Project & Construction Management -OD74/CED 75

Construction Team:

Each of three principle parties in a project has a role to fulfil in the various phases of design
development and construction. A team approach between the owner, designer and contractor
must be created within cooperative relationship to complete the project in the most efficient
manner. Too often an adverse relationship develops that does not serve the best interest of
anyone.

Role and Responsibility of Construction Team

1. Owner

The owner is responsible for setting the operational criteria for the completed project. For
example school, office units or residential project. Owners also need to identify their level of
involvement in the project, e.g. the review process, required reports and level of approval.
The owner is also responsible for setting parameters on total cost, payment of cost, major
milestone and the project completion date.

2. The Designer

The designer is responsible for producing the design alternatives, AutoCAD drawings and the
specification that meet the need of the owner. In addition there may be other duties that are
delegated to the designer by the owner. e.g. on site or regular inspection, review of shop
drawings and in some instance the acquisition of land and or permits. It is duty of the
designer to produce a project design that meets all federal, state and local codes, standards
and environmental and safety regulations. In addition budget plan for project should be
prepared and correlated to the construction schedule for achieving a project on target time.

Generally the designer are not obligated under standards form contracts to guarantee the
construction cost of a project, although there have been some cases where the designer has
been held legally responsible for the construction price. As part of their design responsibility,
designer usually prepared and estimate of the probable construction cost for the design they
have prepared. Major decisions by the owner to proceed with project are made from the
designer cost estimate.

3. The Contractor

The construction contractor is responsible for the performance of all work in accordance with
the contract document that has been prepared by the designer. This includes furnishing all
labour, equipment, material and know-how necessary to build the project. The construction
phase is important because most of the project budget is expended during construction. Also,
the operation and maintenance of the completed project is highly dependent on the quality of
work that is performed during construction. The contractor must prepare an accurate estimate
of the project develop a realistic construction schedule, and establish an effective project
control system for cost, schedule, and quality.

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Purpose of Project Management.

Project management may be defined as

“The art and science of coordinating labour, equipment, material, money and schedules to
complete specified projects on time and within approved cost”.

Much of the work of a project manager is organizing and working with people to identify
problems and determine solution to problem. In addition to being organize and a problem
solver a manager must also work well the people. It is a people who have the ability to create
the ideas, identify and solve problems communicate and get the work done. The project
manager must develop a good working relationship with people in order to benefit from the
best of their abilities. It is the duty of project manager to organize project team of people and
coordinate their efforts in a common direction to bring a project to successful completion.
Throughout the project management process there are four questions that must be addressed
who? Does what? When? And How much?

The work required often involves people outside of the project manager’s organization.
Although these individuals do not report directly to the project manager it is necessary that
effective working relationships be developed. A manager must be motivated achiever with a
“can do” attitude. Throughout a project there are numerous obstacles that must be overcome.
The must have prospective with ability to forecast method of achieving results. The drive
achieve results must always be present this attitude must be instilled in everyone involve in
the project. The good communication skills are must for the manager. The management of a
project requires coordination of people and information coordination is achieved through
effective communication. Most problems associated with the project management can be
traced to poor communication. Too often the “other person” receives information that is
incorrect, inadequate, or to late. In some instances the information is simply never received. It
is a responsibility of the project manager to be a good communicator and to ensure that
people involve in a project communicate with each other.

Type of Management

Management may be divided into at least two different types; functional management and
project management.

Functional management

Functional management involves the coordination of repeated work of a similar nature by the
same people. Examples are management of department of design engineering, surveying,
estimating or purchasing. Most individuals begin their career in the discipline/functional
environment of management. The work environment focuses on how and who will perfume
the work within emphasis on providing technical expertise for a single discipline.

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Project Management

Project management involves the coordination of one time work by a team of people who
often have never previously worked together. Examples are management of the design and
construction of substation, shopping centres, or water treatment plant. A fundamental
principle of project management it to organize the project around the work to accomplished.
The work environment focuses on what must be performed when it must be accomplished
and how much it will cost.

Function of Management

Management is often summarised into five basic functions; Planning, organizing staffing,
directing and controlling. Although these basic management functions have been developed
by the managers of businesses they apply equally to the management of a project.

Planning

Planning is a formulation of a course of action to guide a project to completion. Its starts at

beginning of a project with the scope of a work, and continues throughout the life of a
project. The establishment of milestones and consideration of possible constraints are major
part of planning. Successful project planning is best accomplished by the participation of all
parties involved in a project. There must be explicit operational plan to guide the entire
project throughout its life.

