Unit 1

Construction Planning and

Management
BY
Ajay Kumar
Asst. Prof.
CED, GBPIET
Construction Project
• The Guide to the Project Management Body of Knowledge (PMBOK) published
by Project Management Institute (PMI) defines project as a temporary
endeavor undertaken to provide a unique product or service.
• The product in case of a construction project is the constructed facility such as
building, assembling of some infrastructure and so on.
• Each one of them is ‘unique’ and ‘temporary’ in nature, and so is the
management involved. Here, the term ‘unique’ means that every project is
different in some way from other projects, and the term ‘temporary’ means
that every project has a definite beginning and an end (PMBOK 2000).
Unique Features of a Construction Project
• One-time activity—it must be performed correctly the first time every time
• Complexity—it is multidisciplinary because it involves a set of interrelated tasks to be done
by specialists
• High cost and time for execution
• High risk of failure
• Difficulty in defining quality standards
• Uniqueness of people relationship
• Feedback mechanism
• Lack of experience of client or owner
• Untrained workforce
• A project involves a series of complex or interrelated activities and tasks that
consume resources to achieve some specific objectives. It has to be completed
within a set of specifications under a limited budget (Munns and Bjeirmi 1996,
Pinto and Slevin 1988a).
• For many organizations, projects are a means to respond to those requests that
cannot be addressed within the organization’s normal operational limits.
• A project may involve a single unit of one organization or may extend across
organizational boundaries, as in case of joint ventures and partnering.
• A project is regarded as key to accomplish the business strategy of any
organization, as it is the means by which strategy is implemented (PMBOK 2000),
and a project is, therefore, not an isolated event but a realization of objectives
through concerted efforts of different participants in various phases of the project
life cycle
Project Categories
(1) Manufacturing Projects: Where the final result is a vehicle, ship, aircraft, a
piece of machinery etc.
(2) Construction Projects: Resulting in the erection of buildings, bridges, roads,
tunnels etc. Mining and petro-chemical projects can be included in this group.
(3) Management Projects: Which include the organization or reorganization of
work without necessarily producing a tangible result. Examples would be the
design and testing of a new computer software package, relocation of a
company’s headquarters or the production of a stage show.
(4) Research Projects: In which the objectives may be difficult to establish, and
where the results are unpredictable.
Construction Projects
1. Building Construction: The first type Residential construction is the other type
of building construction is commercial of construction and includes
construction, which includes • Apartments
• Skyscrapers • Condos
• Banks • Townhomes
• Gas stations • Dormitories
• Hotels • Nursing homes
• Restaurants • Any other establishment built for
• Supermarkets residents

2. Industrial Construction Industrial construction is much less frequent, yet still very
important to the industry. These types of projects often include
• Factories
• Power plants
• Mills
• Refineries
3. Highways, Streets, and Roads
• Highways, streets, and roads are common types of infrastructure construction
projects.
• While more often than not streets and roads are repair projects, they are no
less complex logistically than other infrastructure projects.
• As a result repair projects can incorporate street resurfacing.
4. Bridges
• Bridges are an important part of infrastructure construction projects.
• 4% of highway bridges considered to carry significant traffic are considered
structurally deficient.
• However, structurally deficient doesn’t mean unsafe. Most of these bridges
just need repairs, but bridge repairs can be a large undertaking.
Mass Transit, Airports, and Airways
• One area of infrastructure construction projects that is growing is airport
refitting.
• Many of the nation’s largest infrastructure construction projects are airport
reconstruction and retrofitting.
• Many airports haven’t been updated in many years, and are in need or
retrofitting.
• The overhauling of our nation’s air travel and mass transit systems are the
much-needed infrastructure construction projects.
• These projects often require not only the laying or relaying of utilities and
services but also of runways.
Water Supply and Resources

• Water supply and water resources are incredibly crucial to life.

• They’re also one of the types of infrastructure construction projects.
• Depending on the state you live in and what the local laws are, many of the
water infrastructure projects are on updating water distribution services and
improving drought resistance.
Waste Management and Waste Water Management
• Waste management and wastewater management is one of the more
important types of infrastructure construction projects. It is what keeps citizens
safe.
• The safe transportation of waste from residential and commercial areas keeps
our cities clean.
• Waste products can include trash, recycling, and wastewater.
• These must be moved from residential and commercial areas to prevent the
spread of pests and diseases.
•
Power Generation and Transmission

• Infrastructure construction projects include power generation and

transmission.
• These projects can include the construction of the power generation plant.
• It also will include the facilities and structures necessary to store the power and
transmit power.
• Since these facilities are incredibly important to the infrastructure of the
country, their construction is important.
• Depending on the region and the laws, some states have moved to
underground utilities like power.
Telecommunications
• Telecommunications is what allows the world to be as interconnected as it is.
• As a result, the infrastructure construction projects surrounding
telecommunication are essential.
• There are areas in the United States that have limited access to various
telecommunication services, while other areas have congested
telecommunication services.
• These areas benefit from infrastructure construction projects that help ease
the pathways that connect our world.
Hazardous Waste Removal and Storage

