5, D5 >50m High A1-A2, B2-B3, C3, D4, E4-E5 9m to 50m Moderate B1, C2, D3, E3 2m to10 m Low C1, D1-D2, E1-E2