Construction Project Management Planning, Scheduling and Controlling ‘A project i a mission. Completing a project on time, keeping quality. costs resources and schedules inline with efficient planning isthe objective of this mission. Construction Project Management provides a thorough understanding of Ce te ot en ranean cree Pe een rence seus cea ttedi aa Vee ROE OU MC eu Rec Seon eee ed construction projectsin India, iraq, Saudi Arabia, Sultanate of Onan and UAE. It ESE ae rch eke cea aes Ce eee See ee nd Etec * The book contains 18 chapters, divided into four parts: ee aed uae ae a a ee project failures, planning, scheduling and controlling Se Ce eee ee aCe og activity duraton estimation, modelling and time analysis of CPM, PERT and Precedence networks. Preperation of timelmited and resources-imited poe Te ET Ul em Lt) EMER) LM eco) CRN Ce) Hay FES fee) Resource Planning: Strategies for planning manpower, construction materials, plant machinery, production costs and project budgets Grganisation of control systems, methodologies for controlling resource productivity, costs, time, codification of planning systems Sr ena ae cL ECan ees The book will be useful for project manages their team members, trainers, project consultants, architects and stutfents of civk engineering and business Douce Anant ee cer cu v4 hs te ene See : tanna nr Construction Project Management Planning, Scheduling and Controlling K K Chitkara Insitole of Constuetion Projec! Monagement ‘Gurgaon, Horyana, ledia @ ‘Toto McGrew-Hill Publishing Company Limited NEW ELIT ‘McGrao Hil Offices New Delhi New York St Louis San Francisco Auckland Bogoti Caracas Lisbon London Madrid Mexico City Milan Montreal San Juan Singapore Sydney Tokyo TorontoOn the 50th Year of India’s Independence Dedicated to the martyrs ‘who sacrificed their lines toffee the Indian sub-continent @ Tata McGraw-Hill 1 1998, Tata McGraw-Hill Pablshing Company Limited | Fifteenth reprist 2008, R/ZNCRYXDRAY [No past ofthis publication may be reproduced or dsyibued in any erm or by any means, without the rir writen permission ofthe publishers, This edition an be exported fom India only bythe publishers, ‘Tata «Sraw-Hi Publishing Company Lime. 1SBN-13:978.097-4620625 SBN: 07-82002-2 Published by te Tata McGraw-Hill Publishing Company Limited, 7 West Patel Nagar. New Deni 110 OOB, primed at Sai Primi Pack Pot Ld, AcIn24. Okla Industrial Area, Phase, New Delhi 110.020,Preface Construction Project Monagement, in its present form, is the end product of my over 25, ‘years experience at senior Jevel of planning and managing major construction project, both in Indio and the Middle East; and imparting instructions op the subject to practicing professionals, engineers and engineering student, Project is a mission, undertaken to create a unique facility, product/r service within the specified scope, quality, time, and costs. With the emerging global opportunities, projects ross geographical boundaries, corporate chansels, traditional egteme and cultural diverstie, ‘The knowledge areas needed to manage such projecta comprise projet management techniques, general management practices and technology-related subjects. The project management techniques of planning, scheduling and controlling are the tools and devices that bind the subject's knowledge areas. These techniques can be applied to all types of projects. This book covers their application in the field of construction. ‘The construction industry accounts for 6-9% of the Grose Domestic Product (GDP) of ‘many countries. The value of annual construction activity in the world exceeds one trillion dollars. Unfortunately, due to the secretive nature of construction business, knowledge sgsined in planaing, scheduling and controlling construction process is rarely disseminated. Consequently, the cost of inefficiency is being incurred as a recurring cost. Moreover, in various businesses, the rate of business failure of construction contractors is one of the highest. Ono of the reasons for this high rate of failures is the lack of knowledge. ‘There isa vast stope for improving performance through knowledge in the construction industry, where men, materials, machinery, money and management work together to build a facility. Perhaps, it is one of the rare industries in the world that can provide wach « vast seape far enst and time reduction at micro-evel This book describes the