PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

PROJECT MANAGEMENT OFFICE (PMO)
SETTING UP AND MANAGEMENT
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Project Management
General Review

What is Project Management
• Project Management is the application of skills,
knowledge, tools and techniques to meet the
needs and expectations of stakeholders for a
project.
• The purpose of project management is prediction and prevention, NOT
recognition and reaction

Triple Contraint
Quality
Scope
Time
Cost

Triple Contraint
• Increased Scope = increased time + increased cost
• Tight Time = increased costs + reduced scope
• Tight Budget = increased time + reduced scope.

NATURE OF THE
CONSTRUCTION INDUSTRY
Like Manufacturing industry – Involves the production of a
physical product
Like Service industry – Does not accumulate large amount of
capital
– Many small businesses
Success or failure is highly dependent on the qualities of the people
rather than
Technologies protected by patent
or
Availability of capital facilities

CONSTRUCTION INDUSTRY IS
HIGHLY INCENTIVE ORIENTED
• Advances tend to develop from
innovations or “better ideas”
• Cannot be protected by laws of
secrecy or patents
• Ideas disseminate quickly
• Benefit Competitors
• Lack incentive for investment for R&D

Owner wants to achieve best value for their
investment
Contractors desire to bid low enough to win but
high enough to realize profit on investment
Workers hope to achieve better living standards
and working conditions
INTEREST GROUPS

Owner wants to achieve best value for their
investment
Contractors desire to bid low enough to win but
high enough to realize profit on investment
Workers hope to achieve better living standards
and working conditions
Architect and Engineers are not directly
associated with the above groups
Professional achievement more attractive
INTEREST GROUPS

• Know Your Scope of Works
• Understand Your Contractual
Obligations
• Plan Activities in Detail
• Resolve Problems Quickly
• Manage Subcontractors
• Manage Cash Flow
Project Management

Introduction
• The PMBOK is an inclusive term that describes the sum of
knowledge
• within the profession of project management
• PMBOK is applied and advanced by both practitioners and
academics
• PMBOK can be and is being used for projects in various fields of
professions
• including Software engineering
PMP As Construction Management Methodology

The Project Management Context
•Project Phases and Project Life Cycle
• Each project is unique enterprise
• Phases can involve a degree of uncertainty
• Each project phase is marked by completion of one or more deliverables
• A deliverable is a tangible, verifiable work product
• The project life cycle serves to define the beginning and the end of a project
•Project Stakeholders
• Are individuals and organizations who are actively involved in the project,
• Whose interests can have positive or negative influence on project execution
and project completion.
(Project manager, Customer, Performing organization, Sponsor)

Project Life Cycle
Initiation Phase Definition Phase Planning Phase
Implementation
Phase
Deployment
Phase
Closing Phase

Initiation Phase
• Define the need
• Return on Investment Analysis
• Make or Buy Decision
• Budget Development

Definition Phase
• Determine goals, scope and project constraints
• Identify members and their roles
• Define communication channels, methods, frequency and content
• Risk management planning

Planning Phase
• Resource Planning
• Work Breakdown Structure
• Project Schedule Development
• Quality Assurance Plan

Work Breakdown Structure
• For defining and organizing the total scope
of a project
• First two levels - define a set of planned
outcomes that collectively and exclusively
represent 100% of the project scope.
• Subsequent levels - represent 100% of the
scope of their parent node

Implementation Phase
• Execute project plan and accomplish project goals
• Training Plan
• System Build
• Quality Assurance

Deployment Phase
• User Training
• Production Review
• Start Using

Closing Phase
• Contractual Closeout
• Post Production Transition
• Lessons Learned

The Project Management Processes (I)
• Process Groups:
• Initiating processes – recognize when project or phase should begin
• Planning processes – designing and maintaining a scheme which leads to successful
accomplishment of a project
• Executing processes – coordinating people and resources to carry out the plan
• Controlling processes – monitoring and measuring progress and taking corrective actions
when necessary
• Closing processes – analyzing acceptance of the project or phase and bringing it to an end
Links between process groups =>

