Construction

Project
Management
 OUTLINE
I. Definition of Project Management
II. Construction Contractors
III. Changing Environment of the Construction
Industry
IV. Project Construction Management
V. The Project Manager
VI. Discipline and skills required in Project
Management
VII Gantt Chart
PERT/CPM, S-Curve and Cash Flow
VIII. Material Procurement and Delivery
IX. Construction Equipment
 Project Management defined

Project management is defined by the Project

Management Institutes (PMI) guide to Project
Management Body of Knowledge (PMBOK) as the
application of knowledge, skills, tools, and
techniques to project activities in which resources
such as man, machine, material, and money are
organized to undertake a scope of work, of given
specification and quality, within constraints of cost
and time, and to manage the risks involved in
undertaking the same so as to deliver the expected
benefits as defined by quantitative and qualitative
objectives.
Construction Contractors
Builders who supervise the execution of construction
projects are traditionally referred to as contractors, or more
appropriately called constructors.

The general contractor coordinates various tasks for a

project.
The specialty contractors such as mechanical or
electrical contractors perform the work in their specialties.
Material and 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 timely completion of
the project.
The Changing Environment of the Construction Industry

The construction industry is a conglomeration of diverse fields and

participants that have been loosely lumped together as a sector of the
economy. 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 nation's infrastructure and other
public facilities.

Several factors are particularly noteworthy because of their significant

impacts on the quality, cost and time of construction.

New Technologies

Computer-aids have improved capabilities for 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.
 Internet is widely used as a means to foster collaboration
among professionals on a project, to communicate for bids
and results, and to procure necessary goods and services.

Real time video from specific construction sites is widely

used to illustrate construction progress to interested parties.

Construction quality and cost can be improved with the

adoption of new technologies which are proved to be
efficient from both the viewpoints of performance and
economy.
Project management is the art of directing and
coordinating human and material resources
throughout the life of a project by using modern
management techniques to achieve predetermined
objectives of scope, cost, time, quality and
participation satisfaction.

Project construction management differs much from

management of more traditional activities. It is a
unique one-time operation with one major objective
to accomplish an specified tasks in a limited time
framework.
The functions of project management for construction
generally include the following:

Specification of project objectives and plans including

delineation of scope, budgeting, scheduling, setting
performance requirements, and selecting project participants.

Maximization of efficient resource utilization through

procurement of labor, materials and equipment according to
the prescribed schedule and plan.

Implementation of various operations through proper

coordination and control of planning, design, estimating,
contracting and construction in the entire process.

Development of effective communications and mechanisms

for resolving conflicts among the various participants.
The main feature in project construction is the Project
Manager who oversee a variety of operations that involves
repetitive activities and other various works.

The project manager, in the broadest sense of the term, is

the most important person for the success or failure of a
project.

The project manager is responsible for planning,

organizing and controlling the project.

In turn, the project manager receives authority from the

management of the organization to mobilize the necessary
resources to complete a project.
Key factors cited for successful projects are:

well defined scope

extensive early planning
good leadership, management and first line supervision
positive client relationship with client involvement
proper project team chemistry
quick response to changes
engineering managers concerned with the total project, not just the
engineering elements.

Conversely, the key factors cited for unsuccessful

projects are:
ill-defined scope
poor management
poor planning
breakdown in communication between engineering and construction
unrealistic scope, schedules and budgets
many changes at various stages of progress
lack of good project control
 Disciplines and skills required in Project
Management
Integration: integrates the three main project
management processes of planning, execution
and control where inputs from several knowledge
areas are put together.
1.Project goals must be established and priorities set.
2.Different works must be identified and time estimate must
be determined.
3.Resource requirement must be projected, and budget
must be prepared.
4.Once underway, progress must be monitored to assure
achievement of the goal.
Scope Management: includes the
processes required to ensure that the project
includes all the work required, and only the
work required, to complete the project
successfully. It is primarily concerned with
defining and controlling what is or is not
included in the project to meet the goals and
objectives.
It consists of authorization, scope planning,
scope definition, scope change management
and scope verification.
The Project Managers mission is to plan,
coordinate , control and accomplish.