Organizing

Organizing is the arrangement of resources in systematic manager to fit the project plan. A
project must be organize around the work to be performed there must be a breakdown of the
work to be performed into manageable units, that can be defined and measured. The work
breakdown structure of a project is a multilevel system that consists of task sub tasks and
work packages.

Staffing

Staffing is selection of individuals who have the expertise to produce the work. The persons
that are assigned to the project team influence every part of project. Most managers will
readily agree that people are the most important resource on a project. People provide the
knowledge to design, coordinate and construct the project. The numerous problems that arise
throughout the life of project are solved by people.

Directing

Directing is the guidance of work required to complete a project. The people on the project
staff that provide diverse technical expertise must be developed into and effective team.
Although each person provides work in his or her area of expertise, the work that is provided
by each must be collectively directed in a common effort and common direction.

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Controlling

Controlling is the establishment of a system to measure report and forecast deviations in the
project scope, budget and schedule. The purpose of project control is to determine and predict
deviations in a project so corrective actions can be taken. Project control requires the
continual reporting of information in a timely manner so management can responds during
the project rather than afterwards. Control is often the most difficult function of project
management.

Key concepts of Project Managements

1. Ensure that the one person and only one person is responsible for the project.
2. Do not begin work without sign contract regardless of the pressure to start.
3. Confirm that there is an approved scope budget and schedule for the project.
4. Look in the project scope at the beginning and ensure there is no scope growth
without approval.
5. Make certain that scope is understood by all parties including the owner.
6. Determine who develop the budget and schedule and when they were prepared.
7. Verify that the budget and schedule are linked to the scope.
8. Organize the project around the work to be performed rather than trying to keep
people busy.
9. Ensure there is an explicit operational work plan to guide the entire project.
10. Establish a work breakdown structure that divides the projects into definable and
measureable units of work.
11. Establish a project organizational chart that shows authority and responsibilities for
all team members.
12. Built the project staff into an effective team that works together as a unit.
13. Emphasize that quality is a must because if it does not work it is a worthless
regardless of cost are how fast it is completed.
14. Budget all tasks any work worth doing should have compensation.
15. Develop a project schedule that provides logical sequencing of the work required to
complete the job.
16. Establish a control system that will anticipate and report deviations on timely basis so
corrective actions can be taken.
17. Get problem out in the open with all persons involved so they can be resolved.
18. Document all work because what may seem irrelevant at one point in time may later
be very significant.
19. Prepare of formal agreements with appropriate parties whenever there is a change in
the project.
20. Keep the client informed they pay for everything will use the project upon
completion.

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Role of the Project Manager

The role of project manager is to lead the project team to ensure a quality project within time,
budget and scope constraints. A project is a single, non-repetitive enterprise and each project
is unique, its outcome can never be predicted with absolute confidence. A project manager
must achieve the end result despite all the risks and problems that are countered. Success
depends on carrying out the required task in logical sequence, utilizing the available
resources to best advantage. The project manager must perform the five basic function of
management: Planning, organizing, staffing, directing & controlling.

Project Manager’s Role in Planning.

Project planning is the heart of good project management. It is important for the project
manager to realize that he is responsible for project planning and it must be started early in
the project (before start any work).Planning is continuous process throughout the life of the
project and to be effective it must be done with input from the people involved in the project.
The techniques and tools of planning are well established in provided guideline for planning.

1. Develop planning focused on the work to be performed

2. Establish project objectives and performance requirement early so everyone involved
know what is required.
3. Involve all discipline managers and key staff members in the process of planning and
estimating.
4. Establish clear and well defined milestone in the project so all concerned will know
what is to be accomplished and when it is to be completed.
5. Build contingencies into plan to provide a reserve in the schedule for unforeseen
future problems.
6. Avoid reprogramming and replanning to project unless absolutely necessary.
7. Prepare formal agreement with appropriate parties whenever there is a change in the
project and establish methods to control changes.
8. Communicate the project plan to clearly defined individual responsibilities, schedule
and budgets.
9. Remember that the best prepared plans are worthless unless they are implemented.

