Advanced Construction Project Management
MSc program in Construction Technology and
Management
By:- Bahiru Bewket (PhD)
Assistant Professor
Course outline
1. Overview of Introduction
2. Principles of Project Management and
organizational structure
2.1 Organizational structure
2.2 Functions of Project Management
2.3 Roles of Project Managers
2.4 Levels of Management
3. Project Planning
4. Project Procurement and contractual management
5. Project management body of knowledge
5.1 Project Scope Management
5.2 Project process management
5.3 Project quality management
5.4 Project Stakeholder management
5.5 Project communication management
5.6 Project Change, Uncertainty and Risk Management
6. Project time management
7. Health and Safety in
Construction
8. Leadership in construction
Industry
9. Professional ethics in
construction Industry
REFERENCES
1. PMI–Bok (2004) Project Management Body of Knowledge 3rd Edition, Project Management Institute USA
2. J. R. Turner & S. J. Simister (2006) The Project Management Handbook, Gower Publishing Limited
3. David R. Pierce (2006) Project Scheduling and Management for Construction 3rd Edition,
4. PMI-Bok (2000) Construction Extension to the Project Management Body of Knowledge, Project Management Institute
USA
5. Denny McGeorge & Angela Palmer (1997) Construction Management: New directions, Blackwell science ltd.
6. Harold Kerzner (2006) Project Management: A systematic Approach to Planning, Scheduling and Controlling 9th
Edition, John Willey & Sons, Inc.
7. Gary R. Heerkens (2005) Project Management: 24 lessons to help you master any project, Tata McGraw-Hill
Publishing Company Limited
8. Roy Pilcher (1992) Principles of Construction Management 3rd Edition, McGraw-Hill International (UK) Limited
9. K K Chitkara (1998) Construction Project Management, Tata McGraw-Hill Publishing Company Limited
10. Fredric E. Gould & Nancy E. Joyce (2000) Construction Project Management, Prentice Hall, Inc.
11. Edward R. Fisk (2000) Construction Project Administration 6th Edition, Prentice Hall, Inc.
12. Books, Articles and others
Project
1. Performance Management (Relevance (Demand, Need); Efficiency
(Time, Cost, Quality), Effectiveness (Outcome) and Impact
2. Project process management (Core process, Administrative
process and Regulatory/statutory process)
3. Quality management
4. Project Risk management
5. Organizational management
6. Safety and Health management
7. Time management and scheduling practice
)
Chapter 1
Introduction to project, Construction
Project management body of knowledge
and about Overview of CI
1. Introduction
A project is a series of activities(Group of tasks) aimed at bringing
about clearly specified objectives within a defined
 Time-period
 Project budget.
It has specific set of objectives and characteristics.
 It is likely to be a one-time program.
 It has a life cycle, with a specific start and end.
 It has a work scope that can be categorized into define tasks.
 It has a start and end period with specific budget
A routine work is different from a project.
The same activity can be a project or a routine work, depending on
the setting
Types of project
• Manufacturing – involving for example a piece
of equipment or machinery
• Construction – putting up buildings, structures or
other appurtenances
• Management projects – e.g. office relocation,
recruitment of new employees, installation of a
new IT system or projects not covered under 1
and 2 above
• Research projects – aimed at the acquisition of
new data or expanding the existing range of
knowledge
Some characteristics of projects
–They are novel (need for integration)
–They are transient (urgency)
–They are also unique (risk and uncertainty)
• Projects and project management are thus
defined by
–the triplex of transience, novelty and
uniqueness and
–the related triplex of urgency, integration and
uncertainty.
• Project plans need to be phased, flexible and
goal-directed.
Project Management:
Is the application of various knowledge, skills and techniques
on projects to ensure both the pre determined objectives and
the intended purpose of the larger business to met.
Is accomplished through 5 major process groups: Initiating,
Planning, Executing, Monitoring & Evaluation, and Closing.
Includes:
 Identifying, Recognizing and Articulating
Needs/requirements
 Considering Stakeholders concerns, expectations, etc
 Dealing with the following six competing constraints:
Scope, Quality, Schedule, Budget, Resources and Risk.
• Project management is not a new concept, but it
has emerged since the Second World War as a
methodology that can be applied to intensive
periods of work with a specific objective, which
can be isolated from general management so
that
–expenditure can be ring fenced and
–the synergy of a team is engaged.
