DCC5183

PROJECT MANAGEMENT
AND PRACTICES

[email protected]

What is Management?

Process Getting Efficiently With and Other
activities and through people
completed
effectively

• Management is the process of getting activities completed efficiently and effectively with

and through other people.

• Management functions:
a) Planning
b) Organizing
c) Staffing
d) Directing
e) Coordinating
f) Reporting
g) Budgeting

What is Construction Management?

Process Working with Achieve Using limited In a constantly
and through organizational resources changing
efficiently
others objectives
effectively

• Is a process of working with and through others to achieve organizational

objectives effectively using limited resources efficiently in a constantly changing.

Characteristic of Construction Management

• The project should have a specified target.
• The time limit for completion of project shall be defined.
• The total cost of construction project shall be defined and project shall be completed within the

given budget.

• The construction project is complex and it involves a number of individuals from different

departments.

• The project should be unique and cannot be replicated with the same task and resources giving the

same results.

• The construction project should satisfy the owners requirement and expectations from the project.
• The construction project shall consists of a number of associated activities contributing to the

project as a whole.

• The project gives encouragement to the project manager to adapt to working under changing

circumstances, as the nature of the project is change.

• There are risks with each step of the project, and the project manager should manage those risks to

reach the project goal.

Definition of Project Management

Planning, From beginning The owner’s Project finish on
controlling and stage to need time, on budget
coordinating
completing and quality

• Planning, controlling and coordinating a project from beginning stage to

completing the owner’s need which ensure that the project finish on time, on
budget and also on quality.

Characteristic of Civil
Engineering Project

A construction project has its own characteristics that make it very different
than the output produced by the manufacturing industry. Among the main

characteristics are:

i. Own design Own Design
Huge cost
• Almost all projects has its own individual design. Different Location

• Except for public projects conducted by the government such as

hospitals, schools and offices.

• Caused by: functions and different uses, financial allocation,

construction time, legal requirement and highlighting the identity
and prestige of the building erected.

ii. Huge cost
• for construction of residential homes, shopping complex, office complex, school,

factory and facilities.

• Therefore, it needs to be well managed to avoid any errors during the construction

process.

• These costs need to be managed optimally to produce quality facilities

iii. Different locations.

• Each construction project is located in different locations.

• These different location conditions have led to various technical and construction management

issues.

• From the aspect of the landscape, each location has different conditions such as flat land, hill,

mangroves and ex-mines.

• Site visits and soil investigation should be undertaken to ensure that the project's technical

requirements are met.

• Different project locations will affect the project management aspect as different from the human

resources involved. Indirectly, the transfer of construction groups from one location to another
may influence the performance of the overall construction organization

Concept of Project Management

1 Management is the attainment of organizational goals in an effective and
efficient manner through planning, organizing, staffing, directing and
controlling organizational resources.

2 Organizational resources include men (human beings), money, machines
and materials.

3 An effort to use the limited resources to achieve organizational goals
effectively.

BENEFITS OF PROJECT MANAGEMENT

• A well planned project with coordinated activities, responsibilities and efforts.
• Identifies management and technicalities of process, product, deliverables, ensure on time

and within budget.

• Competitive and well maintained costs.
• Facilitates controls at all levels & make project progress more visible to management.
• Provides effective & systematic communication for all project staff & clients.
• Secures client trust and satisfactions.
• Maintains good company image and credibility.
• Sustains long term customer relationship.

ROLES OF THE PARTIES INVOLVED DURING

CONSTRUCTION

Labour

Supplier Financial
Company

Local
Authorities

Consultant

Contractor

Owner

OWNER

• Is a party that needs the results of a project.
• Provide information and data required by the consultant.
• Finance the project.
• Take the profit and loss risk.
• Selecting all professionals on the project

CONTRACTOR

• To build and complete the construction based on contract.
• To carry out the work properly efficiently.
• To comply with the local authorities regulations.
• Providing insurance coverage for the worker.
• To bear all the carried out and completed work at the site.

CONSULTANT

1. Architect designing new buildings, extensions or alteration to existing buildings or

advising on the restoration and conservation of old properties.

2. Engineer plan, design and oversee construction and maintenance of building

structures and facilities such as roads, railways, airports, bridges, harbors, dams,
irrigation project, power plants, water and sewerage systems.

3. They also design and build tall buildings and large structures that they can last for

hundreds of years and withstands all weather conditions.

4. A quantity surveyors role is to manage the costs relating to building and engineering

projects. This may include new builds, renovations or maintenance work.

PROJECT MANAGER

• Coordinating all project activities.
• Act as advisors, coordinators, supervisors and implementations.
• Getting approval from the authorities.
• Make recommendations on project.
• Preparation of all budgets.
• Administration of all contracts and production of all certificates.
• Provide a timetable and plan for project resources.

