According to TimesJobs Job Satisfaction survey 2017-18 the percentage of employees dissatisfied with their jobs has dropped by 15% in 2017.
The Indian real estate and construction industry is a major part of the economy and plays an important role in the development of the country’s infrastructure base and provides drastic growth in economic development. The Real Estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP).
Real Estate Development involves the amalgamation of various processes and aspects such as market analysis, financial analysis, urban / town planning, land and title administration, land acquisition and negotiations, community-political and administrative-governmental approvals, construction budgeting, contracting and tendering, building construction and site supervision, project management and many more.
The Indian Real Estate sector is still largely unorganized and dominated by quite a number of small and mid-sized players, with very few corporate or large players having national presence. Supply of urban land is largely controlled by state-owned development bodies, such as the Delhi Development Authority (DDA), and Housing Boards .The Indian Real Estate sector, as compared to the other more developed Asian and Western markets is characterized by smaller size, lower availability of good quality space and higher prices when compared in purchasing power parity. 54% to 88% of projects in various metro cities suffer from delays of average 7 months. Such delays lead to cost escalations.
In order to provide consistent, reliable and efficient project delivery systems project management plays a vital role in order to reduce surprises and confusion in decision making. Thus, this requires a more diligent and concentrated approach towards strategy making and contract formulation.
Even though there is a widespread awareness of the fact that there is a shortage of skilled and capable resources to manage projects both in the government and corporate organizations only 68% of the large organizations have a structured programme for project management training and development. The number may be far lower in small and mid-sized organizations. The effectiveness of the in-house programmes is rarely evaluated.
In order to streamline projects and come up with steady strategies it is important to have project managers and leaders who are skilled, efficient and can take up such demanding tasks. For a project to be completed on time it is important to practice a more hands-on approach with well documented processes. Training at the job, customized project approaches, dynamic project tools and more resources are essential in making a project successful.
Through project management consistency is ensured across multiple tasks and geographies by using standardized practices. Productivity is increased by using cost, time and quality effectively.
With the emergence of GST and RERA, builders and developers will now have to undertake higher standards of performance, thus, not giving any other option but to invest in project management for the improvement of their sector.
Major issues faced in the real estate sector are as follows:
- Material and resource acquisitions
- Material cost escalations
- Statutory clearances and compliance to regulations
- Delay in execution
- Lack of awareness of project management practices
- Largely un-organized sector leading to limited use of standards and guidelines
- Cash flow issue-Developers divert funds meant for one project to other projects
In order to overcome these issues adopting the following practices and strategies will help in reducing delayed projects and cost overrun:
- Project Schedule Performance
- Project Cycle Time
- Strategic Business Alignment
- Voice of Customer
- Knowledge Management
In conclusion it is imperative for every organization be it big or small to adopt project management techniques for the development of the working personnel and organization as a whole. Increasing demand from the clients end will compel every organization to adopt these techniques in order to work more efficiently.
Mr. Raj Kalady, Managing Director
Project Management Institute