• Construction work particularly lends itself to
project management because of the temporary
and unique nature of the work.
Construction Projects: Main features
1. Predetermined Objectives
 Components of a certain business
 Often the first phase
2. Constrained Schemes
 Schedule, Budget, Resources and Results / Scope Constraints
3. Too Fragmented
 In processes,
 In financial sources, and
 In responsible bodies
4. Investment
 Accelerates economic growth of a nation
 Cost Extensive, and
 Slow & Low business return on investment
5. Human Resources
 Involves large number
6. Construction Equipment
 Short life time, and
 Highly cost extensive both to own and increase their life time
7. Reports and Monitoring disparity
 Exhibits Financial & Engineering Reports disparity during
implementations unless committed and compensation events are not
clearly considered
Objectives of Construction Management
The main objectives of the construction management team
should include:
 Project completion within the allocated budget and duration,
 Ensure that the production of construction works satisfy the
client’s functional requirements,
 Construction to specified standards,
 Provision of safe and satisfactory working condition.
Accordingly, construction project management may be
defined as the overall control of the total management
process to optimize the basic attributes of the process:
Quality, Schedule and Cost.
Functions of Construction Management
The functions of construction management are:
Planning, Organizing, Staffing, Motivating,
Communication, Measuring (Correcting), and
Coordinating.
Project, Program & Portfolio Management
Portfolio
Program
Projects
• Collection of Programs/Projects for an overall business objectives
• Component of the Strategic goals of the Organization
• Focus on identifying, prioritizing, authorizing, managing and
controlling of Programs / Projects to achieve specific business
objectives; and Resources allocation
• Group of related projects for a common outcome or collective
ability
• Focus on project interdependencies in order to determine the
optimal approach
• Resolving resources constraints, Aligning different levels and types
of objectives and Change Management
• Pre-determined objectives
• Means to satisfy program / portfolio objectives
• Focus on identifying, prioritizing, authorizing, managing and
controlling of Programs / Projects to achieve specific business
objectives
Projects and Strategic Planning
 Projects are often utilized as a means of achieving an organization's
strategic plan.
 Projects are typically authorized as a result of one or more of the
following strategic considerations:
• Market demand,
• Strategic Opportunity,
• Customer requirement,
• Technological advancement, and
• Regulatory or Legal Requirements.
 Projects, within programs or portfolios, are a means of achieving
organizational goals and objectives as part of its Strategic Plan
Project Life Cycle / Phases
 The Four Structure of Project Life Cycle / Phases
• Starting the Project,
• Organizing and Preparing,
• Implementing the Project, and
• Closing the Project.
Starting
the Project
Organizing
and Preparing
Implementing
the
Project
Closing the
Project
Project
Charter
Project Management
Plan or Documents
Cost
&
Staffing
Level
Project Acceptance
or Deliverables
Lesson
Learned
Time
Project
Outcomes
Project Management Process Groups
Fig. Single phase project life cycle
Monitoring
and
Controlling
Initiating Planning Executing Closing
The Project Management Body of Knowledge
Project Integration
Management
Project
Resources
Management
Project
Environment,
Health & Safety
Management
Project
Constraints
Management
Project
Procurement &
Contract
Management
PM BOK
 1. Introduction
 2. Organizational influences & Project life cycle
 3. Project Management processes
 4. Project integration management
 5. Project scope management
 6. Project time management
 7. Project Cost Management
 8. Project Quality Management
 9. Project human resource management
 10. Project Communications Management
 11. Project Risk Management
 12. Project Procurement Management
 13. Project Stakeholder Management
1. Project Procurement & Contract Management involves:
Procurement & Contract Governance System (ServicesVs
Works)
• Construction Law
• Delivery System
• Contracting Method
• Procurement Method
• Contract Type
Procurement and Contract Management Planning
• Establishing Procurement Team
• Deciding Proc & Cont Governance Structure
22
2. Project Constraints Management
Project Time Management involves
• the management of Activities and Resources Dependencies
• PTM processes:
• Define Activities
• Sequence Activities
• Estimate Activities Resources
• Estimate Activities Durations
• Develop Schedule
• Monitor and Evaluate Schedule
• Refer PM BoK / DCE’s CW+RPs
• Critical Path Method Vs PERT Vs Critical Chain Method
