Chapter 2 Outline

• Objectives of construction Management

• Overview of Project and Project Management
• Project Life Cycle
• Construction Projects: Main features
• Functions of Construction Management
• Project Management body of knowledge
• Resource management - Human resource management

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 Objectives of Construction Management

•The main objectives of the construction management team should

include:
Project completion within the allocated budget and duration,
Ensure that the production of construction works satisfy the client’s
functional requirements
Construction to specified standards
Provision of safe and satisfactory working condition.
• Accordingly, construction project management may be defined as the
overall control of the total management process to optimize the three
attributes of the process: Quality, Schedule and Cost.
OVERVIEW OF PROJECT AND
PROJECT MANAGEMENT
 Overview of Project
• A project is a unique endeavor to produce a
set of deliverables within clearly defined
constraints of time, cost and quality.
• A project is an investment activity where
resources are used to create capital assets
which produces benefits overtime and has a
beginning and an ending with specific
objectives.

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 Project Vs. Programme
 A programme is an ongoing development effort or
plan.
 A programme is therefore a wider concept than a
project.
 It may include one or several projects at various time,
with specific objectives linked to the achievement of
higher level of common objective
e.g. a health program may include a water project, as
well as construction of a health center both aimed at
improving the health of a given community which
previously lacked easy access to these essential
facilities.

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 Project Vs. Programme
 Projects which are not linked with others to form
a program are sometimes referred to as stand
alone projects.
 A project to build a feeder road from an interior
agricultural district to a district headquarter may
qualify to be a stand alone project.
 When projects are designed to improve health of
the community such as rural clean water supply
project, health center construction project, pit
latrine construction project and sanitary,
education project; they can be referred to as a
programme.
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 Project Vs. Business Operations
Projects are different from business operations in terms of uniqueness,
timescale, budget, resources, risks and change.
Uniqueness: Every project is different from the last one, whereas
operational activities typically involves repetitive (if not identical)
processes
Timescale: A project has clearly specified start and end dates within
which deliverables are produced to meet customer’s requirements.
Budget: A project has a maximum limit to the expenditure within
which the deliverables must be produced, to meet the customer’s
requirements
Resources: A project is allocated a specified amount of labour,
equipment and material at the start.
Risk: A project entails uncertainty and therefore carries business
risks
Change: The purpose of a project is typically to improve a situation
through the implementation of change.
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 Project Management
• Project Management is the capacity to marshal
resources, lay out plans, program work and spur effort for
a temporary endeavor which is finite in that it has a
defined beginning and ending, and which is undertaken to
create a unique product or service.

• Project Management is the utilization of skills, tools and

management processes to undertake a project
successfully .

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 Project Management
• Project management methodology includes:
▪ A set of skills: specialized knowledge, skills and
experience help to reduce the level of risks and improve
the likelihood of success.
▪ A suite of tools: Project managers use several types of
tools to ensure a project’s success rate. These include
templates, forms, registers, software, checklist, etc.
▪ A series of Processes: A suite of management
processes are needed to monitor and control the
project; such as time management, cost management,
quality management, change management, risk
management, etc.

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 Measure of Project Success
 A successfully managed project is one that is
completed at a specified time, acceptable quality
delivered on or before the deadline, and within
the budget.
 Client satisfaction will indicate success and
possibility of replication or sustainability.
 Each of these parameters is specified in details
during the planning phase of the project.
 This specification then forms the basis for
evaluating the project during the implementation
phase.

