cm training

8/7/2019 Cm Training

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Essentials of Project and

Construction ManagementLand is Life

Korea Land Corporation(KLC)

In association withHill International, Inc.

Hill International, Inc.

Strictly

Confidential


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THE PROJECT

Session 1


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The Project

A Discrete, Planned Undertaking

having

A Defined Scope

A Start and a Finish

The Project Approach Has

Evolved to be a Management

Buzzword

Origins in the EPC Industry


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The Project

Traditionally EPC industry was loose conglomerate of

designers, financiers, builders, suppliers, contractors, etc.

Complexity, computerization, and failures brought forwardthe need for a Project Approach

The ProjectApproach has now become the rule rather than

the exception

Project Management concept has evolved, defined as

The management of an organized set of activities towards

defined objectives using limited resources applying

specialized management structures and techniques.


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The Project Life Cycle


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All projects exhibit similar life cycles

Four primary seasons

Concept

Development

Implementation

Termination/Completion


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Concept Development Implementation Termination

L

e

v

e

l

o

f

E

f

f

o

r

t


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Gather data

Identify need

Establish

goals, objective

basic economics,

feasibility stake holders

risk level

strategy

potential team

Guesstimate Resources

Identify Alternatives

Present proposal

Obtain Approval for nextphase

Concept Phase


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Appoint Key Team

Members Conduct Studies

Develop ScopeBaseline

end product(s)

quality standards

resources

activities

Establish

master plan budget, cash flow

WBS

policies andprocedures

Assess risks

confirm justification

Present project brief

Obtain approval to

proceed

Development Phase


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Set Up Organization

Communications

Motivate Team

Detail Technical Req.'s

Establish Work packages

InformationControl Systems

Procure Goods and Services Execute Work Packages

Direct/Monitor/Forecast/Control:

Scope

Quality Time

Cost

Resolve Problems

Implementation Phase


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Finalize Products Review and Accept

Final Settlements

Transfer Product Responsibility

Evaluate Project

Document Results

Release/Redirect resources

Reassign Project Team

Termination Phase


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The Project Organization


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Various Forms of Project Organizational

Structures

Project-Based

Functional/Division-Based

Pure Matrix

Modified Matrix


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The Project-Based Organization

Design

Engineering

Procurement

Construction

Project 1Oil Refinery

Design

Engineering

Procurement

Construction

Project 2Office Building

Design

Engineering

Procurement

Construction

Project 3Hotel

The Big Cheese


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Advantages:Focus is on delivering the PROJECT

Better interface between Project Team

members

Teamwork

Better Communication Flow

One Stop Shopping for Management


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Disadvantages: Corporate Goals not always priority

Tunnel Vision

Redundant Staffing

Lack of Consistency, Procedures amongdifferent projects


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The Fu ti l r iz ti

Pr ct Y

Phas 3

Pr ct X

Phas 1

Mark ti

ivisi

Pr ct X

Phas 3

Pr cti

Ivisi

Pr ct Z

Acc ti

ivisi

The i heese


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The Functional Organization

Advantages:Consistency in Particular Disciplines/Areas

Corporate Goals are considered

Cross-utilization of Staff


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The Functional Organization

Disadvantages:Lack of focus on the PROJECT

No independent central coordinator for

managing the projectCorporate/Division Politics often dictate

Projects often suffer from inadequate or

untimely staffing


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Pur M trix r i ti

Refi er

r ject

H tel

r ject

Office

Buil i

i eeri

i i i

r ucti

i i i

ccounting

Di i ion

TheBig heese


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The Pure Matrix Organization

Advantages:Best of both worlds

Balance between corporate/division needs and

those of individual projects

Central coordinator(s)/Project Manager(s)

Ideal for multi-project organizations


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The Pure Matrix Organization

Disadvantages:Conflicts for resources among projects

Smaller projects suffer

Some staffing inefficiencies


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ModifiedMatri r anization

Refi er

Pr ect

ffice

Bu il i

i eeri

ivisi

Pr ucti

ivisi

Acc un ting

Divisi n

Marketing Pr ect

X

TheBig heese


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The Modified Matrix Organization

Advantages:

Tailor-made organization

Balance between corporate/division needs

and those of individual projects

Central coordinator(s)/Project Manager(s)

Ideal for multi-project organizations

Provision for Special or small projects


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The Modified Matrix Organization

Disadvantages:Better suited for managing multiple projects

Some staffing inefficiencies


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The ProjectTeam


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The ProjectTeam

Purpose of the Project Team

To effectively implement the objectives of the

Project within a set of restraints

Objectives can include Quality, Efficiency,

Environmental, Public FactorsRestraints are usually Cost, Schedule, Impact

on Environment, Impact on Public


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The ProjectTeam

Qualities of an Effective Project Team

Technical Qualifications Interpersonal Factors

Effective Organization

Effective

Communication

Adequate Authority and

Responsibility

KNOWTHE JOBTEAMWORK

PLAN, PLAN, PLAN

KNOWWHAT GOES ON

ABILITYTO GETTHE

JOB DONE


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The ProjectTeam

Typi al roject Team r anization Chart

Planning

Envir nmental

G vt Relati ns

ther

perati ns

Design/

Engineering

Pr ucti n/

Fabricati n

Construction/Installation

Commissioning

Cost

Schedule

Contracts/Legal

Qualit

Control

Document

Con trol

Project

Controls

Project Manager

wner/C lient


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The ProjectTeam

ACTIVE

Maintains Day toDay Control

Conflict with Project

Manager

Better Product ?

