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CCP_SEC5_ Project Management

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A CCP is an experienced practitioner with advanced knowledge and technical expertise to apply the broad principles and best practices of Total Cost Management (TCM) in the planning, execution and management of any organizational project or program. CCPs also demonstrate the ability to research and communicate aspects of TCM principles and practices to all levels of project or program stakeholders, both internally and externally.

Veröffentlicht in: Leadership & Management

CCP_SEC5_ Project Management

  1. 1. PPROJECTROJECT MMANAGEMENTANAGEMENT Hisham Haridy, PMP, PMI-RMP, PMI-SP CCP_Section 5
  2. 2. 1. Project Management Fundamentals 2. Project Organization Structure 3. Project Communications 4. Project Labor Cost Control 5. Leadership and Management of Project People CContentontent 5. Leadership and Management of Project People 6. Quality Management 7. Value Engineering 8. Contracting for Capital Projects 9. Strategic Asset Management 10.Change Management Practical Guide 11.Overview of Construction Claims and Disputes PROJECT MANAGEMENT
  3. 3. The management of projects focuses on: 1. Identifying risks 2. Maximizing cost savings 3. Minimizing time delays 4. Improving economic return These results can only be achieved through: PROJECT MANAGEMENT FUNDAMENTALSPROJECT MANAGEMENT FUNDAMENTALS These results can only be achieved through: 1. Effective management of people 2. Tough but fair project objectives 3. Efficient business techniques 4. Outstanding leadership skills PROJECT MANAGEMENT
  4. 4. Project characteristic Projects are temporary. ProjectProject An item of work that requires planning, organizing, dedication of resources and expenditure of funds in order to produce a concept, a product, or a plant. It is a temporary endeavor with a definite starting point and ending point undertaken to create a unique product or service PROJECT MANAGEMENT FUNDAMENTALSPROJECT MANAGEMENT FUNDAMENTALS Projects are temporary. Has definite beginning and end, the end is reached when the project’s objective have been achieved. Projects are unique. Every project creates a unique product, service, or results. Progressively elaborated. Progressively: proceeding in steps. Elaborated: worked with care and detail. PROJECT MANAGEMENT
  5. 5. ProjectProject ObjectivesObjectives Something toward which work is to be directed, a strategic position to be attained, or a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed. Each project must have at LEAST one objective. PROJECT MANAGEMENT FUNDAMENTALSPROJECT MANAGEMENT FUNDAMENTALS Each project must have at LEAST one objective. The objectives of the project MUST be made known and communicated. Project objective MUST follow the SMART rule; S = specific M = measurable A = attainable R = realistic or relevant T = time bound PROJECT MANAGEMENT
  6. 6. ProjectProject ManagementManagement FunctionFunction Cost Management Time Management Human Resources PROJECT MANAGEMENT FUNDAMENTALSPROJECT MANAGEMENT FUNDAMENTALS Human Resources Communications “Poor administrative practices” barriers are common to all companies and are generally referred to as Matrix Interface Conflicts (MICs) Major Factors That Are Essential for the Successful Execution of Projects PROJECT MANAGEMENT
  7. 7. Development planning Feasibility study Conceptual Project PhasesProject Phases Most of these phases will overlap, and the degree of overlapping will depend on the work content of each phase and the efficiency of decision making present in the project. PROJECT MANAGEMENT FUNDAMENTALSPROJECT MANAGEMENT FUNDAMENTALS 1 2 3 Conceptual study Project planning Basic design PROJECT MANAGEMENT Detail design and procurement Construction Commission and start-up 3 4 5 6 7 8
  8. 8. Solve Problems Upgrade Quality Engineering Request Project Development Project Life CycleProject Life Cycle PROJECT MANAGEMENT FUNDAMENTALSPROJECT MANAGEMENT FUNDAMENTALS Project Execution Addition Quantity Environmental Stay In Business budgeting and Management Technical Project Conditions Regulatory Conceptual Cost estimate Economics Phases Funding Estimate Quality Execution Strategy Project Resources Small Large PROJECT MANAGEMENT
  9. 9. PROJECT MANAGEMENT FUNDAMENTALSPROJECT MANAGEMENT FUNDAMENTALS Projects are designed and built by people, not companies. People do it singly, or in multiple groups; and if there are skilled people and good relationships, there is a chance of success. If the people and relationships are poor, there is little chance of success. Greater personnel efficiency and increased operational quality are essential requirements in today's difficult business PROJECT MANAGEMENT requirements in today's difficult business environment. The “Bean Counter” Syndrome is a wide spread practice, where effective cost control is absent or greatly diminished. It is a dangerous and unacceptable practice.
  10. 10. Projects are impacted by, and have impact on, the cultural norms, management policies, and procedures of the organizations of which they are a part. The best project managers look for these influences and manage them for the benefit of the project and the organization. One of the main forms of influence is how the company is organized. Project organizations can be as strong as the processes that have been put in place, but in the end―success is measured by the quality of the leadership and the PROJECT ORGANIZATION STRUCTURE but in the end―success is measured by the quality of the leadership and the members of the project team Organizational structures can be defined in terms of the project manager's level of authority. Types of organizations Functional organizations Matrix organizations PROJECT MANAGEMENT
  11. 11. e f E x e c u t i v e t i o n a l M a n a g e r S t a f f S t a f f S t a f f t i o n a l M a n a g e r S t a f f S t a f f S t a f f t i o n a l M a n a g e r S t a f f S t a f f S t a f f Project Coordination PROJECT ORGANIZATION STRUCTURE Functional (Green boxes represent staff engaged in project activities) PROJECT MANAGEMENT
  12. 12. e f E x e c u t i v e t i o n a l M a n a g e r S t a f f S t a f f S t a f f t i o n a l M a n a g e r S t a f f S t a f f S t a f f t i o n a l M a n a g e r S t a f f S t a f f S t a f f o f P r o j e c t M a n a g e r j e c t M a n a g e r j e c t M a n a g e r j e c t M a n a g e r PROJECT ORGANIZATION STRUCTURE r s (Green boxes represent staff engaged in project activities) Project Coordination Matrix PROJECT MANAGEMENT
  13. 13. Effective information exchange and efficient coordination of project workload. More efficiently use resources. Clearly defined project execution plan (accept, commit to, and work to the agreed execution plan) Project manager having inadequate authority. PROJECT ORGANIZATION STRUCTURE Matrix Organization Individual who is doing the work reports to two bosses. Conflict management. It needs strong project management culture and effective company leadership. SO, The solution was a new approach called Quality Management that was introduced by Dr. Edward Deming. PROJECT MANAGEMENT The “matrix” failed
  14. 14. Project Organization structures have become dynamic as a result of the numerous international perspectives that have been applied. The successful companies embrace a quality of empowerment and reward, which allows them to maximize the organizational programs. Many of these new organizational changes come from the Demingism programs PROJECT ORGANIZATION STRUCTURE PROJECT MANAGEMENT Many of these new organizational changes come from the Demingism programs which developed the Total Quality Management (TQM) philosophy. Term “Demingism” coined after Dr. Edward Deming’s approach to TQM in the 1960s and 1970s
  15. 15. Demingism and Total Quality Management (TQM) Criteria for Developing a Quality Management Program ( 6 components of total quality management) 1. Client satisfaction 2. Understanding and reducing variation 3. “Top-down” management leadership and commitment PROJECT ORGANIZATION STRUCTURE 3. “Top-down” management leadership and commitment 4. Continuous change and improvement 5. Ongoing training and education 6. A culture of personnel pride and job satisfaction PROJECT MANAGEMENT
  16. 16. Use of TQM for Effective Project Delivery 1. Owner qualification to perform as project manager 2. Organization structure alignment with contracting arrangements 3. Project manager qualification 4. Determine if project manager reports to the client or to projects/engineering 5. Use of project task force (PTF) “Used on larger projects, more efficient communication channels, challenge of brining individuals from many parts of a company is a substantial task, use of a business manager” PROJECT ORGANIZATION STRUCTURE manager” 6. Correct emphasis on business management 7. Efficient and effective project team 8. Project organization structure 9. Use of project organization charts 10. Establish authority of the project manager 11. Define project controls reporting relationship PROJECT MANAGEMENT
  17. 17. Project Manager Key Qualification and Authority QULIFICATIONS Technical expertise, project AUTHORITY Full authority to make both design and cost decisions, PROJECT ORGANIZATION STRUCTURE experience, business capability, leadership ability, and people skills. and cost decisions, with appropriate limits of authority and management reporting requirements PROJECT MANAGEMENT
  18. 18. Communication Communication has been identified as one of the single biggest reasons for project success or failure. Openness in communication is a gateway to teamwork and high performance. It improves relationships among project team members and creates mutual trust. A formal and informal structure of effective communication is absolutely essential for PROJECT COMMUNICATIONPROJECT COMMUNICATION successful project execution. Many company organizations and cultures have poor administrative practices that also form barriers to project success. These barriers are common to all companies and are generally referred to as Matrix Interface Conflicts (MICs). The total quality management programs sweeping the industry are an attempt to solve these problems. PROJECT MANAGEMENT
  19. 19. Communication involves the exchange of information: The sender is responsible of making the information clear unambiguous and complete, to receiver. The receiver has to ensure that the information received in understood and correctly understood. Communication Model PROJECT COMMUNICATIONPROJECT COMMUNICATION PROJECT MANAGEMENT
  20. 20. PROJECT COMMUNICATIONPROJECT COMMUNICATION Body Language and Personality Types PROJECT MANAGEMENT
  21. 21. PROJECT COMMUNICATIONPROJECT COMMUNICATION Nonverbal Communications Four key principles: 1. Context is important 2. Observe behavior holistically 3. Watch for changes in body language 4. Watch for congruence (body language and words match) Positive nonverbal clues 1. Uncrossed arms/legs PROJECT MANAGEMENT 1. Uncrossed arms/legs 2. Open hands 3. Rubbing the chin 4. Moving closer 5. Eye contact 6. Matching (movements of speaker/listener) Negative nonverbal clues 1. Crossed arms/legs 2. Clenched or hidden hands 3. Moving away
  22. 22. Effective Listening The receiver should decode the message carefully and confirm the message is understood. This includes watching the speaker to pick up physical gestures and facial expressions, thinking about what to say before responding, and using active listening, in which the receiver confirms he or she is listening, expresses agreement or disagreement, or asks for clarification. PROJECT COMMUNICATIONPROJECT COMMUNICATION agreement or disagreement, or asks for clarification. PROJECT MANAGEMENT Listening is an important part of communication. Listening techniques, both active and effective give the user insight to problem areas, negotiation and conflict management strategies, decision making, and problem resolution.
