Topic 1: Project Cycle The Plan must be SMART:

Construction – it is the building, making, or raising • Specific

of something, be it a small or large structure. • Measurable
“Humans are hardwired to create and build things • Attainable
to satisfy their advancing curiosity and seek for • Realistic
knowledge” • Timely

To erection of modern structures, the beginning Pre-Construction Phase – begins with

John Smeaton "Father of Civil Engineering" construction documents, which translate early
planning into contract paperwork that will be
• The first engineering school, the National submitted for a building permit and communicated
School of Bridges and Highways, in France, was to the contractor to clarify exactly what is being built.
opened in 1747.
• In 1818, the world’s first engineering society, the The Preparation of Construction Documents is
Institution of Civil Engineers (ICE) was founded often divided into Three Phases in
in London. Architecture:
• In 1820, the eminent engineer Thomas Telford • Schematic Design
became ICE’s first president. • Design Development
Construction Project Cycle – it is a composition • Construction Documentation
of the core stages or phases that every construction Submittal Procedures:
project follows.
• Deadlines for submittal delivery
• Buildings • Transmission method for submittals
• Bridges • Procedure for reviewing submissions
• Dams • Review of deadlines
• Actual Construction • Controlling communications and documents
• Delivery of Materials
• Excavation The Outputs of the Pre-Construction Phase:

5 Phase of CPC: • Project Scope

• Project Budget
1. Design Conception Phase • Project Details
2. Pre-Construction Phase
• Project Team
3. Construction Phase
• Project Materials
4. Performance and Monitoring Phase
• Project Permits and Inspection
5. Project Closure Phase
• Project Communication
Design Conception Phase – also known as
Construction Phase – the construction phase is
initiation and initial planning; it is the early phase of
the physical process of building and all other
establishing and defining the project’s objectives
associated activities such as landscaping,
and analyzing the plan’s feasibility.
refurbishing, site clearance, and demolition.
The Team:

• Engineer/Construction Manager
• Client/Owner
• Architect
 Traditional (Design-Bid-Build) Delivery
Construction Administration:
• Quality Control Inspections
• Check and Approve Technical Submittals
• Monitor Contractors
The Following Characteristics Define a
Successful Implementation Stage:
• Resource allocation
• Task management
• Logistics
• Implementation of project management plans
as per the deadlines
• Tracking project execution
• Daily Status Meetings
• Quality Control
• Safety Management
The construction phase is a linear process.
The construction phase is risky.
Performance and Monitoring Phase – is primarily
about the comparison between the projected
performance set forth in the contract with the actual
performance occurring on the job site.
Areas Covered in Project Monitoring:
• Scope
• Budget
• Schedule
Project Closure Phase – also known as project
closeout, is the final stage of the project This
concludes all activities across all Project
Management Process Groups to complete the
project, phase, or contractual obligations formally.
5 Steps to Project Closure Phase:
• Transfer all deliverables
• Complete the contracts
• Have a retrospective meeting
• Disband the team
• Document all learnings
Importance of Project Closing:
Project Closing serves an important purpose for
the organization and helps it avoid unfavorable and
adverse scenarios. It helps you transition your
project got the client smoothly and helps you not
repeat the same mistakes again.
Topic 2: Contract and Specification
Construction Contract Bundle:
• involve two parties
• mutual benefit
• increases performance
• lowers risk
Construction Contracts:
• protect both parties in the agreement
• agreement for legal liability
Needed to Form a Valid Construction Contract:
• Offer – a promise by one party to enter into a
contract on certain terms. It must be: specific,
complete, capable of acceptance, and made
with the intention of being bound by acceptance.
• Acceptance – it is the act by which the Client
recognizes that the work was executed
according to business contracts, their
implementation complies with the rules of art
and their destination.
• Consideration – a promisor may swap their
promise for consideration in the form of a
promise, or performance. A contract's main
component is consideration.
• Legality – the courts adopt an objective test or
letter to determine the parties' intentions, asking
whether a reasonable person would consider
the agreement to be legally valid.
Essential Construction Documents:
• The Construction Agreement – is "the
contract", is a legal agreement between
 contractors and clients that presents, in detail, incurred during the project as well as a preset
the specifications and terms of the project. profit margin.
• General Conditions – is the framework of the
Benefits:
construction contract documents where rights
and obligations of the contracting parties are • Flexible and adaptable
established. • Handles miscalculations
• Special Conditions – are typically an addition
Risks:
or amendment to the general conditions.
• Scope of Work – is "the statement of the work", • Difficult to justify some costs
the document that will describe the precise tasks • Must front material costs
and objectives of each contractor.
3. Time and Materials Contracts – contractors
• Drawings – are a collaborative effort between
are reimbursed for the cost and materials as well
the architect, client, and the contractor that
as labor at an established pay rate.
provide a simple overview of the project as a
whole. Benefits:
• Specifications – are the technical data that will
• More agile
outline all the quality standards, acceptable
materials, and any quality testing necessary to • Simple negotiations
ensure compliance. Risks:
• Bill of Quantities – is an itemized list of the
various materials, parts, and labor required • Potentially time consuming
typically provided during the bidding process. • May not reward efficiency
• Construction Schedule – is a developed 4. Unit Price Contracts – divides the work to be
schedule done through Critical Path Method, completed into separate units, which the
Gantt Charts, a line of balance, and any other contractor bills for individually.
way of outlining the project.
• Schedule of Values – is provided by a Benefits:
contractor which lists all the work items from • Simplified invoicing
start to finish; it can help keep the cash flowing • Consistent profit margin
and bills paid on time.
Risks:
Common Types of Construction Contract:
• Difficult to predict total volume
1. Lump-Sum/Fixed Price Contracts – a fixed
• Remeasurement can delay payment
total price is set for the entire project rather than
individual aspects. 5. Guaranteed Maximum Price (GMP)
Contracts – establishes an upper limit for
Benefits:
construction costs, and contractors absorb
• Simplified bidding costs above this set point.
• Potentially high profit margins
Benefits:
Risks:
• Quicker bidding and financing
• Miscalculations are costly • Incentivize savings
• Bigger projects amplify risks
Risks:
2. Cost Plus Contracts – owner pays the • Can be tough for contractors
contractor for costs (materials, labor, overhead)
• May take longer negotiate
Factors that could Affect the Selection of
Construction Contract:
• Project Objectives
• Project Constraints
• Project Delivery Method
Project Objectives:
• Recognize project requirements.
• Define necessary costs, schedule, list of
deliverables, and delivery dates.
• Establish resources needed.
Project Constraints:
• With any project, there are limitations and risks
that need to be addressed to ensure the
project’s ultimate success.
• The three primary constraints that project
managers should be familiar with are time,
scope, and cost.
Project Delivery Method:
• Project delivery method determines the
relationships between parties getting involved
in the project and how they interact with each
other from project initiation to project closure.
Construction Specification – a document that
states how a building is to be constructed,
demolished, altered, or removed.
Importance:
The specification specifies the project's aim,
performance, and construction. It can be used to
refer to the quality and standards that should be
followed. Materials and goods from producers can
be precisely specified. It is possible to identify
installation, testing, and handover needs.
Purpose:
The work and workmanship necessary for any
building project are detailed in construction
specifications, or specs. A specification is defined
as "written documentation detailing the scope of
work, any materials to be utilized, installation
procedures, and the workmanship quality under
contract."
Prescriptive Specification:
Provide step-by-step details and instructions on
how the types of materials to be used and the
desired installation methods.
Performance Specification:
It provides all of the operations requirements to
complete a project. Instead of giving detailed
instructions on how to achieve the desired final
product, performance specs will describe the
anticipated result.
Proprietary Specification:
It is used when a specific type of product or
material is required for installation. Typically,
proprietary specs are used when doing
renovations to an existing structure, and the client
needs to match the improvements to the
completed portion.
Topic 3: Construction Project Organization
Project Management:
A project is a temporary endeavor undertaken to
create a unique product (1), service (2), result
(3), and progresses elaborately.
Project Management – the art and science of
coordinating people, equipment, materials, money,
and schedules to complete a specified project on
time and within the approved cost. It is also the
application of knowledge, skills, tools, and
techniques to project activities to meet project
objectives.
Program & Portfolios:
Program Management – a group of related
projects, driven by a shared business need.
Portfolio Management – all projects, programs,
related or unrelated, driven by an organizational
alignment.
Difference: 5. Resources – necessary to meet the objectives
of the project, and to satisfy the client's
Program management manages
requirements. Examples of resources in a
similar projects while portfolio
construction project are Materials, Labors,
management manages dissimilar
Tools, and Equipment.
projects or programs. The scope of
6. Risks – is exposure to the possibility of
program management is broader
economic or financial loss or gain, physical
than the project scope, and a portfolio has an
damage or injury, or delay, as a consequence
organization-wide scope, which changes with the
of the uncertainty associated with pursuing a
strategic objectives of the organization.
particular course of action.
Projects vs. Operations:
Types of Risks:
Projects
Technical Risks – include poor design,
• Temporary inadequate site investigation, and uncertainty
• Unique over the source and availability of materials
• Create new product and services and appropriateness of specifications.

Project Manager – protects the project outcome Logistical Risks – include availability of
i.e., new product, services, is concerned with resources such as construction equipment,
scope, schedule, cost, quality. spare parts, fuel and labor and availability of
sufficient transportation facilities.
Operations
Construction Risks – include uncertain
• On-going productivity of resources, weather or seasonal
• Repetitive implications and industrial relations problems.
• Sustain the Business
Financial Risks – include inflation, availability
Operations Manager – prioritize Service and fluctuation of foreign exchange, delay in
Continuity, is concerned with capacity and service payment, repatriation of funds and local taxes.
delivery.
Political Risks – include constraints on the
Project Performance Baselines and availability and employment of expatriate staff,
Constraints: customs and import restrictions and
procedures, difficulties in disposing of plant
and equipment and insistence on using of
local firms and agents.