PASSIVE

Not involved in Dayto Day Affairs

Sets Overall

Direction

Lack of Control ?

The OwnerThe Owner


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The ProjectTeam

The Project ManagerThe Project Manager

The Conductor of the Project

Orchestra

Facilitator, Liaison, Go-Between

Responsibility = < Authority

Right Combination ofTechnical andInterpersonal Skills


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The ProjectTeam

Project ControlsProject Controls

Critical Tools of the Project Manager

Cost/ScheduleControl/Contracts/Legal

Quality Control

Document Control

Provide the Checks and Balances for the

Project

The Police


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The ProjectTeam

Other Project Team MembersOther Project Team Members

Design/Engineering Construction/Installation

Commissioning/Closeout

Operations

Ancillary Bodies


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PROGRAM, PROJECT, CONSTRUCTION

MANAGEMENTAND OVERSIGHT

Session 2


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What is Project Management?

Project Management for Design/

Construction can be defined as:

the process of professionalmanagement applied to the planning,

design and construction of a project

from inception to completion for the

purpose of controlling time, scope,cost and quality.


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What is Project Management?

The 4 core elements:

ScopeManagement

QualityManagement

TimeManagement

CostMana ement


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What Is Project Management ?

CORE 1

SCOPE MANAGEMENT:

Defining objectives

Determine activities necessary to achieve the

objectives

Monitor and control scope vs. objectives Quantify the resources

Manage (inevitable) changes


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What Is Project Management ?

CORE 2

QUALITY MANAGEMENT:

Establish the standards of qualityrequired to meet the investment

objectives;

Then manage the project to meet

these standards using Quality

Assurance and Quality Control.


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What is Project Management ?

CORE 3

TIME MANAGEMENT:

Plan the activities

Schedule the activities

Monitor and control actual Resolve impacts to

schedule/time


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CORE 4

COST MANAGEMENT:

Define investment

Prepare estimates

Establish budgets

Control actual vs. budget


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Project Management requires special skills to

achieve the four core elements

Managing People

Effective Communications

Resource Management

Risk Management

Technical Knowledge


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Managing People - because people are at the center of theproject;

Communications - providing leadership and direction;obtaining feedback and then adjusting actions to match actualevents;

Resource Management- obtaining the necessary resourcesand commitments in the most efficient manner;

Risk Management- avoiding or minimizing risks to projectsuccess by identifying quantifying the risk, allocating the riskto the project and managing it;

TechnicalKnowledge - because you cant manage what youdont understand.


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What Brought About Project Management?

The traditional separation of

Owner, Designer,

Contractor often caused conflicts because each

has different objectives;

Increased complexity of modern projects;

Owners desires for faster completion - time

equals money:


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What Brought About Project Management?

(continued)

Increased cost of resources Development of management

skills, tools and systems that could

be adapted to construction; Effective management found

to increase productivity


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What are the Benefits of Project Management?

Better planning of projects

More productive use of resources

Better control of risk

Improved communications and teamwork

MORE SUCCESSFUL PROJECTS!

On Time - Within Budget - Right Quality


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Why So Many Different Delivery Methods?

Different Needs ofOwners

Different Capabilities ofOwners

Nature and Complexity of Project

Amount ofTime for Project


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However, no matter what method you use,

every construction project requires the following:

Plan What You Want

Design What You Plan

Build the Design

MANAGEMENTOF THE ENTIRE PROCESS


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Traditional Approach

Planning DesignAdvertise

&AwardConstruction

Occupancy

Start-up

A rch itect/

En g ineer

S ubco ntr ac to r s

Gener a l

C o n tr ac to r

O w ne r


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Traditional Approach

Project Phases in sequence

Contractor does not participate in design

Complete design before construction

Owner must manage entire process

A/E and General Contractor independent

Owner has maximum control


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Clerk ofWorks/ A/E Administration


&AwardConstruction

Occupancy

Start-up

A rc h i t e c t -

E n g i n e e r

S u b c o n t r a c t o rV e n d o r s

G e n e r a l

C o n t r a c t o r

O w n e r


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Clerk ofWorks/ A/E Administration

Similar to traditional approach.

