ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY

DEPARTMENT OF CIVIL ENGINEERING

Course Title: Const

CENG 4308
CONSTRUCTION PLANNING AND MANAGMENT
CHAPTER TWO:
CONSTRUCTION
MANAGEMENT
 Chapter 2 Outline
• Objectives of construction Management
• Overview of Project and Project Management
• Project Life Cycle
• Construction Projects Main features
• Functions of Construction Management
• Project Management body of knowledge
• Resource management - Human resource management
 Objectives of Construction Management

•The main objectives of the construction management team should

include:
• Project completion within the allocated budget and duration,
• Ensure that the production of construction works satisfy the
client’s functional requirements
• Construction to specified standards
• Provision of safe and satisfactory working condition.
• Accordingly, construction project management may be defined as
the overall control of the total management process to optimize the
three attributes of the process: Quality, Schedule and Cost.
OVERVIEW OF PROJECT AND
PROJECT MANAGEMENT
 Overview of Project
• A project is a unique endeavor to produce a set of
deliverables within clearly defined constraints of time,
cost and quality.
• A project is an investment activity where resources are
used to create capital assets which produces benefits
overtime and has a beginning and an ending with
specific objectives.
• A programme is an ongoing development effort or plan.
• A programme is therefore a wider concept than a project.
• It may include one or several projects at various time,
with specific objectives linked to the achievement of
higher level of common objective
 Project Vs. Programme

• e.g. a health program may include a water project, as

well as construction of a health center both aimed at
improving the health of a given community which
previously lacked easy access to these essential
facilities.
• Projects which are not linked with others to form a
program are sometimes referred to as stand alone
projects.
• A project to build a feeder road from an interior
agricultural district to a district headquarter may qualify
to be a stand alone project.
 Project Vs. Programme
• When projects are designed to improve health of the
community such as rural clean water supply project,
health center construction project, pit latrine construction
project and sanitary, education project; they can be
referred to as a programme.
• Projects are different from business operations in terms
of uniqueness, timescale, budget, resources, risks and
change.
• Uniqueness: Every project is different from the last one,
whereas operational activities typically involves repetitive
(if not identical) processes
• Timescale: A project has clearly specified start and end
dates within which deliverables are produced to meet
customer’s requirements.
 Project Vs. Business Operations
• Budget: A project has a maximum limit to the expenditure
within which the deliverables must be produced, to meet
the customer’s requirements
• Resources: A project is allocated a specified amount of
labour, equipment and material at the start.
• Risk: A project entails uncertainty and therefore carries
business risks
• Change: The purpose of a project is typically to improve a
situation through the implementation of change.
 Project Management

• Project Management is the capacity to marshal resources,

lay out plans, program work and spur effort for a
temporary endeavor which is finite in that it has a defined
beginning and ending, and which is undertaken to create
a unique product or service.

• Project Management is the utilization of skills, tools and

management processes to undertake a project
successfully .
 Project Management

• Project management methodology includes:

▪ A set of skills: specialized knowledge, skills and
experience help to reduce the level of risks and improve
the likelihood of success.
▪ A suite of tools: Project managers use several types of
tools to ensure a project’s success rate. These include
templates, forms, registers, software, checklist, etc.
▪ A series of Processes: A suite of management
processes are needed to monitor and control the
project; such as time management, cost management,
quality management, change management, risk
management, etc.
 Measure of Project Success

• A successfully managed project is one that is completed at

a specified time, acceptable quality delivered on or before
the deadline, and within the budget.
• Client satisfaction will indicate success and possibility of
replication or sustainability.
• Each of these parameters is specified in details during the
planning phase of the project.
• This specification then forms the basis for evaluating the
project during the implementation phase.
 Rationale for Project Management

• The essence of project management is to:

• Maximize chances of reaching the objectives of the
project which fits with the specification, and respect or
exceed the agreed QUALITY to be delivered in TIME,
SCOPE and BUDGET

• Strive for efficiency because of limited resources which

are available, and the need to achieve the objectives of
the project as earlier as possible
 Key Measures on Project Management

