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PROJECT MANAGEMENT OFFICE (PMO)
SETTING UP AND MANAGEMENT
© www.asia-masters.com
Project Management
General Review
© www.asia-masters.com
What is Project Management
• Project Management is the application of skills,
knowledge, tools and techniques to meet the
...
Triple Contraint
Quality
Scope
Time
Cost
© www.asia-masters.com
Triple Contraint
• Increased Scope = increased time + increased cost
• Tight Time = increased costs + reduced scope
• Tigh...
NATURE OF THE
CONSTRUCTION INDUSTRY
Like Manufacturing industry – Involves the production of a
physical product
Like Servi...
CONSTRUCTION INDUSTRY IS
HIGHLY INCENTIVE ORIENTED
• Advances tend to develop from
innovations or “better ideas”
• Cannot ...
Owner wants to achieve best value for their
investment
Contractors desire to bid low enough to win but
high enough to real...
Owner wants to achieve best value for their
investment
Contractors desire to bid low enough to win but
high enough to real...
• Know Your Scope of Works
• Understand Your Contractual
Obligations
• Plan Activities in Detail
• Resolve Problems Quickl...
Introduction
• The PMBOK is an inclusive term that describes the sum of
knowledge
• within the profession of project manag...
The Project Management Context
•Project Phases and Project Life Cycle
• Each project is unique enterprise
• Phases can inv...
Project Life Cycle
Initiation Phase Definition Phase Planning Phase
Implementation
Phase
Deployment
Phase
Closing Phase
© ...
Initiation Phase
• Define the need
• Return on Investment Analysis
• Make or Buy Decision
• Budget Development
© www.asia-...
Definition Phase
• Determine goals, scope and project constraints
• Identify members and their roles
• Define communicatio...
Planning Phase
• Resource Planning
• Work Breakdown Structure
• Project Schedule Development
• Quality Assurance Plan
© ww...
Work Breakdown Structure
• For defining and organizing the total scope
of a project
• First two levels - define a set of p...
Implementation Phase
• Execute project plan and accomplish project goals
• Training Plan
• System Build
• Quality Assuranc...
Deployment Phase
• User Training
• Production Review
• Start Using
© www.asia-masters.com
Closing Phase
• Contractual Closeout
• Post Production Transition
• Lessons Learned
© www.asia-masters.com
PMBOK 21/15
The Project Management Processes (I)
• Process Groups:
• Initiating processes – recognize when project or phase should beg...
The Project Management Knowledge
Areas
• Project Integration Management
• Ensure that various elements of the project are ...
• Project Cost Management
• Ensure that the project is complete within the approved budget
• Processes: Resource Planning,...
The Project Management Knowledge
Areas (II)
• Project Communication Management
• Ensure timely and appropriate generation,...
The Project Management Knowledge
Areas (II)
• Project Procurement Management
• Acquire goods and services from outside the...
• Finally, project managers who are familiar with PMBOK can
custom tailor their project management process to best fit the...
– Project Management services for all project phases should be
provided through well established procedures/processes
– Pr...
PlanPlan
Monitor &
Control
Monitor &
Control
Close OutClose Out
ImplementImplement
Project Management Approach
InitiateIni...
Major Stakeholders
Major
Stakeholders
Funding Agencies
Authorities
Design
ConsultantsSpecialized
Consultants
Construction
...
Client
Project
Manager
Consultant
Quantity
Surveyor (CQS)
Supervision
Consultants
Contractors
Design Consultants
Funding A...
ma
e
Engineer
Technical
Te
d
Construction
Manager
Packag
ct Control Bo
a
r
ect Director
Consultants’ Local
Office
Proje
oj...
Warehouse
Dept.
Services
Dept.
Admin.
Dept.
Accountant
Cashie
r
nt Manager
Surveyor
Manager
Site
Surveyor(s)
Project Area ...
PM scope can cover:
Project Initiation & Studies
Period
Design Period
Tender & Contracting Period
Construction Period
Defe...
Manage the Construction
© www.asia-masters.com
LIFE CYCLE Construction
Management
Seven Phases
Concept and Feasibility Studies
Preliminary Engineering and Design
Detaile...
1. Concept and Feasibility Studies
Forecast Future Demand
Location
Availability of Resources
Accessibility to transportati...
2. Preliminary Engineering and Design
Architectural concepts
Evaluation of technological process alternatives
Size and cap...
3. Detailed Engineering and Design
Design of Architectural Elements
Design of Structural Elements
Site Investigation
Found...
3. Detailed Engineering and Design
Design of Architectural Elements
Design of Structural Elements
Site Investigation
Found...
4. Procurement
Services
Equipment
Materials
© www.asia-masters.com
Services
Equipment
Materials
Lump Sum Contract
Cost Plus Fee Contract
Negotiated Contract
4. Procurement
© www.asia-master...
5. Construction
Process whereby the Designer’s Plans and
Specifications are converted into Physical
Structures and Facilit...
