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Construction Management - Professional Practices

Table of Contents

Preface

Chapter 1 - Introduction

                 Five Project Management Process

A.Initiating Process

B. Planning Process

C. Executing Process

D. Controlling Process

E. Closing Process

                 Fourteen Knowledge Areas 

Chapter 2 - 1. Project Integration management

Chapter 3 - 2. Project Scope Management

Chapter 4 - 3. Project Time Management

Chapter 5 - 4. Project Cost Management

Chapter 6 - 5. Project Quality Management

Chapter 7 - 6. Project Human Resource Management

Chapter 8 - 7. Project Communications Management

Chapter 9 - 8. Project Risk Management

Chapter 10 - 9. Project Procurement Management

Chapter 11 - 10. Project Assessment

Chapter 12 - 11. Safety Management

Chapter 13 - 12. Environmental Management

Chapter 14 - 13. Financial Management

Chapter 15 - 14. Claims Management

                 Summary of Construction Management Professional Practices

Chapter 16 Summary and Conclusion

Preface

Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirement [PMBOK 1.3] There are books out there that teach about Project Management and the Project Management Body of Knowledge (PMBOK), and a few others teach how to pass CAPM/PMP. The intent of this book is to bridge the gap between knowledge of Project Management and how to use it in an exam. This book will be neutral in nature and does not cover a particular industry. As you can see from the table of contents, this book consists of several chapters. Exactly one chapter is dedicated to each Project Management Process. This will enable you to view each process as its own entity. [edit] Audience

This book is intended for those who would like to become a Certified Associate in Project Management (CAPM) or a Project Management Professional (PMP), and for those who would like to get started in Project Management. If you are already certified, congratulations! This book will help you keep current on the subject. Understanding the content of this book does not require you to be an experienced project manager. It is useful to anyone willing to study the art of project management. A brief introduction at the beginning of each chapter gives an overview of what is to be covered. If you are an experienced project manager, you may encounter concepts with which you are already familiar. Feel free to skip those sections and proceed. [edit] Authors

Murali Narayanan (Kb3lja)

Khawar Nehal (Khawar Nehal)

John CH Yang (User:johnCHyang)

- If you contribute to this book, if you wish, please add your name here.

E Jackson [edit] Exam Information

This exam is conducted by Project Management Institute (PMI), a "not-for profit" (as opposed to "non-profit") organization dedicated for project management practices by setting standards and providing associations for project manager. This book covers PMI's Project Management Body of Knowledge (PMBOK), Third Edition published in 2004. The Fourth edition came out in December 2008. [edit] Prerequisite

The citations on this book are from the PMBOK 3.0 published in 2004. So it is advisable to have a copy of PMBOK 3.0 published by PMI. [edit] Part I: Concepts and Practices [edit] Introduction

This part gently introduces the Project Management Fundamentals. Chapter 1 deals with the Framework of Project Management building the blocks for essential project management function. Chapter 2 provides an in-depth knowledge of the Project Life Cycle

Chapter 1 Project Management Framework

After reading this part, the user should be able to - Identify the difference between project and Operational Work. - Understand the characteristics of the project.

Definition of Project: A project is a temporary endeavor undertaken to create a unique product, service or result [1.2.1].

Characteristics of the Project:

- Temporary - Have definite beginning and end - Create unique product or service - Have objective that indicate completion - Progressive Elaboration

Temporary Temporary in the sense that the project by itself has definite beginning, definite end and is not an ongoing process. Bear in mind, temporary does not apply to the product, service or result itself. Projects are carved to last long. For instance, construction of road is a project. The project last for a specified period of time. Once the road is laid, the project is said to be complete. The project completion should be measurable. Once this project is completed, the on-going process of maintaining the road which is not a project will put in place. The road lasts longer while the project wraps until complete.

