JSS POLYTECHNIC ,NANJANGUD

Department of science
Project Management Skills-20PM01T
Common to All Branches (II Semester)

Unit-2: Session-1
Project Execution and Administration
Course Outcome:CO2

Course Coordinator: RAJESHA H P

• Essentials of Project Administration
• Project Team and Project Design
• Work Breakdown Structure(WBS)
• Project Execution Plan(PEP)
• Contracting Plan and Work packing Plan
• Systems &Procedure Plan
• Project Procedure Manual & Project Dairy
• Project Execution System and Project Direction
• Communication in a Project & Project Co-ordination
• Pre –requisities for Successful Project Implementation
 Project Execution
• Project execution is the process by which goals and
promises of a project or programmes are carried out,
following milestone completion.
• Once a project has been established and the goals
are set, the project manager has to act to achieve
these goals
• Concept to completion of a project need the
co-ordination and concerted efforts by various
professionals, for hassle - free execution
Essentials of Project Administration
Essentials of Project Administration
 Essentials of Project Administration
➢The chief executive to issues project chart,
which is necessary to execute project in any
company
➢Project chart must define the project scope,
the project goals, name and authority
delegated project manager, project reviewing
authority and request co-operation of all
concerned in the execution of the project.
➢An elaborate effort in this direction may
produce what is known as a project manual.
PROJECT CHARTER TEMPLATE
 Project Administration
• Administration means guidance ,leadership
and control of the efforts of the groups
towards some common goals
• Project Administration takes place in a separate
organization reporting directly to
the project's executive sponsor. It provides
a project management service for the project teams
and relieves them of most of the planning, tracking,
and reporting responsibility
 Project Management System
A project management system is a combination of
methodologies and technologies that assist you with
the planning, organizing, and scheduling everything
that contributes to the success of a project.
There are two system for the management of
projects and they are

I.Project work system

II.Project control system
 Project Management System

Project Work System tools

Work break down Project Execution Project Procedure

structure(WBS) plan
plan (PEP)
Project Team
 Project Team
A project team is a group of people working
together in collaboration or cooperation
towards a common goal.
or
A project team is a temporary team created to
deliver a project
 Roles and Responsibilities of the Project Team
❖Develop a project plan.
❖Manage deliverables according to the plan.
❖Recruit project staff
❖Lead and manage the project team
❖Determine the methodology used on the project.
❖Establish a project schedule and determine each
phase.
❖Assign tasks to project team members
 Types of Project Team
• Initial project team
• Designated project leader/manager
• Core project team/project steering committee
• Full project team
• Project advisors
• Project stakeholders
• Process facilitators
 Initial project team
• The initial project team consists of specific
people who initially conceive the idea of
starting a project.
• The members of this team may or may not be
part of the core project team.
• The team members are responsible for the
planning and execution of the project,
• One of the team members will be designated
as the project leader/manager
 Designated project leader/manager
The project leader/manager will be responsible
for coordinating the activities amongst the
team members, managing the relations with
key stakeholders and the process of going
through the project cycle.
 Core project team/project steering committee
▪ The core project team is a small group of people,
typically 3 to 8 people who are ultimately
responsible for designing and managing a project
▪ This team alternatively called as project steering
committee which consists of
o Sponsor
o Client leader
o Expert/specialist
o Internal auditor

▪ It will be chaired by the sponsor

 Full project team
• The full project team is a bigger team when
compared to the core project team
• This team consists of complete group of people
involved in designing, implementing, monitoring and
learning from a project
• This team includes managers, stakeholders,
researchers and other key implementers of the
project
• These team members should be such that the overall
skill set is wider
 Project advisors

