Professional Documents
Culture Documents
The aim of this five day course is to introduce candidates to and equipping them with basic
Construction Project Management concepts and skills.
Learning outcomes
Construction management on the other hand is the essential link between the expression of a
client's wishes and the acceptance or occupation of a completed project. It is about ensuring a
smooth and uninterrupted transfer from the design process to the end of construction.
This module helps delegates understand the basics of the project management application
within the construction post contract period. Ideally this should be referred to as the
construction management. Therefore in this module, delegates will explore the project life
cycle and apply the basic management skills throughout the construction cycle. The module
is divided into two sections, the technical aspect of the project management and the Business
aspect of project management. These are designed to provide basic understanding and
application of project management principles within the construction project life cycle
including the important aspect of managing activities on site.
Page | ii
National Council for Construction
Introduction to Construction Project Management Training Manual
Course Contents
1 TECHNICAL ASPECTS TO PROJECT MANAGEMENT ............................................. 1
1.1 What is a project? ........................................................................................................ 1
1.2 Request for Bids .......................................................................................................... 1
1.3 What is project management? ..................................................................................... 1
1.3.1 Project stakeholders ............................................................................................. 1
2 THE CONSTRUCTION PROJECT LIFE CYCLE ........................................................... 2
2.1 STAGE 1: Defining the project ................................................................................... 3
2.1.1 Defining the project scope ................................................................................... 3
2.1.2 Creating the work breakdown structure (WBS)................................................... 5
2.1.3 Estimating cost and developing budgets .............................................................. 5
2.2 Planning....................................................................................................................... 7
2.2.1 Developing a Construction Programme ............................................................... 7
2.2.2 Resourcing ........................................................................................................... 7
2.2.3 Material Ordering................................................................................................. 8
2.2.4 Equipment Usage ................................................................................................. 8
2.2.5 Subcontractors...................................................................................................... 8
2.2.6 Contingencies and float........................................................................................ 8
2.3 Critical Path ................................................................................................................. 8
2.3.1 Constructing a project network plan .................................................................... 9
2.3.2 Project schedule ................................................................................................. 10
2.4 Work Breakdown Structure....................................................................................... 10
2.4.1 Durations ............................................................................................................ 11
2.4.2 Sequence ............................................................................................................ 11
2.4.3 Schedule ............................................................................................................. 11
2.4.4 Top Down Task Identification ........................................................................... 12
3 MANAGERIAL ASPECTS OF PROJECT MANAGEMENT ....................................... 13
3.1 Project manager ......................................................................................................... 14
3.1.1 Project risk management .................................................................................... 14
3.1.2 Definition of Risk .............................................................................................. 14
3.1.3 Benefits of Proper Risk Allocation .................................................................... 15
3.1.4 Identifying Typical construction project risks ................................................... 15
3.1.5 Project communication management ................................................................. 17
3.1.6 Project quality management ............................................................................... 17
3.1.7 The price of non-conformance ........................................................................... 18
3.1.8 Management commitment ................................................................................. 18
3.1.9 The quality control ............................................................................................. 19
3.2 SKILLS REQUIRED IN A PROJECT MANAGEMENT ....................................... 19
3.2.1 Introduction ........................................................................................................ 19
3.2.2 Operational Management Skills......................................................................... 19
3.2.3 Project Management Skills ................................................................................ 20
4 PROJECT ORGANISATION .......................................................................................... 20
4.1 Organizing the Project Team..................................................................................... 20
4.2 Close-out ................................................................................................................... 22
4.2.1 General ............................................................................................................... 22
4.2.2 Key Closeout Activities ..................................................................................... 22
4.2.3 General ............................................................................................................... 23
4.3 Planning..................................................................................................................... 23
Page | iv
National Council for Construction
Introduction to Construction Project Management Training Manual
For example
The Canadian International Donor Agency (CIDA) has donated K7.5 million to provide 3
bedrooms homes to 50 families living in the Kamanga informal settlement. On 6 February
2004, the agency signed a contract with the Department of Housing to implement the project.
The following requirements, amongst others were set in the contract:
The 3 bedoroomed houses must meet specifications in line with government policy.
In order to ensure sustainability and affordability for the 50 families, the head of each
of the
50 families must be given skills development training in small business development
and small business start-up. This is to ensure that the families will be able to afford
rentals, maintenance of the homes and to expand their homes to accommodate the
growth of the families in the future.
