Margalla View Report

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_________________________________________________________________ Bahria University, Islamabad Margalla View Housing Scheme- A project of Twin City (Pvt.) Ltd May, 2009

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_________________________________________________________________ Margalla View Housing Scheme- A project of Twin City (Pvt.) Ltd

Acknowledgments

First of all we are very much thankful to ALLAH ALMIGHTY, who gave us strength & power to complete this task efficiently & effectively.

We thank our most prestigious Professor Mr. Tahir Masood to provide us guidelines for each & every aspect.

We would like to especially thank Mr. Avais Shahid, Director Finance Margalla View Housing (Pvt.) Ltd. Who was very cooperative and considerate during the whole period of our collection of information.

We are also very grateful to all those who helped us & gave us up-to-date information or any other information regarding this analysis while completing this task.

Thank you in anticipation.

____________________________________________________________ii Margalla View Housing Scheme- A project of Twin City (Pvt.) Ltd.

Executive Summary

The project is based on Margalla Housing Scheme, one of the three projects of the Twin City Society, a private limited company established by four people which has gained popularity overtime due to their provision of value to the customer. This scheme was located in Islamabad, Zone 2 which increased its feasibility for us as a project to be undertaken. This project was selected as an extension to the Project Management course that is a part of our MBA curriculum. The project starts off with information about the Zone distribution in Islamabad as well as the procedure or processes required for the provision of NOC by CDA. Later on we have discussed the organizational vision of the company and their unique features. The structure of business and the project life cycle has clearly been elaborated in this report. Margalla housing scheme has properly allocated its scheduling, performance and specifications objectives, which in return has made it a unique housing scheme.

____________________________________________________________iii Margalla View Housing Scheme- A project of Twin City (Pvt.) Ltd.

TABLE OF CONTENTS CHAPTER 1.AN INTRODUCTION..............................................................................................1 ISLAMABAD ZONES:..........................................................................................................................1 CDA’s Requirements for processing a housing scheme............................................................1 Issuance and Schemes of NOC.................................................................................................1 CHAPTER 2.THE ORGANIZATION...........................................................................................2 TWIN CITY HOUSING (PVT.) LTD:.......................................................................................................2 MARGALLA HOUSING SCHEME:...........................................................................................................3 Unique Features of Margalla Housing:...................................................................................4 Structure of the Business:.........................................................................................................5 MISSION AND VISION OF THE BUSINESS:...............................................................................................6 Mission ....................................................................................................................................6 Vision .......................................................................................................................................7 CHAPTER 3.SELECTION MODEL.............................................................................................7 NUMERIC MODEL:.............................................................................................................................7 NON NUMERIC MODEL:......................................................................................................................7 CHAPTER 4.PROJECT LIFE-CYCLE........................................................................................7 CONCEPT:.........................................................................................................................................7 INITIATE:...........................................................................................................................................8 IMPLEMENTING – MONITORING – CONTROL:..........................................................................................8 TERMINATING:...................................................................................................................................8 CHAPTER 5.MANAGING PROJECT .........................................................................................9 PROJECT MANAGER AND TYPE OF TEAM:..............................................................................................9 OTHER MEMBERS OF THE TEAM INCLUDES FOLLOWING:.............................................................................9 SCHEDULING – SPECIFICATION – PERFORMANCE:....................................................................................9 CHAPTER 6.PROJECT PLANNING PROCESS......................................................................10 NATURE OF ORGANISATION:...............................................................................................................10 Registration with SECP:........................................................................................................10 Water Availability:..................................................................................................................10 Compact piece:.......................................................................................................................10 Ownership:.............................................................................................................................11 Documentation:......................................................................................................................11 Land Acquisition & NOC process:.........................................................................................11 Layout Plan:...........................................................................................................................11 Bank Nomination:...................................................................................................................11 Advertisement Approval:........................................................................................................11

____________________________________________________________iv Margalla View Housing Scheme- A project of Twin City (Pvt.) Ltd.

