introduction to construction planning and management
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UNIT 1-INTRODUCTION
•
Objectives and functions of project management• Project Feasibility Reports
• Planning for construction projects
• Cost control in construction – importance, objectives of cost control, cost controlsystems
Namesh Killemsetty ̂ Construction Planning and Management : Introduction ̂ Sem 6 (2014) ,Civil @ OPJIT
Introduction to Construction Planning and Management
CONSTRUCTION PLANNING AND MANAGEMENT
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What is a Project
In order to understand project management, one must begin with thedefinition of a project.
A project can be considered to be any series of activities and tasks that :
• Have a specific objective to be completed within certain
specifications
• Have defined start and end dates
• Have funding limits (if applicable)
• Consume human and nonhuman resources (i.e., money, people,equipment)
• Are multifunctional (i.e., cut across several functional lines)
Namesh Killemsetty ̂ Construction Planning and Management : Introduction ̂ Sem 6 (2014) ,Civil @ OPJIT
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Namesh Killemsetty ̂ Construction Planning and Management : Introduction ̂ Sem 6 (2014) ,Civil @ OPJIT3
OR
‘‘a temporary endeavor undertaken to create a unique
product, service, or result’’
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Successful project management can then be defined ashaving achieved the project objectives:
• Within Time
• Within Cost
• At the desired performance/Technology level
• While utilizing the assigned resources effectively and efficiently
• Accepted by the customer
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Classical project management is usually considered to have five
functions or principles:
● Planning
● Organizing
● Staffing
● Controlling
● Directing
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1. Planning
– Where the organization wants to be in the future and how to get there.
2. Organizing
– Follows planning and reflects how the organization tries to accomplish the
plan. – Involves the assignment of tasks, grouping of tasks into departments, and
allocation of resources.
Namesh Killemsetty ̂ Construction Planning and Management : Introduction ̂ Sem 6 (2014) ,Civil @ OPJIT
Introduction to Construction Planning and Management
3. Staffing
- Locating, placing, training, promoting personnel
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4. Controlling
– Monitoring employees' activities, determining if the organization is ontarget toward its goals, and making corrections as necessary
5. Directing
– Giving orders and instructions to the employees and ensuring the
correct progress to attain the goal
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PROJECT FEASIBILITY REPORTS
• A feasibility study is an analysis of the viability of an idea
through
a disciplined and documented process of thinking through the idea from itslogical beginning to its logical end.
• A feasibility study provides an Investigating function that helps answer“Should we proceed with the proposed project idea? Is it a viable
project?” • A feasibility study should be conducted to determine the viability of an
idea BEFORE proceeding with the development of a project.
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Why do a feasibility study??
• Provide a thorough examination of all issues and assessment ofprobability of business success
• Give focus to the project and outline alternatives
• Identify reasons NOT to proceed
• Enhance the probability of success by addressing and mitigating factorsearly on that could affect the project
• Provide quality information for decision making
• Help in securing funding from lending institutions and other monetarysources
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Feasibility Report Outline
1) Description of the Process:
• Identification and exploration of business scenarios.
• Define the project and alternative scenarios.
• Relationship to the surrounding geographical area.
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Feasibility Study Outline
2) Market Feasibility
• Industry description.
• Industry competitiveness.
• Market potential
• Access to market outlets.
• Sales projection
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Feasibility Study Outline
3) Technical Feasibility
• Determine facility needs.
• Suitability of production technology.
• Availability and suitable of site.
• Raw materials.
• Other inputs.
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Feasibility Study Outline
4) Financial/Economic Feasibility
• Estimate the total capital requirements.
• Estimate equity and credit needs.
• Budget expected costs and returns.
