organizing for project success
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The purpose of this publication is to make available to
industry the results of research conducted by the
Construction Industry Institute (CII). The publication does
not necessarily represent the view of CII member compa-
nies, but is offered as a contribution to the industry.
CII was founded in 1983 to improve the cost effective-
ness of the nations largest industry. The members, who
represent a broad cross-section of owners and contractors,
believe that many of the problems that limit cost effective-
ness are common ones, and that real improvements can be
best accomplished in a cooperative environment with the
benefits being shared by the construction industry at large.
CII uses the acronym TOPICS to describe the research
effort. TOPICS signifies the six research thrust areas:
Technology, Organization, People, Information, Controls
and Sigma (meaning others). The task forces for each area
are listed below.
Technology
Advanced Technological Systems
Computer Integrated Design & Construction
Constructability
Electronic Data Management
EPC Flexibility
Modularization
Technology
Organizat ion
Constructabililty Implementation
Partnering
Project Organization
Project Team Building
Project Team Risk/Reward Allocation
People
Construction Work Force
Education and Training
Employee Effectiveness
Safety
Zero Accidents
I n fo rmat ion
CICE Impact Evaluation
Industry Data & Statistics
International Construction
Model Plant
Owner Engineering Organization
Project Management Assessment Survey
Controls
ASCE Quality Manual
Change Order Impacts
Claims
Contracts
Contracts, Phase II
Cost/Schedule Controls
Design
Materials Management
Overtime
Overtime, Phase II
Productivity Measurement
Quality Management
Quality Performance Measurement
Total Quality Management
Sigma
Construction 2000
Insurance
Retrofit Projects
U.S. Navy Demonstration Project
Constructi on Industry Institut e
3208 Red River, Suite 300
Austin, Texas 78705-2650
512 471 4319
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Organizing for Project Success
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Prepared by the
Project Organization Task Force
Construction I ndustry Insti t ute
Special Publi cati on 12-2
Februa ry 1991
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Organizing for Project Success C o n t e n t s
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1 Chapter 1: In t roduct ion
3 Chapter 2: Construct i on Organizat i on
3 Concept of Organization
3 Organizational Exchanges
5 Chapter 3: The Proj ect Team
5 Concept of Teams
5 Types of Proj ect Teams
8 Teams, Leaders and D ecisi ons
13 Chapter 4: M anagi ng the Effects of Uncert aint y
14 The Tunnel
14 The O ffi ce Compl ex
19 Chapter 5: Coordinati on Tools and M echanisms
19 Project Objective-Setting
22 Design Basis
24 Proj ect St rat egy25 Work Planning
25 Information Systems
27 Chapter 6: Team Dynamics
27 Project Culture
31 Code of Team Conduct
32 Key Team M ember Sel ecti on
34 Select ing the Ow ner Proj ect Executi ve
36 Sel ecti ng Proj ect M anagers
37 Work Managers
38 Team Development
42 Chapter 7: Summary
43 References
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Chapter 1 I n t r o d u c t i o n
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Mans long-time dream of traveling to the
moon became history on July 20, 1969, when
astronaut Neil Armstrong of the United States
took one small step for man, and one giant
leap for mankind. Few human endeavors
could rival this accomplishment, and few
humans fully understand the massive planning,
task execution, coordination, and teamwork
required to make such a journey possible. It is
an historical testimony to the principle of chan-
neling the efforts of a large number of people
toward the accomplishment of a single goal-afeat that could not have been realized by any
other method.
Construction projects rarely have historical
significance, yet must be planned, organized,
and executed by teams of people dedicated to
the accomplishment of a complex task, just as
in the case of a space exploration project.
The working environment and culture of a
construction project is unique when compared
to most work conditions. Groups of people,
normally from several parent organizations, areassigned to a project or hired to contribute
their services and assist in the construction of a
facility. Due to the relatively short life of a con-
struction project, loyalties are usually with the
parent companies, and the construction project
is not viewed as a career, but as a career step.
Even a modest-sized construction project
involves a tremendous number of people.
Organizing their efforts would be complex,
even if they all worked for the same parent cor-
poration. The division of effort and methods ofcoordination change as the project moves
through distinct phases. Sources of informa-
tion, location, timing, and problem complexity
change as people enter the project, perform
their assigned duties, and depart. Reorganizing
is a continuous process that attempts to bal-
ance conflicting values and requirements.
The heart of the matter is the basic problem
of managing people such that they work
together efficiently to accomplish the goal. This
requires enlistment of skilled people who are
willing to sacrifice short-term gratification for
the long-term satisfaction of achieving a larger
goal.
This CII publication addresses methods,
guidelines, and considerations necessary for
successful project organization, key member
roles and selection, and the elusive art of effec-
tive teamwork. No two construction projectsare the same; there is no substitute for common
sense and flexibility in the administration and
application of these methods and guidelines.
Reading this document, a common thread of
thought will be noticeable: the key to successful
organization architecture is selection of proper-
ly skilled people. These individuals possess the
ability to recognize the degree of uncertainty,
at any point in the execution of the project,
and manage the efforts of others to achieve
clearly defined objectives that result in success-ful completion of the final product.
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Chapt er 2 Construct ion Organizat ion
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Concept of Organization
When an owner undertakes a construction
projec t, what is be in g bought is re al ly th e
efforts of a team in addition to a completed
facility or product. All but the simplest pro-
jects involve the efforts of a diverse group of
people who work together to serve the needs of
a project, yet who also work apart in the ser-
vice of different corporations.
Improving the ability of groups of people to
work together requires a shift in thinking at all
levels. Developing a project should be viewedas managing a complex decision-making pro-
cess, rather than merely preparing a series of
products. This requires focusing on the com-
mercial contract between parties and the roles
of people within work groups. These working
groups are teams that work together to accom-
plish more than they would if they worked sep-
arately. The use of teams is central to the con-
struction project approach because a team is
where the decision-making process begins.
While planning construction, organizations
use a combination of planning and immediate
problem-solving techniques. The team created
to tackle a problem should be composed of
individuals whose history and skills are
matched with the tasks at hand. This team
should be constructed so that the skills of its
individual team members are combined to best
serve the overall purpose of the team.
The lines and boxes of an organization chart
depict the concept of division of work and the
relationship of the worker to formal authority.
Organization can be defined as the sum of the
ways labor is divided into distinct tasks (the
boxes) and coordina tion required among the
tasks (the lines). The people assigned to the
organization, with all their history and skills,
and the task before them determine the struc-
ture of the organization.
The nature, or structure, of the organization
depends on the task the organization is to per-
form. It has been said, Uncertainty appears to
be the fundamental problem for complex orga-
nizations. Coping with uncertainty is the
essence of the adminis t ra t ive process .
Uncertainty arises both within the personal
relationships inherent to the organization as
well as the task environment. Organizations
cope with uncertainty by a combination of
planning and immediate problem solving.
Organizational Exchanges
Exchanges are an essential activity in the
internal dynamics of an organization. An
example of an exchange is the contract, which
is designed to protect organizations, constantly
at risk, as they function in a highly competitive
b u s i n e s s e n v i r o n me n t . T h e c o n c e p t o f
exchanges is integral to the way organizations
do business.
