GUIDANCE FLOW

4.1: THE IDEA

4.2: MANAGEMENT FUNCTIONS

4.3: ORGANIZATIONAL STRUCTURES

4.4: TYPICAL PROJECT DELIVERIES

4.5: ICT IN CONSTRUCTION

 4.1: THE IDEA OF INTEGRATION

CONSTRUCTION
PROJECT SUSTAINABILITY
MANAGEMENT

HOW?
WHO?
WHOLE CONSTRUCTION PROJECT
LIFECYCLE

CONSTRUCTION CONSTRUCTION
PROJECT MANAGER SITE MANAGER
MANAGER

PEOPLE INVOLVE!
NEED AN ORGANIZATION!
Legends: Process

1. Idea 7. Advertise notice to bidders

2. Conceptual design 8. Bid period & receipt of proposals
3. Approval of conceptual design 9. Select contractor
4. Preliminary & final design 10. Notice to proceed
5. Bid package complete 11. Construction period
6. Decision to release for bid 12. Inspection & acceptance of project
ENGINEERING PROJECT ORGANIZATION

…just focused this…

Organizational

Contingency Scientific

Management
Approach

System Bureaucracy

Human
Relation
 Organization Definition
• A group of people who have
different talents working
together toward a common
goal.
• Organization is a unit within a
company within which many
projects are managed as a
whole.
• All projects within an
organization share a common
top-level manager and
common policies.
 Organization in Management
What is Organization Management ?
“ the attainment of organizational goals in an
effective and efficient manner through
management functions (e.g. planning, organizing,
leading, and controlling) towards organizational
resources”
• Purpose?
– Establish area and level of responsibility in
accomplishing the goals of company
– Determine communication way within a member
 Impact of Effective Organization
Proper
implementation
of works

Easy to make Effective Easy to make

a plan decision
Organization

…MAY LEAD TO SUCCESS

Minimize a
misspend and & SUSTAINABILITY
corruption
 4.2: Management Functions in
Organizational Approach
Planning

• Action to guide a project completion.

Organizing

• Arrangement of resource in a systematic manner to fit the

project plan.

Controlling

• Establishment of a system to measure, report, and forecast

deviations in the project scope, budget and schedule.
 Management Functions in
Organizational Approach (cont.)
Leading

• Involves the social and informal sources of influence that use to inspire
action taken by others.

Coordinating

• The synchronization and integration of activities, responsibilities and

command and control structures to ensure that the resources of
organization are used most efficiently in pursuit of the specific
objectives.

Staffing

• Selection of individuals who have the expertise to produce the work.

 Management Functions in
Organizational Approach (cont.)
Forecasting

• The act of predicting business activity for a future period of time.

Directing

• Guidance of the work require to complete a project.

