Topic 4Topic 4

PROJECT MANAGEMENT for CONSTRUCTION

What is a Project?What is a Project?‘A project is a temporary endeavour

undertaken to create a unique product or services’ - Source: Project Management Book of Knowledge

Temporary means that every project has a definite beginning and definite end.

Unique means that a product or services is different in some distingushing way from all other products or services.

Construction Project Construction Project Complex, and time-consuming.A project normally consist of several phases

(e.g. initial planning to project completion) Involves financial organisation, government

agencies, engineers, architects, lawyers, insurance companies, contractor and supplier.

There are major classification of construction that includes: housing, nonresidential building, heavy construction, highway, utility and industrial.

Construction project is unique – no two jobs are exactly the same

What is Project Management What is Project Management (PM)?(PM)?

PM is an application of knowledge, skills, tools and techniques to project activities to meet project requirements.

What is a Project What is a Project Manager?Manager?

the individual that responsible for the execution and completion of a project.

What is Project What is Project Management?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 objectives of scope, cost, time, quality and participation satisfaction.

Source: R. M. Wideman, "The PMBOK Report -- PMI Body of Knowledge Standard," Project Management Journal, Vol. 17, No. 3, August l986, pp. l5-24.

In other words Project Management is:

Application of knowledge, skills, tools, methodologies, and techniques in order to meet project requirements and meet or exceed stakeholder needs and expectations.

Project Management in construction encompasses a set of objectives which may be accomplished by implementing a series of operations subject to resource constraints.

There are potential conflicts between the stated objectives with regard to scope, cost, time and quality, and the constraints imposed on human material and financial resources

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Project ManagementProject Management

Successful project management means meeting all three goals (scope, time, and cost)

– and satisfying the project’s sponsor!

The Triple Constraint of Project Management

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Project ManagementProject ManagementThe Triple ConstraintEvery project is constrained in

different ways by its:◦ SCOPE goals: What will be done?◦ TIME goals: How long will it take to do it?◦ COST goals: How much should it cost?

It is the PM’s duty to balance these 3 often-competing goals.

Basic Ingredients in Project Basic Ingredients in Project ManagementManagement

Planning, organising, staffing, executing and controlling

Law, Strategic Planning, Logistic, Human Resource Management , Marketing.

Software development, Construction Engineering, Water and Sanitation Engineering

Project StakeholdersProject Stakeholders

Stakeholders are the people involved in or affected by project activities.

Stakeholders include:◦ Project sponsor◦ Project manager◦ Project team◦ Support staff◦ Customers◦ Users◦ Suppliers◦ Opponents to the project

Project Management Project Management Process Process Project are composed of processes. A ‘process’ is a series of actions bringing about result. Project processes are performed by people and

generally fall into 2 main categories:◦ Project management process◦ Product-oriented process

PM is accomplished through the use of the processes such as:◦ Initiation◦ Planning◦ Execution◦ Monitoring and Control and◦ Closeout

Links among process group Links among process group in a phase in a phase

Initiating Processes

Controlling

Processes

Closing Processes

Executing

Processes

Planning Processe

s

The Initiation ProcessThe Initiation ProcessThe purpose of initiation is to get a project

approved, or approval to go to the next phase.

Initiating is the conceptual element of project management—the basic processes that should be performed to get the project started.

This starting point is critical because those who will deliver the project, those who will use the project, and those who have a stake in the project need to reach an agreement on its initiation.

The Initiation Process The Initiation Process (cont’)(cont’)The basic processes for the initiation phase are:Selecting the projectDetermining business needsCollecting historical dataDetermining objectivesDetermining high level deliverables and estimatesDeveloping a product description Identifying the qualifications of the project

manager that would be best suited for the particular project

Determining high level resource requirementsObtaining project initiation approval.

The Initiation Process The Initiation Process (cont’)(cont’)

The Planning ProcessThe Planning ProcessThe planning phase is considered the most

important phase in project management.

Time spent up front identifying the proper needs and structure for organizing and managing a project saves countless hours of confusion and rework during the execution and control phases of the project.

Project planning defines project activities that will be performed, the products that will be produced, and describes how these activities will be accomplished and managed.

The Planning Process The Planning Process (cont’)(cont’)Project planning defines each major task,

estimates the time, resources and cost required, and provides a framework for management review and control.

Planning involves identifying and documenting scope, tasks, schedules, cost, risk, quality, and staffing needs.

The Planning Process The Planning Process (cont’)(cont’)This planning process: Identifies specific work to be performed and the goals that

define the project.

Provides documented estimates regarding schedule, resources and cost for planning, tracking, and controlling the project.

Obtains organizational commitments that are planned, documented, and agreed upon

Continues the development and documentation of project alternatives, assumptions, and constraints

Establishes a baseline of the plan from which the project will be managed.

The Planning Process The Planning Process (cont’)(cont’)The result of the project planning, the project

plan, will be an approved, comprehensive document that allows a project team to begin and complete the work necessary to achieve the project goals and objectives (product/process).

The project plan will address how the project team will manage the project elements. It will provide a high level of confidence in the organization’s ability to meet the scope, timing, cost, and quality requirements by addressing all aspects of the project.

