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Essentials of

Construction Project
Management
CE-413
Spring 2015

Prof. Rizwan Farooqui


Modern Project Management

Topic 1
What is a Project?
• Project Defined
–A complex, nonroutine, one-time effort limited by time,
budget, resources, and performance specifications
designed to meet customer needs.

–A project is a temporary endeavor consisting of a


sequence of connected activities undertaken by
limited resources to create a unique product or
service that must be completed within specified
time, within budget, according to specification,
[and safely] – PMI (PMBOK)
What is a Project?
• Major Characteristics of a Project
–Has an established objective.
–Has a defined life span with a beginning and an end.
–Requires across-the-organizational participation.
–Involves doing something never been done before.
–Has specific time, cost, and performance
requirements.
Exercise

• Which ones are NOT projects?


1. Building an extension to a house
2. Shelving books at library
3. Baking a wedding cake
4. Designing a new automobile
5. Routine manufacture of an Apple iPad Air
6. Taking class Notes
7. Writing a term paper
8. Responding to a supply-chain request
9. Developing a supply-chain information system
10. Watering your plants twice a week.

Prof. Rizwan U. Farooqui, Ph.D.


Programs versus Projects
• Program Defined
–A series of coordinated, related, multiple projects that
continue over an extended time and are intended to
achieve a goal.
–A higher level group of projects targeted at a common
goal.
–Example:
• Project: completion of a required course in project
management.
• Program: completion of all courses required for a business
major.
Projects and Strategic Planning
• Projects are means of:
– Achieving organization’s strategic goals & objectives;
– Implementing strategic changes

• Projects are often the result of strategic considerations


that include:
– Specific Market demand (e.g. Earthquake-Resistant Housing)
– Strategic Opportunity/ Business need (e.g. Solar Panels)
– Specific Customer request (ERP for Construction Business)
– Technological advancement or Breakthrough (e.g. BIM)
– Legal requirement (e.g. Boeing)
– Ecological/ Social need (e.g. Green Buildings)

Prof. Rizwan U. Farooqui, Ph.D.


Project Constraints

Tradeoffs:
– Scope ↑= Time ↑ + Cost ↑
The Triple Constraint
– Time ↓ = Cost ↑ + Scope ↓
Time
– Budget ↓ = Time ↑ + Scope ↓

Quality
Constraints:
– Help evaluate competing demands Cost Scope

– Facilitate prioritization
– Help use the prioritization throughout
– Aid analyzing impact of changes

Prof. Rizwan U. Farooqui, Ph.D.


Project Stakeholders
• Stakeholders are:
– People involved in or affected by project activities
– People who may exert influence over the project and its results

• Stakeholders include:
– The project sponsor
– Project team
– Support staff
– Customers
– Users
– Suppliers and vendors
– Opponents to the project
Key Project Success Parameters
• Scope,
• Time,
• Cost,
• Resources,
• Quality,
• Safety.

Rizwan U. Farooqui, Ph.D.


Why Projects Fail?
• Only 34% of projects Succeed! (ref. Standish group)
–Poor Communications
–Scope Creep
–Poor Planning
–Week Business Case
–Lack of Management Direction and Involvement
–Incomplete Specifications
–Mismanagement of Expectations

Prof. Rizwan U. Farooqui, Ph.D.


Project Life Cycle

1. Concept and Feasibility Studies


2. Engineering and Design
3. Procurement
4. Construction (Execution)
5. Project Close-out and Start-up
6. Operation and Utilization

Rizwan U. Farooqui, Ph.D.


Concept and Feasibility Studies
Initiation:
• Client/ owner develops an idea and discusses with concerned
• Owner hires key consultants
Process:
• Project Formulation
• Feasibility Studies
– Need Analysis
– Requirement Analysis
– Conceptual Analysis
– Technical Analysis
– Economic feasibility
– Environmental Impact Assessment (EIA)
End Deliverables
• Feasibility Report, Preliminary Estimate and Program
• Go/ No-Go Decision By Client
Rizwan U. Farooqui, Ph.D.
Engineering and Design
Initiation
• Go Decision By Client
Process
• Preliminary Engineering and Design – almost 30%
• Investigation and Evaluation of Design Alternatives
• Comparative Economic Studies
• Budget Estimate (high-level)
• Value Engineering (for fast track projects)
• Breakup of Project in Work Packages (for fast track projects)
• Master Schedule for Work Packages (fast track)
• Detailed Engineering and Design
– Finalization of Design Systems
– Breaking Down, Analyzing and Designing the Systems and its Elements so that it
complies with Standards of Safety and Performance
– Budget/ Systems Estimate (detailed-level)Value Engineering (for fast track
projects)
End Deliverables
• Drawings and Specifications
Rizwan U. Farooqui, Ph.D.
Procurement
Initiation:
• Drawings and Specifications
Process:
3.2.1. Bid Procurement
• Analysis and Selection of Contractors for Prequalification
• Contract Documentation
• Tender Floating
• Fair Cost Estimate and Bid Estimate
• Value Engineering (for fast track projects)
• Analysis and Recommendation of Contractors for Award
• Contract Terms and Conditions
• Contract Agreement and Award
3.2.2. Resource Procurement
• Obtaining Material
• Obtaining Equipment
• Obtaining Skill
End Deliverables:
• Award of Contract(s)
Rizwan U. Farooqui, Ph.D.
Construction
Initiation:
• Award of Contract(s)

Process:
• Construction Plan Development and Approval
• Site Setup
• Mobilization
• Organization and Coordination of all Resources (labor, equipment, permanent and
temporary materials, supplies and utilities, money, technology and methods, and time)
• Preliminary site works
• Civil, MEP, HVAC works
• Value Engineering (for fast track projects)
• Initial Testing of Facility

End Deliverable:
• Project Handover to Client/ Owner

Rizwan U. Farooqui, Ph.D.


