MAKERERE UNIVERSITY

COLLEGE OF ENGINEERING, DESIGN, ART AND TECHNOLOGY

SCHOOL OF BUILT ENVIRONMENT

DEPARTMENT OF CONSTRUCTION ECONOMICS AND MANAGEMENT

COURSE: BACHELOR OF SCIENCE IN QUANTITY SURVEYING

COURSE UNIT: CONSTRUCTION PROJECT MANAGEMENT

COURSE CODE: QUS 4105

BY LECTURER NAMAKULA HIDAYA

YEAR: YEAR IV

GROUP 2

REGISTRATON STUDENT
NAME COURSE
NUMBER NUMBER
SSEKAJJA ABDULSWAMADU BSQS 19/U/0111 1900700111
AKANKUNDA MAXIM BSQS 19/ U/0580 1900700580
TUMWESIGYE ALLAN BSQS 19/U/0554 1900700554
KEMIGISA MARTHA ALUM V BSQS 19/U/0120 1900700120
TUHAISE BRAIN BSQS 19/U/8271/PS 1900708271
NABAWENDA JOAN BSQS 19/U/0561 1900700561
AHEEBWA GLORIA BSQS 19/U/0124 1900700124
ANGWEN ANGELLA BSQS 19/U/0573 1900700573
 TABLE OF CONTENTS

1 INTRODUCTION..............................................................................................................1

2 WORK BREAKDOWN STRUCTURE (WBS).................................................................1

2.1 Levels of the Work Breakdown Structure...................................................................1

2.2 Representation of the Work Breakdown Structure......................................................2

2.3 Importance of a Work Breakdown Structure...............................................................2

2.3.1 To the Project Teams...........................................................................................2

2.3.2 To the project.......................................................................................................2

2.4 Common Pitfalls and Misconceptions.........................................................................3

3 WORK SCHEDULING......................................................................................................3

3.1 Purposes of Work Scheduling.....................................................................................3

3.1.1 Simplifies the project plan...................................................................................3

3.1.2 Validates the time objectives...............................................................................4

3.1.3 Optimizes resources.............................................................................................4

3.1.4 Forecasts the input resources and predicts the output..........................................4

3.1.5 Evaluates the implications of scheduling constraints...........................................4

3.2 Work Scheduling Techniques and methods................................................................4

3.2.1 Bar Chart (Gantt chart) Method...........................................................................4

3.2.2 Network Based Scheduling Method.....................................................................5

3.2.3 Line of Balance Scheduling Method....................................................................6

3.2.4 Factors considered when developing project work schedule...............................7

4 NETWORK ANALYSIS....................................................................................................7

4.1 Introduction.................................................................................................................7

4.1.1 Classification of networks....................................................................................7

4.1.2 Project Networking Techniques...........................................................................8

4.1.3 Network Elements................................................................................................8

 4.2 Critical Path Method....................................................................................................9

4.2.1 Basic steps in CPM/PERT...................................................................................9

4.3 Project Evaluation Review Technique (PERT).........................................................10

4.3.1 Questions answered by PERT............................................................................12

4.3.2 Critical Path........................................................................................................12

4.3.3 PERT/ Cost.........................................................................................................14

4.4 Precedence Network Analysis...................................................................................14

4.4.1 Different ways of representing an activity in PNA............................................15

4.4.2 Precedence network logic..................................................................................15

4.4.3 Types of precedence relationship.......................................................................15

4.4.4 Comparison between CPM and PNA.................................................................16

4.4.5 Benefits of network techniques..........................................................................17

4.4.6 Limitations of Network Techniques...................................................................17

5 CASH FLOW PROJECTIONS AND FORECASTING..................................................18

5.1 Reasons for formulating cash flow projections.........................................................18

5.2 Factors that affect project cashflows.........................................................................18

5.3 Benefits of project cashflow projection.....................................................................18

6 STATISTICAL APPROACHES......................................................................................19

6.1 Monte Carlo simulation.............................................................................................19

6.2 S curve.......................................................................................................................19

6.2.1 Types of S curves..............................................................................................19

6.3 Gantt chart.................................................................................................................20

6.4 Three-point estimate..................................................................................................20

6.4.1 Poison distribution.............................................................................................20

6.4.2 Beta distribution.................................................................................................20

6.4.3 Triangular distribution.......................................................................................21

6.5 Normal distribution...................................................................................................21

 6.6 Activity diagrams......................................................................................................21

6.7 Linear scheduling......................................................................................................21

