1. SBM 1300 - Research Project
Suitability and Effectiveness of PMBOK and PRINCE2 Consulting
Models in Construction Projects
Nathalia Atademos de Oliveira
Mentor: Dr. Andre Smit
Asia Pacific International College
Master of Business and Project Management

2. Agenda
 Project Overview
 Research Objective
 Research Question
 Literature Review
 Project Conceptual Model
 Methodology
 Case Studies
 Summary of Analyses
 Application to the Construction Industry
 Development of New Map
 Conclusions
Nathalia Atademos de Oliveira
SBM 13002

3. Project Overview
 Project’s Background:
 Project Management profession and the need for Consulting
Services
 Project Management Models
 PMBOK®
 PRINCE2®
 Application in Diverse Industries
 Project’s Justification:
 Project’s complexity (Haughey, 2013)
 Consultants’ knowledge influenced organizations to build
successful projects, based on consistent models that are in
practice (EP, 2012, para. 21).
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SBM 1300

4. Research Objective
 To determine the suitability and the effectiveness of PRINCE2 and PMBOK, for
projects related to the construction industry.
 This was achieved by:
 Analyzing PMBOK and PRINCE2 characteristics
 Analyzing the different perspectives for mapping both of them
 Determining a new mapping for ascertain this objective
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Nathalia Atademos de Oliveira
SBM 1300

5. Research Question
 What is the effectiveness of PMBOK and PRINCE2 in the construction industry?
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Nathalia Atademos de Oliveira
SBM 1300

6. Literature Review I
 Initial Insights:
Definition of a
Project
Key Factors in Project
Management Consulting
Definition of
Effectiveness
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Nathalia Atademos de Oliveira
SBM 1300What is the effectiveness of PMBOK and PRINCE2 in the construction industry?

7. Literature Review II
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SBM 1300
 PMBOK and PRINCE2
 Both are worldwide models used in Project Management
 PMBOK: A guide containing the best practices of project management
and its tools and techniques.
 PRINCE2: is known as a methodology, including clear processes, steps
and its components.

8. Literature Review III
 Construction Industry:
 Is essential in the Australian economy and society (ABS, 2013)
 This industry itself and its activities are completely linked to manufacturing,
wholesale trade, retail trade, and finance and insurance, which are also important
parts of the Australian economy (ABS, 2013)
 It has been making majors contribution to the generation of wealth and the
welfare of the community (ABS, 2010)
 Fourth largest contributor to Gross Domestic Product (GPD) in the Australian
economy (ABS, 2010)
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Nathalia Atademos de Oliveira
SBM 1300

9. Project Conceptual Model
Effectiveness
of Project
Management
Models
PRINCE2 Components:
Combined Processes and Components
Change Control and Configuration Management
Plans
Business Case
Quality
Risk
Progress
Organization
Project Classifications:
Administrative Projects
Construction Projects
Computer Software Development Projects
Design of Plan Projects
Equipment or System Installation Projects
Event or Relocation Projects
Maintenance of Process Industries Projects
New Product Development Projects
Research Projects
PMBOK Knowledge Areas
(4th Edition) :
Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Risk Management
Communication Management
Human Resources Management
Procurement Management
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SBM 1300

10. Methodology
Nathalia Atademos de Oliveira
SBM 130010

11. First Case Study – Gap Analysis
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Nathalia Atademos de Oliveira
SBM 1300
 Max Wideman
 Owns a PM consulting company
 Worked with diverse types of project
 Was responsible for the first edition of the PMBOK guide

12. Second Case Study – Gap Analysis
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SBM 1300
 Gosh et al.
(Sam Ghosh, Danny Forrest, Thomas DiNetta, Bryan Wolfe and Danielle
Lambert)
 Master students of Engineering in Project Management, in United
States.
 Professional experience in diverse industries
 Focused on the enhancement of PMBOK through the comparison
with diverse Project Management standards, including PRINCE2

