Lecture 14:

Project Managment

CEE 498 Construction

Project Management

Jeffrey S. Russell, P.E., Ph.D.

Construction Engineering & Management
Civil & Environmental Engineering
University of Wisconsin-Madison
Structure

I. Basics
II. Introduction to the management system
III. Pre-construction planning: planning,
organizing, and staffing
IV. Pre-construction planning: developing the
project plan
V. Pre-construction planning: planning for
production and support
Structure (Contd)

VI. Cost and risk control

VII. Policies and procedures
VIII. Purchasing and receiving
IX. Subcontractor managment
X. Project layout
XI. Project start-up and closed-out
I. Basics

A. Five types of management - See Attachment #1

B. Project management definition - the art of
directing and coordinating human and
material resources throughout the life of a
project by using modern management
techniques to achieve predetermined
objectives of scope, cost, time, quality, and
participant satisfaction - See Attachment #2
I. Basics (Contd)

C. Five Ms of project management

1. Material
2. Money
3. Manpower
4. Machines
5. Management
I. Basics (Contd)

D. Functions of project management for

construction
Specifying project objectives and plans which
include the delineation of scope, budgeting,
scheduling, setting performance requirements,
and selecting project participants
Maximizing efficient resource utilization
through procurement of labor, material, and
equipment according to the prescribed
schedule and plan
I. Basics (Contd)

Implementing various operations through

proper coordination and control of planning,
design, estimating, contracting, and
construction in the entire process
Developing effective communication and
other mechanisms for resolving conflicts
among the various project participant
See Attachment #3
I. Basics (Contd)

E. Managers had better assume that the

skills, knowledge, and tools they will have
to master and apply fifteen years hence
are going to be different and new. Only
they themselves can take responsibility for
the necessary learning and relearning,
and for directing themselves.
- Peter F. Drucker
I. Basics (Contd)

F. Seagull Management
Fly in
Make a lot of noise
Dump on everybody
Fly off somewhere
II. Introduction to the
management system

A. A management system is an orderly

arrangement of functions through which
managers get things done
B. Functions
Planning - Working out a course of action
Organizing - Putting together interdependent parts
Staffing - Locating, placing, training, promoting
personnel
Controlling - Checking for deviations, corrective
action
Directing - Giving orders and instructions
II. Pre-construction planning:
Planning, Organizing, and Staffing

A. Introduction to planning
Construction projects vary so much that each
project must be planned individually
Planning is accomplished in three steps
Establishing goals
Determining what must be done to achieve the goals
Effective use of resources
II. Pre-construction planning:
Planning, Organizing, and Staffing

B. Pre-construction planning
C. The planning meeting(s)
D. Organizing and staffing

-See Attachment #4
IV. Pre-construction planning:
Developing the project plan

A. Developing the project plan

B. Developing the project schedule
V. Pre-construction planning:
Planning for production and support

A. Initial Crew Analysis

B. Test models and pilot studies
C. Planning for support activities
VI. Cost and risk control

A. Introduction to control and control systems

B. Labor cost control
C. Risk control: the importance of
documentation
VII. Policies and procedures

A. Help establish how thing which have to

be done are going to be done
B. Developing policies and procedures for a
jobsite
C. Developing policies and procedures for
administering paper work
D. Project filing procedures
VIII. Purchasing and receiving

A. Procuring - Locating, buying, ordering,

and receiving materials, supplies, and
equipment
Purchasing - involves locating and buying of
materials, supplies, and equipment; there is a
great need for discipline in the purchasing
process
Purchase orders
Responsibility for purchasing
VIII. Purchasing and receiving
(Contd)

Terms and conditions of the purchase to be

specified in the purchase order
Purchase control system
Office and field purchasing
Short form P.O. (used mostly for field
purchases)
VIII. Purchasing and receiving
(Contd)

B. Expediting - Coordinating the ordering

and receiving of purchased items
Responsibility for expediting must be clearly
defined
Expediter must have ALL information
required
Expediting is a key coordination function; it
requires experience and skills
VIII. Purchasing and receiving
(Contd)

C. Receiving materials and supplies - 5 steps

Jobsite unloading - be careful to minimize
handling
Material inventory - count!
Material inspection - for damages,
conformance with the order
Delivery receiving report
Logging in delivery
IX. Subcontractor management

A. Issuing a subcontract
A contract creates obligations for both
parties; to deal effectively with all
contractual obligations, all team members
must fully know and understand the
contract
IX. Subcontractor management
(Contd)

B. Subcontractor management: a big part

of the job - 5 major areas
Analyzing bids and issuing subcontracts
Review of subcontractor site requirements
Processing submittals and change orders
Scheduling and coordinating
Controlling quality, safety, and payments
IX. Subcontractor management
(Contd)

C. Subcontractor coordination meetings

Purpose
Keep communications between GC and subs open
and candid
Maintain communications among the subs
give all contractors an opportunity to discuss their
problems and learn about the problems others are
facing
Help to schedule and coordinate the project
IX. Subcontractor management
(Contd)

Types of meetings
Management meetings
Monthly or bi-monthly meetings with a set agenda for an
in-depth status review of job progress, schedule,
submittals, quality, and safety, and any special problems
Attendance - Owner, A/E, project manager,
superintendent, and major subs
Minutes should be taken and sent to all who attended
plus everybody involved in the subjects discussed
IX. Subcontractor management
(Contd)

Weekly project meetings

These meetings are centered primarily on
scheduling and coordination, but can also cover
cleanup, quality, safety, etc.
Pre-construction planning meetings
To discuss scope of work, long lead time items,
material handling and storage requirements, and
activity duration
IX. Subcontractor management
(Contd)

D. Subcontractor default
Be sensitive to early warning signs
Follow notification requirements if
subcontractor performance falls below
acceptable standards
Follow contract provisions exactly for
termination procedures
Try to work problems out with banks, bonding
company, etc., so no new subcontractor has to
be employed
X. Project layout

A. Organizing the project layout

Proper placement of yard, office, roads,
material storage and fabrication
60% to 70% of all labor cost to install
materials is spent to get the materials to the
location where it is installed
X. Project layout (Contd)

Items to consider
Site access and security, number and location of
entrances
On-site access roads: materials, drainage,
maintenance, etc.
Job office: location and layout
material storage areas: include subs!
Stockpiling of dirt for backfill
Fabrication areas
Trash removal
X. Project layout (Contd)

B. Material storage and protection

Storing materials so they can be found;
record the location
Protection from weather; follow
manufacturers instructions
Allow for mechanized handling
Protection from theft; lights, locks, security
devises
Controlling its use; define responsibilities for
control
X. Project layout (Contd)

C. Controlling small tools and supplies

Limit access to small tools and supplies
Limit the way they can be obtained
D. Material handling and fabrication
Mechanize when possible
Use assembly line techniques: plan the
location, plan the flow of materials, plan the
special tools and equipment needed
X. Project layout (Contd)

The secrets of efficient prefabrication

Minimize the moves for materials and workers
Minimize the hand labor
Remember that the shortest distance between
two points is a straight line
XI. Project start-up and
closed-out

A. Start-up
Pre-construction planning, organizing and
staffing have been completed and the
necessary permits have been obtained
Mobilization: the initial ordering and
receiving of material, equipment and
manpower, and the locating of the offices and
trailers to get the project under way
Use start-up checklists!!
XI. Project start-up and
closed-out (Contd)

B. Close-out
Closing out a project is an essential activity
of project management. A job is not closed
out until it is 100% accepted by the owner.
Momentum and efficiency established in the
construction phase should not be lost to
complacency and inefficiency when it
comes to close out the project