Training Module on:

Construction Program Administration

Module Code: TM/ECWC/PM-3052

Prepared by: CPDi

October 2023
Addis Ababa
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ACRONYMS

CPDI Construction Professionals Development Institute

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Table of Content
ACRONYMS ............................................................................................................................................... ii
Table of Content ......................................................................................................................................... iii
Symbols Used .............................................................................................................................................. v
Introduction .................................................................................................................................................. 1
SESSION ONE ............................................................................................................................................ 4
1. Introduction to Construction Program Management ............................................................................ 4
1.1. What is a Program? ....................................................................................................................... 4
1.2. What Is Program Management? .................................................................................................... 7
1.3. Overview of Construction Program Administration and Its Significance .................................. 10
1.4. Understanding the Difference and Relationship between Project and Program Management ... 12
1.4.1. Relationship between Program Management and Project Management ............................. 12
1.4.2. Distinctions Between Program and Project ......................................................................... 14
1.5. Key Roles and Responsibilities of a Program Administrator ..................................................... 18
1.6. Program Manager Competences ................................................................................................. 22
 SUMMARY....................................................................................................................................... 24
SESSION TWO ......................................................................................................................................... 28
2. Developing and Planning Construction Project Programs ................................................................. 28
2.1. Identifying and Defining Program Objectives and Scope ........................................................... 28
2.2. Creating a Program Management Plan and Schedule ................................................................. 30
2.2.1. Program Planning and Scheduling ....................................................................................... 30
2.2.2. Program Cost Estimation ..................................................................................................... 32
2.3. Resource Allocation and Budgeting for Construction Project Programs .................................... 33
2.3.1. Program Resource Management Planning ........................................................................... 33
2.4. Program Risk Management Planning.......................................................................................... 34
 SUMMARY....................................................................................................................................... 35
SESSION THREE ..................................................................................................................................... 39
3. Implementing and Monitoring Construction Project Programs ......................................................... 39

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3.1. Executing the Program Management Plan .................................................................................. 39

3.2. Monitoring Program Progress and Performance ......................................................................... 41
3.2.1. Program Schedule Monitoring and Controlling ................................................................... 41
3.2.2. Managing Program Resources ............................................................................................. 42
3.3. Identifying and Managing Program Risks .................................................................................. 43
 SUMMARY....................................................................................................................................... 45
SESSION FOUR ........................................................................................................................................ 49
4. Evaluating and Closing Construction Programs ................................................................................. 49
4.1. Evaluating Program Outcomes and Success Criteria .................................................................. 49
4.2. Conducting Program Performance Reviews ............................................................................... 50
4.2.1. Managing Contract Closeout ............................................................................................... 50
4.2.2. Transitioning to Operations ................................................................................................. 51
4.3. Closing out Construction Project Programs and Capturing Lessons Learned ............................ 52
 SUMMARY....................................................................................................................................... 54
References .................................................................................................................................................. 57

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Symbols Used
Icon/Symbol* What it Refers to? Description

 Exercises/Activities group or individual exercises/activities which might

be done in the class or outdoor or at the work place


Summary Important learning points from each topic


References Sources of information used in the training material
and further readings that can be helpful for the
learner during or after the training.

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Introduction
Construction program management is a specialized discipline within the field of construction
management that focuses on overseeing and coordinating multiple construction projects
simultaneously. It involves the strategic planning, organization, and execution of a portfolio of
construction projects, with the aim of achieving the client’s objectives in terms of quality, cost,
schedule, and scope. It is deadline driven and requires attention to project constraints and safety
details. A construction program has many similarities and a few key differences to a more
traditional project. For one thing, construction programs often have a wide variety of stakeholders
who need to work together closely but cross-functionally. Construction programs can range in size
and complexity, from a group of small, interconnected projects to a massive undertaking like a
new city or transportation system. Regardless of the size or scope, all construction programs
require careful planning and execution in order to be successful.

Objectives
General objective
✓ To provide participants with a comprehensive understanding of construction program
management, including its key principles, processes, and tools.

Specific objectives
Upon completion the training based on this manual, the participants will be able to:
✓ Define construction program management and explain its significance.
✓ Understand the difference and relationship between project and program management.
✓ Identify the key roles and responsibilities of a program administrator and program
manager.
✓ Develop and plan construction project programs, including identifying and defining
program objectives and scope, creating a program management plan and schedule,
estimating program costs, allocating resources and budgeting, and planning for
program risk management.

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✓ Implement and monitor construction project programs, including executing the

program management plan, monitoring program progress and performance,
controlling the program schedule, managing program resources, and identifying and
managing program risks.
✓ Evaluate and close construction project programs, including evaluating program
outcomes and success criteria, conducting program performance reviews, managing
contract closeout, transitioning to operations, and closing out the program and
capturing lessons learned.

Outcome
At the completion of this training module, the trainees will be able to:

✓ Participants will be able to explain the key concepts of construction program

management, including its definition, purpose, and benefits.
✓ Participants will be able to compare and contrast project and program management,
and explain how they are interrelated.
✓ Participants will be able to identify the key roles and responsibilities of a program
administrator and program manager.
✓ Participants will be able to develop and plan construction project programs, including
identifying and defining program objectives and scope, creating a program
management plan and schedule, estimating program costs, allocating resources and
budgeting, and planning for program risk management.
✓ Participants will be able to implement and monitor construction project programs,
including executing the program management plan, monitoring program progress and
performance, controlling the program schedule, managing program resources, and
identifying and managing program risks.
✓ Participants will be able to evaluate and close construction project programs, including
evaluating program outcomes and success criteria, conducting program performance

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reviews, managing contract closeout, transitioning to operations, and closing out the
program and capturing lessons learned.

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SESSION ONE
1. Introduction to Construction Program Management

Contents:
1.1 What is Program?
1.2 What is program management?
1.3 Over view of Construction project program administration and its significance
1.4 Understanding The difference and relationship between project and program
management
1.5 Key Roles And Responsibilities Of a Program Administrator
1.6 Program Manager Competences
Session summary
Exercises

1.1. What is a Program?

A program is defined as related projects, subsidiary programs, and program activities managed in
a coordinated manner to obtain benefits not available from managing them individually. Managing
projects, subsidiary programs, and program activities as a program enhances the delivery of
benefits by adapting strategies and work plans to component outcomes or sponsoring organization
changes. Programs aim to deliver benefits to sponsor organizations or constituents by enhancing
capabilities, facilitating change, creating assets, offering new products or services, or developing
new opportunities. These outcomes provide utility to the organization and its intended
beneficiaries or stakeholders.

Programs deliver benefits through component projects and subsidiary programs, each pursuing
complementary goals. Component projects or programs that do not advance common goals, do not
jointly contribute to common benefits, or are related only by common sources of support,
technology, or stakeholders are often better managed as portfolios.

The following is a list of program elements and their definitions:

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▪ Components:
Components are projects, subsidiary programs, or other related activities conducted to
support a program.
▪ Projects:
Projects are temporary efforts to create a unique product, service, or result within defined
constraints like budget, time, specifications, scope, and quality.
▪ Subsidiary programs, sometimes referred to as subprograms:
Subsidiary programs are sponsored and conducted to achieve specific goals related to the
primary program, such as developing electric cars. These programs are managed and
monitored as part of the sponsoring program, ensuring they align with the primary
program's objectives.
▪ Other program-related activities:
These include work processes or activities that support a program but are not directly tied
to subsidiary programs or projects. Examples include training, planning, program-level
control, reporting, accounting, and administration. Operational activities or maintenance
functions directly related to a program's components are also considered program-related
activities.
Program activities refer to activities conducted to support a program, not those performed during
component projects. Programs recognize that strategies for delivering benefits may need to be
optimized adaptively as individual outcomes are realized. The best mechanism for delivering a
program's benefits may be ambiguous or uncertain. Outcomes from program components
contribute to the program's intended benefits and refine the program's strategy. The value of
managing an initiative as a program is the program manager's readiness to adapt strategies to
optimize benefit delivery. Program components may be pursued in an iterative, nonsequential
manner.

Figure 1 illustrates the nonsequential nature of a program's delivery phase, where iterative pursuit
of components produces outputs and outcomes contributing to organizational benefits. Benefits
may be realized incrementally throughout the program or after its end.

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An organization-wide process improvement program is an example of a program that delivers

benefits incrementally. It involves component projects to standardize and consolidate specific
processes, and subsidiary programs to ensure the benefits are fully realized. Each component may
deliver incremental benefits as they are completed, triggering new projects to further improve
processes, satisfaction, and performance. The program is not complete until all projects and
subsidiary programs have delivered their intended benefits.