• Hazardous waste removal is the last type of infrastructure construction

projects on the list.
• These infrastructure construction projects are responsible for ensuring that
harmful materials like nuclear materials are safely stored.
• The safe construction of these sites is crucial to maintaining a healthy
populous.
• Infrastructure contractors that specialize in hazard construction understand
the gravity of their projects.
Characteristics of Project
1. A single definable purpose, end-item or result. This is usually specified in
terms of cost, schedule and performance requirements.
2. Every project is unique.
• It requires the doing of something different, something that was not
done previously.
• Even in what are often called “routine” projects such as home
construction, the variables such as terrain, access, zoning laws, labour
market, public services and local utilities make each project different.
• A project is a one-time, once-off activity, never to be repeated exactly
the same way again.
3. Projects are temporary activities. A project is an ad hoc organization of staff,
material, equipment and facilities that is put together to accomplish a goal. This
goal is within a specific time-frame. Once the goal is achieved, the organization
created for it is disbanded or sometimes it is reconstituted to begin work on a
new goal (project).
4. Projects cut across organizational lines. Projects always cut across the
regular organizational lines and structures within a firm. They do this because
the project needs to draw from the skills and the talents of multiple
professions and departments within the firm and sometimes even from other
organizations. The complexity of advanced technology often leads to
additional project difficulties, as they create task interdependencies that may
introduce new and unique problems.
5. Projects involve unfamiliarity. Because a project differs from what was
previously done, it also involves unfamiliarity. And oft time a project also
encompasses new technology and, for the organization/firm undertaking the
project, these bring into play significant elements of uncertainty and risk.
6. The organization usually has something at stake when undertaking a
project. The unique project “activity” may call for special scrutiny or effort
because failure would jeopardize the organization/firm or its goals.
7. A project is the process of working to achieve a goal. During the process,
projects pass through several distinct phases, which form and are called the
project life cycle. The tasks, people, organizations, and other resources will
change as the project moves from one phase to the next. The organizational
structure and the resource expenditures build with each succeeding phase;
peak; and then decline as the project nears completion.
Temporary: This key characteristic means that every project has a finite start
and a finite end. The start is the time when the project is initiated and its
concept is developed. The end is reached when all objectives of the project
have been met (or unmet if it’s obvious that the project cannot be completed –
then it’s terminated).
Unique Deliverable(s): Any project aims to produce some deliverable(s)
which can be a product, service, or some another result. Deliverables should
address a problem or need analyzed before project start.
Progressive Elaboration: With the progress of a project, continuous
investigation and improvement become available, and all this allows producing
more accurate and comprehensive plans. This key characteristic means that
the successive iterations of planning processes result in developing more
effective solutions to progress and develop projects.
In addition to the listed characteristics, a conventional project is:

⚫ Purposeful as it has a rational and measurable purchase

⚫

⚫ Logical as it has a certain life-cycle

⚫

⚫ Structured as it has interdependencies between its tasks and activities

⚫

⚫ Conflict as it tries to solve a problem that creates some kind of conflict

⚫

⚫ Limited by available resources

⚫

⚫ Risk as it involves an element of risk

 Phases of a Construction Project

⚫ The phases can be defined as the top-level breakdown of an entity, and a construction project
is distinctly characterized by a number of phases or stages during its life cycle, though there may
be some overlaps between the characteristics of two phases.

⚫ Considering the definition of construction project as unique, it is really very difficult to identify
some common stages across all the construction projects, since depending on the type of
project, the type of organization and other parameters, the phases as well as the tasks
performed in each of the phases may vary.

petroleum refinery project or a chemical project would be different from that of a building construction project
Pre-Project Phase

The three sub-phases under Pre-Project Phase are shown in Figure 1.1 and are discussed
below in brief.
Initiation or idea phase
⚫ The pre-project phase aims to identify all possible projects based on the examination of
needs and the possible options.
⚫

⚫ This stage is also sometimes referred to as initiation phase or idea phase. A possible
example would be a municipal authority concerned with the growing parking problems near
a prominent city milestone.

⚫ The municipal authority may explore different options to address the parking problem.

⚫ The options shall be evaluated against the mission and vision of the municipal authority and
the limits to which funding is available with the municipal agency.
Project concepts

⚫The initiation phase aims to sort out all the mentioned information to identify some project
concepts.

⚫ As many project concepts as possible are identified, and using some selection procedure
(such as the benefits for the organization that intends to employ them) in line with the
objectives of the organization, several project concepts are selected.

⚫The project concept phase of a new construction project is most important, since
decisions taken in this phase tend to have a significant impact on the final cost.

⚫It is also the phase at which the greatest degree of uncertainty about the future is
encountered.

⚫ The selected project concepts, then, are used as the inputs for the feasibility phase.
Feasibility

⚫ This phase aims to analytically appraise project concepts in the context of the
organization, taking into consideration factors such as the needs of the organization, the
strategic charter of the organization, and the capabilities and know-how of the organization.

⚫With this information, the decision makers should be able to decide whether or not to go
ahead with the project concept proposed.

⚫ The feasibility phase can be broadly characterized into the following:

Conceptual Project strategy Estimate Approval

Conceptual
For the selected project concepts, the preliminary process diagrams and layouts are prepared.
Design basis or design briefs are also formulated.

Project strategy

⚫ The strategy in terms of selection of an in-house design team or the contractor’s design
team is deliberated upon.

⚫ The resources required and their availability is discussed.

⚫ Further, the number and type of contractors required for the execution of project is
⚫ also formulated.

