Construction Projec

t Administration

• Lecture 2

Dr. Abubakar Sharafat

PhD in Civil Engineering
with Major in
Construction Engineering & Management

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Course topics and schedule
1) Introduction of projects terminology, Project management framework, Project life cycle.
2) The construction industry. The structure of the industry and national economies. Industry
problems. Introduction to construction project management
3) Project stakeholder analysis and management, project delivery systems
4) Project manager and project organizations. PM roles and responsibilities. Demands on project
managers, Project teams, project management office.
5) Value engineering. The value concept. Value engineering job plan.VE techniques. Application of
VE job plan to construction. VE organization in the construction industry. Future directions
6) Feasibility analysis.
7) Construction resource mobilization. Pre-contract activities. Project organization. Site facilities.
Site layout planning. Approvals.
8) Construction materials and workmanship, Materials management. Materials requirement
planning. Procurement procedures. Stores and stock control. Materials handling on site. Waste
control.
9) Communication and project management information systems. Functions of communication.
The communication process. Barriers to effective communication. Group decision making. Site-
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office communication. Communicating with workforce. Communication systems.
Course topics and schedule  

11) Project documentation, records and reports, project control. The planning-monitoring-control
cycle. Information needs and reporting process. Purposes of control. Control processes. Control
systems. Design of control systems. Management control function.
12) Project closeout, project evaluation, auditing and closeout. Purposes of evaluation. The project
audit. The audit report. The project audit cycle. Essentials of an audit/evaluation. Varieties of
project termination. The termination process.
13) Productivity issues in construction. Total factor productivity. Labor productivity. Measurement
of labor productivity. Factors affecting labor activities. Productivity improvement in the
construction site and in the construction company. Equipment productivity.
14) Quality issues in Construction. The quality problem. Project quality planning. Quality plans and
manuals. Work inspection procedures. Testing procedures. Responsibilities of various parties.
Quality Control & Assurance
15) Principles of Project Management. Project management process. Selecting the project manager.
Selling the project plan. Staffing the project. Project decision analysis. Conducting project
meetings. Group decision making. Project leadership. Personal management.

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 Recommended Books

• Frisk, E. R. and Reynolds, W.D. (2010). Construction Project Administration.

Prentice Hall.
• Griffith, A. and Watson, P. (2004).Construction Management: Principles and
Practice. Palgrave Macmillan, New York.
• Schexnayder, C. J. and Mayo, R. E. (2003). Construction Management
Fundamentals. McGraw-Hill
• PMI (2013). A Guide to the Project Management Body of Knowledge. Project
Management Institute, USA.
• Fellows, R. Langford, D. Newcombe, R. and Urry, S. (2002). Construction
Management in Practice. Blackwell Science Ltd.
• Levy, M. Sidney. 2000). Project Management in Construction. McGraw-Hill.
• Kerzner, Harold (2000). Project Management: A System Approach to Planning,
Scheduling, and Controlling. John Wiley & Sons, Inc.
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 Lec:2 Today’s Lecture

• The construction industry.

• The structure of the industry and national economies. Industry problems.

• Introduction to construction project management

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 The construction industry

Definition: The branch of manufacture and trade based on the building, maintainin
g, and repairing structures. This includes drilling and solid mineral exploration.
Definition Source:

Standard Industrial Classification

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 The construction industry

Construction Industry Categories:

• Building Construction Industry: All general contractors and operative builders primarily engaged
in the construction of residential, farm, industrial, commercial, or other buildings. (Definition Sou
rce: Standard Industrial Classification)

• Heavy Construction Industry: All general contractors primarily engaged in heavy construction ot
her than building, such as highways and streets, bridges, sewers, railroads, irrigation projects, an
d flood control projects and marine construction. This includes special trade contractors primaril
y engaged in activities not normally performed on buildings, such as highway grading or underwa
ter rock removal. This does not include special trade contractors primarily engaged activities perf
ormed on buildings (see Construction -- Special Trade Contractors). (Definition Source: Standard I
ndustrial Classification) 7
 The construction industry
• Construction Industry Categories:

• Special Trade Construction Industry: All special trade contractors who undertake acti
vities of a type that are specialized either to building construction, including work on
mobile homes, or to both building and nonbuilding projects. This includes projects su
ch as painting, electrical work, plumbing, etc. This does not include activities specializ
ed for heavy construction (see Heavy Construction Other than Building Construction
-- Contractors). (Definition Source: Standard Industrial Classification)

• Environmental construction used to be part of heavy civil, but is now its own section
, dealing with projects that improve the environment. Some examples are sanitary se
wers, waste management, and clean water.
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 Structure of the Construction Industry

• This industry generally constitutes of enterprises and professionals whose primary objective is t

o build communities, roads, schools, homes, business, hospitals and including its maintenance.

