1

PROJECT MANAGEMENT
(CENG 6101)

1.0 INTRODUCTION
BY
TADESSE AYALEW (PHD)

MSc. IN CONSTRUCTION TECH. & MANAGEMENT, GONDER

UNIVERSITY FEB 2020
 Course Description
2

Duties and responsibilities of main parties in Civil engineering; Initial

project planning: pre-feasibility and feasibility studies; Selection and
contractual agreement with consultant; Selection and contractual agreement
with contractor; Construction contract types; Contract document; Sub-
contracting; Bidding process; Variation; Claims; Arbitration; Insurance in
construction industry; Health and safety at work; Professional ethics in Civil
engineering; Case studies on selected topics. Preparation and presentation
of term paper on a selected topic is mandatory.
 Course Outline
3

1. Introduction 3. Health and safety at work

Overview of Construction Industry
 Causes of accident in construction
Main Player in Construction and their
 Preventive measures
roles
Introduction to PMBOK 4. Insurance in construction
2. Construction Project Management industry
Overview of Project Life Cycle
 Introduction
Pre-Project Phase
 Insurance services for construction
Planning and design phase
Contractor selection phase 5. Professional ethics in
Project Mobilization phase construction
Project operation phase
Project Closing and Termination
 III) Assessment:
4

 Term paper on Selected topics

=20-25%
 Other Assignments/Project
=20-25%
 Final Examination
=50-60%
 IV) Reference
5

1. Daniel W. (2006) Construction Management, 3rd Ed.

2. Alan G.& Paul W (2004),Construction Management.

3. Frank H. & Ronald M. (2006). Modern Construction M Management.

4. Richard etal. (2006) Project Mgt. in construction, 5th Ed.

6 1. Introduction
Content of the chapter
 Construction industry and its role focusing on
Ethiopian Construction Industry
 Main players and participants, roles and relation
ship in construction
 Introduction to PMBOK
 01 Construction Industry-Global Picture
7

Construction is one of the largest

sector in the world economy
with,
 01 Introduction
Construction in Africa (Infrastructure Needs)
8

Less than 40% of Road freight is 4

Population has Access times more
to Electricity expensive,
Power costs 14 US
About 1/3 of the cents per Kwh /5 –
Only 5% of
rural population Agriculture is 10 US
has access to under irrigation Mobile telephony
roads Infrastructure costs USD 12 /USD
8 elsewhere
Deficit In
Four out of ten Africa Access to clean Investment needs
Africans has water at about 15% of GDP per
access to mobile 65%
phones,
year,

34% of the USD 93 billion per

population having year over the next
access to improved decade
sanitation
 01 Introduction
Construction in Africa (Infrastructure Supply with Respect to Other Developing Countries)
9

International Comparison of Infrastructure Supply Condition

700
Paved Road
600 Mobile density

500 Electricity Coverage

Total Road density

400
Internet density
300
Improved water
200
Fixed line density
100 Generation capacity

0 Improved sanitation
 01 Introduction
Construction in Africa (Construction Trends between 2013 & 2017 )
N umber of Projects

Project Value
10
Project Value
400
Number of Projects
350
350
300

300 250

200
250
150

200 100

50
150
0
97 82
45 33
100 24 21 20

er r t g te re s as
po in ta tu er
50 ow s in s c t h G
/P an M lE ru O nd
rg
y
Tr ea a st i la
e R fr O
En In
0 e r
at
W
 01 Introduction
The Ethiopian Context- From the Content Perspective
11

13 Years
Program
 01 Introduction
The Ethiopian Context- From the Content Perspective
12

Ethiopia (the sixth largest economy on the continent in 2017) has consistently spent over the required 30% of GDP

on GFCF, spending the equivalent of 40% of GDP in 2016. This level of spending is expected to remain, reducing

marginally to 39.2% of GDP in 2020.

