Construction Project Management and

Its Relevance
Introduction

Construction projects are very different than other types of projects (e.g. industrial, research,

software etc.) due to their inherent complexity, multi-disciplinary nature, longer time horizons

and large costs involved. Another critical aspect to construction projects is their dynamic nature

of development and delivery. Unlike production processes, where the product takes shape from

raw materials to finished goods by travelling across multiple stationary processes (i.e.,

assembly line), in construction, the product (constructed facility) gets continuously

transformed and shaped by multiple dynamic processes who move across the product

throughout its lifecycle. That means, in construction, not only the products are dynamically

changing, but also the processes which shape them, are dynamically evolving. Construction

projects are also unique with definite start and end and employ different combinations of

technology and management strategies commensurate with the contexts of the projects to

deliver the objectives. Whereas, steady-state organizations like mass production facilities have

routine processes and operations that run continuously.

According to the Project Management Institute, “Navigating workflows across multiple project

stakeholders (e.g., owners, developers, designers, engineers, contractors, product vendors, and

government agencies) expands the complexity of this challenge. In addition, different

organizational systems; interfaces between components; large pieces of equipment in confined

work spaces with multiple work crews in close proximity; extensive detail and intricacies of

elements; and efficient coordination, control, and monitoring make construction infinitely more

complex. Strong evidence from research in the construction industry reveals that one of the

factors that cause construction projects to fail stems from decisions made in the front end of
the project in the engineering and design phase. Despite their importance, front-end

management issues, responsibilities, roles, and actions may not typically garner the required

attention.”

Arguably, there is no other discipline that is more difficult than construction projects. The same

can be gauged from the fact that less than 20% of the projects ever get delivered while

achieving the 4 objectives of timely delivery, within budget completion, with desired quality

level while maintaining a safe working environment. The construction industry is also one of

the most controversial sectors that are fraught with allegations of malpractice, corruption and

unethical practices. Construction projects are people-centric, involve a greater number of

stakeholders (both internal and external) and utilize natural resources that are becoming more

and more scarce. Hence, managing construction projects require not only scientific and

analytical acumen of the project manager, but also a humanistic and ethical approach to lead

them to success.

Project management is both an art and a science because it involves elements of both in tackling

the inherent challenges successfully. It requires leadership, people acumen, business acumen,

political acumen and also require application of analytical tools, systematic processes, detailed

and rigorous methodologies, and various management techniques for effective delivery of the

objectives (see diagram below).

What is project and project management?

The Project Management Institute (PMI) defines project as a temporary endeavor undertaken

to create a unique product, service, or result.

Construction projects can be defined as a series of tasks of activities that have a specific

objective to be completed within certain specifications, have definite start and end, have

funding limits, consume resources (manpower, machinery, material) and are multi-functional

or cross-functional.

In certain cases, money and time are also termed as resources. However, it is contested that

money is an intrinsic need of projects, without which it is impossible to conceive, initiate or

execute them. Resources are those which get consumed during the process of execution of

projects through dedicated efforts and require optimized utilization. Similarly, time is

something that is beyond the control of project executioners. Even if nothing is done on the

project, time will pass i.e., will be consumed without any effort. Hence, these two aspects may

be critical to manage in projects, but are not technically resources that needs optimization.
Modern construction also considers “information” as a resource which has enormous potential

to improve the delivery of the objectives if utilized properly.

Project management is the systematic application of knowledge, skills, tools, and techniques

to project activities to meet project requirements. Project management requires rational

implementation of various decision-making tools, application of people skills and assessment

of various risks associated with different processes needed to deliver the projects.

PMI defines project management as “The art of directing and coordinating human and material

resources through the life of a project by using modern management techniques to achieve

predetermined goals of scope, cost, time, quality and participant satisfaction.”

As per the Chartered Institute of Builders (CIOB), “construction management is the

development, conservation and improvement of the built environment through clients,

organizations and individuals working together to meet the changing needs of our global

society.”

The major elements of project management are: achieving project goals, meeting the stipulated

timeframe, delivering the project within the allocated funds, optimizing the human and

technical resources, and delivering the completed facilities to the satisfaction level of the

clients. The major dimensions of construction project management that is at the core of the

projects are planning, execution and controlling (see fig below).

