Module 2

2/12/24, 12:18 AM 2.
0 Construction Project Organization: CEM 301-CE32S5 - Project Construction and Management
2.0 Construction Project Organization
Construction Project Organization
Introduction to the Topic:
Hello Future Engineers! The success of the construction project doesn't fully rely on the amount of
available resources - manpower and materials. A success of the construction project will be
determined on how the project organization managed these resources throughout the entire project
timeline. Let's discuss!
Intended Learning Outcomes:
At the end of the session the students should be able to:
1. Learn and understand the fundamental concepts on Project and Project Management;
2. Learn and understand the fundamental concepts on Construction Project Organization;
3. Familiarize with the Different Roles of Stakeholders in a Construction Project Organization.
PROJECT MANAGEMENT
A project is temporary endeavor undertaken to create a unique:
1. Product
2. Service
3. Result
.... and progresses elaborately.
https://tip.instructure.com/courses/50394/pages/2-dot-0-construction-project-organization?module_item_id=5601574 1/18
2/12/24, 12:18 AM 2.0 Construction Project Organization: CEM 301-CE32S5 - Project Construction and Management
Project management is defined as the art and science of coordinating people, equipment,
materials, money, and schedules to complete a specified project on time and within approved
cost. Project management is also the application of knowledge, skills, tools, and techniques to
projects activities to meet project objectives.
PROGRAM & PORTFOLIOS
Portfolio Management - All projects , programs, related or unrelated, driven by an organizational

alignment.
Program Management - A group of related projects, driven by a shared business need.
What's the difference between the two?
Program management manages similar projects while portfolio management manages dissimilar
projects or programs. The scope of program management is broader than the project scope, and
a portfolio has an organization-wide scope, which changes with the strategic objectives of the
organization.
PROJECTS vs OPERATIONS
Operations
- On-going
- Repetitive
- Sustain the Business
Projects
- Temporary
- Unique
- Create new product and services
Operations Manager
Prioritize Service Continuity, is concerned with capacity and service delivery.
Project Manager
Protects the Project Outcome i.e. new Product, Services, is concerned with scope, schedule, cost,
quality.
PROJECT PERFORMANCE BASELINES AND CONSTRAINTS
Figure above is shown as an equilateral triangle to represent an important principle of project

management: a balance is necessary between the scope, budget, and schedule. For any given
project there is a certain amount of work that must be performed and an associated cost and
schedule for producing the work. Any increase in the scope of work requires a corresponding
increase in budget and schedule. Conversely, any decrease in scope of work results in a
corresponding decrease in budget and schedule. This principle applies between any and all of the
three components of a project. For example, any adjustment in budget and/or schedule requires a
corresponding adjustment in scope. This simple concept of a balance between scope,
budget, and schedule is sometimes not fully recognized during early project development as well as
during design and construction.
All project performance are measured against:
1. Scope - represents the work to be accomplished, i.e., the quantity and quality of work.
2. Schedule - refers to the logical sequencing and timing of the work to be performed.
3. Cost/Budget - budgets are used to anticipate all costs and expenses of the building process.
4. Quality - defined as degree of conformity to standards, delivering projects with no defects.
5. Resources - necessary to meet the objectives of the project, and to satisfy the client's
requirements. Examples of resources in a construction project are Materials, Labors, Tools, and
Equipment.
6. Risks - is exposure to the possibility of economic or financial loss or gain, physical damage or
injury, or delay, as a consequence of the uncertainty associated with pursuing a particular course of
action.
Technical Risks include poor design, inadequate site investigation, and uncertainty over the source
and availability of materials and appropriateness of specifications.
Logistical Risks include availability of resources such as construction equipment, spare parts, fuel
and labor and availability of sufficient transportation facilities.
Construction Risks include uncertain productivity of resources, weather or seasonal implications

and industrial relations problems.
Financial Risks include inflation, availability and fluctuation of foreign exchange, delay in payment,
repatriation of funds and local taxes.
Political Risks include constraints on the availability and employment of expatriate staff, customs
and import restrictions and procedures, difficulties in disposing of plant and equipment and insistence
on using of local firms and agents.
7. Customer Satisfaction - measures how products or services supplied by a company meet or

surpass a customer's or owner's expectation.
CONSTRUCTION PROJECT ORGANIZATION
ORGANIZATIONAL PROJECT MANAGEMENT
ORGANIZATIONAL PROJECT MATURITY MODEL
PROJECT MANAGEMENT OFFICE
There are 3 different forms of PMO: Supportive, Controlling, and Directive.
THE STAKEHOLDER
DIFFERENT TYPES OF ORGANIZATIONAL STRUCTURE
ROLES OF EACH DESIGNATION WITHIN THE ORGANIZATION
Role of PROJECT MANAGER
Determine the resources needed.

