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Basics of Construction Project Management March 5, 2015

BASICS of CONSTRUCTION
PROJECT MANAGEMENT
March 5, 2015

Outline
• 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
Project
• Key Success Factors of a Construction Project
• Common Issues in Construction Projects
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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
Company
• Project Manager practitioner for 5 years and more than 13 years in the IT
industry focused on Pharmaceutical, Manufacturing, and Construction
domains
• 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

Overview
• 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.”
– PMBOK

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
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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

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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


Company
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
Telecoms
& 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

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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
environments
• Plans and methods are tailor-fit to each project
• Work packages performed by different project teams

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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,


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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


Project
Opportunity Project
Business Development Initiation & Project Closure
Management Execution
Planning

• 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
customer
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
(accomplishments,
• Obtain Customer trending reports) & and Administrative
sign-off Forecasting / Look- Closure
ahead planning

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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
systems
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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
information
• 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
areas
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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
damage
• 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
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Reference: Optima P3 Management, Inc. (OP3M)

Typical Project Organization


Project Director

Quality Head

QA, QC, Safety,


Security,
Environment

Construction
Project Support Project Manager
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

Resource
Equipment
Coordinator
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Facilitator : Ramon R. Navarro III, PMP 8


Basics of Construction Project Management March 5, 2015

Example WBS – Construction Project

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Typical WBS of a Construction Project


PROJECT

Project Project
Management Execution

Procurement
Facility 1 Facility 2
Work Packages

Quality Structural Structural

Safety &
Electrical Electrical
Environment

HR / Resource
Requirement Civil Civil
Plan

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
management

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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

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Facilitator : Ramon R. Navarro III, PMP 10


Basics of Construction Project Management March 5, 2015

Questions?

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End of Presentation.
THANK YOU!

Contact: Ramon Navarro III, PMP


0917.7234148 / 0998.9647769
mhon_navarro@yahoo.com
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Facilitator : Ramon R. Navarro III, PMP 11