Daye Polytechnic College

Department of Building Construction

Construction Management

MANAGING CONSTRUCTION PROJECTS

(CON MGT5 M08 0320)

UC-8

Instructor:- Engida E (MSc.)

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Address:- wosinchoejigu@gmail.com
 Introduction
This unit of competency is all about being able to manage
projects within your workplace. This training is broken up into
five distinct sections. They are:
1. Define project: First we will look at developing scope
documents and getting the project underway.
2. Develop project plan: From there, we will develop a full
project plan.
3. Administer and monitor project: Then we will examine
the processes involved in implementing a project and
monitoring its progress.
4. Finalize project: Next we will look at what needs to be done
to finish a project.
5. Review project: Finally, we will undertake to review the
project and look at what has been learned from the process as a
whole. 2
 What is a project?
“A project is a unique process consisting of a set of co-

ordinated and controlled activities with start and finish

dates, undertaken to achieve an objective conforming to

specific requirements including the constraints of time,

cost and resources.” (ISO)

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 Characteristics of project
 Projects are defined by their scope, budget, and schedule.

 Scope: Each project is unique and must have a written requirements

document that takes into consideration operational needs, level of service,

regulatory requirements
 Schedule: All projects must have a definite beginning and end. Once there

is a well-defined scope, it must to determine the time it will take to complete

the project by developing the project schedule
 Budget: All projects are constrained by limited monetary funding resources.

Consequently, every project needs a budget to initially define its funding

requirement. The project manager develops the budget based on the cost
estimates at the beginning of each project phase and refines it once there is
better information defining the scope. 4
 The Construction Project
 A project is defined, whether it is in construction or not, by the

following characteristics:
- A defined goal or objective.
- Specific tasks to be performed.
- A defined beginning and end.
- Resources being consumed.
 The goal of construction project is to build something. What

differentiate the construction industry from other industries is that its

projects are large, built on-site, and generally unique. Time, money,
labor, equipment, and, materials are all examples of the kinds of
resources that are consumed by the project. 5
 The Project Life-Cycle
 The project life cycle may be viewed as a process through which a project is implemented from

beginning to end. This process is often very complex; however, it can be decomposed into several

stages the project phases can be summarized as follows:

1. Preconstruction phase

 The preconstruction phase of a project can be broken into conceptual planning, schematic

design, design development, and contract documents.

Conceptual design:

- Very important for the owner.

- During this stage the owner hires key consultants including the designer and project manager,

selects the project site, and establish a conceptual estimate, schedule, and program.

- The owner must gather as much information as possible about the project.

- The most important decision is to proceed with the project or not.

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Schematic design:
- During this phase, the project team investigates alternate design
solutions, materials and systems.
- Completion of this stage represents about 30% of the design
completion for the project
Design development:
- Designing the main systems and components of the project.
Good communication between owner, designer, and construction
manager is critical during this stage because selections during
this design stage affect project appearance, construction and cost.
- This stage takes the project from 30% design to 60% design.
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Contract documents:

- Final preparation of the documents necessary for the bid

package such as the drawings, specifications, general
conditions, and bill of quantities.

- All documents need to be closely reviewed by the

construction manager and appropriate owner personnel to
decrease conflicts, and changes.

- With the contract documents are almost complete; a

detailed and complete cost estimate for the project can be
done.
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2. Procurement phase (Bidding and award phase)
The project formally transits from design into construction.

- This stage begins with a public advertisement for all

interested bidders or an invitation for specific bidders.

- In fast-track projects, this phase overlaps with the design

phase.

- If the project is phased, each work package will be advertised

and bid out individually.

- It is very important stage to select highly qualified

contractors. It is not wise to select the under-bid contractors
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3. Construction phase
The actual physical construction of the project stage.
- This stage takes the project from procurement through the final
completion.
- It is the time where the bulk of the owner’s funds will be spent.
- It is the outcome of all previous stages (i.e., good preparation

means smooth construction).

