The document discusses various topics related to contract and project management including the aims of studying project management, defining what a project is, describing different project management methodologies, and providing an overview of typical project management processes such as initiating, planning, executing, monitoring and controlling, and closing a project. The module aims to develop students' personal practitioner skills in areas like planning, managing resources, and evaluating risks and legal/ethical issues for engineering projects.

1. 1
57086
Contract and Project Management
The University of Hull

2. 1
57086
Contract and Project Management
Introduction
Jim Gilbert,
David Sowden
The University of Hull

3. Overview
• Aims of the Module
• Why use a project management method?
• What is a Project?
• The Terminology
• The Processes
• The Components
• The Techniques
• Process and Component links
3

4. Aims of the Module
The aim of this module is to present
various current practices, topics and
methodologies relevant to contract and
project management that underpin
engineering projects, products and
services. This module focuses upon
developing your own personal
‘practitioner’ skills.
4

5. Aims of the Module
At the end of the module, with guidance, You will be expected to have the ability to:
Demonstrate some breadth and understanding of a range of tools, techniques
and methodologies relevant to planning, managing and controlling an
engineering project involving a wide range of resources within the workplace
environment. (Learning Outcome 1 (LO1))
Construct and convey to a range of stakeholders, a fully detailed contract /
project proposal (including appropriate cost estimates) drawing upon data /
information / literature from a largely prescribed range of sources utilising
appropriate IT skills and applications. (Learning Outcome 2 (LO2))
Coherently evaluate and reflect upon their own proposals identifying risks, and
seeking appropriate guidance with respect to relevant legal and ethical issues
associated with engineering projects. (Learning Outcome 3 (LO3))
5

6. Method of Assessments for this module
• Problem solving exercises (40%)
• Project proposal (40%)
• Reflective review (20%)
6

7. What is Project Management?
• It is the application of knowledge, skills
and techniques to execute projects
effectively and efficiently.
• It’s a strategic competency for
organisations, enabling them to tie
project results to business goals — and
thus, better compete in their markets.
7

8. History (1)
• Henri Fayol (1841 - 1925)
– Creator of the basic project-management functions
‘To manage is to forecast and plan, to organise, co-ordinate
and to control’
• forecasting
• planning
Development • organising
Phases • commanding
• coordinating
• controlling
8

9. History (2)
• Henry Gantt (1861 - 1919)
– Invent of the project management tool - the Gantt chart.
Strength Weakness
• easy to read • tendency to depict dates as
• understandable set in ‘stone’
• movement of milestones
difficult
http://www.ganttchart.in/GanttChartHistory.html
9

10. Why do project fail?
• Remember that Gantt charts and basic project management
principle were developed in the 19th Century
• The traditional way of project management is called ‘waterfall’,
little flexibility at times
Requirements
Specification
Design
Implementation
No way back!
10

11. ‘be flexible’
11

12. Why use a project management method?
• Project failure are all too common
Year Company Cost Outcome
2010 Lumber Liquidators £9 million Insufficient training of personnel on new SAP implementation resulted in
lost sales.
2010 Virgin Airlines (Australia) £13 million Cloud hosting failure disrupted travel for 50,000 customers.
2010 EDS £296 million Fine paid to settle lawsuit over a failed CRM project for British Sky
Broadcasting.
2007 Deloitte £26 million Poor requirements gathering and testing of LAUSD payroll system caused
overruns.
2005 Hudson Bay Co. [Canada] £21.5 million Problems with inventory system led to loss.
2005 UK Inland Revenue £2.15 billion Software errors contributed to tax-credit overpayment.
2004 Avis Europe PLC [UK] £35 million Enterprise resource planning (ERP) system cancelled.
2004 J Sainsbury PLC [UK] £340 million Supply-chain management system abandoned after deployment.
1994 Eurotunnel £7.34 billion The project of Channel Tunnel came in over its predicted budget.
1993 London Stock Exchange [UK] £386 million Taurus stock settlement system cancelled after 10 years of development.
1993 London Ambulance Service [UK] £16 million First attempt to build dispatch system cancelled; second abandoned after
deployment.

13. Why use a project management method?
• Project failure - some causes
– Insufficient attention to checking a valid business case exist for the project.
– Insufficient attention to quality at the outset and during development.
– Insufficient definition of the required outcomes, leading to confusion over
what the project is expected to achieve.
– Lack of communication with stakeholders and interested parties, leading to
products being delivered that are not what the customer wanted.
– Inadequate definition and lack of acceptance of project management roles
and responsibilities, leading to lack of direction and poor decision making.
– Poor estimation of duration and costs, leading to project taking more time
and costing more money than expected.
– Inadequate planning and co-ordination of resources, leading to poor
scheduling.
– Insufficient measurables and lack of control over progress, so that projects
do not reveal their exact status until too late.
– Lack of quality control, resulting in the delivery of products that are
unacceptable or unusable.

