EGK2118:

PROJECT MANAGEMENT FOR

CONSTRUCTION
LECTURE 1: INTRO TO MANAGEMENT PRINCIPLES
B Y M S . FA R A H N A S I H A S U H A I L I
MALAYSIAN
CONSTRUCTION
INDUSTRY : OVERVIEW
 Contributes less than 3 % GDP
 Employs about 800,000 people
 Provides the important infrastructure facilities for the growing population
 Cyclic fluctuations in demand and supply
 Interlinked with the manufacturing, banking, industrial, oil and gas and
other service sectors
 About 64, 000 contractors within the industry
At its best:
 Able to produce/construct projects with outstanding performance
standards ( examples: YTL, IJM, Gamuda, Eversendai Corporation)
 Participation in the global market by Malaysian contractors
MALAYSIAN CONSTRUCTION
INDUSTRY
: THE PROBLEM
Quality Problems
Late Delivery

Health & Safety

Accidents Cost Overrun

Low Technology Environmental Issues

 CONSTRUCTION
PKK
ORGANIZATIONS CIDB

Clients (Public, Private, Quasi

Government) Facilities Management / Maintenance
Project Management Management/Operations Management
Project Manager
Facilities/Maintenance/Operations
Design Process Management Manager
Consultants Construction Project Contract Management Facilities
Design
(Contractor) Management/Mainte
Development nance Companies
Feasibility study Tender Award Construction Handover Decommissioning

Construction Site Management

Documentation & (Construction Manager) Contractors
Tendering
Sub-Contractors
Suppliers (Materials, Plant-Hire
Co’s)

Local
Local Authorities
Authorities (Construction Costing)

(Project Costing)

(Whole Life Costing)

Copyright ©Fadzil CPIM
UiTM2012
OVERVIEW
CHARACTERIS
DEFINITION COMPONENTS IMPORTANCE
TIC

PROJECT LIFE PROJECT PROJECT

PRINCIPLES
CYCLE SUCCESS FAILURE
 DEFINITION
PROJECT “A project is a temporary endeavor undertaken to create a product
or service”
(Project Management Institute Inc.)

“Management is to forecast, to plan, to organize, to command, to

MANAGEME coordinate and control activities of others.”
NT (Henri Fayol; Father of Modern Management)

“The art and science of coordinating people, equipment, materials,

PROJECT money, and schedules to complete a specified project on time,
MANAGEME within approved cost and quality.
NT (Project Management Institute Inc.)
PROJECT
CHARACTERISTIC
A project can be considered to be any series of activities and tasks that:
1. Have a specific objective to be completed within certain specifications
2. Have a defined start and end dates
3. Have a funding limits (if applicable)
4. Consume human & non-human resources (i.e. money, people, equipment)
5. Are multifunctional (i.e. cut cross several functional lines)
6. Temporary
7. Unique
 PROJECT COMPONENTS
• Scope: represents the work to be
accomplished, i.e. the quantity &
quality of work.

• Budget: refers to costs, measured

in RM and labor-hours of work.

• Schedule: refers to the logical

sequencing and timing of the work
to be performed
 PROJECT COMPONENTS
• When project is first assigned to a project
manager, it is important that all three of
these components be clearly defined.
• The triangle represent an important
principle of project management:
balance.
• Quality is an element that is integrated
into and between all parts of the project:
scope, budget & schedule.
• Quality is meeting the needs &
satisfaction of the owner.
 PROJECT : PARTIES
INVOLVED

OWNER DESIGNER CONTRACTOR

• Define the project scope
• Identify their level of
involvement
• Setting parameters on total cost,
payment terms, major milestones
& completion date
• Produce design alternatives,
drawings & specifications that
meet the needs of owner.
• Advise owner
• Monitor project on behalf of
client
• Prepare contract documents
• Responsible for the performance
all work in accordance with
contract documents
• Establish an effective project
control system for cost, schedule
& quality
PROJECT: PARTIES INVOLVED
PROJECT MANAGER
Who is Project Manager? What are their responsibilities?
• A Project Manager (PM) is the key To ensure that:
person who plans and control a
 All project activities are finished in
project activities
proper sequences and on time
• He/ she may be employed by the  The project executed within budget
owner, designer or contractor
 The project meets the quality
• The role of a PM is to lead the project standards and technical requirements
team to ensure a quality project
 The people in the project team are
within time, budget and scope
motivated, given direction and
constraints information needed to do their job
IMPORTANCE OF PROJECT
MANAGEMENT
Project management is important because of the following reasons:
• Large amount of money involved
• Long process
• Many parties involved and a lot of technical and non-technical
inputs
• Large size in nature

“what if nobody is managing?”

