Project Organization PDF

Prepared by ENGR. JELENNY PINEDA- NAVARRO, MEM,ME-1  CONSTRUCTION COMPANY A construction company can be defined as a group of people sharing specialized knowledge to design, estimate, bid, purchase and obtain resources to complete a construction project. Common functions of Constructio...

Prepared by ENGR. JELENNY PINEDA- NAVARRO, MEM,ME-1  CONSTRUCTION COMPANY A construction company can be defined as a group of people sharing specialized knowledge to design, estimate, bid, purchase and obtain resources to complete a construction project. Common functions of Construction Company 1. General administration 2. Managing contracts and personnel 3. Estimating 4. Design 5. Engineering 6. Purchasing 7. Accounting 8. Management of field construction  The broad aim of an organization is two fold 1. To divide responsibility according to the technical knowledge. 2. To divide responsibility by executing ability. As per Kenzer (2004),  Authority is the power granted to individuals by their positions, so that they can make final decisions for others to follow. Responsibility is the obligation incurred by individuals in their rules in the organization in order to effectively perform assignment. Accountability is the state of being totally answerable for the satisfactory completion of a specific assignment.  ORGANIZATION Organization is defined as the arrangement of the persons in any business so that they act as one body and work together towards a common goal. It is a process of defining and fixing the responsibilities of those persons who are associated with the organization and coordinating the relationship of one with another.  Organization is thus a human association for the attainment of common objectives which may be social, political or economic. The achievement of the organization would depend upon the efficient setup of organization. Inefficient economic organization of an enterprise would lead to losses and ultimately to winding up of the enterprise. The efficient functioning of the organization is possible when: Competent and right types of persons are selected and placed in the right place. Every member of the organization knows the goal of organization. Every member of the organization knows his duties and responsibilities in achieving the common goal.  Every member is delegated authority and power adequate enough to enable him to take the decisions for discharge of his responsibilities. There is proper co-ordination among different members, departments.  Characteristics of Good Organization It must have an organizational goal. It must have setup of persons in-charge of different branches of organization. It must specify the functions and activities of every individual of the organization. Duties, powers and responsibilities of each individual should be clearly defined.  There should be higher up authority to direct and co-ordinate activities of different individuals, branches of the organization. It should have proper structure. It should include all the activities and no activity should be repeated. It should be flexible with the changing situation. There should be resources for the existence and survival of the organization.  It should have place of work and well defined jurisdiction. it should give satisfaction to the employees and should boost their moral.  Functions of Organization Long term planning To prepare structure of organization. To maintain good relations with the government. To prepare wage policy. Co-ordination of various departments and their control. To monitor various activities and progress. To fulfill management aims and development of management.  To establish good relations between workers and the management.  Principles of Organization Unity of command Ultimate authority and Span of management responsibility Delegation of authority Continuity of activity Unity of job assignment Flexibility and stability Division of work Motivation and professional growth Job definition Contact  STRUCTURE OF CONSTRUCTION ORGANIZATION The organizational structure indicates the arrangement of different departments and the division of labour. It refers to the organizational and administrative patterns. 16  It is about how to use one of the basic resources, people and how to facilitate overcoming of the communication barriers at organizational interfaces. The organization for a construction firm has to be developed taking into account the general principles of organization and the special characteristic of the construction industry. CECM 0323 17  It is difficult to lay down specific rules for organizing the structure of a construction company. Any organizational structure proposed for a construction firm should take into consideration the nature of activities, scope and type of project work and the areas of operations of the company. 18  STRUCTURE OF CONSTRUCTION ORGANIZATION… The type of organization suitable for a small construction firm is a simple line organization / line and staff organization. The engineer in charge at the site exercises full authority and is responsible for the execution and progress of work. In very small works such as construction of a private residential house, the contractor has to perform himself the functions of the engineer. CECM 0323 19  In the case of medium to large sized construction companies a line and staff type of organization is preferred. 20  Management Levels Management level can be defined as a position in management that is differentiable in terms of power, authority, responsibility and accountability over resources required to achieve defined objectives. Five Management Levels – Director level CECM 0323 21 – President level – Construction management level – Project management level – Functional management level 22 1. Director level The different functions at this level are: a. Setting plans b. Formulating objectives c. Deciding among different courses of action d. Company’s financial status e. Competitive information f.Environmental information CECM 0323 23 2. President level The primary functions at this level are acquiring business and formulating the company’s immediate objective, in line with the board’s plans and strategies. This level requires a much more detailed information regarding competition, environment and financial status. It also requires progress reports that summarize for each project its status, current and future cost 24  and schedule performance and problems with management actions underway to resolve them. 3. Construction Management level The main functions at this level are obtaining and monitoring work for the company at the district / divisional level. This level requires summary formats of the three basic types of information. i.e. environmental, competitive and internal. CECM 0323 25  It also requires summary format of information on general progress, financial status, purchase status and engineering status on each project under their jurisdiction. 