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Construction
Projects
Management
An Overview
Note ForEngineers
P Eng Suraj Singh – April 2011
Hyperlinks for use are given below:

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1. Projects Requirement Reasons (a brief talk)


2. Project Management Concept & Its Necessity
3. Project Management
4. A Brief Analysis To Understand How To Integrate Project Plan With
Required Knowledge Areas?
5. Structure sequences of Project management knowledge areas requirements:
6. Risk Response plan – Risk Management Plan
7. Communication
8. Initiation – Project’s Initial Charter Constituents
9. Planning – Development of project plan, Major Processes Constituents
Within Planning, Knowledge Areas integration with development plan
10. Client or Owner: Meeting dead lines to release bid documents
11. Bidder or Tenderer: Meeting dead lines to submit bid
12. Execution or implementation processes:
13. Communication channels or processes: Involvement by all relevant Parties
14. Monitoring & updates - continuous processes during project life cycle
15. Lessons Learnt from mistakes & incorrect decisions
16. Completion or closing & administrative controls

Forward:
1. This paper talks of real project management only.
2. Contents well known to you have been inserted in various parts.
3. Project management applications are well known to all engineers but,
the presentation is an attempt to refresh the reader by a brief
deliberation proposition.
4. At the end of presentation, one should feel comfortable about the
precise refreshing of most aspects of project management.
Presentation shall be revised further in future depending on future
requirements.
5. Brainstorming postings are welcome for further improvements.
Part 1
Projects Requirement Reasons (a brief talk)
Hyperlinks
1. Evolution of society & development- Movement of time obviously,
results in regular development of all economies. Such developments
certainly require fulfill demands of facilities of infrastructure in the
economies so that new products or processes may be generated.
Evolution creates projects from all disciplines & projects would be
intra disciplinary allied ones. Technological up gradation & newer
technologies generate requirement of projects or services & lead to
operations.

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2. Marketing Demand for all operating unit organisations-


Organisations do require maintain their status & promote their
commerce that would certainly impose on the organization to explore
possibilities how to contain their markets by further adding various
schemes of new products or supporting products.

3. Business Need of Commercial houses- Maintaining & promoting


existing business requires various types of strategies & the
management has to bring in certain additional projects to maintain
status even, at the cost of no additional profit for a considerable length
of time.

4. Customers Requests for modifications- Customer is the ultimate


client for any organization. Customer satisfaction is an utmost
important goal, which any organization has to achieve. Customer
requirements or new demands are required to be met in a given length
of time. Customer has to be provided additional value for the product
or service being provided at the same price or in a competitive
environment at curtailed price. Such requirement has to force the
provided for additional standards or schemes that results in delivering
incentive products in addition to original product or to provide
improved products. New projects are required to be thought of to keep
hold on customers.

5. Technological Advances in globe- Well known to all that technology


in all discipline keep on changing with a fast pace that forces the
industrial business groups to maintain update on the technologies so
that existing products are adopted to newer uses that shall definitely
result in better quality product with lesser cost. Particularly, in
electronic world, technologies change very fast that demands for
revision on all products resulting in generation of additional projects.

6. Legal Requirements for implementation of laws- Notification of


newer laws for example environment improvement laws etc. would
require improvement on many product existing in the market.
International laws would also necessitate similar actions on the
industries. Various local laws shall force the areas relevant to bodies
for launching newer projects.

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7. Social Needs fulfillment- Society keeps on changing continuously as


defined in social change but in parallel, society keeps on adopting
newer life style that requires newer products that result in newer
projects all over. Society shall never be constant in living & adopting
standards while, projects shall be kept on requiring in all economies.
Part 2
Hyperlinks
Project Management Concept & Its Necessity–
1. Just to share about professional experience with the engineers, I am
pleased to initiate this series of actual project management
requirements that need understanding & attention by the general &
specialist engineers.

2. Project management subject has been ignored by many of budding as


well as practicing engineers in the light of misconception that it is a
separate discipline.

3. Professional Engineering spectrum requires a good understanding


about the degree of attainability of engineering management in
whatever branch of engineering.

4. Sub discipline of engineering designs projects are well required to be


duly integrated with the whole spectrum of the project management
decisions & implementation processes without which the role of
analysis & design engineering go futile to a major extent.

5. Those who do miss the management principles & their interactions


followed by implementations as well as monitoring, find it almost
difficult to sail smoothly in turbulent waves.

6. Many publications have been issued by various specialist institutions


such as PMT based on general understanding about the general
management of projects while, these publications are not customized
to real civil engineering projects as evidenced by excessive
explanations & formatting designs of the processes that makes the
subject entirely cumbersome in understanding approach.

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7. It is important to know about all the aspects of the project


management rather than trying to dip into the voluminous books that
allow no schedule out of the busy schedule of every practicing &
professional engineer. It is also true that various sequences about
inputs as well as output on various processes & knowledge areas do
not comply with the real requirement & try to mislead the engineers.

8. An attempt has been made to bring on few sheets of paper major


requirements that would certainly be meant for any or all projects
during all phases of project life cycle. Practical experience has been
put on papers for budding engineers to learn about virtual
management not available in a single chapter elsewhere. It has to be
noted that value of management of projects depends on an individual
knowledge, commitment & dedication for project. A spirit of
management & a proficiency of leadership power attainment are
required to operate all stages of any project from FEED to closing out.
Part 3
Hyperlinks
Project Management
Objective: Projects Deliveries (all deliverables).

What do I Understand by Profession of Project


Management Discipline?
Applications of earned knowledge enriched with advanced skills,
organization environmental factors & processes, tools & techniques to
deliver specific results or services to the client or customer in line with
project delivery (all deliverables) requirements through the route of Project
Management Plan, Execution & Change Controls, using leading &
organizing potentials, all integrated with Scope, Quality, Time, Cost,
Risks, Human Resources, Procurement, Communication plans etc.