Mortgage Land:......................................................................................................................11 Final NOC..............................................................................................................................12 Development work:...............................................................................................................12 Discard IESCO and SNGPL:.................................................................................................12 Plot Possession:....................................................................................................................12 Maps approval:.....................................................................................................................12 Construction of houses and Public places:...........................................................................12 CDA takeover:.......................................................................................................................12 HIERARCHAL BREAKDOWN STRUCTURE (HBS):...................................................................................13 NETWORKING:.................................................................................................................................13 CHAPTER 7.ALLOCATION OF RESOURCES:......................................................................14 A)ACCOUNTING:..............................................................................................................................14 B)DOCUMENTATION OF FILES:.............................................................................................................15

CHAPTER 8.CONTROLLING AT TWIN CITY:......................................................................16 CYBERNETIC CONTROL.....................................................................................................................16 POST CONTROL................................................................................................................................16 SCOPE CREEP:.................................................................................................................................16 ENVIRONMENTAL CHANGES:..............................................................................................................17 CHAPTER 9.TERMINATING THE PROJECT:.......................................................................17 VARIETIES OF TERMINATION:..............................................................................................................17 Termination by extinction.......................................................................................................17 Termination by addition.........................................................................................................18 Termination by integration.....................................................................................................18 Termination by starvation.......................................................................................................18 Post project report:................................................................................................................18 HANDOVER TO CDA:......................................................................................................................19 CHAPTER 10.RECOMMENDATIONS......................................................................................19 BIBLIOGRAPHY20 ANNEXURE...............................................................................................................................21 COMPLETE PROGRESS REPORT OF THE PROJECT....................................................................................21 INDEX OF ALL NOC AND CERTIFICATION............................................................................................21 BROCHURE OF MARGALLA VIEW HOUSING SCHEME.............................................................................21 CALL REPORT 1..............................................................................................................................21 CALL REPORT 2..............................................................................................................................21 CALL REPORT 3..............................................................................................................................21 PICTURES OF THE PROJECT SITE.........................................................................................................21 SCREEN SHOTS OF SOFTWARE USED......................................................................................................21

____________________________________________________________v Margalla View Housing Scheme- A project of Twin City (Pvt.) Ltd.

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____________________________________________________________vi Margalla View Housing Scheme- A project of Twin City (Pvt.) Ltd.

TABLE OF ILLUSTRATIONS FIGURE 1- MAP OF ISLAMABAD UNDER ZONING PLAN..................................................2 FIGURE 2-HIERARCHY...............................................................................................................6 FIGURE 3-HBS 13

____________________________________________________________vii Margalla View Housing Scheme- A project of Twin City (Pvt.) Ltd.

Chapter 1.An Introduction Islamabad Zones: Islamabad the Scenic Capital City of Pakistan has been expanding swiftly over past few years. This expansion has taken place due to the prevailing national and international scenarios. At present, the population of Islamabad is just above the million mark. Day by day increasing population and vast foreign investment has given a boom to the real estate industry of this area. Sources reveal that Islamabad is facing a shortage of 40,000 housing units. The existing number of houses here are 70,000 while 110,000 housing units are required1. Government alone cannot cope up with the current housing situation and therefore framed under ICT (Zoning) Regulation, 1992 has allowed investment for the development of Private Housing Schemes in Zone II and Zone V of Islamabad, sponsored by a registered company or a cooperative society. Ever since, the real estate business is experiencing boom in the market, Housing projects in Islamabad are coming up by the dozens, all focused on providing good investment opportunities at large and a little on actual housing options. The only information available to the investor or to the genuine house seeker is what is being advertised or being informed by the property deals. This leaves a huge space in between the ground reality and what is being portrayed and often the buyers get misled in making the right choice.

CDA’s Requirements for processing a housing scheme

•

A housing scheme can be sponsored by a registered company or a cooperative society, hereinafter referred as Sponsor, for an area not less than 50 acres (400 Kanals) present in Zone V and 100 acres (800 Kanals) falling in Zone II, as single piece of land, of ICT Zoning Plan.

•

The sponsor cannot advertise or publicize the proposed scheme in any manner except otherwise stated

Issuance and Schemes of NOC The NOC conveying the approval of the detailed layout plan and engineering design of the scheme is sent to the sponsor after registration of mortgage deed and transfer deed in favor of CDA, and meeting the objections, if any. Thereafter, the scheme can be advertised. The development works of the schemes is completed within the time frame allotted by the CDA ranging from Three years to Six years depending upon the covered area.

