Revenue Generation Using Land Value Capture Mechanism: A Case of Pune Metro Rail Project
Smita K. Patil and Shruti Vaishampayan
The growth of technology and modernization coupled with increasing demand over the last few decades has resulted in an infrastructure boom in India. Infrastructure finance is one of the most complex and challenging dimensions of planning large infrastructure for Indian cities. Government budgetary pressures have given rise to various innovative financing instruments like Public Private Partnership (PPP). However, it is observed that this financing structure is facing challenges in its successful implementation. Another innovative and increasingly accepted way to fund public transport is through Land Value Capture (LVC) Finance. This paper discusses the potential of Land Value Capture (LVC) methods for revenue generation of infrastructure projects and focuses on the feasibility of one of the Land Value Capture methods, namely 'Premium or Additional FSI Method' proposed in case of Pune Metro Rail Project. The study attempts to compute the revenue that can be generated for a stretch of 1.8 km distance between two metro stations on the proposed Pune Metro Corridor III. The study suggests that such type of detailed estimates of revenue generation potential should be worked out based on the characteristics of metro rail influence area in terms of existing land use and potential to use additional FSI.
Infrastructure Finance; Public-Private Partnership (PPP); Land Value Capture (LVC); Premium FSI method; Metro Rail
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Research Articles
A Hierarchical Model of Constructability Improvement Barriers in the Indian Construction Industry
Ashish Goel
Past research has established that barriers to constructability improvement exist at project level and organizational management level. Multiple researchers have identified and ranked these barriers and suggested measures to overcome the same. However, the literature lacks in terms of establishing the interaction between these barriers and their hierarchical structure. Such a hierarchical model may provide additional insights into possible reasons of these barriers and may help senior management and project managers in developing strategies to overcome the barriers. Present research aims to fill this knowledge gap by modelling the barriers identified through a comprehensive literature review and ranked through a questionnaire survey. Interpretive Structural Modelling (ISM) and MICMAC analysis were used to develop hierarchical model and driving power-dependence-power diagram respectively for the top 15 barriers identified from the survey. The model revealed that barriers like discontinuity of key members, poor communication management, lack of training and skill development, poor timeliness of inputs from suppliers were having high driving power and hence of strategic importance to senior management. On other hand, barriers like lack of willingness of field personnel to offer preconstruction advice, no accessibility to existing knowledge database and non-identification of problems in initial stage of project, were found to have higher dependence and therefore have more importance for the project managers.
Constructability; Constructability Improvement; Barriers; Interpretive Structural Modelling (ISM); India
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Research Articles
Effect on Cost of Dense Bituminous Macadam (DBM) as per Superpave Mix Design in Indian Scenario
Digvijay Singh Chauhan and Sumedh Mhaske
The Construction of roads is important for the growth of a nation. However, due to various reasons like high traffic, overloading of vehicles and weather changes, the flexible pavements undergo frequent repairs and deteriorate before completion of the design life of the pavement. This study emphasizes the use of Superpave guidelines for the mix design of Dense Bituminous Macadam. For this, specimens were prepared for Dense Bituminous Macadam (DBM) using Marshall method guidelines as well as Superpave method guidelines. To enable easier comparison, certain criteria which were common in both the methods were adopted, i.e. Optimum Binder Content, Stability, Flow and Asphalt film thickness. The results of performance tests were recorded and cost analysis was performed for both the DBM mixes to understand the effect on cost. The Life Cycle Cost Analysis using the Net Present Value (NPV) method was performed to project the NPV value after 20 years. The DBM mix prepared using Superpave Mix Design has shown better performance and had lesser Net Present Value than the DBM mix prepared using Marshall Design guidelines.
Dense Bituminous Macadam; Superpave Mix Design; Life Cycle Cost Analysis; Net Present Value
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Research Articles
Equipment Utilization Efficiency Analysis Using Value Stream Mapping for Runway Construction Project
Anjana Rajendran,, Samadhan Jagtap, Belur Ramapriya Sowlabhya and Arun Chandramohan
Equipment utilization efficiency is required to identify the idling of equipment and its efficiency of allocation in any construction project. Since most of the construction projects are dynamic and require various type of equipment with varying capacities, project managers need to allocate the right type of equipment of the right size for the right job. The study is carried out on a real-time runway construction project to identify the idling of construction equipment allocated to the activity of laying of Pavement Quality Concrete (PQC). The study computes the utilization efficiency and the waste associated with the over allocation of equipment. Based on data obtained from the construction project site, a value stream map was prepared, and the future stream map with reduced overall location waste is developed. The study is also carried out to identify various factors that have resulted in a decline in utilization efficiency through interactions with site personnel adopting the Delphi technique. An attempt was also made to compute the cost-benefit of allocating the resource based on future stream map by hiring larger capacity dumper trucks and reducing the number of dumper trucks. This analysis revealed that the time taken could be reduced from 60 minutes to 48 minutes with a cost saving of Rs. 3,20,000 a month, which amounts to 28% saving in cost per month.