6. Start-up and
Implementation
Testing of Components
Warranty Period
© www.asia-masters.com
7. Operation and
Utilization
Regular Maintenance of
Facilities
© www.asia-masters.com
Architect
Interior Designer
Landscape Architect
Civil Engineer
Environmental Engineer
Electrical Engineer
Mechanical Engin...
General Contractor
Land Surveyor
Formwork Carpenters
Steel Fabricators
Concreters
Bricklayers
Plant and Equipment Operator...
Construction Contracts
American Institute of Architects
Documents
A101 Standard Form of Agreement between Owner
and Contra...
Elements of a Construction Contract
ARTICLES
Contract Documents
Architect
Owner
Contractor
Subcontractors
Work by Owner or...
ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
General Contractor
ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
General Contractor
Subcontractor Subcontractor Subcontractor
© www.a...
ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
General Contractor
Subcontractor Subcontractor Subcontractor
2nd Tie...
ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
General Contractor
Subcontractor Subcontractor Subcontractor
2nd Tie...
ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
Specialists General Contractor
Subcontractor Subcontractor Subcontra...
ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
Specialists Construction Manager
Subcontractor Subcontractor Subcont...
ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
Specialists Construction Manager
General Contractor
Subcontractor Su...
ORGANIZATIONAL RELATIONSHIPS
Owner
Architech/Engineer Design Builder
Specialists
Subcontractor Subcontractor Subcontractor...
ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
Specialists
Subcontractor Subcontractor Subcontractor
2nd Tier Subco...
ORGANIZATIONAL RELATIONSHIPS
Beneficiary Owner Performance Bond
Principal General Contractor Surety
Subcontractor Subcontr...
ORGANIZATIONAL RELATIONSHIPS
Beneficiary Owner Payment Bond
Principal General Contractor Surety
Subcontractor Subcontracto...
INSURANCE
Requirements under AIA
A201Contract Documents
Contractor’s Liability Insurance
Owner’s Liability Insurance
Prope...
OWNERS RESPONSIBILITY
Make Financial Arrangements to fulfill his
obligations
Furnish Accurate Contract Specifications and
...
Architect’s Responsibility
Architect is the Owner’s Representative
Architect is the Administrator of the Contract
Visit si...
Contractor’s Responsibility
Review Contract documents for Errors and
Inconsistencies
Supervise and Co-ordinate all Constru...
Handling Disputes
Contract is signed between Owner and Contractor
Architect acts as Interpreter of the Contract between Ow...
II. Contract/Construction Management
Stage 1: CONSTRUCTION PERIOD
Stage 2: DEFECTS LIABILITY PERIOD (DLP)
© www.asia-maste...
Activity 1
Organization
and
Mobilization
• Insurance Policies
• Performance Security
• Advance Payment Guarantee
• Notice ...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
• Monitoring Progress
• Evaluating Performance
• ...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning
and Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
...
Activity 13
Inspection of
Works
• Inspect and Verify that the Outstanding Works have been Satisfactorily Completed
• Remed...
Activity 13
Inspection of
Works
Activity 14
Defects Liability
Certificate
• Issuance of Defects Liability Certificate
II. ...
Activity 13
Inspection
of Works
Activity 14
Defects Liability
Certificate
Activity 15
Final Certificate
and Final Report
•...
III. PROJECT CONTROLS
Scope
- Continuous monitoring of actual project performance (Time, Cost,
Quality).
- Assessing perfo...
Project Controls Time & Cost
- Review time schedule/cash-flow estimate.
- Review material submittals/shop drawings schedul...
Project Controls
Time & Cost - BENEFITS
Project Controls of the project schedule will enable:
Baseline
– Identifying Proje...
PLANNING & SCHEDULING
-Critical Path Method (CPM)
-Critical Path Activities
-Logical Relationships
-Total Float (TF)
-Free...
REPORTS
Resources - Histograms
PLANNING & SCHEDULING
SCHEDULE COMPRESSION
• Shortening the Project Schedule duration without reducing the project scope w...
Progress Monitoring & Control
Baseline Vs. Updated Schedule
ESSENTIAL FACTORS
Construction Contract Documents
to specify clearly the requirements
for the construction schedule:
– Cat...
Project Calendars
A calendar of working days or shifts that establishes those dates on which activities
are worked, and no...
Progress Reporting
Cost Control
• Review and process interim payments
applications
• Monitor quantities and variation
orders
• Monitor cash f...
Report
Cost (Value)
Histogram and S – Curve
Earned Value
Specific technique for measuring performance of work based on activities’ costs
BCWS: Budgeted cost of work s...
Planned Value
Earned Value
CV
BCWS
ACWP
SV
BCWP
(BCWS)
(BCWP)
(ACWP)
© www.asia-masters.com
Variation Order - Form
Quality Control
Quality is controlled through the following:
- Timely inspections and testing of works, materials and prod...
Submittal for approval of materials - Form
Request for Inspection - Form
QA/QC Auditing
• Oversee QA/QC implementation
• Oversee inspection/ testing process
• Issue periodic audit reports
© www.a...
Document Control
Document Control in construction projects is the management
of contract documents and the incoming and ou...