 Contribution of Ethiopian construction industry to
GDP between 2002-2008
13

1995 1996 1997 1998 1999 2000

Industry/Year 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Agriculture, Hunting and Forestry 44.9 47.0 47.4 47.1 46.3 44.6
Animal Farming and Hunting 14.8 14.3 13.5 12.7 12.3 11.8
Manufacturing 5.5 5.2 5.2 5.2 5.0 4.8
Electricity and Water 2.4 2.3 2.2 2.1 2.2 2.2
Construction 5.7 6.1 5.8 5.7 5.7 5.7
Whole Sale and Retail Trade 12.5 11.8 11.8 12.5 13.1 13.4
Hotels and Restaurants 2.4 2.3 2.3 2.4 2.7 3.0
Transport and Communications 5.9 5.7 6.1 5.8 5.6 5.8
Public Administration and 4.8 4.3 4.2 4.0 3.7 4.2
Defense
Education 2.8 2.8 2.8 2.8 3.0 3.1
Health and Social Work 0.9 0.9 1.0 1.0 0.9 1.0
 • A study by Wubshet Jekale in 2004 on the other hand indicate that
close to 60% of the capital budget is allocated to the construction
14
Capital Budget Expenditures b/n 2005-2008 for Various Sectors
(Tadesse 2009)
1999(2005/06) 2000 (2006/07) 2001 (2007/08)
ory % of road % of road % of road
15
t eg ar budget in budget in budget in

Ca d ye
comparison comparison comparison
with with with
an Budget ED TCE Budget ED TCE Budget ED TCE

Economic Development 13760.4 17325.9 21291.3

(ED)
Agriculture 4043.5 4818.7 5496.9
Natural resources 2055.7 2607.4 3372.5
Mining & energy 1300.0 1379.1 1386.6
Trade Industry & tourism 247.9 369.9 10053.0
Road construction 5897.3 42.86 26.13 7866.1 45.40 28.45 10053. 47.22 28.7
Transport & communications
216.0 284.7 468.7
Social development 7814.0 9190.1 12102.9
Education 3628.0 3700.1 5711.0
Health 1662.5 2276.2 2678.5
Urban dev't & housing 2379.2 2987.0 3540.2
Social welfare 22.9 12.4 11.1
Culture & sport 121.5 214.4 162.1
General development 992.0 1136.5 1579.3
Total capital expenditure 22566.5 27652.5 34973.5
(TCE)
 01 Construction Industry-Ethiopian Context-
Importance and Challenges
16

• Ethiopian Construction Industry

 Consumes about 60% of the capital
budget
 9.5 % GDP Contribution
.
 11% Anual Growth
 Second largest Employing Industry
with 1.8 M job oportunity
• Despite its significant importance and
achievements in the last two decades,
the Ethiopian construction industry has
encountered challenges

Tadesse A, PhD Student, Centralelille 12/19/2020

 01 Construction Industry-Ethiopian Context
17

• Furthermore, shortage of
competent human resources
together with lack of
effective project
management system and
the change resistant
behavior of the industry has

resulted in Low
Productivity.
 1.1.2 Historical Development of Construction/CM in
Ethiopia
18

 Historical records asserted that

Ethiopia was one of the
technological advanced country
in Africa since 400 A.D with
civilization which is
symbolized by the following
remains of marvelous
architectural/construction
works;
1.1. 3 Modern Construction in Ethiopia

 Until few decades ago major construction

works in the country were executed mainly
by expatriates taking the lead, as an example
the design and construction/management of
the following major construction were lead
by foreign professionals with the
participation of local once
 Gradually Ethiopian professional becoming
experienced and build confidence in
undertaking such tasks;
 The Addis Ababa Municipality Hall
20

Gradually Ethiopian professional becoming experienced

and build confidence in undertaking such tasks;
Cont…

 The exposure of Ethiopian professional working with foreign

companies enable them to share the experience of their
international counter parts, as a result of this;
 Domestic Construction and Consulting firms (especially in the
private sector) Increased significantly
 Efforts were made to create a conducive environment that enables
domestic companies to play the leading role in the industry
 In the mean time the capacity of some of the following
government institution was also being strengthen
Cont…

