CE 476

Construction Management
Lectures # 2 and 3

Dr. Abdulrahman K. Yussef

Chairman of the Architectural

Engineering Department
 Today…
v What is construction management?
v Project stakeholders
v Project lifecycle
 Construction Management
§Construction management is a professional service that provides a project’s owner(s) with
effective management of the project's schedule, cost, quality, safety, scope, and function.

Construction Management

Planning Schedule Cost Quality Safety Scope Function

 Construction Management
§Construction management is compatible with all project delivery methods.
No matter the setting, a Construction Manager’s (CMs) responsibility is to the
owner and to a successful project.
§At its core, a capital project is made up of three parties (excluding the CM):
1. The owner, who commissions the project and either funds the project directly or
finances it through a variety of methods.
2. The architect/engineer, who designs the project.
3. The general contractor, who oversees day-to-day operations and manages
subcontractors.
Construction Project Stakeholders
Construction Project Lifecycle
 Project Planning
§Project planning refers to everything you do to set up your project for
success. It’s the process you go through to establish the steps required to
define your project objectives, clarify the scope of what needs to be
done and develop the task list to do it.
§Project planning is at the heart of the project life cycle, and tells
everyone involved where you’re going and how you’re going to get
there. The planning phase is when the project plans are documented, the
project deliverables and requirements are defined, and the project
schedule is created.
§The project planning phase is often the most challenging phase for a
project manager, as you need to make an educated guess about the
staff, resources, and equipment needed to complete your project. You
may also need to plan your communications and procurement activities,
as well as contract any third-party suppliers.
 Project Planning
The basic processes of project planning are:
•Scope planning – specifying the in-scope requirements for the project to facilitate creating the work breakdown structure
•Preparation of the work breakdown structure – spelling out the breakdown of the project into tasks and sub-tasks
•Project schedule development – listing the entire schedule of the activities and detailing their sequence of implementation
•Resource planning – indicating who will do what work, at which time, and if any special skills are needed to accomplish the
project tasks
•Budget planning – specifying the budgeted cost to be incurred at the completion of the project
•Procurement planning – focusing on vendors outside your company and subcontracting
•Risk management – planning for possible risks and considering optional contingency plans and mitigation strategies
•Quality planning – assessing quality criteria to be used for the project
•Communication planning – designing the communication strategy with all project stakeholders
 Project Schedule
Scheduling in project management is the listing of activities, deliverables, and milestones within
a project. A schedule also usually includes the planned start and finish date, duration, and
resources assigned to each activity.
Project Schedule
 Project Cost
§Project Cost is the total funds
needed to complete the project or
work that consists of a
Direct Cost and Indirect Cost.
§The Project Costs are any
expenditures made or estimated to
be made, or monetary obligations
incurred or estimated to be incurred
to complete the project which are
listed in a project baseline.
 Direct Cost
§Direct Cost (DC) is a directly involved in a
specific task or project, and can be identified a
specific cost center.
§The Project Direct Cost includes cost of
the employees; equipment and materials;
and outsourcing contractor’s cost, etc. which are
directly involved efforts or expenses: project
management; engineering; procurement and
procurement related cost such
as transportation and custom clearance; construction
management, construction labour, equipment, and
consumable materials; sub-contractor’s cost.
 Indirect Cost
§Indirect Cost is any cost that is
not directly involved in a
specific task or project, and can
not be accurately attributed to
a specific cost center.
§Main indirect cost of project is
the company overhead
(operating expenses) and profit.
Project Safety Management