Project Manager’s Role in Organizing

A project organizational chart should be developed by the project manager for each project.
The chart should clearly show the appropriate communication channels between the people
working on the project. Project team members must know the authority of every other team
member in order to reduce miscommunication and rework. Organized work lead to
accomplishment and a sense of a pride in the work accomplished. Unorganized work leads
to rework .Rework leads to errors, low productivity and frustrated team members.

The techniques and tools of organizing are well established in provided guideline for
planning

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1. Organize the project around the work to be accomplished.

2. Develop work bread down structure that divides the project into definable and
measurable units of work.
3. Establish a project organization chart for each project to show who does what.
4. Define clearly the authority and responsibility for all project team members.

Project Manager’s Role in Staffing

Project staffing is important because people make things happens. Most individuals will
readily agree that people are the most important resource on a project. They create ideas,
solve problems, produce design, operate equipment and install materials to produce the final
product. Because each project is unique the project manager must understand the work to be
accomplished by each discipline. The project manager should then work with his supervisor
and appropriate discipline managers to identify the person who are best qualified to work on
the project. The techniques and tools of organizing are well established in provided guideline
for staffing.

1. Define clearly the work to be performed and work with appropriate department
managers in selecting team members.
2. Provide an effective orientation (project goals and objectives) for team members at
the beginning of the project.
3. Explain clearly to team members what is expected of them and how their work fits
into the total project.
4. Solicit each team members input to clearly define and agree upon scope, budget and
schedule.

Project Manager’s Role in Directing

The project manager must direct to overall project and serve as effective leaders in
coordinating all aspects of the project. This requires a close working relationship between the
project managers and the project staff to build an effective working team. Because most of
project team members are assigned to the project from their discipline department, the project
manger must foster the development with people at all levels of authority. The project
manager must be able to delegate authority and responsibilities to others and concentrate on
the linking process between disciplines. He cannot become overly involved in detail task but
should be the leader of the team to meet project objectives. The techniques and tools of
organizing are well established in provided guideline for Directing.

1. Serve as effective leader in coordinating all important aspects of the project.

2. Show interest and enthusiasm in the project with a “Can do” attitude.
3. Be available to the project staff, get problem out in the open and work out problems in
a cooperative manner.

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4. Analyze and investigate problems early so solution can be found at the earliest
possible date.
5. Obtain the resources needed by the project team to accomplish their work to complete
the project.

Project Manager’s Role in Control

Project control is a high priority of management and involves a cooperative effort of the
entire project team. it is important for the project manager a establish a control system
that will anticipate the report deviations on a timely basis, so corrective action can de
initiated before more serious problems actually occurs. Many team members resist being
control there the term monitoring a project may be also be used as a description for
anticipating and reporting deviations in the project: quality, work accomplished, budget,
and schedule and scope changes.

1. Maintain a record of planned and actual work accomplished to measure project

performance.
2. Maintain a current milestone chart which display planned and achieved milestone.
3. Maintain a monthly project cost chart which display planned expenditure and
actual expenditure.
4. Keep records of meeting, telephone conversation and agreements
5. Keep everyone informed ensuring that no one get ant “surprises” and have
solutions or proposed solutions to problems.

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Construction Contracts

Description of a contract

The make up of a contract, whether the owner is a public agency or a private

corporation is essentially the same. The form of the documents may changes but the
elements of the contracts are the same. In its simplest, most essential form, a
construction contract is defined as an agreement between two parties that is
enforceable by law. It requires a “meeting of the minds “and there must be a service
and consideration .one party must agree to perform work for the other party and
receive payment (consideration) for the work. The contract must be enforced by law,
which for all practical purposes means the contract must be for a service is legal.
Although there is no actual requirement that a contract be written ,realistically it must
be .oral contracts are essentially impossible to enforce in construction because of the
lack of evidence regarding the scope of the agreement. Generally written contracts
eliminate problem by removing any doubt about the agreed on terms.

