DILLA UNIVERSITY

COLLEGE OF ENGINEERING AND TECHNOLOGY

Department of Hydraulic and Water Resources Engineering
Course name: Construction Planning & Management (CENG–5122)
Targeted group : Regular 5th Group &2 Academic year: 2023

Prepared by : Wondimagegn Gebeyehu

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 CHAPTER ONE
Introduction to Construction Management
The Construction Industry
 Construction Industry is the most important enabler for social, economic and
political development of countries
 It is the highest employer after agriculture in the national economy
 It provides large capital wealth in the form of buildings, highways, railways,
dams, utilities etc.
 Each product of the industry is unique in character and is produced on its
place of use
 Growth in this industry in fact is an indicator of the economic conditions of a
country. This is because the construction industry consumes a wide
employment circle of labor.
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 Cont.…’d

 Most projects exhibit cost overruns, time extensions,

and conflicts among parties.
 In general, the construction industry is more challenging
than other industries due to: its unique nature; every
project is one-of a kind; many conflicting parties are
involved; projects are constrained by time, money and
quality; and high risk.

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 Cont.…’d
 Contribution of Construction Industry to National Economy:
1. Most aids/grants and loans involves construction and infrastructure of
engineering nature
2. Infrastructure projects improves trade and business
3. Construction industry boost other industry such as; manufacturing and
service industry
4. It helps generate employment, both foreign and local jobs
5. It contributes to domestic employment and improves local business
6. Most investments entail construction works.
7. Construction improves the life of ordinary people

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 CONSTRUCTION DELIVERY METHODS

 Construction delivery method consist of different ways to organize those

activities in order to execute a project. While each method generally

consist of an owner, a designer and a builder, the execution of a project

can differ
 Construction by General Contract
• Employing a contractor
 Construction by Force account
• Day labor method
 Construction by Separate contract
• Employ specialty contractors for various part of the work directly by the owner
NB :- ( for details you have learned in contract, specification and quantity surveying course see from it).
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 How Prepared by :- Wondimagegn Gebeyehu 5
can we select the appropriate method of Construction?
 Home work
1. Who are the stakeholder or parties involves in construction industry?
Write their responsibility in detail.
2. Write the difference between of Design Bid Build and Design Build
construction delivery method?
3. Write the difference between (DB,DBB) and Turnkey construction
project delivery method? Is it applicable in Ethiopia country? If it is
applicable give an example of project and discuss with it.

 Note :Write your reference at the end of the paper

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 FUNDAMENTAL OF MANAGEMENT

 Management is the process of planning ,organizing, leading and

controlling the efforts of organizational members and use of
organization resources (materials, finance, human resources,
information, etc.) efficiently and effectively in order to achieve a pre
defined organizational goals or objectives.

 And it can be considered as process of establishing (vision, mission,

values, objectives, goals, and strategies) and guiding and
empowering others to accomplish them.

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 Cont.…’d
 Management is summarized into five functions; planning, organizing,
staffing, leading or directing and controlling.

 Planning is the process which involves setting out work break down structures ,
methods of estimating time, cost, resource, and scheduling to answer the questions:-

 What to accomplish (goals);

 When to accomplish the goals;

 What resources to use;

 Who should accomplish what; and

 What methods to use.

 Assess all possible scenarios including the best and worst and what actions to take.
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 Cont.…’d
 Staffing- is the selection of the individuals who have the expertise to produce the work.
Staffing is the managerial function of recruitment, selection, training, developing, promotion
and compensation of personnel. It is defined as the process of hiring and developing the
required personnel to fill in the various positions in the organization.

 Organizing refers to the process of designing jobs and departments and determining
authority relationships in organizations. Organizing as a process will:
 Permits people to work together in order to achieve goals;
 Acquisition of capital resources(facilities, materials, capital and other resources )
 Avoid duplication of resources;
 Establish authority And facilitate communication.
 Creation of a formal organizational structure that include policies, procedures, reporting
patterns, and communication channels
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 Cont.…’d
 Leading or directing is a process of influencing, inspiring and empowering employees to work
towards the leaders’ vision. It involves:
 Building successful groups and teams in organizations;

 Motivating people;

 Communication; and

 Developing organizational change.