Out of total 41 housing societies registered with Islamabad Capital Territory (ICT) Administration, only 9 have been issued No Objection Certificates (NOCs) from the Capital Development Authority (CDA) to launch their housing projects in Zones II and V. However, another eight housing schemes have got approval of layout plan from CDA, while the rest of the cases are at different stages of process to fulfill the required criteria. Most of these unregistered and illegal societies were active in Islamabad for the last few months and were indulged in looting the public without having land for the schemes.

Figure 1- Map of Islamabad under Zoning Plan

Chapter 2.The Organization Twin City Housing (Pvt.) Ltd: Twin City is a private limited company that was established in 1993. Currently the company is supporting three projects including Margalla View Housing Scheme, Pine City Islamabad and Bhurban Terraces Murree.

Margalla Housing Scheme: Margalla View Housing Scheme is located approximately 20 minutes drive from Zero Point ideally situated on main G.T Road in Zone II of Islamabad. The scheme has 40% area allocated to residential and 5% to commercial; where as the rest of 55% is under Roads, Parks/Open Spaces and Community Building. A full system of Electric Power and Sui Gas is available in the vicinity. Underground cable system is used with maintenance friendly power supply to the scheme. All roads and streets are minimum 40 ft. wide.

MARGALLA VIEW HOUSING SCHEME – AT A GLANCE Sr. No.

Description

Date

1

Permission of Advertisements

Dec,1993

2

Clearance of Layout

Jan,1995

3

NOC

June, 2002

4

Supply of Gas

June, 2004

5

Water Supply

Oct, 2002

6

IESCO

Nov, 2004

Table 1-NOC Issuance Date:

Further details are being attached in the annexure of this report. Following table shows the current and proposed status of the facilities in Margalla View D-17 sector: Table of Features Society Formed

1993

Location

Sector D-17 Zero

Drive (Approximately)

Time

Point 30 Minutes

GPO Rawalpindi 20 Minutes

Zone V

Airport

30 Minutes

25 Minutes

Earth Work

Sewerage

Electricity

Work Compl

Completed

eted

Gas

50%

Completed

Completed

Development Plots Sold Out System of Allotment

Water Supply from Sandymar Dam and Tube Wells

Situated Main GT Road

on

Boundary Wall Proposed 6 Feet High Brick Wall

Direct Physical Allotment of Plots to the Owners 233 Sq

Sizes of Plots

Direct Link

356 Sq Yard

Yard

500 Sq Yard

1000 Sq Yard

Booking Price (500 Sq Yd)

Current Market Value (500 Sq Yd)

500,000 to 900,000 PKR

2,800,000 PKR

Pricing

Expansion Plan

No, the land available in surroundings has prices that are not feasible to start a new project.

Advertisement

Print and Tele Media was used for advertising.

Sources Marke

Gas Stations

Mosques

Schools

Yes

Yes

Yes

Yes

Hospit

Transport

Parks

Cinema

No

Yes (Taxi)

Yes

No (Proposed)

ts

als

Public Offered

Services

Sweep ers

Filtration Plants

Yes

Security Guards

No

Community Centers

Yes

No (Proposed)

(Proposed) Any Other Public Service Offered

Construction

•

Tube wells for water supply

•

Sewerage Treatment Plant for Garbage Disposal As per CDA Building Control Rules and Regulations.

Measures

Table 2-Basic Necessities Table Available

Unique Features of Margalla Housing: Margalla Housing is the first project in Islamabad Zone-2 which has been given NOC by CDA. It is located in Sector D-17 which is a 20 minutes drive from Zero Point (Islamabad) and G.P.O (Rawalpindi).

Moreover, a picturesque view of Sandymar Dam located at the Eastern boundary of the housing scheme provides a marvelous sight with a lake that offers excellent opportunities for picnics and water related sports such as boating, sailing, fishing and so on. The presence of Army Welfare Trust Housing Scheme and Engineers Cooperative Housing Society in the neighborhood provide excellent socio-economic advantages.

