PROJECT FINANCING
What is a Project?
Any undertaking with a defined objective by which completion is defined. Project is a
scheduled set of activities aimed towards the creation of a particular asset as per
planned specification.
Temporary
Unique deliverables
Structured
Requires forecasting
Limited resources
Element of risk
• What is Project Management?
• Project management involves planning, organizing, and overseeing a
project to achieve specific goals within a given time frame and
budget. It includes managing resources, communication, and risks to
ensure success.
• Real-Life Examples of Project Management:
[Link] Planning
1. Example: Organizing a college fest.
2. Tasks: Setting a budget, deciding the theme, coordinating with sponsors, managing
marketing campaigns, and ensuring everything is completed on time.
3. Tools: Gantt charts or project management software like Trello or Asana.
[Link] an App
1. Example: Developing a mobile app for a startup.
2. Tasks: Identifying features, creating wireframes, assigning development tasks,
conducting tests, and launching the app.
3. Outcome: Deliver a functional app within the deadline and budget.
[Link] Campaign
1. Example: Launching a social media campaign.
2. Tasks: Defining the target audience, creating content, scheduling posts, tracking
analytics, and adjusting strategies.
3. Skills: Communication and time management.
Characteristics of Project Management in Infrastructural Projects
1. Goal-Oriented
•Every project begins with a clear purpose and well-defined objectives.
•Example: The goal of building the college library is to provide a state-of-the-art facility for students and
faculty, equipped with modern digital resources, reading spaces, and a comfortable study environment
2. Defined Scope
•The project scope outlines what is included and excluded from the project deliverables.
•Example: The library will include reading rooms, a digital lab, book cataloging systems, and furniture, but
will not include recreational or dining facilities.
3. Time-Bound
•Projects operate within a fixed timeline with specific deadlines and milestones.
•Example: The construction of the library is scheduled to start on January 1st and be completed by
December 31st (12 months). Key milestones include:
• Month 1–3: Finalizing designs and acquiring necessary permits.
• Month 4–6: Foundation laying and structural work.
• Month 7–9: Installation of electrical systems, plumbing, and HVAC.
• Month 10–12: Finishing interiors and setting up IT systems.
.
• 4. Resource Allocation
• Efficient use of limited resources like budget, materials, and manpower.
• Example: Allocate a 50-lakh budget for construction, furniture, IT systems, and landscaping.
• 5. Team Collaboration
• Collaboration across different teams is essential.
• Example: Architects design the structure, contractors handle construction, and IT teams install the digital systems.
• 6. Planning and Scheduling
• Create detailed plans, including tasks, dependencies, and deadlines.
• Example:
• Month 1–3: Approve designs and acquire permits.
• Month 4–6: Lay the foundation and build the framework.
• Month 7–9: Add electrical systems, plumbing, and HVAC.
• Month 10–12: Install furniture and digital systems.
7. Risk Management
•Identify and mitigate potential risks.
•Example:
• Risk: Delays due to bad weather.
• Solution: Use prefab materials to speed up construction.
• Risk: Budget overrun due to rising material costs.
• Solution: Lock contracts early with suppliers.
8. Monitoring and Control
•Track progress and ensure quality standards are met.
•Example:
• Weekly site visits by the project manager to ensure the structure adheres to the design.
• Adjust the schedule to address delays.
9. Stakeholder Involvement
•Engaging relevant stakeholders.
•Example: College management approves the design and budget, while faculty suggests features like study rooms and
group spaces.
10. Outcome-Oriented
•The project aims to deliver tangible results.
•Example: The completed library provides students with a modern study environment, increasing academic productivity.
