PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

111
PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT © www.asia-masters.com

Transcript of PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Page 1: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

© www.asia-masters.com

Page 2: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Project Management General Review

© www.asia-masters.com

Page 3: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

What is Project Management

• Project Management is the application of skills, knowledge, tools and techniques to meet the needs and expectations of stakeholders for a project.

• The purpose of project management is prediction and prevention, NOT recognition and reaction

© www.asia-masters.com

Page 4: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Triple Contraint

Quality

Scope

Time

Cost

© www.asia-masters.com

Page 5: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Triple Contraint

• Increased Scope = increased time + increased cost

• Tight Time = increased costs + reduced scope

• Tight Budget = increased time + reduced scope.

© www.asia-masters.com

Page 6: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

NATURE OF THE CONSTRUCTION INDUSTRY

Like Manufacturing industry – Involves the production of a physical product

Like Service industry – Does not accumulate large amount of capital – Many small businesses  

Success or failure is highly dependent on the qualities of the people rather than Technologies protected by patent or Availability of capital facilities

© www.asia-masters.com

Page 7: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

CONSTRUCTION INDUSTRY IS HIGHLY INCENTIVE ORIENTED 

• Advances tend to develop from innovations or “better ideas”

• Cannot be protected by laws of secrecy or patents

• Ideas disseminate quickly• Benefit Competitors• Lack incentive for investment for R&D

© www.asia-masters.com

Page 8: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Owner wants to achieve best value for their investment

Contractors desire to bid low enough to win but high enough to realize profit on investment

Workers hope to achieve better living standards and working conditions

 

INTEREST GROUPS

© www.asia-masters.com

Page 9: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Owner wants to achieve best value for their investment

Contractors desire to bid low enough to win but high enough to realize profit on investment

Workers hope to achieve better living standards and working conditions

 Architect and Engineers are not directly

associated with the above groupsProfessional achievement more attractive

INTEREST GROUPS

© www.asia-masters.com

Page 10: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

• Know Your Scope of Works

• Understand Your Contractual Obligations

• Plan Activities in Detail

• Resolve Problems Quickly

• Manage Subcontractors

• Manage Cash Flow

Project Management

Page 11: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Introduction• The PMBOK is an inclusive term that describes the sum of

knowledge

• within the profession of project management

• PMBOK is applied and advanced by both practitioners and academics

• PMBOK can be and is being used for projects in various fields of professions

• including Software engineering

PMP As Construction Management Methodology

© www.asia-masters.com

Page 12: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

The Project Management Context

• Project Phases and Project Life Cycle• Each project is unique enterprise• Phases can involve a degree of uncertainty• Each project phase is marked by completion of one or more deliverables• A deliverable is a tangible, verifiable work product• The project life cycle serves to define the beginning and the end of a project

• Project Stakeholders• Are individuals and organizations who are actively involved in the project, • Whose interests can have positive or negative influence on project execution

and project completion. (Project manager, Customer, Performing organization, Sponsor)

© www.asia-masters.com

Page 13: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Project Life Cycle

Initiation Phase Definition Phase Planning Phase Implementation

PhaseDeployment

Phase Closing Phase

© www.asia-masters.com

Page 14: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Initiation Phase

• Define the need• Return on Investment Analysis• Make or Buy Decision• Budget Development

© www.asia-masters.com

Page 15: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Definition Phase

• Determine goals, scope and project constraints• Identify members and their roles• Define communication channels, methods, frequency and content• Risk management planning

© www.asia-masters.com

Page 16: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Planning Phase

• Resource Planning• Work Breakdown Structure• Project Schedule Development• Quality Assurance Plan

© www.asia-masters.com

Page 17: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Work Breakdown Structure

• For defining and organizing the total scope of a project

• First two levels - define a set of planned outcomes that collectively and exclusively represent 100% of the project scope.