planning, scheduling and controlling of time and cost in construction projects, Though vital for performance improvement, this subject is often neglected. The subject covered in this book is divided into four parts spanning eighteen chapters and the text is illustrated with real life eases: * Construction Project Management Overview Chapters 1 and 2 provide an inteoduetion to the subject. They cover the nature of construction industry, describe onstruction project concepts and characteristics, nd outline project development process ‘While highlighting salient features of the project management process, they explain the causes for project failures, outline approach and importance of planning, scheduling ‘and controlling in construction projects, including the functions and role of the chief planner. + Time Planning Chapter 4 describes the methodology for breaking down project work into activities and for activity duration estimation, Chapters 4 and 5 cover the ‘methodology for modelling and time analysis of CPM, PERT and Precedence networks,vii Proce some SSS Preparation of time-limited and resources limited schedules are described in Chapter 6. + Resource Planning This part containing six chapters is devoted to the strategy for planning manpower, construction materials, plant and machinery, production costa land project budget. + Planning Control System This part containing six chapters deals with organization of control system; techniques for controlling resource productivity, costs and time; codification of planning aystem; and management of project information system using computers Bach chapter of Construction Project Management can be expanded into a volume, but its scope has been restricted to the present size by making trade-offs between technique laboration and their application coverage. A comprehensive bibliography has been included ‘o supplement information on each topic. A CD-ROM covering lesson plans and selftest exercises for on-line study of the subject covered in the book is being prepared, and is likely t» be available by the end of 1999 is book is designed for use by: + Project managers and their team members ‘+ Managers in corporate office dealing with the managment and execution of construction Projects + Academician, trainers and trainees connected with project management * Consultants and specialists like architects, engineers, quantity.surveyors, accountants and other managers associated with projects + Practicing engineers and students studying construction management and those new to the concept and techniques used in Project Management ‘The subjects covered mainly deal with contractor-oriented Project Management, as woll as client-directed Project Management, This book presupposes fundamental ‘engineering knowledge and familiarity with construction process and practices. My interest in project management kuowledge areas started in the early seventies, when as Commander Works Engineer of a Cantonment Construction Project, { conducted 8 number of project management courses to train the staff and engineer officers of the Military Engineering Services in India, Since then, I have been teaching and practising management of construction projects, Despite best efforts. the possibility of some errors in the book cannot be ruled out. I welcome readers’ comments to make improvements in this book. My e-mail addresses are chitkara@icpm.com chitkara@nda_vsnl.netin It is hoped that the subject covered in this book will. stimulate wider discussions and enable further development of project management techniques KK Curmaza Acknowledgements mn particular, I am grateful to the following: * Lt Gen. SN Sharma, PVSM, AVSM, retired Engineerin-Chief ofthe Indian Army, for launching me into the feld of project management, + Dr RA Maker, Managing Director of Makers Development Services, for permitting te to include case illustrations from 2000 Housing Units Projet at Baghdad, Tray + Col R N.Kanwar, for his interest and sound eounsel + Mr K'S Kharb, Executive Director, Som Dutt Builders, for allowing me to reproduce 2 table from his book, {ME Mohammad Yusuff Khan, for word processing the major part of the manuscript. + Management, staff and students ofthe National Institute of Construction Management. and Research, India, for their contribution, * Tata Consultancy Services Ltd and KLG Systel Ltd for providing computer software support. Last but not the