Difference is expanded role ofA/E

A/E performs basic administration,

inspection during construction

Owner manages all other aspects


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Design/Build

Planning Design

ConstructionOccupancy

Start-up

D e s ig n e r s S u b c o n t r a c t o r

V e n d o r s

D e s ig n - u i ld

C o n t r a c t o r

w n e r


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Design/Build

Single firm responsible for design andconstruction

Owner defines performance, D-B Contractordetermines design

Owner has less control, less responsibility

Design often controlled by construction, not

independent Usually faster than traditional

Allows construction expertise into design


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Project/Construction Management


&AwardConstruction

Occupancy

Start-up

Planning Design

Award Construction

Award Construction

Award Construction Occupancy

Start-up

OR


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ArchitectEngineer

Trade

Contractor

Trade

Contractor

TradeContractor

rojectConstruction

Manager

wner

ArchitectEngineer

Subcontractor

GeneralContractor

ConstructionManager

OwnerOR


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CM is Owners agent and performs manyresponsibilities forOwner

CM role is to manage design and/or construction

All contracts with Owner

Brings construction expertise to design

Permits fast-track projects

Allows multiple prime trade contractors, or onegeneral contractor with subcontractors.


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Program Management

Project A

Project B

Project C


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Program Management

Project "A " Project "

" Project "C"

Pro gr am

M a n a ger

A /E G .C C /M A /E G .C A / S G .C

w ner

Project "A" Projec t " "

Project"C"

A/E G.C C/M A.E G.C

A.E G.C

Program

Manager

wner


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Program Management

Management of multipleprojects

Single Management firm Provides consistent standards,

controls and reporting on allprojects

Effective management ofproject interfaces


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Project Management Oversight

(PMO)

Pr j

t " "

Pr j t " "Pr j t "A"

PM

sult t

Ar it t

E

i

r

G r l

tr

t r

Ar it t

E

i

rs

tr t rs/

Subcontr ctors

Proj ct/

onstruction

M nagers

Designer Subcontractor

Design- uil

ontractor

wner


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Project Management Oversight

(PMO) PMO is independent consultant toOwner

PMO focus is top management

PMO surveys, evaluates, reports on all aspects:

planning, design, construction

No direct responsibility to manage project

Can work with any other project delivery methods

Good at identifying potential problems, facilitating

resolutions Most effective for large projects

Most often used by Top management or funding agenciesnot directly involved, e.g. Banks, Governments


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Comparison of Delivery MethodsTraditional Clerk of Works

A/E

Administration

Design-

Build

Program Project/

Construction

Management

Project

Management

Oversight

Principal

Advantages

-Owner has

greatest control

-Designcomplete before

construction-Most commonsystem, familiar

to Owners, manycontract forms

available-Can be cheaper

because lessconsultants

-Similar to

traditional

-A/E assistsOwner to

manage, whichreduces Ownersresponsibility,

staff

-Fastest-

allows fast-

track-Owner deals

with 1 entity-Lessresponsibility

on Owner,less staff

-Lessadversarial

-Combinesconstructionexpertise intodesign

-Applies

management

expertise to project-PM/CM is

independent-focusis on projectssuccess

-Bringsconstruction

expertise to design-Allows fast-

tracking and multi-contracting-Gives Owner awide, flexible

range of services toselect-Less adversarial-Owner has lessresponsibility, less

staff-Independent

inspection and

quality control

Independent,

experienced

consultant to helpidentify, solve

problems-Keeps topmanagement

informed,involved

-Inexpensive

(1%)

-Assists allparties to

establish effectivecontrols,

reporting


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Comparison of Delivery Methods

Traditional Clerk of

Works A.EAdministra

tion

Design-Build Program

Project/Construction

Mana ement

Project

ManagementOversight

Principal

Dis-

advantages

-Slowest-Moreresponsibility on

Owner, requireslarger staff-Price not knowntill designcomplete-Most adversarial-competing

interests-No constructioninput to design-Difficult forlarge, multi-contractor projects

-Similar totraditional-Does not

provide fullmana ement

-A/Esinterestscan bebiased todesign

-Less controlby Owner-Limited

access todesign team-Design oftensubordinated toconstruction-Requirescareful

planning byOwner-Not as manyfirms who cando D.B

-Owner hasless control-Adds costs of

PM/CM

-May raisepotentialconflict with

Owner staff-Not alwayscost effectiveon smallerprojects


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Planning for the

Success of t

he Project

Session 3Session 3


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Planning is Essential

for aS

uccessful Project Planning defines and quantifies the

measure of success

Through planning, the project team defineshow it will organize to achieve this success

Planning defines and develops the tools that

are needed to manage to success Planning defines the risks and establishes

the measures to avoid or manage the risks


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Why Do We Need to Plan?

Studies and case histories have shown

planning to be the single most important

factor for successful projects Planning is done at the very start, when we

have the most control

Enables the project team to apply thebenefits of experience

Anticipates problems and their solutions


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Types of Planning

First step of planning is to identify the

project mission:

What is the project ?

