LECTURE 10

PROJECT MANAGEMENT PROCESS

ENGR. SOHAIL AHMED
Email: sohail.rao@hotmail.com
 CONSTRUCTION PROJECT

• Unique nature
• Uncertainty involve
• Division in phases for management control
• Collection of phases is called Project life cycle
 PROJECT PHASES
Characteristics
• Deliverable: A deliverable is a tangible, verifiable work
product such as a feasibility study, a detail design, or a
working prototype. Each project phase is marked by
completion of one or more deliverables. The phase typically
takes its name from these deliverables: feasibility, design,
construction, and others, as appropriate.
• Phase End Reviews: The conclusion of a phase is generally
marked by a review of both key deliverables and project
performance to date so as to determine if the project
should continue into its next phase, and to detect and
correct errors cost effectively. These phase-end reviews are
called phase exits.
PROJECT LIFE CYCLE (Overview)
 PROJECT LIFE CYCLE

Phases
• Concept and Feasibility Studies
• Engineering and Design
• Procurement
• Construction (Execution)
• Start-up
• Operation and Utilization
 PROJECT LIFE CYCLE
Phase 1: Concept and Feasibility Studies
1. Initiation:
– Client/ owner develops an idea and discusses it with the concerned personnel
– Owner hires key consultants (may include designer, technical consultants and
construction manager)
2. Process:
– Project Formulation (conceiving and documenting the concept into a project) – major
actor is client
– Feasibility Studies (checking the viability of the project)
• Need Analysis (Recognition of the need of facility / project)
• Requirement Analysis (specific parameters required to fulfil need) Conceptual
Analysis (Feasible Location, Size, Investment)
• Technical Analysis (Technical requirements including nature of skill, equipment,
material, technology and methods needed)
• Economic feasibility (Benefits must be greater than cost)
• Environmental Impact Assessment (EIA) (including Environmental, Political, Social,
Cultural, Community, Demographic Aspects)
– Conceptual Estimate
– Preliminary Program
3. End Deliverables:
– Feasibility Report, Preliminary Estimate and Program
– Go/ No-Go Decision Client
 PROJECT LIFE CYCLE
Phase 2: Engineering and design
1. Initiation:
– Go Decision  By client
2. Process:
– Preliminary Engineering and Design – almost 30%
• Investigation and Evaluation of Design Alternatives
• Comparative Economic Studies
• Budgeting Estimate
• Value Engineering (for fast track projects)
• Breakup of Project in Work Packages (for fast track projects)
• Master Schedule for Work Packages (fast track)
– Detailed Engineering and Design (Architectural, Structural, Electrical, Mechanical, HVAC,
Interior, etc.)
• Finalization of Design Systems
• Breaking Down, Analyzing and Designing the Systems and its Elements so that it
complies with Standards of Safety and Performance
• Systems Estimate
3. End Deliverables:
– Drawings and specification
 PROJECT LIFE CYCLE
Phase 3: Procurement
1. Initiation:
– Drawings and Specifications
2. Process:
– Bid Procurement
• Analysis and Selection of Contractors for Prequalification
• Contract Documentation
• Tender Floating
• Fair Cost Estimate
• Value Engineering (for fast track projects)
• Analysis and Recommendation of Contractors for Award
• Contract Terms and Conditions
• Contract Agreement and Award
– Resource Procurement
• Obtaining Materials
• Obtaining Equipment
• Obtaining Skill Procuring necessary Permits
3. End Deliverables:
– Award of contract
 PROJECT LIFE CYCLE
Phase 4: Construction
1. Initiation:
– Award of contract
2. Process:
– Construction Plan Development and Approval
– Site Setup
– Mobilization
– Organization and Coordination of all Resources (labor, equipment, permanent and
temporary materials, supplies and utilities, money, technology and methods, and
time)
– Preliminary site works
– Civil, MEP, HVAC works
– Value Engineering (for fast track projects)
– Initial Testing of Facility
3. End Deliverables:
– Project handover to client/Owner
 PROJECT LIFE CYCLE
Phase 5: Start up
1. Initiation:
– Project handover
2. Process:
– Testing, Adjusting and Correcting (to make sure that all Project
Components function well together as a total system)
– Warranty Period - Repair and Maintenance within Designer’s and
Contractor’s Warrantee period (a period wherein the designer and
contractor can be called back to correct problems that were not
immediately evident upon initial testing and to make suitable
adjustments. At the end of Warrantee Period, Retention money is
returned to designer/ contractor)
– Initial Capital Turnover
3. End Deliverables:
– Fully Operation Utilization
 PROJECT LIFE CYCLE
Phase 6: Operation and Utilization
1. Initiation:
– End of start up period
2. Process:
– Operational Utilization
– Capital Turnover
– Regular Periodic Maintenance
– Alterations and Expansions
 CLASS ACTIVITY
Graded
Watch Video
http://www.youtube.com/watch?v=Hdpf-
MQM9vY

Identify different processes in construction

phases
 PROJECT LIFE CYCLE
Characteristics
• Cost and Resource usage are low at the start,
higher towards the end, and drop as project
closes.

