Hospital Construction Project Management Case Study

Introduction

Project Overview: Reneta SA is a construction company focused on business related to construction of various objects, in particular public and private construction based on turnkey contract, which is going to construct a 100-bed special purpose hospital in a suburban area (Reneta.sa, 2024). The project signifies significance due to its function in the development of a Commune’s healthcare amenities. The scope of the project is well understood and it is a non-flexible budget project where the cash budget allocated is ten million Euros and the time frame for the project implementation cannot be changed since the project involves urgency and negotiation with the local and central government authorities (Reneta.sa, 2024).

Project Scope and Objectives: This project includes but not limited to the construction of the hospital building, provision of medical infrastructure, and perfunctory legal requirements to the project site (Love and Ika, 2021). The project's aim is to finish construction on schedule and within the budget and to make all participants in the project have the same objectives and expectations as the project team and to control risks that may occur during the construction phase (Love and Ika, 2021).

Key Definitions

Critical Path: The organisation in the order of the phases that define the time which is minimal for an operation (Petropoulos et al., 2023). In this project, the critical path will show the activities, which if not properly timed, may slow down the whole project timeline.

Gantt Chart: A graphical illustration of the development plan of the project indicating the project phases and their duration (Petropoulos et al., 2023). The Gantt chart will be applied for scheduling as well as for monitoring of the work flow of the project.

Work Breakdown Structure (WBS): The division of project into many subparts which are easier to work on as compared to the entire project. The WBS shall assist in creating the sequence of the tasks, identifying the scope of the work and also the roles to be undertaken (Narváez et al., 2020).

Scope of the Report: From this report knowledge of the important factors that are needed to carry out the project successfully will be identified (Narváez et al., 2020). Some of the activities which will be contained therein include the identification of stakeholders, critical path analysis, determining the procurement and allocation of funds, human resources planning, and development of risk management strategies (Narváez et al., 2020). The report will also include the planning of project timeline with the help of Gantt charts, and WBS that will help one understand the relations between the tasks and thereby the sequence of those tasks in the project.

Methodologies and Tools: Some of the methodologies used in this report will therefore be; critical path analysis, risk analysis, and stakeholder analysis. Software like Project Libre; which is project management software, will be used to develop Gantt charts, and WBS as well as analyse the project’s critical path (Pradillo, Jones and Seweryn, 2020). The application of these tools will help effective planning, monitoring, and controlling of the project by achieving the set objectives within the project’s constraints.

Main Body

Project Summary

Project Introduction: Reneta SA, a construction company specialising in both public and private work in its home country has embarked on the following crucial project of constructing a 100-room special-purpose hospital and which was located in a suburban residential area (Reneta.sa, 2024). Therefore, this project is significant not only for the proliferation of healthcare centres in the region but also for the enrichment of Reneta SA’s portfolio in medical spaces. Some of the reasons why the project is considered sensitive are based on contractual obligations with Local and Central Government authorities where timelines and budgets have to be respected.

Project Scope: The project includes all aspects of the construction work of the hospital starting from the foundation and ending with the finishing works in medical structures and constructions (Reneta.sa, 2024). It covers civil engineering structures, architectural works, installation of medical equipment, and the provision of all civil construction regulations.

Project Objectives

• Ensure the construction and physical transfer of the hospital is accomplished on schedule.
• Develop the quality of construction, see to it that all the facilities provided will conform to the minimum health and safety requirements.
• Ensure that costs do not get out of hand because of wrong estimations.
• Provide relevant information on the project to all the stakeholders or the community members such as the local government and future administrators of the hospital.
• Minimise those risks that may pose a threat to the set time, cost and quality of the project.

Key Project Components

Stakeholder Identification: Now it is important to define all the main stakeholders and to include them into the process (Osei-Asibey et al., 2021). These stakeholders include the government authorities, project managers and the construction teams, medical consultants, the staff of the new hospital after commissioning among others. Another important concept that will be crucial in managing stakeholders will be the basic principles of stakeholder management to ensure that the project objectives and stakeholders’ needs are in concordance (Osei-Asibey et al., 2021).

Critical Path Analysis: The scheduling of the project’s critical path will be done thoroughly and much attention and care will be taken to ensure that no activity in the critical path is delayed in any way (Zhang and Wang, 2023). This entails planning the tasks and how they depend on the other in order to enable proper scheduling of the tasks.