Jus t as commerc ia l con trac ts involve
exchanges between large corporations, and
similarly small private contracts establish for-
mal rules for exchange of products or services
between contracting par ties, exchanges occur
among team members performing the work.
The concept of exchange includes the behav-
ior and relationships of team members. For
example, someone must stop to answer the
questions of a co-worker-such an exchange
costs time, but the team gains because work
can proceed. In the same way, if a team mem-
ber has an original, creative idea, he or she may
lose individual recognition once the idea is
implemented by the team.
As a project moves from an uncertain con-
cept to a determined reality, as illustrated in
Figure 1, the mix of behavior and product
exchanges varies, evolving from behavioral
exchanges during conception and development
to product-related exchanges during actual
construction. The nature and composition of
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the team and the rules governing its behavior
usually change as a project advances through
developmental stages, during which initial
uncertainties are resolved and the project
becomes increasingly more well defined.
Figure 1 Phases of Certainty
Uncertain Certain
100% Ideas/Behavior 100% Products/$
Develop a
concept
4
Set
ObjectivesDecide howto achieve
objectives Designwhat to bolt
together Design howto bolt it
together Buy bolts
Bolt togeth
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Chapter 3 The Project Team
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Concept of Teams
A team may be defined as a group of people
who, by working together, accomplish more
than if they worked separately. A team is more
than a group but less than a community. A
group is a number of people who come togeth-
er in the same place at the same time. A group,
however, is not trying to work together to
accomplish anything. A community is a group
of people with close personal relationships who
care about each others well-being. The com-
munity, however, is not necessarily trying toaccomplish anything more than maintaining
itself.
A team is more than a group because indi-
viduals are cooperating in order to accomplish
a goal. A team, however, is less than a commu-
nity because its members do not necessarily
have close, personal relationships. Team mem-
bers should trust and respect other team mem-
bers, but friendship is not necessary for effec-
tive teamwork. Teams function effectively on
the basis of professional relationships. A teamcan be a democracy or a dictatorship; its mem-
bers may have volunteered or may have been
assigned. Once a person becomes a member of
a team, however, the definition above applies.
Robert Keidel, in his book Game Plans:
Spor t s St rat egies for Business, discusses organi-
zation types by using an analogy of spectator
sports-baseball, football, and basketball.
Baseball is a simple game with few rules; the
players are independent, with little interaction
compared to other sports. The skill and perfor-mance of the individual players are the most
i m p o r t a n t c o n s i d e r a t i o n s f o r s u c c e s s .
Individual performance is monitored by many
statistics. A sales organization is the best analo-
gy to a baseball team. The rules are simple:
Sell! The sales people work independently, and
the success of the organization is determined by
the cumulative success of all the individual
salespersons, who are often paid according to
the ratio of sales to quota.
Football, however, is a complex game with
many rules. Teamwork and individual team
members focusing their skills to perform as a
unit on each play are the basic ingredients of
success. The game plan, which gives hierarchi-
cal direction and specifies systematic team-
work, is important. Most industrial organiza-
tions are analogous to a football team; they are
functional organizations, driven by a business
plan, and require continuous interac tion and
communica t ion be tween indiv iduals and
departments.
Basketball, in our organization analogy, lies
somewhere between baseball and football. It is
played in a continuously changing situat ion ,
and player-coordinated, spontaneous team-
work is the most important feature for success.
The family restaurant, in which every family
member cooks, serves, washes dishes, and acts
as cashier, is an example. Other examples are
university staffs and multi-disciplined consult-
ing firms. High technology companies fit this
category and are dependent on teams, working
independently, to develop products and pro-
cesses for marketing by the larger entity. These
development teams come and go as opportuni-
ties arise and needs are satisfied.
Types of Project Teams
Acknowledging that construction contract-
ing is a team process, not the transfer of fin-
ished goods, poses the question, What kind ofteam? Figure 2 illustrates the simplest expla-
nation, where the project team is viewed as ele-
ments from each contracting party assigned to
the project to produce the desired facility. This
is a baseball concept and implies that project
success is achieved by each party fulfilling its
assigned contractual responsibilities. There is
some interplay between the parties, as specified
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in the respective contracts. The most important
consideration is the ability of each player to
perform well.
Figure 2 Project Team Elements
This concept views teamwork as contract
administration, or the management of the rela-
tionship between the contracting parties. It rec-
ognizes that these parties are usually hypotheti-
cal legal entities, and it attempts to solve the
associated problems. The concept acknowl-
edges that real people are involved; personal
relationships are defined in terms of accepted
social behavior, such as ethics, honest commu-
nication, and professional competence.
Research indicates that the baseball con-
cept is the traditional approach in the construc-
tion industry. Company manuals address rela-
tionships between individuals and specify howeach companys team will deliver contractually
required intermediate products to the other
companys team. Intercompany, or joint, teams
are not part of this concept and usually are not
addressed in either the contract structure or
procedure manuals.
6
The baseball concept is not wrong, but it
is insufficient for large, complex construction
projec ts. It may be adeq uat e for spec ial ,
uncomplicated projects, with little schedule
pressure, where detail design is complete before
cons truc t ion beg ins and no changes a re
required. Most construction projects, however,
do not fall into this category.
The football concept is a better fit for the
construction process. It is driven by planning
and includes many diverse relationships. The
hierarchy of teams (although they may not be
formally designated this way) on a construction
project shown in Figure 3 is described briefly in
the text which follows, and in greater detail lat-
er in this chapter.
Investment Management Team. After a posi-
t ive inves tment dec is ion , an Inves tment
Management Team is formed in the owners
organization to provide overall control of the
new venture. The major functions, such as
marketing, engineering, finance, and manufac-
turing, are usually represented. A Project
Executive usually leads the team and reports to
the head of the business unit which made the
new investment.
Project Management Team. The Project
Management Team is composed of responsible
managers from each of the contracting parties.
Their mission is to accomplish the work,
including coordinating the engineering, pro-
curement, construction, and startup phases.
The Owners Project Manager leads this team
and a lso is a member of the Inves tment
Management Team.
Contractor Management Teams. Reporting
to each of the Contractor Project Managers arethe Work Managers, who together comprise
the Contractor Management Teams assigned to
the project by each of the contracting parties to
fulfill the requirements of their contracts. Each
Contractor Project Manager reports to both
the Owners Project Manager for contractual
matters, and to the Project Sponsor in the par-
ent organization for business matters.
Work Managers. The Work Managers are
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the design leaders and supervisors who lead the
teams actually accomplishing the work. They
are directly responsible for the part of the con-
tract assigned to them by their Contractor
Project Manager, in accordance with the busi-
ness practices of the parent organization. They
must also communicate and coordinate their
efforts with Work Managers from the other
bus iness uni ts. Usually, thi s communica tion
does not flow vertically through the chain of
command, but instead flows horizontally
between people actually involved in the work.
Work Manager Teams. Communication at
the working level is not just a network. Instead,
teams of individuals from the various business
units are united to accomplish specific tasks.
For example, the lead designer for a structure,
Figure 3 Project Teams
the steel fabricator, and the general superinten-
dent have to understand each other and also
work together if the steel is to be erected cor-
rectly and on time. Ideally, the basic elements
of the Work Manager Teams should be in
place during definition and planning, thus giv-
ing a voice to those who implement final pro-
ject responsibility in determining their future.
