Introduction

Need for Project Management

Because projects are often complex and involve numerous

stakeholders, having a project manager to lead the initiative and
keep everyone on the same page is critical to project success.

In fact, PMI found that organizations using any type of project

management methodology are better at meeting budget and
staying on schedule while meeting scope, quality standards, and
expected benefits.

So why manage projects so methodically?

Here are six reasons why you should use project management.

1. Realistic project planning

The need for project management during the planning phase

cannot be overstated. Too often, organizations overestimate how
quickly they can achieve deliverables, underestimate the costs, or
both—a recipe for failure.

A good project manager considers the big picture and sets realistic
and achievable goals, budgets, and timelines. Without careful
management, a project can quickly get off track before it has even
begun.

To set realistic goals, budgets, and timelines, the project manager

communicates with different stakeholders to understand the
strategic priorities and business objectives of the initiative. Based on
their research, the project manager then outlines a project plan that
balances those priorities within the constraints of time and budget.
This process involves cost estimation, resource management, and
risk assessment.
Basic Gantt chart (Click on image to modify online)

2. Clear focus and objectives

Project managers help organizations hone in on their priorities and

define their project objectives. This is critical work because avoiding
project scope creep is a top-three driver of project success.

When project management is left to the team, the scope and

objectives can easily get muddled. Unclear focus can lead to scope
creep, missed deadlines, and overspending.

Plus, without a project manager to oversee the project plans and

task breakdowns, many teams may not notice potential risk factors
as they arise. If they don’t address evolving project risks, the team
could end up prioritizing the wrong tasks.

A good project manager keeps an eye on all these factors so that

the team can focus on the right tasks at the right time and adapt as
needed.
3. Strategic alignment

One of the most important reasons to use project management is

to align projects with business strategy. Mark Langley, the president
and CEO of PMI cautions, “If your organization is not good at
project management, you’re putting too much at risk in terms of
ultimately delivering on strategy.”

In other words, project management is a driver of organizational

strategy. So if you aren’t applying it to your initiatives, you are
missing a crucial opportunity to grow.

As project managers oversee the planning and execution of a

project, they help ensure the project’s overall goals and its
subsequent tasks and milestones all align with the organization’s
strategy. Strategic alignment at every level of the project keeps each
stakeholder on the same page and ensures your initiatives drive the
organization forward.
Product Roadmap Template (Click on image to view larger in Lucidchart)

4. Managed process

Project management is a proactive process that seeks to help the

right people do the right tasks at the right time. Without a set
project management method, many teams tend to work reactively
—handling issues as they arise rather than proactively planning for
known risks and setting project goals and parameters from the
beginning.

Project managers help teams break down a project into more

manageable pieces. By breaking the project into a clear process of
assigned tasks, milestones, and deadlines, project managers can
direct their teams more efficiently and react to issues with greater
agility.

5. Quality control
Quality control is an essential component of project management.
Your project could meet all parameters for time and budget, but if
the quality standards aren’t met, the project will be deemed a
failure.

Unfortunately, this is an all-too-easy trap to fall into. Teams are

under a lot of pressure to finish a project on time and on budget.
And this can lead to rushed work and shoddy execution.

That’s where project managers come in. They not only manage
deadlines and objectives, but they also keep an eye on how well
project tasks are executed. Project managers help outline
deliverables and define their quality standards so that everyone
knows exactly what they’re aiming for.

6. Reduced costs

In 2021, according to PMI, 9.4% of every dollar invested was wasted

due to poor project performance—that’s $94 million for every $1
billion invested.

This underscores the need for project management. Project

management reduces project costs by improving efficiency,
mitigating risks, and optimizing resources. Even with the added cost
of investing in a project manager, organizations stand to gain much
more.

Project Management Knowledge Areas and Processes

Please refer this link for project Management Knowledge Areas

https://www.projectcubicle.com/project-management-processes-process-groups-knowledge-
areas/

The Project Life Cycle and Phases of Project Management Life Cycle

(Covered in Unit 1 Notes, Please refer those Notes)

Impact of Delays in Project Completions

INTRODUCTION

A delay may occur concurrently with other delays and all of them may impact the
project completion date. Delays caused by the client such as late submission of
drawings and specifications, frequent change orders, and inadequate site
information generate claims from both the main contractors and subcontractors
which many times entail lengthy court bettles with huge financial repercussions.
Delays caused by contractors can generally be attributes to poor managerial skills.
Lack of planning and a poor understanding of accounting and financial principles
have led to many a contractor’s downfall.

