Construction and Engineering

Project Management
01- Project Management Terminology and Fundamentals

Portfolio

Program Program

Project Project

Operations

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Table of Contents Module 1

❑ Project Management ❑ Adaptive or Agile Project Life Cycles

❑ Project Definition ❑ Project and Product Life Cycles
❑ Construction Projects ❑ Project Constraints
❑ Complex projects ❑ Factors influencing projects
❑ Portfolio, Program and Project ❑ Project metrics:- how do you measure project success?
❑ Program Definition ❑ Operations and Projects
❑ Portfolio Characteristics ❑ What is the PMBOK® Guide?
❑ Program Characteristics ❑ Overview of knowledge areas
❑ Project Life Cycles ❑ What is the Construction Extension to the PMBOK® Guide?
❑ Predictive Project Life Cycles ❑ Exercise

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Project Management
Managing projects in the construction industry typically includes:

❑ Identifying requirements.
❑ Addressing stakeholders’ needs, concerns, and expectations.
❑ Setting and maintaining active communication with stakeholders.
❑ Balancing the competing project constraints.
❑ Project Health, Safety, Security, and Environmental Management (HSSE).
❑ Financial Management

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Project Definition
A temporary endeavor undertaken to create a unique product, service, or result.
❑ Defined start and end.
❑ Unique product.
❑ Success measured by project and product quality, timeliness, budget compliance and degree of
customer satisfaction.

Product
Start Plan Do Close Service
Result

Construction projects could also be required to address:

• The geography
• Site conditions
• Communities
• Physical environments
• Existing infrastructure
• A wide range of stakeholder requirements.
• The complexity of team specialists and contractors.

Source: PMBOK® Guide and the Construction Extension

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Construction Projects

Typical construction projects may deliver:

• Manufacturing or assembly complexes
• Dams, highways, bridges, wastewater and water supply systems, airports, railways, entertainment
facilities, museums, and city parks
• medical centres, educational campuses for schools and colleges, seaports, and rail stations
• Office towers, urban developments, and residential units
• Roads, sidewalks
• Utilities that deliver water, electricity, fuel, and telecommunications
• Event-based construction (e.g. for the Olympics) or other superstructures and megacities

Source: PMBOK® Guide and the Construction Extension

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Complex projects: Large Hadron Collider
• The Large Hadron Collider (LHC) was built by the European Organization
for Nuclear Research (CERN) from 1998 to 2008, with the aim of
allowing physicists to test the predictions of different theories of particle
physics and high-energy physics.
• It was built in collaboration with over 10,000 scientists and engineers
from over 100 countries, as well as hundreds of universities and
laboratories.
• It lies in a tunnel 27 km in circumference, as deep as 175 meters beneath
the Franco-Swiss border near Geneva, Switzerland.
• It is the world’s largest refrigerator, requiring 10,080 tons of liquid
nitrogen and nearly 60 tons of liquid helium to bring the temperature of
the collider’s huge electromagnets down to -271.3°C.
• The interior of the LHC’s ring tunnel is the emptiest place in the entire
solar system – the machine’s particle beams travel through an ultra-high
vacuum with ten times less pressure than on the Moon.
• Collision data is produced at a rate of tens of petabytes per year, to be
analyzed by a grid-based computer network infrastructure.
• By 2012 the LHC Computing Grid was the world's largest computing grid,
comprising over 170 computing facilities in a worldwide network across
36 countries.
[Link] • The LHC was shut down in early December 2018 for two years of
amazing-engineering-wonders-of-today-tomorrow/
refurbishments and upgrades and will resume operations in 2021.
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Complex projects: Terraforming Mars
• The intent is making Earth’s nearest neighbor more
amenable to life of the earthly variety.
• Comets may be redirected to impact the Red Planet to
provide water for oceans, which would be seeded with
algae in order to boost the oxygen content.
• The placement of giant orbiting mirrors to focus
sunlight upon Mars’ polar icecaps, thus releasing liquid
water and gaseous carbon dioxide to kick-start a
greenhouse effect are also investigated.

The Mars One project plans to establish the first human

settlement on Mars.
• The first crew of four astronauts is scheduled to arrive
on Mars in 2025, after a seven-month journey from
Earth.
• Further teams would join their settlement every two
years, with the intention that by 2033 there would be
over twenty people living and working on Mars.
• On 15 January 2019, a court decision was settled to
liquidate the organization, bankrupting it in the
[Link] process. ([Link]
engineering-wonders-of-today-tomorrow/
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 Construction and Engineering
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Portfolio, Program and Project

To achieve the
strategic objectives.

To enable the benefits

to be realized

To ensure the delivery

of the products
required.

The Construction Extension to the PMBOK® Guide

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Program Definition

A group of related projects, subprograms and program activities managed in a coordinated

way to obtain benefits not available from managing them individually.