Alternatively, programs can deliver intended benefits all at once. The benefits of the program are
realized only after the entire program is successfully completed, the product is approved for sale,
and the organization benefits from its sale.

Figure 1. Program Life Cycle

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1.2. What Is Program Management?

Program management involves applying knowledge, skills, and principles to a program to

achieve objectives and achieve benefits. It involves aligning program components to achieve
goals and deliver optimal benefits. A program manager leads the team responsible for achieving
program goals and objectives, authorized by the organization.

Program management is also a technique that enables organizations to manage multiple related
projects simultaneously, resulting in significant benefits. It is a growing area of interest for
organizations involved in multiple projects or large projects that need to be split into subprojects
for better management. It is a new technique that is not always well understood.

Traditional project management models fail to adapt to modern organizational structures and
workplace priorities, and do not fully utilize the benefits of multi-skilled, multi-location teams.
Effective program management involves strategies, tactics, and tools for managing design and
construction delivery processes, controlling key factors, and ensuring clients receive facilities
that meet their expectations. These improvements lead to reduced operational costs and
increased satisfaction for the entire program. A program management team can manage
complex multi-disciplinary projects, from small to large, ensuring they are on time, budget, and
meet the specified specifications.

One of the reasons that clients choose program management is its ability to provide all the
necessary services in-house, eliminating the need for multiple consultants. This capability is
changing the facet of management of construction projects, when built more than one at once,
as the program manager fully integrated teams offer services and support in design,
construction, procurement, project controls, safety, quality, and operations and maintenance,
thus eliminating any delays and un-coordination of these activities and hence the optimization
of the selection of resources, maximizing the efficiency of the construction, and mini- mizing
costs restraints.

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As a general rule, the program phases are subdivided as follows. Figure 2 shows the main
different phase of program management which can be subdivided as follows:

Figure 2. Different phases of program management

(1) Pre-construction Phase - program managers usually

▪ Work within desired delivery system
▪ Manage planning and design
▪ Evaluate potential sites
▪ Assist in selection of design team
▪ Maximize front-end planning with early feasibility studies to reduce problems
during execution
▪ Establish cost and time parameters and prepare bid packages
▪ Offer value engineering input and cost analysis, and
▪ Serve as owner’s agent and supplement existing staff.
(2) Construction Phase - program managers usually
▪ Award contracts
▪ Manage construction and coordinate all subcontractor activities

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▪ Manage material procurement

▪ Monitor costs and schedules
▪ Maintain quality control
▪ Provide ongoing communications and status reports, and
▪ Monitor contractor’s safety
(3) Post-Construction Phase - program managers usually
▪ Develop punch lists
▪ Monitor implementation of punch lists
▪ Resolve outstanding issues
▪ Oversee the systems and equipment operations training, and
▪ Remain engaged throughout the warranty period.
A group of related projects are an integral part of a program and must be managed within the
program parameters to achieve their objectives and the program aims. It is, therefore, important
that programs are run within a framework that ensures there is a focus on the overall strategic
objectives. The four basic stages in program management are as follows:

▪ Program identification
▪ Program planning
▪ Program delivery; and
▪ Program closure.
By applying the four stages of program management outlined, organizations will have created
an effective environment in which they can monitor and control the progress of their programs,
improving the chances of bringing them to a successful conclusion. These stages take the
program from initiation, based on strategy or a desire for change, to the final realization of a
defined business objective or benefit.

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1.3. Overview of Construction Program Administration and Its

Significance

Construction program management is the process of managing several related construction

projects. It can also be described as the process of coordinating and managing a portfolio of
related construction projects to achieve common goals and objectives. It is a complex and
challenging task, as it requires the integration of multiple projects with different timelines,
budgets, and resources. The program manager has oversight of the purpose and status of the
projects in a program. Program managers are responsible for overarching policy, budget,
schedule, and master plans. They oversee several projects, sometimes up to 200-300 at a time,
including off-site locations, and ensure they all run smoothly. Construction program
management is compatible with all project delivery systems, including design-bid-build,
design-build, CM At-Risk, and Public Private Partnerships. Large programs require the
management, coordination, and integration of multiple, concurrent projects. By connecting
expertise across services, markets, and geographies, program managers manage outcome-driven
projects that deliver social, economic, and environmental value.

The construction program management process typically involves the following steps:

a) Define the program goals and objectives.

What are the overall goals and objectives of the construction program? What are the
specific projects that need to be completed? What are the constraints on the program,
such as time, budget, and resources?
b) Develop a program schedule.
Once the program goals and objectives have been defined, a program schedule needs to
be developed. This schedule will identify the start and end dates for each project in the
program, as well as the dependencies between projects.
c) Assign resources to the program.
The next step is to assign resources to the program. This includes identifying the people,
equipment, and materials that will be needed to complete each project.

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d) Monitor and control the program.

Once the program is underway, it is important to monitor and control its progress. This
includes tracking the progress of each project, identifying and resolving any problems,
and making adjustments to the program schedule and budget as needed.
e) Close out the program.
Once all of the projects in the program have been completed, the program needs to be
closed out. This involves reviewing the program's performance, identifying lessons
learned, and finalizing all of the administrative tasks.
Construction program management is a complex and challenging task, but it is essential for
ensuring the success of large construction projects. By following the steps above, construction
project managers can help to ensure that their programs are completed on time, within budget,
and to the required quality standards.

Here are some additional tips for successful construction program management:

▪ Use a risk management process.

Construction projects are inherently risky, so it is important to have a risk management
process in place. This process should identify and assess risks, develop mitigation
strategies, and monitor the implementation of those strategies.
▪ Communicate regularly with stakeholders.
Keep stakeholders informed of the program's progress and any changes to the schedule
or budget. This will help to avoid misunderstandings and ensure that everyone is aligned
on the program's goals and objectives.
▪ Use project management software.
Project management software can help to automate many of the tasks involved in
program management, such as scheduling, resource allocation, and progress tracking.
▪ Be flexible and adaptable.

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Things don't always go according to plan in construction, so it is important to be flexible

and adaptable. Be prepared to make changes to the program schedule and budget as
needed.
By following these tips, construction project managers can increase their chances of success in
managing a portfolio of construction projects.

In general, construction program management is important for a number of reasons.

▪ First, it can help to ensure that all of the projects in a portfolio are completed on time
and within budget.
▪ Second, it can help to improve the overall efficiency and effectiveness of the
construction process.
▪ Third, it can help to reduce the risk of delays and disruptions.
▪ Fourth, it can help to ensure that the projects in a portfolio are aligned with the
organization's overall strategic goals and objectives.

1.4. Understanding the Difference and Relationship between Project

and Program Management

1.4.1. Relationship between Program Management and Project Management

Collaboration is also a key component of the interaction between program management and
project management (as applied by program and project managers). Together, program and
project managers develop workable plans for pursuing program objectives and subsequently
bringing about program benefits. The definition and approval of projects that will be under the
control of project managers are based on the program strategies and high-level program plans
established by program managers. Projects overseen by project managers produce outputs and
results that serve as a foundation for reaffirming or changing the program's and its components'
strategic goals. Program and project managers work together to serve the organization by
making it possible to achieve the advantages that the company wants or needs.

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Throughout the course of a program's life cycle, interactions and relationships between program
managers and project managers may evolve. Projects may start and end at various points over
the duration of a program. It may be required for a program manager to collaborate closely with
a project manager during the project's inception and planning phases in order to provide
supervision, direction, and guidance about the needs of the program. However, throughout the
work execution and closure phases of a project, the relationship between program and project
managers could be different. Project managers concentrate on managing internal project
operations throughout these phases, whereas program managers often focus more on
coordinating interdependencies across the projects that contribute to their programs.

The daily operations of the different project components are often not directly managed by
program managers. As projects advance, the program manager's interactions with project
managers become more concentrated on recognizing and managing interdependencies between
projects, keeping track of project performance, resolving urgent problems that have an impact
on component projects, and tracking how projects, subsidiary programs, and program work
contribute to the overall program benefits. When a project is over, program and project
managers collaborate closely once again to make sure that the outputs and outcomes are
successfully transferred to the program, ensuring that the advantages of the project are absorbed
and maintained.

Additionally, program and project managers work together to handle risks and challenges. The
program manager keeps track of and responds to problems and hazards that might have an
influence on program effectiveness or the provision of benefits but cannot be handled at the
project or subsidiary program level. The project manager often focuses on managing the risks
and challenges that arise within a certain project. To make sure that program managers are aware
of difficulties, hazards, and dependencies that (may) have an influence on other program
components.

Program managers also ensure that their programs recognize and embrace new opportunities
that arise from the pursuit of program components.

