1. Construction project management involves planning, implementing, and controlling construction projects to deliver them on time, within budget, and according to specifications. 2. The key functions of management in projects are planning, organizing, implementing, and monitoring. Planning involves setting goals and strategies, organizing is arranging resources, implementing is executing the work, and monitoring checks progress against plans. 3. Projects are temporary endeavors with a defined start and end, undertaken to create unique products, services, or results. They have objectives to fulfill and deliverables to produce.

1. Welcome
By
Dr. (Eng.) Tsegaye G.
Advance Construction Project Management [CoTM –521]
Department of Construction Technology and Management
Faculty of Civil Technology
TVTI
Semester I
2021/2022

2. Construction Project Management
Chapter 1
General Introduction
Lecture # 1

3. What is CI?
 Construction is a process that consists of the building,
assembling or maintaining of infrastructure/structure.
 Construction Industry is an industry with highly custom
oriented that has unique of Product, especial organization
structure, and complex nature.
 The construction industry encompasses many firms under
it. These firms include Client, Designers and Contract
Administrators, often collectively called Consultants,
Contractors, Construction materials producing factories and

4. What is CI?
 The Construction Industry can be categorized into three
major sectors; namely, Transport and Communication
(Road, Railway, Airway, and Telecommunication related
physical works); Water Works and Energy; and Buildings
and Other Physical Infrastructures. In addition, it can
categorize as vertical and horizontal construction.

5. What is Management?
The construction industry is an important sector that
required planning, implementing, and controlling to
achieve goals in effective (Delivery in terms of cost, time,
and quality as per specification) and efficient
(Achievement of the common goal) which is called
construction management.
It is the concept of management is the way of governing
the activity and resources in the construction industry.

6. What is Management?
Management is the art of arranging and/or organizing various
activities, operating equipment and group of people in a
suitable manner to create systematic operation with continuity to
achieve a common goal.
Management can express as the use of people and other
resources to accomplish objectives or creation of an
environment in which people can use resources to reach
stated goal.
It also involves the implementation of the function of
management: planning, organizing, implementing, and

7. Managers
The individual with responsibility for managing a project or
activity to achieve specific objectives.
The people responsible for supervising the use of
resources to meet its goals
Resources include people, skills, knowledge, materials,
machinery, computers or IT, and financial capital
Project managers often talk of a 'triple constraint'-project
scope, time and cost-in managing competing project
requirements (off course now changed to diamond).

8. Managers
 Project quality is affected and expressed by balancing
these three/four factors.
 High quality projects deliver the required product,
service or result within scope, on time, and within budget or
safely.
 The relationship among these factors is such that if any
one of the three factors changes, at least one other factor is
likely to be affected.

9. Managers
 Project managers also manage projects in response to
uncertainty.
 Project risk is an uncertain event or condition that, if it
occurs, has a positive or negative effect on at least one
project objective.

10. Management Functions
Four Functions of Management

11. Managerial Functions: PLANNING:
 Planning involves setting visions, missions, and goals of
organizations or projects or programs together with the
activities to achieve them.
 All levels of managers develop goals and strategy, that
requires operational plan aimed at administration and
coordination of Stakeholders, Processes, and Resources.
 Planning is beneficial to make better coordination, focuses on
forward thinking, creates participatory work environment
and good for effective monitoring and feedback systems.

12. Managerial Functions:
ORGANIZING:
 It is the process of arranging people and physical
resources to carryout plans and accomplishes
organizational objectives. This helps how
responsibilities of individuals who are required to
execute the works and staffing that directing the
performance. Such things can easily be shown by the
use of Organization Chart.
 Organization makes sure the flow of information, resources,
and tasks; logically and efficiently.
 Besides, the organization of sites or construction, together

13. Managerial Functions
 IMPLEMENTING:
It is the process of executing the planned work with
proper organization system together with monitoring
quality, time, and cost of the works.
Proper inspection and supervision, recording data of
executed works, availing all necessary resources at
the right place and at the right time with their proper
coordination to achieve the required goal efficiently
and successfully.
It is the most important aspect in implementation of works
is leading / directing. Leading is the act of motivating or
causing people to perform certain tasks intended to
achieve specified objectives. In general, it is the art of

14. Managerial Functions
 MONITORING:
Monitoring is the process of determine or evaluate whether
organizational objectives are being achieved and actual
operations are in consistent with plans or not.
It helps for checking mechanism and used as a feedback
for future planning. Such things are done against the
planned data with the help of communication in the form of
reporting, assessment, and checking mechanism of any kind,
which is suitable for the purpose of the executed works.

