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Project Management - Class Lecture

The document discusses various aspects of project management and construction contracts including defining project management, the stages of a project, characteristics of a project, criteria for a successful project, trends in modern management, success factors for projects, and prevalent types of construction contracts.

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Redwan Ahmed
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0% found this document useful (0 votes)
22 views

Project Management - Class Lecture

The document discusses various aspects of project management and construction contracts including defining project management, the stages of a project, characteristics of a project, criteria for a successful project, trends in modern management, success factors for projects, and prevalent types of construction contracts.

Uploaded by

Redwan Ahmed
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Project Management & Construction


Project management:Project management is the art of directing and coordinating
human and material resources throughout the life of a project by using modern
management techniques to achieve predetermined objects of scope, cost, time, and
quantity and participation satisfaction.
Project: A project is one time endeavor (চেষ্টা) to create a unique product (works,
goods, services)
Project management:

Distinct stags of project:


- Planning
- Implementation (বাস্তবায়ন)
- Co-ordinate
- Monitoring
- Completion (সম্পূ র্ণতা)
Characteristics of a project:
- Define starting & finishing time.
- Define scope.
- Restricted resources.
- Budgetary constraints(সীমাবদ্ধতার).
- Legal &constrict (সংকোচকরা) obligation.

Six criteria are essential component of a successful project-


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1)The project is completed on time


2)The final project cost is within the budget
3)The quality level anticipated have been achieved
4)The Project has no outstanding claims(দাবি) or conflict (বিরোধ)
5)The contract has maintained a professional relationship with the architect
and engineers.
6) The contractor-client relationship has been a good one

Trends(প্রবণতা) in modern management:


In the recent year, major development in management reflect the acceptance
(গ্রহণযোগ্যতা)to various degree of following elements
i) The management science and decision support approach
ii) The manager process approach.
iii) The behavioral science for human.
~resource development
iv) Sustainable compitive advantage.
Project management also involves
 Managing information
 Problem solving.
 Managing risk & resources.
 Monitoring & control.

Success factor of a project:


Factor are the things that more or less directly affect project success in time of
scope, budget, and schedule.
Success factors are:
a) Selection of right problem.
b) Selection of right solution.
c) Creation of a satisfactory plane.
d) An effective project control system.
e) Effective project execution (নির্বাহ).
f) An effective method to manage uncertainty.
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For success factor, effective project control system-


a) Resource quantity.
b) Resource behavior.
c) Resource skill.
d) Project management process.
e) Project execution tools.
f) Project changes.
Success factor of a project:
In addition to the factors that seems to influence project success directly ( Internal
success factor)
 Management
 Rewards
 Policies
 Social norms
 Variation in the process that produce project results.
Some external factors:
 Competitors.
 Suppliers.
 Client.
 Regulators.
 The physical environment.
 Other stakeholders.

Some difficulties to meet for the necessary condition for successful project
 Badweather
 Unforeseeable (হ্ঠাৎ) difficulties at vendors (বিক্রেতারা)who supply
equipment.
 Longer than expected time in meeting government requirement.
 An unrealistic schedule.
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 Difficulties in matching available operations with project needs


 Emergencies.

New theory project success-


CCPM- Critical Chain Project Management
Improve project success:
 Project completed on time all the time
 Project delivered full scope
 Project cost under budget
 Improved market position of business growth
Reduce project duration
 Projects completed in half the time (or less) of previous similar project.
 Individual project plan reduced by at least 25%.
 Multiple project durations reduced.
 Irrigation amount.
 Project changes reduced.
 Early return for commercial projects.
 Reduced payback periods for investment project.
Increased project team satisfaction:
 Reduced confusion from multitasking
 Ability to focus on one task at a time
 Reduced changes.
 Reduced rework.
 Reduced pressure from multi project managers.
 Win lose task completion (date driver task pressure) eliminated.
 Buffer reporting used by individual to decide task priority.
 Reduced insertion of new priority task.
Simplified project measurement:
 Quick and easy plan status.
 Real time project status.
 Immediate focus by buffer, chain and task provided by status.
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 Decisions defined by buffer report.