  23. 23. PROJECT COMMUNICATIONPROJECT COMMUNICATION Elements of LISTEN 1. Look interested and give the speaker your undivided attention. 2. Involve yourself by responding to show you are listening. 3. Stay on target. 4. Test your understanding of what is being stated. 5. Evaluate the message and respond appropriately. 6. Neutralize your feelings PROJECT MANAGEMENT 6. Neutralize your feelings Improving Listening 1. Don’t Interrupt 2. Put the Speaker at Ease 3. Appear Interested 4. Cut Out Distractions 5. Periodically Sum Up What Was Said
  24. 24. PROJECT COMMUNICATIONPROJECT COMMUNICATION Top 5 communication barriers 1. Lack of common language 2. Use of slang and terminology 3. Loss of nonverbal communication clues 4. Lack of team interaction 5. Use of information filters PROJECT MANAGEMENT
  25. 25. Communication Dimensions Internal (within the project) and external (customer, other projects, the media, the public). Formal (reports, memos, briefings) and informal (emails, ad-hoc discussions). Vertical (up and down the organization) and horizontal (with peers). PROJECT COMMUNICATIONPROJECT COMMUNICATION Official (newsletters, annual report) and unofficial (off the record communications). Written and oral. Verbal and non-verbal (voice inflections, body language). PROJECT MANAGEMENT
  26. 26. Communication Forms Forms Characteristics Example Written Formal Precise Transmitted through the medium of correspondence Project Charter, Scope Statement, Project Plan, WBS, project status. Complex issues Contract related communication Written Email, Notes, Memos, Letters PROJECT COMMUNICATIONPROJECT COMMUNICATION Written Informal Email, Notes, Memos, Letters Regular communication with team members Oral Formal High Degree of Flexibility Use the medium of personal contact, group meetings or telephone Presentations, speeches. Negotiations, conflict resolution Oral Informal Conversation with team members Project Meetings Break-room or war-room conversations Non-verbal 55% of total communication Facial expressions, hand movements, tone of voice while speaking etc. PROJECT MANAGEMENT
  27. 27. PROJECT COMMUNICATIONPROJECT COMMUNICATION Written Communications Email is now the most common form of written communication Best practices when writing and managing email: 1. Consider your audience before writing the email. 2. Use the subject line to describe email contents. PROJECT MANAGEMENT 3. Keep email short, concise, and coherent. 4. Do not type in all UPPER case or all lower case. 5. Proofread your document before sending (grammar and spell check). 6. Do not attach files unnecessarily. 7. Be aware that email is not confidential. 8. Do not send emails when you are angry.
  28. 28. PROJECT COMMUNICATIONPROJECT COMMUNICATION Use of Technology for Business Purposes PROJECT MANAGEMENT
  29. 29. Identify Stakeholders A key first step for effective communications is identifying the stakeholders you need to communicate with on the project. Stakeholders are those people who are directly or indirectly affected by the project or who can affect the project. Stakeholders can view the project as positive or negative, and can be either internal or external to the organization. PROJECT COMMUNICATIONPROJECT COMMUNICATION There are multiple classification models available such as; i. Power/interest grid ii. Power/influence grid. iii.Influence/impact grid. PROJECT MANAGEMENT
  30. 30. Team Charter An agreement on operating guidelines and group behavior norms for the team Covers more than communications Team member roles/responsibilities Administrative procedures Reporting hours worked Team performance measures PROJECT COMMUNICATIONPROJECT COMMUNICATION Team performance measures Decision-making process Ground rules for team conduct Dealing with issues and conflict Meeting commitments Returning telephone calls and emails PROJECT MANAGEMENT
  31. 31. Virtual teams Virtual teams have become much more popular over recent years. A virtual team is a group of geographically dispersed individuals who work across space and organizational boundaries to complete projects. Instead, they typically use communication tools to meet online, share information, and collaborate on deliverables. Achieving better virtual team communications: PROJECT COMMUNICATIONPROJECT COMMUNICATION Achieving better virtual team communications: 1. Connect with all team members 2. Prepare e-communication plan 3. Use effective communication tools More than 66% of business professionals engage in virtual work, and that number is rapidly growing PROJECT MANAGEMENT
  32. 32. Labor costs is a variable element of a construction project. The 3 components of labor costs 1. Quantities installed 2. Production rates 3. Wage rates The two prevalent construction labor cost control reporting systems are: 1. The Earned Value Method PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL 1. The Earned Value Method 2. The Unit Rates Method Labor cost control is best achieved by using a feedback loop. Cost control should be approached as an application of Pareto’s Law. PROJECT MANAGEMENT 80 % of the outcome of a project is determined by only 20 % of the included elements.
  33. 33. Factors affecting construction craft productivity include the following: Crew sizes and craft composition Craft density (area per worker) Interference with other crews Scheduling Material availability Equipment and tool availability PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL Equipment and tool availability Information availability Rework as a result of design, fabrication, and field errors Site layout Weather Constructability PROJECT MANAGEMENT
  34. 34. PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL Labor cost efficiencies = (Input) Workhours expended or Labor dollars (Output) Quantities produced Input Output Workhours are measured directly using cost codes and time cards. Quantity cannot be measured with a common unit of measure. Measuring Inputs & Outputs PROJECT MANAGEMENT using cost codes and time cards. Labor Dollars= workhour expended X the wage rate common unit of measure. The output cannot be measured with a common unit of measure. Examples m3 of excavation, m2 of formwork, tons of steel, lineal meters of pipe, ... etc. Cost control requires matching each unit of output to the input (resources) that was required to produce it.
