Construction Project

Administration
CEM - 801
INTRODUCTION
Dr. Khurram Iqbal Ahmad
Khan

Lecture 1
 Construction Administration
Construction is the process of preparing and forming
buildings and building systems. Construction starts with
planning, design, and financing and continues until the
structure is ready for occupancy.
Construction management or construction project
management is the overall planning, coordination, and
control of a construction process from beginning to
completion. Construction project management is aimed at
meeting a client's requirement in order to produce a
functionally and financially viable project.
 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, 4th. Ed., 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)
Construction Administration

BUDGET SCHEDULE QUALITY

 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 have, analogous to the
main project in which they are
integrated, their own scope, schedules,
costs, human resources, risks etc.

Subprojects are comprised of project team members and are headed by

subproject managers who, similar to the project manager, must have
excellent decision-making, communication and other requisite skills, and be
in a position to manage the implementation of the subproject work
effectively and efficiently.
 Subprojects
Example: Olympic Games
Human Resources Test Games and
Events
and Volunteers Trial Events

Venues, Facilities Sponsorship

Cultural Olympiad
Accommodation Management

Transport Pre-Games Training The Olympic Games is a

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

E X A M P L E S
A programme is basically a group Primary Education Promotion
of related projects managed in
a coordinated way to obtain Electrification
benefits and control not
available from managing them Immunization
individually

O F
Poverty Alleviation

Privatization

P R O G R A M M E S
Project A Project D Space Exploration

Programme Urban Regeneration

Project B Project E
X
Water Resource Development
Project C Project F
Weaponization
 Example of a Program

Project
Projectfor
forUpgrading
UpgradingEquipment
Equipment

A CAPITAL
INVESTMENT
PROGRAMME
Project
Projectfor
forTraining
TrainingPersonnel
Personnel

may Project
Projectfor
forExpanding
Expanding
comprise Production
ProductionLines
Lines
following
projects

Project
Projectfor
forAcquiring
AcquiringLarge-Scale
Large-Scale
Funding
Funding
 Programs & Projects: Similarities
 Programs and projects have goals and objectives which
define their purpose of existence
 Programs and projects have life-spans defining a starting
and ending point in time
 Programs and projects consume resources and necessarily
incur a cost
 Programs and projects require application of a methodo-
logy and must be managed properly to bolster their chances
of success
 Programs and projects aim at helping organisations achieve
their mission and adding value to them.
 Programs & Projects: Differences
 Programs may have multiple overarching goals whereas
projects have one prime goal
 A program has a comparatively longer life-span, and obviously
costs more than the combination of all the projects which
constitute it
 A program is inherently more complex than a constituting
project – it has a broader scope and may require extensive
coordination between its various constituting projects
 Whereas a project results in the creation of an output and is
then ended, a program 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 projects which an
organization is undertaking.
Projects usually differ in their
type, complexity, cost, time
requirement, risk level, priority,
etc. may be quite
Some portfolios
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?

a system of operations in the design, development and

production of something, whereby inherent in such a
process is a series of actions, changes, or operations that
bring about an end result
 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“
 Project Management Process Illustration
Process Maturity, Methodology,
PROCESS INPUTS Benchmarking and Optimization, PROCESS OUTPUTS
(Typical) Constraints, Templates, (Selected Examples)
Infrastructure, Policy and Cultural
Framework
Information Project Business Case

Technology
P R O C E SS S T E P S Opt. Project Portfolio Mix

Qualitative & Project Feasibility Report

Quantitative Tools

Outputs of Other
Processes
1 2 3 N Project Master Plan
(or Subsidiary Plans)

Customer Change
Material Inputs
Transformation of Inputs to Outputs Request

Revised Cost and

Stakeholder Interaction TIME & COST Schedule Baseline

Requests, Instructions Process Effectiveness and Efficiency Project Status Report

Quality of Process Inputs,

Given that the output of one project Project management uses
management process normally becomes input to processes extensively to
Knowledge, Competence,
produce “deliverables” (see
Experience, Insight, Ability, another, deficiencies in one or more processes small sample above). Some
Communication,
will consequently reverberate across the entire processes are quite complex
Cooperation, Coordination
process chain and have a high risk of error.
 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)
 What is Project Management?

