Construction Project Management

Prepared by: Roqaya Amin

Reviewed by: Eng. Hatem Mourad
 Course Outlines:
• Definition of Project
• Stakeholders
• Contract Documents
• Abbreviations
• Construction Project Management Basics
• How to Obtain a Construction Management
Project
• Business Models for Construction Projects
• Project Management Principles and Process

Prepared by: Roqaya Amin

 Definition of Project
Prepared by: Roqaya Amin
 Definition of Project

Is a temporary endeavor with a beginning and an end

creates a unique product, service or result

Prepared by: Roqaya Amin

 Stakeholders
Prepared by: Roqaya Amin
 The Owner

The Consultant
Operation Authority
(PM)

The Contractor

Stakeholders
Prepared by: Roqaya Amin
 The Owner
Prepared by: Roqaya Amin
 Who is the Owner?

Organizations or individuals for whom a construction

project is carried out that is done as part of a business

Prepared by: Roqaya Amin

 The Owner Duties
• Make suitable arrangements for managing their project,
enabling those carrying it out These arrangements include:
– Appointing The Contractor and The Consultant to the
project
– Allowing sufficient time and resources for each stage of
the project
– Making sure that any Sub consultant and Sub contractor
appointed carry out their duties in managing the project
– Making sure suitable welfare facilities are provided for
the duration of the construction work

Prepared by: Roqaya Amin

 The Owner Duties
• Maintain and review the management arrangements
for the duration of the project
• Provide pre-construction information
• Ensure that the contractor prepares a construction
phase plan before that phase begins
• Ensure that the Consultant revised project plans as
necessary and made available to anyone who needs
it for subsequent work at the site

Prepared by: Roqaya Amin

 The Owner Duties
• Responsible for the finance of the project (paying
due amounts to; Consultants, Contractor, Authority
fees and others)

Prepared by: Roqaya Amin

 The Consultant
Prepared by: Roqaya Amin
 The Consultant
PM

PM

T.C Support

Contract
DC Administrator

Planner

RE
Q.S

Stru. Dep. Arch. Dep. Mech. Dep. Elec. Dep Surveyors

The Consultant
Prepared by: Roqaya Amin
 Who is the Consultant?

Organizations or individuals appointed by the Owner

with sufficient knowledge

Prepared by: Roqaya Amin

 The Consultant Duties
• Plan, manage, monitor and coordinate in the pre-
construction phase of a project. This includes:
– Identifying, eliminating or controlling foreseeable risks
– Ensuring designers carry out their duties
– Prepare and provide relevant information to other
duty holders.
– Liaise with The Contractor to help in the planning,
management, monitoring and coordination of the
construction phase.
– Responsible for QC, QA and Safety.

Prepared by: Roqaya Amin

 The Contractor
Prepared by: Roqaya Amin
 The
Contractor

PM

Contract Planning and Construction

QC/QA T.O Financial Dept. Cost Control DC Purchasing HSE Dept.
Administrator Control Manager

Stru Stru Contract Site Manager

Arch Arch. QC Warehouse

Mech. Mech. T.O

Elec. Elec.

IT Eng.

Material Eng.

The Contractor
Prepared by: Roqaya Amin
 Who is the Contractor?

Organizations or individuals who carry out the actual

construction works.

Prepared by: Roqaya Amin

 The Contractor Duties

• Plan, manage, monitor and coordinate in the

construction phase of a project. This includes:
– liaising with the Owner and Consultant
– Preparing the construction phase plan
– Organizing cooperation between sub contractors
and coordinating their work

Prepared by: Roqaya Amin

 The Contractor Duties

• Make sure:
– Suitable site inductions are provided
– Reasonable steps are taken to prevent
unauthorized access
– Welfare facilities are provided

Prepared by: Roqaya Amin

 The Authority
Prepared by: Roqaya Amin
 Authority

• Responsible for giving all necessary approval:

– Building permits
– Civil defense approval
– Elevators permissions
– Utilities approvals (Water – electricity –
telephones – gas - .. etc)

Prepared by: Roqaya Amin

 Operations
Prepared by: Roqaya Amin
 Operation (requirements and approvals)

• Hotel Operator (Hilton – Sheraton – Four Seasons)

• Hospital Operator (Cleopatra – Dar Al Fouad - .. )
• Food industries (Macdonald – KFC- … )