14. Breakdown into Work Packages
• Consider small work packages, that build to the final
requirements
14

15. Satisfy the customer
through early and
continuous delivery
Don’t be afraid to deliver to customers quickly even
if it mean living without a full roadmap
15

16. Terminology
• Business Case is used to define the information that justifies
the setting up, continuation or termination of the project - it
answers the question: ‘Why should this project be done?’ it is
updated at key points throughout the project
• Customer is used to represent the person or group who has
commissioned the work and will be benefiting from the end
result
• Product is used to describe everything that the project has to
create or change, however physical or otherwise this may be.
Results of projects can vary enormously from physical items,
such as buildings and machinery, to intangible things such as
culture change and public perception.
16

17. Terminology
• Programme is a collection of projects that together achieve a
beneficial change for an organisation.
• Supplier is used to mean the group that is providing
specialist resources and skills to the project or is providing
goods and services to create the project outcome required by
the customer and user(s).
• User is defined as the person or group who will use or operate
the final product. In some situations, the customer and user
may be the same group of people.
17

18. What is Contract Management
Used in Procurement or Purchasing departments
As part of the department’s responsibilities, the manager of the
department usually negotiates, accepts, and signs contracts
with suppliers of goods and services to the organisation.
Contract management is the process of ensuring that the
supplier honours their negotiated contract terms.
Although the role of procurement in the negotiation process is
an essential part of a cost management process, contract
management is where the actual savings are either achieved or
missed.
18

19. WHAT IS
What is Project Management A P R O JE
CT?
• A Project is a finite process with a definite start and
end
• Projects should:
–focus on business justification
–define an organisational structure
–use a product based planning approach
–be divided into manageable, controllable stages
–be flexible to be able to be applied to the scale of
the project / investment
19

20. WHAT IS
What is Project Management A P R O JE
CT?
• Projects should therefore, have the following:
–A finite and defined life cycle
–Defined and measurable business products
–A corresponding set of activities to achieve the
business products
–A defined amount of resources
–An organisation structure, with defined
responsibilities, to manage the project.
20

21. What is the Project life span?
Idea
Study (Research)
WBL3 Trigger
Specify
Design Product
Project life span Develop life
Test span
Change over
Assess value
Use
Scrap
21

22. Project life span
Clear Start
Project ‘Board’ Meeting 1
Stage 1
Project ‘Board’ Meeting 2
Stage 2
Project ‘Board’ Meeting 3
Communication
Stage 3
Project ‘Board’ Meeting 4
Stage 4
Project ‘Board’ Meeting 5
Stage 5
Project ‘Board’ Meeting 6
Stage 6
Project ‘Board’ Meeting 7
Clear End

23. Processes
THE BASICS
Monitoring
Initiating Planning Executing and Closing
Controlling
23

24. Processes
Start up
Initiating Stage Control
‘Product’
Closing
Delivery
Stage Management
Planning
(Work Packages)
24

25. Processes
Start up
Initiating Stage Control
‘Product’
Closing
Delivery
Stage Management
Planning
(Work Packages)
25

26. Knowledge
THE BASICS
Integration Scope Time
Cost Quality Procurement
Human Management
Communication
Resources of Risk
26

27. The Components
Business Case Organisation
Controls Plans
Configuration
Change control
Management
Quality in a
Management
project
environment of Risk
27

28. The Components
Different methodologies mapped
PMBOK® Knowledge Area Comparable PRINCE2™ Components
Integration Combined Processes and
Components, Change Control
Scope, Time, Cost Plans, Business Case
Quality Quality, Configuration Management
Risk Risk
Communications Controls
Human Resources Organisation
Procurement Not Covered
PMBOK® - see - A guide to the Project Management Body of Knowledge, 2008, Project Management Institute, ISBN 978-1-933890-51-7
PRINCE2™ - see - PRojects IN Controlled Environments 2, Managing Successful project with PRINCE2, 2009, OGC, ISBN 978-0-11-331059-3
28

29. Common Glossary EXAM
Models Guides
PLE
Refresh pending
Portfolio,
Programme
Portfolio, and Project Gateway® M_O_R® ITIL®
Programme and Office
Project (P3O®)
Management
Maturity Model
(P3M3TM)
Portfolio Guide (PfM)
PRINCE2 TM TM
Maturity Model MSP (programme)
(P2MM)
TM
PRINCE2 (Project)
29

