CONSTRUCTION

METHODS AND
PROJECT
MANAGEMENT
 Lecture 2.1: Project Management

Lecture 2.2: Project Cycle

Lecture 2.3: Organizing and Staffing

AGENDA Lecture 2.4: Management Functions

Lecture 2.5: Construction Project

Requirements
PROJECT
PROJECT
A project is made up of a group of interrelated work activities constrained by a specific scope,
budget, and schedule to deliver capital assets needed to achieve the strategic goals of an agency.
It is a temporary endeavor undertaken to create a unique product, service, or result.
The temporary nature of projects indicates that a project has a definite beginning and end. Then end
is reached when the project’s objectives have been achieved or when the project is terminated
because its objectives will not or cannot be met, or when the need for the project no longer exists.
A project may also be terminated if the client (customer, sponsor, etc.) wishes to terminate the
project.
Temporary does not necessarily mean the duration of the project is short. It refers to the project’s
engagement and its longevity.
Temporary does not typically apply to the product, service, or result created by the project; most
projects are undertaken to create a lasting outcome. For example, a project to build a national
monument will create a result expected to last for centuries.
Projects can also have social, economic, and environmental impacts that far outlive the projects
themselves.
PROJECT
Every project creates a unique product, service, or result. The outcome of the project may be
tangible or intangible. Although repetitive elements may be present in some project deliverables
and activities, this repetition does not change the fundamental, unique characteristics of the
project work.
For example, office buildings can be constructed with the same or similar materials and by the
same or different teams. However, each building project remains unique with a different
location, different design, different circumstances and situations, different stakeholders, and so
on.
An ongoing work effort is generally a repetitive process that follows an organization’s existing
procedures. In contrast, because of the unique nature of projects, there may be uncertainties or
differences in the products, services, or results that the project creates.
Project activities can be new to members of a project team, which may necessitate more
dedicated planning than other routine work.
In addition, projects are undertaken at all organization levels. It can involve a single individual or
multiple individuals, a single organizational unit, or multiple organization units from multiple
organizations.
PROJECT
A project can create:
• A product that can be either a component of another item, an enhancement of an item, or an
end item in itself;
• A service or a capability to perform a service (e.g. a business function that supports
production or distribution);
• An improvement in the existing product or service lines (e.g. management techniques project
undertaken to reduce defects); or
• A result, such as an outcome or document (e.g. a research project that develops knowledge
that can be used to determine whether a trend exists or a new process will benefit society)
PROJECT
Another definition of a project was given by JM Juran which defined that “a project is a
problem scheduled for solution”.
Problem refers to the gap between where you are and where you want to be, with an obstacle
that prevents easy movement to close the gap.
Projects are group of activities that have to be performed with limited resources to yield specific
objectives, in a specific time, and in a specific locality.
Thus, a project is a temporary endeavor employed to create a unique product, service or
results
Projects are an investment on which resources are used to create assets that will produce