 Ethiopian roads authority (ERA)

 Addis Ababa city roads authority (AACRA)
 Water works construction enterprise (WWCE)
 Building design and construction (BDE) and
 Transport Construction and Design (TCDE)etc.
 The overall effort made towards advancing domestic companies
capacity enables domestic firms to design, construct and mange the
construction of some of the following projects successfully
 Dembel City Center market complex,
23
 Police commission building
24
 The bridge over Baro river
25
Based on (Jekale 2004), Ethiopian construction industry can be viewed in six distinct
periods for its evolution. the following table summarize these periods and their feature.

26
 1.1.4. Major Construction Activities for the Last 20
Years
27

01 Building 13 + 10 Universities 03 Energy 60,000 MW Potential

More than1000 Heath Planned to Achive

center 17MW by 2020
5 Projects Under
About 450,000
Construction
Condominium housses
8,397MW

02 Road $5 Billion Spending in 13 04 Rail Way Regional Corridor

Years Djibouti-656Km, Bedele-
366KM,
70% Growth in road Woldia-256 km
density Mekele-556 Km
Road condition imroved Addis Ababa Light Rail
from 22% to 54% Transit
 Assignment
28

Asses the structure Ethiopian construction industry in terms

Main programmes of
 project performance criteria,
of;
1.
monitoring and management ( cost
construction industry
and time, productivity, quality,
development
safety and health, environmental
 institution building and performance)
administrative framework  other criteria, including stakeholder
 legal and contractual issues, and involvement
industry procedures and practices
2. Achievements and strengths of
 resource development (Human and development efforts
Materials)
3. Problems and challenges of
 technology development, including
industry development effort
information and communication
technology 4. Plans and future programmes and
initiatives

Submission Date
corporate development February 30, 2020
[email protected]
 1.2 Key Players Their Role and Relationship in
Construction
29

 The management of construction is an enterprise that involves

many people with diverse interests, talents and backgrounds.
 The owner, the design professional and the contractor are the
primary parties involved,
 but others, such as subcontractors, material suppliers, bankers,
insurance and public agency officials, are vital elements of the
project team whose interrelated roles must be coordinated to
assure a successful project.
 Too Many Participants
30 Job
Supervisors Subs
Corporate
Management
Owners

Field Labor
RE Agents

Suppliers

Design
Center

Sales &
Marketing
Manufacturers

Accounting
Banks &
Mortgage
Lendors

Scheduling

Local
Municipalities

Purchasing Estimating
 Main players and their role
31
 Main Players and Their Role
32

 The Client:
 Is the initiator and owner of the project (public and
private)

 The Consultant:
 The one who transfers the wish of the owner into
realizable form and makes the study, design and possibly
the supervision.

 The Contractor:
 Is the one who performs the work.
 Cont…
33

 Insurance Companies: they Provides bonds

 Bid bond
 Performance bond
 Payment bonds (Advance payment/labor/suppliers payment bond)

 Banks:
 Banks provide the working capital for contractors need to build the
project. They also provide bonds for bid, payment and performance.

 Suppliers (equipment and materials)

 Permitting agency
 Public etc
1.3 Introduction to PMBOK

 The Project Management Body of Knowledge is the sum of

knowledge within the profession of project management.

 As with other professions such as law, medicine, and accounting,

the body of knowledge rests with the practitioners and academics

who apply and advance it.

