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Construction Industry
•
•
•
•
One of the oldest and largest industries
Provides employment on large scale
Mechanization have become part and
parcel of construction
Mechanization – reduced time of
construction, reduced number of people
engaged and improved quality of
construction
Construction Industry
•
•
•
Mechanization – construction of high rise
buildings, dams, metro rail, cable stayed
bridges, high chimneys. etc. easily
possible
Scientific tools like Construction
Management techniques are used in
developed countries
Developing countries still continue with
traditional labour-intensive style of
construction
Construction Industry
•
•
•
Traditional system is time- consuming
and does not match quality requirements
If construction project schedules are not
maintained, the cost increases
Thus, the use of plants and machinery and
the adoption of the latest construction
management methods should be the
essential features of construction
industries in modern times
Construction Stages
1.
2.
3.
4.
5.
Conception
Study and Evaluation
Design
Contract
Construction
A Construction Project
•
•
PMBOK (Project Management Book of
Knowledge) defines project as a
temporary endeavor undertaken to provide
a unique product or service.
The product in construction industry –
buildings, infrastructure and so on
A Project
• A project consists of three components:
scope (the work to be accomplished),
budget and schedule
A PROJECT
A project consists of three components:
scope (the work to be accomplished),
budget and schedule
Scope
Schedul
e
Budget
Quality Quality
Quality
Project Management
Project Categories
1.
•
•
Building construction :
Residential and commercial complexes,
educational and recreational facilities,
hospitals and hotels
These projects are mostly designed by
the Architect/ Engineering firms and are
financed by public and private sector and
individuals
Project Categories
•
•
2. Infrastructure construction:
These are capital intensive and heavy-
equipment oriented works which involve
movement of large quantity of bulk
materials like earth, steel and concrete
Dams and canals, highways, railways,
airports, bridges, oil/gas pipelines,
transmission lines, large water supply and
sewage disposal networks,
Project Categories
•
docks and harbours, hydroelectric,
nuclear and thermal power plants and
other specialist construction activities
which build-up the infrastructure for the
growth of the economy.
Designed by the specialist engineering
firms and mostly financed by the
government/ public sector
Project Categories
•
•
•
3. Industrial construction:
Steel mills, petroleum refineries,
consumer-goods factories,
Highly specialized and involve heavy
investment
Financed by government, public and
private enterprises
Parties involved in a project
The Owner
The Consultant
The Contactor
The Owner
• The owner may be a person or a group of
persons acting as a corporate body such
as a local government authority or a
government department, a company, a
corporation or any other authority
possessing adequate powers
The Owner
•
•
The Owner or the promoter decides to
undertake the project after a detailed
analysis of the costs and the payment
schedule
Payment made by the owner has to be
regular and in line with the progress of the
work
The Owner
•
•
•
To maintain the flow of money the owner
may utilise his own resources or borrow
money from other sources
The money arranged and spent for the job
is known as “capital investment”
The owner is expected to arrange for the
supply of power and water to the
construction site
The Consultant
•
•
The consultant/ engineer or architect is a
person or a group of persons or a
company who gives the owner the
technical advice for the project
Functions – to design, to do the necessary
research for the design, to provide the
calculation for the cost, to appraise the
owner about the pros and cons of the
project
The Consultant
•
•
•
The consultant should impress the owner
in a manner that the owner can rely on him
regarding all technicalities of the project
He must be well-trained in quality and
workmanship requirements
He must supervise the construction
regularly
The Contractor
•
•
•
A civil engineering contractor is a person
or a company who undertakes the
construction
He offers to do the job for a given sum of
money
When his tender is accepted he signs a
contract with the owner to undertake the
construction
The Contractor
•
•
He must have the skill and competence to
execute the work exactly as the owner
wants and the consultant advises
He is to do the construction as per the
drawings, specifications and instructions
issued to him by the consultant
Project Management
• PMBOK defines Project Management as
the application of knowledge, skills, tools
and techniques to a broad range of
activities to meet the requirements of the
particular project.
Project Management
•
•
Project management may be defined as
the art and science of coordinating people,
equipment, materials, money and
schedules to complete a specified project
on time and within approved cost.
The limited resources have to be utilized
within a given time under conditions of
uncertainty, so as to derive the maximum
benefit in terms of construction output.
Why Construction Project
Management?
