POWERPOINT 1

CONSTRUCTION AND PROJECT MANAGEMENT

 Understand objectives
 Gather requirements
 Agree the project scope
 Create the plan
 Deliver the project
 Monitor and review

HISTORY OF MANAGEMENT THEORY AND PRACTICE

 Classical Era 1910 - 1930 ORGANIZING

 Scientific Management
 Defining and maximizing the productivity of individual jobs.

 Bureaucracy
 Maximize productivity of the overall organization.

 MAJOR CONTRIBUTORS

Frederick Taylor
 Father of Scientific Management
 “In the past, man has been first. In the future, the system must be first.”

Max Weber
 the macro approach; focused on employee’s competencies

 Human Era 1930 - 1950 LEADING

 Mary Parker Follett

 mother of the leading era; organizations as “communities”

 Lillian Gilbreth
 human resource management; establish child labor laws and rules to protect
workers from unsafe working conditions

 Chester Bernard
 importance of leadership and the informal organization; employees have a
zone of indifference

 Calculating Era 1950 - 1970 PLANNING

 Systems Analysis

 Management Science
 Operations research
 Operations management
  Break even analysis
 Forecasting
 Inventory modelling
 Linear programming
 Simulations

 Values and Beliefs Era 1970 - 1990 CONTROLLING

 Institutionalization
 when members of an organization find themselves being controlled by
norms that often are not rational, by peer pressure, by simple inertia.

 Reconsidering Era 1990 - present RECONSIDERING

 Multi-stream management
 Ecological sustainability
 Aesthetic costs
 Social Justice
 Spiritual Interest
 Physical well-being

CONSTRUCTION

 MANAGEMENT
 Identifies the criteria of “organized activity, objectives, relationships among
resources, working through others and decisions”. (Cleland and King, 1983)

 PROJECT MANAGEMENT
 The planning, coordination and control of a project from conception to
completion (including commissioning) on behalf of a client, requiring the
identification of the clients objectives in terms of utility, function, quality, time
and cost.

 ORGANIZATION
 “social structures created by individuals to support the collaborative pursuit
of specified goals”. (Scott and Davis, 2007)

THE PROJECT TEAM

 “the product” requires the integration of many specialist skills for the development of
a successful project.

 '‘TEAMS” one of the major forces behind today’s revolutionary changes in

organization. (Schermerhorn et al. 2004)
OBJECTIVES AND DECISIONS OF PROJECT MANAGEMENT

 Objectives of project management process are those defined by the client, and the
role of project management is to ensure that the project organization works to
achieve the client’s objectives.

 Decisions taken during the process should be taken with the sole purpose of the
client’s objectives.

OBJECTIVES OF THE CLIENT

 Functional satisfaction
 Aesthetic satisfaction
 Completion on time
 Completion within budget
 Value for money resources

RESOURCES

 Materials
 Machinery
 Money
 Manpower
 Methods

SYSTEMS THINKING

 Hard systems approach (Yeo 1993)

 quantitative technique in project planning, scheduling and control.

 use of PERT or CPM
 earned-value measurement
 variance analysis
 cost-estimating techniques
 risk analysis,
 Monte Carlo simulation
 sensitivity analysis
 cost modeling

 SOFT SYSTEMS APPROACH (Daniel 1990)

 concerned with human behavior in organizations

 basic intellect
 ability to see more than one point of view
 think logically
 to advocate
 To communicate
CLIENTS

 CLASSIFICATION OF CLIENTS

 The Individual Client

 The Corporate Client
 The Public Client


 ROLE OF THE CLIENT

 the structure of the client’s organization
 the client’s knowledge and experience of the construction process
 the authority vested in the various levels of client’s organization
 the personal characteristics of the client’s people who have responsibility for the
project.

 RESPONSIBILITIES OF A CLIENT

 set clear objectives

 subject objectives initially set to careful

 trade off analysis

 consider objectives carefully when choosing a procurement method

 communicate objectives clearly

 to other parties and avoid conflicting guidance to different parties

 ensure that reaction to unexpected events involves proper revision and

 consideration of client objectives provide clear direction and timely decisions

must assist the project management team to drive to a successful conclusion

SKILLS OF A PM (INTERNAL FACTORS OF A PERSON)

 ability to determine the desire of the client.

 analytical skills to turn data into information and breakdown the project into
comprehensible component parts.
 technical skills- must at least be capable of comprehending the work and speak the
language of the people involved.
 team skills- ability to motivate and enthuse a team
 ability to delegate effectively
 ability to manage your own time
 balancing of stakeholders perceptions of project progress (or being able to sell ideas)
 negotiating skills
 facilitating problem-solving
 question all assumptions of stakeholders at all times
4 FACTORS AFFECTING THE ROLE OF PM

 Responsibility
 the scope of the control of the PM as they perceived it

 Authority
 the organization’s view as to the scope of control of the PM

 Accountability
 the set of outcomes that are determined to be under the control of the PM

 Credibility
 the organization must stand behind the PM and back the decisions that are
made.

RULES FOR BALANCING THE ROLE OF A PM

 No responsibility without authority.

 No authority without accountability

HUMAN RESOURCES MANAGEMENT

 The HRM process consists of planning, attracting, developing, and retaining the human
resources (employees) of an organization.

