CONSTRUCTION AND

PROJECT
MANAGEMENT
 HISTORY OF MANAGEMENT THEORY
AND PRACTICE
CLASSICAL ERA CALCULATING ERA RECONSIDERING
ERA

ORGANIZING PLANNING RECONSIDERING

1910 1930 1950 1970 1990

PRESENT
LEADING CONTROLLING

HUMAN ERA VALUES & BELIEF

ERA
Scientific Management Classical Era
- Defining and 1910 - 1930 – ORGANIZING

maximizing the
MAJOR CONTRIBUTORS
productivity of individual
jobs. Frederick Taylor
– Father of Scientific
Management
“In the past, man has been
first. In the future, the
Bureaucracy system must be first.”
- Maximize Max Weber
productivity of the –the macro approach;
overall focused on employee’s
competencies
organization.
HUMAN ERA 1930 - 1950 – LEADING

Mary Parker Follett Lillian Gilbreth Chester Bernard

mother of the leading human resource importance of

era; organizations as management; establish leadership and the
“communities” child labor laws and informal organization;
rules to protect employees have a
workers from unsafe zone of indifference
working conditions
Systems analysis
CALCULATING
ERA
1950 – 1970 PLANNING
• Management Science
• Operations research
• Operations management
• Break even analysis
• Forecasting
• Inventory modelling
• Linear programming
• Simulations
VALUES AND BELIEFS ERA
Institutionalization – when members of an
organization find themselves being controlled by
norms that often are not rational, by peer pressure,
by simple inertia.

1970 – 1990 CONTROLLING

RECONSIDERING ERA
Multi-stream management 1990 - Present

Ecological Social Physical

sustainability Justice well-being

Aesthetic Spiritual
costs Interest
 CONSTRUCTION
MANAGEMENT PROJECT ORGANIZATION
Identifies the criteria MANAGEMENT “social structures
of “organized activity, created by individuals
objectives, The planning, co- to support the
relationships among ordination and collaborative pursuit
resources, working control of a project of specified goals”.
through others and from conception to (Scott and Davis, 2007)
decisions”. completion (including
(Cleland and King, commissioning) on
1983) behalf of a client,
requiring the
identification of the
clients objectives in
terms of utility,
function, quality, time
and cost.
“the product” requires the
integration of many
specialist skills for the
development of a
THE PROJECT TEAM
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
1. Materials
2.Machinery
3.Money
4.Manpower
5.Methods RESOURCES
 Hard systems approach
Systems thinking
• quantitative technique in project
planning, scheduling and
control.
• use of PERT or CPM
• earned-value measurement
• variance analysis Soft systems approach
• cost-estimating techniques • concerned with human behavior in
• risk analysis, organizations
• Monte Carlo simulation • basic intellect
• sensitivity analysis • ability to see more than one point
• cost modeling of view
• think logically
(Yeo 1993)
• to advocate
• to communicate

(Daniel 1990)
 CLIENTS
CLASSIFICATION OF CLIENTS

1.The Individual client

2.The Corporate Client

3.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
• set clear objectives
CLIENT
• subject objectives initially set to careful
trade-off analysis
• consider objectives carefully when
choosing a procurement method
• c om m u n ic ate o b je c tiv es c l e arly t o other
in v ol ve d p a rti es a n dav o id co n f li ctin g
guidance to different parties
• ensure that reaction to unexpected events
involves proper revision and
• consideration of client objectives
provide clear direction and timely
d e cisi ons
• m u st a s sistthe project management
team to drive to a successful conclusion.
 Skills of a PM
(internal factors of a person)
1. ability to determine the desire of the client.
2. analytical skills to turn data into information and breakdown
the project into comprehensible component parts.
3. technical skills- must at least be capable of comprehending
the work and speak the language of the people involved.
4.team skills- ability to motivate and enthuse a team
5. ability to delegate effectively
6. ability to manage your own time
7. balancing of stakeholders perceptions of project progress (or
being able to sell ideas)
8. negotiating skills
9. facilitating problem-solving
10.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 Resource Management
Human Resources Management

• The HRM process consists of

planning, attracting, developing,
and retaining the human resources
(employees) of an organization.