Project advisors are the people who are not in

the project team, but finally to whom the
team members can depend for honest
feedback and counseling and who can anchor
the cause of the project
 Project stakeholders
Project stakeholders are the individuals, groups or
institutions who have a vested interest in the natural
resources of the project area/or who potentially will be
affected by the project activities and have something to
gain or lose if the conditions of the project change or do
not change. He is like an elite agriculturalist who looks
for bountiful harvest. It is not mandatory that all the
stakeholders should be a part of the project team. The
key stakeholders will find a place in the project team
Ex: creditors, directors, employees, government (and its
agencies), owners (shareholders), suppliers, unions, and
the community from which the business draws its
resources.
 Process facilitators
• A process facilitator is a person who can help
the project team through the planning process
• A process facilitator is part of the initial and/or
the core team
• The process facilitator understands the key
elements of the process and has good
facilitation skills
 Advantage of effective team
• Clear objective of the project from the initiation to
completion
• Good decision-making process, which speed up the
activities
• Clear roles, responsibilities and leadership, without
overlapping, ensure smooth progress
• Leadership roles are shared by team head
• Trust, co-operation, support and constructive conflict
or feedback is essential
• Individual and mutual accountability for performance
results, is the high light of the projects success
 Pitfalls of ineffective team
• Falling performance levels with ambiguous
instruction
• Low level of motivation or lack of it
• Poor communication from the project manager
• Poor or slow decision-making by the team head
• Confusion about responsibilities and vague
• Role and territory conflicts results in controversy
amongst the team
 9 Tips for Choosing Effective Team Members
• Knowledge of biodiversity and threat to biodiversity
• Knowledge of political, social and economic context
• Knowledge/experience of stakeholders and their
concerns
• Skill/experience in developing strategies
• Experience in implementing strategies
• Experience in communications and fund raising
• Experience in budgeting and risk assessment
• Should understand the psychology of the team
• Should not be short tempered
Project Design
 Definition of Project Design
Project design is an early phase of
the project where a project's key features,
structure, criteria for success, and major
deliverables are all planned out. The aim is to
develop one or more designs that can be used
to achieve the desired project goals.
 7 Steps to Effective Project Design
• Define Project Goal. ...
• Determine Outcomes, Objectives, and/or
Deliverables. ...
• Identify Risks, Constraints, and Assumptions. ..
• Prepare a Visual Aid. ...
• Ballpark Your Budget. ...
• Determine Approval and Monitoring Processes. ...
• Use Proper Project Design Documents.
 Steps to Effective Project Design
1. Define Project Goal
You should meet with your team and key
stakeholders to define the ultimate goal or
outcome of your project
This might be
➢ The product that is going to be developed
➢ The service that will be provided
➢ The problem your project will solve
 Steps to Effective Project Design
2. Determine Outcomes, Objectives, and/or Deliverables
Specific: Provide specific guidance on which resources
Are involved and their roles
Measurable:Outcomes,objectives and or deliverables
Must be quantifiable
Achievable:Make sure goals can realistically be achieved
Given the resources ,budget and time frame available
Relevant: All outcomes ,objectives,and or deliverables
Should logically result in achieving project goals and
Producing intended results.
Time-Bound : Provide a timeline for when they will
achieved /completed
 Steps to Effective Project Design
3. Identify Risks, Constraints, and Assumptions
Document any risks and constraints on budget
Time or resources that could affect your team’s
Ability to reach goals
It’s also good practice to document any
Assumptions made during the project design
“Look out for assumptions”All projects are built on
assumptions and smart project manager know this
 Steps to Effective Project Design
4. Prepare a Visual Aid
Visual aids may include:
❑ Sketches or drawings
❑ Plans,schematics or rough blue print
❑ Flow charts
❑ Site trees
❑ Gantt charts
❑ Screenshots or screen designs
❑ Photos
❑ Prototypes
❑ Mind maps
❑ White board drawings
 Steps to Effective Project Design
5. Ballpark Your Budget
• It’s important to know the budget right from
the start
• Estimating your budget will also help you
determine the feasibility of the project
• The clearer you can be about your budget
during the project design phase ,the less likely
you are to experience unexpected cost
overruns later
 Steps to Effective Project Design
6. Determine Approval and Monitoring
Processes
List the criteria you’ll use to judge whether
deliverables,outcomes and the final product
have been achieved.
You should also determine what processes
must be followed in order for the project and
its elements to be approved and who is
responsible for approval .
 Steps to Effective Project Design
7. Use Proper Project Design Documents
In project management ,the output of the
design phase may be as simple as a
➢Gantt chart
➢Flow chart
➢Work chart
➢ hierarchy chart
That is carried into the project planning phase
 Project design is useful to the entrepreneurs in
the following ways
• It gives a comprehensive idea about the entire project - described in every
phase along with the time schedule within which it has to be completed
• It is a diagrammatic representation of the work plan designed to execute
the project, after adjusting the usual delays that may arise in the
implementation of the project.