•
•
There is probably no other discipline that is
more difficult than construction project
management
General goal of a construction project
seems simple enough – building a project
on time. Within budget, with the stated
quality standards and in a safe environment
The project manager aims to achieve his
mission by
Managing – Time and progress
Cost and cash flow
Quality and performance
Organization behaviour
With - Organization resources
By - Planning resources
Scheduling resources
Organizing resources
Directing resources
Monitoring resources
Controlling resources
Within - Quality constraints
Time constraints
Cost constraints
Environmental constraints
Functions of
Project Management
1.
2.
3.
4.
5.
6.
Planning
Organizing
Staffing
Directing
Controlling
Motivating
1. Planning
•
•
•
Planning is the formulation of a course
of action to guide a project to completion
It starts at the beginning of the project
and continues throughout the life of the
project
Establishment of milestones and
consideration of possible constraints are
major parts of planning
Planning
•
•
The managerial function of deciding
what to do, when to do and how to do is
known as planning
The planner relies on sound judgment
based on knowledge, experience and
mathematical or statistical methods
Planning
•
•
•
•
Planning involves –
Defining objectives of the project
Listing the tasks or jobs that must be
performed
Determining requirements for materials,
manpower and machinery
Preparing estimates of costs and
durations for the various jobs or activities
Planning
• Planning also takes care of the likely
uncertainties in execution due to various
unpredictable factors such as the weather,
material shortage, price fluctuations,
labour absenteeism, etc.
2. Organizing
•
•
•
It is the arrangement of resources in a
systematic manner to fit the project plan
Creation of capable and responsible
organizational set up for the execution of
planned activity
Type of organization would depend upon
the type and volume of work
3. Staffing
•
•
•
•
It is the selection of individuals who have
the expertise to produce the work
People are the most important resource
on a project
People provide the knowledge to design,
coordinate, and construct the project
Numerous problems are solved by people
4. Directing
•
•
•
It is the guidance of the work required to
complete the project
Staff must be developed into a team
Each person must be collectively directed
in a common effort and a common
direction
Directing
•
•
Involves Leadership, Communication,
Motivation and Supervision
Achieved by establishing effective
communication between the employees
and the management to create awareness
of the planned programmes and the
methods to be adopted for their
implementation
5. Controlling
•
•
•
It is the establishment of a system to
measure, report, and forecast deviations in
the project scope, budget and schedule
Purpose of project control is to determine
and predict deviations in a project so
corrective actions can be taken
It is the most difficult function of project
management
Controlling
•
•
•
Controlling quality of work
Controlling use of machines, materials,
men
Controlling expenditure
6. Motivating
•
•
•
•
Important task of the management is to get the
work done by the subordinates and achieve
results
This depends mainly on whether a person has
been motivated to do it
Motivating a person is to create awareness to
excel his performance
This can be done by creating in him a sense of
responsibility and feeling of special interest in
his work
Project Manager’s role in
Planning
•
•
•
•
•
Develop planning focused on the work
Establish project objectives and performance
requirements
Establish clear and well-defined milestones
Prepare formal agreements with parties
Communicate the project plan to clearly
define individual responsibilities, schedules
and budgets
Project Manager’s role in Organizing
•
•
•
•
Organize the project around the work to be
accomplished
Develop a work breakdown structure
Establish a project organization chart to
show who does what
Define clearly the authority and
responsibility
Project Manager’s role in
Staffing
•
•
•
Define clearly the work to be performed
Provide an effective orientation for team
members at the beginning of the project
Explain clearly to team members what is
expected from them
Project Manager’s role in
Directing
•
•
•
•
•
•
Show interest and enthusiasm in the
project with a “can do” attitude
Serve as an effective leader
Be available to the staff
Analyze and investigate problems early
Obtain the resources needed
Guide, Compliment, motivate team
members
Project Manager’s role in Controlling
•
•
•
•
•
Maintain a record of planned and actual
work accomplished to measure project
performance
Maintain a current milestone chart
Maintain a monthly project cost chart
Keep records of meetings, agreements
Keep everyone informed
Steps involved in
Project Management
1.
2.
3.
Project Planning
Project Scheduling
Project Controlling
Steps involved in
Project Management
1. Project Planning /Time Panning–
Planning is a predetermined course of
action to achieve a specific goal. It
means deciding in advance what to do,
how to do it, when to do it and where to
do it
Steps involved in
Project Management
i.
ii.
