Introduction To Project Management

INTRODUCTION TO PROJECT
MANAGEMENT
WHAT IS A PROJECT?
Project Management Institute of USA, defines a project as
a Temporary endeavor undertaken to create a unique
product or service.
The UK Association for Project Management defines as a
discrete undertaking with defined objectives often include
Time, Cost and Quality.
The British Standard Institute defines a project as Unique
set of coordinated activities , with define starting and
finishing points undertaken by an individual or
organization to meet specific objectives with defined
schedules, cost and performance parameters.

CHARACTERISTICS OF A PROJECT
It is temporary , having a start to and a finish.
It is unique in some way.
It has specific objective
It is the cause and means of change.
It involve risks and uncertainty.
It involves the commitment of human, material and
human resources.
COMPLETION OF A PROJECT
Project may finish :
By reaching the project objective.
By discovering that the objectives cannot be
reached.
By terminating the project arbitrary.

PROJECT LIFE CYCLE
A Project having several phases. They are:
Beginning, Middle and End.
Occur sequentially.
Experience technical transfer.
PROJECT MANAGEMENT
The PMI defines Project management as The
application of knowledge ,skills, tools and techniques
to project activities to meet project requirement.
The UK Association for Project Management defines it
as Planning, Organization, Monitoring, and Control of
all aspect of a project and the Motivation of all
involved to achieve the project objectives on time to
Cost, Quality and Performance.

PROJECT STAKEHOLDERS
Project Stakeholders are individuals and organizations
that are actively involved in the project, or whose
interest may be affected as a result of project
execution or project completion. In a Civil Engineering
Construction Project Stakeholders will be,
Client
Consultant
Contractor.
PROJECT MANAGER
The PM is the person responsible for accomplishing the
project objectives.
The Project Management Team has a professionally
responsibility to its stakeholders, including customers,
the performing organization and the public.
Primary responsibility of the Project Manager is to
ensure that all work is completed on time, within the
budget and scope, and at the correct performance
level.
That is PM role is to manage the project ,not do the
work.
This is because PM job is not a technical job. It is about
getting people to perform work that must be done to
meet the objective of the project.
So the skills that a PM needs are people skills.
Therefore the skills need to do this aspect are
Planning, Organizing, Motivating, Controlling and
Communicating.

PROJECT MANAGER cont.
Many Project Managers who have strong
technical background find it difficult to deal with
people effectively.
They are things "oriented not people oriented.
The Project Managers job is mostly about dealing
with people, and it is absolutely essential that
you exercise, Leadership as well as Management
Skills
PROJECT MANAGER cont.
PROJECT MANAGEMENT PROCESS
A Process is way of doing things. There are FIVE process
that are used to manage a Civil Engineering Projects. They
are:
1. Initiating
2. Planning & Design
3. Executing
4. Monitoring & Control
5. Handover.
INTERPERSONAL SKILLS
In Project Management following interpersonal
relationships are needed.
1. Effective communication.
2. Influencing the Organization.
3. Leadership
4. Motivation
5. Negotiating and Conflict Management
6. Problem Solving.
PROJECT TEAM
There are many groups of people involved in both
Project and Project Management Cycle. eg: In a
Civil Engineering Project they will be Client,
Consultant & Contractor.
The Project Team is the Group of people
responsible for
Planning & Designing(Consultants)
Executing(Contractors)
Project Manager is the person responsible for ensuring
that the Project Team Completes the work.
This he will do by using the management skills such as
Planning, Organizing, Motivating, Controlling and
Communicating.
The Project Manager also responsible for secure
acceptance and approval of each stage of the project
form the Client who is the main Stakeholder of a Civil
Engineering Project.
Also he is responsible for communication , including
statues reporting and making sure the project is
delivered in budget on schedule and within scope.

PROJECT TEAM cont..
Project Team Members are responsible for executing
tasks and producing deliverables as outlined in the
Project Plan and directed by the Project Manager.
A Project Manager of a particular Project would
consider the task well done if the project finished on
time, according to its specified performance and within
its budgeted costs.
These three objectives(Time, Quality, Costs.) are the
basic parameters for measuring project success or
failure.
PROJECT TEAM cont..
SUCCESS/FAILURE CRITERIA OF A
PROJECT
Success or a Failure of a project is depend on
several criteria
In relation to the initial project definition.
Initial project definition period is clearly too early
for anyone to measure the success or failure of the
project but it is the time in the projects life history
when the foundation for success or failure laid.

Failure during project fulfillment period.
When authorization has been given for the project to
start, it is the Consultant and Contractor who take over
most of the responsibility for success or failure.
The success of the Consultant or Contractor will usually
be judged according to how well they achieve the three
primary objectives, Time, Quality and cost.

PROJECT cont..
Failure during the benefit realization period.
In most industrial and manufacturing projects
the project owner should start to realize the
expected benefits immediately or shortly after
the project is successfully finished and handed
over.

PROJECT cont..
PROJECT MANGEMENT
FOR CONSTRUCTION
Construction Project
In the owners point of view a Construction
Project includes following stages.
1. Planning
2. Designing
3. Financing
4. Constructing
5. Operating of physical facilities.
Project Management in Construction
Specialized knowledge in each of above discipline
can be very beneficial, particularly in large and
complicated projects, since experts in various
specialties can provide valuable service.
However it is advantageous to understand how
the different parts of the process fit together.
Waste, excessive cost and delays can result from
poor coordination and communication among
these specialist.

It is particularly in the interest of owners to insure that
such problems do not occur.
And it is important all that all participants in the
process to heed the interest of the owner because, in
the end, it is the owner who provide the resources for
the project.
To safeguard owners from such situations process of
Project Management is important rather than the
historical roles of various specialist such as Planners,
Architects, Engineers, Contractors and others.

cont..
It is through the understanding of entire process of
Project Management that these specialists can
respond more effectively to the owner's desire of their
services.
Project Management not only can aid the
construction industry, but also be the engine for the
national economy.
To understand the Concept of Project Management it is
important to understand the construction industry, its
operating environment which affects its activities.
cont..
THE PROJECT LIFE CYCLE
A Project is conceived to meet market demands
or needs .
The Project Life Circle includes:
Conceptual Planning & Feasibility
Design and Engineering(Construction Plans &
Specifications)
Procument and Construction.(Completion of
Construction)
Startup for Occupancy(Acceptance of Facility)
Operation & Maintence(Full filament of Useful Life)
Disposal of Facility.
Some owners may have in-house capacities to
handle the work in every stage of the entire
process.
Most owners choose to handle some of the
work in-house (Conceptual Planning &
feasibility) and to contract outside
professional services for other components of
the work needed (Design & Engineering and
Construction).
THE PROJECT LIFE CYCLE cont...
The Project Life Circle may be viewed as a
process through which a project is
implemented from cradle to grave.
Various stages of the Project Life Circle are
integrated to obtain the final out come.
Although each stage requires different
expertise, it is usually includes both Technical
& Managerial activities of the specialist.
Very often, the owner retains direct control of work
Planning and Programming stages, but increasingly
outside Planners and Financial Experts are used as
Consultants because of the complexity of the project.
All stages from conceptual planning, and feasibility
studies to the acceptance of a facility for occupancy
may be broadly lumped together and referred as
Design/ Construct process.
Operation & Maintence of a facility will go on long
after the completion of the project and its
responsibility lies on the Owner and he should consider
the Life Cycle Cost of the facility.

