Construction Management and

Engineering Economics
Course Code – CE406
Spring 2025
Introduction, Construction challenges, organization &
management, project management objectives,
processes & responsibilities
Week # 01
Dr. Syed Muhammad Ali
Professor of Civil Engineering, UET Peshawar
[email protected]
 Learning Objectives
By the end of this lecture, you will be able to;

• Explain the term construction management & challenges

• Explain the five project management process groups.
• Explain the Processes interaction and process groups overlapping
relationships.
• Explain the ten project management knowledge areas
• Mapping the Process groups with knowledge areas.
 What is a Construction Management?

Construction management is the application of

knowledge, skills, tools, and techniques to project
activities to meet the project requirements.

• This application of knowledge requires the effective

management of appropriate processes.

A process is a set of interrelated actions and activities

that are performed to achieve a pre - specified set of
products, results, or services.

• The project management processes ensure the

effective flow of the project throughout its existence.
 Project Management Processes

“The project life cycle is managed by executing a series

of project management activities known as project
management processes”
• Every project management process produces one or more
outputs from one or more inputs by using appropriate
management tools & techniques.
• The output can be a deliverable or an outcome. Outcomes are
an end result of a process.
• Project management processes are logically linked by the
outputs they produce. The output of one process generally
results in either:
➢ An input to another process, or
➢ A deliverable of the project or project phase.
 Project Management Processes Groups

Project Management Process Group is a logical

grouping of project management processes to
achieve specific project objectives.
• The Process Groups are not project phases.
• Project Process group are:
1) Initiating Process Group
2) Planning Process Group
3) Executing Process Group
4) Monitoring and Controlling Process Group
5) Closing Process Group
The Five Project Management Process Groups

Defines and authorizes the project (or a

Initiation phase of the project) to start.

Refines the project goal, scope,

requirements etc. and defines the course
Planning of action to attain the project objective.
(master plan)
Brings together all required resources to
Implementation undertake the project in accordance with
the master plan.
Formalizes acceptance of the project
Closure output by the project customer and brings
the project to its end. (Formal closing)
Monitoring, Control & Monitors the project to identify and assess
Evaluation shortfalls and variances and initiate
corrective action if needed.
 Process Iterations & Interactions
• The number of process iterations and interactions between
processes varies based on the needs of the project. Processes
generally fall into one of three categories:

• Processes used once or at predefined points in the project.

The processes Develop Project Charter and Close Project or
Phase are examples.
• Processes that are performed periodically as needed. The
process Acquire Resources is performed as resources are
needed.
• Processes that are performed continuously throughout the
project. The process Define Activities may occur throughout the
project life cycle. Many of the monitoring and control processes
are ongoing from the start of the project, until it is closed out.
 Project Management Process Interactions
• The integrative nature of project management requires the
Monitoring and Controlling Process Group to interact with the
other process Groups.

• In addition, since management of a project is a finite effort, the

Initiating Process Group begins the project and the Closing
Process Group ends it.
Process Group Overlapping Relationship
 Project Management Knowledge Areas

 In addition to process groups, processes are also

categorized by knowledge areas. The ten knowledge areas
identified by Project Management Institute are;

• Project integration management

• Project scope management
• Project time management
• Project cost management
• Project quality management
• Project Human Resource Management
• Project Communication Management
• Project Risk Management
• Project Procurement Management
• Project Stakeholder Management
 Project Management Knowledge Areas (Cont.)

• Project Integration Management. Includes the processes and

activities to identify, define, combine, unify, and coordinate the
various processes and project management activities within the
Project Management Process Groups.

• Project Scope Management. Includes the processes required to

ensure the project includes all the work required, and only the
work required, to complete the project successfully.

• Project Schedule Management. Includes the processes

required to manage the timely completion of the project.

• Project Cost Management. Includes the processes involved in

planning, estimating, budgeting, financing, funding, managing,
and controlling costs so the project can be completed within the
approved budget.
 Project Management Knowledge Areas (Cont.)

• Project Quality Management. Includes the processes for

incorporating the organization’s quality policy regarding
planning, managing, and controlling project and product
quality requirements, in order to meet stakeholders’
expectations.

• Project Resource Management. Includes the processes to

identify, acquire, and manage the resources needed for the
successful completion of the project.

• Project Communications Management. Includes the processes

required to ensure timely and appropriate planning, collection,
creation, distribution, storage, retrieval (getting back),
management, control, monitoring, and ultimate disposition of
project information.
 Project Management Knowledge Areas (Cont.)

• Project Procurement Management. Includes the processes

necessary to purchase or acquire products, services, or results
needed from outside the project team.

