The purpose of this publication is to make available to industry the results of research conducted by the Construction Industry Institute

(CII). The publication does not necessarily represent the view of CII member companies, but is offered as a contribution to the industry. CII was founded in 1983 to improve the cost effectiveness of the nations largest industry. The members, who represent a broad cross-section of owners and contractors, believe that many of the problems that limit cost effectiveness are common ones, and that real improvements can be best accomplished in a cooperative environment with the benefits being shared by the construction industry at large. CII uses the acronym TOPICS to describe the research effort. TOPICS signifies the six research thrust areas: Technology, Organization, People, Information, Controls and Sigma (meaning others). The task forces for each area are listed below. Technology Advanced Technological Systems Computer Integrated Design & Construction Constructability Electronic Data Management EPC Flexibility Modularization Technology Organization Constructabililty Implementation Partnering Project Organization Project Team Building Project Team Risk/Reward Allocation People Construction Work Force Education and Training Employee Effectiveness Safety Zero Accidents

Information CICE Impact Evaluation Industry Data & Statistics International Construction Model Plant Owner Engineering Organization Project Management Assessment Survey Controls ASCE Quality Manual Change Order Impacts Claims Contracts Contracts, Phase II Cost/Schedule Controls Design Materials Management Overtime Overtime, Phase II Productivity Measurement Quality Management Quality Performance Measurement Total Quality Management Sigma Construction 2000 Insurance Retrofit Projects U.S. Navy Demonstration Project

Construction Industry Institute 3208 Red River, Suite 300 Austin, Texas 78705-2650 512 471 4319

Organizing for Project Success

........................................................................
Prepared by the Project Organization Task Force Construction Industry Institute Special Publication 12-2
February 1991

First Printing, Feb. 1991 Second Printing, Feb. 1992

Organizing for Project Success

Contents

........................................................................
1 3 3 3 5 5 5 8 13 14 14 19 19 22 24 25 25 27 27 31 32 34 36 37 38 42 43 Chapter 1: Introduction Chapter 2: Construction Organization Concept of Organization Organizational Exchanges Chapter 3: The Project Team Concept of Teams Types of Project Teams Teams, Leaders and Decisions Chapter 4: Managing the Effects of Uncertainty The Tunnel The Office Complex Chapter 5: Coordination Tools and Mechanisms Project Objective-Setting Design Basis Project Strategy Work Planning Information Systems Chapter 6: Team Dynamics Project Culture Code of Team Conduct Key Team Member Selection Selecting the Owner Project Executive Selecting Project Managers Work Managers Team Development Chapter 7: Summary

References

Chapter 1

Introduction

........................................................................
Mans long-time dream of traveling to the moon became history on July 20, 1969, when astronaut Neil Armstrong of the United States took one small step for man, and one giant leap for mankind. Few human endeavors could rival this accomplishment, and few humans fully understand the massive planning, task execution, coordination, and teamwork required to make such a journey possible. It is an historical testimony to the principle of channeling the efforts of a large number of people toward the accomplishment of a single goal-a feat that could not have been realized by any other method. Construction projects rarely have historical significance, yet must be planned, organized, and executed by teams of people dedicated to the accomplishment of a complex task, just as in the case of a space exploration project. The working environment and culture of a construction project is unique when compared to most work conditions. Groups of people, normally from several parent organizations, are assigned to a project or hired to contribute their services and assist in the construction of a facility. Due to the relatively short life of a construction project, loyalties are usually with the parent companies, and the construction project is not viewed as a career, but as a career step. Even a modest-sized construction project involves a tremendous number of people. Organizing their efforts would be complex, even if they all worked for the same parent corporation. The division of effort and methods of coordination change as the project moves through distinct phases. Sources of information, location, timing, and problem complexity change as people enter the project, perform their assigned duties, and depart. Reorganizing is a continuous process that attempts to balance conflicting values and requirements. The heart of the matter is the basic problem of managing people such that they work together efficiently to accomplish the goal. This requires enlistment of skilled people who are willing to sacrifice short-term gratification for the long-term satisfaction of achieving a larger goal. This CII publication addresses methods, guidelines, and considerations necessary for successful project organization, key member roles and selection, and the elusive art of effective teamwork. No two construction projects are the same; there is no substitute for common sense and flexibility in the administration and application of these methods and guidelines. Reading this document, a common thread of thought will be noticeable: the key to successful organization architecture is selection of properly skilled people. These individuals possess the ability to recognize the degree of uncertainty, at any point in the execution of the project, and manage the efforts of others to achieve clearly defined objectives that result in successful completion of the final product.

Chapter 2

Construction Organization

........................................................................
Concept of Organization When an owner undertakes a construction project, what is being bought is really the efforts of a team in addition to a completed facility or product. All but the simplest projects involve the efforts of a diverse group of people who work together to serve the needs of a project, yet who also work apart in the service of different corporations. Improving the ability of groups of people to work together requires a shift in thinking at all levels. Developing a project should be viewed as managing a complex decision-making process, rather than merely preparing a series of products. This requires focusing on the commercial contract between parties and the roles of people within work groups. These working groups are teams that work together to accomplish more than they would if they worked separately. The use of teams is central to the construction project approach because a team is where the decision-making process begins. While planning construction, organizations use a combination of planning and immediate problem-solving techniques. The team created to tackle a problem should be composed of individuals whose history and skills are matched with the tasks at hand. This team should be constructed so that the skills of its individual team members are combined to best serve the overall purpose of the team. The lines and boxes of an organization chart depict the concept of division of work and the relationship of the worker to formal authority. Organization can be defined as the sum of the ways labor is divided into distinct tasks (the boxes) and coordination required among the tasks (the lines). The people assigned to the organization, with all their history and skills, and the task before them determine the structure of the organization. The nature, or structure, of the organization depends on the task the organization is to perform. It has been said, Uncertainty appears to be the fundamental problem for complex organizations. Coping with uncertainty is the essence of the administrative process. Uncertainty arises both within the personal relationships inherent to the organization as well as the task environment. Organizations cope with uncertainty by a combination of planning and immediate problem solving. Organizational Exchanges Exchanges are an essential activity in the internal dynamics of an organization. An example of an exchange is the contract, which is designed to protect organizations, constantly at risk, as they function in a highly competitive business environment. The concept of exchanges is integral to the way organizations do business. Just as commercial contracts involve exchanges between large corporations, and similarly small private contracts establish formal rules for exchange of products or services between contracting parties, exchanges occur among team members performing the work. The concept of exchange includes the behavior and relationships of team members. For example, someone must stop to answer the questions of a co-worker-such an exchange costs time, but the team gains because work can proceed. In the same way, if a team member has an original, creative idea, he or she may lose individual recognition once the idea is implemented by the team. As a project moves from an uncertain concept to a determined reality, as illustrated in Figure 1, the mix of behavior and product exchanges varies, evolving from behavioral exchanges during conception and development to product-related exchanges during actual construction. The nature and composition of

........................................................................
the team and the rules governing its behavior usually change as a project advances through developmental stages, during which initial uncertainties are resolved and the project becomes increasingly more well defined. Figure 1 Phases of Certainty

Uncertain

Certain

100% Ideas/Behavior

100% Products/$

Develop a concept Set Objectives Decide how to achieve objectives

Design what to bolt together

Design how to bolt it together

Buy bolts Bolt together

Chapter 3

The Project Team

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Concept of Teams A team may be defined as a group of people who, by working together, accomplish more than if they worked separately. A team is more than a group but less than a community. A group is a number of people who come together in the same place at the same time. A group, however, is not trying to work together to accomplish anything. A community is a group of people with close personal relationships who care about each others well-being. The community, however, is not necessarily trying to accomplish anything more than maintaining itself. A team is more than a group because individuals are cooperating in order to accomplish a goal. A team, however, is less than a community because its members do not necessarily have close, personal relationships. Team members should trust and respect other team members, but friendship is not necessary for effective teamwork. Teams function effectively on the basis of professional relationships. A team can be a democracy or a dictatorship; its members may have volunteered or may have been assigned. Once a person becomes a member of a team, however, the definition above applies. Robert Keidel, in his book Game Plans: Sports Strategies for Business, discusses organization types by using an analogy of spectator sports-baseball, football, and basketball. Baseball is a simple game with few rules; the players are independent, with little interaction compared to other sports. The skill and performance of the individual players are the most important considerations for success. Individual performance is monitored by many statistics. A sales organization is the best analogy to a baseball team. The rules are simple: Sell! The sales people work independently, and the success of the organization is determined by the cumulative success of all the individual salespersons, who are often paid according to the ratio of sales to quota. Football, however, is a complex game with many rules. Teamwork and individual team members focusing their skills to perform as a unit on each play are the basic ingredients of success. The game plan, which gives hierarchical direction and specifies systematic teamwork, is important. Most industrial organizations are analogous to a football team; they are functional organizations, driven by a business plan, and require continuous interaction and communication between individuals and departments. Basketball, in our organization analogy, lies somewhere between baseball and football. It is played in a continuously changing situation, and player-coordinated, spontaneous teamwork is the most important feature for success. The family restaurant, in which every family member cooks, serves, washes dishes, and acts as cashier, is an example. Other examples are university staffs and multi-disciplined consulting firms. High technology companies fit this category and are dependent on teams, working independently, to develop products and processes for marketing by the larger entity. These development teams come and go as opportunities arise and needs are satisfied. Types of Project Teams Acknowledging that construction contracting is a team process, not the transfer of finished goods, poses the question, What kind of team? Figure 2 illustrates the simplest explanation, where the project team is viewed as elements from each contracting party assigned to the project to produce the desired facility. This is a baseball concept and implies that project success is achieved by each party fulfilling its assigned contractual responsibilities. There is some interplay between the parties, as specified