Who is the project for (the market) ?

Why is the project being built ?

(short and long term projection)


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Three Types of Planning

Strategic planning

Operational planning / construction masterplan

Project scheduling


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Strategic Planning

High level selection of the

project objectives

Target investment level Projected date of

completion

Desired marketpenetration


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Operational Planning/Construction

Master Plan Analysis of available construction resources

within the company

The impact of the new projecton existing work load

Identification of the

required resources andwhere to be acquired

O l Pl /C


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Operational Planning/Construction

Master Plan (continued)

Organize and control major work activities

to meet project goals

Project budget/estimate Resource plan (people, material, systems)

Project schedule

Procurement plan (subcontracting, etc.)


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Elements to Effective Planning

of Construction Projects

Hills experience has shown seven (7) elements to

be necessary to construction project plans

(1) Clear Definition of Project Goals and Objectives

(2) Well Defined Project Organization

(3) ComprehensiveWork Breakdown Structure (WBS)

(4) AWritten Project Management Plan (PMP)

(5) Development of the NecessaryT

ools and Systems forManaging the Project

(6) AMaster Schedule

(7) An Effective Risk Management Program


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Project Goals & Objectives

(1) Clear Definition of the Project Goals

and Objectives

Project Goals and Objectives include:The desired function or output

The desired cost or investment

The desired duration to complete

The desired quality


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Project Goals & Objectives(continued)

The Goals and objectives define the

value(s) for the project The project values define the balance

between cost, schedule, quality and

function


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Project Organization

(2) Well Defined Project Organization Organizing the Project team early permits pro-active management and

establishes proper relationships of work and responsibilities.

The project Organization should define the members of the project

team and outside parties affecting the project, for example:

ProjectTeam Outside Parties

- Owner - Banks and Financing

- Operator - Insurers

- Designers - Surety/Bonding

- Contractors - Government and Regulatory

- Project Manager

- Consultants


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Project Organization

The Project Organization defines the roles

and responsibilities of the project team:

This includes: Scopes ofWork (SOW)

Responsibility/approval authority

Reporting and communication matrix Interfaces between the project team members


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Work Breakdown Structure

(3) Comprehensive Work Breakdown

Structure (WBS)

Definition: A tree of activities which organizes,defines and graphically displays the total work to

be accomplished in order to achieve the final

objectives of a project. Each level of the WBS

represents an increasing detailed definition of theproject activities. The WBS is a system for

subdividing a project into manageable work

packages.


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Work Breakdown Structure(continued)

Purpose ofWBS:

(1)Organizes the work into detailed packages

(2)Assures that all necessary activities areidentified and organized

(3)Shows relationships of work packages

(4)Defines how the cost and schedule are to be

developed and integrated

(5)Assigns responsibility for all project work


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What

Can a WBS

Do For You

Break the Scope

of Work Down

Into Know Tasks

Provide Resource

Planning Information

for Manager

Identify End Products

and

Deliverables

Allow Development

of Integrated

Costs and Schedules

Track Cost

and

Schedule

Assign Responsibility

for Work

Performance


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Work Breakdown Structure Example

AAB01

Design

AAB

Houses

AAA01

Design

AAA

Apartments

AA

Housing Complex

ABA

Below Grade

ABB

Levels 1-20

AB

Office Complex

AC

Retail Complex

Project ANew Center


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Project Management Plan

(4) AWritten Project Management Plan

(PMP)

A written document designed to cover allproject activities through project

completion.

Written by the Project Management Team Updated throughout project as elements of

the project change


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Project Management Plan (continued)

Example: Table of Contents of one of Hills PMP Manuals:

PART 1 Preliminary Design1 Introduction2 Summary

3 Objectives, Goal and C onstraints4 Assumptions/Anticipated Conditions5 O rganisation and Staffing6 Preliminary D esign Program7 Permit Requirement8 Project Control

9 AppendicesPART 2 FINAL DESIGN & CONSTRUCTION PHASE1 Assumptions/Anticipated Conditions2 Final Design & Construction Phase3 Scope of P rofessional Services4 Project Organisation & M anagement


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Tools & Systems

(5) Development of the Necessary Tools and Systems forManaging the Project

The Essential Tools for Managing the Project Cover:

Scope

Cost

Quality

Schedule

Documentation/Communication


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Tools & Systems

Scope (1) Design documents - drawings, specifications,conceptual, schematic, design development,

construction documents

(2) Contract Packaging

(3) ChangeOrder Management

(4) Configuration Management

(5) As-built documentation - drawings, warranties,

O&M Manuals


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Tools & Systems(continued)

Cost 1) Target Investment2) Budgets

3) Estimates4) Cost Control

5) Accounting

6) Commitments

7) Changes

8) Forecasting and Trending


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Tools & Systems (continued)