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Feasibility Study Outline
5) Organizational/Managerial Feasibility
• Business Structure
• Business Founders
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Planning for Construction projects
• Construction projects vary so much that each project must beplanned individually
• Planning is accomplished by• Establishing goals
• Determining what must be done to achieve the goals• Effective use of resources
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Introduction to Construction Planning and Management
I d i C i l i d
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Construction resources
• Money
• Manpower• Skilled and unskilled workers• Technical and Managerial Personnel
• Machines
• Facilities
• Materials
• Information/technology
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Introduction to Construction Planning and Management
I d i C i Pl i d M
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Stages of a construction project
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Project initiation
● Selection of the best project givenresource limits
● Recognizing the benefits of the project
● Preparation of the documents to sanctionthe project
● Assigning of the project manager
Project planning
● Definition of the work requirements
● Definition of the quality and quantity ofwork
● Definition of the resources needed
● Scheduling the activities
● Evaluation of the various risks
Project execution
● Negotiating for the project teammembers
● Directing and managing the work● Working with the team members tohelp them improve
Project monitoring and control
● Tracking progress
● Comparing actual outcome topredicted outcome
● Analyzing variances and impacts
● Making adjustments
Project commissioning
● Verifying that all of the work has beenaccomplished
● Contractual closure of the contract
● Financial closure of the charge numbers
● Administrative closure of the paper work
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Introduction to Construction Planning and Management
I t d ti t C t ti Pl i d M t
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Stages of Planning
Planning for construction may be done in two stages:
1. Pre tender stage
2. Contract Stage
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Introduction to Construction Planning and Management
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Pre Tender Planning
• Examining drawings and specifications to identify various items of
work.
•Carrying out site investigation and market survey
• Identifying alternative methods of executing the work and the time
required for completion.
• Estimating the quantities of different items of work and time
required.
• Preparing a tentative construction schedule.
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Namesh Killemsetty ̂ Construction Planning and Management : Introduction ̂ Sem 6 (2014) ,Civil @ OPJIT
Introduction to Construction Planning and Management
I t d ti t C t ti Pl i d M t
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Contract Stage Planning
• Establishing a good communication system between
members of the construction team.
• Evaluating alternative construction methods to select the
most economical and efficient method.
• Studying inter-relationships of various items of work and
finalization of proper sequence.
• Calculating the phased requirement of construction
materials.
•
Preparing details of management requirement. 20
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Introduction to Construction Planning and Management
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COST CONTROL INCONSTRUCTION
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What is Cost Control?
•Techniques for “protecting” the cost plan.
•Generic term embracing all methods of controlling
the cost of a building throughout its various stages
from inception to completion.
•Process of cost checking required the estimatedcost of each element to be checked against the
target set in the cost plan.
Namesh Killemsetty ̂ Construction Planning and Management : Introduction ̂ Sem 6 (2014) ,Civil @ OPJIT
Introduction to Construction Planning and Management
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•Cost planning and cost control is not only todetermine the probable cost of a building but to
control the design development throughout theproject, and to provide the client with value for
money.
•Cost control is very necessary at today’s market
because:-
• resources such as land and materials becoming scarce andexpensive.
• modern buildings becoming more complex,• fluctuation in labour and material cost etc.
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Namesh Killemsetty ̂ Construction Planning and Management : Introduction ̂ Sem 6 (2014) ,Civil @ OPJIT
Introduction to Construction Planning and Management
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Objectives of cost control
•To determine the probable cost of a project
development.
•To provide a yardstick to control the design of the
development throughout the project.
•To provide the client with value for money
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Introduction to Construction Planning and Management
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Cost control systems
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h ill i l i d d i ( ) i il @
Introduction to Construction Planning and Management
S/No. COST CONTROL TECHNIQUES REMARKS
1 WORK PROGRAMMES Schedules to monitor progress and financial
performance
2 INSPECTION OF WORKS Inspection of works and comparison made with the
budget
3 PROJECT BUDGETS Cost attached to responsibility centers with worktargets to be accomplished.
4 SITE MEETINGS Meetings held to review the progress of work and
compare to the monetary allocations
5 RECORD KEEPING Documentation of activities carried out to enable
early detection of deviations
6 MONITORING WORK AND
COST PERFORMANCES
Monitor schedules, budgets, inspection and
feedbacks to keep watch on cost performance.
7 EVALUATION OF WORKS
CARRIED OUT
Quantification of works and comparing with the
costs in the bill of quantities.