Project management and control

'IS - ~Q 6~ -~ fItOIECT MANAGEMENT AND CONTROL - _.- _- -_ I The Queen Elizabeth II Conference Centre, Westminster, London Macmillan Building and Surveying Series Series Editor: Ivor H Seeley Emeritus Professor, Nottingham Trent University Advanced Building Measurement, second edition Ivor H Seeley Advanced Valuation Diane Butler and David Richmond Applied Valuation Diane Butler Asset Valuation Michael Rayner Building Economics, third edition Ivor H Seeley Building Maintenance, second edition Ivor H Seeley Building Maintenance Technology Lee How Son and George C S Yuen Building Procurement Alan E Turner Building Project Appraisal Keith Hutchinson Building Quantities Explained, fourth edition Ivor H Seeley Building Surveys, Reports and Dilapidations Ivor H Seeley Building Technology, fifth edition Ivor H Seeley Civil Engineering Contract Administration and Control, second edition Ivor H Seeley Civil Engineering Quantities, fifth edition Ivor H Seeley Civil Engineering Specification, second edition Ivor H Seeley Commercial Lease Renewa/~A practical guide Philip Freedman and Eric F Shapiro Computers and Quantity Surveyors A J Smith Conflicts in Construction-Avoiding, managing, resolving Jeff Whitfield Construction Contract Claims Reg Thomas Construction Law Michael F James Contract Planning Case Studies B Cooke Contract Planning and Contract Procedures, third edition B Cooke Cost Estimates of Structures in Commercial Buildings Surinder Singh Design-Build Explained D E L Janssens Development Site Evaluation N P Taylor Environment Management in Construction Alan Griffith Environmental Science in Building, third edition R McMullan European Construction-Building techniques and procedures B Cooke and G Walker Facilities Management Alan Park continued overleaf Greener Buildings-Environmental impact of property Stuart Johnson Housing Associations Helen Cope Housing Management-Changing practice Christine Davies (Editor) Information and Technology Applications in Commercial Property Rosemary Feenan and Tim Dixon (Editors) Introduction to Building Services, second edition Christopher A Howard and Eric F Curd j Introduction to Valuation, third edition D Richmond Marketing and Property People Owen Bevan Principles of Property Investment and Pricing, second edition W D Fraser Project Management and Control David Day Property Valuation Techniques David Isaac and Terry Steley Public Works Engineering Ivor H Seeley Resource Management for Construction M R Canter Quality Assurance in Building Alan Griffith Quantity Surveying Practice Ivor H Seeley Recreation Planning and Development Neil Ravenscroft Resource and Cost Control in Building Mike Canter Small Building Works Management Alan Griffith Structural Detailing, second edition P Newton Urban Land Economics and Public Policy, fourth edition P N Balchin, J L Kieve and G H Bull Urban Renewal-Theory and practice Chris Couch 1980 JCT Standard Form of Building Contract, second edition R F Fellows Series Standing Order If you would like to receive future titles in this series asthey are published, you can make useof our standing order facility To place a standing order please contact your bookselleror, in caseof difficulty, write to usat the address below with your name and address and the nameof the series Please state with which title you wish to begin your standingorder (If you live outsidethe United Kingdom we may not havethe rights for your area, in which casewe will forward your order to the publisherconcerned.) Customer Services Department, Macmillan Distribution Ltd Houndmills Basil1llstoke, Hampshire, RG21 2XS El1llland Project Management and Control David W J Day M MACMILLAN C> David W J Day 1994 All rights reserved No reproduction, copy or transmission of this publication may be made without written permission No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1 P 9HE Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages First published 1994 by THE MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world ISBN 0-333-54243-6 A catalogue record for this book is available from the British Library Typeset by Richard Powell Editorial and Production Services, Baslngstoke, Hants RG22 4TX Printed and bound in Great Britain by Mackays of Chatham PLC, Chatham, Kent Contents Frontispiece: The Queen Elizabeth II Conference Centre Preface Acknowledgements ii xiii xv The Project Manager 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 Definition