21
 Human Resources Management

HR Planning
strategic HR planning; job
design

Retaining employees
compensation; maintenance; labor Attracting employees
relations; separation recruiting; selecting

Developing employees
training & development;
performance appraisal

22
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.
 Psychology of Project
Management

Advances of Project Management by Darren Dalcher

“Projects are concerned with bringing about
organizational change but often failed due to failure to
take sufficient account of psychological processes
involved in managing change and people”.
Selecting the Best Project Team
• High level of communication and influencing skills;

• Be able to build sustainable relationships;

• Be able to bond not only with the rest of the project team but also
with people outside the team;
Project team members will need to have a certain
level of emotional intelligence (EQ).
• Type of social intelligence – ability to monitor one’s own feelings and
emotions and those of the people around us.

• Be able to operate with minimum supervision.

• Need to be personally resilient and flexible.

• This will make the team more fluid and supportive of each other.
 HOWDO YOU SELECT PEOPLE WITH THESE
SKILLS?

Psychometric tests – to select people with key skills and attitudes to

deliver successful projects.
 Strong leadership is crucial to the success of
projects.

• The project manager's ability to motivate and inspire the project team
is a significant factor in project success.

• Know the different leadership styles

• authentic leadership,
• emotional intelligent leadership and
• transformational leadership

to match the maturity/ requirements of individual team members.

Engaging Stakeholders
• Sense of feeling valued and involved;

• Being involved in decision making;

• Having the freedom to voice ideas;

• Knowing that you will be listened;

• Feeling enabled to perform well.

People Side of Communication
• 65% of the information that people pay attention to is non verbal.

• Knowledge of communication as human behavior with greater

understanding of stakeholders and their performance.

• Different communication mediums.

PROJECT MANAGEMENT’S
THREE ELEMENTS

Tasks

Resources

Time
 PM SUCCESS FACTORS

• On time delivery
• Within budget delivery
• High quality delivery
TECHNIQUES TO ENVIRONMENT
ANALYSIS

1. Market options matrix

2. SWOT analysis
3. PESTEL
4. Key drivers of change
5. Scenario based planning
6. Porter’s five forces model
MARKET MATRIX
1. Market penetration – depends on the maturity of the
market

2. Market development – expands potential market by

opening beyond its traditional territory

3. Diversification – develop strategy to seek alternatives

(related markets or completely new markets)

4. Product or services development – the objective is to

differentiate from competitors

5. Withdrawal – it may be uneconomical for supplier to stay

where there is over supply
 SWOT analysis
• SW – technology, human resource,
expertise, specialized knowledge,
partnership

(strength/weakness – internal factors)

• OT – new market, shift of market to other

services or product

(opportunity/threats – external factors)

PESTEL – 6 INFLUENCES IN THE
ENVIRONMENT
KEY DRIVERS OF CHANGE
• From SWOT and PESTEL; identify the changes that result in
greater sustainability
SCENARIO BASED PLANNING
• A Model of possible future environment for the organization.
• Used to analyze the environment
PORTER’S FIVE FORCES FRAMEWORK
 MANAGEMENT
PRINCIPLES IN CPM
 Project Production Management
Systems
1. TQM (Total Quality
Management)
2. Benchmarking
3. Stakeholder
Management
4. Lean Production
 TQM
Benchmarked

• It demands clear
◆ High standards
• visions
◼ Detailed plan
• Mission
◼ Specifications
• goals
◼ Procedure
• Realistic targets
◼ Instructions
◼ Inspection tests
Benchmarking

• Firm’s business ◆ Leaders in the field

• Management process Benchmarked

Key indicators:
1. Quality of end product or services
2. Productivity
3. Cost level
4. Delivery time
5. Safety
6. Sustainable criteria
 Stakeholder Management
• Any individual affected by the
action of an organization.