  35. 35. Acronym Terms Formula % Complete % Complete (single account) = Actual Qty / Forecasted Total Quantity BCWP Earned Value = Actual % Complete X Budget for the account % Complete % Complete (multiple accounts) = EV (all accounts) / Budget value (all accounts) PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL Earned Value Method The earned value method can be compared to the value of work scheduled as part of an integrated project control system Complete % Complete (multiple accounts) = EV (all accounts) / Budget value (all accounts) BCWS Schedule Value = Scheduled % Complete X Budget dollars or Workhours = Qty scheduled X Budget unit cost or production rate PROJECT MANAGEMENT CV Cost Variance = Earned value - Actual cost CPI Cost Performance Index = Earned value / Actual cost SV Schedule Variance = Earned value – Schedule Value SPI Schedule Performance Index = Earned value / Schedule Value
  36. 36. PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL EAC Work from this point forward will progress at the budget (CPI = 1) = Actual cost to-date + (Budget - EV) The performance to-date will continue = Budget / CPI Uses historical curves that show the normal variation in the CPI as the cost account progresses What the cost would have been if the actual quantities were installed at the budget Terms Formula Credit Dollars (C$) = Actual Quantity x Budget Unit Cost Credit Workhours (CWH) = Actual Quantity x x Budget production rate Unit Cost Index (UCI) = Credit Dollars / Actual Dollars Productivity Index (PI) = Credit Workhours / Actual Workhours PROJECT MANAGEMENT What the cost would have been if the actual quantities were installed at the budget unit rate? Credit Value (Dollars or Workhours)
  37. 37. PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL Unit Rates Method The advantage of the unit rates method is that the unit costs and production rates are used for estimating and are therefore familiar to most managers. EAC Work from this point forward will progress at budget unit rates = Actual dollars or workhours to-date + [To go qty X Budget unit rate] The unit rate prevailing to-date will continue to prevail = Total qty X Actual unit rate Uses historical curves that show the normal variation in unit rates as the cost account progresses PROJECT MANAGEMENT Uses historical curves that show the normal variation in unit rates as the cost account progresses A frequent question is what or who is responsible for the total difference between the budget and the EAC? Two way variance analysis is one method for answering this question. Two way variance analysis 1. Quantity variance 2. Rate variance
  38. 38. PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL Quantity Variance = CQ x PB Where: CQ Change in Quantity = QB – QF QF Forecast Quantity QB Budget Quantity PB Budget Production Rate or Unit Cost Unit Rate Variance (Production Rate or Unit Cost) = QF x CP Where: C Change in Production Rate or Unit Cost = P – P PROJECT MANAGEMENT CP Change in Production Rate or Unit Cost = PB – PF PF Forecast Production Rate or Unit Cost PB Budget Production Rate or Unit Cost QF Forecast Quantity Estimated Total at Completion (EAC) = QF x PF Budget = QB x PB The project manager concentrates corrective efforts on those activities whose actual performance deviate from the budget. The effectiveness of the corrective action is monitored by the feedback loop.
  39. 39. PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL Total Budget Duration Elapsed Duration $1,440 20 days 5 days Acronym Terms Formula BCWP Earned Value =(608/2880) x $1,440 = $304 Budget quantity Forecasted quantity Actual quantity Actual cost 2880 2880 608 $288 Example PROJECT MANAGEMENT BCWP Earned Value =(608/2880) x $1,440 = $304 BCWS Schedule Value = (5/20) x $1,440 = $360 C$ Credit Dollars = 608 x (1440 / 2880) = $304 CV Cost Variance = 304 – 288 = 16 CPI Cost Performance Index = 304 / 288 = 1.056 SV Schedule Variance = 304 – 360 = - 56 SPI Schedule Performance Index = 304 / 360 = 0.84 EAC Estimated at Completion = 1,440 / 1.056 = $1,364 VAC Variance at Completion = 1,440 – 1364 = 76
  40. 40. PROJECT LABOR COST CONTROLPROJECT LABOR COST CONTROL PB Budget Unit Rate = $1,440 / 2880 = 0.5 $/L.F PF Cost Performance Index = $288 / 608 = 0.4737 $/L.F EAC Estimated at Completion = 2880 x 0.4737 = $1,364 CQ Change in Quantity = QB– QF = 2880 – 2800 = 0 Change in Production Rate or Unit Rates Method PROJECT MANAGEMENT CP Change in Production Rate or Unit Cost = PB – PF = 0.5 – 0.4737 = 0.0263 VAC Variance at Completion = (0.00 x 0.5) + (0.0263 x 2880) = 76
  41. 41. The project manager must be able to lead, motivate and persuade people to act in the best interest of the project and must be able to build a team and lead members to give their best effort to the project. Effective project managers acquire a balance of technical, interpersonal, and conceptual skills that help them analyze situations and interact appropriately Leadership LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Team building Motivation Communication Influencing Decision making Political and cultural awareness Negotiation PROJECT MANAGEMENT
  42. 42. Leadership Leadership involves focusing the efforts of a group of people toward a common goal and enabling them to work as a team. Leadership is the ability to get things done through others. Respect and trust, rather than fear and submission, are the key elements of effective leadership. Although important throughout LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Although important throughout Effective leadership is critical during the beginning phases of a project when the emphasis is on communicating the vision and motivating and inspiring project participants to achieve high performance. Throughout the project, the project team leaders are responsible for establishing and maintaining the vision, strategy, and communications; fostering trust and team building; influencing, mentoring, and monitoring; and evaluating the performance of the team and the project. PROJECT MANAGEMENT
  43. 43. Leadership styles concepts Theory “X” Theory “Y” People inherently dislike work. People must be coerced or controlled to do work to achieve objectives. People prefer to be directed basic human needs are arranged in a hierarchy. People view work as being as natural as play and rest . People will exercise self-direction and control towards achieving objectives they are committed to. People learn to accept and seek responsibility. 1. Theory of X and Y (Douglas McGregor’s) LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE People learn to accept and seek responsibility. PROJECT MANAGEMENT
  44. 44. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE PROJECT MANAGEMENT People are self-motivated and will exercise self-direction and self-control toward achieving objectives to which they are committed
  45. 45. 2. Hygiene / Two Factors Theory (Frederick Herzberg’s). Hygiene factors: A series of hygiene factors create dissatisfaction if individuals perceive them as inadequate or inequitable. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Motivators: It is intrinsic factors that determine satisfaction. PROJECT MANAGEMENT
  46. 46. 3. Organization and Human Problem (Chris Argyris) LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Advanced some of McGregor’s theories. Organization may be the source and cause of human problems. Individual needs and organizational needs were not met effectively in most organizations.organizations. Part of the problem was due to bureaucratic and hierarchical structures. Solution 1. Ad hoc work groups, or project teams. 2. Challenges and opportunities for responsibilities. 3. Open communication and trust are needed. PROJECT MANAGEMENT
  47. 47. 4. LIKERT’S 4 systems of Management (Rensis Likert) LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE The development of an attitude measurement approach known as the Likert - type scale. Developed the concept of the linking pin “a person who belongs to two groups in the organization”. Four basic styles of leadershipFour basic styles of leadership 1. Exploitive – Authoritative 2. Benevolent – Authoritative 3. Consultative 4. Participative Group Ideal for a human-concerned organization. Trust between employees and management. Widely delegated decision – making. PROJECT MANAGEMENT
  48. 48. 5. Managerial/Leadership Grid Theory (Drs. Robert Blake and Jane Mouton) LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE open- minded, flexible and one who inspires involvement PROJECT MANAGEMENT doing just enough to keep their job
  49. 49. Team building The process of helping a group of individuals, bound by a common sense of purpose, to work interdependently with each other, the leader, external stakeholders, and the organization. Good leadership + Good team building = Teamwork. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Team building activities consist of tasks (establish goals, define, and negotiate PROJECT MANAGEMENT (establish goals, define, and negotiate roles and procedures) and processes (interpersonal behavior with emphasis on communication, conflict management, motivation, and leadership).
  50. 50. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE PROJECT MANAGEMENT
  51. 51. Cross-Cultural Concerns By understanding the cultural differences, the project management team is more likely to create an environment of mutual trust. Cultural differences can be both individual and corporate in nature and may involve both internal and external stakeholders. An effective way to manage this cultural diversity is through getting to know the various team members and the use of good communication planning. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE various team members and the use of good communication planning. Culture can impact the speed of working and the decision-making process. PROJECT MANAGEMENT This may lead to conflict and stress in some organizations, thereby affecting the performance of project managers and project teams.
