GUIDE OF PROJECT MANAGEMENT British Standard BS 6079-1:2000

1. GUIDE OF PROJECT MANAGEMENTBritish Standard BS 6079-1:2000 Configuration management The technical and administrative activities concerned with the creation, maintenance and controlled change of configuration data throughout the life of aproduct

2. GUIDE OF PROJECT MANAGEMENTBritish Standard BS 6079-1:2000 Deliverables The intermediate or end outputs of a project

3. GUIDE OF PROJECT MANAGEMENTBritish Standard BS 6079-1:2000 Project A unique set of co-ordinated activities, with definite starting and finishing points, undertaken by an individual or organization to meet specific objectives within defined schedule, cost and performance parameters

4. GUIDE OF PROJECT MANAGEMENTBritish Standard BS 6079-1:2000 Project life cycle The sequential phases through which project passes to reach its objectives

5. GUIDE OF PROJECT MANAGEMENTBritish Standard BS 6079-1:2000 Project management The planning, monitoring and control of all aspects of a project and the motivation of all those involved in it to achive the project objectives on time and to specified cost, quality and performance

6. Defining Construction Project • Each project is unique and not repetitous • A project works against schedules and budgets to produce a specific result • The construction team cuts across many organizational and functional lines that involve virtually every department in the company • Projects come in various ahapes, sizes and complexities

7. CONCTRACTING STRATEGIES

8. CONCTRACTINGSTRATEGIES - TRADITIONAL • Separate designer • Single general contractor • Numerous subcontractors • Fixed price, guaranteed maximum price or cost plus a fixed fee construction contract • Negotiated professional fee for design services.

9. CONCTRACTINGSTRATEGIES – DESIGN-BUILD • Single firm responsible for both design and construction • Specialty subcontractors • Fixed price, guaranteed maximum price or cost plus a fixed fee design-construction contract

10. CONCTRACTINGSTRATEGIES – DESIGN-MANAGE • Single firm responsible for both design and construction • Fixed price or negotiated individual construction contracts or subcontracts • Fixed price, guaranteed maximum price or cost plus a fee design-construction contract

11. CONCTRACTINGSTRATEGIES – DESIGN-MANAGE • Owner responsible for design and construction • Optional own forces work contractors and subcontractors • Fixed price, unit price or negotiated construction contracts

12. CONCTRACTINGSTRATEGIES – PROFESIONAL CONSTRUCTION MANAGER GENERAL CONTRACTOR • Three-party team of owner, separate designer, and general contractor acting as a construction manager • Fixed price or negotiated independent subcontractors • Construction manager usually acting as agent for owner services with cost reimbursement for subcontractors • Negotiated professional fee for design services

13. CONCTRACTINGSTRATEGIES – PROFESIONAL CONSTRUCTION MANAGER • Three-party team of owner, designer and construction manager • Fixed price or negotiated individual construction contracts directly with owner • Construction manager may act as owner’s agent to extent delegated • Negotiated proffesional fee for construction management services • Negotiated proffesional fee for design services

14. TYPES OF CONTRACT

15. Types of Concracts • The single fixed-price • Lump-sum contract • Unit- price contract • Negotiated cost-plus-fixed-fee contract • Guaranteed maximum price arrangement • Other variations or combinations

16. Types of ConcractsThe single fixed-price In the fixed-price form, the contractor agrees to perform the work for a predetermined price that includes profit. Usually most of the work is subcontracted to specialty contractors under fixed-price subcontractors plans, specifications, and terms and conditions from the general contract.

17. Types of ConcractsUnit-price & Lump-sum The prices of specified units of work are fixed, and the total cost to the owner will vary with the actual quantities of units put in place. This type of contract applies best where the details and general character of the work are known but the quantities are subject to variation within reasonable limits.

18. Types of Concracts The single fixed-price – lump-sum – unit-price ADVANTAGES (from the owner’s position) • These systems are accepted and historically supported with well established legal and contractual precedents. • The lump-sum type permits overall cost tobe determined before the construction contract is let. • Minimal involvement of the owner is required in the construction process. • The owner may benefit from price competition in a competitive situation.

19. Types of ConcractsThe single fixed-price– lump-sum – unit-priceDISADVANTAGES (from the owner’s position) • Design usually does not benefit from construction expertise. • Overall design-construct time is usually the longest. • The owner is usually in an adversary position with the general contractor. • The designer is often in an adversary position with the general contractor, and the owner may be required to be the referee. • Changes to the work or unforeseen difficulties will often end in disputes and litigation that can drive up cost in spite of the fixed-price.

20. Types of ConcractsNegotiated Cost-Plus-A-Fee contract In negotiated cost-plus contracts, the contractor agrees to perform the work for a fixed or variable fee covering profit and home-office costs, with all field costs being reimbursable at actual cost. Common variations will include a fixed fee to cover profit and general and administrative costs only, with both direct home-office costs and field costs being reimbursable.

21. Types of ConcractsNegotiated Cost-Plus-A-Fee ContractADVANTAGES (from the owner’s position) • These contract systems are accepted and historically supported. • They permit reduction of design-construct time by utilizing phased construction. • This approach enables the contractor to react quickly to major design changes and unforeseen conditions, and, in part, minimizes the adversary position.

22. Types of ConcractsNegotiated cost-plus-fixed-fee contract DISADVANTAGES (from the owner’s position) • Cost plus a fixed fee may not be the most economical alternative in a competitive market. • Disreputable contractors can abuse this arrangement if the owner is not careful in selection. • The guaranteed maximum, while theoretically setting a ceiling, may not stand up in the event of changed conditions or numerous change orders. • Owner involvement (or that of the designer) is increased over the lump-sum method in view of the necessity for controls on expenditures, audits, approvals, and other administrative requirements that are considered good practice when this form of contract is employed.

23. Types of ConcractsProfesional Construction Management

24. Types of ConcractsProfesional Construction ManagementADVANTAGES (from the owner’s position) • Special construction skills may be utilized at all stages of the project with no conflicts of interest between the owner and the designer. • Independent evaluation of cost, schedules, and overall construction performance, including similar evaluation for changes or modifications

25. Types of Concracts Profesional Construction Management DISADVANTAGES (from the owner’s position)

26. ORGANIZATIONAL CONCEPTS

27. Organizational conceptsProject Accountability Task Force

28. Organizational conceptsLine and Staff Task Force

29. Organizational conceptsFunctional Organization

30. Organizational conceptsMatrix Organization Corporate Accountability Corporate Accountability Functionational Accountability Functionational Accountability Project Project Accountability