CEE 498 Construction Project Management

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    Lecture 14:

    Project Managment

    CEE 498 Construction

    Project Management

    Jeffrey S. Russell, P.E., Ph.D.

    Construction Engineering & Management

    Civil & Environmental Engineering

    University of Wisconsin-Madison

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    Structure

    I. Basics

    II. Introduction to the management system

    III. Pre-construction planning: planning,organizing, and staffing

    IV. Pre-construction planning: developing

    the project planV. Pre-construction planning: planning for

    production and support

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    Structure (Contd)

    VI. Cost and risk control

    VII. Policies and procedures

    VIII. Purchasing and receivingIX. Subcontractor managment

    X. Project layout

    XI. Project start-up and closed-out

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    I. Basics

    A. Five types of management - See Attachment #1

    B. Project management definition - the art of

    directing and coordinating human andmaterial resources throughout the life of aproject by using modern management

    techniques to achieve predeterminedobjectives of scope, cost, time, quality, andparticipant satisfaction - See Attachment #2

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    I. Basics (Contd)

    C. Five Ms of project management

    1. Material

    2. Money3. Manpower

    4. Machines

    5. Management

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    I. Basics (Contd)

    D. Functions of project management forconstruction

    Specifying project objectives and plans whichinclude the delineation of scope, budgeting,scheduling, setting performance requirements,and selecting project participants

    Maximizing efficient resource utilizationthrough procurement of labor, material, andequipment according to the prescribed

    schedule and plan

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    I. Basics (Contd)

    Implementing various operations throughproper coordination and control of planning,design, estimating, contracting, andconstruction in the entire process

    Developing effective communication andother mechanisms for resolving conflicts

    among the various project participantSee Attachment #3

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    I. Basics (Contd)

    E. Managers had better assume that theskills, knowledge, and tools they will have

    to master and apply fifteen years henceare going to be different and new. Onlythey themselves can take responsibility for

    the necessary learning and relearning,and for directing themselves.

    - Peter F. Drucker

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    I. Basics (Contd)

    F. Seagull Management

    Fly in

    Make a lot of noiseDump on everybody

    Fly off somewhere

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    II. Introduction to themanagement system

    A.A management system is an orderlyarrangement of functions through which

    managers get things doneB. FunctionsPlanning - Working out a course of actionOrganizing - Putting together interdependent parts

    Staffing - Locating, placing, training, promotingpersonnelControlling - Checking for deviations, corrective

    action

    Directing - Giving orders and instructions

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    II. Pre-construction planning:Planning, Organizing, and Staffing

    A. Introduction to planning

    Construction projects vary so much that each

    project must be planned individually

    Planning is accomplished in three steps

    Establishing goals

    Determining what must be done to achieve the goalsEffective use of resources

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    II. Pre-construction planning:Planning, Organizing, and Staffing

    B. Pre-construction planning

    C. The planning meeting(s)

    D. Organizing and staffing

    -See Attachment #4

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    IV. Pre-construction planning:Developing the project plan

    A. Developing the project plan

    B. Developing the project schedule

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    V. Pre-construction planning:Planning for production and support

    A. Initial Crew Analysis

    B. Test models and pilot studies

    C. Planning for support activities

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    VI. Cost and risk control

    A. Introduction to control and control systems

    B. Labor cost control

    C. Risk control: the importance of

    documentation

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    VII. Policies and procedures

    A. Help establish how thing which have to

    be done are going to be done

    B. Developing policies and procedures for a

    jobsite

    C. Developing policies and procedures for

    administering paper work

    D. Project filing procedures

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    VIII. Purchasing and receiving

    A. Procuring - Locating, buying, ordering,and receiving materials, supplies, and

    equipmentPurchasing - involves locating and buying of

    materials, supplies, and equipment; there is agreat need for discipline in the purchasingprocess

    Purchase orders

    Responsibility for purchasing

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    VIII. Purchasing and receiving(Contd)

    Terms and conditions of the purchase to bespecified in the purchase order

    Purchase control systemOffice and field purchasing

    Short form P.O. (used mostly for fieldpurchases)

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    VIII. Purchasing and receiving(Contd)

    B. Expediting - Coordinating the orderingand receiving of purchased items

    Responsibility for expediting must be clearlydefined

    Expediter must have ALL informationrequired

    Expediting is a key coordination function; itrequires experience and skills

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    VIII. Purchasing and receiving(Contd)

    C. Receiving materials and supplies - 5 steps

    Jobsite unloading - be careful to minimize

    handlingMaterial inventory - count!