An example is the constructability analysis
addressed by other CII publications.
This hierarchy of teams is similar to a pro-
f e s s i o n a l f o o t b a l l o r g a n i z a t i o n . T h e
Construction Owner is similar to the owner of
a football team who contracts for the required
resources. The Project Management Team is
the coaching staff which forms the game plan.
The Owners Project Manager is the head
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8
coach. The Work Managers and their teams
are the running backs, wide receivers, interior
linemen, linebackers, and other players who
actually participate in the game.
Professional football organizations also
incorporate flexibility into their teams. Run to
daylight and improvisation on broken plays
a r e i n t e n t i o n a l p a r t s o f t h e i r s t r a t e g y .
According to the analogy used here, some bas-
ketball is played in the middle of the football
field. Similarly on successful projects, the Work
Managers, who are the players, form Work
Management Teams to adjust their efforts
across business unit boundaries.
Teams, Leaders and Decisions
Construction is driven by a planning pro-
cess. Increasingly detailed decisions are
required when moving through the hierarchy of
teams. Decisions at one level become action
items for the next team. To facilitate the dele-
gation process, the leader of each team, except
for the Project Executive, is a member of thenext higher team. Table 1 is an illustration of
this leader/team ladder with a listing of the
major decisions made by each team. Two kinds
of decisions are to be made. The first is plan-
ning decisions-what will be built and how is it
to be constructed? Secondly, process decisions
are required to determine how each team will
conduct business. These process decisions form
part of the code of conduct, which is described
in Chapter 6.
During the definition and planning phase,the needs of the owner must be determined.
Someone must organize the owners team and
establish a clear direction for the project. The
key to success is a strong Project Executive,
who has the power and authority to make deci-
sions of impact. This function is necessary
be ca us e th e Ow ner s Pr oj ec t Ma nage r ma y
have insufficient influence to resolve disagree-
ments, which occur due to conflicting objec-
tives of the marketing, manufacturing, finance,
and engineering functions.
A formal Investment Management Team
should be formed from elements of the owners
organization to define project objectives, estab-
lish priorities, and approve the work of con-
tractor teams. This team is led by the Project
Executive and includes representatives from
marketing, engineering, finance, procurement,
the Owners Project Manager, and the user,
such as the manufacturer. This group overseesthe project, reviews and approves vast amounts
of information, establishes policy, solves prob-
lems, makes decisions, coordinates, and com-
municates. This team function is vital to pro-
ject performance.
Generally, the Project Executive resolves
conflicts within the owners organization. It is
essential that this position has sufficient
authority, either formal or informal, to make
necessary decisions which will allow the
Owners Project Manager to implement anaction plan. The Project Executive should be
the ultimate contractual authority. If not, there
must be an established, rapid board or commit-
tee authorizat ion process that the Project
Executive can use to resolve conflicts and force
decisions.
Approvals are a special consideration for the
Investment Management Team, since these are
their tools to control the project organization.
This applies to planning documents, contractu-
al commitments, progress payments, and finalacceptance. A rapid process must be estab-
lished to gain approvals within the owners
organization. Approvals should be natural con-
trol points during the life of the project; they
must not become lengthy processes which delay
project progress. The Project Executive should
set the tone for open, candid communications
and timely action.
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Table 1 Project Teams, Leaders and Decisions
Teams & Leaders
Project ExecutiveInvestment Mgt.
Project Mgt. Owners Proj. Mgr.
Contractor Proj. Mgrs.
Decision Responsibilities
Planning Process
Project Objectives Approvals
Project Strategy Changes
Roles & Responsibilities Problem Solving
Information Systems
Contractors Mgt.
Work Mgr.
Work
Lead DesignerGeneral Supt.
Work Mgrs.
(Company Requirements)
Constructability Analysis
Construction Schedule
Work Plans
(Company Requirements)
Technical Resolutions
Submittals
Operations Schedules
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l
l
l
l
10
An Owners Project Manager (OPM) is the
member of the Investment Management Team
responsible for the management of the design,
procurement, and construction activities; this is
prob ably the mos t importan t mana gement
function of the project. The OPM may have
limited resources under direct control because
the work has been contracted to various busi-
ness units. Still, the OPM is responsible for the
accomplishment of this work.
Most owners recognize the need for an
OPM, but may not realize the importance of
the position. As a pure management position,
the OPM is responsible for getting the work
accomplished through other people. The OPM
should be the agent of the owner, authorized to
act on behalf of the owner. The OPM does not
have to be the ultimate contract authority, but
must be authorized to represent the owners
interest, within the bounds of the established
contracts.
The Owners Project Manager should be an
e x p e r i e n c e d c o n s t r u c t i o n p r o f e s s i o n a l .Manufacturing supervisors and facilities man-
agers may not be familiar with the construction
process. If the owner does not have such a staff
person, one should be acquired for the project.
The Project Management Team, a joint team
of the Contractors Project Managers, is led by
the Owners Project Manager. The primary
task of this team is to plan the project, subject
to the approval of the Project Executive. This
team also develops the project strategy, with
the resulting project schedule, and specifies theinformation system required. Their relationship
is defined by the roles and responsibilities
defined in the contracts between the parties.
Actual management of the design, procure-
ment, and construction activities is pursued by
a network of individual managers. As each
business unit is hired to deliver an end product,
its responsible manager becomes part of this
network. This management team of individu-
als, from different business units, must commu-
nicate and work together to coordinate the
efforts of the various entities. Each manager
must accomplish the work in the contract, plus
coordinate with other managers to control the
f low of work th rough each phase of the
project.
The Project Management Team must define
its rules and personal commitments. The two
most important areas are problem solving and
changes. These require a joint effort and mutu-
al cooperation, despite inherent conflicts
between specific company and overall project
concerns. Each party must provide objective
input. The individuals involved in changes
should mutually decide how they will manage
problems and changes, from inception to settle-
ment. It is important that discussion and mutu-
al understanding be a part of this process.
The Contractor Teams are company teams
from the contracting entities, who are led by
the respective Project Managers. Functional
un i ts wi th in the teams a re led by Work Managers, who are supervisors or design lead-
ers. These teams not only accomplish the main-
line activities of design, procurement, installa-
tion, and startup, but also staff functions, such
as accounting, scheduling, cost control, and
office services.
Delegation is the heart of a Contractor
Team; it requires the responsible manager to
take four steps:
Establish requirements
Make assignments
Monitor results
Give feedback
The last of these is the most important.
Feedback is necessary, not only to adjust indi-
vidual performance, but to revise the original
requirements, which may have been improperly
stated.
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The entire planning process, from project
objective to work plans and operations sched-
ules, is a system of delegation. Without project
objectives, Contractor Teams will not have
clear direction. Lack of project objectives also
makes it difficult to set up effective teams and
delegate responsibility.
Prior to the first day of participation in the
project, Contractor Teams should be instructed
on the expectations of their teams. Company
Teams must understand the importance of
objectives, rules, tasks, relationships, conse-
quences, and personal values. The Project
Executive, Design Project Manager, and
Construction Project Manager must specifically
instruct their teams on required interface rela-
tionships with other teams; different projects
require different interfacing relationships. The
code for a particular project must be communi-
cated explicitly-it cannot be assumed.
