9/6/2022

Bahir Dar
Institute of Technology
MSc. in Construction
Technology and Management

Introduction to Construction Project Management

By: Solomon M. (PhD)

August, 2022.

OUTLINE

1 Introduction

2 Construction Project Management Theories

3 CPM: Past and Present

4 Discussion

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INTRODUCTION

• A project is “a temporary endeavor undertaken to create

unique produce or service” PMBOK
• A Temporary Endeavor
• Has a defined beginning and end (could even be
terminated if business case no longer holds)
• Creates a Unique Product or Service
• Every project entails unique features of either
stakeholders, production approach, governance,
context (environment), etc

INTRODUCTION

• Is progressively elaborated
• A project has different phases and the knowledge
accumulated increases as it passes through these
phases
• Component of a business plan
• A project (or the product it delivers) is not an end by
itself, it is a means to an end (objective).

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INTRODUCTION

• Projects Drive Change

• Projects drive change in organizations. From a business
perspective, a project is aimed at moving an organization
from one state to another state in order to achieve a specific
objective

INTRODUCTION

▪ Construction projects entail an intricate interaction of various

resources and processes to achieve the project goals
▪ Good project management should vigorously pursue to optimally
and contextually organized and managed these resources and
processes to achieve the project goals.

.
Project goals

➢Construction project management is the professional practice of

planning (and organizing), scheduling, monitoring, and controlling a
finite amount of resources—materials, labor, equipment, and
subcontractors—to achieve a set of goals;

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INTRODUCTION

INTRODUCTION

▪ Project Management (PM) is “the application of knowledge,

skills, tools and techniques to project activities in order to
satisfy project requirements” (PMI; 2013);

✓The argument is that, there are sets of knowledge, skills, tools and
techniques that can be mastered by the project management team
and, if properly applied, would likely result in success.

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INTRODUCTION

Project Management typically involves:

▪ Identifying, recognizing and articulating Needs /
Requirements (and setting objectives)
▪ Dealing with various (and at times contrasting) stakeholders’
concerns, expectations, etc and
▪ Balancing the competing constraints of Scope, Quality,
Schedule, Budget, Resources and Risk in planning and
delivering the project
PM is therefore a systematic way of applying ranges of sets of knowledge, skills,
tools, techniques, traits etc. to achieve project objectives in the best possible way.

INTRODUCTION

Effective project management helps individuals, groups, and public

and private organizations to:
▪ Meet business objectives;
▪ Satisfy stakeholder expectations;
▪ Be more predictable;
▪ Increase chances of success;
▪ Deliver the right products at the right time;
▪ Resolve problems and issues;
▪ Respond to risks in a timely manner;
▪ Optimize the use of organizational resources;

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INTRODUCTION

Poorly managed projects or the absence of project management

may result in:
▪ Missed deadlines
▪ Cost overruns
▪ Poor quality
▪ Rework
▪ Loss of reputation for the organization
▪ Unsatisfied stakeholders, and
▪ Failure in achieving the objectives for which the project was
undertaken

INTRODUCTION – CPM THEORY: PROJECT MANAGEMENT

▪ The conceptualization of project management generally root in

either of:

• Engineering Science and • Social sciences

Applied Mathematics • Interested in the organizational
– Primarily interested in and behavioral aspect of project
optimizing techniques & management;
methods of project • Focuses of soft skills of
management • Organizing;
• Focuses on tools, methods • Team work; leadership;
and techniques • Motivation, etc
• WBS;
• CPM/PERT
• Optimization algorithms;
• etc

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THE ETHIOPIAN CONSTRUCTION INDUSTRY

❑Construction Industry (CI) is an industry which is involved in the

planning, execution and evaluation of all types of civil works.
❑Construction Industry can be categorized into the following major
sectors:
i. Transport and Communication Sector - Road, Railway,
Airway, and Telecommunication related physical works.
ii. Water and Energy Works – Hydropower development,
transmission lines, wind power, irrigation projects etc
iii. Buildings (Urban development) and Other Physical
Infrastructures.

Transportation Infrastructure
Energy supply
The Construction
Industry

Urban development

Water supply

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INTRODUCTION – CHARACTERISTICS OF CI

• Nature of Production: [usually] on site

➢ Changing supply-chain relationship and production site (unstable market
and job/work security)
➢ Exposed to inclement weather condition
➢ Proliferation of small firms
➢ Seasonal disruption
➢ Health and safety concerns
• Nature of Product: large, heavy, durable, expensive,
heterogeneous, and immobile:
➢ Demand is localized
➢ Demand doesn’t vary extensively
➢ Costly to abandon and rebuild
➢ Project size considerable to executing company capacity
➢ Not tenable to change in taste and fashion

INTRODUCTION – CHARACTERISTICS OF CI

• Demand for the Product

➢ Demand is usually driven by ‘other’ goods and services; not controlled by
industry,
➢ In the majority of cases, clients define requirements before the industry
provides it,
➢ Time lags b/n demand and supply is long.
• Compared to other industries, CI is labeled as ‘conservative’
➢ Slow up take of new technology and management philosophies;
➢ Different arguments about the advantages and disadvantages of its conservatism.

• Some serious critics about ‘inefficiencies’ in the industry

➢ Fragmented industry
➢ Sequential project delivery system and adversarial supply-chain relationship
➢ Inefficient resource utilization
• Known for late delivery, over budget, poor returns (both from
client's and operating company’s perspective)

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Application of RMC in a Small Residential House

Application of RMC in a Small Residential House

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Application of RMC in a Small Residential House

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STAKEHOLDERS IN CONSTRUCTION PROJECTS

▪ The practice of planning, designing, constructing, and

operating a facility is most usually a collective effort of different
groups of professionals and trades.