SELECTING
A SUITABLE PROJECT LIFE CYCLE
There is no single best approach in organizing Project
Life Cycle. All organizational approaches have
advantages and disadvantages.
It is important for the owner to be aware of the
approach which is most appropriate and beneficial for
a particular project.
When selecting owners should be concerned with the
LIFE CYCLE COST of constructed facility rather than
simply the initial construction cost.
Saving small amounts of money during the
construction may not be worthwhile if the result is
much larger OPEARTATING COST or not meeting the
functional requirements for the new facility
satisfactorily.

Therefore owner should very concerned with the
quality of the finished product as well as the cost
of construction itself.
Since facility operations and maintenance is a
part of Project Life Cycle , the owners expectation
to satisfy investment objective during the project
life cycle will require consideration of the cost of
operation and maintence.
Therefore the facilities Operating Management
should also be considered as early as possible ,
just as the construction process should be kept in
mind at the early stage of Planning &
Programming.
SELECTING
A SUITABLE PROJECT LIFE CYCLE cont.
MAJOR TYPES OF CONSTRUCTION
Construction projects can be divided in to
Four categories. They are:
Residential Housing Construction.
Institutional and Commercial Construction
Specialized Industrial Construction.
Infrastructure and Heavy Construction.

RESIDENTIAL HOUSING
CONSTRUCTION
Residential housing construction includes Single-
family houses, Multi-family dwellings and High-
rise Apartments.
During the development and construction of such
projects, the Developers who are familiar with
the construction industry usually serve as owners
and take charge, making necessary contractual
agreements for design and construction and
arranging the financing and sale of the completed
structures.

Residential housing design are usually
performed by Architects & Engineers, and the
construction executed by a contractor or a
builder.
An exception to this pattern is for single
family houses which may be designed by
builders as well.

RESIDENTIAL HOUSING
CONSTRUCTION cont..
INSTITUTIONAL AND COMMERCIAL
BUILDINGS
Institutional and commercial building construction
construction encompasses a great variety of project
types and sizes such as Schools, Universities, Hospitals,
Recreation Facilities and Sport Complexses, Shopping
Complexes, Warehouses and Manufacturing Plants and
hotel etc.
The owners of such buildings may or may not be
familiar with construction industry practices, but
usually select competent professional consultants such
as Project Managers, Architects, Engineers, Quantity
Surveyors and Builders to Plan and Design & Construct
the Project and arrange financing facilities by
themselves.

SPECIALIZED INDUESTRIAL
CONSTRUCTION
Specialized industrial construction usually
involves very large scale projects with high
degree of technological complexity, such as Oil
Refineries, Steel Mills, Chemical Processing
Plant and Nuclear power Plant etc.
The owners are deeply involved in the
development of a project, and prefer to work
with Designers-Builders such that the total
time for the completion of the project can be
shortened.

INFRASTRUCTURE AND HEAVEY
CONSTRUCTION
Infrastructure and heavy construction includes
projects such as Highways, Tunnels, Bridges,
Drainage Systems and Sewerage Treatment
Plants etc.
Most of these projects are Publicly owned
(Government) and finances through Taxes and
Loan facilities.
This category of construction is characterized
by a high degree of mechanization.
SELECTION OF PROFESSIONAL
SERVICES
SELECTION OF PROFESSIONAL
SERVICES
When a owner decides to secure professional
services for the design and construction of a
project he is confronted with variety of
choices.
The types of services selected depends
magnitude of the construction project.
In this respect owner can engage following
types of professional services.
FINANCIAL PLANNING CONSULTANTS
At the early stage of the planning of a project
owner often seeks the services of Financial
Planning Consultant such as Chartered
Accountant to evaluate the financial feasibility
of the construction project.
Investment Banks may also can be consulted
on various options for financing the facility in
order to analyze the long term effects on the
financial health of the owner organization.
ARCHITECTURAL & ENGINEERING
FIRMS
Traditionally the owner engages an Architectural
& Engineering firm as technical Consultants to
develop preliminary design.
After finalizing Engineering Design and financial
arrangement for the project, the owner will entre
into a construction contract with a General
Contractor either through competitive bidding or
negations.
ARCHITECTURAL & ENGINEERING
FIRMS cont.
The General Contractor will acts as a
Constructor or a coordinator of large number
of sub contractors who performs various
specialist functions to complete the project.
A/E firms complete the design and may also
provide on site inspection during the
construction.
The A/E firm will acts as a prime professional
on behalf of owner and supervise the
construction to achieve the satisfactory
results.
DESIGN /CONSTRUCT FIRMS
A common trend in large industrial type of
projects, is to engage in the Design/ Construct
Firm.
By entrusting Design and Construction, and
managed the project to a single organization,
many of the conflicts between Designers and the
Constructors might be avoided.
However an owner engaging a Design/ Construct
must ensure that the quality of the constructed
facilities is not sacrificed by the desire to reduce
the time or the cost for completing the project.
One of the most obvious advantage of the
Design/ Construct process is the use of phased
construction for large industrial types of
projects.
In such circumstances project can be divided
up to several phases, each of which can be
designed and constructed in a staged manner.
One of the disadvantage of this type of
approach is that it is difficult to make use of
competitive bidding in the type of Design/
Construct Process.

DESIGN /CONSTRUCT FIRMS cont.
PROFFESSIONAL CONSTRUCTION
MANAGERS
In recent years a new breed of Construction
Managers (CM) offers professional services from
the inception to the completion of a construction
project.
Construction Managers has some general
responsibilities which corresponds with the job
role.
These responsibilities involves, helping the owner
in acquisition of the land, The preliminary
Planning Process, Obtaining necessary permits,
hire workers, keep the tab on the progress of the
construction job and ensure that it is being
completed in a correct manner.
OPERATIONS AND MAINTENECE
MANAGERS
Although many owners keep a permanent staff
for the Operation & Maintence of constructed
facilities. Other may prefer to contract such tasks
to a independent Professional Manager.
It is common to find In-House staff for Operation
and Maintence facilities in specialized industrial
plants and infrastructure facilities.
But in the case of rental properties such as
Apartment Buildings and Office Buildings most of
the owners prefer to engage out side Managers
contracted for the purpose.
FACILITY MANAGERS
Facility Management is a field primarily
devoted to the maintenance and care of
commercial buildings such as Hospitals,
Hotels, Office Complexes and Convention
Centers.
According to International Facility
Management Association ,it is the profession
that encompasses multiple discipline to
ensure functionality of the Built Environment
by integrating Place, Process, Technology and
People.
It involves developing space inventories, possible
future renovations and modifications.
Operation and Maintence plans, Furniture
Inventories.
A common denominator of all firms entering into
this new services is that they all have strong
computer capabilities and heavy investment on
computer facilities.
FACILITY MANAGERS cont..
CONSTRUCTION CONTRACTORS
Builders who supervise the execution of a
construction project are traditionally refer to as
Contractors.
The General Contractor coordinates various tasks
of the project while Specialty Contractors such as
Electrical, Mechanical contractors perform the
work of their specialties.
Material & Equipment Suppliers often act as
Installation Contractors. They play a significant
role in a construction project since the conditions
of delivery of materials and equipment affect the
Quality, Cost and Time. To complete the project.

