MODULE 1 – REVIEW ON PM BASICS Project life-cycles (PLC)

1.1 PROJECT - Project life-cycles define scope-oriented

MANAGIN PROJECT processes:
- One of the oldest accomplishments - Should vary by project type and management
- Today it is the wave of the future complexity
- It is the way to do business:
o Not limited to the private sector
o Used to resolve social problems
o PMI suppor�ng 125 countries:
Aerospace, Automo�ve, Pharmacy,
Telecom… ETC. 1.2 PROJECT MANAGEMENT
- Project management is the art of direc�ng and
WHAT IS A PROJECT? coordina�ng human and material resources
- A project is a finite endeavor (having specific throughout the life of a project by using
start and comple�on dates) undertaken to modern management techniques to achieve
create a unique product or service which brings predetermined objec�ves of scope, cost, �me,
about beneficial change or added value. quality and par�cipa�on sa�sfac�on.
- This finite characteris�c of projects stands in - The applica�on of knowledge, skills, tools and
sharp contrast to processes, or opera�ons, techniques…, to meet or succeed stakeholders’
which are permanent or semi-permanent requirements from a project
func�onal work to repe��vely produce the - There are poten�al conflicts between the
same product or service. stated objec�ves with regard to scope, cost,
�me and quality, and the constraints.
The project value chain - These conflicts should be resolved at the onset
of a project by making the necessary tradeoffs
or crea�ng new alterna�ves.

Five Project Management Processes

1) Defining the goal of the project (ini�a�ng

process)
o Linking the project to the Product
o Balancing compe�ng demand with the
THESAURUS triple constraint
o Contract, nego�a�ng, proposal
- Problem: purpose, jus�fica�on, idea, 2) Planning a project
opportunity, mission, need o Integrated planning
- Project: ini�a�ve, subproject, task, program o The work breakdown structure
- Product: output, service, result, deliverable o Scheduling
- Outcome: business result, vision, goal, social o Time es�ma�ng and compressing the
sa�sfac�on schedule
Project Life Cycle o Cost es�ma�ng and budge�ng
o Project risks
3) Execu�ng the project: leading people
o Leading people who will work on.
o Organiza�onal design for delivering
projects
o Building the project team
o Organizing the support team
commitment coordina�on
o The role of project management
 o Establishing the theory of mo�va�on Stakeholders’ analysis
and their implica�on management by
- Stakeholders must be iden�fied, have their
objec�ves
needs and expecta�ons understood and
o Establishing prac�cal �ps for project
- Must be managed, and be communicated with
management communica�on
frequently in order to complete the project
o Organizing conflict resolu�on
successfully
4) Controlling the project
- Use a project stakeholder analysis worksheet
o Develop a baseline and performance
measurement Summary of key points
o Develop a performance measurement
system. - Project are how organiza�ons implement
o Managing �me, cost, quality, change, strategy
risks, issues, suppliers, customers and - Project management is a process approach
communica�on - Scope –oriented processes are concerned with
o Project reviews specifying and crea�ng the product
5) Comple�ng the project: closing - Work-oriented processes are concerned with
o Closing the contract iden�fying, describing, and organizing project
o acceptance ac�vi�es
o documenta�on - Keeping the “triple constraint + one” in balance
o Lesson learned is fundamental to success
o Intellectual propriety and ownership - Organiza�on provides standardized guidance
rights for one or both
- Guidance documenta�on should be updated
Project Management Processes on regular basis
- The project manager is responsible for
…everything