  52. 52. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Leading, Managing, Facilitating, And Mentoring Leadership Ability to conceptualize the vision, direct the project, and communicate or sell this vision to the team members and other stakeholders. Encouraged to ask questions about project purpose and to offer opinions. Gain credibility and must demonstrate managerial actions and behaviours. Being the team’s voice to the outside world. PROJECT MANAGEMENT Being the team’s voice to the outside world. Communicate actively to address stakeholders in terms of supporting and buying into the project goals. Management Manager role ensures the project is completed on time, within budget, and at acceptable levels of performance. Create the administrative procedures and structure to complete the project
  53. 53. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Facilitation Help others get their work done. It involves communication, conflict resolution, procure necessary resources, motivate both individual team members and the team as a unit. The goal is to provide team members with choices, options, and then trust that the team members will create the desired outcome. Mentor or Coach PROJECT MANAGEMENT Mentor or Coach Being a role model who demonstrates desired skills, behaviour, and attitudes. Demonstrating personal interest in professional growth of team members. Think-out-loud with team (suggestions, possibilities, problem solving approaches) Assisting team members in identifying and achieving long-term professional goals.
  54. 54. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Leader Effective Project Manager Facilitator PROJECT MANAGEMENT Manager Mentor
  55. 55. Motivation Project teams are comprised of team members with diverse backgrounds, expectations, and individual objectives. Motivating in a project environment involves creating an environment to meet project objectives while offering maximum self-satisfaction related to what people value most. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE These values may include PROJECT MANAGEMENT These values may include Job satisfaction Challenging work Sense of accomplishment Achievement and growth Sufficient financial compensation Other rewards and recognition the individual considers necessary and important.
  56. 56. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Motivation Theories 1. Biological Perspective Actions contribute in preservation and expansion of the species will produce motivation. It is appropriate when confined to the more basic aspects of human behaviour, such as hunger and thirst, reproduction. PROJECT MANAGEMENT thirst, reproduction. 2. Drive Theories Certain behaviors are the result of individuals meeting the requirements of specific drives. The goal of reducing tension is to achieve an internal state of equilibrium or balance. Motivation by attempts to maintain this balance. Similar to evolutionary.
  57. 57. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE 3. Incentive Theories Individual behavior is pulled in certain directions based on the external conditions in the specific setting It can work when the manager and team member have the ability and the resources to identify a desired behaviour that can be awarded. The incentives must be valued by the group. The incentives need to be appropriate to the culture of the organization. PROJECT MANAGEMENT The incentives need to be appropriate to the culture of the organization. 3. Theory Of Needs - Acquired Needs Theory (David McClelland) People who value the need for achievement are often those people who are the leaders in the areas of creativity and economic growth. The need to achieve within one’s discipline can self-motivate many individuals.
  58. 58. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE 5. Fear Of Failure A strong motivator in situations when the consequences for failure are especially catastrophic. It should be employed only in unusual circumstances 6. Maslow’s Hierarchy of Needs Theory (Abraham Maslow) The basic human needs are arranged in a hierarchy. PROJECT MANAGEMENT in a hierarchy. The lower needs must be satisfied before the higher needs can be addressed. According to this concept, people are always in some sort of a ‘‘needs’’ state.
  59. 59. 7. Career Theory (E. Schein ) A different approach through a model that describes major stages in a personal career. An understanding of an individual’s current career stage by the leader can be used in developing tangible approaches to individual motivation. This model has ten career stages. Stage 1&2: life before entering the world of work LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE Stage 1&2: life before entering the world of work Stage 3: The first formal entry into the workplace Stage 4: Training in the concrete application of skills and professional socialization Stage 5:The individual is observed as having gained full admission into the profession Stage 6: The individual gains a more permanent membership in the profession. Stage 7: The natural mid-career assessment or crisis Stage 8:The career starts to move into its final chapters. Stage 9: Beginning to disengage from the world of work. Stage 10: The retirement stage PROJECT MANAGEMENT
  60. 60. LEADERSHIP AND MANAGEMENT OF PROJECT PEOPLELEADERSHIP AND MANAGEMENT OF PROJECT PEOPLE 8. Empowerment Theory - J.R. Meredith and S.J. Mantel A team environment be established in which the members experience a strong sense of empowerment through the use of participatory management methods. Empowerment is defined as an approach that stresses individual initiative, solution creation, and accountability. The team is then motivated by the opportunity to be self-determinative in creating the structure and methods to achieve its goals. PROJECT MANAGEMENT the structure and methods to achieve its goals. 9. Ethical Theories and Applications Ethics is an emotionally and intellectually charged word for any professional. It is science of judging specifically human ends and the relationship of means to those ends. It prompts images of moral responsibility and obligation, scholars debating the intricacies of profound issues, and arguments between professionals and social commentators about right and wrong behavior.
  61. 61. Quality Total Quality Management QUALITY MANAGEMENTQUALITY MANAGEMENT Inspection Allocating blame Quality Control Compliance to specification Quality Assurance Involvement Management Continuous Improvement PROJECT MANAGEMENT
  62. 62. People Materials Environment QUALITY MANAGEMENTQUALITY MANAGEMENT Equipment Method PROJECT MANAGEMENT
  63. 63. Conformance to established requirements OR the degree to which the project fulfills the requirements Quality Grade “‫يتقنه‬ ‫أن‬ ‫عمال‬ ‫أحدكم‬ ‫عمل‬ ‫إذا‬ ‫يحب‬ ‫إن‬”What is Quality? QUALITY MANAGEMENTQUALITY MANAGEMENT Quality Grade The combination of all of an entity’s characteristics that enable the satisfaction of stated or implied needs. A category or rank given to entities having the same functional use but different technical characteristics. Low quality is always a problem Low grade may NOT be a problem QualityQuality MUST BEMUST BE planned inplanned in NOTNOT inspected ininspected in PROJECT MANAGEMENT
  64. 64. Standard Regulation A document established by consensus and approved by a recognized body that provides, for common and repeated Is a government imposed requirement, which specifies product, process or service characteristics, Standard and Regulation QUALITY MANAGEMENTQUALITY MANAGEMENT use, rules, guidelines or characteristics for activities or their results, aimed at achievement of the optimum degree of order in a given context process or service characteristics, including the applicable administrative provision, with which compliance is mandatory. Example: the size of a computer disk and the ISO standards. Example: Building codes PROJECT MANAGEMENT
  65. 65. Juran’s Trilogy QUALITY MANAGEMENTQUALITY MANAGEMENT PROJECT MANAGEMENT (PDCA) Cycle W. Edwards Deming, advocated a similar and now well- accepted set of steps with his “Plan-Do-Check-Act”
  66. 66. Categorizing quality costs 1. Error-free costs 2. Cost of Quality (COQ) 1. Costs of conformance 1. Prevention 2. Appraisal 2. Costs of non-conformance QUALITY MANAGEMENTQUALITY MANAGEMENT 2. Costs of non-conformance 1. Internal failure 2. External failure 3. Hidden poor quality costs 1. Postponed profits 2. Lost profits 3. Customer incurred costs 4. Socio-economic costs PROJECT MANAGEMENT
  67. 67. Cost of Quality Cost of Conformance Cost of Nonconformance Prevention Cost (Build a quality product) and Appraisal Cost (Assess the quality). Failure Cost. Prevention Planning. Appraisal Testing. Internal (pre customer) Scrap. Rework. QUALITY MANAGEMENTQUALITY MANAGEMENT Planning. Training. Auditing. Controlling. Testing. Destructive testing loss. Inspections. (pre customer) “Fixes prior to delivery” Rework. Inventory cost. External (post customer) Warranty. Service. Recalls. Money spent during the project to avoid failures. Money spent during and after the project because of failures. PROJECT MANAGEMENT
  68. 68. Cost of Quality before and after TQM QUALITY MANAGEMENTQUALITY MANAGEMENT After TQMBefore TQM PROJECT MANAGEMENT
  69. 69. QUALITY MANAGEMENTQUALITY MANAGEMENT PROJECT MANAGEMENT
  70. 70. Value This is a major challenge for executives, and it involves increasing value. Value is an ambiguous term and can be highly subjective. A primary responsibility for executives is to create value for the customer while increasing economic wealth for employees and shareholders—all at the same time! QUALITY MANAGEMENTQUALITY MANAGEMENT Value = Performance With this math, value increases if the numerator goes up or the denominator goes down. PROJECT MANAGEMENT Value = Performance Cost Quality management is an essential element for managing costs.
