Managing Projects in Construction and Infrastructure

Managing Projects in Construction and Infrastructure

Managing Projects in Construction and Infrastructure

Sachin Nambeesan

Managing Projects in Construction and Infrastructure

Sachin Nambeesan

ISBN - 9789361527524

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Preface

This book deals with a subject project management. The content of this book is related to project management students. Those students are interested in project management. Everything seems to matter in project management. The use of project management has expanded and is used in many industries. The generic component of project management across all industries without the necessary technical knowledge has been debated. This study investigates the knowledge base of construction project management and the need for industry-specific knowledge. The study includes literature and also empirical research section. The empirical study made use of interviews, a case study, and questionnaires.

A construction project management knowledge model was developed based on the research and research findings. The research findings suggest that a project manager in the built environment requires various types of knowledge – project management knowledge, industry-specific knowledge, and knowledge gained through experience. The project management knowledge includes the 13 areas from the construction extension to the PMBOK guide; the industry-specific knowledge is divided into four main areas that are knowledge of construction science, knowledge of construction processes, knowledge of design processes and knowledge of financial cost factors and the knowledge through experience is gained through time spent working in the industry.

The construction project management knowledge model aims to contribute to improving the project management environment, aiding in awareness of the various knowledge areas and subareas that are important, and the NQF level that is suggested. This could contribute to sufficient education by creating awareness of the level of education a project manager in the built environment requires. Organizations could use the model as a reference to determine which areas their project managers could improve on in order to develop and increase project management maturity in the organization. The project management construction model also offers tertiary institutions a framework for syllabus planning of construction project management courses. Further research is welcomed and may include improving the model or using the model as a foundation to develop a measuring instrument to determine the knowledge of a construction project manager.

Students will find this book incredibly easy to comprehend and understand what project management is and make it ideal for everyone who has a spark of interest in project management. This book will guide you and help you to bring out the best in you.

Hope you like it!

Happy reading.

