Project Management

in Construction -
, .

Fourth Edition

Anthony Walker
BBS, MSc, PhD, FRICS

Emeritus Professor of Real Estate and Construction

University of Hong Kong

Blackwell
Science
Contents

Preface

1 Relevance of Organisation Structure

Introduction
Management and organisation
Building versus civil engineering
Definition of construction project management
Objectives and decisions
The project management process and the project manager
Projects, firms and clients 1
The contribution of organisation structure
Organisation theory and project organisations
Project organisation in context

2 Evolution of Project Organisation

Introduction
Origins
A perspective of c ~ n t e r n ~ o ; &
influences
~
Relevance of systems theory
' S , ' - - "
>
3 Organisation and the Construction Process
Introduction
The classical approach
The behavioural approach
The socio-technical approach
The systems approach
Postmodernism
Mintzberg's classification
The transaction cost approach and organisational economics
Projects, firms and process

4 Systems Thinking and Construction Project Organisation

Introduction
vi Contents

Systems concepts
t
Action of environmental forces
Summary
/'

The Client
Introduction
Classification of clients
Clients' objectives
Relationship of the client's organisation and the construction process
Conflicting objectives
Project change
Role of the client
Clients and projects

6 The Project Team

The firms
Relationship with the client
Differentiation, interdependency and integration
Decisions and their effect on structure
Differentiation and integration in practice
Culture
Partnering
Management techniques and project information

7 A Model of the Construction Process

Introduction
Common characteristics
Sub-systems
The operating system and the managing system
Design of organisation structures
Convergence

8 Activities of Project Management

Introduction
Approval and recommendation
Boundary control, monitoring and maintenance
General and direct oversight
Pattern of activities
Functions of project management
Some practical considerations

9 Authority, Power and Politics

Introduction
Authority
 Contents vii

Power
Relationship between authority and power
The sources of power
Power and interdependency
Politics in organisations
Power and leadership
Empowerment
Power in project management
Politics, projects and firms
Empowerment and projects
Project managers and power

10 Project Leadership
Introduction
Leadership
Some research models
Leadership style
Leadership and the project manager
Project managers' perceptions
Leadership qualities

11 Organisation Structures 211

Introduction 21 1
Project management theory and transaction cost economics 212
The components of project organisation structures 22 1
Client/project team integration 22 1
Design team organisation 222
Integration of the construction team 229
An illustration of a transaction cost explanation 238
Organisation matrix 239
',,_.. ..
Analysis and Design of Project Management Structures
Need for analysis and design
Criteria
Techniques
Linear responsibility analysis
Project outcome
Presentation of project organisations
Case studies

Refevences 274

Index
Agency theory, 52 development of, 116, 166
Alternative methods of management, feedback, 84, 168
234 sufficiency, 61, 77
Appointment transmission, 166
contractor, 240 uncertainty, 6 1
project team, 166 Bureaucracies, 33
Approval, 155,263 L

Asset specificity, 218 Change

Authority, 173 conditions for, 19
client, 105, 155 project, 77, 102
in projects, 186 Civil engineering, 4, 22, 141
project teammanager, 105, 115, 155, Clients, 87
158, 162,205,227 attributes, 107
m environment, 7 1, 9 1
Behaviour integration, 77, 165, 222, 267
organisation, 207, 213, 217 management of projects, 10
responses, 12, 268 .+
objectives, 98, 102, 107
schools, 33 corporate, 90
sub-system, 100 establishment of, 165
Boundary a _
,,_ . public, 72, 92
between sub-systems, 146 variety, 11
client and construction process, 77 organisation, 11, 88, 105, 107
with environment, 38 effect on managing activities, 147,
Boundary control, 152 155, 159, 162, 165
objective, 157 profiles, 93
on LRA, 264 range of expertise, 240
Bounded rationality, 217 role, 104
BPF system, 210, 229 variety, 11
Business Process Re-engineering, 33, Commissioning, 169
44 Competitive tendering, 230, 240
Brief, 91, 98 Complexity, 15, 83, 200
competing factors, 98 Conflict
conflict, 61 between firms and projects, 9
Index

in the project management process, 7 determinants, 150

objectives, 64, 102 on dRA, 261,265
within the brief, 64 in practice, 123
Construction management, 3, 80, 190,
233 Empowerment, 183, 191
Construction process Entropy, 72
model, 245 Environment, 66, 120
system, 38 client, 71, 97
Contingency theory, 40 definition, 38
strategic, 42 differentiation, 41, 80
Contractor institutional, 76, 81
appointment, 240 protected niche, 79
integration, 224, 230 task, 76
matrix structure, 8 uncertainty, 102, 145
relationship with design team, 169, Environmental forces
230 action of, 71
Contracts, 213 at start of project, 97
standard forms, 11, 161, 169 classification, 68
Control loops, 258, 266 direct, 73
Culture, 128, 200, 204 indirect, 73
quantification, 77
Decisions, 5, 12, 13 . non-technical, 69
client, 105 technical, 69
feedback, 83, 102, 147 Equifinality, 65
key, 146, 169, 214
on LRA, 261 Feedback, 83
objectives, 5 decision points, 83, 102, 147
operational, 147, 169, 214 managing system, 152, 168
on LRA, 261 negative, 84
points, 121, 146, 214 positive, 84
on LRA, 261 Fees, 24
primary, 145, 169, 214 Firms, 8, 80,112
on LRA, 261 objectives, 9
process, 121 First World War, 20
sub-system, 21 1
Design-and-build, 3, 7, 11, 126, 161, General Systems Theory, 38
234, 238 Governance structure, 213
integration, 25, 126, 236 Groupthink, 118
negentrophy, 79
organisation matrix, 240 Industrial revolution, 19
Design team Information, 137
integration, 225 Information technology, 128
Differentiation, 3, 41, 120 Innovation, 10, 21, 41
definition, 61, 117 Input, 100
 Index 287