  71. 71. Quality EvolutionQuality Evolution QUALITY MANAGEMENTQUALITY MANAGEMENT 1960s and 19701940s and 1950 PROJECT MANAGEMENT
  72. 72. National Standards Institute (ANSI) represents the United States. ISO 9000 is not a set of standards for products or services, nor is it specific to any one industry. Instead, it is a quality system standard applicable to any product, service, or process anywhere in the world. The information included in the ISO 9000 series includes: ISO 9000: This defines the key terms and acts as a road map for the other standards within the series. QUALITY MANAGEMENTQUALITY MANAGEMENT within the series. ISO 9001: This defines the model for a quality system when a contractor demonstrates the capability to design, produce, and install products or services. ISO 9002: This is a quality system model for quality assurance in production and installation. ISO 9003: This is a quality system model for quality assurance in final inspection and testing. ISO 9004: This provides quality management guidelines for any organization wishing to develop and implement a quality system. Guidelines are also available to determine the extent to which each quality system model is applicable. PROJECT MANAGEMENT
  73. 73. 1 2 3 4 5 Becoming 6 QUALITY MANAGEMENTQUALITY MANAGEMENT Writing a policy Defining Procedures Following them Getting everyone else to follow them Everyone wants to follow them Becoming prevention oriented continuously improving organization ISO 9000 TOTAL QUALITY MANAGEMENT PROJECT MANAGEMENT
  74. 74. Principles of TQM Customer-oriented Leadership Strategic planning Employee responsibility QUALITY MANAGEMENTQUALITY MANAGEMENT Employee responsibility Continuous improvement Cooperation Statistical methods Training and education PROJECT MANAGEMENT
  75. 75. W. Edwards Deming ““Quality is a management problem” The 14 Points “standard reference for quality transformation” 1. Create a constant purpose toward improvement. 2. Adopt the new philosophy. 3. Stop depending on inspections. 4. Use a single supplier for any one item. 5. Improve constantly and forever. Continuously improve your systems and processes. Deming promoted the Plan-Do- Check-Act approach to process analysis and improvement. Emphasize training and education so everyone can do their jobs better. QUALITY MANAGEMENTQUALITY MANAGEMENT By improving quality, companies will decrease expenses as well as increase productivity and market share. “Out of Crisis” 1982 Emphasize training and education so everyone can do their jobs better. Use kaizen as a model to reduce waste and to improve productivity, effectiveness, and safety. 6. Use training on the job. 7. Implement leadership. 8. Eliminate fear. 9. Break down barriers between departments. 10.Get rid of unclear slogans. 11.Eliminate management by objectives. 12.Remove barriers to pride of workmanship. 13.Implement education and self-improvement. 14.Make "transformation" everyone's job. Oct.1900 – Dec. 1993 Quality problem (85% management and 15% worker) PROJECT MANAGEMENT
  76. 76. Dr. Joseph M. Juran (The Father of Quality) ““Fitness for Use” Quality begins with who, how, and why these customers will use it, without this information any improvement will be guesswork. In other words, all improvement activities should be customer focused Juran’s five attributes for “fitness for use”: 1. Quality of design 2. Quality of conformance (Dec. 1904 – Feb. 2008) QUALITY MANAGEMENTQUALITY MANAGEMENT 2. Quality of conformance 3. Availability 4. Safety 5. Field use He development 80/20 principle Quality is fitness for use. 1Quality Control Handbook, 2Managerial Breakthrough, 3Management of Quality Control, 4Quality Planning and Analysis, 5Upper Management and Quality, and 6Juran on Planning for Quality. Needs of the customers and Stakeholders are defined and then attempted to satisfy. “Quality Control Handbook 1951” (Dec. 1904 – Feb. 2008) PROJECT MANAGEMENT
  77. 77. Philip Crosby ““Zero defects and prevention or rework results ” Zero defects is a way of thinking and doing that reinforces the notion that defects are not acceptable, and that everyone should "do things right the first time". The idea here is that with a philosophy of zero defects, you can increase profits both by eliminating the cost of failure and increasing QUALITY MANAGEMENTQUALITY MANAGEMENT Defects are not acceptable, and that everyone should "do things right the first time“ “Quality is free 1979” revenues through increased customer satisfaction. Zero defects is NOT about being perfect. Zero defects is about changing your perspective. It does this by demanding that you: 1. Recognize the high cost of quality issues. 2. Continuously think of the places where flaws may be introduced. 3. Work proactively to address the flaws in your systems and processes, which allow defects to occur. Quality is conformance to requirements. Jun.1926 - Aug. 2001 PROJECT MANAGEMENT
  78. 78. Kaizen Philosophy ““Continuous Improvement” Apply continuous small improvements to reduce costs and ensure consistency. Kaizen (Ky’zen) is meaning “change for the better” in Japanese. 改改改改 QUALITY MANAGEMENTQUALITY MANAGEMENT In united Stated and most of Western Europe, improvements are thought of as big improvements. In Japan, improvements are thought of as small improvements. 善善善善 PROJECT MANAGEMENT
  79. 79. VALUE ENGINEERINGVALUE ENGINEERING Value Engineering Value engineering has the goal of lowest lifecycle costs. Value engineering Benefits Value Engineering for complex projects much more beneficial than simple projects. Pareto’s Law of Optimality states that 80% of the costs come from 20% of the items therefore to achieve maximum benefit we should focus on those high- PROJECT MANAGEMENT the items therefore to achieve maximum benefit we should focus on those high- cost areas. Value engineering can prove to be a powerful tool in an increasingly- competitive world market that every dollar spent on value engineering, a return of from three to four dollars can be expected from this activity.
  80. 80. VALUE ENGINEERINGVALUE ENGINEERING Factors causing poor value 1. Poor attitudes 2. Poor habits 3. Poor ideas 4. Poor information 5. Time constraints 6. Temporary circumstances PROJECT MANAGEMENT 6. Temporary circumstances 7. Mistaken beliefs
  81. 81. VALUE ENGINEERINGVALUE ENGINEERING Value Types Cost Value Exchange Value Use Value Esteem Value Refers to the totality of labor, material, equipment , and overhead costs, involved in actually Refers to the characteristics of the project, product, or service which allow it Refers to the characteristics of the project, product, or service Refers to the characteristics of the project, product, or PROJECT MANAGEMENT producing and bringing to market the project, product, or service. to be traded for something of value, such as currency. which enable it to accomplish its intended purpose. service which make ownership attractive.
  82. 82. VALUE ENGINEERINGVALUE ENGINEERING Level of Influence Curve Early application of value engineering techniques in the design phase makes the most sense. VE application during the construction process can be PROJECT MANAGEMENT construction process can be problematic. Engineering/design – High influence on costs with low expenditure Procure/construct – Low influence with high expenditure
  83. 83. VALUE ENGINEERINGVALUE ENGINEERING Project Schedule Optimum project duration results in the lowest life cycle cost PROJECT MANAGEMENT
  84. 84. VALUE ENGINEERINGVALUE ENGINEERING Functional Analysis Systems Technique (FAST)/Functional Approach Identify unnecessary costs Use an active verb and measurable noun Identify primary functions and secondary functions Use “Why” and “How” to stimulate thinking Value Engineering study team Diversified team members PROJECT MANAGEMENT Diversified team members Variety of relevant specializations
  85. 85. VALUE ENGINEERINGVALUE ENGINEERING Value Engineering job plan Information Phase Speculation Phase Analysis Phase 1 2 3 PROJECT MANAGEMENT Analysis Phase Development Phase Basic design 1. Follow-up and Implementation Phase 4 5 6
  86. 86. VALUE ENGINEERINGVALUE ENGINEERING PROJECT MANAGEMENT
  87. 87. VALUE ENGINEERINGVALUE ENGINEERING Value Engineering success steps 1. An organized creative approach to cost reduction 2. Target fonctions versus technique 3. Targets areas of unneeded costs 4. Enhance the value of the product or service 5. Same level, or improved performance level, at reduced cost 6. Does not harm quality or reliability PROJECT MANAGEMENT 6. Does not harm quality or reliability
  88. 88. Contract A contract is a mutually binding legal agreement that obligates the seller to provide the specified products, services, or results, and obligates the owner to compensate the contractor. A contract is a legal relationship subject to remedy in the courts. The difference between a contract and an agreement is the element of legal enforceability. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS PROJECT MANAGEMENT
  89. 89. Requirements of a Contract 1. An offer 2. Acceptance 3. Consideration (Something of value, not necessarily money) to warrant performing the work 4. Legal capacity (Separate legal parties, competent parties) Legal and mental capacity 5. Legal purpose (You cannot have a contract for the sale of illegal goods or services) CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS 5. Legal purpose (You cannot have a contract for the sale of illegal goods or services) PROJECT MANAGEMENT
  90. 90. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Parties to a Contract There must be a minimum of two parties in a contractual arrangement. 1. Owner (the first party) 2. Contractor (the second party) 3. Related parties 4. Third parties PROJECT MANAGEMENT 4. Third parties
  91. 91. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Mistakes that Make Contracts Defective Nature of the transaction the property is not zoned for such a facility Identity of a party Identity of the subject matter location at which Facility A cannot be constructed Existence of the subject matter facility is destroyed by fire PROJECT MANAGEMENT Mistakes that Do Not Make Contracts Defective Value, quality or price Terms of the contract Other Factors Affecting Enforceability of Contracts Statutory or regulatory provisions Valid contractor’s license Valid professional engineering or land survey registration
  92. 92. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Contents of a Contract Invitation to Bid or Request for Proposal Instructions to Bidders Addenda Issued During the Bid Period Bid or Proposal Contract Bonds General Conditions PROJECT MANAGEMENT General Conditions Special or Supplemental Conditions Scope of work (Technical Requirements of the Contract) It define what work is to be accomplished by which party, when, and to what level of quality. Disagreement over what in/out scope is one of causes of disputes. Change orders or contract modifications Permits, environmental agreements, geotechnical reports, technical requirements
  93. 93. Contract CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Types of Contract Guaranteed Maximum Price [GMP] contracts Fixed Price– Lump Sum Fixed Price With Economic Adjustment Fixed Price With Incentives Fixed Price - Unit Price Cost Reimbursable Direct Costs Indirect Costs (Overhead Costs) Mark Up Costs Target Contracts PROJECT MANAGEMENT Types of Costs
  94. 94. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Advantages Disadvantages Fixed-Price/ Lump-Sum Contracts Final Cost are known and the selection of contractor is fairly easy Lowest risk and minima supervision (mostly quality / schedule) Contractor quickly solve his Changes are difficult and costly Contractor chooses cheapest solutions Bidding time and design time make early start not possible Contractor include high contingencies in price PROJECT MANAGEMENT Contractor quickly solve his problem Fixed-Price/ Unit Price Contracts Flexibility (scope and quantity can be varied). Good design definition is not essential. typical drawings are ok Very suitable for competitive bidding Final cost is not known since BOQ estimated on incomplete engineering. Staff needed to measure, control, and report on the cost / status of the work. Biased bidding and front end loading may not be detected.