Quality 1) Quality Standards2) Quality Assurance Program

3) Regulatory Requirements e.g. CTMA

4) Quality Control and Inspection

5) Change Control6) Non-Conformance and Corrections

7) Record-keeping

Schedule 1) Planning2) Master Schedule

3) Detailed Schedules4) Elemental Schedules - Design, Construction,

Procurement, other

5) Updating and Reporting

6) Variation and Impact Evaluations

7) RiskAnalysis


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Tools & Systems (continued)

Communication/Documentation

1) Document Management

2) Logs and Reports e.g. - submittals, RFIs, ChangeOrders3) Management Information System

4) Meetings

5) Procedures Manual

6) Approval and Reporting Matrices


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MasterSchedule

(6) A Master Schedule

Summary of all major activities to achieve project

completion

Defines overall time for project and the duration

for each major activity

Confirms the feasibility of the overall project

duration Defines major milestones

Identifies major interfaces with outside entities


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Risk Management Program

(7) An Effective Risk Management Program

Purpose of Risk Management Program:

Identify and evaluate risks to project To plan how to handle and manage each risk

To implement the plan and to monitor all potential

risks

Identification and Evaluation of Risks should cover: technical risks

cost, financial & Schedule

political, governmental and regulatory


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Risk Management Program(continued)

Plan How to Handle and Manage Each Risk

Techniques for risk management

Avoid the riskby taking measures to eliminate the risk:

e.g. pre-qualification of contractors Reduce the riskby taking measure to continually re-evaluate the

risk and developing fall back positions:

e.g. contingency planning and allowances

Retain the risk- accept the consequences if the risk occurs

Transfer the risk- sharing or completely transferring the risk toanother party.

e.g. specifying the risk in the construction contract and making the

contractor responsible

e.g. obtaining insurance to protect if the risk occurs

e.g. performance bonds.

Creating and Implementing


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g p g

PM/CMTools

Session 4



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g p g

PM/CMTools

Successful management is like magic, its easy

if you have the tools. All you need are:

Work Break Down Structure (WBS)

Design/Scope Management

Cost management

Schedule

Quality control

Document control

Field management control



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g p g

PM/CMTools

Work Break Down Structure (WBS)

Task-oriented family tree which organizes,

defines and graphically displays project Descending levels represent detailed

definition of the objectives

Relates elements of work to each other andend product



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g p g

PM/CMTools

WBS (continued)

The WBS allows for the following:

Estimates, costs, budget, schedule can beestablished from detail level (bottom-up)

The total program can be described as a

summation of subdivided elements/tasks Potential problems are detected at low level

early enough to be pro-active



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g p g

PM/CMTools

Work Breakdo n tructure Exam le

B102 ite

ork

B103 Concrete

B104

asonry

B105 etals

B106Wood&Plasitic

B107 Thermal& ! oisture Protec

B108 Doors&Windo"

s

B109 Finishes

B110 # ecialities

B111 Equi # ment

B112 Furnishings

B113 # ecial construction

B114 Con$

eying ystem

B115 ! echanical

B116 Electrical

B102-16Construction Trates

B1011 Conce # t Design

B1012 Design De$

elo# ment

B1013

chematic

B1014 Construction Dra

ings

B101DE% I & N

B1Villa 1

AAB2Villa 2

AABVillas

AAAAppartmens

AAHousing Complex

ABABelo

' rade

ABBLe

$

els 1-20

ABOffice Complex

AC hopping all

Project ANe

Center



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g p g

PM/CMTools


At each level of design a validation

estimate needs to be conducted andif higher than budget re-design

Value engineering to be part of

design team during all design

stages Design to be frozen prior to

contractor award



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g p g

PM/CMTools

Design/Scope Management (continued)

A common danger for cost overruns arises throughscope

creepsand changes after the design has been frozen and

released to the contractor. These changes need to betraceable and tightly controlled.

Changes after design is frozen must be:

Estimated separately

Analyzed for schedule impact

Approved by Management

Negotiated and settled with contractor ASAP



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g p g

PM/CMTools

What is Cost Management?

Cost management is a function which

includes the processes that are requiredto maintain effective financial control

of projects:

Estimating, Budgeting and Cost control

Scheduling, Evaluating and Monitoring Analyzing and Adjusting

Reporting



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g p g

PM/CMTools

Estimating

Methods of estimating:

Detailed bottom-up estimateConceptual judgmental estimate

Parametric historical cost parameters

Firm Quotes from potential vendors



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g p g

PM/CMTools

Estimating (continued)

The estimating effort should be continuous

on the project. Recommended levels are: Conceptual estimate

Schematic Estimate

Design Development estimate

Construction drawing estimate

Field Changes and Change Order Estimates



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PM/CMTools


A contingency provision is to be included in

the various estimates, due to the percentageof accuracy available at each level of design

Concept/Feasibility 25%-40%

Obtain project Funding 15%-25% Capital cost/budget 10%-15%

Definitive/In field 7%-5%



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PM/CMTools


By establishing a contingency the project

team has the ability to manage problemsand changes without alarming higher

management.