All project performance is measured against:

1. Scope – represents the work to be
accomplished, i.e., the quantity and quality of
work.
2. Schedule – refers to the logical sequencing
and timing of the work to be performed.
3. Cost / Budget – budgets are used to anticipate
all costs and expenses of the building process.
4. Quality – defined as degree of conformity to
standards, delivering projects with no defects.
 7. Customer Satisfaction – measures how
products or services supplied by a company
meet or surpass a customer’s or owner's
expectation.
Organizational Project Maturity Model:
Level 1 – Project Success thru Personal Heroics
Level 2 – Repeatable Success thru Methodology
or Framework
Level 3 – Project Success with realized Benefits
Level 4 – Corporate Success by Doing the Right
Projects
Project Management Office (PMO):
A project management office (PMO) – is a group
or department that defines, maintains, and
ensures project management standards across an
organization.
Types of PMO:
1. Supportive – a supportive PMO collects all
projects in an organization, supplies best
practices, templates, training, but with a low
degree of control.
2. Controlling – a controlling PMO checks if the
project management tools, processes and
standards are being applied in the projects,
with some degree of control.
3. Directive – a directive PMO maintains a high
degree of control in the project management
process within the organization.
Stakeholders – are individuals who either care
about or have a vested interest in your project. They
are the people who are actively involved with the
work of the project or have something to either gain
or lose as a result of the project. The customer,
subcontractors, suppliers, and sometimes even the
government are stakeholders.
NOTE: Key stakeholders can make or break the
success of a project. Even if all the deliverables are
met and the objectives are satisfied, if your key
stakeholders aren’t happy, nobody’s happy.
 Role of Stakeholders:
The stakeholders may be involved in the creation
of the project charter, project management plan,
approve project changes, identifying constraints,
requirements, and be involved in risk
management.
Role of Functional Manager:
The functional manager manages and "owns" the
resources in a specific department, such as IT,
public relations, or marketing, and generally
directs the technical work of individuals from the
Roles of each Designation within the functional area who are working on the project.
Organization:
Role of Project Manager:

• Determine the resources needed.

