PROJECT MANAGEMENT

Project Management techniques are important tools in planning, implementing and

controlling physical structures and infrastructure as they denote tracking of construction
activities, preparing and properly allocating resources, clearly defining the roles of project
participants, ensuring transparent and efficient operations, engineering economy, cost
effectiveness, and safe work environment.
This chapter discusses essential components of Project Management and useful
guidelines in successful planning and implementation of projects.

PROJECT

A “Project” is a plan or an undertaking composed of collective tasks and activities such as

planning, financing, designing, constructing and managing operations to achieve particular
objectives. Its success may be defined by the achievement of work that is massive in scope;
measures up to the desired quality; and completed within the prescribed timeline or schedule
and within the approved budget. A construction project is an endeavor having a defined
beginning and end, undertaken to meet specific goals and objectives.
The concept of “Project” is applied in many industries. In each field, the set of tasks and
processes involved vary.
In manufacturing, a Project can be a repetitive, permanent or semi-permanent functional
work meant to produce products for trade. The whole process of a manufacturing project usually
spans the range of activities from acquisition of raw materials to packaging of finished products.
Manufacturing involves crucial but usually under-prioritized functions such as inventory control,
quality control, and industrial safety.
For consultancies, a Project may entail the exhaustive tasks of planning, executing and
delivering the required professional services. In compliance with the Terms of Reference (TOR),
consultants may be required to conduct preliminary surveys, prepare inception reports, gather
data, present and analyze information, and formulate draft and final reports.
In lending institutions, a Project could pertain collectively to highly analytical processes of
project identification, pre-appraisal, appraisal, negotiations, contracting or documentation, and
project supervision and review. Missions are dispatched to undertake these tasks.
A “Project” is likewise popularly referred to in Construction. There is a cross- reference
between a “Project” with all the concerned activities (Refer to 1.2 Project Development Cycle) and
a “construction project” wherein at times, the pre-investment and post-investment phases are
absent or performed by other parties. Factually, a construction project is concerned mainly on
project implementation. It is one endeavor that has a clearly defined beginning and end,
undertaken to meet specific goals and objectives.

PROJECT DEVELOPMENT CYCLE

The cycle of Project Development is classified generally in three phases: pre-investment,

investment, and post-investment. Identification of this timeline is important.
The whole cycle basically goes through seven work stages: project identification or
initiation; project preparation; appraisal and financing; engineering and detailed design;
implementation; operation and maintenance; and post-project evaluation. In each stage, there
are vital activities that must be carried out well to ensure success of the project.

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1. Project Identification or Initiation
Projects are identified or initiated in numerous ways. It may take off from the “felt need”
or personal desire of a private project owner; a request from concerned groups and individuals;
an identified deficiency by government and funding institutions; or as part of a development
program of government.
The initiation process dictates the nature and scope of a project. However, it is of primary
importance to understand clearly the business environment, including the socio-economic
condition of an area covered by the project.

2. Project Preparation
After the initiation phase of the project, adequate level of details must be formulated. This
is the Project Preparation stage. The basic purpose of the preparation is to identify the resources
needed, estimate costs, plan time schedules, define work needed, and identify potential risks
during project execution.

Project preparation entails basically the following:

a. determining the scope of work and coverage;
b. identifying deliverables or outputs;
c. visualizing the project team composition;
d. estimating the resource requirements for the various activities;
e. forecasting project costs;
f. preparing projected cash flow;
g. estimating time vis-à-vis logical sequence of activities;
h. formulating budget;
i. planning risks; and
j. defining quality standards.

Usually pre-feasibility and feasibility studies are formulated at the preparation stage.
There are times when Industry Studies are also undertaken. For simple projects, a Project
Profile is sufficient.

3. Appraisal and Financing

If a project requires external financing sources, the process of application, appraisal or
evaluation, negotiations, and financing is inevitable. The project owner then must be meticulous
and patient in complying with the requirements as the lending institution (e.g. a bank) conducts
appropriate due diligence in assessing the project and its principals prior to approval of
financing. For huge and complex projects, pre-appraisals are conducted.

4. Engineering and Detailed Design

The Investment Phase commences with the preparation of Engineering and Detailed
Designs. Plans and designs are developed after considering various factors like owner’s
preference, local conditions and amount of investment to be allotted. Depending on the type of
project, many aspects are considered in the development of the plans and designs. Among them
are the land use, zoning, development plan, architectural works, civil works, structural, sanitary,
electrical, mechanical, environmental, and cultural considerations.

5. Implementation / Construction
Capital outlay is poured in during implementation or construction of an envisioned
project. This topic is discussed at length in Chapter II.

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6. Operation and Maintenance
When the constructed structures are completed and turned over to the project owner,
they are then operated and maintained. Allied to these activities are repairs, rehabilitation,
redevelopment and expansion.

7. Post-Project Evaluation
When the project is completed and in operation, a post-project evaluation is undertaken.
The objective is to compare plans and targets with the actual completed structure. If necessary,
improvements are made.

