Chapter 1 Cc603

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Chapter 1

The Concept of Project Management

CC603- PROJECT MANAGEMENT

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Unique Building

Around TheWorldC

hapter1-ManagementConcept

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Problem ThatWe Face in

ConstructionIndustry

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Literature ReviewUAE researchers perspective

!ra"ings preparation and approval

Inadequate and poor planning

#ac$ o% quic$ decision ma$ing %rom o"ner

#ac$ o% manpo"er

#ac$ o% proper supervision and management#ac$ o% labour productivity

#ac$ o% labour s$ills

#ac$ o% availability o% equipment and material

!i&culties in ta$ing approvals %rom govermentauthorities and committees

Contractor's (nancing problems

Changes in materials

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Chapter1-ManagementConcept

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E!"N"T"ON O! MANAGEMENT

the process of reaching organizational goals by woring with an!thro"gh people an! other organizational reso"rces#

Certo# 1$%&

the process of planning an! !ecision-maing$ organizing$ lea!ing an!controlling an organization#

Gr'ff'n# 1$%(

the process of ac%"iring an! combining h"man$ financial$ informationalan! physical reso"rces to attain the organization&s primary goal ofpro!"cing a pro!"ct or ser'ice !esire! by some segment of society#

Pr'ng)e# Jenn'ng* an+ ,ongnecer# 1$%%

the process with an! thro"gh other people to achie'e organizationalob(ecti'e effecti'ely "sing limite! reso"rces in fl"ct"ate or !ifferentsit"ation#

Ro.ert /re'tner# 00$

)

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MANAGEMENT CONCEPT

An efort to use the limited

resources to achieveorganizational goals efectively

Chapter 1 - Management Concept*

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A2"C COMPONENT O! MANAGEMENT

Chapter 1 - Management Concept+

Figure )*) Basic Component o% +anagement

'fferent2'tat'on

4or

5'th throgh

other peop)e

,'m'te+

Re*orce*

"mpre**'7e

an+ Eff'c'ent

'ffe

rent2't3at'on

'ffe

rent2

't3

at'onOrgan'8at'ona)

Goa)*

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Levels o Management

1,

Chapter1-ManagementCo

ncept

t consists of boar! of !irectors$ chief e.ec"ti'e

or managing !irector/ 0he top management isthe "ltimate so"rce of a"thority an! it manages

goals an! policies for an enterprise/ t !e'otes

more time on planning an! coor!inating

f"nctions/

0he !epartmental managers constit"te mi!!le

le'el/ 0hey are responsible to the top

management for the f"nctioning of their

!epartment/ 0hey !e'ote more time to

organizational an! !irectional f"nctions/

ower le'el is also nown as s"per'isory

operati'e le'el of management/ t consists ofs"per'isors$ foreman$ section officers$

s"perinten!ent etc/ 0hose e.ec"ti'es whose

wor has to be largely with personal o'ersight

an! !irection of operati'e employees

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IMPORTAN! O"

MANA#!M!NTa$ Ac%uisition and utilization o resources +anagement per%orms e&cient acquisitione,ective development and utili-ation andproper coordination o% resources

&$ !nvironmental ada'tation +anagement adopts organi-ation to changing

environmental %orces*

c$ #oal achievement

+anagement achieves goals by balancing therequirement o% .obs and people*


ncept

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d$ Pro&lem solving

+anagement solves organi-ation problems*It identi(es and evaluates variousalternatives and choose appropriate courseo% action*

e$ Perormance control +anagement measures and evaluates the

actual per%ormance*

$ (ocial res'onsi&ility

+anagement anticipate and act be%ore handto social e/pectation


ncept

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A2"C MANAGEMENT ACT"9"T"E2

Chapter 1 - Management Concept13

Figure )*0 Basic +anagement Activities

P,ANN"NG

"MP,EMENTAT"ON

CONTRO,,"NG

Compare .et5een progre** an+ p)ann'ng Report'ng 2ett)e pro.)em*

'*tr'.te re*orce*

2per7'*e 'mp)ementat'on Coor+'nate act'7't'e* Mot'7ate 5orer*

ef'ne o.ject'7e* ef'ne re*orce* nee+e+

'n the project e7e)op *trateg:

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E!"N"T"ON O! PROJECT

)ni%ue set o coordinated activities* with de+nite starting and+nishing 'oints* underta,en &y an individual or organization tomeet s'eci+c o&-ectives within de+ned time* cost and 'erormance'arameters using limited resources

Punmia P. dan /handelwal /./* 0121

A novel underta,ing or systematic 'rocess to create a new 'roduct

or service the delivery o which signals com'letion. Pro-ects arety'ically constrained &y limited resources.

A uni%ue venture with a &eginning and an end* underta,en &y'eo'le to meet esta&lished goals within de+ned constraints o time*resources and %uality.

