Construction Project

Management
Lecture 1

Prepared by
Dr. Shady Dokhan
 Course Outline

Course Construction Project Management

Instructors Dr. Shady Dokhan
Lecture Monday

Demonstrators Eng. Omar

Final Exam 60%

Assessment Quizzes 20%
Year work 20%
 Instructor information

http://www.bu.edu.eg/staff/shadyahmed3

Msc. & PHD in Construction Management

Class Rules
Project Management Course Outline

• Introduction
• Time Management
• Resource Management
• Time Reduction
• Cost Management
• Time & Cost Control
Course Objectives

On successful completion of this course you

should be able to:
Ø Estimate activities’ cost and duration
Ø Prepare a construction plan and schedule
Ø Manage the required resources
Ø Control the project
Ø Analyze the project schedule
 Lecture 1
Introduction to
Project Management
 Construction Industry

• The largest industry worldwide

• Unique characteristics & challenges
• Growth in this industry in fact is an indicator of
the economy conditions of a country
• Cuts across a large number of trades that
consume a wide employment circle of labor
• Feed & interact with the manufacturing
industry, which exports a large portion of its
products to the construction industry
Difficulties facing Construction Industry

Nature of Industry Increasing

Projects Characteristics Challenges

• Temporary
• Constrained by Time, Money & Quality
• Involve many conflicting parties
• Many decisions are made based solely on
experience
Difficulties facing Construction Industry

Nature of Industry Increasing

Projects Characteristics Challenges

• Extremely Fragmented, with many small

specialties involved
• Intense competition & high failure rates
• Rapidly affected by recessions
• Little research & development expenditures
• Confidentiality & lack of information sharing
• Slow to adopt new technologies
Difficulties facing Construction Industry

Nature of Industry Increasing

Projects Characteristics Challenges

• Global market competition

• Increasing regulations (environment & safety)
• New advances in materials & equipments
• Tight budget, less time, yet better quality is
demanded
• Rising Costs
• Lack of Skilled Resources
Construction Industry
Video
 Total Height : 829.8 m
Budget : US$ 20 billion
Construction hoists Duration : five years
Over 5000 Skilled workers

Complex
Ten cranes Environment

11
Need for Construction Management
§ Cope with increasing complexity of modern
projects.
§ Utilize resources (4 Ms) efficiently. Manpower,
Materials, Machinery, and Money
§ Communicate effectively among the parties.
§ Meet requirements and deadlines.
§ Achieve higher productivity.
§ Document and utilize past experience to improve
future construction.
Classifications of Construction Projects
Residential Buildings Houses, low-rise, high rise
buildings…..
Commercial & Institutional Hospitals, shopping centers,
Buildings educational buildings….
Industrial Buildings Factories, power plants,
petrochemical plants…
Heavy & Highway Streets, high ways, airports,
Construction tunnels, bridges, dams, canals…

Marine Construction Ports, off-shore platforms,

submarine pipelines…
Military Construction
1. Management by Projects (MBP)
Projects vs. Operation

• There are two types of work

performed by Organizations:

§Operations

§Projects
Operations
• An operation is a series of tasks that are
routine, repetitive, and ongoing throughout
the life of the organization.

• Operations are typically necessary to sustain

the business.

• Examples: Banking, Food, Vehicles,

Equipments, Clothes, Accountants….
 Project
§ A temporary and one-time endeavor
undertaken to create a unique product or
service, that brings either beneficial change
or added value.

§ A carefully defined set of activities that use

resources (money, people, materials, energy,
space, provisions, communication, quality,
risk, etc.) to meet the pre-defined objectives.

§ A temporary endeavor undertaken to create

a unique product or service.
Construction Projects Characteristics
A project is:
1. Unique
• Something new
• Size does not matter
• Same design does not mean same project

2. Temporary
• Definite beginning & end.
• End is reached when the project objectives
have been achieved or project is terminated
Construction Projects Characteristics

3. Developed using progressive elaboration

• Progressive
–Proceeding in steps
–Continuing steadily in increments
• Elaboration
–Worked out with care & detail
–Developed thoroughly
Construction Projects Characteristics

4. Definite set of deliverables

5. Requires resources, often from

various areas

6. Involves uncertainty
Project Participants
 Project Participants
Owner / Client / The individual or organization who owns and
Employer finance the project.

