With the growth in Indian economy, the construction sector is witnessing a great bloom. New construction projects are getting started everyday across the country. And the luxury construction companies are facing new challenges everyday to manage the ongoing projects.
But the precision and skills that are required in construction goes to a whole different level when it comes to the luxury projects.
What are luxury projects? What are luxury apartments or houses? How different is to execute such a project?
Now to answer your questions, let us draw some examples. Have you heard about Antilla? Yes! We are talking about the second costliest house in the world owned by the Indian billionaire Mukesh Ambani. That is what a luxury apartment or house supposed to be. The house that exceeds all levels of lavishness can be called the luxury house. And to execute a project of such caliber is similar to constructing Taj Mahal in present days.
So how do you manage it? What are the processes involved?
Luckily, we have got all the answers you need! So, fasten your seatbelts and scroll down as we unravel the secrets of execution of luxury projects.
What is construction project management?
There are several responsibilities associated with every project. And it needs proper management to complete the project within the said deadlines. So, we know for a fact that the project management is a highly daunting task. It is the duty of a project manager to see the project to its completion.
Before the start of a project, a project report is prepared by the core project team and it is presented to the stakeholders as and the concerned executives of the company for approval. The project report obviously contains the whereabouts of the project, an estimated deadline, stakeholder analysis and the estimated cost of the project.
Once the report is approved, it is the duty of the project team to adhere to the report and complete the project within the estimated deadline as well as cost. And that is why; project management services have become so much important across the world. Now, what is construction project management? And how is it different from the general project management? Well, let’s find out.
Project management as described by the PMI or the Project Management Institute defines the term project management “as the skill of managing the human labour and material resources till the completion of the project in order to accomplish the preordained goals of scope, cost, quality, time etc”. But how will you then define project management in construction? As the PMI suggests, just put the word construction in the definition of project management and you will get what you are looking for.
The management of construction projects requires utmost coordination, planning as well as control over the aspects of a construction project. The tasks for the management of construction project changes with the project; hence, the consultant project managers are required to have strong communication, problem-solving and proper knowledge of the construction process in order to see a project to its successful completion.
So, it is very obvious to say that the Construction Project Managers play the most important role in a construction project. The duties of a Construction project manager are various. From directing and coordinating the material as well as human resources to planning, cost and time management and quality control, a construction project manager has to take care of everything. It is also the prime duty of the construction project managers to ensure that the project is forwarding as per the proposed plans.
How managing a luxury project different from other projects?
There is almost no doubt that managing the construction of a luxury home is a daunting task. But how much different are the project management techniques in case of the luxury homes? Let’s have a look! Actually, the basics for a luxury project like cost, time and quality management are similar to that of the other construction projects. But the importance of adhering to these preordained objectives are much more in the case of luxury projects. That is why; luxury home construction company like ours follow project management processes in order to enhance the efficiency of the projects.
The use of a project management in a luxury project is multifaceted. It helps in increasing the efficiency of the luxury project and ensures that the outcomes that you get after the completion of the project are as per the preset outcomes. A luxury project is supposed to satisfy the customers in terms of the quality of the house/apartment and it is also supposed to satisfy the customers in terms of the money that they are paying to build the house at the end of the project. That is why a luxury construction management plays multiple roles from the inception of the project to its completion.
In a luxury construction project, there is no room for any error or problem. You will have to nullify all the risks and errors in planning as well as the execution of the project. The fact is a project manager will have to ensure that the design plan of the project is foolproof without any slightest error. Then comes the material resourcing! The manager will have to ensure the best materials are used for the construction purposed. For that, they will have to import only the best materials around the world for the project. And the last thing that needs to be ensured is quality. The outcomes have to be of best quality without any compromise to satisfy the posh customers.
What is the scope of work of a luxury construction company?
The luxury construction company have a wide scope of work in the luxury construction industry. It is well known that construction industry deals with real estate and other construction works. And as stated the construction of luxury house/apartments is one of the most important works in the construction industry. So, the construction projects can be considered completely unique as the requirement changes from project to project.
Now, to deal with such unique requirements of a construction project, you will need to have vast expertise on organisations along with considerable knowledge about the skills that are required in a construction project.
