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With intense globalization, businesses have been exploiting their resources to maximize their profit by carrying out their operations and processes across boundaries. Many firms have carried out projects in countries where they were getting better margins or have high demand. Managing projects across boundaries have been prone to higher risks due to the dynamism of external factors. It is desirable and highly recommended by experts to manage projects to adopt a project management system (Copola Azenha et al, 2021). This paper will discuss the vitality and application of project management systems for projects carried out across boundaries. This paper will focus on construction projects and the aspects that help the business determine which project management to adopt for carrying out projects across borders. The paper will critically express elements such as cultural factors, economic, political, and technological factors that are significant in impacting the project management system. Each Project management system focuses on the need of the project and the objective of the business associated with such projects. In this paper, we will discuss how construction projects are affected by the choice of the Project Management System.
Construction projects in India are influenced by several external factors such as topography, supporting infrastructure, legislature governing such projects, labour laws, and like (Ahuja et al, 2020). India is a country of diversity and therefore managing projects is sensitive to the dynamism of the market as well as the society of the country. This paper will aim to achieve a comprehensive understanding of the choice of Project management system in the context of construction projects in PSP Projects and the elements that are significant to making such choices.
With the exponential rise in FDI, India has emerged as one of the most attractive nations for investment purposes. India has seen healthy growth in inflows for carrying out construction projects (Singh, 2019). With the 1991 policy of privatization and globalization, India opened routes for foreign companies and favourable policies for carrying out construction projects have been the main driver of choosing the project management system regarding the construction (Singh, Deep, and Banerjee, 2017). In the last decade, India had witnessed an enormous inflow of 25.69 billion USD as foreign investment in construction development along with 16.97 billion USD allocated directly to construction activities. Constructions in SEZ areas, industrial parks, and completed townships are subject to 100% FDI. Sharma (2018) views the project management system as a pivotal element that has paved the way for construction projects to be carried out in India. Whether it is monitoring the project using tools and techniques or laying the foundation by adopting management principles guiding the project, the Project management system has benefited construction projects to be completed timely and smoothly in India (Singh, Deep, and Banerjee, 2017).
“PSP projects” was significantly affected by political factors and economic decisions by a central authority that will be discussed in the paper. With an increase in household income, these types of projects have also seen a rise due to the rise in demand for housing projects, malls, shops, and other physical premises. Ogunde et al., (2017) highlight the role of project management systems to streamline the country’s market. Governments of different states have also stated their participation in boosting the economy of the nation by launching industrial estates for manufacturing purposes. With the exponential rise in associated industries such as IT, Steel, and Cement industries, the construction industry has attracted many foreign investors. Recently, the government declared in the union budget, 2022, that it will inject finance into the market due to which construction projects were greatly impacted. Ogunde et al., (2017) state that the project management system works as a guide for managing projects in foreign countries and the best part is that it can be modified according to the environment.
In the case of construction projects, topography, economic factors, labour laws, and political factors are major factors that decide the project management system. Sharma (2018) states that the construction projects of PSP projects have been carried out by following a definite and predetermined project management system and such projects have high success rates. Moreover, the research also focuses on determining the success of such projects that followed a definite system for project management. Singh, Deep, and Banerjee (2017) opined that for the success of construction projects, it is vital for the business to have a definite framework that governs the whole project. The system adopted provides the base for such projects and helps the business to minimize wastage to great extent. The large-scale projects are outsourced to construction companies that have their system to carry out construction activities. In India, construction activities have surged after the Covid-19 pandemic (Nevstad et al, 2021).
These constructions were mainly carried out by the government and handed over to companies like PSP projects, Ashoka Buildcon, and PNC Infratech which have a high success rate of completing construction projects. PSP projects have attracted many foreign investors with b fundamentals and a definite system. Likewise, foreign companies have observed that construction projects in India are highly dependent on the choice of the project management system. Mavi and standing, (2018) opine that the project management system does not direct the business or the company but provides a set of rules, guidelines, tools, and techniques to make decisions that streamline with their objectives. These aspects of the Project management system regarding PSP projects will be discussed in the paper to critically review the success of executing projects following the project management system in India.
