CHAPTER

1
INTRODUCTION
WHAT IS A PROJECT?

It is an effort to produce the results expected from the requesting party. It can be

a design only, a construction only, or a combination of both. It is comprised of three

components:

1. Scope – the work to be done

2. Budget – this is the cost.

3. Schedule – the logical sequence and timeframe of the work

The quality of the project

must meet the owner's

satisfaction. As illustrated in the

figure, it is an integral part of

project management. It is like an

equilateral triangle representing

the fundamental principle of

project management: the balance between scope, budget, and schedule. It clearly shows

that if there's a certain amount of work to be done for any given project, there is an

associated cost and schedule for the work produced. Any increase in the scope of work

will require a corresponding increase in the budget and schedule. Conversely, any

reduction in the scope results in a corresponding decrease in the budget and schedule.

This principle applies to all three components of a project.

In order to reduce many problems in line with the project, the three components of

the project must be linked together, since they affect the other components, both

individually and collectively. Since the scope of the project is the work to be carried out,
it should be the first task in the development phase, either the budget or the timeframe

prior to the development phase. Experienced project managers agree that the budget and

the schedule derive from the scope of the project. Too often, some of the top management

states that there must be a budget or a timeline and then ask their team about the project's

scope and; it is impractical project management. It is his/her duty to ensure that the project

scope, budget, and schedule are properly linked together.

Budget is one of the fundamental components

of each project because it defines how much money

the owner will spend for the project and how much

money the designer and contractor will allocate to

compensate for the scope.

The schedule is the final product of the definition

of scope, budgeting, and planning and forms the base on which all activities are

measured. Project monitoring and control cannot be carried out without a good plan and

schedule.

Quality is an element that is integrated into and between all parts of the project:

scope, budget, and schedule. It satisfies the needs and satisfaction of the ultimate end-

user of the project, the owner. An attitude of quality must be instilled in everyone and

perpetuated throughout the working environment.

The attitude should not be "what can we do to pass quality

control or final inspection?' Instead, it should be "what can we do to

improve our work and what is the best way we can furnish a project

that meets the needs and satisfaction of the owner?"

Each of the three main parties to the project has a role to play in the various phases of

design and construction.

The owner is responsible for the definition of the operational criteria for the

completed project. Owners also need to determine their level of involvement in the

project. The owner is also responsible for setting the parameters for a total cost, cost

payment, major milestones, and the date of completion of the project.

The designer is responsible for the design alternatives, calculations, drawings, and

specifications that meet the owner's needs. Besides, there may be other duties delegated

to the designer by the owner, such as on-site or periodic inspection, review of shop

drawings, and, in some cases, acquisition of land and permits. The designer must

produce a project design that complies with all federal, state, and local codes, standards,

and environmental and safety regulations. The design budget should be prepared along

with a design schedule that matches the owner's needs. The design schedule should be

directly linked to the construction schedule so that the construction contractor can

complete the project on the owner's expected time.

The construction contractor is responsible for the performance of all work in

accordance with the contract documents prepared by the designer. This includes the

furnishing of all the work, equipment, materials, and know-how necessary for the

construction of the project. The construction phase is important because most of the

project budget is spent during construction. In addition, the operation and maintenance

of the completed project are highly dependent on the quality of the work performed during
the construction phase. The contractor must prepare an accurate project estimate,

develop a realistic construction schedule and establish an effective cost, schedule, and

quality control system for the project.

WHO DOES THE PROJECT MANAGER WORK FOR?

The project manager works for the project, he or she may be employed by the

owner, the designer, or the contractor. For large projects, a team consisting of a project

manager for the owner, the designer, and the contractor shall form a group of people who

work together to manage the design, procurement, and construction activities. For smaller

projects, the owner may delegate the overall responsibility for project management to a

design consultant or professional construction manager and assign the owner's

representative as a liaison to represent the owner's interest.

PROJECT MANAGEMENT

“The art and science of coordinating

people, equipment, materials, money. and

schedules to complete a specified project

on time and within approved cost.”

A large part of the project manager's

work is to organize and work with people to

identify problems and find solutions to problems. In addition to being organized and a

problem solver, the manager also needs to work well with people. Its people who can

create ideas, to identify and solve problems, to communicate, and to get the work done.

Because of this, people are the project manager's most important resource. The project
manager must therefore develop a good working relationship with the people in order to

make the most of their abilities.

The manager must be a motivated accomplisher with a "can do" attitude.

Throughout the project, there are numerous obstacles that need to be overcome. The

manager must have a perspective on the ability to predict methods of achieving results.

The drive to achieve results must always be there. This attitude must also be instilled in

all those involved in the project.

Having good communication skills is a must for managers. Project management

requires coordination between people and information. Coordination is achieved by

effective communication. Most of the problems associated with project management can

be traced back to poor communications. It is the responsibility of the project manager to

be a good communicator and also to ensure that people involved in the project

communicate with one another.

TYPES OF MANAGEMENT

Management may be divided into at least two different types:

1. Functional management also referred to as discipline management, involves

coordinating repeat work of a similar nature by the same people. Examples are the

management of the design engineering, surveying, estimating, or purchasing

department.

2. Project management is the coordination of one-time work by a team of people who

have often never worked together before. Examples are the management of the

design and construction of a substation, a shopping center, a refinery, or a water

treatment plant.
 Most individuals start their careers in a disciplined management environment.

Upon graduation from college, a person generally takes up a position in a discipline

closely linked to his or her formal education. Typical examples include design engineers,

estimators, planners, or surveyors. The work environment focuses on how and who will

perform the work, on the provision of technical expertise for a single discipline.