of project management Historical background The building industry today Design and management Who should manage? Education and training The Project Manager at work Personal relationships Scope of service Management proposals 1 2 9 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 The Client 11 Client knowledge of the building industry Informed clients Widening the client field Experienced clients Introduction of project management Why a Project Manager? In-house management Management guides Consultant project management services 11 11 12 13 14 14 15 16 17 vii viii Contents 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 Client's organisation Client's objectives Client's priorities Building user/projectteam relationship Funding agencies Collateral warranties Client involvement Project implementation plan Management structures Client involvement in team selection Public relations Political influences 17 19 20 21 22 24 25 26 27 28 30 31 The Brief 32 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Introduction Development of the Brief Scopeof the Brief Formatof the Brief Preparing the Brief Guidelines to the content of the Brief Author of the Brief 32 32 33 34 34 36 The Project Team 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 Definition of the project team The Project Manager'steam Support-team budget Setting-up operation Deputy Project Manager Support-team duties Support-team composition Design-team appointments Competitive bids Selection criteria Leaddiscipline Selecting design-team members 39 39 39 40 41 42 42 43 45 46 47 49 50 38 Contents ix 4.13 4.14 4.15 4.16 4.17· 4.18 Team-selection dilemmas Client involvement Terms of engagement Location of the project team Effect of a non-standard contract arrangement Design co-ordination 50 51 54 55 55 57 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 The Design Stage Traditional design start PM involvement in design Design-team introduction Briefing the team Design-stage planning The plan of work Feasibility studies Adapting the plan of work Design-team management The design process Specialist advisers Services co-ordination The design information required Supplementary design-team activities Type and form of contract The PM's contract role Cost checking Reporting to the client Evaluation and acceptance of the tender 58 58 58 59 6.1 The Construction Stage PM's role in construction stage Passive monitoring Monitoring trends Construction stage problems A multiplicity of PMs Pro-active involvement 75 75 75 77 78 80 80 6.2 6.3 6.4 6.5 6.6 60 61 62 63 64 64 65 67 68 69 70 71 72 73 74 74 178 Appendix: Sir JohnSoane's Museum a recommendation for acceptance and a draft acceptance letter 5.4.9 The Project Co-ordinator shall be kept advised of the progress of events throughout this process, particularly if complications arise which mean that other than the lowest tenderer should be considered, or which could adversely affect either the programme or PCP 5.5 ACCEPTANCE 5.5.1 The Curator must formally accept every contract 5.5.2 The Architect shall issue a set, or sets, of contract documents to the Curator, the successful contractor and all members of the project team, as he deems necessary, and notify the unsuccessful tenderers Appendix: Sir John Soane's Museum 179 Part Construction 6.1 COMMENCEMENT 6.1.1 On acceptance the Architect will immediately arrange an introductory meeting between the Curator, contractor, and project team, with the following objectives: (a) Introducing all parties to be concerned in the running of the contract (b) Agree the contract start date (c) Advise the contractor of the importance of compliance with all fire, safety, security, noise and access requirements (d) Ensure all parties have personal details of the personnel to be involved and their responsibilities 6.1.2 The Architect shall ensure the contractor has effected the appropriate insurances and is appraised with the procedures he shall use for issuing architect's instructions, monitoring day works and ensuring the contractor meets the quality standards required, etc 6.2 DRAWINGS 6.2.1 All drawings shall be clearly identified as to project, drawing number and title, and shall only be issued by the Architect 6.2.2 Amendment drawings shall be clearly referenced to the drawing being amended 6.2.3 A complete set of drawings, schedules, etc., used on the project (including all changes) is required by the Curator for archival purposes 6.2.4 Contractors 'as-fitted' drawings