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The interactions between the program and project management functions tend to be iterative
and cyclical:

▪ During the program's definition phase, the program's benefits, goals, and strategy are
communicated to its component projects, while the strategies, objectives, needs,
constraints, and timing of these projects are communicated back to the program.
▪ During the program's delivery phase, the program management function and project
management function regularly communicate to ensure that all program components'
activities are coordinated and aligned with the program's intent to deliver organizational
benefits, ensuring that information about progress, issues, risks, dependencies, outputs,
and outcomes flows from the component project to the program.
▪ During the program’s delivery and closure phases, as component projects are closed,
information about project outputs and outcomes flows from the component project to
the program to ensure that project benefits are fully realized and sustained.
The need for an iterative exchange of information and alignment of actions between program
and project managers requires that the program and project management functions work closely
together. A program manager may influence a project manager’s approach for managing
component projects based on the needs of the program and its other components.

1.4.2. Distinctions Between Program and Project

As was previously said, program management offers businesses a useful framework for
handling interconnected groups of work (such as projects, subsidiary programs, and program
activities) created to yield advantages that managing the work as separate initiatives is unable
to. Programs are frequently extensive, intricate, time-consuming, and open to definitional
confusion. Three more features that set programs apart from projects are covered in this section.
These fundamental distinctions may be seen in how projects and programs are run in response
to complexity, change, and uncertainty.

a) Complexity
Programs and projects both have a complexity component. Program and project complexity

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may be categorized into three categories: ambiguity, system behavior, and human behavior.
These three classifications serve as the source of the aspects that contribute to program and
project complexity.
▪ Program Complexity. The complexity of a program may be the result from a
combination of factors.
i. Governance complexity.
Governance complexity arises from sponsor support, related component
sponsors' support, management structures, number of organizations involved,
and decision-making processes within the program.
ii. Stakeholder complexity.
Stakeholder complexity arises from differing needs and influences, potentially
burdening or conflicting with program benefits. It also affects the program
team, its diversity, and the number of stakeholders interested in the program.
iii. Definition complexity.
Programs facilitate change, requiring stakeholder agreement and consideration
of benefits management and potential competing interests. Program managers
must be mindful of these complex aspects.
iv. Benefits delivery complexity.
Benefits delivery complexity focuses on benefits management.
v. Interdependency complexity.
Program managers must manage interdependency complexity, focusing on
components rather than individual projects. They must define and enforce
interdependencies within and outside the program, as they directly relate to the
program's complexity and ensure the intended benefits are delivered.
vi. Resource complexity.
The availability of resources at the required level of capability and capacity,
adequate funding, and suitable supplies and materials add to the complexity of
the program, and these resource concerns need to be addressed within the

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program.
vii. Scope complexity.
Scope complexity arises from the difficulty to clearly define the deliverables
and benefits of a program and its components. Managing the delivery of the
associated benefits beyond the lifespan of the program’s components
contributes to scope complexity.
viii. Change complexity.
Change complexity arises from the different levels of impact the change
potentially can cause in an organization. Change complexity is low when a
program changes the basic operational processes model in one or two
departments, but can be can be extremely complex when a program transforms
an organization from a functional to a projectized organization.
ix. Risk complexity.
Risk complexity arises from the high level of uncertainty due to the extended
program life cycle and the uncertainty of the components’ outcome and their
interdependencies.

▪ Project complexity. A project's complexity stems from its uniqueness and the required
thinking, action, and knowledge for problem-solving or task completion, causing
uncertainty in time, costing estimates, and specifications for delivering desired
outcomes, and can be categorized as organizational or dynamic complexity.
i. Organizational complexity.
Organizational complexity focuses on the depth of the organizational structure
as well as the number of organizational units. It also addresses the number and
types of elements and their relationships in the organization.
ii. Dynamic complexity.
Dynamic complexity focuses on the project’s behavior and how it changes
over time.

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b) Uncertainty
Program management is a challenging task due to the inherent uncertainty, particularly in the
early stages. Programs and projects exist in uncertain organizational environments, and external
changes can further increase this uncertainty. However, individual projects may be more certain
within the organization.

Projects have more certain expected outputs due to fixed constraints, but as they progress, their
ability to deliver them on time, budget, and according to specification becomes more certain.
Programs, on the other hand, may not have their entire scope, budget, or timeline determined
upon preparation, but can adapt to changing circumstances. This ability creates uncertainty
about the program's direction and outcome. During the program, scope and content are
continually elaborated and adjusted to align with intended benefits. This initial program
environment is uncertain, requiring a management style that embraces uncertainty. While
individual components may meet success criteria, they may not contribute to the expected
outcomes, creating additional uncertainty about the program's outcomes.

The complexity and duration of a program necessitate a comprehensive view of all its
components, requiring program managers to manage progress and contributions effectively.
This distinguishes program management from project management, emphasizing the necessity
of both within a program.

c) Managing Change
Program managers must consider internal and external change, which refer to changes within
the program and the need to adapt the organization to exploit its benefits. Programs are better
equipped to deal with change due to their ability to change the direction of a component, cancel
a component, or start a new one. Both programs and projects should have a rationale justifying
the advantages of proposed changes. Change within a project affects defined deliverables at the
tactical level, while change within a program affects the delivery of intended benefits at the
strategic level. Change management is a key activity in programs, enabling stakeholders to

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analyze the need for proposed change, its impact, and the process for implementing and
communicating change.

▪ Program change.
Program managers approach change differently at the program level, relying on
consistent performance from program components. They expect projects to be delivered
on time, budget, and quality. Program managers also require other programs and
activities to contribute positively to the program's outcome or reduce negative outcomes.
Change management is used to control variability in schedule, cost, and output. Program
managers can create new components or cancel existing ones to ensure optimal benefit
delivery.
▪ Project Change.
Change management is a crucial tool in project management that helps monitor and
control variance from planned cost and schedule while protecting approved output
characteristics. If a change impacts the project's scope, cost, schedule, quality, or
expected results, a project change request is developed. If accepted, the change is
incorporated into the project structure, adjusted to accommodate all aspects, and the
project is replanned. Change management ensures the project remains aligned with the
new baseline and manages variance caused by known and unknown risks on the project's
path to completion.
The program manager manages the uncertainty of program outcomes by grouping components
into other programs and redirecting efforts to achieve desired benefits. Change management is
employed at the program level to ensure alignment with expected benefits, new strategy, social,
regulatory, or economic state, and beneficiaries' perceptions. This approach helps manage the
program effectively and adapt to evolving environments.

1.5. Key Roles and Responsibilities of a Program Administrator

A program manager is often called program director, program leader, project manager, or project
director whose main role is often to oversee multiple project managers that are executing

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various aspects of the program of work. The program manager range of responsibilities varies
from the initial feasibility of the program, the establishment of the scope of work from the
master plan, to the comprehensive design and eventually the execution of the projects. Figure 3
shows a sample diagram of the role of the project manager.

Figure 3. The role of the project manager

The program manager is, generally, responsible for the delivery of the construction of the
program projects through the management of institution relationships; pre-project planning and
feasibility; master planning and completion of design documents including conceptual design
and design development; project budgets and schedules; procurement of service specialists
providers; administration of contracts; appointment of the contracting team; construction
supervision and management; project safety; inspections; furniture, furnishings, and equipment;
warranty; and project close-out. In many cases, the program management role extends in the
facility management aspect which can lead to the role of the program management team
extending over the period of 10 years for the very large programs. As the clients’ single point
of contact, the program manager integrates the activities of all designers and architects,
contractors and subcontractors, and spe- cialist consultancies such as facility management,
quality control, health safety, quantity surveyors, and contract managers, often from diverse
backgrounds and cultures, to ensure the success of the overall program.

In summary, the program manager scope of work varies into multi-functions such as:

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▪ The allocations of responsibilities between the various parties involved in the program
▪ Achieving client objectives
▪ Identify the contractual matrix of duties between the designers, the main con- tractors,
and the various consultants and subcontractors
▪ Establish budget control
▪ Minimize the client’s financial burdens
▪ Impose quality and safety control for the program; and
▪ Execute the complex construction of each project in the program.
A program manager, hence, has duties more widespread and global than a project manager. He
is functioning at a higher level and overseeing many project managers at once. Hence, a program
manager usually has long experience of megaprojects, worldwide. Figure 4 demonstrates the
role of the program manager and how clearly it differs from the role of the project manager
illustrated in Figure 3.

The services of a program management team or a program manager include the following:

▪ Design projects management

▪ Planning and environmental projects management
▪ Construction management
▪ Procurement
▪ Administrative and financial support
▪ Human resources and participation
▪ Information management; and
▪ All-inclusive projects control.