1. Define the objectives, goals and products of the project e.g in

construction project you need to have objectives and
goals of the project
2. Check for feasibility i.e is the project viable or not
3. Make a project plan or schedule of activities
4. Organize the people who are going to carry out the
project and make sure that communication is clear
5. There is a need to have a baseline data(like
drawings, specifications, BOQ, schedule, etc.)
6. Then execute the plan
7. Control the activities and monitor the progress of
the project
 Key Measures on Project Management

8. Measure and assess the project against the

baseline
9. Evaluate the project
10.Re-plan any changes to the project
implementation with greater precision until
project completion
11. Close the project
12.Learn lessons from the project
 Construction Projects Main features

1. Predetermined Objectives
 Components of a certain business
 Often the first phase
2. Constrained Schemes
 Schedule, Budget, Resources and Results / Scope Constraints
3. Too Fragmented
 In processes,
 In financial sources when co financed, and
 In responsible bodies
4. Investment
 Accelerates economic growth of a nation
 Cost Extensive, and
 Slow & Low business return on investment
 Construction Projects Main features

5. Human Resources
 Involves large number
 Borrowed
 High turnover
6. Construction Equipment
 Short life time, and
 Highly cost extensive both to own and increase their life
time
7. Reports and Monitoring disparity
 Exhibits Financial & Engineering Reports disparity
during implementations unless committed and
compensation events are not clearly considered
Functions of Construction Management
• The functions of construction management are the same to
that of the five managerial functions defined by Henry Fayol.
The following seven functions can better classify the different
functions: Planning, Organizing, Staffing, Motivating,
Communication, Measuring and Correcting, and Coordinating.
i. Planning
• Planning is a function of devising the cause for the future with
a vision, formulated for the future state of the organization or the
project. Planning also involves preparation of alternatives for
achieving specified objectives.
 In preparation of plans the following questions should
be addressed:
• What to do?
• How to do?
• Where to do?
• Who is to do it?
• How much does it cost?
The detailing of the plan depends on:
 Size of the project
 Degree of difficulty
 Knowledge and experience
 Degree and extent of indeterminate
operations
 Extent of internal and external constraints
 Scheduling:
• Scheduling is timing of the work activities. During
scheduling questions like when to do it and how long it takes
should be addressed.
ii. Organizing
• Organizing is required to achieve effective utilization of the
people, facilities, equipment and money available to the
Organization.
• Organizing also involves establishing a workable
organizational structure to divide the work into manageable
department/sections and delegate tasks accordingly.
iii. Staffing:
• Staffing involves assigning (employing) people to fill the
posts created within the organizational structure. Staffing also
involves matching the organization’s needs with each
employee’s goals and desires, and it requires adherence to
equal opportunity regulations.
iv. Motivating:
• Motivation can be defines as follows:

• Motivation is the set of processes that moves a person

towards a goal.
Motivation is the internal or external forces
that act on a person that arouse enthusiasm
and persistence to pursue a certain course of
action.
•Motivation is important in management of
people because a motivated workforce will “go
the extra mile” to exceed performance
expectations on the job.
•There are a number of theories which formulate why
people are motivated,

Hertzberg’s Two-Factor Theory:

• Considers factors that motivate, and reduce motivation
(motivators & de-motivators) and Key part of this theory is
that two separate sets of characteristics affect motivation
and employee performance.
• It considers Motivators as Achievement,
Recognition, Responsibility, Advancement,
the Work Itself, and Job Content.
• And De-Motivators (Hygiene) factors like
Salary, Technical Supervision, Company
Policies and Administration, Interpersonal
Relations, Working Conditions, and Job
Context.
v. Communication:
•Communication is a multifaceted management
responsibility. Communication can be formal and informal;
it is both written and oral.
• It utilizes paper, telephone, face-to-face, and electronic
means. Construction Managers communicate goals and
purposes; information, instructions, and inducements.
•They also ensure that the messages are sent and received in
the multitude directions.
vi. Measuring and Correcting:
•Measuring and Correcting involves:

• Measuring the actual performance

• Identify plan and schedule
• Compare plan against performance
• If there is discrepancy, identify the reasons
• Analyze the costs incurred
• Take remedial measures
• Observe quality of work
vii. Coordinating:
•Coordinating – conduct regular departmental and
section heads meeting for discussion.
 CPM: Body of Knowledge