PRINCIPLES/FUNCTIONS OF
MANAGEMENT

Controllin
Planning Organizing Staffing Directing
g
PRINCIPLES/FUNCTIONS OF
MANAGEMENT
: PLANNING
 Planning is the ongoing process of developing the business' mission and objectives and
determining how they will be accomplished.
 Planning includes both the broadest view of the organization, e.g., its mission, and the
narrowest, e.g., a tactic for accomplishing a specific goal.
 Deciding in advance :
 What to do
 How to do
 When to do
 Who is going to do it

 Bridges a gap between where we are today and where we want to reach.
 Sets the goal of an organization.
PRINCIPLES/FUNCTIONS OF
MANAGEMENT
: ORGANIZING
 Organizing is establishing the internal organizational structure of the
organization.
 The focus is on division, coordination , and control of tasks and the flow of
information within the organization.
 It is in this function that managers distribute authority to job holders.
 Making optimum use of the resources required to enable the successful carrying out of plans.
 Finding the right people to do the work
 Delegating responsibilities
 Organizing human, financial, material and technological resources to reach goals.
 Staffing : Job Analyzing, recruitment, and hiring individuals for appropriate jobs.
PRINCIPLES/FUNCTIONS OF
MANAGEMENT
: STAFFING
 Staffing is filling and keeping filled with qualified people all
positions in the business.
 Recruiting , hiring, training , evaluating and compensating
are the specific activities included in the function.
 In the family business, staffing includes all paid and unpaid
positions held by family members including the
owner/operators.
PRINCIPLES/FUNCTIONS OF
MANAGEMENT
: CONTROLLING
Controlling is a four-step process of:
1. Establishing performance standards based on the firm's
objectives,
2. Measuring and Reporting Actual performance,
3. Comparing the two, and
4. Taking Corrective or preventive action as necessary.
PRINCIPLES/FUNCTIONS OF
MANAGEMENT
: DIRECTING/MOTIVATING
 Directing is influencing people's behavior through motivation ,
communication , group dynamics , leadership and discipline .
 The purpose of directing is to channel the behavior of all
personnel to accomplish the organization's mission and
objectives while simultaneously helping them accomplish
their own career objectives through:
 Motivating others to reach goals.
 Inspire people to give their best.
 Earning, maintaining respect of team.
 Providing direction, vision.
PROJECT LIFE CYCLE
• A project life cycle is a collection
of project phases that defines:
 What work will be performed in each
phase.
 What deliverables will be produced and
when.
 Who is involved in each phase.
 How management will control and
approve work produced in each phase.
• A deliverable is a product or
service produced or provided as
part of a project.
• In the early phases of a project life cycle:
 Resource needs are usually lowest.
 The level of uncertainty (risk) is highest.
 Project stakeholders have the greatest
opportunity to influence the project.
• In the middle phases of a project life cycle:
 The certainty of completing a project
increases.
 More resources are needed.
• In the final phase of a project life cycle:
 The focus is on ensuring that project
requirements were met.
 The sponsor approves completion of the
project.
PROJECT LIFE CYCLE
PROJECT LIFE CYCLE :
PROJECT INITIATION
 Identification of a business problem, IDENTIFICATION OF PROBLEM,
opportunity and/or need. NEED OF OPPORTUNITY
Conduct an Environmental scan:
 Generation of prospective project proposal. • Micro
• Market
 Evaluation and building of a business case for • Stakeholder Analysis
the prospective project proposal. • Macro
Perform a SWOT Analysis:
 Selection and approval of most value-adding • Strengths
project. • Weaknesses
• Resources
 Compilation of Terms of Reference (ToR) • Capabilities
document (Project brief/Need statements), • Capacity
• Opportunities
defining and scoping of the project. • Threats
PROJECT INITIATION: TERMS OF
REFERENCE CONTENTS OF A ToR/Project brief
PURPOSE OF THE ToR/Project brief
 Defines your project and its scope  Section 1: What?
 Background
 Justifies the project  Project Definition
 Secures funding for the project, if  Section 2: Why?
necessary  Purpose
 Defines the roles and responsibilities  Business Case
of project participants  Section 3: Who?
 Roles and Responsibilities
 Gives people the information they
need to be productive and effective  Section 4: How and When?
right from the start  Defined milestones and target dates
 Initial/head-line project plan
PROJECT LIFE CYCLE :
PROJECT PLANNING
 Project planning defines project activities that