• The various constituent activities of the project are narrated in sequence
to highlight the various phases of the project
• It enables to identify the know how of events which must take place for
the successful completion of the project
• It helps entrepreneurs in coordinating project activities
• It serves as an effective tool of planning and implementation of a project
• It helps managers to plan the project economically
 Introduction of Computer into the project
management
• Computer based planning and control in Indian
projects, network analysis can considerably enhance
managerial effectiveness in the context of any time
bound action programmes
• Computer-based network analysis can handle these
problems economically and efficiently
• Management is serious in effecting economies in
different areas of activities; and activities and events
are closely watched for initiating corrective action in
proper time. Periodical review meet and assessment
of the progress paves way for corrective action
 Steps to system design for project
management
Project management system is mainly constituted by
project work system and project control system .
1. Create the total physical system and its natural
modules
2. The connection between these modules have to be
identified
3. a control system using information as the media
has to be developed for self control as well as
forced control of the total project
Work Breakdown Structure(WBS)
 Definition of WBS
Work breakdown structure (WBS) in project
management is a method for completing a
complex, multi-step project. ... Breaking it
down into smaller chunks means work can be
done simultaneously by different team
members, leading to better team productivity
and easier project management.
The WBS creation involves
 The WBS creation involves
• Listing all the project outputs (deliverables and
other direct results)
• Identifying all the activities required to deliver
the outputs
• Subdividing these activities into sub activities and
tasks
• Identifying the deliverable and milestone(s) of each
task
• Identifying the time usage of all the resources
(personnel and material) required to complete each
task
 Advantages of WBS
• Effective planning by dividing the work into
manageable elements which can be planned,
budgeted, and controlled
• Assignment of responsibility for work
elements to project personnel and outside
agencies
• Development of control and information
system
 Work Breakdown Structure and Project
Organisation
• The project organisation represents formally how the project
personnel and outside agencies are going to work.
• The work breakdown structure defines what work is to be
done in a detailed manner.
• To assign responsibility for the tasks to be done, the work
breakdown structure has to be integrated with the project
organisation structure
• Work breakdown through the hardware approach is,
therefore, the only natural and permanent way of breaking
work. Added to this, using a rational codification number it is
possible to establish the linkage of the hardware element
with software and agencies. Hardware-oriented work
breakdown structure provides the basic framework for project
work system design
Create WBS
WBS Examples
WBS Examples
WBS Examples
 important points of work breakdown structure
• Useful as a team development tool
• Helps in documentation and detailed planning
• Useful for estimation of time and cost (resources)
• Each item in the WBS is assigned a unique identifier called
code of accounts
• Items at the lowest level are called work packages
• Planning packages are located between work packages and
control accounts
• It is not time based
• Work that is not part of WBS is outside the scope of the
project
 important points of work breakdown structure
• It forms the scope Baseline
• Rule of thumb 8 (heuristic) 80 hours (implies that
in general, effort estimation for work packages to
be approximately between 8 and 80 hours)
• Helps to provide better communication between
project team and stakeholders and clarifies
responsibilities
• Cannot define Risks
• Cannot build the project work
Project Execution Plan(PEP)
Definition of Project Execution Plan
The Project Execution Plan (PEP) is a
document that describes the objectives you
want to achieve in a company with the time
and resources needed such as costs, quality,
benefits, etc. The WBS is a document that
controls, executes and monitors the projects.
The plan serves as the main communication
vehicle to ensure that everyone is aware and
knowledgeable of project objectives and how
they will be accomplished
 The PEP answers basic questions such as
• Who will participate, when will they participate and
what roles will they have?
• How will the project be contracted, sequenced,
managed and controlled?
• When will stage transitions and specific activities
take place?
• What monitoring, control and governance criteria
need to be applied?
• Are there any extraordinary initiatives that may be
required which need to be planned and budgeted
for?
A PEP development model
Sub-Plans of Project Execution Plan
1. Contracting Plan
2. Work packaging Plan
3. Organization Plan
4. Systems and Procedure Plan
Project execution is a strategic plan. It does not deal
with the operational details of building a project. The
operational details are covered in a network plan which
is developed later after the project execution plan is
approved by the owner's plan for the project execution
and, therefore, it must form the basis for development
for all operational plans including network plans
 1.Contracting Plan
• This is the first step in the preparation of a
project execution plan.
• Owners invariably need some agencies with
whom they can share responsibilities.
• In the interest of developing self-regulating
systems it would be necessary to contract out
those areas where the owner's company does
not have inherent competence.
 1.Contracting Plan
All issues that must be examined during this
phase of the project