Institution theory, 43 Management, 3

Integrating mechanism, 105 classical approach, 32
contingency theory, 41 construction project, 6, 185
range, 115 definition, 5, 24
uncertainty, 74 executive, 226, 240
Integration, 3, 41, 80, 120, 213 non-executive, 225, 240
client, 74, 165, 222, 267 objectives, 9, 64
contractor, 224, 230 firms, 112
design team, 224 general, 7
in practice, 124 matrix, 8, 114
interdependency 'principles o f , 32, 62
pooled, 119 scientific, 32
reciprocal, 119 system, 121, 155, 213, 227
sequential, 119 techniques, 126
meeting, 158 temporary structures, 11, 79
on LRA, 266 Management contracting, 3, 232
tasks, 168 integration, 126, 232
uncertainty, 74 organisation matrix, 240
Interdependency, 15, 83, 112, 120, 179 Matrix symbols, 263
definition, 82 Middle ages, 18
integration, 119 Mintzberg's classification, 45, 93,
on LRA, 261,265 191
pooled, 119 Multi-disciplinary practices
,reciprocal, 82, 119, 157 integration, 124, 224
sequential, 81, 119, 157 responsibility, 163, 227

Joint ventures, 134 Negentropy, 79

Negotiated tenders, 11, 240
Key personnel, 124, 171 integration, 25, 232
organisation matrix, 240
Leadership, 135, 182, 1.94 .,
qualities, 196, 207 Objectives, 38, 83, 213, 244
research models, 196 clients, 61, 97, 102, 107
styles, 202 corporate, 90
Linear Responsibility Analysis (LRA), establishment of, 165
256 public, 92
Linear Responsibility Chart (LRC), variety, 11
254 . conflicting, 64, 102
decisions, 5
Manager firms, 9
construction, 7 multiple, 102
contract, 7 project management, 9
design, 7 systems, 39
project, 6, 24, 41, 107, 226 Opportunism, 131, 217
288 Index

Organisation, 3, 12 Post-war, 21
analysing, 5, 251 Power,54, 103, 176
behaviour, 207 in project management, 185
clients, 11, 88, 104, 107 in projects, 187
effect on managing activities, 155, sources, 178
159, 162, 165 structures, 33
complexity, 83 Production costs, 216
construction project Professional institutions, 3, 20, 80
definition, 4 Professions, 2, 8
evolution, 18 change, 79
metaphors, 96 ' evolution, 20
model, 139 Professional organisation, 16, 45, 48
patterns, 21 1 Project
conventional, 223, 238 change, 75, 102
definition, 1 conception, 141
feedback, 83 co-ordinator, 91, 93, 104
culture, 204 disposal, 169
design of, 152, 165, 253 inception, 144
criteria, 254 information, 29, 136, 167
techniques, 254 manager, 6, 24, 105, 192, 226
uncertainty, 154 outcome, 209,269
effectiveness, 244 evaluation, 169, 268
hierarchies, 63 feedback, 83
informal, 12, 33, 159, 169 functions of project management,
initiatives, 24 164
matrix, 240 model, 141
of project team, 230, 240 performance, 121, 188
patterns, 10 programme, 166
reform, 24 realisation, 144
theory, 16, 213 responsibility, 162, 226
Organisational economics, 51 tasks, 168
Output, 9 Y teams, 122
Oversight Project manager, 6, 169
direct, 159 authority, 105, 205
on LRA, 264 contingency theory, 168
general, 159 evolution of, 24
on LRA 263 executive, 226
leadership, 202
Partnering, 130, 161, 190 relationship with client, 114
Patronage, 188
Plans of work, 102
Recommendation, 155
Politics
on LRA, 263
in organisations, 180
Resource dependency model, 42
Postmodernism, 43
 Index 289

Second World War, 21 open, 38, 99

Sentience, 118 operating, 151, 153, 227
on LRA, 261 on LRA, 258
Separate trades contracting, 233, 240 theory, 38, 213
Serial tendering, 231, 240 - relevance, 29
Socio-technical approach, 35
Soft systems methodology, 97 Task sub-systems, 149
Strategic contingency, 42 integration, 169
Subcontractors, 2, 8, 11, 56 on LRA, 258
management contracting, 232 Teamthink, 118
nominated, 230 Techniques, 12, 29, 60, 101
relationship to project management, for organisational design, 254 -
172,230 management, 136
Systems Technology, 12, 101, 151
adaptive, 38, 79 Trade-off, 251
boundary, 75 Transaction cost economics, 40, 51,
classification, 62 127, 131,211
closed, 38 Transformation, 99
construction process, 39 TREND, 254
growth, 80 Trust, 125, 132
hierarchy, 63 Two-stage tendering, 11, 230, 240
maintenance, 152, 158
on LRA, 264 Uncertainty, 11, 15, 83
,managing, 151, 153, 155, 227 contingency theory, 41
feedback, 261 effect on brief, 64
on LRA, 258,265 effect on integration, 75
monitoring, 152, 158 effect on organisation design, 153
on LRA, 264 environment, 104, 145
L ,

objectives, 39