St.

Augustine University of Tanzania

CE 420 Management of Construction Projects

Lecture 1

Management of Construction Projects.

Lecturer: M. Kaswa

Management of Construction Projects.

Definitions of Management 1. According to George R. Terry, "Management is a distinct process consisting of planning, organising, actuating and controlling, performed to determine and accomplish stated objectives by the use of human beings and other resources". 2. According to Henry Fayol, "To manage is to forecast and to plan, to organise, to command, to coordinate and to control". 3. According to Peter Drucker, "Management is a multi-purpose organ that manages business and manages managers and manages workers and work". 4. According to Harold Koontz, "Management is the art of getting things done through and with people in formally organized groups. 5. According to Mary Parker Fallett, "Management is the art of getting things done through people".

Features of Management The nature, main characteristics or features of management are : Continuous and never ending process

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Management is a Process. It includes four main functions, viz., Planning, Organising, Directing and Controlling. The manager has to Plan and organise all the activities. He/ She had to give proper Directions to his subordinates. He also has to Control all the activities. The manager has to perform these functions continuously. Therefore, management is a continuous and never ending process. Getting things done through people

The managers do not do the work themselves. They get the work done through the workers. The workers should not be treated like slaves. They should not be tricked, threatened or forced to do the work. A favourable work environment should be created and maintained. Result oriented science and art

Management is result oriented because it gives a lot of importance to "Results". Examples of Results like, increase in market share increase in profits, etc. Management always wants to get the best results at all times. 4. Multidisciplinary in nature Management has to get the work done through people. It has to manage people. This is a very difficult job because different people have different emotions, feelings, aspirations, etc. CE 420 Page 3

Similarly, the same person may have different emotions at different times. So, management is a very complex job. Therefore, management uses knowledge from many different subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature. A group and not an individual activity

Management is not an individual activity. It is a group activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers). Nowadays, importance is given to the team (group) and not to individuals. Follows established principles or rules

Management follows established principles, such as division of work, discipline, unity of command, etc. These principles help to prevent and solve the problems in the organisation.

Aided but not replaced by computers

Now a days, all managers use computers. Computers help the managers to take accurate decisions. However, computers can CE 420 Page 4

only help management. Computers cannot replace management. This is because management takes the final responsibility. Thus Management is aided (helped) but not replaced by computers. 8. Situational in nature Management makes plans, policies and decisions according to the situation. It changes its style according to the situation. It uses different plans, policies, decisions and styles for different situations. The manager first studies the full present situation. Then he draws conclusions about the situation. Then he makes plans, decisions, etc., which are best for the present situation. This is called Situational Management. Need not be an ownership

In small organisations, management and ownership are one and the same. However, in large organisations, management is separate from ownership. The managers are highly qualified professionals who are hired from outside. The owners are the shareholders of the company. Both an art and science

Management is result-oriented. Therefore, it is an Art. Management conducts continuous research. Thus, it is also a Science. CE 420 Page 5

Management is all pervasive

Management is necessary for running a business. It is also essential for running business, educational, charitable and religious institutions. Management is a must for all activities, and therefore, it is all pervasive. Management is intangible

Management is intangible, i.e. it cannot be seen and touched, but it can be felt and realised by its results. The success or failure of management can be judged only by its results. If there is good discipline, good productivity, good profits, etc., then the management is successful and vice-versa. Use a professional approach in work

Managers use a professional approach for getting the work done from their subordinates. They delegate (i.e. give) authority to their subordinates. They ask their subordinates to give suggestions for improving their work. They also encourage subordinates to take the initiative. Initiative means to do the right thing at the right time without being guided or helped by the superior. Management is dynamic in nature

Management is dynamic in nature. That is, management is creative and innovative. An organisation will survive and succeed CE 420 Page 6

only if it is dynamic. It must continuously bring in new and creative ideas, new products, new product features, new ads, new marketing techniques, etc Need of Management 1. Direction, coordination and control of group efforts: In business, many persons work together. They need proper direction and guidance for raising their efficiency. In the absence of guidance, people will work as per their desire and the, orderly working of enterprise will not be possible. Management is needed for planning business activities, for guiding employees in the right direction and finally for coordinating their efforts for achieving best/most favorable results. 2. Orderly achievement of business objectives: Efficient management is needed in order to achieve the objectives of business activity in an orderly and quick manner. 3. Performance of basic managerial functions: Planning, Organising, Co-ordinating and Controlling are the basic functions of management. Management is needed as these functions are performed through the management process. 4. Effective communication at all levels: Management is needed for effective communication within and outside the Organisation.