will be performed, the deliverables and  COMPONENTS OF PROJECT
describes how these activities will be PLANNING
accomplished and managed  Resource plan
 A Project Plan sets out the phases, activities  Financial plan (project
and tasks needed to deliver a project budget)
 The timeframes required to deliver the project,  Quality plan
along with the resources and milestones are  Risk management plan
also shown in the Project Plan  Communications plan
 The project plan establishes a baseline which  Procurement plan
identifies and documents project scope, tasks,
schedules, cost, risk, quality and staffing needs
throughout the entire project life-cycle
PROJECT PLANNING: PROJECT
SCHEDULING
 Project scheduling means detailing what activities have to be
done, the order (sequence) in which they are to be completed,
who is to do each, and how they are to be completed.
 Project scheduling entails the planning and plotting the
following project variables:
 Tasks (e.g. Work Breakdown Structure)
 Time (e.g. Gantt chart and PERT/network diagram)
 Resources (e.g. Resource Allocation Matrix and Resource Histogram)
 Responsibility (e.g. Load Chart and Responsibility Matrix)
PROJECT LIFE CYCLE : PROJECT
IMPLEMENTATION
 The most important issue in this phase is to ensure project
activities are properly executed and controlled
 This phase involves the execution of each activity and task
listed in the project plan.
 While the activities and tasks are being executed, a series of
project management and quality assurance processes are
undertaken by the Project Manager to observe, monitor,
analyze and control the project deliverables to ensure that
the key project objectives are achieved.
PROJECT LIFE CYCLE :
PROJECT CLOSURE
 This process verifies that the project has delivered the required
outcomes and that stakeholder expectations have been met.
 It also makes sure that everyone involved in the project knows how
to move forward.
 Project closeout is a fairly routine process, but it remains an
important process.
 By properly completing the project closeout, organizations can
benefit from lessons learned and information compiled at closure.
PROJECT CLOSURE :
ACTIVITIES
 Releasing the final deliverables to the customer
 Handing over project documentation and administration and terminating
contracts
 Communicating the closure to all stakeholders
 Releasing staff
 Closing the Project Office
 Perform a Post Implementation Review of the project
 Close-out report:
 Assessment of the project against actual performance
 Quality of management (focusing on quality and risk management)
 The lessons learnt that can be applied to future projects
PROJECT SUCCESS CRITERIA
 Projects completed on time
 Projects completed within budget
 Projects completed according to quality standards and
performance measures
 Projects completed within defined scope
 Projects completed by achieving all deliverables
 Projects completed to the satisfaction of all key stakeholders
and beneficiaries
PROJECT FAILURES
• Delay in completing project CAUSES OF FAILURE:
• Bad communication between the
• Cost/budget overrun
stakeholders
• Poor quality and workmanship • The wrong business requirements
have been addressed
• No purchasers/tenants • Poor project governance &
• Project not making profit management
• Project manager don’t usually have
any influence over project sponsor
• Poor project
execution/implementation
 CONSTRUCTION
PKK
ORGANIZATIONS CIDB

Clients (Public, Private, Quasi

Government) Facilities Management / Maintenance
Project Management Management/Operations Management
Project Manager
Facilities/Maintenance/Operations
Design Process Management Manager
Consultants Construction Project Contract Management Facilities
Design
(Contractor) Management/Mainte
Development nance Companies
Feasibility study Tender Award Construction Handover Decommissioning

Construction Site Management

Documentation & (Construction Manager) Contractors
Tendering
Sub-Contractors
Suppliers (Materials, Plant-Hire
Co’s)

Local
Local Authorities
Authorities (Construction Costing)

(Project Costing)

(Whole Life Costing)

Copyright ©Fadzil CPIM
UiTM2012
 MENTAL EXERCISE
Your team has been approached by a Client
TASK – Appointment a leader. Write
wanting to organize an event. They want
down all activities and task associated with
you to plan for their project including all
the project selected. Work in teams and
necessary consideration for the project to be
explore all possible angle.
success.

PROJECT 1 – Sports Event PROJECT 2 – Wedding Ceremony

 "Vision without action is a dream.
Action without vision is simply passing the time.
Action with Vision is making a positive difference."
-Joel Barker

ANY QUESTION?