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Figure 4. The role of the program manager

A program manager can manage programs with full disclosure to and involvement of the owner,
as well as full information to the public (as agreed by the owner) and full compliance with all
laws, rules, regulations, permits, and requirements. His capabilities aggregate the experience,
resources, and expertise in planning, engineering, and management. He can take an entire
program from first concept through the master plan and initial design; environmental impact
study processes and permits; financing and funding; development design, procurement, and
construction; and start-up and operations to ultimately hand over and facility management.

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1.6. Program Manager Competences

Program managers must balance efficient project completion with strategic adjustments to
improve program benefits. They must provide an integrated view of program components'
outputs and outcomes to ensure the program's intended delivery. A program manager's expertise
is largely determined by their ability to manage the complexity, ambiguity, uncertainty, and
change associated with a program's outcomes or environment, which may vary among programs
or similar types.

The following skills and competences are commonly required by program managers:

• Communication skills.
Communication skills that enable effective exchange of information with a wide variety
of program stakeholders, including program team members, sponsors, customers,
vendors, and senior management, whether individually or in groups or in committees.
• Stakeholder engagement skills.
Stakeholder engagement skills to support the need to manage the complex issues that
often arise as a consequence of stakeholder interactions. The program manager should
recognize the dynamic aspects of managing individual and group expectations.
• Change management skills.
The program manager should possess skills to effectively engage with stakeholders and
governance committees, obtaining necessary agreements, alignment, and approvals for
program adaptation. They should provide an integrated view of stakeholders'
perspectives when interacting with multiple committees in the organization's program
review and approval process.
• Leadership skills.
Leadership skills to guide program teams through the program life cycle. Program
managers work with component managers and often with functional managers to gain
support, resolve conflicts, and direct individual program team members by providing
specific work instructions.

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• Analytical skills.
Skills that enable a program manager to assess whether the outputs and outcomes of
program components will contribute as expected to the delivery of program benefits, or
to assess the potential impact of external events on the program’s strategy or plans.
• Integration skills.
A program manager should possess the ability to describe and present a program’s
strategic vision and plan holistically. It is the program manager’s responsibility to ensure
the continuous alignment of the program component plans with the program’s goals and
pursuit of organizational benefits.
Skilled program managers with business-specific experience have an advantage over those
without. They use their knowledge and leadership to align the program's approach with the
organization's strategy, improve program benefits delivery, enhance stakeholder collaboration,
and manage the program life cycle, regardless of their background.

In general, this requires the program manager to exhibit certain competences, including the
abilities to:

• Manage details while taking a holistic, benefits-focused view of the program.

• Leverage a strong working knowledge of the principles, practices, processes, tools,
and techniques of portfolio, program, and project management.
• Interact seamlessly and collaboratively with program steering committees and other
executive stakeholders.
• Establish productive and collaborative relationships with team members and their
organizational stakeholders.
• Leverage business knowledge, skills, and experience to provide perspectives that
support the understanding and navigation of uncertainty, ambiguity, and complexity
in the program environment.
• Facilitate understanding and agreement through the use of strong communication and
negotiation skills.

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Program managers often need a combination of technical and project management skills to
manage complex programs. They may come from project management or a related technical
discipline.

 SUMMARY

Program Management Overview

• Programs are coordinated efforts of related projects, subsidiary programs, and
activities to achieve benefits.
• Aims to enhance capabilities, facilitate change, create assets, offer new products or
services, or develop new opportunities.
• Program management involves applying knowledge, skills, and principles to a
program to achieve objectives and benefits.
• A program manager leads the team responsible for achieving program goals and
objectives.
• Traditional project management models fail to adapt to modern organizational
structures and workplace priorities.
• Effective program management involves strategies, tactics, and tools for managing
design and construction delivery processes.
• Program phases are subdivided into pre-construction, construction, and post-
construction.
• Program managers manage planning and design, evaluate potential sites, assist in
selection of design teams, establish cost and time parameters, offer value engineering
input, and supplement existing staff.
Construction Program Management Overview
• Manages multiple related construction projects to achieve common goals.
• Requires integration of different timelines, budgets, and resources.
• Oversees projects up to 200-300 at a time, including off-site locations.

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• Compatible with all project delivery systems.

• Involves defining goals, developing schedule, assigning resources, monitoring,
controlling, and closing out the program.
• Requires risk management, regular stakeholder communication, project management
software automation, and flexibility.
• Importance: Ensures timely and budget-compliant project completion, improves
construction efficiency, reduces delays, aligns with strategic goals.
Program and Project Management Collaboration
• Program managers supervise and direct inception and planning phases.
• Project managers manage internal operations.
• Program managers coordinate interdependencies and manage risks.
• Program managers ensure programs embrace new opportunities.
• Interactions are iterative and cyclical, with communication during definition, delivery,
and closure phases.
• Close collaboration required for iterative information exchange and action alignment.
Program Manager Roles
• Oversees multiple project managers in program execution.
• Manages institution relationships, pre-project planning, master planning, budgets, and
procurement.
• Integrates activities of designers, architects, contractors, and consultants.
• Experienced in managing megaprojects globally.
• Services include design, planning, construction, procurement, administrative support,
human resources, information management, and project control.
• Manages programs with full disclosure and compliance.
Program Manager Competencies
• Balancing project completion with strategic adjustments.
• Managing complexity, ambiguity, and change in program outcomes.

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• Requires skills in communication, stakeholder engagement, change management,

leadership, analytical, and integration.
• Skilled program managers align program approaches with strategy, improve benefits
delivery, and enhance stakeholder collaboration.
• Manages details, leverages business knowledge, establishes productive relationships,
navigates uncertainty, and facilitates understanding through communication and
negotiation.

 Exercise 1.1:
Purpose:
▪ To provide participants with an overview of construction program management, including its
key concepts, principles, and practices.
▪ To learn about the importance of collaboration between program and project managers, and
the roles and competencies of program managers..
Materials:
▪ Whiteboard or flipchart
▪ Markers
▪ Sticky notes
▪ Construction program management module
Time:
▪ 3 Hours
Discussion Questions:
▪ What is construction program management?
▪ What are the key benefits of using a program management approach to construction?
▪ What are the key challenges of program management in construction?
▪ How can program and project managers collaborate effectively in construction projects?

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▪ What are the key roles and competencies of program managers in construction?
Activity:
1. Construction Program Management Overview
▪ Define construction program management and discuss its key benefits and challenges.
▪ Review the key processes and tools used in construction program management.
▪ Provide examples of successful construction programs.
2. Program and Project Management Collaboration
▪ Discuss the importance of collaboration between program and project managers in
construction projects.
▪ Identify key areas where program and project managers need to collaborate effectively.
▪ Share best practices for program and project management collaboration.
3. Program Manager Roles and Program Manager Competencies
▪ Identify the key roles and responsibilities of program managers in construction.
▪ Discuss the key competencies required for effective program management.
▪ Share examples of successful program managers in construction.

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SESSION TWO
2. Developing and Planning Construction Project Programs

Contents:
2.1 Identifying and Defining Program Objectives and Scope
2.2 Creating a Program Management Plan and Schedule
2.3 Resource Allocation and Budgeting for Construction Project Programs
2.4 Program Risk Management Planning
Session summary
Exercises

2.1. Identifying and Defining Program Objectives and Scope

Program management defines the long-term objectives of the client and the stakeholders (together
called the organization herein). Once these long-term objectives are established, the organization
identifies programs that help achieve these objectives and thinks carefully about the benefits these
programs are designed to bring about. Some of the objectives that can help shaping program
management are given below:

▪ Advise that the organization setup assorted structures to manage the program and keep the
strategic objectives in mind
▪ Provide the organization a chance to stop and take a look at what has changed,what is to
change next and to compare all of that with those highly significant overall objectives
▪ Coordinate management of a portfolio of projects to achieve a set of predefined objectives
such the use, sale, or lease of the projects. The projects can be houses, buildings, airports,
train stations, electrical stations, desalination plants, roads, tunnels, and so on; and
▪ Sequence the planning and monitoring of tasks and resources across a portfolio of projects.
Figure 5 shows the different components in a typical program management conceptual
framework ranging from the preconstruction phase to the construction phase and ultimately
to the post-construction phase.

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Figure 5. Program Management conceptual framework

Program management sought to determine whether its objectives can be clearly defined to include
a set of knowledge, skills, and abilities, which are unique to achieve its aim and not possessed or
practiced by other professions inside or outside the construction industry; whether specific,
objective criteria exist (including measures of cost savings or cost avoidance), which decision
makers in the public sector could use to determine the feasibility and benefits of using different
con- tractors; and the extent of current regulatory controls governing the use of program
management.

