Construction Project Management 1

Satyabhama University
Department of Architecture
 TOPICS
PROJECT MANAGEMENT – LIFEFOR
CYCLEDISCUSSION

 Introduction
 Traditional Management Vs Project Management
 Project Management Functions
 Project Phases / Project Lifecycle
 Project Management Triangle or Triple constraints

2
 PROJECT MANAGEMENT – LIFE CYCLE

INTRODUCTION TO
PROJECT MANAGEMENT

3
 WHAT IS PROJECT MANAGEMENT

“Project management is the application of processes, methods,

knowledge, skills and experience to achieve the project
objectives”

“Project management is the application of knowledge, skills and

techniques to execute projects effectively and efficiently. It’s a
strategic competency for organizations, enabling them to tie
project results to business goals “

4
 CONSTRUCTION INDUSTRY

 Man has indulged in some form of construction activities from dawn of

civilization

 Even during ancient times man created architectural marvels like Egypt
Pyramid, Great Wall of china, Angorwat temples and so on.

 In present world, technical break through have revolutionized construction

industry.

 Modern constructions include high rise buildings, dams, irrigation networks,

power plants, Industrial plants, infrastructure facilities like roads, bridges,
railways, airports and seaports etc.

 Market of construction business is both domestic as well global

5
 CONSTRUCTION- DOMESTIC MARKET

 Construction is everlasting activity across the globe

 Industry is profitable like any other business and fluctuates according to the law
of demand and supply

 Construction activities constitutes 6‐9% of GDP (gross domestic product). More

than half of fixed capital formation as infrastructure and public utilities capital
works

 Construction activities contributes to the economic growth of the country

 Growth rate of construction outstrips that of population and GDP

 Construction generates more employment than any other sector

6
 CONSTRUCTION- INTERNATIONAL MARKET

 During 80’s middle east accounted for over 1/3 of global construction market

 Asia and Africa held only 20% of global construction market

 Developed countries like USA, German, Russia have dominated in

construction of power and process plants which requires high degree of
sophisticated technology.

 Developing countries like south korea and India have concentrated more on
the repetitive and routine types of construction works.

7
 CONSTRUCTION- PARTICIPANTS / STAKEHOLDERS

 Construction Business Promoters – Govt./Public/Private

 Project / Construction management consultant firms
 Architect – Engineering associates
 Construction manpower and training agencies
 Construction Materials developing, manufacturing, trading firms
 Construction Plant and Machineries
 Banking and Finance Institutions
 Risk Insurances and Legal services companies
 Construction quality assurance, research and development companies
 Contractors and Contracting firms

8
 PROJECT TEAM STRUCTURE

CLIENT

PMC
ARCHITECT PMC

OTHER LIASIONING
CONSULTANTS VENDORS SUPPLIERS
CONSULTANTS

MONITORING & CONTROL COORDINATION APPOINTMENT

REPORTING

9
 CONSTRUCTION PROJECTS

 Major construction works are time bound and employ huge resources of
men, material and machineries and money.
 They involve heavy investments and require high level of technology and
need an effective management of resources
 Construction project refers to high value, time bound, special construction
mission with pre‐determined performance objectives.

10
 CONSTRUCTION PROJECTS – ROLE OF PM

 Project Manager aims to achieve the project mission by

Managing Time and Progress
Cost and Cash flow
Quality and Performance
Organization behavior
With Organization resources
By Planning resources
Scheduling resources
Organizing resources
Directing resources
Monitoring resources
Controlling resources
Within Time / Cost / Quality/ Environment constraints

11
 PROJECT CATEGORIES
 Building Construction – building business serves mankind by providing shelter, services
for habitation etc. like residential, commercial, educational, hospital, hotel and
recreational buildings. Designed by architects / engineers

 Infrastructure Construction – Capital intensive and heavy equipment oriented works

which requires large quantities of materials like earth, steel and concrete like dams,
canals, highways, airports, railways and bridges etc.
Designed by specialist engineering firms financed by govt./public sector

 Industrial Construction – construction of manufacturing, processing and industrial plants

like steel mills, petro refineries, factories etc.

