Project Management Concepts and Applications

Project Management
Concepts and Applications

January - 2014
Bridge Game
2
Key Outcomes
Upon completion of this course participants will be
able to:
 Appreciate the benefits of using a sound project
management approach to manage projects
 Understand the overall framework of projects and
project management
 Have a good understanding of the language and
key terms and concepts in project management
 Have an appreciation of industry best practice
project management tools, techniques and
methodologies
3
Course Outline
Module 1 Project Management Framework

Module 2 Project Objective
Module 3 Project Team
Module 4 Stakeholders and Communication
Module 5 Procurement Strategy
Module 6 Project Plan
Module 7 Execute and Control Project Pan
Module 8 Project Closeout
4
Module 1
Project Management
Framework
5
Project: Definition
A temporary endeavour undertaken to

create a unique product, service or
result.
 Temporary – definite beginning and end

 Unique Products, Services or Results
 Progressive elaboration – developing in
steps, and continuing by increments
6
Projects: Examples
 Developing a new product or service

 Effecting a change in structure, staffing or
style of an organisation
 Designing a new transportation vehicle
 Developing or acquiring a new or modified
information system
 Constructing a building or facility
 Implementing a new business procedure
or process
 Responding to a contract solicitation
7
What is Project Management?
• Project Management is the application of

skills, knowledge, tools and techniques
to meet the needs and expectations of
stakeholders for a project.
• The purpose of project management is
prediction and prevention, NOT
recognition and reaction
8
Project Success
• Quality and Customer

Requirements Satisfied
• Completed within allocated
• Accepted by the Customer
time frame
• Customer Corporate
Objectives Satisfied
• Completed within allocated • Zero health, safety and

budget environment incidents
9
Projects Critical Success Factors
 Agreement among the project team, customer
and management on the goals of the project
 Good definition of project scope
 A plan that shows an overall path and clear
responsibilities and will be used to measure
progress during the project
 Constant, effective communication amongst
everyone involved in the project
 A controlled scope
 Management support
10
Triple Constraints
Scope
Quality
Schedule Cost
11
Priority Matrix
Higher Lower Why?

Priority Priority
Cost
Scope X
Schedule X
Cost X
12
Project Management Process Groups
Monitoring &
Controlling Processes
Planning
Processes
Initiating Closing
Processes Processes
Executing
Processes
13
Project Management Process Group and Knowledge Area Mapping (from PMBOK, 5th Edition)
Project Management Process Groups
Knowledge Areas Initiating Process Monitoring & Controlling
Planning Process Group Executing Process Group Closing Process Group
Group Process Group
4. Project Integration 4.1 Develop Project 4.2 Develop Project 4.3 Direct and Manage 4.4 Monitor and Control 4.6 Close Project or Phase
Management Charter Management Plan Project Work Project Work
4.5 Perform Integrated
Change Control
5. Project Scope 5.1 Plan Scope Management 5.5 Validate Scope

Management 5.2 Collect Requirements 5.6 Control Scope
5.3 Define Scope
5.4 Create WBS
6. Project Time 6.1 Plan Schedule 6.7 Control Schedule

Management Management
6.2 Define Activities
6.3 Sequence Activities
Cost 6.4 Estimate Activity
Resources
6.5 Estimate Activity
Durations
6.6 Develop Schedule
7. Project Cost 7.1 Plan Cost Management 7.4 Control Costs

Management 7.2 Estimate Costs
7.3 Determine Budget
8. Project Quality 8.1 Plan Quality 8.2 Perform Quality 8.3 Control Quality
Management Management Assurance
9. Project Human 9.1 Plan Human Resource 9.2 Acquire Project Team
Resource Management Management 9.3 Develop Project Team
9.4 Manage Project Team
10. Project 10.1 Plan Communications 10.2 Manage 10.3 Control

Communications Management Communications Communications
Management
11. Project Risk 11.1 Plan Risk Management 11.6 Control Risks
Management 11.2 Identify Risks
11.3 Perform Qualitative Risk
Analysis
11.4 Perform Quantitative
Risk Analysis
11.5 Plan Risk Responses
12. Project Procurement 12.1 Plan Procurement 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements
Management Management
13. Project Stakeholder 13.1 Identify Stakeholders 13.2 Plan Stakeholder 13.3 Manage Stakeholder 13.4 Control Stakeholder
14
Management Management Engagement Engagement
Generic Project Life Cycle
Initiating Planning Executing Controlling Closing
• Project charter • Project mgmt plan • Direct/manage • Monitor/control • Close project

• Preliminary • Project scope plan project execution project work • Contract closure
project scope • Scope definition • Quality • Integrated • Administrative
statement • Work breakdown assurance change control closure
structure (WBS) • Acquire project • Scope
• Activity definition team verification
• Activity sequencing • Develop project • Scope control
• Activity resource est team • Schedule control
• Activity duration est • Request seller • Perform quality
• Schedule dev. responses control
• Cost estimating • Information • Manage project
• Cost budgeting distribution team
• Quality plan • Select sellers • Performance
• HR plan reporting
• Risk mgmt plan • Risk
• Plan purch/ monitor/control
acquisition/ • Contract admin
contracting
15
Project Life Cycle Characteristics
 Cost and staffing levels are low at start,

higher towards the end and drops rapidly
as the project draws to a conclusion
 Risk and uncertainty is highest at start of
the project
 Ability to influence the final characteristics
of the project’s product and project final
cost is highest at the start and gets
progressively lower as the project
continues
16
Project Life Cycle Profile
Phase 1 Phase 2 Phase 3 Phase 4

CONCEPT DEVELOPMENT IMPLEMENTATION TERMINATION
Opportunity and Risk Amount at Stake

(Ability to influence)
INCREASING RISK
$ VALUE
Period when
Highest Risks
Period of
are incurred
Highest
Risk impact
TIME
17
Representative Project Life Cycles
 Construction
Planning Turnover
Feasibility And Construction And
Design Startup
• Project • Base Design • Manufacturing • Final Testing
Formulation • Cost and • Delivery • Maintenance
• Feasibility Studies Schedule • Civil Works
• Strategy Design • Contract Terms • Installation
and approval and Conditions • Testing
• Detailed Planning
18
Representative Project Life Cycles
 Software Development
Proof of First-build Second-build Final

Concept Cycle Cycle Cycle Cycle
19
20
21
Transitioning to APM
While many traditional project management skills translate to
APM, some transitions are necessary:
Agile Project Management Traditional Project Management

Focus on customer satisfaction and interaction Focus on plans and artifacts
Response to change via adaptive action Change controlled via corrective action
Progressive elaboration, rolling-wave planning Monumental up-front planning
Customer prioritized, time-boxed delivery Manager negotiated, scope-based delivery
Commitment management via feature Activity management via work breakdown

breakdown structure structure
Collaboration on self-disciplined and self- Top-down control
organizing teams
Minimal set of context-sensitive, generative Prescriptive, heavyweight methods
practices
Essential, value-focused metrics Non-value added controls
22
Specific Company Project Life Cycle
PREPARE IT DO IT WORK IT
• EIA and other • Budget Approval • Customer • Execution • User Training
INPUT
EHS Requirements Acceptance Phase Sign-off

Sign-off
• AFE Approval • Customer Sign-off
• Contract Admin.
OPERATION
1 2 1
3 4 5 6 7
GATE
GATE
GATE
GATE
GATE
GATE
SEARCH STUDY SEARCH
PROVE PLAN DO TRANSFER CLOSE
• Business • Risk • Detailed • WBS • Progress • User Training • Close-out