least, am thankful to my family for their understanding and continuing ‘support which saw me through the extended working hours,Contents Acknowledgements ie PART CONSTRUCTION PROJECT MANAGEMENT: AN OVERVIEW Chapter 1 The Construction Project Management Framework 2 1.1 Construction Industry 3 1B 12 Construction Projects 8 Q LB Project Development Process MW 2 14 Project Management a 0 1.5 Main Causes of Project Failure 31 Esti © Typical Housing Projet 27 Chapter 2 Project Planning Scope © 21 Plan Development Process 35 9 22 Time Planning Process 39 2 23 Work Scheduling Process re 2 24 Resource Planning Process 46 9-25 Project Control Process 55 © 26 Importance of Planing, Scheduling and Controlling Projects 60 27 Functions and Role of Chief Planner 63 Exhibits 2. 2000 Housing Units Project, Baghdad, Scope of Work 40 2000 Housing Units Projet, Summary Schedule of Construction Tasks 442xii_Contets Cons 9 2000 Housing Units Project: Man-month Requirement and Exhibits: Berad Vole Foncse ah | et 2 2000 Haaing Una Projet: Etract from Worker Requirements or | Rapin Stalin Pre: Tine Anis CPM Nek 105 © Reidel Bang with Prat Cont 8 PRE Network of Ponping Statin Prot 138 Reade Be Seperate: Main Materia | Repaid 31 | 200 cing Unita Prot: Major Plan & Bgipmen Planed_69 ‘ 8 Peuidaton Contraction Sub Pratt Workers nul oent Chapter 5 Precedence Network Anclysis Bait for One Pondation Moule Content © Peundaton Consructon Sub Project Major Materia Requirement Bg. ErmtdncNstrork Anan PRO Fundamently 2000 Hong Ue Pe Rape Centna 67 : BES. Glamifenions Networks 168 a . two DAS Sentai Poe nwo i mn PRA oersue CP 1 Lu his 2 Preedne Never of Bf ounaton Conran 148 TIME PLANNING 8. Repeie Nara Proc Prendence Netw of Pour Re Foundation Cmation 158 2 Primary Sol Sructire Construction Precdece Network 162 Chapter 3 Project Work Breckdown 9 Sita Pend et of Pay She 3 Summay PreveneNeook of Edenton! Duly 2 81 Project Worktreakdown Levels n 8 Bao ete Ten Gane tes " 2 82 Determining Acts lnvelved n Ra Wate larer Tak Cnaricton rede Netor and © 33 Assessing Activity Duration be 1 Site Development Projet CPM and PNA Networks 174 34 Activity Cots and Earned Value % 8 acy Conan Pret Cine fC 5°35 Work Breakdown ofa New Cantonment Projet 36 Eyton Exhibits Chapter 6 Project Work Schedulin © 2000 Housing Unite Project: Subproject and Task Level Work Breakdown 14 om a 3 Coscucton of Rental Bug Work sreaknen Sticue 16 . oat ot Wok Scheduling ist 3 Panping Statin Broker Work breidoen Starnes 2 61 Paes re a ing ut 3 Pinning of a atory Prone durng Psy Stage Task Matrix 62 3 82. Bur Char Mend of Work Sees wa 2 Garcon of Sdncon Bane tts Mare Duran 84 2 Ef nee Mado Shain Repel Pros 195 3 Setorise Laan of Zen Content Cintacon Poca 98 3 65 Factors Aectng Work Scheduling ‘2 Intersector Construction Project External Service "100 66 Forecasting Inputs and Outputs au 8 Cantonment Conractn Prose Wer Sredten Stare 101 8 67 Sehetule Hierechy 216 Chapter 4 Project CPM/PERT Network Analysis o et «Prot: Work rn ite Development Projet: Work Programme QA CPM Network Analysis Fundamentals 108 Q Site Development Project: CPM Network "190 2g Bites fas Pte i 3 Sc ect hg dou Rte 48 PERT Network Analyte 0 et Scare eee ia Proc Resurces Limited Schedule 198 oo 2000 Hausing Unite Project: Summary Schedule of Bducation Buildings 197Coan iv Cones at © Rede Binge Foundation Work Pacheges Contin 0 98 Barth Excavating Bquipment 2 Gyelograph 204 0 94 Barth Cutting and Hauling Equipment 0 Residential Building Finishes Plan: Derived Using Line-of Balance a MH Barth Compacting and Grading Equipment BA Troi, 208 ‘ 8 88 Coneretng Plant and Equipment i 0 Reddo Bling Piihes Cont Derive Using Lie Blece © 847 Cranes for Materials Hauting sus Trae 207 © 200 Hang Uns Proc Reidel Building Monty Tere Eshbits Prelng Chet Site Development Project : Input-Output Cost Data 214 1 Finctional Classification of Construction Bquipment 277 Site Development Project: Forecasts of Input Costs and Workdone O Earth Excavating and Lifting Equipment 281 Value 318 8 Bana Out Aunt Pacers or Senay Tes 288 9 Bark Cong ond Hang Bipent 86 3 Gonman Bath Conpcing Bruen 280 8 Tapa! Major Conpocing gpm Salen Pass 289 Q Major Concreting Equipment 301 8 Mate Hndlng gpd 206 | RESOURCE PLANNING Chapter 10 Selecting Construction Equipment ‘Chapter 7 Planning Construction M Inpower a “ ve D 10.1 Task Considerations: ae © TL. Establishing Worker’ Productivity Standards m2 © 103 