Project Management in the Construction Industry

Saleh Mubarak, PhD, is an independent consultant in the field of construction project management based in Tampa, Florida, focusing on training, writing, public speaking, and consulting. He is a former professor at a number of universities, an adjunct professor at the University of South Florida, and an active member of AACE International. He served on the PMI committee that created the first professional scheduler certification exam, PSP. He has more than 34 years of diversified and international experience including academia and industry.

Special Request xvii

Introduction xix

About the Companion Website xxi

1 Introduction to Construction Project Management 1

Introduction 1

Basic Definitions 2

Why and How Projects Are Initiated 6

Project Lifecycle 7

Project Management 8

The Construction Industry 10

Professional Organizations Related to the Construction Industry 13

Project Manager’s Qualifications 15

Project Manager’s Team 17

The Project Management Office, PMO 18

Training, Continuing Education, and Certification 19

Project Participants and Stakeholders 21

Exercises 23

2 Architecture, Engineering, and Construction 25

Introduction 25

Designers and Field Operations 30

Exercises 31

3 Contracts and Contracting 33

Introduction 33

What is a Contract? 33

Types of Contracting Approaches (Procuring Contractors) 34

Bid Documents 36

To Bid or Not to Bid? 40

Contract Ethics 53

Exercises 54

4 The Planning Phase 57

Introduction 57

The Project Management Plan 58

Planning for Different Project Parties 59

Planning for a Project Owner 59

Planning for a Contractor 61

How Far Does the Contractor’s Planning Go? 61

The Relationship Between the Owner, the Designer, and the Contractor 65

Exercises 69

5 Scope Management 71

Introduction 71

Scope Management 71

Exercises 80

6 Project Budgeting/Cost Management 83

Introduction 83

Cost Definitions 84

Types of Cost Estimates from Accuracy Perspective 87

The CSI MasterFormat 93

The CSI UniFormat 94

Direct versus Indirect Costs 95

Labor Cost 95

Equipment Cost 96

Materials Cost 97

Sales Taxes 105

Profit 105

Contingency Allowance 107

Sources of Cost Estimating Databases 109

Bonds and Insurance 110

Performance Bond 111

Payment Bond 112

Insurance 113

Bonds versus Insurance 115

Inflation/Escalation Allowance 116

Crew Productivity 117

Adjusting Estimates 118

Putting the Estimate Together 119

Cost Estimating Software Programs 120

Repricing Estimates 120

Exercises 122

7 Time Management 127

Introduction 127

Basic Definitions 127

History of Scheduling 128

Bar Charts 129

Logic Networks 131

The Creation of the Project Schedule 133

The Critical Path Method 142

Exercises 179

8 Project Controls 185

Introduction 185

The Baselines 185

Schedule Updating 186

Repercussions of Wrong/Inaccurate Remaining Duration 189

Project Control 191

Discussion on Measuring Work Progress and Percent Complete 199

Earned Value Management, EVM 199

Control Level 203

Exercises 204

9 Risk Management 209

Introduction 209

What is a Risk? 209

Risk Management 210

The Risk Management Plan 210

The Risk Register 211

Conclusion 219

Exercises 219

10 Managing the Contractor’s Cash Flow 223

Introduction 223

What is Cash Flow? 223

11 Project Quality Management 241

Introduction 241

What is Quality? 241

Total Quality Management (TQM) 243

Elements of Quality Management in Construction 245

Quality Assurance versus Quality Assurance 245

Who Sets Quality Standards? 246

Kaizen (Continuous Improvement) 248

Lean Construction 249

Quality Records 252

Review of Shop Drawings 252

Cost of Quality 255

Is Quality Expensive? 256

Quality Improvement 258

Quality Management and Project Success 259

Exercises 259

12 Project Health, Safety, and the Environment (HSE) Management 261

Introduction 261

Definitions 261

Safety 262

Project HSE Management 264

Safety is Everyone’s Responsibility 265

Preparing a Safety (or HSE) Management Plan 270

Cost of Safety Violations and Accidents 271

Environmental Preservation 272

Site Planning and Security 274

Exercises 276

13 Project Claims and Other Dispute Management 279

Introduction 279

Claims 279

Conclusion 290

Exercises 290

14 Project Completion, Close-Out, and Beyond 293

Introduction 293

The Termination of the Construction Project 293

The Transition Back to the Main (Home) Office 295

Crew Productivity 297

Project Success 302

Exercises 307

15 Project Administration and Corporate Management 311

Introduction 311

What does Project Administration Cover? 311

The Main Office and Projects Management 313

Multi-Project Management 314

Managing the Starting and Closing of Projects 315

Main Office and Regional Offices 317

Exercises 317

16 Soft Skills for Construction Project Management 321

Introduction 321

What are Soft Skills? 322

Time Management 324

Change Management 329

Leadership and Teambuilding 337

Conflict Management 342

Emotional Intelligence 347

Professionalism and Ethics 352

Exercises 356

17 Construction in the International Environment 361

Introduction 361

English is not English! 364

The “Background Paradigm” Syndrome 367

After the Completion of the Project 368

Exercises 368

18 Construction and Evolving Technology 371

Introduction 371

How Technology Impacted Projects’ Design and Construction 372

Risk and Cost of Technology 375

Exercises 389

19 Management of Remodeling, Renovation, Restoration, Expansion, and Demolition Projects 391

Introduction 391

The General Challenges in These Projects 392

Demolition 392

Remodeling, Renovation, and Restoration Projects 395

Expansion and Retrofitting 397

Construction in Disaster Areas 397

Specialty Construction: 399

Exercises 399

20 Real Estate Development 401

Introduction 401

Why Real Estate Development? 401

The Business Side of Real Estate Development 402

Who is Involved in Real Estate Development? 402

Phases of Real Estate Development 403

Exercises 405

21 Construction Management from Owner/Client Perspective 407

Introduction 407

Project Cost to an Owner 407

Planning and the Decision-Making Process 410

The Owner’s Organization – PMO’s 410

Public Projects 411

Choosing the Contract Type and Delivery Method 412

Requiring and Approving a CPM Schedule 413

The Owner’s Involvement During the Design and Construction Processes 413

General Recommendations for the Owner: 419

Exercises 420

Index 423