Negotiate with resource managers for optimal available resources.
Confirm availability of resources assigned.
Create a project team directory.
Create project job descriptions for team members and other stakeholders.
Make sure all roles and responsibilities are clearly assigned.
Understand the team members' needs for training related to their work.
Create recognition and reward systems.
Create a formal plan covering topics as how team will be involved in the project and what roles
they will perform.
Role of SPONSOR
Sponsor is one who provide the financial resources for the project, and usually taken over by
senior management in the performing organization. On most cases, they are the program or
portfolio manager.
Role of the TEAM
The TEAM is to help plan and execute what needs to be done by creating WBS and time
estimates for their work packages or activities. They complete work packages or activities and
help look for deviations from the project management plan.
Role of STAKEHOLDERS
The STAKEHOLDERS may be involved in the creation of the project charter, project management
plan, approve project changes, identifying constraints, requirements, and be involved in risk
management.
Role of FUNCTIONAL MANAGER
The functional manager manages and "owns" the resources in a specific department, such as IT,
public relations, or marketing, and generally directs the technical work of individuals from the
functional area who are working on the project.
EXAMPLES OF CONSTRUCTION PROJECT ORGANIZATION
End of Discussion.
Reference: www.theprojectmanagementboss.com (http://www.theprojectmanagement)
Other Reference:
Pellicer, Eugenio (2014). Construction management. West Sussex, United Kingdom: John Wiley &
Sons
Godwin, William (2013). International construction contracts: a handbook with commentary on the
FIDIC design-build forms. West Sussex, United Kingdom: Wiley-Blackwell
Ritz, George J. (2013). Total construction project management. New York, New York: McGraw-Hill
Education
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Property of the Technological Institute of the Philippines (T.I.P.). No part of the

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part, without prior consent of T.I.P.
END OF THE LESSON
"The noblest search is the search for

excellence."
- Lyndon B. Johnson
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2/12/24, 12:18 AM 2.

0 Construction Project Organization: CEM 301-CE32S5 - Project Construction and Management

2.0 Construction Project Organization

Construction Project Organization

Introduction to the Topic:

Intended Learning Outcomes:

At the end of the session the students should be able to:

.... and progresses elaborately.

PROGRAM & PORTFOLIOS

Portfolio Management - All projects , programs, related or unrelated, driven by an organizational

Program Management - A group of related projects, driven by a shared business need.

What's the difference between the two?

- Sustain the Business

- Create new product and services

PROJECT PERFORMANCE BASELINES AND CONSTRAINTS

Figure above is shown as an equilateral triangle to represent an important principle of project

All project performance are measured against:

4. Quality - defined as degree of conformity to standards, delivering projects with no defects.

Construction Risks include uncertain productivity of resources, weather or seasonal implications

7. Customer Satisfaction - measures how products or services supplied by a company meet or

CONSTRUCTION PROJECT ORGANIZATION

ORGANIZATIONAL PROJECT MANAGEMENT

ORGANIZATIONAL PROJECT MATURITY MODEL

PROJECT MANAGEMENT OFFICE

There are 3 different forms of PMO: Supportive, Controlling, and Directive.

DIFFERENT TYPES OF ORGANIZATIONAL STRUCTURE

ROLES OF EACH DESIGNATION WITHIN THE ORGANIZATION

Role of PROJECT MANAGER

Determine the resources needed.

Role of the TEAM

Role of FUNCTIONAL MANAGER

EXAMPLES OF CONSTRUCTION PROJECT ORGANIZATION

Reference: www.theprojectmanagementboss.com (http://www.theprojectmanagement)

Property of the Technological Institute of the Philippines (T.I.P.). No part of the

END OF THE LESSON

"The noblest search is the search for

CLICK "NEXT" FOR ASSIGNMENT.

RETURN TO HOME PAGE? CLICK BELOW.

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