• MS Project / Primavera
23
Project Cost Management involves
• Cost Estimating, Budgeting and Controlling Costs
• Budget and Cash Flow Management
• PCM processes
• Activities Definition
• Define Measuring Units and Cost Coverage
• Estimate Activities Resources
• Define Crews and CBS
• Determine Resources Basic Prices
• Estimate Activity Costs
• Develop Cash Flows and Budget
• Monitor and Evaluate Costs
• Cost Estimate Vs Project Cycle / Phases
• Refer Cost Estimating Slides and Cases
24
Project Quality Management involves
• Define & Plan Quality Requirements,
• Perform Quality Assurance & Control Services
• Project (as temporary organization) Management
• Product Quality Management
• Refer PMBoK
25
3. Project Resources Management
Project Financial Management
• Involves the management of Project finance
• Project Finance involves Project cash flow & liquidity
management
• Determine Organization and Project healthiness using Balance
sheet, Income Statement and Financial ratios
Project Human Resources Management involves
• the management of Project personnel and Labor workmanship
and productivities
• Develop HR plan and Acquire, Manage and Develop Project
team
• Develop LBS, Define and Control Productivities and
Workmanship requirements
26
Project Materials Management involves
• the management of Materials Quality, Procurement &
Handling
• Develop MBS, Define and Control material quality
Project Machineries and Plants Management involves
• the management of Machineries and Plants access,
installations, calibrations, productivities, costs and
maintenance
27
4. Project Environment, Health and Safety Management
Project Environment involves
• Environment Impact Assessment, Resettlement Action Plan
and Fire Protection; and their Implementation and Control
Project Health involves
• Identifying health hazard work methods, chemicals, working
environments; Develop, Implement and Control preventive
methods
Project Safety involves
• Identifying accident prone activities; Develop, Implement and
Control preventive methods
28
5. Project Integration Management
Project Portfolio Management / Project - Parent Relationships
Management
• the management of Organizational relationships and
authorities; and Resources Allocations among Programs and
Projects
• Develop Organizational Breakdown Structures (OBS),
Implement and Control OBS
Project Communication Management
• the management of Project Management Information System
(PMIS)
• Plan communication requirements, Develop communication
mechanisms, Implement and Control Communications
29
Project Uncertainty and Change Management
• Project Risk Management
• Plan Risk Management, Identify Risks, Perform Risk Analysis
(Qualitative and / or Quantitative), Develop and Plan Risk
Responses (Scenario Management), Monitor and Control Risks
• Project Configuration / Changes / Alterations Management
• Develop and Plan Changes Management, Monitor and Control
Changes and Consequential Impacts
• Includes Requirement Changes Management, Project
Completion Time and Project Cost Variations Adjustment
System
• Project Claim and Dispute Management
• Develop and Plan Claim and Dispute Management, Monitor
and Control Claims and Disputes including their
Consequential Impacts
30
 All civil works such as buildings, roads, water works, hydro-
power works, etc., can be grouped under the industry termed as
Construction Industry.
 The construction industry as an industry encompasses many
firms under it. These firms include: Designers, Contract
Administrators, often collectively called Consultants, Contractors,
Construction materials producing factories, etc.
 Generally, Construction Industry can be categorized into three
major sectors:
Transport and Communication (Road, Railway, Airway, and
Telecommunication related physical works);
Water Works and Energy; and
Buildings and Other Physical Infrastructures.
 Their capital budget requirements vary extensively depending on
the focus the economical trend requires for the nation’s
development.
4. Overview of the Construction Industry
31
 The construction industry is one of the most important contributors
for the
Politico - Legal,
Economical,
Socio - Cultural and
Technological development of any country.
 The construction industry is one among few multisectoral
components that plays important role in developing countries.
 Considering the allocated budget every fiscal year and the number
of workmen involved, construction industry is second only to
agriculture in Ethiopia.
32
 The construction business furnishes capital improvements to
countries.
 In addition to this, the fact that construction works being a team
work output, the individuals involved in carrying out the works
and their separate outputs is given the highest importance.
 Hence, workers in the construction industry shall be highly
motivated and well skilled.
