Real estate is a capital which yields valuable profits overtime. Some of the factors that affect the property value are location, structural finish, aesthetics features, amenities/facilities/ and/or services, general surroundings and economic and/or political conditions. All of these stages undergo a planned and coordinated project activity.
The dependencies- human, capital, technology, engineering process and sustainable solutions- all five major components are essential in the smooth execution of a practical project management in any real estate development.
Project Management is the application of Knowledge (time management), Skills (proficiency in using applied techniques), Tools and Techniques (activity), to project activities to meet project requirements. In real estate industry especially in the development undertaking, a project management among others comprises financial planning, legal preparation, engineering, marketing and construction all put up together as a complete project plan. Well-planned project management has a positive impact on the quality of construction in real estate.
In phases of construction activities, project management follows the discipline of design phase (including the pre-design phase), construction phase (including pre-construction bidding), and post construction phase (property management). Project management is the need of the hour. With growing complexity and size of projects, and also the lack of skilled professionals, organizations are looking for innovative ways to overcome these short comings.
With progress in research and developments, the field of project management continues to evolve in terms of knowledge and practice. The rationale of project management arises from the need to institute consistent standards and methods, eliminate project delays, correct poor or improve planning processes, provide clarity on roles to ensure that authority is matched with responsibility for completion of project, advance project performance, curb over-runs and switch to cost effective techniques. Absence of robust project management capabilities leads to project complexities not accounted for. The infrastructure sector has accepted the concept of Project Management Office (PMO), for independent reporting and ensuring project management excellence.
This new concept of project management has heads turning and it is a real revolution which will take the country forward, since real estate sector is the backbone of Indian economy. The new government with its project of Smart Cities, Housing for all, needs proper management if it needs to meet the deadline so Project Management will go a long way in getting things in order. Institutionalizing project management for professionals is another important step forward which should be taken, so we don’t fall short of professionals.
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