CERTIFIED CONSTRUCTION PROJECT

MANAGER (CCPM)

MODULE 2 : PROJECT INITIATION

 PROCESS LIFE CYCLE STAGES
Project Inception Design Execute Tender Project Administer Establish
Development Monitoring & Project Operations &
Controlling Handover Maintenance
M02 : Project 1.01 Initiate the Project
Initiation 1.03 Establish Project
Brief & Viability
MODULES

M03 : Conceptual 1.02 Develop Conceptual

Design and Design & Preliminary
Preliminary Estimate Estimate

M04 : Procurement 1.04 Establish Project

Procurement Strategy

M05 : Project 1.05 Develop Project 4.01 Monitor & Control

Planning, Monitoring Implementation Planning & the Project Progress
and Control Control

M06 : Project 1.06 Establish Project 4.02 Monitor & Control

Financial Financial Planning & Project Finances / Cash
Control Flow
Management
 PROCESS LIFE CYCLE STAGES
Project Design Execute Project Administer Establish
Inception Development Tender Monitoring & Project Operations &
Controlling Handover Maintenance
M07 : Design 2.01 Establish Project
Development & Detail Design
2.06 Obtain Authorities
MODULES

Authority Liaison
Approval
M08 : Quality 2.02 Establish Project 4.04 Monitor & Control
Management and Quality Planning & Project Quality
Control Control Processes Compliance

M09 : Occupational 2.03 Establish Project 4.05 Monitor & Control

Safety & Health Health & Safety Planning Project’s Health &
Management and Control Process Safety Compliance
M10 : Environmental 2.04 Establish Project 4.06 Monitor & Control
Management Environmental Planning Environmental
and Control Process Requirement
Compliance

M11 : Value 2.05 Administer Value

Management Management
 PROCESS LIFE CYCLE STAGES
Project Inception Design Execute Tender Project Administer Establish
Development Monitoring & Project Operations &
Controlling Handover Maintenance
M12 : Tender 3.01 Tender,
Management Evaluation & Award
the Project
MODULES

M13 : Contract 4.03 Administer

Management Construction Contract

M14 : Project 5.01 Project Handover

Handover & Closeout

M15 : Operation and 6.01 Establish Project

Maintenance Operation Plan
6.02 Establish Facility
Maintenance Plan

M16 : Project People 1.01 Initiate the Project

and Team
Management
Role of Project Manager in Project Charter Development

Project charter is issued by the project sponsor or project initiator or customer.

The project manager participates in the development of the project charter, but not solely
responsible for creating it.
Project manager is more of a contributor in the development of the charter.
Project manager handles team members and stakeholders about its content for
common understanding on key deliverables, milestones and their roles and
responsibilities
The sponsor or customer approves the project charter.
The project manager communicates on the approval of the project charter to
stakeholders.
Project charter provides the authority to the project manager to assign organization
resources to project activities.
Develop Project Charter

Inputs to develop the Project Charter:

Business Documents – Business case and Benefits management plan.
Agreements – defines initial intention of the project and can be in the form of a contract.
Enterprise Environmental Factors - culture and structure, infrastructure, existing human
resources, marketplace & its conditions etc.
Organizational Process Assets - the organization's policies, guidelines, procedures, plans,
approaches, or standards for conducting work, including project work.
Project Business Case (Refer to sample of Business Case)

A documented economic feasibility study used to establish the validity of the benefits of a selected
project
Is used as a basis for the authorization of the project
Lists the objectives and reasons for project initiation
Helps measure the project success at the end of the project against the project objectives
Contents of a business case :
Business needs
Analysis of the situation
Recommendation
Evaluation.
Develop Project Charter (continued)

Benefits Management Plan – is a document that describes how and when the benefits of
the project will be delivered, and describes the mechanisms that should be in place to
measure those benefits.
The plan may include :

Target benefits
Strategic alignment
Timeframe for realizing benefits
Benefits owner
Metrics
Assumptions
Risks
Elements of Project Charter

Project charter documents the business needs, and the new product, service or result
that will be created by the project.
The various elements of a project charter are:
Project purpose and justification Key stakeholder list
Measurable project objectives Project approval requirements (what
and related success criteria constitutes project, who decides project is
High-level requirements successful, and who signs off on the project)
High-level project descriptions and Project exit criteria
boundaries Assigned project manager, responsibility,
Overall project risk and authority level
Summary milestone schedule Name and authority of the sponsor or other
Preapproved financial resources person(s) authorizing the project charter
The Project Manager Competences : PMI Talent Triangle®

• Leadership : Qualities and Skills of a Leader

• Being a visionary
• Being optimistic and positive
• Being collaborative
• Managing relationships and conflict
• Communicating
• Being respectful, courteous, trustworthy and ethical
• Exhibiting integrity
• Giving credit to others where due
• Being a life-long learner who is results- and action-oriented
• Focusing on the important things – prioritizing work
• Having holistic and systemic view of the project
• Apply critical thinking
• Build effective teams.
Role of Project Manager in Project Team

Core PM processes of the (Human) Resource Management Knowledge Area.

