Lecture 1 - Context of Construction Project Management Mac 2022

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PROJECT MANAGEMENT II

Centre Of Studied For Quantity Surveying


Faculty Of Architecture, Planning & Surveying (FSPU), UiTM Shah Alam
Selangor

Lecturer: Professor Sr. Dr Fadzil Hassan


padzil037@uitm.edu.my
Learning Objectives:
▪ The aim of this subject is designed to enable students to learn the application of quality
management in construction organisations and projects.

▪ Upon completion the students are expected to be able to identify and explain the
application of the following elements of quality management in construction
organisations and projects:
- Human management in construction - Leadership, Motivation & Communication
- Total Quality Management applied to construction projects
- Quality management in construction projects
- Safety & Health Management
- Environmental Management Systems (EMS)
- Value Management
Syllabus Contents:
▪ Context of Project Management: ▪ Application of Quality Management
⮚ Organisations Systems in Construction:
⮚ Management ⮚ Quality Management System (QMS)
⮚ Project Life Cycle ⮚ Construction Quality Management
⮚ Project Management ⮚ Health & Safety Management
⮚ Construction Management ⮚ Environmental Protection System in
Construction
▪ Human Management in Construction:
⮚ Communication ▪ Value Management
⮚ Leadership
⮚ Motivation
BQS 610:
PROJECT
.
MANAGEMENT II

MODULE 1: CONTEXT OF CONSTRUCTION


PROJECT MANAGEMENT
Centre Of Studied For Quantity Surveying
Faculty Of Architecture, Planning & Surveying (FSPU), UiTM Shah
Alam
Lecturer: Professor Sr. Dr. Fadzil Hassan
padzil037@uitm.edu.my
Module Learning Objectives:
▪ The aim of this lecture is to enable students to understand the context of the
construction industry and construction projects where quality management is applied.

▪ Upon completion the students are expected to be able to identify and explain:
- Management and organisation
- Project and organizational objectives
- Quality management in construction projects
- Project Management and project management activities
- Construction organisations and construction management activities
Project
Management : What
does it mean to
you?
Organisations:
• Exist to achieve objectives
• Key resources -money, people, technology and equipment
• Comprise of systems and sub-systems
• Significance of the human resource

Management:

Management & • Aim- to drive the organisation to achieve the objectives


• Concerned with the management system & processes
▪ Undertaken by selected groups of people - top managers, middle
Organisations managers, line managers, team leaders
• Technical competencies: planning, organising, staffing/recruiting,
monitoring and control
• Human competencies: communicating, leading and motivating
Organisations
▪ Organisations - combination of people who
work within the boundaries of their particular
strengths and skills

▪ Work is broken down to be carried out into


smaller tasks

▪ This is carried out by groups of people or by


individuals who have specialist skills and
knowledge (known as division of labour)
Organisations
Classification of organisations:-

i. Informal :
• Groups are created without formal
authority
• May or not exist within formal groups
• Purpose - frequently a shared interest

ii. Formal :
• create by authority for a specific purposes
• well-defined relationships with others
• Formal group maybe permanent or
temporary
Organisation Structures
- Functional skills and types of works are grouped together
Functional
- This form of structure are commonly used in construction industry

- Advantages-personnel grouped together, individuals can learn from


each other & hence job training being simplified and become more
effective

Organisation
Matrix Chart
⦿ Organisational structure that attempts to place
equal emphasis on technical and product
development
Divisional
⦿ This is achieved by having a structure in which
responsibility for reporting is within 2 authorities
⦿ It is used for undertaking project oriented ⦿ Results in horizontal grouping by product, customer or service
activities where the traditional functional or ⦿ A construction company maybe divided into civil engineering,
departmentalised structures would be small works and piling
inappropriate ⦿ Advantage – competition between division can be encouraged
and attention can be focused on the success or the failure of the
unit
Good and Bad
Management of
Organisation
Commercial projects:
Profit
Social Projects
Cost Benefit
Key Elements of Construction
Organisational (Client, Consultant
and Contractors) Success
The Management Project Management
Process ▪ Time ▪ Success
Strategic ▪ Financial ▪ Cost ▪

