CE156 – CONSTRUCTION PROJECT MANAGEMENT

LECTURE No.1 – Introduction & Project Development Cycle

Introduction :

Construction Project Management is the overall knowledge in planning, coordination, and

control of a project from beginning to completion. It requires knowledge of modern
management as well as an understanding of the design and construction process.
Construction projects have a specific set of objectives and constraints such as a required
time frame for completion. While the relevant technology, institutional arrangements or
processes will differ, the management of such projects has much in common with the
management of similar types of projects in other specialty or technology domains such as
aerospace, pharmaceutical and energy developments.

The basic ingredients for a project management framework may be represented

schematically in Figure below. A working knowledge of general management and familiarity
with the special knowledge domain related to the project are indispensable. Supporting
disciplines such as computer science and decision science may also play an important role.
In fact, modern management practices and various special knowledge domains have
absorbed various techniques or tools which were once identified only with the supporting
disciplines. For example, computer-based information systems and decision support
systems are now common-place tools for general management. Similarly, many operations
research techniques such as linear programming and network analysis are now widely used
in many knowledge or application domains. Hence, the representation in Figure reflects
only the sources from which the project management framework evolves.

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 It is essential that all students of building have an awareness of the variable methods of
construction and application of materials in both traditional and industrial practice, in order
to adapt their career pattern to the diverse expectations of the industry.

PROJECT CONSTRUCTION TIMELINE :

AWARDING
O WNER’S NO MINATIO N TESTING &
CO NCEPT CO MMISSIONING

TEMPO RARY DLC & AS

STRUCTURES BUILT PLANS
PRO J PROPOSAL

START CO MPLETIO N

FAC & RELEASE

BIDDING
O F BO NDS
PRO JECT
EXECUTIO N
ARCHITEC T
CO NSULTANT PAT & PAC
MO BILIZATIO N

Legend :

PAT Provisional Acceptance Test

PAC Provisional Acceptance Certificate

DLC Defects Liability Completion Certificate

FAT Final Acceptance Test (optional)

FAC Final Acceptance Certificate

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GENERIC CONTENTS OF A PROJECT PROPOSAL

1. FEASIBILITY STUDY
a. An evaluation and analysis of the potential of the proposed project
based on extensive investigation and research to objectively and
rationally uncover the strengths and weaknesses of an existing
business or proposed venture, opportunities and threats as
presented by the environment, the resources required and
ultimately the prospects for success.
2. MASTER PLAN
a. Long Term Plan (5-10 yrs)
b. Mid Term Plan (3-5 yrs)
c. Short/ProActive Plan (1-2 yrs)
3. PROJECT SCHEDULE & S-curve
a. Primavera
b. MS PROJECT
4. FINANCIAL PLAN
a. EQUITY
b. BANK LOAN/FINANCIAL ASSISTANCE
5. TECHNICAL SPECIFICATION
a. Dimensions and/or unit weight/density of the product.
b. Max resistance/yield capacity or strength. For example, the specific
yield stress of deformed bars or compressive strength of concrete.
c. Full range of environmental conditions under which the product or
assembly must meet the specification. If reduced performance of
the product or assembly is acceptable at extreme temperatures and
humidity, clearly note that in the specification.
d. Tolerances on the performance of the product.
e. Establish third party workmanship standards or safety standards
that are to be applied to the product or assembly.
f. Detail the technical specifications that the product or assembly
must meet that are specific to that product or assembly. For
example, an electronic assembly would have specifications for
processing speed and product electronic interfaces, while a
mechanical subassembly would have specifications for rigidity and
load bearing capacity.
g. Specify a life for the product or assembly. If scheduled maintenance
or calibration of the product or assembly is acceptable, the
specification must state that. The specification must state the
acceptable conditions under which said maintenance or calibration
of the product or assembly is performed and how often said
maintenance or calibration is performed.

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6. APPROVED FOR CONSTRUCTION DRAWING
a. Architectural
b. Civil
c. Mechanical
d. Electrical
e. Plumbing/Utilities
7. BID DOCUMENTS & CONTRACTS
a. Invitation to Bid
b. Bid Price
c. Notice to Proceed
8. PROJECT OSH (OCCUPATIONAL SAFETY & HEALTH) PLAN
a. Project Safety Plan
b. Environmental/Health Plan
9. PERMITS (National, Local & Barangay)
a. National Permit
b. Local/Municipal/City Permit
c. Barangay Permit
10. ORGANIZATIONAL STRUCTURE of PROJ MGNT TEAM

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THE BUILDING TEAM

Building is essentially a team process in which each member has an important role to play.
Figure 1 shows the organization structure of a typical team for a large project and the
function of each member is outlined below.