From the inception of the project to its completion, the luxury construction company work hard to make sure that the outcomes of the construction project are as per the preset outcomes. But what does a company actually do? At the very beginning, a company needs to prepare the scheduling and plan of the project. Once that is approved, it is their duty to see whether the resources and labors are being well utilised. Plus, they take all the steps necessary to ensure that the project gets completed meeting all the quality standards. Last but not the least, the luxury home construction company also ensure that the time and budget are not exceeded. Yes! It is also their duty to keep a proper balance between the quality, cost and time of the project.
As stated earlier, the scope of work of the luxury construction company is multifaceted. From the start till the end of the project, they exercise their vast skills and expertise to ensure that project is completed efficiently. It becomes their duty to bring efficiency and a decent flow of work in the ongoing project. They are also entrusted with the responsibility of satisfying the customers, vendors, and stakeholders with quality outcomes as per the preset standards.
What roles and responsibilities does a construction manager have on the luxury construction projects?
Actually, there is no particular role that a construction project manager plays in a construction project. Rather, it will be fair to say that they play a myriad of roles as required for the project to complete successfully. Every responsibility from the inception of the project to its conclusion is controlled by the project manager. It is the duty of a project manager to ensure that the outcomes of the luxury construction project are same as the preordained outcomes.
So, what are the roles and responsibilities that the project manager in India offer? Well, check them out:
- Scheduling and Planning of the project:
The first thing that requires the attention of a project manager is the project scheduling or planning the luxury project. A project manager needs to outline how the different activities indulged with the project will be completed; how the resources and cost will be managed; specifying a particular timeline and most importantly to ensure the Total Quality Management or TQM. And all of these are to be included in the project schedule by the manager or consultant.
- Total Quality Management:
Yes! This is one of the most important responsibilities of a manager or consultant. The total quality management has two important parts which are quality assurance (QA) and quality control (QC). Quality assurance and control deals with maintaining the quality of the materials, workmanship and the techniques which are used in completing the project. When people are building a luxury house or an apartment, they are looking for high-quality materials used in constructing the buildings along with marvelous workmanship which ensure a luxurious living. If the project fails to deliver that then it can cause serious losses for the construction company. That is why the luxury construction companies try hard to use best project management processes to ensure the highest quality of their houses/apartments.
- Curtailing the over-runs of time and money:
In any luxury project, this is a huge concern. It is the duty of the project managers to ensure that the project gets completed within the preset time and cost. As a matter of fact, if the project takes more money and time to complete than it was supposed to then it can become a great reason for resentments within the construction company, stakeholders and especially the customers. So; project managers work extra hard to curtail the over-runs.
- A balance between Cost, time and quality:
Of course, a balance between the cost, time and quality is most important in any luxury project. And it is the duty of a project manager to ensure the balance is achieved. You can well understand that a balance is needed between quality and cost. You cannot hope to overrun the cost and time that you have preset for the project during its scheduling. Now, add the quality to the scenario! Then what idea does it give you? Well, it is obvious! The project needs to be completed within the preordained cost and time without making sacrificing the quality of the outcome or in these case the apartments.
The demand for luxury apartments or houses is increasing with every passing day. And it has become one of the major sectors in the construction industry with several luxury construction projects now ongoing throughout the country. Of course, there are several other responsibilities that a project manager has like ensuring the safety of the project, feedback analysis and so on. But the ones that we have mentioned above are the most important roles of a manager or consultant in a luxury construction project.
How to manage a luxury construction project step by step?
Like everything else in a construction project, the management of a luxury construction project also needs to be done very tactfully. And to ensure that the management process is efficient, there are a number of steps involved in the luxury construction project management process.
So, what are these steps are we talking about? Is that what you reckon? Well, why don’t you see them for yourself? Have a look:
Yes! The very first step in managing a luxury construction project lies in the initiation of the project itself. At the very start, it is the duty of a project manager to evaluate all the aspects. Why do you think the evaluation is needed? The evaluation of the different prospects of the project is required in order to see whether the project is feasible and whether it can be done. This is, of course, one of the most daunting jobs in the luxury construction process as the profitability of the company depends solely on the results of this evaluation process.
Of course, planning is the most important step in the process of managing the luxury construction project. It is the phase in the luxury construction project management process when the project manager devises the project management plan. The Project Management Plan consists of the scope, estimated costs and time along with other baselines required for the project. Moreover, the breakdown structure of the project plan is also included in the project management plan. Plus, the risk management plans and communication plans are also very important parts of it.
