Lecture 14: Project Managment CEE 498 Construction Project Management

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Lecture 14 Project ManagmentCEE 498
Construction Project Management

• Jeffrey S. Russell, P.E., Ph.D.
• Construction Engineering Management
• Civil Environmental Engineering
• University of Wisconsin-Madison

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Structure

• I. Basics
• II. Introduction to the management system
• III. Pre-construction planning planning,
  organizing, and staffing
• IV. Pre-construction planning developing the
  project plan
• V. Pre-construction planning planning for
  production and support

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Structure (Contd)

• VI. Cost and risk control
• VII. Policies and procedures
• VIII. Purchasing and receiving
• IX. Subcontractor managment
• X. Project layout
• XI. Project start-up and closed-out

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I. Basics

• A. Five types of management - See Attachment 1
• B. Project management definition - the art of
  directing and coordinating human and material
  resources throughout the life of a project by
  using modern management techniques to achieve
  predetermined objectives of scope, cost, time,
  quality, and participant satisfaction - See
  Attachment 2

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I. Basics (Contd)

• C. Five Ms of project management
• 1. Material
• 2. Money
• 3. Manpower
• 4. Machines
• 5. Management

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I. Basics (Contd)

• D. Functions of project management for
  construction
• Specifying project objectives and plans which
  include the delineation of scope, budgeting,
  scheduling, setting performance requirements, and
  selecting project participants
• Maximizing efficient resource utilization through
  procurement of labor, material, and equipment
  according to the prescribed schedule and plan

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I. Basics (Contd)

• Implementing various operations through proper
  coordination and control of planning, design,
  estimating, contracting, and construction in the
  entire process
• Developing effective communication and other
  mechanisms for resolving conflicts among the
  various project participant
• See Attachment 3

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I. Basics (Contd)

• E. Managers had better assume that the skills,
  knowledge, and tools they will have to master and
  apply fifteen years hence are going to be
  different and new. Only they themselves can take
  responsibility for the necessary learning and
  relearning, and for directing themselves.
• - Peter F. Drucker

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I. Basics (Contd)

• F. Seagull Management
• Fly in
• Make a lot of noise
• Dump on everybody
• Fly off somewhere

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II. Introduction to the management system

• A. A management system is an orderly arrangement
  of functions through which managers get things
  done
• B. Functions
• Planning - Working out a course of action
• Organizing - Putting together interdependent
  parts
• Staffing - Locating, placing, training, promoting
  personnel
• Controlling - Checking for deviations, corrective
  action
• Directing - Giving orders and instructions

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II. Pre-construction planning Planning,
Organizing, and Staffing

• A. Introduction to planning
• Construction projects vary so much that each
  project must be planned individually
• Planning is accomplished in three steps
• Establishing goals
• Determining what must be done to achieve the
  goals
• Effective use of resources

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II. Pre-construction planning Planning,
Organizing, and Staffing

• B. Pre-construction planning
• C. The planning meeting(s)
• D. Organizing and staffing
• -See Attachment 4

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IV. Pre-construction planning Developing
the project plan

• A. Developing the project plan
• B. Developing the project schedule

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V. Pre-construction planning Planning for
production and support

• A. Initial Crew Analysis
• B. Test models and pilot studies
• C. Planning for support activities

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VI. Cost and risk control

• A. Introduction to control and control systems
• B. Labor cost control
• C. Risk control the importance of
• documentation

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VII. Policies and procedures

• A. Help establish how thing which have to
• be done are going to be done
• B. Developing policies and procedures for a
• jobsite
• C. Developing policies and procedures for
• administering paper work
• D. Project filing procedures

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VIII. Purchasing and receiving

• A. Procuring - Locating, buying, ordering, and
  receiving materials, supplies, and equipment
• Purchasing - involves locating and buying of
  materials, supplies, and equipment there is a
  great need for discipline in the purchasing
  process
• Purchase orders
• Responsibility for purchasing

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VIII. Purchasing and receiving (Contd)

• Terms and conditions of the purchase to be
  specified in the purchase order
• Purchase control system
• Office and field purchasing
• Short form P.O. (used mostly for field purchases)

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VIII. Purchasing and receiving (Contd)