 Retaining employees
 compensation;
maintenance; labor
relations; separation

 HR Planning
 strategic HR planning;
job design

 Attracting employees
 recruiting; selecting

 Developing employees
 training & development; performance appraisal
PROJECT ORGANIZATION STRUCTURE

 Outlines the positions, responsibilities, authorities and accountabilities of all the people
involved in the project.

HOW TO WRITE JOB DESCRIPTION?

 JOB TITLE

 Make your job titles specific.

 Targeted job titles are more effective than generic ones, so be precise
by including key phrases that accurately describe the role.

 Avoid internal lingo that may confuse the job seeker.

 Stick to standard experience levels like “Senior” rather than “VI” or other
terms people are less likely to look for.

 Keep the job title concise.

 Our data shows job titles that are 80 characters or less receive more
clicks.

 Research popular job titles.

 compare the popularity of job titles and phrases within job postings.

 JOB SUMMARY

 Open with a strong, attention-grabbing summary.

 Your summary should provide an overview of your company and
expectations for the position.

 Hook your reader with details about what makes your company unique.
 Your job description is an introduction to your company and your
employer brand. Include details about your company culture to sum up
why a candidate would love to work for you.

 Include an exact job location.

 Provide an exact job location to optimize your job posting so it appears
higher in job search results.

 RESPONSIBILITIES AND DUTIES

 Outline the core responsibilities of the position.

 Highlight the day-to-day activities of the position.
 Specify how the position fits into the organization.

 QUALIFICATIONS AND SKILLS

 Include a list of hard and soft skills.

 Of course, the job description should specify education, previous job
 experience, certifications and technical skills required for the role. You
may also include soft skills, like communication and problem solving, as
well as personality traits that you envision for a successful hire.

 Keep your list concise.

 While you may be tempted to list out every requirement you envision for
your ideal hire, including too many qualifications and skills could
dissuade potential candidates.
 POWERPOINT 2

CONTRACTS AND SPECIFICATIONS

 A contract is basically an agreement between two parties creating a legal obligation

for both of them to perform specific acts.

 In order for the contract to be enforceable, each party must exchange something of
value (called “consideration”).

 They may be either oral or written, though courts prefer that agreements be put in
writing.

REQUIREMENTS FOR A VALID CONTRACT

 Mutual Assent:
 Each party must have a shared understanding regarding what the subject matter
of the contract is.

 Offer and Acceptance:

 One party must make an offer by clearly communicating their intent to be bound
in a contract. Likewise, the other party must render their acceptance in clear
terms.

 Consideration:
 This where both parties mutually exchange something of value in order to make
the agreement binding. Sometimes contracts can be enforced in a one-sided
promise where only one party renders consideration.

HOW CAN A CONTRACT BE BREACHED?

 The entire formation of the contract begins with negotiations and may undergo
several modifications before a final agreement is reached.

 This means that there are several points in time when the contract may be
breached. A breach of contract means that one or both parties has failed to
perform their duty.

 A breach may either be total or partial, and each will yield different legal
consequences.

CONSTRUCTION CONTRACT

 A construction contract provides a legal binding agreement, for both the owner
and the builder, that the executed job will receive the specific amount of
compensation or how the compensation will be distributed.

 Construction contract types are usually defined by the way, the disbursement is
going to be made and details other specific terms, like duration, quality,
specifications, and several other items.
4 COMMON TYPES OF CONSTRUCTION CONTRACTS

 Lump Sum Or Fixed Price Contract

 Total fixed price for all construction related activities.
 Can include incentives benefits for early termination, or can also have penalties,
called liquidation damages, for a late termination

 Cost Plus Contract

 Involve payment of the actual costs. purchases or other expenses generated
directly from the construction activity.
 Must contain information about covering contractor's overhead and profit.

 Time and Materials Contracts

 Preferred if the projet scope is not clear or defined.
 Must establish hourly or daily rate.
 Include additional expenses that could arise in process

 Unit Pricing Contracts

 Commonly used by builders and in federal agencies.
 Unit prices can also be set during bidding process as the owner requests specific
quantities and pricing for a per-determined amount of unitized items.

SPECIFICATIONS

 Definition of a Specification
 A specification often refers to a set of documented requirements to be satisfied
by a material, design, product, or service.
 A specification is often a type of technical standard.

 Specification for Construction

 Construction specifications, also known, as specs, detail the work and
workmanship needed to complete a construction project.

 Dictionary of Architecture & Construction - specification is, “a written document

describing in detail the scope of work, materials to be used, methods of
installation, and quality of workmanship for a parcel of work to be placed under
contract; usually utilized in conjunction with working (contract) drawings in
building construction"

 Main Types of Construction Specifications

 Prescriptive:
 Provides details on the types of materials and installations needed to
complete a project. Additionally, prescriptive specifications also describe
how to measure installations to ensure that they were up to project
quality and standards.

 Performance:
 Describes the operational requirements. Fundamentally, the
performance specifications should describe to the contractor what is
needed for the final product and how it should essentially function once
completed.
  Proprietary:
 Although not as common as prescriptive and performance, proprietary
specifications are used if only one specific product can be used for an
installation.