You might have understood what this step is all about by now. Have not you? As the title suggested, it is the step where the actual work begins. The project team starts assigning the resources and also starts executing the plans mentioned in the project management plan. Plus, they also need to establish the tracking system to learn the development of the project; revise the schedule of the project and modify the management plan of the project if required.
- Monitoring the performance and development:
Performance and monitoring is an important aspect of the project management process especially in the case of the luxury construction projects. Performance and monitoring give a project manager idea on whether the project is coming along as planned. If it is found that the project is lagging from the preordained standards then it is the duty of the project manager or the consultant to take necessary steps required to make up for it.
Obviously, it marks the end of the project! The project managers gather the project team to take the feedbacks and evaluate the outcomes of the project. Then the successes and failures of the project are identified and noted to get rid of them in the next projects.
What are the risks to a luxury project?
The luxury construction projects are indeed very complicated; hence they pose a myriad of external as well as internal risks. That is why; the project teams follow a plenty of rules, regulations, codes and laws to get rid of these risks. It is the exact reason why the risk management is an important part of the luxury construction project.
Though several rules are followed to avoid these risks; but it is not exactly possible to avert the risks completely as there are several unknown factors which may play crucial roles to give rise to a risk over the course of the luxury construction project. But what kind of risks are we exactly talking about? What kind of risks can a construction project face? To be fairly honest, there are too many risks that a construction project can face but we have managed to surmise them in the list below for you to check. Have a look:
- Technical Risks:
Well, the technical risks are bound to be at the top of the list! Technical risks could be anything; actually, any risk which prevents you to construct the luxury apartments as per the preordained standards can be termed as the technical risk. From the shortage of resources to faulty construction designs to inadequacy of proper investigation of the project site, anything can be considered as a potential technical risk. The technical risks generally appear due to various reasons. A sudden change in the scope of the project or project management plan can give rise to a shortage of the resources. Similarly, a simple design error while modeling the luxury apartments or houses can pose a grave threat. This way; the project management team in a luxury construction project pays extra attention to avoid the technical risks as much as possible.
- Logistical Risks:
In any industry, logistics is very important. You always need to transport things from one place to another; so the importance of logistics in the industrial sector is something which cannot be undermined. Now, in a luxury construction project logistics play a very crucial role since it is responsible for delivering the material resources to the project sites. So, unavailability of proper transportation to the project site or any other factor that could hinder the transportation services can be addressed as the logistical risk. A behemoth project like the construction of luxury apartments cannot be started without taking necessary steps to avoid the logistical risks as much as possible.
- Management Risks:
Management risks are common in the construction industry. Many construction projects are often abandoned due to lack of proper management and skilled staff. That is why; the construction companies nowadays seek the help of the expert project management consultancies in order to minimize the management risks as much as possible.
- Financial Risks:
In the luxury construction projects, finance plays a crucial role. Without the proper amount of money, it is not possible to get a fresh supply of the resources required for the project. Hence, it can be well understood how great a threat, the financial risk poses. Now, the factors like inflation, taxes or simply an inadequate budget can lead to the rise of financial risks.
- Weather Risks:
Well, no one can do anything to avoid these risks. Nature acts according to under her own helm. So, all we can do is to take necessary precautions in order to minimize the effects of the natural disasters. From natural disasters like earthquakes, floods, cyclones, and tsunamis to extremely bad weather, everything can be considered as weather risks as they can seriously damage the project or can hinder the work on the site.
There are few more risks like socio-political risks that a construction project may face but they are very rare in occurrence. But the risks that we have mentioned above are the most common and greatest risks that the luxury construction projects face. Hence, the project consultancies or the project team are charged with the duty of evaluating all the factors and come up with a proper risk management plan in order to avoid any situation that can hinder the project.
How important is quality control in the luxury construction projects?
Quality control is, of course, one of the most important things in any luxury construction project. This is the very reason why the project teams or consultancies use the Total Quality Management or TQM to assure and control the quality of the construction.
The quality of the outcomes in a luxury construction project is exactly the thing that is directly related to the satisfaction that you will be giving out to the buyers. Without proper quality control, it can be very risky to earn profits once the project is finished. Hence, you can surely understand that the lack of quality control can bring about the disaster to any construction money as they are bound to lose money if the quality is not satisfactory to the customers.