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Rationale for Project Management
• The essence of project management is to:
– Maximize chances of reaching the objectives of
the project which fits with the specification, and
respect or exceed the agreed QUALITY to be
delivered in TIME, SCOPE and BUDGET

– Strive for efficiency because of limited resources

which are available, and the need to achieve the
objectives of the project as earlier as possible

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 Key Measures on Project Management
1. Define the objectives, goals and products of the
project e.g in construction project you need to have
objectives and goals of the project
2. Check for feasibility i.e is the project viable or not
3. Make a project plan or schedule of activities
4. Organize the people who are going to carry out the
project and make sure that communication is clear
5. There is a need to have a baseline data(like
drawings, specifications, BOQ, schedule, etc.)
6. Then execute the plan
7. Control the activities and monitor the progress of
the project

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 Key Measures on Project Management

8. Measure and assess the project against the baseline

9. Evaluate the project
10. Re-plan any changes to the project implementation
with greater precision until project completion
11. Close the project
12. Learn lessons from the project

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 Construction Projects: Main features

1.Predetermined Objectives
 Components of a certain business
 Often the first phase
2.Constrained Schemes
 Schedule, Budget, Resources and Results / Scope Constraints
3.Too Fragmented
 In processes,
 In financial sources when co financed, and
 In responsible bodies
4.Investment
 Accelerates economic growth of a nation
 Cost Extensive, and
 Slow & Low business return on investment
 Construction Projects: Main features

5. Human Resources
 Involves large number
 Borrowed
High turnover
6. Construction Equipment
 Short life time, and
Highly cost extensive both to own and increase their life time
7. Reports and Monitoring disparity
 Exhibits Financial & Engineering Reports disparity during
implementations unless committed and compensation events are
not clearly considered
Functions of Construction Management
• The functions of construction management are the same to that of the five
managerial functions defined by Henry Fayol. The following seven functions
can better classify the different functions: Planning, Organizing, Staffing,
Motivating, Communication, Measuring and Correcting, and Coordinating.

i. Planning
• Planning is a function of devising the cause for the future with a vision,
formulated for the future state of the organization or the project. Planning
also involves preparation of alternatives for achieving specified objectives.
 In preparation of plans the following questions should be addressed:

What to do?

How to do?

Where to do?

Who is to do it?
How much does it cost?

 The detailing of the plan depends on:

Size of the project
Degree of difficulty

Knowledge and experience

Degree and extent of indeterminate operations

Extent of internal and external constraints

 Scheduling:

• Scheduling is timing of the work activities. During scheduling

questions like when to do it and how long it takes should be
addressed.

ii. Organizing
• Organizing is required to achieve effective utilization of the people,
facilities, equipment and money available to the Organization.
• Organizing also involves establishing a workable organizational structure
to divide the work into manageable department/sections and delegate tasks
accordingly.
iii. Staffing:
• Staffing involves assigning (employing) people to fill the posts created within the
organizational structure. Staffing also involves matching the organization’s needs with
each employee’s goals and desires, and it requires adherence to equal opportunity
regulations.
iv. Motivating:
• Motivation can be defines as follows:

• Motivation is the set of processes that moves a person towards a goal.

• Motivation is the internal or external forces that act on a person that arouse
enthusiasm and persistence to pursue a certain course of action.

•Motivation is important in management of people because a motivated workforce will

“go the extra mile” to exceed performance expectations on the job.
• There are a number of theories which formulate why people are motivated,

Hertzberg’s Two-Factor Theory:

• Considers factors that motivate, and reduce motivation (motivators & de-
motivators) and Key part of this theory is that two separate sets of characteristics
affect motivation and employee performance.

It considers Motivators as Achievement, Recognition, Responsibility,

Advancement, the Work Itself, and Job Content.

And De-Motivators (Hygiene) factors like Salary, Technical Supervision,

Company Policies and Administration, Interpersonal Relations, Working
Conditions, and Job Context.
v. Communication:
•Communication is a multifaceted management
responsibility. Communication can be formal and informal;
it is both written and oral.
• It utilizes paper, telephone, face-to-face, and electronic
means. Construction Managers communicate goals and
purposes; information, instructions, and inducements.
•They also ensure that the messages are sent and received in
the multitude directions.
vi. Measuring and Correcting:
•Measuring and Correcting involves:

• Measuring the actual performance

• Identify plan and schedule

• Compare plan against performance

• If there is discrepancy, identify the reasons

• Analyze the costs incurred

• Take remedial measures

• Observe quality of work

•NB: - “People work for what you inspect, not for what you
expect.”
vii. Coordinating:
•Coordinating – conduct regular departmental and
section heads meeting for discussion.
 CPM: Body of Knowledge

The Project Management Body of Knowledge

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C Project Management Body of Knowledge
The Project Management Body of Knowledge
•The Project Management Body of Knowledge (PMBOK) is a
collection of processes and knowledge areas generally accepted
as best practice within the project management discipline.
•As an internationally recognized standard (IEEE Std ) it
provides the fundamentals of project management, irrespective
of the type of project be it construction, software, engineering,
automotive etc.