........................................................................
in the respective contracts. The most important consideration is the ability of each player to perform well. Figure 2 Project Team Elements uncomplicated projects, with little schedule pressure, where detail design is complete before construction begins and no changes are required. Most construction projects, however, do not fall into this category. The football concept is a better fit for the construction process. It is driven by planning and includes many diverse relationships. The hierarchy of teams (although they may not be formally designated this way) on a construction project shown in Figure 3 is described briefly in the text which follows, and in greater detail later in this chapter. Investment Management Team. After a positive investment decision, an Investment Management Team is formed in the owners organization to provide overall control of the new venture. The major functions, such as marketing, engineering, finance, and manufacturing, are usually represented. A Project Executive usually leads the team and reports to the head of the business unit which made the new investment. Project Management Team. The Project Management Team is composed of responsible managers from each of the contracting parties. Their mission is to accomplish the work, including coordinating the engineering, procurement, construction, and startup phases. The Owners Project Manager leads this team and also is a member of the Investment Management Team. Contractor Management Teams. Reporting to each of the Contractor Project Managers are the Work Managers, who together comprise the Contractor Management Teams assigned to the project by each of the contracting parties to fulfill the requirements of their contracts. Each Contractor Project Manager reports to both the Owners Project Manager for contractual matters, and to the Project Sponsor in the parent organization for business matters. Work Managers. The Work Managers are

This concept views teamwork as contract administration, or the management of the relationship between the contracting parties. It recognizes that these parties are usually hypothetical legal entities, and it attempts to solve the associated problems. The concept acknowledges that real people are involved; personal relationships are defined in terms of accepted social behavior, such as ethics, honest communication, and professional competence. Research indicates that the baseball concept is the traditional approach in the construction industry. Company manuals address relationships between individuals and specify how each companys team will deliver contractually required intermediate products to the other companys team. Intercompany, or joint, teams are not part of this concept and usually are not addressed in either the contract structure or procedure manuals. The baseball concept is not wrong, but it is insufficient for large, complex construction projects. It may be adequate for special,

........................................................................
the design leaders and supervisors who lead the teams actually accomplishing the work. They are directly responsible for the part of the contract assigned to them by their Contractor Project Manager, in accordance with the business practices of the parent organization. They must also communicate and coordinate their efforts with Work Managers from the other business units. Usually, this communication does not flow vertically through the chain of command, but instead flows horizontally between people actually involved in the work. Work Manager Teams. Communication at the working level is not just a network. Instead, teams of individuals from the various business units are united to accomplish specific tasks. For example, the lead designer for a structure, Figure 3 Project Teams the steel fabricator, and the general superintendent have to understand each other and also work together if the steel is to be erected correctly and on time. Ideally, the basic elements of the Work Manager Teams should be in place during definition and planning, thus giving a voice to those who implement final project responsibility in determining their future. An example is the constructability analysis addressed by other CII publications. This hierarchy of teams is similar to a professional football organization. The Construction Owner is similar to the owner of a football team who contracts for the required resources. The Project Management Team is the coaching staff which forms the game plan. The Owners Project Manager is the head

........................................................................
coach. The Work Managers and their teams are the running backs, wide receivers, interior linemen, linebackers, and other players who actually participate in the game. Professional football organizations also incorporate flexibility into their teams. Run to daylight and improvisation on broken plays are intentional parts of their strategy. According to the analogy used here, some basketball is played in the middle of the football field. Similarly on successful projects, the Work Managers, who are the players, form Work Management Teams to adjust their efforts across business unit boundaries. Teams, Leaders and Decisions Construction is driven by a planning process. Increasingly detailed decisions are required when moving through the hierarchy of teams. Decisions at one level become action items for the next team. To facilitate the delegation process, the leader of each team, except for the Project Executive, is a member of the next higher team. Table 1 is an illustration of this leader/team ladder with a listing of the major decisions made by each team. Two kinds of decisions are to be made. The first is planning decisions-what will be built and how is it to be constructed? Secondly, process decisions are required to determine how each team will conduct business. These process decisions form part of the code of conduct, which is described in Chapter 6. During the definition and planning phase, the needs of the owner must be determined. Someone must organize the owners team and establish a clear direction for the project. The key to success is a strong Project Executive, who has the power and authority to make decisions of impact. This function is necessary because the Owners Project Manager may have insufficient influence to resolve disagreements, which occur due to conflicting objectives of the marketing, manufacturing, finance, and engineering functions. A formal Investment Management Team should be formed from elements of the owners organization to define project objectives, establish priorities, and approve the work of contractor teams. This team is led by the Project Executive and includes representatives from marketing, engineering, finance, procurement, the Owners Project Manager, and the user, such as the manufacturer. This group oversees the project, reviews and approves vast amounts of information, establishes policy, solves problems, makes decisions, coordinates, and communicates. This team function is vital to project performance. Generally, the Project Executive resolves conflicts within the owners organization. It is essential that this position has sufficient authority, either formal or informal, to make necessary decisions which will allow the Owners Project Manager to implement an action plan. The Project Executive should be the ultimate contractual authority. If not, there must be an established, rapid board or committee authorization process that the Project Executive can use to resolve conflicts and force decisions. Approvals are a special consideration for the Investment Management Team, since these are their tools to control the project organization. This applies to planning documents, contractual commitments, progress payments, and final acceptance. A rapid process must be established to gain approvals within the owners organization. Approvals should be natural control points during the life of the project; they must not become lengthy processes which delay project progress. The Project Executive should set the tone for open, candid communications and timely action.

........................................................................
Table 1 Project Teams, Leaders and Decisions

Teams & Leaders

Project Executive

Decision Responsibilities
Planning Process

Investment Mgt.

Project Objectives Project Mgt. Owners Proj. Mgr. Project Strategy Roles & Responsibilities Contractor Proj. Mgrs. Information Systems

Approvals

Changes Problem Solving

Contractors Mgt. Work Mgr.

Lead Designer General Supt.

(Company Requirements) Constructability Analysis

(Company Requirements) Technical Resolutions Submittals

Work Mgrs.

Construction Schedule Work Plans Operations Schedules

Work

........................................................................
An Owners Project Manager (OPM) is the member of the Investment Management Team responsible for the management of the design, procurement, and construction activities; this is probably the most important management function of the project. The OPM may have limited resources under direct control because the work has been contracted to various business units. Still, the OPM is responsible for the accomplishment of this work. Most owners recognize the need for an OPM, but may not realize the importance of the position. As a pure management position, the OPM is responsible for getting the work accomplished through other people. The OPM should be the agent of the owner, authorized to act on behalf of the owner. The OPM does not have to be the ultimate contract authority, but must be authorized to represent the owners interest, within the bounds of the established contracts. The Owners Project Manager should be an experienced construction professional. Manufacturing supervisors and facilities managers may not be familiar with the construction process. If the owner does not have such a staff person, one should be acquired for the project. The Project Management Team, a joint team of the Contractors Project Managers, is led by the Owners Project Manager. The primary task of this team is to plan the project, subject to the approval of the Project Executive. This team also develops the project strategy, with the resulting project schedule, and specifies the information system required. Their relationship is defined by the roles and responsibilities defined in the contracts between the parties. Actual management of the design, procurement, and construction activities is pursued by a network of individual managers. As each business unit is hired to deliver an end product, its responsible manager becomes part of this network. This management team of individuals, from different business units, must communicate and work together to coordinate the efforts of the various entities. Each manager must accomplish the work in the contract, plus coordinate with other managers to control the flow of work through each phase of the project. The Project Management Team must define its rules and personal commitments. The two most important areas are problem solving and changes. These require a joint effort and mutual cooperation, despite inherent conflicts between specific company and overall project concerns. Each party must provide objective input. The individuals involved in changes should mutually decide how they will manage problems and changes, from inception to settlement. It is important that discussion and mutual understanding be a part of this process. The Contractor Teams are company teams from the contracting entities, who are led by the respective Project Managers. Functional units within the teams are led by Work Managers, who are supervisors or design leaders. These teams not only accomplish the mainline activities of design, procurement, installation, and startup, but also staff functions, such as accounting, scheduling, cost control, and office services. Delegation is the heart of a Contractor Team; it requires the responsible manager to take four steps:
l l l l

Establish requirements Make assignments Monitor results Give feedback

10

The last of these is the most important. Feedback is necessary, not only to adjust individual performance, but to revise the original requirements, which may have been improperly stated.

........................................................................
The entire planning process, from project objective to work plans and operations schedules, is a system of delegation. Without project objectives, Contractor Teams will not have clear direction. Lack of project objectives also makes it difficult to set up effective teams and delegate responsibility. Prior to the first day of participation in the project, Contractor Teams should be instructed on the expectations of their teams. Company Teams must understand the importance of objectives, rules, tasks, relationships, consequences, and personal values. The Project Executive, Design Project Manager, and Construction Project Manager must specifically instruct their teams on required interface relationships with other teams; different projects require different interfacing relationships. The code for a particular project must be communicated explicitly-it cannot be assumed. The owner should set the pace by dictating what relationships are expected in terms of:
l l l l

Interface authority and responsibility Communications Coordination Methods of settling differences between teams

These instructions modify the Standard Operating Procedure (SOP) that governs corporate team requirements. Without this SOP, trial-and-error adjustments between teams and their members can be laborious and costly. The guidelines should be published in the project policy and procedure manuals. Work Manager Teams can be envisioned as either one team, with the membership changing as the task requirements change, or a series of teams, each formed to address a specific task. After design is completed, the most prominent team manages construction operations and includes those who either report to or support the General Superintendent for each facility. This team builds the project and is accountable

for taking it from design to completion. As the pinnacle Work Manager Team responsible for everyday production, it is placed between the deliberation-policy management group and hands-on implementation. This teams policymaking authority should be minimal. Time should be spent in implementation, which requires combinations of review and approval, problem solving, decision-making, coordination, communication, and support. All of these functions make the performance of this team a top priority during construction. This team also is in the trenches of everyday activity, where there are continuous pressures to act and respond. On the playing field, in order to keep close coordination and communication, team members should be adept at reading one anothers signals, without hesitation, change, or confusion. This team is highly visible, and other teams use it as a guide for their own operations. If this group is working either exceptionally well or poorly, then it is known throughout the entire project. The leadership and effectiveness of these frontline teams are essential ingredients for a successful project. It should be noted that in the previous discussion the term leader is used more often than manager. This is intentional. The words have different implications. A manager is assigned formal authority and the responsibility for accomplishing a task. The position of a leader is informal. It depends on the willingness of the team to follow. The task of the leader is to establish the direction of the team. Managers do things right; leaders do the right things. The book, Leaders, identifies four characteristics common to effective leaders: 1. They gain the attention of their team through an overriding vision. 2. They are able to communicate and transfer the meaning of their vision. 3. They gain trust through consistency.