30. The Different Methodologies
Service Management – ITIL®
ITIL is the most widely accepted approach to IT service management in the world. Providing a
cohesive set of best practice guidance drawn from the public and private sectors across the world, it
has recently undergone a major and important refresh project.
IT Service Management (ITSM) derives enormous benefits from a best practice approach. Because
ITSM is driven both by technology and the huge range of organisational environments in which it
operates, it is in a state of constant evolution. Best practice, based on expert advice and input from
ITIL users is both current and practical, combining the latest thinking with sound, common sense
guidance.
ITIL Users
ITIL has been adopted by hundreds of organisations worldwide. These include:
• Microsoft
• IBM
• Barclays Bank
• HSBC
• Guinness
• Procter & Gamble
• British Airways
• Ministry of Defence
• Hewlett Packard
• NASA
• Disney
30

31. The Different Methodologies
Project Management – PRINCE2
PRINCE® (Projects in Controlled Environments), is a widely used project management method that
navigates you through all the essentials for running a successful project. Since its introduction in 1989 as a
UK government standard for IT project management, PRINCE has been taken on by both the public and
commercial sectors and is now recognised as a de facto standard for project management. PRINCE is a
flexible method and although originally designed for the management of IT projects is now aimed at all
other types of projects too.
The latest version of the PRINCE method is PRINCE2 which was driven by user based improvements,
project management specialists and a review panel of 150 public and private sector organisations. This
end result is a generic best practice tool which is flexible enough to be tailored to your organisation and
used successfully for all types of projects.
How does PRINCE2 work?
The PRINCE2 series consists of a range of linked publications covering everything from business benefits
to people issues. Along with all other OGC guidance, they share a common vocabulary and way of
approaching projects.
Who uses PRINCE2?
PRINCE2 has been adopted by hundreds of organisations worldwide. Equally applicable to large and
small organisations in the public and private sectors, clients include:
• Barclays
• British Telecom
• GlaxoSmithKline
• Ministry of Defence
31

32. The Different Methodologies
Programme Management – Managing Successful Programme - MSP
Large, complex deliveries are often broken down into manageable, inter-related
projects. For those managing this overall delivery the principles of programme
management are key to delivering on time and within budget. MSP offers best-
practice guidance to all organisations - large or small, public or private sector - to
help them achieve successful outcomes from programme management, time and
time again. MSP has been developed to help achieve excellence by improving
practices, offering better services and preparing more effectively for the future.
Who uses MSP?
MSP has been adopted by hundreds of organisations worldwide. Equally
applicable to large and small organisations in the public and private sectors,
clients include:
• Barclays
• British Telecom
• GlaxoSmithKline
• Ministry of Defence
32

33. The Different Methodologies
Risk Management – Management of Risk (M_o_R)
M_o_R: How it works
In organisations almost every decision has an upside and a downside involving some degree of risk. Aimed at
everyone who has ever made an important decision, M_o_R is a robust yet flexible framework that allows
organisations to assess risk accurately time and time again.
How M_o_R works
M_o_R is a route map for risk management, bringing together principles, an approach, a set of interrelated
processes, and pointers to more detailed sources of advice on risk management techniques and specialisms. It
also provides advice on how these principles, approach, and processes should be embedded, reviewed and
applied differently depending on the nature of the objectives at risk.
M_o_R shows how risks can be:
• Identified
• Assessed
• Controlled.
Only in recent years have organisations begun to recognise that risk management – in its broadest sense – can be
applied to both negative threats and positive opportunities.
Who uses M_o_R?
MoR has been adopted by hundreds of organisations worldwide. Equally applicable to large and small
organisations in the public and private sectors, clients include:
• British Telecom
• GlaxoSmithKline
• Ministry of Defence
33

34. TASK
There are many other
methodologies investigate
these

35. The Techniques
• Very few techniques are usually offered by different Project
Management methodologies, however one that is useful to
follow is a product based start to the planning activity, this
involves:
– Establishing what products are needed
– Defining the form and content of each product
– Determining the sequence in which each product should be
produced.
35

36. TASK
What products do you have
within your project?

37. Overview of Project
Management processes
37

38. Controls Quality
Management of Risk
Starting a Organisation
Business Case
Project
Plans
Quality
Initiating a Management of Risk
Project Business Case
Controls
Configuration Management
Change Control
Controlling a
Stage
Controls
Change Control
Configuration Management
Business Case
Planning
Management of Risk
Quality review Change control Quality
Directing a
Project Change Control
Quality
Controls
Managing Plans
Management of Risk
‘Product’
Delivery Plans
Quality
Business Case
Managing Management of Risk
Controls
a Stage Organisation
Boundary
Controls
Configuration Management
Business Case Product
Closing a Management of Risk based
Project Change Control planning
38
Process Component Techniques