  95. 95. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Advantages Disadvantages Cost Reimbursable Contract Early start can be made. Flexibility in dealing with changes. Owner control all work aspects. Final cost is unknown. Difficulties in evaluating proposals. Contractor has little incentive for early completion or cost economy. Contractor may assign its “second division” personnel to the job. Owner carries most of the risks and faces PROJECT MANAGEMENT Owner carries most of the risks and faces the difficult decisions Target Contract Early start can be made. Flexibility in dealing with changes. encourages economic and speedy completion Final cost initially unknown No opportunity to competitively bid the targets. Variations are difficult and costly once the target has been established
  96. 96. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS PROJECT MANAGEMENT
  97. 97. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS PROJECT MANAGEMENT
  98. 98. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Project Delivery Method 1. Design-Bid-Build Project is fully designed before contractor is employed. Owners who employ fixed price contract that choose this type to know the cost before construction. PROJECT MANAGEMENT cost before construction. 2. Design-Build Engineering-Procurement-Construction contract (EPC), fast track, flash track, or turnkey methods. Construction can start prior to the completion of the design.
  99. 99. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS 3. Indefinite Quantity Contract Task Order Contracting, or Job Order Contracting. Utilized on repetitive work such as routine repair and maintenance projects. Owner and contractor establish set prices for labor, equipment, markups, etc. As a result, scope does not need to be fully known prior to commencing PROJECT MANAGEMENT work.
  100. 100. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Contracting Arrangements 1. Single Prime Contractor Organization Design-bid-build. Owner contracts with a design professional. Owner contracts with a single contractor ASA design complete. limited extent from claims or disputes arising from vendors, suppliers, and PROJECT MANAGEMENT 2. Multiple Prime Contractor Organization arising from vendors, suppliers, and subcontractors. Series of contracts to several contractors. Construction is more quickly. Coordination Risk. Conflicts, delays or coordination problems. Consequently, claims to the owner.
  101. 101. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS 3. Design Build Organization 4. Agency Construction Management Organization Shorten delivery time Single point of responsibility for both design and project execution. A variation of the typical Design-Build Contract is a Turnkey Contract PROJECT MANAGEMENT Project management or program management contracting. Owner contracts directly with designer and contractor. Owner retains independent construction manager (Coordination and overseeing the activities) Construction manager has limited authorities.
  102. 102. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS 5. Construction At-Risk Organization Employs construction manager, project manager or program manager in lieu of a general contractor. All trade contracts are issued by the PROJECT MANAGEMENT issued by the construction manager. The construction manager executes a contract with a firm fixed price―lump sum
  103. 103. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Contractor Prequalification Owners may find themselves in a position of having to prequalify contractors. Prequalified bidders can be assured that they are bidding against relatively equal competitors understand the work and will estimate rationally. An owner benefits as there is some degree of assurance that all contractors submitting bids are qualified and capable of successfully performing. If an owner chooses to prequalify contractors, an objective, rational system must be established―such that all potential bidders can easily determine whether they are, in fact, PROJECT MANAGEMENT established―such that all potential bidders can easily determine whether they are, in fact, qualified. Such objective measures may include the following: Past experience on projects of similar size, complexity, technical and schedule requirements. Past experience with the design build team proposed on this project. Current financial capability. Safety ratings on past projects. Experienced project team, etc.
  104. 104. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Decision to Bid 1. Expertise No similar projects and spread risk. 2. Financial Capability Insurance or bonding requirements, Payment provisions. 3. Bonding Capacity Performance or payment bond and bonding capacity. 4. Personnel PROJECT MANAGEMENT Owner staff has sufficient experienced personnel to perform the work. 5. Equipment If a project requires specialized equipment to perform the work. 6. Specialized Knowledge Owner has requisite skills and knowledge to successfully perform the work. 7. Risk Analysis Determine how project risk is allocated under the contract. 8. Workload and Other Potential Projects Impact equipment, key personnel, logistics, bonding and financial capabilities.
  105. 105. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS Key Contract Clauses 1. Audit 2. Changes 3. Contractor Responsibilities 4. Delays 5. Differing Site/Changed Conditions 6. Dispute Resolution 12. Limitation of Liability 13. No Damages for Delay 14. Order of Precedence 15. Owner Responsibilities 16. Payments 17. Quantity Variations PROJECT MANAGEMENT 7. Force Majeure 8. Governing Law 9. Indemnification 10. Insurance 11. Late Completion Damages 18. Schedules 19. Suspension of Work 20. Termination 21. Time of the Essence/Time of Performance 22. Warranty
  106. 106. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS PROJECT MANAGEMENT
  107. 107. CONTRACTING FOR CAPITAL PROJECTSCONTRACTING FOR CAPITAL PROJECTS PROJECT MANAGEMENT
  108. 108. Total Cost Management Framework The sum of the practices and processes that an enterprise uses to manage the total life cycle cost investment in its portfolio of strategic assets. The practices are called Cost Engineering and the process through which the practices are applied is called Total Cost Management (TCM). Asset Management sub-process of Total Cost Management (TCM). Strategic Asset STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT Any physical or intellectual property that is of long term or ongoing value to an enterprise. Strategic assets may vary from industrial plants to transportation systems to software programs; essentially anything that an enterprise makes significant investments in can be considered a strategic asset. Each asset has a life cycle. For example, a building owner evaluates designs, builds, leases, maintains, renovates, and eventually demolishes a building during its life cycle―at each stage of the building’s life the owner makes cost investments in it that must be managed. PROJECT MANAGEMENT
  109. 109. In the building example, Strategic Asset Management is the process where the building owner measures the building’s operating performance, assesses improvement ideas, and conceives, evaluates, and initiates building investment projects. The Strategic Asset Management and Project Control sub-processes are linked in TCM. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT Project System The bridge or link between the owner’s Strategic Asset Management and Project Control processes. It is a subset of the Strategic Asset Management process that includes the steps for planning asset investments, implementing investment decisions, and then measuring project system and asset performance. PROJECT MANAGEMENT
  110. 110. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT PROJECT MANAGEMENT Levels of Goals/Plans and their Importance
  111. 111. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT PROJECT MANAGEMENT The Total Cost Management Process
  112. 112. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT PROJECT MANAGEMENT The Strategic Asset Management Process
  113. 113. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT PROJECT MANAGEMENT
  114. 114. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT The asset owner performs the following steps for each asset in their portfolio, and for their project system. 1. Performance Measurement Measurements (e.g., safety, cost, operability, etc.) are taken of how well existing assets and the project system is performing. 2. Performance Assessment Performance measurements of assets and the project system are compared to PROJECT MANAGEMENT Performance measurements of assets and the project system are compared to strategic plans. 3. Planning Considering the enterprise’s objectives and requirements, asset portfolio and project system improvement ideas are conceptualized, evaluated, and converted into plans for investing resources in new or improved assets or project systems. 4. Implementation Investment plans and requirements are communicated to and executed by project teams.