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This goal is what the multi-project manager, and the projects team, strives to achieve under given
specific schedule constraints and a set of predetermined ben- efits. Although, program management
has been established in many sectors of economy, yet its understanding and practice in the
construction sector is still in its infancy stage. In program management, issues such as management,
organization, financing, optimal resource utilization, and realization of stakeholder needs are basic
considerations.

The goals and aims of program management are mainly:

▪ Optimize of the schedule across the program and deliver incremental benefits, as well as
enable staffing to be optimized in the context of the overall program’s needs
▪ Creation value by improving the management of projects in isolation, especially where the
working environment is not only made up of a many of small projects, but also where
integration of projects is crucial in terms of development and deliverable for a competitive
success
▪ The use of resources on sharing basis from the common resource pool. This will reduce the
amount of resources as needed for the required activities.
The traditional project management approach executes a project as an individual endeavor. Hence,
each project has its own resource requirements in the organizational resource pool. However, when
all the similar work is executed as a program or multi-projects, the usage of resources will be
optimized on sharing basis from the same resource pool. In this way, a rational controlling and
planning will also help to reduce the resources usages to a considerable level and support the agenda
of sustainability as well.

2.2. Creating a Program Management Plan and Schedule

2.2.1. Program Planning and Scheduling

The planning stage is where the design of the program takes place. The program manager, in order
to plan and schedule the projects comprising a program, will in this order:

1) Defines clear objectives,

2) Agrees an approach,

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3) Agrees roles and responsibilities with the team,

4) Sets up communications channels,
5) Agrees priorities of the projects that make up the program, and
6) Completes project planning.
It is important at the planning stage to identify adequate levels of resources for the early projects
and identify the requirements for later projects.

When dealing with planning a program, the problem becomes much more complex than the
planning of a project since the critical path method (CPM) and the networking methods are multi-
faceted. Programs that comprise many projects, sometimes as many as few hundred projects
running simultaneously and in different geographical locations, need a very well-organized
planning method in order to construct the program within the time specified.

Program planning and networking will involve identifying the activities that are fundamentally
different than project planning and scheduling as the stages and the interrelationships of the
activities between the milestones are unique to each program.

If project planning and networking is almost micro-planning, then program planning and
networking is macro where the decision making is done on a higher level and involves activities
usually done on a strategic level and includes maximizing cash and financial resources, design
stages, mobilization, starting and completion of each project within the program, human resources
allocation, heavy equipment distribution, availability and time of delivery of critical materials, the
completion of each project within the program, and the facility management if so required.

For a program, although the technique is similar to project management, the variables and the
activities are related to the program and the projects are then considered activities of the program.

The essential parts and activities of a program are in sequence:

▪ Design,
▪ Contract formation and pre-construction studies,
▪ Selection of contractor(s),
▪ Construction phase of the projects comprising the program,

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▪ Human resources,
▪ Technical support,
▪ Supervision, and
▪ Facility management.
The most widely used planning and scheduling technique, the CPM, breaks down an entire program
into individual activities, estimates feasible durations in which to complete the activities, controls
overall program completion and produces numerous activity paths while creating relationships
among them. The longest path of the resulting schedule is called the “critical path”; it consists of
activities that, if delayed, will extend the program beyond its predetermined completion date. In
addition to the critical path, there are other various side paths called non-critical paths. If affected
by improper scheduling or performance delays, these paths—not initially planned as critical—could
become critical and thus alter the original critical path.

A CPM schedule is designed to advise involved parties about the relative importance of performing
certain activities within the program completion parameters. For example, it indicates to
participants whether their work is critical, non-critical, or has any float associated with its
performance.

Planning of the complex sequences of projects within a program, and their dependencies are of the
principle skills of the successful contractor or program manager. If delay allegations are to be shown
effectively by the contractor and considered properly by the architect/engineer, it will be found that
in most situations that a properly prepared CPM indicating quantity output, physical progress, as
well as the passage of time is essential. The CPM facts, when married to law, must persuasively
demonstrate the desired and sought for result by virtue of the justice, equity, and fairness of each
party position.

2.2.2. Program Cost Estimation

Program cost estimating is performed throughout the course of the program. Many organizations
use a tiered funding process with a series of go/no-go decisions at each major stage of the program.
They agree to an overall financial management plan and commit to a budget only for the next stage
at each governance milestone.

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A weight or probability may be applied based on the risk and complexity of the work to be
performed in order to derive a confidence factor in the estimate. Statistical techniques such as
Monte Carlo simulation can also be used. This confidence factor is used to determine the potential
range of program costs. When determining program costs, decision makers need to consider not
only the development and implementation costs, but also sustainment costs that may occur after the
program is completed. Calculating full life cycle costs and including transition and sustainment
costs result in total cost of ownership. Total cost of ownership is considered to be relative to the
expected benefit of one program against another to derive a funding decision. There are numerous
estimating techniques to derive program cost estimates.

Program cost estimates should also identify any critical assumptions upon which the estimates are
made, as these assumptions may prove unfounded in the course of program delivery and require
reconsideration of the program business case or revision of the program management plan.

Finally, program cost estimation can support or guide cost estimation at the component level. Any
prevailing program- level cost estimation guidance intended for use at the component level should
be documented and communicated to component managers.

The outputs of this activity include program cost estimates, program cost estimation assumptions,
and Component cost estimation guidelines.

2.3. Resource Allocation and Budgeting for Construction Project

Programs

2.3.1. Program Resource Management Planning

Program level resource management differs from component level resource management, as
program managers must navigate uncertainty and balance the needs of their components. Program
resource management ensures all necessary resources, including people, equipment, and material,
are made available to component managers, enabling the program to deliver benefits.

Resource management planning involves identifying existing resources and determining the need
for additional ones. In human resources, the total required resources may be less than the total
quantity, as they can be reallocated between components. The program manager analyzes resource
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availability, capacity, and capability to avoid overcommitment or inadequate support. Historical

information can be used to determine the types of resources needed for similar projects and
programs.

The resource management plan is a component of the program management plan that forecasts the
expected level of resource use across the program components and relative to the program master
schedule to allow the program manager to identify potential resource shortfalls or conflicts over the
use of scarce or constrained resources. The plan also describes the guidelines for making program
resource prioritization decisions and resolving resource conflicts.

When resources are unavailable within the program, the program manager calls upon the larger
organization for assistance. When necessary, the program manager should work with the
organization to develop a statement of work (SOW) to contract the necessary resources.

The outputs of this activity include program resource requirements, and program resource
management plan.

2.4. Program Risk Management Planning

Program risk management planning identifies how to approach and conduct risk management
activities for a program by considering its components. The risk management plan is a component
of the program management plan that describes how risk management activities will be structured
and performed.

Planning risk management activities ensures that the level, type, and visibility of risk management
are appropriate, based on the risks and importance of the program to the organization. It identifies
the resources and time required for risk management activities. In addition, it establishes an agreed-
upon basis for evaluating risks.

The program risk management planning activity should be initiated early in the program definition
phase for successful performance and may need to be repeated for major changes. The program risk
register is a key output, recording risks, risk analysis results, and risk response planning. This living

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document is updated as program risks and responses change during program delivery, ensuring a
comprehensive risk management approach.

Define risk profiles of organizations to create a suitable approach to managing program risks, adjust
risk sensitivity, and monitor criticality. Risk targets and thresholds influence the program
management plan, which can be expressed in policy statements or actions. Market factors and the
culture of the organization and stakeholders also influence risk management. These factors should
be considered as an environmental factor and influence the decision-making process.

Organizations often have predefined risk management approaches, including risk categories,
concepts, risk statement formats, roles, and decision-making authority levels. Past experiences and
lessons learned from similar programs are crucial assets for creating an effective risk management
[Link] outputs from this activity include program risk management plan, and program risk
register.

 SUMMARY

Identifying and Defining Program Objectives and Scope

• Defines program objectives and scope.
• Sets up structures, monitors changes, coordinates project management.
• Plans tasks and resources across a portfolio.
• Aims to optimize schedules, create value, and share resources.
• Crucial for competitive success and sustainability in the construction sector.
• Combines management, organization, financing, and stakeholder needs.
Program Planning and Cost Estimating
• Defines objectives, approach, roles, responsibilities, communication channels, priorities,
and project completion.
• Identifies unique activities like design, contract formation, pre-construction studies,
contractor selection, construction phase, human resources, technical support, supervision,
and facility management.