11

........................................................................
4. They know and are able to manage themselves. Good managers are effective leaders, but several of the necessary leaders on a construction project do not have formal management authority. Figure 4 identifies the Project Management Team and the Work Manager Teams as joint teams composed of individuals from different business units. Although usually seen as communication networks, they are really teams of people working together to accomplish respective management tasks. They must be formed, developed, and led as are the recognized company teams. Members of joint teams draw from their collective parent organizations the specific objectives and rules that are to be applied. The integration of these factors, which plainly spell out how the team should operate, must be adopted by the team as a whole. The differences in the parent corporations instructions to the individFigure 4 Types of Project Teams ual members of the joint team may be slight or enormous, but differences will exist. These must either be negotiated out, preferably by the joint team on the spot, or deferred to parent corporations for opinions and decisions, a n d then be communicated back to the joint team for adoption. Not surprisingly, organizations depend on the leadership ability of many key managers during the construction process-the point being that leadership and effectiveness of joint teams is as essential to a successful project as that of the company teams from the contracting parties.

12

Chapter 4

Managing the Effects of Uncertainty

........................................................................
Development of a project, from concept to reality, is actually a reduction of the uncertainty process. At every stage of the project, the team is striving to clarify exactly what is to be done and how to do it. Figure 5 shows in matrix form the two dimensions of certainty as the project moves from concept to reality. Figure 5 Certainty Matrix This movement is often described in terms of phases, such as these: Forming a concept Developing objectives Identifying how to achieve objectives Designing the project Procuring equipment, materials and services Constructing the project Startup and operation Different team members during different phases of a project may be in a better position to collect, evaluate, and make decisions concerning technical and market information. Although the organization is shaped for the task of decreasing uncertainty, structure depends on the perception of project exchanges which occur. If these perceptions are consistent with actual circumstances, the organization is functioning well. For example, on the matrix shown in Figure 6, a straightforward construction project can be portrayed as the purchase of a series of discrete products. Figure 6 Certainty Matrix

Low

EXECUTIONHow High Facility

High
DEFINITIONWhat

Low

Idea

Projects sometimes start with low certainty on both axes of the matrix. As planning and coordinating decisions are made, the project moves toward completion. Each step in the process should define more clearly what is to be built and how the work will be accomplished. In reality, definitions of the what are not always clear. Uncertainty about what is to be built continues to arise as project objectives, environment, market factors, and technology change with the discovery of new information. Similarly, the behavior and relationships of key personnel also may change while the project is under construction. Projects move at varying rates and follow different paths from concept to completion.

13

........................................................................
Reliance on intermediate products works well conceptually for projects that start construction in the top right corner of the matrix-when both what and how certainties are high, and the project is not under any unusual schedule or budget constraints. (Projects in this quadrant are typically the market purchase of a standard product.) Experience in the high certainty corner of the matrix is a major force in shaping the way people view the construction process. The contract and organization resulting from a traditional market exchange work less well as the level of certainty decreases. Many projects begin the construction phase in one of the other three quadrants. Referring to Figure 7, the construction phase of a tunnel might begin in the upper left quadrant, while a commercial building might begin in the bottom right. These two situations are discussed below. Figure 7 Certainty and Paths avoid a present set of problems. Although they have some idea what previous tunnels have cost, they do not have exact information on geological conditions. When the project appears to be feasible, they begin design. Borings are conducted and geological studies are tested. Based on these activities, they select an alignment, lining, and construction method. A constructor is chosen to carry out the work. The tunnel project is shown as Line A in Figure 7. Despite the experience and engineering skills of everyone involved, construction begins with far less certainty about how the work will get done than what is to be built. Each advance into the mountain reveals new information which changes the work approach. The project team faces the task of re-planning based on new information, and the success of the project depends on finding and implementing costeffective solutions to technical problems. The Office Complex High Facility A developer identifies a piece of land in a good location for an office complex. The fourstory structure will be steel frame with pre-cast exterior wall panels. The technical and construction issues are neither unique nor particularly difficult. The exact arrangement of the internal space, however, is far less certain. The developer begins construction with less than half of the space rented. New tenants demand significant alterations to their space during construction. The project team must respond to new information from the marketplace. Success depends on managing the work effectively and executing routine tasks efficiently. The office complex project is shown as Line B on the matrix. In fact, projects may begin construction at any place on the matrix. Projects which originate in a position down and to the left on the

Low

HOW

High WHAT

Low

14

Idea

The Tunnel A highway department considers re-routing a stretch of canyon highway into a tunnel to

........................................................................
matrix can be expected to have a higher amount of uncertainty and a greater possibility of change. A research and development (R&D) facility typically starts construction with less certainty than other projects and faces more urgent schedule pressure, as illustrated in the matrix of Figure 8. Figure 8 Certainty and Location at Start of Construction decisions are acceptable to all contractual parties. Not surprisingly, interesting developments occur on projects located in the lower left-hand corner. Here, it is obvious that the traditional view of the construction process, where product exchanges are controlled by the classic contract, results in organizations less likely to make effective decisions required to complete dispute-free projects. By fostering the newer concept, which views construction as a team-oriented process, owners and major construction companies are forming long-term relationships, a key element in the concept of partnering. Partnering is the formation of an on-going relationship between those who know how to construct projects and those who determine what is required. As shown on the matrix of Figure 9, constructability is enhanced by partnering. The matrix in Figure 9 has a number of implications for project organizations and construction management practice. Optimum construction strategy is based on the location on the matrix and the objectives of the project. Procurement policies and procedures must Figure 9 Certainty Matrix and Change HOW

Low

HOW

High

Facility

High WHAT

Low

Idea Organization for projects that begin in the low/low quadrant will differ from others for sound reasons. Project organizations in this quadrant should not be based on the projected exchange of ill-defined products. Instead, these project teams should be organized to collect, evaluate, and act on information as the project progresses. This requires having systems in place to collect information, plan, act, and maintain agreement among all concerned. Organizations that share information and distribute decision-making responsibilities can be impacted by strict contracts based on exchanging products. These organizations must decide whether to tolerate significant problems or redesign their structures to channel information to the appropriate person. This will insure that

Low

High

High WHAT

15
Low
Constructability Partnering

........................................................................
mesh with the chosen strategy. Project teams must spend time and money to reduce uncertainty if they expect to manage subsequent project phases and their intermediate products. The meaning of change depends on the quadrant where a project is located, at a point in time, as shown on the matrix of Figure 10. Figure 10 Certainty Matrix and Change result when managing a project with inappropriate contractual tools for its location on the matrix. For example, conflict is likely if the owner uses a contract based on a highly certain view of the project, while the contractor views the project definition as unstable. Factors which determine project success vary by quadrant. Developing clear objectives is an early requirement in the low/low quadrant. Following the plan is the obvious key in the high/high quadrant. Projects in the top left quadrant require high quality technical solutions for optimum performance. Projects in the lower right quadrant need high quality coordination to achieve efficiency. These success factors are shown in the matrix of Figure 11. Figure 11 Certainty Matrix and Success Factors

Low

HOW

High

High

WHAT Low

Low

HOW

High

High The trend toward early involvement of all concerned parties during construction is beneficial; it assembles the people who know best how to do something with the people who determine what they want. This can be seen in the development of partnering relationships and the recent emphasis on constructability. Difficulty can arise, however, when people who are accustomed to functioning in the high/high quadrant, where direction is unambiguous and change is perceived as an enemy, meet people from the low/low quadrant who consider change as beneficial while refining the project plan. Conflicts may occur when people have different ideas concerning where the project is located on the matrix. Disputes are likely to WHAT

High Quality Technical Solutions

Following the Plan

Low

Clear Objectives

High Quality Management & Coordination

16

The project starting point position on the certainty matrix, or the degree of definition, has an impact on the initial communication strategy of a project organization, as shown in the matrix of Figure 12 (next page). In the lower left uncertain/uncertain quadrant, the usual practice is to release the work in increments, as soon as each piece is defined.

........................................................................
The Investment Management Team must take the lead and initiate numerous top-down communications specifying what is needed for each piece. The designer, supplier, and constructor then define and implement to satisfy each need. A phased construction approach is used, with considerable overlap between design and construction. Research facilities, some weapons systems, and hazardous waste clean-up projects are examples of this approach. In the upper left certain/uncertain quadrant, communication is critical between the work Figure 12 Certainty Matrix and Communications HOW
Certainty

WHAT

Uncertainty

force and the Project Management Team. On tunnels, dams, and other large earthwork projects, the construction method, and perhaps the design, must be adjusted during the construction process. As the primary planning team, the Project Management Team must respond to the adjustments. In the lower right uncertain/certain quadrant, neither design nor construction is difficult. The problem is to adapt to the specific needs of the marketplace. The general parameters of a commercial office building can be

established sufficiently in advance to support financial analysis, funding, and contract awards. When the ultimate user is identified, considerable adjustment may be required. Again, the Project Management Team must control this process and incorporate only the necessary, practical changes to design and required construction. In the upper right certain/certain quadrant, both what and how are known. Work can be clearly delegated to the designer, supplier, and builder. The ability of the Contractor Management Teams will determine the performance of the contracting parties and the success of the project. The key communication is the reporting and monitoring system which insures contract performance, as well as prompt payment for the work accomplished. This is the traditional view of the construction process, and many projects fit this category. This is the baseball concept, mentioned earlier. The task force has conducted workshops in which participants have indicated that not only is the baseball concept inadequate for many projects, but the four quadrants of the What/How Matrix also may be incomplete. The population of industry projects is not neatly polarized into four separate categories. Rather, the project population is concentrated more in the center/center of the What/How Matrix, with the centroid only slightly above and to the right of center. Many projects are not in one of the quadrants, but in a mixture of two or more quadrants. More research is required to identify the variables and the organizational impact when a project is a mix of the various quadrants. The foregoing does not give many prescriptions. Hopefully it will supply valid and useful concepts for the individuals on a specific project so that they can agree on where they are

17

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and what they need to do together. One of the problems is that there are no units on the What and How dimensions. Also, no objective measurement determines where a project is. The location is determined by the perception of each individual, and perceptions vary because no one knows everything. This makes the matrix a useful discussion tool to determine where the parties are coming from and address the differences that get in the way of a successful team effort. Project organization, uncertainty, and types of teams have been discussed, with emphasis on general concepts and organizational theory. Chapters 5 and 6 will address specific, practical applications of the subject matter presented in the previous sections.