FINANCING OF CONSTRUCTION
FACILITIES
A major construction project requires an
enormous amount of capital .
Such funding is often supplied by the Lenders
who want to be associated with a project who
expects a form of return for their investment.

The Direct Costs associated with a major
construction project may classified in to two
categories. They are:
1. The expenses for Land acquisition, Legal
Fees, A/E Fees, Project Management Fees
and interest of the Loans.
2. Construction expenses paid to the general
Contractor for erecting the facility at the
site.
The direct construction costs paid to 2
nd
category
represent approximately 60-80% of the Total Cost
in most construction projects.
FACILITIES cont.
Since cost of construction are ultimately bear
by the owner careful financial planning for the
facility must be made prior to the
construction.
Construction Loans to contractors usually
provided by the Banks or Lending Institutions.
Construction Loans provided for different
types of construction varies.

FACILITIES cont.
In the case of Residential Housing Construction
Loans are long term mortgages can be obtained
from Savings or Commercial Banks.
For Institutional Buildings Construction Lanes are
usually obtained from Commercial Banks.
For infrastructure development by Government ,
the property cannot be used as security.
Generally such Loans are provided by
International Lending Institutions such as World
Bank, ADB and IMF and to secure the loan
different conditions are applied.

FACILITIES cont.
ROLE OF PROJECT MANAGER
ROLE OF PROJECT MANAGER
The management of construction projects
require knowledge of modern management as
well as understanding of the Design &
Construction process.
Generally Project Management is
distinguished from the General Management
of corporations by the Mission-Oriented.
A Project Organization will generally be
terminated when the mission is accomplished.
By contrast the General Management of business of a
industrial corporation assumes a broader outlook with
greater continuity of operations.
Nevertheless the one significant similarities as well as
differences between that of modern management
techniques deployed for General Management may be
adopt for Project management as well.
A working knowledge of General Management and
familiarity of the special knowledge relevant to the
project are very important for a Project Manager .
Supporting discipline such as Computer Based Systems
and also play an important role in Project
Management.

ROLE OF PROJECT MANAGER cont..

Function of Project Management for
Construction Project includes following.
Specifications and Project Objectives,
Plans including Scope, Budgeting,
Scheduling Performance requirements,
and selecting project participants.
Maximization of efficient Resource
Utilization through procument of labour,
materials and equipment according to
the Project Schedules.

.
Implementation of various operations through
proper coordination and control of Planning
Design, Estimating, Controlling the entire
construction process.
Development of effective communications
and mechanisms for resolving conflicts among
the various parties.
The Project Management Institute focuses on
Nine distinct areas requiring Project
Management knowledge. They are :

1. Project Integration Management: to ensure
that various project elements are effiecntly
coordinated.
2. Project Scope Management: To ensure that
all the work required is included.
3. Project Time Management: To provide
efficient project Schedule.
4. Project Cost Management: to identify
needed resources and maintain budget
control.
5. Project Quality Management: to ensure
functional requirements are met.
6. Project Human Resource Management: to
develop and effectively employ project
personal
7. Project Communication Management: to
ensure effective internal and external
communication.
8. Project Risk Management: to analyze and
mitigate potential risks.
9. Project Procument Management: to obtain
necessary resources from external resources.

ORGANIZATIONS OF PROJECT
PARTICIPANTS
ORGANIZATIONS OF PROJECT
PARTICIPANTS cont.
The top management of the owner sets the
overall policy and selects the appropriate
organizations to take charge of a proposed
Project.
Its policy will dictate how the Project Life Cycle
is divided among organizations and which
professionals should be engaged.
Decision by the top management of the owner
will also influence the organization to be
adopted for Project Management.
DECOMPOSING A PROJECT
In general there are many ways to decompose
a Project. They are:
Sequential Processing: where by Project is divided
in to separate stages is carried out in sequence.
Parallel Processing: where by the Project is
divided into independent parts such as that all
stages are carried out simultaneously.
Staggered Processing: where by the stages may
be overlapping such the use of phased design
construct provides for fast track.
CRITICAL ISSUES FOR PROJECT
MANAGEMENT
It should be pointed that some decomposition
may work out better than others ,depending
on circumstances.
The critical issue involved in organization for
Project Management are:
1. How many organizations are involved .
2. What are the relationship among
organizations.
3. When are the various organizations
brought in to in to the project.
ORGANIZING FOR PROJECT
IMPLEMENTATION
There are two basic approaches to
organization for Project Implementation. They
are:
Separation of Organization: Numerous
organizations serves as Consultants or Contractors
to the owner, with different organizations are
handling design and construction functions.
Typical examples are:
Traditional Sequence of Designing and Construction.
Professional Construction Management
Integration of Organizations: Single or joint
venture consisting of number of organizations
with a single command under takes both Design
and Construction.Eg:
Owner Builder operations including all works will be
handled by In House personal.
Turnkey Operations in which all works is constructed by
a One organization who is specialist in particular area
who is responsible for delivering the completion of the
Project.
ORGANIZING FOR PROJECT
IMPLEMENTATION cont.
TYPES OF PROJECT MANAGEMENT
STRUCTURES
Since construction projects may be managed
by spectrum of participants in a variety of
combination, Projects must have its own
structures. Some of the common Project
Management Structures are:
Matrix Types of Organizations
Project Oriented Organizations
MATRIX TYPE OF ORGANIZATION
In this type of organization Structure , each
Project may be staffed by existing personnel in
Functional Divisions of the organization on
and ad-hoc basis.
For an example Engineering division of an
Electric Power and Light Company has
following functions as shown in the following
diagram.

cont.
When a Project such as additional Transmission
Towers or a Sub Station are authorized a Matrix
Organization is used to carry out such Projects.
In case of designing of a Transmission Tower, the
professional skills of the Structural Engineer is
most important.
Therefore Project Manager the Project Team will
be selected from Structural Department, and rest
of the members of the Project Team are selected
from all other departments as dictated by the
manpower needs.
cont.
On the other hand in designing of a new Sub
station, the professional skills of an Electrical
Engineer is most important.
Hence the Project Manager the Project Team
will be selected from the Electrical
Engineering Dept.