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• Uses the Critical Path Method (CPM) for planning and scheduling, breaking down
program into individual activities.
• Performs program cost estimating, considering development, implementation, and
sustainment costs.
• Outputs include program cost estimates, assumptions, and component cost estimation
guidelines.
Program Level Resource Management
• Balancing component needs.
• Identifying and determining resource needs.
• Analyzing availability, capacity, capability.
• Implementing a resource management plan.
• Forecasting and prioritizing resources.
• Seeking larger organization assistance when resources are unavailable.
Program Risk Management Planning
• Outlines structure and execution of risk management activities.
• Ensures appropriate risk management based on program's importance and resources.
• Establishes basis for risk evaluation.
• Initiated early in program definition phase and updated as risks change.
• Influences plan based on risk profiles, targets, and stakeholder culture.
• Predefined approaches, past experiences, and lessons learned from similar programs are
crucial.

 Exercise 2.1:
Purpose:
▪ To help participants learn about the following key aspects of program management:

• Identifying and defining program objectives and scope

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• Program planning and cost estimating

• Program level resource management
• Program risk management planning.

Materials:
▪ Whiteboard or flipchart
▪ Markers
▪ Pen and sticky notes
▪ Case study (optional)
▪ Construction design management module
Time:
▪ 6 Hours
Discussion Questions:
▪ What are the key differences between a project and a program?
▪ What are the steps involved in identifying and defining program objectives and scope?
▪ What are the different types of program plans?
▪ What are the key factors to consider when estimating program costs?
▪ What are the different types of program resources?
▪ How do you manage program resources effectively?
▪ What are the different types of program risks?
▪ How do you develop a program risk management plan?
Activity:
1. Identifying and defining program objectives and scope

▪ Divide participants into small groups.

▪ Provide each group with a case study (optional) or ask them to come up with a program of their
own.
▪ Ask each group to identify the program's objectives and scope.
▪ Have each group share their findings with the larger group.

2. Program planning and cost estimating

▪ Discuss the different types of program plans and their purpose.

▪ Review the key factors to consider when estimating program costs.

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▪ Ask participants to work in small groups to develop a program plan and cost estimate for their
program.
▪ Have each group share their findings with the larger group.

3. Program level resource management

▪ Discuss the different types of program resources.

▪ Review the key principles of effective program resource management.
▪ Ask participants to work in small groups to develop a resource management plan for their
program.
▪ Have each group share their findings with the larger group.

4. Program risk management planning

▪ Discuss the different types of program risks.

▪ Review the steps involved in developing a program risk management plan.
▪ Ask participants to work in small groups to develop a risk management plan for their program.
▪ Have each group share their findings with the larger group.

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SESSION THREE
3. Implementing and Monitoring Construction Project Programs

Contents:
3.1 Executing the Program Management Plan
3.2 Monitoring Program Progress and Performance
3.3 Identifying and Managing Program Risks
Session summary
Exercises

3.1. Executing the Program Management Plan

The execution phase in construction program management involves executing the program
management plan to deliver the program's products or services. The plan outlines the program's
strategy, governance, organizational structure, and process for planning, controlling, and executing
it. The program manager develops the plan, which is divided into executing and monitoring and
controlling processes. The project team ensures tasks are performed, progress is monitored, and
changes are made. The project manager executes the plan activities, such as the communication and
risk management plans, and directs technical and organizational resources to execute the work
defined in the plans.

The process of executing the program management plan in the context of construction involves the
following steps:

▪ Establish the program management office (PMO).

The PMO is responsible for overseeing the execution of the program management plan. It
is typically staffed with experienced program managers and other professionals with the
skills and knowledge necessary to manage complex construction programs.
▪ Develop and implement the program management plan.
The program management plan should be a comprehensive document that outlines the
program's goals, objectives, scope, schedule, budget, and risks. It should also define the
roles and responsibilities of the various stakeholders involved in the program.

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▪ Manage the program's resources.

The PMO is responsible for allocating the program's resources, including people,
equipment, and materials, to the various projects within the program. It is also responsible
for ensuring that the program's resources are used efficiently and effectively.
▪ Monitor and control the program.
The PMO must regularly monitor the program's progress and make adjustments to the
program management plan as needed. This includes tracking the program's schedule,
budget, and risks.
▪ Communicate with stakeholders.
The PMO must communicate regularly with the program's stakeholders, including the
program owner, sponsor, and other stakeholders. This includes providing them with updates
on the program's progress and any challenges that the program is facing.
Here are some additional tips for executing the program management plan in construction:

▪ Involve the program's stakeholders early and often.

This will help to ensure that everyone is on the same page and that the program meets the
needs of all stakeholders.
▪ Be flexible and adaptable.
The construction industry is constantly changing, so it is important to be able to adapt the
program management plan as needed.
▪ Use technology to your advantage.
There are a number of software tools available that can help program managers to track
progress, manage resources, and communicate with stakeholders.
▪ Learn from your mistakes.
Every program will have challenges. The key is to learn from your mistakes and make
adjustments to the program management plan as needed.
By following these steps, program managers can increase the chances of success for their
construction programs.

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3.2. Monitoring Program Progress and Performance

Program delivery/execution phase activities include program activities required for coordinating
and managing the actual delivery of programs. These include activities around change control,
reporting, and information distribution as well as activities around cost, procurement, quality, and
risk.

During delivery management, program and project-level components perform monitoring and
controlling activities, collecting, measuring, and disseminating performance information to track
progress against objectives and assess trends. Continuous monitoring provides insight into program
health and identifies areas needing special attention. Monitoring activities determine when
corrective or preventive action is needed to align with strategic priorities. Requests for corrective
or preventive action may be approved at the component or program level, with outputs including
performance reports and forecasts.

Program performance reports provide a summary of the progress of all program components,
ensuring goals are met and benefits are delivered according to plan. They include current status
information, milestones, remaining work, earned value, and risks. Forecasts help program managers
and stakeholders assess the likelihood of achieving planned outcomes and predict the program's
future state based on current information.

3.2.1. Program Schedule Monitoring and Controlling

Program schedule monitoring and controlling is the activity of ensuring the program produces the
required capabilities and benefits on time. This activity includes tracking and monitoring the start
and finish of all high-level component and program activities and milestones against the program
master schedule planned timelines. Updating the program master schedule and directing changes to
individual component schedules is required to maintain an accurate and up- to-date program master
schedule.

Program schedule monitoring and controlling works closely with other program activities to
identify variances to the schedules and directs corrective action when necessary. Successful
program management is dependent on the alignment of program scope with cost and schedule,

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which are dependent on each other. Schedule control involves identifying not only slippages but
also opportunities to accelerate program or component schedules and should be used for proper risk
management. Program schedule risks should be tracked as part of the risk management activity.

The program master schedule should be reviewed to assess the impact of changes on other
components and the program. It may be necessary to accelerate or decelerate components to achieve
goals. Identifying slippages and early deliveries is crucial for program management. Approval of
deviations to component schedules may be necessary for program benefits. Due to program
complexity and long duration, the master schedule may need to be updated to include new or
remove components. The program roadmap should be assessed for potential revisions.

The program schedule monitoring and controlling activity include

▪ Updates to the program master schedule,

▪ Updates to the program roadmap, and
▪ Identification of schedule risks as outputs to the activity.

3.2.2. Managing Program Resources

Throughout program delivery, the program manager will need to monitor, control, and adapt
program resources to ensure benefits delivery. Resource prioritization allows the program manager
to prioritize the use of resources that are not available in abundance and to optimize their use across
all components within the program. This often involves human resource planning to identify,
document, and assign program roles and responsibilities to individuals or groups.

During program delivery, the need for staff, facilities, equipment, and other resources change. These
fluctuations are similar to the economics of supply and demand. The program manager manages
resources at the program level and works with the component managers who manage resources at
the component level to balance the needs of the program with the availability of resources.

Resource prioritization decisions should be based on the guidelines in the program resource
management plan. As decisions to change existing program components or to initiate new ones may
have impacts on program resources, the program resource management plan may need to be adapted
as a result.
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The outputs of this activity include program resource prioritization decisions, and updates to the
program resource management plan.

a) Resource Interdependency Management

Resources are often shared among different components within a program, and the program
manager should work to ensure that the interdependencies do not cause delay in benefits delivery.
This is achieved by carefully controlling the schedule for scarce resources. The program manager
ensures resources are released for other programs when they are no longer necessary for the current
program.

The program manager may work with the component managers to ensure the program resource
management plan accounts for changes in use of interdependent or scarce program resources.

The output of this activity includes updates to the program resource management plan.