• Negotiate with resource managers for optimal
available resources.
• Confirm availability of resources assigned.
• Create a project team directory.
• Create project job descriptions for team
members and other stakeholders.
• Make sure all roles and responsibilities are
clearly assigned.
• Understand the team members' needs for
training related to their work.
• Create recognition and reward systems.
• Create a formal plan covering topics as how
team will be involved in the project and what
roles they will perform.
Role of Sponsor:
Sponsor is one who provide the financial
resources for the project, and usually taken over
by senior management in the performing
organization. On most cases, they are the
program or portfolio manager.
Role of the Team:
The team is to help plan and execute what needs
to be done by creating WBS and time estimates
for their work packages or activities. They
complete work packages or activities and help
look for deviations from the project management
plan.
 Topic 4: Construction Estimate
Construction Estimate – an estimate for any
construction work may be defined as the process of
calculating the quantities and costs of the various
items required in connection with the work.
An estimate is prepared by calculating the
quantities from the drawings for various items and
multiplying them with the unit cost of the item
concerned.
To Prepare an Estimate one requires the
following:
• Drawing – the drawing is the basis from which
quantities of various items for a work are
calculated.
• Rates – rates for different items of works are
vital factors to determine the estimated cost.
• Specifications – presentations are
communication tools that can be used as
demonstrations.
o General – the general specification forms
the general idea for the project.
o Detailed – it describes every item of work in
the estimate.
Purpose of Estimation:
• To have an idea of overall construction cost.
• Estimation for public construction.
• For timely procurement of materials as per the
estimated quantities.
• To set a deadline for various construction
activities.
• Determine requirement of tools, equipment, and
plans.
• To arrange labour as per the work.
• For inviting tenders and prepare bills.
• To measure cost to benefit ratio.
• For an existing property, estimate is required for
validation.
Different Types of Estimates:
1. Detailed Estimate – this includes the detailed
particulars for the quantities, rates, and costs of
all the items involved for the satisfactory
completion of a project. This is the best and the
most accurate estimate that can be prepared.
A Detailed Estimate is Accompanied by:
• Report,
• Specifications
• Detailed drawings showing plans,
• Design data and calculations and,
• Basis of rates adopted in estimate.
2. Preliminary Estimate – this is an approximate
estimate to determine an approximate cost in a
short time and thus enables the authority
concerned to consider the financial aspect of
the scheme, for according sanction to the
same. Such an estimate is framed after
knowing the rate of similar works and from
practical knowledge in various ways for various
types of works.
3. Quantity Estimate – this is a complete
estimate or list of quantities for all work items
required to complete the concerned project. the
quantity of each item of work is worked out from
the respective dimensions on the drawing of
the structure. The purpose of the bill of
quantities is to provide a complete list of
quantities necessary for the completion of any
engineering project, and when priced, it gives
the estimated cost of the project.
4. Revised Estimate – is a detailed estimate of
the revised quantities and rates of items of work
originally provided in the estimate without
material deviations of a structural nature from
the design originally approved for a project.
5. Supplementary Estimate – during the
execution of project, structural modification is
required or additional work is added for
construction. supplementary estimates grant
approval for one-time expenditures to cover
additional spending on items that were
unknown at budget time.
6. Complete Estimate – the complete estimate is
related to the work in addition to the main
contract or to the 'detailed estimate.' projects
the expectation of total cost at the end of a
project. It represents the final project cost given
the costs incurred to date and the expected
costs to complete the project.
7. Annual or Repair Estimate – after completion
of a work, it is necessary to keep the
 maintenance aspect in view for its proper
functioning. An estimate is prepared for the
items which require renewal, replacement,
repairs, etc. For maintenance purpose. The
total estimated cost of maintenance of a
structure is generally kept within the prescribed
limits on the percentage basis of the cost of
construction of the structure and its importance.
This cost can vary according to the age and
importance of the structure.
Construction Estimation Techniques:
Analogous Estimating – seek the help of experts
who have experience in similar projects, or use
your own historical data. It basically uses analogy
from previous projects.
Parametric Estimating – there is statistical
modeling, or parametric estimating, which also
uses historical data of key cost drivers and then
calculates what those costs would be if the
duration or another of the project is changed.
Bottom-Up Estimating – a more granular
approach is bottom-up estimating, which uses
estimates of individual tasks and then adds those
up to determine the overall cost of the project
Three-Point Estimate – another approach is the
three-point estimate, which comes up with three
scenarios: most likely, optimistic, and pessimistic
ranges. These are then put into an equation to
develop an estimation.
Reserve Analysis – determines how much
contingency reserve must be allocated. This
approach tries to wrangle uncertainty.
Cost of Quality – uses money spent during the
project to avoid failures and money applied after
the project to address failures. This can help fine-
tune your overall project cost estimation.
Construction Estimation Process:
Commissioning a Project – commissioning is
essentially a verification process that ensures a
builder designs, constructs, and delivers a project
according to the owner’s requirements. It begins
early in the construction process and can last until
up to a year of occupancy or use.
Determining Requirements – the process
defines the project’s requirements, its functions will
be, how much it should cost, where it will be
located, and any legal requirements it must comply
with. The total materials required to build and
consideration to quantities.
Develop Estimating Plan – assemble a cost-
estimating team, and outline their estimation
techniques. Develop a timeline, and determine
who will do the independent cost estimate. Finally,
create the team’s schedule.
Determine Cost Estimating Techniques – define
a work breakdown structure (WBS), and choose an
estimating method that is best suited for each
element in the WBS. Cross-check for cost and
schedule drivers; then create a checklist.
Identify Rule, Assumptions and Obtain Data –
clearly define what is included and excluded from
the estimate, and identify specific assumptions.
Conduct Risk and Uncertainty Analysis –
determine the cost, schedule, and technical risks
inherent with each item on the WBS and how to
manage them.
Documentation of the Estimate – documentation
for each step in the cost estimate process to keep
everyone on the same page with the cost estimate.
Then you can brief the project stakeholders on cost
estimates to get their approval.
Topic 5: Cost Management
Cost Management:
• Cost management is a process involved in the
planning, estimation, budgeting and controlling
cost so that budget can be completed in
estimated budget. It is also considered a form of
management accounting that helps to identify
future expenditures in a business to reduce
budget overages.
• Cost management activities are conducted
throughout the project life cycle, from planning
and budget allocation to controlling costs during
project execution and assessing a project’s cost
performance upon completion.
Basic Principles of Cost Management: Four Types/Steps:
1. Cash Flow Analysis – determines the • Resource Planning
estimated annual cost and benefits for a project • Cost Estimation
and the resulting annual cash flow. • Cost Budgeting
2. Tangible Costs or Benefits – are those costs • Cost Controlling
or benefits that an organization can easily be Resource Planning:
measured in dollars.
Resource planning is the initiation step in the
3. Intangible Costs or Benefits – are those costs Construction Cost Management Process. It is the
or benefits that are difficult to measure in process of identifying the resources required to
monetary terms. execute a project and take it to completion.
4. Direct Costs (or Cost of Goods Sold) – are
Often Included in Resource Management Plan:
costs that can be directly related to production
and services of the project. • Resources
5. Indirect Costs – are costs that are not directly • Cost
related to the products or services of the project. • Availability
• Responsibilities
6. Sunk Costs – is money that has been spent in
• Dependencies
the past.
Cost Estimating:
7. Learning Curve Theory – is based on the
concept that the more an individual repeats a • Cost estimation is a quantitative assessment of
process or activity, the more adept they become the likely costs for all the resources required to
at that activity. complete the activity/project. It is a methodology
for forecasting and predicting the cost and
8. Reserves – money included in a cost estimate
expenditures of a project and to produce a
to mitigate cost risk by allowing for future
budget.
situations that are difficult to predict.
• Contingency Reserves (known unknowns) • This includes, but not limited to labor,
• Management Reserves (unknown subcontracts, materials (including
unknowns) consumables), plant and construction
equipment, services, and facilities, etc., as well
Advantage: as inflation allowance and contingency costs.
cost estimation is a continuous process.
• Identify each of the costs of the project,
• Ensure the expenses are approved before Approximate or Rough Estimate – as the name
purchasing, suggests, is an estimate prepared to obtain an
• Keep a central record of all cost incurred, and approximate cost in a short time. For certain
• Control the overall cost of the project. purposes, the use of such methods is justified.