cont.
PROJECT ORIENTED ORGANIZATIONS
This type of organizations consists of small
central functional staff for the exclusive
purpose of supporting a Projects, each of
which have its functional divisions as shown
in figure below.
This types of organizations are having a
Project Manager with autonomy in managing
projects.
cont.
There are many variations of management style
between these two extremes depending
On the objective of organizations and the nature
of the project.
For an example when the same Electric Power
and Lightning Company in the previous example
decided to build a new nuclear plant it will
engage a independent Project Manager to take
charge of the design and construction.
However company will also assigned a Project
Team coordinate with the Project Manager
cont.
cont.
Since the company eventually will operate the
Power Plant upon its completion, it is highly
important for its staff to monitor the design
and construction of the plant.

cont.
LEADSERSHIP & MOTIVATION FOR
PROJECT TEAM
The Project Manager in the broadest sense of
the term is the most important person for the
success or failure of a Project.
He is responsible for Planning, Organizing and
Controlling of the Project.
In turn Project Manager require authority
from Top Management of the organization to
mobilize the necessary resources to complete
the Project.
FACTORS CITED FOR SUCCESSFUL
PROJECT
1. Well defined Scope.
2. Extensive early Planning.
3. Good Leadership, Management and Line
Supervision.
4. Positive Client relationship with Client
involvement.
5. Proper project Team Chemistry.
6. Quick response to change.

EFFECTS OF PROJECT RISKS ON
ORGANIZATIONS
EFFECTS OF PROJECT RISKS ON
ORGANIZATIONS
The uncertainty in undertaking a construction
project comes from many sources and often
involves many participants in the project.
Only owner has the power to moderate such
conflicts as it alone holds the key to Risk
Assessment through proper contractual
relations with the participants.
Failure to recognize this responsibility of the
owner often leads to undesirable results.
CLASSIFICATION OF RISKS
Risks in Construction Projects may be
classified in to Three categories. They are :
1. Socioeconomic Factors
2. Organizational Relationships
3. Technological Problems.
SOCIOECONOMIC FACTORS.
This can be identified as follows.
Environmental Protection: The Environmental
Protection Acts ha contributed to the
uncertainty of construction because of the
inability to know what will required and how
long it will take to obtain approvals from
Regulatory Authorities.
Public Safety Regulations: This factor was
most noticeable in the projects involving in
nuclear Power Plants .
Economic Instability: Economic conditions in
the past decades have reinforced the climate
of uncertainty and high inflation and high
interest rates.
Exchange Rate Fluctuation: Frequent
fluctuation of exchange rates will have an
adverse impact on imported items.
SOCIOECONOMIC FACTORS cont.
ORGANIZATIONAL RELATIONSHIPS
Contractual Relationships: Strained
relationships may develop between various
organizations involved in design and
construction process.
When problems occur, discussions often
centered on responsibilities rather than project
needs at a time when the focus should be on
solving problems.
Attitudes of Participant & Communication:
Corporation and communication between
parties are discouraged for fear of the
impending litigations.
ORGANIZATIONAL RELATIONSHIPS
cont.
TECHNOLOGICAL PROBLEMS
The risk related to technological problems are
familiar to the Design/ Construction
profession which have some degree of control
over this category.
However due to rapid advances in the new
technology which present new problems to
design and constriction risks.
Certain design assumptions which have
served the profession well in the past may
become obsolete in dealing with the new
types of work.
TECHNOLOGICAL PROBLEMS cont.
REDUCING THE RISK FACTOR
Many owners have begin to understand the
problem of risks and are seeking to address
some of the problems.
For example, some owners are turning to
those organizations that offer complete
capability in Planning, Designing and
Construction and tend to avoid breaking the
projects into major components to be
undertaken by specialty participants.
Proper coordination through out the project
duration and good organizational connections
can avoid delays and cost resulting from
fragmentation of services, even though the
components from various services are
eventually integrated.
REDUCING THE RISK FACTOR cont.
MANAGEMENT AND THE DESIGN
PROCESS
THE FUNCTION OF DESIGN
The design process is the essential preliminary
activity of all construction projects and may
take place within or outside of the
contractors organization.
It is normally a function which is divided
between several offices each responsible for
its own specialized aspect of the process.
Thus it will be seen that it has characteristics
which create a complexity in its management
structure demanding good method of co-
ordination and communication.
One of the hazards in the management of the design
process is the difficulty of assessing, with some degree of
certainty, the likely duration of the stages of the work, or
indeed the effort required of the design team.
This in turn means that the cost is also liable to
considerable variation and is not necessarily easily
predicted.
A further variable factor of some importance is the level of
completeness required of the design information at each
stage of the design so that other participants may be able
to carry out their own activities without the danger of
inconsistencies of interpretation or incompatibility of
design decisions and that construction may start
THE FUNCTION OF DESIGN cont.
Whether the design is carried out by a
separate team of design consultants
(Arcthects and Engineers) or by sub section of
contractors own office, the design process
which are coordinated follow a very similar
pattern.

Innovative concepts in design are highly valued not for
not for their own sake but for the contribution to
reducing the cost and improvement of aesthetic,
comfort or convenience as embodied in a well design
facility.
How ever design professionals as well as contractors
must have an appreciation and full understanding of
the technological complexity often associate with
innovative design in order to provide a safe and sound
facility.
DESIGN PROCESS
Many definitions of the design process have been
written, varying in their approach according to the
background of the experience from which they are
written.
Management Expert Peter Drucker out line the design
activities as comprising;
1. Defining the problem.
2. Analysing a problem
3. developing alternative solutions
4. Deciding upon best of the alternatives.
5. Communicating the design decision in such a
way that they result in effective action.
STAGES OF DESIGN
There are THREE stages in design process. They
are:
Analysis: means the determination of objectives or
goals, the identification of problem and difficulties,
exploring relationship between the parts of the
problem and producing order from random
information.
Synthesis: the procedure of creating solutions for the
various parts of the problems, grouping these
together into feasible overall solutions whilst
generating original ideas.
Evaluation: the testing of alternative solutions
against appropriate selected criteria in order to
establish those which meet the requirements most
adequately.
When considering the management functions
in the light of the designing it is a
responsibility to foresee and solve those
problems which may arise in each stage and
which may be summarized as follows.
STAGES OF DESIGN cont.
1. To ensure that all the technical and other
information is available for each stage.
2. To provide right blend of professional skills to
resolve all the problems which can be
anticipated.
3. To make sure that every one concerned in
the project understands the extent and
nature of their responsibilities.
4. To see that the good communication links
exist between all those concerned and that
they are properly used.
5. To ensure that all decisions are timely and
are made known to those whom they affects.