 Controlling is the process of measuring performance, comparing it with the objectives, and
making any necessary adjustments. The purpose of control includes:
 Adapting to changes;

 Minimizing consequences of errors;

 Helping the organization cope with complexities; and

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 Improving efficiency
 Level of management
A manager is someone whose primary responsibility is to carry out the
management process. The manager will plans and makes decisions,
organizes, leads, and controls (human, financial, physical, and

information resources).

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Fig 1.1 level of management
 A. Top Managers: The relatively small group of executives who manage
the organization’s overall goals, strategy, and operating policies.

B. Middle Managers: Largest group of managers in organizations who

are primarily responsible for implementing the policies and plans of top
managers. They supervise and coordinate the activities of lower-level
managers.

C. First-Line Managers: Managers who supervise and coordinate the

activities of operating employees.

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 Managerial skills
Managerial skills include Conceptual, Interpersonal and Technical skills.

A. Conceptual skills: the capacity to think in the abstract and to see the
organization as a complete unit and to integrate and give direction to its
diverse activities so that objectives are achieved.

B. Interpersonal skills: the ability to communicate with, understand and

motivate both individuals and groups.

C. Technical skills: skills necessary to accomplish or understand the specific

kind of work being done in an organization.

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 CONSTRUCTION MANAGEMENT
The term ‘‘Construction Management’’ is applied to the provision of
professional management services to the owner of a construction project with
the objective of achieving high quality at minimum cost. Construction
Management is the overall planning, coordination and control of a
construction project from inception to completion aimed at meeting a client’s
requirements in order to produce a functionally and financially viable project.
The management of construction is an enterprise (creativity) that involves
many stakeholders with diverse interests, talents and backgrounds whose
interrelated roles must be coordinated to assure a successful project.

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 Cont..

 Construction Project management is the art of directing and coordinating

human and material resources throughout the life of a project by using
modern management techniques to achieve predetermined objectives of
scope, cost, time, quality and participants satisfaction.
 It involves the planning, scheduling, evaluation, and controlling of
construction tasks or activities to accomplish specific objectives by
effectively allocating and utilizing appropriate labor, material, and time
resources in a manner that minimizes costs and maximizes
customer/owner satisfaction.

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  The primary objective of the construction management function is to control
six main factors or values to confirm with Client acceptance.
Time: - if the emphasis is on time , the completion date will be the
dominant factor.
Cost: - when cost is the main consideration , contracts are awarded to the
lowest bidder.
Quality- the quality requirement is denned (live) in the plan & specifications
part of the contract and therefore not negotiable without a change in scope of
work.
Resource- refers to money, materials, machine and manpower.
Scope of work- is the listing or breakdown of tasks and activities to be done
Safety- human life is invaluable , and safety should be the emphasis in all
tasks or activities made.
 Client acceptance- refers to the applicability of the work completed as to
the intended use and need of the owner.
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 Construction Project
 Construction project is built as a one-of-a-kind facility,

 Each building is built on a different building site, under variable weather conditions
and particular environmental and topographical conditions.
 Each one is a prototype in and of itself. There is no testing it first to make sure it
works. Instead, the bugs get worked out as we go.
 Construction project workforce is primarily transient practitioners of an collection of
trades. For the most part, our labor is still performed by the human hand laying the brick,
forming the concrete, etc.