• Subsequent levels - represent 100% of the scope of their parent node

© www.asia-masters.com

Page 18: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Implementation Phase

• Execute project plan and accomplish project goals• Training Plan• System Build• Quality Assurance

© www.asia-masters.com

Page 19: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Deployment Phase

• User Training• Production Review• Start Using

© www.asia-masters.com

Page 20: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Closing Phase

• Contractual Closeout• Post Production Transition• Lessons Learned

© www.asia-masters.com

Page 21: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

PMBOK 21/15

Page 22: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

The Project Management Processes (I)

• Process Groups:• Initiating processes – recognize when project or phase should begin• Planning processes – designing and maintaining a scheme which leads to successful

accomplishment of a project• Executing processes – coordinating people and resources to carry out the plan• Controlling processes – monitoring and measuring progress and taking corrective actions

when necessary• Closing processes – analyzing acceptance of the project or phase and bringing it to an end

Links between process groups =>

© www.asia-masters.com

Page 23: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

The Project Management Knowledge

Areas

• Project Integration Management• Ensure that various elements of the project are properly coordinated and integrated• Processes: Project Plan Development, Project Plan Execution, Overall Change Control

• Project Scope Management• Ensure that the project includes all the work required, • And only work required, to complete the project successfully• Processes: Initiation, Scope Planning, Scope Definition,

Scope Verification, Scope Change Control

• Project Time Management• Ensure timely completion of the project• Processes: Activity Definition, Activity Sequencing,

Activity Duration Estimating, Schedule Development, Schedule Control

23/15© www.asia-masters.com

Page 24: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

• Project Cost Management• Ensure that the project is complete within the approved budget• Processes: Resource Planning,

Cost Estimating, Cost Budgeting, Cost Control

• Project Quality Management• Ensure that the project will satisfy the requirements• Processes: Quality Planning, Quality Assurance,

Quality Control

The Project Management KnowledgeAreas (I)

© www.asia-masters.com

Page 25: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

The Project Management KnowledgeAreas (II)

• Project Communication Management• Ensure timely and appropriate generation, collection, storage• And ultimate disposition of project information

• Processes: Communications Planning,Information Distribution, Performance Reporting, Administrative Closure

• Project Risk Management• Concerned with identifying, analyzing, and responding to project risk.• Maximizing the results of positive events • Minimizing the consequences of negative events• Processes: Risk Identification, Risk Quantification,

Risk Response Development, Risk Response Control

12.05.2009. PMBOK 25/15

Page 26: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

The Project Management KnowledgeAreas (II)

• Project Procurement Management• Acquire goods and services from outside the performing organization• Processes: Procurement Planning, Solicitation Planning, Solicitation,

Source Selection, Contract Administration, Contract Close-out

• Project Human Resources Management• Make the most effective use of people involved with the project• Processes: Organizational Planning,

Staff Acquisition, Team Development

© www.asia-masters.com

Page 27: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

• Finally, project managers who are familiar with PMBOK can custom tailor their project management process to best fit their company's needs.

Old saying: “To break the rules, first you have to know the rules. ”

• In the long run, this means that companies will have less of a reason to outsource when projects require special treatment.

© www.asia-masters.com

Page 28: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

– Project Management services for all project phases should be provided through well established procedures/processes

– Project Management activities span the life of projects beginning with the conceptual design phase and ending with the defects liability and occupancy phase

I. Introduction

© www.asia-masters.com

Page 29: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

PlanPlan

Monitor &Control

Monitor &Control

Close OutClose Out

ImplementImplement

Project Management ApproachInitiateInitiate

© www.asia-masters.com

Page 30: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Major Stakeholders

Major Stakeholders

Funding Agencies

Authorities

Design Consultants

Specialized Consultants

Construction Contractors

Facility Manager

Client

Supervision Consultants

End Users

OperatorsProject Manager

© www.asia-masters.com

Page 31: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Client

Project Manager

ConsultantQuantity

Surveyor (CQS)

