MODULE 1

Introduction to Construction
Project Management &
Construction Organization
INTRODUCTION

Construction Project Management is the overall planning, co-ordination and control of a

project from inception to completion aimed at meeting a client’s requirements in order to
produce a functionally and financially viable project that will be completed on time within
authorized cost and to the required quality standards.
OR
Construction project management is the act of planning, organizing and overseeing the
various tasks involved in a construction project. It is performed by individuals known as
project managers, who represent the builder or contractor hired to perform the work.
Construction project management is a complex task that changes dramatically from project
to project. Employees working in this field will find that the requirements and processes of
management will constantly shift depending on the specifics of the project.

HISTORY

Project management has been practiced since early civilization. Until 1900 civil engineering
projects were generally managed by creative architects and engineers themselves, among
those for example Vitruvius (1st century BC), Christopher Wren (1632–1723) , Thomas
Telford(1757-1834) and Isambard Kingdom Brunel (1806–1859)

. It was in the 1950s that organizations started to systematically apply project management
tools and techniques to complex projects.
Construction Project Categories
Why do we need Construction Management?
Buildings and their construction have become increasingly complex. New innovations in
methods, designs and materials mean that the management of construction projects
requires professionals with the knowledge and skills to deliver on time and on budget in a
demanding and rapidly changing industry.
What does managing construction involve?
Construction Management a combines a wide range of techniques and knowledge. Including:
Budgets and cash flow
Construction law
Construction Planning
Procurement
Supply chain management and tendering
Quality Management
Construction risk management, including Health and Safety .
Budgets and cash flow Monitoring and control of construction budgets and cash flow is
crucial if a construction project is to be completed on time. Experts like quantity surveyors
will provide cost estimates but the task of monitoring progress against budget will fall under
the remit of the Construction Manager. Construction Law Construction law is understood to
be the whole field of law that affects the construction industry. Depending on the country
different laws will affect construction projects. Construction is known as a litigious industry
and construction projects are subject to various statutory requirements for example, Building
Regulations, Planning Permission and Health and Safety laws in the UK. Knowledge of the
laws that affect the construction industry is therefore essential for the successful
management of construction projects.
Phase of construction
1. Planning, Design, & Pre-Construction Phase
It is during this phase that the scope and budget of the project is defined. At this phase,
Construction Management Team can be used as a sounding board in providing information
and analyzing alternatives for both the architect/engineer and owner. It is in working through
and under the direction of the architect/engineer during the design and planning stage that
maximum value can be added to the project (i.e., space used, energy efficiency, design,
mechanical systems, structural integrity, and market value).

The assistance provided by Construction Management Team at this point includes:

• Assist the architect/engineer in defining the owner’s needs and setting the project criteria.
• Providing a value/cost analysis to both the owner and architect/engineer.
• Advising the owner of construction methods, materials, and structural components as the
project plan matures.
• Budgeting and cost estimating.
• Bid packaging and coordination with the architect/engineer.
• Establishment of operational procedures.
• Identification of long lead time material items.
• Organization of responsibilities and work flow projections.
• Research of the labor market.
• Bid assessment and qualifying.
• Awarding of contracts.
• Contract review and execution.
2. Construction & Delivery Phase
It is during this phase that the Construction Manager assumes the leadership role on the
project team in delivering the building within the agreed upon plans, specifications, and
budgets. The Construction Manager, acting as an agent for the owner and the
architect/engineer, is the liaison and coordinator for all activity involving the construction of
the project.
Services provided by the Construction Manager during the Construction Phase include: •
Providing on-site construction administration, supervision, and coordination.
• Scheduling and conducting all job site and construction meetings.
• Developing and maintaining construction schedules.
• Maintaining cost accounting and cost control records.
• Reviewing with the owner and architect/engineer the monthly status reports, including these
areas: a) Cost vs. Budget. b) Construction progress vs. schedule. c) Change order summary.
d) Quality of workmanship review.
• Processing change orders initiated by the owner.
• Preparing punch lists in advance of completion and establishing management systems for
correction of any deficient work by the appropriate contractor.
• Arranging for inspections by the appropriate governing authorities.
• Monitoring adherence to safety programs & coordinating all safety requirements.
• Coordinating all general condition items including temporary facilities.
• Accepting delivery and arranging storage, protection, and security for all owner purchased
materials, systems, and equipment.
• Assisting the owner/architect/engineer with selection of the surveyor and testing labs.
• Obtaining for the owner all building equipment, operating manuals and warranty
information, and coordinating startup of the building systems with operational
personnel.
• Obtaining for the owner As-built drawings for the architect/engineer and contractors.
• Finalizing accounting on construction contracts, recommending retainage release, and
obtaining final lien waivers.
• Coordinating contractor warranty work as required during the warranty period.
• Assisting the owner in occupancy, equipment startup, and systems operations through
the appropriate suppliers and trades.
What is a Project?
“A project is a unique set of co-ordinated activities with definite starting and finishing
points, undertaken by an individual or organisation to meet specific objectives within
defined time schedule, cost and performance” (BSI, 1996) Every project is unique in its
own way; there are certain basics which define most project work. These are:
objectives, constraints, lifecycle.

Project Objectives
Objectives are describing what the project is trying to accomplish, or what business
value the project will achieve. Generally, any project objectives can be described as
follows:
- To ensure finishing and delivering the project on time
- To ensure the delivery of the project within budget.
- To ensure reaching the required level of quality, through reducing errors, improving
effectiveness, and applying the appropriate control. Construction Project Management
& Engineering
Project Constraints
Each project needs to be performed and delivered under certain constraints. These
constraints are typically as shown below: Mainly, project management wishes to
provide at the end of the project a product which is delivered on Time with a high
Quality and minimum Cost. However, it is practically difficult to achieve this. The
reduction of project’s time involves increasing cost (this could mean using extra labour
and equipment), or reducing quality of work.
Traditionally, there are two contracts between these parties as they work together to plan,
design, and construct the project.
The first contract is the owner-designer contract, which involves planning, design, and
construction administration.
The second contract is the owner-contractor contract, which involves construction. An
indirect, third-party relationship exist between the designer and the contractor due to these
two contracts.
An alternate contract or business model replaces the two traditional contracts with three
contracts: owner-designer, owner-construction project manager, and owner-builder.

The construction project management company becomes an additional party engaged in

the project to act as an advisor to the owner, to which they are contractually tied. The
construction manager's role is to provide construction advice to the designer, on the
owner's behalf, design advice to the constructor, again on the owner's behalf, and other
advice as necessary.

Design, Bid, Build Contracts

The term "Design, Bid, Build" describes the prevailing model of construction management in
which the general contractor is engaged through a tender process after the designs have
been completed by the architect orengineer.

Design & Build Contracts

Recently a different business model has become more popular. Many owners - particularly
government agencies have let out contracts which are known as Design-Build contracts.
Project Lifecycle
Project Initiation, Planning & Design, Execution, and Closing & Maintenance are
any project’s development stages
The figure shown below describes the activity of work during the project lifecycle:
1) Initiation: At this stage, project’s scope is determined. An understanding of the business
environment to make sure that all the project’s key controls are fully addressed and
incorporated into the project. If this stage is not performed well, it is unlikely that the project
is going to be successful in meeting the needs for which it was undertaken.
2) Planning
The planning phase is considered the most important phase in project management. Project
planning defines project activities that will be performed; the products that will be produced,
and describes how these activities will be accomplished and managed. Project planning
defines each major task, estimates the time, resources and cost required, and provides a
framework for management review and control. Planning involves identifying and
documenting scope, tasks, schedules, cost, risk, quality, and staffing needs.