Many construction projects have faced various problems and delay of time is one of
the major problems. The delay in dispute settlement has manifold effects such as it
will give detrimental to the relationship between owner and contractor. Moreover, it
will also contribute to the cost and time overruns. The most serious problem is it
sends bad signals to foreign investors thereby slowing down the national progress. It
is generally said that the contract language is considered difficult to comprehend and
they are therefore a major source of disputes. Although our research are in the same
state, but my research would be more concentrate on campus construction project
and the problems faced in university construction site would be slightly different from
other area.

A. Types of delay

1. Critical or noncritical

2. Excusable or non-excusabl

3. Compensable or non-compensable

4. Concurrent or non-concurrent

All delays that are identified in the analysis will be either excusable or non
excusable. Delay can be further categorized into compensable or non-compensable
delays.

B. Critical Versus Non-Critical Delays

Delays that affect the project completion, or in some cases a milestone date, are
considered as critical delays, and delays that do not affect the project completion, or
a milestone date, are noncritical delays. If these activities are delayed, the project
completion date or a milestone dater will be delayed. The determining which
activities truly control the project completion date depends on the following:

1. The project itself

2. The contractor’s plan and schedule (particularly the critical path)

3. The requirement of the contract for sequence and phasing

4. The physical constraint of the project, i.e. how to build the job from a practical

perspective.

C. Excusable versus Non-Excusable Delays

All delays are either excusable or non-excusable. An excusable delay is a delay that
is due to an unforeseeable event beyond the contractor’s or the subcontractor’s
control. Normally, based on common general provisions in public agency
specifications, delays resulting from the following events would be considered
excusable:

1. General labor strikes

2. Fires

3. Floods

4. Acts of God

5. Owner-directed changes

6. Errors and omissions in the plans and specifications

7. Differing site conditions or concealed conditions

8. Unusually severe weather

9. Intervention by outside agencies

10. Lack of action by government bodies, such as building inspection.

D. Compensable Delays versus Non-Compensable Delays

A compensable delay is a delay where the contractor is entitled to a time extension

and to additional compensation. Relating back to the excusable and non-excusable
delays, only excusable delays can be compensable. Non-compensable delays mean
that although an excusable delay may have occurred, the contractor is not entitled to
any added compensation resulting from the excusable delay. Thus, the question of
whether a delay is compensable must be answered. Additionally, a non-excusable
delay warrants neither additional compensation nor a time extension.

Whether or not a delay is compensable depends primarily on the terms of the

contract.

In the most cases, a contract specifically notes the kinds of delays that are non-
compensable, for which the contractor does not receive any additional money but
may be allowed a time extension.

E. Concurrent Delays

The concept of concurrent delay has become a very common presentation as part of
some analysis of construction delays. The concurrency argument is not just from the
standpoint of determining the project’s critical delays but from the standpoint of
assigning responsibility for damages associated with delays to the critical path.
Owners will often cite concurrent delays by the contractor as a reason for issuing a
time extension without additional compensation. Contractors will often cite
concurrent delays by the owner as a reason why liquidated damages should not be
assessed for its delays. Unfortunately, few contract specifications include a definition
of concurrent delay and how concurrent delays affect a contractor’s entitlement to
additional compensation for time extension or responsibility for liquidated damages.

F. Effects of Delay

The six effects of delay identified were:

1. Time overrun;

2. Cost overrun;

3. Dispute;

4. Arbitration;

5. Total abandonment; and

6. Litigation.

II. LIQUIDATED DAMAGES

Clauses have the virtue of informing both parties to a contract in advance what the
damages payable for an identified breach will be at the time of entering the contract.
This can be equal advantage to the party who must pay the damages as it is to the
party receiving the damages. The upper limit of the damages payable is fixed and a
party can take this into account in the initial negotiations. It is not uncommon for a
contractor who knows he or she cannot complete within the required time to add the
liquidated damages equivalent of the time overrun to the tendered price.

Conclusion
Delays occur in every construction project and the magnitude of these delays varies
considerably from project to project. Some projects are only a few days behind the
schedule; some are delayed over a year. So it is essential to define the actual
causes of delay in order to minimize and avoid the delays in any construction project.
There is a wide range of views for the causes of time delays for engineering and
construction projects. Some are attributable to a single party, others can be ascribed
to several quarters and many relate more to systemic faults or deficiencies rather
than to group or groups. The successful execution of construction projects and
keeping them within estimated cost and prescribed schedules depend on a
methodology that requires sound engineering judgment.