Hyperlinks
A Brief Analysis To Understand How To Integrate
Project Plan With Required Knowledge Areas?
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Construction Projects Spectrum Relevant To Civil Engineering


Specialty Disciplines Required In Field.
1. Project Management is defined briefly as an exercise of doing Total
prospective processes, applicable for years to deliver agreed
objectives to the end user, consumer or the client or the owner of the
project.

2. Project is defined as a temporary plan or scheme for a generally,


permanent existence of some or any specific objective for a certain &
specific purpose or service.

3. Duration of project could vary between months to years & also, to


decades as well, depending on the magnitude of the project.

4. Projects can belong to all classes of engineering specialties that may


effect the nation building as well as to meet international
requirements.

5. Project management is a broad term used to define the project from its
inception to deliveries stage & maintenance thereafter. After the
project is delivered, the term changes to operation that could be a part
of maintenance or consumer deliveries or to render regular public
service.

6. Project & product are different terms applied to different status.


Project as defined is a temporary execution while, product is a regular
manufacturing process requiring operational arrangements.

7. Continuation or future of products depend upon competitive market


economy & product’s sustainability by adopting further developments
but, project is entirely independent of such factor but, to evolve fully
supporting system for the delivery of requirement so that, it can be
used as a permanent objective. Successfully, to be used as production
infrastructure mechanism.

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8. There are certainly projects of all types in the market or industries or


organizations. In this discussion, the intention is to talk about projects
dealt with, in civil engineering industries.

Who Are Involved In Civil Engineering Industries?


1. Clients Or The Government Or The Private Owners Or The Ministries
Or International Organizations.
2. Security Related Projects.
3. Local Self Governing Bodies.
4. Statutory Companies.
5. Government Companies.
6. Public Private Partnership.
7. Non Government Organisations.
8. Petrochemical Industries.
9. Heavy Industries.
10. Industries Of All Sorts.
11.Real Estates.
12.Housing of all sorts.
13.Commercial.
14.Institutional.
15.Contracting Companies.
16. Private Companies Or Entities.
17. Private Promoters.
18. Private Individuals.

What Type Of Projects Are Manageable?


1. Government As A Client & Awarding To Contractors.
2. Government As A Promoter Executing Self Through Departments.
3. Organisations Executing Self Either For Promotion Or To Meet
Market Demands Or To Make Updates.
4. Organisations Working As Contractors For All Classes & All
Disciplines.

Studies required for a project are entirely different. Evolution of any project
starts with economy requirement & understanding of viability in future.

1. Feasibility study tells whether or not, proposal can be adopted


depending on the location availability or meeting development
demands.

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2. Feasibility studies take its own time & after successful completion of
studies & consequential declaration of the project or scheme demand
suggestions, budget has to be arranged by the client or whosoever,
would be the owner of the project.

3. Funding is required based on this study as budgetary so that further


follow up process in gross scale can be commenced with. Without
provision of budget data & certainty, project cannot move further.

4. FEED (front end engineering design) documents publication defining


the thorough requirements of project designs, technicalities involved
& the required specifications from the designer as well as from
contractors. This stage is too technical & requires personal with
specialty potential. Hundreds of decisions are required as policy of
project.

5. Designing of project with schematic details for development


documents followed up by further bid documents. This stage is
subsidiary to the FEED that requires in depth technical detailing for
purpose of top liner execution on front. Hundreds of decisions are
required as implementation & to cost effecting scopes.

6. Project deliveries can be made based on the thorough studies, decision


making, implementation, monitoring, corrections, updating, reviews,
provisions of the additional budgets, absorbing or mitigating possible
risks involved with the whole procedures or the project stages etc.

7. According to Management structures, specific terms are used to draw


supports to manage projects successfully in a professional way
though, these are not the least but exclusively, refers to as guiding
principles for any professional interested to understand what the
management is all about on any small or considerable size project.

8. Project Management includes applications of understood knowledge


areas founded on certain technical processes in tools & technique
forms for planned successful execution of all project activities as
defined below. Certain knowledge areas within the management
structures are as follows:
Part 4
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Project stages include


Initiation, Planning, Execution or implementation, Monitoring & updates,
completion or closing out followed by maintenance & operation.
Hyperlinks
Structure sequences of Project management
knowledge areas requirements:

1 Scope Charter – Decision making stage about any


project- Charter authorisation
(Front End Engineering Designs, Description of deliverables, contract
requirements, contract sufficiency, specifications, duration, Charter, risks
involved, stakeholders, shareholders, sponsor, financer, contractor, clients,
consumers, organization partners, subcontractors, possible investments,
possible returns, possible reputation enhancement, prestigious or ordinary
project, other projects in hands, capacity of organizations, expansion of
organization, may be project discarded currently, project manager & all
other depending on the type of considerable project), resources allocation,
charter authorisation etc.

2 Quality- Standards to be achieved on deliveries


(Total Quality Assurance or Management, quality requirements or quality
plans, quality procedures, performance quality, quality or value of financing,
quality of procedures, quality of competitiveness, quality returns on
investment, standards of quality, quality implementations, degree of
achievable quality on project, optimum quality for optimum profits, quality
possibility for all sections relevant to the project, value to be achieved after
project is delivered, quality meeting or exceeding customer or end user
expectations, value to be provided by the project deliverables to the client or
owner)

3 Time- Significant factor governing the project


stages
(Significantly, most valuable factor that may govern the acceptance of the
project is time, that may not be allowed in excess of agreed keeping in view
competition as well as additional cost that additional time may require, time
not allowed to vary, time allowed to squeeze for valid reasons, time schedule
acceptability, effect of time schedule by force majeure, effect on contracts

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by standard provisions such as FIDIC or non FIDIC agreements, effect on


long lead items. Effect on importable items, vice versa effect by such items
on the project schedule, time recoveries methods, critical activities stages),
crashing time schedule, fast tracking,