Contingency usage monitoring is a goodindication on the performance of the project

team by Management.



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PM/CMTools

Budgeting

The project budget sets a realistic projection for

material, labor, subcontractor and indirect costs on thetotal project.

A poor estimate/budget leads to an unrealistic budget

causing cost overruns and loss of control.

The project budget is the baseline for cost control



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PM/CMTools

Budgeting (continued)

At the capital stage the budget has to be

frozen and serves as baseline with costs andfuture commitments.

Budget breakdown in accordance with the

WBS

Contingency usage is tracked and managed



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PM/CMTools

Schedule

In construction projects there are usually two

schedules: Owners schedule - macro schedule stressing the

strategic planning goals including design

Contractors schedule - fully detailed operational

schedule covering all the construction work

activities within the owners end date



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107

PM/CMTools

Schedule (continued)

Two scheduling methods

Bar Charts

Logic-diagram-based schedules

Both have advantages and disadvantages

and are sometimes interchangeable


/C l


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108

PM/CMTools


Bar charts

Advantages:

Inexpensive and simple to prepare

Easy to read and update

Disadvantages: Inability to show enough detail to cover all Activities onlarge projects

Do not show the interrelation of activities



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109

PM/CMTools


Logic-diagram-based schedules

AdvantagesReveals interdependence of activities

Calculates project completion dates

Enables what if analysesHighlights critical activities

Evaluates performance



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110

PM/CMTools


The logic diagramed basedschedule is the right tool as the

project schedule

Provides the ability to organize

schedule at the lowest level ofWBS



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111

PM/CMTools


Contractor schedule can be used to

electronically update the Owners schedulebased on approved completion for each

period

The ability to cost load the schedule andproduce earned value analysis

Allows management of project float



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112

PM/CMTools

Quality Control

Conformance to requirements

Doing it right the first time

Fitness for the purpose



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113

PM/CMTools

Quality Control Plan includes

Quality assurance

Quality Control

Quality Management



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114

PM/CMTools

Quality Control Plan - Quality Assurance

QA procedures

Quality Systems Verification

Identify& analyze issue

Audits/observation

Rework reporting

Corrective action

Training



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115

PM/CMTools

Quality Control Plan - Quality Control

Tests/inspection plan

Design/technical reviews

Fabrication & installation inspection

Material control and inspection

Calibration control

Contractor & subcontractor control



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116

PM/CMTools

Quality Control Plan - Quality Management

Quality based client relations

Quality skills training Project execution strategy

Work process improvement

Obstacle identification & removal

Project information feedback



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117

PM/CMTools

Document Control

Integrated system based on the WBS for all

documents of the project. Organized filling facilitates team to work

Engineering drawing tracking

Correspondence tracking One stop shop for historical data



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118

PM/CMTools

Field Management Control

All field changes initiated by owner must be

approved in writing by the PM/CM; noverbal authorization

Contractor field change request must be

approved by PM/CM prior to initiation To avoid disputes all field changes should

be negotiated bi-monthly


/ l


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119

PM/CMTools

OPEN DOOR POLICY

Communication failure can

neutralize all tools, no matter

how well they are established

Common reasons are:

negative mode, not accepting

other peoples ideas, impatient,assuming others have the same

information, reacting without

analyzing the facts


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120

Th

e Project Manager

Session 5

Th P j M


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121

The Project Manager

What Makes a Successful Project Manager?

Must cross organizational boundaries

Must develop the Project Team into a cohesivegroup

Combination of technical, administrative and

people skills

Must create environment which motivatespeople to deliver a quality project

Th P j M


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122

The Project Manager

Project Managers Directive:

Accomplish what cannot be done;

Predict the Unknown;Develop a Plan to Address it;

Implement the Plan

With People who do not report to you

And with resources which you cant control

In an unreasonable time frame

And for an unreasonable budget

Th P j t M


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123

The Project Manager

Functional/Matrix Organization Balance of Power

Project

Organization

Functional

Organization

Project Manager Influence

Functional Manager Influence

Balance of

Power/

Influence

in Decision

Making

Strong Matrix Weak Matrix

Th P j t M


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124

The Project Manager

Skills of the Ideal Project Manager (1)

Team-Building

Empathy

Motivation

Leadership

Sets Examples

Energetic Big Picture Vision

Delegates

Ethics/Morals

Th P j t M


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125

The Project Manager


Communication

Listening

Understanding

Persuasion

Planning/Organizing

Flexibility Common Sense

Positive Approach

Goal-Setting

Th P j t M


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126

The Project Manager


Problem Solving Skills

Analyzing and Problem Solving

Negotiating

Conflict Management

Removing Obstacles

Creativity

T

echnical Skills Expertise/Experience/Credibility

Current Knowledge

Technical Problem Solving

Th P j t M


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127

The Project Manager


Coping Skills

Persistence

Patience

Crisis Handling

Stress Management

Estimation/SchedulingAdministration

Computer Skills

Th P j t M


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128

The Project Manager

Responsibilities of the Project Manager (1)Organize, coordinate and direct the Project

Resolve Conflicts between team members

Lead the Project Team in developing the PMP, the

Quality Assurance Guidelines, Design Standards and

Requirements, etc.

