Construction Project

Management

INTRODUCTION

Lecture # 1a
Basic Terminology
 Basic Terminology

 Projects Many definitions for

 Subprojects these words have been
proposed.
 Programmes
 Portfolios Sample definitions along
 Processes with practical examples
are contained in the
 Project Management
following slides.
 What is a Project? (Definition #1)

A project is a temporary
endeavour undertaken
to create a unique product,
service, or result

(Guide to the Project Management – Body of Knowledge,

the Project Management Institute, 2008, p. 5)
 What is a Project? (Definition #2)

A project is a sequence of
unique, complex and connected
activities having one goal or
purpose that must be completed
by a specific time, within budget
and according to specification
(Robert Wysocki / Robert Beck Jr. / Daniel B. Crane:
Effective Project Management, John Wiley & Sons,
2002, p.65)
 What is a Project? (Definition #3)

A project is a complex,
nonroutine, one-time effort
limited by time, budget,
resources, and performance
specifications designed to
meet customer needs
(Clifford F. Gray / Erik W. Larson, Project Management:
The Managerial Process, 2. ed., p. 15)
 What is a Project? (Definition #4)

A project is an endeavour in which

human, material and financial resources
are organized in a novel way, to undertake
a unique scope of work of given
specification, within constraints of cost
and time, so as to achieve unitary,
beneficial change, through the delivery of
quantified and qualitative objectives
(J.R. Turner, The Handbook of Project-Based
Management: Improving Processes for Achieving Your
Strategic Objectives, Mcgraw Hill: New York, 1992)
 What is a Project? (Definition #5)

Projects are ad-hoc, resource-

consuming activities used to
implement organizational
strategies, achieve enterprise
goals and objectives, and
contribute to the realization of
the enterprise‘s mission
(David I. Cleland / Lewis R. Ireland, Project Management:
Design and Strategic Implementation, 4th ed., p. 10)
What are Subprojects?
Subprojects are smaller, more
manageable components of
larger, more complex projects

Subprojects have their own

goals and outputs or
deliverables which together
constitute the final
deliverable. Subprojects,
analogous to the main project
in which they are integrated,
have their own scope,
schedules, costs, human
resources, risks etc.
 Subprojects
Example: The Rio Olympic Games 2016

Human Resources Test Games and

Events
and Volunteers Trial Events

Venues, Facilities Sponsorship

Cultural Olympiad
Accommodation Management

Transport Pre-Games Training The Rio Olympic Games

2016 was a highly
Media Facilities complex project which
IT-Projects
and Coordination comprised several
distinct work areas, each
Opening and Closing
Telecommunications
Ceremonies
of which could be con-
sidered as subprojects,
Security in their own right, and
Public Relations
Arrangements which all had to be in-
tegrated and
Medical Care Financing coordinated within the
framework of the overall
Olympic project.
 What is a Programme?

A programme is basically Primary

Primary Education
Education Promotion
Promotion

E
EXXA
a group of related

AM
Electrification
Electrification

MP
projects managed in a

P LL E
coordinated way to Immunization
Immunization

ES
obtain benefits and

S
Poverty
Poverty Alleviation
Alleviation

O
control not available

O FF
from managing them Privatization
Privatization

P
PR
Project A individually Project

RO
Project D
D Space
Space Exploration
Exploration

OGGR
Programme Urban
Urban Regeneration
Regeneration

RA
Project
Project B
B Project E

AM
X

MM
Water
Water Resource
Resource Development
Development

ME
Project C Project F

ES
Weaponization
Weaponization

S
 Example of a Programme

Project
Projectfor
forUpgrading
UpgradingEquipment
Equipment
A CAPITAL
INVESTMENT
PROGRAMME FOR
UPGRD AND
Project
Projectfor
forTraining
TrainingPersonnel
Personnel
EXPANSION

may Project
Projectfor
forExpanding
Expanding
comprise Production
ProductionLines
Lines
following
projects

Project
Projectfor
forAcquiring
AcquiringLarge-Scale
Large-Scale
Funding
Funding
 Programmes & Projects: Similarities
 Programmes and projects have goals and objectives
which define their purpose of existence