7 References.........................................................................................................................22
 CONSTRUCTION MANAGEMENT TOOLS AND TECHNIQUES
1 INTRODUCTION
Construction management involves control of the construction process, and optimum
aggregation of construction resources including money, manpower, materials, machinery and
methods of work (M’s).
It addresses how the resources available to the Project Manager (PM) can be best applied.
The job of the Project Manager is to efficiently and economically apply the required
resources to realize a constructed facility of accepted quality within the time frame and
budgeted cost specified (Halpin & Senior, 2010).
A Project Manager can apply the different resources within the limited funding and time
available with the help of the construction management tools and techniques. These include;
Work Breakdown Structure(WBS), Project Evaluation and Review Technique (PERT), Non-
linear Distribution Method, Activity Cost Estimation, Precedence Network Analysis (PNA),
Resource Planning Data, Critical Path Method (CPM) and Graphical Evaluation and Review
Technique (GERT) methods.
This report mainly focuses on; WBS, CPM, PERT, PNA and work scheduling. It also entails
details of the cash flow projections and statistical approaches to construction management.
2 WORK BREAKDOWN STRUCTURE (WBS)
According to Project Management Institute, Work Breakdown Structure is a hierarchical
representation of work contents, whereby the project is progressively subdivided into smaller
units.
It is a hierarchical structure that defines and organizes the total project scope based on
deliverables, with each descending level in the hierarchy representing an increasingly detailed
definition of the project work. Deliverables are tangible, measurable parts of the project that
can be broken into levels of sub-projects, tasks, work packages and activities (PMI, 2001).
2.1 Levels of the Work Breakdown Structure
a) Project level: This represents the entire project. It is the highest level in the WBS
configuration.
b) Sub-project level: This is derived by decomposing the scope of project work into
independent large-volume mini-projects which can be progressed in a systematic
manner.
c) Task level: The sub-project can be split into various tasks. A task is an identifiable
and deliverable major work.