AUTHORITIES

1. Local Authorities
2. Tenaga Nasional Berhad (TNB)
3. Telekom Malaysia (TM)
4. Jabatan Kerja Raya (JKR)
5. Jabatan Bomba
6. Jabatan Pengairan & Saliran
7. Jabatan Alam Sekitar

LOCAL AUTHORITIES

• Approve site layout and building plans
• Monitor and ensure building projects comply with applicable laws, acts and regulations.
• Responsible for issuing Certificate of Completion and Compliance (Certificate of

Completion and Compliance)

TENAGA NASIONAL BERHAD (TNB)

• Plan and provide electricity supply system to meet the requirements of construction

projects.

• Implement infrastructure construction supplies.
• Provide adequate electricity supply and safe.

JABATAN KERJA RAYA ( JKR)

• Provide infrastructure development and public amenities, particularly roads, water supply,

buildings, airports, harbors, docks and others.

• Plan, design and build infrastructure projects.
• Manage the operation and maintenance of roads, water supply and special government

offices.

• Provide guidance on construction technology advice.
• Provide technical advice to the government at the state, state and district levels.

JABATAN BOMBA

• Determine and recommend the need for fire-fighting based on the required fire and fire

paths as well as rescue measures.

• Ensure water supply facilities are available in areas to be built.
• Reviewing, verifying and ensuring building plans and mechanical and electrical plans comply

with prescribed conditions.

• Examine and test the completed fire prevention system.

SUPPLIER

• Provide all the materials and services needed for building projects.

• The term ‘supplier’ encompasses a very diverse range of roles, duties, and skills.

• Role of a supplier can revolve around materials or services.

• For example, a building company may use an external supplier to source the following

materials: timber, tools, windows, frames, and roof tiles. They can also supply – and
sometimes recommend – the machinery needed for a project.

• While many construction companies do have machinery and tools on hand, they often use

suppliers for projects that require more innovative materials.

• Some suppliers stock recycled materials, which is convenient for those building companies that

have environmental criteria to meet. In terms of services, suppliers can offer delivery, the
cutting and dressing of wood, and the sharpening of tools.

FINANCIAL COMPANY

• Finance not only the owner / client but perhaps also to the contractor and supplier

dependent on the size of the project.

• Example financiers such as banks, bank, finance company and construction associations

such as Malaysia Building Society Berhad (MBSB)

LABOUR

• Is the main driving force in carrying out the construction work. Human resources consist of:

a) Expert technology - provides the technology and expertise in a particular field
b) Technician - assist in the technical work
c) Skilled labor - workers who have the skills and the claimants do their own work
d) Semi-skilled labor - workers get the skills and education in a particular field but lack of

experience at the construction site and carry out specific tasks but still need
supervision.

e) Labor - do not have the skills and the necessary supervision and guidance.

Project Delivery System:

• Traditional System
• Design & built system
• Turnkey system



TRADITIONAL CONTRACT

 Most popular procurement used in construction industry in Malaysia.
 Is a contract between a client and a contractor for the construction of fully designed project.
 Owner has separate contract with the both the consultant (designer) and general contractor.

There is no contractual relationship between the designer and the general contractor.

 The client first appoints consultants to design the project in detail and then prepare tender

documentation including drawings, work schedules and bill quantities.

 Contractors are then invited to submit tenders for the construction of the project usually on a

single stage, competitive basis.

 Normally, one consultant (often, the architect for the building project) will be appointed to

administer the contract.

 Traditional construction contracts are most commonly lump-sum and bill quantities

contracts.

 This form of procurement is suitable for both experienced and inexperienced clients.

 It is considered to be a low risk method of contracting for the client, as the contractor

takes the financial risk for construction.

 However, if design information is incomplete at tender, or if significant variations are

required after the contractor has been appointed, the cost to the client can be significant

Time Cost Quality

Slowest project delivery Give the client firmer and High degree of quality
Provide clear accountability more competitive price Opportunity for owner to
combine the best design,
and better design and Provide price certainty to the
construction control by client at the early stage of the management and
construction expertise
client project. between consultant and
It eliminates any design or
More time for the client to contractor
check and review the design construction ambiguity Provide more time for client
Better cost control as such
before construction and consultants to review
cost increase due to and fully develop the design
variations is minimized
and specification
Does not provide
opportunities for contractor
to contribute his technology
and management expertise



DESIGN AND BUILT CONTRACT

• Is a generic term describing a procurement route in which the main contractor is

appointed to design and construct the work.

• Can appeal to clients as it gives a single point of responsibility for delivering the entire

project.

• The contractor can either be appointed to carry out all of the design work

• The client influence over the design, a concept design and performance and

specification can be prepared by consultant employed by the client, and then the
contractor is appointed to complete the design and carry out the construction.

• The contractor may use their own in-house designers to design the building, or they can

appoint consultant designers or the client designers can be employed by the contractor
to complete the design.

• The contractor may be appointed through a two-stage process.

a) First stage: The contractor is selected on the basis of a fee, preliminaries, overheads and

profit. They then work with the design team (who may be employed either by the contractor
or by the client at this stage) to develop the design, on the basis of which a fixed price is
negotiated.

b) Second stage: Construction stage

• Design and build contracts can be awarded on a fixed price, lump-sum basis.

• The client may then wish to appoint independent client advisers to review contractors design

proposals, administer the contract and monitor works on site.