 Special purpose projects – Environmental works, Emergencies, remedial works and

complex key operations

 Project classifications –
• Long , Medium, Short and special short term projects
• Mega, Large, Medium and small value projects

12
 PROJECT OBJECTIVES

6 Factors determines the outcome of the project

1. Size of project ‐ number of tasks to be executed / quantities of work

2. Complexity of project – variety in the nature of task
3. Quality – accomplishing the task with standard specifications
4. Productivity ‐ Planned effort for production / actual effort employed per unit
5. Completion time – speed with which the project to be executed
6. Cost – Expenditure which client has agreed

13
 PROJECT OBJECTIVES

 In project pre‐determined productivity standard, specified completion time

and construction cost become the project objectives

 Planning and controlling the project objectives of time, cost and setting up
of resource productivity standards to achieve the objectives are the
functions of project management

 The planning and controlling methodology employed is called

“ Project Management Techniques ”

14
 PROJECT OBJECTIVES

15
 PROJECT MANAGEMENT – LIFE CYCLE

PROJECT MGMT VS
TRADITIONAL MGMT

16
 TRADITIONAL
PROJECT ORGANISATIONAL
MANAGEMENT – LIFE CYCLE BEHAVIOUR

 Traditional organization structured as pyramidal hierarchy with vertical superior

– subordinate relationships departmentation along functional, product and
geographical boundaries.

 Authority flows from highest level to the lowest level. Formal communications
similarly directed downwards along the chain of command

 Traditional functional organizations are very efficient and suited for stable
environment (uniform product in unchanging market)

 Tend to be rigid and unsuitable for performing work that is unique or requires
adaptation to unstable and dynamic environments

17
 CHARACTERISTICS
PROJECT MANAGEMENT – LIFE CYCLE OF PROJECTS
 Involving in single definable purpose or end item. Purpose is specified in terms of cost, schedule,
and performance requirements
 Unique. A project requires doing things differently than before and never repeated.
 A temporary activity. Undertaken to accomplish a goal within specified time.
 Utilizing skills and talents from multiple professions and organizations
 Requires multiple skills that rely on task interdependencies which may introduce new and unique
problems
 Task and skill requirements change from project to project
 Possibly unfamiliar. Encompass new ideas, approaches or technology
 Failure of the project jeopardize the organization or its goal
 Process of working to achieve a goal. A project passes through several distinct phases, tasks,
people, organizations and resources change as the project moves from one phase to the next.
 Distinguish project nature makes it necessary to employ a kind of management suitable – thus the
emergence of PROJECT MANAGMENT

18
 CHARACTERISTICS
PROJECT MANAGEMENT – LIFEOF PROJECT
CYCLE MANAGEMENT
 A single person –Project Manager heads the project organization and operates independent of
normal chain of command.
 PM is focal point for bringing together all efforts towards single objective
 Project requires variety of skills and resources. Actual work will be performed by different
functional area or by outside
 PM is responsible for integrating people from different functional discipline
 PM directly controls the functional departments from start till end of activities
 Project focus on delivering a particular product or service at certain time and cost to the
satisfaction of technical requirements
 Decision making, accountability, outcomes and rewards are shared among members of project
team and functional units
 Project organization is temporary in nature. As the project ends the project organization is de-
banded and assigned to a new project
 Project Management sets numerous other support functions into motion such as personnel
evaluation, accounting, procurement and information systems