1
 d) Work-packages level: A project task can be further sub-divided into one or more work
packages. This level represents the responsibility for the performance of the work
assigned to an individual or organization.
e) Activity level: A work package can be further broken down into various identifiable
jobs, operations and processes, which consume time and possible resources which are
necessary for its completion (Chitkara, 2014).
2.2 Representation of the Work Breakdown Structure
The WBS can be represented in three forms such as;
a) Hierarchical inverted tree structure
b) Numbered levels table
c) Task matrix format
2.3 Importance of a Work Breakdown Structure
According to Devi & Reddy (2012), a WBS outlines where the project will start, what phases,
levels and tasks would be followed. Skipping the WBS could cause delays, confused tasking
by team members and project overruns. The WBS also helps to define the specifics of the
project outlined in the project scope. Below are some of the importance of the WBS to the
project and the project teams;
2.3.1 To the Project Teams
i. Project Teams need a WBS because it has a number of benefits in addition to defining
and organizing the project work. By allocating time and cost estimates to specific
sections of the work breakdown structure, a project schedule and budget can be
quickly developed.
ii. Project WBS can also be used to identify potential risks in a given project. By
integrating the work breakdown structure with an organization breakdown structure,
the project manager can identify communication points and formulate a
communication plan across the project organization.
iii. When a project is falling behind, referring to the work breakdown structure will
quickly identify the major deliverables impacted by a failing work package or late
sub-deliverable.
2.3.2 To the project
i. The work breakdown structure helps to define and organize the scope of the total
project more accurately and specifically. The most common way this is done is by
using a hierarchical tree structure.
 ii. A work breakdown structure in projects is to help with assigning responsibilities,
resource allocation, monitoring the project, and controlling the project. The WBS
makes the deliverables more precise so that the project team knows exactly what has
to be accomplished within each deliverable.
iii. It also allows for better estimating of cost, risk and time since execution is done from
smaller tasks up to the level of the entire project.
iv. It allows double checking of all the deliverables’ specifics with the stakeholders and
making sure that there is nothing missing or overlapping.
2.4 Common Pitfalls and Misconceptions
i. A WBS is not an exhaustive list of work. It is instead a comprehensive classification
of project scope.
ii. A WBS is not a project plan or a project schedule and it is not a chronological listing.
It is considered poor practice to construct a project schedule before designing a proper
WBS.
iii. A WBS is not an organizational hierarchy. Some project managers make the mistake
of creating a WBS that shadows the organizational chart.
iv. Short-memory capacity should not dictate the size and span of a WBS tree structure.
A WBS level is suggested to be limited to 5-9 elements because that is a theoretical
limit to short-term memory.
v. WBS updates, require formal change control. This is another reason why a WBS
should be outcome oriented and not be prescriptive of methods. Methods can and do
change frequently, but changes in planned outcomes require a higher degree of
formality.
3 WORK SCHEDULING
Scheduling is the determination of the timing and sequence of operations in the project and
their assembly to give the overall completion time (Mubarak, 2010).
According to Chitkara (2014), a schedule can be defined as a work programme that is set
date-wise in a logical sequence. A work schedule is an action plan with calendar date targets
of construction operations that serves as a principal guideline for project execution.
3.1 Purposes of Work Scheduling
Chitkara (2014) stated that work scheduling serves a number of purposes as discussed below;
3.1.1 Simplifies the project plan
The bar-chart type (Gantt chart) work schedule provides a simplified version of the work
plan, which can easily be understood by all concerned authorities or departments dealing with
planning, coordination, execution, and control of the project.
3.1.2 Validates the time objectives
A work schedule shows the planned sequence of activities in date-wise manner. It also
verifies the deadlines imposed for completion of each activity as well as the entire project and
achievement of the milestones.
3.1.3 Optimizes resources
A work schedule is based on the most economical employment of the resources of
manpower, materials, and machinery. It smoothens abrupt changes, which may occur from
time to time. Resource optimisation is achieved by a systematic utilisation of the floats of
non-critical activities.
3.1.4 Forecasts the input resources and predicts the output
A work schedule enables the forecasting of resources and also indicates the pattern of
resource consumption. The time schedule of work forms the basis for predicting the resource
requirement as well as the financial state of the project in terms of investment, expenditure,
output, income, and cash flow.
3.1.5 Evaluates the implications of scheduling constraints
A work schedule brings out the implications of constraints, and enables preparation of a work
plan within the framework of these constraints.
3.2 Work Scheduling Techniques and methods
According to Chitkara (2014), work schedules can be broadly categorised into Bar Chart
Schedules, Network-Based Complex Projects Schedules and the Line of Balance (LOB)
schedules for repetitive project depending on the nature of project, time, and resource
constraints.
3.2.1 Bar Chart (Gantt chart) Method
A bar chart is ‘‘a graphic representation of project activities, shown in a time-scaled bar line
with no links shown between activities’’ (Mubarak, 2010).
In this method, work is first broken down into activities with the aid of Work Breakdown
Structure (WBS) and then these activities are listed in the order of precedence relationships
( sequence of execution) on the left hand side column of the chart with a time scale showing
the project calendar plotted horizontally on the top and/or bottom of the chart.
Generally, the project calendar covers the project’s construction span from the start date to
the final completion date and specifies the dates when the activities are scheduled. The bar
chart calendar clearly highlights the months, weeks, working days, non- working days and
holidays.
The bar against each activity represents its work schedule with a start and finish of each
activity. The length of the bar on the calendar scale represents the duration of the activity and
horizontally, each row represents the activity description and activity data.
The advantage of bar charts over networks is that they are time-scaled; that is, the length of a
bar representing certain activity is proportional to the duration of that activity making them
easy to comprehend.
The main disadvantage of bar charts is lack of logical representation (relationships) which
ideally could be a logical relationship, a resource constraint, or a subjective decision by the
project manager.
The limitation of bar charts is that they may not be practical for projects with large numbers
of activities and hence at times limited by size and complexity of the project. This is due to
the following reasons;
i. It does not reflect the relationship between various activities, which are a common
feature of all complex projects, unless a time scale network is plotted.
ii. It cannot identify and highlight the emerging critical tasks that need special attention
for preventing schedule slippages, time overruns, contractual disputes, and other
bottlenecks.
iii. In complex projects, time durations often are estimated. Any change in schedule or
time duration would require redrawing of the multi-task bar chart schedule.
3.2.2 Network Based Scheduling Method
In complex projects, activities are sequenced using network techniques. A time analysed
network depicts the start and completion times of critical and non-critical activities.
Network based schedules can be broadly categorised into two categories namely;
3.2.2.1 Time Limited Schedule
This schedule is prepared based on project time constraints, in such a way that entire project
duration is not exceeded.
3.2.2.2 Resources Limited Schedule
This schedule is prepared based on resource constraints by making use of the available floats
of non-critical activities to reduce conflicts in resource requirements or conform to a given
predetermined pattern of resources.
According to Richard H. Clough & Sears (2008), the following guidance steps are considered
in devising an efficient and workable schedule;
a) Estimate the time required to carry out each network activity.
b) Compute the time required for the overall project completion using the activity
duration estimates.
c) Establish time intervals within which each activity must start and finish to satisfy the
completion date requirement.
d) Identify the critical and non-critical activities.
e) Adjust the start and finish times of non-critical activities to minimise resource
conflicts and smooth out demands of manpower and equipment using the available
total float. This is termed as resource optimization.
f) Make a working project schedule that shows anticipated calendar dates for the start
and finish of each activity.
g) Record assumptions made and the plan’s vital boundary conditions which will
eventually become an integral aspect of the completed baseline project schedule.
3.2.2.3 Resource Optimization
Resource optimisation is a schedule network analysis technique applied to a schedule that has
already been analysed using CPM/PERT. It is needed when;
a) Resources are scarce or have been over-allocated resulting in resource conflicts.
b) There is a need to keep resource usage at a constant level.
Resource optimization techniques include resource smoothing and resource leveling.
Resource smoothing Resource leveling
Time limited scheduling technique Resource limited scheduling technique
Removes as much resource conflicts as Removes all resource conflicts
possible, but may not remove all resource
conflicts

