CONSTRUCTION PROJECT

MANAGEMENT
INTRODUCTION

Construction tasks include numerous inter-dependent and inter-related activities.

Universally, the construction of capital intensive facilities is undertaken by
'projecting' them, i.e., organizing the major works into one or more construction
projects for implementation.

The internationally renowned Project Management Institute in USA has identified

nine core knowledge areas in their standard Project Management Book of
Knowledge(PMBOK).

These include management of:

• scope
• time
• cost
• quality
• procurement
• risk
• human
• resource
• communication
• project integration
PROJECT

A project is defined as a temporary endeavor undertaken to create a new product

or service to achieve specified objectives within the assigned resources. Projects
are usually a part of an overall strategic program. A program at the macro level
comprises one or more projects i.e.

• Constructing a building or facility

• Developing a new product or service
• Designing a new transportation system
• Running a campaign for political office

In general, the term 'construction project' refers to a high-value, time-bound,

special construction mission with pre-determined performance objectives.
Construction projects employ huge resources of men, materials and machines.
The construction project mission is accomplished within complex project
environments by putting together human and non-human resources to form a
temporary organization (like the special mission task force of the army), headed
by a project manager.
UNIQUE CHARACTERSTICS OF A PROJECT

1. UNIQUE PURPOSE
2. LIFE CYCLE
3. CATEGORIES
4. SIZE
5. OBJECTIVE
6. ENVIRONMENT

1. UNIQUE PURPOSE:

Each project has a specified mission or a purpose that has to be achieved within
time, budget and quality specifications.

Each project mission is unique as no two projects are ever alike. Projects differ
from each other in one or more influencing factors such as the client, the
contractors, quality specifications, resources employed, responsibilities
delegated and the project environments.
UNIQUE CHARACTERSTICS OF A PROJECT

2. PROJECT LIFE CYCLE:

Each construction project has a pre-determined duration with a definite

beginning and an identifiable end. Each project is divided into several phases.

A project starting point is the time when the idea or the need is conceived by the
client and its end marks the time when the mission is accomplished. The time
between the start and completion of a project represents the project life cycle.

Collectively, a project life cycle comprises of the project phases, from the
beginning to the end of the project. These phases in a project life cycle, for
management control, are called 'project initiation or scope formulation', 'project
planning', 'project execution', 'project control’, and 'project close-up'.
UNIQUE CHARACTERSTICS OF A PROJECT

In a project life cycle, there is a

gradual build up in the use of
resources from the start of the
project. It is followed by a long
duration plateau during the
execution phase, where most of the
expenses are incurred and towards
the end, there is a rapid run-down
as the project draws to a conclusion.

The probability of successfully

completing the project is lowest at
the start of the project and hence
the risk and uncertainty are the
highest.
The probability of completion
gradually increases and the risks
reduce as the project progresses.
UNIQUE CHARACTERSTICS OF A PROJECT

3. PROJECT CATEGORIES:

Broadly, the major construction projects can be grouped into four groups:

Building Construction Projects: Building works include residential & commercial

complexes, educational & recreational facilities, hospitals & hotels, warehouse &
marketing facilities; 'Buildings' constitute the largest segment of the construction
business.

Infrastructure Construction Projects: These heavy construction, equipment-

oriented works include dams & canals, highways & airports, railways & bridges,
oil/gas pipelines & transmission lines, large water supply & sewage disposal
networks, docks & harbors, & other specialist construction activities which build
up the infrastructure for the growth of the economy.

Industrial Construction Projects: These works include construction of power

generation, manufacturing, processing & industrial plants like nuclear & thermal
power plants, steel mills, petroleum refineries, consumer goods factories,
industrial works, utility services, environmental works and human needs facilities.

Special-Purpose Projects: These include environmental works, emergencies,

remedial works, installation and commissioning of equipment, and complex key
operations.
UNIQUE CHARACTERSTICS OF A PROJECT

4. PROJECT SIZE CLASSIFICATION:

UNIQUE CHARACTERSTICS OF A PROJECT

5. PROJECT OBJECTIVES:

Each project is assigned pre-determined objectives. Project objectives depend

upon many factors that determine the outcome of a project. The six main
parameters that can sufficiently define construction project objectives are work
scope, complexity, quality, productivity, completion time and cost.

