AR  435  –  PROFESSIONAL  PRACTICE    

2.  The  Comprehensive  Services  of  the  Architect  
  

  (The   compendious   scope   of   the   practice   of
   architecture   the   primacy   of   the   architectural  
professional  in  the  design  of  the  built  environment.)    
The  Comprehensive  Service  of  the  Architect    
3.  Office  Project  Management    
  3.1  Project  Management    
      a.  The  Small  Project    
      b.  The  Project  Teams    
      c.  Project  Operations    
      d.  Project  Controls    
  3.2  Risk  Management
  
      a.  Managing  Project  Risks  and  Opportunities    
      b.  Project  Disputes    
      c.  Firm  Insurance
  
  3.3  Inter-­Professional  Relationships    
      a.  Inter-­Firm  Alliances  

       b.  Design  Team  Arrangements    
-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­-­  
3.  OFFICE  PROJECT  MANAGEMENT  
3.1  Project  Management  -­      
a.   The  Small  Project    
b.   The  Project  Teams    
c.   Project  Operations    
d.   Project  Controls    
3.2  Risk  Management  
a.   Managing  Project  Risks  and  Opportunities    
b.   Project  Disputes    
c.   Firm  Insurance  
Risk   management   is   the   identification,   evaluation,   and   prioritization   of   risks   (defined   in   ISO  
31000  as  the  effect  of  uncertainty  on  objectives)  followed  by  coordinated  and  economical  application  
of   resources   to   minimize,   monitor,   and   control   the   probability   or   impact   of   unfortunate   events   or   to  
maximize  the  realization  of  opportunities.  
Management  (or  managing)  is  the  administration  of  an  organization,  whether  it  is  a  business,  a  not-­
for-­profit  organization,  or  government  body.    
Management  includes  the  activities  of    
a.   setting  the  strategy  of  an  organization  and    
b.   coordinating  the  efforts  of  its  employees  (or  of  volunteers)  to  accomplish  its  objectives  through  
the  application  of  available  resources  
Ex.     a.  Financial  
b.  Natural  
c.  Technological  
d.  Human  resources.    
The  term  "management"  may  also  refer  to  those  people  who  manage  an  organization.  
3  Levels  of  Managers    
1.   Senior  Managers  as  members  of  a  Board  of  Directors  and  a  chief  Executive  Office  (CEO)  or  a  
President  of  an  organization.    
2.   Middle  Managers    
3.   Lower  managers,  such  as  supervisors  and  front-­line  team  leaders  
 
 
Management  involves:    
1.   identifying  the  mission,      
2.   objective,    
3.   procedures,    
4.   rules  and  manipulation  of  the  human  capital  of  an  enterprise  to  contribute  to  the  success  of  the  
enterprise.    
Six  functions  that  needs  to  be  considered  in  Management:    
1.   forecasting  
2.    planning  
3.    organizing  
4.    commanding  
5.    coordinating  
6.    controlling  
Planning:  Deciding  what  needs  to  happen  in  the  future  and  generating  plans  for  action  (deciding  in  
advance).  
Organizing  (or  staffing):  Making  sure  the  human  and  nonhuman  resources  are  put  into  place.  
Coordinating:  Creating  a  structure  through  which  an  organization's  goals  can  be  accomplished.  
Commanding  (or  leading):  Determining  what  must  be  done  in  a  situation  and  getting  people  to  do  it.  
Controlling:  Checking  progress  against  plans.  
 
Basic  roles  
•   Interpersonal:  roles  that  involve  coordination  and  interaction  with  employees  
Figurehead,  leader  
•   Informational:  roles  that  involve  handling,  sharing,  and  analyzing  information  
Nerve  centre,  disseminator  
•   Decision:  roles  that  require  decision-­making  
Entrepreneur,  negotiator,  allocator  
 
Skills  
Management  skills  include:  
•   political:  used  to  build  a  power  base  and  to  establish  connections    
•   conceptual:  used  to  analyze  complex  situations  
•   Interpersonal:  used  to  communicate,  motivate  ,  mentor  and  delegate    
•   diagnostic:  ability  to  visualize  appropriate  responses  to  a  situation  
•   Leadership:  ability  to  lead  and  to  provide  guidance  to  a  specific  group  
•   technical:  in  one's  particular  functional  area.  
•   Behavioral:  Perception  towards  others.  
 
