CHAPTER 4

Part 2
INTEGRATION
OF CONSTRUCTION PROJECT
MANAGEMENT AND
SUSTAINABILITY
1
4.3: Types of Organizational Project
Structure
There are several type of organizational
structure includes functional, matrix
and project-based.
Before we go through each of them, lets
get the basic idea about the
organizational structure

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4.3.1 What is organizational structure?

• The organizational structure is defined as a formal

coordination and communication patterns by
management to:
• resume task or
• define responsibilities of individuals and groups in
achieving the ultimate goal of the organization

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4.3.1 What is organizational structure?

• The structure determine:

• Division of works
• Responsibilities
• Cooperation
• Consultation
• Decision making
• Information flows

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4.3.2 Selection of organizational structure

Organizational structure depends on:

Dynamic factors: such as

Task, goal, products or
technology, the rate of
services will be produced Group size
change in environment and
and achieved,
the type of work related

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4.3.3 Types of organizational structure

• Primary project management organizational structure

are:
1. Functional
2. Matrix
3. Pure project

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 Each type has different
characteristics, advantages and
disadvantages.
Lets check this video out!

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1. Functional Organization

• Characteristics
• Based on function or role
• Employees are grouped hierarchically
• Clear lines of authority
• Only one person at top
• Vertical information flow

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1. Functional Organization (cont.)
hierarchically
Only one person at top

function or role

Vertical information flow

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1. Functional Organization (cont.)
• Advantages
1. reduces or prevents conflicts of interest
2. efficiency and clear lines of authority, communication and
accountability
3. workers easily coordinate and communicate within their
departments
4. work well for small and less project organization
5. task assignments consistent with technical training
6. high quality technical problem solving
7. in-depth training and skill development within function
8. clear cut career paths within functions

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1. Functional Organization (cont.)

• Disadvantages
1. project managers have limited authority and a limited career path
in this type of structure.
2. poor communication and coordination across functions
3. having too many decisions referred upward in the hierarchy
4. slow innovation in response to environmental changes.

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 EXAMPLE;
CADANGAN PEMBANGUNAN 3 BLOK PANGSAPURI PR1MA 14 TINGKAT (600 UNIT) TERMASUK: A. 4 TINGKAT PODIUM TEMPAT LETAK KERETA BERSERTA KEMUDAHAN PENDUDUK:i. KLINIK ii. KIOSK iii. SURAU iv.
TASKA v. DEWAN SERBAGUNA; B. PONDOK PENGAWAL; C. PEJABAT PENGURUSAN; D. BILIK PETI SURAT; E. PENCAWANG ELEKTRIK JENIS DOUBLE CHAMBER DAN SINGLE CHAMBER; F. BILIK TANGKI AIR DAN; G. PUSAT
PENGUMPULAN SISA PEPEJAL; DI ATAS LOT 1719-1734, 1755-1770, 1772, SEBAHAGIAN LOT 1735, 1754, 1774, 1775 DAN TANAH KERAJAAN MUKIM PERINGGIT, DAERAH MELAKA TENGAH, TAMAN RUMPUN BAHAGIA,
MELAKA. UNTUK TETUAN WINENRICH ENTERPRISE SDN.BHD.

PROJECT ORGANISATION CHART

WESB MANAGEMENT
DATUK DAVID ONG
DATIN SHIRLEY ONG
MUHAMMAD FIKRI HASMORI

CONSULTANT PROJECT SITE TEAM

PROJECT MANAGER
QUANTITY CHAN TIAN SIAK
ARCHITECT CIVIL & STRUCTURE M&E
SURVEYOR

CH&I Architecture Lead Engineering PKV Engineering Yusof Associates

Ar Ivan Mah Lee Shen Fong Ir Yeng Chuan Buu Sr Yusof Embi
Lim Kai Zheng Ir Lee Fung Ching Ir Ng Hsin Loon Mazani Mohd
Lee Chin Seong Yap Lip Chong
William V H

LAND SURVEYOR LANDSCAPE PLANNING MANAGER PROJECT ENGINEER

TAN CHIN HING AHMAD HUZAIRIE JOHAR

Kumpulan Ukur Petanah Linear Landscape

Sr Ng Eng Seng LAr John Lew
QA/QC OFFICER PROJECT QS QSHE OFFICER SITE MANAGER
NABILAH OSMAN NURUL ADILAH OTHMAN RASHID CHONG TEN KIEN