4 Cost- Effecting all parties involved on the project


(cost on the proposed project, maintainable cost for the project, maintainable
variations, provisional cost, equipment cost, construction cost, resources
cost, prime cost, cost in long run, annual expenditure, budget expenditure,
budget provisions, loss of cost or profits should project be shelved)

5 Risk Factors- effecting all above


Scope, quality, Time & Cost do effect the project by impact of certain risks.
All such risks should be anticipated in advance for reaching & applying
preventive actions or solutions. In case, preventive actionable solutions are
not available, 100 %, risk responsive methods or plans should be produced
after having understood details posed by the indicated or considered critical
risks. Certain risks may be considered as indicated below:

1 Risk impacts due to change in scope.


Additional or deletion exceeding agreed percentage levels certainly impacts
risks on project. When project charter has not been prepared based on
complete understanding of the project implications that are generally,
defined within body of project contract clauses & project specification
documents & when, deliverables have not been correctly listed. Project is
generally impacted when it belongs to Lump Sum contract category. It
adversely affects budget cost, contract time & performance quality.

2 Risk impacts due to changes in quality standards.


Quality on works if enhanced or produced substandard, impacts considerable
risks. Substandard quality results in reworks while, superb quality than
agreed, results in both, time loss as well as cost loss. Moreover, quality
requirements must have been explicitly understood at scope formation phase
& must be clearly documented within charter. Applicable codes, standards &
market practices must be correctly documented for consideration &
guidance. Procurement based on substandard quality shall not serve any
purpose whatsoever but, jeopardize the project performance after being
rejected & contribute to requirement of additional time or additional

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expenditure or cost & time overruns. Detailed quality management plan is a


requirement on every project.

3 Risk impacts due to changes in schedule time.


Lost time impacts project budget by cost of additional resources
mobilization in terms of human workforce as well as machines or
equipment. Recoveries to delayed schedules are sometimes impossible that
makes extensions of time certain under compelling circumstances. Delayed
decisions on engineering grounds, procurement grounds or non availability
of required skills, do result in delayed execution of relevant activities. In
case, schedule time is lost due to any reason, balance of works shall have to
be executed in the defined schedule time by either mobilization of additional
resources or by working overtimes & on holidays. Fast tracking may be
required to many sequential activities or schedule may be crashed. In case,
this recovery method is not feasible, schedule time shall overrun & add cost
to the project budget in the form of liquidated damages as well as further
extra expenses on budget provisions due to additional resources.

4 Risk impacts due to changes in cost.


Cost changes due to any reasons, would certainly add to the project budget
cost generally (addition of escalated costs). In remote cases, there could be
savings by a change request. Time change adds to cost. Material delay adds
to cost. Quality impact adds to cost. Scope addition in case against the rates,
adds to cost. Some cases import losses to total cost even by addition of many
works on to the original scope while in some cases, omission or deletion of
considerable scope items result in time or cost savings.

5 Risk impacts due to partly unknown scope


A major factor that can jeopardize certain portion of the project performance
in its entirety, when the demanded scope is not clear to the executor due to
any valid reason or explanation given by the client. It effects badly on
performance on the project & definitely, is not a desired acceptable
condition. Unclear scope definition or hidden provisions may lead to
disputes in many cases which would land both parties either to arbitration or
to court of law for adjudication of disputes.

Hyperlinks
Risk Response plan – Risk Management Plan

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1. Risk Response plan is only document that would assist in mitigating


adverse or undesired effects imposed on the project to come out of
risks impacts. Such plan should be based on thorough understanding
of the project activities & the resources required for completing them /
the project activities. All project documents should be clearly
understood to enlist possible risk & risk impacts. From scope to
closeout stage, all possible risks should be analysed & clearly
documented along with defining possible easiest & effective
solutions.

2. Of all such risks, imminent higher potential risks must be given full
attention that would possibly bring the project to standstill many times
during project life cycle. Such document should detail qualitative &
quantitative analysis of all considerations collected from various
sources both, involved on the project & also, from various external
independent experts / sources from relevant fields. Interviews,
questions formats, brainstorming, conferences, discussions, iterations
on responses etc. would assist in understanding possible risks
requiring responses from the risk planning & management. Risks
mitigation activities may certainly require making changes / updates
on various documents such as schedule, cost plan, resources
mobilization etc. & incorporating with such documents all updates.

3. How to deal with situations where the critical activities were effected
due to imposed risks of any kind must be detailed? Critical activities
are often adversely effected for maintaining quality standard while
non critical activities do have sufficient of required time due to
allowed floats. Critical activities do not have any float on both ends of
early start & at early finish dates. Required intensive performance
attention during monitoring must be given to all critical activities.

4. All such risk managing studies should be recorded in details along


with the mitigation or risks. Complete solutions adopted to contain the
risks should be documented in sequence of corrective factors
applications. What steps could avoid such risks at the charter or scope
agreement stage had a proper studies or analysis been conducted?
What should be done to avoid such further imposition of risks in
future on this project & also on the other ongoing or newer projects?
These details should be documented as Lessons learned as a part of

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quality procedures & would be constituted as closing out part of


dossiers.

6 Human Resources- effecting cost, time, manpower,


quality standards
1 Cost element scope
Entire project to an extent of 30 to 50 % of possible cost of the project is
consumed by the human resources depending on the type of projects. These
costs involve all human resources from all stake holders from whatever party
so involved. The parties may be external or internal or consumer or client.
Team members may be virtual or integrated on project centrally. This factor
requires in depth consideration to control expenditure on project cost.

2 Required plans
Efficient plan is required for how to utilize optimally humans on the
activities. It is too easy to waste this resource on any project. Cost on this
factor’s wastage cannot be recovered by any recoverable means. Expertise &
potential as an average shall effect the strength requirements on any project.
Dedicative commitment shall also effect the required team strength. Extra
use of work hours shall effect the strength as well. Extra use of working
hours effects expenses on overheads such as establishments, camping,
transports & other facilities.