Motivating

• Using incentives, persuasion and mental or physical stimulants to

influence the way people think or behave individually or in
groups.
 Manager’s Roles in Planning
• Develop planning focused on the work to be performed.
• Establish project objectives and performance requirements early so
everyone involved knows what is required.
• Involve all discipline managers and key staff members in the process of
planning and estimating
• Establish clear and well-defined milestones in the project so all concerned
will know what is to be accomplish and when it is to be completed.
• Build contingencies into the plan to provide a reserve in the schedule for
unforeseen future problems.
• Avoid reprogramming or replanning the project unless absolutely
necessary.
• Prepare formal agreements with appropriate parties whenever there is a
change in the project and establish methods to control changes.
• Communicate the project plan to clearly define individual responsibilities,
schedule and budget.
 Manager’s Roles in Organizing
• Organize the project around the work to be
accomplished.
• Develop a work breakdown structure that
divides the project into definable and
measureable units of work.
• Establish a project organization chart for each
project to show who does what.
• Define clearly the authority and responsibility
for all project team members.
 Manager’s Roles in Staffing
• Define clearly the work to be performed, and
work with appropriate department managers in
selecting team members.
• Provide an effective orientation (project goals
and objectives) for team members at the
beginning of the project.
• Explain clearly to team members what is
expected of them and how their work fits into the
total project.
• Solicit each team member’s input clearly define
agree upon scope, budget and schedule.
 Manager’s Roles in Directing
• Serve as an effective leader in coordinating all important
aspects of the projects.
• Show interest and enthusiasm in the project with a “can
do” attitude.
• Be available to the project staff, get problems out in the
open, and work out problems in a cooperative manner.
• Analyze and investigate problems early so solutions can be
found at the earliest possible date.
• Obtain the resource needed by the project team to
accomplish their work to complete the project.
• Recognize the importance of team members, compliment
them for good work, guide them in correcting mistakes, and
build an effective team.
 Manager’s Roles in Controlling
• Maintain a record of planned and actual work
accomplished to measure project
performance.
• Maintain a current milestone chart that
displays planned and achieved milestones.
• Maintain a monthly project cost chart that
displays planned expenditures and actual
expenditures.
4.3: TYPES OF ORGANIZATIONAL
PROJECT STRUCTURE
 What is organizational structure?
• The organizational structure is defined as a formal
coordination and communication patterns by management
to:
– resume task or
– define responsibilities of individuals and groups in achieving the
ultimate goal of the organization
• The structure determine:
– Division of works
– Responsibilities
– Cooperation
– Consultation
– Decision making
– Information flows
 Selection of organizational structure
• task, goal, products or services will be
produced and achieved,
• factors such as group size
• dynamic factors: such as technology, the rate
of change in environment and the type of
work related
• the selection of management control area and
the degree of centralization
 Types of organizational structure
• Primary project management organizational
structure are:
– Functional
– Matrix
– Pure project
 Functional Organization
• Characteristics
– Based on function or role
– Employees are grouped hierarchically
– Clear lines of authority
– Only one person at top
– Vertical information flow
Functional Organization (cont.)
 Functional Organization (cont.)
• Advantages
– reduces or prevents conflicts of interest
– efficiency and clear lines of authority, communication and
accountability
– workers easily coordinate and communicate within their
departments
– work well for small and less project organization
– task assignments consistent with technical training
– high quality technical problem solving
– in-depth training and skill development within function
– clear cut career paths within functions
 Functional Organization (cont.)
• Disadvantages
– project managers have limited authority and a
limited career path in this type of structure.
– poor communication and coordination across
functions
– having too many decisions referred upward in the
hierarchy
– slow innovation in response to environmental
changes.
 Matrix organization
• Characteristics
– Combination of the pure functional structure and
the product organizational structure
– suited for “project-driven” companies such as
construction.
– people with similar skills are pooled for work
assignments, resulting in more than one manager
– project manager has total responsibility and
accountability for project success.
Matrix organization (cont.)
 Matrix organization (cont.)
• Advantages:
– Individuals can be chosen according to the needs
of the project.
– Better coordination and policy decisions
– Effective cost management
– High visibility of project objective
– High degree of coordination by project manager
– Flexibility in utilizing limited resources
– Minimal conflicts
 Matrix organization (cont.)
• Disadvantages:
– Personal dissatisfactions
– Difficulties in setting priorities
– Complexities of communication and control
– Projects can be difficult to monitor if teams have a
lot of independence.
– Costs can be increased if more managers (i.e.
project managers) are created through the use of
project teams.
 Pure project organization
• Characteristics
– Project is separated from the rest of the parent
system
– Becomes self contained unit
– Project requiring major changes.
– Hence, a small, self-sufficient and full-time team is set
up.
– The team leader is like an entrepreneur.
– Leader has full responsibility over the project.
– Functional units are stable, provide support to project
teams.
Pure project organization (cont.)

President

Vice President Project A Vice President Project B Vice President Project C

Finance Manufacturing Finance Manufacturing Finance Manufacturing

 Pure project organization (cont.)
• Advantages
– a strong divisiveness occurs between the project team and
the parent organization.
– PM has full line authority over the project
– All project workforce directly responsible to the PM
– Lines of communication are shortened
– Maintain permanent group of experts
– High level of commitment
– Ability to make swift decisions
– Unity of command
– Simple and flexible structure
– Support holistic approach to the project
 Pure project organization (cont.)
• Disadvantages
– Project team members have difficulty in going back to
their functional units when the project is over
– Duplication of effort
– Stockpile equipment and technical assistance “just in
case”
– Lack of expertise in high technology project
– Foster inconsistency and cutting corners
– Project takes on a life of its own
– Worry about “life after project ends”
 Project Organization VS Functional
Organization
• Fast decision, simple & clear lies of duty & responsibilities
• More innovative, problems are usually solved on the
Project spot/within branch
• Very efficient in achieving specific target
• More expensive, resource sometimes not fully utilized
Organization • Less chance for staff development on special
knowledge/skills

• Bureaucratic due to protectionism between specialist

branches

Functional • Less innovative since function are separate and problems

must be referred to relevant branches
• Less efficient in achieving specific target.
Organization • Less expensive, due to less wastage in utilizing resources
• More chance for developing special knowledge/skills
FACTORS TO CONSIDER BEFORE DECIDING ON
ORGANISATIONAL STRUCTURE
Level of
uncertaint
y in Project
Data Project
Requirement Duration
s s