The owner should set the pace by dictating
what relationships are expected in terms of:
l Interface authority and responsibility
l Communications
l Coordination
l Methods of settling differences between
teams
These instructions modify the Standard
Operating Procedure (SOP) that governs corpo-
rate team requirements. Without this SOP, tri-
al-and-error adjustments between teams and
their members can be laborious and costly. The
guidelines should be published in the projectpolicy and procedure manuals.
Work Manager Teams can be envisioned as
either one team, with the membership changing
as the task requirements change, or a series of
teams, each formed to address a specific task.
After design is completed, the most prominent
team manages construction operations and
includes those who either report to or support
the General Superintendent for each facility.
This team builds the project and is accountable
for taking it from design to completion. As the
pinnacle Work Manager Team responsible for
everyday production, it is placed between the
deliberation-policy management group and
hands-on implementation. This teams policy-
making authority should be minimal. Time
should be spent in implementation, which
requires combinations of review and approval,
problem solving, decision-making, coordina-
tion, communication, and support. All of these
functions make the performance of this team a
top priority during construction.
This team also is in the trenches of everyday
activity, where there are continuous pressures
to act and respond. On the playing field, in
order to keep close coordination and communi-
cation, team members should be adept at read-
ing one anothers signals, without hesitation,
change, or confusion.
This team is highly visible, and other teams
use it as a guide for their own operations. If
this group is working either exceptionally well
or poorly, then it is known throughout theentire project. The leadership and effectiveness
of these frontline teams are essential ingredi-
ents for a successful project.
It should be noted that in the previous dis-
cussion the term leader is used more often
than manager. This is intentional. The words
have different implications. A manager is
assigned formal authority and the responsibili-
ty for accomplishing a task. The position of a
leader is informal. It depends on the willingness
of the team to follow. The task of the leader ist o e s t a b l i s h t h e d i r e c t i o n o f t h e t e a m .
Managers do things right; leaders do the right
things.
The book, Leaders, identifies four character-
istics common to effective leaders:
1. They gain the attention of their team
through an overriding vision.
2. They are able to communicate and
transfer the meaning of their vision.
3. They gain trust through consistency.
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12
4. They know and are able to manage them-
selves.
Good managers are effective leaders, but
several of the necessary leaders on a construc-
tion project do not have formal management
authority. Figure 4 identifies the Project
Management Team and the Work Manager
Teams as joint teams composed of individuals
from different business units. Although usually
seen as communication networks, they are real-
ly teams of people working together to accom-
plish respective management tasks. They mustbe formed, developed, and led as are the recog-
nized company teams.
Members of joint teams draw from their col-
lective parent organizations the specific objec-
tives and rules that are to be applied. The inte-
gration of these factors, which plainly spell out
how the team should operate, must be adopted
by the team as a whole. The differences in the
parent corporations instructions to the individ-
Figure 4 Types of Project Teams
ual members of the joint team may be slight or
enormous, but differences will exist. These
must either be negotiated out, preferably by the
joint team on the spot, or deferred to parent
corporations for opinions and decisions, and
then be communicated back to the joint team
for adoption.
Not surprisingly, organizat ions depend on
the leadership ability of many key managers
during the construction process-the point
being that leadership and effectiveness of joint
teams is as essential to a successful project as
that of the company teams from the contract-
ing parties.
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Chapter 4 Managing the Effects of Uncertainty
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Development of a project, from concept to
reality, is actually a reduction of the uncertain-
ty process. At every stage of the project, the
team is striving to clarify exactly what is to be
done and how to do it. Figure 5 shows in
matrix form the two dimensions of certainty as
the project moves from concept to reality.
Figure 5 Certainty Matrix
EXECUTION-
Low How High Facility
High
DEFINITION-What
Low
Idea
Projects sometimes start with low certainty
on both axes of the matrix. As planning and
coordinating decisions are made, the project
moves toward completion. Each step in the
process should define more clearly what is to
be bu il t and how the work wi ll be ac com-
plished. In reality, definitions of the what are
not always clear. Uncertainty about what is to
be built continues to arise as project objectives,environment, market factors, and technology
change with the discovery of new information.
Similarly, the behavior and relationships of key
personnel also may change while the project is
under construction.
13
Projects move at varying rates and follow
different paths from concept to completion.
This movement is often described in terms of
phases, such as these:
Forming a concept
Developing objectives
Identifying how to achieve objectives
Designing the project
Procuring equipment, materials and ser-
vices
Constructing the project
Startup and operation
Different team members during different
phases of a project may be in a better position
to collect, evaluate, and make decisions con-
cerning technical and market information.
Although the organization is shaped for the
task of decreasing uncertainty, structure
depends on the perception of project exchanges
which occur. If these perceptions are consistent
with actual circumstances, the organization is
functioning well. For example, on the matrix
shown in Figure 6, a straightforward construc-
tion project can be portrayed as the purchase
of a series of discrete products.
Figure 6 Certainty Matrix
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Lo w
14
Reliance on intermediate products works
well conceptually for projects that start con-
s t ruc t ion in the top r igh t corner o f the
matrix-when both what and how cer-
tainties are high, and the project is not under
any unusual schedule or budget constraints.
(Projects in this quadrant are typically the mar-
ket purchase of a standard product.)
Experience in the high certainty corner of
the matrix is a major force in shaping the way
people view the construction process. The con-
tract and organization resulting from a tradi-
tional market exchange work less well as the
level of certainty decreases.
Many projects begin the construction phase
in one of the other three quadrants. Referring
to Figure 7, the construction phase of a tunnel
might begin in the upper left quadrant, while a
commercial building might begin in the bottom
right. These two situations are discussed below.
Figure 7 Certainty and Paths
Low HO W High F a c i l i t y
Hi gh
WHAT
Idea
The Tunnel
A highway department considers re-routing
a stretch of canyon highway into a tunnel to
avoid a present set of problems. Although they
have some idea what previous tunnels have
cost, they do not have exact information on
geologica l condi t ions . When the pro jec t
appears to be feasible, they begin design.
Borings are conducted and geological studies
are tested. Based on these activities, they select
an alignment, lining, and construction method.
A constructor is chosen to carry out the work.
The tunnel project is shown as Line A in
Figure 7.
Despite the experience and engineering skills
of everyone involved, construction begins with
far less certainty about how the work will get
done than what is to be built. Each advance
into the mountain reveals new information
which changes the work approach. The project
team faces the task of re-planning based on
new information, and the success of the project
depends on finding and implementing cost-
effective solutions to technical problems.
The Office Complex
A developer identifies a piece of land in a
good location for an office complex. The four-
story structure will be steel frame with pre-cast
exterior wall panels. The technical and con-
struction issues are neither unique nor particu-
larly difficult. The exact arrangement of the
internal space, however, is far less certain. The
developer begins construction with less than
half of the space rented. New tenants demand
significant alterations to their space during
construction. The project team must respond to
new information from the marketplace. Success
depends on managing the work effectively and
executing routine tasks efficiently. The office
complex project is shown as Line B on the
matrix.
