(CPM)?. In the following paragraphs, I will demonstrate that RERA is nothing but a formal direction by the government to
CONSTRUCTION PROJECT MANAGEMENT IN NEW avatara -RERA Real Estate (Regulation and Development) Act. When I went through the RERA document, I said ‘hold on’
Is this not what I have been propagating for the last three decades?
How is RERA different from traditional Construction Project Management (CPM)?
In the following paragraphs, I will demonstrate that RERA is nothing but a formal direction by the government to all developers and promoters through a formal legislated act to implement CPM in it true earnestness to deliver promises made. I am reminded of William Shakespeare’s play Romeo and Juliet ‘what is in a name? That which we call a rose would by any other name smell as sweet:’ Few definitions of ‘Project Management’: “The art of directing and coordinating human and material resources throughout the life cycle of a project by using modern management techniques to achieve predetermined objectives of scope, cost, quality and participant satisfaction.” -
Definition by Project Management Institute (PMI) USA.
“The overall planning, co-ordination and control of a project from inception to completion aimed at meeting client’s requirements in order to produce a functionally and financially viable project that will be completed on time within authorized cost and to the required quality standards.” -
Definition by The Chartered Institute of Buildings, UK.
In all, the RERA document consists of nine chapters. Among those nine chapters the third and the fourth chapter are: Chapter – III: Functions and Duties of a Promoter. Chapter – IV: Rights and Duties of allottees. In these chapters, emphasis is on delivering projects on time, as per specifications and within the agreed cost to the satisfaction of the customer/allottee. Some of the Clauses in the act that clearly mandates practice of Construction Project Management (CPM), albeit indirectly
Description
CPM Area
Chapter I: ‘Completion Certificate’ … issued by
Quality
competent authority …. certifying that the project has been
Management
developed according to sanctioned plan, layout plan and specifications*. Chapter II: Real estate registration
Project Planning.
Document to be enclosed Clause no.4, sub clause no. 2, section (l),
Time Management
Sub section (c) The time period within which he undertakes to complete the project or phase thereof as the case may be Chapter II: Real estate registration Sub section (d) That seventy percent of the amount realized for the real estate project from the allottees, from time to time, shall be
Cost Management,
deposited in a separate account to be maintained in a
Risk Management
scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose.
•
•
Chapter III: Clause 11(1), section (e): Public Viewing
Time Management,
Quarterly up-to-date status of the project.
Documentation
Clause 11(3), section (b): at the time of booking
Time Management
The stage wise time schedule of completion of the project …
•
Clause 11(4), section (a):
Quality
…. Structural defects of any other defects, responsibility
Management
shall continue … ever after conveyance deed of all apartments. Chapter III: Clause 13(2)
Quality Management
Description •
CPM Area
… along with specification* and internal development works and external development works
Clause 14(1), Specification* (2) …. specifications* and the nature of fixtures
Quality Management
and fittings Clause 14(2) (I): Alteration to specification*
Change Management
Chapter IV: Clause 19(1)
Quality
Allottee is entitled to obtain information along with
Management
specifications* Clause 19(2) •
Time Management
Entitled to know … Stage wise time schedule
With better clarity on definition on few of the words and phrases such as ‘specifications’, ‘structural failure’ etc., RERA would be a welcome intrusion in to the real estate sector.
Conclusion: in order to be able to adhere to the mandated requirements of RERA, developers and promoters must adopt and practice the following: Design Development
Must be undertaken on priority as it difficult to undertake design related changes.
Finalisation of residential and other facilities for on-going and proposed projects.
Cash flow planning
Considering 70% of collection will be locked in an escrow account cash flow planning is crucial.
Project delivering capabilities
Strengthen deliver and management capabilities around design, costing and quality control during execution and handing over.
Use of management tools Project planning and monitoring Budget and cost audits Risk analysis and management
All developers/promoters must adopt and practice construction project management as an embedded process in all your projects. I am glad that the very same CPM that I have been imploring developers/promoters to adopt as a good construction practice and embed it in their daily project implementation process, has been enforced upon, in a new ‘avatara’ called the RERA.