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5. Motivation of employees: Management is needed for motivating employees and also for coordinating their efforts so as to achieve business objectives quickly. 6. Success and stability of business enterprise: Efficient management is needed for success, stability and prosperity of a business enterprise. Modem business is highly competitive and needs efficient and capable management for survival and growth. Management is needed as it occupies a unique position in the smooth functioning of a business unit. This suggests the need of efficient management of business enterprises. Profitable/successful business may not he possible without efficient management. In this sense, "No management, no business" is true. Survival of a business unit in the present competitive world is possible only through efficient and competent management. The six Ms of Management 1. Men and Women- The human resources that are required to perform duties. 2. Material - The raw materials and services required 3. Machine - The technology required to produce goods or generate services.

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4. Money - Includes the finances required to operate a business; includes investments, assets, working capital etc 5. Method - Procedures and instructions that guide actions 6. Moral Values - Ideals used to conduct business fairly; take into consideration the well-being of the stakeholders balanced with the drive to generate profits. Construction Project Management Definition of the Project A project is a one-shot, time-limited, goal-directed, major undertaking, requiring the commitment of varied skills and resources. It also describes a project as: a combination of human and non-human resources pooled together in a temporary organization to achieve a fixed set of objectives. PMI defines a project as . . . a temporary endeavour undertaken to produce a unique product, service, or result. A project is a problem scheduled for solution.J. M. Juran Project management is . . . application of knowledge, skills, tools and techniques to project activities to achieve project requirements. Project management is accomplished through the application and integration of the project management processes

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of initiating, planning, executing, monitoring and controlling, and closing. Project Management Coordinated activities to direct and control a project

organization to realize a set of defined deliverables up to quality standards and requirements. Project Manager The professional specialist who plans and controls a project. He/ she is the person who acts in a transparent manner for the sake of the whole project to satisfy the expectations of the

customers, the partners delivering goods and services for the project and the other interested parties. A project manager is the person accountable for accomplishing the stated project objectives. Key project management

responsibilities include creating clear and attainable project objectives, building the project requirements, and managing the triple constraint for projects, which is cost, time, and scope. A project manager is often a client representative and has to determine and implement the exact needs of the client, based on knowledge of the firm they are representing. The ability to adapt to the various internal procedures of the contracting party, and to form close links with the nominated representatives, is CE 420 Page 10

essential in ensuring that the key issues of cost, time, quality and above all, client satisfaction, can be realized. Project managers must understand the mission and vision of the organization first, then they must see how the project they are managing meshes with the organizations mission, and they must steer the project to ensure that the interests of the organization are met. Characteristics of projects

Projects have a purpose: Projects have clearly-defined aims and set out to produce clearly-defined results. Their purpose is to solve a "problem, and this involves analysing needs beforehand. Suggesting one or more solutions, a project aims at lasting social change.

Projects are realistic: Their aims must be achievable, and this means taking account both of requirements and of the financial and human resources available.

Projects are limited in time and space: They have a beginning and an end and are implemented in (a) specific place(s) and context.

Projects are complex: Projects call on various planning and implementation skills and involve various partners and players.

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Projects are collective: Projects are the product of collective endeavours. They involve teamwork and various partners and cater for the needs of others.

Projects are unique: Projects stem from new ideas. They provide a specific response to a need (problem) in a specific context. They are innovative.

Projects are an adventure: Every project is different and ground-breaking; they always involve some uncertainty and risk.

Projects can be assessed: Projects are planned and broken down into measurable aims, which must be open to evaluation.

Projects are made up of stages: Projects have distinct, identifiable stages (see Project cycle).

Steps in Project Management 1. Define the Scope The first, and most important, step in any project is defining the scope of the project. What is it you are supposed to accomplish by managing this project? What is the project objective? Equally important is defining what is not included in the scope of your project. If you don't get enough definition from your boss, clarify the scope yourself and send it back upstairs for confirmation.

