Project Management Fundamentals

• Projects are temporary endeavors established to achieve specific outcomes and bring about change.
• Every project is unique and subject to constraints related to time, cost, and quality.
• Achieving a project's outcome requires completing various activities, with resource needs changing as the project progresses.
• Projects require leadership to be successful.

Project Management Challenges

• Project managers often coordinate efforts across geographical distances, language barriers, and differing cultural, legal, and organizational frameworks
• Project constraints include scope, quality, schedule, budget, resources, and risks.

History of Project Management

• The origins of project management lie in World War II with the military's use of operational research for resource optimization.
• In 1961, the US Navy's Polaris program introduced the 'Program Evaluation and Review Technique' (PERT), reportedly saving two years.
• Around the same time, Du Pont described a similar technique known as the 'Critical Path Method.'
• Modern project management techniques developed from the need for rapid results in war and business, where time has significant value.
• Projects existed long before modern techniques; but were not built using project management techniques

Defining Project Management

• Project management involves applying tools and techniques to direct diverse resources to accomplish a unique, complex, one-time task within time, cost, and quality constraints.

Project Manager Roles

• Planner: Requires knowledge of project management techniques, specialist knowledge, overview ability, attention to detail, and people skills.
• Controller: Requires knowledge of project management techniques, specialist knowledge, organizational and data-handling skills, overview ability, attention to detail, flexibility, and creative problem-solving skills.
• Leader: Requires the ability to adopt and apply a range of leadership styles appropriate to the situation.
• Communicator: Requires competence in various communication styles, understanding basic communication principles, and the ability to adapt communication to the audience.

Project Stakeholders

• Stakeholders include project team members and interested entities internal or external to the organization, such as:
  • Sponsors or clients
  • The project team
  • Contractors
  • Suppliers
  • Local pressure groups
  • Any entity with a perceived gain or loss from the project

Project Manager Competencies

• Effective project management requires competencies in knowledge, performance, and personal behavior.

Interpersonal Skills

• Project managers need:
  • Leadership
  • Team building
  • Motivation
  • Communication
  • Influencing
  • Decision making
  • Political and cultural awareness
  • Negotiation
  • Trust building
  • Conflict management
  • Coaching

Project Management Processes

• Project management processes ensure the effective flow of the project throughout its life cycle.
• These processes are grouped into five categories known as Project Management Process Groups These include:
  • Project Integration Management
  • Project Scope Management
  • Project Time Management
  • Project Cost Management
  • Project Quality Management
  • Project Human Resource Management
  • Project Communications Management
  • Project Risk Management
  • Project Procurement Management
  • Project Stakeholder Management

Value Engineering (VE)

• Value engineering evaluates a product/project's design to ensure essential functions are provided at minimal cost.
• VE systematically identifies a project’s functional objectives to optimize design, construction, and future operations by identifying and eliminating unnecessary costs.
• Project value is determined by the relationship of the project's worth to its cost.
• The goal of VE is to deliver required functions at minimum cost while maintaining or improving performance.

Value Engineering Team

• VE studies are conducted by a multidisciplinary team focusing on a clearly defined scope.
• The team includes specialists from various disciplines relevant to the project.
• The owner typically authorizes and initiates the VE effort.
• Team members need a positive attitude, technical knowledge, higher education, professional experience, and relevant certification.

Benefits of Value Engineering

• VE improves project delivery efficiency, refines features, and develops new approaches to meet owner requirements.
• VE focuses on improving the relationship of function, performance, and quality to cost, not just cutting costs.
• Benefits include:
  • Reduced construction cost
  • Improved project schedule
  • Simplified procedures
  • Increased procurement efficiency
  • More effective resource use
  • Decreased operation and maintenance cost

Value Engineering Approach

• The VE approach involves brainstorming questions to identify and eliminate unnecessary design features or parts, reduce weight, or eliminate non-standard parts.
• Successful VE relies on asking critical questions and seeking creative answers.

Brainstorming

• Classical brainstorming involves generating original ideas based on deferring judgment and emphasizing quantity.
• Rules for brainstorming:
  • No criticism
  • Freewheeling is encouraged
  • Quantity is desired
  • Contribution and improvement are sought
  • Avoid evaluation
• Brainstorming steps:
  • Preparation
  • Brainstorming
  • Evaluation
• Brainstorming groups typically consist of four to seven people.
• VE studies benefit project quality most in the early stages, where there is more potential for cost savings.
• VE has become an aid to owners in formulating goals and objectives before design work begins.
• VE studies for construction projects are conducted at various project stages, including:
  • Conclusion of concept design or facilities planning
  • 30% design completion (preliminary design)
  • 60% design completion
  • 90% or 100% design completion (detail design)

Contract Documents

• Contract documents consist of drawings (defining quantity) and the project manual (defining quality).

Standard Conditions of Contract

• Standard forms are prepared by professional bodies and organizations representing contractors or by large organizations and public bodies to suit their own circumstances.
• Standard forms aim to achieve a common approach and standard interpretations of risks and responsibilities.
• Common standard forms include:
  • Institute of Civil Engineering (ICE) Conditions of Contract
  • Federation Internationale Des Ingenieure-Conseils (FIDIC).

Contract Types

• The owner determines which contract type to use based on the project and risk tolerance.
• The construction manager needs to be familiar with each type.
• Four basic types:
  • Lump sum
  • Cost-plus-fee
  • Guaranteed maximum price
  • Unit cost

Lump-Sum Contracts

• Contractor agrees to complete work for a single fixed amount.
• Most common type, especially for building construction.

Cost-Plus-Fee Contracts

• Owner reimburses the contractor for actual costs plus a fixed fee or percentage of cost.

Guaranteed Maximum Price Contracts

• Offers a firm cap on overall price while stipulating that the owner pays only actual costs plus a fee.

Unit-Price Contracts

• Used when the work cannot be accurately measured ahead of time.
• Common for heavy civil and highway projects.

Requests for Information (RFI)

• Written request for clarification on plans or specs (usually from subcontractors to the architect).

Submittals

• Data, samples, details, colors, and product literature presented to the architect for approval before ordering and installation.

Shop Drawing

• Supplemental drawing detailing fabrication methods, materials, and models.

Payment Request Process

• Involves assembling:
  • Schedule of values
  • Pay request continuation sheet
  • Application for payment

Change Order Process

• Written order from the architect or owner is required before executing extra work.

Construction Claims

• Claims typically result from:
  • Disagreements regarding contract terms
  • Defective contract documents
  • Denied change orders
  • Denied time extensions
  • Differing site conditions