Construction

Project
Management

Submitted by:
Jay R G. Generalao
 ➢ Construction management is a professional service that uses specialized, project
management techniques to oversee the planning, design, and construction of a project,
from its beginning to its end.
➢ A construction project manager is responsible for planning, coordinating, budgeting and
supervising projects from the beginning to the end. In short, a construction project
manager has to take care of the following: Put together the budget and negotiate cost
estimates.
➢ Project is a mission, undertaken to create a unique facility, product or service within the
specific scope, quality, time and cost. The knowledge areas needed to manage such
project management techniques, general management practices and technology related
subject. There is a vast scope for improving performance through knowledge in the
construction industry, where men, materials, machines, money and management work
together to build a facility.

Project Management Triangle

The projects need to be performed and delivered under certain constraints. These
constrains are time, cost, and scope, and are represented by each side of the triangle. One side of
the triangle cannot be changed without impacting the others.

❖ Add time delay the project to give more time to add functionality.
❖ Add cost recruite, hire or acquire more people to the extra work.
❖ Cut quality trade off same non-essential requirements for the requirements.

Project Management Document

For the success of project it is necessary to have adequate documentation with clear
objectives and deliverables. The project management should have following document.

1. Project charter.
2. Project mission, vision and objectives.
3. Feasibility study.
4. Terms of reference.
5. Project management plan.
6. Work breakdown structure. (WBS)
 7. Risk management plan.
8. Communication plan.
9. Governance model.
10. Risk register.
11. CPM/PERT
12. Resource management plan.
13. Responsibility assignment matrix.
14. Status report.
15. Database of lesson learned.
16. Stakeholder analysis.

Roles and Responsibilities of project management Teams

It is the overall responsibilities of the project manager for managing the project, fulfilling
the goals and objectives and delivering the project outputs as envisaged by the project
implementation plan and also discharging the responsibilities of the office-in-charge for the
project office administration and oversight.

1. H.R. team
2. Administration team
3. Accounting team
4. Materials management and inventory team
5. Audit team
6. Design team
7. Procurement team
8. MIS/Reporting team
9. Project monitoring team
10. Project execution team
11. Facilities management team

Selection of Professional Service

When an organization/project management device to seek professional service for the

design and construction of the facility, it is necessary to select a right type of services depending
upon the type of construction and the experience of the project personnel. Profession service
which may be engaged are of the following types.

1. Individual Consultants are normally employed on assignments for which teams of

personnel are not required, and the qualification and experience of the individual is the
main requirement.
2. Technical Consultancy Firm after the engineering design and financing arrangement for
the project are completed the owner will enter into a construction contract with a general
conductor. The general contractor will act as a contractor and a coordinator of a large
 number of sub-contractors who perform various specialities for the completion of project.
The owner also engages a technical consultancy firm to act as the prime professional
consultant on behalf of the owner and supervision for the construction to ensure
satisfaction results.
3. Financial Planning Consultant at the early stage of strategic planning for the capital
project the owner generally seeks the services of financial planning consultant firm to
evaluate the economic and financial feasibility of the project after completion.
4. Legal Services a construction project is complex not of constracts and the other legal
obligation each of which must be carefully consider.

Project Construction Planning

The construction planning process is stimulated through a study of project documents and
the planning process takes into account the strengths and weaknesses of the organization as
well as the anticipated opportunities and risks. Planning follows a systematic approach,
various planning techniques are employed to systematize and transform the mental through
process into a concrete project plan. Planning the entire project form its inception to
completion requires a vast converge, varied skills and different types plan.

As discussed in the chapter on “Project Scheduling” the project construction plan include
the following plan:

Time planning process have been dealt in detail in the chapter on “Project Scheduling”.
Resource Planning Process the planning process includes:

1. Forecasting resource requirements.

2. Planning manpower requirements.
3. Planning material requirements.
4. Budgeting for funds requirements.
5. Developing organization structure and assigning duties and responsibilities.
6. Allocation tasks and resources.

Planning for Controlling the Project it includes the designing of controlling system,
monitoring system and the computerized information system. The project control
system aims at ensuring the execution of work as per the planned schedule, and
the application of necessary corrective measure including replanning to achieve
the project objectivities.

Benefits of Planning, Scheduling and Controlling

1. Planning Benefits
2. Scheduling Benefits
3. Controlling Benefits
Project Management Audit
Project management audit consists of the following:

1. Project work-breakdown structure verification and its revelance.

2. Risk identification, cost, levels, and security.
3. The mitigation measures and costs.
4. Measurement of risk impact.
5. Progress v/s objectives.
6. Key criteria questionnaire on project compliance.
7. Work package/major task budgets costs.
8. Verify the usage of project management tools and techniques.