CONSTRUCTION PROJECT ORGANIZATION

 Organization
 An organization is a group or groups of individuals who share the purpose of
accomplishing a goal. Each organization is defined by the culture and style,
called norms, that they create.

 Cultural norms are shaped by the experiences of the organization and will
develop over time. The experiences can be items such as risk management,
diversity, values, leadership, or accountability

 Construction Project Organization

 A construction project organizational structure has to help ensure on-time project
completion within the set budget.

 You have to decide how best to assign responsibility for scheduling and cost
control while making sure the project's working-level teams carry out the work in
the right sequence and according to the specifications.

 An effective project organization leaves project team members free to decide on

the technical aspects of their work while ensuring that they act within the
project's time and cost constraints.

 Framework
 Organization of a project differs from that of an operating company because a
project has a limited duration. Employees making up the project team come from
a company's general work force and return there after the project is finished.

 Those involved in the project focus on getting the work done according to the
project plan, satisfying specific cost, scheduling and quality objectives

 Functional
 Project managers need to control the project's scope and costs, as well as
handling project scheduling.

 The project manager assigns responsibility for these functions to key people,
and the organizational structure gives them direct access to the working level
teams carrying out the work.

 Technical
 Construction projects include a technical component that requires technical
training, expertise and professional qualifications.

 The project manager organizes the working-level teams to carry out specific
tasks, such as drywall or plumbing, in the right sequence.

 The functional units track progress, schedule the work and issue reports back to
 the project manager.

 Quality
 Quality control is a specialized function that usually has an independent structure
parallel to the project organization.

 Two requirements for quality control are that the quality manager reports directly
to project management and that the personnel from the quality control
department have direct access to everyone carrying out work on the project.
 POWERPOINT 3

PROJECT ORGANIZATION

 Introduction
 In India, the construction industry comprises nearly 200 firms in the corporate
sector and about 12,000 class ‘A’ contractors registered with different
government construction bodies.
 Besides large construction companies employing millions of workers, there are
equally large numbers of self-employed individuals engaged in actual
construction work and allied activities like whitewashing, painting, plumbing and
fixing mechanical and electrical fixtures.
 The corporate companies have well organized organization structure, but most
of the works of small companies are done in an unorganized manner.
 The construction company was accorded Industrial concern status under the
Industrial Development Bank of India Act very recently.

 Construction company
 A construction company can be defined as a group of people sharing specialized
knowledge to design, estimate, bid, purchase and obtain resources to complete
a construction project.

 Common functions of construction company

 General administration
 Managing contracts and personnel
 Estimating
 Design
 Engineering
 Purchasing
 Accounting
 Management of field construction

 The broad aim of an organization is two fold

 To divide responsibility according to the technical knowledge.
 To divide responsibility by executing ability. As per Kenzer (2004),

 Authority
 is the power granted to individuals by their positions, so that they can
make final decisions for others to follow.
 Responsibility
 is the obligation incurred by individuals in their rules in the organization
in order to effectively perform assignment.
 Accountability
 is the state of being totally answerable for the satisfactory completion of
a specific assignment.
ORGANIZATION
 Organization is defined as the arrangement of the persons in any business so that they
act as one body and work together towards a common goal.

 It is a process of defining and fixing the responsibilities of those persons who are
associated with the organization and co- coordinating the relationship of one with another.

 Organization is thus a human association for the attainment of common objectives which
may be social, political or economic.

 The achievement of the organization would depend upon the efficient setup of organization.

 Inefficient economic organization of an enterprise would lead to losses and ultimately to

winding up of the enterprise.

 The efficient functioning of the organization is possible when:

 Competent and right types of persons are selected and placed in the right place.
 Every member of the organization knows the goal of organization.
 Every member of the organization knows his duties and responsibilities in
achieving the common goal.
 Every member is delegated authority and power adequate enough to enable him
to take the decisions for discharge of his responsibilities.
 There is proper co-ordination among different members, departments.

 Characteristics of Good Organization

 It must have an organizational goal.

 It must have setup of persons incharge of different branches of organization.
 It must specify the functions and activities of every individual of the organization.
 Duties, powers and responsibilities of each individual should be clearly defined.
 There should be higher up authority to direct and co-ordinate activities of
different individuals, branches of the organization.
 It should have proper structure.
 It should include all the activities and no activity should be repeated.
 It should be flexible with the changing situation.
 There should be resources for the existence and survival of the organization.
 It should have place of work and well defined jurisdiction.
 it should give satisfaction to the employees and should boost their moral.

 Functions of Organization
 Long term planning
 To prepare structure of organization.
 To maintain good relations with the government.
 To prepare wage policy.
 Co-ordination of various departments and their control.
 To monitor various activities and progress.
 To fulfill management aims and development of management.
 To establish good relations between workers and the management.
 Principles of Organization

 Unity of command
 Span of management
 Delegation of authority
 Unity of job assignment
 Division of work
 Job definition
 Contact
 Ultimate authority and responsibility
 Continuity of activity
 Flexibility and stability
 Motivation and professional growth

 Unity of command
 Under this principle, each employee should know clearly to whom he is
answerable and who are answerable to him.
 The principle under which one person has to report only to one boss is
known as the unity of command.