Project stakeholders

- These are individuals or organiza�on whose

interest may be affected by the project
MODULE 2: CONSTRUCTION CONTRACTS instead of bidding on each individual
item.
2.1 WHY DO WE USE CONTRACT IN CONSTRUCION?
o However, this doesn’t necessarily
- Establish �me frame mean that the en�re sum is paid in a
- Establish cost and payment provision single payment at the end of the
- Set fourth obliga�ons and rela�onship contract. A lump sum contract can
- Minimize disputes define a total price for the project, but
- Improve economic return of investment s�ll call for progress payments to be
made over �me throughout the job.
2.2 CONSTRUCTION CONTRACT o Payment is �ed directly to the
- Is a mutual or legally binding agreement percentage of work completed. A
between the contractor doing the construc�on s�pulated or lump sum contract is best
and the person or company who hires them to used on projects where the scope of
do the work work is incredibly clearly defined
- The agreement should contain several sec�ons o Ideal for projects with a defined
of clauses defining the scope, terms, and �meline and scope of work. If these
condi�ons of the project, including: are not clearly agreed upon, it can be
o What work will be done? difficult for builders to es�mate cost
o When will it start and be completed ahead of �me and avoid any over
by? scopes.
o Which par�es will par�cipate in the o Advantages
construc�on process?  Low risk to the owner
o The cost of labor and materials  Fixed construc�on cost
o How the par�es will communicate?  Minimize change orders
o Procedure for changing the scope of  Owner supervision is reduced
work or other parts of the agreement when compared to �me &
o How disputes will be resolved? material contract
 The contractor will try to
2.3 MAJOR CONTRACT TYPES (TRADITIONAL) complete the project faster
 Accepted widely as a
contrac�ng method
o Disadvantages
 Higher risk to a contractor
 Measuring the number of
changes is difficult
 Such contracts require
paperwork and records of
change orders from each
phase, and this means further
documenta�on is needed
- UNIT PRICE CONTRACT
o Contractor is paid for the actual
2.4 TYPES OF CONSTRUCTION CONTRACTS USED IN quan�ty of each line item performed
CONSTRUCTION PROJECTS as measured in the field during
- LUMP SUM CONTRACT construc�on. Each unit price includes
o Also known as a “s�pulated sum all labor, material, equipment,
contract” is a construc�on agreement overhead, and profit atribute to the
in which contractor agrees to complete scope of work.
the project for a predetermined, set o Are commonly used in:
price.  Public work projects
o Under a lump sum agreement, the  Engineering projects
contractor submits a total project price  Horizontal construc�on, such
as roads
 o Best suited for construc�on work  They cover all the expenses
consis�ng of repe��ve tasks that are related to the project, so there
easily measured are no surprises
o Advantages o Disadvantages
 It keeps the billing process  They may leave the final cost
simple, transparent, and free up in the air since they can’t be
of any ambiguity predetermined
 It offers immense flexibility  They may lead to a longer
during the course of the �meline for the project
project  Might lead to disputes when
o Disadvantages trying to recover construc�on-
 Unambiguity in project cost related expenses
and deadlines  Requires addi�onal resources
 Difficulty in pricing to reproduce and jus�fy all
 Delay in payments related costs
- COST PLUS CONTRACT - TIME & MATERIAL CONTRACT
o An agreement to reimburse a company o Specify the scope of a project but are
for the expenses incurred plus specific open-ended. They set out prices for
amount of profit, usually stated as a materials and hourly rates for labor,
percentage of the contract’s full price. and the client is billed at those rates for
o Primarily used in construc�on where as many hours and as much material as
the buyer assumes some of the risk is required to complete the project
also provides a degree of flexibility to o Labor rates: this should include the
the contractor. hourly wages for not only the laborers
o Types of Cost-Plus Contracts and subcontractors, but also
 Cost-plus award fee contracts administrators who manage the
• Allow the contractor project and billing
to be awarded a fee o Maximum labor hours: to guard
usually for good against runaway costs and protect the
performance client, a maximum number of labor
 Cost-plus fixed-fee contracts hours can be specified. Any excess
• Cover both direct and hours must be absorbed by the
indirect costs, in contractor
addi�on to a fixed fee o Materials markup: the client will be
 Cost-plus incen�ve fee billed for the actual cost of materials
contracts (including freight), plus a specified
• Happen when the markup, usually between 15% and
contractor is given a 35%
fee if their o Time and materials not-to-exceed
performance meets or clause (T&M NTE): a not-to-exceed
exceeds expecta�ons quote for the en�re project can be
 Cost-plus percent-of-cost included so the client knows the
contracts maximum cost of the project before
• Allow the amount of work begins
reimbursement to rise o Payment milestones: to protect the
if the contractor’s contractor’s workflow, in some cases
costs rise you may include agreed-upon
o Advantages milestones for the progress payments
 They eliminate some risk for o Advantages
the contractor  Simple
 They allow the focus to shi�  Ensures contractor will earn a
from the overall cost to the profit
quality of work being done  Easy to adjust to changes
  Easy to add or remove proposals that jus�fy an
resources when needs change inflated GMP, then u�lize low-
o Disadvantages skill labor and low-quality
 Client could run out of money materials to increase savings
before the project is complete on their end. In this scenario,
 Without a not-to-exceed the property owner isn’t