In fact, projects may begin construction at
any place on the matrix. Projects which origi-
nate in a position down and to the left on the
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matrix can be expected to have a higher
amount of uncertainty and a greater possibility
of change. A research and development (R&D)
facility typically starts construction with less
certainty than other projects and faces more
urgent schedule pressure, as illustrated in the
matrix of Figure 8.
Figure 8 Certainty and Location at Start of Construction
High
WHAT
Low
Idea
Low HOW High Facility
Organization for projects that begin in the
low/low quadrant will differ from others for
sound reasons. Project organizations in this
quadrant should not be based on the projected
exchange of ill-defined products. Instead, these
project teams should be organized to collect,
evaluate, and act on information as the project
progresses. This requires having systems in
place to co ll ec t in fo rmat io n, plan, ac t, andmaintain agreement among all concerned.
Organizations that share information and dis-
tribute decision-making responsibilities can be
impacted by strict contracts based on exchang-
ing products. These organizations must decide
whether to tolerate significant problems or re-
design their structures to channel information
to the appropriate person. This will insure that
decisions are acceptable to all contractual par-
ties.
Not surprisingly, interesting developments
occur on projects located in the lower left-hand
corner. Here, it is obvious that the traditional
view of the construction process, where prod-
uct exchanges are controlled by the classic con-
tract, results in organizations less likely to
make effective decisions required to complete
dispute-free projects.
By fostering the newer concept, which views
construction as a team-oriented process, own-ers and major construction companies are
forming long-term relationships, a key element
in the concept of partnering. Partnering is
the formation of an on-going relationship
be tween those who know how to construc t
projects and th ose who dete rmin e what is
required. As shown on the matrix of Figure 9,
constructability is enhanced by partnering.
The matrix in Figure 9 has a number of
implications for project organizations and con-
struction management practice. Optimum con-struction strategy is based on the location on
the matrix and the objectives of the project.
Procurement policies and procedures must
Figure 9 Certainty Matrix and Change
Low HOW High
High
WHAT
15
LowConstructability
Partnering
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Low
Followingthe Plan
16
mesh with the chosen strategy. Project teams
must spend time and money to reduce uncer-
tainty if they expect to manage subsequent pro-
ject phases and their intermediate products.
The meaning of change depends on the
quadrant where a project is located, at a point
in time, as shown on the matrix of Figure 10.
Figure 10 Certainty Matrix and Change
Low HOW High
High
WHAT
The trend toward early involvement of all
concerned parties during construction is benefi-
cial; it assembles the people who know best
how to do something with the people who
determine what they want. This can be seen in
the development of partnering relationships
and the recent emphasis on constructability.
Difficulty can arise, however, when people who
are accustomed to functioning in the high/highquadrant, where direction is unambiguous and
change is perceived as an enemy, meet people
from the low/low quadrant who consider
change as beneficial while refining the project
plan.
Conflicts may occur when people have dif-
ferent ideas concerning where the project is
located on the matrix. Disputes are likely to
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
result when managing a project with inappro-
priate contractual tools for its location on the
matrix. For example, conflict is likely if the
owner uses a contract based on a highly certain
view of the project, while the contractor views
the project definition as unstable.
Factors which determine project success vary
by quadrant. Developing clear objectives is an
early requirement in the low/low quadrant.
Following the plan is the obvious key in the
high/high quadrant. Projects in the top left
quadrant require high quality technical solu-
tions for optimum performance. Projects in the
lower right quadrant need high quality coordi-
nation to achieve efficiency. These success fac-
tors are shown in the matrix of Figure 11.
Figure 11 Certainty Matrix and Success Factors
Low HO W High
HighHigh QualityTechnical
Solutions
WHAT
Low Clear
Objectives
High QualityManagement &Coordination
The project starting point position on the
certainty matrix, or the degree of definition,
has an impact on the initial communication
strategy of a project organization, as shown in
the matrix of Figure 12 (next page).
In the lower left uncertain/uncertain quad-
rant, the usual practice is to release the work in
increments, as soon as each piece is defined.
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The Investment Management Team must take
the lead and initiate numerous top-down com-
munications specifying what is needed for each
piece. The designer, supplier, and constructor
then define and implement to satisfy each need.
A phased construction approach is used,
with considerable overlap between design and
construction. Research facilities, some weapons
systems, and hazardous waste clean-up projects
are examples of this approach.
In the upper left certain/uncertain quadrant,
communication is critical between the work
Figure 12 Certainty Matrix and Communications
WHAT
HOW Cer ta in ty
Uncer ta in ty
force and the Project Management Team. On
tunnels, dams, and other large earthwork pro-
jects, the construction method, and perhaps the
design, must be adjusted during the construc-tion process. As the primary planning team, the
Project Management Team must respond to the
adjustments.
In the lower right uncertain/certain quad-
rant, neither design nor construction is diffi-
cult. The problem is to adapt to the specific
needs of the marketplace. The general parame-
ters of a commercial office building can be
established sufficiently in advance to support
f inanc ia l ana lys is , funding , and contrac t
awards. When the ultimate user is identified,
considerable adjustment may be required.
Again, the Project Management Team must
control this process and incorporate only the
necessary, practical changes to design and
required construction.
In the upper right certain/certain quadrant,
both what and how are known. Work can be
clearly delegated to the designer, supplier, and
b u i l d e r . Th e a b i l i t y o f t h e Co n t r a c t o rManagement Teams will determine the perfor-
mance of the contracting parties and the suc-
cess of the project. The key communication is
the reporting and monitoring system which
insures contract performance, as well as
prompt payment for the work accomplished.
This is the traditional view of the construction
process, and many projects fit this category.
This is the baseball concept, mentioned
earlier.
The task force has conducted workshops inwhich participants have indicated that not only
is the baseball concept inadequate for many
pro jec t s , b u t t h e f o u r q u a d r a n t s o f t h e
What/How Matrix also may be incomplete.
The population of industry projects is not neat-
ly polarized into four separate categories.
Rather, the project population is concentrated
more in the center/center of the What/How
Matrix, with the centroid only slightly above
and to the right of center. Many projects are
not in one of the quadrants, but in a mixture oftwo or more quadrants. More research is
required to identify the variables and the orga-
nizational impact when a project is a mix of
the various quadrants. 1The foregoing does not give many prescrip-
tions. Hopefully it will supply valid and useful
concepts for the individuals on a specific pro-
ject so that they can agree on where they are
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and what they need to do together. One of the
problems is that there are no units on the What
and How dimensions. Also, no objective mea-
surement determines where a project is. The
location is determined by the perception of
each individual, and perceptions vary because
no one knows everything. This makes the
matrix a useful discussion tool to determine
where the parties are coming from and address
the differences that get in the way of a success-
ful team effort.
Project organization, uncertainty, and types
of teams have been discussed, with emphasis
on general concepts and organizational theory.
Chapters 5 and 6 will address specific, practical
applications of the subject matter presented in
the previous sections.
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Chapter 5 Coordination Tools and Mechanisms
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Successful organizations do not occur
because groups of people are brought together
in an office or at a jobsite. Many different
forms of organizations can be successful; such
organizations share a unique set of coordinat-
ing tools and mechanisms that allow the group
of individuals to act in a cohesive, focused
direction toward satisfying a single purpose.
