Project management can be defined in various ways but generally refers to planning, monitoring, and controlling all aspects of a project to achieve objectives on time and within budget. A construction project encompasses individual activities that have defined objectives, specifications, start/end dates, and consume resources. Project managers must determine long-term resource needs for planning and short-term needs for detailed planning. They must ensure resources are available as needed to meet schedules while keeping costs within budget. Organizational structures like functional, projectized, and matrix determine how project teams are structured and the level of authority given to project managers.
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Construction Resources Management
Project management can be defined in various ways but generally refers to planning, monitoring, and controlling all aspects of a project to achieve objectives on time and within budget. A construction project encompasses individual activities that have defined objectives, specifications, start/end dates, and consume resources. Project managers must determine long-term resource needs for planning and short-term needs for detailed planning. They must ensure resources are available as needed to meet schedules while keeping costs within budget. Organizational structures like functional, projectized, and matrix determine how project teams are structured and the level of authority given to project managers.
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Muungani R.
Quantity Surveying Department
NUST Project Management Can be defined as: The planning, monitoring and control of all aspects of a project and the motivation of all those involved to achieve project objectives on to time, and to cost, quality and performance (BS6079 Guide for Project Management, as cited by Fewings, 2005)
The art of directing and coordinating human and material
resources through the life of a project by using modern management techniques to achieve predetermined goals of scope, cost, time, quality and participant satisfaction (Project management institute, as cited by Fewings, 2005) A construction project mean different things to different people Can mean building a house, a high rise building, a dam, an industrial plant, an airport, or even remodeling or upgrading a facility (Ritz, 1994) Can be taken to comprise individual activities, each of which: Has a definite objective to be achieved, Has well defined specifications, Temporary in nature and has well defined start and completion dates, and Consumes resources Resources Management Resources for the Construction Industry Materials Manpower Machinery and consumables (Funds) Space Time Subcontractor? 1. Purpose of Resources Management The basic aim of Resources Management is to supply and support project operations so that the established time can be met and costs can be kept within the construction budget (Sears and Clough, 2008) under predetermined quality and project scope A project manager must determine long- range resource requirements for general planning and short-term resources for detailed planning Client categories Public or Private Profit or Non-profit Business case – the need to justify a need In this case all categories of clients will have a business case [which define the client’s objectives in the context of the project] During planning the PM must establish which resources will be needed, when they must be on site, and the quantities Arrangements must be made for their timely arrival with regular follow-ups so as to ensure that promised delivery dates are kept Where shortages or delays are anticipated, the project manager must devise appropriate remedial measures Who is this Project Manager?
Two Project Managers are under
consideration here: Consultant Project Manager and Contractor’s Project Manager Feasibility – alternative analysis & gap analysis Cost-benefit analysis Funding and investments appraisals Payback period Accounting rate of return Discounted cash flows Internal rate of return Sensitivity analysis Different ways of looking at a project depending on the viewpoint of the participant Different parts of a life cycle are often managed by different people and not all organizations are involved in the project all the way through from inception to completion e.g. main contractor gets involved from tendering to completion, but for them it’s a complete project with inception and completion There is therefore a need to be flexible when viewing a project life cycle e.g. Different forms of procurement put emphasis on different phases of the cycle, like the Design, Build, Finance and Operate (DBFO) which has a strong contractor involvement in the inception, feasibility, design, construction and operation phase of the project, which is not the case in traditional procurement 2. Project Organization Managing resources or a project is a centralized system of planning, organizing and controlling the field work to meet the aforesaid project objectives These are however not done in a compartmentalized way but they do overlap and are done concurrently This means a project manager must plan, organize, and control every activity on the project (Ritz, 1994) 2.1 Organizational Overview The level of authority a PM enjoys is denoted by the organizational structure in which it is being done (Heldman, 2007) Organizational structure involves, in addition to task organizational boundary considerations, the designation of jobs within an organization and the relationships among those jobs. http://www.referenceforbusiness.com/mana gement Organizational Structure
Note: Never allow the organizational
structure to get in the way of meeting project objectives Depending on authority, their title might even change to project leader, project coordinator, project expeditor The general goal of any organizational structure is to define: the work to be done, the people doing the work, and the workplace Work to be done is a function of project scope 2.2 Organizational Design Most organizations lean towards the functional or military style, using both vertical and horizontal structures The vertical structure shows the number of layers in the organization Note that every layer implies a communication filter and every filter is a potential chock point for the necessary flow of vital information The horizontal dimension depicts the span of control If span becomes unreasonably too big, supervision is compromised There is no limit on span size although 6 is normally considered appropriate in most management circles Why? Communication filters are added on both horizontal and vertical Comparison of tall and flat structures 2.3 Different Organization Structures All organizations are structured in one of the three ways: functional structure; projectized structure; and matrix structure Variations and combinations do exist among these three structures, e.g. a weak matrix, balanced matrix or a strong matrix It pays to understand the organizational structure of the entity in which one works – eases management of resources. The level of authority the PM enjoys is denoted by the organizational structure (Heldman, 2007) a. Functional Structure/Organization (Heldman, 2007)