    Material inspection - for damages,conformance with the order

    Delivery receiving report

    Logging in delivery

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    IX. Subcontractor management

    A. Issuing a subcontract

    A contract creates obligations for both

    parties; to deal effectively with allcontractual obligations, all team membersmust fully know and understand the

    contract

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    IX. Subcontractor management(Contd)

    B. Subcontractor management: a big partof the job - 5 major areas

    Analyzing bids and issuing subcontractsReview of subcontractor site requirements

    Processing submittals and change orders

    Scheduling and coordinatingControlling quality, safety, and payments

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    IX. Subcontractor management(Contd)

    C. Subcontractor coordination meetings

    Purpose

    Keep communications between GC and subs openand candid

    Maintain communications among the subs

    give all contractors an opportunity to discuss their

    problems and learn about the problems others arefacing

    Help to schedule and coordinate the project

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    IX. Subcontractor management(Contd)

    Types of meetings

    Management meetings

    Monthly or bi-monthly meetings with a set agenda for an

    in-depth status review of job progress, schedule,

    submittals, quality, and safety, and any special problems

    Attendance - Owner, A/E, project manager,

    superintendent, and major subs

    Minutes should be taken and sent to all who attended

    plus everybody involved in the subjects discussed

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    IX. Subcontractor management(Contd)

    Weekly project meetings

    These meetings are centered primarily onscheduling and coordination, but can also cover

    cleanup, quality, safety, etc.Pre-construction planning meetings

    To discuss scope of work, long lead time items,material handling and storage requirements, and

    activity duration

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    IX. Subcontractor management(Contd)

    D. Subcontractor defaultBe sensitive to early warning signs

    Follow notification requirements ifsubcontractor performance falls belowacceptable standards

    Follow contract provisions exactly for

    termination proceduresTry to work problems out with banks, bonding

    company, etc., so no new subcontractor has tobe employed

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    X. Project layout

    A. Organizing the project layout

    Proper placement of yard, office, roads,

    material storage and fabrication60% to 70% of all labor cost to install

    materials is spent to get the materials to the

    location where it is installed

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    X. Project layout (Contd)

    Items to consider

    Site access and security, number and location ofentrances

    On-site access roads: materials, drainage,maintenance, etc.

    Job office: location and layout

    material storage areas: include subs!

    Stockpiling of dirt for backfill

    Fabrication areas

    Trash removal

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    X. Project layout (Contd)

    B. Material storage and protectionStoring materials so they can be found;

    record the locationProtection from weather; follow

    manufacturers instructions

    Allow for mechanized handling

    Protection from theft; lights, locks, securitydevises

    Controlling its use; define responsibilities forcontrol

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    X. Project layout (Contd)

    C. Controlling small tools and supplies

    Limit access to small tools and supplies

    Limit the way they can be obtainedD. Material handling and fabrication

    Mechanize when possible

    Use assembly line techniques: plan thelocation, plan the flow of materials, plan thespecial tools and equipment needed

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    X. Project layout (Contd)

    The secrets of efficient prefabrication

    Minimize the moves for materials and workers

    Minimize the hand labor

    Remember that the shortest distance betweentwo points is a straight line

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    XI. Project start-up andclosed-out

    A. Start-up

    Pre-construction planning, organizing and

    staffing have been completed and thenecessary permits have been obtained

    Mobilization: the initial ordering andreceiving of material, equipment and

    manpower, and the locating of the offices andtrailers to get the project under way

    Use start-up checklists!!

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    XI. Project start-up andclosed-out (Contd)

    B. Close-out

    Closing out a project is an essential activity

    of project management. A job is not closedout until it is 100% accepted by the owner.Momentum and efficiency established in the

    construction phase should not be lost tocomplacency and inefficiency when itcomes to close out the project