❖ Which types of contract to choose

❖ which type of reimbursement to make
❖ what conditions of contracts to stipulate
❖ what payment terms to offer
 1.Contracting Plan
Contract planning would involve of a number
of alternatives
❖since there are so many possible
arrangements in terms of sharing of
responsibilities
❖ types of reimbursements
❖ general conditions of contract.
❖Special conditions to contract will be prepared
 2.Work packing Plan
• Work packing plan will be next important step in the
preparation of the project execution plan
• A work package in a project is the smallest division of
work where it still retains the characteristics of a
project.
• when a project is progressively divided into systems
and the systems into subsystems, a stage is
ultimately reached where further division into
components will spell out its multi-disciplinary
character - the work at that stage can be
considered to be a work package
2.Work packing Plan
 2.Work packing Plan
• Work package planning refers to the identification of
these packages, grouping them or keeping them as
they are, in order to form viable contracts
• Work packaging enables better organisation and
management of projects
• This enables project intention of the entire project
execution effort which, in turn, ensures the closest
possible adherence to time, cost and technical
performance targets.
• Thus, design engineers, procurement engineers and
construction engineers will then give priority to their
work in relation to a work package and not
according to functional convenience.
 2.Work packing Plan
• Fulfillment of the requirements of a work
package will alone be considered an
achievement and not mere volume of work
completed. This will lead to a well-
coordinated completion of the project
• The contracting plan and work packaging
plan together produce a list of contracts
with the scope of work defined in terms of
self-contained work packages
 3.Organisation Plan
• This is the third step in the preparation of a project
execution plan
• Having decided the number of contracts and their scope,
the owner is now in a position to set his own house in
order. The owner can deliberate on the form of
organisation to be adopted so that the interest of the
project is best served.
• Several standard organisational arrangements are
possible, ranging from pure functional organisation
to pure projectised organisation and an owner has
to choose his own arrangements depending on the
project size, location, complexity, work packages, type
and number of contracts
 3.Organisation Plan
• It should be however, noted, that an
organization can become more self-regulating
if it is on taskforce or projectised. The
participants in such cases fully identify
themselves with the project objectives and
would regulate their behavior on their own, as
the situation may demand.
 4.Systems and Procedure Plan
• The last section of the project execution plan
deals with systems and procedure
• A heavy emphasis has to be placed on routine
systems and procedure so that no intervention is
required in the day-to-day operation of a system
• There are at least eight routine sub-systems of
project management for which appropriate
procedures can be conceived right at the start of the
project implementation.
 4.Systems and Procedure Plan
• sub-systems
❖ Contract management
❖ Configuration management
❖ Time management
❖ Cost management
❖ Fund management
❖ Materials management
❖ Communication management
While the routine systems and procedure for each
company will be different, in most of the cases the
difference may not be very significant. It is quite possible
to examine the systems and procedure of one project
and adapt it after making minor modifications.
 Uses of a Project Execution Plan
• A project execution plan is used as a the main
document that provides the means to have a certain
project executed, monitored and controlled.
• A project execution plan plays as an important
communication tool that ensures all those who are
also working on the project are well-aware and
properly educated about the objectives of the
project.
• The plan also provides the details on how the project
goals and objectives will be accomplished.
 Uses of a Project Execution Plan
• A project execution plan serves as a written
document that can be used as evidence for legal
proceedings if problems leading to legal or criminal
cases take place.
• It is used as a reference or guide on the steps or
actions to be taken on the correct or appropriate
method to execute a specific project