Cost Considerations 3 72 Sehoduling Construction Site Workers bso 3 103 Bauipment Engineering Considerations os 2 73. Pret Manpower Grauping 236 8 104 Equipment Acution Options a 2-74. Designing Workers Mnaacal Incentive Scheme 28 2 108 Summary of Equipment Seleton Considerations f Exhibits Exhibits © 2000 Hoang Unis Proc’ Baret from Wore! Bequremen Haig Contraction Proje: Mair lan ond Bgipment cael by Fowat 28 © Typieal Housing Project 297 + Chapter 8 Planning Construction Materials 3 81 ABC Classification of Construction Materials 246 0 82 Materials Usage Standard 253 2 83. Materials Provisioning Process 254 9 84 Planning Materials Inventory 259 2 85 Use of Operations Research in Materials Planning 213 Exhibits 3 Residential Building's Sub Project: ABC Classification of Direct Materials249 Miner Materials Mobilisation Stock 270 Chapter 9 Project Construction Equipment 2 8. Classification of Major Equipment 216 2 9.2 Barth Factor in Earthwork 216 Chapter 11 a a a a Contractors 315 Standard Methods of Determining Depreciation 322 Construction Bquipment Costing: Hourly Ouning and Operating (Cost Estimate 28 Plant Leasing Offer of @ Concrete Pump $85 Equipment Replacement Decisions Dota. 138 Planning Construction Costs ALA Classification of Construction Costs 112 Unit Rate Costing Standards of Resources 118 Work-package Standard Cost IIA Standard ‘S' Curve Forecasting Tool Exhibits Typical Indirect Costs Classification of Mult-natonal Compeny 347 Indirect Coste: Functional Breakdown 248 3a 349 357 363xvi Contents Cooks so Chapter 12 Plann Construction Budgets ‘2 142 Equipment Productivity Control at "9 vee © 148 Materials Produtvty Control ity 2 12:1 Structuring Responsibility Centres sort 2 144 Role of Construction Managers in Improving Productivity © 122 Sales Revenue B 8 128 Operating Expense Padget pa Exhibits Sag Gens Inflation, Escalation and Contingenios a 2 128 Benga, Bac 0 © Labver Produtisty Cmte Chart 428 © 128 Project Master Budget 388 , © 12.7 Importance of Project Budget 389 Chapter 15 Project Cost Control Exhibits O15. Cost Control eee al 2000 Housing Unite Project: Organiation © 153 Revenue or Sales Control a 3 i tag et emt toe se gs Dis Ct & 9 2000 Howsng Unite Prove: Budgeting Bo Source 378 2 IBS Projet Delgo tate bral 2 156 Risk Cost Management li Lv | Chapter 16 Project Time Control PLANNING CONTROL SYSTEM © 16:1 Time Progress Monitoring Methodology 0 2 162 Whatif Analysis ra Chapter 13. Project Control Methodology 2 188 he han cei ss 9 134 Control System Framework 394 2 132 Performance Parameters ‘to be Controlled 397 cree 3 183 Performance Base Lines nce Network 478 398 © Primary Schoo! Construction: Updated Summary Precde © 184 Performance Accounting Process 400 2 Updated Line Blanes Char 479 2 18.5 Monitoring Performance 405 2 Gpdcied Bor Sree ee Project 483 9 186 Information Communication an Eee ay cry bp ters rprating Changes 484 9 187 Coat! Bevis us 8 Pumpin Statin Pet Ons nd Tn Ss ng © 188 Prerequisites of Control Effectiveness ar es m Exhibits Chapter 17 Codification of the Planning System © Prokct Control System 995 Codification Approach eon ° Repo ad Unt Poke Typical Responsibly Conte Performance © 122 Wort Fake nod AetinTeticaton Coe a ports rces Codes 2 Foundation Construction Subsproeet 406 Shialcm ie ‘Accounting Codes a 8 Sa seep aeepetine Seed Projet Poranters Perfomance 414 8 174 Cost and Code a & Sit Staff Mobilisation Status Forecasts eth 2 124 Technical Documents at 528, 9 Typical Performance Contre Responsibly Matiz 418 118 Codtiation Effectiveneas Criteria Exhibits Chapter 14 Resources Productivity Control 2 fee Ui Pe et ne 7 es Wee, © 14.1 Labour Productivity Control Labelled Lit of Drawings for «@ Health Centre Building 526 420>evlt_Contets Chapter 18 Project Management Information System 181 PMIS Concept 0 182 PMIS Framework {183 Information System Computerisation © 18. User's System Specifications Development 1 18.5 Acquiring a System 1 186 Problems in Information System Management Q 187 Benefits of Computerised Information System Bibliography 590 537 sal 550 a2 84 a Construction Project Management: | An Overview Q_ The Consiruction Project Management Framework Q Project Planning ScopeThe Construction Project Management Framework 1.1 CONSTRUCTION INDUSTRY 1.1.1 Construction Scope Ever since the dawn of civilisation, man has indulged in some form of construction activity. Even in ancient times, man