Construction Project Management 1

Week 22-1
(lecture 2)

Project Life Cycle

 Project

In the previous lecture, we have look at what is a project. This

lecture, another important idea that will be introduce in this lecture
is Project Life Cycle

Last Updated:8 September 2

2017
 Project Life Cycle
PMBOK states: .because projects are unique and involve a
certain degree of risk, companies performing projects will generally
subdivide their projects into several project phases to provide
better management control. Collectively these project phases are
called the project life-cycle

Let have a look at a famous brand name life cycle :

Apple Life Cycle

PMBOK Project Management Body of Knowledge. Book available in the library.

Last Updated:8 September 3

2017
Apple Life Cycle
 Project Life Cycle
The Association for Project Management defines Project Life Cycle as:

A sequence of defined stages over the full duration of a project.

PMBOK suggests that project life cycles generally defines:

What technical work should be done during each phase of the life cycle.

Who should be involved in each phase of the life cycle.

Last Updated:8 September 5

2017
 Project Life Cycle
PMBOK suggests that most project life cycle descriptions share the following
characteristics:

Cost and staffing levels are low at the start, higher toward the end, and
drop rapidly as the project draws to a conclusion.

The probability of successfully completing the project is lowest, and hence

risk and uncertainty are highest, at the start of the project.

The ability of the stakeholders to influence the final characteristics of the

projects product and its final cost is highest at the start and gets
progressively lower as the project continues.

Last Updated:8 September 6

2017
 PROJECT LIFE CYCLE
All project go through various life stages or phases ie from
birth of the project to the completion and handover stage
of the project. Or if you take it even further to the last stage
demolition of the old project and a new project or structure
been built in its place.

There are many alternative views of looking at a project life

cycle. 2 views are presented here.

In the next 3 slides, we will see three (3) possible views of the
stages a project goes through (eg for a butterfly pupae stage
to larvae stage & finally to butterfly stage)
Last Updated:8 September 7
2017
 PROJECT LIFE CYCLE View 1
Inception Feasibility

Strategy

Pre-
construction

Construction

Engineering services
commissioning

Source : CIOB

Completion/handover,
client occupation &
Operation

Post-
completion
review

Time Scale ? From a few weeks to 10+ years

Demolition

8 September 2017 8
Last Updated:8 September 2017 LMS SEGi education group
Not to Scale 8
 TIME SCALE AND COST IN THE CONTEXT OF THE PROJECT LIFE CYCLE
Inception Feasibility
Before Construction
Phase
Strategy

Pre-
construction

Construction

Engineering services
commissioning

Construction
Phase Completion/handover,
client occupation &
Operation

Post-
completion
review

Time Scale ? From a few weeks to 10+ years

Demolition

Last Updated:8 September 2017 LMS SEGi education group

Not to Scale 9
 Project Life Cycle View 2

1) Project Conception

2) Project Development

3) Project Realisation

4) Project Termination (Handover)

We use this view of the project life cycle to look at what are the
activities carried out in each of the stage.

Last Updated:8 September 10

2017
 1.0 Project Conception
(by the Client)

feasibility study to determine

is there a need ?
best way for that need to be met
end product specification (project brief)
how long and how much
who will do it - internal or external, or both
source of finance
management structure (at client)
Conceptualization of Project
 2.0 Project Development
(by the Client and Designers)
appointment of designers/consultants
Conceptual designs evaluation
detailed design (by consultants) to meet project brief
requirements, value engineering,
Obtained approval : permission of internal parties
and external authorities (called planning approval)
appointment of contractor via bidding process
Open, selective, 2 stage or negotiated tendering
appointment of supervisory team (by client &
consultant) & project management / site team (by
contractor)
 3.0 Project Realisation
(the Contractor)
turn design into reality - the doing it phase
progress management
financial control procedures
change management (scope creep may lead to
cost and time creep)
the effects of the unforeseen (project risk
register see lectures on risks)
 4.0 Project Termination
On project completion, handover to
Client/Consultants representatives
Its not over until all the paperwork and project
financial account are resolved and settled.
analysis of project management performance
did we complete to budget and to time
who performed well and who were the weak links
could our planning process have been better
what changed whilst the project was under way
Project Life Cycle View 3
 project
conception