- The consultant will be deployed for contract administration and

construction supervision.
- Changes during construction may hinder the progress of the
project 10
 4. Closeout phase
 Transition from design and construction to the actual use of the
constructed facility.

- In this stage, the management team must provide documentation,

shop drawings, as-built drawings, and operation manuals to the owner
organization.

- The as-built drawings are the original contract drawings adjusted to

reflect all the changes that occurred.

- Assessment of the project team’s performance is crucial in this stage

for avoiding mistakes in the future.

- Actual activity costs and durations should be recorded and compared

with that was planned. This updated costs and durations will serve as
the basis for the estimating and scheduling of future projects. 11
Major Types of Construction Projects
In planning for various types of construction, the methods of

procuring professional services, awarding construction

contracts, and financing the constructed facility can be quite
different.

1. Residential Housing Construction

o Residential housing construction includes houses and high-
rise apartments.
o Residential contractors are those who construct residences
of different types. Single-family residences, duplexes,
apartments, and condominiums. 12
 2. Institutional and Commercial Building Construction

Commercial contractors are those who build facilities,

generally buildings, for businesses and also for other entities
and owners. For example, contractors who refer to themselves
as commercial contractors may build offices and other
buildings for commerce, and may also build schools,
government buildings, and churches.
Because of the higher costs and greater sophistication of

institutional and commercial buildings in comparison with

residential housing, this market segment is shared by fewer
competitors. 13
3. Specialized Industrial Construction
 Specialized industrial construction usually involves very large scale

projects with a high degree of technological complexity, such as oil

refineries, steel mills, chemical processing plants and coal-fired or
nuclear power plants.
 The owners usually are deeply involved in the development of a

project, and prefer to work with designers-builders such that the total
time for the completion of the project can be shortened.
 Although the initiation of such projects is also affected by the state of

the economy, long range demand forecasting is the most important

factor since such projects are capital intensive and require considerable
amount of planning and construction time. 14
4. Infrastructure and Heavy Construction
Infrastructure and heavy construction includes projects

such as highways, tunnels, bridges, pipelines, drainage

systems and sewage treatment plants.
Most of these projects are publicly owned and therefore

financed either through bonds or taxes.

This category of construction is characterized by a high

degree of mechanization, which has gradually replaced

some labor intensive operations.

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Construction Projects Participants
1. The Owner (The Client)
 The owner is the individual or organization for whom a project is to be built under a
contract.
 The owner owns and finances the project. Depending on the owners’ capabilities,
they may handle all or portions of planning, project management, design,
engineering, procurement, and construction
 The owner engages architects, engineering firms, and contractors as necessary to
accomplish the desired work.
 In order to achieve success on a project, owners need to define accurately the projects
objectives.
 They need to establish a reasonable and balanced scope, budget, and schedule.

 They need to select qualified designers, consultants, and contractors.

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2. The Design Professionals
 Examples of design professionals are architects, engineers, and design

consultants.
 The major role of the design professional is to interpret or assist the owner in

developing the project’s scope, budget, and schedule and to prepare construction
documents.
 Architect: An architect is an individual who plans and design buildings and their

associated landscaping. Architects mostly rely on consulting engineers for

structural, electrical, and mechanical work.
 Engineer: The term engineer usually refers to an individual or a firm engaged in

the design or other work associated with the design or construction. Design
engineers are usually classified as civil, electrical, mechanical depending upon
their specialty. 17
Engineering-Construction Firm: An engineering-construction firm

is a type of organization the combines both architect/engineering and

construction contracting. This type of company has the ability of
executing a complete design-build sequence.

