Construction Project Management Plan: Wellington Hospital

The construction sector is expected to contribute an estimated 13.5% of global GDP by 2030. This growth projection is estimate to account for a 35% forecasted rise from 2020 to 2030. Growth rate in infrastructure construction from 2020-2030 for

Australia is estimated to be 3.4% with 3.7 in United Kingdom and highest in India at 9.8% and lowest in Japan at 0.8%. The global pandemic saw a large contraction in global economic activities since the Great Depression which impacted global construction projects with small to large construction companies going into liquidation. Inability to spend on contact sensitive activities such as dinning out, traveling and leisure led to high household savings with an anticipated increase in investment power including government recovery plans to rebound to pre-pandemic construction activities.

The global pandemic saw a 6.7% decline in non-residential building works and potential job cuts. Other issues plaguing the construction sector before the pandemic were low labour supply, faulty procurement systems, low productivity, delays in consenting process, cost overruns, lack of technological training, poor Treaty relations, low quality etc. While recovery is ongoing, natural disasters remain a constant challenge for projects with rapid growth building for climate change concepts. Robustness, disaster related damages and support for recovery forms a major part of research and discussion towards a more resilient construction sector. Varying levels of challenges exists in delivering post-disaster construction ranging from stakeholder coordination, deficiency in legislature, resource scarcity, chaotic environment, shortage of skilled labour and other issues. In small island states, project management principles were found to be loosely enforced and in developing nations, build back scheme’s reconstruction guidelines were not followed which could lead to loss of livelihood during a disaster.

To enable a turnaround in this trend and improve project management contribution to building for climate change, various projects have been approved with an estimated budget of two-hundred million dollars each across four nations prone to natural disaster. To tap into this revenue stream VIC Construct (VICC) a dedicated project management company was formed by VUW. Given your unique knowledge and skills from VUW, you have been assigned as the Project Manager to develop a Project Management Plan for any of the twelve (12) key projects (see Table 1 for your assigned project). Your project management plan (PMP) for the first part of assessment is not limited to the following components:

1. Project overview, business case and charter
2. Structure, scope and resource management
3. Communication and stakeholder management
4. Procurement and supply chain management
5. Quality and professional project management practice
6. Risk and safety management

The projects are earmarked for construction in 12 sites (Table 1). Please pay particular attention to project team formation, cost, terrain, climate, labour supply and other construction challenges faced in managing such projects and incorporate this into your PMP.

VICC relies on your innovations to boost confidence in delivering a hitch-free project. VICC would also be focusing on rich data content from past case studies to enable more informed decision making moving forward with these projects. Remember, you are NOT been assessed for your knowledge in building design but project management. There is little details provided during the feasibility phase of these projects so, state clearly the assumptions applied in your report.

Table1: Assessment Allocations

Experts Answer on Above Questions on Project Management

Project overview, business case and charter

The project is all about a project management plan for a hospital construction project managed by VICC. The main focus of the project is on project management rather than Hospital building design. The business keys for the given project is to justify the hospital project as a climate resilient construction investment with specific emphasis on site terrain, climate, labour availability, project cost and resource constraints.
Business justification – the given hospital project is a part of a broader US$200 million per project investment program across 4 disaster prone nations, with the objective of strengthening construction activity, and enhancing project management contribution to climate change resilient construction. The objectives of the project therefore includes both infrastructure delivery and disaster resilience.

Main project problem

The main problem of the given project is to ensure 100% delivery of the project despite having construction sector problems identified in the given case study which include labour shortages, low productivity, procurement failures, delays, cost overruns, inadequate technological training and poor quality problems.

Most significant stakeholder risk – the most significant stakeholder risk is poor coordination between stakeholders especially in situations where multiple authorities, contractors, suppliers and community interest are required to operate in a disaster sensitive environment.
Most significant resource risk – the shortage of skilled labour is the most significant resource and the case clearly identifies the labour scarcity as a major problem which is the sector wide pre pandemic problem and a post disaster reconstruction challenge.
Most significant procurement risk – the scarcity with respect to material and resources, along with unreliable procurement systems could negatively affect the project performance and result in delays and cost escalation.

Most significant New Zealand specific issue

Treaty relations – as per the case study, it is clearly identified that the poor treaty relations is one of the major construction sector problems and it cannot be considered as an incremental stakeholder issue.

Cost position

As per the case information, the project has an estimated budget of US$200 million each and this implies that the Wellington Hospital should be considered as a US$200 million budget envelope project unless a different allocation is established.

Feasibility limitation

As per the case study, it is evaluated that the very little feasibility information is available which implies that it is difficult to present information with respect to the construction duration, the detailed cost breakdown, labour quantities and technical specification.

Success criteria

The project is considered as successful if VICC can deliver the hospital within the approved budget and agreed schedule with required quality standards and proper coordination with all the important stakeholders.

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