clause, workers have no ge�ng their money’s worth.
incen�ve to work efficiently o Used in very big project, and
 Rising labor prices could eat government project
into profit
2.5 CONTRACT WITH QUANTITIES VS CONTRACT
 Tracking costs is extra work
WITHOUT QUANTITIES
- GUARANTEED MAXIMUM PRICE (GMP)
CONTRACT - Contracts ‘with quan��es’ are priced on the
o The contractor is compensated for basis of drawings and firm bills of quan��es
materials, labor, and a contractor’s fee - ‘Without quan��es’ means a contract priced
o But the contract is subject to a on the basis of drawings and usually another
guaranteed maximum price, which is document, such as specifica�ons or work
the highest amount a property owner schedules
is willing to pay for the project overall.
Costs that exceed the maximum are 2.6 SUBCONTRACTOR
borne by whoever is performing the - Refers to the prac�ce of bringing in an outside
work company or individual to perform specific parts
o A typical GMP contract will generally of a contract or project
base its maximum on four variables: - General contractor typically organizes several
 a detailing of the project’s subcontractors that specialize in specific trades
tasks - Types of sub-contractors in construc�on
 direct costs of the project industry
 indirect overhead costs o Domes�c sub-contractor
incurred by a contractor o Nominated sub-contractor
 any profit specifica�ons a o Named or listed sub-contractor
contractor hopes to make o Work package sub-contractor
o Are most suitable for projects with o Labor supply contractors
costs that can be accurately assessed
at the outset and aren’t generally 2.7 SUPPLY CONTRACT
subject to major price fluctua�ons - An agreement by which a seller promises to
o Advantages supply all of the specifies goods or services that
 Financing can also be sourced a buyer needs over a certain �me and at a fixed
easier and more quickly, as price, and the buyer agrees to purchase such
lenders don’t like to deal in goods or services exclusively from the seller
uncertainty during that �me
 The contract imposes - Protects the rights of both par�es. The clients
incen�ve on contractors and know what to expect in terms of the goods
subcontractors to keep costs received and how they will be delivered. In
down and complete work on turn, the supplier knows what the client is
�me likely to need and how payment will be
o Disadvantages submited
 Contractor risk: contractors
know the maximum cost at the 2.8 STANDARD CONTRACT ARRANGEMENT
outset of a project. If they go
- A standard form contract is a pre-prepared
over, it’s their responsibility to
contract where most of the terms are set in
cover the excess cost
advance with litle or no nego�a�on between
 Threat of fraud: unethical
the par�es. These contracts are usually printed
contractors may try to submit
 with only a few blank spaces for adding names, responsibili�es, and rela�onships of the
signatures, dates etc. owner, contractor, and architect.
- This apply to each Request for Proposal
2.9 DESIGN BUILD CONTRACT
(RFP), Request for Bid (RFB) or other
- A design-build contract, some�mes called a requests for proposals or quotes (RFPs or
design/build, D-B, or D/B contract, is a project RFQs) that the private & government
delivery system o�en used in construc�on. issues
- The tradi�onal approach to construc�on
D. SPECIAL CONDITIONS
requires contracts with two separate en��es, a
designer and a contractor, a design-build - Special condi�ons describe specific
contract combines these two en��es, so only requirements and instruc�ons for the
one company is responsible for the designing work. Mostly they are addendums to the
and building contract for a project. general condi�ons. Special condi�ons
- Design-build contracts are becoming more include details and condi�ons regarding
popular to tackle home building and remodel the individual tasks or the whole project.
projects while saving �me and money
E. BILL OF QUANTITIES
- Design-build contracts save �me and money
and can prevent situa�ons where an owner - Bill of Quan��es is a document used for
may be caught in the middle of a dispute tendering that lists all work to allow the
between a contractor and a designer. contractor to price the work for which he
- Some advantages that owners enjoy from a or she is bidding which includes quan�ty
design-build contract include: and price for each work
o Unified project recommenda�ons
o Collabora�ve problem solving F. WORK SCHEDULE
o No blame-shi�ing between designer - A project schedule shows site delivery
and contractor date, start and finish milestones, project
o One point of responsibility dura�on, and other useful informa�on.
o Saving in �me and money Tasks are listed and grouped under specific
2.10 WHAT ARE THE BASIC CONTRACT DOCUMENTS? Work Breakdown Structure levels such as
civil, electrical, and mechanical works
A. CONTRACT AGREEMENT within a project schedule.
- A contract agreement defines the
agreement between the client and the G. DRAWINGS
contractor in which the par�es are - Drawings illustrate quan��es, loca�ons,
specified and their responsibili�es are dimensions, sizes, shapes, and forms of the
defined in the construc�on process. It is elements. These drawings can be
the essen�al document to which other architectural, electrical, mechanical,
contract documents atach or reference. landscape. Construc�on drawings include
B. SCOPE OF WORK DEFINITION eleva�ons, sec�ons, and profiles for the
building to be constructed.
- Scope of work should describe the project,
the project deliverables, and the statement H. TECHNICAL SPECIFICATIONS
of work. It must specify all tasks, du�es, - Technical Specifica�ons describe the
and limita�ons to get an�cipated results in materials, workmanship, and equipment
accordance with the project objec�ve. required for a task. Typically, technical
C. GENERAL CONDITIONS CONTRACT (GCC) specifica�ons describe the end product.