3. The Construction Professionals

o The constructions Professional are the parties that responsible fo

constructing the project.

o In traditional management where the owner, design professional, and

contractors are separate companies, the contractor would be termed a

prime contractor.
o The prime contractor is responsible for delivering a complete project

in accordance with the contract documents. 18

4. Project manager
 The project manager is the individual charged with the overall coordination of the

entire construction program for the owner. These include planning, design,

procurement, and construction. Among his/her duties:

o Clear definitions of the goals of the project.

o Investigate alternative solutions for the problems.

o Develop a detailed plan to make the selected program reality.

o Implement the plan and control the project.

 Construction Manager: The construction manager is a specialized firm or

organization which administrates the on-site erection activities and the consulting

services required by the owner from planning through design and construction to

commissioning. 19
 PROJECT DELIVERY METHODS
1. Design-Bid-Build
 The design-bid-build project delivery method has, for many years, been

the most commonplace method of project delivery for construction

projects of all kinds.
 The process derives its name from the sequence in which the design and

construction functions are performed. This project delivery method is also

referred to as linear construction.
 In the design-bid-build project delivery method, the process begins with

the owner’s perceiving a need for the construction of a facility.

 Typically, the owner considers financing and budget for satisfying the

need he has recognized. The owner subsequently enters a contract with

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an architect or engineer who will provide complete design services.
 The designer’s basic responsibility, as typically defined by the owner, is

the creation of an original design for a construction project that will

satisfy the needs of the owner, within the owner’s budget.
 The owner’s contract with the designer usually includes responsibility

for production of a complete set of drawings and specifications, which

will communicate the design to the owner as well as to the contractor
and which will define the deliverables in the construction contract.
 The designer will typically provide contract administration services

during construction and representation of the owner’s interests

through observation of the work during construction, as well as
closeout of the project, and administration of any warranty issues
after construction is complete
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When all of the bid documents and contract documents have

been produced and have been approved by the owner, the

designer assists in announcing the project to construction
contractors by means of an advertisement for bids, an
invitation to bid, or a notice to bidders.
The designer administers the process of making bid documents

and contract documents available to the contractors. In addition,

the designer will answer con- tractors’ questions, and will provide
interpretations and clarifications regarding the information in the
contract and bid documents as requested, during the time when
contractors are preparing their estimates, a time known as the
bid period. 22
 The designer will usually administer the process of receiving the

contractors’ proposals on bid day and will conduct the bid

opening process. The architect or engineer will then assist the
owner with selection of the contract recipient, and with execution
of the agreement between the owner and the contractor.

2. Design-Build
o The design-build method may also be referred to as the turnkey

process or as the turnkey project delivery method.

o In the design-build system, the owner enters one contract with a

single professional entity, and that firm has the responsibility for
providing both design and construction services for the owner.
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Today, the design-build firm may be an architecture or
engineering firm that is collaborating with, or that has entered a
partnership arrangement or a joint venture arrangement with, a
contracting firm to provide design-build services.
 in the design- bid-build system, designers usually produce the

design, as well as authoring the bid documents and contract

documents for the project, without any assistance or input from a
contractor.
Many owners are electing to utilize the design-build method of

project delivery today, because of the numerous benefits that this

method provides for the owner. 24
 The Project Management Process
 Project management is about much more than simply doing the right thing

at the right time.

 You need to be able to manage the resources that you have and use them in

such a way that you can complete the project in line with the goals that you
initially set for the project
 You may have heard the managerial principle of PLOC – planning, leading,

organizing and controlling.

 Plan Establish an overall plan for the implementation of your project.

 Lead Leading the project team towards your objectives and goals.

 Organize your resources and initiate project activities.

 Control Tracking and monitoring the progress against the initial project

plan. 25
Strong managerial skills are crucial to good project
management because they allow you as a project manager to
plan your project, lead your team, organise your resources and
successfully control everything that goes on.
The project management process begins with identification of

the user requirement, project constraints, resource needs, and

establishment of realistic objectives to meet the strategic goals.
During project development, the Agency identifies the need for

a project, assesses the project’s ranking in importance relative

to other projects, analyzes its funding requirements, and
decides whether to authorize the project for implementation.
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 Initiate the Project
In order to initiate a project you need to:
Identify the overall goal that the project is trying to

achieve.
 List the objectives of the project, think of these as the

steps you need to achieve in order to reach your overall

goal.
 Identify those individuals who are involved in the project

(these are known as your stakeholders).

