Indian Institute of Technology, Guwahati

Department of Civil Engineering

Infrastructure Engineering and Management Division CE 542 Project Management in Construction

Lecture 1: Introduction- Project Management in Construction

Learning Objectives
 Basic definitions of project and project management
 An understanding of the typical challenges faced by project managers
 Benefits of the project management process
 An understanding of the components of project life cycle model and the related knowledge
management areas

Project Definition
A project is a temporary endeavor undertaken to create a unique product, service, or result
(PMBOK, 2017). The purpose of the project is to attain its objective and then terminate. The
characteristics of project deliverables include uniqueness, temporary in nature and
progressive elaboration.
 Projects are unique as each project has different scope regarding network length, cost,
time, location and many other factors. Also, agencies are different such as government,
contractors, etc. Ground conditions are different like city, within city, hilly area. People
involved are different such as decision makers, workers, etc. Technology is different
according to conditions, choice of people and financial terms.
 The temporary nature of project is as location of construction changes, workers finish and
move to other projects, equipment moves to new location and different employees in each
phase.
 Progressive elaboration can be done by developing in steps and continuing by
increments. In early phase of the project the scope of project is briefly described. Project
scope becomes more explicit and detailed as the project team develops a better and more
complete understanding of the objectives and deliverables.
Project Lifecycle or Phases
Project lifecycle define the phases that connect the beginning to its end. Phases are generally
sequential and are usually defined by some form of technical information transfer or technical
component handoff. It helps in better understanding & management control with appropriate
links to the ongoing operations of the performing organizations. The classification of project
phases (Figure1) is as below:
1. Initial phase: Initiation/idea phase in which idea of project is initiated, Feasibility of
project we check is the project feasible, Conceptual plan, Estimate, and proper approval
are taken.
2. Intermediate phase: Detail designs for each part, tendering phase bidders are invited to
bid, construction phase, closure phase.
3. Final phase: Utilization of product and after utilization, demolition

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 Indian Institute of Technology, Guwahati
Department of Civil Engineering
Infrastructure Engineering and Management Division CE 542 Project Management in Construction

Figure 1: Generic Life Cycle of a Project

Figure 2 describes the project lifecycle of a construction project. The first phase deals with
identifying the project objectives and checking feasibility of the project. Second phase deals
with the preliminary design which includes defining project scope and budget schedule. Next
phase is the detailed design, wherein project design specifications and bidding process
happen. Then, construction phase begins and finally, operation phase.

Figure 2: Lifecycle- Construction project

Characteristics of Project Life Cycle Phases
Project life cycle phases are generally sequential and are usually defined by some form of
technical information transfer or technical component handoff. Deliverables from phase are
usually reviewed for completeness and accuracy and approved before work starts on the next
phase. Deliverable is a measurable, verifiable work product such as detailed design
documents or end products. It is very common to employ fast tracking technique for
accomplishing the phases on time by beginning of a phase prior to the approval of the
previous phase’s deliverables (Figure 3).

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 Indian Institute of Technology, Guwahati
Department of Civil Engineering
Infrastructure Engineering and Management Division CE 542 Project Management in Construction

Figure 3: Design/Construction Interaction

The cost and staffing levels are low at the start, peak during the intermediate phases, and
drop rapidly as the project draws to a conclusion (Figure 4). The level of uncertainty is
highest and, hence, risk of failing to achieve the objectives is greatest at the start of the
project.

Figure 4: Cost and Staffing Levels

The certainty of completion generally gets progressively better as the project continues. The
ability of the stakeholders to influence the final characteristics of the project’s product and
the final cost of the project is highest at the start, and gets progressively lower as the project
continues (Figure 5).

Figure 5: Stakeholder’s Influence over Time

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 Indian Institute of Technology, Guwahati
Department of Civil Engineering
Infrastructure Engineering and Management Division CE 542 Project Management in Construction

Examples of some project can be:

 developing a new product or service,
 effecting a change in structure, staffing, or style of an organization
 designing a new transportation vehicle,
 developing or acquiring a new or modified information system,
 constructing a building or facility,
 building a water system for a community,
 running a campaign for political office,
 implementing a new business procedure or process,
 responding to a contract solicitation.
Some of the project types and industry areas are:
• Technology/telecom • Automation
• International development • Automotive
• Manufacturing • E-business
• New product development • Environmental
• Oil/gas/petrochemical • Financial services
• Pharmaceutical • Government
• Retail • Healthcare
• Service and outsourcing • Hospitality events
• Utility industry • Information systems
• Information
• Aerospace/defense

What is Project Management?