The  Ideal  risk  management    
v   prioritization   process   is   followed   whereby   the   risks   with   the   greatest   loss   (or   impact)   and   the  
greatest  probability  of  occurring  are  handled  first,    
v   risks  with  lower  probability  of  occurrence  and  lower  loss  are  handled  in  descending  order.    
 
Method  
For  the  most  part,  these  methods  consist  of  the  following  elements,  performed,  more  or  less,  in  the  
following  order.  
1.    identify,  characterize  threats    
2.    assess  the  vulnerability  of  critical  assets  to  specific  threats  
3.    determine  the  risk  (i.e.  the  expected  likelihood  and  consequences  of  specific  types  of  attacks  
on  specific  assets)  
4.    identify  ways  to  reduce  those  risks  
5.    prioritize  risk  reduction  measures  
  
Principles  
The   International   Organization   for   Standardization   (ISO)   identifies   the   following   principles   of   risk  
management:  
Risk  management  should:  
•   create   value   –   resources   expended   to   mitigate   risk   should   be   less   than   the   consequence   of  
inaction  
•   be  an  integral  part  of  organizational  processes  
•   be  part  of  decision  making  process  
•   explicitly  address  uncertainty  and  assumptions  
•   be  a  systematic  and  structured  process  
•   be  based  on  the  best  available  information  
•   be  tailorable  
•   take  human  factors  into  account  
•   be  transparent  and  inclusive  
•   be  dynamic,  iterative  and  responsive  to  change  
•   be  capable  of  continual  improvement  and  enhancement  
•   be  continually  or  periodically  re-­assessed  
Process  
According   to   the   standard   ISO   31000   "Risk   management   –   Principles   and   guidelines   on  
implementation,"  the  process  of  risk  management  consists  of  several  steps  as  follows:  
A.  Establishing  the  context  
This  involves:  
1.    identification  of  risk  in  a  selected  domain  of  interest  
2.    planning  the  remainder  of  the  process  
3.    mapping  out  the  following:  
1.   the  social  scope  of  risk  management  
2.   the  identity  and  objectives  of  stakeholders  
3.   the  basis  upon  which  risks  will  be  evaluated,  constraints.  
4.    defining  a  framework  for  the  activity  and  an  agenda  for  identification  
5.    developing  an  analysis  of  risks  involved  in  the  process  
6.    mitigation  or  solution  of  risks  using  available  technological,  human  and  organizational  resources  
B.  Identification  
Identify  potential  risks.    
Risks  are  about  events  that,  when  triggered,  cause  problems  or  benefits.  Hence,  risk  identification  
can  start  with  the  source  of  our  problems  and  those  of  our  competitors  (benefit),  or  with  the  problem  
itself.  
 
Megaprojects  (infrastructure)  
Megaprojects  (sometimes  also  called  "major  programs")  are  large-­scale  investment  projects,  typically  
costing  more  than  $1  billion  per  project.    
 
Megaprojects  includes:    
a.   major  bridges,    
b.   tunnels,    
c.   highways,    
d.   railways,    
e.   airports,    
f.   seaports,    
g.   power  plants,    
h.   dams,    
i.   wastewater  projects,    
 j.   coastal  flood  protection  schemes,    
k.   oil  and  natural  gas  extraction  projects,    
l.   public  buildings,    
m.   information  technology  systems,    
n.   aerospace  projects,  and    
o.   defense  systems.    
Megaprojects   have   been   shown   to   be   particularly   risky   in   terms   of   finance,   safety,   and   social   and  
environmental  impacts.    
Risk  management  is  therefore  particularly  pertinent  for  megaprojects  and  special  methods  and  special  
education  have  been  developed  for  such  risk  management.  
 
Contractual  Problems    
Standard  forms  of  contract  clearly  prescribe  the  risks  and  obligations  each  party  has  agreed  to  take.  
Such  rigid  agreements  may  not  be  appropriate  for  long-­term  transactions  carried  out  under  conditions  
of  uncertainty.  
 
