CONSTRUCTION PROJECT

MANAGEMENT

SJB School of Architecture

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Introduction-CPM
• Construction project management could be defined as the
direction, regulation, and supervision of a project from early
development to completion.
• The ultimate goal of construction project management is the
full satisfaction of the client’s demands for a viable project
both in terms of functionality and budget.
• There is a wide range of construction project types, such as
commercial, residential, industrial .
Importance of CPM
• Construction project management is a complex field, requiring
knowledge in many different areas like finance, law, business,
and more.
• Construction project management often referred to as CM, is
a professional service. It uses specific project management
techniques that oversee the planning, design, and of course,
the construction of a project from start to finish. The most
important aspects to control in the construction of our time,
cost and quality.
The 4 Stages of Construction Project Management

There are four parts to designing a construction project. It’s the responsibility
of the project manager to make sure your design meets with building codes
and other regulations.
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Fundamental Principle of project Management
• Project Objective and Goals
• Budgeting
• Scheduling and Estimating
• Team Responsibilities
• Milestones
• Manage Changing Priorities and Business Goals
• Accountability and Responsibility
• Retrospect and Measure Success
Project Objective and Goals
• The first principle of project management is understanding
your objective those goals need to be specific, measurable,
achievable, relevant, and timely.
• In addition to outlining what you hope to accomplish in your
project, determining your objective will also help you
understand what deliverables you’ll need to complete to
achieve your goals.
• This key concept of project management helps ensure
everyone is on the same page and there’s a clear focus and
direction for your project before it begins.
BUDGETING

• Once you determine your project objective and goals, you’ll

begin planning how to accomplish your mission.
• At this point, you’ll begin to discover constraints that will
impact your ability to achieve your project the way you may
have planned. One of those big constraints is your budget.
• The budget will play a major role in your overall project scope,
so this principle of project management should not be ignored
or overlooked.
SCHEDULING AND ESTIMATING
• Another constraint that you’ll need to consider is time, so it’s important to develop
a comprehensive calendar and work estimate for your project.
According to Project Management , your schedule should focus on when the
activities will be done, not when they must be done. Therefore, you are
considering factors such as holidays, vacations, bandwidth, and prior project
commitments.
• Developing a detailed schedule can help you realize the actual man hours you’ll
have at your disposal, and maybe the difference in scope between a fully designed
solution or just a minimum viable product.
• This fundamental principle of project management is essential to ensure you’re
not overcommitting your team to complete tasks in an unrealistic timeframe that
are vital to your project.
TEAM RESPONSIBILITY
• The next principle of project management is to define individual
responsibilities among your team. Creating a checklist of responsibility ,
whether in a project management software, excel file, or gantt chart, is
essential for this practice.
• Mapping out tasks provides a comprehensive view of the smaller things
that need to be accomplished and in what order for you to complete your
project.
MILESTONES
• Milestones help signify the completion of a specific portion of your project
• In addition to providing a transparent way to track progress, milestones
can help increase team morale by calling out team member achievements.
This is extremely beneficial during long, complex, or difficult projects.
Manage Changing Priorities and Business Goals
• The best way to master this project management principle is remaining
flexible and ready to change your project management plan when
something unexpected happens.
• This could come from an unexpected budget cut, a new direction from the
executive team, or urgent request that drains some of your team’s
bandwidth.
Accountability and Responsibility

• One of the best ways to be successful in this practice is through constant

communication.
• Team members will need to communicate with each other about what
they need and when they need it.
• Project managers will need to communicate with stakeholders to provide
necessary updates on the status of projects, and they’ll also need to relay
any information or feedback to their teams so there are no surprises.
Retrospect and Measure Success

• A project management team is like a machine. If there are kinks or faults in

the process, then the machine will not run as effectively. For this reason,
retrospectives are an important principle of project management that
should not be ignored.
• In addition, you should calculate the return on investment (ROI) of the
projects you complete. In simple terms, if the cost of investment was
higher than the return from the project, it was not successful. By
understanding which projects are successful and which are failures, you
can make changes to upcoming initiatives to increase future success.
Types of construction projects
There are a variety of different types of construction projects, depending on
the different construction sectors. There are two sectors in construction:
residential and commercial. Depending on the sector, there can be up to four
different types of projects:
• Residential home building and renovation
• Heavy industrial construction
• Commercial and institutional construction
• Engineering construction
That means there is a wide variety of types of construction projects that
require construction management in order to be successful.
The Role of construction project manager
A construction project manager is responsible for planning, coordinating, budgeting
and supervising projects from the beginning to the end. In short, a construction
project manager has to take care of the following
• Estimate and negotiate project costs
• Formulate budget
• Create schedule and work timetables
• Manage work orders
• Determine which methods and strategies are appropriate for the project
• Communicate with clients and stakeholders, re. budget, progress, etc.
• Lead or interface with workers, teams and other construction professions on
technical and contract details
• Work with building, construction and regulatory specialists
The main principles of construction project management