• Project Stakeholder Management. Includes the processes

required to identify the people, groups, or organizations that
could impact or be impacted by the project, to analyze
stakeholder expectations and their impact on the project, and
to develop appropriate management strategies for effectively
engaging stakeholders in project decisions and execution.

• The needs of a specific project may require one or more

additional Knowledge Areas, for example, construction may
require financial management or safety and health
management.
Process Groups
& Knowledge
Areas Mapping
(PMBOK)
 1) Initiating Process Group
• This Process Group includes all processes related to
answering the question ‘‘What do you need to do?’’
– Initial scope is defined & financial resources are
committed.
– Internal & external stakeholders are identified.
– The project manager is recruited.
– Develop a project charter and stakeholder register.
– Project charter approval.
 2) Planning Process Group
• The Planning Process Group includes all processes
related to answering the question ‘‘How will you do it?’’
These processes are as follows:
1. Develop Project 12. Plan Quality
Management Plan 13. Develop Human
2. Collect Requirements Resource Plan
3. Define Scope 14. Plan Communications
4. Create WBS 15. Plan Risk Management
5. Define Activities 16. Identify Risks
6. Sequence Activities 17. Perform Qualitative Risk
7. Estimate Activity Resources Analysis
8. Estimate Activity Durations 18. Perform Quantitative Risk
9. Develop Schedule Analysis
10. Estimate Costs 19. Plan Risk Responses
11. Determine Budget 20. Plan Procurements

– Gaining senior management approval to execute the project

Planning Process Group

Figure 3-8. Planning Process Group

PMBOK®Guide, Fourth Edition, 3.4 Planning Process Group, Page 46 - 55

 3) Executing Process Group
The Executing Process Group includes all processes
related to recruiting and organizing the team and
establishing the team operating rules. Here is where the
real work of the project takes place.
Includes the following project
management processes:

1. Direct and Manage

Project Execution
2. Perform Quality Assurance
3. Acquire Project Team
4. Develop Project Team
5. Manage Project Team
6. Distribute Information
7. Manage Stakeholder
Expectations
8. Conduct Procurements

PMBOK®Guide, Fourth Edition, 3.5 Executing Process Group, Page 55 - 59

 4) Monitoring and Controlling Process Group
Tracks, reviews & regulates
the project progress and
performance; identifies any
areas in which changes to the
plan are required; & initiates the
changes.

1. Monitor and Control Project Work

2. Perform Integrated Change Control
3. Verify Scope
4. Control Scope
5. Control Schedule
6. Control Costs
7. Perform Quality Control
8. Report Performance
9. Monitor and Control Risks
10.Administer Procurements

Figure 3-38. Monitoring and Controlling Process Group

PMBOK®Guide, 4th Edition, 3.6, Monitoring and Controlling Process Group, Page 59 – 64
 4) Monitoring & Controlling Process Group
Cont.
• It occupies the project manager with activities internal to
the project team itself and with activities external to the
project team and dealing with the client, the sponsor, and
your senior management.

• As problems and change requests arise, the strength of

your relationship with your client will in large measure
contribute to the success or failure of the project.
 5) Closing Process Group
The Closing Process Group includes all processes related to
the completion of the project, including answers to the question
‘‘How well did you do?’’
1. Close Project or Phase – the process of finalizing all activities across all of the
Process Groups to formally complete the project or a project phase.
2. Close Procurements – the process of completing project procurement.

Figure 3-49. Closing Process Group

PMBOK®Guide, 4th Edition, 3.7, Closing Process Group, Page 65
 5) Closing Process Group

At project or phase closure, the following may occur:

• Obtain acceptance by the customer or sponsor,
• Conduct post project or phase-end review / audit,
• Record-impacts of tailoring to any process,
• Document lessons learned,
• Apply appropriate updates to organizational process assets,
• Archive all relevant documents in the Project Management
information System (PMIS) to be used as historical data,
• Close out procurements.
• Write final project report.

PMBOK®Guide, 4th Edition, 3.7, Closing Process Group, Page 64

The Five Project Management Process Groups

Initiation

Monitoring, Evaluation & Control

Planning

Implementation

Closure
 Project Manager

The Project Manager is the person assigned by

the performing organization to lead the team that is
responsible for achieving the project objectives.
(PMI® PMBOK® Guide)

• The project manager plays a critical role in the

leadership of a project team in order to achieve the
project’s objectives. This role is clearly visible
throughout the project. Many project managers
become involved in a project from its initiation
through closing.
 Project Manager
Sphere of Influence
 Project Manager
Description

The role of the Project Manager is to plan, execute,

and finalize projects according to strict deadlines
and within budget.

This includes acquiring resources and coordinating

the efforts of team members and third-party
contractors or consultants in order to deliver projects
according to plan.

