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.

.
Proje ct 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,recognizingandarticulatingNeeds/ 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 • Social sciences

and Applied
Mathematics • Interested in the organizational
and behavioral aspect of project
– Primarily interested in
management;
optimizing techniques &
• Focuses of soft skills of
methods of project
• Organizing;
management • Team work; leadership;
• Focuses on tools, methods • Motivation, etc
and techniques
• 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:
Transport and Communication Sector - Road, Railway,
Airway, and Telecommunication related physical works.
Water and Energy Works – Hydropower development, transmission
lines, wind power, irrigation projects etc
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
NatureofProduct: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.

Public sector clients

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

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

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.

Municipalities and Government Authorities

These bodies offer the basic Land permit and building permit.

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STAKEHOLDERS IN CONSTRUCTION PROJECTS

Insurance Companies: Contractors are required to provide bid

bonds as a condition of being allowed to bid, and then they must
provide insurance.
Banks: Banks provide the working capital contractors need to build
the project.
Suppliers: The quality of a construction project is very dependent
on the quality of the suppliers used by individual contractors.
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
Thesearegroupsestablishedmainlyascommercial
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
Effectallpaymentstohisemployees,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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