THE DESIGN TEAM
The design is usually in the hands of a team of
professional specialists either employed in the
one office, or brought together from separate
enterprises as necessary.
The client of course must also be considered as
one of the team which will normally comprises:
1. Overall Project Manager
2. Architect
3. Quantity Surveyor
4. Civil and Structural Engineers
5. Building Services Engineers.

The function of coordination is a vital element in
the success of the operation of such teams.
From the foregoing comments it can be seen that
the Project Manager needs to combine
successfully two different functions which may be
define as:
1. The Management Functions: to ensure that
the project as a whole is well run, and to
coordinate the process of design.
2. The Design Functions: to contribute his own
design skills in the solution of the problems
and in the making of judgment.

THE DESIGN TEAM cont.
THE MANAGEMENT FUNCTIONS
The control of the design process in a design
office is normally concerned with the money
which is available for running that office and
which will come form one of the major control
parameters.
In an Independent Professional Practice , this
money is usually obtained from the fees which
are earned for the professional services
offered and hence can be related to individual
project.
Therefore important factors in the
management of design process, which must
be oriented towards producing a design
solution to series of problems normally by an
agreed time within a specified cost limit.

THE MANAGEMENT FUNCTIONS cont.
PROGRAMMING
If the design process is to be CONTROLLED it is
necessary to estimate the resources required to
execute the design stage and the periods for which
they are likely to be employed.
This refers closely to the points just made as it is
necessary to obtain some assessment of the work
involved in a project, the skills demand and the overall
duration allowable for each stage.
It is generally that it is very difficult to Design to
Order and therefore any attempt to predict the man-
hours required to accomplish each stage of a design
must be doomed to failure from the outset.

In the event of the work being carried out for
an agreed fee, there will probably be some
system of stage payments which should be
reflected in the planned expenditure program.
Every design project has its own particular
problems, demanding a level of skill and
experience, care must be taken to identify
these requirements in the planning stages so
that adequate time and skill can be allocated
to their solutions.
PROGRAMMING cont.
CONTROL SYSTEMS
In a project of any size it is usually the best policy
for there to be series of meetings specially
concerned with management of the job and the
various functions and discipline involved.
Planning Team Meeting: is set up by the clients
organization to make working polices and to
manage the job overall. These meetings should
be chaired by Clients representative (Project
Manager) and attended by the Team Leaders of
all the design discipline and the appropriate
member of the clients own team.

These meetings is centered around the work of
the design consultants and their interaction with
the Client representative (Project Manager)and
the needs of the various contributors for the
design process.
For this purpose a monthly Client Progress
Meeting should held between Design Team
Leader and the Project Manager who represents
the Client.
It is generally advisable to hold these meetings in
the design office , where personal and
information are readily available and it will seem
natural for the Designer to take the chair.
CONTROL SYSTEMS cont.
A further series of meetings is necessary to assist
the internal management of the Design Team
operations
These Project Team Progress Meetings should
be chaired by the Team Leader and involve a
progress report from each professional who are
involved in a specific design area.
Out come of these meetings should act as
briefing sessions for monthly Clients progress
Meetings.
CONTROL SYSTEMS cont.
INTRACTION BETWEEN DESIGN
AND CONSTRUCTION PHASES
INTERACTION BETWEEN DESIGN AND
CONSTRUCTION PHASES
In terms of management functions interaction
between design and construction phases as a
whole can be identified in three stages. They
are:
1. Design Phase
2. Tendering and Procument Phase
3. Construction Phase
It is this sequence of events which forms the
background of the Project Management.
DESIGN PHASE
Design Phase can be further divided as
follows.
1. Inception
2. Feasibility
3. Outline Proposals
4. Scheme Design
5. Detail Design
6. Production Information.
1. Inception: This the stage to set up client organization
for briefing and considering requirements and
appointment of Consultants after finalizing the
project Brief.
2. Feasibility: Stage that carry out feasibility studies of
site conditions, planning, design and cost etc. to reach
the decisions.
3. Out line proposals: Developing the brief further and
carrying out further studies on user requirements,
technical problems, planning design and cost etc. This
is the stage that sketch plans are finalized.

DESIGN PHASE cont.
4. Scheme Design: Final development of the brief,
full design of the project by engineers,
preparation of cost plan and full explanatory
report. Submission of proposal for all approvals.
5. Detail Designs: Full design of every part and
component of the project by collaboration of all
concerned. These are normally known as
Working drawings.
6. Production Information: Preparation of final
production information such as schedules and
specifications.
DESIGN PHASE cont.
TENDERING AND PROCUMENT PHASE
1. Bill of Quantities: Preparation of Bill of
Quantities and Tender Documents.
2. Tender Action: Selecting a suitable
Contractor.
Completion of these two stages will lead to
commencement of site operations.
CONSTRUCTION PHASE
1. Project Planning: Involves the choice of
technology, the definition of work tasks, the
estimation of required resources and
duration of individual task.
2. Operations at Site: Day to construction
activities.
3. Completion: Handing over procedures.
CONSTRUCTION PLANNING
Construction Planning is a fundamental and
challenging activity in the management and
executing of Construction Project.
It involves the choice of Technology, the
definition of work tasks, the estimation of the
required resources and definition of the
individual tasks.
A good construction plan is the basis for
developing the budget and the schedule of the
work.
In addition to these technical aspects of
Construction Planning, it may also be necessary
to make organizational decisions about the
relationships between project participants and
even which organizations, to include in the
project.
For example, the extent to which sub-contractors
will be used on a project is often decided during
the construction planning stage.
CONSTRUCTION PLANNING cont.
In developing a Construction Plan it is
common to adopt a primary emphasis on
either Cost Control or Schedule Control.
Frequently, most complex projects require
conditions of both cost and scheduling, so
that monitoring and record keeping must
consider both dimensions.

CONSTRUCTION PLANNING cont.
CHOICE OF TECHNOLOGY AND
CONSTRUCTION METHODS
As in the development of appropriate alternatives to
the design, choice of appropriate technology and
methods for construction are also critical ingredients
for the success of the project.
For example a decision whether to pump or transport
concrete in buckets will directly affects the costs and
duration of the task involved in construction.
A decision between these two alternatives should
consider the relative costs and availability of
equipment.
DEFINING WORK TASKS
At the same time that the choice of Technology
and general methods are considered in parallel of
planning process to define the various tasks that
must be accomplished.
These work tasks represent the necessary
framework to permit scheduling of construction
activities, along with the estimates and the
resources required by the individual tasks.
The term was Task or Activity refers to specific
define item of works.
Construction Planning is the necessary fore-runner to
scheduling.
In Construction Planning, defining work tasks,
technology and construction method are being done.
The defining of appropriate work tasks can be
laborious and tedious process yet it represents the
necessary information for application of formal
scheduling procedures.
In this respect various type of Project Planning Soft
wear are now available .
DEFINING WORK TASKS cont.
PROJECT SCHEDULING
In addition to assigning dates to project activities
project scheduling is intended to match the resources
of equipment , material labor with project work tasks
over time.
Good scheduling can eliminate problems due to
production bottlenecks, facilitating the timely
procument of necessary materials and other wise
insure the completion of a project soon as possible.
In contrast poor scheduling can results in considerable
waste of labor and equipment , waiting availability of
needed resources or the completion of precedence
task.