Research Aim and Objectives
The study is aimed at reviewing the project management system in the Indian construction company, PSP projects and determining the role of economic, political, and social factors in determining the Project Management System to recommend appropriate systems in the company
The research questions are based on the above description of the case. The following questions will be the base of the whole research. The research will streamline these questions to maintain objectivity and reach a concrete and lucid conclusion.
This research is based on determining the role and impact of the project management system on the success of carrying out construction projects in India which is chosen based on external factors of the country. The research is significant as it will help the reader get insight into the execution of projects in the construction industry and determine the degree of sensitivity of these projects concerning the external environment (Verma, 2017). It is inevitable for a project to meet its objective while being cost-effective. The paper will discuss how a project management system helped PSP projects to achieve their goals by remaining cost-effective. It will help the reader to gain knowledge about analytical and aid decision-making regarding the choice of project management system for different types of projects, especially in the case of the construction industry (Singh, Deep, and Banerjee, 2017).
It will also help the reader to become enlightened about the difference between executing a project in the home country and executing a project in the host country. It is vital to study the factors that affect the choice of project management systems concerning different industries (Ding et al, 2018). One system adopted for one type of project might not be effective for another project because of certain differences and the different factors that affect them. An IT project is different from a construction project and therefore the factors affecting these projects will be different (Mavi and Standing, 2018). Therefore, it is vital to know what factors affect a specific project. Working conditions in India are different from that in America and therefore one should also be well educated about such differences that might impede the working of a project management system (Sharma, 2018).
For instance, labour laws in America are more rigid and articulated than those in India. Because of loopholes in the legislature that governs labour laws and practices, PSP projects had to adopt a different project management system. For these reasons, the practitioner and project associates should know about the factors of the external market of the host country before choosing a project management system (Verma, 2017). This paper is focused on construction projects executed by PSP projects and how they are affected by the choice of Project management system based on factors that will affect the project during its implementation therefore it will be a lucid research paper aiming to fulfil the research objectives and giving concrete answers after a thorough study of empirical data used in this research (Singh, 2019).
All the factors have been thoroughly discussed in this report: how much of a social shortfall is there for the workers and what kind of problems are faced in their security in the construction. How the economic factor affects the construction industry has also been informed about it and how the political problem has to be faced. Some such factors have also been discussed in the report which gives information about the external variables of the UK and India and how they differ from each other. How do the two countries work differently in creativity, management systems and in a final way? This report also discusses which project management system is suitable for building projects in any country. In it, 5 types of processes have been discussed, which are the scope of recognition of the project, planning, execution, monitoring and closing of the project. And lastly, it has been told how the political, economic and social sectors impact planning the construction project.
Factors Affecting the Construction Industry Socially
The shortfall of workers: During the crisis, the construction sector lost approximately 2 million positions, although it has been difficult to get output back to the previous levels. In the research conducted by Guo et al. (2016) many individuals left the industry, even though they retired or were fired off, and got a job in plenty of other fields. As the crisis progressed, it became evident that even these people, who had moved on to new jobs were still not returning. The basic conclusion is that the construction sector is struggling to find sufficiently qualified workers to accommodate increasing demands. According to a recent study by both the AGC, 75% of businesses anticipate increasing staff in 2018, while 78% of businesses are experiencing difficulty hiring suitable personnel. In the words of Bilal et al. (2016) furthermore, 82 per cent of businesses anticipate that finding and hiring skilled personnel will be challenging, if not impossible, in 2018.
Additionally, Silva et al (2018), also defined that skill shortage is one of the significant challenges for the construction industry as it results in reduced production and efficiency leading to increasing cost and improper alignment of duty to accomplish the goals timely. The shortcoming of workers within the construction industry impacts the overall work progress in the industry as it is associated with other social issues such as skilled inefficiency and mismatch of required skills. As the industry requires a wide variety of skills and efficient workers to perform specialised tasks as it is a sensitive process of constructing large buildings and projects and making them safe for the public. The lack of required employees for plumbing and operating construction machines resulted in reduced efficiency and major delay in the activities within India's infrastructure and construction development plans informed by the government of India. It is also informed that the shortfall of employees in the industry within India also result in inefficient vocational training and development system for workers.