Program

Project A Project D
Project F

Project B Project C Project E

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Portfolio Characteristics
❑ Components not necessarily interdependent or related.
❑ Components can be measured, ranked, and prioritized.
❑ To achieve one or more organizational strategy and objective.
❑ Has the potential to be longer term with new projects rotating into the portfolios or programs.
❑ The aim of portfolio management is to:
▪ Guide organizational investment decisions.
▪ Select the optimal mix of programs and projects to meet strategic objectives
▪ Provide decision-making transparency.
▪ Prioritize team and physical resource allocation.
▪ Increase the likelihood of realizing the desired return on investment.

A portfolio consists of projects, programs, sub-portfolios, and operations managed as a group to achieve strategic objectives.
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Program Characteristics

❑ Longer duration than a project but still temporary

❑ Manage project interdependencies
❑ Resolving project/program resource constraints, issues and conflicts
❑ Aligning project and program objectives with organizational objectives
❑ Resolving issues between component projects and the program level
❑ Managing change on program level
❑ Supporting individual project managers
❑ Success is measured by degree to which benefits were satisfied
❑ Align with the organizational or strategic direction that affects program and project goals and objectives;
❑ Managing program risks that may impact multiple projects in the program;
❑ Allocating budgets across multiple projects within the program; and
❑ Assuring benefits realization from the program and component projects.

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Project Life Cycles

❑ The series of phases that a project passes

through from its initiation to its closure.
❑ Determined by the management and control
needs of the organization or organizations
involved in the project, the nature of the
project itself, and its area of application.
❑ Provides the basic framework for managing
the project, regardless of the specific work
involved
❑ Can range from predictive or plan-driven approaches to adaptive or change-driven approaches.
❑ The construction life cycle typically involves three main players: the owner, the designer and the
constructor (contractor).

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Predictive Project Life Cycles

Initiation / Concept
Project Charter
(Feasibility study,
Planning / Design
RFP, IFB, Contract) Requirements document
Stakeholder register Project Management Plan Execution / Construction
(contract(s),specifications, (Project criteria, Basic drawings,
Progress reports
and, work standards) Schedule, Budget, Work plan, Turnover / Closeout
Change requests
Detailed drawings and
Specifications) Startup / Commissioning
Turnover to customer
Lessons learned
Final project report

In a predictive project life cycle, the project deliverables are clearly defined at the start of the project and
any changes to the scope are progressively managed.

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Adaptive or Agile Project Life Cycles
❑ Preferred when dealing with a rapidly changing environment, when requirements and scope are difficult to define in advance, and when it
is possible to define small incremental improvements that will deliver value to stakeholders.

❑ The product is developed through a series of repeated cycles, while increments successively add to the functionality of the product.

❑ A detailed scope per iteration is defined and approved at the start of each iteration.

❑ Each iteration incrementally builds the deliverables until the exit criteria for the phase are met, allowing the project team to incorporate
feedback.

❑ The sponsor and/or customer representatives should be continuously engaged with the project to provide feedback on deliverables as
they are created and to ensure that the product backlog reflects their current needs.

Plan Build Test Deploy Iteration 1

Plan Build Test Deploy Iteration 2

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Project Constraints
A limiting factor that affects the execution of a project, program, portfolio, or a process:

Generic: Other:
❑ Scope. ❑ Language & Culture.
❑ Quality. ❑ Geographical location.
❑ Schedule. ❑ Safety and Environment
❑ Budget. ❑ Contracting and purchasing
❑ Resources. ❑ Governmental, legal, or regulatory
❑ Risks. ❑ Funding limits
❑ etc.

▪ Competing with one another.

▪ Importance depends on the project.
▪ Can change over time.

The project manager tailors the approach for managing these constraints based on the project environment, organizational culture,
stakeholder needs, etc.
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Factors influencing projects
Future Now

Assumption :- Something that Constraint :- An applicable

can not be proved or known to restriction or limitation, either
be true or false and that is internal or external to a
considered to be true for project, which will affect the
planning purposes. performance of the project or a
process.

Risk :- An uncertain event or Issue/problem/benefit :- A

condition that, if it occurs, has a function associated with the
positive or negative effect on a project that adversely or
project’s objectives positively affect the project.

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Factors influencing projects

Assumption :- Sales of the Constraint :- There are not

scaled down version of the enough funds to finance the
product will provide enough whole project therefore the
funds to complete the project. latter part of project must be
funded from sales of a scaled
down version of the product.

Risk :- If the sales of the scaled Issue/problem/benefit :- A

down version of the product is competitor releases a similar
slower/faster than anticipated it product with more features as
can impact negatively/positively our scaled down version.
on the duration of the project.

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Project metrics:- how do you measure project success?

• There is no universally agreed definition of project success.

• Agree on the right metrics for the project with your client before the start of the project.
• Collect the metrics to show whether you successfully met the criteria, thus ensuring that clients will get what they want.
• May include:
✓ Time metrics
✓ Cost metrics
✓ Scope metrics
✓ Quality metrics
✓ Environmental metrics
✓ Safety metrics
✓ Measurements of the achievement of the project objectives

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Operations and Projects

Organizational Strategy

Operations:
• Create saleable products or services
• Integrate project’s products into customer offering Delivered to
• Long term support for products or services the customer

Resources, Know-how & Support Project product: • Educational buildings

• Dams • Housing
Project • Highways • Airports
• Parks • Infrastructures that deliver
• High rise buildings water, electricity, etc.