3 Move in & move out


Mobilisation stage, useable duration, demobilization time schedule for
human resources are concrete requirements to manage some project
successfully. Come what may, it is foreseeable that personnel have to move
out of project one day after no requirement is left. Moved out personnel shall
be either transferred to other projects or to their parent functional managers.
Those who are not on record committed & efficient shall have to face
permanent demobilization while dedicated hard working personnel may be
motivated by promotions. Update trainings may be allowed for certain good
ones.

4 Motivation mobility
This feeling can generate a degree of inefficient performance on the person
concerned that should be monitored by the Project team leader or project

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manager. Next mobilization project should be entrusted to concerned but,


efficient person in advance so that working pace is not effected adversely.

7 Procurement- Deliveries of materials & equipment

1. Procurement if neglected, can jeopardize whole project to an


irrecoverable status from impending constraints. It has been seen on
many projects that it impacts a loss to project budget cost due to non
availability of a sustainable time schedule as well as absence of
competent staff.

2. Procurement of projects designs in design & build or EPC contracts


constitutes a very significant part of deliverables without which
nothing would move on site or in project office either. Some designs
are done by organisation’s home office while, some are outsourced by
the organizations. In both cases, design requires detailed engineering
requirement studies & applications of detailed engineering for
deliverables.

3. Highest degree of coordination would become a sole requirement


among various disciplines. It requires thorough process
implementation during execution, monitoring & controls. During
execution & by imposition of certain risk factors, design reviews &
updates shall regularly be conducted. Another point of attention
requires intensive surveillance is that designs & their reviews &
updates must be kept under line of the allocated budget.

4. Procurement is tried in many organizations by deploying low profile


staff with lower strength than as demanded for making timely
procurement of required materials. Generally, major long lead items
are delayed due to cost reason or due to change on once agreed vendor
for the sake of reduced rates from another vendor.

5. It has to be integrated properly with the project plan & must be


followed aggressively by the project manager. Full force is required to
be applied to the procurement personnel by the management team so
that the deliveries of the procurement items are made timely.

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6. Timely materials approval are required & should be effected by the


project management team or by the project management office
aligned with the procurement operation office. Delay on important
items can cause havoc to the project from all aspects of other
resources.

7. Delays on procurement can certainly require rearrangement of


activities schedule & also, would import wastage of manpower as well
as time should, these be not foreseen. Expediters or coordinators are
deployed at various significant stages of materials & equipment
procurement to keep the deliveries in defined point of time.

8. Necessity is that organization must have approved procedures to deal


with hundreds of vendors & various subcontractors. All vendors
require operating support from the contractors both contractually &
financially. Required Letter of Credits & other Local Purchase Orders
must be given due regards to expedite deliverables procurement.
Hyperlinks
8 Communication - Transparency, conferencing, electronic
medium, who should get it? Most significant part on project
manager’s role / responsibility. Communication foremost job
in management.

1. Considered on low profiles by major organizations but, it is an


exclusive significant factor that counts on the project progress.
Keeping project management team informed in addition to senior
management team is an utmost requirement.

2. Communication plan must be made / designed for implementation


from the beginning of the project about who would be responsible for
making communication to designated personnel both legally or
functionally or operatively, involved to receive the communications of
any sort.

3. Plan must show the limitations about who should get what documents
based on defined periods. Decision on how to classify, is a must about
the level of transmission of documents to top management, senior
management or to the project team. Plan must define what documents
should go to other stake holders.

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4. Meetings are in fact, an important medium that can help the involved
parties about the updates on the project or review of status. Such
meetings should be conducted under a circulated agenda to avoid any
aide tracking during meeting. Unnecessary arguments should be
avoided.

5. Agenda should be adhered to during whole hour of meeting. Any


participant trying to diversify agenda should be requested to discuss
later or after meeting. Status meeting should cover in general, all
points on the project to reflect a gross picture of the project for
appraisal by all stakeholders. Where actions are required, name or
designation of the personnel or stakeholder owning actions should be
indicated.

6. It should be remembered that minutes in itself is an informatory


record until accepted by all parties concerned. After accepted in the
next meeting, it becomes a project record. Possible actions must be
requested to be taken by the non attending stakeholders by further
correspondences or E mails as suitable. E mails are preferred keeping
in view fast transmission of information.

7. Meeting should not be too long to avoid personnel interests. Who


shall attend meetings, should be defined on the project plan. All
important progress meetings require minute records for circulations
among stake holders & participating personnel.

8. Other non status review meetings can be recorded in files only for
review. Detailed technical meetings & other coordination meetings
may not go to all stake holders or others but, only to team members
dealing with details. Important brief meeting should also be recorded
as brief points of discussion for necessary actions after required
circulation is made to those presents & copied to management.

9. All minutes are to be re discussed in the following meetings so that no


issues may be left from decision making or from implementations.
Even, an agreement could be minutes about the acceptance of
previous minutes so that minutes become a part of undisputed records.

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10. On projects, habit of forgetting decisions or follow up is too normal


keeping in view the intense business on activities. Meetings with the
project team as well as with the senior management, help in resolving
issues of all problems. Project issues can be tried to be resolved to
certain extents during the meetings that extend opportunities to all
responsible personnel face to face to discuss & reach certain solution.

11. These discussions shall allow certain sacrifices of egos from


conferring personnel to reach certain solutions under constraint of
cost, quality & time. It should be noted that open meeting is a source
to allow all team members speak & raise viewpoints technically or
otherwise to push project progress. Team members definitely got
difference of opinion while, open discussion in presence of all
responsible for projects allow presentation of views for a possible
optimum solution.

12. Communication must be defined in clear blues for all knowledge areas
so that effective integration with the execution plan is done
conveniently. All definitions must be made understandable by all
experts & non experts personnel. All team members, staff, site
personnel & others must be informed about their part of decisions or
agreed discussions during the meeting so that they act upon their parts
respectively after being instructed by the owner of actions.
Part 5
Project Stages or Processes Include
Initiation, Planning, Execution or implementation, Monitoring & updates,
completion or closing & administrative controls followed by maintenance.