Centered on specialties and grouped by
functions, e.g.HR, Finance, Marketing department, etc Work is specialized & requires people with set of skills and experience to perform specific duties for the department Each employee reports to one manager, and ultimately one person on top is in charge Functional (cont) Each department is managed independently and has a limited span of control If a need arise for any resource across, a chain of command is followed Projects are undertaken in a divided approach, e.g. marketing department will work on their portion of the project & then hand over to IT to do their part, etc If team members from different departments are called to work together, they will remain loyal to their functional managers – project manager has little authority Functional (cont) Resource Pressures Competition for resources can become fierce when multiple projects are undertaken within a functional organization Results in frustration and political infighting One department thinks that its project is more important than another, and will do anything to get that project pushed ahead of others (solutions???) (stakeholder buy-in, prioritization, etc) b. Projectized Structures/Organizations Nearly the opposite of functional structure The focus of this type of organization is the project itself The thrust is to develop loyalty to the project itself and not to a functional manager Organizational resources are dedicated to projects in such organizations PM almost have ultimate authority over resources and reports to the CEO Projectized (cont) Supporting functions such as HR and accounting may report to the PM as well PM responsible for making decision regarding the project, and acquiring and assigning resources Project teams are formed and co-located (physically work at same location) Project team members report to the project manager, not functional or departmental manager Drawback – project teams are dissolved at the conclusion of the project c. Matrix Structures/Organizations This takes the best of both the functional and project structure to come up with one Employees in a matrix organization report to one functional manager and to at least one project manager Also possible that employees can report to multiple project managers if they are working on multiple projects concurrently Functional managers take the administrative portion of the duties and assign employees to projects They also monitor the work of their employees on the various projects Matrix (cont) Project managers execute work assignments on various projects Both PM and functional manager share the responsibility of performance reviews for the employees The project team is free to focus on the project objectives with minimal distractions from the functional department If a PM is counting on a certain employee to work on a project, the PM should determine their availability up front with the functional manager Case for discussion – take the case of a medium to large scale building contractor during tendering
Which department or who does what and under whose supervision in your organization? The corporate organizational structure
In as much as project organizations are set to serve a
particular project, they must also blend in with the corporate organization and policies Corporate organizational structures also vary greatly depending on size of firm and market type Both line and staff home office constructional people usually move into the organization from service in the field. Makes it easier for the PM to relate to the corporate structure A shorter line of communication especially with distant sites is always an advantage Organizational structures often affected by firm’s position in the business cycles Home office organizations tend to grow in good times and shrink in bad Size of home office organization has direct bearing on general and administration expenses added to contract bid – affects number of projects being won 2.4 Constructing Project Organizational Structure Choosing the right project organization is the first and probably the most important key to successful project management Simplicity is beautiful regardless of size It shows key project functions and players in an easily understood format Good practice to have the chart early in the project even if some positions may not have been filled Step 1. definition of project Size of project Strategic importance Integration requirements (departments involved) Complexity Budget and time constraints What level of resources are available Stability of resource requirements Step 2. determination of key tasks Step 3. breaking down the project into tasks Step 4. list any hampering factor associated with the project Step 5. choose the structural organization form A project execution plan goes a long way shaping the overall organizational chart since it defines how the work will be executed; Location can also affect shaping of the same – separation of design and construction; After all concerned parties have approved the basic structure PM can proceed with reviewing and selecting key personnel to fill the slots – Team building 3. Field Procedure Manual (FPM) The heart of operating procedures for any construction project A key PM responsibility in organizing construction project operations Document lays ground rules under which the field organizations will function in executing the work The PM has the prime duty of seeing that the FPM is produced in time and that it works effectively for the life of the project Almost every company has a standard table of contents that is geared to its type of work FPM (cont) Equips the team members with the: who, what, when, where, how and why of the project without any false starts Important especially if the members have not worked together before Table of Contents for a FPM Funds appropriation and authorization procedures Contractual matter Project organization Project personnel policies Project coordination Planning and scheduling Project procurement procedures Field warehouse procedures Time-keeping methods Heavy construction equipment and tools etc All other project operations like designing and procurement are there to support field operations where the end product is being created The staff functions of project control that started in the head office carry over into field operations, and as the field operations gain momentum the project control functions gravitate to the site NOTE “The head office and site operations probably exhibit the worst compartmentalization syndrome within the contractor’s organization” Discuss!!!!! Measures taken by PM to counter the challenge? An organization is most