The Project Management Knowledge
Areas
• Project Integration Management
• Ensure that various elements of the project are properly coordinated and integrated
• Processes: Project Plan Development, Project Plan Execution, Overall Change Control
• Project Scope Management
• Ensure that the project includes all the work required,
• And only work required, to complete the project successfully
• Processes: Initiation, Scope Planning, Scope Definition,
Scope Verification, Scope Change Control
• Project Time Management
• Ensure timely completion of the project
• Processes: Activity Definition, Activity Sequencing,
Activity Duration Estimating, Schedule Development, Schedule Control
23/15© www.asia-masters.com

• Project Cost Management
• Ensure that the project is complete within the approved budget
• Processes: Resource Planning,
Cost Estimating, Cost Budgeting, Cost Control
• Project Quality Management
• Ensure that the project will satisfy the requirements
• Processes: Quality Planning, Quality Assurance,
Quality Control
Areas (I)

Areas (II)
• Project Communication Management
• Ensure timely and appropriate generation, collection, storage
• And ultimate disposition of project information
• Processes:
Communications Planning,Information Distribution,
Performance Reporting, Administrative Closure
• Project Risk Management
• Concerned with identifying, analyzing, and responding to project risk.
• Maximizing the results of positive events
• Minimizing the consequences of negative events
• Processes: Risk Identification, Risk Quantification,
Risk Response Development, Risk Response Control
12.05.2009. PMBOK 25/15

Areas (II)
• Project Procurement Management
• Acquire goods and services from outside the performing organization
• Processes: Procurement Planning, Solicitation Planning, Solicitation,
Source Selection, Contract Administration, Contract Close-out
• Project Human Resources Management
• Make the most effective use of people involved with the project
• Processes: Organizational Planning,
Staff Acquisition, Team Development

• Finally, project managers who are familiar with PMBOK can
custom tailor their project management process to best fit their
company's needs.
Old saying:
“To break the rules, first you have to know the rules. ”
• In the long run, this means that companies will have less of a
reason to outsource when projects require special treatment.

– Project Management services for all project phases should be
provided through well established procedures/processes
– Project Management activities span the life of projects beginning
with the conceptual design phase and ending with the defects
liability and occupancy phase
I. Introduction

PlanPlan
Monitor &
Control
Monitor &
Control
Close OutClose Out
ImplementImplement
Project Management Approach
InitiateInitiate

Major Stakeholders
Major
Stakeholders
Funding Agencies
Authorities
Design
ConsultantsSpecialized
Consultants
Construction
Contractors
Facility
Manager
Client
Supervision
Consultants
End Users
Operators
Project Manager

Client
Project
Manager
Consultant
Quantity
Surveyor (CQS)
Supervision
Consultants
Contractors
Design Consultants
Funding AgenciesAuthorities
Expert
Consultants
Operators/End UsersFacility Manager
Communication Chart

ma
e
Engineer
Technical
Te
d
Construction
Manager
Packag
ct Control Bo
a
r
ect Director
Consultants’ Local
Office
Proje
oj
E
Engineer
Pr
st
Controllers
IT Specialist
Plann ng
Engineers
Administrative Support
HS C
Engineer
Document
Controllers
Co
E
Manager
Technica
Manager
Project
Controls
Manage
r
Contract
Administrator
QA/Q
C
Manager
Contracts
Manager
HS
t Manager
QA/Q
Client
Head Office SupportHead Office Support
ProjecProject Manager
QA/QC
Manager
Contracts
Manager
HSE
Manager
Technicall
Manager
Project
Controls
Manager
Contract
Administrator
QA/QC
Engineer
Document
Controllers
Cost
Controllers
IT Specialist
Plannini g
Engineers
Administrative Support
Project Manager’s Organisation Chart
HSE
Engineer
Project Director
Consultants’ Local
Office
Project Control Board
Construction
Manager
Package
Engineer
Technical
Team

Warehouse
Dept.
Services
Dept.
Admin.
Dept.
Accountant
Cashie
r
nt Manager
Surveyor
Manager
Site
Surveyor(s)
Project Area 2
Manager
Materia
Eng
l
ineer(s)
Tech
n
ci ian(s)
Financia
Manager
Documen
tEngineer
Planning
Engineer
Site
Engineer(s)
meC Engineer ProcureQQA/
& Doc
Manager
Tech
n
ci ian(s)
Contractor’s
Representative
Subcontractors
Subcontractors Project Area 1
Manager
Project Area 1
Manager
Contracting
Manager
Contracting
Manager
A .d min & Logistics
Manager
Admin. & Logistics
Manager
lP ann
i
ng
Planning & Doc
Manager
Technician(s)
Contractor’s Organisation Chart
QA/QC Engineer Procurement Manager
Surveyor
Manager
Site
Surveyor(s)
Project Area 2
Manager
Material
Engineer(s)
Technician(s)
l
Financial
Manager
Document
Engineer
Planning
Engineer
Site
Engineer(s)
Warehouse
Dept.
Services
Dept.
Admin.
Dept.
Accountant
Cashier