  115. 115. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT Asset and Project System Performance Measurement 1. Asset performance measurement Safety Cost Quality Operational efficiency Resource consumption (e.g., materials, labor, energy, etc.) PROJECT MANAGEMENT Resource consumption (e.g., materials, labor, energy, etc.) 2. Project system performance measurement Safety Cost Quality Schedule
  116. 116. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT Asset Planning Owner identifies asset investment and Project System options, defines and evaluates them, and decides upon which options to move. Investment options identification step, finds ways to improve asset or Project System performance. Implementation Based upon the decision process to implement an asset or Project System improvement idea Planning focus on developing the technical scope and execution plans PROJECT MANAGEMENT Planning focus on developing the technical scope and execution plans Formal documentation inclusive of budget and operating cost should be added to the capital budget During implementation, the asset is reviewed continually on its technical scope and execution plan Project definition is also known as the front-end loading (FEL) phase With good FEL, late changes in scope are minimal At completion of FEL, project has a detailed budget and schedule that serve as the basis for project control during execution
  117. 117. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT Application - Capital or Fixed Assets Includes items such as manufacturing plants and equipment, buildings, roads, utilities, and similar items that are not easily moved and have significant-useful lifespans Generally created, modified and retired through a project process List of opportunities and challenges identified by strategic planning is long Review improving technology against plans, basis and PROJECT MANAGEMENT Review improving technology against plans, basis and assumptions Process application is reviewed against estimating, historical data, schedule, risk, value engineering and then results in the decision analysis Documentation and decision analysis are key to the process
  118. 118. STRATEGIC ASSET MANAGEMENTSTRATEGIC ASSET MANAGEMENT Application - Product Include such as items as manufactured goods and similar items that have a limited useful lifespan Products are created through an ongoing, discrete or continuous manufacturing or production process, rather than a project process Teams should develop a flow chart of business operations that reviews flow of all backgrounds PROJECT MANAGEMENT backgrounds Process for products is similar to capital planning Application—Software Difficult to classify software as either a capital asset or product May or may not have a limited-useful lifespan May not be fixed depending on installation in a particular device Software estimates deal with configuration and coding activities versus construction or actual assemblies
  119. 119. Change Management Overview Projects have always involved change. However, they tend to have varying degrees of change management approaches. Change management is the process for identifying, resolving, reporting, and administering changes to a project that affects its scope, cost, or schedule. Change management and control has proven to be an essential part of controlling a project and is critical to the project team’s ability to successfully manage the work CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE project and is critical to the project team’s ability to successfully manage the work effort. The change management methods, if appropriately applied, will more clearly identify project change the degree of change impact on risk, and the potential consequences. Successful application of these methods will save money and minimize the effects of negative events identified through the change management process. PROJECT MANAGEMENT
  120. 120. CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE PROJECT MANAGEMENT TCM Process Map for Change Management
  121. 121. CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE PROJECT MANAGEMENT Project Change Management Procedure Sample “30 days from notice to proceed”
  122. 122. CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE PROJECT MANAGEMENT Change Management Flow Chart – Contractor’s Perspective
  123. 123. CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE Project Variance Notice (PVN)/Change Request The form is a summary level document and should be supplemented with any additional information needed to understand and justify the variance. 1. Section 1: “Title” 2. Section 2: “Change Information” Assign a sequential number to the PVN, log it into the change register. 3. Section 3: “Approvals” PROJECT MANAGEMENT 4. Section 4: ”Distribution” The PCM/CCM, or project controls person, will check the appropriate blocks and arrange for distribution. PVN Review Meeting The contractor project manager will conduct periodic PVN review meetings to keep the project team fully informed of the status of each new and pending variance. 1. Periodic Internal Review, weekly 2. Special Internal Review, impact which cannot wait for the periodic meeting. 3. Client Review. Microsoft Office Word 97 - 2003 Document
  124. 124. CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE Client Change Procedure 1. Change Request i. Any variance is to be processed into a PVN and change request. ii. 3 working days approval. iii. The contractor will prepare an order of magnitude analysis. iv. The client will have a reasonable period to approve or reject any change PROJECT MANAGEMENT iv. The client will have a reasonable period to approve or reject any change request. v. The client may respond as follows: a) Reject the proposed change request b) Approve the proposed change request immediately as a change order. c) Direct that a more detailed analysis of the change be made and that it be resubmitted as a change proposal.
  125. 125. CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE 2. Change Proposal i. Upon request by the client, the contractor will prepare a change proposal. ii. The client shall bear the cost of preparing any change proposal. iii. The client shall have a reasonable period of time to approve or reject any change proposal. iv. The client may respond as follows: a) Reject the change proposal. PROJECT MANAGEMENT a) Reject the change proposal. b) Approve the change proposal as a change order. Change Order Approved change request or a change proposal – by client. Officially and Written.
  126. 126. CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE Contractor Internal Change Procedure This procedure is not dependent upon contract type, and should be followed for all projects: 1. Project Manager’s Evaluation 2. Reject the PVN 3. Approve the PVN Disputed Change PROJECT MANAGEMENT Disputed Change For any change, the contractor project manager must perform the following: 1. Consult with the contract and legal departments. 2. Explicitly follow the contractual change procedure and associated change management protocols. 3. Dispute the change in writing. 4. Receive written instruction from the client defining the course of action. 5. Maintain separate and complete records of the time spent
  127. 127. CHANGE MANAGEMENT PRACTICAL GUIDECHANGE MANAGEMENT PRACTICAL GUIDE Change Register The contractor will maintain a change register containing all PVNs, change requests. Logs will include the PVN number, the change request, change proposal The contractor will issue the change register to the client as specified in the contract. Pending Change Order Each pending change order is to be maintained in a change log. The cost of the pending change must be considered in the forecast. PROJECT MANAGEMENT The cost of the pending change must be considered in the forecast. The detailed cost distribution for the change should be tracked separately. When approved by the client, the current budget and revenue is to be updated. Change Order Identification Identify each change order consecutively, using a three character numeric block. Note that more than one variance may be included in a single change order. If there is a client change order numbering convention, it should be cross referenced to the contractor character number system.
  128. 128. Changes/Variations A frequent occurrence on virtually all contracts is change/variation. It is incumbent upon both the owner/employer and the contractor to establish formal systems to identify changes/variations as soon as they arise and to estimate and negotiate the full scope, time, cost, and impact of the change/variation as quickly as possible. All such elements of changes/variations should be dealt with as promptly as possible OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES in order to avoid later disputes. PROJECT MANAGEMENT
  129. 129. Contract Claims Frequently, disagreements over contract requirements arise, which cannot be resolved through the change/variation order process. Typically, such disputes are referred to under the rubric of a claim. Many design and construction contracts have clauses that address disputes or claims and the notices required in order to properly assert a dispute or claim. Claims, like changes/variations, should be addressed promptly and resolved in OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Claims, like changes/variations, should be addressed promptly and resolved in accordance with the terms of the contract. PROJECT MANAGEMENT
  130. 130. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Claim Change/Variation Order A written demand or assertion by one of the contracting parties seeking, as a matter of legal right, payment of additional money, adjustment to the time of performance and/or some other change/variation to the terms of the contract, arising under or A directive from the owner/employer, or their representative, to the contractor directing him or her to perform work differently or perform different work than contracted. PROJECT MANAGEMENT related to the contract. “Requests for additional time and/or money”
  131. 131. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Universe of Claims There are only 11 types of claims in most contracts ….. As per causes! 1. Owner/Employer Directed Changes/Variations 2. Constructive Changes/Variations 3. Differing Site Conditions/Unforeseeable Site Conditions 4. Directed Suspension of Work 5. Constructive Suspension of Work PROJECT MANAGEMENT 5. Constructive Suspension of Work 6. Force Majeure 7. Delay 8. Directed Acceleration 9. Constructive Acceleration 10. Termination for Convenience 11. Termination for Default
  132. 132. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Directed Changes Resulting from owner/employer directed change/variation. Involving a dispute over the time, cost and/or impact. Bilaterally or Unilaterally Constructive Changes Resulting from owner unintended change that requires the contractor to do more than is required by the contract. Results in additional cost or time being incurred. Comments on shop drawing submittals or Ambiguous contract requirements. PROJECT MANAGEMENT requirements. Differing Site Conditions Encounters with latent (hidden) physical conditions at the site differing materially from the conditions indicated in the contract documents. a) Type 1: Latent (hidden) physical conditions at the site is different (Rock, subsurface water, and Buried pipes). b) Type 2: Unknown physical conditions at the site (Archaeological or paleontological finds). c) Type 3: Material unexpected encounters with hazardous or toxic materials (Presence of waste oil deposit).