Project Management for the Built Environment

Table of Contents

1 Introduction and Background 1

1.1 Introduction 1

1.2 Title 3

1.3 Problem Statement 3

1.4 Main Problem 3

1.5 Sub-problems 4

1.6 Purpose of the Study 4

1.7 Hypothesis 4

1.7.1 Primary Hypothesis 4

1.7.2 Secondary Hypothesis 4

1.8 Limitations 5

1.9 Assumptions 5

1.10 Definitions 5

1.11 Literature Study 6

1.12 Methodology 6

1.13 Chapter Layout 7

1.14 Exercise 7

2 Project Management Overview 9

2.1 Introduction 9

2.2 Roots of Project Management 9

2.2.1 Gantt Chart 10

2.2.2 The Development of Project Management 11

2.3 Project Management – An Overview 13

2.3.1 Understanding a Project 13

2.3.2 Project Management 14

2.3.3 Essential Knowledge in the Built Environment 16

2.3.4 Project Manager 22

2.4 Project Management - two schools of thought 29

2.5 Regulation and Standardisation of

Project Management 30

2.5.1 Project Management Associations and

Institutions / Councils and Future Under the Act 31

2.5.2 Project Management Body of Knowledge 35

2.6 Nine Project Management Knowledge Areas 43

2.6.1 Integration Management 43

2.6.2 Project Scope Management 43

2.6.3 Project Time Management 44

2.6.4 Project Cost Management 44

2.6.5 Project Quality Management 44

2.6.6 Project Human Resource Management 45

2.6.7 Project Communications Management 45

2.6.8 Project Risk Management 46

2.6.9 Project Procurement Management 46

2.7 Benefits of Effective Project Management 47

2.8 Chapter Summary 49

2.9 Exercise 50

3 Organizational Factors and Project Management 51

3.1 Introduction 51

3.2 Relationship Between Organizational Factors and

Project Management 51

3.3 Organizational Maturity 52

3.3.1 Background 52

3.3.2 Project Management Maturity Models 53

3.4 Organizational Structure 57

3.4.1 Background 57

3.4.2 Various Organizational Structures 57

3.5 Organizational Culture 62

3.5.1 Definition of Organizational Culture 62

3.5.2 Organizational Culture and Project Management 63

3.6 Project Management and Leadership 64

3.6.1 Project Managers as Leaders 64

3.6.2 Leadership and the Project Manager 66

3.6.3 Leadership and Power 67

3.6.4 Leadership and Cultural Diversity 68

3.7 Communication 70

3.7.1 Understanding Communication 70

3.7.2 Communication and Project Management 72

3.8 Trust 75

3.9 Management 76

3.9.1 Planning 76

3.9.2 Control 77

3.9.3 Motivation 77

3.9.4 Leadership 78

3.10 Chapter Summary 79

3.11 Exercise 80

4 The Built Environment 81

4.1 Introduction 81

4.2 Background 81

4.3 Systems Thinking 82

4.4 Development Process 83

4.4.1 Inception 84

4.4.2 Feasibility 85

4.4.3 Outline Proposals 85

4.4.4 Detail Design 85

4.4.5 Production Information 86

4.4.6 Bills of Quantities 86

4.4.7 Procurement for Building Projects 88

4.4.8 Project Planning 90

4.5 Built Environment Stakeholders 90

4.5.1 Stakeholders 91

4.5.2 Professional Advisors 93

4.6 Knowledge 104

4.6.1 Project Management Qualification 104

4.6.2 Industry-specific Qualifications 107

4.7 Chapter Summary 111

4.8 Exercise 111

5 Project Management in the Built Environment 112

5.1 Introduction 112

5.2 Project Management in the Built Environment 113

5.2.1 Construction Project Management 113

5.2.2 Need for Construction Industry Knowledge 119

5.3 Knowledge Required For Cost and Quality Control 124

5.3.1 Construction Project Manager and Quality 124

5.3.2 Construction Project Management and Cost 126

5.4 Construction Project Phases 129

5.5 Construction Project Management – Identification

of Work 129

5.5.1 Project Initiation and Briefing 130

5.5.2 Concept and Feasibility 131

5.5.3 Design Development 132

5.5.4 Tender Documentation and Procurement 133

5.5.5 Construction Documentation and Management 134

5.5.6 Project Closeout 136

5.6 Professional Bodies 137

5.7 Construction Specific Body of Knowledge 137

5.7.1 Construction Project Management-Specific Knowledge Areas 139

5.8 Chapter Summary 143

5.9 Exercise 144

6 Research Design and Methodology 145

6.1 Introduction 145

6.2 The Scientific Method and Perspectives on

Research Methodology 145

6.3 Research Strategy 148

6.4 Research Design 151

6.4.1 Time Dimension 151

6.4.2 Research Environment 151

6.4.3 Sampling Design 151

6.4.4 Data Analysis 152

6.5 Methodology 153

6.5.1 Data Collection 153

6.5.2 Ethical Issues 154

6.5.3 Literature and Empirical 155

6.5.4 The Questionnaire 156

6.5.5 Interviews 159

6.5.6 Case Study 160

6.6 Conclusion 161

6.7 Exercise 162

7 Research Findings 163

7.1 Introduction 163

7.2 Interviews 163

7.2.1 Interviewee Profile 164

7.2.2 Empirical Findings 166

7.3 Case Study 175

7.3.1 General Background 175

7.3.2 Industry Factors 176

7.3.3 Project Management 178

7.3.4 Leadership 178

7.3.5 Communication 179

7.3.6 Trust 180

7.3.7 Time 180

7.3.8 Cost 181

7.3.9 Scope 183

7.3.10 Conflict 183

7.4 Questionnaires 184

7.4.1 Respondents’ Background 184

7.4.2 Findings 188

7.5 General 216

7.6 Conclusion 218

7.7 Exercise 219

8 Further Suggestions 220

8.1 Introduction 220

8.2 Study Overview 221

8.3 Construction Project Management Knowledge Model 227

8.3.1 Introduction 227

8.3.2 Determinants of the Construction Project Management Knowledge Model 227

8.4 Recommendation and Further Study to Follow 235

8.5 Conclusion 236

8.6 Exercise 237

Appendix 238

Glossary 242

Index 305

Chapter

1 Introduction and Background

1.1 Introduction

Throughout history, many famous projects were completed, such as the Egyptian pyramids and the Great Wall of China. Project management, as a discipline, had undergone major changes during World War One and, with time, evolved into modern-day project management. It was supported by the aerospace, defense and construction industries. In due course, project management matured and became a professional discipline with its own body of knowledge regulated by the Project Management Institute. The use of project management has expanded and is used in many industries. It is controlled by project managers, where a project-based approach is followed.