• B. Expediting - Coordinating the ordering and
  receiving of purchased items
• Responsibility for expediting must be clearly
  defined
• Expediter must have ALL information required
• Expediting is a key coordination function it
  requires experience and skills

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VIII. Purchasing and receiving (Contd)

• C. Receiving materials and supplies - 5 steps
• Jobsite unloading - be careful to minimize
  handling
• Material inventory - count!
• Material inspection - for damages, conformance
  with the order
• Delivery receiving report
• Logging in delivery

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IX. Subcontractor management

• A. Issuing a subcontract
• A contract creates obligations for both parties
  to deal effectively with all contractual
  obligations, all team members must fully know and
  understand the contract

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IX. Subcontractor management (Contd)

• B. Subcontractor management a big part of the
  job - 5 major areas
• Analyzing bids and issuing subcontracts
• Review of subcontractor site requirements
• Processing submittals and change orders
• Scheduling and coordinating
• Controlling quality, safety, and payments

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IX. Subcontractor management (Contd)

• C. Subcontractor coordination meetings
• Purpose
• Keep communications between GC and subs open and
  candid
• Maintain communications among the subs
• give all contractors an opportunity to discuss
  their problems and learn about the problems
  others are facing
• Help to schedule and coordinate the project

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IX. Subcontractor management (Contd)

• Types of meetings
• Management meetings
• Monthly or bi-monthly meetings with a set agenda
  for an in-depth status review of job progress,
  schedule, submittals, quality, and safety, and
  any special problems
• Attendance - Owner, A/E, project manager,
  superintendent, and major subs
• Minutes should be taken and sent to all who
  attended plus everybody involved in the subjects
  discussed

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IX. Subcontractor management (Contd)

• Weekly project meetings
• These meetings are centered primarily on
  scheduling and coordination, but can also cover
  cleanup, quality, safety, etc.
• Pre-construction planning meetings
• To discuss scope of work, long lead time items,
  material handling and storage requirements, and
  activity duration

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IX. Subcontractor management (Contd)

• D. Subcontractor default
• Be sensitive to early warning signs
• Follow notification requirements if subcontractor
  performance falls below acceptable standards
• Follow contract provisions exactly for
  termination procedures
• Try to work problems out with banks, bonding
  company, etc., so no new subcontractor has to be
  employed

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X. Project layout

• A. Organizing the project layout
• Proper placement of yard, office, roads, material
  storage and fabrication
• 60 to 70 of all labor cost to install materials
  is spent to get the materials to the location
  where it is installed

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X. Project layout (Contd)

• Items to consider
• Site access and security, number and location of
  entrances
• On-site access roads materials, drainage,
  maintenance, etc.
• Job office location and layout
• material storage areas include subs!
• Stockpiling of dirt for backfill
• Fabrication areas
• Trash removal

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X. Project layout (Contd)

• B. Material storage and protection
• Storing materials so they can be found record
  the location
• Protection from weather follow manufacturers
  instructions
• Allow for mechanized handling
• Protection from theft lights, locks, security
  devises
• Controlling its use define responsibilities for
  control

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X. Project layout (Contd)

• C. Controlling small tools and supplies
• Limit access to small tools and supplies
• Limit the way they can be obtained
• D. Material handling and fabrication
• Mechanize when possible
• Use assembly line techniques plan the location,
  plan the flow of materials, plan the special
  tools and equipment needed

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X. Project layout (Contd)

• The secrets of efficient prefabrication
• Minimize the moves for materials and workers
• Minimize the hand labor
• Remember that the shortest distance between two
  points is a straight line

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XI. Project start-up and closed-out

• A. Start-up
• Pre-construction planning, organizing and
  staffing have been completed and the necessary
  permits have been obtained
• Mobilization the initial ordering and receiving
  of material, equipment and manpower, and the
  locating of the offices and trailers to get the
  project under way
• Use start-up checklists!!

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XI. Project start-up and closed-out (Contd)

• B. Close-out
• Closing out a project is an essential activity
  of project management. A job is not closed out
  until it is 100 accepted by the owner. Momentum
  and efficiency established in the construction
  phase should not be lost to complacency and
  inefficiency when it comes to close out the
  project