(ystematic 'rocess or achieving a distinct o&-ective. The 3system4consists o a 'eriod o 'lanning ollowed &y a 'eriod o 4doing4* andthis system is re'eated at every level o detail. These two 4'eriods4are the genesis o the 'ro-ect lie cycle.

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E!"N"T"ON O! PROJECT


Project Character'*t'c*

ef'ne+ goa)*

,'m'te+per'o+ of T'me

;n'

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T=PE O! CON2TR;CT"ON PROJECT


Figure )*2 Type o% Construction Pro.ect

- 2'ng)e-fam'):

home*- M)t'n't

to5n ho*e*- Apartment*- Con+om'n'm*- etc

Con*trct'on Project

Re*'+ent'a)

con*trct'on

>ea7:

con*trct'on

')+'ng

con*trct'on

"n+*tr'a)

con*trct'on

- Reta') *tore*- 2choo)*- ;n'7er*'t'e*- >o*p'ta)- Mo*ar.or*# etc

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PROJECT CON2TRA"NT2

Chapter 1 - Management Concept1)

Figure )*3 Pro.ect Constraints

Re*orce*

?a)'t:

Co*tT

'me

,a52afet:

Performancean+ Techno)og:

En7'ronmenta)"**e*

Goo+ Re)at'on*h'p 5'th C)'ent*

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E!"N"T"ON O! PROJECT MANAGEMENT

lanning$ controlling an! coor!inating a pro(ect from beginning stage to

completing the owner&s nee! which ens"re that the pro(ect finish on time$

on b"!get an! also on %"ality/

The Chartere+ "n*t'tte of ')+'ng# ;/

0he process which pro(ect manager plan an! control all the acti'ities in a

pro(ect$ "se an! !istrib"te all of reso"rces money$ time$ information$

material$ an! e%"ipment to achie'e goals$ stan!ar!s$ an! ob(ecti'es that

pre!etermine! in the beginning of pro(ect stage base! on time$ cost$

reso"rces an! %"ality/

Chapter 1 - Management Concept1*

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E!"N"T"ON O! PROJECT MANAGEMENT


1+Figure )*4 Pro.ect +anagement

Project@*

goa)*

Re*)t

- On t'me- On .+get- On

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;T"E2 O! PROJECT MANAGER

Ma,e a re'ort to 'ro-ect coordinator

hec, the %uality o wor, and saety on construction site

Arrange all the acilities at the construction site &eore wor,commences

omunicate with clients and consultans

Im'lement %uality control 'rocedures

Attend all meetings with clients and consultants Pre'are and 'resent the main 'rogram to the client

onducting meetings o su& contractors and su''liers

Monitor the wor, 'erormed &y su& contractors

Overall 'lanning* coordinating the activities o theconstruction site* site management and e5'enditure

Monitor the 'rogress o wor, and cash 6ow

Leading the team o engineers* %uantity surveyors* landsurveyors* %uality coordinator at the site and su'ervise theconstruction 'ro-ect.

2,

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CONCEPT O! PROJECT MANAGEMENT

ET4EENB

a TRA"T"ONA, 2=2TEM

The designer does not have direct lin$ "ith the specialist and allcommunication is via the main contractor "ho in many cases "ill notaccept design liability*

This results in a grey area o% responsibility and liability as in%ormation ispassed %rom one to the other*

In general5 the designer or the architect is the leader o% the pro.ect and

represents the client to implement the design process* The architect becomes more o% a 6surrogate client' and ta$es on the

responsibility to ma$e sure the pro.ect is delivered on time and on budget*

The traditional method o% procurement5 the client appoints independentconsultants5 on a %ee basis5 "ho %ully design the pro.ect and preparetender documents upon "hich competitive bids5 o%ten on lump sum basis5

are obtained %rom contractors* The success%ul tendered enters into direct contract "ith the client and

carries out the "or$ under the supervision o% the original designconsultants*


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In the traditional procurement5 the pro%essionals are empo"ered

to use best practice de(ned by their o"n pro%essional bodies andeducation*

The basic "or$%orces in general play an inactive role to"ards thedesign and planning process*

The basic "or$%orces here "or$ consistently i% there are nointerruptions in the production process*

7uch an environment generally encourages an adversarial

attitude among the design teams* In terms o% cost bene(ts5 reduction o% up to 189 can be

achieved* While a reduction o% 289 in delivery5 time can beachieved but there is a little change in the quality o% the product*

Traditional 'rocurement system characteristics 7

#ong construction periodConsecutive organisation

Clear contracting relations


ncept

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Procurement (trategy

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CostCost

CheapestCheapest

conomicalconomical

7easonable7easonable

8"ality8"ality

9est9est

:!e%"ate:!e%"ate

0ime0ime

;astest;astest

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Time

!ue to its linear or sequential approach5 the traditionalprocurement system has been identi(ed as the slo"est pro.ect

delivery approach*:o"ever5 this approach is more pre%erable because it providesclear accountability and better design and construction control bythe client*