Common Project Failures

Reasons for common project failures:

1. No systematic management of the project.

2. Inadequate/no risk assessment/analysis
3. Poor budgeting and contingency planning
4. Resources shortages.
5. No or inadequate issue identification and tracking.
6. Quality definitions, milestones and deliverables are not clear.
7. Customer expectations are not established.
8. Actions are not managed and tracked.
9. There is no or inadequate financial incentives for the project team thereby resulting into
demotivation/lack of motivation.
10. Return on investment (RO1) is not comparable with total cost of ownership.
11. No adequate vendor/contractor control.

Reasons to have Project Audit

1. The project is already in the red.

2. The project has missed the dead line.
3. There is budget over-runs.
4. The material losses are high.
5. There is a need to have independent assessment of true project status for bench marking
purpose.
6. To have the objective clearity.
7. To determine contingency requirements.
8. For the analysis of risk and plan the mitigation of risk.
9. To present the project status to management in a clear and easy to understand manner.

Modern Trends in Construction Management

 Outsourcing is a process for hiring a consultant, independent contractor or freelancer to
do a specific task or tasks for which the organization does not have the time, resources or
the expertise do on their own.
Process Planning Approach in the system organizations are more efficient and effective
when they used a process approach to manage activities and related resources.
Strategy Concept (SWOT Analysis) strategy refers to the determination of the purpose
(or mission) and the basic long term objectives of an enterprise, and the adoption of
courses of action and allocation of resources necessary to achieve these aims.
Total Quality Management (TQM) Concept the word quality has a wider meaning, it
means quality of output of every department and by every employee, cleanliness,
orderliness, punctuality customer service, productivity, standardization of works and
continuous efforts for their improvement are also part of TQM.

Risk Management in Construction Project

Risk are present in all the projects irrespective of the project sector, size or complexity. A
project risk is an uncertain event that may have a positive or a negative effect on the goals and
objectives of the project, if it occurs (Positive risks are known as oppurtunities).

Risk Management Process

1. Risk Identification risk is the combination of the consequence (or severity) of a hazard
and its likelihood. Here in the context of construction projects only the possibility of
suffering harm or loss is considered. Risk identification process involves the following
key steps:
❖ All potential risks are listed are looked into.
❖ Tools and techniques that are available should be used to identity all the potential risks
that can impact the project objectives.
❖ Risk identification techniques include brain storming, expert opinion, lessons learned
from previous similar project.
2. Risk Quantification once risks have been identified, they must be quantified as to their
potential severity of loss and to the probability of occurrence. The fundamental difficulty
in the risk quantification is determining the rate of occurrence since statistical
information is not available in all kinds of past incident. Furthermore, evaluating the
severity of the consequence (impact) is often quite difficult for immaterial assets.
The risk are quantified as product of occurrence probability and extent of damage (or
benefits).
Severity of Risk (R) = Likelihood of occurrence of risk (P) x Extent of Impact (E)
3. Risk Response Planning also known as risk mitigation or risk response development,
can be defined as presponse to threats and enhancement steps for opportunities. Risk
response control covers a system of responding to changes in risk over the course of the
project to give continuity to the risk management.
Output from Risk Response Development

1. Risk Management Plan it should document the procedures that will be used to manage
the risk throughout the project. In additional to documenting the results of the risk
identification and risk quantification processes, it should cover who is responsible for
managing various areas of risk, how contingency plans will be maintained and how
reverses will be allocated.
2. Contingency Plans these are pre-defined action steps to taken, if an identified risk event
should occur (like a disaster management plan).
3. Inputs to other Processes selected or suggested alternative strategies, contingency plans,
and other risk-related outputs must all be fed back into the appropriate processes in the
other knowledge areas.
4. Reserve is a provision in the project plan to mitigate cost and/or schedule risk.
5. Contractual Agreements these may be entered into for insurance, services, and other
items as appropriate in order to avoid transfer or mitigate threats.

Functions and Responsibilities of the Risk Officer

Large project to control their risks, generally appoint a risk management officer/ risk
officer. The function and responsibilities of risk officer shall be as under:

1. He is responsible for executing the risk responses in time and regularly evaluate the
effectiveness of the responses made to manage the risk.
2. He should act as member secretary of the risk management committee about the different
risk and the status of the responses already made or which need to be made.
3. He should act as member secretary of the risk management committee and organize its
meeting. He should also coordinate for all the inputs required by the committee and
present the committee recommendation to the competent authority for approval.
4. He is responsible for implementation of the risk management plan and documentation of
all risk. He shall be responsible for broad function as given below:
Record Keeping is essential to provide information including statistical data required for
risk analysis and risk handling purpose. These also provide the information required for
management appraisal.
Reporting/MIS the risk officer shall periodically generate MIS report for information as
well as for further appropriate action.
Monitoring, review and evaluation of risk management plan.
Risk Auditing for annual risk audit, internal audit committee shall be formed by the
management for assessing the effectiveness of risk management plan and its
implementation.
Risk Officer shall provide necessary input for maintaining record of cost against
different types of risk including losses, recoveries from insure, expenditure on risk
reduction etc. Such records are maintained by the finance department of the project.