Hyperlinks
Initiation – Project’s Initial Charter Constituents
Necessity of Project + Policy compliance of Economy or Organisation +
Service that this Project shall serve to Economy or Organisation + Listing
deliverables + Listing important Milestones + Listing stake holders +
Proposed Budget Allocation + Availability of basic infrastructure to allow
Project or Acquisitions requirements + Defining scope by descriptive
statement + Understanding scope by thorough analysis founded on technical
or FEED details provided corroborated by various technological
philosophies + Understanding deliverable probabilities with normal good

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business risks + Understanding risks & requirement of risk management


plan + Assessment of goals + Expected growth of business + Charter
formation + Charter authorisation + Duration of Project + Existence of
Project + Project Manager + Definition & allotment / allocation of
Resources + Formal Announcement + Possible required organization type
with champion designation definition & black belts requirements

Foregoing processes shall be updated as & when, required during the


currency or life cycle of Project.
Hyperlinks
Planning – Development of project plan, Major
Processes Constituents Within Planning, Knowledge
Areas integration with development plan
Planning duration + Scope review & verification + Schedule of missing
information + Contract review + Deliveries listing + Deliveries milestones +
Listing of subprojects + Project milestones + Impact of liquidated damages
+ Long lead items + Major items on project + Decision about sequences +
Decisions about overlapping activities + Work Breakdown Structures +
Work Packages + Detailed activities + Activities quantifications + Time
allocation to activities based on resources or resources driven time allocation
+ Allocation of dates + Allocation of direct resources + Application of
indirect resources + Resource leveling + Formation of histograms & S
curves + Application of material or activities based unit rate cost + Number
of man hours + Number of equipment hours + Permissible variation in hours
+ Probability of fast tracking impacts that may be successfully applied +
Calculation of subprojects costs + Calculation of project cost + Budget
Estimates + Planned Progress histogramme or curve + Planned inflow of
incoming payment certificates + Cash Expenditure based on Planned
Progress + Profit or Losses forecasting + Procurement Plan or Schedule +
Material Approval Schedule + Drawings Approval Schedule + Staff
mobilization & demobilization schedule + Type of Project Organisation
recommendation + Critical Execution Problems + Competency of personnel
suggestions + Formation of optimized Organisation Chart + Integration of
various subprojects or projects to formulate or produce programme +
Conferencing Proposal among management + Approval & authorization
from management + Making Submission to client + Project Cost or Finance
Planning + Project Organisation Planning + Project Quality Planning +
Project Safety Planning + Project Systems Planning + Project
Communication Planning + Project Risk management planning + Project

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Closing planning + Dealing with works suspension planning + Planning


demobilization + + Defects remedial planning + Project maintenance
planning
Part 6
Project Stages or Processes Include (continued)
Initiation, Planning, Execution or implementation, Monitoring & updates,
completion or closing & administrative controls followed by maintenance.

Initiation & Planning are effected by both parties Client or owner & Bidder
or Contractor. As defined in foregoing, in addition to those constituents of
various processes, both undertake certain processes.
Hyperlinks
Client or Owner: Meeting dead lines to release bid
documents
Feasibility studies + Budget provision + FEED documents + bid contractual
documents giving general & special conditions + definition of risk such as
liquidated damages + definition of technological licenses + definition of
transfer of titles for all procurements + design criteria or philosophies +
safety requirement documents + quality requirements documents + bid
engineering documents + bid specification documents + bid bill of quantities
+ Invitation to bid + bid processes + bid coordination & clarifications + bid
acknowledgements + post bid negotiations + bid rejection or award + if
awarded + appointment of contractor + appointment & formal notification of
engineer & resident engineer + authorisation of engineer powers +
delegation of resident engineer powers + constitution of project supervising
team + and if bid rejected + invitation of bid again that could amend
provisions within bid documents.
Hyperlinks
Bidder or Tenderer: Meeting dead lines to submit bid
Charter formation process + response to bid documents + bid may or may
not be suitable + in case unsuitable, deny bid & return documents to client, if
so required + in case suitable, respond to client for submitting bid + bid
coordinator announcement + proposal coordinator announcement + bid team
members + announcement in organization + mail circulation to all members
+ specific bid folder in intranet sharing server + bid time schedule plan +
attendance of pre bid meeting with client + Raising doubts on bid & its
provisions + Clarification on total scope + Design issues probabilities +
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Talks of alternative bid in addition to original demanded + Site visit with


client & engineer if, already appointed + Reporting visit & meeting details
to sponsor or owner of organization & board etc + various meetings for bid
involving estimation manager & complete bid team + invitation to quotes
from relevant vendors as listed + invitation to design vendors if EPC +
Formulating bid in software used + Computation of quantities accurately +
Rates formations + Comparison of quotes + Coordination & negotiations
with possible or prospective vendors + Coordination with possible
subcontractors + Producing Technical Bid + Execution statement + Safety,
Health & Environment plans + Quality Plans + Manpower histograms +
Equipment histograms + Possible vendors list with options + Possible
suppliers list with options + Possible designers list with options + Design
statements + Design hours + Specialist services documents + Time schedule
+ Camping & lodging + Site establishments + Warehousing + Lay down
areas + Site Controls + Site management + Project manager + Project
Leader + Possible team + Key personnel CVs + Organisation administrative
documents + Capacity of bidder + Previous projects records + Value
engineering on project in case, bid is awarded + Statements of lessons learnt
from records + Producing Commercial bid + Directs costs + Indirect Costs
+ Mark ups + Additional value to client if awarded + Balancing bid amount
+ Conferencing on parallel bidders or rivals + Generating their weak points
in this bid + Innovative technologies to be utilized for alternative bid
submission + Bid review by sponsors + Final documents submission
electronically + Bid submission in hard copies & soft copies as required.
Part 7
Project Stages or Processes Include
Initiation, Planning, Execution or implementation, Monitoring & updates,
completion or closing & administrative controls followed by maintenance.
Execution or implementation, are also, effected by both parts, Client or
owner & Contractor. Both undertake certain processes directly or indirectly
to meet the scope of contract requirements.
Hyperlinks
Execution or implementation processes:
Client or Owner: Meeting dead lines to release contract
documents through Engineer, duly executed legally &
contract documentation.