Supervision ConsultantsContractors

Design Consultants

Funding AgenciesAuthorities

ExpertConsultants

Operators/End UsersFacility Manager

Communication Chart

© www.asia-masters.com

Page 32: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

mae

EngineerTechnical

Te

d

ConstructionManager

Packag

ct Control Boa

rect Director

Consultants’ LocalOffice

Projeoj

EEngineer

Pr

stControllers

IT Specialist

Plann ngEngineers

Administrative Support

HS CEngineer

DocumentControllers

Co

EManager

TechnicaManager

Projec

tControlsManager

ContractAdministrator

QA/Q

CManager

Contrac

tsManager

HS

t Manager

QA/Q

Client

Head

Office SupportHead Office Support

ProjecProject Manager

QA/QCManager

Contracts Manager

HSEManage

rTechnical l Manager

Project Controls Manager

Contract Administrator

QA/QCEngineer

Document Controllers

Cost Controllers

IT Specialist

Plannini g Engineers

Administrative Support

Project Manager’s Organisation Chart

HSEEngineer

Project Director

Consultants’ Local Office

Project Control Board

Construction Manager

Package Engineer

Technical Team

© www.asia-masters.com

Page 33: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

WarehouseDept.

ServicesDept.

Admin.Dept.

Acco

untant

Cashier

nt Manager

SurveyorManager

SiteSurveyor(s)

Project Area 2Manager

MateriaEng

lineer(s)

Techn

ci ian(s)

FinanciaManager

Docu

mentEngineer

PlanningEngineer

SiteEngineer(s)

meC Engineer ProcureQQA/

& DocManager

Techn

ci i an(s)

Contractor’s Representative

SubcontractorsSubcontractors Project Area 1Manager

Project Area 1 Manager

ContractingManager

Contracting ManagerA .d min & Logistics

ManagerAdmin. & Logistics

ManagerlP anningPlanning & DocManager

Technician(s)

Contractor’s Organisation Chart

QA/QC Engineer Procurement Manager

Surveyor Manager

Site Surveyor(s)

Project Area 2 Manager

Material Engineer(s)

Technician(s)

lFinancial Manager

Document Engineer

Planning Engineer

Site Engineer(s)

Warehouse Dept.

Services Dept.

Admin. Dept.

Accountant

Cashier

© www.asia-masters.com

Page 34: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

PM scope can cover:

Project Initiation & Studies Period

Design Period

Tender & Contracting Period

Construction Period

Defects Liability Period

© www.asia-masters.com

Page 35: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Manage the Construction

© www.asia-masters.com

Page 36: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

LIFE CYCLE Construction Management

Seven PhasesConcept and Feasibility StudiesPreliminary Engineering and DesignDetailed Engineering and DesignProcurementConstructionStart-up and ImplementationOperation or Utilization

© www.asia-masters.com

Page 37: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

1. Concept and Feasibility Studies

Forecast Future DemandLocation

Availability of Resources Accessibility to transportation

 Political and Institutional Factors

Sociological and Economic Impact on Community

Environmental Impact

Overall Technical and EconomicFeasibility

© www.asia-masters.com

Page 38: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

2. Preliminary Engineering and DesignArchitectural concepts

Evaluation of technological process alternativesSize and capacity of facility

Comparative economic studies

Reviews by regulatory bodies for complianceZoning regulations

Building codesLicensing procedures

Safety standardsEnvironmental impact

 Public Hearing

 Funding cycles in Legislative and Executive Bodies

Page 39: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

3. Detailed Engineering and Design

Design of Architectural ElementsDesign of Structural ElementsSite InvestigationFoundation DesignElectrical and Mechanical DesignPreparation of Specifications and DrawingsPreparation of Contract Documents 

© www.asia-masters.com

Page 40: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

3. Detailed Engineering and Design

Design of Architectural ElementsDesign of Structural ElementsSite InvestigationFoundation DesignElectrical and Mechanical DesignPreparation of Specifications and DrawingsPreparation of Contract Documents 

