Introduction

A project is a temporary endeavor undertaken to create a unique product

service or result. (PMI definition )

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 Projects
Create own charter,
organization, and goals
Catalyst for change
Unique product or service
Heterogeneous teams
Start and end date
Operations
Semi permanent charter,
organization & goals
Maintains status quo
Standard product or service
Homogeneous teams
Ongoing
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Some definitions of Project Management

"The art of directing and coordinating human and material resources to

achieve stated objectives within the limits of time, budget, and client
satisfaction."

"The art of making things happen.

"The planning, monitoring and control of all aspects of a project and the
motivation of all those involved in it to achieve the project objectives on
time and to specified cost, quality and performance."

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Some definitions of Project Management

"The discipline of managing projects successfully."

The application of knowledge, skills, tools and techniques to project activities

in order to meet or exceed stakeholder needs and expectations

from a project accomplished through the appropriate application and

integration of logically grouped project management processes. (PMI)

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 Project management may be defined as
the overall planning, co-ordination and control of a project
from inception to completion
aimed at meeting a clients requirements
in order to produce a functionally
and financially viable project
that will be completed on time
within the authorized cost
and to the required quality
without compromising on Health and Safety issues.
(Definition from the Chartered Institute of Builders)

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Project Management:

The science of Project Management was developed to plan, direct and

track projects.

Project Management starts with a goal.

This goal should be stated in a concise and precise manner leaving no
ambiguity.

Thereafter by a methodical application of the principles of project

management, it will be possible to achieve optimum results.

This implies that a project is invariably a means to an end, and not an

end in itself

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 Organizational Influences
Project is influenced by the
Organizational Systems,
Cultures,
Style and Structure
of Organization that set-up the project

Key General Management Skills

Leading, Communicating, Negotiating, Problem Solving

Socioeconomic Influences
Standards and Regulations, Internationalization, Cultural influence

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 The scope of Project Management spans the total process,

beginning from project formulation,

management of the planning and design stage,

management of the bid and construction/installation stage, and the

management of the commissioning and operation stage respectively.

The project managers basic objective would be to complete the project

within the cost, quality and time targets that are specified.

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A project manager needs to have a full awareness and a reasonable
knowledge of the total process from the beginning to the end

He would then be able to gainfully employ other specialized

professionals with specific expertise in the respective fields and guide and
coordinate their activities to achieve the desired results

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 Structure of project management
Construction and development projects involve the co-ordinated actions of
many different professionals and specialists to achieve defined objectives.

The task of project management is to bring the professionals and specialists

into the project team at the right time to enable them to make their best
possible contribution, efficiently.

The professionals and specialists bring knowledge and experience that

contribute to decisions, which are embodied in the project information.

The different bodies of knowledge and experience all have the potential to
make important contributions to decisions at every stage of projects.

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Structure of project management

It is not practical to bring specialists all together at every stage.

ignoring key bodies of knowledge and experience at any stage may lead to
major problems and additional costs

The practical way to resolve this dilemma is to structure carefully the way
the professionals and specialists bring their knowledge and experience into
the project team.

This structure is the Project Phases which collectively is the Project Life
Cycle

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Project Phases and Project Life Cycle
Each project is a unique enterprise with distinct phases
Phases can involve a degree of uncertainty
Each project phase is marked by completion of one or more deliverables
A deliverable is a tangible, verifiable work product
The project life cycle serves to define the beginning and the end of a
project

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Project phase: A collection of logically related project activities usually
culminating in the completion of a major deliverable.

Project life cycle: Collectively the project phases are known as the project
life cycle.

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Cost and staffing levels across the project life cycle

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 Every project phase should ensure correctness and completeness of
previous phase, e.g., general design phase
Assess all aspects of requirements, (design deliverables)
Identify and work off items
Determine contractor rewards/payment for closing phase
Conduct a readiness review to begin next phase, e.g., detailed design phase
Resource estimates and availability
Design stages to maturity
Project plan review and update
Secure stakeholder approval to proceed

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The most effective general structure for the project life cycle
specified by the Chartered Institute of Builders Code of practice for
Project Management gives eight stages

They are:

Inception,
Feasibility,
Strategy,
Design,
Pre-Construction,
Construction,
Commissioning and
Handover /Closeout

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 Each stage in the project process is dominated by the broad body of
knowledge and experience that is reflected in the stage name.

features of that knowledge and experience need to be taken into account in

earlier stages if the best overall outcome is to be achieved.

The results of each stage influence later stages and it may be necessary to
involve the professionals and specialists who undertook earlier stages to
explain or review their decisions.

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 Each stage relates to specific key decisions.