PM scope can cover:
Project Initiation & Studies
Period
Design Period
Tender & Contracting Period
Construction Period
Defects Liability Period

Manage the Construction

LIFE CYCLE Construction
Management
Seven Phases
Concept and Feasibility Studies
Preliminary Engineering and Design
Detailed Engineering and Design
Procurement
Construction
Start-up and Implementation
Operation or Utilization

1. Concept and Feasibility Studies
Forecast Future Demand
Location
Availability of Resources
Accessibility to transportation
Political and Institutional Factors
Sociological and Economic Impact on
Community
Environmental Impact
Overall Technical and Economic
Feasibility

2. Preliminary Engineering and Design
Architectural concepts
Evaluation of technological process alternatives
Size and capacity of facility
Comparative economic studies
Reviews by regulatory bodies for compliance
Zoning regulations
Building codes
Licensing procedures
Safety standards
Environmental impact
Public Hearing
Funding cycles in Legislative and Executive Bodies

3. Detailed Engineering and Design
Design of Architectural Elements
Design of Structural Elements
Site Investigation
Foundation Design
Electrical and Mechanical Design
Preparation of Specifications and Drawings
Preparation of Contract Documents

3. Detailed Engineering and Design
Design of Architectural Elements
Design of Structural Elements
Site Investigation
Foundation Design
Electrical and Mechanical Design
Preparation of Specifications and Drawings
Preparation of Contract Documents
Field Construction Methods
Cost Knowledge

4. Procurement
Services
Equipment
Materials

Services
Equipment
Materials
Lump Sum Contract
Cost Plus Fee Contract
Negotiated Contract
4. Procurement

5. Construction
Process whereby the Designer’s Plans and
Specifications are converted into Physical
Structures and Facilities
Co-ordination of all resources to
complete the project
On Schedule
Within Budget
According to Specified Standard of Quality
and Performance

6. Start-up and
Implementation
Testing of Components
Warranty Period

7. Operation and
Utilization
Regular Maintenance of
Facilities

Architect
Interior Designer
Landscape Architect
Civil Engineer
Environmental Engineer
Electrical Engineer
Mechanical Engineer
Chemical Engineer
Geologist
Environmental Scientist
Economist
DESIGN TEAM

General Contractor
Land Surveyor
Formwork Carpenters
Steel Fabricators
Concreters
Bricklayers
Plant and Equipment Operators
Specialist subcontractors
Suppliers
CONSTRUCTION TEAM

Construction Contracts
American Institute of Architects
Documents
A101 Standard Form of Agreement between Owner
and Contractor – Stipulated Sum
A111 Standard Form of Agreement between Owner
and Contractor – Cost of the Work Plus a Fee
A201 General Conditions of the Contract for Construction
B141 Standard form of Agreement between Owner
and Architect
A132 Performance Bond and Payment Bond

Elements of a Construction Contract
ARTICLES
Contract Documents
Architect
Owner
Contractor
Subcontractors
Work by Owner or by Separate Contractors
Time of Completion and Extension of Time
Progress and Final Payments
Substantial Completion
Insurance
Changes in the Work
Uncovering and Correction of Work
Termination of Contract

ORGANIZATIONAL RELATIONSHIPS
Architech/Engineer Owner
General Contractor

General Contractor
Subcontractor Subcontractor Subcontractor

General Contractor
2nd Tier Subcontractor
3rd Tier Subcontractor

General Contractor
Supplier

Specialists General Contractor
Supplier

Specialists Construction Manager
Supplier

Specialists Construction Manager
General Contractor
Supplier

Owner
Architech/Engineer Design Builder
Specialists
Supplier

Specialists
Supplier

Beneficiary Owner Performance Bond
Principal General Contractor Surety
Supplier

Beneficiary Owner Payment Bond
Principal General Contractor Surety
Beneficiary
Supplier