The Project Management Body of Knowledge

Project Management Body of Knowledge
The Project Management Body of Knowledge
• The Project Management Body of Knowledge (PMBOK)
is a collection of processes and knowledge areas
generally accepted as best practice within the project
management discipline.
• As an internationally recognized standard (IEEE Std ) it
provides the fundamentals of project management,
irrespective of the type of project be it construction,
software, engineering, automotive etc.
 CPM: Body
Project of Knowledge
Integration
Management
• The Project Management Body of Knowledge
Project
Procurement & Project
Contract Resources
Management Management

Project
Project Environment,
Constraints Health & Safety
Management Management
PM BoK
 CPM: Body of Knowledge
1. Project Procurement and Contract Management
• Governance System
• Project Procurement Management
• Project Contract Management
2. Project Constraints Management
• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
3. Project Resources Management
• Project Financial Management
• Project Human Resources Management
• Project Materials Management
• Project Machineries and Plants Management
 CPM: Body of Knowledge
4. Project Environment, Health and Safety Management
• Project Environment Management
• Project H&S Management
5. Project Integration Management
• Project Feasibility (Economics) Management / Front –
End Assessment
• Project Portfolio Management;
• Project – Parent (HO) Relationships Management
• Project Communication & Performance Management
• Project Uncertainty and Change Management
• Project Uncertainty / Risk Management
• Project Configuration / Changes / Alterations Management
• Project Claim and Dispute Management
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:

1. Project Procurement & Contract Management

involves:
• Procurement & Contract Governance System
(Services Vs Works)
• Construction Law
• Delivery System
• Contracting Method
• Procurement Method
• Contract Type
• Procurement and Contract Management
Planning
• Establishing Procurement Team
• Deciding Proc & Cont Governance Structure
 CPM: Body of Knowledge
• Project Constraints Management
• Project Time Management involves
• the management of Activities and Resources
Dependencies
• PTM processes:
• Define Activities
• Sequence Activities
• Estimate Activities Resources
• Estimate Activities Durations
• Develop Schedule
• Monitor and Evaluate Schedule
• Critical Path Method Vs PERT Vs Critical Chain
Method
• MS Project / Primavera
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
2. Project Constraints Management
• Project Cost Management involves
• Cost Estimating, Budgeting and Controlling
Costs
• Budget and Cash Flow Management
• PCM processes
• Activities Definition
• Define Measuring Units and Cost
Coverage
• Estimate Activities Resources
• Define Crews and CBS
• Determine Resources Basic Prices
• Estimate Activity Costs
 CPM: Body of Knowledge
• Develop Cash Flows and Budget
• Monitor and Evaluate Costs
• Cost Estimate Vs Project Cycle / Phases
• Refer Cost Estimating Slides and Cases
• The Project Management Body of Knowledge:
2. Project Constraints Management
• Project Quality Management involves
• Define & Plan Quality Requirements,
• Perform Quality Assurance & Control
Services
• Project (as temporary organization)
Management
• Product Quality Management
• Refer PMBoK
 CPM: Body of Knowledge
3. Project Resources Management
• Project Financial Management
• Involves the management of Project finance
• Project Finance involves Project cash flow &
liquidity management
• Determine Organization and Project healthiness
using Balance sheet, Income Statement and
Financial ratios
• Project Human Resources Management involves
• the management of Project personnel and
Labor workmanship and productivities
• Develop HR plan and Acquire, Manage and
Develop Project team
• Develop LBS, Define and Control Productivities
and Workmanship requirements
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
3. Project Resources Management
• Project Materials Management involves
• the management of Materials Quality,
Procurement & Handling
• Develop MBS, Define and Control material
quality
• Project Machineries and Plants Management
involves
• the management of Machineries and Plants
access, installations, calibrations,
productivities, costs and maintenance
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
4. Project Environment, Health and Safety
Management
• Project Environment involves
• Environment Impact Assessment, Resettlement
Action Plan and Fire Protection; and their
Implementation and Control
• Project Health involves
• Identifying health hazard work methods,
chemicals, working environments; Develop,
Implement and Control preventive methods
• Project Safety involves
• Identifying accident prone activities; Develop,
Implement and Control preventive methods
 CPM: Body of Knowledge
5. Project Integration Management
• Project Portfolio Management / Project - Parent
Relationships Management
• the management of Organizational
relationships and authorities; and Resources
Allocations among Programs and Projects
• Develop Organizational Breakdown
Structures (OBS), Implement and Control
OBS
• Project Communication Management
• the management of Project Management
Information System (PMIS)
• Plan communication requirements, Develop
communication mechanisms, Implement and
Control Communications
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
5. Project Integration Management
•Project Uncertainty and Change Management
•Project Risk Management
• Plan Risk Management, Identify Risks, Perform
Risk Analysis (Qualitative and / or Quantitative),
Develop and Plan Risk Responses (Scenario
Management), Monitor and Control Risks
• Project Configuration / Changes / Alterations
Management
• Develop and Plan Changes Management,
Monitor and Control Changes and
Consequential Impacts
 CPM: Body of Knowledge
•Includes Requirement Changes Management,
Project Completion Time and Project Cost
Variations Adjustment System
• The Project Management Body of Knowledge:
5. Project Integration Management
• Project Uncertainty and Change
Management
• Project Claim and Dispute Management
• Develop and Plan Claim and Dispute
Management, Monitor and Control Claims
and Disputes including their Consequential
Impacts
 Resource Management
Human Resource Management