4.Project Management level 26  The main functions of this level are: a. Managing the day to day operations of all aspects of a project. b. Watching closely the development of the project as a group. c. This level also requires summary formats of the three basic types of information. i.e. environmental, competitive and internal. d. It also requires field costs, detail construction schedules, list of critical and non-critical items in CECM 0323 27 the network, detailed predication of future accomplishments, current working estimates, cash flow summaries, etc. 28  § Project Manager Present day construction projects are becoming more complex and costly as compared to previous times. This complex nature places a heavy demand on the management skill of those involved in every phase of the management of construction work. The terms ‘Project Manager’ are used quite interchangeably. CECM 0323 29  The project manager is a person formally appointed to manage a project with scientific accountability for achieving defined project objectives with allocated resources. A project manager has access to and a formally defined relationship with the project leader to whom the specific project has been assigned. 30 Responsibilities of construction manager 1. Planning – Formulating of a number of alternative realistic work plans, it also lays down how a project will be carried out, what materials will be used, what men and staff will be employed, what equipment will be utilized etc. 2. Directing – Training subordinates to carry out assigned tasks, supervising their work, and guiding their efforts. 3. Organizing – Division of total construction work into manageable departments and CECM 0323 31  systematically arranging various activities by delegating specific tasks to individuals. 4. Controlling – Measurement of actual performance in terms of progress, quality and cost. Comparison of actual and planned performance. Analysis of short fall in performance and remedial measures. 5. Coordination – To coordinate the work of various department and sections. Regular meeting with sections heads. 32 In short, Responsibilities of construction manager… Developing bid proposal Establishing project organization and staffing Provide overall leadership to the project team Profit generation and new business development Schedules and budgets Assisting in determining technical and man power requirements. Coordinating and integrating of sub system tasks CECM 0323 33 Qualities of a Project Manager The construction manager is a person who by optimum use of available resources like money, manpower, materials and machinery, by motivating the persons associated with the project, by co-ordinating various project agencies, fulfill the project objectives in minimum time with minimum cost and with good quality. 34  Good character Integrity – to consider all the persons related to the project as a ‘construction team’. Devotion to duty Hard working Leadership Knowledge of construction Open-Mindedness – An approach where one is always open to new ideas, practices and methods. CECM 0323 35  Common sense – strong ability to spot sensible, effective, straight forward, least risky solutions. Attitude – open, positive and ‘can do’ attitude which encourages communications, motivations and fosters co-operation. Fairness – This refers to a fair and open attitude which respects all human values. Absence of parochialism. 36 Traits of a Project Manager Technical skills Specialized knowledge in the use of tools and techniques Project knowledge Understanding methods Procedures and process Understanding the technology required Skill in the use of computer CECM 0323 37 Conceptual skills Planning Organizing Strong goal orientation Ability to see the project as a whole Ability to visualize the relationship of the individual project to the industry and the community Strong problem orientation 38 Human skills Mobilization Communication Coping with situations Delegation of authority Political sensitivity High self esteem Enthusiasm Capability to motivate and integrate his team 39 Adaptability This refers to propensity to be flexible where necessary and avoid rigid patterns of thinking and to adapt to the requirement of the project, the needs of the sponsors, its environment and people working on it. He should be adapt to change. Inventiveness This refers to an ability to discover innovations strategies and solutions either from within one self or through interaction with other members of the 40 project team and to identify ways of working with disparate resources to achieve the project objectiv 41 42  Factors for Success of a Construction Organization The construction industry is characterized as having low entry barriers. Hence, every year more and more construction industries are entering in the construction business. The success of a construction project does not mean the success of the construction organization. 43  Causes of Project Failure For successful completion of a project four basis resources (4-M) required are: – Manpower – Money – Materials – Machinery 44  In addition to this planning, organizing, directing, controlling and co-ordinating are also the key elements for the success of a project. The followings are the causes of failure of a project: 1. Improper planning of a project 2. Defect in the survey carried out before implementation of a project 3. Excessive increase in the project cost 45 4. Sudden increase in materials and labour rates in the market 5. Defective structural design 6. Poor quality of construction at site 7. Use of inferior quality of construction materials 8. Lack of technical skill of supervisors / engineers 9. Inexperienced contractor. 46 10. Insufficient finance with the contractor 11. Insufficient plants, equipment, and manpower 12. Poor relations among owner, engineer and labours 13. Lack of coordination between various departments like administrative, engineering, account, materials store etc. 47 14. Inadequate water, electricity and approach road 15. Change in government policies / laws 16. Lack of planning for maintenance after completion of the project. 48 THANK YOU 49