Document Control
Develop/Implement/Maintain Document Control system
to cover:
- Contract Documents
- Correspondence/Minute...
Document Control
Primavera Expedition
Global Report
Project Documentation
- A referencing system for all project documents is
necessary to achieve proper document control and...
XXXXX 001-W 001 1 of 1
Zone No. or Building No.
Discipline (Water Supply)
Serial No. (001)
Project Number X of Y
Referenci...
The End
© www.asia-masters.com
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PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Training Slides of PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT, discussing the importance of Project Management.
Some Key-Points:
- The Project Management Context
- Project Life Cycle
- Work Breakdown Structure

For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com

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PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

  1. 1. PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT © www.asia-masters.com
  2. 2. Project Management General Review © www.asia-masters.com
  3. 3. What is Project Management • Project Management is the application of skills, knowledge, tools and techniques to meet the needs and expectations of stakeholders for a project. • The purpose of project management is prediction and prevention, NOT recognition and reaction © www.asia-masters.com
  4. 4. Triple Contraint Quality Scope Time Cost © www.asia-masters.com
  5. 5. Triple Contraint • Increased Scope = increased time + increased cost • Tight Time = increased costs + reduced scope • Tight Budget = increased time + reduced scope. © www.asia-masters.com
  6. 6. NATURE OF THE CONSTRUCTION INDUSTRY Like Manufacturing industry – Involves the production of a physical product Like Service industry – Does not accumulate large amount of capital – Many small businesses Success or failure is highly dependent on the qualities of the people rather than Technologies protected by patent or Availability of capital facilities © www.asia-masters.com
  7. 7. CONSTRUCTION INDUSTRY IS HIGHLY INCENTIVE ORIENTED • Advances tend to develop from innovations or “better ideas” • Cannot be protected by laws of secrecy or patents • Ideas disseminate quickly • Benefit Competitors • Lack incentive for investment for R&D © www.asia-masters.com
  8. 8. Owner wants to achieve best value for their investment Contractors desire to bid low enough to win but high enough to realize profit on investment Workers hope to achieve better living standards and working conditions INTEREST GROUPS © www.asia-masters.com
  9. 9. Owner wants to achieve best value for their investment Contractors desire to bid low enough to win but high enough to realize profit on investment Workers hope to achieve better living standards and working conditions Architect and Engineers are not directly associated with the above groups Professional achievement more attractive INTEREST GROUPS © www.asia-masters.com
  10. 10. • Know Your Scope of Works • Understand Your Contractual Obligations • Plan Activities in Detail • Resolve Problems Quickly • Manage Subcontractors • Manage Cash Flow Project Management
  11. 11. Introduction • The PMBOK is an inclusive term that describes the sum of knowledge • within the profession of project management • PMBOK is applied and advanced by both practitioners and academics • PMBOK can be and is being used for projects in various fields of professions • including Software engineering PMP As Construction Management Methodology © www.asia-masters.com
  12. 12. The Project Management Context •Project Phases and Project Life Cycle • Each project is unique enterprise • Phases can involve a degree of uncertainty • Each project phase is marked by completion of one or more deliverables • A deliverable is a tangible, verifiable work product • The project life cycle serves to define the beginning and the end of a project •Project Stakeholders • Are individuals and organizations who are actively involved in the project, • Whose interests can have positive or negative influence on project execution and project completion. (Project manager, Customer, Performing organization, Sponsor) © www.asia-masters.com
  13. 13. Project Life Cycle Initiation Phase Definition Phase Planning Phase Implementation Phase Deployment Phase Closing Phase © www.asia-masters.com
  14. 14. Initiation Phase • Define the need • Return on Investment Analysis • Make or Buy Decision • Budget Development © www.asia-masters.com
  15. 15. Definition Phase • Determine goals, scope and project constraints • Identify members and their roles • Define communication channels, methods, frequency and content • Risk management planning © www.asia-masters.com
  16. 16. Planning Phase • Resource Planning • Work Breakdown Structure • Project Schedule Development • Quality Assurance Plan © www.asia-masters.com
  17. 17. Work Breakdown Structure • For defining and organizing the total scope of a project • First two levels - define a set of planned outcomes that collectively and exclusively represent 100% of the project scope. • Subsequent levels - represent 100% of the scope of their parent node © www.asia-masters.com
  18. 18. Implementation Phase • Execute project plan and accomplish project goals • Training Plan • System Build • Quality Assurance © www.asia-masters.com
  19. 19. Deployment Phase • User Training • Production Review • Start Using © www.asia-masters.com
  20. 20. Closing Phase • Contractual Closeout • Post Production Transition • Lessons Learned © www.asia-masters.com
  21. 21. PMBOK 21/15