Identification Feasibility Reporting Report: variance,
Proposal • Cost Estimate
and Analysis • Final Reports, all lessons learnt
• Peer Reviews • Risk Mgt. And Manuals
• Baseline Control • Admin. Close-out
• Pre-feasibility Schedule
• Resource Com. • Lessons Learnt
OUTPUT
• BAR
• Resource Sign-off
• Peer Review • Project Charter Assign.
• Lessons Learnt
• Lesson Learnt • High Level • Risk Mgt. Plan
Schedule • Quality Audit
• Comm. Plan Checklist
• Lessons Learnt • Lessons Learnt • Lessons Learnt 23
Steps in the Process Deliverable
Define project objective Project Charter
• Name Project Team

Responsibility Matrix
• Define responsibilities
Team Charter
• Determine how team will work
• Identify Project Stakeholders

Stakeholder Analysis
• Determine Stakeholders interests
Communication Plan
• Define Communication needs
Procurement Strategy/Plan
Determine Procurement Strategy
Work Breakdown Structure (WBS)
• Define project scope Schedule Baseline
PROJECT PLAN
• Determine project schedule Cost Baseline
Risk Response Plan
• Determine project budget
HSE Plan
• Assess and plan for project risks
QA/QC Plan
• HSE Standards Interface Management Plan
• Quality Assurance/Quality Control Standards Key Resources Plan/Schedule
• Execute Project Plan Project deliverables/ results

Earned Value Reporting
• Monitor project progress
Project Status Reporting
• Manage issues and risks
Change Control Process
• Control project changes
Variance Analysis
• Forecast completion
Issue and Risks Action Logs
• Close the project Close out checklists
• Identify lessons learnt 24
Lessons Learnt Report
Module 2
Project Objective
25

• Define responsibilities Responsibility Matrix
• Determine how team will work Team Charter

• Determine Stakeholders interests Stakeholder Analysis
• Define Communication needs Communication Plan
Determine Procurement Strategy Procurement Strategy/Plan

PROJECT PLAN
• Determine project budget Risk Response Plan
• Assess and plan for project risks HSE Plan
• HSE Standards QA/QC Plan
• Quality Assurance/Quality Control Standards Interface Management Plan
Key Resources Plan/Schedule
• Monitor project progress Earned Value Reporting

• Manage issues and risks Project Status Reporting
• Control project changes Change Control Process
• Forecast completion Variance Analysis
• Close the project
• Identify lessons learnt Close out checklists
26
27
Project Objective
 Project Charter
 Is sent out by the Project Sponsor
 The document that formally authorises a
project
 Provides the project manager with the
authority to apply organisational resources
to project activities
28
Project Charter
 Should provide the following info:
 Project purpose or justification
 Measurable project objectives and related success criteria
 High level requirements/deliverables
 Assumptions and constraints
 High level project description and boundaries (in scope; out of
scope)
 High level risks
 Summary milestone schedule
 Summary budget
 Stakeholder list
 Project approval requirements (i.e. what constitutes project
success, who decides the project is successful, and who signs off
on the project
 Assigned project manager, responsibility, and authority level, and
 Name and authority of the sponsor or other person(s) authorising
the project charter
29
Exercise 1: Project Charter
 Use the information provided in the handout to prepare a

Project Charter for the House Renovation Project
30
Module 3
Project Team
31


• Determine Stakeholders interests Stakeholder Analysis
• Define Communication needs Communication Plan

PROJECT PLAN
• Execute Project Plan Project Deliverables/ results

32
Responsibility Matrix
 The responsibility matrix will document precisely the

responsibility of each group or individual in the
project.
 The purpose of the Responsibility Matrix is to clearly
define the responsibilities of team members and
principal stakeholders in accomplishing the activities
of the project.
 The Responsibility Matrix is organised by Work
Breakdown Structure (WBS) elements and used to
determine what resources are needed on a project.
Responsibility Assignment Matrix (RAM) Using a RACI Format
Activity Ann Ben Carlos Bill Reshma
Define A R I I I
Design I A R C C
Develop I A R C C
Test A I I R I
R = Responsible; A = Accountable; C = Consult; I = Inform
34
Team Charter
 Development of the Team Charter is necessary as it
formally recognizes the existence of a project team.
 It lists all participants on the Project Team and their
reporting relationships.
 It describes the methods by which the Project Team
will conduct business, meetings, etc.
 It describes the conditions under which the project
team is organized: individual roles within the team,
and the operating agreement under which the entire
team works.
 It is a mutually agreed upon contract of behaviour for
the team.
Team Charter Template
TEAM PARTICIPANTS
Project Names: [Enter the official name of the Project Sponsor Name: [Enter the
project as it is called in the Project Portfolio listing] Project Sponsor’s name]
Project Manager Name: [Enter the Project Manager Name]
Team Member and Roles: [List all members of the Project Team with a short description of
what their role on the Project Team is]
TEAM DESCRIPTION
Mission: [State what the team is trying to accomplish. Give an overview of the reasons for
the creation of the project team and what they, as a team, contribute to the organization]
Values: [List the specific characteristics and values of importance to the team members.
From these, develop a team value statement.]
Administrative Guidelines: [Describe how the team will handle day-to-day issues such as
time keeping, data collection, data management, communication, and anything else regarding
project administration]
Ground Rules: [Describe how team members will be expected to interact with each other]
Decision Guidelines: [Describe how decisions will be made, including time limits on
discussions and escalation parameters]
Meeting Guidelines: [Describe how the team will conduct meetings]
Expected Duration: [List the expected duration of the team: start date to finish date]
Team Development (Slide 1 of 2)
Stage Major Processes Characteristics
Forming Exchange of information; Tentative interactions; polite

(Orientation) increased interdependency; task discourse; concern over
exploration; identification of ambiguity; self-discourse
commonalities
Storming Disagreement over procedures, Criticism of ideas; poor
(Conflict) leadership; expression of attendance; hostility;
dissatisfaction; emotional polarisation and coalition
responses; resistance formation
Norming Growth of cohesiveness and Agreement on procedures;
(Cohesion) unity; establishment of roles, reduction in role ambiguity;
standards and relationships increased “we-feeling”
Performing Goal achievement; high task Decision making; problem
(Performance) orientation; emphasis on solving; mutual cooperation
performance and production
Adjourning Termination of roles; completion Disintegration and withdrawal;
(Dissolution) of tasks; reduction of dependency increased independence and
emotionality; regret; sadness
37
Team Development (Slide 2 of 2)
38
Module 4
Stakeholders and Communication
39


Communication Plan

PROJECT PLAN

40
Project Stakeholders
Individuals and organisations that are

actively involved in the project, or whose
interests may be positively or negatively
affected as a result of project execution or
project completion; they may also exert
influence over the project and its results.
41
 Key stakeholders on every project:

 Project manager – responsible for project
results
 Customer – individual/organisation that will
use the project’s product
 Project team members – the group that is
performing the work of the project
 Project Sponsor or Champion – provides
financial resources, supports the project
42
 Other stakeholders
 Line managers
 Unions
 Contractors and vendors
 External funders
 Government agencies
 Community
 Managing stakeholder expectations is
a key responsibility of the project
manager
43
Aim Goal
Identify the Develop cooperation

stakeholders and between the
assess how are they stakeholders and the
likely to be impacted project team, and
by the project ultimately assuring
and/or how they can successful project
impact the project outcomes
Identify, Analyse, Prioritise, Plan Response/Communication, Monitor & Control