Field Construction MethodsCost Knowledge

© www.asia-masters.com

Page 41: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

4. Procurement

ServicesEquipmentMaterials

 

© www.asia-masters.com

Page 42: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ServicesEquipmentMaterials

 Lump Sum Contract

Cost Plus Fee ContractNegotiated Contract

4. Procurement

© www.asia-masters.com

Page 43: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

5. ConstructionProcess whereby the Designer’s Plans and Specifications are converted into Physical

Structures and Facilities 

Co-ordination of all resources to complete the project

On ScheduleWithin Budget

According to Specified Standard of Quality and Performance

© www.asia-masters.com

Page 44: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

6. Start-up and Implementation

Testing of ComponentsWarranty Period

  

© www.asia-masters.com

Page 45: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

7. Operation and Utilization

Regular Maintenance of Facilities

© www.asia-masters.com

Page 46: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ArchitectInterior Designer

Landscape ArchitectCivil Engineer

Environmental EngineerElectrical Engineer

Mechanical EngineerChemical Engineer

Geologist Environmental Scientist

Economist

DESIGN TEAM

Page 47: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

General ContractorLand Surveyor

Formwork CarpentersSteel Fabricators

ConcretersBricklayers

Plant and Equipment OperatorsSpecialist subcontractors

Suppliers

CONSTRUCTION TEAM

© www.asia-masters.com

Page 48: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Construction ContractsAmerican Institute of Architects

DocumentsA101 Standard Form of Agreement between Owner and Contractor – Stipulated Sum

A111 Standard Form of Agreement between Owner and Contractor – Cost of the Work Plus a Fee

A201 General Conditions of the Contract for Construction

B141 Standard form of Agreement between Owner and Architect

A132 Performance Bond and Payment Bond

Page 49: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Elements of a Construction ContractARTICLES

Contract DocumentsArchitectOwner

ContractorSubcontractors

Work by Owner or by Separate ContractorsTime of Completion and Extension of Time

Progress and Final Payments Substantial Completion

InsuranceChanges in the Work

Uncovering and Correction of WorkTermination of Contract

Page 50: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Architech/Engineer Owner

General Contractor

Page 51: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Architech/Engineer Owner

General Contractor

Subcontractor Subcontractor Subcontractor

© www.asia-masters.com

Page 52: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Architech/Engineer Owner

General Contractor

Subcontractor Subcontractor Subcontractor

2nd Tier Subcontractor

3rd Tier Subcontractor

© www.asia-masters.com

Page 53: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Architech/Engineer Owner

General Contractor

Subcontractor Subcontractor Subcontractor

2nd Tier Subcontractor

3rd Tier Subcontractor

Supplier

© www.asia-masters.com

Page 54: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Architech/Engineer Owner

Specialists General Contractor

Subcontractor Subcontractor Subcontractor

2nd Tier Subcontractor

3rd Tier Subcontractor

Supplier

© www.asia-masters.com

Page 55: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Architech/Engineer Owner

Specialists Construction Manager

Subcontractor Subcontractor Subcontractor

2nd Tier Subcontractor

3rd Tier Subcontractor

Supplier

© www.asia-masters.com

Page 56: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Architech/Engineer Owner

Specialists Construction Manager

General Contractor

Subcontractor Subcontractor Subcontractor

2nd Tier Subcontractor

3rd Tier Subcontractor

Supplier

© www.asia-masters.com

Page 57: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Owner

Architech/Engineer Design Builder

Specialists Subcontractor Subcontractor Subcontractor

2nd Tier Subcontractor

3rd Tier Subcontractor

Supplier

© www.asia-masters.com

Page 58: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Architech/Engineer Owner