⚫Besides all these, the project strategy also contains the overall project schedule, the project
scope and the overall project plan.
Estimate
⚫ A preliminary estimate is prepared with reasonable accuracy by first breaking down the
project into work packages/elements.

⚫The estimates may be prepared for each of the work packages using the established
historical database and the resources estimated for each of the work packages.

Approval
consists of financial evaluation, identifying details of funding and their timing, capital/revenue,
etc., besides evaluation of different options.
The feasibility phase has sub-phases such as
market feasibility analysis (to confirm the viability of the project concept from a purely
marketing point of view),

technical feasibility analysis (to demonstrate whether the project is technically feasible and
to estimate the cost of project concept),

environmental analysis (to ensure that the project does not go against ecological issues
and regulations), and

financial feasibility analysis (to establish whether the project once materialized would
generate profits for the organization).

It is only after the first three sub-phases are found to be positive that a financial feasibility
analysis is performed. If the feasi- bility analysis is positive, one can go ahead, but if it is
negative, the project can be abandoned and eliminated from the ‘project concept’ definition.
Some of the tasks related to pre-project phase (Bubshait and Al-Musaid 1992) are sum-
marized below:
1. Assigning a task force to conduct preliminary studies for the proposed project

2. Studying the users’ requirements

3. Defining the technical specifications and conditions that determine the quality of the
required work

4. Studying how to secure funds to finance the project

5. Estimation of the project cost and duration

6. Approval of the project cost

7. Studying and determining the technical specifications of the materials

8. Studying the impact of the project on the safety and health of the community and
environment

9. Establishing criteria for the selection of project location

10. Advising members of the task force (consultant, engineering, etc.) on the approved funds
for the project

11. Establishment of milestones for the project for review and approval

12. Describing the responsibilities and authority of project parties

13. Pre-establishing a system to prepare for ‘change order’ procedures

14. Establishment of design criteria for structural specifications

15. Conducting a feasibility study of the proposed project

Project Phase

The project phase is also referred to as project implementation phase, project realization
phase, or project materialization phase.

Basic design phase

⚫The activities in this phase are carried out by an engineering organization or an architect.
During this phase, the documentation for tendering and contracting the physical construction
or for procuring equipment is prepared.

⚫It involves performing basic design calculation, preparing tender drawings, preparing design
and material specification, etc.
Detailed design phase

⚫ Detailed design may be carried out in-house or through contracting.

⚫In some cases, such as ‘item rate’ contract, it may be required to carry out the detailed
design before starting the tendering process.

⚫ However, in some cases, such as ‘design build’ contract or ‘lump sum’ contract, the
tendering process can start immediately after the completion of basic design and
specifications.
Tendering phase

⚫ Tenders are issued if it is decided to execute the project through contracting.

⚫The preparation of clear and precise documents is essential to eliminate any dispute about
scope of work at the contract stage.

⚫The tender preparation includes preparing the specifications and agreement conditions,
preparing bill of quantities and estimating the contract value.

⚫ It also includes issuing of tender document to the interested applicants, holding meetings
receiving bids and evaluating them.

⚫After the bids are evaluated, recommendations are made for the successful contractor and
approvals sought to place a contract, and finally the contract is awarded.
Execution or construction phase

⚫ Immediately after the contract is awarded, construction phase begins.

⚫ In cases where the detailed drawings and designs were not available as part of the tender
document, the contractor proceeds with the preparation of detailed design and drawings, and
follows it up with the construction.

⚫ In some cases, the preparation of detailed design and construction may proceed
simultaneously with milestone-wise deliverables for both design and construction.

⚫After the construction work has started, the progress is closely monitored and regular
meetings held with the contractor to assess cost and schedule.

⚫The variations in cost, quality and schedule are noted and corrective measures are taken to
bring them to the desired level.
Closure or completion phase

⚫ In this phase, the major equipment are tested and commissioned, and the constructed
facility in totality is handed over to the client for use.

⚫Client issues approval of work and a completion certificate after all the work has been
checked and found to be in order.
Design-related tasks (Bubshait and Al-Musaid 1992)

1. Arranging the documents of the construction contract

2. Qualifying of design professionals

3. Performing technical and financial analysis of offers from competing contractors

4. Selecting the design team

5. Negotiating with the qualified design professionals

6. Providing the qualified design professionals with the needed information

7. Monitoring the design progress of the proposed project

8. Evaluating the design and making the necessary decisions

9. Updating design documents

10. Reviewing design documents

11. Conducting design peer review

12. Monitoring design quality

13. Updating drawings and specifications to reflect the requirements of location or environ-
Ment

14. Using technical standards (e.g., Indian standard, American standard, British standard,
etc.) to describe materials quality and construction methods
Tendering- and construction-related tasks (Bubshait and Al-Musaid 1992)

1. Pre-qualifying contractors

2. Holding a pre-bid conference and providing the necessary information

3. Negotiating contract price with qualified contractor

4. Reviewing at frequent intervals documents submitted by the contractor (e.g., work sched-
ules, manpower qualifications, equipment)

5. Interpreting and clarifying ambiguities in the contract documents

6. Taking necessary precautions to prevent the loss of project data

7. Making necessary decisions against contractor claims during project implementation

8. Monitoring and controlling implementation methods, cost, schedule and contractor pro-
Ductivity

9. Enforcing quality and safety principles during project implementation

10. Assigning personnel to supervise, monitor and control the implementation of quality
(quality control programme)

11. Establishing quality assurance programme

12. Enforcing the quality assurance programme

13. Conducting regular visits to project site

14. Establishing acceptance criteria

15. Receiving record (as-built) contract drawings and specifications

Post-Project Phase

⚫ The post-project phase is also known as the turnover phase or the start-up phase.