19
 CHARACTERISTICS
PROJECT MANAGEMENT – LIFEOF PROJECT
CYCLE MANAGEMENT
 Projects involve the efforts of different units from within and outside the organization, depending
vertical chain of command for authority and communication is time consuming and causes frequent
disruption and delay of work. In traditional organization the formal line of communication is often
bypassed to expedite the work.
 The virtue of these informal lines is recognized and formalized through the creation of horizontal
hierarchy that augments the vertical hierarchy
 Hybrid org. form enables personnel in different work units to form highly integrated project groups.
 Traditional organizations have rigid, unchanging structures and cannot quickly adjust to change.
 Given the temporary nature of the project, an organization that works on a stream of projects must be
flexible and able to alter its structure and resources to meet the shifting requirements.
 Project needs a support of many departments where no one is responsible for project goals. Project
manager is assigned responsibility.
 Project goals have more emphasis than functional goal
 PMs are often depend upon people who are not “under” them but who are “assigned” under them
from other part of organization.
 Task of PROJECT MANAGER is complicated and diverse than other type of managers
20
 PROJECT MANAGEMENT – LIFE CYCLE

PROJECT MANAGEMENT
FUNCTIONS

21
 PROJECT MANAGEMENT
PROJECT MANAGEMENT – LIFE CYCLE FUNCTIONS
 Traditionally management functions are grouped under 5 categories
 Planning
 Organizing
 Staffing
 Directing or Leading
 Controlling
 Function of co-ordination is common to all these functions
 These functional area with some adjustments on account of special characteristics of
construction project, are equally applicable in project management.

22
 PROJECT
PROJECT MANAGEMENT
MANAGEMENT – LIFE CYCLEFUNCTIONS - PLANNING

 Planning involves deciding in advance what is to be done. Schedule depicts when the
planned activities to be carried out.
 Planning and scheduling involves following activities
 Crystallizing objectives
 Controlling and Synthesizing information
 Developing alternative course of action within specified constraints
 Comparing alternatives in terms of objectives feasibility and consequences
 Selecting and Scheduling optimum course of action.
 Establishing policies, procedures, methods, schedules, programs, systems, standards
and budgets for accomplishing project objectives.

23
 PROJECT
PROJECT MANAGEMENT
MANAGEMENT – LIFE CYCLEFUNCTIONS - ORGANIZING

 Organizing is the process of establishing a structural relationship among functions of

people, so as to formulate an effective machinery for streamlining the achievement of
assigned objectives.
 Organizing involves following main tasks
 Dividing the work into component activities
 Designing job structure
 Defining performance targets and responsibilities
 Allocating resources
 Delegating authority commensurate with responsibility
 Establishing structural relationship to secure co-ordination.

24
 PROJECT
PROJECT MANAGEMENT
MANAGEMENT – LIFE CYCLE FUNCTIONS – PROCURING

 It implies managing and keeping manned, the positions created by organization structure
and providing them the right quality resources at the right time. These resources include
people, materials, machinery and money.
 Connected project management tasks are:-
 Prepare resource procurement schedule
 Developing specifications for required resources
 Deciding appropriate sources of procurement
 Budgeting resources and arranging approvals and purchases
 Preventing waste during resource holding at site
 Supplying on time required quality and quantity of resources

25
 PROJECT
PROJECT MANAGEMENT
MANAGEMENT – LIFE CYCLE FUNCTIONS – DIRECTING

 It involves influencing people so as to enable them to contribute to the organizational

goals efficiently and effectively.

 Directing implies the following tasks

 Providing effective leadership
 Motivating participant’s behavior
 Communicating instructions and orders
 Providing a suitable climate for subordinates development

26
 PROJECT
PROJECT MANAGEMENT
MANAGEMENT FUNCTIONS
– LIFE CYCLE – CONTROLLING

 Controlling involves the monitoring or performance and applying corrective measures in

case of deviations from the plan.
 The process of control measures shall be sub divided as follows:-
 Specifying the factors to be controlled
 Stating the methods of measuring control factors
 Evolving systems for generating performance data
 Monitoring data received and formulating corrective options
 Applying corrective measures to put a plan on the scheduled path
 Re-planning when necessary.