shall be thoroughly checked for accuracy prior to acceptance by the appropriate design-team members The preparation and checking process must be implemented during the contract period and not left until after completion, in order that their correctness can be ensured within a reasonable time 180 Appendix: SirJohn Soane's Museum 6.3 OPERATIONAL PLANNING 6.3.1 Operational planning is the organisation of everything necessary to facilitate the efficient progress of works on site, i.e clearance of areas ahead of the contractors needing to gain access 6.3.2 At an early stage an outline operational plan should be prepared by the Curator and Project Co-ordinator agreeing the sequencing of all operations within the building and listing the tasks to be undertaken 6.3.3 Detailed operational planning shall be undertaken by the Curator in accordance with the project programme as advised by the Project Co-ordinator at least one month prior to the date on which the contractor is due to commence 6.3.4 The Curator shall instruct Museum staff as to the work to be done regarding the access and circulation of the public around the building, public safety, and any notices for the public 6.3.5 The Curator shall arrange for the removal and storage of the contents of all rooms/spaces in which contractors are to work and for their replacement on completion of the contract works 6.3.6 The Curator shall identify any temporary service needed by the Museum staff, for example, power outlets, telephone sockets, etc., as may be required, including advising all personnel of temporary telephone extension numbers, etc The Project Co-ordinator is to check this activity has been completed 6.3.7 The Curator and Architect will examine and agree a programme as to which items to be treated by the Conservator are to be removed, when, and where to, and the protection necessary for any works to be left in situ Also whether the Conservator will undertake his work before or after the Works Contractor 6.3.8 The Curator and Architect shall agree the specification for protection of items left in situ, and the examination of such items after completion of the contract works 6.3.9 On completion of the contract work, rooms/spaces will be handed over to the Curator for refurnishing and reoccupation Such hand-overs for beneficial use by the Museum, having contractual Appendix: Sir John Soane's Museum 181 implications, will need to be authorised by the Architect for final acceptance from the contractor prior to the occupation 6.4 Tests, trials and samples required by either the Curator or Architect must be identified early, and, wherever possible, included in the contract documents 6.5 The testing and commissioning of new services and systems must be witnessed by those Museum staff who will have operational responsibility on completion They shall be provided with a full set of operating instructions 6.6 The design team is to prepare, during the currency of the project, a fully comprehensive handbook of routine maintenance It is to contain recommendations for the treatment of all surfaces by cleaning and redecoration, servicing, probable plant life, etc It shall cover the complete fabric of the building and its services, together with advice on the frequency of inspection, frequency of maintenance operations and the types of maintenance and servicing contracts available 162 Appendix: Sir John Soane's Museum Part Public Relations 7.1 POLICY 7.1.1 Due to the importance of the Museum, being a national institution, it is of the utmost importance to have a suitable public relations policy in its widest sense, covering adjoining owners, neighbours, visitors, authorities, as well as institutions, press (local and national) and trade interests of many persuasions The Curator shall be responsible for developing and maintaining a public relations policy to be pursued throughout the project Public relations matters (unless otherwise specified below) shall be referred in the first instance to the Curator, or, in his absence, the Assistant Curator 7.1.2 Public relations policy shall be bought to the attention of all team members 7.2 NEIGHBOURS 7.2.1 The Project Co-ordinator shall ensure that the adjoining owners to the Museum, Messrs , of , telephone , and Messrs , of , telephone are made aware of the work belng undertaken and its programme, hours of working, and agreeing a possible limitation of noisy activities, including specifying such arrangements within contracts Warnings shall