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Construction Project Management
Satyabhama University
Department of Architecture
1
2
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
3
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
like roads, bridges, railways, airports and seaports etc.
 Market of construction business is both domestic as well global
4
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
5
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.
6
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
VENDORS SUPPLIERS
OTHER
CONSULTANTS
LIASIONING
CONSULTANTS
ARCHITECT PMC
CLIENT
COORDINATION
MONITORING & CONTROL
REPORTING
APPOINTMENT
7
8
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.
9
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
Organization resources
Planning resources
Scheduling resources
Organizing resources
Directing resources
Monitoring resources
Controlling resources
Time / Cost / Quality/ Environment constraints
With
By
Within
10
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
11
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
PROJECT OBJECTIVES
 If there is no repetition of task with unique quality and cost -12 units
 If there is repetition of 4 task then earliest completion time -6 units
 Increase in the repetition of similar tasks will increase the resource
productivity. Experience gained due to repetition will reduce the overall cost.
12
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
“ Project Management Techniques ”
is called
PROJECT OBJECTIVES
14
CTQs
Agree Schedule/Base Specs
15
Project initiation/ set
up process plan
Design Development/ Value
Engg
Tendering
Bid Award
Project Plan
Coordination
QS Control
Communication
Scheduling
Commssn’g
De-snagging
Occupation
Stage 1
Pre-design / Strategy
Client Brief/ Preplanning / overall scoping
Commercial Closure
Project
Team
Stage 2
Pre-construction
Stage 4
Post Const
EHS/compliances
Stage 3
Construction
PROJECT LIFECYCLE
• Preparation of Project Brief
• Project Budget
• Appointment of Consultants
• Project Procedures
• Project Planning Strategy
• Master Schedule
• Value Engineering
• Design Review
• Design Process Mgmt.
• Document Control Imp.
• Project Cost Plan
• Pre-Construction Cost Mgmt.
• Interface with Authorities
• Contract Documentation
• Constructability Review
• Value Engineering
• Schedule Management
• Pre-Construction Works
• Document Review
• Procurement Strategy
• Pre-Qualification
• Bid Documentation
Process
• Bid Process
• Contract Award
• Contract Documentation
• Start-up Management
• Construction Scheduling
• Value Engineering
• Site Organization
• Construction Management
• Value Engineering
• Submittal Process
• Site Logistics
• Construction Cost Mgmt
• Quality Assurance
• Performance Measurement
• Correspondence Documentation• Billing Administration
• Change Order Management
• Claims Management
• Punch-Listing
• Commissioning Management
• Closeout Training Programs
• O&M Manuals and “As Built”
Drawings Collations
• Financial close out
• Admin close out
Pre-Design Design Construction Close-out
Tendering &
Procurement
B
U
I
L
D
I
N
G
&
INFRASTRUCTURE
PROCESS
• Preparation of Process Brief
• Appointment of Consultants
• Project Planning Strategy
• Master Schedule
• P&ID Review
• Process design Coordination
• Pre-Construction Works
• Bid Process Assistance
• Documentation Support
• Process Equipment Logistics
• Process Implementation Mangt.
• Coordination & Integration with
construction infrastructures
• Integration, fine tuning, Problem
Solving, Infrastructure support
• Commissioning Management
Stage 1 Stage 2
Performance Baseline
Stage 4 Stage 5
Efforts of Core
Team
Stage 3
Cumulative Cash
Flow
Cost Performance
baseline
Expected cash
flow
Process Life
Project Life
16
17
THANK
YOU

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CONSTRUCTION PROJECT MANAGEMENT - INTRODUCTION

  • 1. Construction Project Management Satyabhama University Department of Architecture 1
  • 2. 2 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
  • 3. 3 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 like roads, bridges, railways, airports and seaports etc.  Market of construction business is both domestic as well global
  • 4. 4 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
  • 5. 5 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.
  • 6. 6 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. 8 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.
  • 9. 9 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 Organization resources Planning resources Scheduling resources Organizing resources Directing resources Monitoring resources Controlling resources Time / Cost / Quality/ Environment constraints With By Within
  • 10. 10 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
  • 11. 11 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
  • 12. PROJECT OBJECTIVES  If there is no repetition of task with unique quality and cost -12 units  If there is repetition of 4 task then earliest completion time -6 units  Increase in the repetition of similar tasks will increase the resource productivity. Experience gained due to repetition will reduce the overall cost. 12
  • 13. 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 “ Project Management Techniques ” is called
  • 15. CTQs Agree Schedule/Base Specs 15 Project initiation/ set up process plan Design Development/ Value Engg Tendering Bid Award Project Plan Coordination QS Control Communication Scheduling Commssn’g De-snagging Occupation Stage 1 Pre-design / Strategy Client Brief/ Preplanning / overall scoping Commercial Closure Project Team Stage 2 Pre-construction Stage 4 Post Const EHS/compliances Stage 3 Construction PROJECT LIFECYCLE
  • 16. • Preparation of Project Brief • Project Budget • Appointment of Consultants • Project Procedures • Project Planning Strategy • Master Schedule • Value Engineering • Design Review • Design Process Mgmt. • Document Control Imp. • Project Cost Plan • Pre-Construction Cost Mgmt. • Interface with Authorities • Contract Documentation • Constructability Review • Value Engineering • Schedule Management • Pre-Construction Works • Document Review • Procurement Strategy • Pre-Qualification • Bid Documentation Process • Bid Process • Contract Award • Contract Documentation • Start-up Management • Construction Scheduling • Value Engineering • Site Organization • Construction Management • Value Engineering • Submittal Process • Site Logistics • Construction Cost Mgmt • Quality Assurance • Performance Measurement • Correspondence Documentation• Billing Administration • Change Order Management • Claims Management • Punch-Listing • Commissioning Management • Closeout Training Programs • O&M Manuals and “As Built” Drawings Collations • Financial close out • Admin close out Pre-Design Design Construction Close-out Tendering & Procurement B U I L D I N G & INFRASTRUCTURE PROCESS • Preparation of Process Brief • Appointment of Consultants • Project Planning Strategy • Master Schedule • P&ID Review • Process design Coordination • Pre-Construction Works • Bid Process Assistance • Documentation Support • Process Equipment Logistics • Process Implementation Mangt. • Coordination & Integration with construction infrastructures • Integration, fine tuning, Problem Solving, Infrastructure support • Commissioning Management Stage 1 Stage 2 Performance Baseline Stage 4 Stage 5 Efforts of Core Team Stage 3 Cumulative Cash Flow Cost Performance baseline Expected cash flow Process Life Project Life 16