An execution plan is a highly important document
that allows the project to be completed according to
the plan that has been laid out for it.
 Project Procedure Manual
The Project Procedure Manual contains the
instructions for handling the work on
this project in accordance with the terms of the
contract. It is not to be construed as a document
that in any way adds or detracts from the
contract requirements
• A project procedure manual is to be prepared in
such a way that the interacting agencies are able
to see their roles and mutual relationships in
pursuance of the common goal.
 Project Procedure Manual
• Preparation of a project procedure manual should start
with each project management sub system
• A system de-composition has to be carried out on each
sub-system to identify the need for procedure write-
ups
• While carrying out decomposition the question to be
asked is what the system must achieve and what
contributes to the effective functioning of each of the
elements.
• By asking this question at successive levels it is
possible to develop a complete picture about the
system.
 Project Procedure Manual
• The procedure to be developed for making the
system self-regulative would not, however, come out
automatically from this analysis. The decision has to
be empirical, and in some cases intuitive
Project Diary
 Project Diary
A project diary is a written record of
significant activities, events or processes that
occur during the life of a project.
In order to ensure effectiveness, project
manager or executive have to maintain a
record date wise the point discussed and
decision taken which are required to be
followed for implementation. This is what is
known as project diary
 Benefits to Keep a Project Diary
• Project diary is a narrative record of discussion
• A project manager would be holding a number of
meetings with vendors, contractors, own staff and
various outsides and taken many decision in these
meetings and many commitments are made. Also a
lot of brain-work is done during these meetings.
• The Information or decisions arrived have to be
properly recorded in the project diary. This will go on
record to enable their communication and
implementation
 Benefits to Keep a Project Diary
• This Information in dairy will help to justify the
decisions at later date
• This record may also be used to defend against non-
admissible claims and litigations
• This diary helps to prepare a follow-up register also.
The follow-up register will contain all pending work
with dates committed against each
• Maintaining diary helps the person to get relief from
the burden of carrying everything in their head. It
could boost up one's memory thereby helps to avoid
the problems of unattended work due to lack of
memory
 Project Execution System
• Once these systems and procedures have
been developed for the project, it is the
duty of the project administrator to enable
for smooth take off
• Proper project execution system required to
address the concerned about external
intervention for survival than on its internal
self regulating capacity
 Project Execution System
External intervention
❑ Project direction
❑ Project co-ordination
❑ Project communication
❑ Project organisation
❑ Project control
These terms are often constructed as actions for getting
results. Too often the terms are used interchangeably to
mention management. Therefore, for the successful
execution and administration of project requires
direction, organisation, co-ordination, communication
and control all at the same time but in varying
proportion
Project Direction
 Project Direction
• Project direction refers to the use of authority
to channelise the activities of the project on
desired lines.
• During the initiation of start-up period of
the project this direction shall be provided
by the project manager.
• But once the project enters the production
period direction will be exercised by other
members of the project organisation as per
the project design
 Project Direction
Project Initiation/Start-up: Project direction is
maximum at the time of start-up of
implementation. The project manager during this
period needs to provide directions relating to:
1.Scope of work
2. Specifications of results of completed work
3. Basis of work
4. Division of work- imported Vs. indigenous, departmental Vs.
contract etc
5. Schedule of work
6. Budget of work
 Project Direction
7. Systems and procedure for work
8. Co-ordination of work
9. Authority and accountability for work
10. Control of work

The success of a project is heavily dependent on team work.