The organizational benefits resulting from incorporating a project-based approach is widely accepted. Many project managers working in the industry were promoted to a managerial position due to their initial technical expertise, thus receiving the title of the project manager. These project managers have industry-specific knowledge. The level of competency is a debate that is currently taking place in the construction and built environment industry and within the profession, and forms part of this research study

Many routes may lead to a qualification in project management. This includes certificates, diplomas or academic degrees in project management. In South Africa, there are numerous programs in project management. Some offer a generic project management syllabus, while others offer industry-specific programs. A few examples of some of the courses or programs are the Higher Certificate in Project Management presented by Damelin Education Group, the Intensive Project Management Program (IPMP) presented by the University of the Free State, MSc-degree in Project Management presented by the University of Cape Town, Program in Project Management (PPM) by the University of Pretoria, MSc Construction Project Management by the University of Westminster and the MSc by the Nelson Mandela Metropolitan University.

Some of the qualifications offer a course syllabus on generic project management, for example, the Damelin Higher Certificate and the University of Pretoria PPM, while other qualifications are industry-specific, such as the MSc Built Environment Project Management offered by the Nelson Mandela Metropolitan University and the IPMP offered by the University of the Free State. Some believe that project management is transportable across all industries without the necessary technical knowledge. The importance or non-importance of industry-specific knowledge in project management is discussed and debated. Various textbooks on project management distinguish between generic project management and industry-specific project management. A number of construction project management textbooks are available.

The Project Management Institute published the Project Management Body of Knowledge (PMBOK) guide that focuses specifically on the construction industry, which is known as the Construction Extension to the PMBOK guide. The South African Council for the Project and Construction Management Professions (SACPCMP) lists tasks that a project manager in construction should be able to fulfill. Tasks – such as monitoring and reviewing construction progress and program updates – certain demand knowledge of the construction industry. Due to the probable importance of industry-specific knowledge, construction project management forms part of this study.

1.2 Title

Project management in the built environment: the need for industry-specific knowledge.

1.3 Problem statement

Organizations have managers that manage in order to get the work done. General management includes management skills such as leadership, communication, organizing and staffing. Internationally organizations started using a project-driven approach, hence the increase in project management in the organization. After the development and standardization of the project management profession, a school of thought developed that believed project management to be generic and that a project manager will be able to manage a project in any industry.

This school dismisses the importance of industry-specific technical knowledge as a prerequisite for a project manager. According to another view, the project manager requires a certain degree of industry-specific knowledge to increase project effectiveness as an indication of successful project management. The study aims to establish the importance and need for industry-specific knowledge in construction project management by analyzing the knowledge and skills required by a project manager.

1.4 Main problem

Traditionally, many project managers had technical knowledge at their disposal because they were promoted from a technical position to a managing position. A certain school of thought regards project management as generic and believes that no industry-specific knowledge is required. The study aims to determine the need for industry-specific knowledge, especially in the built environment. The type of knowledge and levels of knowledge needs to be determined. The question, therefore, is whether industry-specific knowledge is a requirement for successful project management in construction.

1.5 Sub-problems

The sub-problem relates to the effectiveness of a project. Does a project manager with industry-specific knowledge increase the probability of the success of a project?

1.6 Purpose of the study

The purpose of the study is to gain insight into the knowledge required by a project manager and, by doing so, to add to the effectiveness of project management in the built environment. The aim of the research is further to add to the knowledge base of project management in general and project management in the built environment specifically

1.7 Hypothesis

1.7.1 Primary hypothesis

The primary hypothesis states that construction project management requires industry-specific knowledge, specifically when managing projects in the built environment industries.