⚫During this phase, the responsibility of the materialized deliverable is transferred from the
engineers, the architects and/or the general contractors to the owners.

Utilization phase

⚫ During this phase, the client or the end user makes use of the finished project.

⚫The performance of the constructed facility is monitored at regular intervals, and

maintenance at regular intervals is performed.
Close-down phase

⚫Once the project has lived its intended life, it is dismantled and disposed of. The entire
cycle explained under different phases is repeated.

⚫ It is very difficult to have a clear-cut demarcation among the different phases.

⚫ This is truer in today’s context when there is a tendency to cut down the project duration,
thus requiring considerable overlapping in different phases of a project.
Why Construction Project Management?
As we go through the subsequent chapters, we will find that there is probably no other
discipline that is more difficult than construction project management.

the general goal of a construction project seems simple enough—

1. building a project on time,
2. within budget,
3. with the stated quality standards, and
4. in a safe environment.

Looks so simple!
Yet, research shows that less than 20 per cent of most
construction projects meet the four requirements mentioned
above.
Project Management
Functions
Defining scope of project
• Project scope is the part of project planning that involves determining and documenting a
list of specific project goals, deliverables, features, functions, tasks, deadlines, and
ultimately costs.

• In other words, it is what needs to be achieved and the work that must be done to deliver a
project.

• It is important to pin down the scope early in a project’s life cycle as it can greatly impact
the schedule or cost (or both) of the project down the track.

1. Identify the project needs 2. Confirm the objectives and goals

of the Project
3. Project Scope description 4. Expectations and acceptance
5. Identify constraints 6. Identify necessary changes
1. Identify the project needs
When you are clearly able to identify the needs of a project, you are more likely to set a sound
benchmark from the beginning.
2. Confirm the objectives and goals of the Project
The basis of the project scope should entail your goals and objectives to be one that follows a
SMART guideline.
That is, to be Specific, Measurable and Achievable. It should also be Realistic and completed within a
specific Timeframe.
3. Project Scope description
You as a leader, need to be clear about the features and functioning required for your
product or service.

4. Expectations and acceptance

Successful projects are ones that take into account the satisfaction of the end-user.
Whether they meet the end-users expectations and accept the product, service or
process.
5. Identify constraints
• There are always roadblocks to achieving what you were set out to do.
• When being aware of possible limitations along the way, it can help you minimize
problems that may delay or constrain your ability to achieve your project’s outcome

6. Identify necessary changes

It is always best to avoid reworking the scope of your project, as it means investing in
more time, money and resources.
Project Time Management
Project Time Management ensures the timely completion of the project.

• Project Time Management

• Plan Schedule Management
• Define Activities
• Sequence Activities
• Estimate Activity Resources
• Estimate Activity Durations
• Develop Schedule
• Control Schedule
• Schedule once finalized is set as a baseline
• Progress of work are tracked against the baseline
• Current progress is arrived from various (Engineering, Proc, Manufacturing and
Construction) Trackers developed for the purpose. These schedules are called
current schedules
• Analysis and forecasting is done in progress reports.
Schedule using MS Project
Schedule using Primavera (P6)
Engineering Tracker
Manufacturing & Supply Tracker construction tracker
Project cost Management
Project cost Management includes the processes involved in estimating, budgeting,
and controlling costs so that the project can be completed within the approved budget.
Project Cost Management
• Estimate cost
• Convert it into budget
• Load the cost into schedule
• Perform earned value (EV) analysis
• Perform estimate at complete (EAC)
• Administer changes
• Control cost
Project Quality Management
Project Quality Management ensures the project will satisfy NEEDS for which it was
undertaken.
• Plan Quality
• Perform Quality Assurance
• Perform Quality

What is Quality?
• Conformance to specifications
• Fitness for use control
Human Resource Management
Project human resource management includes the processes that organize, manage,
and lead the project team and to make most effective use of people involved in the
project.
• Develop Human Resource Plan (Role & Responsibility, Organization chart, Staffing
Management Plan)
• Acquire project team
• Develop project team
• Manage project team
Project communication management
Project communication management include processes required to ensure timely and
appropriate generation, collection, distribution, storage, retrieval, and ultimate disposal
of project information.
• Project Communications Management
• Identify Stakeholders
• Plan Communication
• Distribute Information
• Manage Stakeholders expectations
• Report Performance
Project Stakeholders :
• Architect
• Client (owner)
• Constructor
• Engineer (Consultant)
• Subcontractor/Supplier/Vendor
• Lawyer, Insurer, etc
• Customers/users
• Sponsor
• Portfolio managers/portfolio review board
• Program managers
• Project management office
• Project managers
• Project team
• Functional managers
• Operations management
• Sellers/business partners
Project Risk Management
Project Risk Management is concerned with identifying, analysing and responding to
project risks.
• Plan Risk Management
• Identify Risks
• Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis
• Plan Risk responses
• Monitor and Control Risks