project
development

realisation

termination
After Burke
Parties and Roles played in a Project
1.0 Parties in Project :
The Sponsor,
the Owner,
The Designers,
The Contractor,
Parties and Roles played in a Project
2.0 Project Roles :
The Sponsor as investors / financiers of
project,
The Owner as owner & operator of built
project,
The Designers Provision of design, supervision,
cost estimation, payment certification to
contractor and consulting services to the
owner/sponsor
The Contractor Build project according to
drawings by Designers
 Project Sponsor/ Project Director
1) The Sponsor is, or is a Responsibilities
senior representative of, Approve business case
the investment decision Ensure that it remains valid
taker. throughout project life
2) The Sponsor ensures that To terminate the project if it
the basis of project does not remain valid
approval is consistent with
their organisations Appoint by Owner
business aims. Authorise funding allocation
3) The Sponsor represents Approve project definition
the commitment of senior
management to the
project - this is
demonstrated by the
provision of organisation
resources (money, people,
time, equipment etc)
The Sponsor allocates funds - but that funding might
originate from a number of sources
 Project Manager representing the
Owner / Project Sponsor
Each project must have an
Project Manager.
The Project Manager
writes the project specification
defines the result, the timing
and how project completion
will be achieved.
champions the project to the
Sponsor
is accountable to the Sponsor
for the progress of the project
has day to day liaison with the
consultants and contractors
can be a committee
For consultants and contractors, the Owner is the Clients
Project Manager
Responsibilities
to produce the projects
business case (often the source
of the original idea), and seek
budget allocations from
Sponsor
to ensure the project is defined
in sufficient detail to enable
successful management
to establish progress reporting
procedures
to approve changes
to accept the result
 Project Manager
Each project has one project
manager (for each organisation
represented)
The Project Manager has a
contract with the Project
Owner.
The client will prepare the
details of the project in a
document called the Project
Definition/ Project
Specification/ Project Charter,
Project Brief, etc.. which states
what will be produced, when and
to what specification.
Responsibilities
to lead and direct the project
to produce the project definition
document
to ensure that all work is planned,
resourced and executed in
accordance with this definition
to ensure that progress management
systems are in place
to regularly report progress to the
Project Owner
to ensure the final result is accepted
by the Owner
to liaise with other project managers
 Project Roles
One organisation Two organisation
model model
The investment
Sponsor decision maker -
Sponsor NOT ALWAYS
THE SOURCE OF
FINANCE

Project Owner THE Clients

Owner
manager Proj. Mgr.

Project
Manager Project
The Project Mgr
Manager
doesnt exist in
People who
isolation contribute People who
to project contribute
to project

Note: Sponsor and Owner may be committees

 Project
Definition and Scope
 Project Definition
When a consultant receives a clients enquiry for a new project,
the clients requirements must be clearly set out and understood.
The consultants must know what they are designing and that what they
design must fit the clients requirements.
The contractor must know precisely for what it is tendering (scope given
by the consultant prepared tender document consisting of drawings, BoQ,
Specification, Conditions of Contract, etc..)
The client/customer must be clear what it expects to get for its money -
this applies equally to in-house projects
This definition may not be complete at first but will be
developed during discussion and negotiation(part of the
Development stage).
Project definition is a process which starts when the customer or
investor first conceives the idea of the project. It does not end
until the last piece of information has been filed to describe the
project in its finished as-built condition.
Lock - The Essentials of Project Management
The finished article is the customer specification
Project Definition
 Creating the Definition
The client should explain (and the consultant/contractor should seek
to understand) the needs and goals of the project and how it fits
into the clients overall business aims.
(Note : traditional method consultant; Design&Build method D&B
contractor)
The consultant/contractor should understand the clients quantified
objective -
the basic reason they are being hired is to help in some way to
raise profits and/or lower costs, even if advice alone is sought.
The client should prepare and agree (with the consultants/
contractors) a detailed specification of
what the client expects from the consultants/contractors,
when it is required, and
at what cost.
Specific objectives should be set.
Milestones and key dates should be established within the overall schedule.
The accompanying information should include all necessary
background information
Everything should be written down or recorded, even if the record states
things that appear obvious. This document is called the Project Brief, Project
Specification, Project Charter or Term of References (TOF)
It is essential to
ensure that the
specification is
precise and
comprehensive

The accompanying
information should include
all necessary background
Information

Everything should be
written down or recorded,
even if the record states
things that appear obvious.
 Project Scope or Scoping the Project

Scope related processes aim to translate client requirements into activities to

achieve the end result.
They aim to ensure that the project achieves the specification (not exceeds it or
falls short).
The scope of each partys contribution to the project must be defined.
In its simplest form, the scope of work required might be limited to supplying
a piece of hardware to a drawing supplied by a customer.
At the other end of the project spectrum, it might include the involvement of
the DBFO (Design-Build-Finance-Operate) company in designing, financing,
building and subsequently operating a project. This process might also include
commissioning, training, product support, guarantees etc
Scope management :-
the process required to ensure that the project includes all the work required,
and only the work required, to complete the project successfully. It is primarily
concerned with defining and controlling what is or is not included in the
project.
 Work Breakdown Structure
During scoping, the project manager :-
subdivides the major project activities into smaller, more manageable
components
this is a process known as Work Breakdown Structure (WBS)
a cascade of deliverables in which the overall product or objective of the
project is broken into sub-products, assemblages and components Burke
2003 quoting Turner 1993
WBS represents the logical and hierarchical decomposition of a projects
scope of work in order to:-
ensure that the full project scope and all the deliverables have been identified
provide a basis for estimating and planning time, resource and cost
provide a basis for designing the project organisational and reporting
structure
WBS should be developed top-down
the bottom level should be adequate for control and reporting purposes.

(More details on this topic can be found in the references available in the
library)
Using the WBS OBS link shown in the previous slide, we can then identify
the type of persons and skills required for the project.
WBS Work Breakdown Structure
OBS Organisation Breakdown Structure (eg project team organisation
structure)

WBS is breaking up a project into more manageable hierarchical smaller

components of work

Then allocating various the above smaller components of work or work

tasks/packages from the wbs to various team members in the project team
giving rise to the project team which is also the OBS for the project)
Linking WBS to OBS