 Span of management
 The span of the management is the small number of workers which a
manager has to supervise.
 Thus for a sound organization the span of the management should be
small so that a manager can supervise their work efficiently.
 The number of sub-ordinates that a supervisor can control depends
upon
 Capacity of individual to work
 Nature of work
 Place of work
 Definite and clear responsibilities
 The ratio between supervisor and subordinates may very from 1:4 to 1:5
at higher level management and 1:15 to 1:20 at lower level of
management.

 Delegation of authority
 With the allocation of duties and responsibilities, necessary authority
must also be given to the individual so as to enable him to perform his
duties.
 In order to have effective control it is necessary to fix responsibilities of
all concerned by the higher management.
 Whenever a person is assigned any task, he should be given sufficient
powers to achieve his task, thus the authority and responsibility both go
together.

 Unity of job assignment

 Functions of similar jobs in different departments should be closely
related within the structure of organization.
 Functions assigned to each position should be adjustable and they
should require reasonably equal demands of skill.
 While assigning the job, following points should be kept in mind.
  Assignments for an individual should be few in number and
similar.
 Assignments of same nature in different departments must
be of same skill so that the workers may be inter-changed.
 An individual should be assigned only one job at a time.

 Division of work
 The work should be divided into small parts and suitable job should be
assigned to suitable person.

 Separation of work
 The job of inspection and control should be assigned to those persons
who are not associated with that work.
 There should be an arrangement in the organization to identify mistakes
and to suggest remedial measures.

 Job definition
 The work amongst the workers should be allotted very carefully on the
basis of their skill experience and ability to do that work.
 For work purpose department must have following information for
identifying the job.
 Name of the job
 Code number of the job
 Grade of the job
 Particular shifts
 Jobs relationships
 Name of department and the section in which the job is to be performed

 Contact
 The organization should allow complete co- ordination of each branch of
work.
 The performance of each worker of every unit should be economically
related to all units keeping in view the policies of the organization.

 Ultimate authority and responsibility

 For all the acts of subordinates, higher officials are responsible.
 When a superintendent assign some job to his subordinate and
subordinate commit some mistake, for that mistake the superintendent
is held responsible.

 Continuity of activity
 The structure of organization should be dynamic.
 It should not only confine the activities in achieving their goals but also
continue such activities in future.
 It should establish a link between the past and the future.

 Flexibility and Stability

 The organization should be flexible to allow some changes and
expansions etc. where ever necessary and it should be capable of
adjusting its urgent demands.
 A good organization should be capable to control wastage of labour,
money and material.
  Motivation and professional growth
 The structure of organization should be such that their employees gets
sufficient opportunities for their growth.
 It should encourage the employees for their best performance.
 The employees should get satisfaction in their job.

STRUCTURE OF CONSTRUCTION ORGANIZATION

 The organizational structure indicates the arrangement of different departments and the
division of labour.
 It refers to the organizational and administrative patterns.
 It is about how to use one of the basic resources, people and how to facilitate overcoming
of the communication barriers at organizational interfaces.
 The organization for a construction firm has to be developed taking into account the
general principles of organization and the special characteristic of the construction
industry.
 It is difficult to lay down specific rules for organizing the structure of a construction
company.
 Any organizational structure proposed for a construction firm should take into
consideration the nature of activities, scope and type of project work and the areas of
operations of the company.
 The type of organization suitable for a small construction firm is a simple line organization
/ line and staff organization.
 The engineer in charge at the site exercises full authority and is responsible for the
execution and progress of work.
 In very small works such as construction of a private residential house, the contractor has
to perform himself the functions of the engineer.
 In the case of medium to large sized construction companies a line and staff type of
organization is preferred.

 Types of Structure of Construction Organization

 Depending upon the manner in which the authority and responsibilities in an
organization are distributed, the structure of construction organization at
corporate level can be divided into two categories-
 Line or Military organization
 Line and Staff organization

 Line or Military organization

 This is the earliest, simplest and most important form of
organisation.
 In this type of organization, the authority descends from the top of
the structure to its bottom level step by step through a downward
delegation of authority.
 All major decisions are taken by the execution at the top and
passed on to their immediate subordinates for necessary action at
their level.
 This type of organization is based upon earlier military formation.
 As in army, commander in chief has full control over the entire army
of the country through his major generals and area commanders
and so on.
  Exactly the same pattern is followed in line organization.

 Advantages of line organization

 It is simple to work and easy to understand by the
employees.
 It permits quick decisions.
 It is most effective and economical.
 It provides strong discipline.
 Responsibility is fixed and every body knows to whom he is
responsible and who are responsible to him.
 The system has flexibility and persons may be moved from
one position to another without difficulty.
 It provides effective co-ordination within each department.

 Disadvantages of line organization

 As the top executive has to perform many duties, the
progress of work may suffer as he is left little time to look
after the progress of the work.
 The organization rigid and inflexible.
 Top executive and key men are overloaded.
 Generally there is inadequacy of communication from
lower to upper levels.
 It is not possible to take advise from experts. Hence all
decisions have to be taken by the person incharge himself.
 The loss of one or two capable persons may affect the
whole organization badly.
 Good and trust worthy persons are overloaded.
 Instructions from top to bottom and feed back in the
reverse direction, tends to be rather slow, thereby affecting
the progress of the work.
 The system has no provision of rewarding good workers.