Project management is the application of knowledge, skills, tools and techniques to project
activities to meet project requirements. It should be viewed as a set of techniques, theories,
and tools that collectively help organizations effectively execute designated projects. Project
management is accomplished through the application and integration of the project
management processes of initiating, planning, executing, monitoring and controlling, and
closing. Project manager is the person responsible for accomplishing the project objectives.
Role of Project Manager
A project manager is essentially appointed to “make it happen”. They are appointed to
manage a project with specific accountability for achieving defined project objectives with
allocated resources. They balance the budget, keep track of supplies, collaborate with
subcontractors, and ensure all regulations are met and permits acquired. Some of the
generalized roles of a project manager are governance role as a head or single focal point for
decisions, leadership role who directs others and performs relationship management,
liaison/spokesperson role to interact with outside world including government & interest
groups, monitoring role for being accountable for project performance, disseminator role for
internal to external and external to internal interactions, entrepreneur role for seeking
opportunity to improve and innovate, disturbance handling role for resolving conflicts,
resource allocation role to ensure availability of resources , and negotiator role to perform
major negotiations with the stakeholders involved.

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 Indian Institute of Technology, Guwahati
Department of Civil Engineering
Infrastructure Engineering and Management Division CE 542 Project Management in Construction

Success Management Mantras!

 Understand where failure comes from and mitigate as many of those factors as
possible
 Influence the right set of actions to correct any deviations that threaten to become a
problem
 Take quick action using all of the management skills at hand, when a threat surfaces
 Finally, if the boat is sinking, tell all how to handle the situation
 Will the project be successful if we follow this prescriptions?

Project Management in Construction

Construction Project Management is the application of knowledge for building a construction
project on time, within budget, with the stated quality standards, and in a safe environment.
Some of the reasons for poor performance in construction industry includes its nature of
projects being:
 unique and unrepeatable,
 temporary
 constrained by time, money & quality.
 involves many conflicting parties and
 many decisions are made solely on experience.
Another reason for poor performance is industry characteristics such as:
 extremely fragmented, with many small specialties involved
 intense competition and high failure rates.
 This industry is rapidly affected by recessions,
 little R&D expenditures and
 confidentiality and lack of information sharing and
 slow in accepting new technologies.
The increasing challenges such as global market competition, increasing regulations (e.g.
environmental and safety) has also resulted in poor performance. The project’s tight budget,
less time, yet demand for better quality, rising costs, new advances in materials and
equipment and lack of skilled resources has continuously degraded the performance of this
industry.
The above mentioned factors can be managed through the knowledge and implementation of
project management in construction industry. The project management in construction is
required for following:
Benefits to the stakeholders
Implementation of Project management can help the stakeholders by coping up with the
increasing complexity of modern projects. The resources such as manpower, materials,
machinery, and money can be managed efficiently along with meeting fiscal requirements
and deadlines which leads to improved construction quality, safety and higher productivity.

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 Indian Institute of Technology, Guwahati
Department of Civil Engineering
Infrastructure Engineering and Management Division CE 542 Project Management in Construction

It can help in effective communication among the participants and avoid adverse relations.
Proper documentation and utilizing past experiences can help to improve future construction.
Contractor’s perspective
The contractors get only one opportunity to set the price for bidding and if proper project
planning is done, the chances of getting the tender increases. The contractor can earn profit
by savings through better planning of daily operations and skill to make good decisions.
Contracts with high magnitude of risk transfer to contractor need them to exercise
management control over construction operations. The contractor is being obligated by
contract to meet a prescribed completion date and to finish the project for a stipulated sum. In
such cases, the surest way for the contractor to achieve its own objectives, and those of the
owner in the bargain, is by applying some system of project management which is in the self-
interest of the contractor.
Uncertainty in construction
The construction industry involves creating structural elements on site and off site. Field
construction operations are affected by events that are difficult to anticipate i.e. time and cost
requirements can change with little or no warning. Higher the level of uncertainty, greater the
need for exhaustive project planning and skilled & unremitting management effort.
Contracts with high magnitude of risk transfer to contractor need to exercise management
control over construction operations. “Self-interest is the essential motivation in such cases,
the contractor being obligated by contract to meet a prescribed completion date and to finish
the project for a stipulated sum. The surest way for the contractor to achieve its own
objectives, and those of the owner in the bargain, is by applying some system of project
management”
Indicators for successful completion of a project:
 Completion of project on time
 Cost within budget
 Achievement of quality standards
 No unresolved disputes and no outstanding claims
 Maintaining professional relationship between contractors, designers, architect and
engineer
 Contractor maintaining mutually beneficial relationship with all subcontractors and
vendors
 Good contractor-client relationship

Think-Discuss!
 What are various sectors of Construction Projects in India?
 List and study some construction programs in India: NHDP, Sagar Mala etc.
 List of some major projects, major contractors, project management consultancies
(PMC) and governmental agencies involved.