Risk Risk Risk

Risk Control
Assessment Ranking Mitigation
Procurement Management
Project Procurement Management is needed to acquire material, goods and services
outside performing organization to meet project scope.
• Project Plan Procurements
• Conduct Procurement
• Administer Contracts
• Close Procurement
Project integration management
Project integration management is the
coordination of all elements of a project.
• This includes coordinating tasks,
resources, stakeholders, and any other
project elements, in addition to managing
conflicts between different aspects of a
project, making trade-offs between
competing requests and evaluating
resources.
7 processes of project integration management Seven processes should be followed
for successful project integration management. These processes are:

1. Develop the project charter

2. Develop the project management plan
3. Direct and manage project work
4. Manage project knowledge
5. Monitor and control project work
6. Perform integrated change control
7. Close the project (or project phase)
Role of the project manager
• The project manager is not expected to perform every role on the project, but should
possess project management knowledge, technical knowledge, understanding, and
experience.
• The project manager provides the project team with leadership, planning, and
coordination through communications.
• The project manager provides written communications (e.g., documented plans and
schedules) and communicates in real time with the team using meetings and verbal
or nonverbal cues
DEFINITION OF A PROJECT MANAGER
• The role of a project manager is distinct from that of a functional manager or
operations manager.
• Typically, the functional manager focuses on providing management oversight for a
functional or business unit.
• Operations managers are responsible for ensuring that business operations are
efficient.
• The project manager is the person assigned by the performing organization to lead
the team that is responsible for achieving the project objectives.
Activities Involved In Construction Planning
1. Defining the scope of work 9. Planning for employee skills
2. Identifying activities involved 10. Planning for required documents and
3. Establishing project duration drawings
4. Defining procedures for controlling and 11. Financial Planning
assigning resources 12. Updating and revising plans
5. Establishing project duration
6. Construction Methods
7. Planning for Construction Equipment's and
Machinery
8. Procurement of materials
1. Defining the scope of work
• Since all activities involve consumption of different resources to different extents, it is
important that the scope of work involved is properly and, to the extent possible,
completely defined.
• Any addition, deletion, or modification in the scope could have serious repercussions
in terms of time of completion and cost, and even be the root of litigation, besides
souring the relationships between different agencies.
• For example, if felling trees and getting environment clearances is added (at a later
date) to the scope of a contractor who has been awarded a job for construction of
roads, it would obviously cause difficulties.
2. Identifying activities involved
• This part of planning is very closely linked to defining the scope, and involves
identifying activities in a particular job.
• Since different activities involved consume different physical resources to varying
extents, it is crucial that these activities are exhaustively listed, along with the
resources required.
• For example, though different agencies may be concerned with ‘environmental
impact assessment’, it is important for them to identify the tools or parameters each
will be using so as to plan effectively
3. Establishing project duration
• This can be done only with a clear knowledge of the required resources, productivities and
interrelationships.
• This information is used to prepare a network and other forms of representations outlining
the schedules.
• It may be remembered that the duration required for any activity is related to the resources
committed, and it may be possible to reduce the project duration by increasing the resource
commitment, even at additional cost.
• Thus, a balance between time and project cost is required to arrive at an optimum level of
resource commitment.
4. Defining procedures for controlling and assigning resources
• It is important that the planning document prepared is followed by others involved in
the execution of the project, or in its individual phases.
• Thus, the procedures to be followed for procurement and control of resources for
different activities—manpower, machines, material and money—are also laid down.
5. Construction Methods
Plans should include construction methods to
be adopted for different construction activities
and tools and planning for tools and tackles for
each activity so that they can be made
available whenever required.
Procurement of Materials
• Project planning should also include procurement planning for materials. It is
not advisable to keep the material unused for site for long time.
• This can degrade the material as well as much of the cost is spent on such
materials.
• So, proper planning of material procurement also helps to complete the
project within budget.
Planning for Employee Skills
• Some of the construction activities requires availability of
skilled person to execute that work.
• It is not necessary to employ such person throughout the
project, so proper planning of such work can reduce the cost
of operation for that activity.
Planning for Required Documents and Drawings
• Construction projects are executed based on the drawings and
specifications.
• It is necessary to track and make available these drawings at site on
time so that the construction activities are not stopped.
• Thus construction project planning should also include the schedules
of drawings, specifications and other documents to be made available
at site for review and execution without delaying the project.
Financial Planning
• Financial planning of construction is the most important aspects.
• Different amounts are required at different stages of construction project.
• Proper planning of funds for construction helps the project proceed
smoothly.
• There is no point in investing all the budgeted amount on the construction
project during start of the project.
• This can be done in phases as and when required.
Planning for Construction Equipments and Machinery
• Cost of a construction varies greatly with the use of construction equipments
and heavy machinery as their renting cost could be very high per day.
• So, planning and scheduling for such equipments and machinery should be
done in advance so that project activities goes on smoothly without keeping
these equipments in waiting.
• Project should be planned in such a way that the use of these machinery can
be made to maximum during the given period to make it cost effective.
Developing appropriate interfaces

• The planner needs to devise an appropriate system for

management information system (MIS) reporting.
• Tools such as computers and formats for reporting are
widely used, and it may be noted that several software
are readily available to aid the planner.
Updating and revising plans
• Although a construction plan needs to be continuously updated and revised
during monitoring, some basic issues should be borne in mind before drawing
up a full-fledged plan.