44
Power/Interest Matrix
 Classifies stakeholders in relation to

their power and the extent to which
they are likely to show interest in the
actions of the organisation
 Can be used to indicate the nature of
the relationship which should be
adopted with each group
45
Stakeholder Interests
 What are their expectations and what benefits do

they seek
 What resources will they commit (or avoid
committing) to the project
 Do they have other interests that might conflict with
the project
 How do they regard other stakeholders on the list
46
Stakeholder Power/Influence
 Legal or statutory authority

 Control of strategic resources
 Social, economic and political status
 Possession of specialist knowledge
 Negotiating position and ability to influence other
stakeholders
 Formal/informal links to other stakeholders
 Degree of dependence on other stakeholders
 Leadership/Authority
47
Power/Interest Matrix - Example
L H 48
Stakeholder Engagement Assessment
Stakeholder Unaware Resistant Neutral Supportive Leading
Stakeholder 1 C D
Stakeholder 2 C D
Stakeholder 3 CD
Stakeholder 4 C D
 Unaware. Unaware of project and potential impacts

 Resistant. Aware of project and potential impacts and resistant to change
 Neutral. Aware of project yet neither supportive or resistant
 Supportive. Aware of project and potential impacts and supportive to
change
 Leading. Aware of project and potential impacts and actively engaged in
ensuring the project is a success
C – Current D - Desired
49
Issue/Response Strategy - Example
Stakeholder Current Desired Key Issues/ Concerns Strategy Assigned to
Orientation Orientation
Broadcast e-mail from CEO expressing
Strong need to see Initiative
CEO Supportive Supportive importance of the initiative and re-
initiative succeed Leader
iterating support
Concerned about loss Use Finance to educate on positive Finance Team
Bus. Unit A Resistant Neutral
of market share bottom-line financial impact of this effort Member
Concerned about loss Monitor attitude following CEO e-mail and Bus. Unit B
Bus. Unit B Neutral Neutral
of market share devise additional tactics if needed Team Member
Concerned about Following CEO e-mail, engage to help Marketing
Marketing Neutral Neutral
customer reaction recruit automotive customers Team Member
Likes potential Leverage support to reorient Bus. Unit A Finance Team
Finance Supportive Supportive
savings (and B if needed) Member
Concerned about Initiative
Legal Resistant Neutral Meet with CEO to devise legal strategy
legal action Leader
Concerned about Monitor to make sure they are not HR Team
HR Resistant Neutral
employee impact actively undermining the effort Member
Marketing to meet with large customers Marketing
Automotive May perceive a loss of
Neutral Neutral to ensure no negative impact from the Team Member
Customers service
effort
Sheet Metal Monitor to make sure they are not Bus. Unit A
Resistant Neutral Will lose business
Suppliers actively undermining the effort Team Member
Tax Watching for potential Inform of initiative and test assumption Compliance
Neutral Neutral
Authorities shifting of profits of neutrality Team Member
50
Communications Matrix - Example
Comm. Type Objective of Medium Freq. Audience Owner Deliverable Format
Communication
Kickoff Introduce the project  Face to Face Once  Project Sponsor Project Manager  Agenda  Soft copy
Meeting team and the project.  Project Team  Meeting archived on
Review project objectives  Stakeholders Minutes project
and management SharePoint
approach. site and
project web
site
Project Team Review status of the  Face to Face Weekly  Project Team Project Manager  Agenda As above
Meetings project with the team.  Conference Call  Meeting
Minutes
 Project
schedule
Technical Discuss and develop  Face to Face As Needed  Project Technical Lead  Agenda As above
Design technical design solutions Technical Staff  Meeting
Meetings for the project. Minutes
Project Status Report on the status of  Face to Face Monthly  PMO Project Manager  Slide updates As above
Meetings the project to  Conference Call  Project
management. schedule
Project Status Report the status of the  Email Monthly  Project Sponsor Project Manager  Project Status As above
Reports project including activities,  Project Team Report
progress, costs and  Stakeholders  Project
issues.  PMO schedule
Town Hall Introduce project and  Face to face Quarterly  Residents Project Manager  Agenda As above
Meetings subsequently report on  Environmental  Issue and
progress Groups action lists
51
Exercise 2: Stakeholders
 Identify the key and other stakeholders in the House

Renovation Project
 Carry out a Stakeholder Analysis
 Outline a high level Communication Plan for the Project, as
applicable
52
Module 5
Procurement Strategy
53


Communication Plan

PROJECT PLAN
QA/QC Plan
• HSE Standards
Interface Management Plan
• Quality Assurance/Quality Control Standards Key Resources Plan/Schedule

54
Procurement Strategy
 Describes the processes required to acquire goods and

services from outside the performing organization
 Determining what to procure and when

 Documenting product requirements and identifying
potential sources
 Obtaining quotations, bids, offers or proposals
 Selecting seller from among potential sellers
 Managing the relationship with the seller
 Completion and settlement of the contract, including
resolution of any open issues
Project Procurement Management
 Buyer’s goal
 To place maximum performance risk on the seller
 To maintain incentive for economical and efficient
performance
 Seller’s goal
 Minimise risks
 Maximise profits
 Key issues
 Transparency in transactions/processes
 Clear contract specifications
 Contract types
Contract Categories
 Fixed-price or lump-sum
• Sets a fixed total price for a defined product or service
• Can incorporate incentives
• Buyer must provide precise specifications
• Seller legally obligated to complete
 Cost-reimbursable
• Seller receives payments for allowable costs
• Seller normally receives a fee (profit)
• Used where specifications are unclear or incomplete, or where risks are not
easily quantifiable
• “Allowable” costs must be clearly defined in contract
• Buyer has right to see Seller’s books to know true costs
 Time & Materials (a “hybrid”)
• Unit labor or material rates can be preset (like Fixed Price)
• Buyer does not know make-up of labor unit prices
• May be left open-ended (like Cost-Reimbursable)
• Used when precise amount of work is unknown (e.g.-equipment repairs
FIDIC Documents
 Short Form of Contract (Green Book)

 These Conditions of Contract are recommended for
engineering and building work of relatively small capital
value. However, depending on the type of work and the
circumstances, the Conditions may be suitable for contracts
of considerably greater value.
 They are considered most likely to be suitable for fairly
simple or repetitive work or work of short duration without
the need for specialist sub-contracts. This form may also be
suitable for contracts which include, or wholly comprise,
contractor-designed civil engineering, building, mechanical
and/or electrical works.
FIDIC Documents
 Construction Contract (Red Book)

 Conditions of Contract for Construction, which are
recommended for building or engineering works designed by
the Employer or by his representative, the Engineer.
 Under the usual arrangements for this type of contract, the
Contractor constructs the works in accordance with a design
provided by the Employer.
 However, the works may include some elements of
Contractor-designed civil, mechanical, electrical and/or
construction works
FIDIC Documents
 Plant and Design-Build Contract (Yellow

Book)
 Conditions of Contract for Plant and Design-Build, which are
recommended for the provision of electrical and/or
mechanical plant, and for the design and execution of
building or engineering works.
Contractor designs and provides, in accordance with the
Employer’s requirements, plant and/or other works; which
may include any combination of civil, mechanical, electrical
and/or construction works.
FIDIC Documents
 EPC Turnkey Contract (Silver Book)

 Conditions of Contract for EPC Turnkey Projects, which are
recommended where one entity takes total responsibility for
the design and execution of an engineering project.
entity carries out all the Engineering, Procurement and
Construction: providing a fully-equipped facility, ready for
operation (at the "turn of the key"). This type of contract is
usually negotiated between the parties.
 DBO Contract (Gold Book)