 Programmes and projects have life-spans defining

a starting and ending point in time

 Programmes and projects consume resources and

necessarily incur a cost

 Programmes and projects require application of a

methodology and must be managed properly to
bolster their chances of success

 Programmes and projects aim at helping

organizations achieve their mission and adding
value to them.
 Programmes & Projects: Differences
X Programmes may have multiple overarching goals
whereas projects have one prime goal

X A programme has a comparatively longer life-span,

and obviously costs more than the combination of all
the projects which constitute it

X A programme is inherently more complex than a

constituting project – it has a broader scope and may
require extensive coordination between its various
constituting projects

X Whereas a project results in the creation of an output

and is then ended, a programme must integrate and
maintain the operationality of that output for a
specified period of time
The Project Portfolio
The project portfolio is the set of
programs and projects which an
organization is undertaking.
Projects usually differ in their
type, complexity, cost, time
requirement, risk level, priority,
etc.
Some portfolios may be quite
large, comprising dozens or
hundreds of single projects,and
consume a large chunk of an
organization‘s resources

The projects comprising the

portfolio may be in various stages
of initiation, planning, and
implementation

Portfolios are dynamic. Their

composition will change over
time as some projects end or are
prematurely terminated and new
projects are added
A major challenge for
organizations is to devise a
system for identifying, selecting
and monitoring projects which
are aligned with its mission,
goals and objectives and add
value to them
 What is a Process?

According to the Project Management Institute,

a process can be defined as:

„a set of interrelated actions and

activities that are performed to
achieve a prespecified set of
products, results, or services“
 What is a Project Management

Project management is the

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

(Guide to the Project Management – Body of Knowledge,

the Project Management Institute, 4th. Ed., 2008, p. 6)
Essential Functions of Project Management

Project Management helps organizations

tackle the pressure of change in environments –
global, economic, market, social, political,
regulatory, technological and others – which are
characterized by a high and increasing degree of
complexity, dynamism and uncertainty
Essential Functions of Project Management

Project Management offers a focused, systematic,

integrated and process-driven framework of
application of an organization’s resources for
effective and efficient realization of its projects, and
to achieve its goals, objectives and mission. It is,
hence, an important “strategic tool” indispensible
for an organization’s survival and growth.
 Essential Functions of Project Management

Project Management teaches “best practices” based

on years of experience with projects in diverse fields
across the globe. It should be kept in mind, though,
that what works well in one project situation may not
at all work well in another.

Use good judgement and always be cognizant of the

context-sensitivity of Project Management!
Construction Engineering and Management
Literature
A huge number of printed publications on the subject
of construction engineering and management exists.
This includes books, (research-based and non-
research based) articles, doctoral theses, white
papers, reports and case studies.

Most of the publications on construction

management are in English, but there is a growing
body of publications in other languages. Much of the
published material on construction engineering and
management can be downloaded from the internet
free of cost or commercially.
A number of construction engineering and
management research centres, institutes,
associations and consulting firms around the world
sponsor and publish research on construction
management themes.
 The Project Management Institute‘s
Publications
The PMI has published numerous very insightful books on
project management and its areas which are available from
its bookstore along with other publishers‘ books (samples
below):
 Construction Project
Management

Construction Project
Management & Construction
Industry in Pakistan
Lecture # 1b
 Construction

The way in which something is

built or put together.
 Major Construction Types
 Most people are generally interested in acquiring only a
specific type of constructed facility, however engineers
should be aware of the common industrial practices for
the type of construction pertinent to them.
 Some Engineers may be involved in the construction of
one type only once in a long while and tend to look for
short term advantages.
 However, many Engineers require periodic acquisition of
new construction of different types of facilities and/or
rehabilitation of existing facilities.
 In planning for various types of construction, the
methods of procuring professional services, awarding
construction contracts, and financing the constructed
facility can be quite different.
 Residential Housing Construction
Residential housing construction includes single-
family houses, multi-family dwellings, and high-
rise apartments.

Residential housing designs are usually

performed by architects and engineers, and the
construction executed by builders who hire
subcontractors for the structural, mechanical,
electrical and other specialty work. An exception
to this pattern is for single-family houses which
may be designed by the builders as well.
 Residential Housing Construction
The residential housing market is heavily affected by
general economic conditions, the fiscal policies of the
government & buying capacity of common man.

Often, a slight increase in total demand will cause a

substantial investment in construction, since many
housing projects can be started at different locations by
different individuals and developers at the same time.