Activities are shifted only to the extent of the Activities may be shifted beyond available
float available float while scheduling activities
 The project duration must not be exceeded The project duration gets exceeded
No change in the critical path May change the critical path

3.2.3 Line of Balance Scheduling Method

LOB technique is a simple scheduling tool that demonstrates the inter-relationship and caters
for floats between activities.
The LOB technique is primarily used for planning, scheduling, and controlling projects that
involves a large number of repetitive works, such as similar buildings and multi-storeyed
skyscrapers, and the linear type segmented works like roads, airfields, tunnels, and pipelines.
LOB enables the optimum utilisation of resources, improvement in work efficiency, and
interference-free scheduling of a wide range of activities.
The LOB activity schedule chart shows the graphical plan of work execution in linear or ‘S’
curve shape.
3.2.4 Factors considered when developing project work schedule
a) Time
b) Manpower
c) Materials
d) Machinery
4 NETWORK ANALYSIS
4.1 Introduction
A network refers to a representation of the sequence and interdependence of the activities of a
project in a diagrammatic form by using standard symbols (Barrie & Paulson, 1992).
Project networks analysis is a generic term that covers all the network techniques used for
planning, scheduling, and controlling of projects. The three such commonly used techniques
are Critical Path Method (CPM), Program Evaluation and Review Technique (PERT) and
Precedence Diagramming Method (PDM), hereafter is called Precedence Network Analysis
PNA (Chitkara, 2014).
Critical path networks and their related techniques for schedule, resource, and cost analysis
are the most powerful analytical tools for project planning and control. These network
techniques generate time-oriented diagrams having activities organized into a logical order.
Common features are that they make use of the network model for depicting the time plan of
the project, apply the critical path concept for determining project duration and identifying
critical activities, and, employ network analysis techniques for controlling the project-time
objectives.
4.1.1 Classification of networks
Networks in a project are classified into four categories: skeleton network, master network,
detailed network, and summary network (Chitkara, 2014). These are detailed below;
4.1.1.1 Skeleton Network
The project skeleton network depicts the preliminary or outline plan of the project using (sub-
projects and tasks) level of activities. The duration of each activity is estimated in months or
weeks. Skeleton networks are prepared during the feasibility or engineering stage with a view
to provide direction to the project management team.
4.1.1.2 Master Network
This network is designed for controlling the systematic execution of a project or contract. It
generally uses work packages as database. Its unit of time for duration estimation is
considered in weeks.
4.1.1.3 Detailed Network
This network is prepared for the execution of day-to-day work, conforming to the sequence
of activities given in the master network. It contains lower-level activities, whose duration is
assessed in terms of days. These are prepared for controlling the extremely important sub-
projects, tasks or contracts where the progress of work is to be watched and controlled on a
day-to-day basis. Detailed networks are also prepared for determining the duration of a work
package.
4.1.1.4 Summary Network
This network depicts the summary of a master network. In the summary network, sub-project
task level is used and their duration is assessed in weeks. The project summary network and
its schedule are used in project information reporting to the top management.
4.1.2 Project Networking Techniques
There are two common techniques for drawing CPM/PERT networks namely: Activity on-
Node (AON) Activity-on-Arc (AOA) (Render, Ralph, &Hanna Et.al. , 2018).
4.1.2.1 Activity on Arc Networks
The activities are represented by arrows in the forward direction. The tail of the arrow depicts
the commencement of an activity, the arrow head represents its termination. In this
arrangement, the nodes/ events mark the completion of a preceding activity and the beginning
of a succeeding one.
4.1.2.2 Activity on Node Networks
In constructing an AON network, there should be one node representing the start of the
project and one node representing the finish of the project. Each activity is represented in a
node which can be a rectangle, circle or even an ellipse. The arcs (arrows) in this arrangement
are used to show the predecessors for the activities.
4.1.3 Network Elements
The two basic elements used in a network are activity and event. In addition, where
necessary, dummy activities are introduced to maintain the network logic.
4.1.3.1 Activity 
An activity is an identifiable, quantifiable, measurable, cost able, and discrete lowest level
element of work, which must be performed during the course of a project, in order to achieve
the project mission.
4.1.3.2 Event
This is the state that marks the completion of a preceding activity and the beginning of the
succeeding one. It has no duration and it represents only a single point in time.
4.1.3.3 Dummy activity
It is a superimposed activity, which does not represent any specific operation or process. It
has zero duration and consumes no resources. Its purpose is two way;
a) To provide a logical link in order to maintain the correct relationship of activities.
b) To simplify the description of concurrent activities. The dummy activity is drawn like
any other activity, but with dotted lines.
4.2 Critical Path Method
The CPM is a graphical network based scheduling technique that evolved from a research
effort initiated in the late 1956. The major objective of this effort was to explore the use of
computer aided systems in planning, scheduling, monitoring and controlling Engineering
projects.
CPM is best suited for developing the sub-networks of sub-groups and tasks having activities
with deterministic single-time duration. The sub-networks can then be systematically
integrated into a project network using the PNA techniques.
CPM enables planners and managers to thoroughly analyse the timing and sequential logic of
all operations required to complete a project before committing time, money, equipment,
labour, and materials for engineering and construction.
In addition, CPM is a scheduling method that permits relatively easy revision of the schedule
and evaluation of the impact of changes in the original plan. It thus becomes an excellent
control tool during the execution of the project as well.
