Introduction to Construction

Project Management
a) Introduction to Projects
b) Need for Management
c ) Ty p e s o f C o n s t r u c t i o n P r o j e c t s
d) Life Stages of Project
 - A non-routine non-repetitive work undertaken to create a
unique product/ service/ structure, within stipulated cost and
Time.

- Broken down into smaller activities which should be

completed in a particular sequence for the project to get
realized.

- Has a start and a finish date.

Project
 Resources required :
1) Material Resource
2) Man Power Resources
3) Cash flow

Objectives of Project Manager:

1) Completion with minimal elapsed time.
2) Proper utilization of Man Power Resources and
material resources.
3) Minimum Capital Investment.

Project
 • Numerous Teams involved.
• Multiple stakeholders (Client, Architect,

Need for Construction •

Contractor, Consultants, Vendors, etc)
Non- Linear Process.

Management • Legalities involved – Sanctions, Bye Laws,

Approvals, etc.
• Continuous need for alterations, ever evolving.
So What does Construction Project
Management (CPM/PCM) mean?
• Construction project management could be defined as the direction,
regulation and supervision of a project from early development to
completion.
• The ultimate goal of construction project management is the full
satisfaction of client’s demands for a viable project both in terms of
functionality and budget.
The Role of a Construction Project Manager
• A construction project manager is responsible for planning, coordinating, budgeting
and supervising projects from the beginning to the end.
• In short, a construction project manager has to take care of the following:
• Put together the budget and negotiate cost estimates
• Arrange the work timetables
• Choose the most efficient construction method and strategies
• Stay in touch with the clients for work or budget related issues
• Discuss about technical and contract details with workers and other
professional parties
• Keep an eye on the personnel in construction onsite
• Cooperate with building and construction specialists
Functions of Project Management Team
• Defining the requirement of work
( Initiation Process )
• Establishing the extent of work
( Planning Process )
• Monitoring the progress of the work
( Execution Process )
• Adjusting deviations from the plan
( Controlling Process )
• Completion of the Project.
(Closing Process )
Study areasof project management
1. Project integration management
2. Project scope management
3. Project time management
4. Project cost management
5. Project quality management
6. Project HR management
7. Project communication management
8. Project Risk management
9. Project procurement management
10. Project stakeholders management
Types of Construction
Project
Residential Project Commercial Project
• Include building single unit homes, • Commercial construction involves
subdivisions, cottages, building clinics, sports facilities,
apartments, townhouses and large shopping centers, hospitals,
condominiums. retail chain stores, skyscrapers,
offices of various sizes and types.
• A lot of new builders prefer
residential construction projects • Specialty engineers and
due to its ease of entry in the architects are usually hired to
industry of real estate. design buildings as it is relatively
complex compared to residential
• As such, it is a highly competitive segment.
market with potentially high
rewards and risks.
• It is the largest segment in
construction industry in India.
Types of Construction
Project
Institutional Project Industrial Project
• Any kind of campus projects for • Any kind of campus projects for
institutional use-Schools, institutional use- Factories,
universities, training centers etc. warehouses etc .
• Industrial construction may only
be a small segment of the
construction industry, but it’s very
important.
• Such projects are usually owned
by large, for-profit industrial
companies like medicine, power
generation and manufacturing
Types of Construction
Project
Transport related Heavy construction
• Roads, bridges, metros, terminals • Dams, sewage treatment plants,
etc. dredging projects, flood control
projects, water treatment plants
• Also, Repair, construction and and sewer line projects are some
alteration of roads, alleys, parking examples of heavy construction.
areas, highways, runways and
streets. • Normally public projects taken up
by large construction firms on a
• Taken up by large specialized public private partnership model.
construction firms mostly on a
public private partnership model.
Life cycle of the
Project

The project management life cycle is usually broken down

into four phases

1. Project conception and initiation

2. Project definition/planning
3. Project launch/execution
4. Project closure
Project Conception/Initiation

• Defining of project objectives and need

• Feasibility study- why? And how?
• Appointing project manager.
• Financial planning
• Location and site.
Project Planning and Design
• Defining Scope of the project
• Designing, drawings
• Cost estimation
• Defining contract terms and conditions
• Permits and approvals
• Scheduling
• Selection of contractors
• Mobilization of resources
• Preparation of site
Project Operation and Construction
This phase involves 2 broad processes,
• A. Execution
• 1. Resource allocation,
• 2. Procurement,
• 3. Construction
• B. Control
• 1. Cost and schedule monitoring
• 2. Quality checks
• 3. General safety
• 4. Documentation and records
Project Termination and Closure
• Final cleanup at site
• Quality checks
• Relieving all labor and contractors from further
responsibilities.
• Final documentation, as built drawings to owner
• Termination of contracts
• Acquiring Required permits and NOCs
 A social unit of people that is structured and
managed to meet a need or to pursue collective
goals.

