ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY

DEPARTMENT OF CIVIL ENGINEERING

Course Title: Const

CENG 4308
CONSTRUCTION PLANNING AND MANAGMENT

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CHAPTER TWO: CONSTRUCTION
MANAGEMENT
 Chapter 2 Outline
• Objectives of construction Management
• Overview of Project and Project Management
• Project Life Cycle
• Construction Projects Main features
• Functions of Construction Management
• Project Management body of knowledge
• Resource management - Human resource management

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 Objectives of Construction Management

•The main objectives of the construction management team should include:

• Project completion within the allocated budget and duration,
• Ensure that the production of construction works satisfy the client’s
functional requirements
• Construction to specified standards
• Provision of safe and satisfactory working condition.
• Accordingly, construction project management may be defined as the
overall control of the total management process to optimize the three
attributes of the process: Quality, Schedule and Cost.
OVERVIEW OF PROJECT AND
PROJECT MANAGEMENT
 Overview of Project
• A project is a unique endeavor to produce a set of
deliverables within clearly defined constraints of time, cost
and quality.
• A project is an investment activity where resources are
used to create capital assets which produces benefits
overtime and has a beginning and an ending with specific
objectives.
• A programme is an ongoing development effort or plan.
• A programme is therefore a wider concept than a project.
• It may include one or several projects at various time, with
specific objectives linked to the achievement of higher
level of common objective

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 Project Vs. Programme

• e.g. a health program may include a water project, as well

as construction of a health center both aimed at improving
the health of a given community which previously lacked
easy access to these essential facilities.
• Projects which are not linked with others to form a
program are sometimes referred to as stand alone projects.
• A project to build a feeder road from an interior
agricultural district to a district headquarter may qualify
to be a stand alone project.

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 Project Vs. Programme
• When projects are designed to improve health of the
community such as rural clean water supply project, health
center construction project, pit latrine construction project
and sanitary, education project; they can be referred to as a
programme.
• Projects are different from business operations in terms of
uniqueness, timescale, budget, resources, risks and change.
• Uniqueness: Every project is different from the last one,
whereas operational activities typically involves repetitive (if
not identical) processes
• Timescale: A project has clearly specified start and end
dates within which deliverables are produced to meet
customer’s requirements.

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 Project Vs. Business Operations
• Budget: A project has a maximum limit to the expenditure
within which the deliverables must be produced, to meet the
customer’s requirements
• Resources: A project is allocated a specified amount of
labour, equipment and material at the start.
• Risk: A project entails uncertainty and therefore carries
business risks
• Change: The purpose of a project is typically to improve a
situation through the implementation of change.

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 Project Management

• Project Management is the capacity to marshal resources,

lay out plans, program work and spur effort for a
temporary endeavor which is finite in that it has a defined
beginning and ending, and which is undertaken to create a
unique product or service.

• Project Management is the utilization of skills, tools and

management processes to undertake a project successfully .

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 Project Management

• Project management methodology includes:

▪ A set of skills: specialized knowledge, skills and experience
help to reduce the level of risks and improve the likelihood
of success.
▪ A suite of tools: Project managers use several types of
tools to ensure a project’s success rate. These include
templates, forms, registers, software, checklist, etc.
▪ A series of Processes: A suite of management processes
are needed to monitor and control the project; such as
time management, cost management, quality management,
change management, risk management, etc.

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 Measure of Project Success
• A successfully managed project is one that is completed at a
specified time, acceptable quality delivered on or before the
deadline, and within the budget.
• Client satisfaction will indicate success and possibility of
replication or sustainability.
• Each of these parameters is specified in details during the
planning phase of the project.
• This specification then forms the basis for evaluating the
project during the implementation phase.