• For example, the planner should clearly understand the product to be

produced in terms of scope and expected performance, the input required and
the process involved, including the issues in quality control and tolerances at
different steps
PROJECT SCHEDULING
• Scheduling is the allocation of resources
• Resources in conceptual sense are time & energy but in practical
sense are the time, manpower, equipment applied to material.
• Scheduling is the process of formalizing the planned functions,
assigning the starting and completion dates to each activity which
proceeds in a logical sequence and in an orderly and systematic
manner.
In Scheduling, the following steps are followed.
• Detailed control information is to be calculated.
• Timings to events & activities are assigned
• Consideration must be given to resources generally concerned with
those resources whose availability is limited and which there by
impose a constraint on the project. Important ones are skilled,
technical and supervisory manpower and capital investment
• Resource Allocation
Project Controlling
• This phase is carried during the execution of the project.
• The difference between the scheduled performance and actual performance are
reviewed once the project starts.
• Project control is established to determine deviations from the basic plan, to
determine the precise effect of these deviations on the plan, and to replan and
reschedule to compensate for the deviations.
• Controlling, the following steps are followed.
• The Standards and targets are established and targets are generally exposed in
terms of time.
• Performance is measured against the standards set down in the first step.
• The Deviations from the standard are identified
 Resource Planning:
It is a process by which tasks are allocated to human and non-human resources in
such a way that it maximizes the efficiency of the resources in hand while improving
outputs.
Simply put, in a team, resource planning involves assigning the right tasks to the right
team members at the right time, so that your project delivers the required outputs,
without any delays and conflicts. When it comes to resource planning, there is no right
or wrong. It all depends on what works for your team.
While it may appear simple at first, resource planning is one of the most challenging
tasks in an organization. Assigning the right job to the right person, without affecting
the flow of the project requires diligent planning. This is where – the role of resource
planning tools like the eResource Scheduler becomes crucial.
Resource planning tools help you take the guesswork out of resource allocation,
optimizing the process, thereby helping you enjoy increased team efficiency.
Resource Plan – Your Key to Efficient Resource Allocation
Just like you wouldn’t go on a road trip without a map, you cannot expect your project
to be a success without the right resource plan.
What is it? A resource plan identifies all the physical resources – both human and
non-human resources – required for a project. It lists out the different types of
resources required and the quantity of each resource.

Resource plan has three steps:

1. List the Resources Required for the Project
tart by listing all the resources needed for the completion of the project. This includes
human resources like coders, testers, front-end developers, back-end developers,
designers, etc. as well as non-human resources like equipment – PCs, printers, and
other machinery needed.
You have to make a comprehensive list of all the resources needed for the project
from start to finish.
2. Estimate the Number of Resources Required
The next step is to estimate the hours for each resource. For example, if it’s a coding
project, then you have to mention the number of developers you need along with the
estimated hours for the project.

3. Drafting a Resource Schedule

Now, that you’ve compiled all the information, the next step is to build a detailed
resource schedule. The resource schedule contains all the following info:
1. Resources needed for the project
2. Timeframe for each resource
3. Quantity of resources per week/month
4. Identifying resource constraints and conflicts and making necessary
arrangements
Human Resources Planning Process
We would like you to answer this question – what is the most valuable asset of your
organization? Yes, it’s your employees. It’s the skill and knowledge of your employees
and their relationship with customers that determine your business' success.

This is why planning your human resources plays a key role in determining the success
of your projects and winning the trust and loyalty of clients.
Human resource planning includes six key steps:

•Identifying the organizational objectives

•Analyzing current resources
•Forecasting future requirements
•Identifying gaps in resources
•Implementing a resource plan to tighten any gaps
•Monitoring and feedback
Simply put, human resource planning ensures that you have the right people in the
right jobs, at the right time.
Why is Resource Planning Critical?
Resource management and planning is an essential part of all businesses – be it large
enterprises or small startups. Whether your team is working on a piece of software or
constructing a new building resource planning plays a crucial role in determining the
success of the project.

When you over-allocate resources for a project, they are likely to waste time and drain
your profits. On the other hand, under allocation of resources for a project leads to
missing critical milestones and a drop-in the project output.

Apart from assigning jobs to every resource, the project manager has to ensure that
he/she is allocating the right task for the right person. The project manager has to
analyze the skills of each team member, their previous experience, and assign them to
the right task that matches their strengths. Additionally, the project manager has to
avoid resource conflicts, under or over-allocation of resources.
Here are the Top 7 Benefits of Resource Planning

