CM Case Study 4 Ambitious PM

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National Institute of Construction

Management And Research(Pune)

ACM Section 3.
ACM C A01 Construction Management.
Case Study Session 4 : Ambitious Project Manager.

AP19219 BHARAT KARDA. AP19296 POOJA BHOSALE.

AP19244 ADITYA KARANJKAR. AP19309 VINAY BHAPKAR.

AP19248 MOSAM TRIVEDI. AP19310 PINAK PRAJAPATI.

AP19254 DARSHAN GOSWAMI. AP19312 SNEHA BANKAR.


Ambitious Project Manager.
• The Project was bid lump sum at $50,00,000 by a staff
estimator.
• It was largest project undertaken by GC company.
• Staff estimator made error of $10,00,000 .
• The PM was given the authority to make every possible
change.
• PM also lost his project Engineer.
• He has to appoint a new Project Engineer himself as he did
not receive help from home office supervisory.
• OIC was meeting only once to PM in a month.
• The project was ultimately brought in with a clear fee of $
600,000 but the client relationship has been damaged.
1. Why assign these project to new PM?

• The scenario dictates that there was a major error in the


tender bidding.
• Due to the negligence of OIC the bid was submitted and
approved at much lesser rate than required which created
deficit of $10,00,000.
• To avoid the blame in this situation he appointed a new PM
due to his lack of experience he did not have a check on
estimate.
2. Why did the OIC distant himself?
• If OIC would remain close to PM then the PM would realize
that he has been appointed to hide the error made by OIC
during the tendering process .

3. The PM did what he was asked to do.


Didn’t he??
• Yes PM did what he was asked to do.
• By trying to mend the error he retrieved $600,000 from
the client.
4. He was successful. Wasn't he??
• Yes, he was successful in his efforts because he gave his best
by sacrificing his health and family time to bring the project
back into the black.

5. Did the PM make any error??

• He did not maintain the chain of command and did not


report to the higher authority and didn’t take the approval
of higher authority at each stage.
6. What would you have done??

• I would have halted the work progress till proper approval and
all the clearance from OIC.

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