Communicate project goals and objectives to the

Project Team

Ensure requirements ofOwner are met

Th P j t M


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129

The Project Manager

Responsibilities of the Project Manager (2)

Lead the Project in:

Acquiring Resources

Selecting Team Members

Developing user requirements

Defining Scope and Quality

Defining Budgets

Determining Schedules

Maintain control to assure the project is completed in

accordance with the requirements set forth

The Project Manager


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130

The Project Manager

Responsibilities of the Project Manager (3)

Report project status on a regular basis

Ensure the completeness and adequacy of project

records and documentation Ensure that appropriate QA/QC procedures are set

in place and applied

Specify testing requirements and ensure

appropriate tests are carried out so that the projectmeets design requirements

Maintain successful ongoing operations and

maintenance

The Project Manager


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131

The Project Manager

Must be an Effective

Communicator Most of the working hours of a

Project Manager will be spent in

some type of communicatoractivity

Conferences, meetings, writing,

memoranda, issuing and reading

reports, communicating with team

members, communicating withmanagement, talking to

customers/clients, talking with

contractors, subcontractors, and

suppliers

R i i A T bl d P j t


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132

Reviving A Troubled Project

Session 6

R i i T bl d P j t


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133

Reviving a Troubled Project

I. WARNING SIGNS

II. FINDING THE REASONS

III. DETERMINING ALTERNATIVES

IV. IMPLEMENTING THE REVIVAL PLAN

V. REACTION AND FEEDBACK

Ad d l d


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134

AdvancedTools and

Techniques in ConstructionManagement


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135

Value Engineering

Value Engineering


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136

Value Engineering

Studies have shown $4.40 of

savings for every $1.00 spent onValue Engineering

Value Engineering can achieve 10-

20% cost savings while

maintaining value objectives

VE Potential Cost Savings

Value Engineering


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137

Value Engineering

Resultant VE Cost Savings over Project Life

Potential

for

Savings

from

Value

Engineering

Time

Schematic

Design

Design

Development

ContractDocuments

Construction


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138

Partnering

Partnering


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139

Partnering

New term based on old concept

Established 1988 by Army Corps of Engineers

Each of the contractual parties respects the rightsand responsibilities of the other(s)

Recognizes that every contract has an implied

good faith covenant

Does not change the terms of the signed contract

Partnering


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140

Partnering

Army Corps of Engineers Definition

...the creation of a relationship between Owner and Contractor

that promotes achievement of mutual and beneficial goals.

Construction Industry Institute Definition ...a long term commitment between two or more organizations for

the purpose of achieving specific business objectives by

maximizing the effectiveness of each participants resources. The

relationship is based upon trust, dedication to common goals and

understanding each others individual expectations and values.

Expected benefits include improved efficiencies and cost

effectiveness, increased opportunity for innovation and continuous

improvement of quality products and services.

Eliminate Us vs.. Them attitude.

Partnering


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141

Partnering

Keys to Success

Concept

Begin early in process

Establish mutual recognizance

Select Independent facilitator

Commitment from Corporate Management Continuously evaluate

Properly allocate risk

Partnering Workshop


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142

PartneringWorkshop

Partnering Workshop

Signed Charter to Guide the Partnership

Written Mission Statement and Objectives Specific Program to Measure Objectives

Action Plan for Key Problems

Establish Dispute Resolution Process

Address Individual Roles and Concerns

Team Evaluation Process with Facilitator

Partnering


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143

Partnering

Goals of Partnering

On Time Completion

Completion within

Owner and Contractor budgets

Deliver required quality or better

Establish realistic, achievable schedule

Reduce paperwork

Avoid litigation or arbitration

Eliminate lost/unproductive time

Eliminate accidents

Partnering


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144

Partnering

Benefits of Partnering

Owner

Reduced Exposure to Litigation

Better Quality

Lower Risk of Cost Overruns and Delays

Contractor

Reduced Exposure to Litigation

Increased Productivity

Lower Risk of Cost Overruns and Delays

Partnering


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145

Partnering

Essential Elements of Partnering

Recapitulation

Commitment Equity

Trust

Communication

FOR EXAMPLE


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CLARKLEISURE HILLS

RESIDENCE & RESORT COMPLEX

DEVELOPMENT PLAN

Our Approach & Process

Things to Know

The Key Factor

Management StructureThe Palm Jebel Ali / The Palm Jumeriah/ The world Islands

Hil l is managing design and construction of Palm Islands, two man-made,palm-shaped islands in Dubai, UAE. The first is land, Palm Jumeirah, willinclude 2,400 homes, 30 hotels, aquatic themed entertainment and touristattractions. The larger island, Palm Jebel Ali, will include 3,200 homes, 40hetels and commercial as well as retail properties.