- The general condi�ons are an integral part I. List of Common Types of Construc�on
of the contract for construc�on for a large Insurance
project and they are incorporated by - Construc�on insurance provides coverage
reference into the owner/contractor for material, risks, natural disasters,
agreement based on the rights, employees.
- Performance bonds, specific types of
coverages, and all risk insurance should be
determined clearly in the contract in order
to protect both par�es and avoid disputes
MODULE 3: CONSTRUCTION SPECIFICATION and other interested par�es who closely
collaborated to develop this format.
3.1 SPECIFICATION
3.4 SPECIFICATION DIVISION
- SPECIFICATIONS are the writen or printed
descrip�on of the work to be done describing - Specifica�ons should be separated according
quali�es of the material to be used, the to work packages and types, for easier
equipment to be installed and the mode of understanding and distribu�on. For example,
construc�on (1.25) Specifica�on types can be separated as
- SPECIFICATIONS describe the project to be follows:
constructed, supplemen�ng drawings and 1) Civil
forming part of the contract, and describe 2) Structural
quali�es of materials, their methods of 3) Finishing
manufacture and their installa�on, and 4) Electrical
workmanship and mode of construc�on. 5) Mechanical
- They also provide other informa�on not shown 6) Plumbing and Sewerage
in the drawings, including a descrip�on of the 7) Landscaping
final result. 8) Quality
- Specifica�ons should complement drawings, 9) Health & Safety
not overlap or duplicate them, and normally - Specifica�ons can be divided into more
prescribe the quality standards of construc�on detailed Specifica�ons. For example, Standard
expected on the project. Civil Specifica�on can be divided on:
- They indicate the procedure by means of which o Earthworks
it may be determined whether requirements o Piling
are sa�sfied. Because specifica�ons are an o Shoring
integral part of the Contract Documents, they o Concrete
are considered to be legal documents, and o Reinforcement
should therefore be comprehensive, accurate, o etc.
and clear
3.5 SPECIFICATION & PROJECT MANUAL
3.2 PURPOSE OF SPECIFICATION
- Specifica�ons should include any necessary
- The purpose of construc�on specifica�ons is to codes and standards applicable to the project.
delineate the requirements regarding the - The specifica�ons should also include
materials, products, installa�on procedures descrip�ons and procedures for alternate
and quality aspects involved with execu�on of materials, products or services if necessary.
the work and fulfillment of the contract. - Contract Documents contain the bidding and
- Construc�on specifica�ons become a part of construc�on requirements, drawings and
the legal documents of the agreement and specifica�ons.
form a cornerstone of the project design. In - The project manual is the bound writen
fact, the construc�on specifica�ons override por�on of the Contract Documents.
the project drawings in the event of conflic�ng - The project manual is typically organized
informa�on according to Master Format.
- The project manual contains the following
3.3 CONSTRUCTION SPECIFICATION INSTITUTE (CSI)
elements
MASTERFORMAT
o Introductory Informa�on
- The Construc�on Specifica�ons Ins�tute (CSI) o Bidding Requirements
MasterFormat® is the most widely used o Contrac�ng Requirements
standard for organizing specifica�ons for o Specifica�ons
building projects in the United States and o Appendices
Canada. Its format of organiza�on is widely - Introductory Informa�on
recognized. CSI is a na�onwide organiza�on o Title Page
composed of architects, engineers, o Cer�fica�ons Page
manufacturers’ representa�ves, contractors, o Table of Contents
 o Guide to Use of the Project Manual 140°F and is corrosive (pH of
(used by many specifiers) 3).
 Example of Performance
3.6 SPECIFICATION & APPENDICES