1.Helps you manage resources more efficiently – avoiding over or under

allocation of resources
2.Helps businesses predict and plan future requirements
3.Helps you boost project efficiency – as you allocate the right person to
the right task
4.Your business is prepared to tackle and avoid resource conflicts
5.Adapt faster to the changes in the workforce and the industry
6.Be proactive by honing the skills of your current workforce to meet
emerging needs
7.Helps you gain competitive advantage by completing your projects on
time, without any delays
TYPES OF PROJECT PLANS
1. Time Plan
2. Manpower Plan
3. Material Plan
4. Construction Equipment Plan
5. Finance Plan
Time Plan
• Time is the essence of all construction projects, and contracts often have clauses outlining
awards (bonus payments) or penalties (as liquidated damages) for completing a work ahead
or later than a scheduled date.
• Several reasonably well-established techniques are available and commonly used for time
planning (or ‘scheduling’) activities—for example, critical path method (CPM), programme
evaluation and review technique (PERT), precedence network analysis (PNA), line of-
balance technique (LOB), linear programme chart (LPC) and time scale network (TSN).
• The choice of the method to be used in a particular case depends on the intended objective,
the nature of the project, the target audience, etc. Some of these methods are discussed in
greater detail elsewhere.
While effort is made to ensure timely completion of work, it should be noted that some of the
common reasons for delays could be:
• a sluggish approach during planning,
• delay in award of contract,
• changes during execution,
• alterations in scope of work,
• delay in payments,
• slow decision-making,
• delay in supply of drawings and materials, and
• labour trouble.
Manpower Plan
• This plan focuses on estimating the size of workforce, division in functional teams and
scheduling the deployment of manpower.
• It may be noted that manpower planning also involves establishing labour productivity
standards, providing suitable environment and financial incentives for optimum productivity,
and grouping the manpower in suitable functional teams in order to get the optimum
utilization.

Material Plan
• The material plan involves identification of required materials, estimation of required
quantities, defining specification and forecasting material requirement, besides
identification of appropriate source(s), inventory control, procurement plans and monitoring
the usage of materials.
Construction Equipment Plan
• Modern construction is highly mechanized and the role of heavy equipment in ensuring
timely completion of projects cannot be over-emphasised.
• Machines are used in modern construction for mass excavation, trenching, compacting,
grading, hoisting, concreting, drilling, material handling, etc.
• Induction of modern equipment could improve productivity and quality, besides reducing
cost. At the same time, it should be borne in mind that heavy equipment are very costly and
should be optimally utilized in order to be productive.
• It is also important that the characteristics of equipment are kept in mind when drawing up
an equipment plan.
Finance Plan
• Given the fact that large construction projects require huge investments, and a long time to
complete, it is obvious that all the money is not required at any one point in time.
• Contractors fund their projects from their working capital, a part of which is raised by the
contractors using their own sources (e.g., bank loans secured against assets, deployment of
resources from their inventory), whereas the rest comes from a combination of avenues
such as mobilization advance for the project, running-account bills paid by the client,
secured advances against materials brought at site, advance payments, and credits from
suppliers against work done.
• Thus, a careful analysis needs to be carried out to determine how the requirement of funds
varies with time.
• It is little wonder that capital inflow can be looked upon as the lifeline of any large project.
• Careful planning for funds and finances has achieved added significance in cases when
projects are funded by the private sector or financial institutions that view the project as
a financial investment and seek returns in monetary terms also
WORK-BREAKDOWN STRUCTURE
• ‘work breakdown’, is the name given to a technique in project management in which the
project is broken down into ‘manageable chunks’.
• WBS represents ‘a task-oriented “family tree” of activities and organizes, defines, and
graphically displays the total work to be accomplished in order to achieve the final objectives
of the project.’
• This provides a central organizing concept for the project and serves as a common
framework for other exercises such as planning, scheduling, cost estimating, budgeting,
configuring, monitoring, reporting, directing and controlling the entire project.
• Thus, it should be intuitively clear that for a complex project, greater care is required in
formulating a successful WBS
PLANNING TERMINOLOGIES USED
Event –
• Event is a point in time when certain conditions have been fulfilled, such as the start or
completion of one or more activities.
• An event consumes neither time nor any other resource. Hence, it only expresses a state of
system/project.
Activity
• Activities take place between events. Activity is an item of work involving consumption of a
finite quantity of resources and it produces quantitative results.
• An exception to this rule is the dummy activity as defined below.
• When breaking down a project into tasks, and so on, it is important to bear in mind that
activities should be defined and organized in a manner that there are tangible outputs so
that progress can be objectively monitored.
Dummy activity
• This activity does not involve consumption of resources, and therefore does not need any
time to be ‘completed’.
• It is used to define interdependence between activities and included in a network for logical
and mathematical reasons,

Network
• Networks consisting of nodes and arrows are the graphical representation of
activities, showing logical dependence between them.
• While drawing a network, certain rules are followed for numbering the events or
nodes.
• For example—same node number is not to be used twice in the network; tail node
number is smaller than the head node; numbering starts from lefthand top and ends
in righthand bottom.
• There are two kinds of networks can be used—activity-on-arrow (AOA) and
activity-on-node (AON).
• In AOA, the activities are shown as arrows leading from one node to another node,
and nodes here can be looked upon as either the starting or the end point of an
activity.
• Considering a simple project (construction of a small wall), it can be broken down
into activities such as earthwork, brickwork and plastering, which should necessarily
follow in that order.
• if an activity has more than one predecessor, and one or more of these predecessors is/are
also a predecessor for some other activity/activities, then dummy activities are generally
required to make the connections.
• The addition of dummy activities to an AOA network is a cumbersome procedure and it
adds to extra work in computational process in network techniques, in addition to making
the network look lengthy.
• In order to avoid these shortcomings, the AON alternative has been devised.

