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Systematic Project Management

This document discusses project management techniques for construction projects. It introduces the need for systematic project management to control schedules, costs, resources, and finances. It describes planning, scheduling, cost accounting, and resource management methods. These include developing a work breakdown structure, using Critical Path Method (CPM) scheduling, monitoring costs codes, tracking labor and equipment usage, and automating project management tasks. The document will use two example construction projects, one large-scale civil project and one commercial building, to demonstrate these project management applications.

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Karl Angelo Cuellar
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
70 views

Systematic Project Management

This document discusses project management techniques for construction projects. It introduces the need for systematic project management to control schedules, costs, resources, and finances. It describes planning, scheduling, cost accounting, and resource management methods. These include developing a work breakdown structure, using Critical Path Method (CPM) scheduling, monitoring costs codes, tracking labor and equipment usage, and automating project management tasks. The document will use two example construction projects, one large-scale civil project and one commercial building, to demonstrate these project management applications.

Uploaded by

Karl Angelo Cuellar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Republic of the Philippines

NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY


Cabanatuan City

CONSTRUCTION METHOD AND PROJECT MANAGEMENT


(CE 534)

“SYSTEMATIC PROJECT
MANAGEMENT”

Submitted by:

Jabez Celso Olivar


Karl Angelo Cuellar
John Rey De Jesus
Nomer Oltiveros
Leonalyn Irabagon
Jonathan Joe Feliciano
Mark Edgar Ison
CE 5-F

Submitted to:

Engr. Rosel Gamboa Verdadero


Subject Professor
COE – CE Department
2.1 INTRODUCTION
• A construction project is made up of many small components that are integrated to
form a single complex project. To have a successful project, various characteristics of
that project, including time, quality, cost, and safety, need to be managed.

Learning objectives for this chapter include:

❑ Recognize the various components of a construction project that need to be managed if the
project as a whole is to be successful.
❑ Understand the nature of a construction project that consists of various construction
processes that can be tracked, measured, and managed.
❑ Introduce valuable tools employed to manage the project and its various processes.

2.2 NEED FOR PROJECT MANAGEMENT


• From that point on, profits are determined by the project manager’s ability to save
money through wise procurement, better planning of daily operations, and the ability to
make sound decisions.
• If a project is to be constructed within its established budget and schedule, close
management control of field operations is essential.
• Project conditions such as technical complexity, timely completion, resource limitations,
and substantial costs put great emphasis on the planning, scheduling, and control of
construction operations.
• Field construction work can be affected profoundly by events that are difficult.
• The presence of uncertainty in construction does not suggest that planning is impossible
but rather that it will assume a monumental role in the success or failure of the project.
• Self‐interest is the essential motivation in such cases, the contractor being obligated by
contract to meet a prescribed completion date and to finish the project for a stipulated
sum.

2.3 Project Management Characteristics


• In its most common context, the term management relates to the planning, organizing,
directing, controlling, and staffing of a business enterprise.
• Business management is essentially a continuing and internal activity involving that
company’s own personnel, finances, property, and other resources.
• Construction project management applies to a specific project, the various phases of
which usually are accomplished by different organizations.
Chapter 2.7 – 2.9

Planning and Scheduling

Planning
• What is planning?
Planning, the first step in the process of construction time control, is discussed at length
in Chapter 4, “Project Planning.”

Scheduling

• What is scheduling?
The resulting time schedule, subject to periodic revision and correction during
construction, is the essential basis for the day‐to‐day time control of the project.

CPM PROCEDURE
Critical Path Method

• What is CPM?
The planning and scheduling of construction projects normally uses a network‐based
management procedure referred to as the Critical Path Method (CPM).

Time Monitoring and Control


When field operations begin, the order in which the project proceeds is in accordance
with an approved job plan. During the construction period, advancement of the work is
monitored by measuring and reporting field progress at regular intervals. These data are
analyzed and time‐control measures are taken as appropriate to keep the work progressing on
schedule.

2.10 Project Cost System


The project cost system is concerned with the control of expenses on current projects
and the gathering of production information for use in estimating the cost of future work. The
application of cost controls to a construction project actually begins when the costs are
estimated initially. It is then that the project budget is established. If there is to be an
opportunity for genuine cost control, it must be possible to detect cost overruns promptly by making
frequent comparisons between actual and budgeted expenses of production during the construction
process.
For both cost‐control and estimating purposes, a construction project must be broken
down into standardized and categorized building blocks, often called cost codes, work types, or
work breakdown structure (WBS) elements. Hence, cost information gathered during the
construction phase must be tracked using the same cost codes that will be used in producing
future estimates.