benefits over an expanded period of time. It is a unique process, consisting of a set coordinated
and controlled activities with start and finish dates, undertaken to achieve an objective
conforming to specific requirements, including the constraints of scope, budget and schedule.
WHY ARE PROJECTS INITIATED?
Projects are initiated in the following scenarios:
• When starting a new business
• In order to develop/modify a product or service
• For relocating and/or closing a facility
• For some community issues
• In order to re-engineer the process so as to reduce complaints, reduce cycle time, and
eliminate errors.
ATTRIBUTE OF A PROJECT
Projects focus on a single goal.
• They have stakeholders who are affected by the end results.
• They have to be completed within specified time frame (completion date)
• They have to be completed within budget (limited resources including people, money,
amchines)
• And should be according to the specifications (with a certain level of functionality and quality)
In brief, projects are:
• Directed towards achieving a specific result.
• Coordination of undertaking of interrelated activities.
• Of limited duration, has a beginning and an end.
• Prone to risks, that is, every project has a certain amount of risk.
CHARACTERISTICS OF A PROJECT
• Projects are temporary with a definite beginning and a definite end.
• They also have temporary opportunities and temporary teams.
• Projects are terminated when the objectives are achieved, or conversely, if the objectives
cannot be met.
• Most of the projects last for several years. However, they have a finite duration.
• They involve multiple resources (human and non-human) and require close coordination.
• They are composed of interdependent activities.
• At the end of the project, a unique product, service, or result is created.
• Projects encompass complex activities that are not simple, and may require repetitive acts.
• They also include some connected activities. Some order and sequence is required in
project activities. The output from one activity is an input to another.
PROJECT TRIPLE CONSTRAINTS
PROJECT TRIPLE CONSTRAINTS/COMPONENTS
A project consists of three components: scope, budget, and schedule.
When a project is first assigned to a project manager, it is important that all three of these
components be clearly defined.
• Scope – represents the work to be accomplished
• Budget – refers to the costs
• Schedule – refers to the logical sequencing and timing of the work to be performed
The quality of a project must meet the owner’s satisfaction and is an integral part of project
management.
PROJECT TRIPLE CONSTRAINTS/COMPONENTS
A balance is necessary
between the scope,
SCOPE budget, and schedule.
For any given project there
is a certain amount of work
that must be performed
and an associated cost
PROJECT
and schedule for
MANAGEMENT producing the work.
Increased Work
 Increased Budget
BUDGET SCHEDULE
QUALITY  Increased Schedule
Decrease Work
 Decreased Budget
 Decreased Schedule
Or changes of either…
PROJECT TRIPLE CONSTRAINTS/COMPONENTS
The source of many problems associated with a project is failure to properly define the
project scope. Too often the focus is just on budget or schedule.
Not only should the scope, budget, and schedule be well defined, but each must be linked
together since one affects the other, both individually and collectively.
Since the project scope defines the work to be accomplished, it should be the first task in the
development of a project, prior to the development of either the budget or the schedule.
Experienced project managers agree that the budget and schedule are derived from the scope.
It is the duty of the project manager to ensure that the project scope, budget, and schedule are
linked together.