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 Rationale for Project Management

• The essence of project management is to:

• Maximize chances of reaching the objectives of the project
which fits with the specification, and respect or exceed the
agreed QUALITY to be delivered in TIME, SCOPE and
BUDGET

• Strive for efficiency because of limited resources which

are available, and the need to achieve the objectives of the
project as earlier as possible

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 Key Measures on Project Management

1. Define the objectives, goals and products of the project e.g

in construction project you need to have objectives and
goals of the project
2. Check for feasibility i.e is the project viable or not
3. Make a project plan or schedule of activities
4. Organize the people who are going to carry out the
project and make sure that communication is clear
5. There is a need to have a baseline data(like drawings,
specifications, BOQ, schedule, etc.)
6. Then execute the plan
7. Control the activities and monitor the progress of the
project

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 Key Measures on Project Management

8. Measure and assess the project against the

baseline
9. Evaluate the project
10. Re-plan any changes to the project
implementation with greater precision until
project completion
11. Close the project
12. Learn lessons from the project

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 Construction Projects Main features

1. Predetermined Objectives
 Components of a certain business
 Often the first phase
2. Constrained Schemes
 Schedule, Budget, Resources and Results / Scope Constraints
3. Too Fragmented
 In processes,
 In financial sources when co financed, and
 In responsible bodies
4. Investment
 Accelerates economic growth of a nation
 Cost Extensive, and
 Slow & Low business return on investment
 Construction Projects Main features

5. Human Resources
 Involves large number
 Borrowed
 High turnover
6. Construction Equipment
Short life time, and
Highly cost extensive both to own and increase their
life time
7. Reports and Monitoring disparity
Exhibits Financial & Engineering Reports disparity
during implementations unless committed and
compensation events are not clearly considered
Functions of Construction Management
• The functions of construction management are the same to that
of the five managerial functions defined by Henry Fayol. The
following seven functions can better classify the different
functions: Planning, Organizing, Staffing, Motivating,
Communication, Measuring and Correcting, and Coordinating.
i. Planning
• Planning is a function of devising the cause for the future with a
vision, formulated for the future state of the organization or the
project. Planning also involves preparation of alternatives for
achieving specified objectives.
 In preparation of plans the following questions should be
addressed:
• What to do?
• How to do?
• Where to do?
• Who is to do it?
• How much does it cost?
The detailing of the plan depends on:
 Size of the project
 Degree of difficulty
 Knowledge and experience
 Degree and extent of indeterminate
operations
 Extent of internal and external constraints
 Scheduling:
• Scheduling is timing of the work activities. During scheduling
questions like when to do it and how long it takes should be
addressed.
ii. Organizing
• Organizing is required to achieve effective utilization of the
people, facilities, equipment and money available to the
Organization.
• Organizing also involves establishing a workable organizational
structure to divide the work into manageable department/
sections and delegate tasks accordingly.
iii. Staffing:
• Staffing involves assigning (employing) people to fill the posts
created within the organizational structure. Staffing also
involves matching the organization’s needs with each employee’s
goals and desires, and it requires adherence to equal
opportunity regulations.
iv. Motivating:
• Motivation can be defines as follows:
• Motivation is the set of processes that moves a person towards
a goal.
Motivation is the internal or external forces
that act on a person that arouse enthusiasm
and persistence to pursue a certain course of
action.
•Motivation is important in management of
people because a motivated workforce will “go
the extra mile” to exceed performance
expectations on the job.
• There are a number of theories which formulate why
people are motivated,

Hertzberg’s Two-Factor Theory:

• Considers factors that motivate, and reduce motivation

(motivators & de-motivators) and Key part of this theory is
that two separate sets of characteristics affect motivation
and employee performance.
• It considers Motivators as Achievement,
Recognition, Responsibility, Advancement,
the Work Itself, and Job Content.
• And De-Motivators (Hygiene) factors like
Salary, Technical Supervision, Company
Policies and Administration, Interpersonal
Relations, Working Conditions, and Job
Context.
v. Communication:
•Communication is a multifaceted management
responsibility. Communication can be formal and informal; it
is both written and oral.
• It utilizes paper, telephone, face-to-face, and electronic
means. Construction Managers communicate goals and
purposes; information, instructions, and inducements.
•They also ensure that the messages are sent and received
in the multitude directions.
vi. Measuring and Correcting:
•Measuring and Correcting involves:
• Measuring the actual performance
• Identify plan and schedule
• Compare plan against performance
• If there is discrepancy, identify the reasons
• Analyze the costs incurred
• Take remedial measures
• Observe quality of work
vii. Coordinating:
•Coordinating – conduct regular departmental and
section heads meeting for discussion.
 CPM: Body of Knowledge

The Project Management Body of Knowledge

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Project Management Body of Knowledge
The Project Management Body of Knowledge
• The Project Management Body of Knowledge (PMBOK) is a
collection of processes and knowledge areas generally
accepted as best practice within the project management
discipline.
• As an internationally recognized standard (IEEE Std ) it
provides the fundamentals of project management,
irrespective of the type of project be it construction,
software, engineering, automotive etc.

