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Project Management

Delivering the contract
Realisation of the proposal


• The contract has been signed
• Start dates and completion dates are
  agreed
• The whole project now moves into the
  “Realisation” stage


Conception     Development            Realisation
The Guggenheim Museum, Bilbao Frank Gehry




Conception           Development        Realisation
The building design process v. project management




Conception              Development              Realisation



      Design process: tails off on realisation


                                                   Project
 Contractor appointed to organise                management
 the realisation stage of the
 project and is responsible for the
 project management
The “Project”


• There may be two projects running in
  parallel:
  – The entire design project, managed by the
    architect/professional advisor:
    • Completing and delivering the design
  – The realisation project managed by the
    contractor:
    • Completing and delivering the building
  – Sometimes the design project finishes
    completely at the end of the development
    stage
Managing the design project


•   The architect’s responsibility during
    the realisation phase of the design
    project is to ensure two things:
    1. That what the contractor delivers is what
       the employer expects-the contract is met
    2. Where that cannot be done, that the
       employer agrees any changes which
       have to be made
      •   Where the design project is terminated at the
          end of the development stage, there may be
          no professional protection for the employer.
Managing the building project


• This is the contractor’s responsibility.
  He/she has to manage
  – Different trades
  – Delivery and securing of materials and
    prefabricated elements (windows,
    plumbing etc)
  – Site security and safety
  – Payment of suppliers and sub-contractors
  – Testing of materials, as required by the
    contract
  – Agreeing changes with the supervising
    architect
Project management can go wrong…
Project tasks


• Every building project is built up of
  many tasks.
• Some of these tasks may be critical in
  that other tasks cannot be
  started/completed before they are:
  – Walls can’t be plastered until basic
    electrical wiring is installed and completed
  – Brick laying cannot start until foundations
    are finished and cured to full strength
  – Internal decorations can’t start until the
    building fabric is dry.
Defining tasks


• The project is broken into tasks and sub
  tasks
• Dependency of tasks is established
  (task B can’t start until task A is
  finished, task C can happen at any time
  etc. )
• Estimated duration of tasks is calculated
• A bar chart or GANT chart of the tasks
  is drawn up
GANT charting

• Each task is a horizontal bar
• Length of bar = time to complete task
• The beginning and end of the chart are
  the start and finish dates for the building
  project
GANT chart for project planning


• The contractor knows the chart must fit
  into the contract time.
• Different tasks can be tweaked to
  shorten the overall project time
  – If a critical task looks like it might take one
    week too long, the contractor can allocate
    more resources to it to speed it up
  – If a non critical task looks like it is
    consuming resources needed by a critical
    task, it can be moved to a different time
GANT chart for project monitoring


• Once the project is underway a parallel
  chart is drawn showing actual progress
• A comparison between actual and
  planned progress will form the basis of
  all site meetings with the architect. This
  will give early warning of problems.
• The management of the building project
  is entirely the responsibility of the
  contractor but he/she is obliged to
  demonstrate the state of progress of the
  project to the employer.
The architect’s project management role


• The supervising architect carries out
  three fundamental project management
  roles
  – Confirming all works are in accordance
    with the contract documents
  – Authorising modifications from the contract
    documents, with the employer’s agreement
  – Authorising stage payments to the
    contractor
Confirming works


• The architect will visit the site regularly,
  with the contractor’s permission
• During those visits, completed works
  are inspected. If they are not in
  accordance with the contract, the
  architect will condemn them. It is the
  contractor’s responsibility to replace the
  works as necessary
Modifications


• Things always change
  –   Difficult ground conditions are discovered
  –   Goods supplier goes bankrupt
  –   Employer’s requirements change
  –   New technology becomes available
• Changes must only happen:
  – with the employer’s and the contractor’s
    agreement
  – With the changes fully priced, in accordance with
    rules agreed in the contract
• The Architect issues formal instructions
  confirming these agreed changes
Stage payments


• The contractor is paid in stages in
  arrears for completed work
• The architect visits the site to confirm
  that the work is complete, to confirm the
  value of the work, and then issues a
  certificate authorising payment
• The employer is contractually
  committed to pay the value of each
  certificate, less a retention amount
  (usually 10%), the “retention fund”
Practical completion


• On “practical completion” the architect
  confirms the works are substantially complete
  and the building is handed over to the
  employer
• Half the retention fund is paid to the
  contractor and the “defects liability period”
  commences (usually 6 months)
• At the end of this period a “snagging list” of
  outstanding work and discovered defects is
  given to the contractor who must correct them
  before the final certificate of completion is
  issued and the remainder of the retention
  fund is released. The contract is now
  complete.
Management contract: very large projects




  Conception           Development            Realisation




Management                          Project
contractor appointed              management
at development stage
to coordinate
specialist suppliers
and contractors
Management really big projects: Olympics 2012
Many sites, many designers, many builders, many clients,
absolutely fixed deadline




                                                                 July 27, 2012
 Conception              Development              Realisation




                          Project
                        management
Nothing is more complex than the Olympics




Source: London 2012
Summary


• Contracts rarely run as smoothly as in theory
  – Building works are too unpredictable
  – The amount of work on the snagging list is not
    worth 5% to the contractor so he never does it
  – Agreement cannot always be achieved on who is
    responsible for a defect, is it the contractor, the
    designer, a nominated sub-contractor
• However, if you know how a project should
  run, you have a good chance of managing
  the project in reality.

