Construction and Infrastructure Management

PLACON Construction and Infrastructure Management

Brief Scenario

  • Construction and Infrastructure is a key to socio-economic growth of a country.
  • Infrastructure covers very wide scope ranging from roadways to airways, ports to airports, bridges to dams and power generation facilities.
  • Development in Western countries; and in countries like Japan, Singapore and UAE has shown that infrastructure development is a pre-condition for economic growth as well as socio-cultural change.
  • In Indian situation; housing, sanitation and rural infrastructure (rural markets, agricultural go-downs, drinking water, drainage system and power supply) are receiving increasing attention in policies and programs.
  • Construction is a part of infrastructure development. However, there are some aspects of construction sector which assume special significance from the perspective of Construction Management.
  • In India, construction is the second largest economic activity after agriculture. Investment in construction accounts for nearly 11% of India’s Gross Domestic Product (GDP).
  • There is considerable scope for improvement in areas like fund flow management, quality management, technology management, marketing orientation and concern for social issues.
  • Government and NGOs engaged in rural development are increasingly realizing the need for technical training & education in various construction and infrastructure development operations,
  • Foreign direct investment (FDI) has been moving upwards.
  • Players from foreign countries are emerging as a force for improvement in organizational and operational aspects of infrastructure and construction management.
  • Need is experienced increasingly for education and training in infrastructure development, planning and construction management.
  • Rural infrastructure and housing are becoming important elements of infrastructure development.
  • There is an increasing trend in favor of Public Private Partnership (PPP) model for execution of infrastructure and construction projects.
  • Government intends to earmark US$ 1 trillion for infrastructure development over next five years. To speed-up the same, it is also trying to rope-in private investments through public-private partnerships (PPPs).
  • Policy makers in all the developing countries including India, are giving highest priority to construction & infrastructure development.

PLACON Observations

  • PLACON has observed that there is a need to bring greater commitment to construction quality. Cost effective quality management is one of the major issue in construction.
  • PLACON also felt the need of change in attitudes and behavior of small construction companies, contractors and builders/developers; particularly in the context of business ethics, values, customer satisfaction, quality orientation, supply chain management and legal compliances.
  • For India, availability of manpower is not a big challenge but development of skilled talent is a major challenge for construction & infrastructure industry.
  • PLACON observed threat for small construction companies, builders, contractors and developers as major foreign players and large construction companies are entering in small towns and cities also.
  • Currently in India 100% Foreign Direct Investment in Construction and Infrastructure sector is allowed, which is a challenge as well as an opportunity for both small & medium players as this scenario could bring contractual job-work too.
  • The construction equipment sector in India has been growing at a scorching pace of 30% annually, which creates opportunity for small and medium firm owners to grow with industry trend.
  • PLACON felt the need of training among the skilled labor community, e.g., masons, plumbers, electricians. so they can also be a part of giant construction and infrastructure project.
  • Infrastructure development projects have a strong socio-cultural dimension which needs to be recognized during project planning and execution.
  • Execution of projects through PPP model has also raised many opportunities as well as issues. Such projects require careful project planning, funding strategies, community involvement and professional project management and monitoring systems.

PLACON Competency

PLACON has worked with state & central governments, local and international governing bodies, private sector players and educational & research institutions. PLACON Team has been involved in providing consultancy and training related services in the broad areas of business strategy building, legal compliances, project management and monitoring systems. The areas of PLACON competency include the following.

  • Project Management
  • Project Planning, Monitoring & Information System
  • Financial Planning & Control
  • Cost Estimation and Control
  • Opportunity Identification
  • Feasibility Studies
  • Detailed project reports (DPRs)
  • Design, Review and Evaluation of Organization Structure/ Restructuring
  • Strategic Business Plan
  • HRM – Manpower Planning, Recruitment Strategy, Manual, Service rules, etc.
  • Tendering Process
  • Legal Aspects
  • Contract Costing System
  • Social Cost Benefit Analysis
  • Urban planning and feasibility studies
  • Urban infrastructure projects.
  • Impact assessment studies
  • Training need assessment
  • Designing training programs
  • Training follow-up and impact assessment
  • Research in socio-economic aspects of Construction and Infrastructure Development programs.

Download a detailed description of the Sector Scenario, Challenges & Opportunities, PLACON Experience and an Illustrative Case Experience (pdf, 297kb)