 However, the individuals shall be geared to focus on the group
coordination and its output.

Chapter 1-Project and Construction project.pptx

  • 1.
    Advanced Construction ProjectManagement MSc program in Construction Technology and Management By:- Bahiru Bewket (PhD) Assistant Professor
  • 2.
    Course outline 1. Overviewof Introduction 2. Principles of Project Management and organizational structure 2.1 Organizational structure 2.2 Functions of Project Management 2.3 Roles of Project Managers 2.4 Levels of Management 3. Project Planning 4. Project Procurement and contractual management 5. Project management body of knowledge 5.1 Project Scope Management 5.2 Project process management 5.3 Project quality management 5.4 Project Stakeholder management 5.5 Project communication management 5.6 Project Change, Uncertainty and Risk Management 6. Project time management 7. Health and Safety in Construction 8. Leadership in construction Industry 9. Professional ethics in construction Industry
  • 3.
    REFERENCES 1. PMI–Bok (2004)Project Management Body of Knowledge 3rd Edition, Project Management Institute USA 2. J. R. Turner & S. J. Simister (2006) The Project Management Handbook, Gower Publishing Limited 3. David R. Pierce (2006) Project Scheduling and Management for Construction 3rd Edition, 4. PMI-Bok (2000) Construction Extension to the Project Management Body of Knowledge, Project Management Institute USA 5. Denny McGeorge & Angela Palmer (1997) Construction Management: New directions, Blackwell science ltd. 6. Harold Kerzner (2006) Project Management: A systematic Approach to Planning, Scheduling and Controlling 9th Edition, John Willey & Sons, Inc. 7. Gary R. Heerkens (2005) Project Management: 24 lessons to help you master any project, Tata McGraw-Hill Publishing Company Limited 8. Roy Pilcher (1992) Principles of Construction Management 3rd Edition, McGraw-Hill International (UK) Limited 9. K K Chitkara (1998) Construction Project Management, Tata McGraw-Hill Publishing Company Limited 10. Fredric E. Gould & Nancy E. Joyce (2000) Construction Project Management, Prentice Hall, Inc. 11. Edward R. Fisk (2000) Construction Project Administration 6th Edition, Prentice Hall, Inc. 12. Books, Articles and others
  • 4.
    Project 1. Performance Management(Relevance (Demand, Need); Efficiency (Time, Cost, Quality), Effectiveness (Outcome) and Impact 2. Project process management (Core process, Administrative process and Regulatory/statutory process) 3. Quality management 4. Project Risk management 5. Organizational management 6. Safety and Health management 7. Time management and scheduling practice
  • 5.
    ) Chapter 1 Introduction toproject, Construction Project management body of knowledge and about Overview of CI
  • 6.
    1. Introduction A projectis a series of activities(Group of tasks) aimed at bringing about clearly specified objectives within a defined  Time-period  Project budget. It has specific set of objectives and characteristics.  It is likely to be a one-time program.  It has a life cycle, with a specific start and end.  It has a work scope that can be categorized into define tasks.  It has a start and end period with specific budget A routine work is different from a project. The same activity can be a project or a routine work, depending on the setting
  • 7.
    Types of project •Manufacturing – involving for example a piece of equipment or machinery • Construction – putting up buildings, structures or other appurtenances • Management projects – e.g. office relocation, recruitment of new employees, installation of a new IT system or projects not covered under 1 and 2 above • Research projects – aimed at the acquisition of new data or expanding the existing range of knowledge
  • 8.
    Some characteristics ofprojects –They are novel (need for integration) –They are transient (urgency) –They are also unique (risk and uncertainty) • Projects and project management are thus defined by –the triplex of transience, novelty and uniqueness and –the related triplex of urgency, integration and uncertainty. • Project plans need to be phased, flexible and goal-directed.
  • 9.
    Project Management: Is theapplication of various knowledge, skills and techniques on projects to ensure both the pre determined objectives and the intended purpose of the larger business to met. Is accomplished through 5 major process groups: Initiating, Planning, Executing, Monitoring & Evaluation, and Closing. Includes:  Identifying, Recognizing and Articulating Needs/requirements  Considering Stakeholders concerns, expectations, etc  Dealing with the following six competing constraints: Scope, Quality, Schedule, Budget, Resources and Risk.
  • 10.