• The construction process consists of many activities, right from the onset of the project design a

nd right through its implementation, maintenance, refurbishment, and goes up to the eventual

disposal of its buildings or in other words, the whole life cycle of the project.

• This industry therefore require a wide range of suppliers, contractors and including manufactur

ers of materials and components to carry out its activities.

• The industry had changed a lot in its complexity over time, but the objective of the industry re

mains basically the same as it was 100 years ago

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 Structure of the Construction Industry

• The construction industry needs to improve there should be:

• Less fragmentation

• Increased profitability

• More capital investment

• More investment in R&D

• More and better training

• Differentiation between price and cost

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 Structure of the Construction Industry

• The construction process should be improved by:

• More process repetition on projects

• Integrating all team members to use their skills to deliver value to the client

• Focus on the end product how best to achieve the desired result

• Continuous product improvement

• Implement projects correctly, suiting the site and the customer

• Partnering through the supply chain

• Once improvement starts, maintain it 11

 Structure of the Construction Industry

• Improvement could be accomplished by developing a better culture in the indus

try:

• Providing decent working conditions

• More and better training

• Produce designs which considers the projects end use

• Standardise components where possible

• Improve regulatory controls

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• Implement long term relationships
 Structure of the Construction Industry

• Material use

• Built environment

• Cause minimum damage to natural and social environments

• Minimise the use of resources

• Enhance the quality of life

• Will be acceptable to future generations

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 Structure of the Construction Industry

• Material use

• Built environment

• Cause minimum damage to natural and social environments

• Minimise the use of resources

• Enhance the quality of life

• Will be acceptable to future generations

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 Structure of the Construction Industry

• Needs
The working pattern of the society is changing quite fast and constructi
on industry is known for adapting to change at a faster pace than other
industries.

• Sustainable sourcing code

• For the London 2012 games, London Organizing Committee of the Oly

mpic Games (LOCOG) had prepared a Sustainable Sourcing Code in co

nsultation with industry leaders, sponsors and non-governmental org

anizations.
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 Structure of the Construction Industry

• Controlling material resources

A material at site is money and is to be prudently handled. The cost of materials con
stitutes a major portion of the project cost.

• Whole-life thinking

• Procurement methods:

• Project priorities

• Procurement strategy

• Procurement option

• Risk
• Risk versus reward for the manufacturing sector
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• Risk versus reward for the construction sector
 Construction Industry & national economics

• The construction industry is important partly because its output is lar

ge and therefore that it is a significant part of the economy.

• The gross output of the construction industry is the value of all the bu
ildings and works produced by the industry in a given period of time,
normally a year.

• In the world as a whole it is probably about 10 per cent of Gross Natio

nal Product (GNP), that is 10 per cent of all the goods and services pr
oduced, or of the order of US$3,000 billion in 1997.

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 Construction Industry & national economics

• There is a considerable difference between various types of economy

and geographical locations.

• Davis Langdon Consultancy (DLC, 1997) estimated that in 1990 the pe

rcentage shares were: Western Europe 30 per cent; Asia 28 per cent;
North America 25 per cent; Eastern Europe 7 per cent; South America
5 per cent and Africa, Middle East and Oceania just under 2 per cent
each.

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 Construction Industry & national economics

• These estimates are similar in general conclusions to those by Drewer

(1999) who estimated that developed market economies accounted f
or 78 per cent of global construction output in 1990.

• In Europe, gross construction output was around 10 per cent of GDP i

n 1997, marginally less for the EU and slightly more for countries of th
e former Soviet Union (DL&E, 2000).

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 Structure of Construction Industry in Pakistan

The construction industry in Pakistan is heterogeneous and

enormously complex. There are several major classifications of
construction that differ distinctly from one another: e.g.
• Housing
• Nonresidential / Commercial Building
• Highways
• Utilities
• Industrial
• Dams & Canals
• Ports & Harbors etc.

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 Structure of Construction Industry in Pakistan

• Construction work is designed and supervised by Consulting firms /

individual consultant.

• The Consultant may be (an) engineer (s) or (an) architecture (s).

• The PEC bylaws are considered binding legal framework for the
construction works whereas international standards like ACI, ASTM,
AASHTO etc. are used for construction activities.

• The construction work is carried out in the presence of “The Engineer”

who has good authority over all the parties of the contract.
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 Structure of Construction Industry in Pakistan

Usually following are the prime stakeholders of the construction project.

• The Client (The Employer, Customer, Buyer etc.)

• The Contractor
• The Engineer
• The Consultant (Designer etc.)
• The Supervision Consultant
• The Management Consultant (only on large projects)
• The Sub-Contractor

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 Structure of Construction Industry in Pakistan

Projects are identified by line Ministries/Autonomous Bodies/Attached

Departments, provincial and district governments. After appraisal and
selection projects are sent for approval.