Structure of the Business: Normally, societies are seen to have Directors or management personnel that have been elected by the members of that particular society. However, in the case of Margalla Housing, being a private limited company, there are no elected personnel but are fixed position holders including Directors as well as other management personnel. There are no external stakeholders as all the owners support their stakes in the company. The owners normally have more than enough experience exhibited due to their tenure as real estate agents, constructors and hence deemed as eligible and capable to manage the various projects and operations. There is no specific hierarchy that is followed at Margalla Housing. In fact, all the departments supplement each other in case of an issue or problem to resolve the complication. They have a large low level staff including security, gardeners, etc, however, the technical staff is comparatively limited. The hierarchy of the organization is as follows:

Figure 2-Hierarchy

CEO/ Director Engineering/ Works

Direct or Marketing

Direct or Admin

Site In-charge

Direct or Finance

Accou ntants

Site Engineer

Mission and Vision of the Business: Mission Margalla Housing aspires to be one of the nation’s first class housing schemes with projects offered to a wide array of segments, at choice locations with quality services, while maintaining the highest international standards, timely delivery, and lifelong customer satisfaction.

Vision Their vision is to provide high quality affordable homes in communities where people have a sense of pride and place. They wish to develop effective and productive relationships with all of their customers depicting their values such as honesty, transparency, respect of right, supporting values and being there for the customer.

Chapter 3.Selection Model To select a project a company can use different models to make them assist in making the decision either to pursue the project or not. For this particular project Twin City used non-numeric model and numeric as well.

Numeric Model: As being a privately owned company, they are reluctant to share the actual feasibility model which helps them to decide on the pricing decision of the plots of the Margalla View. Such information is highly confidential for any such organization.

Non Numeric Model: In case of selecting a project two types of models can supplement the decision of an organization a) numeric models and b) non-numeric models. Project selection and criteria of choices is an important fact which needs to be addressed before making any investments; either the project fit in some minimum standards of the organization or not. After the interview we found out that the company has to initiate the project to make its market presence and the time was ideal after the CDA zoning regulation. Basically the project was like a Sacred Cow for the organization and they have to pursue this project. Some other important factors which make it an important project are a) availability of land near proposed airport, b) acquisition of land was not in sight of land mafia, c) CDA zoning regulation was proposed d) other important housing schemes were planned in vicinity of the acquired land and there are other number of reasons which make it as a sacred cow for the organization.

Chapter 4.Project Life-Cycle Concept: After the development of zoning regulations in 1992, Islamabad was divided in various zones which provided Twin City an opportunity to divest into the booming

business. They developed Margalla Housing in 1994 as a project with the concept of attracting middle class families as their customers. These same middle class families did not only become the end users of their project but also supported the investor’s role.

Initiate: The Margalla Housing project was initiated in 1993, however, the master plan was approved in 1995 including CDA regulation affirmation and architecture. NOC was granted to the project in June 2002 which led to the major development work to be initiated and completed in 2004. Provision of electricity by IESCO assisted in the progression of their work which finished in Dec 2007. There is still half of the work to be completed with expectations of completion by end of 2009.

Implementing – Monitoring – Control: Implementation of Margalla Housing is depicted by their aggressive operations including the following: • • •

•

Construction of a central water supply system with overhead and underground water reservoirs with a separate connection for each house. A sewerage network is to be laid connected to the second largest sewage treatment plant in conformity with the standards of WHO/NEQS. Underground cable systems of Electric Power and Sui Gas, support from SNGPL and IESCO, are to be laid to ensure beauty of roads and a safe power supply to the scheme. None of the streets are expected to be less than 40 ft. wide and will be Asphalt concrete machine streets designed as per American Standards.

A team of consultants handle the engineering, construction, as well as site designing and other aspects of the project. The monitoring and controlling of these activities is taken care of by the CEO himself.

Terminating: After the completion of all of the basic activities as mentioned in the Initiation and Implementing phases above, the project will then be handed over to CDA which leads to the termination of their project. However, CDA has not delivered any policy that would dictate the time of the takeover.