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 CPM: Body of Knowledge
• The Project Management Body of Knowledge

Project
Integration
Management

Project
Procurement & Project Resources
Contract Management
Management
PM BoK

Project
Project Environment,
Constraints Health & Safety
Management Management
 CPM: Body of Knowledge
1. Project Procurement and Contract Management
• Governance System
• Project Procurement Management
• Project Contract Management
2. Project Constraints Management
• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
3. Project Resources Management
• Project Financial Management
• Project Human Resources Management
• Project Materials Management
• Project Machineries and Plants Management
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 CPM: Body of Knowledge
4. Project Environment, Health and Safety Management
• Project Environment Management
• Project H&S Management
5. Project Integration Management
• Project Feasibility (Economics) Management / Front –
End Assessment
• Project Portfolio Management;
• Project – Parent (HO) Relationships Management
• Project Communication & Performance Management
• Project Uncertainty and Change Management
• Project Uncertainty / Risk Management
• Project Configuration / Changes / Alterations Management
• Project Claim and Dispute Management
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:

1. Project Procurement & Contract Management

involves:
• Procurement & Contract Governance System
(Services Vs Works)
• Construction Law
• Delivery System
• Contracting Method
• Procurement Method
• Contract Type
• Procurement and Contract Management Planning
• Establishing Procurement Team
• Deciding Proc & Cont Governance Structure
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 CPM: Body of Knowledge
• Project Constraints Management
• Project Time Management involves
• the management of Activities and Resources
Dependencies
• PTM processes:
• Define Activities
• Sequence Activities
• Estimate Activities Resources
• Estimate Activities Durations
• Develop Schedule
• Monitor and Evaluate Schedule
• Critical Path Method Vs PERT Vs Critical Chain
Method
• MS Project / Primavera
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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
2. Project Constraints Management
• Project Cost Management involves
• Cost Estimating, Budgeting and Controlling
Costs
• Budget and Cash Flow Management
• PCM processes
• Activities Definition
• Define Measuring Units and Cost Coverage
• Estimate Activities Resources
• Define Crews and CBS
• Determine Resources Basic Prices
• Estimate Activity Costs

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 CPM: Body of Knowledge
• Develop Cash Flows and Budget
• Monitor and Evaluate Costs
• Cost Estimate Vs Project Cycle / Phases
• Refer Cost Estimating Slides and Cases
• The Project Management Body of Knowledge:
2. Project Constraints Management
• Project Quality Management involves
• Define & Plan Quality Requirements,
• Perform Quality Assurance & Control Services
• Project (as temporary organization)
Management
• Product Quality Management
• Refer PMBoK

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 CPM: Body of Knowledge
3. Project Resources Management
• Project Financial Management
• Involves the management of Project finance
• Project Finance involves Project cash flow &
liquidity management
• Determine Organization and Project healthiness
using Balance sheet, Income Statement and
Financial ratios
• Project Human Resources Management involves
• the management of Project personnel and Labor
workmanship and productivities
• Develop HR plan and Acquire, Manage and Develop
Project team
• Develop LBS, Define and Control Productivities
and Workmanship requirements 38
 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
3. Project Resources Management
• Project Materials Management involves
• the management of Materials Quality,
Procurement & Handling
• Develop MBS, Define and Control material
quality
• Project Machineries and Plants Management
involves
• the management of Machineries and Plants
access, installations, calibrations,
productivities, costs and maintenance