 Conditions of Contract for Design, Build and Operate
Projects
FIDIC Documents – Contents (Typical, 1 of 3)
1. General Provisions 4. The Contractor 5. Nominated Subcontractors
1. Definitions 1. Contractor’s General Obligations 1. Definition of “nominated
2. Interpretation 2. Performance Security Subcontractor”
3. Communications 3. Contractor’s Representative 2. Objection to Nomination
4. Law and Language 4. Subcontractors 3. Payment of nominated
5. Priority of Documents 5. Assignment of Benefit of Subcontractor
6. Contract Agreement Subcontractor 4. Evidence of Payments
7. Assignment 6. Co-operation
8. Care and Supply of Documents 7. Setting Out 6. Staff and Labour
9. Delayed Drawings or 8. Safety Procedures 1. Engagement of Staff and
Instructions 9. Quality Assurance Labour
10. Employer’s Use of Contractor’s 10. Site Data 2. Rates of Wages and Conditions
Documents 11. Sufficiency of Accepted Contract of Labour
11. Contractor’s Use of Employer’s Amount 3. Persons in the Service of the
Documents 12. Unforeseeable Physical Employer
12. Confidential Details Conditions 4. Labour Laws
13. Compliance with Laws 13. Rights of Way and Facilities 5. Working Hours
14. Joint and Several Liability 14. Avoidance of Interference 6. Facilities for Staff and Labour
15. Access Route 7. Health and Safety
2. The Employer 16. Transport of Goods 8. Contractor’s Superintendence
1. Right of Access to the Site 17. Contractor’s Equipment 9. Contractor’s Personnel
2. Permits, Licences and Approvals 18. Protection of the Environment 10. Records of Contractor’s
3. Employer’s Personnel 19. Electricity, Water and Gas Personnel and Equipment
4. Employer’s Financial 20. Employer’s Equipment and 11. Disorderly Conduct
Arrangements Free-Issue Materials
5. Employer’s Claims 21. Progress Reports 7. Plant, Materials&Workmanship
22. Security of the Site 1. Manner of Execution
3. The Engineer 23. Contractor’s Operation on Site 2. Samples
1. Engineer’s Duties and Authority 24. Fossils 3. Inspection
2. Delegation by the Engineer 4. Testing
3. Instructions of the Engineer 5. Rejection
4. Replacement of the Engineer 6. Remedial Work
5. Determinations 7. Ownership of Plants and
Material
8. Royalties
8. Commencement, Delays and 11.Defects Liability 14.Contract Price and Payment
Suspension 1. Completion of Outstanding 1. The Contract Price
1. Commencement of Work Works and Remedying Defects 2. Advance Payment
2. Time for Completion 2. Costs of Remedying Defects 3. Application for Interim Payment
3. Programme 3. Extension of Defects Certificates
4. Extension of Time for Notification Period 4. Schedule of Payments
Completion 4. Failure to Remedy Defects 5. Plant and Material intended for
5. Delays Caused by Authorities 5. Removal of Defective Work the Works
6. Rate of Progress 6. Further Tests 6. Issue of Interim Payment
7. Delay Damages 7. Right of Access Certificates
8. Suspension of Work 8. Contractor to Search 7. Payment
9. Consequences of Suspension 9. Performance Certificate 8. Delayed Payment
10. Payment for Plant and Materials 10. Unfulfilled Obligations 9. Payment of Retention Money
in Event of Suspension 11. Clearance of Site 10. Statement at Completion
11. Prolonged Suspension 11. Application for Final Payment
12. Resumption of Work 12. Measurement and Evaluation Certificate
1. Works to be Measured 12. Discharge
9. Test on Completion 2. Method of Measurement 13. Issue of Final Payment
1. Contractor’s Obligations 3. Evaluation Certificate
2. Delayed Tests 4. Omissions 14. Cessation of Employer’s Liability
3. Retesting 15. Currencies of Payment
4. Failure to Pass Tests on 13. Variations and Adjustments
Completion 1. Right to Vary 15. Termination by Employer
2. Value Engineering 1. Notice to Correct
10. Employer’s Taking Over 3. Variation Procedure 2. Termination by Employer
1. Taking Over of the works and 4. Payment in Applicable 3. Valuation at Date of Termination
Sections Currencies 4. Payment after Termination
2. Taking Over of Part of the 5. Provisional Sums 5. Employer’s Entitlement to
Works 6. Daywork Termination
3. Interference with Tests on 7. Adjustments for Changes in
Completion Legislation
4. Surfaces Requiring 8. Adjustment for Changes in Cost
Reinstatement
16.Suspension and Termination by 19.Force Majeure • Guidance for the Preparation of
Contractor 1. Definition of Force Majeure Particular Conditions
1. Contractor’s Entitlement to 2. Notice of Force Majeure
Suspend Work 3. Duty to Minimise Delay • Annex A: Example Form of Parent
2. Termination by Contractor 4. Consequences of Force Majeure Company Guarantee
3. Cessation of Work and Removal 5. Force Majeure Affecting • Annex B: Example Form of Tender
of Contractor’s Equipment Subcontractor Security
4. Payment on Termination 6. Optional Termination, Payment • Annex C: Example Form of
and Release Performance Security: Demand
17. Risk and Responsibility 7. Release from Performance Guarantee
1. Indemnities under the Law • Annex D: Example Form of
2. Contractor’s Care of the Works Performance Security: Surety Bond
3. Employer’s Risks 20. Claims, Disputes and • Annex E: Example Form of Advance
4. Consequences of Employer’s Arbitration Payment Guarantee
Risks 1. Contractor’s Claims • Annex F: Example Form of
5. Intellectual and Industrial 2. Appointment of the Dispute Retention Money Guarantee
Property Rights Adjudication Board • Annex G: Example Form of Payment
6. Limitation of Liabilities 3. Failure to Agree Dispute Guarantee by Employer
Adjudication Board
18. Insurance 4. Obtaining Dispute Adjudication • Form of Letter of Tender
1. General Requirements for Board’s Decision
Insurances 5. Amicable Settlement • Form of Appendix to Tender
2. Insurance for Works and 6. Arbitration
Contractor’s Equipment 7. Failure to Comply with Dispute • Form of Contract Agreement
3. Insurance against Injury to Adjudication Board’s Decision
Persons and Damage to 8. Expiry of Dispute Adjudication • Form of Dispute Adjudication
Property Board’s Appointment Agreement
4. Insurance for Contractor’s
Personnel Appendix:
• General Conditions of Dispute
Adjudication Agreement
FIDIC Documents – Appendix to Tender (Typical, 1 of 2)
Item Data
Employer’s name and address

Contractor’s name and address
Engineer’s name and address
Time for Completion of the Works ………………….. days
Defects Notification Period 365 days
Electronic transmission systems
Governing Law
Ruling Language
Language for communications
Time for access to the Site ………… Days after Commencement Date
Amount of Performance Security … % of the Accepted Contract Amount
Normal Working Hours
Delay Damages for the Works … % of the Final Contract Price per day
Maximum amount of delay damages … % of the Final Contract Price
% for adjustment of Provisional Sums
Adjustments for changes in cost
Total advance payment … % of the Accepted Contract Amount
Number and timing of instalments
Currencies and proportions
FIDIC Documents – Appendix to Tender (Typical, 2 of 2)
Item Data
Start repayment of advance payment When payments are … % of Accepted