Shown in Figure 1 is the schematic presentation of the Project Development Cycle.

Project Implementation or the Construction stage is often times referred to as the “Project.”
However, theoretically, those enumerated in the cycle represents the complete set of project
activities.

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 MANAGEMENT FUNCTIONS

Managers are expected to perform certain duties or functions as they move projects to
successful completion. Experts have classified Management functions in variety of ways. It is
widely accepted that Management’s fundamental functions are planning, organizing, directing,
and controlling. But as more factors come in to play, especially in big and complex projects with
more stakeholders, the functions of Management have become more specialized allowing for a
more thorough handling of each work activity. Each adjunct function then evolved into a
discipline of its own.
Below are nine (9) identified functions of Management:

1. Planning
Planning is setting up of goals, objectives and targets of an organization or, specific to the
focus of this book, a construction project. Target-setting refers particularly to certain factors like
time, budget, profit, desired quality, and scope of work.

2. Organizing
Organizing is a Management function that deals with the development of an organization
structure, a functional chart and a position chart – all aimed at realizing the established
objectives and targets of a project.

3. Staffing
Staffing deals with the recruitment and development of competent employees through a
process of evaluation, selection, placement and human resource development (includes, setting up
of training programs and benefit scheme).

4. Directing
Directing is providing instructions to lower level personnel; communicating the work to
be done periodically; leading the tasks required in a project; and motivating people to work
efficiently and effectively.

5. Controlling
Controlling is a function performed by middle and top-level project engineers and
managers. They measure accomplishments according to set targets. They check personnel
productivity and examine the quality of work. If there are deviations, appropriate corrective
actions are recommended and verified thereafter if such were followed after a reasonable period
of time.

6. Reporting
Reporting deals with the periodic preparation of required reports for submission to
higher authorities and to the project owner. If financing was secured, copies of the reports
should likewise be given to the financial or lending institution for variation. Forms depicting all
pertinent information are developed and subsequently accomplished.

7. Monitoring and Evaluation

Monitoring and Evaluation are related to Controlling. There are instances when
Monitoring is performed monthly and Evaluation is done on a semi-annual basis. Issues,
problems, and constraints that hinder project completion and implementation of plans are
identified and analyzed. Solutions are recommended and actions are developed and executed. The
forms used in Monitoring and Evaluation may vary on the details or depth of the contents.

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8. Coordinating
This function of Management involves formal meetings including planning sessions,
project coordination, consultation and problem solving meetings. It is the venue to communicate
project participants' views, positions and opinions. After productive deliberations, decisions are
made and participants agree on course of actions to take.

9. Reviewing
A project is reviewed in a wholistic manner when it is 95% completed or after
completion – depending on the agreement of project participants. The whole process of Project
Management or Construction Management, especially its results, is once more reviewed prior to
project turnover. This ensures that all aspects are covered, desired objectives and targets are
achieved, and all problems are solved.

RESOURCES

Resources Management chiefly concerns the administration of physical resources from

origin to final consumption. It encompasses materials management, purchasing, physical
distribution and installation. Resources are quantified, sourced, and scheduled. Figure 3 shows
the schematic illustration of Resources Management.

1. Money
Money refers to sources and uses of funds and the financing plan. A cash flow projection
is inevitable. Periodic budgets are prepared. Proper accounting of payables and receivables is
undertaken, controlled and reviewed occasionally. Systems and procedures on fund
disbursement, bookkeeping and audit are developed and adapted.

2. Materials
The Bill of Materials refer to such list of items like aggregates (sand and gravel), cement,
steel bars, lumber, and others which have to be quantified, purchased and delivered on time for
installation and properly inspected to meet specifications and quality standards. Material
sourcing, transportation arrangements, and inventory control are planned. Required material
quantities and schedules of deliveries are likewise developed.

3. Manpower or Labor
Manpower or Labor refers to the operationally required human resource for the project,
such as foreman, masons, carpenters, technicians, craftsmen and engineers, whose joint concern
is to finish the project at desired quality, standard, and time. For this, manning schedules are
developed, manpower productivity is documented and labor availability and skills levels are
assessed and determined.

4. Equipment or Machineries
Heavy equipment, machineries and appurtenances, vehicles and trucks, and spare parts
are needed in project sites. Their proper handling, maintenance, and repair are necessary to
ensure good running condition at all times. Preventive maintenance schedules are formulated.
5. Methods or Technologies
Methods refer to the range of traditional, modern or state-of-the-art technologies or a
common combination of these, which are applied to the project in order to increase manpower
productivity, improve construction methodologies, maximize labor use, and better utilize

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appropriate materials. Appropriate construction methods are adapted. Technology transfer is
noted as a good practice. Thus, whenever possible, the employment of such is encouraged.

6. Information
Modern Management has considered information as a vital resource. Geo-technical
data, weather condition, topographic and aerial photographic information are gathered and
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