Competitiveness
Sustainability
Management: Management ▪ Quality ▪ Customer (Internal &
▪ Marketing* ▪
▪ Vision
External) Satisfaction
Health & Safety
▪ Mission
+ ▪ Human Resource + ▪ Environmental = ▪

Increased customer base
Employee career
Management
▪ Objectives
Management development

▪ Contract
Stakeholder alliance
(HRM) ▪ Others*
▪ Facility/Asset Managements
Management ▪ Etc.
Types of Project : Economic, Social & Cultural Projects
Types of Project :
Physical
Infrastructure
Projects
i l i l i l
Fa Fa Fa

i l i l
i l
Fa Fa
Fa

i l .... Some with disastrous results and ending


Fa
Evolution Of Management
Terms of
Reference
Management
▪ Management (or managing) is the administration of an organization - whether it is
a business, a not-for-profit organization, or government body.

▪ Management includes the activities of setting the strategy of an organization and


coordinating the efforts of its employees (or of volunteers) to accomplish
its objectives through the application of available resources

▪ The resources – financial/money, machinery/equipment, technological,


and human resources.

▪ The term "management" may also refer to those people who manage an
organization - managers.
Managers in Construction Objectives:
✔ Competitiveness
Organisations (example) ✔

Profit
Sustainability
✔ Increased customer base
The Contractor/Developer ✔ More prestigious projects
Project Objectives (Construction):
• Time
• Cost
• Quality Health & Safety Organisation Managers:
▪ Top Manager :
• Environmental Requirements CEO, Managing Director,
The Project Organization:
• Clients General Managers, Chief
• Consultants Operating Officer (COO)
▪ Middle managers: • Contractors
▪ Middle Managers:
Chief Architect, Senior QS,
Accountants, Human
Senior Architect, etc. Resource Managers,
Managers, Procurement &
▪ Line Managers: The Project Sub-Organization Contracts Manager, Marketing
QS, Architects, Engineers, Contractor): Manager (Developer)
Construction Site Managers • Project managers
• QS/Architect/Engineer/etc ▪ Line Managers
▪ Team Leaders: • Site Managers Supervisors, Coordinators,
Site Supervisor, Clerk-of- • Site Supervisors Team Leaders,
Work, Trade ‘Kepalas’
TYPES OF MANAGER
1. Top Managers (Chief Executive Officers, CEO;
2. Middle Managers (Project Managers, Financial
General Managers, GM; Chief Operating Controllers, Contract Managers):
Officers, COO):
- Planning and allocating resources to meet objectives.
- Creating a context for change.
- Coordinating and linking groups, department and divisions.
- Developing attitudes of commitment and ownership in
employees. - Monitoring and managing the performance of the subunits and
individual managers who report to them.
- Creating a positive organisational culture through language
and action. - Implementing the changes or strategies generated by top
managers.
- Monitoring their business environments.

3. First Line Managers (Architects,


Quantity Surveyors, Engineers):
3. Team Leaders (Site 4. Team Leaders:
Managers):
- Planning and allocating resources to meet - Facilitating team performance.
objectives. - Facilitating team performance.
- Coordinating and linking groups, department - Managing external relationships
and divisions. - Managing external relationships
- Monitoring and managing the performance of - Internal team relationships
- Internal team relationships
the subunits and individual managers who
report to them. *Note:
- Implementing the changes or strategies In smaller organizations, a manager may have a much wider scope and may
generated by top managers. perform several roles or even all of the roles commonly observed in a large
organization.
Key Elements of Construction
Organisational Success
The Management Project Management
Process ▪ Time ▪ Success
Strategic ▪ Financial ▪ Cost ▪

Competitiveness
Sustainability
Management: Management ▪ Quality ▪ Customer (Internal &
▪ Marketing* ▪
▪ Vision
External) Satisfaction
Health & Safety
▪ Mission
+ ▪ Human Resource + ▪ Environmental = ▪

Increased customer base
Employee career
Management
▪ Objectives
Management development

▪ Contract
Stakeholder alliance
(HRM) ▪ Others*
▪ Facility/Asset Managements
Management ▪ Etc.
Scales of Project Portfolio Management
Management: Portfolio management is the process of managing a group of
investments that meet the long-term financial objectives and risk
tolerance of a client, a company, or an institution.