The evaluation of the inter-relationships among the six project parameters is a

complicated process. However, in a given project, the scope of work in terms of
size, repetition and quality gets specified and these parameters can thus be
treated as constants. Productivity standards for each resource item needed to
execute a work in a given time is estimated and this forms the basis for
determining the time and cost of the project.

The value of the three parameters, i.e., time, cost and resources productivity
depends upon the effectiveness and efficiency with which the project is
managed. Therefore, in a project with predefined scope of work and quality
standards, completion time, production cost and resources productivity become
the project objectives.

The planning and controlling methodology employed for time, resources and
costs is called Project Management Techniques.
UNIQUE CHARACTERSTICS OF A PROJECT

6. PROJECT ENVIRONMENT:

Most of the construction projects, containing numerous inter-dependent and

inter-related activities, have one or more of the following characteristics
associated with them:

• Initially the details of work are not precisely defined.

• Scope of work gets modified during execution.
• Nature of work varies from job to job.
• Work sites are located in remote areas.
• Places of work are spread out.
• Resource requirement and organization of work differ with each task.
• Performance is affected by unexplored site geology, uncertain weather and
unforeseen natural calamities.
• Impact of events and changes in the external environment like changes in
economic policies, rapidly changing technology, fast– moving economic
conditions and susceptible political environments add new dimensions to the
complex nature of construction projects.
PROJECT LIFE-CYCLE : PHASES AND PROCESS

PHASES:

The project life cycle of a construction project generally follow similar pattern. It is
divided into several phases for management control. These phases in a typical
construction project are :

Note how each phase is overlapping with one or more phases. This is the true representation
of how each phase is carried out in reality.
PROJECT LIFE-CYCLE : PHASES AND PROCESS

INITIATION PHASE :

This aims at the formulation of the project scope and the implementation
strategy, if the project is approved for implementation. The end of this phase
marks the client go ahead / no–go decision. The project charter outlines the
project scope, objectives, preliminary plans, and organization for the execution of
the project. The end of the initiation phase marks the start of the project
management process.

PLANNING PHASE :

The objective of this phase is to develop a workable plan to accomplish the

project mission. In its broader sense, planning involves intellectual thinking in
advance as to what is to be done, where it is to be done, how it is to be done,
when it is to be done, what is needed to do it, who is to do it and how to ensure
that it is done; all the thinking is channelized to generate and evaluate options for
evolving the action plan. Planned thinking follows a systematic approach.
Planning techniques are the tools used to systematize and transform the mental
planned thinking into an integrated project plan with the aim of reaching
specified goals. Major contracts are finalized at the end of this phase.
PROJECT LIFE-CYCLE : PHASES AND PROCESS

INITIATION PHASE :

This concerns with coordinating and managing people and other resources to
carry out the plan. It is the client project manager who is accountable to the
client for the entire construction phase. He ensures smooth functioning at site
and makes decisions when the site faces problems. He manages the entire
construction process so as to achieve the assigned project objectives. At site, the
contractor’s construction managers execute their assigned works. They operate
to achieve the contractor's objectives, which includes optimizing profit. Client
project manager manages the contractors employed at site with the help of his
supervisory team that reports to him for decisions.

CONTROLLING PHASE :

the project control aims to track the progress of work as per the planned
schedule and take corrective actions including re-planning, when necessary, to
achieve the project objectives.
PROJECT LIFE-CYCLE : PHASES AND PROCESS

CLOSING PHASE :

This formalizes the acceptance of the project and brings it to an orderly end. After
completion by the contractor, it is the project team of the client that hands over
the project to him. The team also prepares a project completion report which
includes the scope and schedule of work, the important events, the contract
executed, the addresses of the suppliers of materials and equipment, the
equipment maintenance manual, the as-built drawings, the costs involved, the
problems encountered during execution, the lessons learned and the minor
defects noticed at the time of handing over.
PROJECT LIFE-CYCLE : PHASES AND PROCESS

PROCESS:

Each phase in a project is composed of one or more processes. A process

involves series of actions to achieve desired results. Each process is fed with
inputs, these inputs are processed to produce outputs.