effective when: Leaders articulate a clear and compelling vision and model integrity, accountability, and innovative thinking; It employs high quality, ethical and committed individuals; All its members know what is expected of them; Diverse perspectives and experiences are sought and valued; Respectful behavior is expected at all levels Its members are employed to make decisions and take calculated risks; Flexibility is permitted wherever possible; and Organizational leaders move quickly, but prudently, to address or remove individuals whose actions and performance are inconsistent with organizational needs and values 4. Resources Planning 4.1 Why Planning? In view of the present day resource limitations, optimum use of resources is essential. A project must be efficiently planned to make optimal use of limited resources; Its the starting point of all management functions. It leads to the organization of activities followed by directing, controlling and co-coordinating of the same (Gahlol and Dhir, 1992). Spearheads the successful conclusion of any project or the effective control of resources. Enhances management of construction risks and devises safe working methods (Cooke and Williams, 2004). A critical process throughout all stages of the construction process from inception to commissioning. The Planning Process The client’s Project Manager and the contractor are the key planners. 4.2 Overview of client planning process (Cooke and Williams, 2004) During Designing Stage Purpose: Appraise options Confirm business case Prepare strategic brief Assemble team (Team Building) Devise risk management plan and assessment Choose procurement arrangement Health and safety plan and file Prepare client’s master program Budget and cash flow Prequalify contractors Organize and administer the tender stage Prepare contract documents Sign contract During Construction Stage Pre-start meeting Check bonds and insurances Check construction health and safety Contract administration Make contractor payments Monitor progress Report to client Administer defects liability period Sign off final accounts 4.3 Contractor’s Planning Process 4.3.1 Pre-tender planning Pre-tender planning by the contractor may be defined as the contractor’s planning considerations during the preparation of an estimate and its conversion into a commercial bid. The contractor usually prepares a pre-tender program as an aid to the tendering process. (Cooke and Williams, 2004) The planning steps may include: examining drawings and specifications in order to identify various items of work; doing site investigations and market surveys to assess the availability and prices of materials, manpower, machinery and other facilities; identifying alternative methods of executing the work so as to select the most suitable and economic method; estimating quantities of different operations (depending on type of procurement method) and time requirements for their completion; preparing tentative schedule in line with stipulated completion time; and deciding the overheads and profit margins and finalizing the tender sum in line with stipulated time. Planning at this stage will assist the contractor’s estimator to price key method related items and time related items. The purpose of pre-tender planning includes: Decision to tender Pre-tender program Pre-tender arrangements Site visit report Enquiries with subcontractors and suppliers Tender method statement Build up estimates Build up preliminaries and generals Response for pre-tender H & S plan Tender risk assessment Adjudication management Analysis of tender performance 4.3.2 Pre-contract planning This normally takes place between the period of contract award and commencement of works on site, provided the procurement route is traditional, and may be different if the procurement route is different. Purpose of planning at this juncture includes allowing for: Provision of a broad outline plan or strategy for the project Pre-contract meeting and arrangements for commencing work Schedule key dates with respect to key material and subcontractor requirements Site layout planning Construction method statement Establish a construction sequence on which the master program may be based Material, plant, and labour requirements schedule Contract budget forecast Risk assessment Preparation and approval of H & S plan 4.3.3 Contract planning During this stage the master program is further developed through stage programs. Alternatively, the contractor might produce a series of short term programs at weekly or fortnightly interval so as to plan day to day work in detail. The contractor does contract planning in order to maintain control and ensure that the project is completed on time and within cost limits. Subcontractors contribute to the planning process by either submitting their work programs for approval or through discussions with the main contractor. Purpose of planning at this stage includes: Daily & weekly planning (short term) and monthly planning (long term) so as to monitor the master program Progress reporting (reviewing project and reporting on variances) Cost-value reconciliation Report to management Review/update of health and safety plan Effective planning is normally presented in form of a graphical schedule which is known as a program. A Program Normally includes: Duration of operations Type and quantity of materials and equipment Delivery dates Manpower requirements 5. Method Statements Their preparation forms an essential part if contractor’s planning process They underpin the programme and explain how the work is to be carried out May be categorized into three: the tender method statement the construction / work method statement the safety method statement The tabular format is probably simpler and easier to read rather than the report format although both are equally useful 6. Resource Allocation/Leveling When activities are conducted simultaneously, it leads to simultaneous demand for resources This leads to peak resource demand at certain stages of construction Peak demands over short periods maybe undesirable since, in terms of labour, it will lead to a hire and fire situation Instead its more desirable to have an approximately uniform requirements This brings about rescheduling and modification of resource requirements A resource graph or resource profile normally useful for regulating resource demands Need to identify activities as either interlinking or continuous activities in the process Continuous – ones started must be completed, while interlinked activities can be stopped and restarted again later Floats are used in the process of rescheduling and modification and cumulative resource requirements are plotted Floats are utilised by delaying the activities to cut down the demand for that particular resource, and the process is called resource leveling [The question below provides an opportunity for pupils to master this process] In-class Assignment END