Contract Amount less Provisional Sums
Repayment amortisation of advance payment …%
Percentage of retention …%
Limit of retention money … % of Accepted Contract Amount
Plant and material for payment when shipped en [list]
route to the Site
Plant and material for payment when delivered to [list]
the Site
Minimum amount of interim payment certificate … % of Accepted Contract Amount
“Currency/currencies of payment”
Periods for submission of insurance
a) Evidence of insurance … days
b) Relevant policies … days
Maximum amount of deductibles for insurance of
the Employer’s risks
Minimum amount of third party insurance
“Dispute Adjudication Board (DAB)”
Bonds: Bid Bonds
 Bid (Tender) Bonds

 An indication of your Company’s ability to carry out the work being bid
on
 Sought by the Buyer to provide a surety should the successful bidder
fail to proceed with the contract for any reason
 Used as a financial fall-back in the event the successful contracting
party is unable/unwilling to accept the award of the contract or meet
any of its conditions, and it becomes necessary to place the project, or
any part of it, out for bid again
 Benefits
• Demonstrates to the Buyer that the bidder is reliable, a sound business
and has the ability to carry out the work being bid for
• Indicates that your bid is genuine and you have a firm commitment to
the project
• Secures payment for the Buyer of the guaranteed amount in the event
of:
– Withdrawal of offer before its expiration date
– Repudiation of the contract by the bidder after being awarded
– Failure of the successful bidder to provide a replacement
Performance Bond
Bonds: Performance Bonds
 Performance Bonds
 Presented by the successful bidder after being awarded the
contract
 Is an indication that your company has the necessary skills
and capabilities to carry out the required work and comply

with the agreed terms and conditions of the contract
 Benefits:
• Demonstrates to the Buyer that the bidder has the required

skills and financial strength to complete the contract
• Pays for completion of the work in the event the contract is not
fulfilled
Bonds: Advance Bonds, Maintenance Bond
 Advance Payment Bond is a Guarantee supplied by a
party receiving an advance payment to the party
advancing the payment. It provides that the advanced
sum will be returned if the agreement under which the
advance was made cannot be fulfilled.
 Payment Bond protects subcontractors and suppliers by
guaranteeing that all claimants will be paid for labor
and materials supplied to the contractor for use on the
bonded job
 Maintenance bond guarantees that for a stated period,
usually one year, that any defective workmanship or
material will be repaired
Insurance
 Public liability insurance protects the Contractor and his
business against the financial risk of being found liable to a
third party and/or the public for death or injury, loss or
damage of property or economic loss resulting from his
negligence. Mandatory by law
 Workmen’s Compensation provides for the payment of
compensation to workmen for injuries suffered during the
course of employment. Mandatory by law
 Professional indemnity insurance protects advice-based
businesses from legal action taken for losses incurred as a
result of professional negligence. It provides indemnity cover
if the client suffers a loss - material, financial or physical -
directly attributed to negligent acts, errors or omissions.
70
Insurance: Builder’s Risk
 Builder's Risk insurance, also known as "course of
construction", "construction all risk", and "contractor's
all risk insurance", is designed to insure buildings or
projects against repair or replacement costs while they
are under construction and, in some cases, for a
specified period afterwards.
 This insurance will usually also cover build materials,
fixtures and appliances all of which are intended to
become an integral part of the structure under
construction as well as temporary works to facilitate
construction.
 Can be procured by Contractor or Client
71
Exercise 3: Procurement Strategy
 Suggest a high level procurement strategy for the provision

of goods and services to accomplish the House Renovation
Project
72
Module 6
Project Plan
73


Communication Plan

PROJECT PLAN

74
Project Scope
Definition
 Project scope defines the services,
equipment, and materials to be provided and
the work to be accomplished based on
contract parameters
Purpose
 To develop an understanding of the project’s
content and complexity; to determine what
work will be done for the project and how it
will be done
75
Determining Scope
Customer’s needs and wants
List of List of
inclusions exclusions
76
Scope Management
 Primarily it is the definition and control of what IS

and
IS NOT included in the project.
Scope Statement
 Product Scope Description
 Progressively elaborates the characteristics of the product, service, or result described in the
project charter and requirements documentation
 Product Acceptance Criteria
 Defines the process and criteria for accepting completed products, services or results
 Project Deliverables
 Deliverables include both the outputs that comprise the product or service of the project, as
well as ancillary results, such as project management reports and documentation.
 Project Exclusions
 Generally identifies what is excluded from the project. Explicitly stating what is out of scope
for the project helps to manage stakeholders expectations
 Project Constraints
 Lists and describes the specific project constraints associated with the project scope that
limits the team’s options, for example, a predefined budget or any imposed dates or schedule
milestones that are issued by the customer or performing organisation
 Project Assumptions
 Lists and describes the specific project assumptions associated with the project scope and
the potential impacts of these assumptions if they prove to be false
78
Create WBS
Subdividing the major

project deliverables
and project work into
smaller, more
manageable
components
Work Breakdown Structure
The WBS
 Is the scope of work
The WBS helps

 The customer, management, and the
technical team visualize the project
 The project team communicate
 Build the foundation for the schedule and cost
performance measurement
 Facilitate assignment of task accountability
WBS – Graphical View
81
WBS – Outline View
1. Project Summary
1.1 Design Phase
1.1.1 First Design Phase
1.1.1.1 Start Milestone
1.1.1.2 Design Task 1
1.1.2 Second Design Phase
1.1.2.4 End Design Milestone
1.2 Programming Phase
1.2.1 Program Task 1
1.2.2 Program Task 2
1.2.3 End Program Milestone
1.3 Testing Phase
1.3.1 Test Task 1
1.3.2 Test Task 2
1.3.3 Test Task 3
1.3.4 End Milestone
82
WBS – Steps/Factors to Consider
 Begin at the top using the scope statement

or by listing the major project deliverables
 Use the project team to develop the WBS
 Each element represents a single tangible
deliverable
 The work package is the lowest level of the
WBS
83
WBS Approach: Function
NUPLANT PROJECT
4 Technology 5 Project
1 Design 2 Contracts 3 Build Management
Transfer
3.1 Foundation 4.1 Process 5.1 Prepare

1.1 Concept Design 2.1 Permits
Equipment Budget
1.2 Final Design 2.2 Contractor 3.2 Walls 4.2 Training

Selection 5.2 Prepare
WBS
2.3 Cement/Steel 4.3 Process
3.3 HVAC
1.2.1 Prepare Details Supplies Validation 5.3 Determine
Risks
1.2.2 Check Details
3.4 Roof
1.2.3 Approve Details 5.4 Process
Changes
3.5 Utilities and
Services
5.5 Close
3.6 Landscaping Project
WBS Approach: Product
NUPLANT PROJECT
1 Product A 2 Product B 3 Product C 4 Product D 5 Project

Management
5.1 Prepare
1.1 Design Facility 2.1 Design Facility 3.1 Design Facility 4.1 Design Facility
Budget
1.2 Determine 2.2 Determine 3.2 Determine 4.2 Determine 5.2 Prepare
Equipment Equipment Equipment Equipment WBS
5.3 Determine
1.3 Build Facility 2.3 Build Facility 3.3 Build Facility 4.3 Build Facility Risks
1.4 Lay Out 2.4 Lay Out 3.4 Lay Out 4.4 Lay Out 5.4 Process
Production Line Production Line Production Line Production Line Changes
5.5 Close Out

1.5 Start Production 2.5 Start Production 3.5 Start Production 4.5 Start Production Project
WBS Approach: Project Life Cycle Phase
NUPLANT PROJECT
1 Initiating 2 Planning 3 Implementation 4 Closeout 5 Project