Following are the project approving authorities working at various levels:

• Executive Committee of National Economic Council (ECNEC)

• Central Development Working Party (CDWP)
• Departmental Development Working Party (DDWP)
• Provincial Development Working Party (PDWP)

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Approval Process of Public Sector Projects
in Pakistan
(Continued…)
Copies of PC-I/PC-II have to be sent by the sponsoring Provincial
Governments and the Federal Ministries to the Planning Commission.
The Planning Commission after completing the formalities circulate the
PC-I/PC-II to all the members of CDWP.

The number of copies required by the Planning and Development

Division which acts as the Secretariat of the CDWP, has been specified
from time to time according to the requirements of the Cabinet Division,
who act as the Secretariat of the ECNEC, depending on the increase or
decrease in the membership of ECNEC.

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 Approval Process of Public Sector Projects in Pakistan
(Continued…)

• As soon as a copy of PC-I/PC-II is received by a member of the

CDWP/PDWP/DDWP, its examination should be conducted expeditiously
so that the same is approved / rejected in accordance with the time
schedule.
• Meetings of the ECNEC are presided over by the Prime Minister of Pakistan.
• The meetings of the Central Development Working Party are normally held
in every month.
• For the meetings of DDWP and PDWP presence of Finance
Division/Finance Department’s representative is essential

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 Approval Process of Public Sector Projects in Pakistan
(Continued…)

No Authority Sanctioning Power

1 ECNEC All Schemes costing Rs. 500.00 million & above.

All Federal schemes costing upto Rs. 500.00

2 CDWP million and provincial schemes costing above
Rs. 5000.00 million.

3 Provincial Governments
Upto Rs 5000.00 million
(PDWP)

4 Federal Ministries
Upto Rs. 40.00 million
(DDWP)
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 PC Performae
For the project cycle following six (6) proformae have been designed by
the Planning Commission.

No Performa Purpose
PC-I Form
1 Detailed project document

For preparation of pre-feasibility, feasibility study,

2 PC-II Form
conducting survey

For submission of quarterly monitoring/progress

3 PC-III Form
report of project

4 PC-IV Form For submission of completion report of project

For submission of evaluation /implementation

5 PC-V Form report on annual basis for five years (helps in
policy formulation for future)

For preparation of small projects costing less

6 Low cost PC-I Form 27
than Rs. 1.0 million
 Problems of Construction Industry in Pakistan

Following are the few problems of the construction industry in Pakistan.

• Executive support / political will for project

• Improper & insufficient planning
• Incomplete & copy-paste design
• Poor design detailing for executioners
• Delayed mobilization of Project Manager on project
• Non delegation of powers to PM office
• Uncertainty due to regime change
• Political involvement in procurement process
• Problems in Land Acquisition

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 Problems of Construction Industry in Pakistan
(Continued…)

• Poor Estimation & management

• Non observation of quality standards
• Non adherence and ignorance of to prevailing laws, rules and
regulations
• Absence of Law & order situations handling mechanism
• Non cooperating Governmental agencies
• Influential locals
• Lack in stakeholders management
• Uncertainty in construction market prices
• Scarcity of construction materials (bitumen, steel, cement etc.)
• Load shedding (affecting crushers, refineries, rolling mills etc.)
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 Problems of Construction Industry in Pakistan
(Continued…)

• Unforeseeable increase in fuel costs n power prices

• Increase in import materials & equipment by inflating FC
• Munshi culture
• Nearly non existent professionally trained project management
teams
• Contractors on public sector projects getting political favors
instead of behaving professionally
• Bribery in Construction field
• Delayed payments to Contractors resulting slow progress &
increased costs in lieu of escalations

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 Problems of Construction Industry in Pakistan
(Continued…)

• Absence of timely payments to employees, sub contractors etc.

resulting in demotivation and encouraging them for going for
wrong means
• Ignorance of user in actual construction work and only product
oriented mind set
• Lack of sense of ownership
• Poor construction supervision
• Poor Communication among stakeholders
• Poor Record Keeping
• Project management is thought as of only a schedule
• Poor requirement collection and poor understanding of
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deliverables.
 Problems of Construction Industry in Pakistan
(Continued…)

• Absence of proper risk management

• No standard formulation mechanism

• Mostly project people are JUST KILLING time on site

• Absence of lesson learned mechanism

• AND …………

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Assignment#1
1. Brief summary of: Assessment of Pakistani Construction Industry and importance of
China-Pakistan Economic Corridor (350-400 words)
2. Considering the Lec 1 and lec 2 knowledge. Select one construction project in Pakistan.
Discuss the following things (350-400 words):
• Introduction of that project.
• Importance of that Project to Pakistan Economy
• The problems related to that project.

Note: you need to read material from books, internet, research papers and try to explain
in your own words. Provide the reference as generally used in research paper.
Copy/pasting from any source is stricrly prohibited. Palagirism will be checked and

anyone having palagirism above 20% will be marked ZERO

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Any Questions?

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