Objective — To Provide a Methodology for: Types of Rough Estimate:

• Deriving the project baseline budget and • Rough Estimate Factor Based on Actual Cost
associated tracking tool, • Rough Estimate Factor Based on Estimated
• Defining how cost reporting will take place, Cost
• Describing how cost variance will be managed • Rough Estimate Factor Based on Secondary
in the project, and Data
• Providing information for decision making.
Detailed Estimate – It involves breaking down the
project scope into smaller unit prices that can be
priced individually. It includes costs for the Cost Control:
materials, equipment and labor required to
Cost control is a process to hold expenditure within
complete the project. Adding these gives you a
the approved budget by monitoring and appraisal
total project cost.
the cost performance. It is the process of
Output of Detailed Estimate: monitoring the status of the project to update the
project budget and managing changes to the cost
• Bill of Quantities (BOQ) – is use for tendering
baseline.
of a project. Items needed including labor and
its cost can be seen here. Output of Cost Control:
• Bill of Materials (BOM) – is a list of raw • Budget Updates
materials as well as components and quantities • Corrective Actions
of materials needed to produce an end product. • Revised Cost Estimate
Data Required for Preparing a Detailed
Topic 6: Construction Project Terms of
Estimate
Reference
To prepare a detailed estimate the estimator
Terms of Reference (TOR):
must have the following data:
• Includes a range of criteria that are necessary
• Architectural and engineering working
for strategic project management decision-
drawings with drawing notes.
making.
• Specifications indicating the exact class of
• The TOR states the planned activities, typical
materials to be used.
inputs and outputs, project budget, working
• The rates at which the different items of work
schedules, and job descriptions.
are carried out.
Purpose:
Cost Budgeting:
To specify the amount and type of work to
Cost budgeting is a process of aggregating the
accomplish the project. It is a governance
estimated cost of individual activities or work
document that establishes and determines the
packages to establish a project budget or cost
relationships between all project stakeholders.
baseline for monitoring and measuring
performance add up cost estimate to make project Critical Information’s:
budget and then time phase project budget with
1. The rationale behind undertaking the project.
the help of a construction schedule and schedule
2. The proposed methodology of project
of quantity, and develop cost baseline.
management, along with work plans and activity
Budget Components: schedules.
3. The expected resource requirements,
primarily regarding personnel.
4. Reporting rules and requirements.
Included in TOR:

• Pre-Feasibility and Feasibility Analyses

• Appraisal Activity
• Implementation Contracts Designing and
Monitoring
• Evaluation Studies
• Reporting and Audit
• Other Advisory Work Required at any Project
Stage
Content Format:
Please note these are the common sections of a
TOR template. They can be changed or omitted,
depending on the scope of a particular project. The
following below description of the TOR sections is
general and provided as an overview for guidance
purposes.
1. Background
• The background of a project consists of the
summary of a project.
• It should include a reference to a
programming context and an obvious
rationale for executing the project. The client
or reader will receive a brief description of the
project' s purpose.
2. Objectives
• This mainly composed of the intended
outcomes that can be provided realistically
upon project completion, with the use of
available resources, and anticipated timeline.
• The format of the objectives section of the
Terms of Reference should list intended
results at various project lifecycle stages.
Further, the main goals of the project, which
must be accomplished, should also be stated.
Moreover, the project manager should make
it quite apparent who the project' s target
audience is and what is expected of it.
Here is an Illustration of what it should
Entail:
Work Type / Project
Stage
Generic Objective
To start the soil
investigation or
Project Completion
subsurface exploration of
the location.
To know if the project can
Feasibility Study
be executed.
3. Issues – are the points of discussion or dispute
throughout the project lifecycle. Unresolved
issues may cause project failure.
Generic Issue Evaluation Criteria for most
Projects:
• Impact – this measure helps figure out the
extent to which the project’s benefits
received by the target audience have an
overall effect on larger numbers of people
concerned.
• Efficiency – this criterion determines how
well a given activity transforms available
resources into desired outputs in terms of
quantity, quality, and time.
• Relevance – it helps analyze whether a
given activity is being performed with the
desired benefits.
• Effectiveness – it concerns how far the
project’s outputs have been utilized and
whether the project’s purpose has been
realized.
• Sustainability – this criterion identifies
whether the project’s positive outcomes will
continue after funding ends.
4. Construction Methodology – also called
project execution methodology, refers to the
planned method of construction, taking to
account all contractual and legal requirements,
construction constraints, risks, and
opportunities.
Characteristics of Construction
Methodology:
• Strict
• Specific
• Systematic
Construction Methodology Include:
• Roles and Responsibilities
• Health Safety and Environmental
Procedures
• Quality Control / Assurance Requirements
Construction Methodology for Building
Construction Project (Civil Work):
• Initial Survey and Site Checking
• Setting Out
• Excavation
 • Backfilling and Compaction
• Reinforcing Steel Works
• Form Work
• Concreting
• Waterproofing
• Plastering
Example of Project Construction Method:
PRINCE2 (Projects in Controlled
Environments) – enforces the need to split
project accountability between a board and a
project manager. While the board is
responsible for bringing in the required
resources and focusing on business
justification, the project manager handles all
tasks and manages the team daily.
5. Expertise – the expertise needed for doing a
project defines a set of professional
requirements for the individuals and teams
involved in project implementation.
The Expertise Section of a Project TOR
should Identify the following:
• The type of work involved in the project.
• The type of skills and abilities required to do
project work.
• The exact number of individuals involved,
including a description of their qualifications,
experience, and other professional
attributes.
• The period of engagement of each team
member.
• A description of the duties and responsibility
per teammate.
• The relationship between the team
members, including leadership roles.
6. Reporting – reports provide valued information
about project performance over a certain period.
Reporting Requirements:
• Table of contents for project reports
• The language to be used in reports
• Computer software programmes to be used
• People responsible for reporting and
approving
• Other sufficient information and, etc.
7. Work Plan - is a kind of strategy that aims to
help solve problems throughout a project and
boost employee drive and focus.
Basis of the Summary of the Anticipated
Work and Time Schedule:
• An analysis of the issues, in terms of the
evaluation criteria.
• The proposed implementation methodology.
• The reporting requirements.
• The finance resources allocated to the
project.
Topic 7: Project Time Management
Project Time Management – involves analyzing
and developing a schedule and timeline for project
completion. Formalized time management
processes provide a buffer for things like
unexpected roadblocks and under or over-
estimated project timelines.
Steps in Project Time Management:
1. Plan Schedule Management
2. Define Activities
3. Sequence Activities
4. Estimate Activity Resources
5. Estimate Activity Durations
6. Develop Schedule
7. Control Schedule
Plan Schedule Management:
• Defines how the project schedule is managed
throughout the project lifecycle.
• The plan provides guidance and sets
expectations for project schedule policies and
procedures for planning, developing, managing,
executing, and controlling the project schedule.
• The project team uses expert judgment,
analytical techniques, and meetings to develop
the plan schedule management.
A PSM Includes:
• Project Schedule Model Development
• The Scheduling Methodology
• Level of Accuracy and Units of Measure
 • Control Thresholds • Start-to-Finish – activity A must start
• Rules of Performance Measurement before B can finish.
• Reporting Formats • Mandatory Dependencies – one that “must
• Process Descriptions be” carried out at a particular time. It is usually
Define Activities – the process of identifying and a requirement of some kind based on contracts,
documenting the specific action to be performed to laws, company procedures, and physical
produce the project deliverable. limitations. These dependencies cannot be
changed without affecting the project schedule
Methodology or budget.
Inputs:
Lags and Leads
• Schedule management plan
• Scope baseline are ways to put time between two
activities in order to accurately
• Enterprise environmental factors
define the logical relationship.
• Organizational process assets
Tools and Techniques:
Lags – are the amount of time a successor
• Decomposition
activity will be delayed with respect to a
• Rolling wave planning
predecessor activity, resulting in added or
• Expert judgement
positive time.
Output:
Leads – are the amount of time a successor
• Activity list activity can be advanced with respect to a
• Activity attribute predecessor activity, without experiencing a lag
• Milestone List (negative lags).