Unique Product or service produced by the project is different from anything else on the market and involves creating something new to this environment. Unique nature does not mean that no such project exists. Consider construction of a bridge. It is considered as a project, because either the existing bridge is torn down and a new one is constructed or a new bridge is constructed. In the first case, since the outcome is a new bridge and not routine maintenance of the bridge, it becomes project. Even though the technology of bridge construction exists, it becomes unique as they are carried at different locations with different owner, different river.

Purposeful (Objective) Well defined set of desired end result. One of the requirements of objective is that it is measurable. This quality of the objective will enable to mark the project complete.

Have Life cycle Progress from an idea, through planning and execution, until they are complete. Have definite beginning and ending

Have interdependencies Have defined sequence.

Progressive Elaboration Developing in steps and continuing by increments. Project entities are described in broad terms at the start of the project but detailed as project progress. Initially this may look failure prone as the details are not detailed, but will eventually

Example: The activity undertaken to construct a bridge is considered as project as (1) the project ends by the time the construction is complete (2) have time limit as to when the bridge should be finished (3) Not a routine maintenance work (4) Will provide an ability to cross the river.

Difference between project and program

Program is a logical group of related projects. Example: A marketing department might have a program to launch the company's latest product. Within that program, there might be individual projects for achieving different objectives, such as planning the marketing campaign and launching the product.

[edit] Chapter 2 Project Life Cycle [edit] Chapter 3 Process Groups

Five process groups 1. Initiating 2. Planning 3. Executing 4. Controlling & Monitoring 5. Closing

Nine Knowledge Areas 1. Project Integration management 2. Project Scope Management 3. Project Time Management 4. Project Cost Management 5. Project Quality Management 6. Project Human Resource Management 7. Project Communications Management 8. Project Risk Management 9. Project Procurement Management 10.Project Assessment [edit] Part II - Initiation Phase

Project Management Process Groups.

3.2

[edit] Chapter 4 Develop project Charter

3.2.1.1 (4.1)

[edit] Chapter 5 Develop Preliminary Project Scope Statement

3.2.1.2 (4.2) [edit] Part III - Planning Phase

21 Processes in this phase are

- Develop a project plan - Create a scope statement - create a WBS - Create an activity list - Construct a network diagram - Develop activity duration estimates - identify critical path(s) - develop a project schedule - determine resource requirements - estimate project costs - establish a cost baseline - create a quality management plan - Document team roles and responsibilities - assign project staff - create a communication management plan - create a risk management plan - identify project risks and triggers - Perform qualitative and quantitative analysis - develop a risk response plan - Prepare a statement of work - prepare a procurement document.

[edit] Chapter 6 Project Management Plan

3.2.2.1 (4.3)

[edit] Chapter 7 Scope Planning

3.2.2.2 (5.1)

Have you ever made a trip to the grocery store just to buy a loaf of bread and milk. However when you check out you realize that you were enticed to buy meat, cookies, candy, pies, and every other item that looked tasty in store. It is easy to exceed your original intentions if you do not have a clear objective of what your plan of attack is and how you plan to prevent yourself from diverting from your original path.

The following section discusses scope management which is how to get your work completed – and make sure you only get the correct work completed. We will also discuss how as a project manager you can create a plan to control your projects scope to ensure you have a plan to keep your work in line with your customers requirements.

According to the PMBOK Project scope management is “the processes to ensure that the project includes all of the work required, and only the work required, to complete the project successfully”. The project scope statement also meets the following criteria

  1.  It determines what is included in the project.
  2.  It serves as a guide to determine what work is not needed to complete the project objectives
  3.  It defines what work is needed to complete the project objectives.
  4.  It serves as a point of reference for what is not included in the project.

All this contributes to show that a Project Scope Statement is really just a statement that tells all stakeholders for the project what work is required to complete the project. It is a great tool for a project manager to determine what work is included on the project and all the project manager to add or remove work from the project.

[edit] Scope Planning Process

Inputs Project Charter, Preliminary project scope statement, project management plan

Outputs Scope Management plan

The Scope Management plan is a document that plays a key role at helping the project manager avoid possible issues with future scope changes, and scope creep. The Scope Management plan consists of some of the following characteristics.