 Finally, many of our materials, such as timber, concrete, and plaster, are nature-made.
They react to the heat, the cold, and the humidity on any given day.
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 Cont.…’d
 In spite of these uncertainties and unique circumstances affecting the
project, a construction manager is expected to deliver a high-quality
facility on time, within budget, and accident free
 A project is a one time task constrained by time, cost and quality and its
success depends on how well three constraints are balanced. Very often
project managers try to maximize project quality within a given deadline
and budget.
The primary objective of the construction management function is to
control six main factors or values(Time - Cost - Quality- Resource-
Scope of work - Safety-) in Client acceptance (requirement).
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 Functions of Construction Management
 The functions of project management for construction include:
 Specifying project objectives and plans including delineation of scope,
budgeting, scheduling, setting performance requirements, and selecting project
participants.
 Maximization of efficient resource utilization through procurement of labor,
materials and equipment according to the prescribed schedule and plan.
 Implementation of various operations through proper coordination and control of
planning, design, estimating, contracting and construction in the entire process.
 Development of effective communications and mechanisms for resolving
conflicts among the various participants.
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 What is project?
A project is a series of activities aimed at bringing about clearly specified
objectives within a defined time-period and with a defined budget. It involves a
series of complex or interrelated activities and tasks that consume resources to
achieve some specific objectives. It has to be completed within a set of
specifications under a limited budget.

Construction projects are mostly constructed on the ground and exposed fully to
the local environment and have different scale and complexities. It ranges from
improvements to large investments .

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 Characteristics of Project
 It has a specific starting and finishing time.
 It has usually geographical and sometimes organizational boundary.
 It has clearly defined set of objectives.
 It entails the investment of scarce resources in the expectation of future benefits.
 It may be planned, financed and implemented as a unit.
Objectives of Successful Projects
 within time
 within cost
 at the desired performance / technology level
 while utilizing the assigned resources effectively and efficiently
 accepted by the client or owner

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 Obstacles to Successful Projects:  The function of project management

 project complexity includes:

 customer's special requirements  defining the requirement of work,

 organizational restructuring
 establishing the extent of work,
 project risks
 monitoring the progress of the work
 changes in technology
 tracking progress
 affected by climatic and weather  comparing actual outcome with
planned outcome
condition
 analyzing impact, cause and effect
 making adjustments or corrective
actions

 adjusting deviations from the plan

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 PROJECT MANAGEMENT
 Project management is defined as application of knowledge, skills, tools and
techniques to a broad range of activities to meet the requirements of the particular
project. It is process of the planning, organizing, directing, and controlling of
company resources for a relatively short-term objective that has been established to
complete specific goals and objectives. It is essentially about managing a project
from an idea though to completion.

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 Cont.…’d
 The major objectives project management is to met
performance, cost, and time goals, while at the same time you
control or maintain the scope of the project at the correct level.
 It Concerned with achieving a specific “overall” goal in a
given time using resources available for that period only.
 Since projects are unique project management is managing
variety or change.
 The project manger provides a single focal point for organizing
resources, following up performance and controlling project
activities.
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  Conditions and criteria for using project management

 The more unfamiliar or unique the undertaking, the greater

the need for project management to ensure that nothing gets
overlooked.
 The more numerous, interdisciplinary and inter dependent
the activities in the undertaking the greater the need to ensure
that every thing is coordinated, integrated and completed.
 Other factors include changing environment and reputation
of the organization.

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 PROJECT LIFE CYCLE

A project passes through a number of distinct phases or stages from

project conception, through execution into project completion. These
phases although may overlap is known as the "project life cycle".

Figure:- Life cycle of Project

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 Cont..

Fig 1.2 Life cycle of Construction Project

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 PROJECT ORGANIZATION STRUCTURES AND RESPONSIBILITY
 An Organization is a system of men, materials, equipment and money
interacting to achieve a certain predefined overall goal
 It can be partly defined as a structure i.e. a relationship that bonds the
elements … a chain of command
 In any organization there are always two types of organization
• Formal organization…officially publicized and describes the chain of
command
• Informal organization…..these refer to relationships that are evolved
through the interaction of many people
• These include groupings, loyalties, trust and secrecy lines that exist
in an organization but do not appear on published charts

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 Organization of project teams and their leadership structures differ according to certain
characteristics of projectsdue to:-
 The project manager’s authority and role

 Resource availability and budget responsibility

 Whether or not a project management staff availability

 The three main types of organization structures used in projects are:

A. Functional project organization

B. Pure project organization

C. Matrix project organization

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 Forms of organization Structure
1. Traditional/Functional Structure

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 This structure is by far the oldest of the organizational methods but remains

one of the most successful. This method performs best when used for routine

work functions and the upholding of quality and work standards.

