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GUIDE OF PROJECT MANAGEMENT British 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 a product
GUIDE OF PROJECT MANAGEMENT British Standard BS 6079-1:2000
Deliverables
The intermediate or end outputs of a project
GUIDE OF PROJECT MANAGEMENT British 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
GUIDE OF PROJECT MANAGEMENT British Standard BS 6079-1:2000
Project life cycle
The sequential phases through which
project passes to reach its objectives
GUIDE OF PROJECT MANAGEMENT British 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
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
CONCTRACTING
STRATEGIES
CONCTRACTING STRATEGIES - TRADITIONAL
OWNER
DESIGN
GENERAL
CONTRACTOR
SUBCONTRACTORS
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•
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OWN FORCES WORK
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.
CONCTRACTING STRATEGIES – DESIGN-BUILD
OWNER
ENGINEER CONTRACTOR
DESIGN
GENERAL CONTRACTOR
SUBCONTRACTORS
OWN FORCES WORK
• Single firm responsible for both design and construction
• Specialty subcontractors
• Fixed price, guaranteed maximum price or cost plus a fixed fee
design-construction contract
CONCTRACTING STRATEGIES – DESIGN-MANAGE
OWNER
ENGINEER
CONSTRUCTION MANAGER
DESIGN
CONSTRUCTION
MANAGER
INDEPENDENT
CONTRACTORS
• 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 designconstruction contract
CONCTRACTING STRATEGIES – DESIGN-MANAGE
OWNER
DESIGN
DEPARTMENT
CONSTRUCTION
DEPARTMENT
CONTRACTOR AND
SUBCONTRACTORS
OPTIONAL OWN
FORCES WORK
• Owner responsible for design and construction
• Optional own forces work contractors and subcontractors
• Fixed price, unit price or negotiated construction contracts
CONCTRACTING STRATEGIES – PROFESIONAL
CONSTRUCTION MANAGER GENERAL CONTRACTOR
OWNER
DESIGN
GENERAL CONTRACTOR
ACTING AS
CONSTRUCTION MANAGER
SUBCONTRACTORS
• Three-party team of owner, separate designer, and general contractor
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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
CONCTRACTING STRATEGIES –
PROFESIONAL CONSTRUCTION MANAGER
OWNER
DESIGN
A NUMBER OF
INDEPENDENT
CONTRACTORS
CONSTRUCTION
MANAGER
• Three-party team of owner, designer and construction manager
• Fixed price or negotiated individual construction contracts directly with
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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
TYPES OF CONTRACT
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
Types of Concracts
The 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.
Types of Concracts
Unit-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.
Types of Concracts
The single fixed-price – lump-sum – unit-price
ADVANTAGES (from the owner’s position)
• These systems are accepted and historically
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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.
Types of Concracts
The single fixed-price – lump-sum – unit-price
DISADVANTAGES (from the owner’s position)
• Design usually does not benefit from
•
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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.
Types of Concracts
Negotiated 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 homeoffice costs and field costs being reimbursable.
Types of Concracts
Negotiated Cost-Plus-A-Fee Contract
ADVANTAGES (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.
Types of Concracts
Negotiated cost-plus-fixed-fee contract
DISADVANTAGES (from the owner’s position)
• Cost plus a fixed fee may not be the most economical
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•
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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.
Types of Concracts
Profesional Construction Management
Types of Concracts
Profesional Construction Management
ADVANTAGES (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
Types of Concracts
Profesional Construction Management
DISADVANTAGES (from the owner’s position)
ORGANIZATIONAL CONCEPTS
Organizational concepts
Project Accountability Task Force
OWNER
Project Manager
Design Manager
Support Services
Construction Manager
Organizational concepts
Line and Staff Task Force
Owner
Design Division
Project Manager
Construction Division
Design Manager
Support Services
Construction Manager
Organizational concepts
Functional Organization
Owner
Project Manager
Design Division
Construction Division
Organizational concepts
Matrix Organization
Corporate
Accountability
Design Division
Owner
Project Manager
Functionational
Accountability
Design Manager
Corporate
Accountability
Construction Division
Functionational
Accountability
Project
Project
Accountability
Construction Manager