Chapter 5.Managing Project Project Manager and Type of Team: The selection of a project manager is an important aspect to make a project successful. He should be credible not only in the eyes of the other team members but also got credibility of his work between his clients. The project manager of the Margalla Housing Scheme is Mr., who is also the CEO of the Twin City Housing (Pvt.) Ltd. He was the former secretary of Planning Commission which gave him multiple opportunities to develop his skills in town planning. This led him to polish and prove his skills further through depicting entrepreneurship with the initiation of Twin City Housing (Pvt.) Ltd. Other members of the team includes following: Director Administration Mr. have more than 23 years of experience in construction and previously worked on projects like M.E.S in Panu-Akil and many other worth mentioning projects. Director Finance Mr. brought vast experience he gained in Middle East into this project. Having experience of more than 9 years in construction industry make him precious member of this team. Director Finance Mr completed his MBA from Bahria University and after that he moved abroad and continued his education in management sciences. He is also a valuable member of this team bringing experience from USA about financial matters. All of the activities, such as leveling of ground, construction of roads, pipe laydown, plotting, and so on are taken care of by a team of engineers provided by Margalla Housing project. This team is, however, advised and directed by consultants appointed for the project. The initial planning phase was completed by Unique consultants, however, the remainder of the activities have been supervised and directed by Objectives

Scheduling – Specification – Performance: Although the project of Margalla Housing was expected to hold a completion schedule of 7 years, it was faced with a number of hurdles that did not only slow the overall process but also increased the cost of the project itself. The project was associated with a number of government bodies including IESCO, SNGPL, CDA, and Securities and Exchange Commission and so on. These bodies, although were given advances from the project authorities, failed to deliver on a timely basis till date. Margalla Housing had no written agreement with IESCO which led to the delay of carpeting of electric cables as only 50% of the work has been completed followed by a demand for more monetary

advancements before further work could be continued. Similarly, CDA depicted an extremely lazy association with the project by delaying the completion time through a slow analysis of water availability in the society. This led to the delivery of NOC to the project after a long period of 7 years. The inclusion of land mafia hurdles in its initial project stages as well as corruption faced by the company due to changing government regulations and political instability added to the lack of association with the governing authorities did not only delay their schedules but also effected their performance by increasing the project costs. If they had to pay 1 million to complete the project, that cost was increased 4 times. However, the project ownership did not let these difficulties trickle down to their end users and customers but accepted and handled the cost their selves throughout this tenure so to offer their investors with what was promised.

Chapter 6.Project Planning Process Nature of Organisation: Twin City Housing Ltd consists of three projects including Margalla Housing, Pine City, and Bhurban Terraces. The company is a pure project organization that can be understood by the fact that they only take on the projects for specific authorities and deal with the construction and development of the projects. Once the construction processes are complete, they then hand the projects over to their respective authorities. This step is elaboration of processes that are carried out in the project. It explains the order of the processes and the resources that are required at each step. Margalla view housing scheme is planned on the following format as follows:

Registration with SECP: Before starting any activity for Margalla view housing scheme, company need to be registered with the appropriate authority which in case of twin city housing is SECP.

Water Availability: CDA post a critical need of water availability to a housing scheme before starting any acquisition of land for housing scheme.

Compact piece: Square piece of land is needed for a housing scheme which is 1600square meter in case of Margalla Housing Scheme. This condition by CDA also helps to avoid any sort of hindrance in development work.

Ownership: Land acquisition is an important part of any housing scheme, but land mafias pose serious threats to the ownership acquisition of land. Most of the time fake ownership papers been sold to housing scheme or the important part of land is hostilely take over by mafia.

Documentation: All the documents been purchased from the land owners are scrutinized from the appropriate authorities and a single ownership in the name of Twin City Housing was claimed to start the NOC process for the Margala View housing scheme.

Land Acquisition & NOC process: After complete documentation and scrutinizing the ownership claims of the previous owners the land is secured and boundaries were demarcated by CDA. NOC is issued by CDA after a survey by CDA to insure that the appropriate land is acquired by the Twin City housing.

Layout Plan: During the NOC process a layout plan in which seismic survey, sewerage lines, gas pipeline, electricity lines, filtration plant line, other required underground work and public places development plan been submitted to CDA for scrutinizing the layout plan.

Bank Nomination: After the initial NOC CDA appoints a bank which is MCB in case of Margala view housing scheme who submits financial position of scheme to CDA, SECP and Twin City housing.

Advertisement Approval: Initial NOC process after some stage allows Twin city housing to advertise its housing scheme in all mediums of advertisement. Twin City outsourced the advertisement about this particular project initially but later they also even advertise it by themselves and even on commission based marketing.