Budget Management: Since project has a static budget to forestall an uncontrolled expenditure the financial management of the money will be strictly implemented given that the money required for the project implementation is 10 million Euros (Zhang and Wang, 2023). Budget allocation: a daily, weekly, monthly and overall breakdown of expenses will be developed to control unnecessary expenditure of money and other resources about the project.

Human Resources (HR) Plan: The Human Resource plan will define the staffing requirements of the project and the kind of human resources required at the construction stage as well as at the operational stage after construction (Deng and Huang, 2022). This comprises employment, staff development for the workforce, and the process of organizing and directing workers.

Risk Management: Intending risks must be determined and possible protective measures drawn to avoid any hindrance to the working of the project (Deng and Huang, 2022). This involves having the insurance cover for construction risks such as delay in construction, costs overrun, suffering in supply of materials and meeting regulatory requirements.

Identification of Stakeholders

Local government authorities will be primary stakeholders since the hospital will be aimed at catering for the local people (Sankar D et al., 2023). They act as the source of the permit needed in the construction and oversight in regard to the legal requirements of the construction. It seems most of their concern is the successful and on time delivery of the hospital since it will form a much needed health facility in the region (Sankar D et al., 2023). It is for this reason that their influence is high since they are competent in approving or halting a project due to regulation compliance.

The central government authorities can also be involved in this project most especially when they are sponsoring the project (Faulkner et al., 2023). Their interest in the project is the successful completion of the project since the aim is congruent with the aspirations of the country’s general health care system (Faulkner et al., 2023). Their impact is also considered high attributed to the financial benefits that they may bring in and the regulatory power they may wield on the project.

Renata SA is the project management and construction team that is more accountable for delivering the project from conception to implementation of construction plans on the ground besides the management of resources (Kari-Pekka Tampio, Harri Haapasalo and Lehtinen, 2023). The ‘key stakeholder’ in a project is interested in having the project completed on time and within the set resources and quality standards because this is where the contractor’s reputation rests, and where future project contracts may come from (Kari-Pekka Tampio, Harri Haapasalo and Lehtinen, 2023). It is felt that they have a significant level of power because they are responsible for the implementation of the project and other decisions made as to the same.

Future hospital medical staff are also a stakeholder, especially concerning the appearance and layout of the hospitals’ medical services (Laurisz et al., 2023). Their key focus is to make sure that the hospital has all that it takes to deliver a premier healthcare service. Even though they heavily participate in the design of the hospital, they have moderate activity in construction procedures.

Patients in the future and people of the locality where the hospital is situated are the customers (Love and Ika, 2021). Their concern is in being allowed to make use of a functional and equipped health facility to attend to their health requirements. Despite being the main benefactors of such projects they often do not have much say concerning the project.

Suppliers and contractors the people who supply materials and services for accomplishing specific activities of the construction project are also the stakeholders (Love and Ika, 2021). Its interest is much more in meeting its obligations to its clients in the most effective possible manner but at the same time receiving their payments on time while at the same time not wanting to have a bad relation with Reneta SA (Love and Ika, 2021). They are the ones who determine when the project is complete which has a medium level of control of the success of the project.

Legal agencies, which are in charge of implementing and overseeing the legal, environmental, and safety requirements are highly influential key constituencies (Fang, Wei and Logan, 2017). Their major concern is to ensure compliance with all the legal requirements concerning construction. If the project fails to meet these standards it may result in one closing down, being fined or projects being delayed.

Lenders and other funders including equity providers who may be injecting capital or financing the project it viable and getting it delivered on time have an interest in the financial execution ability of the project (Fang, Wei and Logan, 2017).

Others include media and public relations entities which may follow up on the progress of the project or its social benefits on the people (Luo, 2020). More to it, they are concerned with the perception that the general public will have on the project (Luo, 2020). Though their impact on the realisation of the project is somewhat limited, how they communicate the project to the various stakeholders can ultimately influence the satisfaction level of the stakeholders and the level of public support for the project.

Stakeholder Management Strategies

To effectively manage these stakeholders there is a need to ensure that they are engaged most of the time (Liakh and Spigarelli, 2020). To avoid a lack of coordination and misunderstanding on project goals and objectives, it is necessary to set up communication protocol including upcoming updates, meetings and reporting. Tools such as stakeholder analysis grids or power-interest matrices can help in ranking the stakeholders based on their interest and power in the project (Liakh and Spigarelli, 2020). Also, the implementation of feedback mechanisms, especially from end users of the project, including the future staff of the hospital and the residents of the area can help make decisions by the overall objectives of the project.