  22. 22. The Project Management Processes (I) • Process Groups: • Initiating processes – recognize when project or phase should begin • Planning processes – designing and maintaining a scheme which leads to successful accomplishment of a project • Executing processes – coordinating people and resources to carry out the plan • Controlling processes – monitoring and measuring progress and taking corrective actions when necessary • Closing processes – analyzing acceptance of the project or phase and bringing it to an end Links between process groups => © www.asia-masters.com
  23. 23. The Project Management Knowledge Areas • Project Integration Management • Ensure that various elements of the project are properly coordinated and integrated • Processes: Project Plan Development, Project Plan Execution, Overall Change Control • Project Scope Management • Ensure that the project includes all the work required, • And only work required, to complete the project successfully • Processes: Initiation, Scope Planning, Scope Definition, Scope Verification, Scope Change Control • Project Time Management • Ensure timely completion of the project • Processes: Activity Definition, Activity Sequencing, Activity Duration Estimating, Schedule Development, Schedule Control 23/15© www.asia-masters.com
  24. 24. • Project Cost Management • Ensure that the project is complete within the approved budget • Processes: Resource Planning, Cost Estimating, Cost Budgeting, Cost Control • Project Quality Management • Ensure that the project will satisfy the requirements • Processes: Quality Planning, Quality Assurance, Quality Control The Project Management Knowledge Areas (I) © www.asia-masters.com
  25. 25. The Project Management Knowledge Areas (II) • Project Communication Management • Ensure timely and appropriate generation, collection, storage • And ultimate disposition of project information • Processes: Communications Planning,Information Distribution, Performance Reporting, Administrative Closure • Project Risk Management • Concerned with identifying, analyzing, and responding to project risk. • Maximizing the results of positive events • Minimizing the consequences of negative events • Processes: Risk Identification, Risk Quantification, Risk Response Development, Risk Response Control 12.05.2009. PMBOK 25/15
  26. 26. The Project Management Knowledge Areas (II) • Project Procurement Management • Acquire goods and services from outside the performing organization • Processes: Procurement Planning, Solicitation Planning, Solicitation, Source Selection, Contract Administration, Contract Close-out • Project Human Resources Management • Make the most effective use of people involved with the project • Processes: Organizational Planning, Staff Acquisition, Team Development © www.asia-masters.com
  27. 27. • Finally, project managers who are familiar with PMBOK can custom tailor their project management process to best fit their company's needs. Old saying: “To break the rules, first you have to know the rules. ” • In the long run, this means that companies will have less of a reason to outsource when projects require special treatment. © www.asia-masters.com
  28. 28. – Project Management services for all project phases should be provided through well established procedures/processes – Project Management activities span the life of projects beginning with the conceptual design phase and ending with the defects liability and occupancy phase I. Introduction © www.asia-masters.com
  29. 29. PlanPlan Monitor & Control Monitor & Control Close OutClose Out ImplementImplement Project Management Approach InitiateInitiate © www.asia-masters.com
  30. 30. Major Stakeholders Major Stakeholders Funding Agencies Authorities Design ConsultantsSpecialized Consultants Construction Contractors Facility Manager Client Supervision Consultants End Users Operators Project Manager © www.asia-masters.com
  31. 31. Client Project Manager Consultant Quantity Surveyor (CQS) Supervision Consultants Contractors Design Consultants Funding AgenciesAuthorities Expert Consultants Operators/End UsersFacility Manager Communication Chart © www.asia-masters.com
  32. 32. ma e Engineer Technical Te d Construction Manager Packag ct Control Bo a r ect Director Consultants’ Local Office Proje oj E Engineer Pr st Controllers IT Specialist Plann ng Engineers Administrative Support HS C Engineer Document Controllers Co E Manager Technica Manager Project Controls Manage r Contract Administrator QA/Q C Manager Contracts Manager HS t Manager QA/Q Client Head Office SupportHead Office Support ProjecProject Manager QA/QC Manager Contracts Manager HSE Manager Technicall Manager Project Controls Manager Contract Administrator QA/QC Engineer Document Controllers Cost Controllers IT Specialist Plannini g Engineers Administrative Support Project Manager’s Organisation Chart HSE Engineer Project Director Consultants’ Local Office Project Control Board Construction Manager Package Engineer Technical Team © www.asia-masters.com
  33. 33. Warehouse Dept. Services Dept. Admin. Dept. Accountant Cashie r nt Manager Surveyor Manager Site Surveyor(s) Project Area 2 Manager Materia Eng l ineer(s) Tech n ci ian(s) Financia Manager Documen tEngineer Planning Engineer Site Engineer(s) meC Engineer ProcureQQA/ & Doc Manager Tech n ci ian(s) Contractor’s Representative Subcontractors Subcontractors Project Area 1 Manager Project Area 1 Manager Contracting Manager Contracting Manager A .d min & Logistics Manager Admin. & Logistics Manager lP ann i ng Planning & Doc Manager Technician(s) Contractor’s Organisation Chart QA/QC Engineer Procurement Manager Surveyor Manager Site Surveyor(s) Project Area 2 Manager Material Engineer(s) Technician(s) l Financial Manager Document Engineer Planning Engineer Site Engineer(s) Warehouse Dept. Services Dept. Admin. Dept. Accountant Cashier © www.asia-masters.com