  133. 133. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Directed Suspension of Work An owner directive to stop some or all of the work of the project for a limited period of time. The contractor is performing the work in an obviously unsafe manner, otherwise the contractor can claim. Constructive Suspension of Work Accidental or unintended work stoppage caused by owner. Delayed approval of shop drawings or issuance of changes/variations or delivery of owner/employer furnished items. Unforeseeable events caused by third parties or acts of God. Beyond the PROJECT MANAGEMENT Force Majeure Unforeseeable events caused by third parties or acts of God. Beyond the control of both parties. Fires, Floods. Earthquakes, Tsunamis or Acts of war or terrorism Delay An impact to the contractually specified completion date or the adjusted contract completion date (7 types of delay on projects). Most contracts deal with the following 4 types of delays. a) Excusable, Non-Compensable Delay (Third party/FM), No Cost & NO LD’s b) Excusable, Compensable Delay (Owner), time extension ok. c) Inexcusable Delay (Contractor), Make up be him or LD’s d) Concurrent Delay
  134. 134. Time Extension & Cost & NO LD’s Case B: Contractor Delay Employer Delay OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Time Extension only due delays out of parties control Case A: Contractor Delay Employer Delay Others Concurrent Delay / Overlapping delay NO Time extension & LD’s & NO LD’s Case C: Time Extension & Cost For Employer’s delays portion only Case D: Contractor Delay Employer Delay Others Employer Delay Others Contractor Delay Employer Delay Others PROJECT MANAGEMENT
  135. 135. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Directed Acceleration Owner direct the contractor to complete earlier in order to maintain a completion date despite an acknowledged delay. Voluntary acceleration Constructive Acceleration Inadvertent owner action or failure to act, which results in a contractor being required to complete earlier than required. Termination for Convenience Owner action to end work in whole or in part. Termination for PROJECT MANAGEMENT Termination for Default End work due to a material breach of the contract. Claims Categorize Contractual Claims Extra- Contractual Claims Ex gratia Claims Have a basis in the contract itself where provision can be quoted giving rise to entitlement These claims have no basis in the contract but entitlement stems from the governing law Ex gratia (“Out of Kindness”) claims are those where a contractor is seeking something more tangible than sympathy.
  136. 136. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Late Completion Damages The owner/employer has the right to assess and collect damages for late completion of the work caused solely by the contractor without any owner/employer involvement. a) Actual Damages: The owner/employer as the claimant would have to keep careful track of all actual damages where incurred. Mutually waive. b) Liquidated Damages: Stipulated amounts, usually on a daily basis, agreed to at the time the contract is executed. Not need to be proven. False or If a claim can be proven to be false or fraudulent as defined in various Owner/Employer Claims; 3 types of claims PROJECT MANAGEMENT False or Fraudulent Claims If a claim can be proven to be false or fraudulent as defined in various statutes, recovery may include restitution, civil penalties, costs, punitive damages and attorney’s fees. Design Deficiency or Standard of Care Claims The basis for many contractor claims against owners/employers lies in the deficient performance of the Architect/Engineer (A/E). In turn, some owners/employers seek recovery from the A/E for the damages the contractor may recover from the owner/employer. Consequential Damages Sometimes called Special Damages, are damages that arise as a result of the failure of the owner/employer or the contractor to live up to their obligations under the contract.
  137. 137. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Burden of Proof The basic equation of a successful claim is summarized as follows: 1. Notice Formal, or sometimes informal (e.g. constructive notice) Communication from one party that potentially will be seeking time and/or cost relief for an issue that has arisen. 2. Liability/Entitlement PROJECT MANAGEMENT An event or circumstance has occurred during project performance such as a change/variation, delay or differing site condition. 3. Causation The event or circumstance such as some portion of the work is revised and performed differently than originally planned and work has to be re-sequenced as a result. 4. Damages /Quantum The work costs more and/or takes longer than planned.
  138. 138. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Damages 1. Direct Costs 2. Indirect Costs a. Field office overhead b. Home office overhead 3. Delay Costs 4. Impact Costs PROJECT MANAGEMENT 5. Other Contractor Damages 6. Other Owner/Employer Damages
  139. 139. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Claims and Project Delivery Methods 1. Unit Price, change in the number of units installed 2. Design-Bid-Build improper design, lumpsum 3. Design-Build, ambiguities in contract language 4. Fast Tack Construction, coordinate the interfaces between the multiple contracts 5. Multiple Prime Construction, multiple lots, coordination 6. Construction Management at Risk (CM@R) PROJECT MANAGEMENT 6. Construction Management at Risk (CM@R) 7. Alliance Contracting/Integrated Project Delivery (IPD) 8. Public Private Partnership (P3)
  140. 140. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Analysis of a claim 1 2 3 4 Entitlement and Causation Analysis Delay Analysis Damage Analysis Settlement Negotiations Complete the analysis,Baseline and updatedIdentify issues, evaluate PROJECT MANAGEMENT Determine costs and calculate damages Complete the analysis, negotiate settlement with the other party, use an independent mediator or third- party-neutral. Baseline and updated schedules, compare as-planned, updates and as-built, determine delays, associate claim issues, perform a detailed analysis, and Identify the party responsible for the delay(s). Identify issues, evaluate all relevant contract language, establish issue files, analyze issues, determine potential for contractual entitlement, magnitude, and request additional information.
  141. 141. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES Dispute Resolution NegotiationNegotiation MediationMediation ArbitrationArbitration PROJECT MANAGEMENT LitigationLitigation AlternativeAlternative DisputeDispute ResolutionResolution
  142. 142. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES 1. Negotiation Between project teams or elevated in both the owner’s and the contractor’s organizations. The concept is to discuss the disputed issue face-to face and mutually arrive at an acceptable solution. 2. Mediation A structured negotiation between the parties utilizing the services of an outside, PROJECT MANAGEMENT voluntary, neutral facilitator (the mediator). The mediator’s only power is the power of persuasion. 3. Arbitration: More formalized procedure by an outside organization operating under a national/international set of rules. There may be a single arbitrator or a panel appointed by one of these organizations. Arbitrator’s ruling is enforceable at law in a court of competent jurisdiction.
  143. 143. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES 4. Litigation: A formal lawsuit in federal court according to contract terms and under the rules of the jurisdiction. Lawsuits are time consuming, lengthy, and very expensive. The outcome may rest more on legal technicalities than on fact or circumstance. A party submitting a dispute to litigation retains no control over process or outcome. PROJECT MANAGEMENT 5. Alternative Dispute Resolution There are numerous other forms of Alternative Dispute Resolution (ADR) available to the parties involved in a dispute, Many are voluntary and need not be mandated by contract.
  144. 144. OVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTESOVERVIEW OF CONSTRUCTION CLAIMS AND DISPUTES PROJECT MANAGEMENT Dispute Resolution Staircase
  145. 145. 1. Financial & Cash Flow Analysis 2. Practical Corporate Investment Decision-Making Guide 3. Statistics & Probability 4. Optimization 5. Risk Management Fundamentals ECONOMICECONOMIC ANALYSIS, STATISTICS, PROBABILITY AND RISKANALYSIS, STATISTICS, PROBABILITY AND RISK 5. Risk Management Fundamentals 6. Risk Management Practical Guide 7. Total Cost Management Overview 8. The International System of Units (SI) PROJECT MANAGEMENT
  146. 146. THANK YOU PROJECT MANAGEMENT

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