Many owners required detail schedules , to be
submitted by the contractor as a means of monitoring
the work progress. Here the Actual Work performed is
compared with the schedule to determine the progress
to find out whether project is proceeding safely.
Formal scheduling procedures have become much
more common with the advent of personal computers
on construction site and easy to use software.
PROJECT SCHEDULING cont.
The continues development of easy to use
computer software and improved methods of
presenting schedules has overcome the
practical problems faced with formal
scheduling mechanisms.
PROJECT SCHEDULING cont.
PRESENTING PROJECT SCHEDULES
Communicating project schedules is a vital
ingredient in successful Project Management.
A good presentation will greatly reduced the
managers problems of understanding the
multiple of activities and the relationships.
Graphical presentations of project schedules
are particularly useful since it is much easier
to comprehend a graphical display of
numerous pieces of information.
With the availability of Computer Graphics, the
cost and effort of providing graphical
presentations has been significantly reduce.
Net Work diagrams provide powerful
visualization of the precedence and its
relationships among the various activities
Another useful graphical representation is Bar
Charts or Gantt Charts illustrating schedule time
for each activity.
cont.
The Bar Chart lists activities and shows the
scheduled Start, Finish dates and durations.
Bar Charts are particularly helpful for
communicating the current statues and
schedule of activities on a project. As such
they have found wide acceptance as project
representation tool in the field.
cont.
COST CONTROL, MONITORING
AND ACCOUNTING
COST CONTROL, MONITORING AND
ACCOUNTING cont.
During the execution of a project, procedures for
Project Control, and Record Keeping become
indispensable tools to Project Managers and
other participants in the construction process.
These tools serves the dual purpose of recording
the financial transactions that occur as well as
giving Project Managers an indication of the
progress and problems associated with a project.

Interpretation of project accounts is generally not
straight forward until a project is completed, and then
it is too late to influence the Project Management.
Hence Project Managers needs to know to interpret
accounting information for the purpose of
management.
Project Control procedures are primarily intended to
identify deviations from project plan rather than to
suggest possible area of cost savings.

ACCOUNTING cont.
During the actual constructions, changes are
likely to delay the project and lead to
inordinate cost increases.
As a result, the focus of project control is on
fulfilling the original design plans or indicating
deviation of these plans, rather than on
searching for significant improvements and
cost savings.
ACCOUNTING cont.
THE PROJECT BUDGET
For Cost Control on a project, the construction
plan and the associated cash flow estimates can
provide the baseline reference for subsequent
project monitoring and control.
For schedules, progress on individual activities
and the achievement of milestone completions
can be compared with the project schedule to
monitor the progress of activities.
Detail cost estimates provides a baseline for the
assessment of financial performance during the
project.
To the extent that costs are within the detailed
cost estimate, then the project is thought to be
under Financial Control.
Overruns in particular cost categories signal the
possibility of problems and give an indication of
exactly what problems are being encountered.
THE PROJECT BUDGET cont.
For monitoring purposes, the original detailed
cost estimate is typically converted to a Project
Budget, and Project Budget is used subsequently
as a guide of management.
Specific items in detailed cost estimates become
job cost element.
Expenses incurred during the course of a project
are recorded in a specific job cost account
Thus individual job costs accounts generally
represent the basic unit for cost control.

In addition to cost amounts, information on material
quantities and labor inputs with in the each job
account is also typically retained in the project budget.
With this information, actual material usages and
labor employed can be compared to the expected
requirements.
As a result, cost overruns or savings on particular items
can be identified as due to changes in unit prices, labor
productivity or in the material consumed.
The number of cost accounts associated with
particular project can vary considerably.
For Contractors, on the order of four hundred
separate cost accounts might be used on a small
project.
These accounts record all the transactions
associated with a project.
Thus, separate accounts might exists for different
types of materials, equipment used, pay roll etc.
FINANCIAL ACCOUNTING SYSTMS AND
COST ACCOUNTS
The Cost Accounts described in previous sections
provide only on various components in a Financial
Accounting System.
Accounting information is generally used for three
distinct purposes.
1. Internal reporting to Project Managers for day-to-
day planning and Monitoring.
2. Internal reporting to Managers for Planning
purposes.
3. External reporting to owners, government ,
regulators and other out side parties.
Preparation of external reports is referred as
Financial Accounting
In contrast Cost and Managerial Accounting is
intended to aid internal Managers in their
responsibility of Planning, Monitoring and
Control.
Project Costs are always included in the system of
Financial Accounts for an entire organization.
FINANCIAL ACCOUNTING SYSTMS AND
COST ACCOUNTS cont.
CONTROL OF PROJECT CASH FLOW
It has been stated that development of information for
the control of project costs with respect to the various
functional activities are appearing in the Project
Budget.
Project Managers also are involved with assessment of
the overall status of the project , including the statues
activities, financing, payments and receipts.
These various items comprise the project and financing
Cash Flows .
ELEMENTS OF A CASH FLOW
STATEMENT
Following are the elements of a Cash Flow statement.
Costs: This is a summary of charges as reflected by the
job costs accounts including all the expenditure. This
row provides the cost incurred up to date and also
percentage out of total estimated costs.
If the Actual Cost at a particular stage has increase
compare to the Budgeted Cost to very same period due
to the effects such as changes in unit prices for labor or
materials, needless to say , this increase in Actual Cost
is not a welcome change for the Project Manager
Billings: This row summarize expected monthly Interim
Valuations based on actual work done.
Payables: The payables row summaries the amount
owed by the contractor to material suppliers, labor or
sub contractors.
Receivables: This row summarize the cash flow of
receipts from owner. Note that the actual receipts from
the owner may differ from amounts billed due to
certification by the client and the retention kept by the
client.
STATEMENT cont.
Cash Position: This row summarize the
Receivables LESS Payables. As a result NET
CASH balance can be PLUS or Minus. This
figure helps to identify whether contractor
need extra cash from external resources (eg:
Banks) to fund the project till he get his next
Interim Valuation.

