THE CONSTRUCTION PROJECT MANAGEMENT PROCESS

1. THE CONSTRUCTION PROJECT MANAGEMENT PROCESS prepared by GARDINER & THEOBALD LLP for Thursday 20th November 2008 Tony Nutt

2. Content • What is Project Management ? • Why Appoint a Project Manager ? • Who makes the best Project Manager ? • When should you appoint a Project Manager ? • What does a Project Manager do ?

3. What is Project Management? Simply:- • The overall co-ordination of a project to achieve time and cost objectives • Quality is also an important consideration

4. Why Appoint a Project Manager ? • To bring a systematic and structured approach to projects – at all stages • In this instance we are talking about Construction Project Management

5. Who Makes the Best Project Manager ? • PM’s come from varied backgrounds including • Architecture • Engineering (Structural, Mechanical and Electrical) • Quantity Surveying • Building Surveying • Clerk of Works / Building Control Officers • Most PM companies are multi-disciplinary in their workforce Individual Project Managers :- • Must have a good grounding in their “core” discipline • Must be well organised • Must be good communicators / team builders

6. When Should You Appoint a Project Manager ? • As soon as possible ! • On every project ? • At what stage ? The role can vary • Development Management • Employer’s Representative • Project Management (executive / non-executive) • Employer’s Agent • Contract Administration

7. What Does a Construction Project Manager Do ? • Identifies and addresses Key Issues • Wraps a time, cost and quality management framework around the project • Drives the process • In particular:-

8. Key Issue : Management of the Client – to establish • Working Relationship with Organisation • Single Point Contact • Decision Making and Approvals Process • Design Philosophy • User Requirements • Operational Issues • Unambiguous Client Brief • Internal and External Interfaces • Project Execution Plan (PEP)

9. Key Issue : Management of the Project - Summary • Current Project Status Review • Financial and Cost Management • Design and Building Issues • Project Risk • Programme Management • Facilities Management • Security, Health and Safety • Third Party Interfaces

10. Management of the Project Review of Current Project Status • Existing Brief • Feasibility Studies • Planning / DAC • Legislative Issues • Environmental Issues • Existing Information • Income and Funding Status

11. Management of the Project • Current Project Status • Financial and Cost Management

12. Management of the Project Financial and Cost Management • Development Appraisal • Budget Estimate(s) / Cost Plan • Cash Flow Forecasting

13. Construction Cost and Income Monthly Cashflow

14. Interest Earned and Due on Monthly Balances

15. Project Cashflow

16. Management of the Project Financial and Cost Management • Development Appraisal • Budget Estimate(s) / Cost Plan • Cash Flow Forecasting • Life Cycle Costing • Value Engineering • Taxation • Grants • Future Funding / Fundraising

17. Management of the Project • Current Project Status • Financial and Cost Management • Design and Building Issues

18. Management of the Project Design and Building Issues • Consultants Fee Bids and Appointments • Clear Definition of Roles • Project Brief • Design Management and Compliance • Procurement • Tender and Contract Process and Documentation

19. Risk Avoidance Client Involvement Professional Responsibility Division of Responsibility Timing Optimum Route Competition Controllable Variation Complexity Price Certainty Quality Level PROCUREMENT - KEY CRITERIA

20. Management of the Project Design and Building Issues • Consultants Fee Bids and Appointments • Clear Definition of Roles • Project Brief • Design Management and Compliance • Procurement • Tender and Contract Process • Programme and Phasing (Milestones) • Cost Plan Update • Environmental Standard • Renewable Energy • Sustainability • Carbon Footprint • Quality Control

21. Management of the Project Project Risk • Risk Profile • Risk Workshop(s) • Risk Management and Mitigation • Project Contingency

22. Management of the Project Programme Management • Master Development Programme • Integrated Cash Flow Forecast • Development Sub-Programmers • Procurement and Tender Programmes • Design Management Programme • Programme Audit on Contractor(s)

23. Management of the Project • Current Project Status • Financial and Cost Management • Design and Building Issues • Project Risk • Programme Management • Facilities Management • Security Health and Safety • Third Party Interfaces

24. Management of the Project Third Party Interfaces / Interests • Lawyers • Charity Commission • Planners / DAC • S106 • Highways • LUL • Victorian Society • English Heritage • Archaeology (GLAS) • Rights of Light • Party Walls • DDA • Adjoining Neighbours • Environmental Standards • Licensing Authority • Building Control • Funders • PR / Advertising

25. Key Tools of the Project Manager • Defines the project and set procedures • Project Execution Plan (PEP) • Sets overall budget • Cost Plan • Establishes timescale and phasing • Master Programme • Identifies problem areas • Risk Register Report Format