Project Teams hold a key decision meeting at the end of each stage to
confirm that the necessary actions and decisions have been taken and the
project can therefore begin the next stage.

There is a virtue in producing a consolidated document at the end of each

stage that is approved by the Client Body before proceeding to the next
stage.

This will act as a reference as well as acting as a vehicle for widespread

ownership.

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Inception Stage

Projects begin with the Inception Stage that results from business decisions
by the client which suggest a new construction or development project may
be required.

Project identification - where a search for project ideas and development of

such ideas into feasible proposals is done.

Pre-investment study - where the proposal is examined more closely with a

broad assessment of the various inputs, outputs and costs.

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 Inception Stage

Why is the project needed?

How best can the need be fulfilled? (For example New building or
refurbishment or extension of existing structure)

What are the benefits that can be expected as a result of the project?

What are the investment/ funding options?

What risks related to the development can be foreseen at this stage.

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Feasibility Stage

Essentially, the Inception Stage consists of commissioning a project manager

to undertake the next stage, which is to test the feasibility of the project.

The Feasibility Stage is a crucial stage in which all kinds of professionals and
specialists may be required to bring many kinds of knowledge and experience
into a broad- ranging evaluation of feasibility.

It establishes the broad objectives for the project and so exerts an influence
throughout subsequent stages.

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 Feasibility Stage

A detailed shaping of the project into operational details with a closer

examination of costs, inputs, outputs and returns is carried out.

The details thus gathered are put into a series of executive summary
reports, for information and a decision by the sponsor.

A project feasibility report, as a final document is prepared, where it is

made available for examination by any third party for participation,
financing, implementation or for subsequent operation.

A detailed feasibility study is carried out as part of the project formulation

exercise.

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 Feasibility Stage

A project feasibility study must contain comprehensive information and

provide a reliable basis for decision making, initially with regard to
acceptance of the project, and thereafter for implementation.

Superficial investigations of basic elements and unreliable answers to basic

questions are a common failing in typical feasibility studies.

The different aspects involved in a feasibility study are:

technical aspects

organisational or managerial aspects

financial aspects

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 Feasibility study reports should include
Scope of investigation (from outline project brief ) including establishing
service objectives and financial objectives
Studies on requirements and risks
Public consultation (if applicable)
Environmental impact assessment
Health and safety study
Legal/statutory/planning requirements or constraints
Estimates of capital and operating costs
Assessment of potential funding
Potential site assessments (if applicable)
Detailed project brief
Detailed design brief
Funding and investment appraisal.

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 The next stage is the Strategy Stage which begins when the project
manager is commissioned to lead the project team to undertake the project.

This stage requires the projects objectives, an overall strategy and the
selection of key team members to be considered in a highly interactive
manner.

It draws on many different bodies of knowledge and experience and is

crucial in determining the success of the project.

In addition to selecting an overall strategy and key team members to

achieve the projects objectives, it determines the overall procurement
approach and sets up the control systems that guide the project through to
the final Post-completion Review and Project Close-out Report Stage,

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Strategy stage

In particular, the Strategy Stage establishes the objectives for the control
systems.

They provide agreed means of controlling value from the clients point of
view,

monitoring financial matters that influence the projects success,

managing risk, making decisions, holding meetings,

maintaining the projects information systems, and all the other control
systems necessary for the project to be undertaken efficiently.

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 Strategy stage

Selecting the project team (relevant experience, technical qualifications,

appreciation of project objectives enthusiasm & commitment,
communication skills

Setting up a system for regular performance evaluation of project team

members

Ensure that communication protocols are established and implemented

Defining clear areas of responsibility and lines of authority for each

project team member

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Strategy stage

Reviewing and further developing the detail project brief and the preparation
of the final version.

Project master planning schedules with necessary allowances made for

applying and obtaining statutory approvals

Cost planning and budgeting

Procurement or contract strategy.

The way professionals and specialists with knowledge and experience are
brought into the project team at different stages is an issue that needs to be
decided during the Strategy Stage.

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 Pre-construction Stage

At the completion of the Strategy Stage, everything is in place for the Pre
construction Stage.

This is when the design decisions are made

This stage includes statutory approvals and consents, and bringing

manufacturers, contractors and their supply chains into the project team.

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Pre-construction Stage

Like the earlier stages, the Pre-construction Stage often requires many
different professionals and specialists working in creative and highly
interactive ways.

It is therefore important that this stage is carefully managed using the

control systems established during the Strategy Stage to provide
everyone involved with relevant, timely and accurate feedback about their
decisions.

Completion of this stage provides all the information needed for

construction to begin.

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Pre-construction stage

During the project planning and design stage, a detailed planning process is
carried out by the specialists engaged for the purpose.