Functional Organization structures assign projects in two different ways.

One way involves the project being assigned to a specific functional manager

who then coordinates with the other departments for them to each contribute.

Alternatively, projects can be shuffled around to different departments where

each department manager ensures that their parts of the work have been

completed.
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 Advantages
 There is usually clear lines of authority
 No need of negotiating with other program unit for resources. (b/s all of the staff
needed for the project will come from the same program area)
 The team members are usually familiar with each other.
Disadvantages
 There is lesser interaction between the other departments and people belonging to
other departments.
 They can handle only structured “rigid” kinds of activities i.e. work well in stable
environment with repetitive activities
 They are not ready to accommodate change
 The program area may not have all of the specialists needed to work on a project.

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 2. Pure Project Organization Structures

ORGANIZTION

Project
Manager

RESEARCH DESIGN PROCURMENT PRODUCTION MARKETIMG FINANCE

HARDWATRE PURCHASE ASSEMBLY

SOFTWARE SUBCONTRACT INSPECTION

DRAWINGS PACKING

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 Is a structure that is specifically designed for executing projects. Which means that
when the project is complete, personnel have to find another project or not have a job

 It is specifically adapted to meet the demands of complex projects by isolating unique

work and maintaining a strong focus on completing the project.

Advantage
 The project manager has full line authority over the project

 All members of the project work force are directly responsible to the project manager

Disadvantage
 There is duplication of resources(i.e. scare resources must be duplicated on different
projects)
 It is not so clear where everyone is reassigned when the project is completed
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 3. Matrix Project Organization Structures

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  A hybrid form that combines both some characteristics of functional and
pure project organization forms.

 Project manager and functional managers share responsibility.

 Project manager decides what tasks will be done, and when they will be
done.
 Functional manager decides who will work in the project and which
technologies will be used.
 Members of the project team have two “bosses” that they report to.

 Team members could be working on multiple projects.

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 Advantage
 There is efficient allocation of all resources especially scarce specialty
skills that can not be fully utilized by only one project

Disadvantage
 Reporting relationships are complex.

 (Individual employees report to at least two managers which can

often lead to ambiguity and conflict. )
 The sharing of resources can lead to inter “departmental conflict”.

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  Requirements for a good project organization
 It must be dedicated to overall goal of the project

 It must be temporary

 It must be dynamic to handle uncertainties in the project

 It must be highly differentiated to handle variety of specialists

and also highly integrated to respond to conflicts
 It must be flexible and adaptable to change its structures

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  Selecting A Project Organizational Structure
 The form of project organization structure must be chosen to fit
• The projects’ need
• The parent organization structure
 Factor that influence choice of organization are;
 Frequency of new projects
 Duration of projects
 Size of projects
 Complexity of the integration
 Location of projects
 Availability of Resources
 Unique features of the project

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 WORK BREAK DOWN STRUCTURE (WBS)
 Work break down Structure (WBS) is:-
• A deliverable oriented grouping of project elements that organize and define the
total work scope of the project.
• Each descending level represents an increasingly detailed definition of the
project work( Project Management institute 2000)
• A deliverable as defined in the above definition of WBS is any measureable,
tangible, verifiable outcome, result, or item that must be produced to complete a
project or part of the project.
• A work Package is a deliverable at the lowest level of the work break down
structure. prepared by Wondimagegn Gebeyehu
 Mega project
Real Estate Development
(Programme)

Residential Buildings Service Buildings Recreation Centers Sub projects

Educational Buildings Health Centre Shopping centre

Tasks
Sub structure Super Structure Roofing Finishing

Base construction Footing Con Plinth wall Con Ground floor Con Work package

Earth work Base preparation Blinding

Activities
Layout Excavation Leveling/compacting

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 The work break down structure (WBS) has two levels. i.e. Managerial
Level and Technical Level