Specifica�ons “…Aluminium
- Specifica�ons Plant should produce 100,000
o Division 01 – General Requirements tons of aluminium per one
o Divisions 02– Technical Specifica�ons year…”
- Appendices b) Prescrip�ve Specifica�ons
o Appendices are not included in Master o Prescrip�ve specifica�ons convey the
Format but they are useful for requirements of a project through a
including copies of informa�on, detailed explana�on of the materials
reference documents, exis�ng that the contractor must use, and the
condi�ons, photographs or example means of installing those materials.
forms for use in administra�on. o This type of specifica�on provides
more certainty regarding the final
3.7 ORGANIZATION OF SPECIFICATION product composi�on than the
- It is important for the specifica�ons sec�on of performance specifica�on, and is very
the project manual to be arranged in an orderly frequently used for highly complex
and comprehensive format. por�ons of a project.
- If the sec�on is organized clearly and follows a o This type of specifica�on will typically
defined procedure, it is less likely that the be formated in a manner similar to
specifier will overlook or forget something. the following sec�ons:
- It will also help the contractor, es�mator,  General: This sec�on will
inspector, or other reviews find informa�on typically contain references to
more easily. na�onal/interna�onal
standards, design
3.8 TYPES OF CONSTRUCTION SPECIFICATIONS requirements, a list of
a) Performance Specifica�ons required submitals from the
o A performance specifica�on is a contractor to the
document that specifies the architect/engineer, quality
opera�onal requirements of a control requirements and
component or installa�on. product handling
o Moreover, the performance requirements.
specifica�on tells the contractor what  Products: This sec�on will
the final installed product must be describe, in detail, the various
capable of doing. products required for the task
o Example of Performance Specifica�ons covered by the specifica�on
 A performance specifica�on along with the individual
may be used in the structural and performance
construc�on of an industrial requirements of each product.
pumping system. The  Execu�on: This sec�on will
specifica�on would provide a explain how to prepare the
required pumping rate (say materials and conduct the
500 gallons per minute), a installa�on, including the
required pressure (20 psi) and tes�ng requirements to be
the difference in height followed.
between the pump and the o Example of Prescrip�ve Specifica�ons
final des�na�on (+40 feet).  “…. Waterproof Concrete
The specifica�on will also state Structures
that the liquid to be pumped  Waterproof concrete shall be
will be at a temperature of mixed so as to produce a
dense workable concrete
represented generally by 30
 mm slump. It shall be 3.9 GENERAL SPECIFICATIONS
mechanically vibrated to give a
- They are also known as Brief Specifica�ons and
dense and homogeneous
used to show aspect, standard, and type of
mass in all parts of
construc�onal work.
construc�on par�cularly
- In general specifica�ons, nature and class of
around joints and water
works and names of materials that should be
bars….”
used are described. Only a brief descrip�on of
c) Proprietary Specifica�ons
each and every item is given. It is useful for
o Proprietary specifica�ons are those
es�ma�ng the project. The general
that require the use of a single
specifica�ons do not form a part of contract
approved product type for any
document.
par�cular installa�on.
o Proprietary specifica�ons are o�en
used in cases where there is exis�ng
equipment or installa�ons already on
site. In general, proprietary
specifica�ons are descrip�ons of
materials that either cite a specific
brand name or are writen so
restric�vely that only one vendor or
manufacturer can supply the desired
items.
o Example of Proprietary Specifica�ons