The project must be completed within three years and the handover of the homes to
the 50 families must be a high profile public event.
Page | 1
Performing organisation – the Department of Housing whose employees are most
directly involved in doing the work of the project;
Sponsor – Canadian International Development Agency.
The project life cycle Projects are usually divided into project stages (i.e., definition,
planning, execution and delivery stages) to provide better management and control.
Collectively these project stages are known as the project life cycle.
The project life cycle typically passes through four stages, i.e. definition, planning,
execution, and delivery. The starting point begins the moment the project is given the go-
ahead (when a contract agreement is signed). Project effort starts slowly, builds to a peak,
and then declines to delivery of the project to the customer.
Page | 2
National Council for Construction
Introduction to Construction Project Management Training Manual
Definition stage – specifications of the project are defined, project objectives are established,
project teams are formed and major responsibilities are assigned.
Planning stage – plans are developed to determine the project steps, beneficiaries,
timeframes, quality standards and budget.
Execution stage – the major portion of the project work takes place – both physical and
mental. Time, cost and specification measures are used for control. The project managers
have to ensure that the project is on schedule within the budget and meeting specifications.
They have to also check if any changes are required.
Delivery stage – delivering the project product to the customer, may involve customer
training and transferring documents.
The three steps described below provide a planned approach for collecting the project
information necessary for planning, scheduling and controlling the project. These are:
In summary, close liaison with your customer is necessary to develop a project definition that
meets all requirements of the customer. Clear scope definition ensures you will know when a
change in scope occurs. A clear project scope definition is the most important requirement for
development of your Work Breakdown Structure (WBS).
Page | 3
SCOPE STATEMENT DEFINITIONS
Project Objective Project objectives
To construct 3 bedroomed house for 50 families To define the major objectives of the project
in the Kamange informal settlement within 36
months at a cost not exceeding K 7,5 million.
Deliverables
• 50 finished 3 bedroomed houses as per Deliverables
specifications laid down by the Department The expected outcomes over the life of the
of Housing project – what is it that is going to be delivered
• Skills development and training for the head
of each of the 50 families
• Hand over the finished homes to the 50
families at a high profile public event
Milestones Milestones
1. Permits approved – 5 March 2004 A milestone is a significant event in a project
2. Foundations poured – 28 January 2005 3. that occurs at a point in time. The milestone
Bricklaying, shearing, plumbing, schedule shows only major segments of work;
electrical and mechanical inspections it represents first, estimates of time, cost, and
passed – 4 July 2006 resources for the project. Milestones are
3. Final inspection of houses – 15 March important control points in the project. They
2007 should be easy for all project participants to
4. 50 trainees receive training certificates - identify.
15 December 2006
5. Handover to 50 families - 21 March 2007
Signature:
Page | 4
National Council for Construction
Introduction to Construction Project Management Training Manual
All the elements/steps that make up WBS are called work packages. It is very useful as
the structure clearly points to what has to be done and in what sequence (order). It divides
the work and responsibility into individual work packages which makes it easy for the
project manager to manage and monitor the implementation for the project by:
An example
Figure 2. WBS
Page | 5
most familiar with the task. They will give an estimate based on their experience and best
judgment. Here are typical kinds of costs found in a project:
• Direct costs – These costs are chargeable to individual work package in the WBS.
o Labour
o Materials
o Equipment
o Other
• Project Overhead Costs – represents project costs that cannot be tied to specific
deliverable but serve the entire project. For example, a temporary shed may be set up
that will be used to store tools and equipment of various contractors, host the
training and the handing over function.
The organisation of the budget into these three categories helps control the process and
improve decision making. The following is an example of a budget format:
Page | 6
National Council for Construction
Introduction to Construction Project Management Training Manual
2.2 PLANNING
2.2.1 Developing a Construction Programme
A bar chart or construction programme is a list of activities that are planned to be completed
by a particular time. The steps in developing a bar chart are as follows:
Step 1: Make an activity list and arrange it into a logical sequence of events at a level of
detail that is practical and appropriate.
Step 2: Assume a rate of production for each activity taking into account the available
resources. This will determine the length of time required for each activity
Step 3: Determine the logical sequence in which work is to be carried out. Include any
dependencies that might exist, even if these are not at first considered to be critical.