What the Project Manager needs to know are:

1.The logical construction sequence that must

be followed.
2.The quantity and the delivery dates of various
materials to be used.
3.How much and what kind of manpower will be
needed.
4.When to start and complete the job on time.
Time Management: includes the process
required to ensure timely performance of the
project. It consists of activity definition, activity
sequencing, duration estimating, establishing the
calendar, schedule development and time control.
The most important part of the works organization are:

1.The preparation of a comprehensive time and progress

chart for the execution of the work.

2.The periodic revision of the chart as circumstances

demand, and the regular comparison of progress chart
made with the program.
The project manager is required to prepare an approved
time and progress chart, which is generally part of the
main contract documents.

1.The time and progress chart must show an analysis of

the chief elements and types of construction involved in
the project.

2.The scheduled dates of commencement and completion

of every stage of the main contract and of sub-contracts.
Besides of being the standard requirement, the chart,
automatically shows and offer the following information:

1.The sequence of operations.

2.The target time and date for their completion.
3.The rate of which they must be carried out.
4.The owners staff and the contractors staff should be
familiar with the information given in the chart and should
constantly strive to carry out the work according to the
projected rate of accomplishment.
5.If some operations are to be done by sub-contractors,
they should be notified in advance and given a clear
understanding of what exactly is expected from them.
6.The chart also tends to prevent changes in design and
layout with consequent delays and increased in cost. It
also provided essential information regarding labor,
materials and plant requirements.
 Gantt Chart/Bar Chart for
ACTIVITY
Construction
Wk Wk Wk Wk Wk Wk Wk Wk Wk
1 2 3 4 5 6 7 8 9
Relocate the
site and stake
Excavation
and footing
Erection of
post and girts
Roof framing
and roofing
Floors and
walls
Plumbing and
electrical
Finishing
Works

Painting &
Gantt Chart
Henry Gantt developed this tool for displaying the progression of a
project.

is a tool, which takes the form of a horizontal bar chart, used for
planning and scheduling simple projects.

The advantage of Gantt chart is its simplicity, making it very popular

Can be useful for initial project planning, which then gives way to
the use of networks called PERT and CPM.
PERT/CPM
PERT - Program Evaluation and Review Technique
CPM Critical Path Method

PERT/CPM is a control tool for defining the parts of construction job and
then putting them together in a network form.

pinpoints the particular work operations whose completion times are

responsible for controlling the complete date.

provides a means of speeding up a project without excessive costs for

overtime. Without the use of PERT/CPM when speeding up the project
overtime expenditures may be in total waste.

gives a time leeway or float available for each of the non-critical work
operations. The information on float time will give the project manager that
opportunity to maneuver in their planning and control of the operations.

establishes time boundaries for operations with possibilities of shifting

resources, equipment and manpower to meet time requirements.
 PERT/CPM indicates the earliest starting date for each work operations
and sub-contracts for supply and delivery of materials.

It shows the most advantageous scheduling for all operations. This

gives planning information as to time and cost in choosing methods,
equipment, crew and work hours.

It offers a means of assessing the effect on the overall project variations

in one operations such as change orders.

In case of change order where the owner would not want to extend the
contract time, PERT/CPM offers a means of re-scheduling the operations but
still to be completed at the least increase in cost.

With the critical path schedule as revised to reflect the change order, any
claim if any, for additional payment will be understood both by the owner and
the contractor.

In case of serious delay due to weather, late material or equipment

delivery, the network can be revised at that stage and new computation is
made to determine the new critical operation if any and revised float times
determines for the non-critical operations.
Examine a simple project whose component activities, duration and sequence
are shown below:

Activity Duration
A 3 days
B 5
C 1
D 2
E 2
F 4
G 3
H 1
Time-Phased
Diagram C E
3 7
1 2

A B F H
1 2 5 8 9
3 5 4 1

D G
4 6
2 3

0 1 2 3 4 5 6 7 8 9 10 11 12 13

Contract Duration
Fundamental Elements of PERT/CPM Networking

Activity Actual work between events

Events Is a point in time signifying the beginning or end of one or

more activities
- indicated on the network as a circle, square or any form of
geometrical symbols with a number written therein for identification.

