Unit 1 Management Functions

Management functions
The management of construction projects requires knowledge of modern management as

well as an understanding of the design and construction process. Construction projects
have a specific set of objectives and constraints such as a required time frame for
completion. While the relevant technology, institutional arrangements or processes will
differ, the management of such projects has much in common with the management of
similar types of projects in other specialty or technology domains such as aerospace,
pharmaceutical and energy developments.
Generally, project management is distinguished from the general management of

corporations by the mission-oriented nature of a project. A project organization will
generally be terminated when the mission is accomplished. According to the Project
Management Institute, the discipline of project management can be defined as follows:
[1]
Project management is 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 participation satisfaction.
By contrast, the general management of business and industrial corporations assumes a

broader outlook with greater continuity of operations. Nevertheless, there are sufficient
similarities as well as differences between the two so that modern management
techniques developed for general management may be adapted for project management.
The basic ingredients for a project management framework [2] may be represented
schematically in Figure 2-1. A working knowledge of general management and
familiarity with the special knowledge domain related to the project are indispensable.
Supporting disciplines such as computer science and decision science may also play an
important role. In fact, modern management practices and various special knowledge
domains have absorbed various techniques or tools which were once identified only with
the supporting disciplines. For example, computer-based information systems and
decision support systems are now common-place tools for general management.
Similarly, many operations research techniques such as linear programming and network
analysis are now widely used in many knowledge or application domains. Hence, the
representation in Figure 2-1 reflects only the sources from which the project management
framework evolves.
Figure 2-1: Basic Ingredients in Project Management
Specifically, project management in construction encompasses a set of objectives which

may be accomplished by implementing a series of operations subject to resource
constraints. There are potential conflicts between the stated objectives with regard to
scope, cost, time and quality, and the constraints imposed on human material and
financial resources. These conflicts should be resolved at the onset of a project by making
the necessary tradeoffs or creating new alternatives. Subsequently, the functions of
project management for construction generally include the following:
1. Specification of project objectives and plans including delineation of scope,

budgeting, scheduling, setting performance requirements, and selecting project
participants.
2. Maximization of efficient resource utilization through procurement of labor,
materials and equipment according to the prescribed schedule and plan.
3. Implementation of various operations through proper coordination and control of
planning, design, estimating, contracting and construction in the entire process.
4. Development of effective communications and mechanisms for resolving
conflicts among the various participants.
The Project Management Institute focuses on nine distinct areas requiring project
manager knowledge and attention:
1. Project integration management to ensure that the various project elements are
effectively coordinated.
2. Project scope management to ensure that all the work required (and only the
required work) is included.
3. Project time management to provide an effective project schedule.
4. Project cost management to identify needed resources and maintain budget
control.
5. Project quality management to ensure functional requirements are met.
6. Project human resource management to development and effectively employ
project personnel.
7. Project communications management to ensure effective internal and external
communications.
8. Project risk management to analyze and mitigate potential risks.
9. Project procurement management to obtain necessary resources from external
sources.
These nine areas form the basis of the Project Management Institute's certification
program for project managers in any industry.
2.12 Perceptions of Owners and Contractors

Although owners and contractors may have different perceptions on project management
for construction, they have a common interest in creating an environment leading to
successful projects in which performance quality, completion time and final costs are
within prescribed limits and tolerances. It is interesting therefore to note the opinions of
some leading contractors and owners who were interviewed in 1984. [8]
From the responses of six contractors, the key factors cited for successful projects are:
 well defined scope

 extensive early planning
 good leadership, management and first line supervision
 positive client relationship with client involvement
 proper project team chemistry
 quick response to changes
 engineering managers concerned with the total project, not just the engineering
elements.
Conversely, the key factors cited for unsuccessful projects are:
 ill-defined scope
 poor management
 poor planning
 breakdown in communication between engineering and construction
 unrealistic scope, schedules and budgets
 many changes at various stages of progress
 lack of good project control
The responses of eight owners indicated that they did not always understand the concerns
of the contractors although they generally agreed with some of the key factors for
successful and unsuccessful projects cited by the contractors. The significant findings of
the interviews with owners are summarized as follows:
 All owners have the same perception of their own role, but they differ
significantly in assuming that role in practice.
 The owners also differ dramatically in the amount of early planning and in
providing information in bid packages.
 There is a trend toward breaking a project into several smaller projects as the
projects become larger and more complex.
 Most owners recognize the importance of schedule, but they adopt different
requirements in controlling the schedule.
 All agree that people are the key to project success.
From the results of these interviews, it is obvious that owners must be more aware and
involved in the process in order to generate favorable conditions for successful projects.
Design professionals and construction contractors must provide better communication
with each other and with the owner in project implementation.

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Management functions

The management of construction projects requires knowledge of modern management as

Generally, project management is distinguished from the general management of

By contrast, the general management of business and industrial corporations assumes a

Specifically, project management in construction encompasses a set of objectives which

1. Specification of project objectives and plans including delineation of scope,

2.12 Perceptions of Owners and Contractors

 well defined scope

Conversely, the key factors cited for unsuccessful projects are:

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