For a contract to be valid and enforceable by law, it must meet certain criteria. There
criteria are

1. There must be mutual agreement or a meeting of the minds.

2. There must be an offer. An offer can normally be withdrawn up until the time
is accepted, except the bid documents used in public works. Generally state
that the bid may not be withdrawn once submitted.
3. The offer must be accepted. The acceptance completes the meeting of the
minds. In low bid construction, the acceptance is the award of the contract to
the low bidder.
4. There must be consideration for the service performed-payment
5. The subject matter of the contract must be lawful. A contract to commit a
crime is not legal and not enforceable.
6. The contracting parties must have the legal capacity to enter a contract. A
contract with a minor is not lawful. Contracts are signed by representatives of
both the owner and contractor who have the legal authority to sign for the
organization.
7. The purpose of the contract should be to produce
 A quality construction project
 On time
 Within budget
 Safely

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Essential Contract Documents

There are many documents that make up a construction contract. The four essential
documents are:

1. Agreement
2. The General condition
3. The Special Condition
4. The Drawings

Agreement

The agreement is the document that represents and reflects the legal contract between the
owner and the contractor. Obviously there is also a contract between the owner and the
designer, or the between general contractor and the sub contractor, or between the contractor
and the supplier for those contracts. The purpose of the agreement is to record in written form
those items agreed to by the owner and the contractor. it is simply a letter that constitutes
legal evidence that a contract exist , and forms the basis for its enforcement. The agreement
must contain

1. Date of the agreement

2. Names and addresses of the contracting parties
3. Description of the scope of work
4. Time limitation
5. Contract considerations
6. Payment conditions
7. Reference to other documents
8. Signatures

General Condition

A document called the General Condition is an essential part of the contract. It defines the
responsibilities of the parties involved in the contract-the owner and the general contractor. It
describes the guidelines that will be used in the administration of the contract. It is often
referred to as boilerplate, implying that the same documents are standard to all contracts.
Contracts must know exactly what is contained in the boilerplate.

Various standard forms of General Conditions have been developed by different organization.
These forms are familiar to all parties concerned, and the wording is not only clearly
understood, but has also been tested in the courts. The most common General Conditions may
be those published by the American institute of architects for use by the owner and general

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contractor. Other general condition forms are available for use in other type of contracts
between a general contractor and subcontractor, or the contract between the owner and
architects. There are also many other agencies that produce standard forms of General
Provision. The General Provision contains the following 14 articles:

1. General Condition
2. The Owner
3. The Contractor
4. Administration f the contract
5. Subcontractors
6. Construction by owner by separate contract
7. Change in the work
8. Time
9. Payment and completion
10. Protection of persons and Property
11. Insurance and Bonds
12. Uncovering and Correction of work
13. Miscellaneous Provision
14. Termination or suspension of the contract

Most experts feel that it is not wise to use nonstandard General Conditions mostly because all
of the published standards General Condition have been tested in court, and their legal
interpretations are well known. However, if the contract does not incorporate standard
General Conditions such as those written by professional institute, and instead the designer or
the owner writes the documents as a minimum, the nonstandard General Condition must
include

1. A definition of the contract documents that listed and give a brief description of the
documents that form the contract.
2. Document precedence which clearly stated which document will have precedence
over the other in case of discrepancy
3. Duties and responsibilities of the owner and contractor while the construction is in
progress.
4. A definition of how a portion of the work can be awarded to a subcontractor, and the
working relation between subcontractors.
5. The rights of the owner to self perform construction, to award work to separate
contractors.
6. The time of completion of the work.
7. The mode and frequency of payment or stages of work that determines when the
contractor will be paid. This section also contains the rights of both parties with
respect to retain age, and the definition of completion.

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8. The requirement and panel value of bonds and insurance. This section includes bid
bonds, as well as payment and performance bonds.
9. The conditions that constitute a change of work must be clearly defined and the steps
to be taken when a change order is required must also be clear.
10. The system for dispute resolution, such as arbitration or mediation, must be defined.
Also the rights of each party to terminate the contract must be detailed.
11. There are always some miscellaneous provision such as the governing laws,
delegation of work, requirement for inspection and test, approval during the work and
statutory limits.

Special Conditions /Supplementary Conditions

The supplementary conditions are sometimes known as special provision or special condition.
The purpose of the supplementary Conditions is to provide an extension of the General
Provision of the contract to fit the specific project at hand. They serve a amendments to the
General Conditions. Item include in the supplementary Condition are entirely subject to
discretion of the owner and may include topic such as,

 The number of copies on contract documents to be received by the contractor

 Survey information to be provided by the owner
 Material provided by the owner
 Changes in insurance requirements
 Phasing requirements
 Site visit
 Start date of construction
 Requirement of security and temporary facilities.
 Procedures for submittal and processing of shop drawings
 Cost and schedule reporting requirements
 Traffic control and street cleaning requirements
 Responsibilities for testing of material
 Action to be taken in the event of discovery of artifacts or items of historical value.

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