15. Management Skills
 The project manager should have basic management
skills including:
1. Good Decision Making
2. Competent Planning and Execution Plan
3. Creative Organizing
4. Realistic Delegation/participants
5. Follow Up on Delegation/participants
6. Effective Communication
7. Adequate Common Sense

16. Management Skills
 Managerial Skills can be categorized as Conceptual skills,
Human skills, and Technical skills.
 Conceptual skills: The ability to analyze and
diagnose a situation and distinguish between
cause and effect,
 Human skills: The ability to understand, alter, lead,
and control the behavior of other individuals and
groups,
 Technical skills: The specific knowledge and

17. Management Skills
The relation the Managerial Skills of Conceptual skills, Human
skills, and Technical skills with level of management.

18. Managerial Role
 The three primarily managerial roles: Interpersonal,
Informational and Decision Making Roles.
Interpersonal Roles (Figurehead, Leadership,
Liaison/connection)
These roles are related to formal authority base of managers.
 Roles related to ceremonial/official in nature.
 Roles related to ensuring achievement of goals.
 Roles related to communication with internal and
external stakeholders to develop favorable
relationships and networks.

19. Managerial Role
Informational Roles (Monitor, Disseminator and
Spokesperson)
These roles are related to availing sufficient information to
carryout jobs effectively. Because they are information
centers for information and communication source.
Roles related to scanning internal and external
environments of their organizations for selecting useful
information.
Roles related to sharing and distributing useful information
to employees.

20. Managerial Role
Decision Roles(Entrepreneur, Disturbance Handler,
Resources Allocator, and Negotiator)
These roles are related to processing information to reach
conclusions.
 Roles related to initiating new developments.
 Roles related to conflict resolution and problem
solving.
 Roles related to distribution and assignment of
different resources to projects.
 Roles related to win comparative & competitive

21. Managerial Role
 Besides, recent trends enlarged/expanded managerial
roles due to changed environments such as:
Globalization of markets
Increasing predominance of Entrepreneurial Firms
Growth in Service - based organizations
Increasing Diversity
New organizational Model
Increasing customer focus

22. Managerial Role
 The recent managerial has brought new competencies in
the managerial roles, these are:
 Effective Communicator;
 Team Player;
 Technology Master for information age;
 Problem Solver;
 Diplomat and politically astute/smart;
 Change Maker and
 Promoter of Empowerment and Delegators roles.

23. Managerial Scope and Level
 The relation between the classification and role of
managerial

24. What is Project
 Projects are handling mechanism of businesses (that’s
call it Management by Projects).
 A project is a temporary endeavor undertaken to create
a unique product, service, or result.
 Projects are undertaken to fulfill objectives by producing
deliverables. The objectives are defined as an outcome
toward:
 Which work is to be directed,
A strategic position to be attained,
A purpose to be achieved,
A result to be obtained,
A product to be produced, or

25. What is Project
 Projects are understood to be parts of the main business of
organizations with the following characteristics of Temporary,
Unique, and Complex.
1) Temporary means that every project has a definite
beginning and a definite end in constrained/controlled by
time, finance & other resources.
 Temporary does not necessarily mean short in duration;
many projects last for several years. In every case, however,
the duration of a project is finite/defined or projects are not

26. What is Project
 The end of the project is reached when one or more of
the following is true:
 The project's objectives have been achieved;
 The objectives will not or cannot be met;
 Funding is exhausted or no longer available for
allocation to the project;
 The need for the project no longer exists
 The human or physical resources are no longer
available; or
 The project is terminated for legal cause or

27. What is Project
 Projects are temporary, but their deliverables may exist
beyond the end of the project.
 Projects may produce deliverables of a social, economic,
material, or environmental nature. In addition, temporary does
not generally equally apply to the product, service or result
created by the project.
 Most projects are undertaken to create a lasting outcome.
 For example, a project to erect a national monument will
create a result expected to last centuries. Projects also may
often have intended and unintended social, economic and