Management
4.1 Document 5.1 Prepare

1.1 Determine Site 2.1 Design Facility 3.1 Build Facility Budget
Lessons Learned
2.2 Determine 3.2 Install 4.2 Complete 5.2 Prepare

1.2 Purchase Land WBS
Equipment Equipment Punch List
2.3 Determine 5.3 Determine

1.3 Obtain Permits Staffing 3.3 Test Equipment 4.3 Pay Contractor Risks
Requirements
1.4 Arrange 2.4 Lay Out 5.4 Process

3.4 Train Employees 4.4 Close Accounts Changes
Funding Production Line
1.5 Select 2.5 Obtain 4.5 Prepare 5.5 Close Out

3.5 Start Production Project
Contractor Approvals Closeout Report
Exercise 4: Work Breakdown Structure
 Use the sample Project Charter provided by the facilitator

and your own knowledge and experience to prepare a WBS
for the House Renovation Project
87
Project Schedule
 Develop Schedule is the process of analysing
activity sequences, durations, resource
requirements, and schedule constraints to
create the project schedule
Purpose
 To determine whether it is possible to meet
the project objectives
 To track and communicate on project
progress and status
 To determine how possible changes could
impact on the project
88
Activity Sequencing
Identifying and documenting

dependencies among schedule activities
89
Precedence Diagramming Method
A B C
Start Finish
D E F
90
Dependency Relationships
A B FS: When A finishes, B may start
SS: When C starts, D may start

D
E
FF: When E finishes, F may finish
F
G H SF: When G starts, H may finish
91
Lag and Lead
 Lag
 A fixed duration between a predecessor
and successor
 Lead
 Overlap between successor and
predecessor (Negative lag)
92
Critical Path Network
Start Finish
 Critical path –
 Is the longest path to completion
 Is the path with zero float
 Represents the shortest amount of time in which
the project can be completed
93
Schedule Terminology
Activity – a work element that consumes time

and resources
Relationships – dependencies that exist
between activities
Early start/early finish – earliest that a task can
begin or finish based on the forward pass
Late start/late finish – the latest that a task can
begin or finish based on the backward pass
94
Schedule Terminology (Cont’d)
Float – amount of time an activity can be

delayed from its early start and/or early finish
without delaying the project finish date
Critical Path – longest path through network;
also the shortest possible duration of the
project
Lag/lead time – fixed delay/overlap between
activity start/finish
Predecessor – the “from” activity
Successor – the “to” activity
95
Typical Activity Node
Early Start (ES) Early Finish (EF)
ID Float Duration
Late Start (LS) Late Finish (LF)

Network Analysis
A 3 D 4
Start C 5 End
B 7 E 7
Network Analysis
0 3 12 16
A 3 D 4
0 4 7 7 12 12 16 16
Start C 5 End
0 7 7 12 7 14
B 7 E 7
0 7 9 16
Exercise 5: Project Network
 Use the information below to build a project
network
Activity Predecessor Time (Weeks)
A - 2
B - 3
C A 4
D A,B 5
E C,D 8
F C 3
G E 2
H F,G 3
Activity & Milestone Schedule
 Project team and customer know what is expected

and when
 Provides baseline for performance measurement
 Easily displays planned vs. actual progress
 Needed to determine accurate resource estimates
 Used by high-level management to track the
project
Task 1
Task 2
Task 3
Task 4
100
Gantt Chart
Gantt Chart: Critical Path
Exercise 6: Project Schedule
 Use the sample WBS provided by the facilitator and

your own knowledge and experience to identify the
sequence of activities and develop a preliminary
schedule for the project
103
Manpower Loading Plan - Example
Resource Name Weeks

1 2 3 4 5 6 7 8 9 10
Project Manager AA 10 10 10 20 20 20 20 10 10 5
Supervisor BB 40 40 40 40 40 40 40 40 40 40
Surveyor CC 20 - - - - - - - - -
Mason 1 DD 32 40 40 40 40 - - - - -
Mason 2 EE - - 40 40 24 - - - - -
Labourer 1 FF 40 40 40 40 40 40 40 40 40 16
Labourer 2 GG - - - 40 40 40 40 - - -
Task 1
Labourer 3 HH - - - 40 40 40 40 - - -
Task 2
Plumber 1 II - - 340
Task 40 - - 40 40 - -
Electrician 1 JJ - - 440
Task 40 - - 40 40 - -
Electrician 2 KK - - 24 40 - - 40 24 - -
104
Cost Estimating
Developing an approximation of the

costs of the resources needed to
complete project activities
105
What to include in your estimates
 Materials could  Human Resources

include could include
 Hardware  Customer resources
Software
Business partner


 Suppliers
 Supplier
 Facilities
 Technical support
 Tools
 Travel  Consultants
 Special equipment
 Shipping
106
Cost Estimating Methodologies
 Analogous
 Parametric
 Detailed (Bottom-up)
 Vendor Quotes
107
Types of Cost Estimates
Type Method Accuracy Phase Why Done
Rough Order Analogy -25% Project Selection

of Magnitude +75% Proposal decisions
Budgetary Parametric -10% Initiation Funding in

+25% budget plans
Definitive Bottom-up -5% Planning Details for

Estimating +10% procurement,
cost control
108
Cost Estimating: Terminology
 Contingency
 Management reserve
 Dayworks
 Prime cost sum
 Provisional sum
 Attendance
109
Project Risk
 An uncertain event or condition that, if it

occurs, has a positive or negative impact on
project objectives (time, cost, quality/scope)
 A risk has a cause and if it occurs, an effect
 Project risks include threats and
opportunities
110
Cause, Risk and Effect
Cause
(Fact or Condition)
Risk
(Uncertainty)
Effect
(Possible Result)
111
Risk Factors
All project risks are characterised by the

following three risk factors:
1. Risk Event – precisely what might happen to the
detriment or advantage to the project
2. Risk Probability – how likely the event is to
occur
3. Risk Impact or Amount at Stake – the
severity of the consequence if the Risk Event
occurs
112
Risk Management Process
START Plan Risk

Identify Risks
Management
Perform
Monitor Iterative Qualitative
And Risk
Control Analysis
Risks
Perform
Plan Risk Quantitative
Responses Risk
Analysis
Plan Risk Management
 The process of deciding how to conduct risk

management activities for a project
 To ensure that the level, type and visibility of risk
management are commensurate with both the risk
and importance of the project to the organisation:
 To provide sufficient resources and time for risk
management activities
 To establish an agreed-upon basis for evaluating
risks
 Should begin as a project is conceived and should
be completed early during project planning
114
Identify Risks
 Determining which risks might affect the

project and documenting their
characteristics
 An iterative process as new risks may
evolve or become known as the project
progresses
 Team (and external experts as required)
activity
 Identify both negative (threats) and
positive (opportunity) risks
115
Identify Risks: Tools & Techniques
 Documentation Review
 Present Project
 Previous Projects, Lessons Learnt Database
 Information Gathering Techniques
 Brainstorming
 Nominal Group Technique
 Delphi Technique
 Interviewing
 Root Cause Analysis
 Checklist Analysis
 Assumptions Analysis
 Diagramming Techniques
 Cause and Effect Diagrams
 System or Process Flow Charts
 Influence Diagrams
 SWOT Analysis
 Expert Judgement 116
Example – Risk Categories
Project
Project
Technical External Organisational
Management
Subcontractors Project
Requirements Estimating
and Suppliers Dependencies
Technology Regulatory Resources Planning
Complexity and
Market Funding Controlling
Interfaces
Performance
Customer Prioritisation Communication
and Reliability
Quality Weather Taken from PMBOK