All the items from 1 to 10 are completed with the
involvement of project participants or else the directives will
appear authoritarian, and will unnecessarily invite
opposition. If the directions can be formulated through a
participative approach, the some can be issued formally in
the name of a project manual with instructions for strict
adherence to the same
Communication in a Project
 Communication in a Project
Communication is key
in project management. ... Communication is
best defined as the exchange of information
and the expression of ideas, thoughts and
feelings by using words and other methods. In
the project management context
this means the exchange of knowledge, skills
and experience.
 Communication in a Project
• For a successful directions a two-way communications
systems is essential. For that matter, the entire process of
direction, co-ordination and control in a project revolves
around communication
• It is often concluded that projects are run by
communications
• According to Peter. F. Drucker, 63% of management
problems are caused in whole or in part by faulty
management communications
• Communications has two dimensions physical and
mental, passing a memo, drawing, data, instruction,
information, etc. are the physical aspects of
communication
 Communication in a Project
• Understanding the same in the light of role
expectation, empathy, preconceived notions,
language barriers, listening skills etc., are the mental
aspects of communication
• While physical aspects of communications can be
easily achieved, the mental aspects often present
barriers to communication. Perfect communication
requires a conscious and determined effort. •
 Communication in a Project
Effective communication in a project would require a
communication oriented action plan. The actions that may be
taken in this regard are as below:
1. Organisation of work, people and work place with
communication orientation
2. Selection and installation of appropriate communication
devices
3. Project review and co-ordination meetings at predetermined
frequency
4. Predetermined document distribution matrix
5. Establishing healthy attitude towards communication by
appropriate directions.
 Communication in a Project
6. Installing structured reporting systems
7. Implementing routine communications systems and
procedures
8. Establishing a control room
Hence, in any action plan, organisation of work and
people is a basic project management requirement. It is
suggested that this must receive a communication orientation
Common communication problems or barriers of communication:
• Assumption • Lack of clarity • Not listening • Dictation
• Problem mismatch • Personal/ad hominem attacks
• Derision, ridicule, and blame
Project Co-ordination
 Project Co-ordination
Definition:
Co-ordination is a process which ensures smooth
interplay of the functions of management. Common
objectives are achieved without much wastage of
time, efforts and money with the help of co-
ordination
Co-ordination can be defined as the effort to bring
parts into super relation for harmonious
functioning. A well co-ordinated project is as pleasing
as a piece of music.
 Project Co-ordination
Project Co-ordination Procedure: Co-ordination
basically addresses itself to two aspects of work

1. Physical aspect would refer to what is to be done,

how much is to be done and who will do it

2. The timing aspect would refer to when these will be

done. A schedule document which deals with all
these aspects of work should be prepared to
enable proper co-ordination
 Project Co-ordination
• The word breakdown structures(WBS) provide the
basic frame work for both physical and time co-
ordination preparation of work breakdown
structure, structuring the organisation,
establishing a project procedure manual, housing
people under one roof wherever possible --sets
the stage for effective physical co-ordination
• The development of project schedules co-ordinated
with breakdown structure and organisation chart
sets the stage for the timely co-ordination
 Project Co-ordination
Once the stage is so set, the day to day co-ordination
in a project is ensured through
1.Squad check
2.Co-ordination meeting and
3.Communication the messages in mobile phone even
when in executing project site office
A project is a group effort and in a group
there will always be differences of opinion. But
coordination is not merely smoothing out
differences; it is reintegration of the parts into a
whole facing into account the subdivided functions
and their interests
Pre-requisites for Successful Project Implementation

Time and cost over-runs of projects are very

common in India, particularly in the public sector.
Due to such time and cost over-runs, projects
tend to become uneconomical, resources are
not available to support other projects, and
economic development is adversely affected. To
minimize time and cost over- runs and thereby
improve the prospects of successful completion
of projects. A lot of things can be done to
achieve this goal, the more important ones,
appear to be as follows:
 Pre-requisites for Successful Project Implementation

1. Adequate formulation
2. Sound project organisation
3. Proper implementation planning
4. Advance action
5. Timely availability of funds
6. Judicious equipment tendering and
procurement
7. Better contract management
8. Effective monitoring
 Adequate formulation
Often project formulation is deficient because of one or more
of the following shortcomings.