Godini? and Obrenovic (2020), also agree that the shortfall of employees within the industry is also associated with social practices such as job uncertainty and disturbance in social identity negatively impacting the skill development among construction workers as a whole. The lack of inappropriate psychological models for employee well-being in the construction industry also becomes inefficient due to economic uncertainty developed by the covid-19 pandemic on the mental and physical health of individuals.
Security: The construction sector remains to have a problem with safety procedures. For decades, construction has ranked first among all professions in terms of absolute occupational accidents. The study by researcher Al-ahdal state et al. (2020) for years, the number of operating medical problems has remained relatively stable. All big businesses should prioritise maintaining employees satisfied and safeguarding them from injuries and deaths. When vulnerabilities are reduced and risk control measures are properly and diligently implemented, tragedies are readily avoided. In the research conducted by Lin et al. (2017) protection starts with leadership, and research has already shown that firms with excellent safety systems seem to be more effective. The study of Smol et al. (2015) demonstrates a concern in the very well of its personnel, a development name and reputation can indeed be enhanced and quality players can be attracted.
Factors Affecting the Construction Industry Economically
Development And higher-quality That Haven't Changed: Building, unlike some the other businesses, has had little to no increased productivity throughout the last eight decades. As shown in the latest studies by McKinsey & Co., "although several India industries, such as mining and agriculture, have boosted production ten to fifteen per cent ever since the 1950s, economic growth has remained at almost the same levels as it was 80 years ago." According to existing data, the industry in terms of performance has been declining steadily since the late 1960s. These observations seem concerning, specifically considering the growing complexity of construction works. Low performance on building projects is caused by a variety of variables. These could become a problem in construction and budgeting, a shortage of interaction and collaboration among project team members, or unproductive time spent waiting for essential commodities to arrive or for earlier research to be finished.
Financial shortcomings: Joblessness evaluation of the effectiveness of reduced purchasing rate for development supplies and resources will have an impact on the economic rate. Due to the obvious instability, it is difficult for the customer, banking institutions, property owners, and many other small enterprises to succeed. According to Elavarasan et al (2020), The covid-19 has significantly impacted the construction industry economically causing significant decreases in required resources and leading to the financial shortcoming. The financial shortcoming is one of the important and challenging factors of the construction industry in terms of the economy because it reduces the efficiency of the project and devastated the situation to invest and develop high-quality products effectively. The study associated the impact to offer financial shortcomings with the economic challenges in project management, the electricity or energy. Electricity is an important resource for project management in the construction industry and the financial instability or insufficiency of capital results in reduced capacity and affordability that leads to poor development and growth of projects resulting in negative impacts on public demand.
Factors Affecting the Construction Industry Politically
Developing, organising, and developing a venture: The number of large developments requires support in and out of the municipal authorities. If the local authority wishes to change zoning restrictions for a specific bit of land, the enterprise will be affected by the closure of production. Furthermore, if the executive branch refuses to allow or authorise changes to the health and safety laws that would assist a building company in obtaining recurring high-pressure situations at work, the construction will be cancelled. According to the study by Zidane and Andersen (2018), In recent years the construction industry is facing more challenges that are negatively impacting the overall production and growth of the industry in large areas. The combination of challenges faced by the construction industry comprises low productivity, an inappropriate skill of adequate collaboration, improper management of Information, and poor Regulation and compliance with political norms (Bond-Barnard et al, 2019). The study suggested that the utilisation of blockchain technology can lead to effective digital transformation in the industry and will support better compliance with political rules and regulations while operating in National and international markets leading the disruption in the global construction sector. The political environment however required battery summarisation and management of multiple dimensions to set desired databases for managing the application and criteria to conduct better competence in the Political environment.