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Chapter 5

Coordination Tools and Mechanisms

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Successful organizations do not occur because groups of people are brought together in an office or at a jobsite. Many different forms of organizations can be successful; such organizations share a unique set of coordinating tools and mechanisms that allow the group of individuals to act in a cohesive, focused direction toward satisfying a single purpose. Coordinating tools and mechanisms include:
l

l l l l

A comprehensive objective-setting process The design basis A project strategy Work planning Information systems

Project Objective-Setting Managers in the construction industry agree that a critical ingredient to the success of a project is the objective-setting process. This process is closely related to planning efforts, scope definition, and project team motivation. In many cases, the process of establishing objectives may be as critical in building team commitment and understanding as the objectives themselves. Just as the process contributes to the success, research has shown the wrong process can lead to difficulties. The lack of clear owner-objective definition, internal consistency of objectives, and clearly communicated project objectives can create costly problems for project teams. Objectives, including trade-offs between quality, costs, and schedule, are used to guide numerous decisions. The objectives guide the development of more specific goals, procedures, design criteria, and milestones. When more detailed definition of the project is required, the objectives are used as the benchmark for specific direction. Ideally, a common set of objectives should

guide the owner, designer, and constructor. The objectives provide the basis for all parties and, as such, must be compatible. The compatibility is essential to minimize conflicts among the owner, designer, and constructor organizations concerning the project objectives. The objectives should be established, and all teams should clearly understand them and be in agreement with the relative priority placed on each objective. When this occurs, the various teams can begin to accomplish their specific responsibilities in harmony with other teams. The objective-setting process should be a deliberate, managed process. The three phases in the management of project objectives are: formation, communication, and integration. These three phases are shown in Figure 13. The formation phase consists of the methods used by the owners organization to combine the corporate goals and suborganization objectives into a single set of project objectives. The communications phase is the means by which the owner disseminates, both directly and indirectly, the project objectives developed in the formation phase. The integration phase represents all efforts on the part of the owner to combine the project objectives of the designer and constructor with those of the owner, thus forming an integrated project strategy. Strong owner involvement is needed in each phase to aid in the planning, programming, design, and construction of a project, regardless of how many outside organizations are contracted. Feedback is critical to insure that the system is working properly and objectives are common to all organizations. Written project objectives provide a focal point for discussion and periodic review. Formal processes can be used to form project objectives. Case studies of several projects have been used to develop the process present-

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Figure 13 Certainty Matrix and Communications

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ed here. The recommended process to define project objectives requires that internal units within the owners organization (engineering department, marketing department, and other functional departments) work together to identify appropriate objective priorities. This team environment is the key ingredient of the process, as it provides for open communication, compromise, and putting the goals of the larger organization ahead of the internal unit goals. The role of a Project Executive is critical to the success of this task. The recommended approach for managing project objectives includes the following critical elements:
l

Study and fact-finding to develop objectives Communication and negotiation to establish objectives Communication of objectives to parties throughout the organization Feedback, direction, redirection or reinforcement related to project objectives and priorities

should not be general. Specifically, it is important to state objectives clearly and avoid communication problems. Blending the various suborganizational objectives (e.g., marketing objectives, engineering objectives, operation objectives, and financial objectives) into a consistent and stable set of well-defined, user-oriented project objectives is an important task. Several mechanisms can contribute to, or detract from, the effectiveness of communication. These mechanisms are classified as communicating, reinforcing, and detracting mechanisms. Communicating mechanisms, those items used to transmit objectives directly to the participants, include:
l l l l l l l

The project execution plan A written design basis The contract documents Policy and procedure manuals A pre-bid or pre-construction meeting Written objectives and priorities Constructability reviews

Several studies may be necessary to define the problem or opportunity adequately in technical and financial terms. The process requires considerable fact-finding, discussion, and analysis. A set of written objectives statements is usually the product. The objectives should be stated in terms that are:
l l l l l l l

Reinforcing mechanisms which support and emphasize the communicating mechanisms are used to maintain focus and direction for the continual process of communicating objectives throughout the organization. Reinforcing mechanisms include:
l l

Specific and identifiable Oriented toward single-ended results Set against deadlines Attainable Responsible to organizational needs Controllable Assignable to organization units and individuals for accountability

l l l l l

Weekly progress meetings Executive level reviews Expediting reports Project instructions Project team layout Toolbox safety talks The tone of correspondence

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Single objective statements are best, but they

Detracting mechanisms which create situations where separate, incompatible objectives are established by the various project organizations exist throughout the construction.

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Examples of detracting mechanisms include: Poorly defined design basis Inconsistent design requirements Poorly designed project communication systems Lack of expertise Dominant external objectives Lack of project controls Poor operational planning Inappropriate staffing levels Key individuals unavailable for decision-making at the project Detracting mechanisms have strong negative impacts on projects. All of these mechanisms point to the need for good communication systems, with a deliberate feedback system, to insure the effectiveness of communication. Design Basis The Business Roundtable states in its Construction Industry Cost Effectiveness Report A-2, Poor scope definition at the estimate stage and loss of control of the project scope rank as the most frequent contributing factors to cost overrun. The CII Design Task Force, in CII Publication 8-2, Input Variables Impacting Design Effectiveness, considers scope definition to be the input variable with the greatest impact on design effectiveness. Prior to the beginning of design and construction, it is important to establish and define, with appropriate detail, the intent a given project is to achieve; yet, this task is not always given proper attention. The design basis, a set of documents written and drawn to define the technical requirement for the project, must have sufficient depth to provide clear direction for all major design issues. The format of the design basis varies, but usually includes drawings and specifications, and may be supplemented with renderings, models, or even three-dimensional CAD graphics. The design basis may be a series of documents produced early in the design process. There may be other documents produced at interim stages requiring approval prior to proceeding to the next stage. The design basis should clearly communicate the intent to the designers and set appropriate boundaries on the project design for detailed decision-making. In order to maximize the effectiveness of the design basis, three requirements must be met: Completeness-There must be sufficient, detailed information to address all the design issues for a project such that informed decisions can be made by the project personnel. Consensus-Person or persons in the owners organization who make decisions and approve the design basis must comprehend what they are approving, and should have the concurrence of all parties, including those who operate and maintain the facility. Communication-The design basis must be shared openly, not only with all parties in the owners organization, but with the designers and constructors as well. When the design basis is sensitive or proprietary, security procedures must be established. Although a relatively small portion of project personnel develops the design basis, the impact of this effort is great. Design changes, particularly after the design basis has been set, can create havoc on the project and dramatically add to the cost of design and construction. The change of an important aspect of the project during the development of the design basis may take only a few hours to implement. The same change, late in design or during construction, can cause enormous cost and intolerable delay.

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The design basis development phase is not the occasion to save time or money. High quality resources must be dedicated to, and time allowed for, development of the design basis. Prior to the beginning of the design basis, a feasibility study must be completed (by in-house personnel or consultants exploring the basic idea for the project, with appropriate financial analysis resulting in tentative approval to proceed with the project). The owners goals and objectives must be formulated at this point; the designer then can gather information and develop the design basis. Generally, two kinds of information are gathered. The first is the given conditions and constraints; these include site condition information such as survey, climate, traffic, soils investigation, hydrology, drainage, and environmental constraints. If a project involves the renovation of an existing facility, a comprehensive analysis of the facility is necessary. In addition, legal requirements such as building codes, Federal regulations, zoning ordinances, and local government approvals must be examined. The requirements of the owners insurance carrier also must be considered. Local utilities must be contacted to determine the availability and location of services. If the owner has a system of space standards or other general design requirements, these must be identified. The second type of information gathered concerns project needs. The designer must work with the owners project manager to establish the owners requirements for the project. These include the obvious functional requirements such as the amount of space, the production capacity, energy consumption, number of occupants, the performance criteria system, aesthetics, image, flexibility, and expendability. The next step in the development of the design basis involves establishing the criteria and evaluating various alternatives to meet those criteria. The owner, guided by various representative departments, makes choices among reliable alternatives. The documents which are developed at this stage include general arrangement drawings, site plans, architectural elevations, flow diagrams, and the outline specifications for mechanical, heating, ventilation and air conditioning (HVAC), electrical, and structural systems. Along with these conceptual definitions, an early estimate of the project cost is prepared based on the conceptual design. The next step in the development of the design basis involves further definition of each of the systems. A more detailed set of site plans, indicating the utilities and support buildings, is developed at this stage. Materials are selected; floor plans, elevations, and typical details are developed for building the facility; building systems are diagrammed; and an energy analysis will be prepared. The piping and instrument diagrams may be prepared; models may be developed to show the relative positions of major pieces of equipment; and constructability is brought into the evaluation of the design basis. Value engineering, or selecting the most economical alternatives for the overall life cycle of the project, also should be a part of this process. Since the owner usually is working with financial constraints on the project, it is common during the development of the concepts and the design basis to adjust the criteria to fit the owners budget, which must be matched with the scope of work. The design basis development, described above, is a constant design, review, and redesign process which should involve the owner on a weekly basis.