27
 PROJECT MANAGEMENT – LIFE CYCLE

PROJECT PHASES
PROJECT LIFECYCLE

28
 PROJECT
PROJECT MANAGEMENT DEVELOPMENT
– LIFE CYCLE PHASES

29
 PROJECT
PROJECT MANAGEMENT LIFECYCLE
– LIFE CYCLE

Stage 1
Pre-design / Strategy
Client Brief/ Preplanning / overall scoping
Commercial Closure
CTQs
Occupation
Agree Schedule/Base Specs
De-snagging

Commssn’g Project initiation/ set

up process plan

Stage 4 Stage 2
Post Const
Project Pre-construction
Team
EHS/compliances
Project Plan
Coordination

Communication Design Development/ Value

Engg
QS Control Tendering

Scheduling Bid Award

Stage 3
Construction

30
 OVERALL PROJECT MANAGEMENT LIFE CYCLE

Expected cash
flow Cost Performance
baseline
Efforts of Core
Team
Cumulative Cash
Flow
Process Life
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Project Life

Performance Baseline
Pre-Design Design Tendering & Construction Close-out
Procurement
• Preparation of Project Brief • Design Review • Pre-Qualification • Site Organization
• Project Budget • Design Process Mgmt. • Bid Documentation • Construction Management • Punch-Listing
• Appointment of Consultants • Document Control Imp. Process • Value Engineering • Commissioning Management
INFRASTRUCTURE

• Bid Process
BUILDING&

• Project Procedures • Project Cost Plan • Submittal Process • Closeout Training Programs
• Project Planning Strategy • Pre-Construction Cost Mgmt. • Contract Award • Site Logistics • O&M Manuals and “As Built”
• Master Schedule • Interface with Authorities • Contract Documentation • Construction Cost Mgmt Drawings Collations
• Value Engineering • Contract Documentation • Start-up Management • Quality Assurance • Financial close out
• Constructability Review • Construction Scheduling • Performance Measurement • Admin close out
• Value Engineering • Correspondence Documentation• Billing Administration
• Schedule Management • Value Engineering • Change Order Management
• Pre-Construction Works • Claims Management
• Document Review
• Procurement Strategy

• P&ID Review • Bid Process Assistance • Process Equipment Logistics • Integration, fine tuning, Problem
• Preparation of Process Brief
• Process Implementation Mangt. Solving, Infrastructure support
PROCESS

• Appointment of Consultants • Process design Coordination • Documentation Support

• Pre-Construction Works • Coordination & Integration with • Commissioning Management
• Project Planning Strategy
construction infrastructures
• Master Schedule

31
 PROJECT
PROJECT MANAGEMENT LIFECYCLE
– LIFE CYCLE

 Project has predetermined duration with definite beginning and identifiable end.
 Starting point – When the idea was conceived by the client
 End point – When the mission is accomplished
 Time span between the start and completion of a project represents the project life
cycle which varies from few months to few years
 After conception there is a gradual build-up in the use of resources

32
 PROJECT MANAGEMENT – LIFE CYCLE

PROJECT CONSTRAINTS

33
 PROJECT
PROJECT MANAGEMENT
MANAGEMENT – LIFE CYCLE - TRIPLE CONSTRAINTS

 All the projects are traditionally carried out under

various constraints like time, cost and scope
 These important factors “triple constraints” are often
represented as triangle
 Each constraints forms the vertices with quality as the
central theme.
 Project must be delivered within cost
 Project must be delivered on time
 Project must meet the agreed scope – no more,
no less
 Project must also meet customer quality
requirements.

34
 PROJECT MANAGEMENT
PROJECT MANAGEMENT – LIFE CYCLE - DIAMOND

 Triangle has given away as project management

diamond.
 Cost, time, scope and quality are four vertices with
customer expectation as central theme.
 No two customer expectations are same, so one
should ask questions about customer requirements
 Cost: All projects have finite budget; If you reduce
the project cost you will either have to reduce its
scope or increase its time.
 Time (schedule): Time is Money. When you reduce
the project’s time, you will either have to increase its
cost or reduce its scope.
 Scope: Many projects fail in this constraint because
scope of project is either not fully defined or
understood from start. When you increase a project
scope, you will either have to increase its cost or
time.
35
 THANK YOU

36