Project Management Principle

1. Principle of Success:

As a project manager, before getting into any project, you need to

have a successful mind-set and you should strive towards project
success. It is not enough to just complete the project on time and
within budget but is all about delivering what the client expects and of
the highest possible quality.

2. Principle of Project Manager:

As a Project Manager, you are responsible for leading the project to

success. Project Managers will get sponsorship, resources, set
schedules and allocate budgets, ensure risk management and
transparency among resources and stakeholders, and ensure smooth
working of all aspects of the project.
The project manager’s toolkit must include good technical knowledge,
good people skills, communication skills and an ability to ensure
continuous improvement by upskilling and learning.

3. Principle of Commitment:

Commitment is necessary in whatever we do. Everyone involved in

the project must be committed to reaching the project objectives and
goals, and this commitment should be made even before the project
is started. This requires everyone to be aligned to the project scope,
goals, objectives, quality, and time.

4. Principle of Structure:

This refers to the structure your project will take with respect to
project goal, resources, and time. These three pillars provide the
structure to the project and must be decided even before the project
starts. By knowing the reason for the project and what it aims to
achieve, you can identify how to go about it and this provides the first
structure. The second structure is to identify how much time it will
take to reach the objectives and the final structure is to identify the
resources.

5. Principle of Definition:

A project that is large and involves multiple stakeholders can often be

chaotic and confusing. Different stakeholders may have diverse views
and ideas of the project. But as project manager, you must ensure
that everyone is on the same page. Also, note that defining the
project is not a one-time activity but must be re-visited at intervals
throughout the course of the project so that everyone is clear about
the goals and objectives and stays on track.

6. Principle of Transparency:

Transparency and trust are the foundations of a good project.

Transparency refers to openness not just among you and your team
members but also between you and the stakeholders and customers.
It is your responsibility to ensure that you keep the stakeholders
clued in on what is always happening in the project. There are several
tools available that allow you to communicate and share project
status with your stakeholders and team members to ensure
transparency.

7. Principle of Communication:

Communication is one of the ways to ensure transparency and to gain

support and funding from the stakeholders. As a project manager,
you need to have excellent communication skills to lead and motivate
your team and engage with stakeholders, management, and everyone
else involved in the project.

8. Principle of Progress:

A project must have well defined thresholds of progress and clearly

defined milestones. Team members must be clear on what they need
to achieve, the project objectives, and the goals and scope must be
clearly defined and understood by all. The scope and objectives must
be clearly mapped out even before the commencement of the project.
Along with this there must be proper risk assessment strategies in
place. Without these parameters being clarified, the project may not
see the light of day.
 9. Principal Life cycle:

The project development lifecycle includes all stages in the lifecycle of

the project, from its inception to rollout and phasing out. Each phase
of the project is an essential part of the overall success of the project
and must involve careful planning and initiation. Every stage must
have defined milestones and when these milestones are reached,
they let you know that you are on track to project completion.

10. Principle of Culture:

The organizational culture plays a huge role in the success or failure

of the project. A positive work culture supports innovation, growth,
and a positive attitude among the workforces. Team members can
speak without fear and put forth their ideas and suggestions freely.
Conversely, a negative work environment demotivates the entire
team and increases the chances of project failure. The organization
must strive to adopt a culture that is horizontal and promotes
creativity and quality work. As a project manager, you must strive to
maintain a positive work environment and motivate your team to
deliver the best.

11. Principle of Risk:

Risk is a part of every project. A project without associated risks is

unimaginable. Risks are anything that alter the objectives or end goals
of the project and can be positive or negative. But whatever the type
of risk, it must be identified and mitigated to ensure that the project is
not adversely affected.

Risks can be identified not just at the time of planning or project

conceptualization but even during the project, where they are looked
into in more detail. Once the risks are identified, it is important to
resolve them on time so that they do not become a bottleneck. Risk
management is an important part of project management and must
be practiced by every team and organization. The team should be
trained to identify risks as soon as possible to minimize losses or
project failure.

12. Principle of Accountability:

A project is only as good as the team and as a team, you must be

accountable and measure your deliverables and success. Measuring
milestones and deliverables and checking if they align to your original
estimate will help you decide if you are on track for project
completion. These metrics of measurements also help you identify
top performers in your team and motivate and suitably reward them
for their work and diligence.