 The complete Project Management Body of Knowledge includes

proven traditional practices that are widely applied, as well as

innovative practices that are emerging in the profession, including

published and unpublished material

 1.3.1 Introduction to PMBOK
35

The project management body of knowledge

(PMBOK) is organized into three sections

Section I:The Project Management

Framework
 The Project Management Framework,
provides a basic structure for understanding
project management
 Introduction, defines key terms and
provides an overview for the PMBOK
guide
 Project Life Cycle and Organization,
describes the environment in which
Section II: The Standard for Project Management
of a Project

 The Standard for Project Management of a Project, specifies all

the project management processes that are used by the project
team to manage a project and;

 It describes the five required Project Management Process

Groups for any project and their constituent which include;
 Initiating processes group
 Planning processes group
 Executing processes group
 Monitoring and controlling processes group
 Closing processes group
Interaction among processes group
 Section III: The Project Management Knowledge
Areas
38

The Project Management Knowledge Areas, organizes the 44

project management processes and nine Knowledge Areas,
 Knowledge areas (9 for all types
projects + 4 Construction Specific)
 Integration
 Scope
 Time
 Safety
 Cost
 Environme
nt

Quality +  Finance
 Human resource  Claims
 Communications
 Procurement
 Risk
 The Project Management Knowledge Areas
39

1) Project Integration Management,

 describes the processes and
activities that integrate the
various elements of project
management.
2. Project Scope Management,
 describes the processes involved
in ascertaining that the project
includes all the work required,
and only the work required, to
complete the project successfully
 The Project Management Knowledge Areas
(Cont…)
40

3) Project Time Management,

 describes the processes
concerning the timely
completion of the project.
4) Project Cost Management,
 describes the processes
involved in planning,
estimating, budgeting, and
controlling costs so that the
project is completed within the
approved budget
 The Project Management Knowledge Areas (Cont…)
41 5) Project Quality Management,

 describes the processes involved in assuring

that the project will satisfy the objectives for
which it was undertaken and it involves quality
planning, quality assurance and quality control
6) Project Human Resource Management,
 describes the processes that organize and
manage the project team.
7) Project Communications Management,

 describes the processes concerning the timely

and appropriate generation, collection,
dissemination, storage and ultimate disposition
of project information.
 The Project Management Knowledge Areas (Cont…)
42

8) Project Risk Management,

 describes the processes
concerned with conducting risk
management on a project.
9) Project Procurement
Management,
 describes the processes that
purchase or acquire products,
services or results, as well as
contract management processes
 The four Construction Specific KA
43

1. Project Safety Mgt 3. Project Financial Mgt

 Safety Planning  Financial Planning
 Safety Plan execution  Financial Control
 Administration and reporting 4. Project Claim Mgt
2. Project Environmental  Claim Identification
Mgt
 Claim Quantification
 Environmental Planning
 Claim Prevention
 Environmental Assurance  Claim Resolution
 Environmental Control
The Ethiopian Construction Project Management Manual
  Project Management Process Groups
Knowledge Areas Initiating Planning Executing Process Monitoring Closing
Process Process & Controlling Process
Group Process Group Group

1.Project Integration Management  √  √  √  √  √

2. Project Scope Management    √    √  
3. Project Schedule Management    √    √  
4. Project Cost Management    √    √  
5. Project Quality Management    √  √  √  √
6. Project Human Resources Management    √  √  √  √
7. Project Equipment Management    √  √  √  √
8. Project Materials Management    √  √  √  √
9. Project Communications Management    √  √  √  √
10. Project Risk Management    √    √  
11. Project Procurement Management    √  √  √  √
12. Project Stakeholder Management  √  √  √  √  √
13. Project Claims Management    √  √  √
14. Project Environment Management    √  √  √  
15. Project Safety Management  √  √  √  
16. Project Financial Management    √  √  √  
44
17. Project Design Management  √  √  √  √
 Areas of Expertise
45

 Effective project management requires that the

project management team understand and use
knowledge and skills from at least five areas
of expertise:
 The Project Management Body of
Knowledge
 Application area knowledge, standards,
and regulations
 Understanding the project environment
 General management knowledge and
skills
 Interpersonal skills.
 Reading assignment
46

1. Try to have a brief understanding on the project management

body of knowledge and the awareness and level of practice
of these knowledge areas within in Ethiopian construction
industry

2. Try to get a copy of the Ethiopian project management body

of knowledge and read about it as well
47

Thank you