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 CPM: Body of Knowledge
• The Project Management Body of Knowledge

PM BoK
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
1. Project Procurement and Contract Management
• Governance System
• Project Procurement Management
• Project Contract Management

2. Project Constraints Management

• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
3. Project Resources Management
• Project Financial Management
• Project Human Resources Management
• Project Materials Management 28
• Project Machineries and Plants Management
 CPM: Body of Knowledge
4. Project Environment, Health and Safety Management
• Project Environment Management
• Project H&S Management
5. Project Integration Management
• Project Feasibility (Economics) Management / Front –
End Assessment
• Project Portfolio Management;
• Project – Parent (HO) Relationships Management
• Project Communication & Performance Management
• Project Uncertainty and Change Management
• Project Uncertainty / Risk Management
• Project Configuration / Changes / Alterations Management
• Project Claim and Dispute Management
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
1. Project Procurement & Contract Management
involves:
• Procurement & Contract Governance System (Services Vs
Works)
• Construction Law
• Delivery System
• Contracting Method
• Procurement Method
• Contract Type
• Procurement and Contract Management Planning
• Establishing Procurement Team
• Deciding Proc & Cont Governance Structure
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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:

2. Project Constraints Management

• Project Time Management involves
• the management of Activities and Resources Dependencies
• PTM processes:
• Define Activities
• Sequence Activities
• Estimate Activities Resources
• Estimate Activities Durations
• Develop Schedule
• Monitor and Evaluate Schedule
• Critical Path Method Vs PERT Vs Critical Chain Method
• MS Project / Primavera

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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
2. Project Constraints Management
• Project Cost Management involves
• Cost Estimating, Budgeting and Controlling Costs
• Budget and Cash Flow Management
• PCM processes
• Activities Definition
• Define Measuring Units and Cost Coverage
• Estimate Activities Resources
• Define Crews and CBS
• Determine Resources Basic Prices
• Estimate Activity Costs
• Develop Cash Flows and Budget
• Monitor and Evaluate Costs
• Cost Estimate Vs Project Cycle / Phases
• Refer Cost Estimating Slides and Cases
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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
2. Project Constraints Management
• Project Quality Management involves
• Define & Plan Quality Requirements,
• Perform Quality Assurance & Control Services
• Project (as temporary organization) Management
• Product Quality Management
• Refer PMBoK

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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
3. Project Resources Management
• Project Financial Management
• Involves the management of Project finance
• Project Finance involves Project cash flow & liquidity
management
• Determine Organization and Project healthiness using Balance
sheet, Income Statement and Financial ratios
• Project Human Resources Management involves
• the management of Project personnel and Labor workmanship
and productivities
• Develop HR plan and Acquire, Manage and Develop Project
team
• Develop LBS, Define and Control Productivities and
Workmanship requirements
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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
3. Project Resources Management
• Project Materials Management involves
• the management of Materials Quality, Procurement &
Handling
• Develop MBS, Define and Control material quality
• Project Machineries and Plants Management involves
• the management of Machineries and Plants access,
installations, calibrations, productivities, costs and
maintenance

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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
4. Project Environment, Health and Safety Management
• Project Environment involves
• Environment Impact Assessment, Resettlement Action Plan and
Fire Protection; and their Implementation and Control
• Project Health involves
• Identifying health hazard work methods, chemicals, working
environments; Develop, Implement and Control preventive
methods
• Project Safety involves
• Identifying accident prone activities; Develop, Implement and
Control preventive methods

