PROJECT MANAGEMENT AND CONTROL

The Queen Elizabeth II Conference Centre, Westminster, London

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Project Management and Control

David W. J. Day

M MACMILLAN

C David W. J. Day 1994

All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission.

No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1 P 9HE

Any person who does any unauthorised act In relation to this publication may be liable to criminal prosecution and civil claims for damages.

First published 1994 by THE MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world

A catalogue record for this book is available from the British Library

Typeset by Richard Powell Editorial and Production Services, Baslngstoke, Hants RG22 4TX

ISBN 978-0-333-54243-9 ISBN 978-1-349-12097-0 (eBook) DOI 10.1007/978-1-349-12097-0

Contents

Frontispiece: The Queen Elizabeth II Conference Centre ii Preface xiii

Acknowledgements xv

1 The Projed Manager 1 1.1 Definition of project management 1 1.2 Historical background 1.3 The building industry today 2 1 .4 Design and management 2 1.5 Who should manage? 3 1.6 Education and training 4 1.7 The Project Manager at work 5 1.8 Personal relationships 8 1.9 Scope of service 9 1.10 Management proposals 9

2 The Client 2.1 Client knowledge of the building industry 2.2 Informed clients 2.3 Widening the client field 2.4 Experienced clients 2.5 Introduction of project management 2.6 Why a Project Manager? 2.7 In-house management 2.8 Management guides 2.9 Consultant project management services

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11 11 11 12 13 14

14

15 16 17

viii Contents

2.10 Client's organisation 17 2.11 Client's objectives 19 2.12 Client's priorities 20 2.13 Building user/project team relationship 21 2.14 Funding agencies 22 2.15 Collateral warranties 24 2.16 Client involvement 25 2.17 Project implementation plan 26 2.18 Management structures 27 2.19 Client involvement in team selection 28 2.20 Public relations 30 2.21 Political influences 31

3 The Brief 32 3.1 Introduction 32 3.2 Development of the Brief 32 3.3 Scope of the Brief 33 3.4 Format of the Brief 34 3.5 Preparing the Brief 34 3.6 Guidelines to the content of the Brief 36 3.7 Author of the Brief 36

4 The Project Team 39 4.1 Definition of the project team 39 4.2 The Project Manager's team 39 4.3 Support-team budget 40 4.4 Setting-up operation 41 4.5 Deputy Project Manager 42 4.6 Support-team duties 42 4.7 Support-team composition 43 4.8 Design-team appointments 45 4.9 Competitive bids 46 4.10 Selection criteria 47 4.11 Lead discipline 49 4.12 Selecting design-team members SO

4.13 Team-selection dilemmas 4.14 Client involvement 4.15 Terms of engagement 4.16 Location of the project team 4.17 Effect of a non-standard contract arrangement 4.18 Design co-ordination

5 The Design Stage 5.1 Traditional design start 5.2 PM involvement in design 5.3 Design-team introduction 5.4 Briefing the team 5.5 Design-stage planning 5.6 The plan of work 5.7 Feasibility studies 5.8 Adapting the plan of work 5.9 Design-team management 5.1 0 The design process 5.11 Specialist advisers 5.12 Services co-ordination 5.13 The design information required 5.14 Supplementary design-team activities

5.15 Type and form of contract 5.16 The PM's contract role 5.17 Cost checking 5.18 Reporting to the client 5.19 Evaluation and acceptance of the tender

6 The Construction Stage 6.1 PM's role in construction stage 6.2 Passive monitoring

6.3 Monitoring trends 6.4 Construction stage problems 6.5 A multiplicity of PMs 6.6 Pro-active involvement

Contents ix

50 51 54 55 55 57

58 58 58 59 60 61 62

63 64 64 65 67 68 69

70 71 72

73 74 74

75 75 75

77 78 80 80

x Contents

6.7 Meetings 85 6.8 Delegation of responsibility 85 6.9 Other interested personnel 85 6.1 0 Design progress 86 6.11 Complexity of problems 86 6.12 Sub-contract liquidation 87 6.13 Vandalism 89 6.14 Special measures 89 6.15 Enabling works 90 6.16 Site control 91