Steps involved in Project /Time Planning:
Time plan: It depicts the schedule of
project activities for completion of the
project within a specified time
Resource plan: it forecasts the required
input resources of men, materials,
machinery and money for achieving the
completion time target and cost objective
Steps involved in
Project Management
iii. Plan for controlling project: It involves
the design of control system, monitoring
system
Planning can be done by using bar-charts,
milestone charts, CPM and PERT
techniques
Steps involved in
Project Management
2.
•
•
Project Scheduling: Scheduling means
putting the plan on calendar basis.
To schedule the activities to determine
commencement and completion dates
using optimum resources
A time schedule is a time table of work
Steps involved in
Project Management
3.
•
•
Project Controlling: Project Control
involves reviewing the deviation between
schedule and actual performance once the
project has begun
designing accounting and monitoring
methodology
developing information systems so as to
make decisions speedily
Steps involved in
Project Management
•
•
•
identifying the problem areas
making risk-taking decisions to tackle
these problems
organizing and directing resources to
carry out these decisions and measuring
the results of these decision against
targeted expectations
Project Life Cycle
•
•
Each project has a predetermined duration
with a definite beginning and an
identifiable end.
Its starting point is the time when the idea
is convinced by the client and its end
marks the time when the mission is
accomplished.
Project Life Cycle
• The time span between the start and
completion of a project represents the
project life cycle, which varies from few
months to few years.
Project Life Cycle
Typical Construction Project Life Cycle
Construction
Formulatio
n
Mobilization
Level
of
Effort
Project Life Cycle
•
•
Although construction projects differ in
many ways, the life span of a project
follows a similar pattern.
As shown in the figure, after conception
there is a gradual build-up in the use of
resources, it is followed by a long-duration
plateau and towards the end, there is a
rapid run-down till completion.
Stages of the life cycle of a project
• Formulation Stage –
Project idea conception
- Feasibility studies
- Investment appraisal
- Project definition
Stages of the life cycle of a project
• Mobilization stage –
Project preliminary plan
- Designs & drawings
- Specifications & Contract agreement
- Resources mobilization
Stages of the life cycle of a project
• Construction Stage –
- Planning and controlling execution
- Inducting resources
- Construction and commissioning
- Final handling over to the client
Project manager is the key participant in all
these stages and acts as a catalyst who
motivates the participants for achieving the
stage objectives.

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1.Project Management in construction Industry

  • 1. Construction Industry • • • • One of the oldest and largest industries Provides employment on large scale Mechanization have become part and parcel of construction Mechanization – reduced time of construction, reduced number of people engaged and improved quality of construction
  • 2. Construction Industry • • • Mechanization – construction of high rise buildings, dams, metro rail, cable stayed bridges, high chimneys. etc. easily possible Scientific tools like Construction Management techniques are used in developed countries Developing countries still continue with traditional labour-intensive style of construction
  • 3. Construction Industry • • • Traditional system is time- consuming and does not match quality requirements If construction project schedules are not maintained, the cost increases Thus, the use of plants and machinery and the adoption of the latest construction management methods should be the essential features of construction industries in modern times
  • 4. Construction Stages 1. 2. 3. 4. 5. Conception Study and Evaluation Design Contract Construction
  • 5. A Construction Project • • PMBOK (Project Management Book of Knowledge) defines project as a temporary endeavor undertaken to provide a unique product or service. The product in construction industry – buildings, infrastructure and so on
  • 6. A Project • A project consists of three components: scope (the work to be accomplished), budget and schedule
  • 7. A PROJECT A project consists of three components: scope (the work to be accomplished), budget and schedule Scope Schedul e Budget Quality Quality Quality Project Management
  • 8. Project Categories 1. • • Building construction : Residential and commercial complexes, educational and recreational facilities, hospitals and hotels These projects are mostly designed by the Architect/ Engineering firms and are financed by public and private sector and individuals