3.3. Identifying and Managing Program Risks

Throughout program delivery, program risk management will monitor and control program risks
through:

▪ Program risk identification,

▪ Program risk analysis, and
▪ Program risk response management.
Risk monitoring is also conducted to determine whether:

▪ Program assumptions are still valid;

▪ Assessed risk has changed from its prior state, with analysis of trends;
▪ Proper risk management policies and procedures are being followed; and
▪ Cost or schedule contingency reserves are modified in line with the risks of the program.
Effective program risk monitoring and controlling also requires coordination with component risk
management functions.

a) Program Risk Identification

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The program risk identification activity identifies potential risks, documents their characteristics,
and prepares for their management. Participants may include program managers, sponsors, team
members, risk management team, external experts, customers, end users, component managers,
stakeholders, and external reviewers. Risk identification is an iterative process, with new risks
evolving or becoming known as the program progresses. The frequency and involvement of
participants may vary, but the risk statement format should be consistent for comparison. The
activity should provide enough information for risk analysis and prioritization.

The output of this activity may include updates to the program risk register.

b) Program Risk Analysis

Risk analysis at the program level should integrate relevant program component risks. Managing
the interdependencies among the component risks and the program provides significant benefits to
the program and its components.

Qualitative and quantitative risk analysis techniques are both useful to support program
management decisions. This step in the risk management activity produces the best information
supporting the contingency reserve and management reserve that should be set aside to deal with
risks that actually occur. The assessments should include costs, schedules, and performance
outcomes for the components as well as their interdependencies.

The impact of the negative risks (threats) and positive risks (opportunities) on the delivery of
benefits to the organization or external stakeholders should be considered at the program level. One
essential difference between programs and components is the time scale; component-level risks
should be dealt with within a relatively short time frame (i.e., at the end of a phase or a component),
while program risks may be applicable at a point in the potentially distant future.

The outputs of this activity may include

▪ Proposed risk responses,

▪ Updates to the program risk register, and
▪ Periodic risk reports showing threat and opportunity trends.
c) Program Risk Response Management

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To respond to risks, the program manager identifies and directs actions to mitigate the negative
consequences or to enable realization of potential benefits. The program manager may hold
contingency reserves at the program level to support risk responses. The program contingency
reserve is not a substitute for the component contingency reserve, which is held at the component
level.

Based on the program manager’s direction, components of the program risk register may be
updated, including:

▪ Specific actions to implement the chosen response strategy

▪ Budget and schedule activities required to implement the chosen responses
▪ Contingency plans and trigger conditions that call for their execution
▪ Fallback plans for use as a response to a risk that has occurred and the primary response
proves to be inadequate
▪ Residual risks that are expected to remain after planned responses have been taken, as well
as those that have been deliberately accepted
▪ Secondary risks that arise as a direct outcome of implementing the risk response.
The outputs of this activity may include:

▪ Direction to implement risk responses

▪ Program risk register updates
▪ Contingency reserve and management reserve
▪ Change requests

 SUMMARY

Construction Program Management Execution Phase

• Outlines strategy, governance, organizational structure, and process for planning,
controlling, and executing.
• Program manager develops the plan, divided into executing and monitoring processes.
• Project team ensures tasks are performed, progress is monitored, and changes are made.

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• Process includes establishing the program management office, developing and

implementing the plan, managing resources, monitoring and controlling the program, and
communicating with stakeholders.
• Effective execution requires stakeholder involvement, flexibility, adaptability, technology
use, and learning from mistakes.
Program Delivery Overview
• Involves change control, reporting, information distribution, cost, procurement, quality,
and risk management.
• Tracks progress against objectives and assesses trends.
• Provides program performance reports and forecasts.
• Monitors and controls program schedules for timely delivery.
• Optimizes resource use across all components.
• Balances program needs with resource availability.
• Manages resource interdependency and accounts for changes in resource use.
Program Risk Management Overview

• Identifies, analyzes, and responds to potential risks during program delivery.

• Ensures validity of program assumptions, changes in risk assessment, and modifications
to contingency reserves.
• Requires coordination with component risk management functions.
• Risk identification involves documenting risks and preparing for management.
• Analysis integrates relevant program component risks, focusing on impact on benefits
delivery.
• Program response management involves specific actions, budgeting, and managing
contingency reserves.

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 Exercise 3.1:
Purpose:
▪ To provide participants with a comprehensive overview of the roles and responsibilities of a
construction design manager.
▪ To introduce participants to key concepts and principles in design management.
▪ To develop participants' skills in managing and coordinating design teams and projects.
Materials:
▪ Whiteboard or flipchart
▪ Markers
▪ Sticky notes
▪ Construction design management module
Time:
▪ 4 Hours
Discussion Questions:
▪ What are the key activities that occur during the construction program management execution
phase?
▪ What are the different types of program delivery methods?
▪ What are the key risks associated with construction programs?
▪ What are some best practices for managing risk in construction programs?
Activity:
1. Construction Program Management Execution Phase
▪ Define the construction program management execution phase and discuss its key activities.
▪ Review the different types of project management methodologies that can be used to execute
construction programs.
▪ Discuss the importance of communication and collaboration during the execution phase.
▪ Highlight some of the challenges that can occur during the execution phase and how to mitigate
them.
2. Program Delivery Overview
▪ Define program delivery and discuss the different types of program delivery methods.
▪ Review the advantages and disadvantages of each program delivery method.

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▪ Discuss the factors that should be considered when selecting a program delivery method.
▪ Highlight some of the best practices for program delivery.
3. Program Risk Management Overview
▪ Define program risk management and discuss its importance.
▪ Review the different types of risks associated with construction programs.
▪ Discuss the key steps involved in the program risk management process.
▪ Highlight some of the best practices for managing risk in construction programs.

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SESSION FOUR
4. Evaluating and Closing Construction Programs

Contents:
4.1 Evaluating Program Outcomes and Success Criteria
4.2 Conducting Program Performance Reviews
4.3 Closing Out Construction Project Programs and Capturing Lessons Learned
Session summary
Exercises

A successful program is closed when it has realized its full potential of benefits and value. The
closure process ensures the program, and its component projects, are properly terminated through
the formal acceptance of the results. Once closed, a program must transition to operational status.
And once transitioned, a plan to sustain the benefits and value should be put in place. The final step
is to reflect with the team on lessons- learned and ways to improve future performance.

It has been my experience that the closure process is seldom fully implemented on construction
programs. All too often the team is dismantled long before formal closure occurs. And,
unfortunately, in the construction business being the “last one on the job” often can be an indication
of poor personal performance as the “star players” have already moved on to their next assignments.
Although this is short-sighted from a management perspective, it is, nonetheless, sometimes the
reality, and it can have a direct impact on the effectiveness and efficiency of the closure process.

4.1. Evaluating Program Outcomes and Success Criteria

The common construction term for the closure process is closeout. The goal of the closeout process
is the formal acceptance of the results. When done properly this will include the release of the
construction contractor from contractual obligations, the smooth transition of the project to
operational status, and in most cases the incremental realization of program benefits. A successful
closeout means different things to each member of the team. To the contractor it means resolving
the punch list and collecting the final payment. To the design professional it is a project that

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functions as intended. To the construction professional it is a project that is delivered on time, within
budget, and to a high standard of quality. And to the program team it is a project that contributes its
anticipated value to the program.

During the planning process the rules of engagement for the closeout process are established in the
program management plan, the general requirements, and the special provisions to the construction
contracts. Comparable to the other process groups, closure is managed through monitoring and
controlling the plan and taking corrective action as required.

4.2. Conducting Program Performance Reviews

4.2.1. Managing Contract Closeout

If not correctly planned or executed, the closeout of the construction contracts can be challenging
and frustrating. This is ironic because both parties of the contract (owner and contractor) have ample
incentive to close out the contracts properly and expedite final acceptance of the project. In most
cases properly fulfilling the obligations of closeout is a prerequisite to the final release of the
contractor’s retainage. Retainage is a portion of a contract payment that is held until full
performance of the contract terms. In construction, retainage will typically represent 5%–10% of
the construction contract price, which in many cases will be more than the profit the contractor will
make on the project. So from the contractor’s perspective a smooth closeout process can determine
whether the project will be a financial success. From the owner’s perspective a well- managed
closeout process will ensure that they “get what they paid for” and a smooth transition from
construction to operations.

There are many standards processed, often mandated for public work, for closing out construction
contracts. During the planning process the team will establish programwide closeout specifications
and include them in the general requirements or special provisions of the construction contracts.
The main focus during the execution of the closeout process should be to ensure project quality,
cross-project integration, and the integrity of the program. A secondary focus should be on
expediting the process as it is in everyone’s interest to do so. Regardless of the project delivery
method or program type, the closeout process will include the six basic steps shown in Figure 6.