Sequence Activities – the process of identifying
and documenting relationships among the project
activities.
Types of Sequence Activities:
• Precedence Diagramming Method (PDM) – a
technique in which activities are linked, by one
or more logical relationships, to show the
sequence in which activities are to be
performed.
PDM uses four types of dependencies or
logical predecessor-successor
relationships:
• Finish-to-Start – activity A must finish
before B can start.
• Start-to-Start – activity A must start before
B can start.
• Finish-to-Finish – activity A must finish
before B can finish.
• Discretionary Dependencies – one that is not
based on a "have to”, but on a "should". These
decisions are usually based upon best
practices, and business knowledge. These
dependencies can be changed without
impacting the project schedule or budget.
Estimate Activity Resources – a process that
helps the project team in assessing the nature &
number of materials required for the project.
Resources are one of the essential tools for the
project and choosing the resource prerequisites
leads to successful project management. The
process of estimating activity resources is a
fundamental part of developing the project.
Steps involved in Estimate Activity Resource
Process:
1. Reviewing Resource Availability
2. Reviewing WBS and Activity List
3. Identifying Potentially Available Resources
 4. Reviewing Historical Data about Reuse of
Resources
5. Reviewing Organizational Policies on
Resource Usage
6. Expert Judgment on What Resources are
Needed and Available
7. Make or Buy Decisions During the Process
8. Breaking Down the Complex Activity to
Estimate
9. Quantify Resource Requirements by Activity
10. Update Project Documents
Goal of Estimate Activity Resource Process:
Estimating the Activity Resources assists the
project management team to categorize the type,
quantity, and characteristics of resources that are
required to complete the activity which allows for
more accurate cost and duration estimates.
Estimate Activity Durations – are approximations
of how much time a project task will take. They can
be in the form of different time periods, such as
hours, days, weeks, or months, and usually refer to
work or business periods.
Duration – the actual amount of time worked on
an activity plus elapsed time.
Effort – the number of workdays or work hours
required to complete a task.
Importance of Estimate Activity Durations:
1. Create project schedule
2. Provide a baseline
3. Check team capabilities
4. Estimate cost of a project
5. Communicate with stakeholders
Estimate Activity Duration Techniques:
• Analogous Estimating – project managers
base their estimates on historical data, the
duration values of previous similar projects.
They use these past observations as an
"analogy" or comparison to guess how long the
current activities will take.
• Parametric Estimating – project managers
conducting parametric estimating base their
guesses on statistical calculations. They study
the values of work time per unit in past projects
and extrapolate a duration estimate, basing
their prediction on a trend.
• Expert Judgment – the process of consulting
an expert in the field for an activity duration
estimate.
• Group Decision-Making – a project manager
can consult their team members to make a
group decision about an activity duration
estimate. Involving the project team in the
estimation process can enable a project
manager to make a guess based on more
information and perspectives, which has the
potential to make the estimate more reliable.
• Three-Point Estimate – project managers
come up with three data points: optimistic,
pessimistic, and most likely. Three-point
estimates are needed for PERT and Monte
Carlo simulation.
Most Likely (M) – the cost/duration of activity,
based on a realistic effort assessment for the
required work and any predicted expenses.
Optimistic (O) – the activity cost/duration
based on an analysis of the best-case
scenario for the activity.
Pessimistic (P) – the activity cost/duration
based on an analysis of the worst-case
scenario for the activity.
• Bottom-Up Estimating – a project manager
estimates the duration of the minor
components of project activity and adds them
together to get a final activity duration.
Develop Schedule – process of analyzing activity
sequences, durations, resource requirements, and
schedule constraints to create the project schedule
model Generates a schedule model with planned
dates for completing the project activities.
In order to Develop Schedule, following are
needed:
• Project Scope Statement – plays a vital role
in develop schedule process because your
project's main goal is completing the project
 scope on agreed time and budget with the
agreed quality.
• Activity List – shows the individual activities
that need to be performed to complete work
packages and respectively the overall project
scope. In the end, project schedule includes the
ordered and organized project activities.
• Network Diagram – show the flow of project
activities from the start of the project until the
end. Therefore, while defining the
interrelationship of activities in develop
schedule process, it will be critical to have
network diagram in hand.
• Activity Duration Estimates – provide the
time estimates for each activity. After
interrelationship of activities is put on the
project schedule, once the time estimates are
defined in each project activity, start and end
dates of each activity will be determined
respectively during the develop schedule
process.
• Activity Resource Requirements – they will
help to show what materials will be needed to
complete an activity or which project team
member or supplier etc. will be performing an
activity. This is why it is an important input for
develop schedule process.
• Resource Calendars – they show the
availability schedule of a project resource. In
order to define exact planned start and end
dates of each activity, you need to take into
account the resource calendars of your team
during develop schedule process.
• Company Calendar – generally include
working and nonworking days of a company
annually. It also includes public holidays as
well. Or if there is a special info day or
conference day that whole company will not
work, these are defined in the company
calendars. During the develop schedule
process, when completing the project
schedule, company calendars must be taken
into account.
Control Schedule – making sure and measuring in
time that everything is moving according to the
project baseline, the starting point.
Steps To Do:
1. Know the status of the schedule.
2. Determine the factors that can cause schedule
changes.
3. Check if any adjustments in schedule happen.
4. Manage changes when they occur.
Tools and Techniques Include:
• Progress reports
• Schedule change control system
• Schedule management chart
Reality Checks on Scheduling:
1. Review draft schedule.
2. Prepare a more detailed schedule.
3. Make sure the schedule is realistic and
followed.
4. Inform management well in advance in
schedule problems.
Project Managers Should Use:
• Empowerment – set clear boundaries and
expectations but also be open with input and
innovation.
• Incentives – motivates positive behavior in
workforce.
• Discipline – ensures individuals work as a
single unit with their team members to achieve
organization goals and objectives.
• Negotiation – holds the key to getting ahead in
the workplace, resolving conflicts, and creating
value in contracts.
 Topic 8: Project Schedule projects that consist of various interrelated
activities.
Project Time Management:
Managing a Project with Network Planning
Time management in project management is an
involves Four Steps:
act of exercising or planning conscious control
over the time spent on specific tasks or activities. 1. Describing the Project
Time management increases productivity the 2. Diagramming the Network
effectiveness, efficiency, or of a person, 3. Estimating Time of Completion
organization, or project. Time management 4. Monitoring Project Progress
includes the processes to manage the timely
Two Methods Used for Network Planning:
completion of the project re quired project.
1. Critical Path Method (CPM) – determines the
Project – is an interrelated set of activities that has
longest path through the network diagram.
a definite starting and ending point and that results
Since all activities must be completed to
in a unique product or service.
complete the entire project, the length of the
Project Management – is a scientific way of critical path is also the shortest time allowable
planning, implementing, monitoring controlling the for the completion of the project.
various aspects of a project such as time, money,
Thus, if the project is to be completed in the
materials, man power & other resources.
shortest time, all activities on the critical path
Scope of a Project: must be started as soon as possible. These
activities are called critical activities. If the
1. Time
project has to be completed ahead of the
2. Scope
activity must be reduced.
3. Quality
4. Cost Further, any delay in completing schedule, then
the time required for at least one of the critical
Time – when adjusting for time, keep in mind that
activities will increase the project duration. The
the amount of time is as important as the type of
activity, which does not lie on the critical path,
time you are measuring. Tradeoffs can require
is called non- critical activity. These noncritical
extended deadlines, adjustments to team calendar
activities may have some slack time.
software, elimination of planning phases, and
more. 2. Program Evaluation Review Technique
(PERT) – is a three-point activity estimating
Scope – is the “size” of the project in terms of the
technique that considers estimation uncertainty
quality, detail, and magnitude of the project’s
and risk by using three estimates to define an
deliverables.
approximate probability for an activity’ s cost or
Quality – refers to the detailed set of deliverables duration.
or features of a project. These deliverables are
The Three Estimates Used are:
derived from a project’s requirements.
• Most Likely (M) – the cost/ duration of the
Cost – often referred to as “resources,” this
activity, based on a realistic effort
triangle point includes all the tools, equipment, and
assessment for the required work and any
support required to complete the project.
predicted expenses.
Network Planning – is basically a planning and • Optimistic (O) – the activity cost/ duration
control technique that is based on the use of a based on an analysis of the best- case
network diagram. However, this technique scenario for the activity.
controlling helps in planning, scheduling and the
 • Pessimistic (P) – the activity cost/ duration
• Leap – an overlap between activities
based on an analysis of the worst- case
that have a dependency.
scenario for the activity.
Project Schedule Network Diagram – visualizes
Difference Between PERT and CPM
the sequential and logical relationship between
CPM PERT tasks in a project setting. This visualization relies on
Is a statistical Is a project the clear expression of the chronology of tasks and
technique of project management events.
management that technique used to
manages well defined manage uncertain
activities of a project. activities of a project.