• It’s no secret that construction project management is a quite

complicated field. However, there are some fundamental principles that
anyone who just entering the field should keep in mind.
• Everything starts with the project owner reaching out to contractors in
order to ask for bids. The managers of construction that are interested in
carrying out the project will, then, offer a bid to the owner. The bid will
include details about the amount of money that the project owner has to
offer for the project to be completed. There are two types of bids:
The main principles of construction project management

• 1. Open bid: Open bids are inextricably connected to public projects. It’s
an auction where any contractor is welcome to make his offer. An open bid
is normally openly promoted.
• 2. Closed bid: Private projects are based on closed bids. The project owner
sends a bid invitation to a specific number of contractors.
Contractor: Role and duties
The construction project manager chooses the contractor of the project as
soon as the design is completed. In some cases, this can happen even when
the project is still in development. The selection is based on an auction
process with various contractors. There are three prevailing methods based
on which a contractor is picked:
1. low-bid selection,
2. best-value selection, and
3. qualification-based selection.
After receiving all the bids for the particular project, the owner proceeds to the
selection of the contractor through one of the following three methods:
• 1. Low-bid selection: In that case, the main focus of interest is the price. The
construction management companies present the lowest bids they are open to
complete the project for. The project owner selects the lowest offer and proceeds
with it.
• 2. Best value selection: This process puts weight both on qualifications and price.
The owner is choosing the most appealing bid both in terms of quality and money.
• 3. Qualifications-based selection: The present method is adopted when
qualifications are used as the only criterion for the selection of the construction
management company. A request for qualifications (RFQ) is helping the owner in
order to acquire further information regarding the experience and the project
organization competences of the contractor.
Contract types

When the selection procedure is completed, the type of contract has also to
be agreed upon. Normally, there are four contract types:
1. Lump-sum: The most popular kind of agreement. The owner and the
contractor set a fixed price for the whole project. The price remains the same
even if the total cost of the project is proven to be higher lower than the
agreed amount.
2. Unit price: When there are objective difficulties in deciding the final price in
advance, this method is preferred. The project owner offers materials with a
particular unit price in order to reduce spending.
Contract types

3. Cost-plus fee: A cost plus fee contract is the best contract agreement for
contractors. On top of the project’s total cost and the agreed fixed fee for the
contractor, any other unpredictable expenses have to be covered by the
owner after in the end.
4. Guaranteed maximum price: The last type of contract doesn’t differ much
than the previous one. The key difference is the maximum set price which
can’t be surpassed in this case
Project Management process

The bidding process is over and now it’s time for all the people involved in the
project to make it happen. In general, every project has a standard life cycle,
regardless of its special characteristics. This structure could be outlined in
four basic stages:
Project Management process

1. Project initiation
• During the first phase, the objective and the feasibility of the project are
determined. This is a crucial stage of the whole process since it can
indicate whether this project is a good opportunity or not. If necessary, a
feasibility study is conducted and based on its results a recommended
solution/plan is issued.
• Once everything is decided, a project initiation document (PID) is created.
The project initiation document provides the groundwork for the
construction plan and is one of the most vital artifacts in project
management.
Project Management process

2. Planning phase
• The project planning stage is where the team singles out all the work to be done. It’s an
ongoing activity almost to the end of the project. The main priority, during the planning
phase, is to plan time, costs and resources for the project. Based on those requirements
the team is developing the strategy that has to be followed.
• This is also known as scope management. Another important document that has to be
prepared is a work breakdown structure (WBS), a checklist that divides all the necessary
work into smaller more functional
• As soon as the budget, schedule, and work have been defined the project is almost
ready to begin. The next step of this really important process is risk management. At
this point, the team should examine all the potential threats for the project and come
up with solid solutions. Finally, a communication plan is, also, necessary as it will
establish an efficient information flow between the project stakeholders.
Project Management process

3. Execution phase
• In the execution phase, the construction project management plan is put
to work. As a rule, this phase is divided into two main processes: the
executing and the monitoring and controlling. The project team makes
sure that the required tasks are being performed. At the same time,
progress is monitored and changes are being made accordingly.
• As a matter of fact, a project manager spends most of the time in the step
of monitoring and depending on the information that who gets redirects
the tasks and maintains the control of the project
Project Management process

4. Closing phase (closure)

• The final stage of the project represents its official completion. The project
manager is evaluating what went well and refers to any potential failures.
In the end, the team conducts a project report, calculates the final budget
and offers information about any tasks that remain unfinished.
• The project report in combination with the analysis of the potential
failures will be valuable feedback for future construction projects.