  • 9. Project Categories • • 2. Infrastructure construction: These are capital intensive and heavy- equipment oriented works which involve movement of large quantity of bulk materials like earth, steel and concrete Dams and canals, highways, railways, airports, bridges, oil/gas pipelines, transmission lines, large water supply and sewage disposal networks,
  • 10. Project Categories • docks and harbours, hydroelectric, nuclear and thermal power plants and other specialist construction activities which build-up the infrastructure for the growth of the economy. Designed by the specialist engineering firms and mostly financed by the government/ public sector
  • 11. Project Categories • • • 3. Industrial construction: Steel mills, petroleum refineries, consumer-goods factories, Highly specialized and involve heavy investment Financed by government, public and private enterprises
  • 12. Parties involved in a project The Owner The Consultant The Contactor
  • 13. The Owner • The owner may be a person or a group of persons acting as a corporate body such as a local government authority or a government department, a company, a corporation or any other authority possessing adequate powers
  • 14. The Owner • • The Owner or the promoter decides to undertake the project after a detailed analysis of the costs and the payment schedule Payment made by the owner has to be regular and in line with the progress of the work
  • 15. The Owner • • • To maintain the flow of money the owner may utilise his own resources or borrow money from other sources The money arranged and spent for the job is known as “capital investment” The owner is expected to arrange for the supply of power and water to the construction site
  • 16. The Consultant • • The consultant/ engineer or architect is a person or a group of persons or a company who gives the owner the technical advice for the project Functions – to design, to do the necessary research for the design, to provide the calculation for the cost, to appraise the owner about the pros and cons of the project
  • 17. The Consultant • • • The consultant should impress the owner in a manner that the owner can rely on him regarding all technicalities of the project He must be well-trained in quality and workmanship requirements He must supervise the construction regularly
  • 18. The Contractor • • • A civil engineering contractor is a person or a company who undertakes the construction He offers to do the job for a given sum of money When his tender is accepted he signs a contract with the owner to undertake the construction
  • 19. The Contractor • • He must have the skill and competence to execute the work exactly as the owner wants and the consultant advises He is to do the construction as per the drawings, specifications and instructions issued to him by the consultant
  • 20. Project Management • PMBOK defines Project Management as the application of knowledge, skills, tools and techniques to a broad range of activities to meet the requirements of the particular project.
  • 21. Project Management • • Project management may be defined as the art and science of coordinating people, equipment, materials, money and schedules to complete a specified project on time and within approved cost. The limited resources have to be utilized within a given time under conditions of uncertainty, so as to derive the maximum benefit in terms of construction output.
  • 22. Why Construction Project Management? • • There is probably no other discipline that is more difficult than construction project management General goal of a construction project seems simple enough – building a project on time. Within budget, with the stated quality standards and in a safe environment
  • 23. The project manager aims to achieve his mission by Managing – Time and progress Cost and cash flow Quality and performance Organization behaviour With - Organization resources
  • 24. By - Planning resources Scheduling resources Organizing resources Directing resources Monitoring resources Controlling resources Within - Quality constraints Time constraints Cost constraints Environmental constraints
  • 26. 1. Planning • • • Planning is the formulation of a course of action to guide a project to completion It starts at the beginning of the project and continues throughout the life of the project Establishment of milestones and consideration of possible constraints are major parts of planning
  • 27. Planning • • The managerial function of deciding what to do, when to do and how to do is known as planning The planner relies on sound judgment based on knowledge, experience and mathematical or statistical methods
  • 28. Planning • • • • Planning involves – Defining objectives of the project Listing the tasks or jobs that must be performed Determining requirements for materials, manpower and machinery Preparing estimates of costs and durations for the various jobs or activities
  • 29. Planning • Planning also takes care of the likely uncertainties in execution due to various unpredictable factors such as the weather, material shortage, price fluctuations, labour absenteeism, etc.
