1. BUSINESS ECONOMICS AND ENTREPRENEURSHIP Aleš Tomek Hal Johnston

2. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes 2 List of Lessons 1.Emerging Trends AT & HJ 2.Business Strategies AT & HJ 3.Financial Management AT & HJ 4.Risk Management AT & HJ 5.Project Management AT & HJ 6.Advanced Systems AT & HJ 7.Standard Contracts AT & HJ 8.Cash Flow Planning AT & HJ 9.Sustainability Concepts AT & HJ 10.Summary AT & HJ

3. Topic for Today Project Management Hal Johnston Faculty of Civil Engineering Department of Economics and Management Czech Technical University in Prague

4. Project Management for Superior Performance Part 1 - Introduction Czech Technical University in Prague

5. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Objectives Today we will present the following: –Reasons for a different type of management for project-based firms –Attributes of construction projects requiring special management techniques –Goals and objectives of construction projects –Management techniques that can be used to successfully meet the goals and objectives of construction projects

6. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Introduction to Project Management Management is a discipline –Large, broad-based field Project management –Management of several projects Separate entities –Finite time frame Associated with completion date –Primary purpose: to achieve project goals

7. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Attributes of Construction Projects Include: –Specific parameters (e.g., budget) –Finite durations –Located away from company –Each project requires separate management –Single source of responsibility –Separate cost accounting element

8. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Attributes of Construction Projects (cont’d.) –Single project can have thousands of parts, systems, and equipment –Substantial purchases may be required –Substantial subcontracting is used –Construction companies have numerous projects at the same time –Single owner or customer –Each site is controlled by the contractor

9. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Goals and Objectives of Construction Projects Project goals –Example: successful and profitable Objectives –Definable tasks that support goals Time frame and level of quality Cost control and safety program effectiveness Customer satisfaction Effective management of subcontractors

10. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Management Techniques to Achieve Project Goals and Objectives Management techniques –Necessary to control project building In order to achieve objectives –Wide variety –Takes a team to design and build facilities Managers control all variables

11. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Organization of the Project Delivery System Needs to be cost-effective –Personnel varies according to project Project duration, size, and contract type Amount of self-performed work Personnel available and crew size Multiple areas of work and contracts Reporting requirements to the customer Extent of cost control and reporting required Public versus private work and market

12. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Leadership Attributes: –Vision of entire project –Plans for achieving completed project –Insistence of meeting financial goals –Understand crews and provide motivation –Communication –Maintain relationships with upper management –Critical decision timing –Company loyalty

13. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Problem Solving Considerations: –Full impact on subcontractors, suppliers, and contractor –Cost impact –Time impact –Best solution for project conditions –Best method of resolving conflicts

14. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Reporting and Record Keeping Provides: –Communication between field and home office –Communication with client and consultants –Systematic and regular analysis of current conditions by field personnel –Historical record for project documentation

15. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Planning and Scheduling Enables completion on a finite date –Plan: organizes the project –Schedule: tool for communicating the plan Flexible –Can be modified to changing conditions Initial planning: project management basis Continual planning and scheduling: addresses conditions that arise

16. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Cost Control Containing construction costs –Within budget established by cost estimate Involves use of comparison –May indicate a need to change methods, techniques, or crew composition Can help achieve additional profits Ensures accurate cost database

17. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Flow of Cost Information Delmar/Cengage Learning

18. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Quality Management Has become an important part of project management’s tasks –Quality has several meanings Meeting expected level of material Maintaining the level of workmanship Earning general customer satisfaction

19. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Safety Management Proactive safety management program –Economic benefits Workers’ compensation premiums Insurance premiums –Tied to company-wide performance record –Goal: prevent all jobsite accidents

20. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Contract Compliance Submittals include: –Material and permanent equipment submittals –Shop drawings –Project meetings –Change control, documentation, and compensation –Progress payments and project closeout

21. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Computerized Record Keeping Helps compile, organize, and analyze project progress information –Time, cost, and project data recorded on the jobsite Timely production of quality, usable information Facilitates problem solving and communication during the project

22. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Summary Construction organizations: –Rely on project management to manage profit centers Goals of a construction project: –To be successful and profitable Variety of techniques used

23. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes 23 End of Part 1 of topics Questions?