▪ Portfolio
Program Management
Management Program management is the management of different but related
projects. When you have multiple projects connected to each other,

▪ Program
you group them together and manage them as a whole “program”

Management Project Management

▪ Project Project management is the application of processes, methods,


skills, knowledge and experience to achieve

Management specific project objectives according to the project acceptance


criteria within agreed parameters.
Competencies on Project &
Construction Management • Project objectives
• Process, activities
• Plan, monitor & control
• Resource management
• Performance
Technical measurement
Competency

Project
Management
Competencies • Leadership
• Analytical • Motivation
• Critical Behavioral • Communication
Conceptual
• Decision making Competency • Team management
Competency
• Conceptualisation • Conflict management
ability • Personality
• People management
The Management Process
Conception of what Managers do or are expected to do today (current
literatures):
▪ Planning
▪ Organising/Execute Technical Skills
▪ Controlling
▪ Communicating
▪ Leading Human / People
▪ Recruiting Skills
▪ Motivating
Scope of Management within a ‘Project Life
Cycle’
OPERATIONS & MAINTENANCE
PROJECT MANAGEMENT
MANAGEMENT
Client Project Manager Facilities/Maintenance/
Operations Manager
Design Process Management
(Consultants/S.O.)
Construction Management/Contract
Tender Award Management Defects Liability
(Contractor) Period (DLP)
DESIGN OR PRE-
CONTRACT STAGE
CONSTRUCTION MANAGEMENT Handover OCCUPANCY

Project Inception Decommissioning


Construction Site Management
Design Development (Construction Site Manager)

Documentation
& Tendering

(Construction Costing – Contractor – supplier, sub-contractor,


labourers & plant/machinery supplier )

(Project Costing – Contractor, Consultants, Land cost & approval cost))

(Life Cycle Costing)


Common Construction Project Objectives
(Critical Success Factors, CSF)

Completion on
Time
Meeting Meeting
Health & Safety Environmental
requirements Requirement
Standards

End User
Satisfaction

Within the targeted Meeting the


project cost standard of
quality specified
Fulfilling all
contractual
agreements and
obligations
Typical Project Management Activities (Traditional Procurement System)
Pre-Contract/Design Stage Construction

INCEPTION/CONEPTUAL DESIGN DEVELOPMENT TENDERING CONSTRUCTION HANDOVER


STAGE STAGE STAGE STAGE STAGE

Need Statement / (Construction Testing &


Feasibility Tender Site Commissioning
Study / Cost Documentation Management)
Benefit Analysis Project Detail Specifications
Construction Planning
(Objectives)
Design Time
Project Handover (Certificate

Project
Cost of Handing Over)
(Certificate of Compliance &
Quality Completion, CCC)

Management Appoint Tendering


Health & Safety
Conceptual

(CPM)
Consultant *Value Environment
Design Detail Cost management/
Estimate Elemental Defects Liability
Cost Analysis Period (DLP)
Management

Site Tender
Investigation Evaluation Project
Budget & Monitoring
Preliminary *Operations &
Cost Estimates Maintenance
Planning

Procurement Authorities
Strategy Approval/ Tender Award
Planning Contract
Permission Administration
Close Out/Final
(Development Account
Order, DO) Note:
*May not be applicable for in projects
Operations & Maintenance stage is not included in this diagram
Typical Project Management Activities (Design & Build
Procurement System)
Client Contractor (Building Team)