    • Project managementis not a new concept, but it has emerged since the Second World War as a methodology that can be applied to intensive periods of work with a specific objective, which can be isolated from general management so that –expenditure can be ring fenced and –the synergy of a team is engaged. • Construction work particularly lends itself to project management because of the temporary and unique nature of the work.
  • 11.
    Construction Projects: Mainfeatures 1. Predetermined Objectives  Components of a certain business  Often the first phase 2. Constrained Schemes  Schedule, Budget, Resources and Results / Scope Constraints 3. Too Fragmented  In processes,  In financial sources, and  In responsible bodies 4. Investment  Accelerates economic growth of a nation  Cost Extensive, and  Slow & Low business return on investment
  • 12.
    5. Human Resources Involves large number 6. Construction Equipment  Short life time, and  Highly cost extensive both to own and increase their life time 7. Reports and Monitoring disparity  Exhibits Financial & Engineering Reports disparity during implementations unless committed and compensation events are not clearly considered
  • 13.
    Objectives of ConstructionManagement The main objectives of the construction management team should include:  Project completion within the allocated budget and duration,  Ensure that the production of construction works satisfy the client’s functional requirements,  Construction to specified standards,  Provision of safe and satisfactory working condition. Accordingly, construction project management may be defined as the overall control of the total management process to optimize the basic attributes of the process: Quality, Schedule and Cost.
  • 14.
    Functions of ConstructionManagement The functions of construction management are: Planning, Organizing, Staffing, Motivating, Communication, Measuring (Correcting), and Coordinating.
  • 15.
    Project, Program &Portfolio Management Portfolio Program Projects • Collection of Programs/Projects for an overall business objectives • Component of the Strategic goals of the Organization • Focus on identifying, prioritizing, authorizing, managing and controlling of Programs / Projects to achieve specific business objectives; and Resources allocation • Group of related projects for a common outcome or collective ability • Focus on project interdependencies in order to determine the optimal approach • Resolving resources constraints, Aligning different levels and types of objectives and Change Management • Pre-determined objectives • Means to satisfy program / portfolio objectives • Focus on identifying, prioritizing, authorizing, managing and controlling of Programs / Projects to achieve specific business objectives
  • 16.
    Projects and StrategicPlanning  Projects are often utilized as a means of achieving an organization's strategic plan.  Projects are typically authorized as a result of one or more of the following strategic considerations: • Market demand, • Strategic Opportunity, • Customer requirement, • Technological advancement, and • Regulatory or Legal Requirements.  Projects, within programs or portfolios, are a means of achieving organizational goals and objectives as part of its Strategic Plan
  • 17.
    Project Life Cycle/ Phases  The Four Structure of Project Life Cycle / Phases • Starting the Project, • Organizing and Preparing, • Implementing the Project, and • Closing the Project. Starting the Project Organizing and Preparing Implementing the Project Closing the Project Project Charter Project Management Plan or Documents Cost & Staffing Level Project Acceptance or Deliverables Lesson Learned Time Project Outcomes
  • 18.
    Project Management ProcessGroups Fig. Single phase project life cycle Monitoring and Controlling Initiating Planning Executing Closing
  • 19.
    The Project ManagementBody of Knowledge Project Integration Management Project Resources Management Project Environment, Health & Safety Management Project Constraints Management Project Procurement & Contract Management PM BOK
  • 20.
     1. Introduction 2. Organizational influences & Project life cycle  3. Project Management processes  4. Project integration management  5. Project scope management  6. Project time management  7. Project Cost Management  8. Project Quality Management  9. Project human resource management  10. Project Communications Management  11. Project Risk Management  12. Project Procurement Management  13. Project Stakeholder Management
  • 21.
    1. Project Procurement& Contract Management involves: Procurement & Contract Governance System (ServicesVs Works) • Construction Law • Delivery System • Contracting Method • Procurement Method • Contract Type Procurement and Contract Management Planning • Establishing Procurement Team • Deciding Proc & Cont Governance Structure
  • 22.
    22 2. Project ConstraintsManagement Project Time Management involves • the management of Activities and Resources Dependencies • PTM processes: • Define Activities • Sequence Activities • Estimate Activities Resources • Estimate Activities Durations • Develop Schedule • Monitor and Evaluate Schedule • Refer PM BoK / DCE’s CW+RPs • Critical Path Method Vs PERT Vs Critical Chain Method • MS Project / Primavera
  • 23.
