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Chapter 4 Integration
Chapter 4 Integration
CONTENTS
CHAPTER 4 4.1: THE IDEA
4.2: MANAGEMENT FUNCTIONS
4.3: ORGANIZATIONAL STRUCTURES
INTEGRATION OF CONSTRUCTION 4.4: TYPICAL PROJECT DELIVERIES
PROJECT MANAGEMENT AND
4.5: ICT IN CONSTRUCTION
SUSTAINABILITY
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4.1: THE IDEA OF INTEGRATION Project Starting
Project
Organizing
Definition
CONSTRUCTION Planning
PROJECT SUSTAINABILITY
MANAGEMENT
Project Execution
HOW? Project Close‐out
WHO? Typical current “standard” top level project life cycle model.
PMIa, Guide to the Project Management Body of Knowledge, 4th ed,
Newtown Square, PA: Project Management Institute, 2008.
BFC 32703 Sustainable Construction Management
WHOLE CONSTRUCTION PROJECT ENGINEERING PROJECT ORGANIZATION
LIFECYCLE
Organizational
Contingency Scientific
CONSTRUCTION CONSTRUCTION
PROJECT MANAGER MANAGER
SITE MANAGER
Management
Approach
PEOPLE INVOLVE!
System Bureaucracy
NEED AN ORGANIZATION!
Legends: Process
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Organization Definition Organization in Management
• A group of people who have
What is Organization Management ?
different talents working
“ the attainment of organizational goals in an
together toward a common effective and efficient manner through
goal. management functions (e.g. planning, organizing,
• Organization is a unit within a
leading, and controlling) towards organizational
company within which many resources”
projects are managed as a
• Purpose?
whole.
– Establish area and level of responsibility in
• All projects within an
accomplishing the goals of company
organization share a common – Determine communication way within a member
top‐level manager and
common policies.
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4.2: Management Functions in
Impact of Effective Organization
Organizational Approach
Proper 1 Planning
implementation
of works • Action to guide a project completion.
2 Organizing
Easy to make Effective Easy to make
a plan decision • Arrangement of resource in a systematic manner to fit the
Organization project plan.
…MAY LEAD TO SUCCESS
3 Controlling
Minimize a
misspend and & SUSTAINABILITY
• Establishment of a system to measure, report, and forecast
corruption
deviations in the project scope, budget and schedule.
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Management Functions in Management Functions in
Organizational Approach (cont.) Organizational Approach (cont.)
4 Leading 7 Forecasting
• Involves the social and informal sources of influence that use to inspire
action taken by others.
• The act of predicting business activity for a future period of time.
5 Coordinating 8 Directing
• The synchronization and integration of activities, responsibilities and • Guidance of the work require to complete a project.
command and control structures to ensure that the resources of
organization are used most efficiently in pursuit of the specific
objectives. 9 Motivating
• Using incentives, persuasion and mental or physical stimulants to
6 Staffing
influence the way people think or behave individually or in
• Selection of individuals who have the expertise to produce the work. groups.
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Manager’s Roles in Planning Manager’s Roles in Organizing
• Develop planning focused on the work to be performed.
• Establish project objectives and performance requirements early so
everyone involved knows what is required. • Organize the project around the work to be
• Involve all discipline managers and key staff members in the process of accomplished.
planning and estimating
• Develop a work breakdown structure that
• Establish clear and well‐defined milestones in the project so all concerned
will know what is to be accomplish and when it is to be completed. divides the project into definable and
• Build contingencies into the plan to provide a reserve in the schedule for measureable units of work.
unforeseen future problems.
• Establish a project organization chart for each
• Avoid re‐programming or re‐planning the project unless absolutely
necessary. project to show who does what.
• Prepare formal agreements with appropriate parties whenever there is a • Define clearly the authority and responsibility
change in the project and establish methods to control changes.
for all project team members.
• Communicate the project plan to clearly define individual responsibilities,
schedule and budget.
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Manager’s Roles in Staffing Manager’s Roles in Directing
• Define clearly the work to be performed, and • Serve as an effective leader in coordinating all important
work with appropriate department managers in aspects of the projects.
selecting team members. • Show interest and enthusiasm in the project with a “can
do” attitude.
