CHAPTER 2 DEVELOPMENT AND ORGANIZATION OF PROJECTS

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1 CHAPTER 2 DEVELOPMENT AND ORGANIZATION OF PROJECTS Dr Nabil Elsawalhi Associate Professor of Construction Management 1

2 CHAPTER 2 1) THE LIFE CYCLE OF A CONSTR. PROJECT: 1.1:CONCEPT AND FEASIBILITY STUDIES: THE START Recognition of a need for a new facility Conceptual analyses Technical feasibility study Economic Feasibility study Environmental Impact Reports Selection of LOCATION is very important 2

3 Traditionally, these early stages are handled by the Owner alone, OR By the Owner working with consultants Knowledgeable of the most important factors Affecting the situation To some extent others are involved: A/E Design/constructors CM PM 3

4 1.2: ENGINEERING AND DESIGN: A) Preliminary Engineering and Design. - Arch. Concepts -Evaluation of technological process alternatives - Size and capacity decisions - Comparative economic studies studies Inputs from specialists are needed such as: geologists hydrologists ecologists 4

5 Review: Involve management External financing Regulatory bodies Zoning regulation Building procedures Licensing procedures Safety standards Environmental Impact B) Detailed engineering and Design 5

6 1.3: PROCUREMENT: Materials Equipment Manpower (contractor, subcontractor) 1.4: CONSTRUCTION: 1.5: START-UP AND IMPLEMENTATION: Industrial facilities 1.6: OPERATION AND UTILIZATION: 6

7 CHAPTER2: DEVELOPMENT AND ORGANIZATION OF PROJECTS Time Year 1 Year 2 Year 3 Phase 1. Concept and Feasibility studies 2. Engineering and design 3. Procurement 4. Construction 5. Start-up and implementation 6. Operation or Utilization FIGURE 2-1 The life cycle of a construction project 7

8 Part 1: CONSTRUCTION INDUSTRY AND PRACTICE BASIC MANAGEMENT ACTIVITIES Management theory identifies four essential management activities that must be accomplished in any successful organization. Organizations can be designed to best perform these according to the needs of a specific project. Scoping Clearly define desired project objectives. Planning Predetermine a course of action to achieve project objectives. Organizing Integrate individual, consultant and contractor efforts into an effective team. Controlling Monitor, influence, and direct achievement of project objectives throughout the performance phase. 8

9 Organizational concepts 1. Functional org. 2. Task force (project) org. 3. Matrix org. 9

10 Functional Organization Key Characteristics Project teams formed within the functional units. Nobody responsible for the entire project. Leadership occurs within functional units (expertise centers). Leadership belongs to technical experts 10

11 Strengths: High stability High professional standards Use latest technology Excellent corporate memory 11

12 Weakness Low adaptability Minimum appreciation of overall project objectives Overly grid operating rules Resistance to change Difficulty to developing well rounded project manager 12

13 13

14 Functional org 14

15 Project Organization Characteristics Project requiring major changes. Hence, a small, self sufficient and full time team is set up. The team leader is like an entrepreneur. Leader has full responsibility over the project. Functional units are stable, provide support to project teams. 15

16 Project Task Force Strengths: High adaptability High understanding to overall tasks Excellent team spirt Close personal relationships Responsive to new ideas 16

17 Project (task force) org 17

18 Weakness of task force Poor stability No corporate memory Own task is not clear No functional check for quality and standards 18

19 Matrix Organization A hybrid form that combines both some characteristics of functional and pure project organization forms. Project manager and functional managers share responsibility. Project manager decides what tasks will be done, and when they will be done. Functional manager decides who will work in the project and which technologies will be used. Members of the project team have two bosses 19

20 Characteristics of projects suitable for this organization structure : Integration of work done by different functional units is very important. Changes (instability) both inside and outside the company. Success does not depend on application of a narrow expertise 20

21 Strengths enables the use of all resources from all functional departments Single point accountability Customer interface clear Rapid reaction Duplication reduced Technology development Career development Disbanded easily Weaknesses Manager skill level high Competition for resources Employee recognition 21 Management cooperation required

22 Matrix org. 22