INSURANCE
Requirements under AIA
A201Contract Documents
Contractor’s Liability Insurance
Owner’s Liability Insurance
Property Insurance
Loss of Use Insurance
Workmen Compensation
Disability Benefits

OWNERS RESPONSIBILITY
Make Financial Arrangements to fulfill his
obligations
Furnish Accurate Contract Specifications and
Drawings for the Contractor’s work
Right to Stop Work
Right to Change Work
Right to Terminate Contract if Contractor
Defaults

Architect’s Responsibility
Architect is the Owner’s Representative
Architect is the Administrator of the Contract
Visit site at appropriate stages of construction to
familiarize himself generally with the progress and
quality of the Work and to determine whether Work is
proceeding in accordance with Contract Documents.
Advice the Owner on Work Progress
Guard the Owner against Defects and Deficiencies in
the Work of the Contractor
Reviews Contractor’s Claims and Approves Amount
to be paid to the Contractor
Architect is not responsible for Methods of
Construction or Site Safety

Contractor’s Responsibility
Review Contract documents for Errors and
Inconsistencies
Supervise and Co-ordinate all Construction
Work
Provide full time Superintendent on Site
Responsible for Site Safety
Indemnify the Owner against any Claims
by third parties

Handling Disputes
Contract is signed between Owner and Contractor
Architect acts as Interpreter of the Contract between Owner
and Contractor
Architect acts as Judge of the Performance of the Owner
and Contractor
All disputes between Owner and Contractor shall be decided
by Architect
Architect shall not show Partiality
Architect’s Decision on Artistic Effects is Final
Arbitration

II. Contract/Construction Management
Stage 1: CONSTRUCTION PERIOD
Stage 2: DEFECTS LIABILITY PERIOD (DLP)

Activity 1
Organization
and
Mobilization
• Insurance Policies
• Performance Security
• Advance Payment Guarantee
• Notice to Commence
• Communication Procedures
stage 1: construction period

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
• Monitoring Progress
• Evaluating Performance
• Project Management Software
• Logic Network (CPM)
• Short Construction Activities
• Shop Drawings and Materials Submissions
• Procurement Schedules
• Quantity, Duration, Cost, Manpower and
• Equipment
• Resources Schedules and Histograms
• Work Breakdown Structures (WBS)
• Subcontractors’ Schedules

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
• Verify Staked-Out Centerline, Traverse Points, Control Points and Bench Marks
• Adequacy of Borrow Pits and Quarries
• Planned Sources, Supply and Testing of Construction Materials

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
• Site Facilities Adequacy and Organization
• Layout Plan for all Temporary Site Facilities
• Check Site Accesses, Temporary Structures, Site Office, Accommodation, Laboratory,
Stocking Yards, Plant Facilities, Safety Measures, Service Roads, Parking Areas
• Sufficiency, Adaptability, Interconnectivity, Suitability, Organization, Quality,
Performance, Non-Interference with Permanent Works

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
• Clearly Formulated, Well-Documented Method Statement: Method of
Construction, Resources, Safety Precautions, Operation’s Duration
• Submission and Approval before Occurrence of Planned Early Start of
Activities

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 6
Time Control
• Monitor Program, Construction Activities, Resources
• Update and Revise Program
• Periodic Co-Ordination Meetings
• Timely Shop Drawings and Samples Submission
• Schedules of Materials and Shop Drawings Submissions
and Approvals tied to Program
• Monitor Labor and Plant Productivity, Materials
Deliveries (Long-Lead Items), Identify Shortages
• Labor, Plant or Materials Deficiencies
• Identify Potential Variance: Scheduled v/s Actual Progress

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 6
Time Control
Activity 7
Cost Control
• Interim Payments
• Cash-Flow Estimate
• Implement Variation Orders
• Control & Monitor Quantities and Variation Orders
w.r.t. Contract Price

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
• Project Quality Assurance/Quality Control Plan
• Compliance with Safety and Environment Protection
• Review and Approval of Materials and Shop Drawings
• Inspection of Operations
• Inspection and Testing of Materials and Plant

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
• Inspection of Work before Covering-Up
• “As-Built” Drawings and “Operation and Maintenance Manuals”
• List of Outstanding Works prior to Taking-Over
• Completion of Outstanding Works and Performance during Defects Liability Period

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
Activity 9
Site Meetings &
Record Keeping
• Daily Record of Progress of Works
• Kick-off Site Meeting: Procedures, Means of Communication, Methods for giving Approvals,
Instructions, Variation Orders, etc.
• Regular Site Meetings: Monitor Performance and Progress based on Program, Discuss Problems,
Coordination Issues, etc.