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 No hard and fast rule to prepare WBS ……good judgment is the
only criterion
 The following guidelines would help
• Within the WBS work packages should represent jobs of about
equal magnitude
• The work package should be relatively small cost and short
duration compared to the total project
• Each work package should be clearly identifiable and can be
thoroughly and accurately budgeted scheduled and control
• The optimal work package size shall be a balance between
smaller work packages for the above reasons and larger size
work package which reduces the effort and cost
• The WBS should be understandable by all concerned
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 All work Packages(the lowest level of WBS) should include the
following information
• The total cost or Budget
• Schedule dates and mile stone events( start and end dates)
• Resource estimates for labor, material, equipment and facilities
• A summary of the work to be performed
• Product specification
• Inputs required from other parts of the project(Predecessors)
• The manager and organizational unit responsible for the work
package
• The work order, subcontracts and purchase order
• Specific results to be obtained from the work package

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• WBS can be prepared in one of the following two ways
 Functionally Oriented WBS

• Work breakdown along functional departments or procedural

functions
 Product Oriented WBS

• Work break down corresponds to the end products of the project

– Consider a project to rehabilitate a meeting hall and the two
possible WBS shown below

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 Meeting
Hall

Electrical Mechanical
Carpentry Civil Works Equipments
Works Works

Main Panels Air Washer Air Cooling Stage Air Cooler

Stage Control Curtain

Air Blower Switch gear
Panels Room Control

Floor Curtain
Floats Projection Seat Frame
Elevation control

Seat For
Sound Curtain Projection
Handles Projection

Floor
Lighting
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Covering
 Meeting Hall

Wood Work and Electrical Cable Sound

Air Cooling Seating Curtains Projection
Acoustics and Lighting Reinforcement

Air Washer
Rear Panels Cable Conduits
Unit

Side Panels Ducting Cables

Stage Panels Exit air Louvre Switch Gear

Stage Apron Thermostats Stage lights

Stage Baffles Humid stats Controls

Acoustic
General lights
Floating
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 Common misunderstandings and pitfalls in WBS construction

• A WBS is not an exhaustive list of work. It is instead a

comprehensive classification of project scope.
• A WBS is not a project plan or a project schedule and it is not a
chronological listing
• A WBS is not an organizational hierarchy

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 Responsibility Chart and Matrix
Actors/ Laboratory / General Project Marketing Controller
Decision Material Manager Manager Manager
Manager

Change in Inform Consult Approve inform Responsibl

Budget e

Allocate Consult Approve Responsible Inform Inform

Manpower

Change in Responsible Consult Consult Approve Inform

Design and
Specification
Change In Inform Approve Responsible Consult Inform
Schedule

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 Responsibility matrix is the intersection of the work break down
structure (WBS) and the organization structure
 Rows show the work packages in the project and Columns show the
functional position in the organization or vise versa
– Each row of the responsibility matrix shows all position/person
involved in one work package and the nature of their responsibility
– Each column shows all the work packages for which a single
functional position is responsible and the type of the responsibility

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 Assignment 1
Q2. Assume a particular large scale hydropower plant
will implemented for the next year. As profession
prepare an organizational structure using pure project
and matrix and prepare work break down structure for
the project using both functional oriented and project
oriented WBS.

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 CONSTRUCTION PROJECT PLANNING

 Planning is the process of drawing up the scheme of the action or execution ,in
advance, foreseeing the likely future development. It stands for the process of
selecting the appropriate methods and sequence for the activities in the project. It
aims at formulation of a time-based plan of action for coordinating various
activities and resources to achieve specified objectives.

 It is the process of developing the project plan which outlines how the project is to
be directed to achieve the assigned goals. It specifies a predetermined and
committed future course of action, based on discussions and decisions made on the
current knowledge and estimation of future trends.

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 Planning involves :-
 The Choice of technology

 Defining the work tasks

 Estimation of required resources

 Estimation of duration for individual tasks

 Identification of the relations among different tasks

 A good plan should answer questions like what is to be done?
How? where? by whom? and when?
 Every stakeholders in a project carries out their own planning
exercise and it is important to ensure coordination!
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 It should also be noted that planning are drawn up at each of
the stages or phases of a project, though different terminology
is used at times depending upon the stage of the project.