Plan Resource Management
Estimate Activity Resources
Acquire Resources (Partly during Project Initiation)
Develop Team
Manage Team
Control Resources

Conflict Management
Motivation Theory
 Process Groups Initiating Planning Executing Monitoring & Closing
& Knowledge Controlling
Project Areas
Management
Process Groups Integration Management Develop Project Charter Develop Project
Management Plan
Direct & Manage Project
Work
Monitor & Control
Project Work
Close Project or Phase

& Knowledge 4.1 Understanding the

organization and its 4.4 Quality
Manage Project
Knowledge
Perform Integrated
Change Control
10. Improvement

Areas context; Management System 10.2 Nonconformity and

and its processes; 8.5.6 Control of Changes corrective action;

5.2 Policy 9.1 Performance 10.3 Continual

ISO 9001 : 2015 6.3 Planning of Changes
Evaluation; Improvement

Quality 9.2 Internal Audit;

Management 9.3 Management

Review
System
Scope Management Plan Scope Management Validate Scope
Collect Requirements Control Scope
Define Scope
Create WBS 8.6 Release of products
and services
4.3 Determining the
scope of the quality
management system
Project Process Groups Initiating Planning Executing Monitoring & Closing
& Knowledge (PHASE 1) (PHASE 2) (PHASE 3) Controlling (PHASE 5)
Management Areas (PHASE 4)
Process Groups Procurement Plan Procurement
Management
Conduct Procurements Control Procurements
Management
& Knowledge 8.4 Control of externally
8.4.2 Type and extent of provided processes,
Areas control products and services

8.4.3 Information for

external providers

ISO 9001 : 2015 Stakeholder Identify Stakeholders Plan Stakeholder Manage Stakeholder Monitor Stakeholder
Management Engagement Engagement Engagement
Quality 4.2 Understanding the
needs and expectations 5.2 Customer Focus
Management of interested parties
System
Refer to the Sample of Project Development and Evaluation.
Project Steering Team
This group of project sponsors – the project steering team to review the status of all active projects, initiates
new projects and decide the prioritisation of project activity in the organisation. Responsibilities include:
ensuring projects are aligned to corporate objective;
giving strategic direction;
maintaining focus on customer and business needs;
ensuring environmental influences are taken into account;
prioritizing all active projects and their resourcing;
providing the ultimate decision forum for all major problems and issues;
approving start-up and abortion projects.
Project Sponsor
This project sponsor for any project is accountable for the performance of their projects and must
demonstrate their concern for success to everyone involved. Responsibilities include :
ensuring projects objectives are always aligned to corporate needs;
selecting the project manager;
approving the project definition;
sustaining the project direction;
ensuring priorities are maintained for all their projects;
overseeing the project process and procedures, budget and control;
maintaining support and commitment;
approving project plans, changes and status reports.
The Project Manager
This project manager is responsible for the project work from the initial kick-off through to closure.
Responsibilities include:
selecting the core team with the project sponsor;
identifying and managing the project stakeholders;
defining the project and securing stakeholder approval;
planning the project securing stakeholder approval;
identifying and managing the risks;
allocating and securing resource commitments;
monitoring and tracking project progress;
solving the problems that interfere with progress;
controlling costs;
leading the project team;
informing stakeholders of progress status;
The Project Manager

delivering the project deliverables and benefits;

managing the performance of everyone involved with the project;
 WE’RE
BACK
RISK MANAGEMENT IN PROJECT INITIATION

Risk Description of Risks Probability Impact

Level
Technical 1.1 Major scope creep in the Business High Deviation of the entire project objective,
Risk Case and Project Charter with ultimate failure of business case
1.2 Undefined requirements High Extra cost and time incurred

1.3 Under estimate, assumptions and High Failure on cash flow, with additional
constraints budget required
1.4 Technical processes and interfaces High Impact on time and cost