But how will you assure and control the quality of a luxury construction project? Well, the quality assurance and control need to start from the very beginning of the project. It is the sworn duty of the project managers or consultants to specify the quality standards in the project management plan and to adhere to the level without any deviation. Plus, everything must be checked well to get rid of any errors. A small angular error in the design or a faulty welding of the beams can turn out to be very dangerous in a luxury construction project.
And there is no room for mistakes in a luxury construction project. These projects are supposed to be architectural marvels; wonders of the modern world. Plus, the customers of these luxury houses or apartments are not only the wealthiest people in the country but they are also most powerful. So, even the slightest compromises with the quality can land you into serious legal troubles. Hence, the quality has to be the best!
Does timeline matter in a luxury project?
Well, we have already discussed how important the time and the deadlines are for a luxury project. Hence, there is no point in wondering otherwise. In luxury construction project, proper time management is necessary. Without following the deadlines, it can become impossible to deliver the project within the preordained time limit.
The project managers thus preset specific deadlines and a particular timeline within which the project must be completed. Now, it is the duty of the project manager or management consultant to oversee that everything is going as per the timeline that was estimated.
But why do the timelines matter so much in a luxury project? Isn’t it what you were thinking? We have already told you that in any luxury project there must be a proper balance between the quality, cost and time. Now, if you are not following any proper timeline then you will surely overrun the cost that was estimated in the project management plan. And if you try to curtail the cost at that stage then you will be gambling with the quality of the project.
In a project, the budget is estimated by taking into account the cost of the materials required; wages that would be paid to the workers etc. Hence, crossing the estimated timeline will also mean that you will require more resources and you will also have to pay the wages to the workers regularly for their work in the project. That means by crossing the timelines, you will also be crossing the budget thereby posing a financial risk to the project. So, now you can answer the question yourself. Can’t you?
Why big project management companies fail in delivering luxury projects in India?
It is not too hard to see that the big project management companies often fail to deliver the luxury projects in India. But why is it so? Why do they fail? Well, have a look:
- The biggest problem that the project management companies often face is the unavailability of the resources at the right time. Yes! Unavailability of the proper resources often leads to the failure of a project as it becomes too daunting to give the right input at the right time. Plus, importing the best-in-class material from the foreign countries is also a major problem as the customs department can pose themselves as a great threat.
- Lack of trained workers is also a grave problem in the Indian construction dimension. Most of the workers that work on the construction sites lack proper knowledge and skills; hence it becomes very problematic for the companies to manage the workers to get fruitful result.
- Transportation problems in India are very common. The inadequacy of proper transportation delays the supply of resources and hence becoming an important reason for the failure.
- Socio-political issues.
- Communication gap.
- Inefficient management of the luxury project.
Watch this video from www.projectmanager.com to learn 10 reasons why projects fail.
How can online construction/project management help clients cut down on cost, effort and time in managing projects?
We live in an ever-expanding digital world! For the last few years, the digital technologies have seen tremendous advancement and not to mention how much they have affected our lives. As a matter of fact, this rapid digitalization has also revolutionized the project management process. Online construction/project management has found enormous popularity among the project managers as well as consultants across the country. But how does the online construction/project management can help the project managers or the project teams? Let’s see:
- It offers you 24/7 accessibility to your project. Hence, you can oversee the project plan; the progress of the project; make necessary changes and calculations at any time if your computer is connected to the internet.
- It is easy to use and save a lot of time that was previously lost in making manual reports and schedule.
- The online management offers efficiency and flexibility to the project thereby reducing the risks.
- You will also get proper support from the IT team if you face any problem.
- Project management online will help you to get connected with your project team and receive their feedback on the development of the project without having to go through lengthy reports.
- And last but not the least; you will be able to deploy your commands faster than ever without any hassle.
It is very difficult to manage the luxury construction project in India and the chances of failure are very high. The unavailability of the trained human resources makes it too hard for any client to manage the luxury project. But in order to succeed, you will have to give 100% effort and work with 100% efficiency. There are only a few luxury construction companies in India who understands each aspect of a luxury house/apartment construction. So executing project yourself or getting a regular construction company to do a luxury project is a disaster in making. Take a professional help and we hope our guide will be highly helpful in leading you to the right way.