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Basics of Construction Project Management March 5, 2015

March 5, 2015

• What is a project?
• What is a construction project?
• Program & Project Portfolio
• Characteristics of a Construction Project
• Project Life Cycle
• Areas to Manage in Construction Project
• Comparison of Construction Project to Operations
• What is a typical Work Breakdown Structure of a Construction
• Key Success Factors of a Construction Project
• Common Issues in Construction Projects

Facilitator : Ramon R. Navarro III, PMP 1

Basics of Construction Project Management March 5, 2015

Speaker Profile
• A certified Project Management Professional (PMP)
• Completed a Diploma in Project Management
• Currently the Head, ICT Delivery & Program Management of a EPC
• Project Manager practitioner for 5 years and more than 13 years in the IT
industry focused on Pharmaceutical, Manufacturing, and Construction
• Experienced in Software Development Lifecycle (SDLC), systems
implementation and Integration
• Implemented enterprise systems such as SAP ERP, HCM, Primavera P6
EPPM, CRM, DMS, etc.
• Conducts various trainings - Project Management Trainings (Fundamentals,
PMP Review, Basic scheduling, etc.), Basic Programming, SQL Programming
• Active Member of PMI Philippines Chapter 3

• In the context of this discussion, Construction Project
Management can be described as:

“The art and science of coordinating people, equipment,

materials, money and schedules to complete a specified project
on time and within an approved cost.”

Facilitator : Ramon R. Navarro III, PMP 2

Basics of Construction Project Management March 5, 2015

What is a PROJECT?
“A Project is a temporary endeavor undertaken to create a
unique product, service or result.”

Project is a work or undertaking

with a planned beginning and end
to produce a distinctive outcome
such as a product, service or result
intended to satisfy specific
requirements or higher purposes
- OP3M
Reference: Optima P3 Management, Inc. (OP3M)

What is a Construction Project?

A Construction Project is a type of

project undertaken in unique, physical
and complex environments under
defined timelines, often under contract,
to build a unique and tangible product
called a “Facility” that will produce the
intended product or service of the
“mother” project or to serve the
purpose of a higher project.
- OP3M

Reference: Optima P3 Management, Inc. (OP3M)

Facilitator : Ramon R. Navarro III, PMP 3

Basics of Construction Project Management March 5, 2015

Construction Project Management

• Principal objective of a project manager (construction
manager) is to complete each project on time and within
budget, while maintaining acceptable levels of quality, safety
and risk.
• Optimize the three attributes: Quality, Cost, and Time;

Program and Project Portfolio

Portfolio “related or unrelated
projects &/or programs -- managed to
meet strategic business objectives” Project Dev. & Project
Eng’g Execution

Program “related projects managed

and coordinated to optimize benefits Project D Business Units
and improve control compared to
managing the projects individually”
Transmission Power
& Substation Generation
Project Management Office (PMO)
“is a group or department within a
business, or enterprise that defines Project A Project C
and maintains standards for project
management within the organization”
Project B

Intro to Construction Project Management - Optima P3 Management, Inc.

Facilitator : Ramon R. Navarro III, PMP 4

Basics of Construction Project Management March 5, 2015

Characteristics of a Construction Project

• A Temporary Work
• A defined or dictated start and completion dates
• Tasks or activities may be standard or repetitive
• Large workforce and resources
• Project-specific assignments and duties and authority
• Produces a Distinctive Outcome
• Outcome is a tangible product – a unique “facility”
• Specific deliverables and unique configuration built in unique
• Plans and methods are tailor-fit to each project
• Work packages performed by different project teams

Reference: Optima P3 Management, Inc. (OP3M)

Characteristics of a Construction Project

• For Specific Requirements or Higher Purpose
• Project output, e.g. power plant, produces the desired product,
services or output of the “real” project, e.g. electricity
• On-budget and timely completion of scope are of the essence to fit
‘window of opportunity”
• Impact or benefit may be realized long after completion1
• Progressively Elaborated
• Requirements, plans and baselines continuously evolve, refined,
detailed and updated from concept to close
• Characterized by periodic or unplanned changes to baselines, plans,
and systems

1A Guide to the Project Management Body of Knowledge, Fourth Edition,

Project Management Institute, Inc. 2008, p.5

Facilitator : Ramon R. Navarro III, PMP 5

Basics of Construction Project Management March 5, 2015

Project Life Cycle

Opportunity Project
Business Development Initiation & Project Closure
Management Execution