Dummy Activity does not represent actual work efforts and do not
consume time. It is used to distinguish between two or more parallel
activities.

Duration of an activity is the time it takes an activity to be finished.

It is the span of time from the early start to its early finish or from its
late start to its late finish.

Path is a sequence of activities that leads from starting node to the

finishing node.

Critical Activities the longest path is the critical path (has a zero
slack or float) and its activities are called critical activities.
Cost Management: includes the process required to
ensure that the project is completed within the approved
budget. It consists of resource planning, cost estimating,
cost-budgeting, cash flow and cost control.

Construction business requires sufficient funds to cover its

operation to maintain equipment, purchase of materials
and supplies, to pay salaries and wages, to cover storage
fees, transportation and reserve for other services
including SOP. These are current operations where the
funds to cover them are called working capital.
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.

For control and monitoring purposes, the original detailed

cost estimate is typically converted to a project budget,
and the project budget is used subsequently as a guide for
management.
 1 2 3 4 5 6 7

ACT COST
B C
A 200 20
B 150 4 3
C 300 A D F
D 200 10 30 40 50
3
E 100 3 1
F 150 E
35
2
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 D F
A
B 150 30 40 50
10 3
C 300 3 1
D 200 E
35
E 100
2
F 150

A + 3B
4
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 D F
A
B 150 30 40 50
10 3
C 300 3 1
D 200 E
35
E 100
2
F 150

A + B + D + 1E
312.50 2
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 D F
A
B 150 10 30 40 50
3
C 300 3 1
D 200 E
35
E 100 2
F 150
A + B + D + E + 1F +1C
3 3
312.50 600
 1 2 3 4 5 6 7

B C
ACT COST 20
4 3
A 200 D F
A
B 150 30 40 50
10 3
C 300 3 1
D 200 E
35
E 100
2
F 150

312.50 600 800 1100

 B
C
20
4 3

A D F
10 30 40 3 50
3 1
COST E
35
1200 - 2
1100
1000 -
800 - 800
600 - 600
400 -
312.50
200 - TIME
0-
1 2 3 4 5 6 7
 B C
20
4 3

A D F
10 30 40 3 50
3 1
COST E
35
1200 - 2
1100
1000 -
800 - 800
600 - 600
400 -
312.50
200 - TIME
0-
1 2 3 4 5 6 7
 B C
20
4 3

A D F
10 30 40 3 50
3 1
COST E
35
1200 - 2
1000 -
800 -
600 -
400 -
200 - TIME
0-
1 2 3 4 5 6 7
 COST 312.50 600 800 1100

COST
1200 -
1000 -
800 -
600 -
400 -
200 - TIME
0-
1 2 3 4 5 6 7
 312.50 600 800 1100

28.41% 54.54% 72.72% 100%

COST
%
100 -
80 -
60 -
40 -
20 -
TIME
0-
1 2 3 4 5 6 7
 Quality Management: includes the process required to
ensure that the project will satisfy the needs for which it was
undertaken. It consists of determining the required condition,
quality planning, quality assurance and quality control.
With the attention to conformance as the measure of quality
during the construction process, the specification of quality
requirements in the design and contract documentation
becomes extremely important.

Projects must be delivered not only on time and on budget,

but also to specification (this is what quality means in project
management). As part of this, ensure that you actively
manage project benefits. By continuously referring to the
benefits that the project will provide, you keep client quality at
the forefront and you won't waste precious time and
resources trying to achieve an inappropriate level of quality.
 Human Resource Management: includes the process required to
make the most effective use of the people involved with the project.
It consists of organization planning, staff acquisition.

The people on your project team can make or break the final
outcome. Here, getting the right mix of interpersonal and political
skills is just as important as the right technical skills.