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Project management

  • 2. Realisation of the proposal • The contract has been signed • Start dates and completion dates are agreed • The whole project now moves into the “Realisation” stage Conception Development Realisation
  • 3. The Guggenheim Museum, Bilbao Frank Gehry Conception Development Realisation
  • 4. The building design process v. project management Conception Development Realisation Design process: tails off on realisation Project Contractor appointed to organise management the realisation stage of the project and is responsible for the project management
  • 5. The “Project” • There may be two projects running in parallel: – The entire design project, managed by the architect/professional advisor: • Completing and delivering the design – The realisation project managed by the contractor: • Completing and delivering the building – Sometimes the design project finishes completely at the end of the development stage
  • 6. Managing the design project • The architect’s responsibility during the realisation phase of the design project is to ensure two things: 1. That what the contractor delivers is what the employer expects-the contract is met 2. Where that cannot be done, that the employer agrees any changes which have to be made • Where the design project is terminated at the end of the development stage, there may be no professional protection for the employer.
  • 7. Managing the building project • This is the contractor’s responsibility. He/she has to manage – Different trades – Delivery and securing of materials and prefabricated elements (windows, plumbing etc) – Site security and safety – Payment of suppliers and sub-contractors – Testing of materials, as required by the contract – Agreeing changes with the supervising architect
  • 9. Project tasks • Every building project is built up of many tasks. • Some of these tasks may be critical in that other tasks cannot be started/completed before they are: – Walls can’t be plastered until basic electrical wiring is installed and completed – Brick laying cannot start until foundations are finished and cured to full strength – Internal decorations can’t start until the building fabric is dry.
  • 10. Defining tasks • The project is broken into tasks and sub tasks • Dependency of tasks is established (task B can’t start until task A is finished, task C can happen at any time etc. ) • Estimated duration of tasks is calculated • A bar chart or GANT chart of the tasks is drawn up
  • 11. GANT charting • Each task is a horizontal bar • Length of bar = time to complete task • The beginning and end of the chart are the start and finish dates for the building project
  • 12. GANT chart for project planning • The contractor knows the chart must fit into the contract time. • Different tasks can be tweaked to shorten the overall project time – If a critical task looks like it might take one week too long, the contractor can allocate more resources to it to speed it up – If a non critical task looks like it is consuming resources needed by a critical task, it can be moved to a different time
  • 13. GANT chart for project monitoring • Once the project is underway a parallel chart is drawn showing actual progress • A comparison between actual and planned progress will form the basis of all site meetings with the architect. This will give early warning of problems. • The management of the building project is entirely the responsibility of the contractor but he/she is obliged to demonstrate the state of progress of the project to the employer.
  • 14. The architect’s project management role • The supervising architect carries out three fundamental project management roles – Confirming all works are in accordance with the contract documents – Authorising modifications from the contract documents, with the employer’s agreement – Authorising stage payments to the contractor
  • 15. Confirming works • The architect will visit the site regularly, with the contractor’s permission • During those visits, completed works are inspected. If they are not in accordance with the contract, the architect will condemn them. It is the contractor’s responsibility to replace the works as necessary
  • 16. Modifications • Things always change – Difficult ground conditions are discovered – Goods supplier goes bankrupt – Employer’s requirements change – New technology becomes available • Changes must only happen: – with the employer’s and the contractor’s agreement – With the changes fully priced, in accordance with rules agreed in the contract • The Architect issues formal instructions confirming these agreed changes
  • 17. Stage payments • The contractor is paid in stages in arrears for completed work • The architect visits the site to confirm that the work is complete, to confirm the value of the work, and then issues a certificate authorising payment • The employer is contractually committed to pay the value of each certificate, less a retention amount (usually 10%), the “retention fund”
  • 18. Practical completion • On “practical completion” the architect confirms the works are substantially complete and the building is handed over to the employer • Half the retention fund is paid to the contractor and the “defects liability period” commences (usually 6 months) • At the end of this period a “snagging list” of outstanding work and discovered defects is given to the contractor who must correct them before the final certificate of completion is issued and the remainder of the retention fund is released. The contract is now complete.
  • 19. Management contract: very large projects Conception Development Realisation Management Project contractor appointed management at development stage to coordinate specialist suppliers and contractors
  • 20. Management really big projects: Olympics 2012 Many sites, many designers, many builders, many clients, absolutely fixed deadline July 27, 2012 Conception Development Realisation Project management
  • 21. Nothing is more complex than the Olympics Source: London 2012
  • 22. Summary • Contracts rarely run as smoothly as in theory – Building works are too unpredictable – The amount of work on the snagging list is not worth 5% to the contractor so he never does it – Agreement cannot always be achieved on who is responsible for a defect, is it the contractor, the designer, a nominated sub-contractor • However, if you know how a project should run, you have a good chance of managing the project in reality.