3.10 DETAILED SPECIFICATIONS

- The detailed specifica�ons form a part of a

contract document.
d) Construc�on Specifica�on Standards - The detailed specifica�on is a document
o Construc�on specifica�ons used in the that specifies the method of
United States typically conform to the measurement, method of execu�on,
guidelines of the Construc�on method of prepara�on, propor�on of
Specifica�ons Ins�tute (CSI), who have materials, quality, quan��es of materials,
created a specifica�ons index en�tled etc.
Master Format. - Detailed Specifica�on Of Plastering
o The Master Format index groups Cement Mortar
specifica�on sec�ons into easily o 1- Materials
iden�fiable disciplines using a six-digit  The materials in the
system with digits in groups of two, such plastering cement mortar
as: 01 24 30. are cement and sand in a
o The first two digits denote the primary specified propor�on. The
sec�on (of which there are 48 sec�ons). sand is of good quality and
For example, all the items regarding must be free from dust
concrete start with the digits 03. and other organic
o The second two digits iden�fy the main materials.
headings and subheadings. In this case,  In the plastering cement
look at main headings Concrete mortar, the cement shall
Reinforcing (03 20 00) and Cast-in-Place be fresh portland cement
Concrete (03 30 00) which can be broken according to the I.S. code.
down into Reinforcement Bars (03 21 00)  During the prepara�on of
and Structural Concrete (03 31 00). mortar, the potable type
of water shall be used.
 o 2- Prepara�on Of Mortar and published in Standard
 During the prepara�on of Specifica�ons
mortar, the cement and
3.11 PRINCIPLES ON WRITING SPECIFICATION
sand are thoroughly mixed
without water �ll uniform - A complete descrip�on of the construc�onal
color is obtained. material must be included such as type of
 A�er the uniform color is materials & size, the ra�o of each component
obtained a required in concrete or mortar and methodology of
amount of potable water mixing and material treatment.
is added into the dray - Workmanship must describe the method of
mixed mortar and mixed work, different steps of the work, surface
the mortar thoroughly prepara�on, surface compac�on and method
un�l a uniform of curing, etc.
consistency is obtained. - Tools and Plants must also be described during
 The prepared mortar shall wri�ng specifica�ons in the order they can be
be used within the ini�al organized before commencing the
se�ng �me of cement construc�onal project.
and this ini�al se�ng �me - Protec�on of new work must also be described
for Ordinary Portland during wri�ng Specifica�ons including the
Cement is a minimum of protec�on of digging, ruling, masonry,
30 minutes. concrete work, and plastering, etc.
o 3- Prepara�on of Surface - They must be explained enough to submit its
 The brickwork surface purpose by using small and complete
which is going for the sentences with language with accurate
plastering work must be grammar.
cleaned, brushed, and - The clause of specifica�on must be
keep the surface wet for endeavored to keep the organiza�on of
two days before the condi�ons of work as per organiza�on of real
plastering. construc�onal work and must neither confer
 In the case of cement each other not repeated
concrete surface, the face
is lightly roughened,
cleaned, and the surface is
wet for two days before
the plastering.
- Types of Detailed Specifica�ons
o b.1 Standard Specifica�ons
 This type of Specifica�on
of construc�onal work is
writen down and
published in departments
of engineering that will
eliminate the need of
wri�ng Specifica�ons in
details. These
Specifica�ons are merely
referenced when
required.
o b.2 Special Specifica�ons
 Some specifica�ons of the
construc�on work are of
the special form, and they
are not officially writen
Module lV- Organiza�onal Structures in Construc�on public works. They may subcontract large
Projects por�ons of the project to other companies.
- Owner-builders: Many of these businesses
Why Organiza�onal Structures important in
build homes for their personal ownership.
Construc�on Projects?
- Real estate developers: These companies build
- A construc�on project organiza�onal structure to sell before or a�er comple�ng construc�on.
has to help ensure on-�me project comple�on
Organiza�onal Structure of a Construc�on Company
within the set budget. An effec�ve project
organiza�on leaves project team members free - A construc�on company’s organiza�onal
to decide on the technical aspects of their work structure refers to both the arrangement of job
while ensuring that they act within the roles and the repor�ng and opera�onal
project's �me and cost constraints. rela�onships between and within these roles.
- Func�onal- Project managers need to control - A variety of roles and responsibili�es including
the project's scope and costs, as well as marke�ng, purchasing, human resources,
handling project scheduling. finance, pre-construc�on tasks and
- Technical-Construc�on projects include a construc�on opera�ons.
technical component that requires technical - Most o�en make such a corporate structure
training, exper�se and professional organized according to departments, func�ons
qualifica�ons. or areas of responsibili�es most appropriate to
- Quality- Quality control is a specialized organiza�onal design.
func�on that usually has an independent
structure parallel to the project organiza�on. 1. Func�onal Organiza�onal Structure