  • 30. 2. Organizing • • • It is the arrangement of resources in a systematic manner to fit the project plan Creation of capable and responsible organizational set up for the execution of planned activity Type of organization would depend upon the type and volume of work
  • 31. 3. Staffing • • • • It is the selection of individuals who have the expertise to produce the work People are the most important resource on a project People provide the knowledge to design, coordinate, and construct the project Numerous problems are solved by people
  • 32. 4. Directing • • • It is the guidance of the work required to complete the project Staff must be developed into a team Each person must be collectively directed in a common effort and a common direction
  • 33. Directing • • Involves Leadership, Communication, Motivation and Supervision Achieved by establishing effective communication between the employees and the management to create awareness of the planned programmes and the methods to be adopted for their implementation
  • 34. 5. Controlling • • • It is the establishment of a system to measure, report, and forecast deviations in the project scope, budget and schedule Purpose of project control is to determine and predict deviations in a project so corrective actions can be taken It is the most difficult function of project management
  • 35. Controlling • • • Controlling quality of work Controlling use of machines, materials, men Controlling expenditure
  • 36. 6. Motivating • • • • Important task of the management is to get the work done by the subordinates and achieve results This depends mainly on whether a person has been motivated to do it Motivating a person is to create awareness to excel his performance This can be done by creating in him a sense of responsibility and feeling of special interest in his work
  • 37. Project Manager’s role in Planning • • • • • Develop planning focused on the work Establish project objectives and performance requirements Establish clear and well-defined milestones Prepare formal agreements with parties Communicate the project plan to clearly define individual responsibilities, schedules and budgets
  • 38. Project Manager’s role in Organizing • • • • Organize the project around the work to be accomplished Develop a work breakdown structure Establish a project organization chart to show who does what Define clearly the authority and responsibility
  • 39. Project Manager’s role in Staffing • • • Define clearly the work to be performed Provide an effective orientation for team members at the beginning of the project Explain clearly to team members what is expected from them
  • 40. Project Manager’s role in Directing • • • • • • Show interest and enthusiasm in the project with a “can do” attitude Serve as an effective leader Be available to the staff Analyze and investigate problems early Obtain the resources needed Guide, Compliment, motivate team members
  • 41. Project Manager’s role in Controlling • • • • • Maintain a record of planned and actual work accomplished to measure project performance Maintain a current milestone chart Maintain a monthly project cost chart Keep records of meetings, agreements Keep everyone informed
  • 42. Steps involved in Project Management 1. 2. 3. Project Planning Project Scheduling Project Controlling
  • 43. Steps involved in Project Management 1. Project Planning /Time Panning– Planning is a predetermined course of action to achieve a specific goal. It means deciding in advance what to do, how to do it, when to do it and where to do it
  • 44. Steps involved in Project Management i. ii. Steps involved in Project /Time Planning: Time plan: It depicts the schedule of project activities for completion of the project within a specified time Resource plan: it forecasts the required input resources of men, materials, machinery and money for achieving the completion time target and cost objective
  • 45. Steps involved in Project Management iii. Plan for controlling project: It involves the design of control system, monitoring system Planning can be done by using bar-charts, milestone charts, CPM and PERT techniques
  • 46. Steps involved in Project Management 2. • • Project Scheduling: Scheduling means putting the plan on calendar basis. To schedule the activities to determine commencement and completion dates using optimum resources A time schedule is a time table of work
  • 47. Steps involved in Project Management 3. • • Project Controlling: Project Control involves reviewing the deviation between schedule and actual performance once the project has begun designing accounting and monitoring methodology developing information systems so as to make decisions speedily
  • 48. Steps involved in Project Management • • • identifying the problem areas making risk-taking decisions to tackle these problems organizing and directing resources to carry out these decisions and measuring the results of these decision against targeted expectations
  • 49. Project Life Cycle • • Each project has a predetermined duration with a definite beginning and an identifiable end. Its starting point is the time when the idea is convinced by the client and its end marks the time when the mission is accomplished.
  • 50. Project Life Cycle • The time span between the start and completion of a project represents the project life cycle, which varies from few months to few years.
  • 51. Project Life Cycle Typical Construction Project Life Cycle Construction Formulatio n Mobilization Level of Effort
  • 52. Project Life Cycle • • Although construction projects differ in many ways, the life span of a project follows a similar pattern. As shown in the figure, after conception there is a gradual build-up in the use of resources, it is followed by a long-duration plateau and towards the end, there is a rapid run-down till completion.
  • 53. Stages of the life cycle of a project • Formulation Stage – Project idea conception - Feasibility studies - Investment appraisal - Project definition
  • 54. Stages of the life cycle of a project • Mobilization stage – Project preliminary plan - Designs & drawings - Specifications & Contract agreement - Resources mobilization
  • 55. Stages of the life cycle of a project • Construction Stage – - Planning and controlling execution - Inducting resources - Construction and commissioning - Final handling over to the client Project manager is the key participant in all these stages and acts as a catalyst who motivates the participants for achieving the stage objectives.