TURNKEY CONTRACT

 Is a business arrangement in which a project is delivered in a complete state.
 The builder or developer is hired to finish the entire project without owner input. The

builder or developer is separate from the final owner or client, and the project is
turned over only once it is fully operational.

 In effect the developer is finishing the project and turning the key over to the new

owner.

 The owner/client is generally left out of the building process entirely as the developer

handles all decisions and problems related to construction.

 Turnkey contract offer many advantages over traditional building contracts. Because the

developer still owns the building until the project is complete, he has financial motivation to
complete the job quickly and effectively as possible.

 It’s also provides more time for an owner to seek financing and investors before he is

required to pay for a completed project. These agreements also save inexperienced owners
from making difficult construction decisions, leaving these decisions in the hands of the
developer or builder.

• Owner / client to understand the potential drawbacks of this type of agreement. The

primary drawback is the lack of control the owner maintains over design and construction
decisions. Cause this may mean the project is not perfectly suited to their needs once it is
complete.

• Agreement with one single administrative entity, who provides the design and construction

under one contract, similar to Design and Build, but frequently including under turnkey the
land acquisition, financing, leasing, etc.

That’s all for
chapter 1…..

LIFECYCLE OF A
PROJECT

MANAGEMENT

MARSHITAH MUHAMAD
Jabatan Kejuruteraan Awam,
Politeknik Sultan Azlan Shah.

[email protected]

DEFINE THE PROJECT
LIFECYCLE

Project Life Cycle divides the project into phases
that provide better management control and the
appropriate links to the ongoing operations of the
organization and defines the beginning and end of

the project.

PROJECT LIFECYCLE DIAGRAM

• Every project has a beginning, a middle period during which activities move the project
toward completion, and an ending (either successful or unsuccessful).

• A standard project typically has the following four major phases : initiation, planning,
implementation and closure.

Initiation

Close-up Planning
Activities

Implementation



PHASE 1 : INITIATION

• The Initiation phase is the 1st phase, it involves starting up a new project.
• It is the most importants phase in the Project Life Cycle, as it's the phase in which

you define your scope and hire your team.
• Only with a clearly defined scope and a suitably skilled team, can ensure success.
• The activities identify in this phase:

a) Develop a business case (Project document)
A Business Case justifies the start-up of a project. It includes a description of the
business problem or opportunity, the costs and benefits of each alternative
solution, and the recommended solution for approval.

 Involving two major types of activities.
a) Contracting
b) Sub-contracting (where applicable)

 Engineering and design
- Two stage involved as follows:
i. Preliminary engineering and design
ii. Detail engineering and design

b) Undertake the feasibility study (Project feasibility document)

A Project Feasibility Study is an exercise that involves documenting each of the
potential solutions to a particular business problem or opportunity. Feasibility
Studies can be undertaken by any type of business, project or team and they are a
critical part of the Project Life Cycle.

 The purpose of a Feasibility Study is to identify the likelihood of one or more
solutions meeting the stated business requirements.

 In other words, if you are unsure whether your solution will deliver the outcome
you want, then a Project Feasibility Study will help gain that clarity.

 During the Feasibility Study, a variety of 'assessment' methods are undertaken. The
outcome of the Feasibility Study is a confirmed solution for implementation.

c) Establish the Project charter
• is a statement of the scope, objectives and participants in a project.
• It provides a preliminary of roles and responsibilities, outlines the project

objectives, identifies the main stakeholders, and defines the authority of the
project manager.

d) Appoint the project team
• A Project Job Description defines the objectives and responsibilities of a particular

role on a project.
• Completing a Job Description Template ensures the skills, experience and

qualifications needed to fulfil the role are clearly defined.
• A Job Description may also be referred to as a "Position Description".

e) Set up the project Office

• The Project Office Checklist lists to set up a Project Management Office.

• A Project Management Office is the physical premises within which project
staff (e.g. the Project Manager and support staff) reside.

• The Project Office also contains the communications infrastructure and
technologies required to support the project.

• By using this 'Project Office Checklist' you will ensure you have all of the
tools needed to operate your Project Office today.

f) Perform a phase review

• A Project Review is an assessment of the status of a project, at a particular
point in time.

• The first time in the project life cycle that a project review is undertaken is
at the end of the first project phase, called "Initiation".

• During this project review, a decision is made as to whether or not the team
has met the objectives and is approved to proceed to the next project
phase, being the "Planning" phase.

PHASE 2 :
PLANNING AND BASIC PROCESSES

a) Defining scope
 Establishing realistic and specific objectives
 Objectives must be clear and measurable terms which cover costs, schedules and

quality or performance requirement.
 Objectives must be reasonable and achievable.

b) Work breakdown structure (WBS)
 is a process of dividing the project task into smaller manageable components for

planning purposes.

c) Role assignment and scheduling

 The process which was use to relate tasks to people, other firms, regulatory
agencies and others.

 Several types of planning methods available to the planning for example : bar
chart, critical path method (CPM), Program Evaluation and review technique
and line of balance.

d) Fund allocation

 Company fund or loan from financial institution.