Two requirements for quality control are that o Similar to a hierarchical organiza�onal
the quality manager reports directly to project structure, a func�onal org structure
management and that the personnel from the starts with posi�ons with the highest
quality control department have direct access levels of responsibility at the top and
to everyone carrying out work on the project. goes down from there. Primarily,
though, employees are organized
The Factors to be Considered when Designing an
according to their specific skills and
Organiza�onal Structure
their corresponding func�on in the
company. Each separate department is
managed independently.
o This is a form of departmentaliza�on in
which everyone engaged in one
func�onal ac�vity such as engineering
or marke�ng or manufacturing, is
grouped into one unit.
o Advantages:
 Allows employees to focus on
their role.
Varying Structure of a Construc�on Company
 Encourages specializa�on
The structure of a construc�on company will vary  Help teams and departments
depending on the size of the company and the kind feel self-determined
work they do. There are several different types of  Is easily scalable in any sized
construc�on companies, each with different company.
organiza�onal structures: o Disadvantages:
 Decisions involving more than
- Small renova�on contractors: These
one department pile up at the
businesses perform small home altera�ons
top management level and are
and commercial work without a large crew.
o�en delayed.
- General contractors: These companies may
 Work specializa�on and
specialize in new buildings, altera�ons or
division of labor, which are
stressed in a func�onal
 organiza�on, produce rou�ne,
non-mo�va�ng staff tasks
 Difficult to iden�fy which
sec�on or group is responsible
for certain problems.
 There is limited general
management training for staff.
 Communica�on and
coordina�on between the
departments are o�en poor.
3. Dedicated Project Team Organiza�onal
Structure
- The dedicated project team is the crea�on of
independent unit and operate separately of its
parent organiza�on
- Advantages:
o The dedicated project team remains
intact with the project
2. Matrix Organiza�onal Structure
o Par�cipant devote their full aten�on
- It is a structure with two (or more) channels of
to the project
command, two line of budget authority and
o High level of mo�va�on and
two sources of performance and reward.
cohesiveness because par�cipants
- For example, an engineer may regularly belong
share a common goal and personal
to the engineering department (led by an
responsibility toward the project and
engineering director) but work on a temporary
its team.
project (led by a project manager). The matrix
- Disadvantages:
org chart accounts for both of these roles and
o Created an extra unit to complete
repor�ng rela�onships.
project is expensive
- Advantages:
o Resources are affected on a full-�me
o Allows supervisors to easily choose
basis
individuals by the needs of a project
o The transi�on back to the par�cipant
o Gives a more dynamic view of the
to their original func�onal department
organiza�on.
could be difficult
o Encourages employees to use their
skills in various capaci�es aside from
their original roles
- Disadvantages:
o There is a frustra�on and confusion
from dual chain of command.
o There is a high conflict between
divisional and func�onal interest.
o There are many mee�ngs and more
discussion than ac�on.
IDEAL CONSTRUCTION COMPANY ORGANIZATIONAL
o There is a need for human rela�ons
CHART
training for key staffs and managers.
o There is a tendency for power - The construc�on company org chart is a
dominance by one side of matrix. graphical depic�on of the roles and structure
of the organiza�on. Using an org chart, staffs
and stakeholders can clearly recognize the
opera�onal rela�onships, so that they know
how does the company work.
- Generally, a construc�on company contains
basic func�on units including: HR, Purchasing,
 Project, Engineering, Financial, and Marke�ng the items with correct prices
department. and quali�es.
o Project Department
 Project department is
responsible for scheduling and
managing for each project.
The project manager needs to
decide the budget, assign
employees and their du�es to
complete the job, oversee the
safety of workers. They need
to make sure the construc�on
work can be well completed
according to the contract.
- The specific roles and responsibili�es of each o Engineering Department
department:  In general, the engineering
o Financial Department department is responsible for
 The financial department is the planning of the
responsible for management construc�on project. This
of the company’s cash flow includes conduc�ng surveys,
and ensuring there are engaging in research,
sufficient funds available to analyzing results, planning the
meet the day-to-day construc�on and suppor�ng
payments. all technical issues during the
project.
o Marke�ng Department
 The marke�ng department is
responsible for market
research, marke�ng strategy,
o Human Resources Department sales, adver�sing, promo�on,
 The H&R department is pricing, product development,
responsible for staff and public rela�ons ac�vi�es.
recruitment and training,
record keeping, compensa�on
and benefits, insurance, and
employee rela�ons

o Purchasing Department
 Purchasing department’s main
role is purchasing supplies and
materials used in the projects
and company daily needs.
They need to compare among
different suppliers and finding