MODULE 3
(CONSTRUCTION PROJECT MANAGEMENT CONCEPTS)
I. Construction Project Management FACT:
(CPM)
Businesses that invest in established
• The process of planning, project management methods experience
organizing, and controlling significantly reduced financial losses, as
construction activities to achieve they are 28 times less likely to encounter
project objectives. failures in their strategic initiatives and
achieve more reliable results.
Importance of CPM
Key Project Participants
1. Timely Project Completion
Effective project management • Project Manager – Planning,
ensures that construction projects budgeting, coordination, risk
are completed within the agreed management
upon timeframe. By creating
realistic schedules, monitoring
• Engineer/Architect – Design,
progress, and addressing delays permits, technical feasibility
promptly, project managers keep
• Subcontractors/Trades –
the project on track and minimize
Specialized construction tasks
disruptions.
2. Quality Assurance • Suppliers/Vendors – Materials
and equipment
Project management enforces
adherence to industry standards, • Other Stakeholders – Owner,
codes, and regulations, ensuring government agencies, inspectors,
that the project meets or exceeds consultants
client expectations. By prioritizing
FACT:
quality throughout the
construction process, the Due to poor project performance,
likelihood of defects and rework is organizations waste an average of $97
reduced. million for every $1 billion invested in
projects. This number is greatly reduced
3. Stakeholder Satisfaction
with qualified construction project
Construction projects involve management.
multiple stakeholders, including
II. Fundamentals of CPM
clients, investors, and end-users.
Project management acts as the 1. Project Planning & Scheduling
bridge between these
2. Team Building
stakeholders, effectively
communicating progress, 3. Cost Estimation & Budgeting
addressing concerns, and
4. Monitoring, Control & Reporting
managing expectations.
FACT:
Construction rework activities directly
result in productivity losses of up to 300%.
These losses can be avoided with effective
construction project management.
III. Project Organization Structures V. Value Engineering (VE)
• Functional – Limited Project • Goal: Maximize function at
Managaers authority minimum cost
o Most organizations are • Value = Function / Cost
divided along functional
• Steps include idea generation,
lines.
evaluation, development, and
o Projects are initiated and implementation
executed by the divisional
Steps:
managers.
1. Gather information.
o In this structure, project
2. Think creatively.
managers usually don’t
3. Evaluate ideas.
have a lot of authority to
4. Develop and analyze.
obtain resources or to
5. Present discoveries.
manage schedules and
6. Check cost and implications.
budgets.
7. Client approval.
• Project-Oriented – Project 8. Implement changes.
Managers has full control
o These companies do most
VI. Construction Estimates
of their work on a project
basis. Construction estimating is a
foundational principle in forecasting the
o Project managers are
cost of construction of a structure. Project
usually full time in the role
owners also use construction estimation
• Matrix – Hybrid; shared authority to determine a project’s feasibility, scope,
and the necessary budget allocations.
o Somewhere in between (a
Proper cost estimates for construction
hybrid).
prevent the contractor from losing money
o Project managers have a bit and the client from overpaying.
more authority.
Types
IV. Contracts & Specifications
• Conceptual Estimate
Engineering contracts might not be the • Order of Magnitude Estimate
most exciting part of your job, but they • Design Estimate
are by far one of the most important. • Budget/Bid
Without a good solid contract in place, • Unit Cost Estimate
your projects can easily fall apart.
• Feasibility Estimate
Types • Control Estimates
• Fixed-Price (Most Common)
• Cost-Plus (Reimbursement)
• Time and Materials (“Arawan”)
• Unit Price