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Project Strategy A plan-often called a project strategy-is required to carry out tasks in a timely manner, even in the early stages of project development. The project strategy provides overall direction for the project team, which must make numerous decisions throughout the course of the project. In effect, the strategy serves as a road map for that decision-making process. The project strategy includes four key elements:
l l l l

A contracting strategy Logistics and support A project schedule A listing of the roles and responsibilities

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The owner determines the formal structure for the project team through the formation of the contracting strategy. The contracting strategy identifies the risk allocation, as well as the overall organization structure, and provides definition for the roles and responsibilities for each team member. In the early stages of project strategy development, the owner must determine whether to perform certain tasks and duties or assign them through a contract to other specialists. The owner may have a large, sophisticated engineering staff to perform the majority of design, procurement, and project management; in other cases, the owner may have only a limited staff for projects, necessitating the purchase of outside services for the early design work. The owner organization must make an honest assessment of an outside firms capabilities to perform these services and evaluate the economic trade-offs of purchasing outside services. Next, the type of contracts used must be determined. Sensitivity of time is probably the most important consideration to the investment decision. Owners who desire a fast-track schedule may contract on a cost-plus-fee basis. If

time permits and design is complete, the traditional design/bid/build approach may be used and a lump-sum contract awarded. Industry traditions often influence the type of contract selection. In the process industry, contractors working closely with an owners engineering staff can be responsive, timely, and cost effective using cost-plus-fee contracts. In contrast, public agencies tend to use lump-sum contracts when design is complete and then award a contract for a fixed sum prior to the beginning of construction. Realistically, the owners project team should investigate all the possibilities, identify advantages and disadvantages considering the project schedule, and develop a practical approach that meets the project objectives and includes the necessary, most cost-effective provisions. After the contract type is decided, the next contract strategy development step is to determine a suitable acquisition process. Issues include local design and contracting firms vs. national contracting firms, open or selective bid process, and the time required to choose a contractor. The acquisition process can include price and/or technical competition. The important result is selection of the best qualified contractor to perform the work-a contractor who can, with some certainty, meet the project objectives. The second element of the project strategy is logistics and support planning. Logistics and support include housing (such as a construction camp), construction site access, temporary offices, construction parking, and construction utilities. Supply routes, means, and communications also are elements of the logistics and support which must be planned. On some projects, it is appropriate to have a project labor agreement. Logistics and support should define procurement of long-lead or special materials required. On large process projects, major pur-

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chases of specialized equipment and vessels during the design stage are common. Project schedule development is part of the project strategy; by definition, a project schedule is the time phasing of design, procurement, and construction tasks. The schedule is normally a network diagram of required activities. The purpose of the schedule is to identify the interfaces between activities. The project schedule defines the logic and expected durations for project activities. A valid project schedule must be developed, with agreement and approval of the client, designer, major vendors, and contractor. Changes to a developed schedule should be approved by all parties. Finally, the project strategy includes a definition of roles and responsibilities. A roles and responsibilities matrix is illustrated in Table 2. Risk assignment, an integral part of roles and responsibilities, should be borne by the party best able to control the uncertainties associated with the risk. Some construction risks, such as site conditions, are uncontrollable; these risks are normally assumed by the owner. Work Planning Work planning, an essential ingredient of successful projects, is vital at every level of a successful project. The work plan may be a list, table, bar chart, or network schedule. The work plan can be a single document for a simple project or a lengthy document for complex projects. Each Work Manager monitors performance by measuring the quantity and quality of work accomplished as compared to the work plan. The work planning process attempts to capture the greatest efficiency, while satisfying all the project objectives: quality, time, cost, safety, and others. Work planning is normally accomplished in an interactive, backward, stepwise fashion. Initially, a target completion date is established, and startup steps are identified to satisfy the completion date. A construction schedule is developed for the construction phase of the work. Based on the construction schedule, the designer and constructor establish the design schedule to support the construction/startup schedule. Information Systems Correct information will not necessarily reduce project duration, but erroneous or late information can certainly delay a project and create serious difficulties. Critical project decisions can be made only when the information supporting the decision is accurate and timely. It is imperative that an efficient, effective project information system be established. It is highly unlikely that a large, complex project could be completed successfully without a comprehensive management information system. The computer software and hardware available today can dramatically assist a project team. The hardware and software costs, although reasonable, are not the only costs incurred in the establishment of an information system. The time for training, data entry, and analysis is a hidden cost (sometimes more than ten times the software cost). These costs must be evaluated for effectiveness. Software today is becoming increasingly more useful to managers. Early software produced only reams of data, which required processing to produce useful information; current project software produces meaningful information that can be used directly in the decision-making process. Today, data processing programs are generally used to manage by exception. The expectations of managers at each level are classified as budgets, schedules, or other standards of performance. The computer is used to compare volumes of data to these standards and identify significant variations from expected results.

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The variances provide evidence of problems requiring management attention. The process can be applied to most standard project objectives, which include quality, time, cost, safety, and other critical matters. Table 2 Roles and Responsibility Matrix-Definition Planning Stage With further advances in computer-based information systems, the construction industry will be positioned to perform projects more effectively and efficiently.

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R RESPONSIBLE for making the function or decision happen. Accountability and initiative are here. A must APPROVE, including the obligation to penetrate, question, understand and concur. C must be CONSULTED by R prior to decision. I must be INFORMED of decision by the R person.

Chapter 6

Team Dynamics

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Project Culture To understand how to use human factors and fulfill capabilities, one must understand the unique culture of a project and how it differs from many other organizations. Culture, the total array of internal values at work, is the sum of the practices that get the job done. Table 3 shows a comparison of construction culture. Objectives. In most organizations, the central values are fairly clear and subscribed to by most members, particularly by the key players. Even in conflict, the objectives are often made clearer. Most relationships are, therefore, advocacy-centered or win-win driven. On construction projects, the participating companies may share the immediate objectives to complete the project safely, cost-effectively, and on schedule. Broader organizational objectives are different and often conflicting. Engineering firms may be devoted primarily to their professional performance, reputation, and defenses against penalties of legal liabilities. Constructors are concerned about profit margins, safety, add-on work, risks, contract obligations, and others. The concerns of the owner may include cost, schedule, or the process; within the owner organization, priorities may conflict. The project is a perfect medium for competing objectives and adversarial relationships. Rewards. Systems of rewards in other organizations are based on adhering to the objectives of the organization and are paid in cash, and in kind. The latter denotes a longer-term payoff that perpetuates an extended view and encourages conformity. Several primary groups are involved in the construction process; each has its own system of rewards. One company may be on a growth curve and wish to obtain follow-up business as a primary reward. Another may be in a cashflow bind and require of the owner immediate payback. The reward system may be geared to another corporate need. The profit motive theoretically presses all participants to operate at their optimum level. In this regard, the construction project can be the arena for competitive groups that are all fighting to optimize performance, sometimes at the expense of other participants. Rewards have the potential to be a major cause of disruptive conflicts. The systems of rewards for those who design and build projects have been described as being divided between the immediacy of the project and the same distant payoffs their counterparts in other industries enjoy. More emphasis, however, is placed on shorter term results in construction, and the reward system is heavily skewed in that direction. The motivation to obtain rewards on a construction project may produce even greater potential for conflicting issues. Life Expectancy. Most organizations are designed to have a life of infinite duration, requiring a process of continuity and stability that causes the organization to build-in objectives, plans, actions, and controls in order to bridge the future. A major construction project has an average life span of between two to five years; 26 months is a more common duration. The shortterm nature of the project requires a rapid assembly of all resources necessary to complete the job. Everyone is constantly aware that the situation is absolutely temporary and will end in the not too distant future. The closest comparison to an organization of this type is a military task force. Key Players. In other organizations, key players are captive to the parent organization where demands of loyalty, fealty, and obedience to rituals of the bureaucracy are required.

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Table 3 Comparison of Construction Culture

Construction Objectives 1. Many companies: varied objectives. 2. May be schedule, profit, cost, safety, professional credo or liability, long or short. 3. May be conflicting-adversaries. 1. Different rewards, depending on organization. 2. More short-terms. 3. May be conflicting; see objectives. 4. More uncertainty. 1. Short-term from beginning to end. 2. Very little continuity, learning as a team. 3. Accelerated mobilization, organization, temporary values and philosophy.

Other 1. Tends to be centralized, homogeneous, topdown driven. 2. Differences are reconciled by single authority. 3. Clear, non-conflicting and controlled. 1. Tied to objectives. 2. Paid in cash and career path payoff. 3. Collective incentives. 4. Many performance measures. 1. Infinite duration. 2. Stable, predictable. 3. Continuity, long-term corrections of problems.

Rewards

Life Expectancy

Key Players

1. Loyal to diverse organizations, thus divided 1. Captive to parent organization. 2. Trained and conditioned to play company as a team. game. 2. Chosen on availability and technical exper3. Vision on company objectives, rewards, tise. long-term progress. 3. View may be on short-term project objectives and conflicting. 1. Organization structures are complex and often conflicting. 2. Networks are extensive. 3. Varied and complex linkages among organizations. 1. Formulated from several sources; may be conflicting or duplicating. 2. Systems may be incompatible. 3. Controls may differ widely. 1. Time-driven schedules. 2. High risk environment. 3. Tentative special relationships. 1. Chart of organization establishes clearer lines of authority. 2. Lines of power clear. 3. Fewer networks.

Structure/ Linkage

Systems/Procedures

1. Formulated from single sources. 2. Integrated and reinforcing. 3. Administered by stable support staffs.

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Time and Space

1. End-date driven; pressure less. 2. Probability of lower risk environment. 3. More certainty and stability in special allocations and usages.