Prepared by: Roqaya Amin

 Contract Documents
Prepared by: Roqaya Amin
 Contract Documents
• Contract Agreements and sub-contracts
• Addendum
• General Conditions
• Special Conditions / Scope of Work
• Specifications
• Bill of Quantities
• Method of measurement
• Drawings
• Soil investigation report
• others

Prepared by: Roqaya Amin

 Abbreviations
Prepared by: Roqaya Amin
 Abbreviations
• LOA ► Letter of acceptance
• LOI ► Letter of Intent
• COC ►Condition of Contract
• SOW ► Scope of Work
• SPEC ► Specifications
• BOQ ► Bill of Quantities
• MOM ► Method of statement

Prepared by: Roqaya Amin

 Abbreviations
• DWG ► Drawings
• SCR ► Site Clarification Request
• TD ►Transmittal of Documents
• SD ► Shop Drawings
• BBS ►Bar Bending Schedule
• RFI ►Request for Inspection
• PQP ► project Quality Plan

Prepared by: Roqaya Amin

 Abbreviations
• MS ► Submittal for Approval of Materials
• RFMI ►Request for Material Submittal
• SI ► Site Instruction
• VO ►Variation Order
• M&O ► Manuals & Operations
• T&C ► Testing and Commissioning
• TOC ►Taking Over Certificate

Prepared by: Roqaya Amin

 Construction Project Management Basics
Prepared by: Roqaya Amin
 Construction Project Management Basics

• Construction project management is a complex field,

requiring knowledge in many different areas like
finance, mediation, law, business, and more.

• For construction PMs just entering the field, here are

the basic principles you should understand:

Prepared by: Roqaya Amin

 How to Obtain a Construction Management Project
Prepared by: Roqaya Amin
 How to Obtain a Construction
Management Project

There are two kinds of bids:

– Open bid
– Closed bid

Prepared by: Roqaya Amin

 Open Bid
Prepared by: Roqaya Amin
 Open Bid
Used for public projects and usually promoted with
advertising, an open bid invites all contractors to
submit their bid.

Prepared by: Roqaya Amin

 Closed bid
Prepared by: Roqaya Amin
 Closed Bid
Reserved for private projects, a closed bid is when the
owner sends invitations to a select number of
contractors so only they are able to submit a bid.

Prepared by: Roqaya Amin

 Then, once the owner receives all the bids for
the project, he or she can select the contractor
through a number of process:
– Low-bid selection
– Qualifications-based selection
– Best-value selection

Prepared by: Roqaya Amin

 Low-bid selection
Prepared by: Roqaya Amin
 First step, Low-bid selection
This process focuses on the project’s price. Contractors
submit their bids with the lowest price they would
complete the project for, and the owner chooses the
contractor with the lowest one.

Prepared by: Roqaya Amin

 Qualifications-based selection
Prepared by: Roqaya Amin
 Qualifications-based selection
This selection process picks a contractor solely based
on qualifications. The owner will ask for a request for
qualifications (RFQ), which gives an overview of each
contractor’s experience, management plans, project
organization, and budget and schedule performance.

Prepared by: Roqaya Amin

 Best-value selection
Prepared by: Roqaya Amin
 Best-value selection
Combining both price and qualifications, the owner
looks for the contractor with the best cost and best
skillset.

Prepared by: Roqaya Amin

 And finally, once the owner chooses a
contractor, there are four different kinds of
payment contracts they can agree upon:
– Lump sum
– Cost-plus-fee
– Guaranteed maximum price
– Unit price

Prepared by: Roqaya Amin

 Lump sum
Prepared by: Roqaya Amin
 Lump sum
A lump sum contract is the most common. The
contractor and owner agree on the overall cost of the
project and the owner is required to pay that amount
whether or not the project fails, or if it exceeds the
initial price.

Prepared by: Roqaya Amin

 Cost-plus-fee
Prepared by: Roqaya Amin
 Cost-plus-fee
The owner pays the total cost and a fixed fee
percentage of the total cost to the contractor. This is
the most beneficial contract for the contractor, since
any additional costs will be covered.