QA/QC ENGINEER SITE QS QHSE SUPERVISOR

NG CP CHEN GEOK SUAN KAMARULZAMAN

PROJECT ADMIN
LELA

INFRASTRUCTURE LOGISTICS BLOCK 1 BLOCK 2 BLOCK 3 PODIUM CARPARK

SITE SUPERVISOR SITE SUPERVISOR

SITE SUPERVISOR SITE SUPERVISOR SITE SUPERVISOR
CHANG SU THAI ABDULLAH JAAFAR
AZHAR MOHD ALI MACHINERY STOREKEEPER KONG CHIN WOOI ANG BOON SENG

MACHINERY
STOREKEEPER ASST. SITE SUPERVISOR ASST. SITE SUPERVISOR ASST. SITE SUPERVISOR ASST. SITE SUPERVISOR
SUPERVISOR
ZAHIRUL ABDUL HOQUE HOSSAIN BAJIT ABDUL ISLAM MILON HOSSEN
SADAM PANJANG

12
Revision: 15.03.2016
2. Pure project organization
• Characteristics
• Project is separated from the rest of the parent system
• Becomes self contained unit
• Project requiring major changes.
• Hence, a small, self-sufficient and full-time team is set
up.
• The team leader is like an entrepreneur.
• Leader has full responsibility over the project.
• Functional units are stable, provide support to project
teams.

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2. Pure project organization (cont.)

President

Vice President Project A Vice President Project B Vice President Project C

Finance Manufacturing Finance Manufacturing Finance Manufacturing

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2. Pure project organization (cont.)
• Advantages
1. A strong divisiveness occurs between the project team and the
parent organization.
2. PM has full line authority over the project
3. All project workforce directly responsible to the PM
4. Lines of communication are shortened
5. Maintain permanent group of experts
6. High level of commitment
7. Ability to make swift decisions
8. Unity of command
9. Simple and flexible structure
10. Support holistic approach to the project

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2. Pure project organization (cont.)
• Disadvantages
1. Project team members have difficulty in going back to their
functional units when the project is over
2. Duplication of effort
3. Stockpile equipment and technical assistance “just in case”
4. Lack of expertise in high technology project
5. Foster inconsistency and cutting corners
6. Project takes on a life of its own
7. Worry about “life after project ends”

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3. Matrix organization

• Characteristics
• Combination of the pure functional structure and the
product organizational structure
• suited for “project-driven” companies such as
construction.
• people with similar skills are pooled for work
assignments, resulting in more than one manager
• project manager has total responsibility and accountability
for project success.

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3. Matrix organization (cont.)

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3. Matrix organization (cont.)
• Advantages:
1. Individuals can be chosen according to the needs of the project.
2. Better coordination and policy decisions
3. Effective cost management
4. High visibility of project objective
5. High degree of coordination by project manager
6. Flexibility in utilizing limited resources
7. Minimal conflicts

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3. Matrix organization (cont.)
• Disadvantages:
• Personal dissatisfactions
• Difficulties in setting priorities
• Complexities of communication and control
• Projects can be difficult to monitor if teams have a lot of
independence.
• Costs can be increased if more managers (i.e. project managers) are
created through the use of project teams.

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 An organizations structure can HELP or
HURT their ability to achieve success, give
a large impact on the ability to manage a
project.
HOW TO SELECT MOST APPROPRIATE
ORGANIZATIONAL STRUCTURE?

https://www.youtube.com/watch?v=0vPCN6X
3FUI

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4.3.4 Factors to Consider Before Deciding on
Organisational Structure
Number of projects
& their relative
importance
Project
Technology Durations
Required

Consideration
factors
Complexity Resources

Level of uncertainty
in Project Overhead cost

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 4.4: METHODS OF
PROJECT DELIVERY
Which organizations are involved
How a construction project
in every construction project life
could be organized in order to
cycle? At specific phase or
take it from the owner’s concept
throughout the entire design and
to physical reality?
construction process?
In most cases, the owner,
designers, and constructors
come together to complete a How to ensure the
construction project, and then project will efficiently
after it is complete, they and effectively
disband and go their separate organized?
ways.

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……………….by choosing the most appropriate
What is
PROJECT DELIVERY METHOD
PROJECT DELIVERY
METHOD?

PROJECT DELIVERY METHOD

• The way in which the project is organized will affect how efficiently and effectively it can be designed and
built.
• It provide a common framework that people and organizations associated with the construction project
understand and can work within.
• A project delivery system assigns authority and responsibilities to people and organizations as well as
defines the relationship between them. These responsibilities, authorities, and relationships are typically defined
in the contract documents that provide the blueprint for the project delivery system.
• The project delivery system selected by the owner is very important for the contractor because it will impact its
role, responsibilities, and risk on the project.