STATEMENT cont.
SCHEDULE AND BUDGET UP DATES
Scheduling and Project Planning is an activity that
continuous through out the life time of a project.
As changes or discrepancies between the plan
and the realization occur project schedules and
cost estimates should be notified and new
schedule devised.
Periodic up dating of future activity durations and
budgets is especially important to avoid to
project experiencing problems.
If one type of activity experiences delays on a
project, then related activities are also likely to
delayed unless managerial changes are made.
Construction projects normally involve
numerous activities which are closely related
due to the use of similar materials,
equipment, workers or site characteristics.
cont.
In essence, duration and cost estimates for
future activities should be revised in light of
the actual experience on the job.
Without this up dating , project schedules slip
more and more and more as time progress.
To perform this type of updating,Project
Managers need access to original estimates
and estimating assumptions.
cont.
QUALITY CONTROL AND SAFETY
DURING CONSTRUCTION
DURING CONSTRUCTION
Quality Control and Safety represent
increasingly important concern for Project
Managers.
Defects or failures in constructed facilities can
result in very large costs.
Even with minor defects, re-construction may
be required and facility operations impaired.
Increased costs and delays are the results.

In worst case, failures may cause personal
injuries or fatalities.
Accident during the construction process can
similarly result in personal injuries and large
costs.
Good Project Managers try to ensure that the
job is done right the first time and that no
major accidents occur on the project.

DURING CONSTRUCTION cont.
As with Coat Control, the most important decisions
regarding the quality of a completed facility are made
during the design and planning stages rather than
during construction.
It is during these preliminary stages that component
configurations, material specifications and functional
performance are decided.
Quality control during construction consists largely of
insuring conformance to these original design and
planning decisions.
While conformance to existing design
decisions is the preliminary focus of quality
control, there are exceptions to this rule.
First, unforeseen circumstances, in correct
design decisions or changed desired by an
owner in the facility function may require re-
evaluation of design decisions during the
course of construction.
While these changes may be motivated by the
concern for quality, they represent occasions for
re-design with all the attended objectives and
constraints.
As second case, some designs rely upon informed
and appropriate decision making during
construction.
For example tunneling method make decisions
about amount of shoring required different
locations based upon observation of soil
conditions during tunneling process.

Since such decisions are based on better
information concerning actual site conditions, the
facility design may be more cost effective as a
result.
With the attention to conformance as the
measure of quality during construction process,
the specification of quality requirement in the
design and contract documentation becomes
extremely importance.
Quality requirements should be clear and
verifiable, so that parties in the project can
understand the requirement of conformance.
Safety during construction project is also
influenced in large part of decisions made during
the planning and design process.
Some designs or construction plans are
inherently difficult and dangerous to implement,
where other, comparable plans may considerably
reduce the possibility of accidents.
ORGANIZING FOR QUALITY AND SAFTY.
A variety of different organizations are possible
for quality and safety control during construction.
One common model is to have a group
responsible for quality assurance and another
group primarily responsible for safety with in the
organizations.
In large organizations, department dedicated to
quality assurance and safety might assign specific
individuals to assume responsibility for these
functions on particular projects.
Insuring safe and quality construction is a concern of
the Project Manager in overall charge of the project in
addition to the concern of personal, cost, time and
other management issues.
Inspectors and Quality Assurance personal will be
involved in a project to represent a variety of
organizations.
Each of the parties directly concerned with the project
may have their own quality and safety inspectors,
including the owner, the consultants and the various
construction firms.

ORGANIZING FOR QUALITY AND
SAFETY cont.
In addition to on site inspections, samples of
materials will commonly tested by specialist
laboratories to insure specifications.
Quality control should be a primary objective for
all the members of a project team.
Employee participation in quality control should
be sought and rewarded, including the
introduction of new ideas.
Most important of all, quality improvement can
serve as a catalyst for improved productivity.

ORGANIZING FOR QUALITY AND
SAFETY cont.
WORK AND MATERIAL SPECIFICATIONS
Specifications of work quality are an important
feature of facility design.
Specifications of required quality and
components represents part of the necessary
documentation to describe the facility.
Typically this documentation includes any special
provisions of the facility design as well as
references to generally accepted Specifications to
be used during construction.

General Specifications of work quality are
available in numerous fields and are issued as
publications (in Sri Lanka-ICTAD).
Construction specifications normally consists
of a series of instructions or prohibitions for
specific operations.
WORK AND MATERIAL SPECIFICATIONS
cont.
TOTAL QUALITY CONTROL
Quality Control in construction typically involves
insuring compliance with minimum standards of
material and workmanship in order to insure the
performance of the facility according to the design.
For the purpose of insuring compliance, random
samples and statistical methods are commonly used as
the basis for accepting or rejecting work completed
and batches of materials.
Rejection of a batch is based on non-conformance or
violation of the relevant design specifications.

The traditional quality control practice is the notion of
an Acceptable Quality Level which is an allowable
fraction of defective items.
Material obtained from suppliers or work performed by
an organization is inspected and passed as acceptable
if the estimated defective percentage is within the
acceptable quality level.
In contrast to this traditional approach of quality
control Total Quality Control System being introduced

TOTAL QUALITY CONTROL cont.
In this system, no defective items are allowed any where in
the construction process.
While the zero defects goal can never be permanently
obtained, it provides a goal so that organization is never
satisfied with its quality control program even if defects are
reduced by substantial amounts year after year.
This concept and approach to quality control was first
developed in manufacturing firms in Japan and Europe, but
has since spread to many construction companies.
The best known formal certification for quality
improvement is the International Organization for
Standardizations ISO 9000 standards.
ISO 9000 emphasize good documentation, quality
goals, series of cycles of planning,
implementation and re-view.
Total Quality Management is a commitment to
quality expressed in all parts of an organization
and typically involved many elements.
Design reviews to insure safe and effective
construction procedures are a major element.

Other elements include extensive training for
personal, shifting the responsibility for detecting
defects from quality control inspectors to
workers, and continually maintain of equipment.
Worker involvement in improved quality control
is often finalized in Quality Circles, in which
groups of workers meet regularly to make
suggestions for quality improvement.

Material suppliers are also required to insure
zero defects in delivered goods.
Initially all materials from a supplier are
inspected and batches of goods with any
defective items are returned.
Suppliers with good records can be certified
and not subject to complete inspection
subsequently.

SAFETY
Construction is a relatively hazardous undertaking.
There are significantly more injuries and lost working
days due to injuries or illnesses in construction than in
virtually any other industry.
These work related injuries and illnesses are
exceedingly costly.
Included in this total are direct costs such as, medical
costs, premium for worker compensation benefits,
liability and property losses as well as indirect costs
such as reduced worker productivity, delays in projects,
administrative time and damage to equipment and the
facility.
In contrast to most industrial accidents,
innocent by standers may also be injured by
construction accidents.
Several crane collapses from high rise
buildings under construction have resulted in
fatalities to passerby.
Prudent Project Managers and Owners would
like to reduce accidents, injuries and illnesses
as much as possible.
SAFETY cont.
The causes of in construction are numerous.
The largest single category for both injuries
and fatalities are individual falls.
Handling goods and transportation are also a
significant cause of injuries.
As with all the other costs of construction, it is
a mistake for owners to ignore a significant
category of costs such as injury And illness.
SAFETY cont.
While contractors may pay insurance
premiums directly, these costs are reflected in
bid prices or contract amounts.
But delays caused by injuries and illnesses can
present significant opportunity cost to
owners.
Various measures are available to improve
jobsite safety in construction.