Identify any constraints, assumptions and risks you will be

taking on board. 27
Examine what work needs to be done prior to the project

as well as what resources are needed and the milestones

you must achieve.
You can use a document known as the project scope

document to help you organise each of these items and

document them in a way that allows you to work on the
project easily.
 As its name indicates, the project scope document

outlines the extent of the project – what does it cover, what

will you undertake and what do you hope to achieve. 28
A scope document should be set out so that it covers each of the

following:
1. Scope statement
2. List of constraints
3. Assumptions
4. List of tasks
5. Estimates
6. Statement of contract
The scope document should be used actively during the entire running

of the project to ensure that the project is meeting its objectives and
that the tasks being conducted are run according to the scope
document. 29
1. Scope Statement
 A statement of the project goal, objectives and deliverables that you

have set for the project. Basically when writing a scope statement,
think that anything that is not mentioned within the statement is not
a part of the project and should not be dealt with.

2. List of Constraints
 Here we are examining the factors that we feel will limit the project’s

forward movement. They may cause the project to stop or perhaps for
it to go awry. Think about deadlines, resource constraints (do we have
the right equipment), do tasks have to be performed in a given order,
or perhaps there is a set budget which cannot be exceeded. These are
all examples of limiting constraints. 30
3. Assumptions
As its name indicates, your assumptions are any factor in the project

that you include in the project scope document to account for the
possibility of uncertainty – they are concrete assumptions that you
make in advance. For example staff will require training to use the
new machinery, or we can source our human resources needs from
our internal personnel.

4. List of Tasks
This is relatively straight forward, you can think of a list of tasks as

being just that. A list of the tasks that you need to deliver or achieve
during the life of the project. They are all the activities that need to
take place to bring the project to completion. 31
5. Estimates (Cost, Time and Human Resources)
In this document, you will make an initial estimate of

the cost, time and resources required in order to meet

your list of tasks and deliverables.

6. Statement of Contract
This section will outline the names of all individuals

involved in the project that are able to sign a contract and

initiate a contract with the various contractors you may be
required to work with.

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 Project Initiation Phase
During project initiation, the Agency plans how the

authorized project is to be implemented. Planning begins by

fleshing out what the project is to deliver and documenting
Planning the project in the initiation phase is usually the

Agency’s sole responsibility carried out by the Agency’s

project manager.
 In the PRD the project manager refines and details the

project authorization and details what the project is required

to accomplish in terms of the products/services the project
will deliver and the scope of work that needs to be done. 33
The project manager assesses the levels of resource capabilities

and capacities needed to accomplish the project defined by the

PRD.
Capability is a measure of a resource’s skill levels, experience, and

ability to perform. Capacity is a measure of the quantity of the

resources.
 The project manager may need to consult with peers or

consultants who have prior experience with similar projects to

accurately determine the necessary resources.
The project manager has to look outside the organization and plan

a project delivery strategy that contracts out the work that the
Agency lacks the capability and capacity to undertake. 34
 With the delivery strategy selected, the project manager’s attention turns to
establishing the project organization structure needed to manage the project and
carry out the project work done by the Agency’s own forces.
 The project manager has to provide the project team with a road map on how to get

the project done. The project management plan sets out how the project is to be
managed, executed, monitored, controlled, and closed through the phases of its
life cycle.
 Supporting management plans are added to a project as appropriate depending on

the project’s size and complexity.

 Larger and more complex projects may require adding one or more of the following

supporting plans to the PMP at project initiation:

 ƒ Quality management plan

 ƒ Risk management plan

 ƒ Contract management plan. 35

THANK YOU
FOR YOUR
ATTENTION!!
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