  34. 34. PM scope can cover: Project Initiation & Studies Period Design Period Tender & Contracting Period Construction Period Defects Liability Period © www.asia-masters.com
  35. 35. Manage the Construction © www.asia-masters.com
  36. 36. LIFE CYCLE Construction Management Seven Phases Concept and Feasibility Studies Preliminary Engineering and Design Detailed Engineering and Design Procurement Construction Start-up and Implementation Operation or Utilization © www.asia-masters.com
  37. 37. 1. Concept and Feasibility Studies Forecast Future Demand Location Availability of Resources Accessibility to transportation Political and Institutional Factors Sociological and Economic Impact on Community Environmental Impact Overall Technical and Economic Feasibility © www.asia-masters.com
  38. 38. 2. Preliminary Engineering and Design Architectural concepts Evaluation of technological process alternatives Size and capacity of facility Comparative economic studies Reviews by regulatory bodies for compliance Zoning regulations Building codes Licensing procedures Safety standards Environmental impact Public Hearing Funding cycles in Legislative and Executive Bodies
  39. 39. 3. Detailed Engineering and Design Design of Architectural Elements Design of Structural Elements Site Investigation Foundation Design Electrical and Mechanical Design Preparation of Specifications and Drawings Preparation of Contract Documents © www.asia-masters.com
  40. 40. 3. Detailed Engineering and Design Design of Architectural Elements Design of Structural Elements Site Investigation Foundation Design Electrical and Mechanical Design Preparation of Specifications and Drawings Preparation of Contract Documents Field Construction Methods Cost Knowledge © www.asia-masters.com
  41. 41. 4. Procurement Services Equipment Materials © www.asia-masters.com
  42. 42. Services Equipment Materials Lump Sum Contract Cost Plus Fee Contract Negotiated Contract 4. Procurement © www.asia-masters.com
  43. 43. 5. Construction Process whereby the Designer’s Plans and Specifications are converted into Physical Structures and Facilities Co-ordination of all resources to complete the project On Schedule Within Budget According to Specified Standard of Quality and Performance © www.asia-masters.com
  44. 44. 6. Start-up and Implementation Testing of Components Warranty Period © www.asia-masters.com
  45. 45. 7. Operation and Utilization Regular Maintenance of Facilities © www.asia-masters.com
  46. 46. Architect Interior Designer Landscape Architect Civil Engineer Environmental Engineer Electrical Engineer Mechanical Engineer Chemical Engineer Geologist Environmental Scientist Economist DESIGN TEAM
  47. 47. General Contractor Land Surveyor Formwork Carpenters Steel Fabricators Concreters Bricklayers Plant and Equipment Operators Specialist subcontractors Suppliers CONSTRUCTION TEAM © www.asia-masters.com
  48. 48. Construction Contracts American Institute of Architects Documents A101 Standard Form of Agreement between Owner and Contractor – Stipulated Sum A111 Standard Form of Agreement between Owner and Contractor – Cost of the Work Plus a Fee A201 General Conditions of the Contract for Construction B141 Standard form of Agreement between Owner and Architect A132 Performance Bond and Payment Bond
  49. 49. Elements of a Construction Contract ARTICLES Contract Documents Architect Owner Contractor Subcontractors Work by Owner or by Separate Contractors Time of Completion and Extension of Time Progress and Final Payments Substantial Completion Insurance Changes in the Work Uncovering and Correction of Work Termination of Contract
  50. 50. ORGANIZATIONAL RELATIONSHIPS Architech/Engineer Owner General Contractor
  51. 51. ORGANIZATIONAL RELATIONSHIPS Architech/Engineer Owner General Contractor Subcontractor Subcontractor Subcontractor © www.asia-masters.com
  52. 52. ORGANIZATIONAL RELATIONSHIPS Architech/Engineer Owner General Contractor Subcontractor Subcontractor Subcontractor 2nd Tier Subcontractor 3rd Tier Subcontractor © www.asia-masters.com
  53. 53. ORGANIZATIONAL RELATIONSHIPS Architech/Engineer Owner General Contractor Subcontractor Subcontractor Subcontractor 2nd Tier Subcontractor 3rd Tier Subcontractor Supplier © www.asia-masters.com
  54. 54. ORGANIZATIONAL RELATIONSHIPS Architech/Engineer Owner Specialists General Contractor Subcontractor Subcontractor Subcontractor 2nd Tier Subcontractor 3rd Tier Subcontractor Supplier © www.asia-masters.com
  55. 55. ORGANIZATIONAL RELATIONSHIPS Architech/Engineer Owner Specialists Construction Manager Subcontractor Subcontractor Subcontractor 2nd Tier Subcontractor 3rd Tier Subcontractor Supplier © www.asia-masters.com
  56. 56. ORGANIZATIONAL RELATIONSHIPS Architech/Engineer Owner Specialists Construction Manager General Contractor Subcontractor Subcontractor Subcontractor 2nd Tier Subcontractor 3rd Tier Subcontractor Supplier © www.asia-masters.com
  57. 57. ORGANIZATIONAL RELATIONSHIPS Owner Architech/Engineer Design Builder Specialists Subcontractor Subcontractor Subcontractor 2nd Tier Subcontractor 3rd Tier Subcontractor Supplier © www.asia-masters.com
  58. 58. ORGANIZATIONAL RELATIONSHIPS Architech/Engineer Owner Specialists Subcontractor Subcontractor Subcontractor 2nd Tier Subcontractor 3rd Tier Subcontractor Supplier © www.asia-masters.com