Coordinating tools and mechanisms include:
l A comprehensive objective-setting
process
l The design basisl A project strategy
l Work planning
l Information systems
Project Objective-Setting
Managers in the construction industry agree
that a critical ingredient to the success of a pro-
ject is the objective-setting process. This pro-
cess is closely related to planning efforts, scope
definition, and project team motivation. In
many cases, the process of establishing objec-
tives may be as critical in building team com-
mitment and understanding as the objectives
themselves. Just as the process contributes to
the success, research has shown the wrong pro-
cess can lead to difficulties. The lack of clear
owner-objective definition, internal consistency
of objectives, and clearly communicated project
objectives can create costly problems for pro-
ject teams.
Objectives, including trade-offs betweenquality, costs, and schedule, are used to guide
numerous decisions. The objectives guide the
development of more specific goals, proce-
dures, design criteria, and milestones. When
more detailed definition of the project is
required, the objectives are used as the bench-
mark for specific direction.
Ideally, a common set of objectives should
guide the owner, designer, and constructor.
The objectives provide the basis for all parties
and, as such, must be compatible. The compat-
ibility is essential to minimize conflicts among
the owner, designer, and constructor organiza-
tions concerning the project objectives. The
objectives should be established, and all teams
should clearly understand them and be in
agreement with the relative priority placed on
each objective. When this occurs, the various
teams can begin to accomplish their specific
responsibilities in harmony with other teams.
The objective-setting process should be a delib-
erate, managed process.
The three phases in the management of pro-
ject objectives are: formation, communication,
and integration. These three phases are shown
in Figure 13. The formation phase consists of
the methods used by the owners organization
to combine the corporate goals and suborgani-
zation objectives into a single set of project
objectives. The communications phase is the
means by which the owner disseminates, bothdirectly and indirectly, the project objectives
developed in the formation phase. The integra-
tion phase represents all efforts on the part of
the owner to combine the project objectives of
the designer and constructor with those of the
owner, thus forming an integrated project
strategy.
Strong owner involvement is needed in each
phase to aid in the planning, programming,
design, and construction of a project, regard-
less of how many outside organizations arecontracted. Feedback is critical to insure that
the system is working properly and objectives
are common to all organizations. Written pro-
ject objectives provide a focal point for discus-
sion and periodic review.
Formal processes can be used to form pro-
ject objectives. Case studies of several projects
have been used to develop the process present-
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Figure 13 Certainty Matrix and Communications
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ed here. The recommended process to define
project object ives requires that internal uni ts
within the owners organization (engineering
department, marketing department, and other
functional departments) work together to iden-
tify appropriate objective priorities. This team
environment is the key ingredient of the pro-
cess, as it provides for open communication,
compromise, and putting the goals of the larger
organization ahead of the internal unit goals.
The role of a Project Executive is critical to the
success of this task.
The recommended approach for managing
project objectives includes the following critical
elements:
l Study and fact-finding to develop
objectives
l Communication and negotiation to
establish objectives
l Communication of objectives to parties
throughout the organization
l Feedback, direction, redirection or rein-
forcement related to project
objectives and priorities
Several studies may be necessary to define
the problem or opportunity adequately in tech-
nical and financial terms. The process requires
considerable fact-finding, discussion, and anal-
ysis. A set of written objectives statements is
usually the product. The objectives should be
stated in terms that are:
l Specific and identifiable
l Oriented toward single-ended results
l Set against deadlines
l Attainable
l Responsible to organizational needs
l Controllable
l Assignable to organization units and
individuals for accountability
Single objective statements are best, but they
should not be general. Specifically, it is impor-
tant to state objectives clearly and avoid com-
munication problems.
Blending the various suborganizational
objectives (e.g., marketing objectives, engineer-
ing objectives, operation objectives, and finan-
cial objectives) into a consistent and stable set
of well-defined, user-oriented project objectives
is an important task.
Several mechanisms can contribute to, or
detract from, the effectiveness of communica-
tion. These mechanisms are classified as com-
municating, reinforcing, and detracting mecha-
nisms. Communicating mechanisms, those
items used to transmit objectives directly to the
participants, include:
l The project execution plan
l A written design basis
l The contract documents
l Policy and procedure manuals
l A pre-bid or pre-construction meeting
l Written objectives and priorities
l Constructability reviews
Reinforcing mechanisms which support and
emphasize the communicating mechanisms are
used to maintain focus and direction for the
continual process of communicating objectives
throughout the organization. Reinforcing
mechanisms include:
l Weekly progress meetings
l Executive level reviews
l Expediting reports
l Project instructions
l Project team layout
l Toolbox safety talks
l The tone of correspondence21
Detracting mechanisms which create situa-
tions where separate, incompatible objectives
are established by the various project organiza-
t ions ex is t th roughout the cons t ruc t ion .
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22
Examples of detracting mechanisms include:
Poorly defined design basis
Inconsistent design requirements
Poorly designed project communication
systems
Lack of expertise
Dominant external objectives
Lack of project controls
Poor operational planning
Inappropriate staffing levels
Key individuals unavailable for
decision-making at the project
Detracting mechanisms have strong negative
impacts on projects. All of these mechanisms
point to the need for good communication sys-
tems, with a deliberate feedback system, to
insure the effectiveness of communication.
Design Basis
The Business Roundtable states in its
Construction Industry Cost Effectiveness
Report A-2, Poor scope definition at the esti-mate stage and loss of control of the project
scope rank as the most frequent contributing
factors to cost overrun. The CII Design Task
Force, in CII Publication 8-2, Input Variables
Impacting Design Effectiveness, considers
scope definition to be the input variable with
the greatest impact on design effectiveness.
Prior to the beginning of design and con-
struction, it is important to establish and
define, with appropriate detail, the intent a giv-
en project is to achieve; yet, this task is not
always given proper attention. The design
basis, a set of documents written and drawn to
define the technical requirement for the project,
must have sufficient depth to provide clear
direction for all major design issues. The for-
mat of the design basis varies, but usually
includes drawings and specifications, and may
be supplemented with renderings, models , or
even three-dimensional CAD graphics. The
design basis may be a series of documents pro-
duced early in the design process. There may be
other documents produced at interim stages
requiring approval prior to proceeding to the
next stage. The design basis should clearly
communicate the intent to the designers and set
appropriate boundaries on the project design
for detailed decision-making.
In order to maximize the effectiveness of the
design basis, three requirements must be met:
Completeness-There must be sufficient,detailed information to address all the
design issues for a project such that
informed decisions can be made by the
project personnel.
Consensus-Person or persons in the
owners organization who make decisions
and approve the design basis must com-
prehend what they are approving, and
should have the concurrence of all parties,
including those who operate and maintain
the facility.
Communication-The design basis must
be shared openly, not only with all parties
in the owners organization, but with the
designers and constructors as well. When
the design basis is sensitive or proprietary,
security procedures must be established.
Although a relatively small portion of project
personnel develops the design basis, the impact
of this effort is great. Design changes, particular-
ly after the design basis has been set, can create
havoc on the project and dramatically add to the
cost of design and construction. The change of
an important aspect of the project during the
development of the design basis may take only a
few hours to implement. The same change, late
in design or during construction, can cause enor-
mous cost and intolerable delay.
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The design basis development phase is notthe occasion to save time or money. High qual-
ity resources must be dedicated to, and time
allowed for, development of the design basis.