4.2.1 Basic steps in CPM/PERT
According to Render, Ralph, &Hanna Et.al. (2018), the basic steps involved in both the
Critical Path Method (CPM) and the Project Evaluation and Review Technique (PERT).
a) Defining the Scope of Network: From its conception to its evolution and completion,
a project has innumerable activities associated with it, but it is not necessary to
include all of them in the network. The first step in network modelling, is to define the
scope of the network by fixing start and end events, stating suitable assumptions, and
lying constraints.
b) Determining Activities: The various stages in the execution of a project can easily be
visualized by breaking down the work into major tasks or work packages. Each one of
these can further be split into sub-tasks, these sub-tasks can be further sub-divided;
this process continues till the desired level of activities is reached.
c) Develop the relationships among the activities: The logic of activities within the work
package can easily be established by asking the following questions relating to each
activity:
i. Which activity precedes this activity?
ii. Which activity succeeds or follow the completion of this activity?
iii. Are there any constraints imposed on starting of this activity? Assign time
and/or cost estimates to each activity.
iv. Is it the final activity? If so, what are the activities that precede this activity?
d) Developing Network Logic: For CPM/PERT, activities are connected with each other,
according to the finish-to-start logic, that is, an activity starts only after its preceding
activity is completed. The main purpose of the logic diagram is to facilitate the
drawing of the network.
e) Preparation of the CPM Network diagram: The main purpose of the flow diagram is
to facilitate a systematic drawing of the draft. The guidelines for converting the logic
diagrams into draft network are:
i. The dummies should be reduced to minimum.
ii. The crossing of arrows should be avoided by a suitable re-positioning of the
activities.
 iii. Logic of all the activities should be verified for its correctness.
f) Incorporating Activity Duration: The duration of activities are estimated, while
breaking down the project into activities. Further, some new activities may also get
added during the preparation of network. Therefore, after drawing the network, the
duration of all the activities should be re-checked and necessary corrections made.
g) Compute the longest time path through the network; this is called the critical path.
h) Use the network to help plan, schedule, monitor, and control the project.
4.3 Project Evaluation Review Technique (PERT)
PERT was developed along the military stream in 1958 by the Special Projects Office of the
U.S Navy force to plan and control the Polaris Missile program thus it was developed along
the military stream (Barry et al, 2018).
It’s among the popular quantitative analysis techniques that help managers plan, schedule,
monitor and control projects.
PERT and CPM were similar in their basic approach when they were developed but differed
in the way activity times were estimated. PERT is mainly used for non-repetitive projects or
for new jobs where providing activity time estimates is not always an easy task. Without solid
historical data, managers are often uncertain about the activity times thus PERT uses a
probability distribution based on three-time estimates for each activity.
A weighted average of these times is used with PERT in place of single time estimate used in
CPM and these averages are used to find the critical path.
The time estimates in PERT are;
a) Optimistic time (a); time an activity will take if everything goes as well as possible.
1
There should only be a small probability (say ) of this occurring.
100
b) Pessimistic time (b); time an activity will take assuming very unfavourable
conditions. There should be only a small probability that the activity will really take
long.
c) Most likely time (m); most realistic estimate to complete the activity.
The expected time is derived from the calculation of a statistically weighted average time
estimate using the three-time estimates (Eugene, 1966).
PERT often assumes that time estimate follows a beta probability distribution. This
distribution has been found appropriate in many cases for determining an expected value and
variance for activity completion times.
 Figure 1:Beta Distribution with three-time estimates
a+ 4 m+ b
Expected activity time =
6
b−a 2
Variance =( )
6
4.3.1 Questions answered by PERT
1. When will the entire project be completed?
2. What are the critical activities or tasks in the project? the ones that will delay the
entire project if they are late.
3. Which are the noncritical activities? the ones that can run late without delaying the
entire project’s completion.
4. If there are three-time estimates, what is the probability that the project will be
completed by a specific date?
5. At any particular date, is the project on schedule, behind schedule, or ahead of
schedule?
6. On any given date, is the money spent equal to, less than, or greater than the budgeted
amount?
7. Are there enough resources available to finish the project on time?
4.3.2 Critical Path
The path of critical activities (including dummy activities) or longest path which links the
start and end events is called critical path. In other words, it is the path of activities having
zero slack. The sum of the duration of the critical activities along a critical path gives the
duration of the project.
4.3.2.1 Significance of Critical Path
a) It is the longest path in the network. The sum of the durations of critical activities
along the critical path determines the duration of the project.
b) It is the most sensitive path, which means any change in duration of a critical activity
along the critical path is bound to affect the duration of the entire project.
c) Managers derive flexibility by identifying the non-critical activities and replanning,
rescheduling and reallocating resources such as personnel and finances.
While finding the critical path, we need to determine the following quantities for each
activity in the network;
Earliest start time (ES): the earliest time an activity can begin without violation of immediate
predecessor requirements.
Earliest finish time (EF): the earliest time at which an activity can end
Latest start time (LS): the latest time an activity can begin without delaying the entire project.
Latest finish time (LF): the latest time an activity can end without delaying the entire project.
In the network, we represent these times as well as activity times (t) in nodes as seen below.
Activity T
ES EF
LS LF