The Planning Process The Planning Process (cont’)(cont’)The planning process will result in the

development of the subsidiary management plans which are:

Cost management planStaffing/Resource management planScope management planSchedule management planQuality management planProcurement management planCommunications management planRisk management plan Integrated change control management plan.

Execution ProcessExecution ProcessOnce a project moves into the execution

phase, the project team and all necessary resources to carry out the project should be in place and ready to perform project activities.

The project team’s and specifically the Project Manager’s focus now shifts from planning the project efforts to participating in, observing, and analysing the work being done

Execution Process (cont’)Execution Process (cont’)The execution phase is when the work activities

of the project plan are executed, resulting in the completion of the project deliverables and achievement of the project objective(s).

This phase brings together all of the project management disciplines, resulting in a product or service that will meet the project deliverable requirements and the customers need.

During this phase, elements completed in the planning phase are implemented, time is expended, and money is spent.

Execution Process (cont’)Execution Process (cont’)This phase requires the Project Manager and

project team to:◦ Conduct, coordinate and manage the ongoing work

activities

◦ Perform quality assurance activities continuously to ensure project objectives are being met or achieved

◦ Monitor identified risks for triggering events and implement containment or contingency strategies as necessary

◦ Manage change.

In short, it means coordinating and managing the project resources while executing the project plan, performing the planned project activities, and ensuring they are completed efficiently.

Execution Process (cont’)Execution Process (cont’)The execution phase is when the project’s

deliverables are produced and the objectives are met.

This phase entails the completion of the work activities, the expenditure of resources, and the application of the quality assurance processes to ensure that the end product(s) is viable and meets customer requirements.

The focus of the Project Manager and the project team is on the day-to-day management of the overall effort.

Controlling ProcessControlling ProcessControl is a formal process in project

management.

Project Control compare actual performance with planned performance and taking corrective action to yield the desired outcome when significant differences exists.

Controlling Process (cont’)Controlling Process (cont’)By monitoring and measuring progress

regularly, identifying variances from plan, and taking corrective action when necessary, project control ensures that project objectives are met.

The variances are determined by comparing the actual performance metrics from the execution phase against the baseline metrics assigned during the planning phase.

Controlling also includes taking preventive action in anticipation of possible problems.

Controlling Process (cont’)Controlling Process (cont’)Project control is important because a

project is unlikely to be considered successful by stakeholders if it is not controlled effectively.

Project Closeout ProcessProject Closeout ProcessThe last major phase of a project’s life cycle

is the project closeout phase.

Project closeout is performed after all defined project objectives have been met and the customer has formally accepted the project’s deliverables and end product or, in some instances, when a project has been cancelled or terminated early.

organizations can benefit from lessons learned and information compiled at closure.

Project Closeout Process Project Closeout Process (cont’)(cont’)Some of the key elements to project closeout are:

Completion and closeout of any contractual agreements with suppliers or providers

Formalising customer acceptanceCloseout of any financial matters Preparation of the project’s final performance

reportConducting a project reviewDocumenting lessons learnedCompleting, collecting and archiving project

recordsCelebrating project success.

The functions of construction The functions of construction project managementproject management

1. Specification of project objectives and plans including of scope, budgeting, scheduling, setting performance requirements, and selecting project participants.

2. Maximization of efficient resource utilization through procurement of labour, materials and equipment according to the prescribed schedule and plan.

3. Implementation of various operations through proper coordination and control of planning, design, estimating, contracting and construction in the entire process.

4. Development of effective communications and mechanisms for resolving conflicts among the various participants.

Basis knowledge of Project Manger Basis knowledge of Project Manger requires by Project Management requires by Project Management Institute (PMI)Institute (PMI)1. Project integration management to ensure that

the various project elements are effectively coordinated.

2. Project scope management to ensure that all the work required (and only the required work) is included.

3. Project time management to provide an effective project schedule.

4. Project cost management to identify needed resources and maintain budget control.

Basis knowledge of Project Basis knowledge of Project Manger (cont’)Manger (cont’)

5. Project quality management to ensure functional requirements are met.

6. Project human resource management to development and effectively employ project personnel.

7. Project communications management to ensure effective internal and external communications.

8. Project risk management to analyse and mitigate potential risks.

9. Project procurement management to obtain necessary resources from external sources.

Overview of Project Management Knowledge Areas and Project Management Process 

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Project ManagementProject ManagementProject Management Framework

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9 Project Management Knowledge 9 Project Management Knowledge Areas Areas

Describe the key competencies that PMs must develop◦ 4 core knowledge areas lead to specific project

objectives (scope, time, cost, and quality).

◦ 4 facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management).

◦ 1 integrating knowledge area (project integration management) affects and is affected by all of the other knowledge areas.

◦ All knowledge areas are important!

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Relationships Among Process Groups and Knowledge Relationships Among Process Groups and Knowledge AreasAreas

PMBOK® Guide 2004, p. 69

Project CommunicationProject Communication

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ReferencesReferencesProject Management Body of Knowledge,

Association of Project Management, 2006.