Specialists Subcontractor Subcontractor Subcontractor

2nd Tier Subcontractor

3rd Tier Subcontractor

Supplier

© www.asia-masters.com

Page 59: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Beneficiary Owner Performance Bond

Principal General Contractor Surety

Subcontractor Subcontractor Subcontractor

2nd Tier Subcontractor

3rd Tier Subcontractor

Supplier© www.asia-masters.com

Page 60: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ORGANIZATIONAL RELATIONSHIPS

Beneficiary Owner Payment Bond

Principal General Contractor Surety

Subcontractor Subcontractor Subcontractor

Beneficiary2nd Tier Subcontractor

3rd Tier Subcontractor

Supplier© www.asia-masters.com

Page 61: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

INSURANCERequirements under AIA A201Contract Documents

Contractor’s Liability InsuranceOwner’s Liability InsuranceProperty InsuranceLoss of Use InsuranceWorkmen CompensationDisability Benefits

© www.asia-masters.com

Page 62: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

OWNERS RESPONSIBILITYMake Financial Arrangements to fulfill his obligations

Furnish Accurate Contract Specifications and Drawings for the Contractor’s work

Right to Stop Work

Right to Change Work

Right to Terminate Contract if Contractor Defaults

© www.asia-masters.com

Page 63: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Architect’s ResponsibilityArchitect is the Owner’s Representative

Architect is the Administrator of the Contract

Visit site at appropriate stages of construction to familiarize himself generally with the progress and quality of the Work and to determine whether Work is proceeding in accordance with Contract Documents.

Advice the Owner on Work Progress

Guard the Owner against Defects and Deficiencies in the Work of the Contractor

Reviews Contractor’s Claims and Approves Amount to be paid to the Contractor

Architect is not responsible for Methods of Construction or Site Safety

© www.asia-masters.com

Page 64: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Contractor’s ResponsibilityReview Contract documents for Errors and Inconsistencies

Supervise and Co-ordinate all Construction Work

Provide full time Superintendent on Site

Responsible for Site Safety

Indemnify the Owner against any Claims by third parties

© www.asia-masters.com

Page 65: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Handling DisputesContract is signed between Owner and Contractor

Architect acts as Interpreter of the Contract between Owner and Contractor

Architect acts as Judge of the Performance of the Owner and Contractor

All disputes between Owner and Contractor shall be decided by Architect

Architect shall not show Partiality

Architect’s Decision on Artistic Effects is Final

Arbitration

© www.asia-masters.com

Page 66: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

II. Contract/Construction Management

Stage 1: CONSTRUCTION PERIODStage 2: DEFECTS LIABILITY PERIOD (DLP)

© www.asia-masters.com

Page 67: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

• Insurance Policies• Performance Security• Advance Payment Guarantee• Notice to Commence• Communication Procedures

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 68: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

• Monitoring Progress• Evaluating Performance• Project Management Software• Logic Network (CPM)• Short Construction Activities• Shop Drawings and Materials Submissions• Procurement Schedules• Quantity, Duration, Cost, Manpower and• Equipment• Resources Schedules and Histograms• Work Breakdown Structures (WBS)• Subcontractors’ Schedules

II. Contract/Construction Managementstage 1: construction period

© www.asia-masters.com

Page 69: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

Activity 3 Survey Checkand Material Information

• Verify Staked-Out Centerline, Traverse Points, Control Points and Bench Marks• Adequacy of Borrow Pits and Quarries• Planned Sources, Supply and Testing of Construction Materials

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 70: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4 Plan for Site Organization

• Site Facilities Adequacy and Organization• Layout Plan for all Temporary Site Facilities• Check Site Accesses, Temporary Structures, Site Office, Accommodation, Laboratory,

Stocking Yards, Plant Facilities, Safety Measures, Service Roads, Parking Areas• Sufficiency, Adaptability, Interconnectivity, Suitability, Organization, Quality,

Performance, Non-Interference with Permanent Works

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 71: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