Labor Characteristics

Performance analysis is a common tool for assessing worker quality

and contribution. Factors that might be evaluated include:

Quality of Work - calibre of work produced or accomplished.

Quantity of Work - volume of acceptable work
Job Knowledge - demonstrated knowledge of requirements,
methods, techniques and skills involved in doing the job and in
applying these to increase productivity.
Related Work Knowledge - knowledge of effects of work upon
other areas and knowledge of related areas which have influence on
assigned work.
 Related Work Knowledge - knowledge of effects of work upon other
areas and knowledge of related areas which have influence on assigned
work.
Judgment - soundness of conclusions, decisions and actions.
Initiative - ability to take effective action without being told.
Resource Utilization - ability to delineate project needs and locate, plan
and effectively use all resources available.
Dependability - reliability in assuming and carrying out commitments
and obligations.
Analytical Ability - effectiveness in thinking through a problem and
reaching sound conclusions.
Communicative Ability - effectiveness in using oral and written
communications and in keeping subordinates, associates, superiors and
others adequately informed.
Interpersonal Skills - effectiveness in relating in an appropriate and
productive manner to others.
Ability to Work Under Pressure - ability to meet tight deadlines and
adapt to changes.
Security Sensitivity - ability to handle confidential information
appropriately and to exercise care in safeguarding sensitive information.
Safety Consciousness - has knowledge of good safety practices and
demonstrates awareness of own personal safety and the safety of
others.
Profit and Cost Sensitivity - ability to seek out, generate and
implement profit-making ideas.
Planning Effectiveness - ability to anticipate needs, forecast
conditions, set goals and standards, plan and schedule work and
measure results.
Leadership - ability to develop in others the willingness and desire to
work towards common objectives.
Delegating - effectiveness in delegating work appropriately.
Development People - ability to select, train and appraise personnel,
set standards of performance, and provide motivation to grow in their
capacity.
Diversity (Equal Employment Opportunity) - ability to be sensitive to
the needs of minorities, females and other protected groups and to
demonstrate affirmative action in responding to these needs.
 Communication Management: includes the process
required to ensure proper collection and dissemination of
project information. It consists of communication planning,
information distribution, project meetings, progress reporting
and administrative closure.
As with most situations, effective project communication
means communicating with the right people at the right time
and in the right way.

Risk Management: includes the process concerned with

identifying, analyzing, and responding to project risks. It
consists of risk identification, risk quantification and impact,
response development and risk control.
Procurement Management: includes the process required to acquire
goods and services from outside the performing project team or
organization. It consists of procurement planning, solicitation planning,
solicitation, source selection, contract administration and contract
closeout.

Material Procurement and Delivery

The main sources of information for feedback and control of material

procurement are requisitions, bids and quotations, purchase orders and
subcontracts, shipping and receiving documents, and invoices.

For projects involving the large scale use of critical resources, the owner
may initiate the procurement procedure even before the selection of a
constructor in order to avoid shortages and delays.
Material Procurement and Delivery...

Under ordinary circumstances, the constructor will handle the procurement to

shop for materials with the best price/performance characteristics specified by
the designer.

Some overlapping and rehandling in the procurement process is unavoidable,

but it should be minimized to insure timely delivery of the materials in good
condition.

The materials for delivery to and from a construction site may be broadly
classified as : (1) bulk materials, (2) standard off-the-shelf materials, and (3)
fabricated members or units.

Bulk materials refer to materials in their natural or semi-processed state,

such as earthwork to be excavated, wet concrete mix, etc. which are usually
encountered in large quantities in construction.

Standard piping and valves are typical examples of standard off-the-shelf

materials which are used extensively in the chemical processing industry. Since
standard off-the-shelf materials can easily be stockpiled, the delivery process is
relatively simple.
 Fabricated members such as steel beams and columns for
buildings are pre-processed in a shop to simplify the field erection
procedures.

The process of delivery, including transportation, field storage and

installation will be different for these classes of materials. The
equipment needed to handle and haul these classes of materials will
also be different.
Construction Equipment
The selection of the appropriate type and size of construction equipment
often affects the required amount of time and effort and thus the job-site
productivity of a project.