Activity-Oriented Event-Oriented

Deterministic Model Probabilistic Model

Methods to Draw Network Diagrams:

Estimating Time Completion:
• PDM – Activity on Node
(AON) – boxes are used to
represent activities, and arrows show activity
dependence.
• Arrow Diagramming Method
– nodes (circle) are used to
show dependencies, and arrows represent
activity.
• Graphical Evaluation &
Review Technique (GERT)
– a computer simulation that allows loop • Precedence Diagramming Method - is a
between activities. technique that uses a logical relationship among
Precedence Diagramming Method – Logical scheduled activities to construct the network
Relationship: diagram.

• Finish to Start – the predecessor activity must
finish before the successor activity can start.
• Finish to Finish – the predecessor
activity must finish before the
successor activity can finish.
• Start to Start – the predecessor activity must
start before the successor activity can start.
• Start to Finish – the predecessor
activity must start before the
successor activity can finish.
• Lag – inserted waiting time between activities.
• ES (Earliest Start Time) – the
earliest time at which the activity
can start given that its precedent activities must
have complied first.
• EF (Earliest Finish Time) – equals to the
earliest start time for the activity plus
the time required to complete the
activity.
• LF (Latest Finish Time) – the latest time in
which the activity can be completed without
delaying the project
 • LS (Latest Start Time) – equal to the latest
finish time minus the time required to complete
the activity.
• A Dummy Activity – is a type of operation in a
project network that neither requires any time
nor any resources. It is an imaginary activity
shown in a project network to identify the
dependence among operations.
• Forward Pass – the early start and finish times
are calculated by moving through the network
and consider the predecessor activities.
(Considers Maximum)
• Backward Pass – the latest start and finish
times are calculated by moving backward
through the network. (Considers Minimum)
• Slack Time – the difference between its earliest
and latest start time or between the earliest and
latest finish time. Critical path is the path of
activities having zero slack time.
Example:

The activities with zero float (marked in red) are the critical
activities. In this example, these activities follow a single path
that will be our critical path: a – c – f – h.
Total project time is 21 days.