28. What is Project
2) Unique, involving innovative characteristics;
 A unique product: can be either a component of another
item, an enhancement or correction to an item, or a new
end item in itself (e.g., the correction of a defect in an end
item);
 A product/artifact is produced or quantifiable of either an end
item in itself or a component item
 A unique service: is capability to perform a service (e.g., a
business function that supports production or distribution);

29. What is Project
 A unique result: such as an outcome or document (e.g., a
research project that develops knowledge that can be
used to determine whether a trend exists or a new
process will benefit society)
 3. Complex (if applicable), associated with size, variety,
handling difficulty, importance, urgency, changes or a
combination of two or more of them. It is also related to inter
relation of numerous activities involved.

30. What is Projects
Projects can involve one/single or many/multiple organizational
units, such as joint ventures and partnerships. Examples of
projects include, but are not limited to:
 Developing a new product or service
 Effecting a change in structure, staffing, or style of an
organization
 Designing a new transportation vehicle
 Developing or acquiring a new or modified information
system
 Constructing a building or facility
 Building a water system for a community
 Running a campaign for political office

31. What is Project
 Examples of projects are:
 Developing a new pharmaceutical compound for market,
 Expanding a tour guide service,
 Merging two organizations,
 Modifying a computer software program used in an
organization,
 Conducting research to develop a new manufacturing
process,

32. What is Project
 Three broad categories of projects can be identified with its
own characteristics:
 Manufacturing/product projects,
 External organizations Projects,
 Management projects
 Manufacturing projects: In this category projects involve the
following activities:
 Original design work,
 Prototype testing, if necessary,
 Manufacturing,
 Assembling, and
 Installation and commissioning.

33. What is Project
 External organizations projects: projects such as civil
engineering, construction, petrochemical, mining, etc;
which aims to establish buildings or operation plant on
required sites to establish external or supplementary
organization to the mother organization on these sites.
 Such projects need more attention to the problems of
communications and organization than the
manufacturing projects.

34. What is Project
Management projects:
 The employment/service of an external manager or
managing teams offering services to organizations:
 to ensure effective and efficient management system,
 to ensure efficient installation and start up of new
approaches,
 to follow projects of the above nature on behalf of
clients and / financiers, etc.

35. Construction Management
 Construction management is (a) coordinating workmen,
machinery and material at the right time,
(b)executing/implementing the project economically and
successfully and c) controlling the quality, time, cost, scope and
sequence of flow of construction activity in a well-planned and
organized manner is called Construction Management.
 Construction management is different from a steady state
Organization management that has a distinct beginning and a
distinct end while a steady state Organization runs

36. Construction Management
Needs of Construction Management:
Construction Management is necessary to insure/cover:
 The proper planning and organization of the works,
 The effective use of resources,
 The completion of works within estimated budget and time,
 The timely delivery and utilization of materials,
 The necessary quality assurance of the work,
 The proper usage of equipment and latest methods of
construction and technology,
 The building up high quality of workmanship,
 The controlling over the contract agreed upon and
specification,

37. Construction Management
 The motivation of people to work to their best and creating
an organization that works as a team,
 The taking of sound decisions at the lowest practical
management level through delegation of authorities,
 The proper communication and reporting of the works
executed,
 The provisions of safe and satisfactory working
conditions for all workers,
 The monitoring/supervising of the works to be executed
against planning,
 The proper sequence of flow of construction, and
 The proper coordination of the resources to create an

38. Construction Project Management
 Projects have inherently been part of the human activities
since civilization started. However, the practice of project
management as a science has an aged not more than
three to four decades.

39. Construction Project Management
 Researchers and theorists tried to suggest the reason for
emphasis on project management, in the last few decades
as:
 The need on getting things done on time and within budgets,
 To win the fierce/highly competition among organizations in
succeeding to get projects,
 Welfare/wellbeing and safety requirements,
 Performance and customer satisfaction relationships, and
 The new business development: Downsizing, Flattening,

40. Construction Project Management
 Construction projects have complicated activities and
highly resource consuming. The development and delivery
of construction project consists of several phases with wide
variety of skills and specialties to balance the key
constraints.
 The successive stages of construction projects starts from
initial to completion and occupation has important input of
the asynchronous areas and specialties such as financial
institutions, regulatory organizations, members of the public,
engineers, planners, architects, designers, accountants,
surveyors, lawyers, insurance companies, constructors,

41. Construction Project Management
 Construction project consisted of different
methods that involves a wide range of manpower,
materials and activities with predetermined and
sensitive pattern of individual criteria and restrictive
sequential relationships.
 Therefore, the primary purpose of construction
project management is to accomplish the
construction projects process.
 This is achieved by the systematic application of a
set of generic project-orientated management
principles.