BOQ
PROJECT TRIPLE CONSTRAINTS/COMPONENTS
Budgeting is important because it establishes the amount of money the owner will spend to
obtain the project and the amount of money that the design and construction organizations will
be compensated for performing the work.
Each party is concerned about project cost overrun because it adversely affects profitability and
creates adverse relationships between the parties.
Cost overruns means that the actual cost of a project has exceeded its initial budget, essentially
meaning the project is spending more money than was originally planned, often due to
unforeseen circumstances, poor planning, or scope changes.
PROJECT TRIPLE CONSTRAINTS/COMPONENTS
Scheduling is important because it brings together the project definition, people, cost,
resources, timing, and methods of performing work to define the logical sequencing of activities
for the project.
The schedule is the final product of scope definition, budgeting, and planning and forms the
base against which all activities are measured.
Project tracking and control cannot be accomplished without a good plan or schedule.
PROJECT TRIPLE CONSTRAINTS/COMPONENTS
Quality is an element that is integrated into and between all parts of a project: scope, budget,
and schedule.
It should not be construed as merely creating drawings with a minimum number of errors,
furnishing equipment that meets specifications, or building a project to fulfill the requirements of
a contract.
Certainly these factors are a part of quality, but it involves much more. Quality is meeting the
needs and satisfaction of the ultimate end user of the project, the owner.
It is the responsibility of all participants in a project, including all levels of management and
workers in each of the principal parties. An attitude of achieving quality must be instilled in
everyone and perpetuate throughout the work environment.
Instead of “What can we do to pass quality control or final inspection?”
Ask, “What can we do to improve our work and what is the best way we can furnish a project
that meets the needs and satisfaction of the owner?”
PROJECT MANAGEMENT
RESPONSIBILITIES OF PARTIES
A project has generally a three principal parties and each has a role to fulfill in the various
phases of design development and construction. These are th
A team approach between the owner, designer, and contractor must be created with a
cooperative relationship to complete the project in the most efficient manner.
The owner is responsible for setting the operational criteria for the completed project. Examples
are usage of a building, barrels per day of crude oil to be refined, millions of cubic feet per hour
of gas to be transported in a pipeline, and so on. Any special equipment, material, or company
standards that are to apply to the project must also be defined
Owners also need to identify their level of involvement in the project, e.g., the review process,
required reports, and the levels of approval.
The owner is also responsible for setting parameters on total cost, payment of cost, major
milestones, and the project completion date.
RESPONSIBILITIES OF PARTIES
The designer is responsible for producing design alternatives, computations, drawings, and
specifications that meet the needs of the owner.
In addition there may be other duties that are delegated to the designer by the owner, e.g., on-
site or periodic inspection, review of shop drawings, and in some instances the acquisition of
land and/or permits.
It is the duty of the designer to produce a project design that meets all national codes;
standards; and environmental and safety regulations.
In addition a budget for the design should be prepared, along with a design schedule that
matches the owner’s schedule. The design schedule should be directly correlated to the
construction schedule so the project can be completed by the construction contractor when the
owner needs it.
As part of their design responsibility, designers usually prepare an estimate of the probable
construction cost for the design they have prepared. Major decisions by the owner to proceed
with the project are made from the designer’s cost estimate.
RESPONSIBILITIES OF PARTIES
The construction contractor is responsible for the performance of all work in accordance with
the contract documents that have been prepared by the designer.
This includes furnishing all labor, equipment, material, and know-how necessary to build the
project.
The construction phase is important because most of the project budget is extended during
construction. Also, the operation and maintenance of the completed project is highly dependent
on the quality of work that is performed during construction.
The contractor must prepare an accurate estimate of the project, develop a realistic construction
schedule, and establish an effective project control system for cost, schedule, and quality.
PROJECT MANAGEMENT
Project Management is the art and science of coordinating people, equipment, materials,
money, and schedules to complete a specified project on time and within approved costs.
A project manager is responsible for overseeing a project’s progress to ensure it’s completed on
time and within budget.
Much of the work of a project manager is organizing and working with people to identify
problems and determine solutions to problems.
In addition to being organized and a problem solver, a manager must also work well with
people. It is people who have the ability to create ideas, identify and solve problems,
communicate, and get the work done. Thus, the project manager must develop a good working
relationship with people in order to benefit from the best of their abilities.
It is the duty of a project manager to organize a project team of people and coordinate their
efforts in a common direction to bring a project to a successful completion.
PROJECT MANAGEMENT
Project management is the application of knowledge, skills, tools, and techniques to project
activities to meet the project requirements.
Project management is accomplished through the appropriate application and integration of the
logically grouped project management processes, which are categorized into five process
groups:
• Initiation/Initiating
• Planning
• Execution/Executing
