GENERAL MANAGEMENT

FUNCTIONS
A.
B.
C.
D.
E.
F.

Planning
Organising
Providing staff and resources
Directing or Leading
Controlling
Coordinating and Communicating

ORGANISATIONAL CHART

corporate

Project

Strategic
Director

Directional
General Manager
Project Manager

Process
Manager

Supervisor

Operational

Administrative
Operational

DISTINCT AREAS OF PROJECT

MANAGEMENT

Project integration management to ensure that the various

project elements are effectively coordinated.
Project scope management to ensure that all the work
required (and only the required work) is included.
Project time management to provide an effective project
schedule.
Project cost management to identify needed resources and
maintain budget control.
Project quality management to ensure functional
requirements are met.
Project human resource management to development and
effectively employ project personnel.
Project communications management to ensure effective
internal and external communications.
Project risk management to analyze and mitigate potential
risks.
Project procurement management to obtain necessary
resources from external sources.

TRENDS IN MODERN MANAGEMENT

a.
b.

c.
d.

Management Process Approach

Management Science and Decision
Support Approach
Behavioural Science Approach for HRD
Sustainable Competitive Advantage

PROJECT MANAJERS ROLE

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Figurehead
Leadership
Liaison
Monitoring
Disseminating
Spokesperson
Entrepreneur
Disturbance handling
Resource allocation
Negotiator

MAIN CAUSES OF PROJECT FAILURE

Inadequate Project Formulation
a. Poor planning for implementation
b. Lack of proper contract planning and
management
c. Lack of proper project management during
execution

Client Cost Estimate Failure

Contractors Unrealistic Tendered Cost Estimate
Management Failure

RISKS ASSOCIATED WITH PROJECTS

Risks in construction projects may be classified in a number of

ways. One form of classification is as follows:

Socioeconomic factors

Environmental protection
Public safety regulation
Economic instability
Exchange rate fluctuation

Organizational relationships

Contractual relations
Attitudes of participants
Communication

Technological problems

Design assumptions
Site conditions
Construction procedures
Construction occupational safety

STAGEWISE DECOMPOSITION OF
PROJECTS

Sequential processing whereby the project is

divided into separate stages and each stage
is carried out successively in sequence.

Parallel processing whereby the project is

divided into independent parts such that all
stages are carried out simultaneously.

Staggered processing whereby the stages

may be overlapping, such as the use of
phased design-construct procedures for fast
track operation.

APPROACHES TO ORGANIZE PROJECT

IMPLEMENTATION

Separation of organizations

Numerous organizations serve as consultants or contractors to the

owner, with different organizations handling design and construction
functions. Typical examples which involve different degrees of
separation are:
Traditional sequence of design and construction
Professional construction management

Integration of organizations

A single or joint venture consisting of a number of organizations with a

single command undertakes both design and construction functions. Two
extremes may be cited as examples:

Owner-builder operation in which all work will be handled in house by force

account.
Turnkey operation in which all work is contracted to a vendor which is
responsible for delivering the completed project

MATRIX ORGANAISATION

The Matrix Organization in an Engineering

Division

A Project-Oriented Organization

Example of Construction Management

Consultant Organization

Professional Construction Management

Professional construction management refers to a project
management team consisting of a professional construction manager
and other participants who will carry out the tasks of project planning,
design and construction in an integrated manner

Work with owner and the A/E firms from the beginning and make
recommendations on design improvements, construction technology,
schedules and construction economy

Propose design and construction alternatives if appropriate, and

analyze the effects of the alternatives on the project cost and schedule

Monitor subsequent development of the project in order that these

targets are not exceeded without the knowledge of the owner

Coordinate procurement of material and equipment and the work of all

construction contractors, and monthly payments to contractors,
changes, claims and inspection for conforming design requirements

Perform other project related services as required by owners.

ORGANISATIONAL FEATURES OF
MEGA PROJECTS

The overall organizational approach for the project will change as the
project advances. The "functional" organization may change to a "matrix"
which may change to a "project" organization (not necessarily in this
order)

Within the overall organization, there will probably be functional, project,

and matrix suborganizations all at the same time. This feature greatly
complicates the theory and the practice of management, yet is essential
for overall cost effectiveness

Successful giant, complex organizations usually have a strong matrix-type

suborganization at the level where basic cost and schedule control
responsibility is assigned. This suborganization is referred to as a "cost
center" or as a "project" and is headed by a project manager. The cost
center matrix may have participants assigned from many different
functional groups. In turn, these functional groups may have technical
reporting responsibilities to several different and higher tiers in the
organization. The key to a cost effective effort is the development of this
project suborganization into a single team under the leadership of a
strong project manager

The extent to which decision-making will be centralized or decentralized

is crucial to the organization of the mega-project.

TYPES OF POJECT OPERATION

Traditional Designer-Constructor
Sequence

Owner-Builder Operation

Turnkey Operation

Traditional Designer-Constructor
Sequence
OWNER

DESIGNER ( A/E
FIRM
)
BY COMPETITIVE BIDDING OR
BY NEGOTIATION

CONSTRUCTOR
( CONTRACTOR )

SUBCONTRACTORS

Owner-Builder Operation

Turnkey Operation

OWNER ------------------CONTRACTOR

PERCEPTION OF CONTRACTORS
Key Factors For Success Of The Project

well defined scope

extensive early planning
good leadership, management and first line supervision
positive client relationship with client involvement
proper project team chemistry
quick response to changes
engineering managers concerned with the total project, not just the
engineering elements

Key Factors For Failure Of The Project

ill-defined scope
poor management
poor planning
breakdown in communication between engineering and construction
unrealistic scope, schedules and budgets
many changes at various stages of progress
lack of good project control

PERCEPTION OF OWNERS

All owners have the same perception of their own role, but
they differ significantly in assuming that role in practice

The owners also differ dramatically in the amount of early

planning and in providing information in bid packages

There is a trend toward breaking a project into several

smaller projects as the projects become larger and more
complex

Most owners recognize the importance of schedule, but

they adopt different requirements in controlling the
schedule

All agree that people are the key to project success.