Utilization Efficiency, Value Stream Map, Process Waste
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Research Articles
Exploration of Project Marketing Practices of Indian Construction Contracting Organizations
Jonardan Koner, Devang Desai and Ashwin N.
The Indian construction industry, in the wake of globalization, is experiencing competition, uncertainties and risks never seen before. Adopting new technologies, for cost effective products or services, have become inevitable. The recent government policy changes such as Real Estate Regulatory Authority (RERA) act and Goods and Services Tax (GST) taxation have also necessitated structured processes and is pulling the industry out of the comfort zone. The construction contracting organisations have been awarded contracts through competitive bidding which more or less depends on how low the bid is, resulting in lower profit margins for these organizations. Under these circumstances, it is important for these organizations to maintain good rapport with their customers, thus ensuring continuous supply of orders to their existing portfolio. In this regard, construction organizations can rely upon project marketing strategies and tools to differentiate themselves from their rivals, create and/or maintain clients, and thereby create competitive advantage. Marketing mainly deals with customers and managing profitable customer relationships. The aim of this study is to analyze marketing approaches of Indian contracting companies and strategies used to focus on improving the competitive potential, ensuring long-term and stable positioning of these companies. A questionnaire survey was carried out in order to identify the marketing strategies implemented by Indian construction contracting companies and the extent to which these contractors carry out these marketing practices. The study is destined to give a comprehensive understanding of marketing functions which may be applicable for construction majors looking to expand their business and also for new enterprises looking to venture into the construction industry
The concept of The concept of lean promises effective delivery of real estate construction projects under highly complex environment and severe constraints of resources. Realizing the benefits of the lean, many real estate developers are proposing to implement lean construction for their projects despite enormous issues and challenges involved in its implementation. This paper has made an attempt to evaluate those issues and challenges and suggest recommendations for successful implementation of the lean concept in construction. A systematic literature review of journal articles, conference proceedings, Approach books and Approch magazines followed by field survey using structured questionnaire and interview of site personnel as a part of the research approach. To arrive at the appropriate findings, evaluation of the publications and the field data analysis has been carried out that led to the identification of issues and challenges creating obstacles/barriers in successful implementation of lean construction in real estate projects. The study is limited to real estate projects within the State of Maharashtra, India. The study can be further extended to all other geographical locations in India. This paper has reviewed the issues and challenges in implementation of lean Implications concept in real estate projects and its practical implications in lean construction. Many countries around the world are encouraging the implementation of lean concept in all types of construction projects Implications despite several issues and challenges in its implementation. This paper aims to investigate the key issues and challenges in real estate projects that should be strategically tackled by implementing the concept of lean construction. It might open up new frontier of research in the field of lean construction that would contribute to gain more practical knowledge and add value to the construction world.
Lean Construction; Challenges; Implementation; Toyota Production System (TPS); Real Estate
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Research Articles
Key Considerations of Cross-Laminated Timber (CLT) for High-Rise Construction in Australia: A Review
Beau Gilbert, Martin Skitmore, Yousuf Ali and Jason Gray
The world is heading towards a more sustainable outlook, and products such as crosslaminated timber (CLT) provide real options for lowering the environmental impact of future projects. Although, multi-storey CLT structures are in the early phase of development and their uses are on the rise, research related to CLT is fragmented and in need of an integrated critical analysis. This paper aims to address the effect of CLT on the high-rise construction industry in Australia in the light of worldwide developments taking place in research and practice. Using a behavioural and descriptive approach, 51 key research articles from 2010-17 are reviewed, with underlying themes in such areas as the technical analysis of CLT, material properties of CLT, sustainable advantages relating to CLT, market awareness barriers in the implementation of CLT, and aesthetic design opportunities available to designers. The findings include a strong case for CLT as a sustainable renewable material, significant savings in program time and associated overheads, low site impact, and significant weight savings, leading to a lower cost of foundations and transfer slabs. CLT is a structurally viable alternative material and further studies into user and industry attitude will positively influence the potential of CLT and other green materials in high-rise construction in Australia. The factors that hinder the growth of CLT in high-rise construction in Australia are industry resistance to change, negative user perceptions, legislative barriers, high up-front cost, and lack of local CLT supply. To overcome the obstacles to CLT use in Australia, this paper suggests the need to improve collaboration between stakeholders in the development of the building code, and training initiatives to increase awareness and development of the knowledge base of its use in construction in Europe and the United States.
Cross-Laminated Timber (CLT); Multi-Storey Construction; Engineered Mass Timber; Barriers To Adoption; Australia
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