• Provide an effective orientation (project goals • Be available to the project staff, get problems out in the
and objectives) for team members at the open, and work out problems in a cooperative manner.
beginning of the project. • Analyze and investigate problems early so solutions can be
• Explain clearly to team members what is found at the earliest possible date.
expected of them and how their work fits into the • Obtain the resource needed by the project team to
total project. accomplish their work to complete the project.
• Recognize the importance of team members, compliment
• Solicit each team member’s input clearly define them for good work, guide them in correcting mistakes, and
agree upon scope, budget and schedule. build an effective team.
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Manager’s Roles in Controlling
• Maintain a record of planned and actual work
accomplished to measure project
performance. 4.3: TYPES OF ORGANIZATIONAL
• Maintain a current milestone chart that PROJECT STRUCTURE
displays planned and achieved milestones.
• Maintain a monthly project cost chart that
displays planned expenditures and actual
expenditures.
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What is organizational structure? Selection of organizational structure
• The organizational structure is defined as a formal • task, goal, products or services will be
coordination and communication patterns by management
to: produced and achieved,
– resume task or
– define responsibilities of individuals and groups in achieving the • factors such as group size
ultimate goal of the organization
• The structure determine: • dynamic factors: such as technology, the rate
– Division of works of change in environment and the type of
– Responsibilities
– Cooperation
work related
– Consultation • the selection of management control area and
– Decision making
– Information flows the degree of centralization
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1. Functional Organization (cont.) 1. Functional Organization (cont.)
• Advantages
– reduces or prevents conflicts of interest
– efficiency and clear lines of authority, communication and
accountability
– workers easily coordinate and communicate within their
departments
– work well for small and less project organization
– task assignments consistent with technical training
– high quality technical problem solving
– in‐depth training and skill development within function
– clear cut career paths within functions
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1. Functional Organization (cont.) 2. Pure project organization
• Disadvantages • Characteristics
– Project is separated from the rest of the parent
– project managers have limited authority and a system
limited career path in this type of structure. – Becomes self contained unit
– poor communication and coordination across – Project requiring major changes.
functions – Hence, a small, self‐sufficient and full‐time team is set
up.
– having too many decisions referred upward in the – The team leader is like an entrepreneur.
hierarchy – Leader has full responsibility over the project.
– slow innovation in response to environmental – Functional units are stable, provide support to project
changes. teams.
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2. Pure project organization (cont.) 2. Pure project organization (cont.)
President • Advantages
1. A strong divisiveness occurs between the project team
and the parent organization.
2. PM has full line authority over the project
3. All project workforce directly responsible to the PM
Vice President Project A Vice President Project B Vice President Project C 4. Lines of communication are shortened
5. Maintain permanent group of experts
6. High level of commitment
7. Ability to make swift decisions
Finance Manufacturing Finance Manufacturing Finance Manufacturing 8. Unity of command
9. Simple and flexible structure
10. Support holistic approach to the project
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3. Matrix organization (cont.) 3. Matrix organization (cont.)
• Advantages:
– Individuals can be chosen according to the needs
of the project.
– Better coordination and policy decisions
– Effective cost management
– High visibility of project objective
– High degree of coordination by project manager
– Flexibility in utilizing limited resources
– Minimal conflicts
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Project Organization VS Functional
3. Matrix organization (cont.)
Organization
• Disadvantages: • Fast decision, simple & clear lies of duty & responsibilities
• More innovative, problems are usually solved on the
– Personal dissatisfactions Project spot/within branch
– Difficulties in setting priorities Organization • Very efficient in achieving specific target
• More expensive, resource sometimes not fully utilized
– Complexities of communication and control • Less chance for staff development on special knowledge/skills
– Projects can be difficult to monitor if teams have a
lot of independence.
• Bureaucratic due to protectionism between specialist
– Costs can be increased if more managers (i.e. branches
Functional • Less innovative since function are separate and problems must
project managers) are created through the use of be referred to relevant branches
Organization
project teams. • Less efficient in achieving specific target.