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Some promise also exists that a contributing member of a successful organization will be rewarded with more responsibility, longevity, and higher position. In construction projects, several organizations are represented; the loyalties of the teams go back to their parent organizations. Thus, team loyalties are divided and often conflicting. Hopefully, the Owners Project Manager will be chosen on the basis of expertise in directing construction projects. The OPM must be acceptable to the Project Executive, who must have sufficient influence in the owner organization to support the efforts of the Owners Project Manager. The designer basically has the same decisions to make as the constructor in selecting a project manager. If a construction manager is required, a similar process is followed. Little control is exercised across organizational lines, unless the owner insists on selecting participants. In the final analysis, the key players on project teams usually are chosen by their own project sponsors. The decisions are based on the needs of the separate organizations. Structure and Linkage. Organizational life usually means parceling out responsibility, authority, and accountability. These routine delegations become a flow of lines and blocks, which are known as organization charts. The purpose of the charts is to display who does what and the degree of authority which they are granted. These charts show linkages, from whom to obtain decisions, and the amount of formal power each individual is assigned. Organization charts are a definition of accountability. On construction projects, lines and blocks usually show formal power, authority and accountability, delegations, and relationships. In fact, several such charts may have lines flowing and dotted lines showing contact and coordinating networks. The project may have primary organizational structure as well as attendant structures of service organizations and supporting infrastructures of these organizations. As a result, many key individuals have dual allegiances, responsibilities, power, authority, and accountabilities. No single strand may tie it all together, and the networks can become easily confused across organizational lines. Often informal, efficient shadow organizations are formed by people anxious to get the job done. Parallel relationships may be formed to add efficiency or simply to circumvent a bureaucracy. These alternative networks may be necessary for good performance. Many times, construction projects depend on informal organizations. Systems and Procedures. The operating systems and procedures for finance, accounting, management, scheduling, and control are key elements to any project of appreciable size. The flow of information throughout the entire project system is critical to its function. Different information systems often exist for different objectives. For example, accounting systems may not provide information for some management monitoring requirements. Some departments may require historical control information, while others may need projection forecasts. Systems and procedures in construction projects originate from several sources. Each source may have differing, and even opposing reasons, for needing the information. The owner may be primarily concerned about financial control. The designer is interested in design or construction control. The construction management firm is interested in both, as well as in scheduling and other factors, in some detail. The general contractor must have available production, material, financial, accounting, scheduling, safety, and other regulatory infor-

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mation. In most cases, the general contractor must supply the needs of the owner, designer, and other groups; these requirements place a heavy burden on the constructor. In a traditional non-construction organization, a staff usually supports these needs. Changes in the system also are more easily made; i.e., the system is more adaptive with fewer decision points required for changes. The fact that the constructor may continually have to adapt a system to changing requirements of owners and other user groups clearly illustrates the differences in construction and nonconstruction organizations. The resulting impact on the human factors requires project managers to be resilient to the differing, even opposing, and ever-changing needs of the individuals and groups represented. Time and Space. Production requirements, imposed by the nature of construction, are similar to those found in most manufacturing and other production environments. Design, prebid, and contract production phases have periods of intensity; deadline cutoffs create the formation of various team and individual efforts under acute pressure conditions. Once the construction phase begins, the intensity and frequency of daily operations reach a peak early and usually stay until the punchlist activities begin and the project is turned over to the owners. The conditions are similar to production facilities, where costs of production delays can easily amount to millions of dollars a day. Comparisons of time dimensions and the risks associated with end-date driven schedules yield almost the same results. Construction end-date driven schedules, however, are a significant factor influencing project organization and the individuals assigned. The lost revenue to owners because the facility is not available as planned is often far in excess of the direct costs of construction for the delayed period. The type of contract, whether lump sum or cost reimbursable, changes the onus of time pressure and the associated risks. Lump-sum contracts press contractors, while cost-reimbursable contracts press owners and contractors. The risks associated with schedules, therefore, determine whether time is a penalty or a premium. Risks translate into dollars, safety, customer satisfaction, career opportunities, and much more. On construction projects, risks are numerous and fall on all participants during the process with varying weights. This phenomenon on a project is at variance with most other organizations, which have more predictable risks associated with time. Space considerations for most nonconstruction organizations are closed, permanent in nature, and designed to house groups by function or specialization. These considerations address the need to create an environment and meet basic physical needs, with some priority skewed to comfort and aesthetics. Pre-construction phases have work environments closely parallel to that described. Off-site support groups may have similar facilities, but direct field management and work groups do not once in the construction phases. Space is temporary, as are most transient quarters, with varying degrees of utility, privacy, convenience, and efficiency. Function and utility are paramount. The factors considered primary in nonconstruction organizational environments are considered frills in most construction environments. The physical locations of various work spaces may be either spread out over the project or off-site at several locations. Conclusions. The culture of construction projects has unique qualities that form the backdrop, determine the needs and requirements for people to perform, and deliver high performance projects. Several major cultural

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factors that significantly influence the form and substance of the human organization on projects have been identified; these can be summarized as factors responding to high degrees of risks, often conflicting priorities, goals and rewards, and always uncertainty. The uncertainty factor is a central issue that separates construction requirements from other organizations. A construction project also includes the complex issues associated with several autonomous organizations, each having its own structure and procedures. Human factors must be designed to operate effectively within these variables. Adaptability, resilience, flexibility, guidelines rather than manuals, matrix structures, teams, openness, and leadership are requirements of success. No longer can key managers be chosen for their technical and administrative skills. The reexamination of project requirements for key people is timely and necessary for decisionmakers who set the stage for project implementation. Code of Team Conduct A team is most simply defined as two or more people who make up their minds that they can do something together better than they can alone. Construction projects need teams of people who can do the job better together. Teams require that specific rules be applied in order to work. A specific and unwritten Code of Team Conduct (CTC) is applicable. Refer to Table 4, entitled Code of Team Conduct. Goals. Goals for a particular team explicitly direct the project requirements of a specific group. The safety team should know that it is supposed to keep health and accident incidents to a quantified level. The scheduling team knows it has so many days to develop the CPM. The accounting team has certain deadlines and lag times. The personnel team knows its Affirmative Action Goals and what deviations are tolerable; these are easy ones. The submittal review turnover rates and process become more complicated. These teams need to know the required time frames and acceptable forms when submitting a request for action. Changes are more complicated, certainly, with the numbers of people and reviews necessary before they are approved. The change procedures should dictate priorities. Task. In addition to knowing what the goals are, the team must know how it is expected to operate. The design or construction team should know from the beginning the extent of its powers to act. Some teams are problemsolving only, others are routine review only, and others exist to make decisions. Rules. Every project requires a set of rules to be obeyed; without rules, disorder and frustration result. Teams who know the rules are offered as much freedom as limitations. Generally, when the rules are unclear or are absent, teams limit themselves far beyond what was intended. Relationships. Work group relationships must be clearly defined and understood. The team asks where it fits in the overall scheme of other operating teams. The questions regarding relationships deal essentially with the integration and assimilation of individual efforts within the team. Team leaders must answer questions regarding internal team relationships, and directing managers must answer questions dealing with intragroup relationships. Consequences. Consequences for performing, not performing, and acting somewhere in between the team assignment must be open and shared by all members. Often the risks associated with the uncertainty of actions can be enormous. At other times, little or no risk is involved. There may be a risk of destroying

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credibility with the owner. Only the contractors project manager may know the risk. The team should be apprised of the risks associated with its activities. Risks are always bound to the importance of uncertainty. Personal Values. Team members have their own set of principles and values when they join with others. The extent to which they will assimilate these values determines whether the individuals will be able to work well as a team. The terms used to label the most successful project managers are commitment, dependability, involvement, flexibility, openness, and related values. Another trait is the ability to give and take, or to maintain trust relationships. The senses of teams often operate in a vacuum. Team members cannot see or hear what is going on, but they trust it is happening. Trust does not occur easily on construction projects, but it is essential. Table 4 Code of Team Conduct (CTC) Teams do not function well without strong leaders, but require constant attention and regular maintenance to perform as expected. These actions are the responsibility of key managers. This Code of Team Conduct is defined as each team decides how it will work together. These are the process decisions listed in Table 1 of Section 3. On previous projects, responsibility flow diagrams have been used to define these processes. Figure 14 is a graphic that one Project Management Team developed to define who was going to do what during the contract change process. Key Team Member Selection In every successful organization, top people who can put the pieces together are in demand. These individuals act alone, and together, to shape the task into an end product. Regardless

Goals Rules

Project objectives, team objectives, goal posts, priorities, changes, who dictates? Do I have to agree? How do we play this game? What are no-nos; what can I get by with? Who are rule makers? What happens if I break the rules? What is expected of my team and me? What are the tell-tale signs of unacceptable work, of minimality and fully acceptable work? Where do I fit on the team and what is the big picture? What happens if we do what we are supposed to and if we dont do it? Who cares and how much? Suppose I dont want to go along? Will my values allow me to work the game according to others values? Am I a team player-flexible, willing, open and ready to pitch in?

Task

Relationships Consequences

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Personal Values

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Figure 14 The Change Process

of the number of people or the group effort required, the basic unit remains the individual. The strength of all human factors rests on knowing what kind of individuals are needed, particularly in key positions, and on making certain that these persons are on the job. Construction projects, as a whole, have a culture that requires extraordinary key player talent at the top of the pyramid. The nature of construction demands people who can move with the unique and dynamic conditions of a changing environment. Knowing the requirements of a project environment, culture, and selecting key individuals to fit those requirements are essential to good performance. Owners often pay only passing importance to what the project requires of its top project representatives. This can be a costly

and troublesome miscalculation. Contractors may make the same error, take a cursory look at what is required, and make the selection of a project manager based on other needs. These judgments, or misjudgments, by owners and contractors are not made knowingly, but are based on lack of awareness. The selection process plays a critical part in the desired outcome. Owners and contractors should separately assess the needs of the project for top managers in considerable detail, and select only those whom they are confident will be fully able to meet these needs. The selection of individuals should not be made before this assessment. Key team members considered are:
l l

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Owner Project Executive Owner Project Manager

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l l

Contractor Project Managers Work Managers

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As in any strategy, the options for selection of key project people are weighed, and the process should be as rational and efficient as possible. Few decisions made on the project are as important as these. Agreement on the importance of having a fully qualified Contractor Project Manager is hardly an issue between contractors and owners; defining the qualifications may be an issue. On the other hand, the qualifications and authority of the owners top representatives, usually a Project Executive and Project Manager, often are not considered to be of prime importance. This is an issue frequently neglected by owners and contractors. The consequence of the selection decisions is borne out by detailed research into success and performance factors conducted in all sectors of the construction industry. These findings are consistently validated, by owners and contractors, outside of the published findings. Making a detailed assessment of the project to determine what top level skills are required precedes actual selection. This step takes a probing, diagnostic look at the project environment and culture. It is necessary to know what the conditions are, and are expected to be, throughout the entire life span of the project. The key players must drive the project through these conditions and arrive at expected or better-than-expected results. Owners and contractors can make their own checklists and weigh the conditions numerically. In some way, the factors should take on relative weights of importance. The weighing allows for some factors to be traded off, or compromised, because no one can perfectly handle all factors. Whatever the checklist includes, the factors in Table 5 should be considered.