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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
4. Project Environment, Health and Safety Management
• Project Environment involves
• Environment Impact Assessment, Resettlement
Action Plan and Fire Protection; and their
Implementation and Control
• Project Health involves
• Identifying health hazard work methods,
chemicals, working environments; Develop,
Implement and Control preventive methods
• Project Safety involves
• Identifying accident prone activities; Develop,
Implement and Control preventive methods
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 CPM: Body of Knowledge
5. Project Integration Management
• Project Portfolio Management / Project - Parent
Relationships Management
• the management of Organizational
relationships and authorities; and Resources
Allocations among Programs and Projects
• Develop Organizational Breakdown Structures
(OBS), Implement and Control OBS
• Project Communication Management
• the management of Project Management
Information System (PMIS)
• Plan communication requirements, Develop
communication mechanisms, Implement and
Control Communications
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 CPM: Body of Knowledge
• The Project Management Body of Knowledge:
5. Project Integration Management
• Project Uncertainty and Change Management
• Project Risk Management
• Plan Risk Management, Identify Risks, Perform Risk
Analysis (Qualitative and / or Quantitative),
Develop and Plan Risk Responses (Scenario
Management), Monitor and Control Risks
• Project Configuration / Changes / Alterations
Management
• Develop and Plan Changes Management, Monitor
and Control Changes and Consequential Impacts

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 CPM: Body of Knowledge
• Includes Requirement Changes Management, Project
Completion Time and Project Cost Variations
Adjustment System
• The Project Management Body of Knowledge:
5. Project Integration Management
• Project Uncertainty and Change Management
• Project Claim and Dispute Management
• Develop and Plan Claim and Dispute
Management, Monitor and Control Claims and
Disputes including their Consequential
Impacts

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 Resource Management
Human Resource Management

• Human resource is probably the most important of

all the resources involved in the
Construction Industry.
• Usually Labor in the form of technical and
managerial personnel and work forces in various
trades and professions are essential to carryout
projects efficiently and effectively.
• Thus any construction manager shall have the
necessary knowledge on personnel management.

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 Human Resource Management
• Any Human Resource management has to be based
on the existing Labor and other civil codes related
to worker’s right.
• Many construction projects face a challenge when
it comes to labor force management as they are
not aware of the prevailing laws and decrees.
• The detail view of labor management will
presented as all construction projects and
construction firms are effective as long as there
employees are effective.

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 Labor Management: -
• There are three types’ labor relations:
• Industrial relation: refers to all types of
relationships between the parties concerned within
industrial undertakings including construction,
agriculture, mining, commerce finance, transport
and other services
• Labor relations: refers to the relationship between
the labor union and management
• Employee relation: describes the relationship
between management and individual employee in
that light it is some times called “Employee-
employee relations.”
 Objective of Labor Relation Management
• Thus the main objectives of Labor Relation
management are:
• To bring about healthy relations between employee
and employers
• To minimize Industrial disputes
• To secure harmonious relations among all who are
concerned with production and operation process
• To increase productivity of workforce

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 Objective of Labor Relation Management

To give workers their desired place by

considering them as partners and
associating them with management
• To give the workers their due share in profit,
improve their working conditions and their
by eliminating the possibility Industrial
unrest such as strikes, lockout etc.

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 Managing the Labor Relations Process
• The labor relation management process has
three phases.
• Union Organizing
• Collective Bargaining
• Labor Contract Administration

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 Managing the Labor Relations Process
Union Organizing
• In this phase the union organization
management confronts the issues involved
with union solicitation, election or reelection
conduct, and the certification election.

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 Managing the Labor Relations Process

• Collective Bargaining
• Collective bargaining is the phase that
management representatives negotiate with
union representatives on terms of workplace.
The end result of collective bargaining is the
labor agreement or contract.
• Mandatory Bargaining Topics: Wages, Hours
and Employment Conditions are usually
mandatory bargaining topics.

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• Wages: - Base pay rates, Overtime pay rates, Retirement
benefits, Health benefits, Travel pay, and Pay incentives.
• Hours: - Overtime, Holidays, Vacation, and Shifts.
• Employment Conditions: - Layoffs, Promotions, Seniority
provisions, Safety rules, Work rules, Grievance procedures,
Union shop, and Job descriptions.
• Collective bargaining requires negotiating skills such as the
understanding of conflict and conflict management.

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The principles of negotiation include:
• Honesty: telling the truth
• Working out the essential elements of
disputes
• Not to inject considerations that are not
relevant to the disputes
• To have patience
• To get prepared to work hard and keeping
oneself physically fit
• To empathize
• To be flexible
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Thank You!!