24. Project Management for Superior Performance Part 2 - The Project Team Czech Technical University in Prague

25. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Objectives Part 2 will introduce the following: –Traditional delivery system and the relative roles within that system –Roles and responsibilities of the participants in the traditional system for the owner, architect, and contractor –Construction management form of the construction delivery system and the relationships of the roles within that system –Design-build delivery system with examples of the roles and responsibilities within that system

26. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Roles, Responsibilities, and Authority of Project Participants Delivery systems –Provide a matrix of organization Formal and informal contractual relationships between participants Standard contractual forms are available for each delivery system –Professional and trade associations Produce and endorse contractual agreements

27. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes The Traditional Contract Project Delivery System Referred to as “design-bid-build” –Primary contractual parties: Owner, architect, and contractor –Neither the architect nor the contractor does 100% of the work assigned Each makes an agreement with others involved to accomplish specific areas of work

28. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes The Traditional Construction Delivery System Delmar/Cengage Learning

29. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes The Traditional Contract Project Delivery System (cont’d.) Methods of compensation: –Lump-sum contract –Cost, plus a fee –Cost plus, with guaranteed maximum price –Unit price contract

30. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Responsibilities of the Contractual Parties Owner: –Paying for the work and project coordination –Site, scope, and documents Architect: –Project design and construction documents Contractor: –Labor, material, equipment, expertise, and means to complete the project

31. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes The Owner’s Roles During the Construction Phase The Owner’s Organization for the Construction Project Delmar/Cengage Learning

32. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes The Architect’s Roles During the Construction Phase Architect’s Organization Delmar/Cengage Learning

33. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes The Contractor’s Roles During the Construction Phase Contractor’s Project Organization Delmar/Cengage Learning

34. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Contractor’s Project Organization, Project Manager, and Superintendent Parallel Delmar/Cengage Learning

35. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Other Roles in the Construction Process Significant roles played by other entities –Majority are regulatory agencies List of Typical Inspections Delmar/Cengage Learning

36. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Communications in the Traditional System Communication Matrix, Traditional System Delmar/Cengage Learning

37. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes The Construction Management Delivery System Contractor-based management systems –Applied early in the project Provides more tools and controls Forms of CM: –Agency CM –CM-at-Risk, CM/GC, Multiple Prime, or Guaranteed Maximum Price (GMP)-CM

38. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Organization of the CM Delivery System (Agency CM) Delmar/Cengage Learning

39. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Roles of the CM Project Team Construction Management Roles Delmar/Cengage Learning

40. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Communications in the CM Delivery System Communications in the Construction Management System Delmar/Cengage Learning

41. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes The Design-Build Delivery System Single-source procurement –Design and construction provided for GMP “Cost not to exceed” price Often includes a cost-savings split clause –Design-build firm Facilitator for designers and constructors

42. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Design-Build Organization I Delmar/Cengage Learning Design-Build Organization II Delmar/Cengage Learning

43. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Design-Build Organization III Delmar/Cengage Learning Design-Build Organization IV Delmar/Cengage Learning

44. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Communications in the Design- Build Delivery System Design-Build Communications Delmar/Cengage Learning

45. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Engineering-Procurement- Construction Referred to as E-P-C –Common for heavy construction facilities Industrial plants, power plants, refineries, etc. E-P-C firm provides: –Engineering –All materials and equipment –Construction

46. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes Summary Primary construction delivery systems: –Traditional system (i.e., design-bid-build) –CM system –Design-build system Each system is effective in certain situations –Project communications vary

47. European Erasmus Mundus Master Course Sustainable Constructions under Natural Hazards and Catastrophic Events Introduction Properties Thermal Mechanical Transfer of heat Unprotected Protected Elemental analyses Classification Beams Columns Critical temp. Summary Worked example Notes 47 End of part 2 - topic Questions?