CEN 451

PROJECT EVALUATION, PLANNING AND

MANAGEMENT

(Construction and project management,

project and its characteristics)

Lecture 3 & 4
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 CONSTRUCTION MANAGEMENT….
Construction Management is a professional service that applies
effective management techniques to the planning, design and
construction of a project from inception to completion for the
purpose of controlling time, cost and quality.

Principle objective of a construction manager is to complete each

project on time and within budget, while maintaining acceptable
levels of safety and risk. 2
 CONSTRUCTION MANAGEMENT
BASIC RESOURCES:
• workforce • material
• subcontractors • information
• equipment • time
• construction plant • money

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 CONSTRUCTION IS A UNIQUE INDUSTRY
 Not performed in controlled conditions, therefore highly
impacted by weather and other environmental conditions
 Seasonality
 Each project is unique
 Remotes sites with various access problems
 Process is not as predictable
 Difficulty in applying automation
 High potential for encountering unforeseen conditions
 Costs can vary according to conditions
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 CONSTRUCTION IS A UNIQUE INDUSTRY CONT’D

 Difficult to manage and supply utilities and other resources.

 Technical innovations are adopted slower.
 Success is dependent upon the quality of its people.
 Very custom-oriented
 Product can be of mind-boggling size, cost, and complexity

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FUNCTIONS OF MANAGEMENT

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PLANNING

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WHY DO PLANNING?

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ORGANIZING:

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LEADING:

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CONTROLLING:

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LEVELS OF MANAGEMENT

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MANAGERIAL FUNCTIONS

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MANAGERIAL FUNCTIONS

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 Project Characteristics
Key Characteristics: Any project can be characterized by these
characteristics:

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
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means that the successive iterations of planning processes result in
developing more effective solutions to progress and develop projects.
 Project Characteristics

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 16
 Project Characteristics
Typical characteristics of a construction project:
•It has a definite start and end point
•Once the end point is reached, the project is over
•It is attempting to achieve something new
•Project must meet the customer or stakeholder requirements

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 Project Characteristics

Important aspects of a project:

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 Project Characteristics

Difference between project and operation management:

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 Project Characteristics

Objectives of Project Management:

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 Project Characteristics
Project Stakeholders:

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 Project Characteristics

Example of Project………

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 Project Characteristics
Can it be a project?

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 Project Characteristics
Common project characteristics:

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Project Characteristics

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Project Characteristics

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 Project Characteristics

Classification of project:

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 Project Characteristics

Classification of project:

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 Project Characteristics

Classification of project:

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 Project Characteristics

Classification of project:

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 Project Characteristics

Classification of project:

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 Project Characteristics

Reasons for project failures:

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 Summary of Project Management
The management of a project generally follows these steps:

Step 1: Project Definition (to meet the needs of the end user)
Intended use by the owner upon completion of construction
Conceptual configurations and components to meet the intended use
Step 2: Project Scope (to meet the project definition)
Define the work that must be accomplished
Identify the quantity, quality, and tasks that must be performed
Step 3: Project Budgeting (to match the project definition and scope)
Define the owner's permissible budget
Determine direct and indirect costs plus contingencies
Step 4: Project Planning (the strategy to accomplish the work)
Select and assign project staffing
Identify the tasks required to accomplish the work
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 Summary of Project Management
The management of a project generally follows these steps:

Step 5: Project Scheduling (the product of scope, budgeting, and

planning) Arrange and schedule activities in a logical sequence
Link the costs and resources to the scheduled activities

Step 6: Project Tracking (to ensure the project is progressing as

planned) Measure work, time, and costs that are expended
Compare "actual" to "planned" work, time, and cost

Step 7: Project Close Out (final completion to ensure owner

satisfaction) Perform final testing and inspection, archive
documents, and confirm payments 34
Turn over the project to the owner
 Summary of Project Management

These steps describe project management in its simplest form. In

reality there is considerable overlap between the steps, because
any one step may affect one or more other steps. For example,
budget preparation overlaps project definition and scope
development. Similarly, project scheduling relates project scope
and budget to project tracking and control.

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 Who Does The Project Manager Work For?

The project manager works for the project, although he or she

may be employed by the owner, designer, or contractor. For large
projects a team consisting of a project manager for the owner,
designer, and contractor forms a group of people who work
together to manage the design, procurement, and construction
activities. For small projects the owner may delegate overall
project management responsibility to a design consultant, or a
professional construction manager, and assign an owner's
representative as a liaison to represent the owner's interest.

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Project Manager's Role In Planning

1. Develop planning focused on the work to be performed

2. Establish project objectives and performance requirements early so
everyone involved knows what is required
3. Involve all discipline managers and key staff members in the process
of planning and estimating
4. Establish clear and well-defined milestones in the project so all
concerned will know what is to be accomplished, and when it is to be
completed
5. Build contingencies into the plan to provide a reserve in the schedule
for unforeseen future problems 37
Project Manager's Role In Planning

6. Avoid reprogramming or re-planning the project unless absolutely

necessary
7. Prepare formal agreements with appropriate parties whenever
there is a change in the project and establish methods to control
changes
8. Communicate the project plan to clearly define individual
responsibilities, schedules, and budgets
9. Remember that the best-prepared plans are worthless unless they
are implemented.
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Project Manager's Role In Organizing

1. Organize the project around the work to be accomplished

2. Develop a work breakdown structure that divides the project into
definable and measurable units of work
3. Establish a project organization chart for each project to show
who does what
4. Define clearly the authority and responsibility for all project team
members

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Project Manager's Role In Staffing

1. Define clearly the work to be performed, and work with appropriate

department managers in selecting team members
2. Provide an effective orientation (project goals and objectives) for
team members at the beginning of the project
3. Explain clearly to team members what is expected of them and how
their work fits into the total project
4. Solicit each team member's input to clearly define and agree upon
scope, budget, and schedule.