1.7.2 Secondary Hypothesis

The study aims:

• To establish the importance of knowledge for a project manager working on built environment projects.

• To establish and propose NQF levels for the required knowledge

• To develop a construction project management model.

• To increase the effectiveness of the project and the probability of project success.

1.8 Limitations

The study mainly focuses on the built environment, project management, and specifically the construction project manager. It is limited to project management in the construction industry. The theoretical literature is an overview of project management, the South African built environment and project management within the built environment. The empirical section focusses on South Africa. The case study is a South African project; the interviews are with persons working in the built environment within South Africa and the questionnaires completed by respondents working on projects in South Africa.

1.9 Assumptions

It is assumed that there are two schools of thought: those who regard project management as a generic discipline and on the other side of the scale, those who believe that industry-specific knowledge is a necessity in project management

1.10 Definitions

• Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet stakeholders’ needs and expectations from a project.

• A project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite end. Unique means that the product or service is different in some distinguishing way from all similar products or services.

• The built environment includes disciples involved in the science of designing and constructing physical structures such as buildings, bridges and roads.

• Generic is a characteristic relating to a class or group, thus not specific.

• Industry-specific knowledge refers to the range of information about the industry people work in, and the understanding of that subject.

1.11 Literature study

The sources used in the literature study include journal articles, magazine articles, books, seminar/symposium, internet, project Management standardizing models such as the PMBOK and PMI maturity models, and previous research. These sources support the literature study and highlight and discuss the main themes supporting the research. These themes are an overview of project management, organizational factors and project management, the built environment and project management in the built environment.

1.12 Methodology

This literature study is supported by empirical research. The research was conducted and completed within a specific period. The interviews were conducted in two weeks, and the questionnaires were sent out and returned within two months. The target population was from the built environment. The research is a combination of a quantitative as well as a qualitative approach, the quantitative research being mainly deductive, and the qualitative research is mainly inductive. The data was gathered by distributing a hard copy questionnaire, conducting interviews with leaders who have substantial experience in the property environment and researching specific projects as case studies.

These studies ensured that a wide range of areas, theory, and opinions was covered and avoided that deductions are from a single set of data. The range ensured confirmation of the theory. The questionnaire was tested on a group of ten individuals that were regarded as qualified experts with adequate experience. They were asked to complete the questionnaire. After the pilot study had been conducted, the feedback was gathered, processed, and changes to the questionnaire were made where necessary. After that, the questionnaire was distributed to 70 research participants, of which 40 were received back. In order to study the effect of specific organizational factors on project management, several organizations were used in the sample.

1.13 Chapter layout

The research design is presented in Chapter 1. Chapters 2 – 5 contain the literature study, including both South African and international research findings, as to a knowledge base. Chapter 2 reflects on project management and gives an overview thereof, chapter 3 covers organizational factors and project management, chapter 4 discusses the built environment and chapter 5 looks at project management in the built environment, the theory serves as a sound basis for the empirical study. The empirical study focuses on the South African context and forms part of Chapters 6 – 8. Chapter 6 covers a discussion of the research design and methodology. The research findings of the empirical study are presented in Chapter 7, followed by suggestions and conclusions based on the findings and the literature study in Chapter 8.

1.14 Exercise

1. What is project management?

2. What is the problem statement?

3. What is the main problem in project management?

4. What is the subproblem in project management?

5. What is the purpose of the problem in project management?

6. What is the hypothesis?

7. Difference between primary hypothesis and secondary hypothesis.

8. What are the limitations of project management?

9. What are the assumptions taken in project management?

10. What is the literature study?

11. What are the methodologies in project management?

Chapter

2 Project Management Overview

2.1 Introduction

Chapter 2 presents an overview of current project management theory in order to support the research of the title ‘Project management in the built environment: the need for industry-specific knowledge.’ In this chapter, project management, in general, is reviewed from the history of project management to defining project management specifically related to the importance of knowledge of project management. The project management process review is based on the Project Management Institute’s Body of Knowledge framework. According to this process, there are nine knowledge areas, five project management process groups, and forty-four activities in total, as well as the construction extension to the Project Management Body of Knowledge (PMBOK) guide with the, added four knowledge areas. This is explained in further detail in Chapter 5. Regulation and standardization are also discussed. Attention is paid to the attributes, skills and competencies of an effective project manager. The benefits of effective project management are outlined.