created architectural marvels which came to be regarded as the wonders of the world, for example, the Pyramids of Bgypt, the Great Wall of China, the Angkor temples of Cambodia, and the Tower of Babel. The pyramid of Giza, in Egypt contains more than 2,000,000 blocks, with an average weight of about 2.3 tons ‘each. About 100,000 persons worked on the pyramids for three to four months a year to build it in about 20 years. The Great Wall of China, built to provide protection against surprise enemy raids, is bout 6400 km long and its height and width at the top varies from 5 to 10 m. It has 20 m high towers placed every few hundred metres. The medieval times witnessed the construction of world-famous landmarks like Taj Mahal in India and the Leaning Tower of Pisa in Italy. A more recent example of man’s achievement in this direction is the Eiffel Tower in Paris. Tn the present day world, technical breakthroughs have revolutionized construction activity. ‘Modern construction areas include high-rise buildings, dams and irigation networks, energy conversion and industrial plants, environmental protection works, infrastructural facili like roads, bridges, railways, airports and seaports, satellite launching stations, onshore ‘and offshore oil terminals, ete, In the mid-eightie, the assessed annual construction in USA was to the tune of 350 billion dollars. During the same period, the annual value of construction works in western ‘Burope was around 300-400 billion dallars per annum. The total annual value of construction works in the world ranges from 1-1. trillion dollars, ‘The market of the construction business is both domestic as well as global.4 Consuction Project Management S Sertrsten Pres Novogen Home market Construction is an everlasting activity across the globe. Its profitability, 1ike of any other busines, uctuates acording to the law of demand and supply. In moet countries, construction activity constitutes 69% af the gross domestic product (GDP) and ‘constitutes more than half ofthe fixed capital formation as inrastracture and publi utilities Orgunination reeoaroee By + Planning resources » Seedling reeouroes + Organizing resources + Directing resources + Monitoning resources + Controlling resources Wiehin + Quality constraints + Time constraints * Cost constraints + Environment constraints 1.2.2 Project Categories Broadly, the major construction projects can be grouped into ‘Building Construction’, "Infrastructure Construction’ ‘Industrial Construction’ and ‘Special-purpose projects Building construction Building works include residential and commercial complexes, ‘ehucatinal and recreational faites, hospitals & hotels, warehouse and marketing faites. ‘Buildings’ constitute the largest segment of construction business. The building business serves mankind by providing shelter and services forts habitation, educational, ereatons, social and commercial needs The building works are mostly designed by the Architect Snpinering firms, and are financed by public and private sector and individual Infrastructure construction These are capital intensive and heavy-equipment oriented works which involve movement of large quantity of bulk materials like earth, steel and concrete. These works include dams and canals, highways and sirports raibways and bridges, ‘oilgas pipelines and transmission lines, large water supply and sewage disposal networks,110 Constucon Projet Monogement docks and harbours. nuclear and thermal power plants, and other specialist construction ‘activities which build-up the infrastructure forthe growth of the economy. These works are designed by the specialist engineering firms and are mostly financed by the Government! public sector. Industrial construction These works include construction of manufacturing, processing and industrial plants like steel mils, petroleum refineries and consumer-goods factories Industrial works also include connected utility services, environmental works and human needs facilities. These works involve heavy investment and are highly specialized. Industral Constructions are financed by government, public and private enterprises, Speciakpurpose projects These include environmental works, emergencies, remedial ‘works, installation and commissioning of equipment, and complex key operations Project classification Based on the completion time and value of works, various types of construction projects can be further