  59. 59. ORGANIZATIONAL RELATIONSHIPS Beneficiary Owner Performance Bond Principal General Contractor Surety Subcontractor Subcontractor Subcontractor 2nd Tier Subcontractor 3rd Tier Subcontractor Supplier © www.asia-masters.com
  60. 60. ORGANIZATIONAL RELATIONSHIPS Beneficiary Owner Payment Bond Principal General Contractor Surety Subcontractor Subcontractor Subcontractor Beneficiary 2nd Tier Subcontractor 3rd Tier Subcontractor Supplier © www.asia-masters.com
  61. 61. INSURANCE Requirements under AIA A201Contract Documents Contractor’s Liability Insurance Owner’s Liability Insurance Property Insurance Loss of Use Insurance Workmen Compensation Disability Benefits © www.asia-masters.com
  62. 62. OWNERS RESPONSIBILITY Make Financial Arrangements to fulfill his obligations Furnish Accurate Contract Specifications and Drawings for the Contractor’s work Right to Stop Work Right to Change Work Right to Terminate Contract if Contractor Defaults © www.asia-masters.com
  63. 63. Architect’s Responsibility Architect is the Owner’s Representative Architect is the Administrator of the Contract Visit site at appropriate stages of construction to familiarize himself generally with the progress and quality of the Work and to determine whether Work is proceeding in accordance with Contract Documents. Advice the Owner on Work Progress Guard the Owner against Defects and Deficiencies in the Work of the Contractor Reviews Contractor’s Claims and Approves Amount to be paid to the Contractor Architect is not responsible for Methods of Construction or Site Safety © www.asia-masters.com
  64. 64. Contractor’s Responsibility Review Contract documents for Errors and Inconsistencies Supervise and Co-ordinate all Construction Work Provide full time Superintendent on Site Responsible for Site Safety Indemnify the Owner against any Claims by third parties © www.asia-masters.com
  65. 65. Handling Disputes Contract is signed between Owner and Contractor Architect acts as Interpreter of the Contract between Owner and Contractor Architect acts as Judge of the Performance of the Owner and Contractor All disputes between Owner and Contractor shall be decided by Architect Architect shall not show Partiality Architect’s Decision on Artistic Effects is Final Arbitration © www.asia-masters.com
  66. 66. II. Contract/Construction Management Stage 1: CONSTRUCTION PERIOD Stage 2: DEFECTS LIABILITY PERIOD (DLP) © www.asia-masters.com
  67. 67. Activity 1 Organization and Mobilization • Insurance Policies • Performance Security • Advance Payment Guarantee • Notice to Commence • Communication Procedures II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  68. 68. Activity 1 Organization and Mobilization Activity 2 Planning and Program • Monitoring Progress • Evaluating Performance • Project Management Software • Logic Network (CPM) • Short Construction Activities • Shop Drawings and Materials Submissions • Procurement Schedules • Quantity, Duration, Cost, Manpower and • Equipment • Resources Schedules and Histograms • Work Breakdown Structures (WBS) • Subcontractors’ Schedules II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  69. 69. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information • Verify Staked-Out Centerline, Traverse Points, Control Points and Bench Marks • Adequacy of Borrow Pits and Quarries • Planned Sources, Supply and Testing of Construction Materials II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  70. 70. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization • Site Facilities Adequacy and Organization • Layout Plan for all Temporary Site Facilities • Check Site Accesses, Temporary Structures, Site Office, Accommodation, Laboratory, Stocking Yards, Plant Facilities, Safety Measures, Service Roads, Parking Areas • Sufficiency, Adaptability, Interconnectivity, Suitability, Organization, Quality, Performance, Non-Interference with Permanent Works II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  71. 71. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods • Clearly Formulated, Well-Documented Method Statement: Method of Construction, Resources, Safety Precautions, Operation’s Duration • Submission and Approval before Occurrence of Planned Early Start of Activities II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  72. 72. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 6 Time Control • Monitor Program, Construction Activities, Resources • Update and Revise Program • Periodic Co-Ordination Meetings • Timely Shop Drawings and Samples Submission • Schedules of Materials and Shop Drawings Submissions and Approvals tied to Program • Monitor Labor and Plant Productivity, Materials Deliveries (Long-Lead Items), Identify Shortages • Labor, Plant or Materials Deficiencies • Identify Potential Variance: Scheduled v/s Actual Progress II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  73. 73. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 6 Time Control Activity 7 Cost Control • Interim Payments • Cash-Flow Estimate • Implement Variation Orders • Control & Monitor Quantities and Variation Orders w.r.t. Contract Price II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  74. 74. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control • Project Quality Assurance/Quality Control Plan • Compliance with Safety and Environment Protection • Review and Approval of Materials and Shop Drawings • Inspection of Operations • Inspection and Testing of Materials and Plant II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  75. 75. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control • Inspection of Work before Covering-Up • “As-Built” Drawings and “Operation and Maintenance Manuals” • List of Outstanding Works prior to Taking-Over • Completion of Outstanding Works and Performance during Defects Liability Period II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  76. 76. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control Activity 9 Site Meetings & Record Keeping • Daily Record of Progress of Works • Kick-off Site Meeting: Procedures, Means of Communication, Methods for giving Approvals, Instructions, Variation Orders, etc. • Regular Site Meetings: Monitor Performance and Progress based on Program, Discuss Problems, Coordination Issues, etc. II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  77. 77. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control Activity 9 Site Meetings and Record Keeping • Daily Diary • Maintain Up-To-Date Information Relevant to Progress, Performance, Quality, Quantities, Resources & Cost • Maintain Project Records in Classified and Retrievable Form II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  78. 78. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 10 Monthly Progress Reports Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control Activity 9 Site Meetings & Record Keeping • Executive Summary • Section One: General Information • Section Two: Progress Outline • Section Three: Schedules • Section Four: Resource Control II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  79. 79. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 10 Monthly Progress Reports Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control Activity 9 Site Meetings and Record Keeping • Section Five: Cost Control • Section Six: Quality Control • Section Seven: Contract Records • Section Eight: Progress Photographs II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  80. 80. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 10 Monthly Progress Reports Activity 11 Claims and Disputes Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control Activity 9 Site Meetings & Record Keeping • Identify Potential Claims • Settle Disputes or Differences II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  81. 81. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 10 Monthly Progress Reports Activity 11 Claims and Disputes Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control Activity 9 Site Meetings & Record Keeping • Implementation of Methods and Procedures to Minimize the Potential Financial and Time Impact of Claims • Settlement of time/cost claims II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  82. 82. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 10 Monthly Progress Reports Activity 11 Claims and Disputes Activity 12 Completion of Works / Taking-Over Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control Activity 9 Site Meetings & Record Keeping II. Contract/Construction Management stage 1: construction period • Establish schedule for Testing and Commissioning • Witness Tests • Prepare List of Outstanding Works • Obtain Written Undertaking to Complete any Outstanding Work during DLP © www.asia-masters.com
  83. 83. Activity 1 Organization and Mobilization Activity 2 Planning and Program Activity 3 Survey Check and Material Information Activity 4 Plan for Site Organization Activity 5 Construction Methods Activity 10 Monthly Progress Reports Activity 11 Claims and Disputes Activity 12 Completion of Works / Taking-Over Activity 6 Time Control Activity 7 Cost Control Activity 8 Quality Control Activity 9 Site Meetings & Record Keeping • Issue Taking-Over Certificate • Check Progressively “As-built Drawings” • Review “Operations and Maintenance Manuals” II. Contract/Construction Management stage 1: construction period © www.asia-masters.com
  84. 84. Activity 13 Inspection of Works • Inspect and Verify that the Outstanding Works have been Satisfactorily Completed • Remedy Detected Defects • Final Taking-Over of Project at End of Defects Liability Period II. Contract/Construction Management stage 2: defects liability period © www.asia-masters.com
  85. 85. Activity 13 Inspection of Works Activity 14 Defects Liability Certificate • Issuance of Defects Liability Certificate II. Contract/Construction Management stage 2: defects liability period © www.asia-masters.com
  86. 86. Activity 13 Inspection of Works Activity 14 Defects Liability Certificate Activity 15 Final Certificate and Final Report • Final Statement submittal after Issuance of Defects Liability Certificate • Issuance of Final Certificate • Final Report II. Contract/Construction Management stage 2: defects liability period © www.asia-masters.com
  87. 87. III. PROJECT CONTROLS Scope - Continuous monitoring of actual project performance (Time, Cost, Quality). - Assessing performance and any needed corrective/preventive action. - Maintaining accurate and updated information base through the project’s cycle. © www.asia-masters.com
  88. 88. Project Controls Time & Cost - Review time schedule/cash-flow estimate. - Review material submittals/shop drawings schedules. - Record delays and advise on recovery measures. © www.asia-masters.com
  89. 89. Project Controls Time & Cost - BENEFITS Project Controls of the project schedule will enable: Baseline – Identifying Project WBS and Baseline Schedule – Identifying Critical Activities – Resources Requirements – Anticipated Cash Flow (S-Curve) Progress and Update – Measuring Progress/Performance – Identifying delays and sources of delay (through further side analysis) – Assessing the need for rescheduling and determining which activities need to be rescheduled Changes – Potential effect of Variation Orders – Analyzing Contractors’ Claims for Extension of Time © www.asia-masters.com