 Line and staff organization

 The line organization is not suitable for large and complex enterprises
undertaking large construction works and heavy projects, where key
men need advise from expert specialists in different fields.
 These specialists who constitute the staff in the organization are experts
with long experience.
 They do not have the authority to command any body.
 Their role is mainly advisory and are not directly involved in carrying out
the major objectives of the organization.
 The combination of the line organization with this expert staff constitute
the line and staff organization.
 The line executes the work the ‘staff’ carries on the research planning ,
scheduling and recording of performance.

 Advantages of Line and staff organization

 Advise of expert specialists is available.
 The project can be executed with better quality product.
 It gives increased economy and efficiency though extra
 expenditure has to be incurred on staff experts.
 It provides more job opportunities.
 Specialized work is done by staff personnel and line
personnel can devote their time to achieve the objectives
of the enterprise.
 Discipline problems are solved by line authority.

 Disadvantages of Line and staff organization

 The staff may be ineffective for lack of authority to carryout
its functions.
 Possibilities of conflict between line persons and staff are
there as the responsibilities and authority are not well
defined.
 The expert advise available is conveyed to workers
through the line authority which is a quite lengthy route.
 The overhead cost of the product will increase due to high
salaries of staff personnel.
 The slackness of any section will affect the whole system.

ORGANIZATION FOR PROJECT MANAGEMENT

 In a construction company the organization at project level and at corporate level is not
the same.
 The primary functional of a construction company is to execute construction projects.
 The function is performed by companies following different organizational structures at
project level.

 Project management structure

 Functional organizational (classical)
 Matrix organization
 Pure project or product organization

 Functional organizational (classical)

 The basis of a functional organization is specialization.
 In such an organization work is carried out n a functional basis and each
function is carried out by a specialist.
 According to F.W. Taylor, the ideal situation in such an organization would
be when each person performs a specified function only.
 This removes the staff personnel from his assisting capacity and gives him
authority and responsibility for supervision and administration.
 The idea behind this type of organization is to divide the work in such a
manner that each person has to perform a minimum number of functions
and is fully responsible for those aspects of work.
 All similar and related work is grouped together under one person.
 The functional organization can be useful when the owner himself acts as
the manager of the project with a minimum staff depending upon others for
functional expertise.
 For example, the work of data collection and preparation of maps for
various irrigation schemes of a state is done by Irrigation Investigation Circle.
 Design of irrigation schemes and large buildings is done by Central Design
Organization.
  Name of Functional Organization and their Functions

 Irrigation Investigation circle

 To collect necessary information data for irrigation schemes and
prepare plans and estimates.

 Central Design Organization

 To design various components of an irrigation scheme.

 Gujarat Engineering Research Institute GERI, Vadodara

 Testing of construction materials
 Road research
 Model testing of irrigation schemes

 Superintending Engineer – Quality control

 To control quality of irrigation schemes along with GERI

 Chief Engineer
Co-ordination of various functional organizations Financial Advisor To control
financial matter.

 Accountant General
 To maintain financial account and audits.

 Secretary
 Principal controller of the line organization

 Advantages of Functional organizational

 In this type of organization expert advise is available through specialists.
 The entire work is divided on the basis of functional specialization.
 Quality of work is enhanced due to specialization.
 Manual work is separated from mental work.
 The efficiency of the work will increase as each person has to perform
limited number of functions.

 Disadvantages of Functional organizational

 There is no clear cut line of authority.
 Co-ordination is difficult.
 It is difficult to fix responsibility.
 Overhead costs are increased due to a number of specialists.
 Each sub-ordinate is accountable to a number of bosses. It may weakens
the discipline in the organization.
 The system is too complicated. It is unsuitable for lower level departments of
the organization.
 Matrix organizational
 In this type of organization strong and good points of line and staff organization are
retained.
 It divides the power into functional and project responsibilities.
 In this type of organization the conflicts between the line personnel and staff
personnel are minimized, by opening up lines of communication at all levels through
the assignment of dual reporting responsibility to the subordinate managers.
 Functional responsibilities such as design, quality control have been entrusted to the
functional personnel / staff and project responsibilities such as cost, schedules etc.
have been given to the chief project manager.

 Advantages of Matrix organizational

 This type of organization removes some of the weakness of line and staff
organization.
 This pattern is best suited in case the project authority and functional
authority is well defined and clearly divided.
 The structure facilitates quick response to changes, conflicts and project
needs.
 There is flexibility of establishing independent policies and procedure for
each project, provided that they do not contradict company policies and
procedures.
 There is possibility of achieving better balance between time, cost and
performance.

 Disadvantages of Matrix organizational

 Overall management and administrative cost will be higher.
 It is difficult to precisely define the accountability of the functional and project
managers.
 Initially more effort and time is needed to define policies, procedure,
responsibilities and authority relationships.
 The balance of power between functional and project authority must be
carefully monitored. Functional managers may be biased according to their
own set of priorities.