1. It can be very formal or informal 2. The document describes how scope changes will be classified and identified 3. The plan describes how the project scope will be managed 4. The plan can be as detailed as the project manager deems necessary 5. This document is considered a subsidiary piece of the overall project management plan. [edit] Chapter 8 Scope Definition

3.2.2.3 (5.2)

[edit] Chapter 9 Create WBS

3.2.2.4 (5.3)

The WBS (Work Breakdown Structure) is a method of representing work packages, from the high level down to the low level. The project may be "Clean Kitchen" and is made of secondary level work packages such as "Wash Floor," "Clean Fridge," and "Wipe Countertops". "Wash Floor" might be broken down into "Prepare Materials," "Clear Floor of Objects," and "Scrub".

Work Packages should be broken down to whatever level is needed; either common sense takes over or the project scope limits the detail level. This is graphically represented by something such as: [edit] Chapter 10 Activity Definition

3.2.2.5 (6.1) [edit] Chapter 11 Activity Sequencing

3.2.2.6 (6.2)

Activity sequencing is a process for identifying dependencies between scheduled events. [edit] Chapter 12 Activity Resource Estimating

3.2.2.7 (6.3)

This process is required for finding out what types of resources are required for each scheduled activity. [edit] Chapter 13 Activity Duration Estimating

3.2.2.8 (6.4)

This process tries to find out the number of work periods shall be required for each activity which has been scheduled. [edit] Chapter 14 Schedule Development

3.2.2.9 (6.5)

This process is used to analyze sequences of activities, schedule constraints, resource requirements, and activity durations to come up with a feasible project schedule. [edit] Chapter 15 Cost Estimating

3.2.2.10 (7.1)

A good cost estimation includes the identification of cost components through thorough research. This enables the costs of a project to be monitored, and while the project is in progress, avoids cost overruns.

Inaccuracies in the cost estimation are inevitable. The goal is to be as realistice as possible

Typical cost components include labour, supplies, materials, equipments, and overheads.

S-Curve.

The S Curve is a tool which consists of a display of cumulative costs, labour hours or other quantities plotted against time.

The name of the S-Curve comes from the S-like shape of the curve, flatter at the beginning and end and steeper in the middle. The S-curve is useful as a cost estimation tool because it is the way most of the projects look like in the real world.

The S curve can be used as an indicator for many applications related to project management such as: target, baseline, cost, and time.

There are multiple types of S curves and they include :

The Cost versus Time S Curve. This is useful for projects that contain labour and non-labour tasks.

The Target S Curve. This is useful for the ideal progress of the project if all tasks are completed as currently scheduled.

The Value and Percentage S Curve. This is a useful for calculating the project's actual percentage completion.

The Actual S Curve. This one ise useful in depicting the actual progress of the project until the present time. [edit] Chapter 16 Cost Budgeting

3.2.2.11 (7.2) This process is used to find out the quality standards and metrics which shall be used in the project and also how they can be met satisfactorily. Budgeting means allocation of funds, suppose the estimate is of 100 units, but the money which can be provided for that activity is only 70 units. then 70 units becomes our budget. moreover it is the comprehensive short-term operational plan for a business.

The bill of materials defines the complete set of materials required in order to create a product.

The BOM can be in the form of a tree with multiple levels. It can also be in a document format which is indented to the lowest level required, so that it accurately lists all parts and raw materials needed to make the specified product.

The BOM is then used by the project manager and/or purchasing department to order any supplies which are necessary for the project. [edit] Chapter 17 Quality Planning

3.2.2.12 (8.1) [edit] Chapter 18 Human Resource Planning

3.2.2.13 (9.1)

This process is carried out to find out the human resources required for the project.

Also the roles of all team members.

Reporting relationships among members.

Responsibilites of team members

And creating a staffing management plan.