On close examination, the factors in Table 5 begin to describe what is required of the individuals who manage them. It is not necessary for a person to have experienced all of these factors on previous projects. Though experience gives us a vantage point not otherwise possible, it may not always be a teacher. Recent studies demonstrate that project managers who have more years of construction experience consistently effect better budget performance than managers with less construction experience. Other project performance factors, such as productivity and schedule, are influential, but to a lesser degree. What is the bottom line? Experience counts heavily for improved performance; experience, however, should be reviewed with close scrutiny. Selecting the Owner Project Executive The Project Executive should possess two distinct sets of factors. First is what the organization gives to the person and the position; second are those attributes that the person brings to the position and the project. As important as any skills and experience which the person may now possess, the owner must give the person and the position the authority required to be successful. The reasons are obvious. As the project unfolds, continuous problems must be solved and decisions made that require authority, both formal and informal. The historical relationships which develop around positions and people follow different routes. Often, they are not only expedient, but expected. These routes are not found in manuals or position descriptions. Being aware of them and using unprescribed and informal methods can assist in getting the job done. The informal organization must be conveyed to the position and the person, who must be adept at using it.

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The personal skills and experiences important to the project are: Mind-set Integrator Communicator Problem-solver and decision-maker Manager-leader Mind-Set. The Project Executive should be able to think conceptually and have as a frame of reference the broad scope of owner objectives, strategies, and tactics. Conceptual skills should enable owner wants and needs to surface, even if these are abstract. The Project Manager can then translate them into the languages of architect, engineer, and contractor. Integrator. As the principal bridge between the owner and project service groups, the Project Executive should be able to integrate owner internal needs and external intragroup activities. The role as an integrator is particularly important. Within the organization, the owner marketing, manufacturing, and construction groups may have conflicting goals for the facility. Settling internal disputes and integrating objectives requires an individual with authority, personal persistence, and persuasive powers. Table 5 Project Assessment for Selecting People (A Checklist) Project Factors As A Basis For Selection Size of Contract Type of Contract Type of Construction Complexity Owner-Group Owner-Relations Support Groups Contingencies
l

Outside of the organization, a number of project groups may require monitoring and a molding into shape to be sure that everyone is contributing to the accomplishment of the goals. These are not coercive, but integrating, activities and require a person who can forge minds and actions in one direction. Communicator. The Project Executive is an information broker, a conduit and filter, and a communicator. As a conduit and filter, the Project Executive may be the interface between designer and client, engineer and client, project manager and owner hierarchy, and the contractor and owner hierarchy. The Project Executive has a major communications responsibility in coordinating these entities as well as those of the staff. The function as communicator may be the most important attribute. Problem-solver and decision-maker. Good problem solvers are objective, analytical, and realistic. Use of staff to ferret out facts and alternatives is a part of the process of sequential and simultaneous problem identification and solution. Decision-making begins with the authority to make decisions. Since timing is so related to cost in construction, the ability to confront a situation head-on and prescribe a specific

Dollar value Lump-sum, cost-reimbursable, design-build, percentage fee Industrial buildings, heavy/highway specialty Complexity of design, construction, changes, site, environment, lifestyles Private, government, public need, owner industrial group Effect of other owner projects, relationship to past projects Separate A/E, in-house, design-build, construction management Subcontractor availability, labor and material availability, disputes, risks

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action can mean the difference among a good, mediocre, or bad decision. Aside from technical qualifications, the ability to view the details and scope of the project and become an effective leader of the team carry almost equal weight. Few projects stagger from technical problems; more falter from the myopia of those who direct them. Selecting Project Managers Considerable research is available regarding the position of Construction Project Manager. In general, these comments apply to all project managers, whether for the designer, owner, or other contractors. The Project Manager (PM) is viewed by most as the hands-on technical expert on how to build the project. The PM should have a well-established construction background and formal training to assist in carrying out responsibilities. In other industries, the manager may often pass the requirements for technical expertise to subordinates and retain only enough to manage or coordinate the work of others. In construction, the PM is the resident expert and the manager of a total effort, having enormous responsibilities for the delivery of goods and services by others. This section portrays the Project Manager as a technician, a manager, and a leader in the fullest meaning of the terms. Technical. The Project Manager must understand and interpret the design, engineering, and construction aspects of the project; this requires a hands-on technical background. Management. The Project Manager manages all of the resources required to construct the job. These include people, materials, equipment, time, and subcontractors. To handle these resources, the PM must organize, administer, staff, budget, coordinate, and communicate. Also, contracts, policies, procedures, information systems, and performance factors must be interpreted and followed. Much of the task must be delegated to trained subordinates. The PM must understand enough to ask tough questions and keep the project on course. Scope and Planning. The Project Manager should know when a scope is lacking, or otherwise obscure, and work to refine it to completeness and understanding. The task requires an eye for clarity, an ability to probe and ask hard questions, the professionalism to work with clear objectives and methods, and the ability to convince others that scopes must be carefully prepared. Planning results in the need to anticipate and control factors. Defining scopes and planning are related, since both place an emphasis on the necessity to understand what is to be accomplished. Human. The Project Manager must be a leader. Commitment, involvement, communication, flexibility, openness, adaptability, perception, and being a team player should be attributes. Placing an emphasis on project culture and environment is important. See Figure 15 entitled Project Manager Factors. Few people, if any, are either absolutely unsuitable or perfect candidates to be a Project Manager. It is easier to select out the poor candidates than to select in the good ones. Yet selecting out, contrary to the negative sounding nature of the process, yields candidates who can pass the most severe of tests. The military and NASA are masters at the techniques of selecting out as a method for selecting in the best. Concessions are to be made in the selection process and rules of thumb often govern the use of compromises. In making these concessions, the project assessment should be made and the candidates selection based on appropriate qualifications. There is no exchange for the responsibility and authority the position must have. Also,

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Figure 15 Project Manager Factors

there are no trade-offs for intelligence. Third, the ability to work with people and complement their efforts with effective, competent behavior cannot be compromised. Lastly, if someone is available to whom technical management, scope, and planning can be delegated, then a possibility for compromise exists. Identifying people who have these attributes is difficult. A one- or two-page project history does not indicate a trend. On the other hand, a career history often is beneficial in assessing an individuals qualifications. Probing work histories is best accomplished by acquiring performance information on recent projects, if possible. This may not be sufficiently revealing even to bottom-line evaluators. Also, talking with superiors within the current organization often is heavily biased. Superiors in past organizations are less apt to be biased. Subordinates, particularly superintendents from past projects, usually are candid, yet hyper-critical about unsuccessful projects. Often, what people hesi-

tate to respond to or deliberately leave out will reveal more than what is mentioned freely. How well a person and the team deliver on promises addresses many values desired in a Project Manager; a competent following also means a winner is leading the way. A series of laws dictates how to access an individuals past work record. Consulting with a human resources specialist regarding the risks can help. Also, a different series of laws protects individuals from discrimination in the selection process. Care should be taken to select on merit, and the decision should be defensible. Work Managers Work Managers lead the teams accomplishing the work; therefore, they need both technical and administrative skills. Most construction employees start in a position requiring narrow technical ability. As they gain experience, they may become department supervisors. As a

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necessity of advancement, they learn to delegate and manage teams successfully. Work Managers often have advanced to a level requiring responsibility for several departments. The lead designer, for example, must deal with structural, electrical, civil, and mechanical technologies. The fabricator must know welding and material procurement. The general superintendent coordinates earthwork, concrete, HVAC, and the power supply. All of these Work Managers probably progressed from a certain technology base and now must be knowledgeable of several disciplines. Work Managers team relationships are more complicated. They manage at least one level of supervision; the planning, delegation, and monitoring process is more formal. They may need assistance from a technical staff. These managers also are responsible for training their subordinates in the delegation process. In addition, a Work Manager must be able to communicate horizontally with other Work Managers and vertically with the respective manager. Work Managers may have different levels of formal education, which may create a cultural barrier detrimental to understanding and communicating with other Work Managers. For example, the professional attitude of the designer is much different than the get-it-done attitude of the construction superintendent; however, the communication and understanding between these two Work Managers is essential. Selection of Work Managers first must be based on the technical skills required by the project. Second is the assessment of their ability to manage the work of several supervisors. This requires that work managers understand and use cost/schedule systems and manage people successfully. The larger the organization, the more important formal management tools become. Work Managers must interface well with the contractors Project Manager, who may have personal preferences. Such preferences should be a priority because a working relationship has already been established. In addition, effective horizontal communications between Work Managers may require support from the Project Management Team. Team Development Assembling a group of individuals does not make a team. Time is needed to cast off individual differences and learn to work together. Individuals usually accept a project assignment with little or no knowledge of the individuals with whom they will be working. They make an incremental career choice without complete knowledge. The responsible leaders should understand the phases of team development so that they can hasten the process and get the team up to speed as soon as possible. Signing On. Signing on is the expression used to describe what happens when individual members formally are attached to a project. A good case can be made for presenting the signing on process as a critical threshold point for all teams. Sports teams assign the highest priority to the first few days of training camp and prepare for new members in advance of their arriving at the training site. Old members and leaders answer questions in detail by their verbal and nonverbal actions and orientation. It is not a hand-holding exercise. It is an often tough, direct, bone-breaking, but thorough introduction to the way business is done. In effect, it is handing over a map of the territory. To sign on, the new member shows up and asks the basic questions: what is the game, what are the objectives, the rules, what are the consequences and where do I fit into all of this? The signing-on process anticipates these questions and answers them directly. Several items

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Figure 16 Stages of Team Development

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for detailing the answers need particular emphasis by those responsible. First, emphasize the projects ability to meet professional and career desires. Second, stress the communications network, how it is applied and how the informal structure operates. Third, discuss the project and job performance measures and evaluation procedures. Finally, provide a specific date for a checkpoint to review how it is working from the members point of view, without the pressures of a formal performance review. This may be done a few weeks after signing-on. The details of the predictable phases that teams move through vary considerably. The basic fundamentals remain fairly constant and are easily identifiable. Each passage, or stage, possesses critical team tasks, typical behaviors arising out of those tasks, and certain leader requirements. The four stages are indicated in Figure 16 (see previous page):
l l l l