 Focus of buffer reporting on management priority decisions.
Simplified project management:
 Clear focus for project manager.
 Simplified project plans
 Whether to plan or act decided by measurement.
 Resource priority decided by measurement.
Increased project through with some resource
 Reducedresource demand confliction.
 More project completed faster for the same level of resources.
 Less delay due to resources.
 Improved project cash flow.
 Improved ROI.

Construction contract and specification


Preparation of bidding:
Bidding document for a professional construction management project must be
developed as joint of the designer owner and manager.
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A typical bid package might consist of following item-


 Invitation to bid
 Bid form
 Bid breakdown
 Construction contract
 General conditions
 Specification conditions
 Work included in contract (optional)
 Work not included in contract (optional)
 Specifications, addenda, and drawings
 Supplementary provisions
 Owner-furnished items

@ PE- Procurement Entity.


@HOPE- Head of the Procurement Entity.
@ROI- Return on investment.

Invitation to bid:
Generally the invitation to bid states the requirements and procedures for a
responsive bid and gives additional information pertaining to the contract itself.
Bid form:
The bid form is completed and signed by the bidder and states the terms of their
offer.
Bid breakdown:
The bid breakdown are filled in by the bidder, and it gives the individual price
component that sum to the total contract price component that sum to the total
contract price.

Construction contract:
A construction contract is a mutual or legally binding agreement between owner
and bidder based on policies and conditions recorded in document form. The two
parties involved are one or more owners, and one or more contractors.
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The letter of intent:


A letter of inlet is generally a temperature document authorizing the
commencement of construction in a limited fashion. Limits are placed upon the
scope of the work to be performed,

# A letter of intent must be specified in nature-


1) It should be specific in defining the scope of work.
2) It should be include other a lump sum to complete the work or “cost not be
exceed” amount including contractor’s fee.
3) It should include payment treatment.
4) It should include a date when the work contained in the letter of intent can
commence and in some cases when the letter of intent expires.
5) A statement which stipulates that the scope of the work will be credited to
scope.
6) The letter of intent of intent needs to be signed by all concerned parties.

SignedSignal
Contractor owner

Prevalent type of contraction:


The construction contract generally take one of the following from
1) Cost of the work plus fee.
2) Cost of the work plus free with a guaranteed maximum price.
3) Stipulated or lump sum.
4) Construction management.
5) Design build.
Other less frequency used contract between owner and generally contractor are-
1) Turkey.
2) Joint return.
3) Build operate transfer (BOT).
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Cost of the work plus fee


Cost of work are use infrequently but when employed required a high level of
communication between contractor and owner to avoid misunderstanding and
potential disputes (বিরোধ).
The stipulated or lump sum contract:
A stipulated or lump sum contract is most frequent used in competitively bid work,
in either the public or private sector, where a complete set of plan and specification
has been prepared by the owner design consultants.
Cost of the work plus free with a guaranteed maximum price (GMP) Contract:
The cost plus contract with a guaranteed maximum price is frequently used
because it allow the owner to gain the protection of the maximum cost of the
construction while retaining the potential for cost saving.
Construction management (CM) contracts:
The construction manager from of contract has been utilized in significantly
smaller projects and most general contractors also market themselves as
construction managers.
The joint return arrangement;
Lacking any experience with local subcontractors and suppliers and local job
condition, these larger contractor may seek out ( অনুধাবনকরা) local partners to work with
then in what is known as joint return.
There are advantages that can accrue (জমা) to both firmsif the joint venture
agreement is properly prepared, where shared responsibility and share profits can
enrich all parties.

Turkey contracts:
A project whose cost will not be paid until the contractor completes the project and
“Turns the key” over to the owner. In a turkey project the cost of money which the
contractors will be required to borrow over the life of the project in their costs.
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Build operate transfer (BOT):


The BOT concept gained popularity in last there decade of the twentieth century. It
is a process whereby the builder and developer provides architectural, engineering,
construction and financial services to contract a project.
These project are applicable only where a revenue producing facility will be
constructed since the concept to BOT is that the builder and developer will operate
the revenue producing project.
BOT type project are typically constructed in the public sector and consist of such
revenue producing project as toll roads, bridges and tunnels.