• Those who have vested

interests that pose a threat or
benefit impacting the
outcomes and effective
management of construction
work.
 STAKEHOLDER
MANAGEMENT
• identifying of stakeholders PROCESS
• gathering information about stakeholders
• engaging stakeholders
• analyzing the characteristics and influence of
stakeholders
• determining stakeholders’ strengths and weaknesses
• communicating and sharing information with
stakeholders
• evaluating needs and expectations of stakeholders
• prioritizing stakeholders
• predicting stakeholders
• identifying stakeholder strategy
• implementing stakeholder management strategy.
FIVE CLASSIFICATION OF
STAKEHOLDERS
• Advocates – the only group driving the change

• Opponents- high understanding but low agreement to the

project
• Indifferent- medium understanding and medium agreement
• Blockers- shows resistance; low understanding and low agreement
• project
Followers - low understanding but support
and the flow”
the tend to “go with
CLASSES OF STAKEHOLDERS
• Zealots – support the project without question
• Golden triangles – supportive but some criticism
• Waiverers – can easily move between support and criticism

• Passives – little support or criticism

• Moaners – very little support and some criticism
• Opponents – consistently question the project
• Mutineers - high level of criticism and almost no support
• Schismatics – highly critical and highly supportive
 RESPONSE DECISIONS IN CHANGING
STAKEHOLDER PERSPECTIVES FOR EFFECTIVE
GLOBAL PROJECT DELIVERY
• Project manager has different responses
available and can be classified into four
headings:
• Concession
• Compromise
• Defense
• Hold

• Transtheoretical Model of Change (TTM)

5 STAGES OF TRANSTHEORETICAL MODEL
OF CHANGE (TTM)

1. Pre-contemplation: individual has the problem

and has no intention of changing
2. Contemplation : individual recognizes the problem
and is seriously thinking about changing
3. Preparation for action: recognizes the problem
and intends to change the behavior within the next
month
4. Action: individual has enacted consistent behavior
change for less than six months
5. Maintenance: individual maintains new behavior
for six months or more.
 Lean Production
• Emphasis on producing to demand rather
than through batch process;

Using LESS
1. Input
2. Labor

Aim: 3. Machinery

Eliminate ALL defects 4. Space

5. Time in design
3 TYPES OF MANAGEMENT

BY OPINION

BY INTUITION

BY FACT
 Management by Fact
Work Process
1. Requirements – inputs, information, and materials

2. Activities - methods, procedures and techniques

3. Work products – product descriptions and standards

INTRODUCTION TO SIX SIGMA

• Six Sigma is a set of

techniques and tools for
process improvement. It was
developed by Motorola in 1986.

• Sir Bill Smith, “ the Father of six

sigma” introduce this quality
improvement Methodology to
Motorola.
Sir Bill Smith
“ the Father of six sigma”
Six Sigma
Is a powerful method that gives managers
and employees the KNOWLEDGE and
SKILLS to manage by FACT.

To produce higher level of :

• Productivity
• Efficiency
• Quality
Six Sigma
• Fact Based ◆ Quality improvement

• Data-driven ◆ Decisions
◆ Business performance
◆ Problem solving

PERFECTION
◆ Delivery of products and
services
◆ Permanent solutions
Six Sigma
Methods of Application

➢DMAIC- Define, Measure,

Analyze, Improve and
Control

➢DFSS / DMADV – Design for

Six Sigma; Define, Measure,
Analyze, Design and Verify;
➢ Use to design and
develop new products
and processes
1. DMAIC
DMAIC is used for projects aimed at improving an existing business
process.
1. DMAIC
The DMAIC project methodology has Five phases:

1. Define

2. Measure

3. Analyze

4. Improve

5. Control
 DEFINE
Define the system, the voice of the
customer and their requirements, and
the project goals, specifically.