Because of the relative ease of entry, at least at the lower

end of the market, many new builders are attracted to
the residential housing construction. Hence, this market
is highly competitive, with potentially high risks as well as
high rewards.
Institutional & Commercial Building Construction
Institutional and commercial building construction
encompasses a great variety of project types and sizes,
such as schools and universities, medical clinics and
hospitals, recreational facilities and sports stadiums,
retail chain stores and large shopping centers,
warehouses and light manufacturing plants, and
skyscrapers for offices and hotels.

The owners of such buildings may or may not be

familiar with construction industry practices, but they
usually are able to select competent professional
consultants and arrange the financing of the
constructed facilities themselves.
Institutional & Commercial Building Construction
Specialty architects and engineers are often engaged for
designing a specific type of building, while the builders
or general contractors undertaking such projects may
also be specialized in only that type of building.

Because of the higher costs and greater sophistication

of institutional and commercial buildings in comparison
with residential housing, this market segment is shared
by fewer competitors.
 Specialized Industrial Construction
Specialized industrial construction usually involves very
large scale projects with a high degree of technological
complexity, such as oil refineries, steel mills, chemical
processing plants and coal-fired or nuclear power
plants.

The owners usually are deeply involved in the

development of a project, and prefer to work with
designers-builders such that the total time for the
completion of the project can be shortened. They also
want to pick a team of designers and builders with
whom the owner has developed good working relations
over the years.
 Infrastructure & Heavy Construction
Infrastructure and heavy construction includes projects
such as dams, highways, mass transit systems, tunnels,
bridges, pipelines, housing societies, drainage systems
and sewage treatment plants.

Most of these projects are publicly owned and therefore

financed through taxes. This category of construction is
characterized by a high degree of mechanization, which
has gradually replaced some labor intensive operations.

The engineers and builders engaged in infrastructure

construction are usually highly specialized since each
segment of the market requires different types of skills.
 Structure of Construction Industry in Pakistan

So 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.
 Structure of Construction Industry in Pakistan

Construction work is accomplished by contractors who

vary widely in size and specialty.
Some contractors choose to concentrate on a particular
task or aspect of the construction project and are
therefore referred to as specialty contractors.
Others assume broader responsibility for a
comprehensive work package and are referred to as
prime contractors.
Commonly, prime contractors will subcontract specific
aspects of a project to the specialty contractors, forming
a contractual web of prime contractors and specialty
contractors.
 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) architect(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.
 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
 National Economy and Construction in Pakistan

Construction accounts for more than 2.5 percent of the

gross domestic product (GDP) of Pakistan. (2011)

Construction has seen a growth of as high as 28.4 % in

financial year 2009-10 in Pakistan, averaging 5 % growth
in 2016-17.

Construction has produced 6.7 % (making about 3.68

Million ) of total Jobs (54.92 Million) in Financial Year
2009-10.

Construction had produced about 6.6 % of total jobs in

year 2016-17 showing a consistent trend.
National Economy and Construction in Pakistan
 PC Performae
For the project cycle following six (6) proformae have
been designed by the Planning Commission.
No Performa Purpose
1 PC-I Form
Detailed project document

2 PC-II Form For preparation of pre-feasibility, feasibility

study,
conducting survey
3 For submission of quarterly
PC-III Form monitoring/progress
report of project
4 For submission of completion report of
PC-IV Form
project
5 For submission of evaluation
/implementation
PC-V Form report on annual basis for five years (helps
 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
 Problems of Construction Industry in Pakistan
 Poor Estimation & management (Continued…)

 Non observation of quality standards

 Non adherence and ignorance of 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.)
 Problems of Construction Industry in Pakistan
 Unforeseeable increase in fuel costs n (Continued…)
power
prices
 Increase in cost due to 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 in
slow progress & increased costs in lieu of
escalations
 Problems of Construction Industry in Pakistan
 Absence of timely payments to employees,(Continued…)

sub contractors etc. resulting in demotivation

and encouragement to use wrong means
 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 deliverables.
 Problems of Construction Industry in Pakistan
 Absence of proper risk management (Continued…)

 No standard formulation mechanism

 Mostly project people are JUST KILLING time
on site
 Absence of lesson learned mechanism
 AND …………
 End Note

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