Project Close-out and Startup
Initiation:
• Project Handover
Process:
• Testing, Adjusting and Correcting (to make sure that all Project Components
function well together as a total system)
• Settlement of Punch list Items
• Warranty Period - Repair and Maintenance within Designer’s and Contractor’s
Warrantee period (a period wherein the designer and contractor can be
called back to correct problems that were not immediately evident upon
initial testing and to make suitable adjustments. At the end of Warrantee
Period, Retention money is returned to designer/ contractor)
• Initial Capital Turnover
End Deliverable:
• Fully Operational Facility

Rizwan U. Farooqui, Ph.D.


Operation and Utilization
Initiation:
• End of Start-up Period

Process:
• Operational Utilization
• Capital Turnover
• Regular Periodic Maintenance
• Alterations and Expansions

Rizwan U. Farooqui, Ph.D.


Approaches to Implement Construction
Projects

• Normal Track

• Fast Track

Rizwan U. Farooqui, Ph.D.


Approaches to Implement Construction
Projects

Rizwan U. Farooqui, Ph.D.


Approaches to Implement Construction
Projects

Rizwan U. Farooqui, Ph.D.


Fast Track Vs Normal Track

Rizwan U. Farooqui, Ph.D.


Approaches to Implement Construction
Projects
Normal Track Approach
Pluses
• Less Risk
• Traditional - understood fairly well by the project participants
• Easier to implement in all phases
• Less coordination and cooperation requirement
• Less chances of errors, omissions and mis-interpretations
• Client can know project cost upfront of construction
• Less construction price to client/ owner

Minuses
• Design-Construction integration
• Value Engineering can not be applied
• More time requirement

Rizwan U. Farooqui, Ph.D.


Approaches to Implement Construction
Projects
Fast Track Approach
Pluses
• Speed
• Design-Construction integration
• Value Engineering application during design, procurement and construction
• Possibly more project value at less project cost
Minuses
• More Risk
• Difficult to implement due to phase interactions
• Immense coordination and cooperation requirement
• More chances of errors, omissions and mis-interpretations
• Client can not know project cost upfront of construction
• More construction price to client/ owner

Rizwan U. Farooqui, Ph.D.


DEFINING PROJECT MANAGEMENT
According to PMI (Project Management Institute),
Project Management is:

“the application of knowledge, skills, tools, and


techniques to project activities in order to meet or
exceed stakeholder needs and expectations from a
project.”

Rizwan U. Farooqui, Ph.D.


Project Management Life Cycle
Construction Project (Management) Life Cycle Processes

• Defining,
• Planning,
• Executing/ Implementing, and
• Delivering,

(see Figure 1).

Rizwan U. Farooqui, Ph.D.


Project Mgt Life Cycle

FIGURE 1

Rizwan U. Farooqui, Ph.D.


KEY PROJECT MANAGEMENT
KNOWLEDGE AREAS/ FUNCTIONS

• Project Scope Management


• Project Time Management
• Project Resource Management
• Project Cost Management
• Project Quality Management
• Project Risk Management
• Project Safety Management
• Project Procurement Management
• Project Communications Management
• Project Integration Management
• Project Stakeholder Management

Rizwan U. Farooqui, Ph.D.


Key Project Management Competencies
And Skills
Project Management is a Science as well as an Art. It
requires two interdependent set of skills (Figure 2).
• Technical/ Hard/ Quantitative/ Scientific Set of Skills
– Eg.: Defining Scope; ; Developing Work Breakdown Structures;
Scheduling; Estimating; Resource Allocation; Budgeting; Cash
flow analysis;

• Non-Technical/ Soft/ Qualitative/ Socio-cultural/


Creative
– Personal: Commitment; Initiative; Analytical thinking; etc.
– Interpersonal: Verbal and Written Communication; Influence; etc.
– Management: Leadership; Problem Solving; Decision Making; etc.

Rizwan U. Farooqui, Ph.D.


The Technical and
Sociocultural
Dimensions
of the Project
Management
Process

FIGURE 1.3

Rizwan U. Farooqui, Ph.D.


The Challenge of Project Management
• The Project Manager
–Manages temporary, non-repetitive activities and
frequently acts independently of the formal
organization.
• Marshals resources for the project.
• Is linked directly to the customer interface.
• Provides direction, coordination, and integration to
the project team.
• Is responsible for performance and success of the
project.
–Must induce the right people at the right time to
address the right issues and make the right decisions.

Rizwan U. Farooqui, Ph.D.


Construction Project Management Key
Role and Responsibilities

• Develop and Communicate Clear Definition of Project Objectives and


Implementation Program
• Investigation of Alternative Solutions through Constructive Communication
• Offering Best Value to Client while Meeting/ Exceeding the Needs and
Expectations of All Stakeholders
• Developing Detailed Work Plan, Delegating Responsibilities
• Implementing the Plan, Monitoring and Controlling Project Progress
Investigation of Alternative Solutions through Constructive Communication
• Evaluating Final Project Performance and Learning from Mistakes

Rizwan U. Farooqui, Ph.D.