INCEPTION/CONEPTUAL TENDERING DESIGN DEVELOPMENT & CONSTRUCTION HANDOVER


STAGE STAGE STAGE STAGE

Need Statement Project Testing &


*Pre-Qualification Detail Design, Specifications & Value Engineering
/ Feasibility Planning Commissioning
Study / Cost (Project
Benefit Objectives)
Analysis

Tendering
Authorities Approval
Project Handover
(Certificate of
Construction
Consultant
Conceptual
Design
Compliance &
Completion, CCC) Project
Management
Appointment Construction
Tender Evaluation

Site
Schematic
Design
Project Monitoring
Defects Liability
Period (DLP)
(CPM)
Investigation Management
*Value
Management
Project
Budgeting
Preliminary *Operations &
Contract Administration Maintenance
Procurement Estimate/
Tender Award Planning
Strategy Cost Planning

Close Out/Final
Tender Account
Note:
Documentation
*May not be applicable for in projects
Operations & Maintenance stage is not included in this diagram
Project Success?

(1)* (2)*
Design Construction • Time
• Cost
• Contract Sum
• Claims & Payments
• Quality • Variations
• Health & Safety • Extension of Time
Detail • Environment • Determination
Schematic Design Design & Specifications • Completion
Construction • Etc.
Management (1)
Elemental Cost analysis
Contract Administration (2)
Authorities Approval

Detail Cost Estimate/Pre-tender Estimate Project Monitoring


Project
Start Success or
Conceptual Design Budget Allocation Failure
Preliminary Estimate Site Investigation Tender
Testing &
Award
Commissioning
Clients’ Brief Consultant Appointment Tender
Evaluation DLP Management Hand Over
Planning Cost Planning Tender
Exercise Tender
Feasibility Study Documentation Final Account

Inception Tendering Close Out


Construction Management Within the ‘Project
Life Cycle’

Project Award

Site Mobilisation

Labour
Time Plant & Equipment
Cost Construction Resources Management Materials
Site Possession Quality Project Objectives Sub-contractors
Safety & Health Project Staff
Sundry Management
Environment Site Office
Requirements Contract
Administration
Third Parties
Construction Management Within the ‘Project
Life Cycle’

Project Award

Site Mobilisation

Labour
Time Plant & Equipment
Cost Construction Resources Management Materials
Site Possession Quality Project Objectives Sub-contractors
Safety & Health Project Staff
Sundry Management
Environment Site Office
Requirements Contract
Administration
Third Parties
Preliminaries Typical Activities in
SUNDRY CONSTRUCTION
MANAGEMENT
Site Office
Construction
Materials

Labour & Sub-contractors


Management
Project Staff/Team

CONSTRUCTION
Project Handover
RESOURCES MANAGEMENT Plant & Machineries

Sub-contractors
Testing &
Commissioning

Time
Handover
Site CONSTRUCTION
Cost (Cash Flow)
Tender Mobilisation RESOURCES MANAGEMENT
Quality Defects Liability
Management
Safety & Health

Final Account &


Environment
Closeout

THIRD PARTY Public, Authorities & Third Parties


MANAGEMENT
Other Contractor/s*

Clients, Consultants (Design team)

CONSTRUCTION
Contract Administration
CONTRACT MANAGEMENT
Construction Management
Recruitment and dismissal, Take-off, schedule & Visiting consultants, Schedules & requisitions, Assist tendering and selection process,
inter-site liaison & transfer, requisition, Supplier site/trade foreman, supplier liaison & issue information/variations, co-
supervision, direction & liaison, weekly records, trainees, site correspondence, weekly hire ordination & liaison of works, meeting,
motivation, weekly & site use, stock checks, supervisors records & time sheets, site progress monitoring, administer
monthly records, approve storage of materials use & control, maintenance quotations, claims and payments, site

T
wages measurements etc.