1.5 Technology i.e. adoption of IBS, etc. Moderate to Immature and non workable technology
High by resulting to redundant of work, impact
on work progress and wastages.
RISK MANAGEMENT IN PROJECT INITIATION

Risk Description of Risks Probability Impact

Level
Management 2.1 Organisation management /project High Selection of non perform / lack of
Risk management: Selection of Project Team competency project team may cause the
time and cost impact to the project
2.2 Ditto, Appointment of Consultants Moderate to Time and cost impact i.e. delayed and
High confirmation of design, selection of
materials, certifications, variation, etc.
2.3 Resourcing Moderate to Poor resourcing may impact the
High availability of resources to support the
projects, lead to time and cost impact
2.4 Communication : Project Definition High Failure to communicate with the
and Scope stakeholders, project teams including
vendors, contractors, on the initial
project objectives may deviate the
direction of the project.
RISK MANAGEMENT IN PROJECT INITIATION

Risk Description of Risks Probabilit Impact

Level y
Commercial 3.1 Contractual terms and High Poor contract administration may lead to
Risk conditions total failure of project objectives.
3.2 Internal procurement Moderate Lack of proper procurement policies may
lead to negative allocation of resources;
3.3 Suppliers and vendors High Issues on quality, supplies, resources etc.

3.4 Contractors and subcontractors High Issues on workmanship quality, human

resources, contractual disputes
3.5 Client/ customer stability High Wrong selection of clients / customers may
jeopardize the project objective due to total
failure of revenue.
3.6 Partnership and joint ventures Moderate to Internal problems may lead to failure in the
High company management policies and
direction.
RISK MANAGEMENT IN PROJECT INITIATION

Risk Description of Probability Impact

Level Risks
External 4.1 Legislation / High The Federal Court on the LAD calculation for housing
Risk government policy development projects, Latent Defects issues etc.
4.2 External rates High High inflation rates, fluctuation of price for building
materials, increased of overall construction cost,
shortage of materials and labours, etc.
4.3 Site facilities Low Amiability of site facilities

4.4 Environmental / Low Change of weather which may impact the work progress
weather
4.5 Competition Moderate to Negative competition may lead to compromise of quality
High of materials, workmanship etc. Mushrooming of foreign
contractors in contrary to the local contractors.
4.6 Regulatory Moderate to Change of regulatory issues may impact the policies and
High for market adaptability e.g. example the Malaysia My
Second Home (MM2H) alleged to be too restrictive for
foreigners;
4.7 Economic down turn, Moderate to High impact on work progress, shortage of labour and
e.g. movement control High materials, additional expenses on site overhead, massive
order impact on sales revenue for develops further creates
negative reaction on payment issues.
Core PM processes of the Risk Management Knowledge Area
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Implement Risk Responses
Monitor Risks
Project Management Risk Processes
Plan Risk Management
To determine how to conduct risk management for the project at hand.

Identify Risks
To identify and document the risks that might occur.

Perform Qualitative Risk Analysis

To estimate the overall probability and impact for risks to occur and to prioritize them accordingly for
further analysis.

Perform Quantitative Risk Analysis

To analyze numerically the probability and effect of selected risks on meeting the project objectives.
Project Management Risk Processes (Continued)

Plan Risk Responses

To prepare a risk response plan in order to increase the positive impact and decrease the negative
impact of risks on the project.

Implement Risk Responses

To implement agreed-upon risk response plans.

Monitor Risks
To track identified risks, identify new risks, execute risk response plans, and evaluate the effectiveness
of the responses.
 Risk & Contingency Reserve
Reserve Contingency Reserve
Budgeted Cost
Contingency Reserve is:
Management Reserve

Planned Cost Established to deal with unknown risks and

accepted known risks.
Contingency Reserve
Might be in the form of additional time, money or
Project resources.
Covers risk events that are not accounted for in the
Control A/C
project baseline for duration and cost estimations.
Works Determined by the potential impact of the risk but
should include enough to implement any
Activities
contingency plans as well as a buffer for dealing
with unidentified risks.
1. Liquidated Ascertained Damages (“LAD”) to be calculated from the date of payment of booking fees
(and not the date of the SPA). (source : Mah Weng Kwai and Associates)

•Although developers are prohibited from collecting any booking fees pursuant to Regulation 11(2) of the
Housing Developers (Control and Licensing) Regulations 1982 (“HDR 1982”), it remains a common industry
practice for developers to request for payment of a booking fee.
•It is not unusual for the SPA to be executed by the parties several months after payment of such booking
fees.