Perform Qualitative Risk Analysis
 Process for prioritising the identified

risks for further analysis or action by
assessing and combining their
probability of occurrence and impact
 Takes into account other factors such
as time frame for response and
organisation’s risk tolerance associated
with project objectives of scope, cost,
schedule and quality
118
Risk Ranking Matrix
High B B A
Medium C C B
Low D C B
Low Medium High
A - Avoid
B – Mitigation strategy and contingency plan
C- Mitigation Strategy
D – Treat as project assumption
119
Perform Quantitative Risk Analysis
 Provides a numerical estimate of the overall effect of

risk on the objectives of the project, based on
current plans and information, when considering
risks simultaneously
 Results can be used to evaluate the likelihood of
success in achieving project objectives and to
estimate contingency reserves, usually for time and
cost that are appropriate to both the risks and the
risk tolerance of project stakeholders
 Presents a quantitative approach to making
decisions in the presence of uncertainty
120
Plan Risk Responses
 The process of developing options and
determining actions to enhance opportunities
and reduce threats to project’s objectives
 Includes the identification and assignment of
one person to take responsibility for each
agreed-to and funded risk response
 Addresses risks by their priority, inserting
resources and activities into the budget,
schedule and project management plan, as
needed
121
Strategies for Negative Risks
 Risk Avoidance: eliminate the risk or the condition
that causes the risk
 Risk Transfer: shifting some or all of the negative
impact of a threat, along with ownership of the
response, to third party
 Risk Mitigation: aims at reducing the probability
and/or impact of a risk to within an acceptable
threshold
 Risk Acceptance
122
Strategies for Positive Risks (1 of 2)
 Exploit: seeks to eliminate the uncertainty

associated with a particular upside risk by ensuring
the opportunity definitely happens. Examples:
 Assigning an organisation’s most talented resources to the
project to reduce the time for completion or to provide
lower cost than originally planned
 Share: allocating some or all of the ownership of the
opportunity to a third party who is best able to
capture the opportunity for the benefit of the
project. Example:
 Forming risk-sharing partnerships, teams, special-purpose
companies, or joint ventures, for the express purpose of
taking advantage of the opportunity so that all parties gain
from their actions
123
Strategies for Positive Risks (2 of 2)
 Enhance: increase the probability and/or the

positive impacts of an opportunity. Identifying and
maximising key drivers of these positive-impact risks
may increase the probability of their occurrence.
Examples include adding more resources to an activity to
finish early
 Accept: being willing/prepared to take advantage of
an opportunity if it comes along
124
Threat/Opportunity Response Strategies
Threat Generic Opportunity

Response Strategy Response
Avoid Eliminate Uncertainty Exploit
Transfer Allocate Ownership Share
Mitigate Modify Exposure Enhance
Accept Include in Baseline Accept
Monitor and Control Risks
 Process of implementing risk response plans, tracking
identified risks, monitoring residual risks, identifying
new risks, and evaluating risk process effectiveness
throughout the life of the project
 Risk reassessment:
 Periodic review to ensure that information remains current
 Occurrence of major or unexpected risk
 Need to analyse a complex change request
 Phase end review
 Project re-planning or major plan elaboration
 An ongoing process for the life of the project
126
Risk Log - Example
Risk Risk Risk P I Causes Response Action Action Date, Status Next Review
No. Summary Owner Deadline and Review Date
Description Date Comments
R01 Assessor Mary M M Family Mitigate Identify Mitigated
not obligation alternate
available
R02 Inadequate Jim H H No high Mitigate Action In progress
buy-in level Comm.
involvem Plan
ent
127
Exercise 7: Project Risk Management
 Identify your top ten (10) risk events for the

project and create a risk log detailing the risk
management strategy and relevant actions to
manage the risks
128
HSE Management Plan
Compliance with HSE Policy and Plan

Have an HSE kick-off meeting
Get commitment from all team
members
Track statistics & use trends for
predictive purposes
Implement measures to reduce risk of
HSE accidents/ incidents during project
Project Quality Management
 Plan Quality: The process of identifying quality
requirements and/or standards for the project and
product and documenting how the project will
demonstrate compliance
 Perform Quality Assurance: The process of auditing
the quality requirements and the results from quality
control measurements to ensure appropriate quality
standards and operational definitions are used
 Perform Quality Control: The process of monitoring
and recording results of executing the quality activities
to assess performance and recommend necessary
changes
Compliance with Contract ITP (Inspection and Test Plan)!!

Module 7
Execute and Control Project Plan
131


Communication Plan

PROJECT PLAN

132
If we continue the
way we’re going,
where will we end
up?
Performance Reporting
Collecting and distributing performance

information. This includes status
reporting, progress measurement and
forecasting.
134
Performance Reporting
 Status reporting – describing where

the project now stands
 Progress reporting – describing what
the project team has accomplished (e.g.
percent complete to date, percent complete to schedule, what
is completed vs what is in process)
 Forecasting – predicting future project

status and progress
135
Basis of Project Tracking
Project Baseline Current

 Budget  Time charge data
 Schedule  Actual costs
 Scope  Milestone status
 Others  Deliverables status
 Estimates to complete
Method
 Progress reports
 One-on-one meetings
 Project communication
136
Issues and Action Log
No. Project Area of Concern Date of Action (s) Person Date Status Comments
Report Required Resp. Required
1 New Delays in CEC 2012 Meet with EMA Jim 2012 April Open
building approvals April 03 Officer to 10
determine
information
requirements
Sample Project Status Report
Project Status Report for Period Ended: ……………………….
HSE Activities/Events (Positive & Negative):
Project Schedule Summary

Status Planned Completion Projected Percentage
Major Deliverable
R,Y,G Date Completion Date Completion
Key Activities Accomplished This Month:
Key Activities Planned Next Month:
Current Issues Report

Issue Potential Impact Corrective Action Responsible Deadline Date
Person
Current Risks Report

Risk Potential Impact Corrective Action Responsible Deadline Date
Person
Attachments: (1) Summary Tracking Gannt Schedule

(2) Earned Value Report
Earned Value Management
A method of integrating scope,

schedule and resources (cost), and for
measuring project performance. It
compares the amount work that was
planned with what was actually earned
with what was actually spent to
determine if cost and schedule are as
planned
Value of Earned Value
 Schedule Status Reporting

 Cost Status Reporting
 Forecasting
Earned Value Management - Example
Activity – Paint six (6) rooms

Room 1 Room 2 Room 3 Room 4 Room 5 Room 6
$200 $200 $200 $200 $200 $200
2 days 2 days 2 days 2 days 2 days 2 days
Planned time for completion – 12 days (2 days per room)

Planned cost $1200 ($200 per room)
Status at the end of Day 6

Room 1 Room 2 Room 3 Room 4 Room 5 Room 6
No. of rooms painted Two (2)

Actual Cost to end of Day 6 $800
Traditional Reporting
2400
2200
What can we say
2000 about the health of
1800 Planned Value (PV) this project?
1600 Actual Cost (AC)
Cost ($)
1400
1200
1000
800
600
400
200
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Time (days)
EVM Reporting
2400
2200
2000
Planned Value (PV)
1800 Actual Cost (AC)
1600 Earned Value (EV)
Cost ($)
1400
1200
1000
800
600
400
200
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Time (days)
EVM Analysis
2400
Planned Value (PV)
2200
Actual Cost (AC)
2000
Earned Value (EV)
1800 Project Cost Variance
1600
1400
Cost ($)
Project Schedule Variance