 Points considered for successful implementation of the matrix organization

 Allowing time to define responsibilities and authorities.
 Committing senior management time to explain the system.
 Promoting open communication with no secrets.
 Developing people who want the matrix to work.
 Making decisions based on what is good for the client and the firm.
 Eliminating politics and resolving conflicts at high levels.
 Committing energy to evaluate and compensate on a common basis.
 Using consensus management.
 Hiring top quality people having integrity and willingness to place the
interests of the client, the firm and other people before their own interests.
Pure project / Product Organization

 Pure project can be formed to support a steady flow of ongoing projects.

 In this type of organization employees are grouped by project.
 The majority of the organizations resources is directed towards successful completion of
projects. The project managers enjoy a great deal of independence and authority.
 In such structures, the different organizational units called departments either report
directly to the project manager or provide supporting roles to the projects

 Advantages of Pure project

 The project manager has complete control over the project.
 The lines of communication are strong and open.
 The system is highly flexible and capable of rapid reaction times.
 The project is the only real concern of the project employees. It brings
together all the administrative, technical and support personnel needed to
bring a project from the early stages of development to operational use.
 The appraisal of employees is based upon the performance of the project.

 Disadvantages of Pure project

 There could be a duplication of efforts.
 The administrative duties of a project manager may be demanding and the
job could be quite stressful.
 It is difficult to find a project manager having both general management
expertise and diverse functional expertise.
 Due to the fear of impediments in career growth, some employees may not
prefer to leave their departments

Management Levels

 Management level can be defined as a position in management that is differentiable in

terms of power, authority, responsibility and accountability over resources required to
achieve defined objectives.
 Five Management Levels
 Director level
 President level
 Construction management level
 Project management level
 Functional management level

 Director level
 The different functions at this level are
 Setting plans
 Formulating objectives
 Deciding among different courses of action
 Company’s financial status
 Competitive information
 Environmental information
  President level
 The primary functions at this level are acquiring business and
formulating the company’s immediate objective, in line with the board’s
plans and strategies.
 This level requires a much more detailed information regarding
competition, environment and financial status.
 It also requires progress reports that summarize for each project its
status, current and future cost and schedule performance and problems
with management actions underway to resolve them.

 Construction Management level

 The main functions at this level are obtaining and monitoring work for
the company at the district / divisional level.
 This level requires summary formats of the three basic types of
information. i.e. environmental, competitive and internal.
 It also requires summary format of information on general progress,
financial status, purchase status and engineering status on each project
under their jurisdiction.

 Project Management level

 The main functions of this level are
 Managing the day to day operations of all aspects of a project.
 Watching closely the development of the project as a group.
 This level also requires summary formats of the three basic types of
information. i.e. environmental, competitive and internal.
 It also requires field costs, detail construction schedules, list of critical
and non-critical items in the network, detailed predication of future
accomplishments, current working estimates, cash flow summaries, etc.

 Project Manager
 Present day construction projects are becoming more complex and
costly as compared to previous times.
 This complex nature places a heavy demand on the management skill
of those involved in every phase of the management of construction
work.
 The terms ‘Project Manager’ are used quite interchangeably.
 The project manager is a person formally appointed to manage a project
with scientific accountability for achieving defined project objectives with
allocated resources
 A project manager has access to and a formally defined relationship
with the project leader to whom the specific project has been assigned.

 Responsibilities of construction manager

 Planning
 Formulating of a number of alternative realistic work plans, it also lays
down how a project will be carried out, what materials will be used, what
men and staff will be employed, what equipments will be utilized etc.

 Directing
 Training subordinates to carry out assigned tasks, supervising their
work, and guiding their efforts.

 Organising
 Division of total construction work into manageable departments and
systematically arranging various activities by delegating specific tasks to
 individuals.

 Controlling
 Measurement of actual performance in terms of progress, quality and cost.
Comparison of actual and planned performance. Analysis of short fall in
performance and remedial measures.

 Co-ordination
 To co-ordinate the work of various department and sections. Regular
meeting with sections heads.

 In short, Responsibilities of construction manager

 Developing bid proposal
 Establishing project organization and staffing
 Provide overall leadership to the project team
 Profit generation and new business development
 Schedules and budgets
 Assisting in determining technical and man power requirements.
 Co-coordinating and integrating of sub system tasks

Qualities of a Project Manager

 The construction manager is a person who by optimum use of available resources like
money, manpower, materials and machinery, by motivating the persons associated with
the project, by co-ordinating various project agencies, fulfill the project objectives in
minimum time with minimum cost and with good quality
 Good character
 Integrity – to consider all the persons related to the project as a ‘construction team’.
 Devotion to duty
 Hard working
 Leadership
 Knowledge of construction
 Open Mindness – An approach where one is always open to new ideas, practices and
methods.
 Common sense – strong ability to spot sensible, effective, straight forward, least risky
solutions. Attitude – open, positive and ‘can do’ attitude which encourages
communications, motivations and fosters co-operation.
 Fairness – This refers to a fair and open attitude which respects all human values.
 Absence of parochalism

Traits of a Project Manager

 Technical skills
 Specialized knowledge in the use of tools and techniques
 Project knowledge
 Understanding methods
 Procedures and process
 Understanding the technology required
 Skill in the use of computer

 Conceptual skills
 Planning
 Organizing
  Strong goal orientation
 Ability to see the project as a whole
 Ability to visualize the relationship of the individual project to the industry
and the community
 Strong problem orientation

 Human skills
 Mobilization
 Communication
 Coping with situations
 Delegation of authority
 Political sensitivity
 High self esteem
 Enthusiasm
 Capability to motivate and integrate his team

 Adaptability
 This refers to propensity to be flexible where necessary and avoid rigid
patterns of thinking and to adapt to the requirement of the project, the needs
of the sponsors, its environment and people working on it. He should be
adapt to change.