• Clearly Formulated, Well-Documented Method Statement: Method of Construction, Resources, Safety Precautions, Operation’s Duration

• Submission and Approval before Occurrence of Planned Early Start of Activities

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 72: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 6 Time Control

• Monitor Program, Construction Activities, Resources• Update and Revise Program• Periodic Co-Ordination Meetings• Timely Shop Drawings and Samples Submission• Schedules of Materials and Shop Drawings Submissions

and Approvals tied to Program• Monitor Labor and Plant Productivity, Materials

Deliveries (Long-Lead Items), Identify Shortages• Labor, Plant or Materials Deficiencies• Identify Potential Variance: Scheduled v/s Actual

Progress

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 73: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 6 Time Control

Activity 7 Cost Control

• Interim Payments• Cash-Flow Estimate• Implement Variation Orders• Control & Monitor Quantities and Variation Ordersw.r.t. Contract Price

II. Contract/Construction Managementstage 1: construction period

© www.asia-masters.com

Page 74: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 6 Time Control

Activity 7 Cost Control

Activity 8 Quality Control

• Project Quality Assurance/Quality Control Plan• Compliance with Safety and Environment Protection• Review and Approval of Materials and Shop Drawings• Inspection of Operations• Inspection and Testing of Materials and Plant

II. Contract/Construction Managementstage 1: construction period

© www.asia-masters.com

Page 75: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 6 Time Control

Activity 7 Cost Control

Activity 8 Quality Control

• Inspection of Work before Covering-Up• “As-Built” Drawings and “Operation and Maintenance Manuals”• List of Outstanding Works prior to Taking-Over

• Completion of Outstanding Works and Performance during Defects Liability Period

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 76: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 6 Time Control

Activity 7 Cost Control

Activity 8Quality

Control

Activity 9Site Meetings & Record Keeping

• Daily Record of Progress of Works• Kick-off Site Meeting: Procedures, Means of Communication, Methods for giving

Approvals, Instructions, Variation Orders, etc.• Regular Site Meetings: Monitor Performance and Progress based on Program, Discuss Problems,

Coordination Issues, etc.

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 77: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 6 Time Control

Activity 7 Cost Control

Activity 8Quality

Control

Activity 9Site Meetings and Record

Keeping

• Daily Diary• Maintain Up-To-Date Information Relevant to Progress, Performance, Quality, Quantities,

Resources & Cost

• Maintain Project Records in Classified and Retrievable Form

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 78: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 10 MonthlyProgress Reports

Activity 6 Time Control

Activity 7 Cost Control

Activity 8Quality

Control

Activity 9 Site Meetings

& Record Keeping

• Executive Summary• Section One: General Information• Section Two: Progress Outline• Section Three: Schedules• Section Four: Resource Control

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 79: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 10 MonthlyProgress Reports

Activity 6 Time Control

Activity 7 Cost Control

Activity 8Quality

Control

Activity 9 Site Meetingsand Record

Keeping

• Section Five: Cost Control• Section Six: Quality Control• Section Seven: Contract Records• Section Eight: Progress Photographs

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 80: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 10 MonthlyProgress Reports

Activity 11Claims and

Disputes

Activity 6 Time Control

Activity 7 Cost Control

Activity 8Quality

Control

Activity 9 Site Meetings

& Record Keeping

• Identify Potential Claims• Settle Disputes or Differences

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 81: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2 Planning

and Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 10 MonthlyProgress Reports

Activity 11Claims and

Disputes

Activity 6 Time Control

Activity 7 Cost Control

Activity 8Quality

Control

Activity 9Site Meetings

& Record Keeping

• Implementation of Methods andProcedures to Minimize the Potential Financial and Time Impact of Claims

• Settlement of time/cost claims

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 82: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 10 MonthlyProgress Reports