Potential Benefits of Project Management

The potential benefits from project management are:

• Identification of functional responsibilities to ensure that all activities are accounted

for, regardless of personnel turnover

• Minimizing the need for continuous reporting

• Identification of time limits for scheduling

• Identification of a methodology for trade-off analysis

• Measurement of accomplishment against plans

• Early identification of problems so that corrective action may follow

• Improved estimating capability for future planning

• Knowing when objectives cannot be met or will be exceeded

However, to achieve these benefits, the following obstacles need to be overcome the

following:

• Project complexity – multiple interdependent interfaces, processes, functions and

stakeholders

• Customer’s special requirements and scope changes – everchanging needs and

requirements

• Organizational restructuring – regularly evolving and changing project organizational

structures

• Project risks – inherent risks in construction projects (political, economic, social,

technological, legal and environmental)

• Changes in technology – rapidly transforming technological landscape

• Forward planning and pricing – most schedules and budgets are prepared at the front

end/early stage of the project which are always subject to change

The VUCA Environment of Construction Projects

Construction projects operate in an environment that is volatile, uncertain, complex and

ambiguous (VUCA). The volatility stems from the everchanging requirement, specification,

technology, and stakeholder expectations that are integral to the construction industry.

Uncertainty is due to the absence of reliable forecast, patterns, trends, and high prevalence of

risks in the sector. The complexity stems from the technological advancements and their impact

on the application of project management, changes to the building environment through the

development of new construction equipment and materials, and the magnitude of stakeholders

with varying project expectations.

Additionally, interdependent processes, the multidisciplinary nature and cross functional

interfaces required in almost all construction projects add to the complexity profile of the
projects. Construction projects are delivered through execution of contracts that are subject

different interpretations by the stakeholders. The objectives of the projects and their

deliverables are also sometimes misinterpreted and wrong expectations arise at different points

in the life of the project. These are the causes of ambiguity in delivering construction projects.

Navigating the project to its successful completion through this VUCA environment is one of

the biggest challenges of construction project management (see fig below).

Why Construction Projects are unique?

Construction projects are unique and pose challenges that are very different than projects in

other businesses. The unique features of construction projects are –

• One-time activity—it must be performed correctly the first time every time

• Complexity—it is multidisciplinary because it involves a set of interrelated tasks to be

done by specialists

• High cost and time for execution

• High risk of failure

• Difficulty in defining quality standards

• Uniqueness of people relationship

• Feedback mechanism
 • Lack of experience of client or owner

• Untrained workforce

Nature of Projects

Characteristics of
typical projects

The Gaps in Managing Construction Projects

As Harold Kerzner says –

“Project management is designed to make better use of existing resources by getting work to

flow horizontally as well as vertically within the company. This approach does not really

destroy the vertical, bureaucratic flow of work but simply requires that line organizations talk

to one another horizontally so work will be accomplished more smoothly throughout the

organization. The vertical flow of work is still the responsibility of the line managers. The

horizontal flow of work is the responsibility of the project managers, and their primary effort

is to communicate and coordinate activities horizontally between the line organizations.”

“There are always “class or prestige” gaps between various levels of management. There are

also functional gaps between working units of the organization. If we superimpose the

management gaps on top of the functional gaps, we find that companies are made up of small

operational islands that refuse to communicate with one another for fear that giving up

information may strengthen their opponents. The project manager’s responsibility is to get
these islands to communicate cross-functionally toward common goals and objectives (see fig

below).”

“Project management is the planning, organizing, directing, and controlling of company

resources for a relatively short-term objective that has been established to complete specific

goals and objectives. Furthermore, project management utilizes the systems approach to

management by having functional personnel (the vertical hierarchy) assigned to a specific

project (the horizontal hierarchy).”

Project Lifecycle Phases

Peter Fewings states that the life cycle of a project from a client’s point of view really starts

when there is a formal recognition of project objectives, generally termed the inception, and

through to the delivery of these objectives – generally called the completion or project delivery.

Activities relating to the conception of a project may take place over an extended period before

formal recognition.