Concerning Security Requirements: Safety laws and policies at the government, regional, and municipal levels could act as ideological instruments affecting the production profession. This encompasses any safety concerns for the location in which the development will be built, and even the facility or superstructure itself, even during the development process. In addition, the correct supplies and materials must be used as well. If the administration rejects and therefore does not authorise the project, no construction will begin again until privacy and protection standards, procedures, and guidelines are approved. Furthermore, Asante et al (2018), Illustrated that security requirements are an important concern for project management operating in challenging situations as the security assurance demonstrates fulfilment of organisational goals and leads to better quality with effective administration and proprietorship of the project. During project management, the political regulations guide the project management system to understand the security assurance keenly and deliver the project effectively. The security requirements are essential to understand and implement within the project management as if there is a significant Association between project success and Planning based on the safety and security of aspects in the project.
Differences between UK and Indian external variables in the context of the construction industry
Creativity: Industries in the UK can organize seminars to enhance the skills of their workers in which their skills are further enhanced. Efforts are made to increase their level of creativity and innovation further. In the words of Aggarwal et al. (2017) due to seminars, workers get an opportunity to enhance their skills, but their chances of employment also increase further. More progress and creativeness and innovation have come in their work. But on the other hand, in India, all these things are not so focused. Workers do not get proper guidance nor are such seminars organized for them, in which they get an opportunity to enhance their skills further. Due to not getting the right guidance and due to non-conduct of seminars, there are problems in the work of the workers and there is also a lack in their safety because how they should work in their work keeping their safety in mind. They do not understand that thing properly.
In the views of Varkkey et al (2018), Creativity is an essential aspect of successful construction projects as it is considered necessary for improving the effectiveness of outcomes and leading to sustainability in the long term. The study illustrated that the majority of contractors in India is a with and ineffective to reach quality record systems that negatively impact their creativity and further development. It is also demonstrated that critical factors in Indian construction projects comprise competencies of construction workers, effective administrative support, and quality management. Whereas, the UK construction industry is considered more creative and durable because there is better availability of quality management systems comprising effective quality standards that can improve the sustainability and overall development of projects. However, there is still dissatisfaction among UK based clients of the construction sector Due to certain quality defects as the result of appropriate management of creativity and innovation in the projects. The creativity and innovative initiatives also decrease in the Indian construction industry due to conflict among associated participants in construction projects and hostile environment of socio-economic aspects along with harsh climate situations.
Financial: In the UK, the right funds are produced by the company for the work, which includes the materials of their construction and also the safety equipment of the worker. Workers do not face much problem in working because the funds are made in the prescribed amount, due to which there is no interruption in their work and no shortage is found. But in India, the company does not produce as many funds as in the UK. In the research conducted by Patil et al. (2020) workers have to complete their work in some amount and their safety equipment is also not given so much attention due to which many engineers and death rates are found. Due to the non-availability of material in the set amount with the workers, there is a problem in the construction. This problem also leads to major accidents in the future.
Financial stability is another important aspect that affects the quality and productivity of construction projects this is based on the reasons they are established (Li et al, 2019). The financial stability is ber in the UK than in India because the UK has a better collaboration and appealing expertise to manage the required financial attributes in the construction projects and the per capita income and national economy of the UK are far better than in India that positively impact the construction industry and vice versa for the Indian construction sector.
Management System: In the UK, the right management system is hired in the construction work itself, in which the management can get the work done only on the skills of each worker. The right leadership qualities also come in the right management system, in which the leadership gives equal respect to its employees and listens to their ideas. The research conducted by McLeod et al. (2017) all these things in the UK management system. But in India, not much focus is on the management system in which the management thinks which team of workers will be right for which project and in what work. The construction industry in India should prepare a management system in which they should provide things keeping in mind the safety of their work and which person will be right in what kind of work so that their company will also get profit and the employee will also get their performance in the right way (Hussain et al, 2018) and PM will be able to finish his work in the right way.