Activity 11Claims and

Disputes

Activity 12 Completion of

Works / Taking-Over

Activity 6 Time Control

Activity 7 Cost Control

Activity 8 Quality Control

Activity 9Site Meetings

& Record Keeping

II. Contract/Construction Management

stage 1: construction period

• Establish schedule for Testing and Commissioning• Witness Tests• Prepare List of Outstanding Works• Obtain Written Undertaking to Complete any Outstanding Work during

DLP© www.asia-masters.com

Page 83: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 1 Organization

and Mobilization

Activity 2Planning and

Program

Activity 3 Survey Checkand Material Information

Activity 4Plan for Site Organization

Activity 5 Construction

Methods

Activity 10 MonthlyProgress Reports

Activity 11Claims and

Disputes

Activity 12 Completion of

Works / Taking-Over

Activity 6 Time Control

Activity 7 Cost Control

Activity 8Quality

Control

Activity 9Site Meetings

& Record Keeping

• Issue Taking-Over Certificate• Check Progressively “As-built Drawings”• Review “Operations and Maintenance

Manuals”

II. Contract/Construction Management

stage 1: construction period

© www.asia-masters.com

Page 84: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 13 Inspection of

Works

• Inspect and Verify that the Outstanding Works have been Satisfactorily Completed

• Remedy Detected Defects• Final Taking-Over of Project at End of Defects Liability Period

II. Contract/Construction Managementstage 2: defects liability period

© www.asia-masters.com

Page 85: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 13 Inspection of

Works

Activity 14 Defects Liability

Certificate

• Issuance of Defects Liability Certificate

II. Contract/Construction Management

stage 2: defects liability period

© www.asia-masters.com

Page 86: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Activity 13 Inspection of Works

Activity 14 Defects Liability

Certificate

Activity 15 Final Certificate and Final Report

• Final Statement submittal after Issuance of Defects Liability Certificate

• Issuance of Final Certificate• Final Report

II. Contract/Construction Managementstage 2: defects liability period

© www.asia-masters.com

Page 87: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

III. PROJECT CONTROLSScope

- Continuous monitoring of actual project performance (Time, Cost, Quality).

- Assessing performance and any needed corrective/preventive action.

- Maintaining accurate and updated information base through the project’s cycle.

© www.asia-masters.com

Page 88: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Project Controls Time & Cost

- Review time schedule/cash-flow estimate.

- Review material submittals/shop drawings schedules.

- Record delays and advise on recovery measures.

© www.asia-masters.com

Page 89: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Project ControlsTime & Cost - BENEFITSProject Controls of the project schedule will enable:

Baseline– Identifying Project WBS and Baseline Schedule– Identifying Critical Activities– Resources Requirements– Anticipated Cash Flow (S-Curve)

Progress and Update– Measuring Progress/Performance– Identifying delays and sources of delay (through further side analysis)– Assessing the need for rescheduling and determining which activities need to be rescheduled

Changes– Potential effect of Variation Orders– Analyzing Contractors’ Claims for Extension of Time

© www.asia-masters.com

Page 90: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

PLANNING & SCHEDULING

- Critical Path Method (CPM)

- Critical Path Activities

- Logical Relationships

- Total Float (TF)

- Free Float (FF)

- Constraints

- Resources© www.asia-masters.com

Page 91: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

REPORTS

Resources - Histograms

Page 92: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

PLANNING & SCHEDULINGSCHEDULE COMPRESSION

• Shortening the Project Schedule duration without reducing the project scope which might increase the project cost.

SCHEDULE UPDATE• Starts with monitoring of the project activities, collecting key progress information

that would be translated into the following at the end of the reporting period (data date, time now or as of date):

Actual Start of progressing/completed activities Actual Finish for completed activities% complete/remaining duration/expected completion date for progressing activities

The above information is entered into the Update Schedule and the schedule calculation performed.

• The Updated Schedule is compared to the Baseline

Schedule The Critical Path may change.

