CONSTRUCTION MANAGEMENT

Construction Management



Construction Management

Introduction

L&H is a UK based construction and real estate development company which has its operations both for the public and private customers. The main aim of the company is to gain the customer's satisfaction by providing them the quality services. The company is considered to be the world's leading construction company having its record of satisfying the maximum number of customers. The main purpose of this paper is to present a report to the MD of the company to show him the reasons of failure and customer dissatisfaction in the Midlands project.

Discussion

L&H is one of the largest construction developers in the nation. The company is mainly famous for undertaking small projects. In terms of business and bidding success, company has always been successful, and because of this revenue of the company increased. On the other hand, the increase in turnover had the negative impact on the profit of the company. In the Midland's project, many problems occurred, mainly the bidding problems because of the economic climate, low morale on the site, leakages in the window system. All these problems resulted in the customer dissatisfaction which is a dangerous sign for the company. There are different factors that affect the outcomes of a project. These factors can be environmental, financial and management related (Allen, 2000, p.3).

Reasons behind the problems in Midlands Site

There are many reasons behind all these problems and failures on the site of Midlands, and these problems resulted in failure and customer dissatisfaction. Following are the predominant reasons of such failure.

Economical climate affecting the bidding rate

The economic climate greatly affects the bidding rate of any company as bidding rate which has its direct relation to the economic climate. Bidding does not always ensure the success of a project. Mostly companies think that if their bidding process is good then it could very easily satisfy their clients and can lower the project cost (Pillai, 2002, p.165). In real, this phenomenon is very wrong; though bidding plays a very prominent role in getting the project but, it does not provide any help in making that project successful. The change in the economic climate can affect the bidding process in such a way that the economic conditions may allow more bidders to come and make some bid. The same is the case with the L&H Corporation, because of the change in the economic climate, company faced problems in the bidding process as there were many bidders on the Midlands site (Morris, 2007, p.56). Therefore, it is necessary for the company to make them ready for the change in the economic climates, and make strategies in accordance with such changed economic climates.

Suitability

Another reason is the suitability of the surrounding conditions; the company was facing many problems on the Midlands site. The main problem was that the climate was not suitable with the prepared material; therefore, L&H faced problems in the windows leakages and others (Moodley, 2006, p.178). It was the mistake of the company that they did ...