Related activities commissioning the project also take place in the period after formal

completion. In construction projects, this inception is generally associated with the

commissioning of external consultants and a life cycle indicating the main elements of its life

cycle as shown in the figure below.

Inception

The life cycle of construction projects starts at inception, at the stage where a client’s business

case for a building or a refurbishment is communicated to a professional team to develop the

constraints. The inception process may be an extended period. In order to proceed, a client has

to test the feasibility of the business case they have. The feasibility stage therefore, can include

investigation of alternative site locations, funding options, design option appraisal, value

enhancement, comparative estimates and life cycle costing.

Strategy

It deals with how a project is carried out and controlled, such as the procurement route that is

chosen, the cost, the program, the control systems, the quality management and the

methodology for construction. Strategy also needs to identify the right procurement method

and determine the organization structure of the project.

Pre-construction (Design and Tendering)

Pre-construction (design and tendering) appoints the full design and construction team and

includes the full development of the design scheme, detailed drawings, tendering and

mobilization of resources for construction.

Construction

The construction phase is self-explanatory, but it has a particular emphasis on the control of

time, quality and cost and the management of many other issues such as supply chain, health

and safety planning, the environment and change.

Engineering Commissioning

Engineering commissioning comes at the latter end of construction. It is distinctive as its

outputs should include the efficient functioning of the building. The management of the process

includes the signing off of various regulatory requirements such as building regulations, fire

and water certificates, gas and electrical tests.

Completion and Handover

Practical completion is certified by the project manager for the formal handover of the project

and systems to the facilities team. Liability is not limited by occupation and there is a

responsibility to put defects right if and when they occur after handover.

Occupation and Commission

The client’s occupational fit out follows full or sectional completion of the contractor work and

may well involve a new project team. This period often has intensive collaboration with user

groups and FM teams.

Post-project Appraisal and Review

Post-project appraisal and review is the final stage. The objective is to evaluate success in

meeting the objectives as set out in the business case/ project brief and to look at lessons learnt

and to carry forward improvements, where relevant, to the next project or phase.

Similar framework for project lifecycle stages are expressed by K N Jha in his book

“Construction Project Management: Theory and Practice”. The life cycle stages are expressed

in the figure below. The details will be discussed in a separate chapter later.

The Project Process Groups

Project management process groups are logical grouping of various project management

processes. This grouping of processes helps to achieve a specific project objective.

Project management involves five process groups as identified in the PMBOK® Guide,

namely: Initiate, Plan, Execute, Monitor & Control, and Closure. In fact, these five project

management process groups accommodate 49 different project management processes.

Project initiation

• Selection of the best project given resource limits

 • Recognizing the benefits of the project

• Preparation of the documents to sanction the project

• Assigning of the project manager

Project planning

• Definition of the work requirements

• Definition of the quality and quantity of work

• Definition of the resources needed

• Scheduling the activities

• Evaluation of the various risks

Project execution

• Negotiating for the project team members

• Directing and managing the work

• Working with the team members to help them improve

Project monitoring and control

• Tracking progress

• Comparing actual outcome to predicted outcome

• Analyzing variances and impacts

• Making adjustments

Project closure

• Verifying that all of the work has been accomplished

• Contractual closure of the contract

• Financial closure of the charge numbers

• Administrative closure of the paperwork.

These five Process Groups are independent of the application areas, (such as marketing,

information services, or accounting) or industry focus (such as construction, aerospace,

telecommunications). Individual processes in the Process Groups are often iterated prior to

completing a phase or a project. The number of process iterations and interactions between

processes varies based on the needs of the project. Processes generally fall into one of three

categories:

▪ Processes used once or at predefined points in the project. Developing the project

charter and closing the project or phase are examples.

▪ Processes that are performed periodically as needed. Acquiring resources is

performed when resources are needed. Conducting procurements will be performed

prior to needing the procured item.

▪ Processes that are performed continuously throughout the project. Defining activities

may occur throughout the project life cycle, especially when the project uses rolling

wave planning or an adaptive development approach. Many of the monitoring and

control processes are ongoing from the start of the project, until it is closed out.
Process Groups are not project phases. If the project is divided into phases, the processes in the

Process Groups interact within each phase. It is possible that all Process Groups could be

represented within a phase, as illustrated in Figure below.