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Figure 6. Standard closeout process.

There are things that can be done to increase the chances of success. Having a clear standardized
process that is well communicated and has the team’s commitment is critical. Because money is a
prime motivator for the contractors including specific closeout activities in the contractor’s
schedule of values in addition to calling attention to retainage is effective. For the same reason,
allowing the contractor to close out portions of the project in advance, and releasing partial
retainage, is effective. Having the right project staff, with adequate knowledge and time to manage
closeout effectively, is important.

4.2.2. Transitioning to Operations

Whether it is a roadway, a wastewater treatment plant, a new high school, or the renovation of an
historic building, all projects and programs cannot provide their full value without the proper
transition from construction to operational status. In construction we refer to this process as project
commissioning. Project commissioning is a quality-focused process that ensures all systems and
components are designed, installed, tested, operated, and maintained according to the operational

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requirements of the owner. Commissioning activities are applicable to all phases of the project,
from planning, design, procurement, construction, and the final handover to the owner.

During planning, commissioning activities focus on assuring the owner’s operational requirements
are properly integrated in the construction documents. This will include the details of systems tests
and procedures. The technical specifications will also include performance criteria, maintenance
requirements, and owner training. During construction the emphasis is on monitoring and
controlling the process with the focus on coordination, witnessing, and verification. And depending
on the nature of the program, commissioning activities sometimes includes an assisted operation
phase as well. Commissioning requires the active participation of the entire team. The program
team will be responsible for planning, defining commissioning procedures, coordination, and
quality assurance and control. The construction contractor is typically tasked with executing
commissioning tests and inspections. On larger or more complex projects, it may even be
appropriate to employ a commissioning authority whose sole role is to oversee the commissioning
process.

If managed properly and done correctly, a formal commissioning process can provide many
benefits. This is especially true for complex mechanical facilities and high-performance buildings.
For these types of programs the commissioning process has been proven to optimize energy use
and reduce operational costs. Commissioning also ensures the owner’s operational and maintenance
(O&M) staff is properly oriented and trained. Commissioning also improves record keeping and
the documentation of installed building systems.

4.3. Closing out Construction Project Programs and Capturing Lessons

Learned

The construction business emphasizes the importance of experience in managing complex projects.
To truly learn from experience, one must have made mistakes in the past and avoid repeating them.
An experienced construction manager is expected to have made most of their mistakes already.
However, learning from experience doesn't happen automatically; it requires proactive capturing
the benefits. Mary Oliver's instructions for living are "Pay attention, Be astonished, Tell about it."
Preparing and writing a final lessons-learned report can help achieve these goals.
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The main focus of a lessons-learned report is to reflect on what went right, what went wrong, and
to explore areas for improvement. It is a collection of the team’s thoughts, ideas, and notes with the
sole purpose of learning from mistakes and successes. It should be a collaborative effect, but must
be championed, and led, by the program manager to be successful. This will show management’s
commitment and support for the process.

Writing, and then sharing, a lessons-learned report has many benefits for both the team and the
organizations involved in the program, including:

▪ Cost Reduction.
Mistakes on construction programs are often expen- sive and in most cases can be easily
prevented. Discovering, and then sharing, the best approach to a similar problem or issue
will reduce mistakes and will automatically lead to cost savings.
▪ Efficiency Gains.
Formally documenting lessons-learned and then centrally storing them where they are
accessible organizationwide will save both time and effort during the next initiation and
planning processes. This lessons-learned database becomes the “organizational knowledge”
that can be passed from one program to the next.
▪ Continuous Improvement.
By constantly optimizing performancefrom one program to the next, and then distributing
that knowledge, the team and organization will continuously improve.
To be most effective a lessons-learned report should be comprehensive, written in a uniform format,
and be concise. Most organizations will have a standard format for lessons-learned reporting that
will make sharing of the information more efficient and beneficial.

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 SUMMARY

Program Closure Process Overview

• Program closure occurs when benefits and value are fully realized.
• It ensures proper termination of the program and its projects.
• Programs must transition to operational status and implement a plan to sustain benefits.
• Reflection on lessons learned and future performance improvement are crucial.
• Closeout in construction programs is often overlooked due to dismantling and poor
performance.
• Successful closeout involves resolving punch lists, functioning as intended, delivering on
time, within budget, and contributing to the program.
Construction Contract Closeout and Commissioning
• Crucial for releasing contractor retainage, typically 5%-10% of contract price.
• A well-managed process ensures smooth transition from construction to operations and
financial success.
• Project commissioning ensures quality-focused design, installation, testing, operation, and
maintenance.
• Proper management optimizes energy use, reduces operational costs, and improves record
keeping and documentation.
Construction Industry's Lessons-Learned Report
• Emphasizes the importance of experience in managing complex projects.
• Advocates for proactive learning from past mistakes.
• Highlights the role of a collaborative, program manager-led lessons-learned report.
• Benefits include cost reduction, efficiency, and continuous improvement.
• Advocates for a comprehensive, uniform, and concise report.
• Suggests sharing lessons can enhance team and organizational performance.

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 Exercise 4.1:
Purpose:
▪ To provide participants with a comprehensive overview of the program closure process,
construction contract closeout and commissioning, and the construction industry's lessons-
learned report..
Materials:
▪ Whiteboard or flipchart
▪ Markers
▪ Sticky notes
▪ Construction design management module
Time:
▪ 4 Hours
Discussion Questions:
▪ What are the key steps involved in the program closure process?
▪ What are the benefits of a well-managed program closure process?
▪ What are the key steps involved in construction contract closeout?
▪ What are the benefits of a well-managed construction contract closeout process?
▪ What are the key elements of a construction industry's lessons-learned report?
▪ What are the benefits of using a construction industry's lessons-learned report?
Activity:
1. Program Closure Process Overview
▪ Define the program closure process and explain its importance.
▪ Discuss the key steps involved in the program closure process, including:

o Developing a closure plan

o Assessing and addressing risks

o Communicating with stakeholders

o Finalizing all deliverables

o Closing out contracts and agreements

▪ Share best practices and tools that can be used to ensure a successful program closure.

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2. Construction Contract Closeout and Commissioning

▪ Define construction contract closeout and commissioning and explain their importance.
▪ Discuss the key steps involved in construction contract closeout, including:

o Finalizing all work and inspections

o Obtaining all necessary approvals and sign-offs

o Handing over the project to the owner

▪ Discuss the key steps involved in commissioning, including:

o Testing and verifying all systems and equipment

o Training the owner's staff on the operation and maintenance of the project
▪ Share best practices and tools that can be used to ensure a successful construction contract
closeout and commissioning process.
3. Construction Industry's Lessons-Learned Report
▪ Define the construction industry's lessons-learned report and explain its importance.
▪ Discuss the key elements of a construction industry's lessons-learned report, including:

o A description of the project and its goals

o A summary of the project's successes and challenges

o Recommendations for improvement on future projects

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References
 Challenges and Opportunities in the Ethiopian Construction Industry by Mulugeta
Belayneh

 Construction Management Association of America (CII) Website

 Construction Management in Developing Countries: A Comparative Study of Ethiopia
and China by Yin He
 Construction Program Management (4th Edition) by Harold W. Kerzner
 Construction Program Management Handbook (2nd Edition) by Paul D. Christenson and
Richard J. Woodhead

 Construction Program Management in Ethiopia: A Case Study of the Grand Ethiopian

Renaissance Dam by Ethiopian Construction Corporation
 Construction Program Management: A Guide for Owners, Managers, and Engineers by
Harold W. Kerzner

 Construction Project Management for the Global Professional (2nd Edition) by Douglas
W. Hubbard and Ronald L. Turner
 Construction Project Management in Developing Countries by A. C. Egbu
 Construction Project Management in Emerging Markets: A Case Study of Ethiopia by
Dereje Bekele
 Construction Project Management in Ethiopia: A Practical Guide by Ethiopian
Construction Project Management Association

 Construction Project Management: A Complete Guide to Managing Projects from Start

to Finish by Paul D. Dinsmore
 Construction Project Management: A Practical Guide by Stephen J. Hunicutt
 Effective Construction Program Management (2nd Edition) by Robert D. Gilbreath
 Ethiopian Construction Industry Development Plan (2016-2025)
 Ethiopian Construction Industry Transformation Council (CITC) Website

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 Global Construction Perspectives and Insights 2023 Report by KPMG

 Program Management for Construction by Gary D. Oberlender
 Project Management for Construction: Principles and Practices by Frederick E. Harris
 Project Management in Construction (6th Edition) by Sidney W. Canning

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