Prepared by: Roqaya Amin

 Guaranteed maximum price
Prepared by: Roqaya Amin
 Guaranteed maximum price
The guaranteed maximum price contract is the same as
the cost-plus-fee, except there is a set price so the total
cost and fee cannot exceed.

Prepared by: Roqaya Amin

 Unit price
Prepared by: Roqaya Amin
 Unit price
This contract is chosen when both parties are unable to
determine the cost ahead of time. The owner provides
specific unit price to limit spending.
15 to 25% ± variation

Prepared by: Roqaya Amin

 Business Models for Construction
Projects
• Design, bid, build contracts
• Design-build contracts

Prepared by: Roqaya Amin

 Design, bid, build contracts
Prepared by: Roqaya Amin
 Design, bid, build contracts
The most popular model of construction management,
design, bid, build contracts allow the owner to choose a
contractor after the design phase has already been
completed by an architect or engineer.

Prepared by: Roqaya Amin

 Design-build contracts
Prepared by: Roqaya Amin
 Design-build contracts
This model is the opposite of the design, bid, build
contract. Design-build contracts are when the design
and construction phases are completed by the same
entity (referred to as the design-builder or the design-
build contractor). This model is used to reduce
completion date since the design and construction
phases can happen at the same time.

Prepared by: Roqaya Amin

 Project Management Principles and Process
Prepared by: Roqaya Amin
 Project Management Principles and
Process
• Initiation
• Planning
• Execution
• Performance and Monitoring
• Closure

Prepared by: Roqaya Amin

 Initiation
Prepared by: Roqaya Amin
 Initiation
At the beginning of the project, you must create and
evaluate the business case in order to determine if the
project if feasible and if it should be undertaken.

Prepared by: Roqaya Amin

 Initiation
Stakeholders do their due diligence and feasibility
testing may occur, if needed. If all parties decide to
move forward with the project, a project charter or
project initiation document (PID) is created, including
the business needs and business case.

Prepared by: Roqaya Amin

 Planning
Prepared by: Roqaya Amin
 Planning
Next, the project team develops a roadmap for
everyone to follow. During this phase, the project
manager creates the project management plan (PMP),
a formal, approved document to guide execution and
control. The PMP also documents scope, cost, and
schedule baselines.

Prepared by: Roqaya Amin

 Planning
• Other documents included in the planning
phase include:
– Scope statement
– Work breakdown structure (WBS)
– Communication plan
– Risk management plan

Prepared by: Roqaya Amin

 Scope statement
A document that defines the business need, benefits,
objectives, deliverables, and key milestones.

Prepared by: Roqaya Amin

 Work breakdown structure (WBS)
A visual representation that breaks down the scope of
the project into manageable chunks.

Prepared by: Roqaya Amin

 Communication plan
This plan outlines the communication goals and
objectives, communication roles, and communication
tools and methods. Because everyone has a different
way of communicating, the communication plan
creates a basic framework to get everyone on the same
page and avoid misunderstandings or conflict.

Prepared by: Roqaya Amin

 Risk management plan
This plan helps project managers identify foreseeable
risks, including unrealistic time and cost estimates,
budget cuts, changing requirements, and lack of
committed resources

Prepared by: Roqaya Amin

 Execution
Prepared by: Roqaya Amin
 Execution
This is when the work begins. After a kick-off meeting,
the project team begins to assign resources, execute
project management plans, set up tracking systems,
execute tasks, update the project schedule, and modify
the project plan.

Prepared by: Roqaya Amin

 Performance and Monitoring
Prepared by: Roqaya Amin
 Performance and Monitoring
The monitoring phase often happens at the same time
as the execution phase. This step is all about measuring
progress and performance to ensure that items are
tracking with the project management plan.

Prepared by: Roqaya Amin

 Closure
Prepared by: Roqaya Amin
 Closure
This last phase represents project completion. Project
managers sometimes hold a post-mortem meeting to
evaluate what went well in the project and identify
failures. Then, the team creates a project punch list of
any tasks that didn’t get accomplished, performs a final
budget, and creates a project report.

Prepared by: Roqaya Amin

 Questions
Prepared by: Roqaya Amin
 Case Study
You are a site Document Controller and you are
assigned for construction Project what is your first
preparations and arrangements regarding the Project
documents as (Contractor /Consultant) Document
Controller ?

Prepared by: Roqaya Amin

Prepared by: Roqaya Amin