Step 4: Draw out the logical sequence on a bar chart. This provides a visual tool to identify
what activity is to start, when it is to start, and what needs to be completed before it can start
2.2.2 Resourcing
The bar chart can be used to resource the project. The chart presents a logical breakdown and
sequence of activities for the project and the timing for and duration of these activities. The
resources associated with each activity now need to be identified – labour, materials,
equipment, subcontractors, etc. The total resources required for each time period can be
worked out by simply adding the resources that are required for each activity that is executed
simultaneously.
The bar chart can then be adjusted by moving particular activities back and forth in time to
reduce the quantity of that resource required to complete all those tasks at the same time or to
smooth out the requirements for that resource.
Page | 7
2.2.3 Material Ordering
The contractor can identify from the bar chart when materials are required for a project and
order them when needed. The supplier’s lead time and delivery time should be taken into
account when the item is ordered so that it can be delivered at the right time. This reduces
storage costs and minimises damage to the materials and possible loss due to shrinkage or
spoiling.
2.2.5 Subcontractors
The contractor can use the bar chart to identify when a subcontractor must start their work
and when the subcontractor must finish their work. This information can help to schedule the
work of the subcontractors and to manage them.
Many activities automatically have float built in due to the way that they were scheduled.
There may be slack time for an activity if there is another activity which takes longer and
which starts at the same time. Both activities can be started at the same time but the shorter
one will finish earlier or can start later and finish at the same time. The shorter activity can
then float between its earliest start date and its latest start date without affecting the critical
path of the programme.
The contractor must make sure that the programme is updated with current progress because
the critical path can change from day to day should a non - critical item take longer to
complete than anticipated and thereby changing the critical path of the whole job.
Page | 8
National Council for Construction
Introduction to Construction Project Management Training Manual
The network shows the project activities that must be completed, the sequences
(steps), the interdependencies (how individual steps rely on other steps for
completion), and in most cases the times for the activities to start and finish along the
longest path through the network – the critical path.
The network is the framework that will be used by the project managers to make
decisions concerning project time, cost and performance. Once the network is
developed, it is very easy to modify or change when unexpected events occur as the
project progresses. In summary, the network plan is used to:
Tendering Skills
Training
Plumbing
Sheathing
Tendering Event
management
Page | 9
2.3.2 Project schedule
The project network plan will assist in drawing up a project schedule which clearly defines
each task, how long it will take, when it will start and finish. It is an important tool used by
the project manager to track and monitor the implementation process. Below is an example of
a project schedule.
Breaking the work down into individual tasks without the detail of dates, dependencies, and
named resources helps accomplish the following key objectives:
a) Develops an objective, rational view of the amount of work required
b) Helps team grasp the skills required and amount of resources required for the project
c) Provides a clear framework for assigning to individuals a clear task definition and
delegate the responsibility for completion
d) Lays a foundation for analyzing the task dependencies and for isolating and
managing risks
Page | 10
National Council for Construction
Introduction to Construction Project Management Training Manual
e) Lays a foundation for developing a bottom-up estimate for the Project Plan
2.4.1 Durations
Each task of the WBS often has several components. It is necessary to analyze each project
task and determine its total duration. For example, need fixtures and labor for a bathroom
installation. You have to add the delivery time for the fixtures to the time it will take to install
them, and you can ask your fixture supplier and your plumber for estimates. At the end of this
process, you have assigned duration to each task of the WBS.
2.4.2 Sequence
Arrange the project tasks of the WBS in logical sequence. Place tasks you can start
immediately without prerequisites in a first column. Place tasks that you can start once the
tasks of the first column are finished in a second column. Draw a link between tasks to show
that a particular task is a prerequisite for another.
Continue this process with additional columns until you have assigned all the tasks of the
WBS. For very large projects, you have to use a computer program to arrange the sequence of
tasks but, if you don't break the work down into too many units of the WBS, you can draw
the schedule with pen and paper or with boxes in a spreadsheet.
2.4.3 Schedule
You can use the graphical representation of the WBS tasks as the construction project
schedule. To finalize the schedule, you can enter a starting date in the boxes in the first
column and add the task durations to get the starting dates for subsequent boxes in the
sequences. The starting date of the last box in the longest sequence plus the duration of the
task in that box gives you the estimated completion date of the project.