The combination of management systems in the project management approach is important to accomplish the different goals in different stages of the project and develop a belief of customers or the public in the quality and consistent growth of the sector (Somarakis et al, 2019). The UK construction industry is highly efficient in using the different types of management systems in construction projects such as a quality assurance system, equality record system, improvement systems, subsidiary systems, human resource management system, Assurance and control system, and inspection system (Urba?ski et al, 2019).
A project Management system that works well for PSP Projects in the country
Seven project management system models can improve the project management system in the country.
Agile: Agile was among the most well-known models and frameworks, and it is particularly suited for iterative development assignments in construction systems. It's a form of approach in which identity and cross-functional organizations and potential consumers work together to develop requests and responses to construction tasks and applications (Albuquerque et al, 2020). It was devised as a reply to the shortcomings of the Waterfall technique (more on that later), whose operations failed to satisfy the needs of the technology industry in terms of intense competition and continual mobility in the construction projects system. The agile system allows project managers to understand and process the improved performance by using better discipline and software to track actual development in the project from time to time (Diamantopoulos et al, 2021).
Scrum: In the research conducted by Golini et al. (2015) responsibility, tenacity, concentration, accessibility, and compassion are the five attributes that make up Scrum. Its purpose is to use participation, transparency, and constant improvement to design, launch, and manage diverse products in construction systems. Scrum differs from many other Agile project management techniques in that it uses distinct responsibilities, engagements, and artefacts to execute the construction task.
Kanban: Kanban seems to be another well-known Agile software development methodology that, like Scrum, emphasises new copies and participatory, personality individuals in construction systems. That would be a very graphical strategy that attempts to offer excellent products by sketching a representation of the production process so that impediments may be discovered early in the development cycle (Stanitsas et al, 2021). It is based on six fundamental principles: Visual representation, minimizing the quantity of effort in preparation, managing the transmission of a communication, clearly stating guidelines, and making use of feedback effects.
Lean: Lean concept encourages construction companies to maximise customer satisfaction while reducing waste. Its goal is to provide more value to its customers as well as use available materials. It is standards, which are derived from either the construction or industrial sector (Kozlovska et al, 2021). The lean system also reduces waiting time for accessing the project materials, required equipment and tools, and information that emphasises for prefabrication to prevent wastage and better optimization of resources.
Waterfall: Waterfall is a function of time, an iterative development framework in which measure typically slightly downward throughout one direction — like something of a waterfall— and also one of the more customary development methodologies in construction sites or projects (Jethva and Skibniewski, 2022). Its lack of stability in design decisions in the early stages of the project is due to it becoming exorbitantly more expensive relative to its formalised environmental features, which originated in the capital goods industry for the construction system. In the words of Fewings, et al. (2019) the Waterfall technique of managing projects emphasises the necessity of documents. The concept is that once a person leaves even during the planning process, their substitute may pick up where they left off by familiarising themselves only with paper material. Before Agile, application implementation was done using the Project management methodology, which had several drawbacks, including non-adaptive inherent limitations, a lack of user engagement even during project development, and then a lengthy acceptance testing.
6 Sigma: In the research of Radujkovi? et al. (2017) it seeks to increase quality by lowering the number of problems in something like a production by eliminating unnecessary what isn't operating in construction systems. It employs a variety of project methodologies, the majority of which are observational and mathematical, and even the competence of people who have experience in these techniques in the project of the construction system.
PMBOK and PMI: The Project Management Institute (PMI) is a non-profit professional association that also offers certificates of completion and requirements in project construction. The PMBOK, which is also not technically a paradigm but a reference defining the standards and guidelines that describe the management process, is produced by the PMI (Alwaly and Alawi, 2020). This model states 5 processes for the construction system which are initiating, planning, executing, monitoring, and closing.
Impact of Political, economic, and social factors on the planning of the construction project
Economic factors which impact the planning of the construction project: The construction sector is influenced by a variety of market issues, including increasing population, business development, unemployment, mortgage rates, customer p
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