  90. 90. PLANNING & SCHEDULING -Critical Path Method (CPM) -Critical Path Activities -Logical Relationships -Total Float (TF) -Free Float (FF) -Constraints -Resources © www.asia-masters.com
  91. 91. REPORTS Resources - Histograms
  92. 92. PLANNING & SCHEDULING SCHEDULE COMPRESSION • Shortening the Project Schedule duration without reducing the project scope which might increase the project cost. SCHEDULE UPDATE • Starts with monitoring of the project activities, collecting key progress information that would be translated into the following at the end of the reporting period (data date, time now or as of date): Actual Start of progressing/completed activities Actual Finish for completed activities % complete/remaining duration/expected completion date for progressing activities The above information is entered into the Update Schedule and the schedule calculation performed. • The Updated Schedule is compared to the Baseline Schedule The Critical Path may change. © www.asia-masters.com
  93. 93. Progress Monitoring & Control Baseline Vs. Updated Schedule
  94. 94. ESSENTIAL FACTORS Construction Contract Documents to specify clearly the requirements for the construction schedule: – Category of Software (by name or of similar capabilities) – Phasing – Milestones – WBS – Interface with other construction projects – Level of detail – Short activities duration, quantities and cost (based on BOQ), resources (labor and equipment) – Activities to include submittal , approval and procurement of materials – Frequency of schedule update and reporting – Type of reports to be submitted (Logic Network, Bar Charts, Tabular, Labor Histograms per trade and total, Equipment Histograms per equipment and total, Cost in tabular, histogram and S-Curve formats, Earned Value) – Calendar © www.asia-masters.com
  95. 95. Project Calendars A calendar of working days or shifts that establishes those dates on which activities are worked, and nonworking days. Nonworking days include holidays. A project can have a unique calendar or multi-calendars. Example: Activity with duration of 18 working days. ESSENTIAL FACTORS
  96. 96. Progress Reporting
  97. 97. Cost Control • Review and process interim payments applications • Monitor quantities and variation orders • Monitor cash flow • Evaluate change/variations impact • Develop cost forecasts • Calculate the earned value • Develop, implement, update project cost • Monitor/Identify variances between actual/budgeted costs
  98. 98. Report Cost (Value) Histogram and S – Curve
  99. 99. Earned Value Specific technique for measuring performance of work based on activities’ costs BCWS: Budgeted cost of work scheduled (Planned Value) BCWP: Budgeted cost of work performed (Earned Value) ACWP: Actual cost of work performed (Actual Cost) Schedule Variance (SV) = BCWP – BCWS Cost Variance (CV) = BCWP – ACWP • Schedule Index (SI) = BCWP/BCWS • Cost Index (CI) = BCWP/ACWP © www.asia-masters.com
  100. 100. Planned Value Earned Value CV BCWS ACWP SV BCWP (BCWS) (BCWP) (ACWP) © www.asia-masters.com
  101. 101. Variation Order - Form
  102. 102. Quality Control Quality is controlled through the following: - Timely inspections and testing of works, materials and production plants - Review and monitoring of Health, Safety and Environment (HSE) plan - Inspection of material sources and list of suppliers - Review and Approval of Materials and Shop Drawings - Review of As-Built drawings and O&M manuals - Submittal of certificates of guarantee - Involvement of third party for laboratory testing - Snag lists implementation © www.asia-masters.com
  103. 103. Submittal for approval of materials - Form
  104. 104. Request for Inspection - Form
  105. 105. QA/QC Auditing • Oversee QA/QC implementation • Oversee inspection/ testing process • Issue periodic audit reports © www.asia-masters.com
  106. 106. Document Control Document Control in construction projects is the management of contract documents and the incoming and outgoing correspondence and their attachments and their flow to the members of the management team for action or information. Parties involved are commonly: - Client - Funding Agency - Consultant - Contractor - Authorities - Stakeholders - Other © www.asia-masters.com
  107. 107. Document Control Develop/Implement/Maintain Document Control system to cover: - Contract Documents - Correspondence/Minutes of Meetings - Site Correspondence/Reports - Drawings Logs - Submittals © www.asia-masters.com
  108. 108. Document Control Primavera Expedition Global Report
  109. 109. Project Documentation - A referencing system for all project documents is necessary to achieve proper document control and archiving. - Referencing system applies to all documents and correspondences. © www.asia-masters.com
  110. 110. XXXXX 001-W 001 1 of 1 Zone No. or Building No. Discipline (Water Supply) Serial No. (001) Project Number X of Y Referencing System Example of Drawings Numbering System © www.asia-masters.com
  111. 111. The End © www.asia-masters.com

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  • JulioFernandez15

    Jun. 4, 2017
  • MohamedAbdelaalAhmed

    Jan. 28, 2019
  • YeYint29

    Nov. 14, 2020
  • KennethThomas20

    Feb. 14, 2021

Training Slides of PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT, discussing the importance of Project Management. Some Key-Points: - The Project Management Context - Project Life Cycle - Work Breakdown Structure For further information regarding the course, please contact: info@asia-masters.com www.asia-masters.com

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