„ ... unique process, consisting of a set of coordinated and

controlled activities with start and finish dates, undertaken
to achieve an objective conforming to specific require-
ments, including the constraints of time, cost and
resources“

[ISO 9001:2000]
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 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!
Essential Functions of Project Management

Using Project Management is no guarantee that the project will

be successful – i.e. that it achieves its goal within time and
allocated budget to the satisfaction of all stakeholders
concerned. What Project Management essentially does, though,
is offer a systematic but flexible framework which can increase
the chances of the project succeeding or, conversely, decrease
its chances of failing.
Essential Functions of Project Management

The intensity with which Project Management is applied

must be proportional to the need and complexity of that
project. Just as one wouldn’t commission a bazooka or a
flame thrower to kill a cockroach, it would be an error of
judgment to apply the full gamut of project management
processes and tools to a project which can probably be
successfully managed more effectively and efficiently
using a simpler and intuitive approach.
Essential Functions of Project Management

Project Management seeks at least to meet and preferably

to exceed - stakeholder needs (i.e. the identified
requirements) as well as stakeholder expectations (i.e.
unidentified requirements) from a given project within the
constraints of scope, cost, time and quality.

Project Management is an evolving area of knowledge

striving for continuous self-improvement over time.
Essential Functions of Project Management

Bottom Line

Project Management does not guarantee the success, But it

increases the likelihood of the success of the project.

Construction Project Management &
Construction Industry in Pakistan
 Construction

The way in which something is built or put together.

Construction Management or
Construction Project Management

- CPM is the overall planning, coordination, and

control of a project from beginning to completion.
- CPM is aimed at meeting a client's requirement in
order to produce a functionally and financially viable
project

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6
Skills Needed for Construction
Management

A construction manager should have the ability of:

public safety,
time management,
cost management,
quality management,
scope management
resource management,
risk management,
decision making,
mathematics,
working drawings 2
7
 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. As, the construction
industry is a collection of quite diverse segments and
products. 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.
 Major Construction Types

 The Construction Industry is composed of five sectors:

 Residential,

 Institutional and Commercial,

 Specialized Industrial,

 Infrastructure and Heavy Civil, and

 Environmental.
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 Major Construction Types

 The Construction Industry is composed of five sectors:

 A construction manager holds the same responsibilities and

completes the same processes in each sector.

 All that separates a construction manager in one sector

from one in another is the knowledge of the construction

site. This may include different types of equipment,

materials, subcontractors, and possibly locations. 3

0
 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 monetary and 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
either through bonds or 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.
 Environmental

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 sewers, waste
management, and clean water.

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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.
 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) 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.
 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 6 % growth in
2000’s only.

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

2008-09 showing a consistent trend.
National Economy and Construction in Pakistan
 Approval Process of Public Sector Projects in Pakistan

In Pakistan project identification, formulation, appraisal, approval,

implementation, monitoring and evaluation of development
projects is carried out by various line ministries, autonomous
bodies and departments at Federal as well as provincial level.

Various forums have been set up by the Government for approval

of projects at provincial and Federal levels and financial powers
for such approval have been delegated to ECNEC, CDWP,
DDWP and PDWP
 Approval Process of Public Sector Projects in Pakistan
(Continued…)

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)
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.
 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
 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

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)

6 For preparation of small projects costing less

Low cost PC-I Form
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
 Problems of Construction Industry in Pakistan
 Poor Estimation & management (Continued…)

 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.)
 Problems of Construction Industry in Pakistan
 Unforeseeable increase in fuel costs n power
(Continued…)

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
 Problems of Construction Industry in Pakistan
 Absence of timely payments to employees, sub
(Continued…)

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 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 …………