39. Delivery Management Direction Corporate or programme

40. Project
Corporate or programme
mandate
Direction
Management
Delivery

41. Project
Corporate or programme
mandate
Direction
Starting
up a
Project
Management
Delivery

42. Project
Corporate or programme
mandate
Direction
Starting
Request to
up a initiate a project
Project
Management
Delivery

43. Project
Corporate or programme
mandate
Directing a Project
Direction
Starting
Request to
up a initiate a project
Project
Management
Delivery

44. Project
Corporate or programme
mandate
Initiation
notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to
up a initiate a project
Project
Management
Delivery

45. Project
Corporate or programme
mandate
Initiation
notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to
up a initiate a project
Project
Management
Initiating
a Project
Delivery

46. Project
Corporate or programme
mandate
Initiation
notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to Request to
up a initiate a project deliver a project
Project
Management
Initiating
a Project
Delivery

47. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to Request to
up a initiate a project deliver a project
Project
Management
Initiating
a Project
Delivery

48. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to Request to
up a initiate a project deliver a project
Project
Management
Initiating
a Project
Controlling a Stage
Delivery

49. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to Request to
up a initiate a project deliver a project
Project
Management
Initiating
a Project
Stage boundary
approaching
Controlling a Stage
Delivery

50. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to Request to
up a initiate a project deliver a project
Project
Management
Initiating
a Project
Stage boundary
approaching
Controlling a Stage
Authority to deliver
a Work Package
Delivery
Managing ‘Product’ Delivery

51. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to Request to
up a initiate a project deliver a project
Project
Management
Initiating
a Project
Stage boundary
approaching
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

52. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to Request to
up a initiate a project deliver a project
Project
Management
Initiating Managing a
a Project Stage Boundary
Stage boundary
approaching
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

53. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Authority to
initiate a project
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Stage boundary
approaching
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

54. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Stage
Authorisation
Authority to
initiate a project
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Stage boundary
approaching
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

55. Project
Corporate or programme
mandate
Initiation Project authorisation
notification notification
Directing a Project
Direction
Stage
Authorisation
Authority to
initiate a project
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Stage boundary Request for
approaching advice
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

56. Project
Corporate or programme
mandate
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to
initiate a project
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Stage boundary Request for
approaching advice
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

57. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to
initiate a project
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Stage boundary Request for
approaching advice
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

58. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to Project
initiate a project Board advice
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Stage boundary Request for
approaching advice
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

59. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to Project
initiate a project Board advice
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Exception
raised
Stage boundary Request for
approaching advice
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

60. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to Exception Project
initiate a project Plan request Board advice
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Exception
raised
Stage boundary Request for
approaching advice
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

61. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to Exception Project
initiate a project Plan request Board advice
Request to approve
Exception Plan
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Exception
raised
Stage boundary Request for
approaching advice
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

62. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to Exception Exception Plan Project
initiate a project Plan request approved Board advice
Request to approve
Exception Plan
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a
a Project Stage Boundary
Exception
raised
Stage boundary Request for
approaching advice
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

63. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to Exception Exception Plan Project Premature
initiate a project Plan request approved Board advice close
Request to approve
Exception Plan
Starting
Request to Request to Request to approve
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a Closing a
a Project Stage Boundary Project
Exception
raised
Stage boundary Request for Project end
approaching advice approaching
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

64. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board
notification notification request for advice
Directing a Project
Direction
Stage
Authorisation
Authority to Exception Exception Plan Project Premature
initiate a project Plan request approved Board advice close
Request to approve
Exception Plan
Starting Closure
Request to Request to Request to approve recommended
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a Closing a
a Project Stage Boundary Project
Exception
raised
Stage boundary Request for Project end
approaching advice approaching
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

65. Project Corporate advice
Corporate or programme
mandate and decisions
Initiation Project authorisation Project Board Closure
notification notification request for advice notification
Directing a Project
Direction
Stage
Authorisation
Authority to Exception Exception Plan Project Premature
initiate a project Plan request approved Board advice close
Request to approve
Exception Plan
Starting Closure
Request to Request to Request to approve recommended
up a initiate a project deliver a project next stage plan
Project
Management
Initiating Managing a Closing a
a Project Stage Boundary Project
Exception
raised
Stage boundary Request for Project end
approaching advice approaching
Controlling a Stage
Authority to deliver
a Work Package
Completed
Delivery
Work Package
Managing ‘Product’ Delivery

66. ‘Tailoring the methodologies to suit’
40

67. COMMUNICATION
41

68. COMMUNICATION
41

69. TASK
Consider your communication
techniques to all those involved
in your project