•Pursuant to Schedule G and H of the Housing Development (Control and Licensing) Regulations 1989 (“HDR
1989”), the developer is obligated to deliver vacant possession of the property to the purchaser within 24
months or 36 months from “the date of this agreement”.

•It is now settled that “where a developer fails to deliver vacant possession according to the time stipulated in
the statutory sale and purchase agreement, the calculation of the LAD begins from the date of payment of the
booking fee and not from the date of that statutory agreement.” (paragraph 25 of the grounds of judgment)
1. Liquidated Ascertained Damages (“LAD”) to be calculated from the date of payment of booking fees
(and not the date of the SPA).

•The reasoning is, inter alia, if the Court takes the “date of this Agreement” to mean the date of SPA, “this
Court would be condoning the developers’ attempt in this case to bypass the statutory protections afforded to
the purchaser by the legislative scheme put in place.” (paragraph 49 of the grounds of judgment)

•The Federal Court made a strong concluding remark on the standard commercial practice of collecting
booking fees at paragraph 131 of the judgment that “[131] While the developers might think that it is a
standard commercial practice to accept booking fees, the development of the law clearly suggests to the
contrary. The Courts will not condone such a practice until and unless the law says otherwise.”
2. Calculation of LAD shall be based on the actual purchase price as stipulated in the sale and purchase
agreement (“SPA”).

•The issue before the Court is whether the calculation of LAD should be based on the actual purchase price
stipulated in the SPA or the rebated purchase price, i.e. purchase price less rebate given by the developer.

•The Federal Court agreed with the Court of Appeal and held that LAD shall be calculated based on the agreed
purchase price as stipulated in the SPA.
3. Date of completion of common facilities shall be based on the date of the Certificate of Completion and
Compliance.

•Pursuant to terms of Schedule H, the developer is obligated to complete the common facilities serving the
housing development within 36 months from the date of the SPA.

•In the event of a delay in the completion of the common facilities, LAD is calculated from the date on which the
developer ought to have completed the common facilities up to the date of completion where the developer’s
architect “shall certify the date of completion of the common facilities.”

•Hence, the LAD calculation is based on the date of the developer’s architect’s certification.

•The issue is whether the date of completion shall be based on the date of Certificate of Completion and
Compliance (“CCC”) or the Certificate of Practical Completion (“CPC”).
•CCC is issued to certify that the Property, together with the common facilities, has been constructed and
completed in conformity with the approved plans and requirements of the Street, Drainage and Building Act
1974 and its by-law.

•On the other hand, CPC is commonly issued upon practical completion of the housing development by the
contractor under the construction contract entered into between the developer and the main contractor.

•The Federal Court held that to calculate the LAD payable by the developer to the purchaser for the delay in
completion of the common facilities, the date of completion shall be based on the date of CCC, not CPC.
“Assalammualaikum dan salam sejahtera pada semua ahli group CC...Jika tidak keberatan
untuk mengiklankan servis kami. Ingin memaklumkan, syarikat kami menyediakan perkhidmatan
'Building Inspection' mengikut CIDB Qlassic standard bagi semua jenis bangunan dari landed
hingga ke highrise building. Ada benefit menggunakan khidmat ini:

1) Pemilik persendirian - dapat mengetahui masalah dan punca kerosakan kediaman baru
anda dalam tempoh DLP (Defect Liability Period). Dengan ada report dari kami (berserta
gambar), anda bole meminta pihak kontraktor membaiki kediaman anda mengikut kualiti
yang sepatutnya. 👍🏽👍🏽👍🏽

2) Syarikat pemaju atau kontrakor - perkhidmatan kami dapat membantu meningkatkan lagi
nama syarikat anda dari segi mencapai kualiti bangunan yang dibina dan kepercayaan
kepada pembeli. Sijil pengiktirafan Qlassic score akan diperolehi dan disediakan oleh pihak
CIDB. 👍🏽👍🏽👍🏽

3) Ejen jualan perumahan atau bangunan (Property Agent) - anda akan mendapat
kepercayaan dengan penjualan yang berkualiti kepada bakal pembeli samada rumah baru
atau sub sales.
THANKS!
TERIMA KASIH!

Let us assist you

[email protected]
+60-34042 8880
www.cidbholdings.com.my

Level 22, Menara

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