Prior to the beginning of the design basis, a fea-
sibility study must be completed (by in-house
personnel or consul tants exploring the basic
idea for the project, with appropriate financial
analysis resulting in tentative approval to pro-
ceed with the project). The owners goals and
objectives must be formulated at this point; the
designer then can gather information anddevelop the design basis.
Generally, two kinds of information are
gathered. The first is the given conditions and
constraints; these include site condition infor-
mation such as survey, climate, traffic, soils
investigation, hydrology, drainage, and envi-
ronmental constraints. If a project involves the
renovation of an existing facility, a comprehen-
sive analysis of the facility is necessary. In addi-
tion, legal requirements such as building codes,
Federal regulations, zoning ordinances, andlocal government approvals must be examined.
The requirements of the owners insurance car-
rier also must be considered. Local utilities
must be contacted to determine the availability
and location of services. If the owner has a sys-
tem of space standards or other general design
requirements, these must be identified.
The second type of information gathered
concerns project needs. The designer must
work with the owners project manager to
establish the owners requirements for the pro-
je ct . These in clude th e obvious fu nc tional
requirements such as the amount of space, the
produ ct ion cap ac ity, en er gy co nsu mpt ion,
number of occupants, the performance criteria
system, aesthetics, image, flexibility, and
expendability.
The next step in the development of the
design basis involves establishing the criteria
and evaluating various alternatives to meetthose criteria. The owner, guided by various
representative departments, makes choices
among reliable alternatives. The documents
which are developed at this stage include gener-
al arrangement drawings, site plans, architec-
tural elevations, flow diagrams, and the outline
specifications for mechanical, heating, ventila-
tion and air conditioning (HVAC), electrical,
and structural systems. Along with these con-
ceptual definitions, an early estimate of the
project cost is prepared based on the conceptu-al design.
The next step in the development of the
design basis involves further definition of each
of the systems. A more detailed set of site
plans, indicating the utilities and support build-
ings, is developed at this stage. Materials are
selected; floor plans, elevations, and typical
details are developed for building the facility;
building systems are diagrammed; and an ener-
gy analysis will be prepared. The piping and
instrument diagrams may be prepared; modelsmay be developed to show the relative posi-
tions of major pieces of equipment; and con-
structability is brought into the evaluation of
the design basis. Value engineering, or selecting
the most economical alternatives for the overall
life cycle of the project, also should be a part of
this process. Since the owner usually is working
with financial constraints on the project, it is
common during the development of the con-
cepts and the design basis to adjust the criteria
to fit the owners budget, which must be
matched with the scope of work.
The design basis development, described
above, is a constant design, review, and re-
design process which should involve the owner
on a weekly basis.
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24
Project Strategy
A plan-often called a project strategy-is
required to carry out tasks in a timely manner,
even in the early stages of project development.
The project strategy provides overall direction
for the project team, which must make numer-
ous decisions throughout the course of the pro-
ject. In effect, the strategy serves as a road map
for that decision-making process. The project
strategy includes four key elements:
l A contracting strategy
l Logistics and support
l A project schedule
l A listing of the roles and responsibilities
The owner determines the formal structure
for the project team through the formation of
the contracting strategy. The contracting strate-
gy identifies the risk allocation, as well as the
overall organization structure, and provides
definition for the roles and responsibilities for
each team member. In the early stages of pro-ject st ra tegy development, th e owner must
determine whether to perform certain tasks and
duties or assign them through a contract to
other specialists. The owner may have a large,
sophisticated engineering staff to perform the
majority of design, procurement, and project
management; in other cases, the owner may
have only a limited staff for projects, necessi-
tating the purchase of outside services for the
early design work. The owner organization
must make an honest assessment of an outsidefirms capabilities to perform these services and
evaluate the economic trade-offs of purchasing
outside services.
Next, the type of contracts used must be
determined. Sensitivity of time is probably the
most important consideration to the investment
decision. Owners who desire a fast-track sched-
ule may contract on a cost-plus-fee basis. If
time permits and design is complete, the tradi-
tional design/bid/build approach may be used
and a lump-sum contract awarded. Industry
traditions often influence the type of contract
selection. In the process industry, contractors
working closely with an owners engineering
staff can be responsive, timely, and cost effec-
tive using cost-plus-fee contracts. In contrast,
public agencies tend to use lump-sum contracts
when design is complete and then award a con-
tract for a fixed sum prior to the beginning of
construction. Realistically, the owners project
team should investigate all the possibilities,
identify advantages and disadvantages consid-
ering the project schedule, and develop a prac-
tical approach that meets the project objectives
and includes the necessary, most cost-effective
provisions.
After the contract type is decided, the next
contract strategy development step is to deter-
mine a suitable acquisition process. Issues
include local design and contracting firms vs.
national contracting firms, open or selectivebid process, and the time required to choose a
contractor. The acquisition process can include
price and/or technical competit ion. The impor-
tant result is selection of the best qualified con-
tractor to perform the work-a contractor who
can, with some certainty, meet the project
objectives.
The second element of the project strategy is
logistics and support planning. Logistics and
support include housing (such as a construction
camp), construction site access, temporaryoffices, construction parking, and construction
utilities. Supply routes, means, and communi-
cations also are elements of the logistics and
support which must be planned. On some pro-
jects, it is appropriate to have a project labor
agreement. Logistics and support should define
procurement of long-lead or special materials
required. On large process projects, major pur-
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chases of specialized equipment and vessels
during the design stage are common.
Project schedule development is part of the
project strategy; by definition, a project sched-
ule is the time phasing of design, procurement,
and construction tasks. The schedule is normal-
ly a network diagram of required activities.
The purpose of the schedule is to identify the
interfaces between activities. The project sched-
ule defines the logic and expected durations for
project activities. A valid project schedule must
be developed, with agreement and approval ofthe client, designer, major vendors, and con-
tractor. Changes to a developed schedule
should be approved by all parties.
Finally, the project strategy includes a defini-
tion of roles and responsibilities. A roles and
responsibilities matrix is illustrated in Table 2.
Risk assignment, an integral part of roles and
responsibilities, should be borne by the party
best able to control the uncertainties associated
with the risk. Some construction risks, such as
site conditions, are uncontrollable; these risksare normally assumed by the owner.
Work Planning
Work planning, an essential ingredient of
successful projects, is vital at every level of a
successful project. The work plan may be a list,
table, bar chart, or network schedule. The
work plan can be a single document for a sim-
ple project or a lengthy document for complex
projects. Each Work Manager monitors perfor-
mance by measuring the quantity and quality
of work accomplished as compared to the
work plan.
The work planning process attempts to cap-
ture the greatest efficiency, while satisfying all
the project objectives: quality, time, cost, safe-
ty, and others. Work planning is normally
accomplished in an interactive, backward, step-
wise fashion. Initially, a target completion date
is established, and startup steps are identified
to satisfy the completion date. A construction
schedule is developed for the construction
phase of the work. Based on the construction
schedule, the designer and constructor establish
the design schedule to support the construc-
tion/startup schedule.
Information Systems
Correct information will not necessarily
reduce project duration, but erroneous or late
information can certainly delay a project and
create serious difficulties. Critical project deci-
sions can be made only when the information
supporting the decision is accurate and timely.