MEASURE

Measure key aspects of the current

process and collect relevant data.
 ANALYZE
Analyze the data to investigate and verify
cause-and effect relationships. Seek out root
cause of the defect under investigation.
IMPROVE
Improve or optimize the current
process based upon data
analysis using techniques such
as design of experiments, poka
yoke or mistake proofing, and
standard work to create a new,
future state process. Set up pilot
runs to establish process
capability.
 CONTROL

Control the future state process to

ensure that any deviations from target
are corrected before they result in
defects. Implement control
systems such as statistical process
control, production boards, visual
workplaces, and continuously monitor
the process.
 2. DMADV

DMADV is used for projects aimed at creating new

product or process designs.
2. DMADV
DMADV project methodology has Five phase:

1. Define

2. Measure

3. Analyze

4. Design

5. Verify
 DEFINE
Define design goals that are
consistent with
customer
demands and
the enterprise
MEASURE strategy.

Measure and identify CTQs (characteristics

that are Critical To Quality), product
capabilities, production process capability,
and risks.
 ANALYZE
Analyze to develop and design
alternatives.

DESIGN
Design an improved alternative, best
suited per analysis in the previous
step
VERIFY
Verify the design, set
up pilot runs,
implement the
production process and
hand it over to the
process owner(s).
 Implementation roles
oExecutive Leadership - CEO and other members of top
management. They are responsible for setting up a vision for Six Sigma
implementation.

oChampions - take responsibility for Six Sigma implementation

across the organization in an integrated manner

oMaster Black Belts, -act as in-house coaches on Six Sigma. With

superior level of competency using statistical method

oBlack Belts - operate under Master Black Belts; with advance 6

sigma background
oGreen Belts - are the employees who take up Six Sigma
implementation along with their other job responsibilities, operating under
the guidance of Black Belts.
 CCPM

CRITICAL CHAIN PROJECT

MANAGEMENT
 CCPM Critical Chain Project
Management
◆ was developed by Dr Eliyahu Goldratt in 1997.
◆ Is an outgrowth of the Theory of Constraints

◆ It was developed in response to many projects being

dogged by poor performance manifested in longer
than expected durations, frequently missed
deadlines, increased costs in excess of budget, and
substantially less deliverables than originally
promised.
 Problems Faced by CCPM

◆ Task Padding
◆ Deadline Scheduling
◆ Backward-looking metrics
◆ Overlapping project starts
◆ Multitasking
◆ Critical Path
Problems with Traditional Project
Management

1. Student syndrome

2. Parkinson’s Law
"Work expands to fill (and often exceed)
the time allowed." -- Parkinson's Law

3. Cherry picking tasks

The specific steps to identify and manage a Critical Chain
schedule are as follows:

1. Reduce activity duration estimates by 50%

2. Eliminate resource contentions by leveling
the project plan.
3. Insert a Project Buffer at the end of the
project to aggregate Critical Chain
contingency time (initially 50% of the
critical chain path length)
4. Protect the Critical Chain from resource
unavailability by Resource buffers.
The specific steps to identify and manage a Critical Chain
schedule are as follows:

5. Size and place Feeding Buffers on all paths

that feed the Critical Chain.
6. Start gating tasks as late as possible.
7. Ensure that resources deliver Roadrunner
performance.
8. Provide resources with activity durations
and estimated start times, not milestones.
9. Use buffer management to control the
plan.
 PROJECT
MANAGEMENT’S FIVE
PROCESSES
Initiating processes/Conceptual study

Project planning/Feasibility Study and

Programming

Project implementation and design

Production and Installation Phase

Guarantee Phase
 INITIATING PROCESSES/CONCEPTUAL STUDY
It doesn’t matter how fast you’re
going if it’s in the wrong direction.”
-Stephen Covey
PURPOSE:
1. Clarify the PM’s responsibility and
authority
2. Clarify the project objectives, the
user’s requirements, and
estimated time, costs, and risks of
the project.
3. Obtain sufficient information in
order to have an approval of
further work on the project.
Include:
1. Information on who
prepared, reviewed, and
approved the document
2. Project summary
description
3. Contacts with regulatory
authorities
4. Decision, coordination
and integration
5. How should change
management work?
 PROJECT STUDY/ FEASIBILITY STUDY AND PROGRAMMING

A. Basic Design, Principal drawings, Documents

PURPOSE:

1. Ensure the project’s functional requirements.

2. Ensure the project’s technical requirements when this is important
3. Plan the management of all knowledge areas.
4. Determine how and when to do things and who is responsible for
different parts of the project.