42. Construction Project Management
 Construction project management is the application of
knowledge, skills, tools, and techniques to project activities to
meet project requirements.
 It accomplished through the application and integration of the
project management processes of initiating, planning,
executing, monitoring and controlling, and closing.
Managing a construction project includes:
 Identifying requirements
 Establishing clear and achievable objectives

43. Construction Project Management
 Balancing of quality, scope, time and cost
 The implementation of the specifications and plans.

44. Construction Project Management
 Construction Project Management is therefore to
coordinate and administer all components including the
technology and safety and health requirements in order
to successfully accomplish based on the five criteria of
performance:
 Relevance,
 Efficiency,
 Effectiveness,
 Utility/applicability,

45. Construction Project Management
 The construction project management have contributed the
two stages of management development:
 The traditional project management approach, and
 The new project management approach
 The Traditional Project Management Approach: It is worth to
credit the traditional project management system that helps to
achieve the goal. However, the changing environment
internally and externally gives rise to complex and an
uncertain situations that cause to see the pros and cons of the

46. Construction Project Management
 The system can easily be conceived in viewing through its
failures to adapt to the new situations.
 The problems in the traditional project management
system fall into three distinct items:
 Customer oriented related problems
 Fixed set of tool
 Consider project managers as primarily implementers

47. Construction Project Management
1. Its attention to the importance of customer satisfaction,
 In the traditional approach customer satisfaction is often
treated as an after thought.
 It focuses towards satisfying of the triple constraints: Time,
Budget, and Specification or Performance. The success
and failure are assessed against these three constraints.
 The general trend and acceptance in the traditional
approach that customer satisfaction can be fulfilled through
the third constraint – Specification.

48. Construction Project Management
However, practical experience showed that it failed to take
adequate account of customer needs and wants. This is
largely because specifications are created by experts who:
 Lack the skills and training to work with customers,
 Don’t understand the customers’ business,
 Design and build products based on personal interest
 Often drive on specification that will gain them the
admiration of their fellow experts.

49. Construction Project Management
 2, Its single minded focus on a fixed set of tools for dealing
with scheduling, budgeting, and resource allocation.
 The fact is that it is being single-minded in these fixed sets of
tools makes mastery of these tools are likely to be a good
project management approach.
 There is nothing wrong with tools mastery, but the problem
lies in their excessive concern leading to diversion of
attention from other matters such as motivating
employees, acquiring political skills and managing and

50. Construction Project Management
The reality is that projects seldom fail due to failure in using
these tools, but frequently for non-technical reasons:
 Lack of commitment on the part of the staff,
 Political gaffes, and
 The inability to communicate ideas effectively.
 Its narrow definition what it should be concerned with.
 Traditional project management often limits the project life
cycle to four phases: concept, planning, execution and close

51. Construction Project Management
 With this life cycle, the project team members can wash their
hands of the deliverables after it is handed over to the
customer; Which is the most practical problem for
construction activities in customer satisfaction.
 For customer satisfaction, the life cycle shall be extended to
include one more phase: Operation and Maintenance. This
way, the project team members are made to realize that their
job is not only to build but also to assure that it works in a
satisfactory way after it is delivered.