Mortgage Land: After the above stated processes the mortgaging of land is conducted. The land is mortgaged to the government on the basis of certain criteria. The areas that is planned to be allotted to commercial buildings, roads, parks, mosques etc is mortgaged to the CDA and then the rest of the housing part is mortgaged to CDA on the basis of the fact that out of 100% of the land 25% is mortgaged to CDA.

Final NOC The mortgaging process follows with the final NOC. That is, the company registers for the final NOC granting since the requirements are checked and then it is granted. It takes some time to go through this process Since the Margalla housing was fulfilling the requirements so it didn’t take much time for them to go through it.

Development work: This part of the project was the most crucial because this part need to meet the deadline of CDA regarding all the development work, as most of the plot were, mortgaged to CDA and they release as the developmental project progresses.

Discard IESCO and SNGPL: After the termination of the stated processes in the development work the project owners request the IESCO and SNGPL to withdraw from the project.

Plot Possession: Here the company starts giving possessions to the people who are the actual owners of the plots. The people who have filed for the plots will be given possession to start with the construction of houses of the project.

Maps approval: Then the owners make plans and maps for their houses. These maps are checked with the requirements of CDA and then approved to start with the construction.

Construction of houses and Public places: All the construction either house or public places were started after the final survey of CDA official to check whether all the activities necessary for construction been completed or not. Construction of public places like school, mosque, and parks were been constructed according to the needs.

CDA takeover: After all the public place construction CDA will take over the housing scheme and that will be the termination of the project. This process will take place in 6months with different phases.

Hierarchal breakdown Structure (HBS): SECP Reg.

Water availability

Compact piece

Land aquisition

NOC process

Bank nomination

Layout plan

Sales report to all concerns

Gas/ electricity

Water supply / filtration plant

Road plan

Sewerage / filtration

AD approval

Cash deposit

Complete outsource

Done by them selves

Drain layout Plot mortgage to CDA Final NOC

Development work Drain layout (Paragon builders )

Gas / electricity (outsourced to Authorities )

Water supply/ filtration plant

Road plan (outsourced Paragon Builders )

Sewerage / filtration

Plot possession

Map approval Construction of houses / public places CDA takeover (termination )

Figure 3-HBS

Networking: Sr. No

Activity

Duration

predecessor

Commission based

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

SECP WATER AVAILABILITY COMPACT PIECE CHECK OWNERSHIP DOCUMENTATION LAND ACQUISITION BY THE COMPANY NOC PROCESS LAYOUT PLAN BANK NOMINATION ADVERTISEMENT APPROVAL MORTAGE LAND 50% TO CDA FINAL NOC DEVELOPMENT WORK DISCARD IESCO & SNGPL PLOT POSSESION MAPS APPROVAL CONSTRUCTION OF HOUSES CONSTRUCTION OF PUBLIC PLACES CDA TAKEOVER

3 mons 6 mons 9 mons 9 mons 18 mons

1 1 2,3 4

36 mons 12 mons 6 mons 9 mons 3 mons

5 2,6 7 7 7

6 mons 12 mons 65 mons 12 mons 14 days 2 mons 12 mons

8,9 8,11 12,10 13 13,14 15 16

18 mons 3 mons

16 17,18

Chapter 7.Allocation of Resources: Allocation of resource that is the usage of resources in both individual and multiple projects is considered to be the prime and most important part of the project. Allocating resources is directly linked to the scheduling because altering schedules will alter the resources. If the project schedule can be adjusted to smooth the use of resource, it may be possible to avoid project delay and, at the same time, not saddle the project with the high cost of excess resources allocated. The Margalla Housing society basically uses two softwares. The back of these softwares is supported by ORACLE whereas the FrontPage is based on Visual Basics. These are custom software specially designed for their project. The screenshots of the softwares are attached in the annexure. These two softwares together keep a check on the allocation of resources and keeping a balance in them. These are used for;

a) Accounting: Through this software record keeping is done relating numbers such as sales, expenses or profits and the account keeping of various activities that are carried out on the projects.

b) Documentation of files: Include government related registrations, plot related instructions and information, day to day operations are catered through that these are operated through oracle and front page is operated through VB (visual basic) We have discussed below the certain trade off involved in the Twin city housing limited, their allocation of resources to different projects and the relationship between resource loading and leveling.