As projects are separated into distinct phases, such as concept development, feasibility study,

design, prototype, build, or test, etc., processes in each of the Process Groups are repeated as

necessary in each phase until the completion criteria for that phase have been satisfied.

The detailed process group interaction is represented in the figure below.

The important outputs of the process groups are outlined in the table below.
Project Management Knowledge Areas

The knowledge areas are the core technical subject matter, which are necessary for effective

project management. There are 10 knowledge areas that most commonly used in management

of projects.

Project Integration Management

Project Integration Management includes the processes and activities to identify, define,

combine, unify, and coordinate the various processes and project management activities within

the Project Management Process Groups.

Project Scope Management.

Project Scope Management includes the processes required to ensure that the project includes

all the work required, and only the work required, to complete the project successfully.

Project Schedule Management.

Project Schedule Management includes the processes required to manage the timely

completion of the project.

Project Cost Management.

Project Cost Management includes the processes involved in planning, estimating, budgeting,

financing, funding, managing, and controlling costs so the project can be completed within the

approved budget.

Project Quality Management.

Project Quality Management includes the processes for incorporating the organization’s quality

policy regarding planning, managing, and controlling project and product quality requirements,

in order to meet stakeholders’ expectations.

Project Resource Management.

Project Resource Management includes the processes to identify, acquire, and manage the

resources needed for the successful completion of the project.

Project Communications Management.

Project Communications Management includes the processes required to ensure timely and

appropriate planning, collection, creation, distribution, storage, retrieval, management, control,

monitoring, and ultimate disposition of project information.

Project Risk Management.

Project Risk Management includes the processes of conducting risk management planning,

identification, analysis, response planning, response implementation, and monitoring risk on a

project.

Project Procurement Management.

Project Procurement Management includes the processes necessary to purchase or acquire

products, services, or results needed from outside the project team.

Project Stakeholder Management.

Project Stakeholder Management includes the processes required to identify the people, groups,

or organizations that could impact or be impacted by the project, to analyze stakeholder

expectations and their impact on the project, and to develop appropriate management strategies

for effectively engaging stakeholders in project decisions and execution

Apart from the 10 general knowledge areas, there are two more knowledge areas specific to

construction projects as stipulated by the Construction Extension to PMBoK.

Project Health, Safety, Security, and Environmental Management (HSSE)

This knowledge area focuses in construction specific health concerns, safety and security of

construction personnel and the sustainability aspects of construction projects including

environmental management.

Project Financial Management

Project Financial Management covers important aspects and considerations with an

explanation of industry specific documents, tools, and techniques to better understand and

navigate the financial decisions of construction projects.

The interaction of 49 processes that constitute the 5 process groups and the 10 knowledge

areas is represent in the table below.

The diagram below shows the interaction of different process groups with the two additional

knowledge areas specific to construction projects.

Essential Competencies of a Construction Project Manager

Understanding and applying the knowledge, skills, tools, and techniques that are generally

recognized as good practices is not sufficient for effective construction project management.

The role of the project manager in construction requires specialized expertise.

General management skills provide much of the foundation for learning project management

and are essential for the project manager, as well as the associated roles in construction.

However, these skills go beyond internal organizational skills; they extend to other

considerations that influence and interact with the construction project.

Leading.

The construction project manager and the project superintendent are generally expected to be

the project leaders.

Communicating.

Managing the communications and the corresponding documents requires a consistent effort

and a communications plan that covers stakeholders’ needs and their levels of understanding.

Negotiating.

In construction, negotiating occurs around many issues and most often involves the exchange

of money for the performance of services.

Problem Solving.

There is an endless range of situations where this skill is useful.

Apart from general management skills, certain technical skills are necessary to manage and

deliver modern construction projects. They are outlined in the figure below –

Recommended Readings

1. The Project Management Body of Knowledge (PMI)

2. The Construction Extension to the Project Management Body of Knowledge (PMI)

3. Project Management: A Systems Approach to Planning, Scheduling, and Controlling (H.

Kerzner)

4. Construction Project Management – An Integrated Approach (Peter Fewings)

5. Construction Project Management – Theory and Practice (Kumar Neeraj Jha)