 For example:
• Initially when the project is in the planning during
conception stage could be referred to as a feasibility plan
• While in the engineering and execution stage, terms such as
the preliminary plan and construction plan, respectively,
are commonly used.
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Input and Output Process of Construction Planning
Outputs
Inputs -Activities
-Contract -
information Relationshi
-Drawings ps among
- activities
Specificatio -Method
n statement
-Available -
resources Planni Responsibili
-Bills of
quantities
ng ty
-Reporting
-Site reports levels
- -Project
Organizatio network
nal data diagram
- -Activities
Constructio duration
n methods -Activities
cost
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 Planning requires a rigorous effort by the planning team. A
planner should know the different categories of work and be
familiar with the terminology and knowledge used in general
practice.
 Also, the planning team should seek the opinion of experts
including actual construction experience. This helps produce a
realistic plan and avoids problems later on site.

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 In practice the task of planning and controlling of construction work is
considerably more difficult than might be expected. Much happens to
interfere with the smooth flow of work, for instance
 Delay occasioned by weather
 Material not being available
 Material being rejected
 Breakdown of equipment
 Unwillingness to co operate
 Inadequate detailing
 Other delay may caused by external influence such as decisions of building
permit authorities and lack of co- operation of statutory authorities
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 Project planning steps
1. Defining the scope of work:
2. Identifying activities involved and sequence of work
3. Generate the work breakdown structure to produce a complete list
of activities
4. Develop the organization breakdown structure and link it with work
breakdown structures (WBS) to identify responsibility
5. Determine the relationship between activities
6. Estimate activities time duration, cost, and resource requirement
7. Develop the project network
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 Type of Construction Project Plan

1. Time Plan
2. Resources Plan
 Manpower Plan
 Material Plan
 Construction Equipment Plan
 Finance Plan

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 Time Plan
 Time is the essence of all construction projects, and contracts often have
clauses outlining awards (Bonus payments) or penalties (as liquidated
damages) for completing a work ahead or later than a scheduled date.
 Several techniques for time planning are available, commonly used are:
i. Critical path method (CPM),
ii. Program evaluation and review technique (PERT)
iii. Gantt chart
iv. Precedence network analysis (PNA),
v. Line of balance technique (LOB),
vi. Linear program chart (LPC) and
vii. Time scale network (TSN).
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2. Resource plan

 A Resource Plan combines manpower, materials,

equipment, budget or cash flow, is also drawn up for a
project to show the overall requirement of the different
resources in the project.
 Such a plan can be prepared only on the basis of the
schedule of a project.
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The material plan involves
1) Identification of required materials, estimation of required
quantities,
2) Defining specification and forecasting material requirement
besides identification of appropriate source(s),
3) Inventory control,
4) Procurement plans, and
5) Monitoring the usage of materials.
prepared by Wondimagegn Gebeyehu
Machinery and Equipment Plan
 Modern construction is highly mechanized
• This the role of heavy equipment in ensuring timely completion of
projects
 Machines are used for mass excavation, trenching, compacting, grading,
hoisting, concreting, drilling, material handling, etc.
 Induction of modern equipment's could improve productivity and quality
besides reducing cost.
 At the same time it should be borne in mind heavy equipment's are very
costly and should be optimally utilized in order to be productive.
 It is also important that the characteristics of equipment are kept in mind
when drawing up an equipment plan.
prepared by Wondimagegn Gebeyehu
Manpower plan
 It focuses on :-
• estimating the size of work force,
• division in functional teams and
• scheduling the deployment of manpower.
• establishing labor productivity standards,
• providing suitable environment and financial incentives for
optimum productivity, and
• grouping the manpower in suitable functional team in order to
get the optimum utilization.

prepared by Wondimagegn Gebeyehu

Financial plan
 Large construction projects require huge investments, and a long time to

complete,
 It is obvious that all the money is not required at any one point in time.
 Contractors fund their projects from their Working capital and a
combination of avenue such as:
 mobilization advance for the project
 running account bills paid by the client
 secured advances against materials brought at site
 advance payments, and credits from suppliers against work done
prepared by Wondimagegn Gebeyehu