classified as under: + Project completion time basis = Long duration projects (over 10 years) — Medium duration projects (3 to 10 years) = Short duration projects (few months to 3 years) — Special short-term projects (less than 1 year) Project value basis — Mega value projects (say over $1000 milion) — Large value projects ($100 million to $1000 million) = Medium value projects ($10 million to $100 million) Small value project ‘less than $10 million) 1.2.3. Project Mission Bach project has a specified mission or a purpose to be achieved. A construction project ‘mission is to create a desired facility like a housing eomplex or a fertilizer plant. Its not 4 routine activity like the regular maintenance of buildings or roads, Each project mission is unique in itself, and no two projects are ever alike. Projects differ from each other in one or more influencing factors such as client and contractors, quality ‘specifications, resources employed, responsibilities delegated and the project environments, Bach one of these factors may have decisive effect on the development of the project, In general, construction projects are high value and they employ huge resources of men, ‘materials and machines. Major works involve heavy investments say from e million dollar to few billion dollars, require high level of technology and need effective management of Construction projects are time bound. Each project has a predetermined duration with definable beginning and identifiable end. Its start point is the time when the elieat decides toundertake construction and commit his financial resources. Tt is eampletedas soon as the Conatucton Projects Management Framework 11 ‘mission is accomplished The time span between the start and the completion ofa project represents the project life el. The completion period or the life ofthe project variea from few months to few years. ach projects assigned predetermined objectives. These objectives quantify the measurable ‘rerult to be achieved for accomplishing the mission Generally, construction projects objectives fare stated in terms of project completion time, budgeted cost and stipulated quality ‘specifications, 1.2.4 Project Objectives ‘completion time and cot, * ‘Size denotes the number of tasks to be executed in project and each task is measured ‘n terms of quantities of work involved. ‘+ Complexity is measure of variety in the nature of tasks tobe executed is. complexity ‘increases as the numberof dissimilar task ineresse and it decreases ifthe tasks are repetitive (or similar in nature + Quality to be achieved in accomplishing tasks is stated in terms of standard specifications + Productivity, in its broader sense, measures the ratio of planned effort to produce a unit quantity of work divided by the actual effort employed to achieve this unit of work. + Completion time depends upon the speed with which the projet isto be executed. * Cost is the expenditure which the client has agreed to commit for creating. the desired construction facility. ‘The above six parameters are interdependent and interactive, that is, each parameter is 8 fanction ofthe other. For example, consider the effet of repetition on completion time of a project containing 12 tasks of specified quality and cost, with each taking a unit time to execute. If there is no repetition of task, that is, fall th tasks are dissimilar, sequential ‘and are taken one at a time, the earliest completion time forthe project would be 12 units But if four tasks can be repeated, each three times, as shown in Fig. 11, then the earliest completion time would be six units ‘With an increase in the repetition of similar tasks, there isan improvement in resource productivity due to the experience gained, which consequently results in reduced overall costs ‘The evaluation of interrelationship among the six project parameters is a complicated Drocess. However, in a given project, the scope of work in terms of size, repetition and. ‘quality gets specified and these parameters thus can be treated as constants. Productivity standards for each item of resources needed to execute a work in a given time is estimated, and this forms the basis for determining the time and cost ofthe project. The achievement of the two parameters, that of time and ens, depends upon the effectiveness and efficiency with which the project resources are managed. Therefore, in a projet with predetermined