SAFETY cont.
Educating workers and managers in proper
procedures and hazards can have direct impact
on job site safety.
The realization of the large costs involved in
construction injuries and illnesses provides a
considerable motivation for awareness
education.
Regular safety inspections and safety meetings
have become standard practices on most job
sites.
SAFETY cont.
While eliminating accidents and work related
illnesses is a worthwhile goal, it will never be
attained.
Construction has a number of characteristics
making it inherently hazardous. Large work forces
are involved in many operations.
The job site continuously changing as
construction proceeds.
Despite these peculiarities and as a result of
exactly these problems, improving work site
safety is a very important Project Management
concern.
SAFETY cont.
CHANGING ENVIRONMENT OF
THE CONSTRUCTION INDUSTRY
CHANGING ENVIRONMENT OF THE
CONSTRUCTION INDUSTRY
The construction industry plays a central role in
national welfare, including the development of
residential housing, office buildings and industrial
plants, and the restoration of the nations
infrastructure and other public facilities.
To be more specific, construction refers to all
types of activities usually associated with the
erection and repair of immobile facilities.
Contract construction consists of large number of
firms that perform construction work for others.
New Technologies
In recent years, technological innovations in
design,materials and construction methods have
resulted in significant changes in construction costs.
Computer-aids have improved capabilities of
generating quality designs as well as reducing the time
required to produce alternative designs.
New materials not only have enhanced the quality of
construction but also have shortened the time for shop
fabrication and field erection.
Construction methods have gone through various
stages of mechanization and automation, including the
latest development of construction robotics.
The most dramatic new technology applied to
construction has been the Internet. The Internet
is widely used as a means to foster collaboration
among professionals on a project, to
communicate for bid results, and to procure
necessary goods and services.
Real Time Videos from specific construction site is
widely used to illustrate construction progress to
interested parties.
New Technologies cont.
It is unmistakable that design professionals and
construction contractors who have not adapted
to changing technologies have been forced out of
the mainstream of design and construction
activities.
Ultimately, construction quality and cost can be
improved with the adoption of new technologies
which are proved to be efficient from both the
view points of performance and economy.

New Technologies cont.
Labor Productivity
The term Productivity is generally defined as a ratio of
the production output volume to the input volume of
resources.
Labor constitutes a large part of the cost of
construction, labor productivity in terms of output
volume per person hour is a useful measure.
Labor productivity measured in this way does not
necessary indicate the efficiency of labor alone but
rather measures the combined effects of labor,
equipment and other factors contributing to the
output.
Construction costs usually run parallel to material
prices and labor wages.
Actually over the years, labor productivity has
increased in some traditional types of
constructions and thus provides a leveling or
compensating effect when hourly rates for
labor increases faster than other costs in
construction.

Labor Productivity cont.
Public Scrutiny
Under the present climate in most countries ,
the public is increasingly vocal and scrutiny of
construction projects.
Sometimes it may result in considerable
difficulty in siting new facilities as well as
additional expenses during the construction
process itself. Owners must be prepared to
manage such crises before they get out of
control.

Surveys has shown that over fifty percent of the people
surveyed would accept a ten story office building within
five miles of their home, but only twenty five percent
would accept a large factory or coal fired power plant at
similar distance.
Even at a distance of one hundred miles, a significant
fraction of the public would be unwilling to accept
hazardous waste facilities or nuclear power plants.
This objection to new facilities is a widespread public
attitude, representing considerable skepticism about the
external benefits and costs which new facilities will impose.
It is this public attitude which is likely to make public
scrutiny and regulations a continuing concern for
construction industry.
Public Scrutiny cont.
International Competition
In modern days It has been noted that the
increasing level of international competition in
the construction industry.
Owners are likely to find non-traditional firms
bidding for construction work, particularly on
large construction projects.
In this environment of heightened competition,
good project management and improved
productivity are more and more important.
Contractor Financed Projects
Increasingly, some clients look to contractors or joint
ventures as a resources to design, to build and to
finance a constructed facility.
For example a country seek a consortium of a
design/construct firm and a financial investment firm
to assume total liability of a project during construction
and thereby eliminate the risks of cost escalation to tax
payers, and the Government.
In this case the owner the Government may take over
the completed facility and service the debt on
construction through long term financial
arrangements.

Lean Construction
Lean Manufacturing had a revolutionary effect on
many industries, especially automotive assembly
companies.
Character of this approach includes:
1. Improvement in quality and reduction of waste
everywhere. Rather than increasing costs,
reducing defects and waste proved to improve
quality and reduce costs.
2. Empowering workers to be responsible for
satisfying customer needs. In construction, for
example, craftsmen should make sure their
work satisfied the design intent.
3. Continues improvement of process involving
the entire workforce.

Lean construction is intended to spread these
practices within the construction industry.
Of course well managed construction projects
already have many aspects of lean construction.
For example, just-in-time delivery of materials is
commonplace to avoid the waste of large
inventory stockpiles.
Green building projects attempt to re-use or re-
cycle all construction waste.
Lean Construction cont.
Role of PM on Changing Environment
In the Project Life Cycle, the most influential factors
affecting the out come of the project often reside at
the early stages.
At this point, decisions should be based on competent
economic evaluation with due consideration for
adequate financing, the prevalent social and regulatory
environment, and technological considerations.
Architects and Engineers might specializing in planning,
in construction field management, but as Project
Managers, they must have some familiarity with all
such aspects in order to understand properly their role
and be able to make competent decisions.

The greatest stumbling block to effective management in
construction is the inertia and historic divisions among planners,
designers and constructors.
While technical competence in design and innovation remains the
foundation of engineering practice, the social, economic and
organizational factors that are pervasive in influencing the success
and failure of construction projects must also be delt with
effectively by design and construction organizations.
Of course Engineers are not expected to know every detail of
management techniques, but they must be knowledgeable enough
to anticipate the problems of management so that they can work
harmoniously with professionals in related fields to overcome the
inertia and historic division.
cont.
The owners have much at stake in selecting a competent
Project Manager and in providing her or him with the
authority to assume responsibility at various stages of the
project regardless of the types of contractual agreements
for implementing projects.
Of course, the Project Manager must also possess the
Leadership quality and ability to handle effectively intricate
interpersonal relationships within an organization.
The ultimate test of the education and experience the
Project Manager for construction lies in her or his ability to
apply fundamental principals to solving problems in the
new and unfamiliar situations which have become the
hallmarks of the changing environment in the construction
industry.
cont.

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