• Principal drawings for electricity, water supply, sewage and HVAC design
must be prepared early in the design phase.
–Monitor and assess project cost at completion.
 PROJECT STUDY/ FEASIBILITY STUDY AND PROGRAMMING

B. Building document design and preparation of inquiry

documents for Design-build-construct (DBC) Contracts
PURPOSE:

Create clear technical and administrative documents that will form the basis
for inquiring, contracting and production.

Progressive design and coordination of drawings from different consultants,

reduce redesign during the production phase and minimize the number of
changes to contract documents.
PROJECT STUDY/ FEASIBILITY STUDY AND PROGRAMMING

C. Detailed Design: inquiry and building documents for

Design-construct (DC)/Turnkey contract.
PURPOSE:
1. Ensure overall objectives, without limiting the possibility for the
contractor to produce economic solutions.
Project Plan
• It integrates all the individual plans into one
coherent document.
• Have an efficient method of keeping the people
involved in the project informed so that they
know what to do, how to do it and when to do
it.
• Encourage the participants to give accurate
feedback on their progress.
Project Plan
1. Project charter – document for the existence of the project

2. P h as e c ha r t er – o utline the objectives of the phase and how they

ar e to b e a c h i ev e d
S co p e p la n – ou tli n eo f wo rk i nc lu de d in th e ph a se a n dt h e not
3. inc lu d e d w or k s; dra w i ngs , bi l o f m a t e ria ls an d sp e cif ic a tio n s.

C o n fi g ura tio np la n –h o e co m p o n en ts o f th e o jec t w i l w ork

4. to g eth e r; th i s is im p o rt a n tw h en a p p ro vi ngs c ope o f ch ang e s.
 Project Plan

5. B ui ld m e thodplan – how the project will be manufactured or

as se m ble d

6. Time management plan – ex. Techniques are : CPM; Gantt chart

7. E x ec u tion s tra te g y p lan – buy or m ak e d eci io n . Co n sid t he

av a i la bil it y ofi n- h o us e r es ou r c es an d e xp e rtise a nd th e bene fi tsof
outsourcing work

8. P ro cu rem en tpl a n– ho w to p ro cu r e al t h eb ought-in items at the

be st pri c e, t he rig h t tim e an d th e r eq ’d qu a lit y .
Project Plan
9. R e sou rcem ana g emen t pl a n – h o wto supply the skilled
wor kf orce, ma ch ine s a nd eq u ipm e n t

10. C os t ma n a ge m en t p la n –how to complete the project

w ithin t h e p r o jec t bu d g et

.1 Risk management plan – how to complete the project

within an acceptable level of risk

12. Q u al it y m an a gem en t p la n – t h is i c lu des qu a lit y ass ur an c e

an d qu al ity co n t r ol; t og u id e an d ena b le the p roje c tto m e e t
the required conditions

13. C om m u nic a tio n pl an –in c lud e th e co l e c ti o n, s to ra geand

di s se mi n ation o fp ro j ec ti nfo r m at io n. Sc h ed u led pr o j
m e et in gs, pr o g re s s r e porting,documentation control and
a d m in is t ra tiv e cl o s eo u t
 PRODUCTION AND INSTALLATION PHASE
PURPOSE:

Contractors and suppliers quality and management plan (ISO 9000 and ISO
14000).

The contractor becomes the client of subcontractors and suppliers.

 GUARANTEE PHASE

PURPOSE:

1. The project’s product is transferred from PM to the operations and

maintenance department.
2. Delivery of as-built drawings and operations and maintenance
instructions.
3. Guarantee periods for the same building may vary for different products
and work.
4. Guarantee periods may be extended for specific items or work.
5. Client should return all bonds and bank guarantees, etc., after the defects
are solved and approved.
PROJECT LIFE CYCLE
Thank you !! ☺