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
Activity 9
Site Meetings
and Record
Keeping
• Daily Diary
• Maintain Up-To-Date Information Relevant to Progress, Performance, Quality, Quantities,
Resources & Cost
• Maintain Project Records in Classified and Retrievable Form

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 10
Monthly
Progress
Reports
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
Activity 9
Site Meetings
& Record
Keeping
• Executive Summary
• Section One: General Information
• Section Two: Progress Outline
• Section Three: Schedules
• Section Four: Resource Control

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 10
Monthly
Progress
Reports
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
Activity 9
Site Meetings
and Record
Keeping
• Section Five: Cost Control
• Section Six: Quality Control
• Section Seven: Contract Records
• Section Eight: Progress Photographs

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 10
Monthly
Progress
Reports
Activity 11
Claims and
Disputes
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
Activity 9
Site Meetings
& Record
Keeping
• Identify Potential Claims
• Settle Disputes or Differences

Activity 1
Organization
and
Mobilization
Activity 2
Planning
and Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 10
Monthly
Progress
Reports
Activity 11
Claims and
Disputes
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
Activity 9
Site Meetings
& Record
Keeping
• Implementation of Methods and
Procedures to Minimize the Potential
Financial and Time Impact of Claims
• Settlement of time/cost claims

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 10
Monthly
Progress
Reports
Activity 11
Claims and
Disputes
Activity 12
Completion of
Works /
Taking-Over
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality Control
Activity 9
Site Meetings
& Record
Keeping
• Establish schedule for Testing and Commissioning
• Witness Tests
• Prepare List of Outstanding Works
• Obtain Written Undertaking to Complete any Outstanding Work during DLP

Activity 1
Organization
and
Mobilization
Activity 2
Planning and
Program
Activity 3
Survey Check
and Material
Information
Activity 4
Plan for Site
Organization
Activity 5
Construction
Methods
Activity 10
Monthly
Progress
Reports
Activity 11
Claims and
Disputes
Activity 12
Completion of
Works /
Taking-Over
Activity 6
Time Control
Activity 7
Cost Control
Activity 8
Quality
Control
Activity 9
Site Meetings
& Record
Keeping
• Issue Taking-Over Certificate
• Check Progressively “As-built Drawings”
• Review “Operations and Maintenance Manuals”

Activity 13
Inspection of
Works
• Inspect and Verify that the Outstanding Works have been Satisfactorily Completed
• Remedy Detected Defects
• Final Taking-Over of Project at End of Defects Liability Period
stage 2: defects liability period

Activity 13
Inspection of
Works
Activity 14
Defects Liability
Certificate
• Issuance of Defects Liability Certificate

Activity 13
Inspection
of Works
Activity 14
Defects Liability
Certificate
Activity 15
Final Certificate
and Final Report
• Final Statement submittal after Issuance of Defects Liability Certificate
• Issuance of Final Certificate
• Final Report

III. PROJECT CONTROLS
Scope
- Continuous monitoring of actual project performance (Time, Cost,
Quality).
- Assessing performance and any needed corrective/preventive action.
- Maintaining accurate and updated information base through the project’s
cycle.

Project Controls Time & Cost
- Review time schedule/cash-flow estimate.
- Review material submittals/shop drawings schedules.
- Record delays and advise on recovery measures.