[edit] Chapter 20 Risk Management Planning

3.2.2.15 (11.1)

[edit] Chapter 21 Risk Identification

3.2.2.16 (11.2) [edit] Chapter 22 Qualitative Risk Analysis

3.2.2.17 (11.3)

[edit] Chapter 23 Quantitative Risk Analysis

3.2.2.18 (11.4)

[edit] Chapter 24 Risk Response Planning

3.2.2.19 (11.5) [edit] Chapter 25 Plan purchases and Acquisitions

3.2.2.20 (12.1)

The 6 processes of procurement management:

1. Plan Purchases and Acquisitions

2. Plan Contracting

3. Request Seller Responses

4. Select Sellers

5. Contract Administration

6. Contract Closure

Types of bilateral procurment contrats

Request for Proposal (RFP): this is a request for a detailed proposal on price, how the work will be accomplished, skills and experience of the people to be included and various other details. These items of service are usually higher dollar value and tend to be for nonstandard items.

Request for Quotation (RFQ): requests a price quote per item and hour. These items are relatively low dollar value.

Invitation for Bid (IFB) or Request for Bid (RFB): requests a single price for the entire package of work. Items of service are usually high dollar value and are standard. [edit] Chapter 26 Plan Contracting

3.2.2.21 (12.2)

[edit] Part IV - Execution Phase [edit] Chapter 27 Direct and Manage Project Execution

3.2.3.1 (4.4) [edit] Chapter 28 Perform Quality Assurance

3.2.3.2 (8.2) [edit] Chapter 29 Acquire Project Team

3.2.3.3 (9.2) [edit] Chapter 30 Develop Project Team

3.2.3.4 (9.3) [edit] Chapter 31 Information Distribution

3.2.3.5 (10.2) [edit] Chapter 32 Request Seller Responses

3.2.3.6 (12.3) [edit] Chapter 33 Select sellers

3.2.3.7 (12.4) [edit] Part V - Monitor and Control Phase

12 Chapters [edit] Chapter 34 Monitor and Control Project Work

3.2.4.1 (4.5)

This process is used to observe the execution of the project. The objective is to identify problems and issues in a timely manner and suggest corrective action so that the project's objectives can be met.

By knowing the variances of the project from the plan, corrective action can be suggested.

This includes monitoring project parameters and comparing them to the performance baseline.

Preventing the circumvention integrated change control so that only approved changes ar implemented.

Thus avoiding scope creep and gold plating. [edit] Chapter 35 Integrated Change Control

3.2.4.2 (4.6) [edit] Chapter 36 Scope verification

3.2.4.3 (5.4) [edit] Chapter 37 Scope Control

3.2.4.4 (5.5) [edit] Chapter 38 Schedule Control

3.2.4.5 (6.6) [edit] Chapter 39 Cost Control

3.2.4.6 (7.3) [edit] Chapter 40 Perform Quality Control

3.2.4.7 (8.3) [edit] Chapter 41 Manage Project Team

3.2.4.8 (9.4) [edit] Chapter 42 Performance Reporting

3.2.4.9 (10.3) [edit] Chapter 43 Manage Stakeholders

3.2.4.10 (10.4) [edit] Chapter 44 Risk Monitoring and Control

3.2.4.11 (11.6) [edit] Chapter 45 Contract Administration

3.2.4.12 (12.5) [edit] Part VI - Closing Phase [edit] Chapter 46 Close Project

3.2.5.1 (4.7) [edit] Chapter 47 Contract Closure

3.2.5.2 (12.6) [edit] Part VII - Professional Responsibility [edit] Chapter 48 Individual Integrity

Ensuring individual integrity and professionalism by adhering to legal requirements and ethical standards to protect the community and all stakeholders . [edit] Chapter 49 Contribution to the Community [edit] Appendix [edit] Acronyms [edit] References

   * Project Management Institute
   * Project Management Body of Knowledge (PMBOK), Third Edition, ISBN 193069945X

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