HILL

Hill International

The Project Team


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- -

-

- Masterplan - /// - - VE -

- Proposal E aluation- Technical E aluation- Cost E aluation- -

-

-

-

-

The Conductor ofthe Project Orchestra

Facilitator, Liaison,Go-Between

Responsibility = < Authority

RightCombination ofTechnicalandInterpersonal Skills

The ProjectTeam

-

The Project


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Hill International + Hill Korea

Hill International + Hill Korea CM

(,,,, )

- ,, ,

(Value Engineering),

,,,,

, ,

,

,, (O&M)

The Project

-

AdvancedTools andTechniquesin Construction Management


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in Construction Management

- (I)

( /) ( /)

(QPMS) (QPMS)

VE VE

O&M (Operation & Maintenance)O&M (Operation & Maintenance)



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-

- - - / - / - / - -

- - Nego

- - - - - - - -

- - - -

- / / - Quality Control


- (II)



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1) 2)

1)

1) Master Schedule 2)

1)

2)

3) VE ()4)

1) P.Q 2) Nego3)

1) 2) 3)

1) 2) 3)

1) 2) 3) 4)

1) 2)

3) (O&M Manual )


-

Design/ Build


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Design/ Build

70%

100%

.

(20/80 : 20% 80% )

/ /

, , ,

, , ,

(, , )

,

,

Life Cycle Cost, Facility Management System

Creating andImplementing

PM/CM Tools


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PM/CMTools

: ,

(/ / / )

(/ ISO/ / )

PQ ()

/

(/, / )

, , , , /


PM/CM Tools


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/ /

/

(/ / / etc)

/

Procurement

/ / / / /

/

(/ / / / / )

PM/CMTools


PM/CM Tools


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Master Schedule Mile Stone

/ Long Lead Item

/

EVMS SYSTEM

(/ :

Earned Value Management System)

4 / /

Point

,

,

Fast Track

Fast Track

Long-Lead Item

Fast Track

Schedule Two scheduling methods

Bar Charts Logic-diagram-based schedules

Both have advantages and

Disadvantages and are sometimesinterchangeable

PM/CMTools


PM/CM Tools


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/

AS-Built ,

, Sample, Spare Part List, O&M Manual

(, ,

,

, )

System

A/S SYSTEM

SYS

Feed-Back System

A/S SYSTEM

Zone

/ Data

/ System

System (Operation & Maintenance SYS)

FMS (Facility Management System)

, ,

, , / , , ,

, (Total Cost) /

LCC (Life Cycle Cost: )

PM/CMTools


PM/CM Tools


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PM/CMTools

Successful management is like magic,Its easy if you have the tools.

All you need are

PM & CM


Cost management

Schedule

Quality control

Document control

Field management control

Creating andImplement PM/CMTools


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OPEN DOOR POLICY Communication failure can

neutralize all tools, nomatter how well they areestablished

Common reasons are:

negative mode, not

accepting other peoplesideas, impatient, assumingothers have the sameinformation, reactingwithout analyzing the facts

PM/ CM PM/ CM

[Professional Ethic]

(Engineering Ethic)

()

(Workmanship]

////


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THE KEY FACTOR


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THE TECHNICAL BIG FIVE

1. Risk Management

2. Project Procedures

3. Project Control ystems

4. uality Management

5.HSE Management


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THE COMMERCIAL BIG TWO

Often undertaken in cooperation and coordination ith the Cost

Consultant and the Employers Representati e are the follo ing

T o further PROGRAMMANAGEMENT elements:

6. Contract Packaging, Drafting and Management

7. Claims Avoidance orManagement


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Profile of Project Director


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Name : Mr.Albert Cabellon (Nationality: USA)

Current position: Project manager,Hill International,Philippines

Education: California Polytechnic State University,San Luis Obispo (B.Sc. InArchitecture)

Career Highlight: 30 years in Project Management, Ne to n,High-rise Mixed-useDevelopment,Hospitality,Shopping Centers

Projects:

- UAE: 60story x 9buildings Mixed-use Development (Hotel, Residental,Office to ers)(US$2.5 billion)/ PM

- USA: 700 unit Condominium To ers, t o 40 story to er(US$300Million)/

PMInternational Cruise Terminal,San Francisco / PMT o 5-star Hotel and Golf Resorts,717Acres (US$120Million)/5 PMMega scale Po er Center(Shopping Malls)/Ne To n Development /


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