4.3.2.2 Earliest times

There are two basic rules to follow when computing ES and EF. The first rule is for the
earliest finish time which is gotten from;
Earliest finish time = Earliest start time + Expected activity time
EF = ES + t
Also, before any activity can be started, all of its predecessor activities must be completed. In
other words, we search for the largest EF for all of the immediate predecessors in determining
ES.
The second rule is for the earliest start time, which is gotten from;
Earliest start time = Largest of the earliest finish times of immediate predecessors
The start of the whole project will be set at time zero therefore any activity that has no
predecessors will have an earliest start time of zero.
The earliest times are found by beginning at the start of the project and making a forward
pass through the network.
4.3.2.3 Latest times
The latest times are gotten by making a backward pass through the network that is starting at
the finish and working backward.
There are two basic rules followed when computing for the latest times;
i. LS= LF – t
ii. LF= Smallest LS of all immediate successor activities
4.3.2.4 Slack times
Slack time is the length of time an activity can be delayed without delaying the whole project.
Once ES, LS, EF and LF have been determined, it is a simple matter to find the amount of
slack or free time that each activity has. Slack time can be computed from;
Slack = LS – ES or LF – EF
Activities with no slack are the critical activities. This means that none of them can be
delayed without delaying the entire project.
4.3.3 PERT/ Cost
PERT/ Cost is a modification of PERT that allows a manager to plan, schedule, monitor and
control cost as well as time. This modification was brought about because PERT is an
excellent method of only monitoring and controlling project length, it does not consider
project cost. This is accomplished in the budgeting process.
4.3.3.1 Budgeting Process: Planning and Scheduling Project costs
The overall approach in the budgeting process of a project is to determine how much is to be
spent every week/ month.
4.3.3.1.1 Steps of the budgeting process
a) Identify all costs associated with each of the activities. Then add these costs together
to get one estimated cost or budget for each activity.
b) If you are dealing with a large project, several activities can be combined into larger
work packages. A work package is simply a logical collection of activities. For small
project, each activity will be a work package.
c) Convert the budgeted cost per activity into a cost per time period. This is done by
assuming that the cost of completing any activity is spent at a uniform rate over time.
d) Using the earliest and latest start times, find out how much money should be spent
during each week or month to finish the project by the date desired.
4.4 Precedence Network Analysis
A precedence network (PN) incorporates the concept of lags and leads, while representing the
relationship of various starts and finish of activities. Lag time is the delay in the start of
successor activity while lead time is the amount of time the successor activity can be
advanced with respect to predecessor. PN depicts the lead or lag in activities to provide a
realistic sequence of engineering tasks as they occur in the actual execution of works. They
represent real time plan, which shows dependency and inter-relationship of various activities
in a better way as compared to the other project network analysis techniques
The activities in PN are represented by both a rectangular or square box and the time duration
of the activity is included inside the nodal box. The activity nodes are connected with lines
from the preceding activities.
4.4.1 Different ways of representing an activity in PNA