Critical Path Involved - Crashing a project The allocation problem requires more careful consideration if it is decided to speed up the accomplishment of tasks or the project. Margalla housing society using the standard practices and rules of thumb estimated the resources needed for normal progress. They estimated to complete the project by 2007. However the project got delayed by two years. Now, they are planning to expedite (crash) the project, they consumption and demand of additional resources and thus will try to complete the project by 2011. Additional resources utilize by the project are mostly human resource related that is labor. Example security guards can be provided at the site if or whenever required from other projects.

Resource Loading It describes the amounts of individual resources the project require during specific time periods. Hence the requirements of each resource are simply listed as a function of time period. With the help of resource loading the Margalla housing society gave a general understanding of the demands a project makes on Twin city limited resources. With the help of resource loading Margalla housing society helped understanding and developing through project planning. This is the first step in attempting to reduce excessive demands on certain resources.

Resource Leveling: Resource leveling aims to minimize the period-by-period variations in resource loading by shifting tasks within their slack allowances. This purpose is to create a smoother distribution of resource usage. Margalla Housing Society utilizes to take advantage on Resource leveling by utilizing the smoother resource usage which invloves less involvement of management as the usages of resource is nearly constant. The Project manager at Margalla housing society is leveling human resource. Thus utilizing the "just in time" inventory system in terms of increasing or decreasing labor levels according to the requirements. Thus a balance is maintained in the resources.

Chapter 8.Controlling at Twin City: The basic concept of controlling includes the regulation and control of resources and hence stands for bridging the gap when required between the standard to be maintained for those resources and the deviation that might be faced. The control process means the determination of the lag in the entire process of a project and applying resources accordingly to overcome that lag. Therefore it is mandatory to measure followed by monitoring and then controlling. There are three basic types of controls that are applied in this regard including Cybernetic Control, On-off/Go-No go/1-0/Yes-No, and Post Control. Out of these, the two that apply on Twin City are as follows:

Cybernetic Control Twin City has depicted the use of this specific control throughout their projects including the Margalla Housing Scheme project. Usually, a comparison was carried out to find out if the project is running according to the budget and time allocated, through identification of current status. If there were any deviations found, the CEO would get in touch with the appointed consultants on the project who would then act as the effectors to speeding up the process or adding resources to bring the project back on line. Hence, their entire process of conversion into outputs was kept in check constantly for timely termination.

Post Control Twin City has faced many challenges throughout the course of their project tenures, such as those identified earlier including challenges put forth by the various governmental agencies, CDA and so on. To avoid the occurrence of any activities that could delay their projects and affect their overall performance, the company has identified the areas that could be controlled or effectively focused on for future projects and their objectives so to avoid any hassles or hurdles of the sort. At Twin City, the entire process of controlling is managed by the CEO. The CEO does consult with the management or the involved personnel in a certain or specific project, however, the end decision is always given by him so to keep the operations under control including the resource allocation required in every project.

Scope Creep: Scope Creep is a phenomenon that stands for the drift experienced in the terms and conditions that had been initially set in the project contract. Twin City also had to face this phenomenon in the conduction process of their project. There are two reasons that usually lead to Scope Creep including environmental and technological changes.

Twin City, however, went through environmental changes that made an impact on their operations and project progress.

Environmental Changes: Twin City has had to deal with this type of Scope Creep in the midst of their project. Initially, Twin City, according to the governmental laws, was planning on developing housing of not more than 3 stories high. However, when their construction started taking place, these laws were changed so that now buildings up to 15 stories high could be built. This of course, turned out to be an opportunity for Twin City for their projects and they acted out to opt for it. Hence, now they are deliberating working on buildings of that caliber. Similarly, Twin City was initially planning on completing their development project in a period of five years. However, due to the shortcomings of several governmental agencies, they had to extend their plan beyond that of 2007, the year earlier proposed. In June 2007, the company received a notice from the government to complete their project in five years with the ending date of December 2007. This change in the law also affected their progress in that project since they were given a deadline of only 6 months legally. They then had to act to obtain an issuance to complete the project on their own pace. Moreover, the many CDA, governmental and other regulations and/or policy changes borne by the company throughout their project course are included in this matter.