LABOUR MATERIALS

C O N STAFF PLANT SUB-CONTRACTORS

R A T I
N T R A RESOURCES
PUBLIC, LOCAL
SURVEY WORKS

ADMINISTRATION
O
C NI
SUNDRY
S
ACTIVITIES
T CONSTRUCTION THIRD PARTIES
AUTHORITIES, POLICE
ETC.

CONTRACTOR

I
MANAGEMENT

M
PRELIMINARIES/PRE- CLIENT, CLERK-OF WORKS
CONSTRUCTION & DESIGN TEAM

A D RESPONSIBLE FOR
(PROJECT OBJECTIVES)

HEALTH & SAFETY TIME QUALITY COST (CASH FLOW) ENVIRONMENT

Risk assessment, site safety Long, medium, short term Prepare & check snag list, Appraisals, weekly & Long/medium/short term programmes,
audits, health & safety programmes, monitoring & supervision, recording of tests, monthly cost control, monitoring & recording progress,
equipments, health & recording progress, schedules for record performance, and quality assist valuation, claims schedules for information requirements,
safety records/audits, information requirements, administration. & payments planning & progress meetings
health & safety planning & progress meetings
administration
Definition of Certified Construction
Project Manager & Construction
Manager (CCPM)
Project Manager:
“Project Manager is defined as the project personnel
employed to lead the construction project through the
design and construction stages of the project. He or
she may be employed either by a client, consultant or
contractor organisation.”

Construction Manger:
“The Construction Manager is defined as the
individual employed by the contractor to lead the
construction implementation process at the project site.
He/she shall possess the competency to plan,
coordinate, monitor, and controls the construction
project activities at the project site”
CIDB (2019)
Construction Success/Failure
Site Project Close Out
Mobilisation Objectives
Site Possession
Cost (Cash Flow) Hand Over
Project Award Safety & Health

Site Mobilisation Preliminaries Quality Final Account


Testing & (Couse Out)
Project Implementation Commissioning
Programme (Time)
Site Layout Planning
Environmental Compliance DLP Management
Requirements Project
Start Success or
Quantities Site Office Failure
Work Breakdown Labour
Built-up Rates & Structure (WBS) Site Staff
Estimating
Constructability Plant & Third Parties Contract Administration:
Pricing Materials • Contract Sum
Equipment
Strategy • Claims & Payments
Financing • Variations
• Extension of Time
Sub-contractors
• Determination
Contracts
• Completion
Sundry • Etc.
Resources
Tendering Management
Management
Activities
Compulsory
Reading
Revision Questions
The
Construction
Industry

The Construction
Organization

Fig. 1

1. Based on the analogy of molecules in a living environment, describe the similarities of the molecule
behavior with construction organizations in the Malaysian construction industry.

2. Discuss the difference between success in managing a construction company and managing a construction
project.

3. Differentiate the activities that need to be managed by the Construction Project Manager (CPM) and the
activities that needs to be managed by the Construction Manager (CM)
Revision Questions
▪ Differentiate the elements of organizational success and project between the following project organizations:

a. Jabatan Kerja Raya (JKR) Malaysia

b. Kementerian Perumahan Negara

c. PR1MA

d. Eco World Development Bhd

e. Kitacon Sdn Bhd (construction Company)

▪ Ir. Halim is the new Managing Director of PR1MA Bhd., a government-linked housing development company which is currently
developing several projects which includes 450 units of medium-cost housed in Selangor, 300 units of low-cost housed in
Johore, 500 units of mixed-development projects in Perak and 250 units of medium rise low-cost apartment in Terengganu.
Assisting Ir. Halim is Sr Mohamad who is the Project Director who is overseeing the overall implementation of all the projects.
En Shamsul is the Construction Manager of Cekap Construction Sdn. Bhd., a subsiadiary of PR1MA Bhd. who is in-charge of
managing 150 units of the medium-cost house in Shah Alam, Selangor.

All three of them are managers who are responsible for each portfolio. Contrast howo their managerial and leadership roles
differ.
Thank
You

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