• Identification, • Identification of • Assignment of Project • Site Mobilization and • Verify completion and
selection of projects to Manager Execution of Site acceptability of all
projects/programs as participate • Perform the Scope activities deliverables
per Sales Pipeline • Bidding and proposal Assessment, Team • L4/L5 detailing
• Alignment with schedule / Look- • Turn over project to
participation (Pre-Bid assignment, Work the next phase or to
corporate strategic meetings, Bid package ahead plan and
plans Conference, Site Visit creation/updating, resource allocation
• Building of new and Inspections, etc.) prepare other • Prepare and submit • Secure formal
customer lines • Estimating, Detailed subsidiary plans PR, PR Approval, PR to acceptance of the
• Retention activities for Engineering, BOQ, (Procurement, PO Process project’s product
current customers • Bid Results, Win Loss Quality, etc.) • Perform support
activities (QA, QC, • Closing all
Analysis • Finalize project plan
Safety, Security Procurements and
• Hand-over to Project and schedule.
inspections) Contracts
Execution group • Schedule and Cost
• Progress reporting
baseline creation • Performing Financial
• Obtain Customer trending reports) & and Administrative
sign-off Forecasting / Look- Closure
ahead planning


Operations vs. Projects

Operations Project
 On-going, don’t want to end, with  A beginning and end, with unique outputs
repetitive outputs

 Performed by people who efficiently use  People and resources sourced through
resources operations

 If operational objectives are not met, new  Ends whether project objectives are met
directions are set or not

 Managers perform Planning, Organizing,  Managers perform additional Initiating

Leading and Controlling functions and Closing functions

 Uses operations management systems  Uses project management systems in

and processes conjunction with operations management

Facilitator : Ramon R. Navarro III, PMP 6

Basics of Construction Project Management March 5, 2015

Areas to Manage in a Project

• Scope Management
• Define and control what is and what is not included
• Quality Management
• Plan, ensure and control quality and acceptance
• Human Resource Management
• Plan, organize, manage, develop the project team
• Procurement Management
• Outsource resources and deliverables
• Time Management
• Define and sequence activities, estimate resources and
durations, develop schedule and manage completion
• Cost Management
• Estimate, budget and control project costs 13
Reference: Optima P3 Management, Inc. (OP3M)

Areas to Manage in a Project

• Risk Management
• Identify and analyze uncertainties and impacts, prepare responses
and monitor risk occurrence
• Communications Management
• Generate, collect, distribute, store, retrieve, and dispose project
• Stakeholder Management
• Identify and analyze stakeholder needs to effectively engage them in
project decisions and execution
Integration Management
• Combine, unify and coordinate all project processes of the different
Reference: Optima P3 Management, Inc. (OP3M)

Facilitator : Ramon R. Navarro III, PMP 7

Basics of Construction Project Management March 5, 2015

Additional 4 Areas to Manage in a

Construction Project
• Safety
• Assure that construction project is executed with proper care to
prevent accidents that may cause personal injury and/or property
• Environment
• Ensure that impact of project execution to surrounding environment
will be within legal limits
• Financial
• Acquire and manage financial resources and cash flow
• Claim and Dispute
• Eliminate or prevent construction claims from arising and for the
expeditious handling when they occur
Reference: Optima P3 Management, Inc. (OP3M)

Typical Project Organization

Project Director

Quality Head

QA, QC, Safety,


Project Support Project Manager

PMO Procurement Finance HR Admin IT Admin Engineering Planner/Scheduler Site Supervisors

Contract Admin Purchasing Project Accountant Recruitment Project Controls Site Resources

Materials Document
HR Coordinator
Management Controller


Facilitator : Ramon R. Navarro III, PMP 8

Basics of Construction Project Management March 5, 2015

Example WBS – Construction Project


Typical WBS of a Construction Project


Project Project
Management Execution

Facility 1 Facility 2
Work Packages

Quality Structural Structural

Safety &
Electrical Electrical

HR / Resource
Requirement Civil Civil

Integration to
Overall Project
Execution Plan 18

Facilitator : Ramon R. Navarro III, PMP 9

Basics of Construction Project Management March 5, 2015

Key Success Factors

• Established Bidding and Estimation Process
• Project Management Office
• Resource Management
• Project Planning and Scheduling
• Well defined Project Organization
• Document Management System
• Project, Cost and Progress Monitoring and Tracking
• Good Project Closure Activities
• Solid Contract Administration which includes variation


Common Issues/Problems of
Construction Projects
• Lack of Integrated Process
• Squandered resources
• Lack of transparency & Cost Control
• Inconsistent delivery & project quality
• No Single System to manage bidding to close out
• Reactive approach
• Low Accountability & Predictability on Risks


Facilitator : Ramon R. Navarro III, PMP 10

Basics of Construction Project Management March 5, 2015



End of Presentation.

Contact: Ramon Navarro III, PMP

0917.7234148 / 0998.9647769

Facilitator : Ramon R. Navarro III, PMP 11