• Monitoring and Controlling, and
• Conclusion/Closing.
PROJECT MANAGEMENT
Project management typically includes, but is not limited to:
• Identifying requirements;
• Addressing the various needs, concerns, and expectations of the stakeholders in planning
and executing the project;
• Setting up, maintaining, and carrying out communications among stakeholders that are
active, effective, and collaborative in nature;
• Managing stakeholders towards meeting project requirements and creating project
deliverables;
• Balancing the competing project constraints, which include, but are not limited to:
• Scope, Quality, Schedule, Budget, Resources, and Risks.
PROJECT MANAGEMENT
The specific project characteristics and circumstances can influence the constraints on which
the project management team needs to focus.
The relationship among these factors is such that if any one factor changes, at least one other
factor is likely to be affected.
For example:
• if the schedule is shortened, often the budget needs to be increased to add additional
resources to complete the same amount of work in less time
• If a budget increase is not possible, the scope or targeted quality may be reduced to deliver
the project’s end result in less time within the same budget amount
Project stakeholders may have differing ideas as to which factors are the most important,
creating an even greater challenge.
Changing the project requirements or objectives may create additional risks. The project team
needs to be able to assess the situation, balance the demands, and maintain proactive
communication with stakeholders in order to deliver a successful project.
FUNCTIONS OF MANAGEMENT
Management is often summarized into five basic functions: planning, organizing, staffing,
directing, and controlling.
Although these basic management functions have been developed and used by managers of
businesses, they apply equally to the management of a project.
Planning
• The formulation of a course of action to guide a project completion.
• Starts at the beginning of a project, with the scope of work, and continues throughout the life
of a project.
• Establishment of milestones and consideration of possible constraints are major parts of
planning.
• Successful project planning is best accomplished by the participation of all parties involved in
a project.
FUNCTIONS OF MANAGEMENT
Organizing
• The arrangement of resources in a systematic manner to fit the project plan.
• A project must be organized around the work to be performed. There must be a breakdown
of the work to be performed into manageable units, which can be defined and measured.
• Work breakdown structure (WBS) is a visual representation of a project’s tasks, deliverables,
and dependencies. It is used to help define the projects scope and objectives, and to plan
and track the project’s progress.
FUNCTIONS OF MANAGEMENT
Staffing
• The selection of individuals who have the expertise to produce the work.
• The persons that are assigned to the project team influence every part of a project.
• Most managers will readily agree that people are the most important resource on a project.
People provide the knowledge to design, coordinate, and construct the project.
• The numerous problems that arise throughout the life of a project are solved by people and
hence selection of the right individuals is essential to project construction.
FUNCTIONS OF MANAGEMENT
Directing
• Is the guidance of the work required to complete a project.
• The people on the project staff that provide diverse technical expertise must be developed
into an effective team. Although each person provides work in his or her area of expertise,
the work that is provided by each must be collectively directed in a common effort and in a
common direction.
Controlling
• The establishment of a system to measure, report, and forecast deviations in the project
scope, budget, and schedule.
• The purpose of project control is to determine and predict deviations in a project so
corrective actions can be taken.
• Project control requires the continual reporting of information in a timely manner so
management can respond during the project rather than afterwards. Control is often the most
difficult function of project management.
 KEY CONCEPTS OF
PROJECT MANAGEMENT
KEY CONCEPTS OF PROJECT MANAGEMENT
1) Ensure that one person, and only one person, is responsible for the project scope, budget,
and schedule.
2) Don’t begin work without a signed contract, regardless of the pressure to start.
3) Confirm that there is an approved scope, budget, and schedule for the project.
4) Lock in the project scope at the beginning and ensure there is no scope growth without
approval.
5) Make certain that scope is understood by all parties, including the owner.
6) Determine who developed the budget and schedule, and when they were prepared.
7) Verify that the budget and schedule are linked to the scope.
8) Organize the project around the work to be performed, rather than trying to keep people
busy.
9) Ensure there is an explicit operational work plan to guide the entire project.
10) Establish a work breakdown structure that divides the project into definable and measurable
units of work.
KEY CONCEPTS OF PROJECT MANAGEMENT
11) Establish a project organization chart that shows authority and responsibilities for all team
members.
12) Build the project staff into an effective team that works together as a unit.
13) Emphasize that quality is a must, because if it doesn’t work it is worthless, regardless of cost or
how fast it is completed.
14) Budget all tasks; any work worth doing should have compensation.
15) Develop a project schedule that provides logical sequencing of the work required to complete
the job.
16) Establish a control system that will anticipate and report deviations on a timely basis so
corrective actions can be taken.
17) Get problems out in the open with all persons involved so they can be resolved.
18) Document all work, because what may seem irrelevant at one point in time may later be very
significant.
19) Prepare a formal agreement with appropriate parties whenever there is a change in the project.
20) Keep the client informed; they pay for everything and will use the project upon completion.
END