1. Building Owner The client; the person or organization who finances and
commissions the work. They directly or indirectly employ all
other personnel, with particular responsibility for appointing the
planning supervisor (usually the architect) and nominating the
principal contractor.
2. Architect Engaged by the building owner to design, advise and ensure
that the project is kept within cost and complies with the
design.
3. Clerk of Works Employed on large contracts as the architect's on-site
representative. The main function is to liaise between architect
and main contractor and to ensure that construction proceeds in
accordance with the design. They can offer advice, but
directives must be through the architect.
4. Quantity Surveyor Engaged to prepare cost evaluations and bills of quantities,
check tenders, prepare interim valuations, effect cost controls
and advise the architect on the cost of variations.
5. Consulting Engineers Engaged to advise and design on a variety of specialist
installations, e.g. structural, services, security etc. They are

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 employed to develop that particular aspect of the design within
the cost and physical parameters of the architect’s brief.
6. Principal or Main Contractor Employed by the client on the advise of the
architect, by nomination or competitive tendering. They are
required to administer the construction programme within the
achitect’s direction.
7. Contract's Manager or Site Agent On large projects, the main contractor's
representative on-site, with overall responsibility for ensuring
that work proceeds errectively and efficiently, i.e. in accordance
with the design specification and to I irne. Sometimes known as
the general foreman, but this title is more appropriate Oil small
to modest size contracts.
8. Surveyor Employed by the main contractor to check work progress and
assist the quantity surveyor in the preparation of interim
valuations for stage payments and final accounts. May also be
required to measure work done for bonus and subcontractor
payments.
9. Estimator Prepares unit rates for the pricing of tenders and carries out
pre-tender investigations into the cost aspects of the proposed
contract.
10. Buyer Orders materials, obtains quotations for the supply of materials
and
11. Accountant Prepares and submits accounts to clients and makes payments
to suppliers and subcontractors. May also have a costing
department which would allocate the labour and material costs
to each contract to assist with the preparation of accounts.
12. Administrator Organizes the general clerical duties of the contractor's office
for the preparation of contract documents and payment of
salaries, subcontractors and suppliers invoices, insurances and
necessary correspondence.
13. Assistant Contract manager Often a trainee in the process of completing
professional examinations. Assist with the general responsibility
for administering site proceedings
14. Nominated Subcontractor Engaged by the client or achitect for
specialist construction or installation works, e.g. lifts,
airconditioning, etc.
15. Domestic Subcontractor Employed by the principal contractor to assist in
general construction,. Eg. Ground workers, bricklayers etc.
16. Operatives The main workforce on-site, includes craftsmen,
apprentices and labourers.

The size of the building firm or the size of the contract will determine the composition of
the construction team. For medium sized contracts some of the above functions maybe
combined, i.e. that of the surveyor and estimator. Furthermore many design and build
practices have been created by combining the professional expertise of architect, builder
and consultants. The objective is to improve communications and create better working
relationships to provide the client with a more efficient and cost effective service.

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JAPANESE/AMERICAM MANAGEMENT STYLE

A Japanese company (Toyota) and an American company (General Motors)

decided to have a canoe race on the Missouri River. Both teams practiced
long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for
the crushing defeat. A management team made up of senior management was formed
to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person
steering, while the American team had 8 people steering and 1 person rowing.

Feeling a deeper study was in order, American management hired a consulting

company and paid them a large amount of money for a second opinion. They advised,
of course, that too many people were steering the boat, while not enough people were
rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the
Japanese, the rowing team's management structure was totally reorganized to 4
steering supervisors, 3 area steering superintendents and 1 assistant superintendent
steering manager. They also implemented a new performance system that would give
the 1 person rowing the boat greater incentive to work harder. It was called the
'Rowing Team Quality First Program,' with meetings, dinners and free pens and a
certificate of completion for the rower. There was discussion of getting new paddles,
canoes and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by TWO miles.

Humiliated, the American management laid off the rower (a reduction in workforce) for
poor performance, halted development of a new canoe, sold the paddles, and canceled
all capital investments for new equipment. The money saved was distributed to the
Senior Executives as bonuses and the next year's racing team was "out-sourced" to
India

Sadly, the End.

However, sad, but oh so true! Here's something else to think about:

Ford has spent the last thirty years moving all its factories out of
the US, claiming they can't make money paying American wages, while Toyota
has spent the last thirty years building more than a dozen plants inside the US.
The last quarter's results: Toyota makes 4 b illion in profits while Ford racked up
9 billion in losses. Ford folks are still scratching their heads.

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