© www.asia-masters.com

Page 93: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Progress Monitoring & ControlBaseline Vs. Updated Schedule

Page 94: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ESSENTIAL FACTORSConstruction Contract Documents to specify clearly the requirements for the construction schedule:

– Category of Software (by name or of similar capabilities)– Phasing– Milestones– WBS– Interface with other construction projects– Level of detail– Short activities duration, quantities and cost (based on

BOQ), resources (labor and equipment)– Activities to include submittal , approval and procurement of materials– Frequency of schedule update and reporting– Type of reports to be submitted (Logic Network, Bar

Charts, Tabular, Labor Histograms per trade and total, Equipment Histograms per equipment and total, Cost in tabular, histogram and S-Curve formats, Earned Value)– Calendar

© www.asia-masters.com

Page 95: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Project CalendarsA calendar of working days or shifts that establishes those dates on which activities are worked, and nonworking days.Nonworking days include holidays.

A project can have a unique calendar or multi-calendars.

Example: Activity with duration of 18 working days.

ESSENTIAL FACTORS

Page 96: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Progress Reporting

Page 97: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Cost Control• Review and process interim payments

applications• Monitor quantities and variation

orders• Monitor cash flow• Evaluate change/variations impact• Develop cost forecasts• Calculate the earned value• Develop, implement, update project

cost• Monitor/Identify variances between

actual/budgeted costs

Page 98: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

ReportCost (Value)

Histogram and S – Curve

Page 99: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Earned Value

Specific technique for measuring performance of work based on activities’ costs

BCWS: Budgeted cost of work scheduled (Planned Value)

BCWP: Budgeted cost of work performed (Earned Value)

ACWP: Actual cost of work performed (Actual Cost)

Schedule Variance (SV) = BCWP – BCWS

Cost Variance (CV) = BCWP – ACWP

• Schedule Index (SI) = BCWP/BCWS

• Cost Index (CI) = BCWP/ACWP

© www.asia-masters.com

Page 100: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Planned Value

Earned Value

CV

BCWSACWP

SV

BCWP

(BCWS)

(BCWP)

(ACWP)

© www.asia-masters.com

Page 101: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Variation Order - Form

Page 102: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Quality Control

Quality is controlled through the following:

- Timely inspections and testing of works, materials and production plants

- Review and monitoring of Health, Safety and Environment (HSE) plan

- Inspection of material sources and list of suppliers

- Review and Approval of Materials and Shop Drawings

- Review of As-Built drawings and O&M manuals

- Submittal of certificates of guarantee

- Involvement of third party for laboratory testing

- Snag lists implementation© www.asia-masters.com

Page 103: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Submittal for approval of materials - Form

Page 104: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Request for Inspection - Form

Page 105: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

QA/QC Auditing• Oversee QA/QC implementation• Oversee inspection/ testing process• Issue periodic audit reports

© www.asia-masters.com

Page 106: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Document ControlDocument Control in construction projects is the management of contract documents and the incoming and outgoing correspondence and their attachments and their flow to the members of the management team for action or information.

Parties involved are commonly:- Client- Funding Agency- Consultant- Contractor- Authorities- Stakeholders- Other

© www.asia-masters.com

Page 107: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Document ControlDevelop/Implement/Maintain Document Control system to cover:

- Contract Documents- Correspondence/Minutes of Meetings- Site Correspondence/Reports- Drawings Logs- Submittals

© www.asia-masters.com

Page 108: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Document ControlPrimavera Expedition

Global Report

Page 109: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

Project Documentation- A referencing system for all project documents is

necessary to achieve proper document control and archiving.

- Referencing system applies to all documents and correspondences.

© www.asia-masters.com

Page 110: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

XXXXX 001-W 001 1 of 1

Zone No. or Building No.

Discipline (Water Supply)

Serial No. (001)

Project Number X of Y

Referencing SystemExample of Drawings Numbering System

© www.asia-masters.com

Page 111: PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

The End

© www.asia-masters.com