 Inventiveness
 This refers to an ability to discover innovations strategies and solutions
either from within one self or through interaction with other members of the
project team and to identify ways of working with disparate resources to
achieve the project objectives.

 A project co-ordinator is a person who is responsible for co-ordination among

personnel of different departments and various stakeholders of a project.
 A typical large multidisciplinary project needs co- ordination among the personnel of
different departments such as civil, mechanical, electrical, plant and machinery,
accounts, materials, design, quality control, safety, HRD etc.
 Besides a number of designers, subcontractors, consultants and specialists from
different disciplines are also involved in these projects, making co-ordination even
more complex.
 Under these circumstances the role of a project co- ordinator is considered vital.
 In terms of hierarchy, a project co-ordinator is placed between project administrator
and technical assistants.

JHA (2004) IDENTIFIED 24 TRAITS OF A PROJECT CO- ORDINATOR IN TERMS OF

THREE CATEGORIES AS UNDER-

 Team building skills

 Concern for conciliation

 the act of placing and overcoming animosity.

 Under standing of human psychology

 Analytical skills
 ability to look logically at a technical situation.
  Motivating skills
 ability to influence other to contribute to attaining firm’s goals.

 Team playing spirit

 ability to integrate people from many disciplines into an effective
team.

 Under standing of human psychology

 Timeless
 ability to manage multiple tasks within given time constraints.

 Facilitating skills
 Skill to make the task easy

 Inter personal skills

 Skill to mix in, being friendly.

 Communication skill
 ability to interact effectively with other at all levels in the
organization.

 Technical knowledge of the subject

 Resource utilization skills

 Contract implementation skills

 Reliance on systematic approach

 skill to do things methodically.

 Under standing of contract clauses

 Concern for safety, health and welfare of labour and other employee
Monitoring
 skills ability to observe something

 Maintaining records
 skill of keeping diary and keeping notes.

 Follow up quality
 Skill for the continuance

 Forecasting skills
 skill of predicting about the future

 Planning skills

 Project organization skills

 Relationship with client, consultant and contractor

  Co-ordination for achieving quality

 Liaison skills
 ability to channelize communication between groups.

 Knowledge of project finance

ETHICAL CONDUCT FOR ENGINEERS

 An engineer faces a number of situation in his day-to-day life, in which he has to
choose between the well being of the project.
 He is working on and well being of the society at large.
 An action taken by him may be beneficial for the project but it may endanger the
ecosystem.
 For example the alignment of a highway may be passing through a dense forest and
construction may harm the trees, birds, animals etc.
 In such cases, he will be in a dilemma regarding the well being of the project versus
the well being of the ecosystem. Should the engineer emphasis on project at the cost
of environment?
 The decision taken by an engineer has far reaching consequences, and therefore, he
should be even handed in taking different points of view into consideration.
 Many temptations come in the way of discharging duties in the course of one’s
career.
 The engineer should be able to resist these temptations by controlling his desires in
view of the large public interest.
 Sometimes an engineers may be advised to expedite the construction works even at
the cost of compromising on sound engineering practices.
 For example let us take the case of transit mixer full of concrete reaching the
concrete location after initial setting time of the concrete is over.
 Should the concrete be poured or should it be thrown out? In such situations should
you try to use them in the project in a clandestine manner, or should you waste the
money of your employer?
 An engineer should not only be having expertise in his professional field, but also be
familiar with ethical rules and codes of conduct of his profession.
 The commonly reached ethical rules extracted from American society of civil
engineers (ASCE), Japan Society of Civil Engineers (JSCE), German Engineering
Association are given below.
 The engineer should contribute to the development of the nation and the
promotion of human welfare through their professional knowledge.
 He should honor human life without discriminating against cast, creed,
social position and religion.
 He should hold paramount the safety, health and welfare of the public in
performance of their professional duties.
 The engineer should continue their professional development in
research field and practical utilization throughout their careers.
 He should aim at developments of technology and should strive to
improve his techniques and put the results into wide spread practice.
 He should evaluate the works of his/her colleagues in the same way as
he wants to be evaluated himself.
 The engineer should support the professional and technical societies of
his/her disciplines.
 The engineer need to develop and promote a sustainability ethics.
 He should act in a manner to uphold and enhance the honor, integrity
and dignity of the engineering profession above the economic
 advantages.
 He should not make excessive design or excessive cutting at the cost of
safety.
 The engineer should be honest and impartial and should not behave
suspiciously. He should avoid associating himself with dubious work.