Common  Cause  of  Construction  disputes    
1.  Acceleration    
The  construction  costs  associated  with  acceleration  are  likely  to  be  less  than  the  commercial  
risk  the  developer  may  face  if  key  dates  are  missed.  
2.  Coordination    
In   complex   projects   involving   many   specialist   trades,   particularly   mechanical   and   electrical  
installations,  co-­ordination  is  key,  yet  conflict  often  arises  because  work  is  not  properly  co-­ordinated.  
3.  Culture    
  The  personnel  required  to  visualise,  initiate,  plan,  design,  supply  materials  and  plant,  construct,  
administer,   manage,   supervise,   commission   and   correct   defects   throughout   the   span   of   a   large  
construction  contract  is  substantial.  Such  personnel  may  come  from  different  social  classes  or  ethnic  
backgrounds.  
4.  Differing  Goals    
Personnel  engaged  on  a  large  construction  contract  are  likely  to  be  employed  by  one  of  many  
subcontracted  firms,  including  those  engaged  as  suppliers  and  manufacturers.    
  Each  of  these  firms  may  have  their  own  commitments  and  goals,  which  may  not  be  compatible  
with  each  other  and  could  result  in  disputes.  
5.  Delays    
Disputes  frequently  arise  in  respect  of  delays  and  who  should  bear  the  responsibility  for  them.  
Most  construction  contracts  make  provision  for  extending  the  time  for  completion.  The  sole  reason  for  
this  is  that  the  owner  can  keep  alive  any  rights  to  delay  damages  recoverable  from  the  contractor.  
6.  Design    
Errors  in  design  can  lead  to  delays  and  additional  costs  that  become  the  subject  of  disputes.  
Often  no  planning  or  sequencing  is  given  to  the  release  of  design  information,  which  then  impacts  on  
construction.  
7.  Engineer  and  Employer’s  Representative    
The   personality   of   the   Engineer   or   the   Employer's   Representative   and   their   approach   to   the  
proper  and  fair  administration  of  the  contract  on  behalf  of  the  Employer  is  crucial  to  avoiding  disputes,  
8.  Project  Complexity    
In  complex  construction  projects  the  need  to  carry  out  a  proper  risk  assessment  before  a  contract  
is  entered  into  is  paramount:  yet  this  is  often  not  done.  
9.  Quality  and  Workmanship    
In  traditional  construction  contracts,  disputes  often  arise  as  to  whether  or  not  the  completed  work  
is  in  accordance  with  the  specifications.  The  specification  may  be  vague  on  the  subject  of  the  dispute  
in   question,   and   each   party   to   the   contract   may   have   a   different   view   on   whether   the   quality   and  
workmanship  is  acceptable  
10.  Site  Conditions    
If   the   contract   inadequately   describes   which   party   is   to   take   the   risk   for   the   site   conditions,  
disputes  are  inevitable  when  adverse  site  or  ground  conditions  impede  the  progress  of  work  or  require  
more  expensive  engineering  solutions.  
11.  Bid/Tender    
The   time   allowed   to   scrutinize   the   tender   documents,   prepare   an   outline   programme   and  
methodology,  carry  out  a  risk  assessment,  calculate  the  price,  and  conclude  the  whole  process  with  a  
commercial  review  is  often  impossibly  short.  Mistakes  in  this  process  may  have  an  adverse  effect  on  
the  successful  commercial  outcome  of  the  project.  
12.  Variations    
Variations  are  a  prime  cause  of  construction  disputes,  particularly  where  there  are  a  substantial  
number,   or   the   variations   impact   on   partially   completed   work   or   are   issued   as   work   is   nearing  
completion.  The  nature  and  number  of  variations  can  transform  a  relatively  straightforward  project  into  
one  of  unmanageable  complexity.    
13.  Value  Engineering    
This  term  often  lacks  definition  in  construction  contracts  and  can  lead  to  disputes,  particularly  
where   the   saving   is   to   be   shared   between   the   contractor   and   the   owner.   Savings   in   respect   of   the  
supply  and  installation  of  the  material  or  product  
 
3.2  Risk  Management  
  c.  Firm  Insurance  
Insurance   is   a   contract,   represented   by   a   policy,   in   which   an   individual   or   entity   receives  
financial   protection   or   reimbursement   against   losses   from   an   insurance   company.  
The  company  pools  clients'  risks  to  make  payments  more  affordable  for  the  insured.