Activity-on-Node (AON)
• In this type of network, the activities are denoted by circles or boxes called nodes, and the
immediate predecessor relationship between the two activities is shown by an arrow
connecting the two nodes.
• People often compare AOA and AON, and wonder which is the most convenient to use.
The use of AOA seems to be the most intuitive when creating a simple network manually,
• while AON is more convenient if the network is large, complex and with many relationships.
It is also much easier for setting up computation.
• AON is simple to draw and revise when compared to AOA (though computer programmes
can make this also a simple affair).
• Further, AON is simpler to explain and can be understood even by a non-technical person. In
recent times, the application of commercial scheduling software such as MS Project and
Primavera in construction industry has made AON very popular
Precedence
• This is the logical relationship implying that an activity needs one activity (or more activities)
to be completed, before this activity can start.

• For example, in order to be able to start plastering, the brickwork needs to have been
completed, i.e., logically, brickwork precedes plastering.

• It is a common practice in most construction projects to represent the precedence of

activities in the form of a table, called the precedence table.

• For preparing the precedence table, a list of activities that should precede a given activity is
given. It should also be mentioned that this concept (of precedence) is sometimes referred
to as ‘dependence’.
Network Logic
• Figure 6.10 shows an example of a ‘burst’
situation wherein two activities A and B are
starting in parallel,
• while Figure 6.11 shows the example of a ‘merge’
situation wherein two activities C and D are
getting completed together.
• Figure 6.12 shows the incorrect way of showing three
parallel activities A, B and C.
• The three activities have the same initial node number
(1) and final node number (2).
• This has been corrected (see Figure 6.13) by adding
two dummy activities, (2, 4) and (3, 4).
Duration of an Activity
Duration of an activity (i, j) is denoted by D(i, j). This is the length of time required to
carry out an activity (i, j) from the beginning to its end.

Depending upon the activity and the level of detail, the duration may be expressed in
days, weeks, or months.

Start and Finish Times

In principle, an activity can be started as soon as the groundwork involved has been
completed, but the client or contractor may (be able to) wait for sometime before
starting the activity without affecting the overall project completion.
Earliest start time of an activity
• This is the earliest, that the activity (i, j) can be started, i.e., all the necessary preconditions
are met.
• Earliest start time of an activity (i, j) has been denoted by EST(i, j) in this text.

Earliest finish time of an activity

• This is the earliest, that an the activity (i, j) can be completed.
• Earliest finish time of an activity (i, j) has been denoted by EFT(i, j) in this text.
• Mathematically, the relationship can be expressed as
EFT(i, j) = EST(i, j) + D(i, j)
Latest finish time of an activity
• This is the latest time that an activity needs to be completed in order that there is no
delay in the project completion.
• Latest finish time of an activity (i, j) has been denoted by LFT(i, j) in this text.

Latest start time of an activity

• This is the latest time when an activity must be started, in order that there is no
delay in the project completion.
• Latest start time of an activity (i, j) has been denoted by LST(i, j) in this text.
Mathematically, the relationship can be expressed as:
LST(i, j) = LFT(i, j) - D(i, j)
Forward and Backward Pass
• The forward pass moves from the ‘start’ node towards the ‘finish’ node, and basically
calculates the earliest occurrence times of all events.
• Considering that the project starts at time zero, the earliest occurrence time at each node
is found by going from node to node in the order of increasing node numbers, keeping in
mind the logical relationships between the nodes as shown by the connecting arrows.
• The earliest occurrence time for any node can be estimated from the (maximum) time
taken to reach that node from the different incoming arrows.

• Now, the backward pass is

made in a similar manner to
that of the forward pass, except
that the process is carried out
in reverse through the nodes,
starting from the end node and
finishing at the start node.
Float or slack Time
An activity need not be started as soon as it can physically be started, without adversely
affecting project completion.
In other words, activities have some additional time available, which can be used in different
ways as illustrated in a following example.
As a corollary, it stands to reason that all activities on the critical path have no float.

Total float in an activity - Total float of an activity is the amount of time by which the start
of the activity may be delayed without causing a delay in the completion of the project.
Free float- Free float is the amount of time by which the start of an activity may be delayed
without delaying the start of a following activity.
• Free float is defined as the earliest occurrence time E of the following event minus the
j

earliest occurrence time E of the preceding event minus the duration of the activity defined
i

between these events.

• Free float for an activity (i, j) is denoted by FF(i, j) and is calculated from the following
expression:
FF(i, j) = E – E – D(i, j)
j i

Independent float - Independent float is the amount of time by which the start of an
activity may be delayed without affecting the preceding or the following activity.
• Independent float is defined as the earliest occurrence time Ej of the following event minus
the latest occurrence time Li of the preceding event minus the duration of the activity
defined between these events.
• Independent float for an activity (i, j) is denoted by IF(i, j) and is calculated from the
following expression: IF(i, j) = Ej – Li – D(i, j)
Interference float - It is defined as the difference in total float and free float. In other
words,
Interference Float = TF(i, j) – FF(i, j) (6.17)
• It may be noticed that the term earliest occurrence time and early occurrence time
are used interchangeably in our discussion.
• Similarly the term latest occurrence time and late occurrence time are used
interchangeably in the text in the context of event times.
• These are also referred to as Early Event Time (EET) and Late Event Time (LET).
Critical Path Method
• Any series of activities connecting the starting node to the finishing node can be said to
define a ‘path’ and, indeed, in a project having several activities, several such ‘paths’ can be
identified.
• Among these paths, the ‘critical path’ is defined as one that gives the longest time of
completion (of the project), which also defines the shortest possible project completion
time