be sent when activities likely to be intrusive or cause a disturbance are about to begin, stating the cause and probable duration Objections shall be treated sympathetically: the Curator shall be kept informed of any difficulty The adjoining owners shall be given details of telephone numbers and addresses of both the Project Co-ordinator and Architect 7.2.2 Other near neighbours to the degree requested by the Curator shall be similarly kept informed of operations, but in a more general manner 7.2.3 The Building Surveyor shall prepare a Schedule of Condition of the adjoining premises and roads and footways, etc., prior to the commencement and a Schedule of Dilapidations shortly after completion, of the building operations, in order to establish what, if any, damage may have been caused to the neighbouring premises by Appendix: Sir John Soane's Museum 183 the building operations during the project The Building Surveyor shall maintain contact with the adjoining owners and neighbours during the currency of the project to ensure that any problems are identified quickly, remedial action taken wherever possible, and the Curator and Steering Committee advised 7.2.4 The Architect shall ensure that the contractors keep all footpaths and roadways clean and clear of obstructions, other than any encroachments agreed to by the local authorities 7.2.5 The Project Co-ordinator and Architect shall ensure a proper liaison is maintained with the representatives of (via Messrs ) as to their contractor's operations in Whetstone Park 7.3 AUTHORITIES 7.3.1 The Architect shall conduct all matters to with planning, listed building consent, building regulations, etc., with Camden Council, English Heritage and any other regulating body concerned 7.3.2 Progress on the various aspects of item 7.3.1 shall be reported to the Steering Committee by the Project Co-ordinator 7.4 Visitors to the Museum shall be advised on entry that building operations are under way As far as is consistent with public safety, visitors shall be permitted to enter and view the Museum while the works are in progress but may be restrained by adequate barriers from gaining access to the areas where building operations are in progress 7.S Interest in the project will arise from time to time from many sources, and requests or visits, interviews, etc., will be received Normally these will not be discouraged, but the prior permission of the Curator must be obtained in every case, particularly if the national news media become involved Subject Index Accounting on IT 136 Acquiring an IT facility 139 Adapting the plan of work 64 Advantages of in-house PMs 16 Advertising consultancy services 12 Aggressive attitudes Aspiring PMs Association of Project Managers 4, Brief 32 author 38 content guldellnes 36 control mechanism 34 development of 32 format 34 initial control document 60 preparation of 34 scope of 33 tender document for fee bidding 35 Briefing cost consultant 96 Builders' queries 105 Building manager, recruitment of 128 Building user/project team relationship 21 Cathedral construction Changes funding agencies, management of 23 initiated by building manager 129 requested by client 105 timing implementation 105 too late to include in tenders 74 CICA Services 140 Client building committee 18 change of priorities of 20 objectives of 19 opinion of, on PM's service 132 organisation of 17 and consultant PMs 17 personnel authority of 17 priorities of 20 programme of 19 Client completion requirement 111 Client hierarchy 18 Client involvement 25 in design process 30 Client knowledge of the building industry 11 Client organisation and consultant PMs 17 Client requirement, the brief 33 Code of Practice for Project Management, etc 10 Collateral warranties 24 College of Estate Management Competitive bidding, consultant's services 46 Completion and handover 126 Composite design team, fee bidding 46 Comprehensive project team bidding 45 Confrontation management Construction management complexity 86 liquidations 87 Construction stage design progress 86 meetings 85 PM's role 75 pro-active involvement 80 problems 78 Construction-stage problems 78 Construction-stage programme 120 Consultants approved lists 45 competitive fee bidding 46 documentation for fee bidding 54 enquiries regarding suitability of 185 186 Subject Index 48 fees for, non-standard contracts 55 knowledge of other commissions 54 knowledge of other's insurances 54 location 47 obtaining services of 45 personnel experience of 