The Project Manager will also define the project’s

objectives and oversee quality control throughout its
life cycle.
 Project Manager
Responsibilities
A project manager is the person who has the
overall responsibility for the success of projects.
Below is responsibilities list for a project manager.

• Manage the project taking into account

integration across all areas.
• Engage with stakeholders.
• Develop Project Plan.
• Direct project resources.
• Monitor and manage the project schedule.
 Project Manager
Responsibilities (Cont.)
• Monitor and manage the project budget.

• Monitor and manage the project risk.

• Deal with operational issues.

• Organize steering committee meetings (that

decides on the priorities); including ensuring those

minutes will be taken.

• Report to the steering committee, raising strategic

issues.
 Project Manager
Responsibilities (Cont.)

• Prepare Project Status Reports and Project

Change Requests for the steering committee.

• Ensure project meets requirements and

objectives.

• Manage project team members.

• Negotiate and resolve issues as they arise

across areas of the project and where they
impact on other activities, systems and projects.
 Project Manager
Responsibilities (Cont.)
• Look after the interests of the project team.

• Organize and chair project reference group

meetings, as appropriate.

• Communicate project status to project sponsor,

all team members, and other relevant
stakeholders and involved parties.

• Maintain project documentation.

 Project Manager
Responsibilities (Cont.)
Additional important remarks, in order to be
successful, the project manager must be given
support and authority by senior management.
 Role of Engineers in Project Management:

Engineering assignments are often completed by project

teams.

The engineering project manager serves in the role of

team leader and has the ultimate responsibility for the
successful performance of the project.

The project manager has key responsibility for managing

the project's scope, deliverables, schedule, budget and
quality.
Role of Engineers in Project Management: (Cont.)

1. Scope
The scope of the project defines what the project is
intended to accomplish.

It may contain a "problem statement" or similar summary

of the project goals.

Scopes define the key project activities, their anticipated

sequence and desired outcomes.
Role of Engineers in Project Management: (Cont.)

The project manager must be wary of "scope creep"—as

the project progresses, scope creep occurs when new,
unanticipated tasks are identified that can increase the
cost of the project or delay meeting the assigned
schedule.

2. Work Products
Work products, or "deliverables," are defined at the onset
(start) of a project. Smaller projects may conclude with
one final major deliverable, which could be a study report
or a set of design plans.
Role of Engineers in Project Management: (Cont.)

Larger projects frequently have interim deliverables at

key milestones which are used to assess the progress
and direction of the project.

Project managers are also responsible for many routine

deliverables including regular progress reporting,
updated schedules, meeting minutes and project
correspondence records.
 Role of Engineers in Project Management: (Cont.)

3. Schedule
Once the schedule for the project is determined, the
project manager or her designee will monitor the
progress of the project.

Schedules can be as a simple as major milestone schedules,

or, for larger projects, very detailed schedules can be
Developed using specialized scheduling software.

Detailed schedules define not only the start and completion

dates for an individual task, but the relation (or "dependence")
of that task on other project tasks.
 Role of Engineers in Project Management: (Cont.)

4. Budget
Project managers often use a "work breakdown
structure" to estimate the level of effort for individual
work tasks.

These tasks are then rolled up into an overall project

budget.

This estimate of the required level of effort is then

compared against available funding for a project, and
work scopes are adjusted as needed to keep the project
budget within the funding limits.
Role of Engineers in Project Management: (Cont.)

Once the project budget is established, the project

manager tracks the actual project expenditures against
the forecast expenditures and implements corrective
action as needed.

As the project progresses, the project manager

periodically prepares "cost to complete" estimates to
determine whether the project can be completed within
the assigned budget.
Role of Engineers in Project Management: (Cont.)

5. Quality
The project manager is responsible for assuring that all
internal project quality assurance procedures are
followed.

Each member of the project team is charged with

implementing quality assurance checks and reviews on
the project tasks completed under their direction.

The project may require formal reviews or independent

audits of the quality program implementation at key
milestones in the project process.
Role of Engineers in Project Management: (Cont.)

6. Project Team
On larger projects, a deputy project manager may assist
the project manager. Other task leaders may lead
selected elements of the project.

Often, a senior manager assists the project manager

with complex issues such as contracting, insurance or
the allocation of staff and other resources to the project
team.
Role of Engineers in Project Management: (Cont.)

7. Qualifications
Engineers typically serve in staff positions, or task leader
positions, prior to advancing to the role of project
manager.

Specialized training in the project management functions

provided by external sources (seminars, on-line training)
or by in-house training programs prepares the project
manager for success in this role.
 Reference
• PMBOK Guide 4th Edition.
THANK YOU!