The result of the project planning, the project plan, will be an approved, comprehensive
document that allows a project team to begin and complete the work necessary to achieve
the project goals and objectives. The project plan will address how the project team will
manage the project elements. It will provide a high level of confidence in the organization’s
ability to meet the scope, timing, cost, and quality requirements by addressing all aspects of
the project.

3) Executing
Once a project moves into the execution phase, the project team and all necessary
resources to carry out the project should be in place and ready to perform project activities.
The project plan is completed and base lined by this time as well. The project team and the
project manager’s focus now shifts from planning the project efforts to participating,
observing, and analyzing the work being done.
The execution phase is when the work activities of the project plan are executed, resulting
in the completion of the project deliverables and achievement of the project objective(s). This
phase brings together all of the project management disciplines, resulting in a product or service
that will meet the project deliverable requirements and the customers need. During this phase,
elements completed in the planning phase are implemented, time is expended, and money is
spent.
In short, it means coordinating and managing the project resources while executing the project
plan, performing the planned project activities, and ensuring they are completed efficiently.

3) Controlling
Project Control function that involves comparing actual performance with planned performance
and taking corrective action to get the desired outcome when there are significant differences. By
monitoring and measuring progress regularly, identifying
variances from plan, and taking corrective action if required, project control ensures that project
objectives are met.

4) Closing out
Project closeout is performed after all defined project objectives have been met and the
customer has formally accepted the project’s deliverables and end product or, in some instances,
when a project has been cancelled or terminated early. Although, project closeout is a routine
process, it is an important one. By properly completing the project closeout, organizations can
benefit from lessons learned and information compiled. The project closeout phase is comprised
of contract closeout and administrative closure.
Creating the work breakdown structure (WBS)

Once the scope and deliverables have been identified, the work of the project can be
subdivided into smaller work elements. The outcome of this process is called the work
breakdown structure.

All the elements/steps that make up WBS are called work packages

. It is very useful as the structure clearly points to what has to be done and in what
sequence (order).

It divides the work and responsibility into individual work packages which makes it
easy for the project manager to manage and monitor the implementation for the
project by:

making it possible to plan, schedule and budget;

providing a framework for tracking and monitoring cost and work performance;

defining communication channels;

assisting in understanding and coordinating many parts of the project;

pointing to problems and ensuring they are quickly addressed

Estimating cost and developing budgets
Project status reports to stakeholders depend on reliable cost estimates and
budgets. The accuracy of the cost estimates are good when work packages are
clearly defined, as in the WBS example above. At the work package level, estimates
should be made by the people
most familiar with the task. They will give an estimate based on their experience and
best judgment.
Here are typical kinds of costs found in a project:
• Direct costs – These costs are chargeable to individual work package in the WBS.
o Labour
o Materials
o Equipment
o Other
• Project Overhead Costs – represents project costs that cannot be tied to specific
deliverable but serve the entire project. For example, a temporary shed may be set
up that will be used to store tools and equipment of various contractors, host the
training and the handing over function
. • General and Administrative (G&A) overhead costs – these represent
organizational costs incurred by the firm managing the project. G&A overhead costs
are usually allocated as a percentage of total direct cost and may vary from one
project manager to another. The organization of the budget into these three
categories helps control the process and improve decision making. The following is
an example of a budget format:
Construction Organisation:
Project Manager's Role
The role of the project manager is one of great responsibility. The project manager's
job is to direct, supervise and control the project from beginning to end. Project
managers should not carry out project work - managing the project is enough. Here
are some of the activities a project manager undertakes:
The project manager must define the project, reduce it to a set of manageable tasks,
obtain appropriate resources and build a team to perform the work.
The project manager must set the final goal of the project and motivate the project
team to complete the project on time.
The project manager must inform all stakeholders of progress on a regular basis.
The project manager must assess and monitor risks to the project and mitigate them.
No project ever goes quite as planned. Project managers must learn to adapt to and
manage change