    23 Project Cost Managementinvolves • Cost Estimating, Budgeting and Controlling Costs • Budget and Cash Flow Management • PCM processes • Activities Definition • Define Measuring Units and Cost Coverage • Estimate Activities Resources • Define Crews and CBS • Determine Resources Basic Prices • Estimate Activity Costs • Develop Cash Flows and Budget • Monitor and Evaluate Costs • Cost Estimate Vs Project Cycle / Phases • Refer Cost Estimating Slides and Cases
  • 24.
    24 Project Quality Managementinvolves • Define & Plan Quality Requirements, • Perform Quality Assurance & Control Services • Project (as temporary organization) Management • Product Quality Management • Refer PMBoK
  • 25.
    25 3. Project ResourcesManagement Project Financial Management • Involves the management of Project finance • Project Finance involves Project cash flow & liquidity management • Determine Organization and Project healthiness using Balance sheet, Income Statement and Financial ratios Project Human Resources Management involves • the management of Project personnel and Labor workmanship and productivities • Develop HR plan and Acquire, Manage and Develop Project team • Develop LBS, Define and Control Productivities and Workmanship requirements
  • 26.
    26 Project Materials Managementinvolves • the management of Materials Quality, Procurement & Handling • Develop MBS, Define and Control material quality Project Machineries and Plants Management involves • the management of Machineries and Plants access, installations, calibrations, productivities, costs and maintenance
  • 27.
    27 4. Project Environment,Health and Safety Management Project Environment involves • Environment Impact Assessment, Resettlement Action Plan and Fire Protection; and their Implementation and Control Project Health involves • Identifying health hazard work methods, chemicals, working environments; Develop, Implement and Control preventive methods Project Safety involves • Identifying accident prone activities; Develop, Implement and Control preventive methods
  • 28.
    28 5. Project IntegrationManagement Project Portfolio Management / Project - Parent Relationships Management • the management of Organizational relationships and authorities; and Resources Allocations among Programs and Projects • Develop Organizational Breakdown Structures (OBS), Implement and Control OBS Project Communication Management • the management of Project Management Information System (PMIS) • Plan communication requirements, Develop communication mechanisms, Implement and Control Communications
  • 29.
    29 Project Uncertainty andChange Management • Project Risk Management • Plan Risk Management, Identify Risks, Perform Risk Analysis (Qualitative and / or Quantitative), Develop and Plan Risk Responses (Scenario Management), Monitor and Control Risks • Project Configuration / Changes / Alterations Management • Develop and Plan Changes Management, Monitor and Control Changes and Consequential Impacts • Includes Requirement Changes Management, Project Completion Time and Project Cost Variations Adjustment System • Project Claim and Dispute Management • Develop and Plan Claim and Dispute Management, Monitor and Control Claims and Disputes including their Consequential Impacts
  • 30.
    30  All civilworks such as buildings, roads, water works, hydro- power works, etc., can be grouped under the industry termed as Construction Industry.  The construction industry as an industry encompasses many firms under it. These firms include: Designers, Contract Administrators, often collectively called Consultants, Contractors, Construction materials producing factories, etc.  Generally, Construction Industry can be categorized into three major sectors: Transport and Communication (Road, Railway, Airway, and Telecommunication related physical works); Water Works and Energy; and Buildings and Other Physical Infrastructures.  Their capital budget requirements vary extensively depending on the focus the economical trend requires for the nation’s development. 4. Overview of the Construction Industry
  • 31.
    31  The constructionindustry is one of the most important contributors for the Politico - Legal, Economical, Socio - Cultural and Technological development of any country.  The construction industry is one among few multisectoral components that plays important role in developing countries.  Considering the allocated budget every fiscal year and the number of workmen involved, construction industry is second only to agriculture in Ethiopia.
  • 32.
    32  The constructionbusiness furnishes capital improvements to countries.  In addition to this, the fact that construction works being a team work output, the individuals involved in carrying out the works and their separate outputs is given the highest importance.  Hence, workers in the construction industry shall be highly motivated and well skilled.  However, the individuals shall be geared to focus on the group coordination and its output.