All organizations have a management structure

that determines relationships between the different
activities and the members.

It subdivides and assigned roles, responsibilities,

and authority to carry out different tasks.
Organization
clearly defined purpose for which they have been
brought together."
Clear hierarchy
Types of Organization

1. Sole proprietorship
2. Partnership
3. Private ltd companies
4. Public Ltd companies
5. MNC and Conglomerates
Types of Organizational Structures
1. Line organisational structure
2. Line and staff organisational structure
3. Staff or functional authority organisational structure.
4. Committee organisational structure.
5. Matrix organisational structure
 Line Organizational Structure
• Line organisation is the simplest and oldest form of organisation
structure.
• It is also called military type of organization.
• Under this system, authority flows directly and vertically from the top
of the managerial hierarchy ‘down to different levels of managers and
subordinates and down to the operative level of workers.

Foreman-A Workers

Project
President Vice President Foreman –B Workers
Manager

Foreman –C Workers
Advantages of Line Organization

1. The personnel in Line organization are directly involved in achieving

the objectives of the organization.
2. Clear identification of authority, accountability and responsibilities.
3. Simple to understand and simple to operate.
4. Communication is fast and easy.
5. Especially useful when the company is small in size, it provides for
greater control and discipline in the organization.
6. It makes rapid decisions and effective coordination possible. So it is
economic and effective.
Disadvantages of Line Organization

1. It is a rigid and inflexible form of organization.

2. Efficiency of the structure depends heavily on the person in authority
3. No Specialization.
4. There is a tendency for line authority to become dictatorial.
5. It overloads the executive with pressing activities so that long-range
planning and policy formulation are often neglected.,
6. May encourage favoritism.
7. It does not provide any means by which a good worker may be
rewarded and a bad one punished.
Line and Staff Organizational Structure
Variation of line organization.
The functional specialists (STAFF)are added to the line.
Staff-is basically advisory in nature and usually does not possess any
command authority over line managers.
They help the line managers by taking up workload of specific functions.
Line managers- direct responsibility for accomplishing the objectives of
the enterprise.
Type of Staff:
1. Personal Staff-personal assistants, advisors
2. Specialized Staff-account manager, research, legal etc
 CEO

Legal Vice Public

Counsel President Relations

Engineering
Manager
Staff
Line and Staff
Organizational Supervisor
Personal
Staff
Structure
Foreman

Workers
 Advantages of Lineand Staff Organization
(i) Specialization,
(i) Line officers can concentrate mainly on the
(ii) Large-scale
production/implementation as the work of
production,
planning and investigation is performed by the
(iii) Improved staff- division of responsibility.
efficiency,
(ii) Specialization provides for experts advice and
(iv) Flexibility, efficiency in management.
(v) Better Industrial (iii) Works better for larger organizations.
relations,
(iv) The system is flexible as new activities may be
(vi) Separation of undertaken by the staff without forcing early
mental and adjustments of line arrangements.
physical functions.
Disadvantages of Line and Staff Organization
(i) Confusion and conflict may arise between line
(i) Multiplicity of and staff.
authority,
(ii) Staff generally advise to the lines, but line
(ii) Indiscipline, decides and acts. Therefore the staffs often feel
(iii) Shifting of powerless.
responsibility, (iii) Delay in decision making.
(iv) Lack of co- (iv) Although expert advice is available it reaches
ordination, the workers through the managers. Here it is
(v) impracticable, liable to create a greater deal of
misunderstanding and misinterpretation.
(vi) delay in decision
making. (v) Since staff specialists demand higher
payments, it is expensive.
Functional Organizational Structure
Functional organisation refers to the organisation which is divided into a
number of functions such as finance, production, sales, personnel,
office and research and development and each of functions are
performed by an expert”.

So it has Line authority, staff authority and functional authority in this

type of organisation.
 Board of
Directors

General
Manager

Project Purchasing Engineering Financial Marketing

H&R Director
Manager Manager Manager Director Director

Section Chief Necessities Site Engineer Personnel Accountant Marketing

Structural
Documenter Materials Insurance Cashier Sales
Engineer

Office
Site Engineer Cost Estimator Advertisement
Management

Planning
Surveyor
Engineer

Civil
QA/QC
Functional
Supervisor
Organizational
Safety
Engineer
Structure
Advantages of Functional Organization

One of the most popular form of structure which works very well for large
organisations.
Each manager is an expert in his field. He has to perform a limited number of
functions. So complete specialization in functional organisation.
The greater degree of specialisation leads to improvement in quality of
product.
Since experts get sufficient time for creative thinking, planning and supervision
are made efficient.
It increases the work satisfaction for specialists who presumably do what they
like to do.
Disadvantages of Functional Organization
Each worker receives instructions not only from one superior, but also from a
group of specialists.

a. Since there is no direct boss or controller of the workers, co-ordination is hard

to achieve.
b. Since workers are under different bosses, discipline is hard to achieve.
d. Since control is divided, action cannot be taken immediately.
e. The conflicts of leadership may arise.