Where;
Latest Finish Date (LFD) = Latest Finish Time (LFT),
Total Float (TF) = Latest Finish Time (LFT) – Earliest Finish Time (EFT) OR
= Latest Start Time (LST) – Earliest Start Time (EST),
Dur = Duration,
No. = Activity number or identification label,
Resource = Gang size or man-days or cost earned value etc. can be written below description,
if considered necessary.
4.4.2 Precedence network logic
A logic network shows the sequence of activities in a project cross time. It indicates which
activity logically precedes or follows another.
The job dependency logic shows the sequence in which the activities progress, for example
blinding activity starts after the completion of excavation. It generally follows the rule that
except the start activity, each activity can start only after, its preceding activity(ies) is
completed.
The construction job time constraints logic arises from the restrain on start and completion
of dependent activities that is imposed due to the construction process at site. It is of two
types, i.e., ‘Lag’ or ‘Lead’, which are situational requirements. Most Project Management
software do display lag or lead on the network display. For example, the start of blinding
activity may get delayed by two days after completion of excavation for grading and soil
testing of the excavated surface.
4.4.3 Types of precedence relationship
In precedence diagrams, a number of different relationships exist between activities.
i. Finish-to-start: Delay from the finish of preceding activity to the start of the
succeeding one.

ii. Finish-to-finish: Delay from the finish of preceding activity to the finish of the
succeeding one.

iii. Start-to-start: Delay from the start of preceding activity to the start of the succeeding
one.

iv. Start-to-finish: Delay from the start of preceding activity to the finish of the
succeeding one.