Project Controls
Time & Cost - BENEFITS
Project Controls of the project schedule will enable:
Baseline
– Identifying Project WBS and Baseline Schedule
– Identifying Critical Activities
– Resources Requirements
– Anticipated Cash Flow (S-Curve)
Progress and Update
– Measuring Progress/Performance
– Identifying delays and sources of delay (through further side analysis)
– Assessing the need for rescheduling and determining which activities need to be rescheduled
Changes
– Potential effect of Variation Orders
– Analyzing Contractors’ Claims for Extension of Time

PLANNING & SCHEDULING
-Critical Path Method (CPM)
-Critical Path Activities
-Logical Relationships
-Total Float (TF)
-Free Float (FF)
-Constraints
-Resources

REPORTS
Resources - Histograms

PLANNING & SCHEDULING
SCHEDULE COMPRESSION
• Shortening the Project Schedule duration without reducing the project scope which
might increase the project cost.
SCHEDULE UPDATE
• Starts with monitoring of the project activities, collecting key progress information
that would be translated into the following at the end of the reporting period (data
date, time now or as of date):
Actual Start of progressing/completed activities
Actual Finish for completed activities
% complete/remaining duration/expected completion date for progressing activities
The above information is entered into the Update Schedule and the schedule
calculation performed.
• The Updated Schedule is compared to the Baseline
Schedule The Critical Path may change.

Progress Monitoring & Control
Baseline Vs. Updated Schedule

ESSENTIAL FACTORS
Construction Contract Documents
to specify clearly the requirements
for the construction schedule:
– Category of Software (by name or of similar capabilities)
– Phasing
– Milestones
– WBS
– Interface with other construction projects
– Level of detail
– Short activities duration, quantities and cost (based on
BOQ), resources (labor and equipment)
– Activities to include submittal , approval and
procurement of materials
– Frequency of schedule update and reporting
– Type of reports to be submitted (Logic Network, Bar
Charts, Tabular, Labor Histograms per trade and total,
Equipment Histograms per equipment and total, Cost in
tabular, histogram and S-Curve formats, Earned Value)
– Calendar

Project Calendars
A calendar of working days or shifts that establishes those dates on which activities
are worked, and nonworking days.
Nonworking days include holidays.
A project can have a unique calendar or multi-calendars.
Example: Activity with duration of 18 working days.
ESSENTIAL FACTORS

Cost Control
• Review and process interim payments
applications
• Monitor quantities and variation
orders
• Monitor cash flow
• Evaluate change/variations impact
• Develop cost forecasts
• Calculate the earned value
• Develop, implement, update project
cost
• Monitor/Identify variances between
actual/budgeted costs

Report
Cost (Value)
Histogram and S – Curve

Earned Value
Specific technique for measuring performance of work based on activities’ costs
BCWS: Budgeted cost of work scheduled (Planned Value)
BCWP: Budgeted cost of work performed (Earned Value)
ACWP: Actual cost of work performed (Actual Cost)
Schedule Variance (SV) = BCWP – BCWS
Cost Variance (CV) = BCWP – ACWP
• Schedule Index (SI) = BCWP/BCWS
• Cost Index (CI) = BCWP/ACWP

Planned Value
Earned Value
CV
BCWS
ACWP
SV
BCWP
(BCWS)
(BCWP)
(ACWP)

Quality Control
Quality is controlled through the following:
- Timely inspections and testing of works, materials and production plants
- Review and monitoring of Health, Safety and Environment (HSE) plan
- Inspection of material sources and list of suppliers
- Review and Approval of Materials and Shop Drawings
- Review of As-Built drawings and O&M manuals
- Submittal of certificates of guarantee
- Involvement of third party for laboratory testing
- Snag lists implementation

Submittal for approval of materials - Form

QA/QC Auditing
• Oversee QA/QC implementation
• Oversee inspection/ testing process
• Issue periodic audit reports

Document Control
Document Control in construction projects is the management
of contract documents and the incoming and outgoing
correspondence and their attachments and their flow to the
members of the management team for action or information.
Parties involved are commonly:
- Client
- Funding Agency
- Consultant
- Contractor
- Authorities
- Stakeholders
- Other

Document Control
Develop/Implement/Maintain Document Control system
to cover:
- Contract Documents
- Correspondence/Minutes of Meetings
- Site Correspondence/Reports
- Drawings Logs
- Submittals

Document Control
Primavera Expedition
Global Report

Project Documentation
- A referencing system for all project documents is
necessary to achieve proper document control and archiving.
- Referencing system applies to all documents and
correspondences.

XXXXX 001-W 001 1 of 1
Zone No. or Building No.
Discipline (Water Supply)
Serial No. (001)
Project Number X of Y
Referencing System
Example of Drawings Numbering System

The End

PROJECT MANAGEMENT OFFICE (PMO) SETTING UP AND MANAGEMENT

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