Professional growth aims to become a specialist in a specific technical field.

The project management

requires a multi-disciplinary focus to

coordinate the overall needs of the

project, relying on others to provide

technical expertise. The project

manager must be able to delegate

authority and responsibility to others

and must continue to focus on the process of linking disciplines. Project managers cannot

become overly involved in the detailed tasks or take over the work in which they are

trained but should focus on the objectives of the project.

A fundamental principle of project management is that the project should be

organized around the work to be done. The work environment focuses on:

1. what intends to be done

2. when it requires to be done and

3. the projected cost

The successful completion of the project depends on the ability of the project

manager to coordinate the work of a team of specialists who have the technical capacity
to perform the work. Table 1-1 shows the relationship between project management and

discipline management.

FUNCTIONS OF MANAGEMENT

Management is often summarized in five principal functions: planning, organizing,

staffing, directing, and controlling. Although these management functions have been

developed and used by business

managers, they apply equally to project

management.

Planning is the formulation of a

course of action to guide the completion

of the project. It begins at the beginning of the project, with the scope of the work, and

continues throughout the life of the project. Successful project planning is best achieved

through the participation of all parties involved in the project.

Organizing is the organization of resources in a systematic way that fits into the

project plan. A project must be organized around the work to be done. The work to be

carried out must be broken down into manageable units, which can be defined and
measured. The project's work breakdown structure is a multi-level system consisting of

tasks, subtasks, and work packages.

Staffing is the selection of individuals

who have the expertise to produce a job, and

the people assigned to the project team

influence every part of the project. Most

managers will readily agree that people are the

most significant resource in a project. People

provide knowledge for the design, coordination, and construction of the project.

Directing is a guide to the work required to complete a project. Project staff, who

provide diverse technical expertise, must develop into an effective team. Although each

person provides work in his or her area of expertise, the work that each person carries

out must be collectively directed towards an established effort and direction.

Controlling is the progress of a framework for measuring, reporting, and predicting

variations in project scope, budget, and schedule. The objective of project control is to

identify and predict project deviations so that corrective action can be taken. Project

control requires continuous reporting of information in a timely manner so that

management can respond during the project rather than afterward. It is often the most

demanding task of project management.

KEY CONCEPTS OF PROJECT MANAGEMENT

Although each project is special, there are main principles that the project manager

may use to plan and direct the completion of the project. A list of key concepts can be
found in Table 1-2. It is the responsibility of the project manager to deal with each of these

principles from the outset of the project and through each process to completion.

ROLE OF THE PROJECT MANAGER

The role of a project manager is to manage the project team, and therefore to

ensure the quality of the project within time, budget, and scope constraints. A project is a

single, non-repetitive enterprise, and because each project is unique, its outcome is

unpredictable with utter confidence. Despite all the risks and difficulties faced, the project

manager must obtain the final results. Progress depends on executing the tasks needed
in a logical sequence, making

the most of the resources

available. The project manager

must conduct five principal

management functions:

planning, organizing, staffing,

directing, and controlling.

Project preparation is at the core of successful project management. The project

manager must understand that he or she is responsible for project planning, and it must

be started early on in the project (before starting any work). Planning is a continuous

process over the life of the project and, to be successful, it should be carried out with

feedback from the people involved in the project. The planning strategies and tools are

well known. Table 1-3 offers instructions for preparation.

map should display the required lines of contact between the people working on the

project. Plan team members need to know the authority of every other team member to

minimize miscommunication and rework. Organized practice leads to achievements and

a sense of pride in the work that has been achieved. Unorganized work is leading to

modification. Rework leads to mistakes, low morale, and dissatisfied team members.

Table 1-4 points out the association rules.

Project staffing is critical because people are making things happen. Most

individuals would readily accept that people are the most valuable resource for a project.

They are the ones who develop concepts, solve problems, generate prototypes, operate

equipment, and install materials for the manufacture of the finished product. Because

each project is unique, the project manager must consider the work to be performed by

each discipline. The project manager can then collaborate with his or her superiors and

the required disciplinary managers to select the individuals who are best suited to work

on the project. Table 1-5 sets out requirements for project staffing.
 The project manager must direct the overall project and act as an effective leader

in managing all aspects of the project. These include a close working partnership between

the project manager and the project staff to create an efficient working team. Since a

majority of project team members are allocated (loaned) to the project by their discipline

(home) departments, the project manager must promote the creation of project loyalty by

staff while retaining loyalty to their home departments. The project manager must be a

strong communicator and must be able to communicate with people at all levels of

authority. The project manager must be able to delegate authority and responsibility to

others and focus on connecting disciplines. He or she cannot be too involved in the

detailed activities but should be the team leader to fulfill the goals of the project. Table 1-

6 sets out criteria for project management.

of the entire project team. The project manager must set up a monitoring system to

anticipate and monitor deviations on a timely basis, so that corrective steps can be taken

before more severe problems arise. Many team members resist being controlled; thus,

the term project monitoring can also be used as a definition for anticipating and

documenting project deviations. An efficient project management system must address

all aspects of the project: efficiency, work completed, budget, schedule, and scope

changes. Table 1-7 sets out criteria for project management.

LEARNING ASSESSMENT

1. Give examples of problems that may arise when an owner fails to fulfill his or her

responsibility of clearly defining the operational criteria of a project.

2. Give examples of problems that may arise when a designer fail to give adequate

attention to the impact of a design selection on the cost or schedule during the

construction phase.

3. Give examples of problems that may arise when a contractor fails to perform his

or her work in accordance with the contract documents.

Reference Material:
Project Management for Engineering and Construction 2nd Ed., Garold D. Oberlender