Architect / Engineer / The individual or firm engaged to do complete

Designer design works.

General Contractor The firm that is under contract to the owner for
construction of the project or for a major portion .

Subcontractor/ The individual or firm under contract to another

Suppliers contractor to perform a portion of the contractor’s
work.
Construction Manager The organization or firm which furnishes the
administrative & management services for
construction projects.
 Project Life Cycle

Operation &
Concept Design Construction
Maintenance
Concept: Is the project
—ØNeed truly viable?
— Conceptual Design — Contractor carry out site — O & M
— Project Definition — Preliminary Design construction — Lessons
Ø Design Stage: prepare detailed design and tender documents
— Feasibility — Detailed Design — Engineer deployed for learned
—ØConstruction — Specifications
Construction: The contractor contract administration &
starts the construction
Alternatives — Quantities construction supervision
—ØMaster Schedule
O & M: Carried out—byTender Documents
the owner’s — Time, cost & quality
own employees
— Budget — Contract control
— Commissioning
Dr. Ahmad Abbas El-Banna
Project Management
“If you don’t know where you are going , any
road will take you there”.

“If you don’t know where you are, a map won’t

help”.
 What is Project Management?

Management:
ü Coordinating work activities so that they are
completed efficiently and effectively with and
through other people.

Efficiency – keeping costs down.

Effectivness – achieving objectives.

Efficiency is „doing things right”.

Effectivness is „doing the right things”.
 What is Project Management?
Project Management (PM) /
Management by Project (MBP):

üThe discipline of organizing and managing

resources in such a way that these resources
deliver all the work required to complete a
project within defined scope, quality, time
and cost (budget) constraints.

üThe art of managing resources in order to

achieve project goals.
 What is Project Management?
Project Management definition:
“the application of knowledge, skills, tools and techniques
to project activities to meet project requirements” (PMBOK®
Guide, Fifth Edition)

Core Functions
Stakeholders
10

Facilitating
Functions33
What is Project Management?

üThe art of managing resources in order

to achieve project goals.
Project Management Triangle
 Project Management Triangle

ü It is a management processes of planning,

implementing and controlling of any one-time
human activity within time, budget and scope
boundaries, to deliver high quality at low
absorption level of resources
time scope budget
Project Management Triangle

Time
(schedule) Budget
(cost)
Objective(s)

quality

Scope
(tasks)
 Project Management Triangle

TIME:

ü Time required for project completion

ü It is important to divide the work into several
smaller pieces so that it is easy to estimate the time
and measure progress.
ü Time is not considered a cost nor a resource since
the project manager cannot control the rate at
which it is expended. This makes it different from all
other resources and cost categories.
 Project Management Triangle

SCOPE:

ü Requirements specified for the end result

ü The overall definition of what the project is
supposed to accomplish, and a specific description
of what the end result should be or accomplish
ü A major component of scope is the quality of the
final product
ü The amount of time put into individual tasks
determines the overall quality of the project
ü Over the course of a large project, quality can have a
significant impact on time and cost (or vice versa)
 Project Management Triangle

COST:

üCost to develop a project depends on several

variables including: labor rates, material rates,
risk management, plant (buildings, machines,
etc.), equipment, and testing.
üCost also include design costs, supervision,
contract administration, inspection,
management and profit.
 Question L1?
what is the most priority for owners in
construction projects ?
 Project Management Triangle

üTo increase the scope of the project it is necessary to increase time and budget.
üTo increase the level of quality it is necessary to absorb more resources.
 Project Management

Quality vs. Resources

Efficiency of the project

Quality Resources

MAX ? MIN
 Why Project Fail?

• Unrealistic deadline is established (Time)

• Poor scope
• Changing customer requirements
• Underestimate of effort
• Unrealistic expectations
• Technical difficulties
• Miscommunication among project staff
• Failure in project management
• Personal Conflicts
Advantages of Applying Project Management

• Better control of financial, physical, and

human resources
• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker morale
 Material available @
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Lecture 1 Assignment 1

Due Date : Next week

Thank You