FACTORS FOR SUCCESS OF A CONSTRUCTION ORGANIZATION

 The construction industry is characterized as having low entry barriers. Hence, every
year more and more construction industries are entering in the construction business.
 The success of a construction project does not mean the success of the construction
organization. Garg (2007) conducted a study to identity and evaluate the parameters
affecting the success of a construction organization.
 A total of 38 success parameters were listed out through literature, survey and
interviews with selected professionals from construction industry and a set of
questions was formulated.
 As six point scale was used in the questionnaires, intended to measure the level of
importance of organizational success variables.
 Insignificant / not at all required
 Marginal
 Significant
 Desirable
 Essential
 Vital / Most critical variable

 From the six points scale, Relative Importance Index (RII) was calculated for each of
the success variables in order to know their rank based on their critically.
CAUSES OF PROJECT FAILURE

 The followings are the causes of failure of a project

 Improper planning of a project

 Defect in the survey carried out before implementation of a project
 Excessive increase in the project cost
 Sudden increase in materials and labour rates in the market
 Defective structural design
 Poor quality of construction at site
 Use of inferior quality of construction materials
 Lack of technical skill of supervisors / engineers
 Inexperienced contractor
 Insufficient finance with the contractor
 Insufficient plants, equipments, and manpower
 Poor relations among owner, engineer and labours
 Lack of co-ordination between various departments like administrative,
engineering, account, materials store etc.
 Inadequate water, electricity and approach road
 Change in government policies / laws
 Lack of planning for maintenance after completion of the project
 POWERPOINT 4

 Gantt Charts
 A visual representation that provides an instant overview of the status of a
project.
 Outlines all activities involved in a project against a timescale.
 Simply lists what needs to be done and when.
 Great ways to manage project schedule simply and easily.

 Used by any industry that requires project management:

 Construction.
 Telecommunications.
 Information technology.
 Management consulting.
 Change management
 Problem solving and continuous improvement.

 When They are Used?

 Identifying and planning activities and their expected duration.
 Monitoring and tracking the progress.
 Identifying issues that can delay the project.
 Serving as communication tools by:
 Showing the team the progress they are making.
 Keeping management updated on project progress.
 A Gantt chart can also be used to plan your personal projects and track your
own targets.

 Benefits
 A simple way to schedule your activities.
 Allow to see how your project is performing at a glance.
 Allow to focus efforts and reacting quickly to unexpected situations.
 Allow you to communicate progress and issues as they arise.
 Help determining the needed resources.

 A Gantt chart is a type of bar chart that shows the start and end dates of the your
activities. You can see in a Gantt chart:
 The activities (What?).
 The duration of activities (When?).
 The responsible person or team for completing each of them (Who?).
 The order in which they will be accomplished.

 Other information can also be shown:

 The needed resources.
 The cost estimates.
 The key project milestones.
 The dependencies between activities
 The critical paths
 The progress and status of activities.
 The progress and status of the project as a whole

 A detailed Gantt chart can answer the following questions:

 What are the activities that must be accomplished?
  In what order?
 How long should they take?
 Which activities are on time and which are no?
 Who should do them?
 What are the needed resources?
 What are the key stages and milestones?
 What are the relationships between the various activities (sequential or
simultaneous)?
 What is the percentage of completion?

 A Gantt chart is created by drawing horizontal bars to represent time duration of

activities. By looking at the chart, you can see:
 The sequence of the activities.
 How long each activity takes.
 Compare the planned and actual duration of the activities.

 GANTT CHART
 Can be drawn by hand.
 Can be implemented using spreadsheet applications.
 If you need more elaborated features, you might want to go for a project
management software.

 Work Breakdown Structure:

 A hierarchical deliverable-oriented breakdown of the work.
 Helps dividing the overall project into smaller more manageable categories of
work.
 Represents the entire scope of work for any given project.
 Precedes detailed activity planning.
 Each descending level represents more details of work.
 The work activities are contained within the lowest level:
 In the form of work products or deliverable
 Often called work packages.
 By describing deliverable and not activities,the project team has more
freedom for planning work activities.
 Reduces the project scope and complexity.
 Provides a structured vision of what is to be delivered.
 Provides the basis for schedule development and control
 Provides a framework for resource planning and cost estimating.

 Approach:
 Identify the major categories and all the required work to be completed (use
WBS).
 Record all activities by sequence of completion.
 Estimates the start date and the time required for each activity.
 Draw horizontal bars to represent the activities and their duration.
 Assign responsibilities.
 Identify milestones and resources.
 As the project progresses, update the chart to reflect changes as soon as they
occur.

 Further Information:
 Some activities will need to be completed before you can start the next one.
 For example, if you are conducting a survey, you need to finish the data
collection before you can start the data analysis.
 Other activities can't end until preceding ones have ended.
 In general, there are four main relationships between sequential activities: (SS,
SF, FS & FF)
 A good practice is when modifying the chart is to write the appropriate notation
that explains the reason for the change.
 It is usually more acceptable to complete a project ahead of schedule than have
to continually move out the completion date.
 It can be helpful if there is a safety factor to allow for slippages
 Size the activities appropriate to your intent.
 If you are managing a time-critical process, you may break down the activities
into more defined steps.
 However, if you want to maintain general oversight of an entire project, you
might have fewer activities.
 Be careful when allocating scarce resources, such as subject specialists or
expensive equipment.