3. Skipping any passages creates negative performance. 4. With every serious challenge, the process is repeated or pushed back one or two steps. The dilemma that many project teams are faced with is composed of the contract-supported, adversarial legal system on one hand and wanting to work as a team on the other. Unless the dilemma is managed, the work is stymied and the team grinds down to a slow, ineffective pace. Construction teams tend to get stuck in the storming phase. Our traditional roles incline us to compete and fight over the right to give short-term direction rather than build consensus. There is a growing practice, and acceptance, of the team-building process to work out the conflicts that prevent teamwork. The basic problem is that the human race does a poor job of talking to itself. We learn to play roles. In construction, many of these roles are traditional and in conflict. As an example, the designer and superintendent are not expected to get along with each other. As long as the team leader continues to play the role, usually that of The Boss, the other team members will continue to play their roles. We continue to have hidden agendas, lack of candor and misunderstandings. A professional facilitator is needed to lead the discussion so that The Boss can just be The Boss. This allows the rest of the team to be just Joe, Mary and Tom, and clearer communication can take place among these individuals without the trappings of the roles they have learned to play. The usual process calls for a facilitator to interview team members before the team-building session. The team then meets in a relaxed environment, preferably away from the site

Forming Storming Norming Performing

The following four basic considerations help in understanding how these stages develop and relate to one another: 1. Each stage builds on the previous stage. 2. At each stage, there is potential for negative responses to current dilemmas in the team.

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Forming: Storming: Norming: Performing:

fragmentation disruptive conflict rigidity ritualistic activity

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without job pressures, and the facilitator presents feedback on some of the concerns and views expressed during the interviews. Obviously, sources of information are not disclosed in order to create an atmosphere for open, objective discussions without personal liabilities. The facilitator may begin with a few exercises (games) that allow the individuals to relate to one another without risk. Then, the facilitator will begin objective discussions of concerns and teamwork-impeding barriers that have surfaced in the open forum. The process may require several hours, or even subsequent sessions, to resolve the conflict, dissolve the barriers, and create a foundation of trust and mutual understanding on which team members can build. Assignments may be made to several team members, specifically to improve teamwork. A future session may be scheduled to review assignment results and monitor progress. The following considerations should be reviewed prior to beginning a team-building process: 1. Is project management willing to commit the time and expense of team building, which may require not only the time of team participants meeting for several hours, but the expense for the facilitator to gather information from each participating member and project management? 2. Is project management prepared to live with the consequences of the teams decisions for handling the issues and not induce overriding sanctions at the conclusion? 3. Which team is having problems? Should contractor teams have in-house programs before the project management team tries it? 4. Are the ranking team managers willing to forego their project positions and allow free-flowing communication? 5. Does the facilitator have a track record of handling business groups with adversarial issues as well as good chemistry with construction people? This same process also is adaptable to routine teamwork maintenance at scheduled intervals during the project. The earlier these sessions begin, the better the success potential. Since the owner benefits the greatest from enhanced teamwork, the Project Executive should consider initiating the process.

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Chapter 7

Summary

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In studying and evaluating what makes some projects successful, the CII Project Organization Task Force concludes that the following key factors contribute to the success of a project. First is a recognition by all participants in the project that although the owner is ultimately buying a facility, the process and the people who are responsible for designing, procuring, and constructing the facility also are part of what the client is buying. Recognizing this, the owner must create an atmosphere which fosters a close-knit team working toward a common goal, i.e., completion of a quality facility on time and within budget. The concept of the owners buying a process/team aligns well with the CII concept of partnering. The team, structured hierarchically with the owner providing overall direction, consists of engineering and construction organizations. Because of the high degree of interaction between various organizational entities, successful projects generally involve a complex communications network at all levels within the organization. One of the most important concepts presented is the uncertainty matrix described in more detail in Chapter 6. The matrix consists of two elements of uncertainty/certainty-what and how. What relates to the ultimate definition of the physical facility, and how relates to the process of completing the facility from the initial idea through facility completion. In order to complete a project successfully, the total project team must reach agreement relative to the level of project uncertainty at the onset and at various milestones throughout the project. After agreeing, the entire team then is working with a common understanding of the project definition, which enhances the correct major actions and decisions necessary to complete the project. The task force also studied tools and mechanisms available to project teams to ensure project success. The primary tools during the initial phase of the project are establishing overall project objectives, completing the design basis for the facility, and preparing an execution plan to accomplish the work. Using these tools, the traditional planning, scheduling, and budget tools promoted by CII can be used to monitor and control the efforts of the project team during detailed implementation of the design, procurement, construction, and startup process. These tools provide the mechanism to reduce uncertainty, from both a what and how perspective during the course of the project. Finally, as important as the above considerations are to the success of a project, the final and most important factor to success is selecting appropriate management and supervisory personnel at all levels of the project organization. These personnel should be leaders, with a strong close out drive and an ability to work as integrated members of a team with a common goal.

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References

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1. Keidel, Robert, Game Plans: Sports Strategies for Business, E.P. Dutton, 1985. 2. Bennis, Warren, and Nanus, Burt, Leaders: The Strategies for Taking Charge, Perennial Library, 1985. 3. The Business Roundtable, Report A-2, Construction Industry Cost Effectiveness (CICE) Project, August 1982. 4. Construction Industry Institute Publication 8-2, Input Variables Impacting Design Effectiveness, July 1987. 5. Salimbene, Rory A., and Ashley, David B., Achieving Construction Project Outcomes, Report No. UTCEP-86-2, The University of Texas at Austin, December 1986

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Project Organization Task Force Membership Len Harris, Brown & Root Braun, Chairman Jim Buettner, Rust International Jim Carroll, Morrison Knudsen Don Dickson, Houston Lighting & Power Bob Geile, Monsanto Bill Godley, Davy McKee Ray Gruwell, Stone & Webster Tom Horst, Exxon Greg Howell, University of New Mexico Jerry Hopper, Cambridge Group Bob Knight, BE&K Jay Leininger, Gilbert/Commonwealth Phil Philliou, John Brown E&C Jim Rowings, Jr., Iowa State University Dave Schweikert, Metric Constructors Tom White, AT&T John Wysocki, Procter & Gamble Past Members R. A. Arnstein, John Brown Inc. Michael D. Avant, Davy McKee C. B. Clough, Procter & Gamble R. E. Fulghum, Houston Lighting & Power N. E. Harrison, North Brothers R. Jaggard, U. S. Dept. of Defense R. E. Levit, Stanford University Neil L. MacFarlane, Exxon V. D. McCaffrey, AT&T R. J. Micholas, PPG Industries D. R. Mittlestadt, Metric Joe M. Nolan, IBM J. A. Prall, Procter & Gamble Dave Spivey, U. S. Dept. of Defense, past chairman F. J. Talasco, General Electric Co. Douglass J. Warner, Chevron Ronald F. White, Texaco, past chairman Ronald R. Wood, Black & Veatch * Principal Authors Editor: Rusty Haggard

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Member Companies AT&T Air Products & Chemicals, Inc. Aluminum Company of America American Cyanamid Company Amoco Corporation Anheuser-Busch Companies, Inc. Atlantic Richfield Company Atochem North America Inc. BP Oil Company Chevron Corporation Consolidated Edison Co. of N.Y., Inc. Dow Chemical U.S.A. E.I. duPont de Nemours & Co., Inc. Eastman Chemical Exxon Research & Engineering Co. FMC Corporation General Electric Company General Motors Corporation Glaxo Inc. Hoechst Celanese Corporation Hoffmann-LaRoche, Inc. Houston Lighting & Power Company ICI Americas Inc. International Business Machines Corp International Paper Company James River Corporation Mobil Research & Development Corp. Monsanto Company Northern States Power Company Ontario Hydro J.C. Penney Company, Inc. Pfizer, Inc. Phillips Petroleum Company Potomac Electric Power Company The Procter & Gamble Company Shell Oil Company Southwestern Bell Telephone Tennessee Valley Authority Texaco Inc. U.S. Bureau of Reclamation U.S. Department of Defense U.S. Department of the Navy Union Carbide Corporation Weyerhaeuser Company Guy F. Atkinson Co. of California BE&K Construction Company The Badger Company, Inc. Barnard & Burk Group, Inc. Bechtel Group, Inc. Belcan Engineering Services, Inc. Black & Veatch Engineers-Architects Blount, Inc. Brown & Root, Inc. John Brown E&C Inc. Cherne Contracting Corporation Cianbro Corporation CRS Sirrine Engineers, Inc. Davy McKee Corporation Day & Zimmermann, Inc. Ebasco Constructors Inc. Eichleay Holdings Inc. Fluor Daniel, Inc. Ford, Bacon & Davis, Inc. Foster Wheeler Constructors. Inc. Fru-Con Corporation Gilbane Building Company Gilbert/Commonwealth, Inc. Graycor, Inc. Gulf States, Inc. Jacobs Engineering Group, Inc. Jones Group, Inc. The M. W. Kellogg Company Lummus Crest Inc. Marshall Contractors Inc. Morrison Knudsen Corporation North Bros. Company The Parsons Corporation Peter Kiewit Sons, Inc. Rust International Corporation S&B Engineers and Constructors Inc. Sargent Electric Company Sordoni Skanska Construction Co. Stone &Webster Engineering Corp. Torcon, Inc. Turner Construction Company United Engineers & Constructors Int. Woodward-Clyde Consultants H. B. Zachry Company

Participating Academic Institutions Arizona State University California-Berkeley Carnegie-Mellon University University of Cincinnati Clemson University Colorado State University University of Colorado Georgia Institute of Technology University of Houston Iowa State University Louisiana Tech University University of Kentucky Lehigh University University of Michigan University of New Mexico North Carolina State University Oklahoma State University Oregon State University Penn State University Purdue University Stanford University Texas A&M University University of Texas at Austin University of Washington University of Wisconsin, Madison Virginia Polytechnic Institute Worcester Polytechnic Institute