• Probability of project success is low at the start of

the project and gets progressively higher as the
project continues.
 PROJECT LIFE CYCLE
APPROACHES TO IMPLEMENT CONSTRUCTION PROJECTS
• To successfully complete any project many tasks
need to be accomplished by the project team.
• The owner must define the requirements,
• the designer needs to translate the requirements
into contract documents,
• and the construction professionals need to organize
and manage the physical construction in accordance
with the contract documents.
 PROJECT LIFE CYCLE
APPROACHES TO IMPLEMENT CONSTRUCTION PROJECTS
Normal Track:
• The normal way to accomplish these tasks is to complete each
phase, then move on to the next.
• Concept/ Feasibility is first, then design, then procurement,
then construction, then start-up and finally operation.
• Each project phase builds on the last; the owner
communicates needs to the designer, and the designer
clarifies those needs through contract documents to the
builders.
• This approach is understood fairly well by the project
participants and is logical, but is very time consuming. This
usual practice is termed as normal tracking or Linear
Construction.
 PROJECT LIFE CYCLE
APPROACHES TO IMPLEMENT CONSTRUCTION PROJECTS
• Normal Tracking  Deliverables from the preceding phase are
obtained, examined and approved before work starts on the
next phase.
 PROJECT LIFE CYCLE
APPROACHES TO IMPLEMENT CONSTRUCTION PROJECTS
Fast Track:
• In a fast-tracked (also called phased) arrangement, the
project is approached in overlapping fashion.
• In a fast-tracked approach the project is broken down
into smaller pieces (called work packages), with each
package designed and constructed separately.
• By breaking the project down the work that can logically
be done first (e.g., site clearing and excavation) can be
designed and performed while later work (paving,
roofing, finishes) is still being designed.
 PROJECT LIFE CYCLE
APPROACHES TO IMPLEMENT CONSTRUCTION PROJECTS
Fast Track:
• Remember: Fast Tracking  Subsequent phase is
begun prior to approval of the previous phase
deliverables when the risks involved are deemed
acceptable.
 PROJECT LIFE CYCLE
APPROACHES TO IMPLEMENT CONSTRUCTION PROJECTS
Owners’ Choice: The selected approach depends on the
client/ owner priority and requirements.
 PROJECT LIFE CYCLE
APPROACHES TO IMPLEMENT CONSTRUCTION PROJECTS
CONVENTIONAL METHOD:
• For example, the owner may hire an architect to
design a shopping mall and a contractor to build it
after it has been totally designed. Because a total
design has been completed, the owner can ask for a
fixed price bid before construction begins. This
arrangement is the traditional or conventional
method of delivering a project (normal track or linear
construction).
 PROJECT LIFE CYCLE
APPROACHES TO IMPLEMENT CONSTRUCTION PROJECTS
FAST TRACK METHOD:
• Another possibility might be for the owner to hire
both an architect and a construction manager before
design begins. The advantage to the owner of
following this route is that by coordinating design
with construction the actual building of the shopping
mall can begin before the design is finished, saving
project time (and possibly money). This is the phased
or fast-tracked construction.
NORMAL VS FAST TRACK
 PROJECT LIFE CYCLE
NORMAL TRACK APPROACH
ADVANTAGE DISADVANTAGE

Less Risk Design-Construction integration

Traditional - understood fairly well by the Value Engineering can not be applied
project participants

Easier to implement in all phases More time requirement

Less coordination and cooperation

requirement

Less chances of errors, omissions and mis-

interpretations

Client can know project cost upfront of

construction

Less construction price to client/ owner

 PROJECT LIFE CYCLE
FAST TRACK APPROACH
ADVANTAGE DISADVANTAGE

Speed More Risk

Design-Construction integration Difficult to implement due to phase

interactions
Value Engineering application during design, Immense coordination and cooperation
procurement and construction requirement
Possibly more project value at less project More chances of errors, omissions and mis-
cost interpretations

Client can not know project cost upfront of

construction

More construction price to client/ owner

 PROJECT LIFE CYCLE
FAST TRACK CHALLENGES
• Save time and money for an owner, but this savings
does not come without risk.
• The greatest risk stems from the fact that the owner
must begin construction without a complete design
and a detailed and complete estimate.
• If construction begins and design problems occur on
the later stages of the project, forcing a budget
increase, the owner is at that point committed to
more than a simple redesign.
 PROJECT LIFE CYCLE
FAST TRACK CHALLENGES
• Good communication between the designer and
construction manager is also essential since they and
the owner are often working on concurrent tasks
that must be coordinated.
• The designer's design schedule must be precisely
tied to the bid and award of each work package and
the detailed construction schedule.
• The coordination and cooperation between the
owner, architect, and construction manager must be
very good, otherwise owner costs can skyrocket.
 CLASS ACTIVITY
Graded

Draw Normal and Fast track phase diagram of

identified processes in last class activity