Lecture 14: Project Managment CEE 498 Construction Project Management

1. 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

2. 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

3. Structure (Cont’d) 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

4. 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

5. I. Basics (Cont’d) C. Five M’s of project management 1. Material 2. Money 3. Manpower 4. Machines 5. Management

6. I. Basics (Cont’d) 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

7. I. Basics (Cont’d) • 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

8. I. Basics (Cont’d) 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

9. I. Basics (Cont’d) F. Seagull Management • Fly in • Make a lot of noise • Dump on everybody • Fly off somewhere

10. 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

11. 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

12. II. Pre-construction planning:Planning, Organizing, and Staffing B. Pre-construction planning C. The planning meeting(s) D. Organizing and staffing -See Attachment #4

13. IV. Pre-construction planning: Developing the project plan A. Developing the project plan B. Developing the project schedule

14. V. Pre-construction planning: Planning for production and support A. Initial Crew Analysis B. Test models and pilot studies C. Planning for support activities

15. VI. Cost and risk control A. Introduction to control and control systems B. Labor cost control C. Risk control: the importance of documentation

16. 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

17. 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

18. VIII. Purchasing and receiving (Cont’d) • 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)

19. VIII. Purchasing and receiving (Cont’d) 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

20. VIII. Purchasing and receiving (Cont’d) 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

21. 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

22. IX. Subcontractor management (Cont’d) 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

23. IX. Subcontractor management (Cont’d) 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

24. IX. Subcontractor management (Cont’d) • 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

25. IX. Subcontractor management (Cont’d) • 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

26. IX. Subcontractor management (Cont’d) 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

27. 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

28. X. Project layout (Cont’d) • 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

29. X. Project layout (Cont’d) 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

30. X. Project layout (Cont’d) 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

31. X. Project layout (Cont’d) • 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

32. 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!!

33. XI. Project start-up and closed-out (Cont’d) 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