4.

Project cost
management
to identify
needed resou
rces
and maintain
budgetcontrol.
5.Project
quality
management
to ensure
functional
requirements
are
met.6.Project
human resour
ce managem
ent to develo
pment and
effectively em
ployproject
personnel.7.P
roject
communicatio
ns
management
to ensure
effective
internal and
externalcomm
unications.8.P
roject risk
management
to analyze
and mitigate
potential
risks.9.Project
procurement
management
to obtain
necessary
resources
from
externalsourc
es.PROJECT
PLANNING
AND
CONTROLPla
nning is the
basic function
of the
management.
Planning is
concerned
with how
andwhen to
achieve the
predetermine
d objectives.
Planning sets
all other
functions
of manageme
nt viz.
organizing,
staffing,
directing,
motivating,
coordinating
etc.The
mainobjective
s of planning
are listed
below:i . A n a l
y s i s ii.Antic
i p a t i o n iii.Sc
heduling res
ourcesiv.Co-
ordination a
nd controlv.
Production
of dataAll
effectively
managed
projects
involve the
preparation of
the project
plan. This is
thefundament
aldocument
that spells out
what is to be
achieved,
how it is to be
achieved, and
whatresource
s willbe
necessary. In
Projects and
Trends in the
1990s and the
21st Century
, author
JolyonHallows
says, "The
basic project
document is
the project
plan. The
project lives
and
breathesand
changesas
the project
progresses or
fails." The
basic
components
of the project,
according
toHallows,
arelaid out
in the figure
below.
Page 4
"With the plan
as a road
map, telling us
how to get
from one point
to another,"
saysHallows, "
agood project
manager
recognizes
from the
outset that
a project plan
is far more
thanan
academicexer
cise or tool
for appeasing
upper
management.
It is
the blueprint
for the
entirescope of
the project, a
vital document
which is
referred to
frequently,
often
updatedon-
the-fly, and
somethingwith
out which the
project
manager
cannot
proceed."CON
TROL OF
PROGRESS
ON
SITEWithout
control
planning loses
much of its
value. It must
be applied
continuously
toupdate the
plans and to
enable
reconsideratio
n of the
workload in
the light of
what
hasalready
taken
place.Control
involves
comparing the
actual
achievement
with the plans.
If a
programme
isto be really
effective as
a control
document, it
must
represent time
and quantity
of work
carried
out.Progress
can be
recorded on
planning
charts that
clearly
indicate what
is
happeningand
where
corrective
action needs
to
be taken.Wee
kly and
monthly
meetings are
invaluable in
helping to
control
progress. The
actionnecessa
ry for
correcting
underproducti
on will be
considered
and the best
solution
willthen be
incorporated
into the
programme
for the next
period.PROJE
CT WORK
BREAKDOW
Nwork within
each phase to
identify the
events or
tasks, and
their
associated
subtasks.Defi
neeverything
that needs to
be done; this
is called the
work
breakdown
structure.
The Work
Breakdown
Structure
(WBS)
The WBS
has become
synonymous
with a task
list. The
simplest form
of WBS is
theoutline,alth
ough it can
also appear
as a tree
diagram or
other chart.
Sticking with
the outline,the
WBSlists each
task, each
associated
subtask,
milestones,
and
deliverables.
The WBS can
beused toplot
assignments
and schedules
and
to maintain
focus on the
budget.COSTI
NG ACTIVITY
Page 5
Cost
estimating is
one of the
most
important
steps in
project
management.
A
costestimate
establishes t
he base line
of the project
cost at differ
ent stages of
development
of the project.
A cost
estimate at a
given stage of
project
developmentr
epresents a
prediction
provided by
the cost
engineer or
estimator on
the basis
of available d
ata. Accordin
g to the Amer
ican Associat
ion of Cost E
ngineers, cos
tengineering i
s defined as t
hat area of e
ngineering pr
actice where
engineering j
udgment and
experience ar
e utilized in th
e application
of scientific pr
inciples andte
chniques to
the problem of
cost
estimation,
cost control
and
profitability. Th
e costs of a
constructed
facility to the
owner include
both the initial
capital cost
andthe
subsequent
operation and
maintenance
costs. Each of
these major
cost
categoriescon
sists of a
number of
cost
components.
The capital
cost for a
construction
project
includes the
expenses
related to the
initialestablish
ment of
the facility:

Land
acquisition,
including
assembly,
holding and
improvement

Planning and
feasibility
studies

Architectural
and
engineering
design

Construction,
including
materials,
equipment
and labor

Field
supervision
of constructio
n

Construction
financing

Insurance and
taxes during
construction

Owner's
general office
overhead

Equipment
and
furnishings
not included in
construction

Inspection
and
testing The
operation and
maintenance
cost in
subsequent
years over the
project life
cycleincludes
the following
expenses:

Land rent, if
applicable

Operating
staff


Labor and
material for
maintenance
and repairs

Periodic
renovations

Insurance and
taxes

Financing
costs

Utilities

Owner's other
expenses