7 Cost Management 92 7.1 Old-style cost advice 92 7.2 Establishing cost control 92 7.3 Problematic cost areas 93 7.4 Reporting problematic areas 94 7.5 The quantifiable factors 95 7.6 Cost consultancy 96 7.7 Contingency management 97 7.8 Reliability of estimates 97 7.9 Total project cost 98 7.10 Early cost advice 98 7.11 Expenditure forecasts 99 7.12 The first estimate 100 7.13 Design-stage estimates 100 7.14 Cost checks 101 7.15 Contract documentation 103 7.16 Tenders 104 7.17 Construction stage 104 7.18 Cost reporting 105 7.19 Cost report cycle 106 7.20 Overall monitoring 107 7.21 Foreign currency 107

8 Time Management 8.1 Introduction

8.2 Traditional programming 8.3 Preliminary time planning

8.4 Strategic programmes 8.5 Strategic programmes (Phase II)

8.6 Design-team appointments

8.7 The design stage

8.8 Stages of design

8.9 Setting the design-stage programme

8.10 Programme monitoring

8.11 Tender stage

8.12 Construction stage

8.13 Testing and commissioning

8.14 Professional programmers

8.15 Programmes

8.16 Project programme

8.17 Target programmes

8.18 Short-term programmes

8.19 Limited-objective programme 8.20 Programmes in practice

9 Completion and Hand-over 9.1 Transition into usable facility 9.2 Defects liability

9.3 Testing and commissioning

9.4 Ongoing maintenance

9.5 Phased completion

9.6 Financial completion

9.7 The post mortem

10 Infonnation Technology 10.1 Introduction

10.2 General applications software

10.3 Purchasing software

Contents xi

109 109

109 111

111

113 114

115

116

118

118

119

120

120

120

121

122

123

123

124

124

126 126 127

128

128

130 132 132

134

134 134 138

xii Contents

10.4 The future of IT 138 10.5 living with IT 139 10.6 IT consultancy 140 10.7 Experienced users 141 10.8 System upgrade 141 10.9 Project-management packages 142 10.10 Networks 144 10.11 Small-project work-station 145 10.12 Selecting systems 146 10.13 Planned management of system 147 10.14 Using IT consultants 147 10.15 Administrative use 148 10.16 Senior management involvement 149 10.17 IT in use on the Queen Elizabeth "

Conference Centre 150 10.18 Financial control 151 10.19 Drawing register 151

Appendix: Project Implementation Plan:

Sir John Soane's Museum 155

Index 185

Preface

This book is based on my experience of project management as it evolved over more than 20 years. In the 1970s and 1980s Project Managers were normally appointed from the older generation, there being no formal training in what was then the new occupation. A long experience of the building industry was the only qualification; but even that gave no assurance of success. High-quality formal training of students of the right calibre now permits the appointment of able Project Managers into this high-stress occupation at a much younger age. I hope that this book will assist such readers in some small measure.

The book is structured so that each chapter deals primarily with one aspect of management only; these are the ingredients for the recipe. Each and every project is unique, with its own problems and objectives. This causes greater emphasis on the importance of some aspects, or ingredients, at the expense of others, so the relative importance of the tasks described in the various chapters will vary from project to project. Once the fundamentals of each step in project procurement are fully understood, it then becomes easier, and safer, to manipulate them to suit the needs of any project.

The appointment of Project Managers by experienced clients to their building projects is now almost universal. The scope of the duties and the delegated responsibilities that are now required is becoming wider. This in turn places a responsibility on each and every Project Manager to maintain a consistently high standard of service to clients, by keeping abreast of modern developments and improved management techniques.

September, 1993 David Day

xiii

Acknowledgements

I should like to express my gratitude to all those who have helped in the writing of this book.

My thanks to Jim Buchannan, Bernard Throp, Brian Rowntree and Roger Waterhouse for their constructive advice and assistance on many aspects of the book, which must have taken a great deal of their valuable time.

Thank you also to Peter Thornton, the Curator at the Sir John Soane's Museum, for permission to use the project plan.

Finally, a heartfelt thank-you to my wife Rita for the hours that she has put in typing and amending the numerous drafts and for her support when things did not go right.

xv