Critical Path Analysis

List all Activities:

Activity 1: Start 19-08-24, Finish 22-08-24, Duration 4 days

Activity 2: Start 19-08-24, Finish 20-08-24, Duration 2 days

Activity 3: Start 23-08-24, Finish 27-08-24, Duration 3 days

Activity 4: Start 21-08-24, Finish 21-08-24, Duration 1 day

Activity 5: Start 21-08-24, Finish 26-08-24, Duration 4 days

Activity 6: Start 28-08-24, Finish 29-08-24, Duration 2 days

Activity 7: Start 28-08-24, Finish 29-08-24, Duration 2 days

Activity 8: Start 28-08-24, Finish 29-08-24, Duration 2 days

Activity 9: Start 30-08-24, Finish 03-09-24, Duration 3 days

Activity 10: Start 30-08-24, Finish 03-09-24, Duration 3 days

Identify Dependencies:

Activity 1: No predecessor

Activity 2: No predecessor

Activity 3: Depends on Activity 1

Activity 4: Depends on Activity 2

Activity 5: Depends on Activity 2

Activity 6: Depends on Activity 3

Activity 7: Depends on Activity 3

Activity 8: Depends on Activities 4 and 5

Activity 9: Depends on Activities 8 and 6

Activity 10: Depends on Activity 6

Calculate the Earliest Start (ES) and Finish (EF) Times:

Activity 1: ES = 0, EF = 4 (0 + 4)

Activity 2: ES = 0, EF = 2 (0 + 2)

Activity 3: ES = 4 (after Activity 1), EF = 7 (4 + 3)

Activity 4: ES = 2 (after Activity 2), EF = 3 (2 + 1)

Activity 5: ES = 2 (after Activity 2), EF = 6 (2 + 4)

Activity 6: ES = 7 (after Activity 3), EF = 9 (7 + 2)

Activity 7: ES = 7 (after Activity 3), EF = 9 (7 + 2)

Activity 8: ES = 6 (after Activities 4 and 5), EF = 8 (6 + 2)

Activity 9: ES = 9 (after Activities 8 and 6), EF = 12 (9 + 3)

Activity 10: ES = 9 (after Activity 6), EF = 12 (9 + 3)

Identify the Critical Path:

The critical path is the longest sequence of dependent tasks that determines the project duration.

The critical path is Activity 1 -> Activity 3 -> Activity 6 -> Activity 10.

The total duration is 12 days.

Project Budget

Activity	Description	Duration (days)	Allocated Budget (€)
Activity 1	Initial Site Preparation	4	€1,200,000
Activity 2	Foundation Construction	2	€800,000
Activity 3	Structural Framing	3	€1,500,000
Activity 4	Electrical and Plumbing Systems Installation	1	€700,000
Activity 5	Interior Finishing and Medical Equipment Installation	4	€2,000,000
Activity 6	Exterior Work and Landscaping	2	€1,200,000
Activity 7	Testing and Commissioning	2	€600,000
Activity 8	Compliance and Safety Inspections	2	€300,000
Activity 9	Staff Training and Handover	3	€500,000
Activity 10	Contingency	3	€1,200,000
Total	€10,000,000

Proportionate Allocation: The allocation of budget has been done in proportional to the level of difficulty, time frame for its completion and costs of various activities (Huang, 2019). The most costs are spent on Activity 5: Interior Finishing and Medical Equipment Installation as it is costly to obtain specialized medical equipment and surfaces of hospital should be of very high quality.

Critical Activities: As seen in the diagram below, the planned activities in the critical path are; Activity 1, 3, 6, and 10 and funding has been provided in adequate amount to ensure they do not stall. For instance, Activity 3: Structural Framing is estimated at €1, 500,000 for reasons of it being a resource-intensive phase that influences the other activities as well.

Contingency Allocation: There is an amount of €1,200,000 provided for contingencies to cater for incidences that may arise in the course of the project. This amounts to 12% of the total budget, we deemed it reasonable to set aside funds which will allow the project to cater for incidental expenses, which may be experienced along the course of the project without affecting the projects overall financial stability.

