Program

Management
Syed Shoaib Ahm ed

INTRODUCTION
Program Manager/Management is :

Least consistently used term

Favored particularly in the public sector
Typically involved in most of the five phases of construction
process

DEFINING PROGRAM
MANAGEMENT
Five phases of every project:
1.
2.
3.
4.
5.

Real estate
Financing
Design
Construction
Occupancy

DEFINING PROGRAM
MANAGEMENT
Five phases of every project:
1.
2.
3.
4.
5.

Real estate
Financing
Design
Construction
Occupancy

DEFINING PROGRAM
MANAGEMENT
Five phases of every project:
1.
2.
3.
4.
5.

Real estate
Financing
Design
Construction
Occupancy

DEFINING PROGRAM
MANAGEMENT
Five phases of every project:
1.
2.
3.
4.
5.

Real estate
Financing
Design
Construction
Occupancy

DEFINING PROGRAM MANAGEMENT

Five phases of every project:

1.
2.
3.
4.
5.

Real estate
Financing
Design
Construction
Occupancy

Is it a delivery method or management method?

DEFINING PROGRAM
MANAGEMENT
Management Method
construction is administered and supervised
Involves in some or all phases of construction
CM-agency, Program Management

Delivery Method
Risk and responsibility for delivery of design and construction
Does not typically deal with other three phases

DEFINING PROGRAM
MANAGEMENT
Management Method
construction is administered and supervised
Involves in some or all phases of construction
CM-agency, Program Management

Delivery Method
Risk and responsibility for delivery of design and construction
Does not typically deal with other three phases
CM-at-Risk, Design-Build, Design-Bid-Build

DEFINING PROGRAM
MANAGEMENT
Management Method
construction is administered and supervised
Involves in some or all phases of construction
CM-agency, Program Management

Delivery Method
Risk and responsibility for delivery of design and construction
Does not typically deal with other three phases

DEFINING PROGRAM
MANAGEMENT
WHEN ARE PROGRAM MANAGERS USED?

Owner lacks resources

Leadership during the overall construction process
To contain program costs
Owners traditional management method

DEFINING PROGRAM
MANAGEMENT
Any management method may be used with any delivery
method
Allocating responsibilities for all five phases with minimum
effort duplication
Selecting a management method before choosing a delivery
method

DEFINING PROGRAM
MANAGEMENT
Leadership vs. Administration
Using program manager as an extension to the owners staff
contemplates an administrative relation
Does not give authority to the program manager to bind the owner
If program manager is outsourced for program leadership, then agency
relationship between owner and program manager
Includes delegation of authority to bind the owner
Nature of relationship should be made promptly and clearly defined in
the contract

DEFINING PROGRAM
MANAGEMENT
Leadership vs. Administration
Using program manager as an extension to the owners staff
contemplates an administrative relation
Does not give authority to the program manager to bind the owner
If program manager is outsourced for program leadership, then agency
relationship between owner and program manager
Includes delegation of authority to bind the owner
Nature of relationship should be made promptly and clearly defined in
the contract

DEFINING PROGRAM
MANAGEMENT
Leadership vs. Administration
Using program manager as an extension to the owners staff
contemplates an administrative relation
Does not give authority to the program manager to bind the owner
If program manager is outsourced for program leadership, then agency
relationship between owner and program manager
Includes delegation of authority to bind the owner
Nature of relationship should be made promptly and clearly defined in
the contract

CLARIFYING THE TERM PM

Similarities :

Program Manager and Project Manager both abbreviated as PM

Oversee pre-construction and construction services
Owner representatives
Design Phase feasibility studies, logistical planning, estimating,
scheduling
Construction phase labor, material, project control systems,
insurance, safety , quality control
Administration processing requisitions, change orders, claims
management

CLARIFYING THE TERM PM

Distinguishing characteristics of a Program Manager
Oversee construction of multiple structures on the same site or handle
coordinated building efforts at multiple locations or under multiple
contracts
A single entity responsible for all five phases
Managing one or more phases beyond design and construction
Single point of contact in the construction processes

CLARIFYING THE TERM PM

Distinguishing characteristics of a Project Manager
Oversees a single phase project or the construction phase of a multibuilding project
When responsibility moves beyond construction on a single project,
the manger becomes a Program Manager
Limited responsibility for overall financial success of the project
Less likely to be involved in identifying building locations, financing,
sales, O&M

DEVELOPER AS A PROGRAM
MANAGER
Developer : develops real property and maintains and
ownership interest
Fee Developer/development manager : develops a real
property and has no equity or ownership
Fee Developer at-risk : develops real property, has no equity
and ownership, but is financially responsible to A/E, GC and
other trade contractors

DEVELOPER AS A PROGRAM
MANAGER
If the developer expands its responsibility from real estate,
financing, and occupancy phases to design and construction,
then developer becomes its own program manager
Fee developer/development manager is required to assume
the responsibilities related to work performed during design
and construction phase
Fee developer at-risk already has construction and design
contracts and is experienced in these phases

FUTURE TRENDS
Should expand in the next several years
Eases the burden of public sector to carry out major public
works
Private sector entities choosing program management firms
that understand their requirements and gain efficiency with
familiarity

Questions???