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Construction

Improper management of construction projects is identified as the most significant reason for time and cost overruns in projects worldwide. It is reported that around 81% of projects run behind schedule! And around 42% of projects have significant cost overruns.

The basic problem of traditional construction management is the inadequacy to understand the multiplicity of issues in the business context.

Description

Typical Mandates

Current Thinking

Traditionally, construction and real estate management grew from what one called the 'developer' and the 'service provider' to a more comprehensive sector that looks at more than just these issues.

At the core, therefore, there are four major areas of operation:

Planning that comprises of services like site selection, feasibility studies, concept design, architectural services, etc.,
Construction, comprising of activities involving the construction and its management,
Maintenance and Services, which actually involve activities to renovate and maintain the property, the facilities and providing them with services like air-conditioning, security, canteens, issue management, etc. and
Disposal, which involves various disposal measures including sale, quarantine, etc. for the real estate property and could be extremely intricate at times.

These areas of operation generally spread over three fundamental business segments viz. residential, commercial and industrial businesses. The nature, complexity and scale of the business vary considerably from one segment to the other. However, one must understand that this sector spans across all possible business environments, viz. B2C (Business to Customer), B2B (Business to Business), B2G (Business to Government) and B2S (Business to Society).