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Area of Expertise a Project Manager Should Bring to the Team

The important factors to consider within the project environment.

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Project Management Body of Knowledge (PMBOK Guide)
PMBOK is the fundamental knowledge you need for managing a project,
categorized into 10 knowledge areas:
Managing integration: Projects have all types of activities going on and there is
a need to keep the “whole” thing moving collectively – integrating all of the
dynamics that take place. Managing integration is about developing the project
charter, scope statement, and plan to direct, manage, monitor, and control
project change.

Managing scope: Projects need to have a defined parameter or scope, and this
must be broken down and managed through a work breakdown structure or
WBS. Managing scope is about planning, definition, WBS creation, verification,
and control.

Managing time/schedule: Projects have a definite beginning and a definite

ending date. Therefore, there is a need to manage the budgeted time
according to a project schedule. Managing time/schedule is about definition,
sequencing, resource and duration estimating, schedule development, and 42
schedule control.
Project Management Body of Knowledge (PMBOK Guide)
Managing costs: Projects consume resources, and therefore, there is a need to
manage the investment with the realization of creating value (i.e., the benefits
derived exceed the amount spent). Managing costs is about resource
planning, cost estimating, budgeting, and control.

Managing quality: Projects involve specific deliverables or work products.

These deliverables need to meet project objectives and performance
standards. Managing quality is about quality planning, quality assurance, and
quality control.

Managing human resources: Projects consist of teams and you need to

manage project team(s) during the life cycle of the project. Finding the right
people, managing their outputs, and keeping them on schedule is a big part of
managing a project. Managing human resources is about human resources
planning, hiring, and developing and managing a project team.
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Project Management Body of Knowledge (PMBOK Guide)

Managing communication: Projects invariably touch lots of people, not just the
end users (customers) who benefit directly from the project outcomes. This can
include project participants, managers who oversee the project, and external
stakeholders who have an interest in the success of the project. Managing
communication is about communications planning, information distribution,
performance reporting, and stakeholder management.

Managing risk: Projects are a discovery-driven process, often uncovering new

customer needs and identifying critical issues not previously disclosed. Projects
also encounter unexpected events, such as project team members resigning,
budgeted resources suddenly changing, the organization becoming unstable,
and newer technologies being introduced. There is a real need to properly
identify various risks and manage these risks. Managing risk is about risk
planning and identification, risk analysis (qualitative and quantitative), risk
response (action) planning, and risk monitoring and control.
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Project Management Body of Knowledge (PMBOK Guide)

Managing procurement: Projects procure the services of outside vendors and

contractors, including the purchase of equipment. There is a need to manage
how vendors are selected and managed within the project life cycle. Managing
procurement is about acquisition and contracting plans, sellers’ responses and
selections, contract administration, and contract closure.

Managing stakeholders: Every project impacts people and organizations and is

impacted by people and organizations. Identifying these stakeholders early,
and as they arise and change throughout the project, is a key success factor.
Managing stakeholders is about identifying stakeholders, their interest level,
and their potential to influence the project; and managing and controlling the
relationships and communications between stakeholders and the project.

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Distinguishing Between Project And Discipline
Management

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Functions of Management
Management is often summarized into five basic functions:
planning, organizing, staffing, directing, and controlling. Although
these basic management functions have been developed and used
by managers of businesses, they apply equally to the management
of a project.

Planning is the formulation of a course of action to guide a project

to completion. It starts at the beginning of a project, with the
scope of work, and continues throughout the life of a project. The
establishment of milestone sand consideration of possible
constraints are major parts of planning. Successful project planning
is best accomplished by the participation of all parties involved in a
project. There must be an explicit operational plan to guide the
entire project throughout its life.
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Functions of Management

Organizing is the arrangement of resources in a systematic manner to

fit the project plan. A project must be organized around the work to
be performed. There must be a breakdown of the work to be
performed into manageable units, which can be defined and
measured. The work breakdown structure of a project is a multi-level
system that consists of tasks, subtasks, and work packages.

Staffing is the selection of individuals who have the expertise to

produce the work. The persons that are assigned to the project team
influence every part of a project. Most managers will readily agree
that people are the most important resource on a project. People
provide the knowledge to design, coordinate, and construct the
project. The numerous problems that arise throughout the life of a
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project are solved by people.
 Functions of Management
Directing is the guidance of the work required to complete a
project. The people on the project staff that provide diverse
technical expertise must be developed into an effective team.
Although each person provides work in his or her area of expertise,
the work that is provided by each must be collectively directed in a
common effort and in a common direction.

Controlling is the establishment of a system to measure, report, and

forecast deviations in the project scope, budget, and schedule. The
purpose of project control is to determine and predict deviations in
a project so corrective actions can be taken. Project control requires
the continual reporting of information in a timely manner so
management can respond during the project rather than
afterwards. Control is often the most difficult function of project
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management.
 Practice questions

1. List down at least three example of project and non-project

2. Define the character of a project

3. Define the stages of a project

4. List down at least four reasons of project failure

5. Define the character of a good project manager

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