13. Third Case Study – Gap Analysis
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SBM 1300
 Jay Siegelaub
 Wrote several articles regarding to Project Management
 Worked in partnership with multinational companies
 He is a consultant and an accredited instruction of PRINCE2™ since
1998

14. Summary of Gap Analyses
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SBM 1300
PMBOK PRINCE2 GAP Analysis
Integration
Management
Change
Control and
Configuration
Management
PMBOK: - Does not cover change control in as much detail as PRINCE2 does.
- It discusses about diverse tools and techniques
PRINCE2: - Details Change Control.
Scope
Management
Plans /
Business Case
PMBOK: - Discusses about approaches, tools and techniques, and expected
outcomes for Scope, Time and Cost Management.
PRINCE2 - Does not have a specific approach to cost and time management.
Cost
Management
Time
Management
Quality
Management
Quality
Management
Quality Planning, Assurance and Control
PRINCE2: - Only mentions some techniques that can be used
PMBOK: - Explains in detail the tools and techniques that can be applied

15. Summary of Gap Analyses (continued)
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Nathalia Atademos de Oliveira
SBM 1300
PMBOK PRINCE2 GAP Analysis
Risk
Management
Risk
Management
Identification, Assessment and Response to Risks
PMBOK: - It is more complete, applying processes, tools and techniques.
Communications
Management
Progress
Management
Both models need improvement in this area
Human
Resources
Management
Organization
PMBOK: - It is more complete, discussing about people management in
detail.
PRINCE2: - Focus on stating roles and responsibilities.
Procurement
Management
Not Covered
PRINCE2: - Suggests that contracting and procurement are specialist
activities that can be managed separately using the method.
PMBOK: - Considers Procurement as part of the overall project management
process.

16. Application to the Construction Industry
Nathalia Atademos de Oliveira
SBM 130016
Key Factors
Industry needs and
difficulties
PMBOK PRINCE2
Integration
Management
Changes are very
common.
Critical changes may
cause consecutive
delays in project
schedule and increase
in cost.
Detail discussion about Tools
and techniques.
Planning and Change Control
as ongoing efforts that must
be integrated to all
knowledge areas.
Covers Change Control in detail.
Has a product-based framework
that gives a logical sequence to the
project's work.
Enhancing PMBOK:
- Approach to make decisions
related to change
- System for tracking project
Issues

17. Application to the Construction Industry
(continued)
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SBM 1300
Key Factors
Industry needs and
difficulties
PMBOK PRINCE2
Scope
Management
Extremely important
factor. Processes are
well known.
Its is designed before
the startup of the
project.
Describes everything
that is expected of the
contractor.
Makes use of tools and
techniques to deliver the
expected result.
Gives authority to
project manager to apply
organizational resources
to project activities.
Business Case describes all details
about the project.
Can complement PMBOK by:
- Controlling scope change.
- Defining the reason for the
project and its validation.

18. Application to the Construction Industry
(continued)
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SBM 1300
Key Factors Industry needs and difficulties PMBOK PRINCE2
Time
Management
Moderate time pressure.
Expensive factor.
When a specific delay occurs, it
requires the early attention and
timely action of the owner or its
representative.
Tools and techniques,
and expected outcomes
are discussed in detail.
PRINCE2 does not have a
specific approach to time
management.
Cost
Management
Very important variable.
Should be estimated in early
stage.
It is common to have an
allowance.
Tools and techniques,
and expected outcomes
are discussed in detail.
Does not have a specific
approach to cost
management.

