ADDIS ABABA UNIVERSITY
Addis Ababa Institute of Technology
School of Civil and Environmental Engineering
CONSTRUCTION MANAGEMENT
(CENG 5212)
Chapter Three
CONSTRUCTION MANAGEMENT
Addis Mesfin (MSc.)
What is Project Management
Project
Aproject is a unique process, consisting of a set of coordinated and
controlled activities with an assumed start and known finish dates,
undertaken to achieve an objective conforming to specific
requirements including constraints of time, cost and resources.
Projects characteristics
Temporary means that every project has a definite end, constrained
by time, finance & other borrowed resources;
Unique means that the product or service is different in some
distinguished way from all similar products or services.”
Complex (if applicable), associated with size, variety, handling
difficulty, importance, urgency, changes or a combination of two or
more of them.
A project is a one-shot, time limited, goal
oriented, major undertaking, requiring the
commitment of varied skills and resources.
isa combination of human and non human
resources pulled together in a temporary
organization to achieve specified goals
Management: is a means of integrating
resources( materials, finance, human resource,
information etc…) in order to achieve
organizational objectives efficiently and effectively
Project management: is the coordinated
management of a given project to ensure the best
use of resources in delivering to a specific quality,
time and cost.
Itis the application of knowledge, skills, tools &
techniques to project activities in order to meet
or exceed project requirements or stakeholder
needs & expectations from a project.
Objectives of a project management
A project should meet certain specific
objectives
It should be completed on time( specific time)
Should be accomplished within a budgeted
cost
Should meet the prescribed quality
requirements
…
Optimize: - Quality, time and Cost.
Quality
Balance
Time Cost
It should also ensure that the production of
construction works satisfy the client’s
functional requirements,
Construction to specified standards, Provision
of safe and satisfactory working condition.
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Functions of Construction Management
The following seven functions can better
classify the different functions of project
management: Planning, Organizing, Staffing,
Motivating, Communication, Measuring and
Correcting, and Coordinating.
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1. Planning
Planning is a function of devising the course
for the future with a vision, formulated for the
future state of the organization or the project.
Planning also involves preparation of
alternatives for achieving specified objectives.
In preparation of plans the following questions
should be addressed: What to do? , How to do
it? , Where to do it?, Who is to do it?, How
much does it cost?
The detailing of the plan depends on:
◦ Size of the project
◦ Degree of difficulty
◦ Knowledge and experience
◦ Degree and extent of indeterminate
operations
◦ Extent of internal and external constraints
Scheduling:
◦ Scheduling is timing of the work activities.
During scheduling questions like when to do it
and how long it takes should be addressed.
2. Organizing
Organizing is required to achieve effective utilization
of the people, facilities, equipment and money
available to the Organization. Organizing also
involves establishing a workable organizational
structure to divide the work into manageable
department/sections and delegate tasks accordingly.
3. Staffing:
Staffing involves assigning (employing) people to fill
the posts created within the organizational
structure. Staffing also involves matching the
organization’s needs with each employee’s goals
and desires.
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4. Motivating:
◦ Motivation is the set of processes that moves a
person towards a goal.
◦ Motivation is the internal or external forces that act
on a person that arouse enthusiasm and persistence
to pursue a certain course of action.
Motivated workforce will “go the extra mile”
5. Communication:
Communication is a very important
management responsibility. Communication
can be formal and informal; it is both written
and oral.
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6. Measuring and Correcting:
Measuring and Correcting involves:
◦ Measuring the actual performance
◦ Identify plan and schedule
◦ Compare plan against performance
◦ If there is difference, identify the reasons
◦ Analyze the costs incurred
◦ Take remedial measures
◦ Observe quality of work
“People work for what you inspect, not for what you
expect.”
7. Coordinating:
involves conducting regular departmental
and section heads meeting for discussion.
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Why is management vital in construction projects?
construction resources are scarce
Projects are hard to obtain easily and
becoming expensive and there is fierce
competition
Efficient & effective resource utilization has a
competitive advantage
Project Management Benefits
Makesthe budget available before the
expenditures starts
Avoids surprises during the execution works
Anticipates
problematic situations that may be
found, so preventive and corrective actions can be
taken before such situations become actual issues
Skills of a successful project manager
While experience in engineering and construction is
important, the critical skills one needs to be a
successful PM are management skills such as
leadership.
Leadership- the process of influencing individuals
or groups to accomplish an organizational goal or
mission
- it implies a people based set of activities such as
communicating, coaching, providing feedback,
supporting etc…
Beyond possessing the ability to influence people on his
team, the project manager should learn how to motivate
them and keep them energized toward meeting goals.
Convey the attitude that people and their work are valued
explain how each member’s function contributes to project
goals
heighten the exposure of low visibility or less appreciated
responsibilities
Convey confidence in people’s knowledge, ability and
work ethic
avoid double checking and micro management as much as
possible
assign roles and provide freedom for decision making for
achieving the goal.
Recognize good performance
openly recognize good achievements and attempts
to go beyond what’s expected
Lead by example
don’t ask others to do things that you wouldn’t be
willing to do yourself
maintain highest level of honesty and integrity at all
times.
Rewards of project management
There are a number of rewards associated
with being a successful project manager
Satisfaction and sense of accomplishment for
pulling together diverse group of people to
form a team.
Increased profit and enhanced cash flow
Another job opportunity from a satisfied
customer
Human resource management
Human resource is probably the most important of all
the resources involved in the Construction Industry
construction projects and construction firms are
effective as long as their employees are effective.
Any Human Resource management has to be based on
the existing Labor and other civil codes related to
worker’s rights.
Many construction projects face a challenge when it
comes to labor force management as they are not
aware of the prevailing laws and decrees.
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Labor Management:
There are three types’ labor relations:
◦ Industrial relation: refers to all types of
relationships between the parties in any
industry
◦ Labor relations: refers to the relationship
between the labor union and management
◦ Employee relation: describes the relationship
between management and individual employee
in that light it is some times called “Employee-
employee relations.”
Managing the Labor Relations Process
The labor relation management process has three phases:
1. Union Organizing:
- union organization management confronts the issues involved
with union formation, election, re election etc.
2. Collective Bargaining
-management representatives negotiate with union representatives
on terms of workplace. The end result of collective bargaining is
the labor agreement or contract.
-Wages, Hours and Employment Conditions are the mandatory
bargaining topics
◦ Wages: - Base pay rates, Overtime pay rates, Retirement benefits, Health
benefits, Travel pay etc.
◦ Hours: - Overtime, Holidays, Vacation, and Shifts.
◦ Employment Conditions: - Layoffs, Promotions, Seniority provisions, Safety
rules, Work rules, Grievance procedures, job description.
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Collective bargaining requires negotiating
skills such as the understanding of conflict
and conflict management.
The principles of negotiation include:
◦ Honesty: telling the truth
◦ Working out the essential elements of disputes
◦ Not to inject considerations that are not relevant to
the disputes
◦ To have patience
◦ To be flexible
The aim is to reach at the (9, 9) part and have a win/win result.
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C. Labor Contract Administration
The union contract is a collective agreement
that spells out the conditions of employment
and work rules that binds the labor union and
management.
Top management together with the labor
union leaders administer the contract and
fulfill its objects.
THANK YOU!
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Quiz one
Why do you need to manage construction
projects?
What is the effect of performing a project
with high effectiveness and low efficiency?