52. Construction Project Management
 3, Traditional project management view primarily
project managers as implementers. Such a limited
view of project managers is difficult to serve the
customer effectively.
 Often, project managers do not involve in all
decision making process, inception to operation
phase of projects rather it is handed over and
charged to do the job within the pre-determined

53. Construction Project Management
 The New Project Management Approach: The new project
management recognizes most of the traditional approaches are
still relevant to today’s changing environment. Therefore the
new approaches rather than establishing its own total frame of
assumptions, it aligned with the new business in the world.
These alignments fall into the three basic and central issues
of the new project management system. These are: project
management shall:
1. Customer satisfy oriented: Practice proved that the worst
kind of failure in project management is carrying out projects that

54. Construction Project Management
 It become more customer basis, If projects are carried out in
accordance with the needs and wants of the customer
 The main reason behind this is that it is the customers who
finally evaluate the deliverables while in operation or
before on the basis of the following compelling criteria and
 satisfying customers need towards receiving expected
products and services,
 increases the likelihood of repeat business,
 reputable chose to contract contractors and have strong

55. Construction Project Management
2. Explore the use of new management tools
 Unlike the traditional management besides the
primary tools of – scheduling, budgeting, and
allocating resources -, the tools in new project
management skills fall into two major groups: Hard
skills and Soft skills.
 The hard skills include the basics of contracting,
business finance, integrated cost-schedule control,
measuring work performance, monitoring quality, and
conducting risk analysis.
 The soft skills include negotiation, change
management, politically astute and understanding

56. Construction Project Management
3. Redefine the role of the project manager
Neither stable nor free from competition, today’s business
environment could not fulfill its intended purpose successfully
with the traditional approach thinking of project managers as
pure implementers. Therefore, there arises the need to
redefine the role of the project managers. This is literally:
Project managers input in project identification, preparation, appraisal/review and
negotiation and approval stages of the inception/beginning phase of the project cycle is
very necessary.
Besides project managers shall:
Become more customer focused, and
Empowered with the necessary authority to operate effectively.

57. Importance Project Management
 Project management is accomplished through the
appropriate application and integration of the project
management processes identified for the project.
 Project management enables organizations to execute
projects effectively and efficiently.
 Effective project management helps individuals, groups,
and public and private organizations to:
 Meet business objectives;
 Satisfy stakeholder expectations;

58. Importance Project Management
 Be more predictable;
 Increase chances of success;
 Deliver the right products at the right time;
 Resolve problems and issues;
 Respond to risks in a timely manner;
 Optimize the use of organizational resources;
 Identify, recover, or terminate failing projects;
 Manage constraints (e.g., scope, quality, schedule,
costs, resources);
 Balance the influence of constraints on the project
(e.g., increased scope may increase cost or
schedule); and Manage change in a better manner.

59. Importance Project Management
Poorly managed projects or the absence of project
management may result in:
 Missed deadlines,
 Cost overruns,
 Poor quality,
 Rework,
 Uncontrolled expansion of the project,
 Loss of reputation for the organization,
 Unsatisfied stakeholders, and
 Failure in achieving the objectives

60. Project Managers
 The individual or body with responsibility for managing a
project to achieve specific objectives.
 To establish effective relationships and manage
performance throughout the project, managers need to
have the following project management skills.
Clarify the aims
 Clarify vision
 Give direction to the project team
 Establish the purpose
 Describe the end results
 Establish critical success factors and standards.


61. Project Managers

Get things done
 Set short-term plans
 Link to overall aims
 Establish priorities
 Obtain feedback
 Maintain standards
 Act quickly to rectify
shortfalls.
Manage time and pressure
 Keep focused
 Manage diversions
 Chair meetings
 Energise others
 Manage own/team’s
stress levels
 Let off steam
 Use humour appropriately

62. Project Managers

Lead team
 Select a first-class team
 Balance appropriate skills
 Define accountability
 Create a common
understanding
 Consult at all times
 Use group problem-solving
approaches
 Encourage diversity.
Motivate individuals
 Get to know each team
member as an individual
 Identify their specific needs
 Involve each person
 Value their contribution
 Provide opportunities for
development
 Praise and reward as
appropriate

63. Project Managers
 Persuade and influence
 Work out what they want
 Adopt a principled approach,
don’t manipulate
 Search for a joint solution
 Aim for a win–win outcome
 Use positive body language
that supports what you say
 Identify the benefits and
overcome any objections
 Make an effective presentation.
Communicate effectively
 Give out, not withhold
information
 Use appropriate channel and
medium
 Speak and write clearly and
succinctly
 Ask open questions
 Listen actively
 Be open to others’ ideas and
suggestions
 Model effective behaviour.