48 practice organisation of 48 selection criteria of 47 size of 47 Contract commencement meeting 75 Contract documentation 103 Contract period 110 Contract programmes 76 Contract start date 110 Cost advice old style 92 to client 95 Cost checking 73 Cost checks 101 Cost consultancy 96 Cost consultant 102 Cost contingency management 97 Cost control construction stage 104 establishment of 92 Cost management 92 Cost report cycle 106 Cost reporting 105, 106 Costing feasibility studies 73 Costs design-stage estimates 100 first estimate 100 Databases 136 Dedicated project management profession Defects liability 127 Delay, effect of, on fitting out 131 Delegation of responsibility 85 Deputy project manager 42 Design co-ordination 57 Design management procedure 66 Design monitoring activities 65 Design period, impact of, on procurement 116 Design presentations, formal stages 66,67 Design process 65 Design stage 58 Design-stage cost checks 101 Design-stage estimates 100 Design-stage planning 61 Design-stage programme monitoring 118 Design-stage programming 115 Design-stage services co-ordination 68 Design start services co-ordination 68 traditional 58 Design team introduction of members 59 knowledge of other commissions 54 knowledge of others insurances 54 leader involvement in selection 50 selection dilemmas 50 specialist advice 67 Design team appointments 45 cI ient report 51 interviews 52 programming 114 Design team interviews client's attendance at 52 two-stage 53 Design team leader 49,56 one or two appointments 56 resident on site 56 Design team management 64 Design team members, selection of 50 Design team selection, client involvement in 28 Desk top publishing 136 Drawing register with IT 151 Early cost advice 98 Education and training Enabling works 90 Estimates, design stage 100 Examination of standard of components 101 fxpenditure forecasts 99 Experienced clients 13 Facility ready for use 126 Subject Index Feasibility studies 63 Fee bid documentation 46 Fee payments, interim 103 Financial completion 132 Financial constraints affecting projects 20 Financial control with IT 151 Financing costs 94 First estimate 100 Fit allowance 112 Foreign currency exchange problems 107 Funding agencies 22 monitoring by 23 General applications software 134 Historical background of project management In-house management 15 Inexperienced users and PMs 12 Information technology 134, 139 future of 138 Informed clients 11 Interested personnel, consultancy managers 85 Interface zone problems Interim fee payments 103 IT administrative uses 148 drawing register 151 financial control 151 living with 139 senior management involvement 149 small-project work-station 145 support facility 135 and top management 134 IT consultancy 140 IT consultants 147 IT networks 144 IT systems managing 147 selection of 146 (In Knowledge-based systems 138 187 Lay PMs Lead discipline 49 architectural style 49 authority of team leader 49 team members 50 Life cycle costing 70 Limited objective programme 124 Location of project team 55 Maintenance contracts 129 Management guides 16 audit 17 Management proposals variations Management structures 27 Management-type contracts 80 cost control 82 exception reports 84 planning 81 Monitoring programmes 124 Monitoring trends in progress 77 National labour problems 94 Net/gross ratios 112 Ongoing maintenance of building 128 Operational manuals and log books 129 Operational readiness preparation for 127 as a separate project 127 Options, radical, consideration of Outline brief 33 drafting of 35 Outline design activities 116 Passive monitoring in construction stage 76,79 Personal relationships Pe~onnelchanges95 Phased completion 130 Plan of work 62 development of 64 Post mortem 132 Pre-commencement services period 81 188 Subject Index Preliminary time planning 111 Pre-selection of plant items 68 Problematic cost areas 93 economic activity 94 legislation 94 reporting 93 Procedural guides 16 Procurement methods, new 72 Professional programmers 112, 120 Professional specialisations Programme limited-objective 124 tender-stage 119 Programme monitoring 124 PM's team 122 slippage, dealing with 89 Programmers, professional 112, 120 Programmes 121 in practice 124 short-term 123, 125 strategic 111 strategic phase II 113 target 123 Programming design stage 115 impact of design period 116 traditional 109 Project control establishing maintaining Project cost components 98 Project implementation plan 26 Project management definition of