Page | 11
identified, assigned to one owner and given completion criteria that are clear and
measurable.
d) The hierarchical and logical structuring of work can have many inputs, all of them
reinforcing
e) Top down set of high-level tasks initiating a project
f) Bottom up task definition by the whole team
g) Intermediate task grouping defined by team leaders and functional mangers
h) The hierarchy reflects the organizational approach selected to match the project
complexity and the organization's style and management processes. Normally the task
identification is around a skill theme applied at the lowest level because that matches
best to staffing assignments.
Level 1 Level 1
Level 2-1
Level 2-2 Level 2 Level 2
Level 3-1
Level 3-2
Level 3 Level 3 Level 3
Level 3-3
Indented List Graphical Chart
More levels of detail are generally required for projects which are:
− larger
− more risky
− dissimilar to past projects
− difficult to define (susceptible to change)
Page | 12
National Council for Construction
Introduction to Construction Project Management Training Manual
Continue to break the work down until a task list is developed which meets the following
criteria:
− one (and only one) owner can be assigned to each of the lowest level tasks
− clearly defined outputs are evident for each task
− quality can be monitored through performance criteria associated with each output
− the tasks communicate the work to be accomplished to the person who is accountable
− the likelihood that a task is omitted or work flow forgotten is minimized
− each task is well enough defined and small enough so that estimates of duration are
credible
− the project is broken down to the level at which you want to track
− as a general rule, the lowest level tasks should have durations between two and
twenty days and effort that equates to not more than 1 person week
Page | 13
This section looks at some important aspects that are central to the management of projects.
For any project to be successful there has to be a good project manager who is able to provide
leadership and bring together different teams to work towards a common objective. In
addition to being able to manage people and budgets the project manager must be able to:
1. Identify potential risks and develop back up plans;
2. Effectively communicate with all stakeholders;
3. Ensure quality that meets the expectations of stakeholders
The project manager performs the same functions as other managers. The project manager is
unique because s/he manages temporary activities and is usually an outsider brought into a
business or government department to implement a specific project. A project manager is
generally expected to be the projects’ leader who needs to motivate and inspire people
working on the project.
Project managers are expected to organise resources to complete a project on time, on budget
and within specification. They provide direction, coordination, and integration to the project
team and are responsible for performance.
When things go wrong the project manager’s job is to get the project back on track by
working out ways to solve problems and serving as peacemaker when tensions arise.
Depending on the nature of the project, there are a number of different groups outside the
organisation that influence the success of the project. To be effective, a project manager must
understand how these groups can affect the project and develop methods for managing the
relationship.
Page | 14
National Council for Construction
Introduction to Construction Project Management Training Manual
Risk identification consists of determining which risks are likely to affect the project and
documenting the characteristics of each. For example, the project manager in the house
project has to look at each package within the WBS and work out what is likely to go wrong.
Once this is done the project manager has to develop a plan of how each problem will be
addressed.
Risk identification is not a one-time event and should be performed on a regular basis
throughout the project. Risk identification should address both internal and external risks.
Internal risks are things that the project team can control or influence, such as the
performance of contractors, material wastage etc. External risks are things beyond the control
or influence of the project team, such as changes in the exchange rate, new government
legislation, bad weather etc. A risk management plan should document the procedures that
will be used to manage risk throughout the project.
Page | 15
− Unsuitable construction program planning
− Inadequate program scheduling
− Bureaucracy of government
− High performance or quality expectations
− Variations of construction programs
Page | 16
National Council for Construction
Introduction to Construction Project Management Training Manual
A house built with face bricks will have a different outcome to one built with stock bricks.
The specifications for laying face bricks differ from that of laying stock bricks that will be
plastered afterward. Stock bricks do not need to be laid to the high level of tolerances that face
bricks are since they will anyway be covered with plaster. The bedding joints do not have to
Page | 17
be as regular or as neatly executed as those for face bricks. When the walls have been built the
result will be a quality job if they comply with the specifications, however, there is a
difference in the look, maintenance and performance of the finished product.
It is of no use completing a project within the set time and budget if the final product is of
poor quality. The project manager has to ensure that the final product meets the quality
expectations of the stakeholders. This is done by good:
Quality planning - identifying what quality standards are relevant to the project and
determining how to meet them;
Quality Assurance - evaluating overall project performance on a regular basis to provide
confidence that the project will satisfy the relevant quality
standards;
Quality control - monitoring specific project results to determine if they comply with
relevant quality standards and identifying ways to remove causes of
poor performance.