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2. Determine Available Resources What people, equipment, and money will you have available to you to achieve the project objectives? As a project manager, you usually will not have direct control of these resources, but will have to manage them through matrix management. Find out how easy or difficult that will be to do. 3. Check the Timeline When does the project have to be completed? As you develop your project plan you may have some flexibility in how you use time during the project, but deadlines usually are fixed. If you decide to use overtime hours to meet the schedule, you must weigh that against the limitations of your budget. 4. Assemble Your Project Team Get the people on your team together and start a dialog. They are the technical experts. That's why their functional supervisor assigned them to the project. Your job is to manage the team. 5. List the Big Steps What are the major pieces of the project? If you don't know, start by asking your team. It is a good idea to list the steps in chronological order but don't obsess about it; you can always change the order later. CE 420 Page 13

6. List the Smaller Steps List the smaller steps in each of the larger steps. Again, it usually helps you remember all the steps if you list them in chronological order. How many levels deep you go of more and more detailed steps depends on the size and complexity of your project. 7. Develop a Preliminary Plan Assemble all your steps into a plan. What happens first? What is the next step? Which steps can go on at the same time with different resources? Who is going to do each step? How long will it take? There are many excellent software packages available that can automate a lot of this detail for you. Ask others in similar positions what they use. 8. Create Your Baseline Plan Get feedback on your preliminary plan from your team and from any other stakeholders. Adjust your timelines and work schedules to fit the project into the available time. Make any necessary adjustments to the preliminary plan to produce a baseline plan. 9. Request Project Adjustments There is almost never enough time, money or talent assigned to a project. Your job is to do more with the limited resources CE 420 Page 14

than people expect. However, there are often limits placed on a project that are simply unrealistic. You need to make your case and present it to your boss and request these unrealistic limits be changed. Ask for the changes at the beginning of the project. Don't wait until it's in trouble to ask for the changes you need. 10. Work Your Plan, But Don't Die For It

Making the plan is important, but the plan can be changed. You have a plan for driving to work every morning. If one intersection is blocked by an accident, you change your plan and go a different way. Do the same with your project plans. Change them as needed, but always keep the scope and resources in mind. 11. Monitor Your Team's Progress

You will make little progress at the beginning of the project, but start then to monitor what everyone is doing anyway. That will make it easier to catch issues before they become problems.

12.

Document Everything

Keep records. Every time you change from your baseline plan, write down what the change was and why it was necessary. CE 420 Page 15

Every time a new requirement is added to the project write down where the requirement came from and how the timeline or budget was adjusted because of it. You can't remember everything, so write them down so you'll be able to look them up at the end-of-project review and learn from them. 13. Keep Everyone Informed

Keep all the project stakeholders informed of progress all along. Let them know of your success as you complete each milestone, but also inform them of problems as soon as they come up. Also keep you team informed. If changes are being considered, tell the team about them as far ahead as you can. Make sure everyone on the team is aware of what everyone else is doing. The advantages of project management

Reduce the chance of a project failing ensure a minimum level of quality and that results meet requirements and expectations

free up other staff members to get on with their area of work and increase efficiency both on the project and within the business

make things simpler and easier for staff with a single point of contact running the overall project

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encourage consistent communications amongst staff and suppliers

keep costs, timeframes and resources to budge

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Roles & Responsibilities of a Project Manager Oversee the construction project from start to finish. Perform a key role in project planning, budgeting, and identification of resources needed. Create the teams, develop the objectives/goals of each and assign individual responsibilities. Project accounting functions including managing the budget, tracking if team expenses and minimizing exposure and risk in the project Ensure that construction activities move according to predetermined schedule. Devise the project work plans and make revisions as and when need arises. Communicate effectively with the contractors responsible for completing various phases of the project. Co-ordinate the efforts of all parties involved in the project, which include the architects, consultants, contractors, subcontractors and laborers. Monitor the progress of the construction activities on a regular basis and hold regular status meetings with all the sub-teams. Maintain strict adherence to the budgetary guidelines, quality and safety standards. Periodic inspection of construction sites. Ensure project documents are complete.

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Identify the elements of project design and construction likely to give rise to disputes and claims.

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