Risk Management: Budgeting €300,000 to Activity 8: Compliance and Safety Inspections shows that the company should follow rules and regulations because procrastination often has expensive consequences – in terms of time and money as well as possible penalties. This allocation makes for the eventual compliance with the legal necessities of a given organization without overstretching on the other budgeted undertakings.

Resource Utilization: An aspect of resource utilisation appears well-captured in the budget, particularly in sub-activity such as ‘Installation of Electrical and Plumbing Systems’ as well as in ‘Testing and Commissioning’. These activities though slightly taking less time are very vital in making the hospital ready and sufficient funds have been provided to ensure that Such activities are done to the best standard (Huang, 2019).

Cost Control Measures: Key among the measures that will be put in place in order to ensure that the cost of the project does not go astray is the fact that various cost control measures will have to be put in place (Abioye et al., 2021). Some of them can be as follows, bargaining with suppliers for lower prices, proper utilization of labour, and strict control over costs incurred against the budget estimated for each activity (Abioye et al., 2021). There will be a financial check-up and scrutiny that will help in distinguishing areas that require more financial input than estimated earlier.

Financial Oversight: Monitoring and reporting shall reflect important measures that will aid its budgetary control (Donatella, Runesson and Tagesson, 2023). Data will be collected by preparing the weekly financial reports showing the actual expenses incurred in each of the activities which have been budgeted for (Donatella, Runesson and Tagesson, 2023). These will enable micromanagement so that funds can be switched around if necessary as early as possible.

Human Resources (HR) Plan

Team/Role	Key Roles	Responsibilities	Recruitment Strategy	Training Needs
Project Management Team	Project Manager, Assistant PMs, Project Coordinators	Supervision, coordination, stakeholder communication, budget management, risk mitigation	Internal recruitment and reallocation within Reneta SA	Project management tools (e.g., ProjectLibre), construction management practices
Engineering and Design Team	Civil Engineers, Structural Engineers, Architects, Electrical Engineers, Mechanical Engineers	Design approval, structural assessments, system installations	Combination of internal and external hiring, especially for specialized roles	Continuous professional development, compliance with building codes and safety standards
Construction Team	Site Supervisors, Construction Workers, Equipment Operators, Safety Officers	Execution of construction tasks, adherence to safety standards	External recruitment through subcontractors and labor agencies, supplemented by internal hires	Safety training, machinery operation, compliance with local construction regulations
Specialized Technicians	Electrical Technicians, Plumbing Technicians, HVAC Technicians	Installation and testing of electrical, plumbing, HVAC systems	External recruitment, focusing on individuals with hospital or infrastructure experience	On-site training, compliance with project specifications and safety requirements
Quality Assurance and Compliance Team	Quality Control Inspectors, Compliance Officers	Monitoring construction quality, ensuring legal and safety compliance	Internal recruitment from Reneta SA’s experienced professionals	Updates on quality control practices, healthcare sector compliance
HR and Administrative Support	HR Managers, Administrative Assistants, Payroll Officers	Recruitment, payroll management, employee relations, admin support	Internal recruitment using existing HR personnel at Reneta SA	Training on HR management software, managing large, diverse teams

 

Conclusion

Summary of Key Points: The construction project at Reneta SA hospital is still among the most sensitive projects targeting at improving of Architectural space in suburban area for the inhabitants’ health improvement. This project is a fixed budget project with a total cost of 10 Million Euros and also comes with a time constraint hence proper planning and project delivery is crucial for the success of this project.

Linking Back to the Themes: At the beginning of the report, the author stressed that the effective strategic project management helps to overcome the two main barriers – time and money (Urton and Murray, 2021). According to this concept, once the potential stakeholders are identified and invited to participate in the particular project, the management of such a project is in a more strategic position to achieve correspondence between the goals and objectives of the project and the needs and expectations of the stakeholders. Critical path was suggested as being critically significant in the discharge of the project since the focus was on facilitating the completion of important activities within a timeous manner; of essence therefore is the implementation of schedules with regular monitoring and review.

Evaluation of Project Limitations: It is, however, pertinent to note that the project plan encapsulates all the activities, but it is not devoid of limitation and constraints which can be encountered (Dillip Kumar Das, 2023). The direct aspect of the Paradox of Thrift is that the project has limited flexibility in terms of the budget and time – both are fixed, so any mistakes or delays are impossible. Furthermore, the application of outside sources that include the quality and availability of labor and materials and regulatory conformities leads to unpredictable aspects that may hinder the project.

 

 

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