The reason why a mistake is made is most often because of not checking a drawing to confirm
the requirements or not reading the project specifications properly. It is essential to avoid re-
doing work because this is a direct cost to the contractor. The cost of re - work extends to:
It is far better to take slightly longer to do the job right the first time than to rush the work and
have to demolish and re - build. The saying “do it right first time” is accurate, but could be
enhanced to “doing the right things right first time”.
Page | 18
National Council for Construction
Introduction to Construction Project Management Training Manual
If there is a standardised approach and systems in place, there is no excuse for anybody who
works within the contractor’s organisation to say that “I thought it was close (good) enough”.
Something is either right (conforms to the specifications), or it is wrong (does not conform).
However, this does not mean to say that everything must be perfect. Good construction
practice allows various tolerances and the contractor should ensure that the work they perform
is always within these tolerances. Conformance with specifications means constructing the
works within the specified tolerances.
Unless the contractor produces consistent quality work it will not be in business for very long.
There may be a quick profit on one job but there will be no repeat business if the quality of
work is poor.
By ensuring that quality work is being done from the start, the contractor ensures that when
the work is complete, it complies with the specifications and there will be no call to re - do
any of the sections he has completed.
Page | 19
• Planning
• Expediting
• Motivating
• Political sensitivity
Five characteristics of an effective project leader based on some assumptions about projects
include the project environment, which is often a matrix organization that results in role
ambiguity, role conflict, and role erosion. The project environment is often a fluid
environment where decisions are made with little information. In this environment, the five
characteristics of an effective project leader include the following:
• Credibility
• Creativity as a problem solver
• Tolerance for ambiguity
• Flexibility in management style
• Effectiveness in communicating
Traditionally, the project manager has been trained in skills such as developing and managing
the project scope, estimating, scheduling, decision making, and team building. Although the
level of skills needed by the project manager depends largely on the project profile,
increasingly the people skills of the project manager are becoming more important. The skills
to build a high-performing team, manage client expectations, and develop a clear vision of
project success are the type of skills needed by project managers on more complex projects.
“To say Joe is a good project manager except he lacks good people skills is like saying he’s a
good electrical engineer but doesn’t really understand electricity.”
4 PROJECT ORGANISATION
4.1 ORGANIZING THE PROJECT TEAM
There is no single organizational approach to projects. Each project is organized to
accomplish the work effectively and efficiently. Several factors influence the organizational
approach to execute a project. The complexity profile of a project, the culture of the parent
organization, the preferences of the project manager, the knowledge and skills of the team,
Page | 20
National Council for Construction
Introduction to Construction Project Management Training Manual
and a parent organization with a project management office are examples of factors that
influence the project’s organization.
In developing the project organizational structure, the project manager considers the span of
control for each manager. The span of control represents the number of people reporting to a
manager. For example, the project manager does not want all the engineers on a project
reporting to the engineering manager and assigns senior engineers to report to the engineering
manager with other engineers reporting to the senior engineers.
The engineering manager can organize the engineering reporting structure so that the various
engineering discipline managers would report to him or her. For example, the structural,
electrical, and mechanical engineering team leaders would report to the engineer manager.
On a larger, more complex project, the engineer manager may establish area team leaders and
have the structural, electrical, and mechanical engineers report to an area team leader. If the
project is geographically dispersed, with the engineering office staff in different cities
working on the project, then structuring the engineering function by area provides better
coordination and control.
Most projects have similar functions that are important to successfully managing the project.
Included among these are the following:
• Sponsor
• Project manager
• Controls
• Procurement
• Technical management
• Quality
• Administration
Page | 21
4.2 CLOSE-OUT
The Project Site Manager will be responsible for the implementation of project close-out
procedure.
4.2.1 General
The Project Site Manager is responsible for the following activities involved with
project close-out involving the following:
• Completing activities related to the close-out of construction.
• Completing close-out activities assigned by the Client and Project Director.
Page | 22
National Council for Construction
Introduction to Construction Project Management Training Manual
4.2.3 General
Project Closeout shall include a full synergy of the following areas:
• Technical closure;
• Administrative closure;
• Financial closure
• Archiving files
4.3 PLANNING
After the bids have been thoroughly reviewed and evaluated, the client will award the
contract to one bidder. In most cases, the bidder with the lowest bid wins. In some situations,
the bidder will be awarded the contract not only on price but other factors as well. For
instance, the client may be inclined to go with a more reputable contractor or with those
where a prior relationship exists.
Page | 23