PROJECT ORGANIZATION (Refer to Chapter 3)

What is Project Management? Knowledge of modern management Understanding of the design and construction process Required time frame for completion Art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost time quality

Ingredients of PM The basic ingredients for a project management framework A working knowledge of general management and familiarity with the special knowledge domain related to the project are indispensable. Supporting disciplines such as computer science and decision science may also play an important role. Modern management practices and various special knowledge domains have absorbed various techniques or tools which were once identified only with the supporting disciplines. computer-based information systems decision support systems linear programming network analysis

Basic Ingredients of Project Management

Functions of PM for Construction Specification of project objectives and plans including delineation of scope, budgeting, scheduling, setting performance requirements, and selecting project participants. Maximization of efficient resource utilization through procurement of labor, materials and equipment according to the prescribed schedule and plan. Implementation of various operations through proper coordination and control of planning, design, estimating, contracting and construction in the entire process. Development of effective communications and mechanisms for resolving conflicts among the various participants.

Ability to Influence Construction Cost Over Time

Economy of scale: long range average costs

Market demand and total cost relationship Economy of scale Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls. Market demand and total cost relationship

Building size and labor input

Organization Design companies Project Manager Clerk of works Person in overall charge Clerk of works Person designated for design of the project Job captain Provides coordination among different personnel involved with the project

Organization Construction companies Construction project manager Person in overall charge Superintendent Coordinating subcontractors, flow of workers, material procurement, equipment supply Ensuring adherence to schedule Field engineer Handling construction documents Providing technical support a love for construction  a strong work ethic  the ability to work with people  Initiative (seeking responsibility)  aptitude for applying science and engineering methods to solve new problems  good communications skills (verbal, writing)  interest in continuing to learn

Work Breakdown Structure A fundamental project management technique for defining and organizing the total scope of a project, using a hierarchical tree structure. A set of planned outcomes that collectively and exclusively represent 100% of the project scope. Describes planned outcomes instead of planned actions. Actions comprise the project plan and may be difficult to predict accurately. A well-designed WBS makes it easy to assign any project activity to one and only one terminal element of the WBS.

Work Breakdown Structure

Work flow A defined series if tasks within an organization to produce a final outcome. Pooled Sequential Reciprocal

Authority and Responsibility Allocation from top to bottom Establish chain of command Assign authority/responsibility Assess benefits of a hierarchical structure

Matrix Organizational Structure Horizontal links (gang planks) between working levels of departments Sometimes need to be formalized and directed by the PM

Forms of Organizations Sole Proprietorship A business structure in which an individual and the company are considered a single entity for tax and liability purposes. A sole proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company, but reports business income or losses on individual income tax return. The owner is inseparable from the sole proprietorship. Partnership A type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts. Corporation The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern.

Leadership Flexibility Moral building Order and discipline Collective loyalty (esprit de corps) Order and discipline Goals and accountability Mentoring Communication