64. Construction Project Management
scenarios/Context
 Project management exists in a broader context that
includes program management, portfolio management, and
project management , which a program consisting of several
associated projects will contribute to the achievement of a strategic
plan.

65. Construction Project Management
scenarios/Context
 A portfolio is a collection of projects, programs, and
operations that requires to managed to achieve the
strategic objectives.
 Portfolio management is the centralized management of
one or more portfolios to achieve strategic objectives.
 The programs or projects of the portfolio may not
necessarily be interdependent or directly related.
 The aim of portfolio management is to:
 Guide organizational investment decisions
 Select the optimal mix of programs and projects to meet
strategic objectives.

66. Construction Project Management
scenarios/Context
 Provide decision-making transparency
 Prioritize team and physical resource allocation
 Increase the likelihood of realizing the desired return
on investment
 Centralize the management of the aggregate risk
profile of all components
 Portfolio management also confirms that the
portfolio is consistent and aligned with
organizational strategies.

67. Construction Project Management
scenarios/Context
Programs and Program Management
 Program management is defined as the application and
use of knowledge, skills, and principles to achieve the
program objectives.
 A program is a group of related projects managed in a
coordinated way to obtain benefits
 Programs may include elements of related work outside of
the scope of the discrete projects in the program.

68. Construction Project Management
scenarios/Context
For example: 1. A program of dam construction with projects of
civil work and electro mechanical work, 2. condominium
program with different project site and 3. Program of built
satellite system with projects of design and construction of
the satellite and the ground stations, the launch of the
satellite, and the integration of the system.


69. Construction Project Management
scenarios/Context
Program management focuses on the interdependencies
between projects and the program level to determine the
optimal approach. Actions related to these program and
project-level may include:
 Aligning with the organizational or strategic direction
that affects program and project goals and objectives;
 Allocating the program scope into program components;
 Managing interdependencies among the components of
the program to best product;

70. Construction Project Management
scenarios/Context
 Managing program risks that may impact multiple projects
in the program;
 Resolving conflicts that affect multiple projects within
the program;
 Resolving issues between component projects and the
program level;
 Managing change requests within a shared governance
framework;
 Allocating budgets across multiple projects within the
program; and
 Assuring benefits realization from the program and
component projects.

71. Construction Project Management
scenarios/Context
OPERATIONS AND PROJECT MANAGEMENT
 Operations management is concerned with the ongoing
production of goods and/or services.
 Operations management is an area, which outside the
scope of formal project management but in the modern
management it needs to follow up the operation management
to satisfy the customers.
 It ensures that business operations continue efficiently by
using the optimal resources needed to meet customer

72. Projects vs. Operational Work
 It is essential to introduce new business operations as a
result of a new product or service delivery.
 It helps to change product, upgrading a product, or
expanding outputs;
While improving operations or the product development
process at;
 At the end of the product life cycle;
 At each closeout phase;
 At each point, deliverables and knowledge are
transferred between the project
 Operations for implementation of the delivered work.

73. Projects vs. Operational Work
It share many of the following characteristics:
 Performed by people
 Constrained by limited resources
 Planned, executed, and controlled.
 Operations are ongoing and repetitive, while projects are
temporary and unique.

74. Projects vs. Operational Work
 The purpose of a project is to attain its objective and then
terminate. Conversely, the objective of an ongoing
operation is to sustain the business.
 Projects are different because the project ends when its
specific objectives have attained, while operations adopt a
new set of objectives and the work continues.
 Projects are undertaken at all levels of the organization
that consist a single person or many thousands. Their
duration ranges from a few weeks to several years.

75. Projects and Strategic Planning
 Projects are 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:
 A market demand (e.g., an oil company authorizes a
project to build a new refinery in response to chronic
gasoline shortages)
 An organizational need (e.g., a training company
authorizes a project to create a new course in order to
increase its revenues)

76. Projects and Strategic Planning
 A customer request (e.g., an electric utility authorizes a
project to build a new substation to serve a new industrial
park)
 A technological advance (e.g., a software firm authorizes a
new project to develop a new generation of video games
after the introduction of new game- playing equipment by
electronics firms)
 A legal requirement (e.g., a paint manufacturer authorizes a
project to establish guidelines for the handling of a new

77. END OF CHAPTER ONE