2.11 Estimating the Project


When the project design has been finalized, a complete and detailed cost estimate is
prepared. The contractor uses this estimate for bidding and subsequent cost‐control purposes.
With cost‐plus and construction management contracts, a similar estimate is compiled,
essentially for the owner’s cost‐control purposes during construction. The final estimate is
based on a detailed quantity takeoff that is a compilation of the total amounts of elementary
work classifications required.

Of all the costs involved in the construction process, those of labor and construction
equipment are the most difficult to estimate and control. Fundamentally, the estimating of
such costs is based on production rates. A production rate can be expressed as hours of labor or
equipment time required to accomplish a unit amount of a given work type. An example of this
is the number of labor hours required to erect a ton of structural steel.

2.12 Project Cost Accounting

Project cost accounting is the process of obtaining actual production rates and unit costs
from ongoing projects. This system provides the basic information for project cost control and
for estimating new work, as well as for scheduling future work. Because of the uncertain nature
of labor and equipment costs, these two items of expense are subjected to detailed and
frequent analysis during the construction period.

Cost accounting, unlike financial accounting, is not conducted entirely in terms of cost.
To establish production rates and unit costs, work quantities and hours of labor and equipment
usage must also be determined.
2.13) Resource Management

-The term resource refers to manpower, construction equipment, materials, and


subcontractors

-These resources totally control job progress.

2.14) Project Financial Control


- The significance of this method is that the project manager generally has responsibility for the
control of project financial matters.

2.15) Automating Project Management Tasks

- The management and control of project time, cost, resources and finance by the contractor
during the field construction process require that the project manager orginate, manipulate,
summarize and interpret large volumes of numerical data.

Chapter 2.16-2.17

Manual Methods and Systematic Project Management


Manual Methods
 The preceding discussion of computer applications to job management is not meant to
imply that manual methods have no place in the system. The project manager may rely
on hand methods for limited portions of a project and to carry out computations for
making quick checks, to determine the effect of changes, or to study a specialized
portion of the work. Even when the calculations are automated, the project manager
must understand the computational procedures that are an innate part of the
techniques applied. The manager’s intimate familiarity with the workings of the
procedures will provide an intuitive feel and grasp of a project that
Systematic Project Management
 cannot be obtained in any other way. Because manual methods are useful in their own
right and a thorough understanding of the computational methods involved with the
computer generation of management data is crucial to the proper application of project
control methods, this book discusses in step‐by‐step fashion the manual calculation of
the several kinds of construction management tools.

Discussion Format
 Several different management procedures are presented in the chapters that follow. In
an attempt to provide a sense of continuity while going from one topic to another, two
example projects are used as a continuing basis for the succeeding series of discussions.
The primary example project is chosen from the heavy civil sector. For those with a
primary interest in building construction rather than heavy civil construction, a second
example project is provided in the form of a commercial building. In order to acquaint
the reader both with the detailed workings of certain procedures and the broad
applicability of others, examples of construction work ranging from modest to
comprehensive in extent are needed. To provide examples of both macro‐ and micro‐
work packages, the large‐scale heavy civil project consisting of several separate
segments or subprojects serves as the primary example project. Two segments of the
heavy civil example project are used for illustrative purposes where a considerable
scope of construction activity is needed to present a given management application.
However, where the level of detail is such that the procedure is best explained by using
an example of limited proportions, an individual subproject of the heavy civil project is
used. Several project management actions are presented subsequently using the two
limited examples as the basis for discussion. Each major management responsibility is
the subject of a different chapter. The changes, modifications, revisions, and corrections
that are discussed in any one chapter are limited to that chapter and do not carry
forward to the next. For purposes of clarity, the methods presented in each chapter are
discussed independently of one another and are applied, in turn, to the original,
unchanged example project. In a similar manner, the example commercial building
project is used to illustrate project level management principles applicable to the
building sector of the construction industry. This project is a single-story office building
built in 2006–2007 for a technology company engaged in computer programming and
consulting. The design and construction information for the building project were
graciously provided to the authors for inclusion in this book by the project design team,
the contractor, and the owner.
2.18 Example Projects

The first example project focuses on heavy civil construction and involves the construction of an
earth dam and some appurtenant structures. The completed project will serve a number of
purposes, including flood control, irrigation, and recreation. The dam will be constructed across
an existing river, the flow of which is highly variable with the seasons.

Heavy civil construction project

The second example project is a 12,200‐square‐foot commercial building designed specifically


to consolidate various operations of a technology company focused on consulting and software
development. It was constructed on a previously developed site on the outskirts of a moderate-
sized western town and designed with the opportunity to move on to a Phase II expansion
when the company grew. Phase II was started soon after Phase I was completed.

Commercial building project

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