4.4.4 Comparison between CPM and PNA

4.4.4.1 Similarities
i. Both separate planning and scheduling. Network planning precedes scheduling of
work and budgeting of resources.
ii. Both help in establishing a relationship between time and cost, thus enabling
optimisation of resources.
 iii. Both provide the common language for communication among all those connected
with management of projects, thus, reducing communication gaps, coordination
effort, and contractual disputes.
iv. Both provide basis for monitoring progress and analysing effect of deviations.
v. Both enable systematic and logical development of time programme of complex
projects with resource constraints.
4.4.4.2 Differences
i. In PNA, activities are generally arranged in rows of symmetrically placed horizontal
boxes connected with dependency lines whereas, CPM contains arrows, dummy
arrows, and events drawn in forward direction at various angles.
ii. The logic-arrow diagram of CPM is easy to draw whereas PNA takes more time to
develop its logic sketch.
iii. In PNA, each activity box includes relevant data for time and resources that are
needed for analysis but in CPM, it is distributed on arrows and connecting events.
iv. The CPM network with its distinct events and simple logic relationship can be easily
understood by those not familiar with network analysis. This is difficult in case of
PNA having multiple logic relationship.
v. PNA takes into consideration overlapping of activities. These overlapped activities
present a realistic sequence of engineering tasks as they occur in actual execution.
These cover real life situations better than the CPM’s single finish-to-start
relationship approach.
vi. The schedule derived from CPM can be drawn both in bar charts as well as the ‘time
scale network’ format. The ‘time scale network’ linked schedule is difficult but
possible in PNA.
4.4.5 Benefits of network techniques
i. Networks can much more concisely represent large numbers of activities. This
captures the interrelationships and dependencies among activities which makes
networks much more useful for forecasting and control.
ii. Networks also encourage long range and detailed planning, scheduling and control
functions. This is because they provide a more powerful means for documenting and
communicating project plans, schedules and performance.
iii. Networks also identify the most critical elements in the project schedule and thus
allow management to set priorities and focus attention on them.
4.4.6 Limitations of Network Techniques
i. Though, simple and straightforward, the introduction of network analysis requires
specialised training.
ii. Network analysis is not very useful for planning repetitive type of work. The planning
of such projects needs scheduling rather than preparation of a ladder-type network.
iii. Network analysis provides the means for making decisions, but the actual decisions
have to be made by the management itself. It is not a substitute for bad management.
iv. Network analysis indicates practical courses of action to accomplish specified time
objectives. A project network shows the sequence and inter-dependence of activities.
A network is scheduled to determine the commencement and termination date of each
activity for accomplishing the task within stipulated time by using the optimum level
of resources. It is the schedule, which outlines a plan for execution of work and not
the network itself.
5 CASH FLOW PROJECTIONS AND FORECASTING
A cash flow is the transfer of money into or out of a company (Frank Harris, 2021). A cash
flow projection therefore is a forecast of a company’s expected cash inflows and outflows.
These projections are made for a specific period of time such as a month, quarter or a year. A
cost baseline(S-curve) is the outcome of these cashflow projections. The minimum required
document required for cash flow projections include;
a) Project major cost breakdown
b) Project summary schedule, including engineering, procurement and construction
c) Available payment schedules of major contracts.
5.1 Reasons for formulating cash flow projections
a) They help participants to predict cash shortfalls or surpluses. This formulation of
strategic practices to counter the periods that usually suffer negative cashflows.
b) They allow participants to estimate the effects of the change to the project.
Contractors who undertake cash flow forecasting do so at two levels;
A. At the estimating and tendering stage
B. Calculation of the cash flow forecast for the company (Frank Harris, 2021)
Chen (2007) stated the following as the basic steps of developing a cash flow projection;
a) Confirm key cost breakdown
b) Identify the timeline(duration) of each breakdown
c) Secure available payment schedules of major contracts
 d) Calculate periodic and cumulative cash flow
e) Plot cash flow curve
5.2 Factors that affect project cashflows
a) Duration of new projects
b) Profit margin on these projects usually 5%
c) Retention conditions
d) Delay in receiving payment from the client
e) Credit arrangements of the suppliers, plant hirers and sub-contractors
f) Phasing of the projects in the company’s work load
g) Late settlement of the outstanding claims
5.3 Benefits of project cashflow projection
a) They help businesses or construction firms to make informed decisions about where
to invest their resources.
b) They allow businesses to anticipate and plan for periods of negative cashflow.
c) They provide business with a better understanding of their financial position
d) They enable these organizations to track their progress overtime and identify trends.
6 STATISTICAL APPROACHES
These are methods of analysing or representing statistical data. This comes in handy when
dealing with project uncertainties because it includes tools and techniques that managers can
deploy to interpret specific patterns in the data pertaining to the project management process
to predict the future more accurately.
There are different statistical approaches used in project management to manage the different
resources, control time, cost and quality on the different projects. These include the
following;
6.1 Monte Carlo simulation
This is a risk management technique which project managers use to estimate the impacts of
various risks on the project cost and project timeline. Using this method, you can easily find
out what will happen to the project schedule and cost in case any risk occurs. It is used at
various times during the project life cycle to get the idea on a range of probable outcomes
during various scenarios.
With the help of this quantified data, project managers not only get a clear idea about the
project timeline but also communicate with clients regarding the progress and costs of the
project. This removes the odds of potential quarrels to a large degree and bolsters client
relationships.
Application
a) All the tasks of a project are allotted and the data is fed to the Monte Carlo
automation.
b) Various timelines are shown by the tool such as the probabilities of completion of one
task in a specific number of days.
c) A number of simulations are done on these probabilities ranging in a few thousand
and all of them generate the end dates.
d) Hence, the output of the Monte Carlo Analysis is not a single value, but,
a probability curve. This curve depicts the probable completion dates of various
tasks and their probability values.
6.2 S curve
This is a graph that is used to describe, visualize and predict the performance of a project
over time. It makes it easy for project stakeholders to track progress and understand
productivity. Analyzing these graphs can identify whether you are over or underperforming
compared to project goals and identify potential issues to resolve them quickly.
6.2.1 Types of S curves
1. Baseline S curves
2. Costs vs Time S curves
3. Man, hour vs time S curves
4. Value and percentage S curve
6.3 Gantt chart
This is a type of bar chart, that illustrates a project schedule. It can be applied in project
management in the following ways;
a) It helps to work out practical aspects, such as the minimum time it will take to deliver
and which tasks need to be completed before others can start
b) Identifying the critical path: the sequence of tasks that must individually be completed
on time if the whole project is to be delivered on time.
6.4 Three-point estimate
This is a technique used in project management and systems applications for the construction
of an approximate probability distribution representing the outcome of future events, based
on very limited information. It mainly involves the use of the following;
6.4.1 Poison distribution
This is a useful statistical tool to use when you want to improve the operations of a project, to
get an over view of probability values to help with project requirements and planning.
In construction project management it can be used to count;
a) The number of project human resources acquired in a given period of time.
b) The number of project tasks completed in a given week and number of project change
requests processed with a given month.
It can also be used in projects involving queues on lines and the number of occurrences of an
event over a time period.
6.4.2 Beta distribution
This is a three-point estimation technique used in project management especially PERT
which recognizes the uncertainty in the estimation of the project time. It provides powerful
quantitative tools coupled with the basic statistics to compute the confidence levels for the
expected completion.
With it you can effectively visualize your projects expected timeline, identify complicated or
risk tasks and provide confidence to the team. It can be used to find which activities on the
critical path should you focus your attention on to meet the schedule.
This can be obtained by the use of the optimistic, most likely time and pessimistic time as a,
m and be respectively. The mean variance and standard deviation can be obtained from
µ = (O + 4M + P)/ 6
6.4.3 Triangular distribution
This is a statistical approach used when there is insufficient historical data to estimate
duration of an activity. The ideal time range to finish all the different tasks can be obtained
using this. It is based on three-point points that consider estimation and uncertainty. This can
be expressed as Expected duration of an activity(E) = (O+M+P)/3
6.5 Normal distribution
This is used mainly in construction management to manage costs and time on sites. This is
particularly used in PERT network technique analysis.
6.6 Activity diagrams
This is a graphical representation of workflows of stepwise activities and actions with support
for choice, iteration and concurrency.
6.7 Linear scheduling
This is mainly used in the construction industry to schedule resources in repetitive activities
commonly found in highways, pipe line, high raise building and rail construction projects.
It schedules activities in such away that resource utilization is maximized and interruption in
on going process is minimized including hiring and firing.

7 References
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