They would do this in terms of the parameters identified during the project
formulation stage.

This will involve:

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Pre-construction stage

drawing up of technical specifications for the civil work, equipment and

machinery that will be used,

carrying out detailed designs

estimating and preparation of bid documents

Finalising legal documents relating to agreements for supplies and technical

services, etc.

firming up financing proposals, negotiating for finance

Procurement of other inputs.

In summary this is the preparation for the take off stage, of the project.

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 Construction Stage

The Construction Stage is when the actual building or other facility that the
client needs is produced.

In modern practice this is a rapid and efficient assembly process delivering

high-quality facilities.

It makes considerable demands on the control systems, especially those

concerned with time and quality.

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Construction Stage

The complex nature of modern buildings and other facilities and their unique
interaction with a specific site means that problems will arise and have to be
resolved rapidly.

Information systems are tested to the full, design changes have to be

managed, construction and fitting out teams have to be brought into the team
and empowered to work efficiently.

Costs have to be controlled and disputes resolved without compromising the

value and quality delivered to the client

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 Construction stage

In the construction/installation stage, the designers, contractors and

suppliers, would transform the project idea into a physical facility.

During this stage usually, the bulk of the finance as estimated for the project
will be spent and the major part of the project duration, will be used.

Substantial savings in cost and time and improved productivity can be

achieved during this stage by the implementation of a proper project
management system.

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 Commissioning Stage

The Construction Stage leads seamlessly into a key stage in modern

construction and development projects, the Engineering Services
Commissioning Stage.

The complexity and sophistication of modern engineering services make it

essential that time is set aside to test and fine tune each system.

Therefore these activities form a distinct and separate stage which should
be finished before beginning the Completion, Handover and Occupation
Stage which is when the client takes over the completed building or other
facility.

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 Commissioning Stage

The clients occupational commissioning needs to be managed as carefully

as the other stages because it can have a decisive influence on the projects
overall success.

New users always have much to learn about what a new building or other
facility provides.

They need training and help in making best use of their new building or
facility.

It is good practice for their interests and concerns to be considered during

the earlier stages and preparation for their move into the new facility begun
early so there are no surprises when the clients organization moves in.

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 Project Closeout

The final stage is the Post-completion review and Project Closeout Report
Stage.

This provides the opportunity for the project team to consider how well the
projects objectives have been met and what lessons should be taken from
the project.

A formal report describing these matters provides a potentially important

contribution to knowledge.

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Project Closeout

Project Managers, who are responsible for implementing projects, are

called upon to make day-to-day decisions, which have very far-reaching
consequences, both in terms of productivity and expenditure on the
projects they control.

A project is unique and is usually not a repetitive activity.

Therefore every project has to be planned and managed individually and

by means of a well formulated project management system.

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 The final stage in the project cycle is project operation.

This is where the facility or product is put into its ultimate use The success
or failure of the project management exercise will now be demonstrated,
when an assessment is made, as to whether the goal has been achieved.

A proper project management exercise will not leave it to a post-mortem,

to determine whether the project was a success or a failure.

This project management exercise will enable the sponsor with guidance of
a project manager, to continuously review project performance and take
timely action, to mitigate the effects of adverse events or take remedial
actions where possible to avoid such events

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 Role of a project manager:

For the purpose of administration of projects, there must be a series of

precisely drafted and integrated contracts between the owner and the
various contractors, consultants and suppliers, defining their obligations
and functions.

The role of the project manager is to undertake or co-ordinate the above

functions on behalf the owner and ensure that the objectives of the project
as defined are achieved.

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Role of a project manager:

To carry out his role successfully, the project manager should be able to lead
and inspire an enthusiastic team spirit, among all those involved at all
stages of the project.

He should be able to assign the correct weightage of time, cost, return and
quality at each stage of the project.

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Role of a project manager:

A project manager would undertake the following work in the development

and management of the project.:

definition of the scope and objective

preparation of budgets and cost estimates

selection, appointment and briefing, of an appropriate team of consultants and

advisers

Consideration of future use, and where appropriate, promotion and marketing

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Role of a project manager:

arrangements for finance and obtaining of expenditure approvals

co-ordination of the design process and obtaining of necessary approvals

co-ordination of the bidding process and monitoring of

construction/installation

commissioning and as necessary, monitoring the operations of the completed

project

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 Role of a project manager:

In order to be effective the project manager should be appointed at the

inception of the project, and have the necessary authority vested in him by
the owner.

It is important that the project manager is able to understand and respect

the specialised disciplines of the entire team that would be involved in the
development and implementation of the project.

It is also essential that the overall responsibility for coordination of the

project should in the hands of one person with support in depth as
required.