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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
5. Project Integration Management
• Project Portfolio Management / Project - Parent
Relationships Management
• the management of Organizational relationships and
authorities; and Resources Allocations among Programs and
Projects
• Develop Organizational Breakdown Structures (OBS),
Implement and Control OBS
• Project Communication Management
• the management of Project Management Information System
(PMIS)
• Plan communication requirements, Develop communication
mechanisms, Implement and Control Communications

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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
5. Project Integration Management
• Project Uncertainty and Change Management
• Project Risk Management
• Plan Risk Management, Identify Risks, Perform Risk Analysis
(Qualitative and / or Quantitative), Develop and Plan Risk
Responses (Scenario Management), Monitor and Control
Risks
• Project Configuration / Changes / Alterations
Management
• Develop and Plan Changes Management, Monitor and
Control Changes and Consequential Impacts
• Includes Requirement Changes Management, Project
Completion Time and Project Cost Variations Adjustment
System
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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
5. Project Integration Management
• Project Uncertainty and Change Management
• Project Claim and Dispute Management
• Develop and Plan Claim and Dispute Management, Monitor
and Control Claims and Disputes including their
Consequential Impacts

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 Resource Management
Human Resource Management
• Human resource is probably the most important of all
the resources involved in the
Construction Industry.
• Usually Labor in the form of technical and managerial
personnel and work forces in various trades and
professions are essential to carryout projects efficiently
and effectively.
• Thus any construction manager shall have the
necessary knowledge on personnel management.

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 Human Resource Management
• Any Human Resource management has to be based
on the existing Labor and other civil codes related to
worker’s right.
• Many construction projects face a challenge when it
comes to labor force management as they are not
aware of the prevailing laws and decrees.
• The detail view of labor management will presented
as all construction projects and construction firms
are effective as long as there employees are
effective.

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 Labor Management: -
• There are three types’ labor relations:
• Industrial relation: refers to all types of relationships
between the parties concerned within industrial
undertakings including construction, agriculture,
mining, commerce finance, transport and other
services
• Labor relations: refers to the relationship between the
labor union and management
• Employee relation: describes the relationship between
management and individual employee in that light it is
some times called “Employee-employee relations.”
 Objective of Labor Relation Management
• Thus the main objectives of Labor Relation
management are:
• To bring about healthy relations between employee
and employers
• To minimize Industrial disputes
• To secure harmonious relations among all who are
concerned with production and operation process
• To increase productivity of workforce

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 Objective of Labor Relation Management

To give workers their desired place by

considering them as partners and associating
them with management
• To give the workers their due share in profit,
improve their working conditions and their by
eliminating the possibility Industrial unrest
such as strikes, lockout etc.

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 Managing the Labor Relations Process
• The labor relation management process has
three phases.
• Union Organizing
• Collective Bargaining
• Labor Contract Administration

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 Managing the Labor Relations Process
Union Organizing
• In this phase the union organization
management confronts the issues involved
with union solicitation, election or reelection
conduct, and the certification election.

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 Managing the Labor Relations Process
• Collective Bargaining
• Collective bargaining is the phase that
management representatives negotiate with
union representatives on terms of workplace.
The end result of collective bargaining is the
labor agreement or contract.
• Mandatory Bargaining Topics: Wages, Hours
and Employment Conditions are usually
mandatory bargaining topics.

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• Wages: - Base pay rates, Overtime pay rates,
Retirement benefits, Health benefits, Travel pay,
and Pay incentives.
• Hours: - Overtime, Holidays, Vacation, and Shifts.
• Employment Conditions: - Layoffs, Promotions,
Seniority provisions, Safety rules, Work rules,
Grievance procedures, Union shop, and Job
descriptions.
• Collective bargaining requires negotiating skills
such as the understanding of conflict and conflict
management.

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• The principles of negotiation include:
• Honesty: telling the truth
• Working out the essential elements of
disputes
• Not to inject considerations that are not
relevant to the disputes
• To have patience
• To get prepared to work hard and keeping
oneself physically fit
• To empathize
• To be flexible
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Thank You!!