Bar Chart
Bar chart are most frequently used schedules (সময়সূ চী) abstruction because are
simple and easy to understand. Their simplicity makes them very usefulfor
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milestone and summary schedules, which are used for global control at the project
management and executive level.
Preparing bar chart:
The anticipated start and completion dates of each major activity is depicted as
horizontal bar.

Bar chart is to develop a list of activities that will be shown on the table. This list
can be extensive (ব্যাপক) and defined as required, but usually is less than 20 activity
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(items), representing a major group of activities such as super structure frame,


floor slabs, roof and so on.
Next duration of activity are estimated. On the horizontal axis select an appropriate
time scale which can be in day, weeks, month or calendar date.

CPM (Critical path method)


A CPM (critical path method) network is a model of the project execution.
There are two types of network
(i) Activity on arrow
(ii) Activity on node
Node Node

CPM is used to determine the critical path which is the shortest duration for the
project. Other useful information can be derived from a CPM network, such as
activity time, event time and float.
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For CPM
Flow time = 0
(অর্থাৎএকটিকাজশেষেএবংআরএকটিকাজশুরুরমাঝেকোনগ্যাপেথাকবেনা)
13

Start float = Latest start – Earliest start


= 4-3
=1
Finish float = Latest finish – Earliest finish
= 6-5
=1
Total float = Latest finish - Earliest start – Duration
CPM এর Math করারসময় Earliest finish time maximum ধরবও Latest finish time
minimu ধরব
Problem: 1

Critical Path 1-3-6-7


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Problem: 2
Activity Description Duration
1-2 A 2
2-3 B 3
2-7 K 1
3-4 C 1
3-9 G 4
4-5 D 2
5-6 E 3
6-12 F 3
7-8 L 2
8-5 M 2
9-10 H 2
10-11 I 3
11-12 J 1
12-13 N 3

Solution:

Critical Path 1-2-3-9-10-11-12-13


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Problem: 3

Critical Path: 1-2-3-5-6

Problem: 4
Activity Description Duration
1-2 A 4
2-3 B 2
3-4 C 1
3-5 E 3
4-6 D 1
5-6 F 2
6-7 G 1
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Solution:

Critical Path 1-2-3-5-6-7


Total float (A) = Latest finish (A) – Early start (A) – Duration
= 4-0-4
=0
Total float (E) = Latest finish (E) – Early start (E) – Duration
= 9-6-3
=0
`Free float= Early finish – Early start – Duration
Free float= Early finish – Early start – Duration

Independent float= Early finish – Latest start – Duration

Free float (B) = 6-4-2 = 0 Independent float (E) = 9-6-3 = 0


Free float (E) = 9-6-3 = 0

Activity Description Duration Total Free Independent


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float float float


1-2 A 4 0 0 0
2-3 B 2 0 0 0
3-4 C 1 3 0 0
3-5 E 3 0 0 0
4-6 D 1 3 3 0
5-6 F 2 0 0 0
6-7 G 1 0 0 0

Percent utilization of an activity


Duration
= Total available time x 100

=100 for critical


<100 for non-critical
Problem: 5
Activity Description Duration
1-2 G 4
1-3 D 5
1-4 A 10
2-5 H 12
3-5 E 9
4-6 B 2
3-6 F 20
5-7 I 7
6-7 C 10
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Critical Path 1-3-6-7


Activity Description Duration Total Free Independent
float float float
1-2 G 4 12 0 0 (4-0-4)
1-3 D 5 0 0 0 (5-0-5)
1-4 A 10 13 0 0 (10-0-10)
2-5 H 12 12 0 0
3-5 E 9 14 2 0(25-5-20)
4-6 B 2 13 13 0
3-6 F 20 0 0 0
5-7 I 7 12 12 0
6-7 C 10 0 0 0

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