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Award of contract declaration by appointment + issuing letter of intent +


definition of contract dates + definition & extent of liquidated damages +
adjustment of prices in agreement with contractor + contract amount or price
+ announcement of engineer designated as contractual + definition of
powers & authorities of engineer + announcement of all specialist engineers
+ in case engineer is from client engineering department, announcement of
consulting engineers + date of kick off meeting + dates by which all contract
documents to be issued + appointment of date of site handover to contractor
+ dates by which remaining scope drawings to be issued in case of
construction contract + final time schedule requirements for initial
presentation + priorities lists of certain project areas + dates by which other
project plans are required + dates by which design documents are required +
requirements of mobilization plans + requirement of execution method
statement + requirement of engineer’s office location in contractor’s
premises to surveillance & monitor contractor’s design team + requirement
of performance bond from contractor + requirement of third party insurance
+ requirements of documents for release of any contractual permitted
advance sum against bank surety +

Execution or implementation processes:

Contractor: Meeting dead lines to submit various


deliverables as parts of contract performance
Receipt of contract award + inspection & review of all contract documents +
kick off meeting + announcement of project reference + authorising project
budget + authorizing Project Manager + constitution of project team + cost
control codes circulation + project development plan drafting + meeting with
engineer / consultants to discussing strategy planning + site visits + site take
over + appointment of contractual start date + proposals for various vendors
+ subcontractors + submission of proposed key personnel to engineer /
consultants for approval + mobilization plan submission + site survey + site
soil investigation for validation of soil investigating reports + provision of
all site offices + provision of all facilities + site fencing + site watch & ward
+ site fire prevention + labour shelters + labour camping + transportation +
food + medical provisions + safety provisions + submission of safety plan +
submission of quality plan + submission of project management plan +
various submission methods or procedures with engineer / consultants +
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Hyperlinks
Communication channels or processes: Involvement by
all relevant Parties

Following processes shall be effected regularly during execution at


defined activities interval for initiation as well as for update & for
revalidation.

Records of all live services drawings from statutory or local bodies +


review & diversion procedures of all such services + Dissemination of
project scope to all relevant personnel & vendors + Correspondences (site
memos, site instructions, engineers instructions) + E mails + Phonic
discussion confirmations + CV approvals + General Meetings Minutes+
Contractual Meetings Minutes + Specialist meetings Minutes + Coordination
meetings Minutes + Foremen meeting + Technician meetings + Video
Conferencing + Video records + Computer records + Work photos + Vendor
submissions & approvals + Planning schedule submissions & approvals
regularly + Organisation chart + Job or role description of various personnel
+ budgetary cost + Engineering design deliverable submissions, review &
approval + Material Submissions & approvals + Drawings submissions &
approvals + General Formal reviews & approvals + Inspection approvals +
All documents & drawings approvals registers + Technical queries +
Engineering queries + Document Centre Controls + Working & shop
drawing issues + All site issues + daily records of works + Concrete records
+ Cube records + Formwork records + Rebar records + Structural steel
records + All stores records + Laboratory & material testing management +
Engineering training records as Method statements + Staff personality
development & team building & up gradation + Progress management &
monthly payment certificates or valuations + All quality management
records & filing system + Quality training records + All HSE training &
execution records + all accident or injury records + safety Drill records +
Tool box talks + START card + Prevention from Hazards + Keeping site
tidy + Safety incentive awards + safety walks + Best engineers & foremen
awards + Best workmen awards + All changes on the works + All red line
mark ups + all as built records + all dossiers + all data sheets + all sealed
documents + all involved certificates + All non compliance records + all
remedial action records + Punch list inspection & records + site walkthrough
records + snags records & their implementations + defects records + rework

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requirement records + rework inspections + removal of major defects +


Lessons Learnt from mistakes + quality audits reports from external source
& from internal source +
Part 8
Project Stages or Processes Include
Initiation, Planning, Execution or implementation, Monitoring & updates,
completion or closing & administrative controls followed by maintenance.
Hyperlinks
Monitoring & updates - continuous processes during
project life cycle
Works supervision & monitoring are carried out by all parties concerned.
These processes are done as a part of quality assurance or controls, schedule
controls, progress or status controls, cost controls, applications of various
updates, understanding various non compliances & non conformances,
understanding risk factors & their implication, mitigation of risk factors etc.
This stage is dominant for pinpointing flaws occurring to project
performance as obstacles. Obstacles are required to be eliminated or adjusted
for measuring planned value of performance or ascertaining measurement as
desired.

Deliverables
1. All deliverables or work done are inspected by the Contractor’s
project discipline site engineer & project or discipline quality engineer
in all respects to meet requirements. These deliverables would
constitute almost all documents as well that scope required. These
documents require inspections, examination by competent key
personnel for submission authorisation. All approved works have to
be documented in various approved formats.

2. All or part of deliverables in line with agreed test check percentages


are inspected by consultants & engineer over contractor’s quality
engineer. These deliverables would constitute almost all documents as
well that scope required. These documents require inspections,
examination by competent engineer’s key personnel for approval,
authorization for permanent reference documentation. All approved
works have to be approved & documented in various approved
formats & transmitted to executor or contractor for permanent record.

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3. All variances are noted, documented & their adjustments or applied


corrective works are documented for records. Schedules are regularly
revised as updates. Time base lines are either maintained or revised
accordingly. Cost baseline also is maintained or revised as the case
would require.