1200
1000
800 Cost Variance

600
Schedule Variance
400
200
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Time (days)
EV Methods – Fixed Formula Example
 0/100 Method
 Nothing is earned when activity starts but 100%
of budget is earned when completed
 Usually used for work packages less than 1
month in length
 50/50 Method
 50% is earned when activity starts and 100% of
budget is earned when completed
 Usually used for work packages less than 2
months in length
145
EV Methods – Procurement Example
 Procurement progress for equipment and materials

Supplier progress – an example:
Equipment Materials
Purchase Orders Placed 0% 15%
Suppliers drawings received and approved 15% -
Fabrication progress (monthly measurement) 70% 70%
Material delivered on site 15% 15%
Must use same method to phase budget 146

EVM Example
Dur Cost Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8
1 Complete Foundation 4w 100
Plan Value 0 100
Earned Value 100
2 Erect Walls 6w 100
Plan Value 50 0 50
Earned Value
3 Complete Roof 8w 100
Plan Value 50 0 50
Earned Value
4 Order/Receive Solar Panels 21w 100
4.1 Place Purchase Order 2w 0
Plan Value 0
Earned Value
4.2 Receive/Approve Drawings 4w 15
Plan Value 15
Earned Value
4.3 Fabricate Panels 12w 70
Plan Value 23 23 24
Earned Value
4.4 Receive Panels On Site 3w 15
Plan Value 15
Earned Value
5 Complete Elec/AC/Comms 8w 60
Plan Value 30 0 30
Earned Value
6 Complete Plumbing/Solar Panels 8w 70
Plan Value 35 35
Earned Value
7 Complete Finishes 6w 80
Plan Value 40 40
Earned Value
Monthly Plan Value 610 0 165 73 73 104 50 105 40
Monthly Earned Value
147
EVM Example
Dur Cost Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8
1 Complete Foundation 4w 100
Plan Value 0 100
Earned Value 0 0 100
2 Erect Walls 6w 100
Plan Value 50 0 50
Earned Value 0 50 50
3 Complete Roof 8w 100
Plan Value 50 0 50
Earned Value 0 50
4 Order/Receive Solar Panels 21w 100
4.1 Place Purchase Order 2w 0
Plan Value 0
Earned Value 0 0
4.2 Receive/Approve Drawings 4w 15
Plan Value 15
Earned Value 0 15
4.3 Fabricate Panels 12w 70
Plan Value 23 23 24
Earned Value 17 23
4.4 Receive Panels On Site 3w 15
Plan Value 15
Earned Value
5 Complete Elec/AC/Comms 8w 60
Plan Value 30 0 30
Earned Value
6 Complete Plumbing/Solar Panels 8w 70
Plan Value 35 35
Earned Value
7 Complete Finishes 6w 80
Plan Value 40 40
Earned Value
Monthly Plan Value 610 0 165 73 73 104 50 105 40
Monthly Earned Value 305 0 0 182 123 0 0 0 148 0
Change Control Management
 Define how changes to the project scope

will be executed
Scope Change Technical Specification Changes
Schedule changes
All changes require collaboration and buy in via the project sponsor’s signature
prior to implementation of the changes
Integrated Change Control System
 Formal process for requesting,

documenting and subsequent approval
of changes to the project
 Comprises project change log, project
change request, project impact
statement and approving authority
 Approved changes can change the
project cost and schedule baseline
150
Integrated Change Control System
 Coordinates changes across the entire

project
 Scope change control
 Schedule change control
 Cost change control
 Quality control
 Risk change control
 Contract administration
Change Control Form
 Includes:
 Type of change (scope, schedule, cost,
performance)
 Description and justification
 Impact if change is not carried out
 Additional risk management results
 Effect on schedule, cost, performance
(quality), scope
 List of required approvals
152
Example:
Change
Request
Form
Issue Management
 Issues are restraints to accomplishing the

deliverables of the project.
 Typically identified throughout the project
and logged and tracked through resolution.
Issue… already impacting the cost, time or quality
Rope not thick enough?

Module 8
Project Closeout
155


Communication Plan

PROJECT PLAN

156
Close-Out
 The last major phase of a project's life

cycle is the close-out. The key activity
in project closeout is gathering project
records and disseminating information
to formalize acceptance of the product,
service or project as well as to perform
project closure.
Close Project
 Comprises:
 Product verification
 Integrated activities to collect project records
 Analyse project success or failure
 Gather lessons learned
 Archiving and disseminating such information
for future use
158
Summary - Closing the Project
 Get client acceptance of deliverables

 Ensure that deliverables are installed
 Ensure that documentation is in place
 Get client sign-off on final report
 Conduct post implementation audit
 Celebrate success
159
Checklist of Activities for Close Out
Lessons Learned
 Lessons learned are used to document the

successes and failures of the project. The
Lessons Learned Report records the problems
and corrective actions for problems that may
have applicability to all projects. It is a
source of information to solve project
problems.
 It can be searched to see if other projects
have experienced similar problems and what
the corrective action resolved the problem.
Lessons Learned Log

Project Management Concepts and Applications

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Project Management

Concepts and Applications

Module 1 Project Management Framework

A temporary endeavour undertaken to

 Temporary – definite beginning and end

 Developing a new product or service

• Project Management is the application of

• Quality and Customer

• Completed within allocated • Zero health, safety and

Higher Lower Why?

5. Project Scope 5.1 Plan Scope Management 5.5 Validate Scope

6. Project Time 6.1 Plan Schedule 6.7 Control Schedule

7. Project Cost 7.1 Plan Cost Management 7.4 Control Costs

10. Project 10.1 Plan Communications 10.2 Manage 10.3 Control

• Project charter • Project mgmt plan • Direct/manage • Monitor/control • Close project

 Cost and staffing levels are low at start,

Phase 1 Phase 2 Phase 3 Phase 4

Opportunity and Risk Amount at Stake

Proof of First-build Second-build Final

Agile Project Management Traditional Project Management

Customer prioritized, time-boxed delivery Manager negotiated, scope-based delivery

Commitment management via feature Activity management via work breakdown

EHS Requirements Acceptance Phase Sign-off

• Business • Risk • Detailed • WBS • Progress • User Training • Close-out

• Name Project Team

• Identify Project Stakeholders

• Execute Project Plan Project deliverables/ results

• Name Project Team

• Identify Project Stakeholders

Determine Procurement Strategy Procurement Strategy/Plan

• Execute Project Plan Project deliverables/ results

• Monitor project progress Earned Value Reporting

 Use the information provided in the handout to prepare a

• Name Project Team

• Identify Project Stakeholders

Determine Procurement Strategy Procurement Strategy/Plan

• Execute Project Plan Project Deliverables/ results

• Monitor project progress Earned Value Reporting

 The responsibility matrix will document precisely the

Activity Ann Ben Carlos Bill Reshma

R = Responsible; A = Accountable; C = Consult; I = Inform

Forming Exchange of information; Tentative interactions; polite

Stakeholders and Communication

• Name Project Team

• Identify Project Stakeholders

Determine Procurement Strategy Procurement Strategy/Plan

• Execute Project Plan Project deliverables/ results

• Monitor project progress Earned Value Reporting

Individuals and organisations that are

 Key stakeholders on every project:

Identify the Develop cooperation

Identify, Analyse, Prioritise, Plan Response/Communication, Monitor & Control

 Classifies stakeholders in relation to

 What are their expectations and what benefits do

 Legal or statutory authority

 Unaware. Unaware of project and potential impacts

 Identify the key and other stakeholders in the House

• Name Project Team

• Identify Project Stakeholders

Determine Procurement Strategy Procurement Strategy/Plan