• Less expensive, due to less wastage in utilizing resources
• More chance for developing special knowledge/skills
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FACTORS TO CONSIDER BEFORE DECIDING ON
ORGANISATIONAL STRUCTURE
Level of
uncertainty in
Project
Data Project
Requirements Durations
4.4: METHODS OF PROJECT DELIVERY
Technology
Required Factors Resources
Overhead
Complexity
cost
Number of
projects &
their relative
importance
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Methods of Project Delivery 1. Methods of Project Delivery
Two‐step procurement (design and build Traditional Project
• Major Project Delivery Methods commonly as separate contract) (Design‐Bid‐Build)
One general contractor and separate
used are:‐ designer
Project Owner
– Traditional method (Design‐Bid‐Build) Can be done by contractor itself and/or
subcontractor
– Design‐Build May involves numerous subcontractors
Project can be the “most economical Designer
– Construction Management form of construction procurement when Architect/
General
Contractor
– Owner‐Builder Arrangement contractor bid at the lowest price”. Engineer
However experts agree that this method
also could be the “most expensive form
of const. procurement with the lowest
quality product if not well monitor”.
Most contract is based on Bill of
Quantities.
BFC 32703 Sustainable Construction Management BFC 32703 Sustainable Construction Management
2. Methods of Project Delivery 3. Methods of Project Delivery
Design‐Build Project/Turnkey A Construction Management
Project Owner
(CM) Project
Design/Build Owner
Firm Contract assigned to CM firm
CM/PMC
or Project Management
Contractor Contractor Contractor Designers Consultant (PMC) to
Architect/ coordinate the project for the
Procurement system in which the owner contracts with a contractor and/or designer Engineers
as a single unity, under one contract. owner.
Owner assign design and build firm to run the project. Four Party arrangement
Design & Build Firm will be responsible for both design and construction work. Contractors Contractors Contractors
involves owner, designers, CM
Provides the means for company to manage their construction needs without a large
internal staff, and still meets their needs for quality and timeliness. firm and contractors.
Most contract in lump sum value. CM does not perform design or
Optional own forces work for contractors and subcontractors. construction work with it own
Possible Disadvantage is that a dominant contractor will overrule the designer’s
recommendations of quality in the interest of cost. forces.
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4. Methods of Project Delivery Methods of Project Delivery
Owner‐Builder/Agent
Arrangements Owner
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Introduction
• ICT(Information and Communication Technology)
– extended for information technology (IT)
4.5: Information and Communication – technologies that provide access to information
through telecommunications
Technology – focuses primarily on communication technology
(ICT) In construction – includes internet, wireless network, cell phones
and other communication medium which enable
users to access, store, transmit, and manipulate
information.
BFC 32703 Sustainable Construction Management BFC 32703 Sustainable Construction Management
Why construction industry need an How to implement ICT in
ICT? construction?
• ICT becomes a vital tool for managing • Information management!!!!
information
• large amount of project information generated • Why bother information management?
and used during the various stages in project life – Traditional methods have not always worked.
cycle. – Scale of building work has change
• Sharing and maintaining this information among
multiple disciplines and throughout the project – Involvement large number of people
life cycle is complex and difficult task.
• So, flow of information need to be managed so
that it will be received or accessed when
required.
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Role of ICT in managing information
Input and output in project phase
Factory & Building
commercial management
Specialist
Owner
contractor
Conceptual Detail Construction
Idea Construction Operation
design design planning
DATABASE
Information in
construction.
What else? Main Designers/
Drawings Estimate As‐built
Report Drawings ‐Engineer Inst. contractor engineers
schedule drawing
‐Arch. Inst.
‐Etc. CAD
Commercial
Traditional fragmented and sequential project delivery process Information technology life cycle for project teams
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ICT in construction
Affects of “Disruptive’ ICTs
Report on a brief in the use of ICT and ICPM in the construction
industry, 2001
Turk, M., Proceedings of the Workshop on Perceptual User Interfaces, Banff, AB, 1997
BFC 32703 Sustainable Construction Management BFC 32703 Sustainable Construction Management
We can change the system, but we cannot
Problems? change people using the system…
• Causes of problem in adoption and utilization
of integrated IT system (Alswahi, 1996)
– Poor management and communication
– The fragmented nature of the industry
– Lack of standardization and uniform procedure
– Number of participant involved in construction
project.
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We can change the system, but we cannot
change people using the system…
So, where
are we?
BFC 32703 Sustainable Construction Management BFC 32703 Sustainable Construction Management