Approvals
All site approvals are based on such inspections by various specialist as well
as discipline engineers for consultants over inspections done by contractors’
engineers. These approvals could be for civil works or for allied services.
All tests require approvals. All factory as well as site tests require approvals.
Services installations require testing at various fixes often first fix, second
fix & final fixing followed testing at commissioning.

Work Progress
Works progress is measured by the planning engineers to compare with time
schedule. Formula to measure progress has to be agreed between the
engineer & contractor during post contracting planning stage. Progress can
be activity based or cost based. Actual project status can be defined
exclusively be cost reflection of the earned project. Activity based projection
shall reflect directive status. But, activity based status of progress is helpful
to physically control the progress to keep in line to time schedule.

Work Changes
All changes are issued by the engineer or consultant in conjunction with the
client & based on contractor’s opinion. Work changes are expected to be
within limits of acceptances. Changes may be required to meet the product
requirement or to suit the function the project would provide. Basic project
cannot be changed. Certain requirements may be allowed. During scope
formation charter, all requirements should have been listed in all respects.
Only oversights or some functional changes may be added as changes.
Keeping continuation of incorporation of changes may not allow project to
finish that in the interest of neither party.

1. Changes can effect the cost as deletion or addition. Changes can also
effect prospects of procurable materials as well as those already
procured. Already procured can be rendered out of use.

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2. Scope change can generate risks for change on time schedule as well.
Changes cannot be made on long lead items or if necessary to be
made, could be made in the early stages of the project life cycle.

3. Costs, time & quality can be severely effected by certain changes that
need attention by the engineer or the client. Better to avoid changes to
finish the project in time. Changes are not welcome by contractor as
well as by engineer or client. Investment made on project needs return
by opening to use after commissioning only. Time to close out project
is one of extremely significant factor.

Payment Certificates
1. Work payment certificates details are proposed by contractor’s
quantity surveyors in conjunction with project engineer or project
manager. All works done & all changes approved & carried out are
required to be projected on payment certificate document.

2. Work payment certificates are reviewed by consultant’s or engineer’s


quantity surveyors in conjunction with consultant’s project engineer
or project manager. Payment certificates are sent to Engineer or client
for approval so that PC is handed to the contractor.

3. In case any liquidated damages approved to be recovered should be


included on relevant portions of certificate to allow deduction from
PC sum. No liquidated damages can be recovered in case, an
extension has been granted to the contractor.

Revised Time Schedule


1. Project Manager in conjunction with planning engineer has to propose
revised plan as updates to engineer for approval during various stages
of the project life cycle. Time schedule should be as explanatory as
practically convenient & manageable. It should be devised in such a
way that all stakeholders & personnel involved must be able to
understand without elaborate explanations.

2. All Work Breakdown Structures definitions, work packages, required


resources etc should be indicated clearly leading to cost of the
package. It is suggested that up to level 5 time schedule would work
better on complex projects.

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3. Engineer has to approve all time schedules as updates at all stages of


project life cycle. From time to time schedules up to level 5 may be
revised & approved for ease of time & cost controls during project life
cycle.

Communication to Stakeholders
1. All comprehensive records from foregoing processes are sent to head
office by the project manager to apprise the stake holders of the
project real progress status giving steps being taken for further
improvements or updates.

2. Some of documents required to be furnished regularly should be


defined in the project plan or within company quality manual. These
could be scope updates, Minutes of Meetings, Progress reports,
Payment certificates approved, Organisation requirements & updates,
Finances to be arranged, Vendors payment issues, Cash flow issues,
Support from other projects, Workforce requirements, fast tracking of
project progress in certain areas due to various constraints etc.

3. Requirement of financial provisions needed according to updated cash


flow is also reflected. Additional resources are requested to meet the
target dates or in case of redundant resources, withdrawal from site is
requested. All other important aspects about the project success as
well as problems being encountered.

Engineer’s Communication to Client


All comprehensive records from foregoing processes are sent to owner’s
head office by the Engineer / Resident engineer or consultants to apprise the
client or owner of the project real progress status giving steps being taken
for further improvements or updates.

1. Any steps required to reinstate the project lost status are


recommended within the report. This flow of information should be
regular based on significantly selected items of documents to be
communicated.

2. Significant documents or project records could be Minutes of


Meetings, progress reports, material deliveries, expected deliveries,

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delivery problems, workforce strength, time schedule updates, status


of project performance updates, recovery plans requirements, payment
status, cash flow status, engineering & technical progress feedback,
level of quality performance, safety management status, projected
budget, spent budget, escalation possibilities, changes
recommendations on scope, lessons to be learnt by owner, lessons to
be learnt by engineer, lessons to be learnt by contractor
Part 9
Hyperlinks
Lessons Learnt from mistakes & incorrect decisions
Certainly, mistakes are prone to occur when various different background
personnel work as team members supervising workforce from various
cultures or backgrounds. These lessons learnt records must be published
from time to time during the currency or the stage of project life. Circulation
of publication must be sent to all stake holders & the team members.
Records must include cause of mistakes during performance, corrective
steps required, up dates made to all relevant knowledge areas, project time
lost, resources loss, relevant personnel responsibilities & how can such
mistakes should be avoided from revisiting current, others & future projects.

1. Certain mistakes are caused due to human errors while, others are
caused due to incorrect instructions or non availability of right
information for disseminations. Incorrect shop or working drawings
are approved & executed that do not match requirement of fit outs.
Proper curing is not done on concrete when concrete fails during
testing.

2. Certain mistakes are caused due to lack of coordination on site & also,
in design offices among various discipline. Experiences support an
argument that discipline engineers do care about their own disciplines
but, apply lower degree of care for interfaces resolutions for other
disciplines. Such working situations lead to incompatible drawings
resulting in incorrect interfaces on execution front.