Chapter 9.Terminating the project: Termination comes to every project one day. The impact of the termination stage on technical success or failure is very little. The entire process of termination is not easy and it’s impossible to avoid the complication of the termination stage. The purpose is to achieve the termination stage with minimum level or amount of hurdles.

Varieties of termination: There are four basic types of terminations which are as follows:

 Termination by extinction In termination by extinction, the project might have achieved its goal or was successful. The product is handed over to the client after completion. The project might also be stopped if it was unsuccessful. A special case of termination by extinction is, “termination by murder”. Two important features of termination by murder include the suddenness of project termination and the lack of obvious signals that death is forthcoming. In case of Margalla Housing Society, termination by extinction can be practiced, since after the completion of houses they are hands over to the respective parties and then CDA jumps in.

 Termination by addition Termination by addition involves, bringing the project into the organization as a separate, ongoing entity. If a project is a major success, then in such case, it may be terminated by institutionalizing it as a formal part of the parent organization. After the extinction, the project’s personnel, property and equipment are often simply transferred from the dying project to the newly born division. The budget and administrative practices that confirm to standard procedures in the firm help in carrying out the metamorphosis from project to department to division. Our project regarding Margalla Housing Society will in future, after the completion of the project will practice extinction by addition. After giving entire ownership to the required parties, and in other words completion of the project, the company will draw back its resources for instance the labor which was required for construction purposes, the tractors, the machinery, equipment and the like.

 Termination by integration Termination by integration involves bringing the project activities into the organization and distributing them among existing functions. Margalla Housing Society can not practice termination by integration, since it is not practical or logical to bring the project’s activities into the organization and distributing among the already existing functions.

 Termination by starvation Termination by starvation involves cutting a project’s budget sufficiently to stop progress without actually killing the project. In case of Margalla Housing Society, there is no question of termination by starvation. Since, the company has a hefty budget in hand and lack of monetary resources is not in the picture anywhere. Hence, Margalla Housing Society has no plans of stopping the progress of their project.

When terminated…. What to do? Post project report: After the completion and termination of the project the Twin City Society will hand over a detailed report to CDA.This report will include all the problems, amendments, required processes, expected and unexpected hurdles, delays relating to the availability and unavailability of resources, , problems regarding resources, shortage or excess of resources etc faced during the Margalla Housing Society project was conducted.

Handover to CDA: After the construction of houses, ownership is given to the respective parties accordingly. Also, certain percentage of residential plots is transferred to CDA at the beginning of the project. When a certain percentage of the development work is completed by the firm, CDA carries a survey and then accordingly releases some residential mortgage plots to the firm for sale.

Chapter 10.Recommendations The real estate business is the one that has become more of lottery to the ones operating; the reason behind it could possibly be the huge investment made from abroad and within from the country. Due to the fact that it has become more lucrative to the investors brings out the idea of more fraudsters coming in to exploit the overall market patterns. The following recommendations can be made based on the facts and figures available: Recommendations for the Sponsors: •

Sponsors should go through proper procedures to get approval for floating the land in the market, and should avoid any public announcements before they are allowed to do so. Once they are allowed to float the land in the market, they should not book plots in excess to the number they are allowed. Sponsors should make it public, the exact information about the society and procedure for booking and possession. Sponsors should remain in contact with their members to keep them updated about the development stage. Sponsors should complete the development work within the time-frame allotted by the CDA to ensure that the worth of the land does not decline due to its uncertain nature.

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After the new ruling from CDA about High Rise building, a new opportunity was created for Twin City Housing to redesign the portion of Flats near the dam location. This high rise building project can be an estimated value of Rs. 200 million.

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They should focus on developing value addition through the development of Villas such as those developed by Eden Gardens and/or Bahria Safari Villas instead of limiting their scope to that of only selling plots.

Bibliography •

Twin City Housing (Pvt.) Ltd. Website www.Margallaview.com

ANNEXURE • Complete Progress Report of the Project •

Index of all NOC and Certification

• Brochure of Margalla View Housing Scheme •

Call Report 1

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Call Report 2

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Call Report 3

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Pictures of the Project Site

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Screen shots of software used