Technolog Resource
y Required Factors s

Overhea
Complexity
d cost
Number of
projects &
their relative
importance
4.4: METHODS OF PROJECT DELIVERY
 Methods of Project Delivery
• Major Project Delivery Methods commonly
used are:-
– Traditional method (Design-Bid-Build)
– Design-Build
– Construction Management / PMC
– Owner-Builder Arrangement
 1. Methods of Project Delivery
Traditional Project
Two-step procurement (design and build (Design-Bid-Build)
as separate contract)
Single general contractor and separate
designer Project Owner
 Can be done by contractor itself and/or
subcontractor
 May involves numerous subcontractors Designer
Project can be the “most economical General
Architect/
form of construction procurement when Contractor
Engineer
contractor bid at the lowest price”.
However experts agree that this method
also could be the “most expensive form
of const. procurement with the lowest
quality product if not well monitor”.
Most contract is based on Bill of
Quantities.
 2. Methods of Project Delivery
Design-Build Project/Turnkey
Project Owner

Design/Build
Firm

Contractor Contractor Contractor

 Procurement system in which the owner contracts with a contractor and/or designer
as a single unity, under one contract.
 Owner assign design and build firm to run the project.
 Design & Build Firm will be responsible for both design and construction work.
 Provides the means for company to manage their construction needs without a large
internal staff, and still meets their needs for quality and timeliness.
 Most contract in lump sum value.
 Optional own forces work for contractors and subcontractors.
 Possible Disadvantage is that a dominant contractor will overrule the designer’s
recommendations of quality in the interest of cost.
 3. Methods of Project Delivery
A Construction Management
(CM) Project
Owner

Contract assigned to CM firm

CM/PMC or Project Management
Designers
Architect/ Consultant (PMC) to
Engineers coordinate the project for the
owner.
Contractors Contractors Contractors Four Party arrangement
involves owner, designers, CM
firm and contractors.
CM does not perform design or
construction work with it own
forces.
 4. Methods of Project Delivery

Owner-Builder/Agent
Arrangements Owner

Sometimes used for handling a

In-House Contract
project. Design Design
Owner perform a partial design
with in-house designers and
Owner Contract
contract the balance of designs
Coordinator
to one or more outside-design
consultants.
Construction contract may be Contractor Contractor Contractor
assign to one or more
contractors
Methods of Project Delivery
4.5: Information and Communication
Technology
(ICT) In construction
 Introduction
• ICT(Information and Communication Technology)
– extended for information technology (IT)
– technologies that provide access to information
through telecommunications
– focuses primarily on communication technology
– includes internet, wireless network, cell phones
and other communication medium which enable
users to access, store, transmit, and manipulate
information.
 Why construction industry need an
ICT?
• ICT becomes a vital tool for managing
information
• large amount of project information generated
and used during the various stages in project life
cycle.
• Sharing and maintaining this information among
multiple disciplines and throughout the project
life cycle is complex and difficult task.
• So, flow of information need to be managed so
that it will be received or accessed when
required.
 How to implement ICT in
construction?
• Information management!!!!
• Why bother information management?
– Traditional methods have not always worked.
– Scale of building work has change
– Involvement large number of people
Input and output in project phase

Conceptual Detail Construction

Idea Construction Operation
design design planning

Information in
construction.
Drawings Estimate As-built What else?
Report Drawings -Engineer Inst.
schedule drawing
-Arch. Inst.
-Etc.

Traditional fragmented and sequential project delivery process

 Role of ICT in managing information
Factory & Building
commercial management
Specialist
Owner
contractor

DATABASE

Main Designers/
contractor engineers

CAD
Commercial

Information technology life cycle for project teams

 Problems?
• Causes of problem in adoption and utilisation
of integrated IT system (Alswahi, 1996)
– Poor management and communication
– The fragmented nature of the industry
– Lack of standardisation and uniform procedure
– Number of participant involved in construction
project.
We can change the system, but we cannot
change people using the system…
We can change the system, but we cannot
change people using the system…

So, where
are we?
 Individual Assignment 1
• Based on Chapter 1 to Chapter 4, we have the
understanding on roles of manager. However,
manager are not able to work alone and that’s
why they need an organization to ensure the
successful of construction project.
• Based on your understanding on roles of
manager in managing the organization, discuss
the method can be used in order to assist the
team member so that their work meet the
expectation of the manager.