It is imperative that an efficient, effective pro-
ject information system be established. It is
highly unlikely that a large, complex project
could be completed successfully without a com-
prehensive management information system.
The computer software and hardware avail-
able today can dramatically assist a project
team. The hardware and sof tware cos ts ,
although reasonable, are not the only costs
incurred in the establishment of an information
system. The time for training, data entry, and
analysis is a hidden cost (sometimes more than
ten times the software cost). These costs must
be evaluated for effectiveness. Software today
is becoming increasingly more useful to man-
agers. Early software produced only reams of
data, which required processing to produce
useful information; current project software
produces meaningful information that can be
used directly in the decision-making process.
Today, data processing programs are gener-
ally used to manage by exception. The expecta-
tions of managers at each level are classified as
budgets, schedules, or other standards of per-
formance. The computer is used to compare
volumes of data to these standards and identify
significant variations from expected results.
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The variances provide evidence of problems
requiring management attention. The process
can be applied to most standard project objec-
tives, which include quality, time, cost, safety,
and other critical matters.
With further advances in computer-based
information systems, the construction industry
will be positioned to perform projects more
effectively and efficiently.
Table 2 Roles and Responsibility Matrix-Definition Planning Stage
26R RESPONSIBLE for making the function or decision happen. Accountability and initiative are here.
A must APPROVE, including the obligation to penetrate, question, understand and concur.
C must be CONSULTED by R prior to decision.
I must be INFORMED of decision by the R person.
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Chapter 6 Team Dynamics
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Project Culture
To understand how to use human factors
and fulfill capabilities, one must understand the
unique culture of a project and how it differs
from many other organizations. Culture, the
total array of internal values at work, is the
sum of the practices that get the job done.
Table 3 shows a comparison of construction
culture.
Objectives. In most organizations, the cen-
tral values are fairly clear and subscribed to by
most members, particularly by the key players.Even in conflict, the objectives are often made
clearer. Most relationships are, therefore, advo-
cacy-centered or win-win driven.
On construction projects, the participating
companies may share the immediate objectives
to complete the project safely, cost-effectively,
and on schedule. Broader organizational objec-
tives are different and often conflicting.
Engineering firms may be devoted primarily to
their professional performance, reputation, and
defenses against penalties of legal liabilities.Constructors are concerned about profit mar-
gins, safety, add-on work, risks, contract obli-
gations, and others. The concerns of the owner
may include cost, schedule, or the process;
within the owner organization, priorities may
conflict. The project is a perfect medium for
competing objectives and adversarial relation-
ships.
Rewards. Systems of rewards in other orga-
nizations are based on adhering to the objec-
tives of the organization and are paid in cash,
and in kind. The latter denotes a longer-term
payoff that perpetuates an extended view and
encourages conformity.
Several primary groups are involved in the
construction process; each has its own system
of rewards. One company may be on a growth
curve and wish to obtain follow-up business as
a primary reward. Another may be in a cash-
flow bind and require of the owner immediate
payback. The reward system may be geared to
another corporate need.
The profit motive theoretically presses all
participants to operate at their optimum level.
In this regard, the construction project can be
the arena for competitive groups that are all
fighting to optimize performance, sometimes at
the expense of other participants. Rewards
have the potential to be a major cause of dis-
ruptive conflicts.
The systems of rewards for those who design
and build projects have been described as being
divided between the immediacy of the project
and the same distant payoffs their counterparts
in other industries enjoy. More emphasis, how-
ever, is placed on shorter term results in con-
struction, and the reward system is heavily
skewed in that direction. The motivation to
obtain rewards on a construction project may
produce even greater potential for conflicting
issues.
Life Expectancy. Most organizations aredesigned to have a life of infinite duration,
requiring a process of continuity and stability
that causes the organization to build-in objec-
tives, plans, actions, and controls in order to
bridge the future.
A major construction project has an average
life span of between two to five years; 26
months is a more common duration. The short-
term nature of the project requires a rapid
assembly of all resources necessary to complete
the job. Everyone is constantly aware that thesituation is absolutely temporary and will end
in the not too distant future. The closest com-
parison to an organization of this type is a mili-
tary task force.
Key Players. In other organizations, key
players are captive to the parent organization
where demands of loyalty, fealty, and obedi-
ence to rituals of the bureaucracy are required.
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Table 3 Comparison of Construction Culture
Objectives
Construction Other
1. Many companies: varied objectives. 1. Tends to be centralized, homogeneous, top-
2. May be schedule, profit, cost, safety, profes- down driven.
sional credo or liability, long or short. 2. Differences are reconciled by single authority.
3. May be conflicting-adversaries. 3. Clear, non-conflicting and controlled.
Rewards 1. Different rewards, depending on organization. 1. Tied to objectives.
2. More short-terms.2. Paid in cash and career path payoff.
3. May be conflicting; see objectives. 3. Collective incentives.
4. More uncertainty. 4. Many performance measures.
Life Expectancy 1. Short-term from beginning to end. 1. Infinite duration.
2. Very little continuity, learning as a team. 2. Stable, predictable.
3. Accelerated mobilization, organization, tem- 3. Continuity, long-term corrections of prob-
porary values and philosophy. lems.
Key Players 1. Loyal to diverse organizations, thus divided 1. Captive to parent organization.
as a team. 2. Trained and conditioned to play company
2. Chosen on availability and technical exper- game.
tise. 3. Vision on company objectives, rewards,3. View may be on short-term project objectives long-term progress.
and conflicting.
Structure/
Linkage
1. Organization structures are complex and 1. Chart of organization establishes clearer lines
often conflicting. of authority.
2. Networks are extensive. 2. Lines of power clear.
3. Varied and complex linkages among organi- 3. Fewer networks.
zations.
Systems/Procedures 1. Formulated from several sources; may be
conflicting or duplicating.
2. Systems may be incompatible.
3. Controls may differ widely.
1. Formulated from single sources.
2. Integrated and reinforcing.
3. Administered by stable support staffs.
28Time and Space 1. Time-driven schedules.
2. High risk environment.
3. Tentative special relationships.
1. End-date driven; pressure less.
2. Probability of lower risk environment.
3. More certainty and stability in special alloca-
tions and usages.
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Some promise also exists that a contributing
member of a successful organization will be
rewarded with more responsibility, longevity,
and higher position. In construction projects,
several organizations are represented; the loyal-
ties of the teams go back to their parent organi-
zations. Thus, team loyalties are divided and
often conflicting.
Hopefully, the Owners Project Manager
will be chosen on the basis of expertise in
directing construction projects. The OPM must
be acceptable to the Pro jec t Execut ive, whomust have sufficient influence in the owner
organization to support the efforts of the
Owners Project Manager.
The designer basically has the same deci-
sions to make as the constructor in selecting a
project manager. If a construction manager is
required, a similar process is followed. Little
control is exercised across organizational lines,
unless the owner insists on selecting partici-
pants. In the final analysis, the key players on
project teams usually are chosen by their ownproject sponsors. The decisions are based on
the needs of the separate organizations.
Structure and Linkage. Organizational life
usually means parceling out responsibility,
authority, and accountability. These routine
delegations become a flow of lines and blocks,
which are known as organizati
top related