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 Management reporting:

The success of any project management system is heavily dependent on

effective reporting at every stage of the project.

The analysis of project data, results and records are translated into
executive summary reports which are meaningful to the owner, consultant
and the contractor.

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Management reporting:

These management reports are designed to improve coordination

between all parties, and generally keep the owner informed precisely of
the project status.

The frequency of such reporting will generally be agreed upon in

advance, with the owner and any supplementary reports are prepared as
circumstances demand.

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 Cost estimating and analysis:

The budget estimates are generally prepared by the project manager using
a combination of historic data and current price information through a
locally developed data base or on current international Costs with
appropriate currency conversion factors attached.

Thereafter the project manager will develop a refined cost estimate, in

parallel with design development.

The final budget estimate or the anticipated final Cost will be determined
from completed tender documents.

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 Tender analysis:

The project manager will analyse selected tenders and compare the bid
prices with the budget estimates.

He will obtain sufficient information of prices from the selected tenders to

prepare a detailed analysis to advice the owner of a workable bid price.

He will check for abnormal pricing of any items.

He will also analyse the proposed resource inputs for labour, materials and
plant to ensure that they are realistic.

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 Claims management: The key elements that a project manager will look at
in a claims management system will consist of:

review of signed contract documentation including conditions,

specifications, schedules and drawings

recommending modifications and/or additions to draft documents, to

improve the security of the sponsor/employer against potential claims, and
define the records to be maintained during the period of the contract, which
will form the basis of any future action against claims

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establish a system for maintenance of reliable site records

establish reliable progress control system and quality control system

analyse contractors construction programme, planned labour and

resources inputs, and the anticipated cash flow

monitor physical and financial performance from progress reports and

certificates and report regularly on deviations from original programme
advice on contractual matters and assist in correspondence

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 examine all claims and notices and advice on validity and the options
available to owner/employer to mitigate delays and/or costs

prepare estimates of likely value of all claims considered valid

examine all claims received, against actual records and establish additional
cost and/or delays and prepare recommendations with reference to
conditions of contract

Negotiate settlement of disputes with contractors.

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A process is a series of actions or steps taken in order to achieve a particular end.

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Process Groups:
Initiating processes recognize when project or phase should begin
Planning processes designing and maintaining a scheme which leads to
successful accomplishment of a project
Executing processes coordinating people and resources to carry out the
plan
Controlling processes monitoring and measuring progress and taking
corrective actions when necessary
Closing processes analyzing acceptance of the project or phase and
bringing it to an end

Links between process groups =>

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Project Integration Management
Ensure that various elements of the project are properly coordinated and
integrated
Processes: Project Plan Development, Project Plan Execution, Overall
Change Control

Project Scope Management

Ensure that the project includes all the work required, And only work
required, to complete the project successfully
Processes: Initiation, Scope Planning, Scope Definition,
Scope Verification, Scope Change Control

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Project Time Management
Ensure timely completion of the project
Processes: Activity Definition, Activity Sequencing,
Activity Duration Estimating, Schedule Development, Schedule Control

Project Cost Management

Ensure that the project is complete within the approved budget
Processes: Resource Planning,
Cost Estimating, Cost Budgeting, Cost Control

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 The Project Management Knowledge Areas (I)

Project Quality Management

Ensure that the project will satisfy the requirements
Processes: Quality Planning, Quality Assurance,
Quality Control

Project Communication Management

Ensure timely and appropriate generation, collection, storage
And ultimate disposition of project information
Processes:
Communications Planning, Information Distribution,
Performance Reporting, Administrative Closure

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Project Risk Management
Concerned with identifying, analyzing, and responding to project risk.
Maximizing the results of positive events
Minimizing the consequences of negative events
Processes: Risk Identification, Risk Quantification,
Risk Response Development, Risk Response Control

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Project Procurement Management
Acquire goods and services from outside the performing organization
Processes: Procurement Planning, Solicitation Planning, Solicitation,
Source Selection, Contract Administration, Contract Close-out

Project Human Resources Management

Make the most effective use of people involved with the project
Processes: Organizational Planning,
Staff Acquisition, Team Development

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 Ten ways in which a project can go wrong
1. HAVE NO OVERALL PLAN
2. HAVE A POORLY DEFINED SCOPE
3. DONT MANAGE THE SCOPE
4. IGNORE PROJECT ORGANISATION
5. ASSEMBLE A POOR ESTIMATE
6. DONT CONTROL PROJECT COSTS
7. DEVELOP AN UNREALISTIC AND CONFUSING SCHEDULE
8. DONT MANAGE THE SCHEDULE
9. DONT MANAGE THE START UP
10. MAKE THE SAME MISTAKES NEXT TIME AROUND
CONCLUSION

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