Expensive as each function requires its own team.

Committee Organizational Structure

Committee is a group of individuals formed permanently or temporarily

for a particular purpose through free interchange of ideas.

It is a Variation of line and staff organization, where instead of staff, you

have different committees for different functions.

Committees have control and say in decision making unlike the staff
members.
Advantages of Committee Organization
(I) Pooling of ideas,
(II) Co-ordination,
(III) Motivation through participation,
(IV) Representation of interest groups,
(V) Easy communication,
(VI) No concentration of power,
(VII) A tool of management for development.

Disadvantages are 1) Slow Decisions, 2) Divided responsibility

Matrix Organizational Structure
A matrix organisation, also referred to as the “multiple command system” has two chains
of command.

One chain of command is functional in which the flow of authority is vertical.

The second chain is horizontal depicted by a project team, which is led by the project, or
group manager who is an expert in his team’s assigned area of specialisation.

Since the matrix structure integrates the efforts of functional and project authority, the
vertical and horizontal lines of authority are combination of the authority flows both down
and across.
Functional
Organizational
Structure
 Advantages of Matrix Organizational Structure
• Since there is both vertical and horizontal communication
it increases the coordination and this coordination leads to

• •Strong product/project co-ordination. greater and more effective control over operations.

• •Improved environmental monitoring. • Since the matrix organisation is handling a number of

projects, available resources will be used fully.
• •Fast response to change.
• It focuses the organisational resources on the specified
• •Flexible use of resources. projects, thus enabling better planning and control.

• •Efficient use of support systems. • As any department or division has to harness its effort
towards accomplishment of a single project, employees
are effectively motivated.
Disadvantages of Matrix Organizational Structure
•High administration cost.
Since, there is more than one supervisor
•Potential confusion over authority and
for each worker, it causes confusion and
responsibility.
conflicts and reduce effective control.
•High prospects of conflict.
There is continuous communication both
•Overemphasis on group decision vertically as well horizontally, which
making. increases paper work and costs.

•Excessive focus on internal relations.

 Ideal construction organisation
Services:

A good construction firm offers a wide range of construction services to its

clients.

Essentially, the company handles construction projects from the beginning to

the end.

Thus, once you give your project to such a company, its experts will take care
of the management and construction of your entire building.
 Ideal construction organisation
Expertise:

It has a team of experienced designers, architects, contractors, and inspectors.

These handle every aspect of the construction process carefully and
professionally.

That means you don’t have to look for an architect once you hire the right
construction company.

You just sign a construction contract and fulfill your part and the company will
take care of the rest.
 Ideal construction organisation
Licensed and insured

Nobody wants to deal with an unlicensed or uninsured construction firm.

That’s because everybody wants to ensure that safety procedures are

observed during the construction process.

As such, a good company is licensed to operate in your area. Its employees are
also insured against workplace injuries or accidents.

Thus, you can’t be held responsible for injuries that the employees may sustain
while working at your construction site.
 Ideal construction organisation
Budget management: A good construction firm will give you an honest and accurate pricing as well as the timeframe
for the job. Additionally, an ideal construction company should have few additional qualities which will separate it from
other companies in the market-

Integrity- to have a strong set of moral principles.

Innovativeness- to tackle unexpected issues during construction.

Flexibility-flexibility to absorb unexpected changes and impact from changing market forces.

Risk tolerance- It helps protect clients from serious financial harm if there is an accident, injury, or lawsuit.A truly
leading company should go the extra mile to ensure that everyone on the premises is safe.

Effective communication- one of the key points is to have effective communication between teams and with
stakeholders.
 What is Professional Ethics ?
•Honesty: Acting honestly and avoiding conduct likely to result, directly or indirectly, in
the deception of others.

•Fairness: Not seeking to obtain a benefit which arises directly or indirectly from the
unfair treatment of others.

•Fair reward: Avoidance of acts likely to deprive another party of a fair reward for work.

•Reliability: Only provide services and skills within areas of competence.

•Integrity: Regard for the public interest. No bribes

 What is Professional Ethics ?
•Objectivity: Identify potential conflicts of interest and disclose this to the party who
would be adversely affected by it.

•Accountability: Provide appropriate information so effective action can be taken where

necessary.
•Ensuring quality
•Safety of workers and good living conditions
•Concern for environment
•Timely payment of dues to all concerns
•No bid shopping or rigged bidding
•Fair practice and transparency in system