• Superficial field investigation

• Cursory assessment of input requirements
• Slipshod methods used for estimating costs and benefits
• Omission of the project linkages
• Flawed judgments because of lack of experience and expertise
• Undue hurry to get started
• Deliberate over-estimation of benefits and under-estimation
of costs
Care must be taken to avoid the above deficiencies so that the
appraisal and formulation of the project is thorough,
adequate and meaningful.
 Sound Project Organisation
A sound organisation for implementing the project is
critical to its success. The characteristics of such an
organisation are
• It is led by a competent leader who is accountable for the
project performance
• The authority of the project leader and his team is
commensurate with their responsibility
• Adequate attention is paid to the human side of the
project
• Systems and methods are clearly defined
• Rewards and penalties to individuals are related to
performance
 Proper Implementation Planning
Once the investment decision is taken - and often
even while the formulation and appraisal are being
done - it is necessary to do detailed implementation
planning before commencing the actual
implementation. Such planning should inter alia,
seek to:
➢ Develop a comprehensive time plan for various
activities like land acquisition, tender evaluation,
recruitment of personnel, construction of
buildings, erection of plant, arrangement for
utilities, trial production run, etc.
 Proper Implementation Planning
➢Estimate meticulously the resource
requirements (manpower, materials, money,
methods etc.) for each period to realise the
time plan
➢Define properly the inter-linkages between
various activities of the project
➢Specify cost standards
 Advance Action
When the project appears prima facie to be viable
and desirable, advance action on the following
activities may be initiated:
I. Acquisition of land
II. Securing essential clearances
III. Indentifying technical collaborators/consultants
IV. Arranging for infrastructure facilities
V. Preliminary design and engineering
VI. Calling of tenders.
 Timely Availability of Funds
• Once a project is approved, adequate funds must be
made available to meet its requirements as per the
plan of implementation
• it would be highly desirable if funds are provided
even before the final approval to initiate advance
action
• Piecemeal, ad-hoc and niggardly allocation, with
undue rigidities, can impair the maneuverability of
the project team
 Timely Availability of Funds
• It is a common observation that firms which have a
comfortable liquidity position are, in general, able to
implement projects expeditiously and economically
• Such firms can initiate advance actions vigorously,
negotiate with suppliers and contractors,
aggressively, organise input supplies quickly, take
advantages of opportunities to effect economics,
support suppliers in resolving completion of projects,
and sustain the morale of project related personnel
at a high level.
 Judicious Equipment Tendering and Procurement

• To minimize time over-runs, it may appear that a turnkey

contract has obvious advantages
• These contracts are likely to be bagged by foreign
suppliers, when global tenders are floated, a very
important question arises. How much should we rely on
foreign suppliers and how much should we depend on
indigenous suppliers?
• Over-dependence on foreign suppliers, even though
seemingly advantageous from the point view of time
and cost, may mean considerable outflow of foreign
exchange and inadequate incentive for the
development of its indigenous technology and
capability.
 Judicious Equipment Tendering and Procurement

• Over-reliance on indigenous suppliers may mean

delays and higher uncertainty about the technical
performance of the project
• A judicious balance must be sought which
moderates the outflow of foreign exchange and
provides reasonable fillip to the development of
indigenous technology
• Some of the foreign suppliers insists that, a
minimum period of 5 to 6 years spares to be
procured from them and then only switch over to
indigenous supply
 Better Contract Management
Since a substantial portion of a project is typically
executed through contracts, the proper
management of contracts should be done
• The competence and capability of all the contractors
must be ensured -- one weak link can jeopardise the
timely performance of the contract
• Proper discipline must be inculcated among
contractors and suppliers by insisting that they
should develop realistic and detailed resource and
time plans which are congruent with the project
plan
 Better Contract Management
• Penalties- which may be graduated - must be
imposed for failure to meet contractual
obligations. Likewise, incentives may be offered for
good performance
• Help should be extended to contractors and
suppliers when they have genuine problems they
should be regarded as partners in a common pursuit
• Project authorities must retain latitude to off-load
contracts (partially or wholly ) to other parties well
in time where delays are anticipated
 Effective Monitoring
In order to keep a tab on the progress of the
project, a system of monitoring must be
established. This helps in
❑Anticipating deviations from the
implementation plan
❑Analyzing emerging problems and resolving it
at the earliest
❑Taking corrective action