3. Sometimes miscommunication may cause mistakes. Say Approved for


construction drawing is not handed over to the site engineer concerned
while, work carried out on superseded drawing.

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4. Sometimes mistakes are caused due to non availability of clear


detailed designs while urgency necessitates to carryout works in line
to similar details available from other areas of the project. Non serious
site engineer & foreman can make such nonsense on projects.

5. Sometimes, negligence on work performance can cause mistakes as


well. Specification is not studied properly & trade known practice is
applied by foremen without consulting project site engineer. Quantity
of concrete not calculated properly & order placed for RMC without
verification. Delivery of additional trucks made on site that can cause
loss to material cost.

6. Sometimes incorrect understanding of reports on project scope may


cause havoc on project execution. Scope may not explicitly define
certain parts of the project but, due to urgency of requirement on plan,
works are carried out.

7. Sometimes, after the works are done or are being done, drawings are
changed due to constraints on required specification of certain
equipment. This usually happens on plants projects where the designs
of equipment may not be known till the time when the foundation is
finalized. Redesign of the foundation would be required to keep in
line with machine parameters.

8. Due to whatever reason, this state leads to mistaken execution for


which rework is required or change is made, requires recording
lessons learnt. These changes may impact cost, quality as well as time
in entirety on certain cases.

9. These lessons are meant for all team members, supervising foremen as
well as consultants & engineers. These mistakes must be recorded
with due value & additional application of values to avoid such
mistakes in future projects.
Part 10
Project Stages or Processes Include (continued)
Initiation, Planning, Execution or implementation, Monitoring & updates,
completion or closing & administrative controls followed by maintenance.
Hyperlinks

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Completion or closing & administrative controls


Completion or closing & administrative controls are carried out by all
parties concerned.

Mechanical or practical completion or closing


Contractor is required to complete & handover the deliverables to the client
through the engineer or consultants.

1. All defined constituents of the scope should be completed


mechanically in all respects before handing over is effected.

2. All items must be carried out satisfactorily in compliance to drawings,


designs & specifications. Verification must be done for ensuring
completion of all required items.

3. All procedural & contractual documentations must be carried out


satisfactorily & in indicated duration duly approved by the engineer.
All snags should be cleared satisfactorily & approved by engineer.

4. All Non compliance reports should be closed. All works approval


records should be sequenced & systemized on soft & hard files duly
tagged. All as built documents must be completed duly approved by
engineer.

5. Take over certificate-Client is required to take over the deliverables


from the contractor through engineer or consultants. Engineer or
consultants must make sure that all submissions made by contractor in
this regards & as explained in mechanical completion are verified &
approval of all such documents issued. Documentation at closing out
is voluminous task & therefore, must be supervised properly as it
involves all disciplines effected on the project.

6. Dossiers- all documents relevant to the project execution &


supervision history & required to support the operations of the project
when in service, are entitled dossiers though, this term should be used
in criminal cases but, it is used anyway.

7. Transfer of titles- all equipment & materials procured on the contract


are done in the name of the contractor which means contractor is the
legal owner of all such procurements. The contractor is paid by the
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owner for all such procurements. This requires transfer of titles of all
such items from the name of contractor to the name of owner or client
through technical legal approval by the engineer or consultants. All
documents of such items are done on designed formats & made a part
of the dossiers.

8. Transfer of technology use or license to use technology- on


processing plants particularly, operation of chemical processes trains
shall serve production on future for a defined number of years as per
contract conditions. Since, such process designs constitute copy right
by the technology provider through project designer, a license to use
technology exclusively for the build & delivered project shall be
issued to the owner or operator / client as a part of dossier as well as a
contract condition.

Administrative controls
In addition to executing works & managing technical controls on any
project, contract administration is also conducted by engineer or consultants
as well as by the contractor in parallel to the execution & in fact, it works as
a part on all stages on the contract or project life cycle.

1. All project contracts are based in documentary forms duly executed


after being constituted with hundreds of contract conditions both
general as well as in form of special applicable clauses. These may or
may not relate to various forms of FIDIC but, even then, are relevant
& legally applicable.

2. All conditions or clauses must be operated accordingly during project


life cycle at the right point of time by both contractor as well as by
engineer because, missing such operations could mar the completion
scope of the project & effect the release of payment certificates.

3. Similar operational requirements would be expected from all ‘on


record vendors’ & ‘subcontractors’ involved on project.
Responsibilities of execution by the subcontractors & vendors shall
ultimately be shared fully by the contractor in light of contractual
construction or interpretation.

4. All contracts do include on their specifications as well as, indicative


Bill of quantities documents, certain bills indicating heading as
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Preambles. Preambles contain references to various activities that


shall support the scope components execution for project. Particular
descriptions indicate the overhead activities & various types of
sundries expenditures.

Preambles Guidance to Contractor


These may include for example, provisions of site establishment for
contractor, site offices for engineers, all facilities for establishment &
camping of personnel & staff, testing of materials expenditures, staffing
expenditures, security, watch & ward expenditures, safety, heath &
environment expenditures, third party insurance liability expenditures, works
insurance expenditures, expenditures meant for mobilization &
demobilizations, expenditures meant for prevention of works, expenditures
meant for all activities relevant to implication of existing laws, expenditure
applicable for unforeseen circumstances etc.

All these indirect establishment part of required activities or operations have


to be carried out on project that would costs to the contractor, which
expenses, engineer has to certify within payment certificate. All such scope
items’ execution must be documented fully for purposes of initiation,
planning, execution & monitoring & closing out properly. These items shall
be evaluated for being done throughout the life of the execution process
keeping in view their nature. Though these costs amount only to a few
percentages of the total cost but without implementation of all these, project
cannot be executed.

What area of knowledge has been refreshed?


1. Projects requirements
2. Projects initiations / Project Charter
3. Planning for all stages during life cycle
4. Execution & monitoring controls / Performance measurements
5. Project closing out & lessons learnt.

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