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 There are 4 primary
METHODS OF PROJECT DELIVERY
that you need to understand.
Let watch this video!

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Methods of Project Delivery

• Major Project Delivery Methods commonly used are:-

• Traditional method (Design-Bid-Build)
• Design-Build
• Construction Management
• Owner-Builder Arrangement

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4.4.1 Traditional Project (Design-Bid-Build)
 Two-step procurement (design and
build as separate contract)
 One general contractor and separate Project Owner
designer
 Can be done by contractor itself
and/or subcontractor
Designer Architect/
 May involves numerous General Contractor
Engineer
subcontractors
 Project can be the “most economical form of construction procurement when
contractor bid at the lowest price”. However experts agree that this method
also could be the “most expensive form of const. procurement with the lowest
quality product if not well monitor”.
 Most contract is based on Bill of Quantities.

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4.4.2 Design-Build Project/Turnkey
 Procurement system in which the owner
contracts with a contractor and/or Project Owner

designer as a single unity, under one

contract. Design/Build Firm
 Owner assign design and build firm to
run the project.
Contractor Contractor Contractor
 Design & Build Firm will be responsible
for both design and construction work.

 Provides the means for company to manage their construction needs without a large
internal staff, and still meets their needs for quality and timeliness.
 Most contract in lump sum value.
 Optional own forces work for contractors and subcontractors.
 Possible Disadvantage is that a dominant contractor will overrule the designer’s
recommendations of quality in the interest of cost.

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4.4.3 Construction Management (CM) Project

 Contract assigned to CM firm or

Owner Project Management Consultant
(PMC) to coordinate the project for
CM/PMC the owner.
Designers
Architect/
 Four Party arrangement involves
Engineers owner, designers, CM firm and
contractors.
Contractors Contractors Contractors  CM does not perform design or
construction work with it own forces.

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4.4.4 Owner-Builder/Agent Arrangements

 Sometimes used for handling a Owner

project.
 Owner perform a partial In-House Contract
design with in-house designers Design Design
and contract the balance of
designs to one or more Owner Contract
Coordinator
outside-design consultants.
 Construction contract may be
assign to one or more Contractor Contractor Contractor

contractors

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Project Delivery Comparison

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For Design-bid-build, the Structural
& Architectural Design must be
finished first, only then can go for
open tender.

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 Meanwhile, for Design Build,
The design and bidding process happen progressively. For
example; once the piling design completed, then will go for
open tender (but mojor design no further change, which
involve piling). Then, other design (Super-structure & Sub-
structure) will carry on, then proceed for tendering…. Etc…

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 Lets see what are the differences
between traditional and design-
build delivery method

Traditional
Design-build

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 4.5: Information and
Communication Technology
(ICT) In construction

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4.5.1 Introduction

ICT (Information and Communication Technology)

• extended for information technology (IT)
• technologies that provide access to information through
telecommunications
• focuses primarily on communication technology
• includes internet, wireless network, cell phones and other
communication medium which enable users to access,
store, transmit, and manipulate information.

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4.5.2 Why construction industry need an
ICT?
• ICT becomes a vital tool for managing information
• Large amount of project information generated and used
during the various stages in project life cycle.
• Sharing and maintaining this information among multiple
disciplines and throughout the project life cycle is complex
and difficult task.
• So, flow of information need to be managed so that it will be
received or accessed when required.

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4.5.3 How to implement ICT in construction?
• Information management!!!!
• Why bother information management?
• Traditional methods have not always worked (E.g. late supply of
information, bad information management, losing of
information.)
• Scale of building work has change (simple project, little
information while big project may involve a lot of information)
• Involvement large number of people (instruction should be
received when needed, easily understood, clear record of
authorized parties).

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4.5.4 Input and output in project phase

Conceptual Detail Construction

Idea Construction Operation
design design planning

Concept Detail Estimate As-built

Report Drawings Drawings schedule drawing

Traditional fragmented and sequential project delivery process

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Problems?
• Causes of problem in adoption and utilization of
integrated IT system
• Poor management and communication
• The fragmented nature of the industry
• Lack of standardization and uniform procedure
• Number of participant involved in construction project.

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We can change the system, but we cannot change
people using the system…

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We can change the system, but we cannot change
people using the system…

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 So, where are we?

QUIZ 4 (Distance Learning)

In your words, briefly explain the summary
video from given in pages 7 /21/26/28/35.
(choose only 1 video). Please write down the
answers, snap a picture & submit through
Edmodo

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THANK YOU

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