• Human resource is probably the most important of

all the resources involved in the
Construction Industry.
• Usually Labor in the form of technical and
managerial personnel and work forces in various
trades and professions are essential to carryout
projects efficiently and effectively.
• Thus any construction manager shall have the
necessary knowledge on personnel management.
 Human Resource Management
• Any Human Resource management has to be
based on the existing Labor and other civil
codes related to worker’s right.
• Many construction projects face a challenge
when it comes to labor force management as
they are not aware of the prevailing laws and
decrees.
• The detail view of labor management will
presented as all construction projects and
construction firms are effective as long as there
employees are effective.
 Labor Management: -
• There are three types’ labor relations:
• Industrial relation: refers to all types of
relationships between the parties concerned within
industrial undertakings including construction,
agriculture, mining, commerce finance, transport
and other services
• Labor relations: refers to the relationship between
the labor union and management
• Employee relation: describes the relationship
between management and individual employee in
that light it is some times called “Employee-
employee relations.”
 Objective of Labor Relation Management
• Thus the main objectives of Labor Relation
management are:
• To bring about healthy relations between
employee and employers
• To minimize Industrial disputes
• To secure harmonious relations among all who
are concerned with production and operation
process
• To increase productivity of workforce
 Objective of Labor Relation Management

To give workers their desired place by

considering them as partners and
associating them with management
• To give the workers their due share in
profit, improve their working conditions
and their by eliminating the possibility
Industrial unrest such as strikes, lockout
etc.
 Managing the Labor Relations
Process
• The labor relation management process
has three phases.
• Union Organizing
• Collective Bargaining
• Labor Contract Administration
 Managing the Labor Relations
Process
Union Organizing
• In this phase the union organization
management confronts the issues involved
with union solicitation, election or
reelection conduct, and the certification
election.
 Managing the Labor Relations
Process
• Collective Bargaining
• Collective bargaining is the phase that
management representatives negotiate
with union representatives on terms of
workplace. The end result of collective
bargaining is the labor agreement or
contract.
• Mandatory Bargaining Topics: Wages,
Hours and Employment Conditions are
usually mandatory bargaining topics.
• Wages: - Base pay rates, Overtime pay rates,
Retirement benefits, Health benefits, Travel pay, and Pay
incentives.
• Hours: - Overtime, Holidays, Vacation, and Shifts.
• Employment Conditions: - Layoffs, Promotions,
Seniority provisions, Safety rules, Work rules, Grievance
procedures, Union shop, and Job descriptions.
• Collective bargaining requires negotiating skills such as
the understanding of conflict and conflict management.
The principles of negotiation include:
• Honesty: telling the truth
• Working out the essential elements of
disputes
• Not to inject considerations that are not
relevant to the disputes
• To have patience
• To get prepared to work hard and keeping
oneself physically fit
• To empathize
• To be flexible
Thank You!!