introduction of 14 IT packages for 142 qualification for software for 137 Project manager appointments 41 budget and fee 40 composition of 41, 43 consultancy involvement of contract role of 72 deputy 42 design development 59 design involvement 58 duties of 41, 42 hiring in 40 team of 39 Project managers, multiplicity of 80 Project plan Project team briefing of 60 definition of 39 location of 55 selection of, PM's responsibility for 29 Public relations 30 Public sector clients, influences on 31 Purpose-designed IT packages 143 Quality assurance 70 Quantifiable cost factors 95 Rectifying defects, timing of 128 Reliability of estimates 97 Reports on costs 106 to the client 25, 74 Resting and commissioning 128 Risk analysis 70 Scheme design activities 117 Selection criteria for consultants 47 Separation of design and management3 Services co-ordination 57, 68 Services working drawings 68 Short-term programmes 123, 125 Site control staff 91 Software general applications 134 licences for 144 purchasing of 138 Spreadsheets 137 Stages, of the design process 116 Strategic planning activities 113 Strategic programmes 111, 122 phase 11113 Supplementary design-team activities 70 Support team, composition of 43 Target programmes 123 Tenders 104 evaluation and acceptance of 74 Tender-stage programme 119 Subject Index Terms of engagement 52 of design team members 54 Testing and commissioning 120 Time contingency 113 Time management 109 Time planning 111 Total project cost 98 Traditional design start 58 Traditional programming 109 Training for potential PMs Transition into usable facility 126 Type and form of contract 71 Upgrading IT systems 141 User change proposals 21 Value engineering 70 Vandalism 89 Widening client field 12 Word processing 135 Working programmes 125 189 Index to the Appendix Acceptance 178 Accounting officer 162, 172 Accounts contract 172 Architect responsibility of 162 as team leader 166 Archival material 166 As-fitted drawings 179 Assistantcurator's responsibility 162 Expenditure forecast 172 Feeaccounts 172 Finance 172 Front elevation 169 Funding 161 High level roofs 169 Briefs for work parcels 166 Building surveyor's responsibility 164 Cash flow constraint 167 Changes approval of 173 post-contract 173 Competitive tendering 175 Construction drawings 179 Construction phase 179 Consultants 166 Contract accounts 172 Contract commencement 179 Cost checking 173 Cost plan, project 174 Courts 169 Curator's responsibility 161 Damp-proofing 168 Definitions 159 Design 170 development of 166 examination of, by curator 170 Design programme 170 Design team meetings 166 Documentation 176 Internal decoration 169 Internal structures 168 Link passage 169 Listed building consent 183 Maintenance handbook 181 Neighbours 182 Objectives 159 Operational planning 180 Phase A 161 Preparation of final accounts 173 Procurement 175 Programme control 167 Project co-ordinator overseeing of costs by 173 responsibility of 162 Project control and responsibilities 161 Project cost plan 174 Project programme 171 construction element 170 190 Index to the Appendix procurement element 170 Public health/services 168 Public relations 182 Public safety 183 Quantity surveyor's responsibility 163, 164 Rear elevation 169 Rear roofs 169 Schedules of condition 182 Scope of work 160 Security permanent 169 temporary 168 Security advisor's responsibility 164 Services engineer assistance from, on services costs 173 responsibility of 162 Site constraints 167 Specialist's advice 166 191 Steering committee 161 Strategic programme 167 Structural engineer's responsibility 164 Study and dressing room 168 Sub-programmes 167 Survey 168 Surveyor's responsibility 164 Tender issue and receipt 177 Tenders examination of 177 issuing of 177 Testing and commissioning 181 Updating estimates 172 Valuation of architect's instructions 173 Work parcel definitions 168 Work parcels 166 ... should be appointed to draft a project plan 8 Project Management and Control Control of a project is established by preparing a project plan which sets out the project' s objectives, who people... seriously consider and use the project management techniques which were proving well worth while in the United States 14 Project Management and Control 2.5 INTRODUCTION OF PROJECT MANAGEMENT 2.5.1... stronger control and reducing the 11 12 Project Management and Control overall procurement time 2.2.2 Project Managers are normally appointed to direct the procurement of the larger, more complex, projects