▪ Depending on the size, complexity, and purpose of a particular

construction project, the project team may include:
❖ A client: Individuals, government, real estate developers etc.

❖ Financial institutions or other investors that provide the funding

❖ Local planning and code authorities

STAKEHOLDERS IN CONSTRUCTION PROJECTS

❖ Consultants or Licensed architects and engineers who

provide design work and prepare construction
documents
❖ Contractors who provide construction services and
install systems
❖ Marketing or leasing agents
❖ Facility managers who are responsible for operating the
facility.

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STAKEHOLDERS IN CONSTRUCTION PROJECTS

A. Client
❑The client is the initiator and owner of the project
❑The client is the most important party who is active from inception to
completion and event to post-occupancy maintenance.

Project Idea

Client

Land Capital

STAKEHOLDERS IN CONSTRUCTION PROJECTS

❑Clients may be classified as Public sector clients and private

sector clients.

A. Public sector clients

▪ Central Government Offices (Ministries)
▪ Local Authorities (Regional or Town)
▪ Public Corporations

B. Private sector clients

▪ These are private individuals & private companies

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STAKEHOLDERS IN CONSTRUCTION PROJECTS

B. Consultant
❑The consultant transfers the wish of the owner into realizable form and
makes the study, design and possibly the supervision.
❑The main role of the consultant is to interpret the client’s project
requirement into a specific design.

C. Contractor
❑The contractor is the one who performs the work
❑These are groups established mainly as commercial companies, that
contract to construct development projects.

STAKEHOLDERS IN CONSTRUCTION PROJECTS

D. Public Sector Agencies

A. Statutory Authorities
▪ These bodies offer technical advice during design and
construction in their respective areas.
▪ E.g. EEPCO, AAWSA, Fire Authority - requires meeting their
specific requirements. Thus early information to these
authorities is required.

B. Municipalities and Government Authorities

▪ These bodies offer the basic Land permit and building permit.

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STAKEHOLDERS IN CONSTRUCTION PROJECTS

E. Insurance Companies: Contractors are required to provide bid

bonds as a condition of being allowed to bid, and then they must
provide insurance.
F. Banks: Banks provide the working capital contractors need to
build the project.
G. Suppliers: The quality of a construction project is very
dependent on the quality of the suppliers used by individual
contractors.
H. Trade (labor) unions: are unions of the working class that look
after unfair treatment of workers (like payment issues, firing
issues) as well as issues related to occupational health and safety

RELATIONSHIP AMONG MAJOR PARTIES

• The activities and roles of each player varies from project to

project and ownership.

• But, in general, the following figure shows the roles of each

participant at different stages of construction.

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ROLES AND RESPONSIBILITIES OF MAJOR PARTIES

Roles and Responsibilities of the Client

➢Demand for the product. For example for the building project:
▪ Availability and cost of land,
▪ Location & accessibility
▪ Price
▪ Required Infrastructure
▪ Legal constraints
▪ Current & future development
▪ Soil characteristics of land
▪ Site preparation (right of way)
▪ Permits

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ROLES AND RESPONSIBILITIES OF MAJOR PARTIES

Roles and Responsibilities of Consultant

❑The main role of the consultant is to interpret the client’s

project requirements into a specific design.

❑The consultants’ team shall:

▪ Ascertain, interpret and formulate the client’s requirement

into an understandable project.

▪ Design the project to match requirements and constraints

(imposed by statutory obligations, technical feasibility,
environmental factors, site conditions, cost, etc)

ROLES AND RESPONSIBILITIES OF MAJOR PARTIES

• Assess client’s cost limit to decide on materials & the like.

• Prepare contract documents.

• Supervise the project and constantly inform the client on the

progress

• Administer contracts

• Approve payments

• Resolve contractual disputes

• Issue provisional and final acceptance certification

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ROLES AND RESPONSIBILITIES OF MAJOR PARTIES

The Contractors
❑These are groups established mainly as commercial
companies, that contract to construct development projects.
Responsibilities:
• Carry out a full site investigation prior to submission of
tender. This helps to know the costs of contractual risks and
problems
• Submit tender
• Plan & schedule construction activities works and sometimes
re-schedule tasks, whenever unforeseen situation occur.

ROLES AND RESPONSIBILITIES OF MAJOR PARTIES

• Control directly employed works, sub contractors, suppliers,

materials and plant
• Control project program & cost
• See to it that completed works comply with the specification
and are to the satisfaction of the consultant
• Notify the consultant about delays, discrepancies, direct loss
• Effect all payments to his employees, suppliers,
subcontractors, etc
• Rectify all defects on completion of works
• Provide post occupancy repair & maintenance if required

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ROLES AND RESPONSIBILITIES OF MAJOR PARTIES

Public Sector Agencies

• These are organizations set with the authority to run public
utilities or provide local service.
• They are
❑Statutory Authorities
These bodies offer technical advice during design and construction
in their respective areas.

ROLES AND RESPONSIBILITIES OF MAJOR PARTIES

❑Municipalities & Gov’t Authorities

• Land permit

• Building permit

❑The responsibilities of these authorities are to:

• prepare development plans (site etc) to benefit the public

• ensure that all plots and likes are put to the intended use

• approve and control standards

• Material quality

• Safety

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DISCUSSIONS [BRAIN STORMING] – IN GROUPS

▪ Features of the Ethiopian Construction Industry

✓ What are the benefits of the construction industry in the Ethiopian

socio – economic development of the country?

✓ Major Challenges of construction industry - [Technical, Managerial,

and others]

✓ What are the roles and responsibilities of Project Manager? And what

types of knowledge, skills, tools and techniques does a Project

Manager require in the Ethiopian construction business context?

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