19. Application to the Construction Industry
(continued)
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SBM 1300
Key Factors
Industry needs and
difficulties
PMBOK PRINCE2
Quality
Management
Quality assurance will
ensure that construction
meets all contract
requirements.
When Quality is affected:
- Project can be
delayed;
- Can cause re-work;
- Can increase cost.
Discusses about Quality
Planning, Assurance and
Control.
Tools and techniques are
discussed in detail.
Discusses about Quality Planning,
Assurance and Control.
Only mentions the techniques that
can be used.
Can enhance PMBOK by:
- Providing clear guidance for
achieving quality objectives

20. Application to the Construction Industry
(continued)
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SBM 1300
Key Factors
Industry needs and
difficulties
PMBOK PRINCE2
Risk
Management
Generally, it is reasonably
small from the perspective
of the owner.
Owners and contractors
have different
perspectives.
It is more complete than
PRINCE2.
Discusses about the
identification, assessment
and response to risks.
Discusses about the identification,
assessment and response to risks.
Risk Log: document that provides
a source for the identification of
all project risks, their analysis
and status.
Communications
Management
Strong interaction
between stakeholders on
the demand side and on
the supply side.
Needs a clear chain of
communication.
Needs improvement in the
methodology to apply
tools and techniques.
Can improve the tools and
techniques discussed in PMBOK
by:
- Comparing actual results with
baseline

21. Application to the Construction Industry
(continued)
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SBM 1300
Key Factors
Industry needs and
difficulties
PMBOK PRINCE2
Human
Resources
Management
Have to be extremely
planned and organized.
Leadership is usually very
experienced.
It is more complete than
PRINCE2.
Discuss about people
management in detail.
PRINCE2 states clear roles and
responsibilities.
Procurement
Management
Often use contractors and
subcontractors, which is
an opportunity to
transfer risks.
Focus on the buyer’s
perspective.
Discusses about the processes
necessary to purchase or
acquire products, services, or
results needed from outside
the project team.
Not covered.

22. Development of a New Map
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SBM 1300
Knowledge Areas
(Components)
PMBOK Approach PRINCE2 Approach
1 Integration Management
2 Scope Management
3 Time Management
4 Cost Management
5 Quality Management
6 Risk Management
7 Communications Management
8 Humans Resources Management
9 Procurement Management
Highly Effective, but still with space for improvement
Effective, but with space for improvement
Not Effective, but with added value
Not Effective whatsoever

23. Conclusion I
 1st Chapter:
 Described the project itself.
 2nd Chapter:
 Reviewed the current literature on project management
consulting, focusing on PRINCE2 and PMBOK.
 Highlighted the best practices of each model.
 Developed a conceptual model of the key factors to consider when
analyzing construction projects.
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SBM 1300

24. Conclusion II
 3rd Chapter:
 Reviewed three industry case studies of how PMBOK and PRINCE2
were applied in PM consulting.
 4th Chapter:
 Analyzed the knowledge areas and the components required for
managing projects in the construction industry.
 Used the GAP analyses from Chapter 3 to determine the suitability
and the effectiveness of PRINCE2 and PMBOK in projects related to
the construction industry.
 Developed a new map for the application of PMBOK knowledge
areas and PRINCE2 components.
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SBM 1300

25. Conclusion III
 PRINCE2 and PMBOK:
 Take very different approaches to project management
 Serve different purposes and are therefore not directly
comparable.
 Can be used in any type of project, but neither of them claim to
be complete.
 When analysing the suitability and the effectiveness of PRINCE2 and
PMBOK for projects related to the construction industry, it was
possible to verify that NONE OF THEM ARE ENTIRELY EFFECTIVE.
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SBM 1300

26. Conclusion IV
 PMBOK’s approach: Highly effective in the construction industry for
most of its knowledge areas. Has encompassed diverse tools and
techniques that could mitigate the difficulties of the industry.
 PRINCE2’s approach: Not effective for the majority of its
components. Focus on critical areas only. It could essentially
complement the weaknesses of PMBOK.
 Communications Management: should take other sources into
consideration.
 If these aspects were considered in standard methodologies and then
were correctly implemented and documented in projects of the
construction industry, stakeholders would possibly be more willing to
set aside the necessary funding to ensure higher chances of project
success.26
Nathalia Atademos de Oliveira
SBM 1300

27. Thank you
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SBM 1300