BTQS3042 Tutorial Notes 1

BTQS3042 Project Management
Tutorial Notes 1
1. Lectures
1. Introduction
2. Overview of Project Management
3. Time Management
4. Cost Management
5. Quality Management
6. Risk Management
7. Health and Safety Management
8. Value Management
9. Contract Management
10. Project Close Out
Introduction
2. Definition and characteristics of a project
1. One of the ways to define the term ‘project’ - A project is a one-time job that has defined
starting and ending dates, a clearly specified objective, or scope of work to be performed, a
pre-defined budget and usually a temporary organization that is dismantled once the project
is completed.
2. Characteristics of a construction project
- A unique assembly of materials and custom fabrications from many sources with specific
parameters such as duration, quality, budget, location, site conditions, weather
conditions and construction team with subcontractors and direct labor.
o It has a specific start date and specific completion date, some with specific
completion milestones in between.
o A project is a separate accounting profit centre
o The physical project is normally in a separate location from company office.
o Separate management organization and techniques specific to each project.
- Substantial subcontracting, normally 70 to 100%, is used to construct the project.
- Most construction companies have numerous projects under construction at the same
time, each requiring separate management. Project manager is the single source of
responsibility to upper management for the project
- There is a single owner for each project, and usually a single source of payment
- Each site is controlled by the contractor, including security and safety responsibilities
3. Primary objectives (7) of construction project management

- Completion within the specified or expected time frame.
- Completion within the specified level of quality – performance level, workmanship and
integration as a complete package
- Effective control of costs to within budget
- Effective jobsite safety program
- Customer (Client) satisfaction- effective communication, salesmanship, attention to
details, and completion and handover of physical project as expected
- Effective management of subcontractors
- No post-construction contractual disputes with the Client or subcontractors.
- All objectives are interrelated
4. Organization of project team depends on the type of project delivery systems

1. Traditional (Client-Consultant-Contractor), Project Management Consultant (In Malaysia, this

is usually carried out by Engineering Consultant company), design and build contractor,
Engineering Procurement Construction and Commissioning (EPCC), Project Delivery Partner
(PDP)
2. Build-Operate-Transfer (BOT)- concessionaire finance, design, construct, own, and operate
for a fixed concession period. In highway, payment by toll users directly. In water supply,
payment by water department who collect from consumers.
5. Life cycle of a construction project (traditional or PMC project delivery system)

1. Feasibility study
- Statement of need– e.g. to increase water supply to Muar district by 50 MLD, to increase
the production capacity by 50k units per year
- capital expenditure approval
- feasibility study report [scope, cost, time-frame, project delivery system, risk analysis,
environmental impact (more than 50hectares requires EIA)]
2. Design & Engineering
- Preliminary design – architectural concepts, M&E technology and process alternatives,
size, capacity and material
- Detailed design – sufficient for construction
- Contractor contract documents – conditions of contract, specifications, drawings and
bills of quantities
3. Procurement (of goods and services)
4. Construction (and Testing and Commissioning for M&E works)
5. Close-out and handover- operation and maintenance manual including warranty certificates
and statutory permits, as-built drawings, training of client’s staffs, certificate of practical
completion with defects list (in addition to certificate of completion and compliance for
building projects), defects liability period, certificate of completion of making good.
6. Duties of project manager (can be PMC or Engineering Consultant OR in-house staff for
concessionaire, government and developer projects) (note: project manager referred to in this
course usually do not mean project manager of the contractor):
1. Preparation for the client’s approval of the following items:
- The overall project schedule embracing site acquisition, relevant investigations, planning,
pre-design, design, construction and handover/occupation stages.
- Proposals for architectural and engineering services. The project manager will monitor
progress and initiate appropriate action on all submissions concerned with planning
approvals and statutory requirements
- The project budget and relevant cash flows, giving due consideration to matters likely to
affect the viability of the project development
2. Monitor and control project construction until handover through regular meetings, reports,
communications and instructions to meet target time, cost, quality, health and safety,
environment and contractual requirements.
3. Ensure the consultants and contractors supply the client with as-built and installed drawings,
operating and maintenance manuals, and effective training of the client’s engineering and
maintenance staffs.
4. Participating in the final account of the project and taking such action as required.
7. Project stakeholders in a construction project (potential sources of problem to the project)

1. Key stakeholders – client (and end-user), consultants, contractors, suppliers, specialist
testing agencies, auditors, insurance company,
2. All staffs, workers and visitors at site

3. Government departments (mainly CIDB, DOSH, Bomba, DOE, Malaysian Communications
and Multimedia Commission) and local authorities
4. Utilities and other service providers (TNB, water authority, IWK, telecoms)
5. Public, local residents, traffic, site and environment
6. Non-governmental organizations (NGOs)

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BTQS3042 Project Management

3. Primary objectives (7) of construction project management

4. Organization of project team depends on the type of project delivery systems

1. Traditional (Client-Consultant-Contractor), Project Management Consultant (In Malaysia, this

5. Life cycle of a construction project (traditional or PMC project delivery system)

7. Project stakeholders in a construction project (potential sources of problem to the project)

2. All staffs, workers and visitors at site

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