7ince the pre;contract stage o% this system is longer5 more time isavailable %or the client and the pro.ect team to scrutini-e andrevie" the design be%ore construction*

ost

This system provides more price certainty to the client at the veryearly stage o% the pro.ect*

It also gives the client (rmer and more competitive price because

the design plus the complete "or$ing dra"ings have been %ullydeveloped and detailed out prior to tendering*

It eliminates any design or construction ambiguity or uncertainty"hich o%ten causes the contractors to unnecessarily in

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In the case "here bill o% quantities is used5 the bidding tend to be more%air as such the pro.ect cost is also lo"er*

The system also better cost control as such cost increase due tovariations is

minimi-ed5 but "or$s "ere o%ten disrupted "hen there are too manyvariations=due to un%oreseeable problems> and it tend to cause the cost to in*

8uality

The traditional procurement system also provides a high degree o% quality

certainty and %unctional standards* It is also a system that provides an opportunity %or the building o"ner to

combine the best design5 management and construction e/pertisebet"een consultants and contractor*

It also provide more time %or client and consultants to revie" and %ullydevelop the design and speci(cation thus allo"ing better documentationpreparation*

:o"ever5 this system does not provide opportunities %or contractor tocontribute his construction technology and management e/pertisebecause they only come into the scene a%ter the design has been %ullydeveloped and approved*


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The #inear or 7equential Process o% the Traditional Procurement 7ystem

Chapter1-ManagementC

oncept

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&. 9!(I#N AN9 :)IL9 AN9 T)RN/!; (;(T!M(

Time

!esign and build and turn$ey pro.ect procurement system are called @%ast;trac$ing or @build;it;%ast pro.ect delivery system "here the design andconstruction are integrated*

The design %ree pre;tender process allo" %or earlier construction date* It alsoallo"s the process o% detail design and construction to run almost in parallel and

concurrently to each other5 thus reducing the overall pro.ect developmentperiodconsiderably*

As a single entity responsible %or both the design and construction5 thecontractor is able to control not only the construction time but also the timereserved %or the design o% the pro.ect5 thus reducing the overall contractduration*

In this type o% procurement system5 the contractor has al"ays been selectedbased on its vast e/perience5 $no"ledge and competency in construction5 as

such by giving it the design responsibility5 the contractor very o%ten able toreduce construction time*

This is done by him rationali-ing the design and construction process and siteactivities*


oncept

ost

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ost

Although the cost is (/ed at the tender stage and is sub.ect to designchanges5 it is o%ten higher than the traditional contracting system*

Apart %rom the %act that very limited contractors are invited to submittenders5 the lac$ o% design and speci(cation detailing during tender5 has

made the contractors to .ac$ up the price to allo" %or many uncertainties* Thisis because once accepted5 the tender price "ill be the (nal contract sum*

It is not sub.ect to change5 unless there are variations required or instructedby the client* 7uch additional cost cannot be avoided because under thisprocurement system the contractor "ill to ta$e much o% the (nancial ris$*

:o"ever5 as many have claimed5 the signi(cant cost saving in this type o%

procurement system is made through the reduction o% the overalldevelopment period*

The cost o% contractor's uncertainty can be set;o, by the reduction in loaninterest and early (nancial return or bene(ts*

Cost saving may also be made "hen the contractor applies his construction$no"ledge and e/perience to simpli%y design and "or$*

At the same %urther cost saving can be made "hen the client o,er thecontractor some %orm o% incentive i% he is able to save a signi(cant amount o%cost*

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8uality

The integration o% design and construction allo"s the contractor to

utili-e his $no"ledge and e/perience to develop much compacted

and coherent "or$ program and to develop more e&cient design andpro.ect control programmed*

At the same time it allo"s the contractor to be innovative to %urther

improve the construction process and techniques thus allo"ing %orbetter "or$ and process quality*

:o"ever5 it is more o%ten %ound that the quality o% "or$ under thiscontracting system tend to be questionable*

The assigning o% the designing and construction to a contractor has

caused the client to loose control o% the design and supervision o% the

"or$*

This is especially so "hen the client does have his o"n team o%

consultants* As %ar the contractor is concerned5 they tend to cutcorners in order to ma/imi-e their pro(t5 especially "hen they %eelthat they have under price their quotation during "hen tendering %or

the "or$*


oncept

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The Integrated Process o% Pro.ect !esigning and Construction in the!esign and Build Procurement 7ystem


oncept

3,

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Procurement (trategy

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oncept

Traditional deliveryTraditional delivery !esign and build system!esign and build system

Turn$ey5 Pac$age dealTurn$ey5 Pac$age deal

ClientClient

Documents

Chapter 1 Cc603