It is therefore important for site managers and construction planners to

be familiar with the characteristics of the major types of equipment most
commonly used in construction.

Choice of Equipment and Standard Production Rates

Typically, construction equipment is used to perform essentially repetitive

operations, and can be broadly classified according to two basic
functions: (1) operators such as cranes, graders, etc. which stay within
the confines of the construction site, and (2) haulers such as dump
trucks, ready mixed concrete truck, etc. which transport materials to and
from the site.

In both cases, the cycle of a piece of equipment is a sequence of tasks

which is repeated to produce a unit of output.
In order to increase job-site productivity, it is beneficial to select
equipment with proper characteristics and a size most suitable for the
work conditions at a construction site.

In excavation for building construction, for examples, factors that could

affect the selection of excavators include:

Size of the job: Larger volumes of excavation will require larger

excavators, or smaller excavators in greater number.
Activity time constraints: Shortage of time for excavation may force
contractors to increase the size or numbers of equipment for activities
related to excavation.
Availability of equipment: Productivity of excavation activities will
diminish if the equipment used to perform them is available but not the
most adequate.
Cost of transportation of equipment: This cost depends on the size of
the job, the distance of transportation, and the means of transportation.
Type of excavation: Principal types of excavation in building projects are
cut and/or fill, excavation massive, and excavation for the elements of
foundation. The most adequate equipment to perform one of these
activities is not the most adequate to perform the others.
Soil characteristics: The type and condition of the soil is important
when choosing the most adequate equipment since each piece of
equipment has different outputs for different soils. Moreover, one
excavation pit could have different soils at different stratums.
Geometric characteristics of elements to be excavated: Functional
characteristics of different types of equipment makes such
considerations necessary.
Space constraints: The performance of equipment is influenced by
the spatial limitations for the movement of excavators.
Characteristics of haul units: The size of an excavator will depend
on the haul units if there is a constraint on the size and/or number of
these units.
Location of dumping areas: The distance between the construction
site and dumping areas could be relevant not only for selecting the
type and number of haulers, but also the type of excavators.
Weather and temperature: Rain, snow and severe temperature
conditions affect the job-site productivity of labor and equipment.
SOURCES OF CONSTRUCTION EQUIPMENT
Contractors and other users of construction equipment frequently are
concerned with the decision as to whether to purchase or rent
equipment.

Under certain conditions, it is financially advantageous to purchase,

whereas under other conditions it is more economical and satisfactory
to rent it.

There are at least three methods under which a contractor may secure
the use of construction equipment. He may:

1. Purchase it
2. Rent it
3. Rent it with an option to purchase it at a
later date.
The purchase of equipment as compared with
renting it has several advantages, including
the following:

1.It is more economical if the equipment is

used sufficiently.

2.It is more likely to be available for use when

needed.

3.Because the ownership should assure better

maintenance and care, purchased equipment
should be kept in better mechanical condition.
Among the disadvantages of owning equipment are the
following:

1.It may be more expensive than renting.

2.The purchase of equipment may require a substantial
investment of money or credit that may be needed for other
purposes.
3.The ownership of equipment may influence a contractor to
continue using obsolete equipment after superior equipment
has been introduced.
4.The ownership of equipment designed primarily for a
given type of work, whereas, other work requiring different
types of equipment might be available at a higher profit.
5.The ownership of equipment might influence a contractor
to continue using the equipment beyond its economical life,
thereby increasing the cost of production unnecessarily.
ADVANTAGES OF RENTING

1.Small money lay-out

2.No need to hire operators/mechanics.
3.No money lay-out for building workshop
4.No financing interest
5.No need for maintenance support (vehicles and
equipment)
6.No worry of equipment breakdown because of
immediate replacement from contractors fleet.
CONCLUSION:
Construction project management is
the art and practice of bringing together
disparate resources and people to
build a high quality structure in a safe,
timely and cost-effective manner.

Effective project management can

mean the difference between success
and failure in a construction project .
Thank you..