2.2 Roots of project management

In order to understand project management as a discipline, some attention needs to be given to its roots. Throughout history, many well-known projects still in existence today were completed, such as the Egyptian pyramids and the Great Wall of China. It is referred to as projects because it meets the definition of a project as presented by the Project Management Institute (PMI) that states that a project is a temporary endeavor undertaken to create a unique product, service, or result. Project management has undergone important developments since the time of the Egyptian pyramids and the Great Wall of China. Project management, as a discipline, started mainly recently. Aerospace and engineering brought along changes and development in project management. Project management combined elements from various other disciplines, one area being general management. General management has knowledge areas such as staffing, planning, monitoring, controlling, communications, team building, coordinating, and organizing that were adopted within project management.

The project management knowledge base has developed and broadened over the years to what it is today. Modern-day project management uses various tools and techniques. Important developments influencing the practice of project management took place during World War One. This was specifically the case in the USA and UK during the 1950s and 1960s.

Project management as a discipline mainly developed in the USA in the 1960s, in the UK in the 1980s and South Africa during the 2000s. The skills were derived from such fields as management, operations and research. It is a professional discipline that has developed and was standardized through the ages and is continuously standardized by project management institutions.

2.2.1 Gantt Chart

The bar chart, as an important project management tool, was developed by Henry Gantt during World War One to serve as a visual aid for planning and controlling projects. The implementation of this technique significantly reduced the time needed to build cargo ships during the war. Today the Gantt chart is still used as an effective method to manage projects, seeing what is happening at a glance and noting the sequence of the tasks to follow. Many managers use the bar chart method for planning and controlling projects. This forms part of the general project management knowledge area.

2.2.2 The Development of Project Management

During the 1950s and 1960s, project management techniques were developed that ensured growth in the body of knowledge of the project management profession. The defense and aerospace industries in the USA developed techniques that are still used today, such as the program evaluation and review technique (PERT), the earned value, configuration management, value engineering, and work breakdown structure (WBS). The construction industry contributed to project management by expanding the knowledge base through developing the critical path method (CPM), the precedence diagram method (PDM), and the network diagrams and network smoothing.

Project management uses tools such as PERT and Gantt charts, calendars, complex schedules, financial data, and various reporting systems. A variety of techniques and approaches to planning and executing a project is revealed in the literature on project management written by numerous authors such as Kerzner (2006) and Burke (2001). The use of these tools and techniques in project management has led to the de facto definition for project management as ‘the use of a set of tools and techniques to manage a combination of time, money, people and work. Within some organizations, they fail to realize that time, money, and people will not automatically result in a successful project..’

Project management techniques are important as they assist in the planning process and also help with cost and budget establishment. They also enable tracking of time, cost, and performance. The tools and techniques discussed above form an important part of the project management knowledge base. They also cross-influence and assist each other. For instance, the critical path method can only take place after the work breakdown structure (WBS), not before. The WBS is a communication tool that communicates important detailed information to management. The tools and techniques produce charts and schedules. The objectives of charts and schedules are to coordinate activities to complete the project within the best time, at the least cost and with the least risk. It offers the opportunity to study alternatives, communicate, provide optimal scheduling, use resources effectively, refine the estimating criteria and provide easy revisions. According to Longman and Mullings, good project managers use traditional project tools and techniques to reveal important project management data to use in order to manage projects effectively. Project managers understand that the tools and techniques are useless without clear thinking to ensure that data is relevant to the project and meaningful in that it can add to the project’s effective completion and success. Project management is a profession that is growing fast. Work in defense procurement and also the construction industry was traditionally regarded