Maintenance or operation are normally not considered to be a part of the construction project, but part of operations.
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What is the PMBOK® Guide?

❑ 49 Processes – what you should do (A systematic series

of activities to reach a desired end result)
❑ 5 Process Groups – A logical grouping of project
management processes addressing initiating, planning,
executing, monitoring and controlling, and closing
processes. Project management process groups are not
project phases.
❑ 10 Knowledge Areas – what you should know e.g. the
processes, practices, inputs, outputs, tools, and
techniques used on most projects.

Source: The PMBOK® Guide Sixth Edition

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Overview of knowledge areas

The ten PMBOK® Guide knowledge areas are:

▪ Project Integration Management.
▪ Project Scope Management.
▪ Project Schedule Management.
▪ Project Cost Management.
▪ Project Quality Management.
▪ Project Resource Management. Other areas that a construction project
▪ Project Communications Management. manager may require knowledge of may
▪ Project Risk Management. include:
▪ Project Procurement Management. ▪ Project Health, Safety, Security,
▪ Project Stakeholder Engagement. and Environmental (HSSE)
Management
▪ Project Financial Management
▪ Local cultures and customs.
▪ Technological interfaces.
▪ Laws and regulations.
▪ Etc.

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11.1 Plan Risk Management Knowledge Areas
6.1 Plan
11.2 Identify
Schedule
Risks Management
5.1 Acquire
9.3
4.5 Plan Scope
Monitor Resources
and Management
Control Project

10. Communication
6.2 Direct
7.1
11.3
4.3 Define
Plan
Perform
Cost
andProject
Activities
Qualitative
Management
Manage Project
Risk
9.1
10.1
12.1
13.2
9.4
10.2
11.6
13.3
5.5
13.4 Project
4.2 Validate
5.2 Collect
Plan
Develop
Work
Implement
Plan
Manage
Monitor Management
Resource
Communication
Procurement
Stakeholder
Requirements
Scope
Team
Project
Stakeholder
Communications
Stakeholder
RiskManagement
Management
Responses

12. Procurement

13. Stakeholder
4.1 Close
13.1
6.3
7.2
8.1
8.2
12.2
6.6
7.4
8.3
9.6
10.3
11.7
12.3
4.7 Management
Develop
Sequence
Estimate
Plan
Manage
Control
Work
Monitor
Analysis
Identify
Conduct
Control
Quality
Project
Schedule
Costs
Quality
Resources
Quality
Project
Procurements
Stakeholders
Risks
Costs
Communications
Procurements
Activities
Management
or Charter
Phase
5.3 Control
9.2
9.5
4.6
5.6 Define
Estimate
Manage
Perform
Plan
Management
Engagement
Scope
Scope
Integrated
Team
Activity Resources
Processes Change

9. Resources
4. Integration
6.4 Manage
7.3
11.4
4.4 Estimate
Determine
Perform Project
Activity
Quantitative
budget
Processes Knowledge
Durations
Risk

6. Schedule
5.4 Create
ControlWBS
6.5 Develop
AnalysisSchedule

8. Quality
5. Scope

11. Risk
11.5 Plan Risk Responses

7. Cost
Phases Groups
Initiation Initiating 1 1 2
Planning Planning 1 4 5 3 1 2 1 5 1 1 24
Executing 2 1 3 1 1 1 1 10
Execution
Mon & Contr. 2 2 1 1 1 1 1 1 1 1 12
Close-out Closing 1 1
Note: Click on the oval with the number of project 7 6 6 4 3 6 3 7 3 4 49
management processes to toggle detail on and off.
[Link] PMP Prerequisites and tips

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What is the Construction Extension to the PMBOK® Guide?
It seeks to improve the efficiency and effectiveness of the management of construction projects and
includes tools, techniques, procedures, processes, and lessons learned applicable to the construction
industry. It also includes:
• Unique aspects of the project environment and complexity for which the
project management team should be aware in order to manage the project
efficiently and effectively;
• Common knowledge and practices, which, if followed, will improve the efficiency
and effectiveness of the project
• Industry-specific knowledge domains to enable the project manager to
manage the project successfully.

Project management professionals working in the construction industry (architecture,

engineering, and construction) and other closely related industries should use both the
PMBOK® Guide and the Construction Extension concurrently in the execution of their
responsibilities.

Source: The Construction Extension to the PMBOK® Guide

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Exercise 01 – Project Management Terminology

In your own words:

1. Describe the differences between a portfolio, a program and a project.

2. List 5 most important documents produced throughout the project life cycle.

3. Describe the difference between a risk, an assumption, an issue and a constraint.

Evaluation guide:
1. Did they understand & address the question? (max 50 marks).
2. Did they contribute new insights from own experience? (max 50 marks).
Time Allowed:
1. Prepare 15 minutes A
2. Present 5 minutes
3. Evaluate 1 minute

C B

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