Contents

PM Milestone Project Management Templates

PM Milestone 7000 Project Management Templates

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The Project Manager 2 Business Expertise Technical Expertise Management Skills Leadership Qualities Effective Communication Capability

Developing Project Objectives and Execution Plan 4

Defining the Scope of Work 4

Minimizing Project Risks 6

Identifying Risks 8 Engineering Codes and Regulations Construction Site Conditions Labor Operations Financing Managing Risks

Coordination Procedures 19 Design Basis

Responsibility Determination Drawing, Specifications and Models Manufacturers' Drawings & Purchase Orders Scope of Work Changes Monitoring & Control Documents Distribution of Documents Correspondence Procedures Security

Effective project management for engineering/construction projects is essential in today's very demanding business environment. A successful project management approach requires the development of business skills and involves establishing controls and monitoring progress to ensure that the project meets the performance specification requirements and is completed on time and within budget. The purpose of this book is to provide the detailed information needed to properly manage engineering construction projects, both large and small.

THE PROJECT MANAGER

The Project Manager can be described by the activities he or she is responsible for and the skills which are required. The project manager may be employed by the owner, engineer or contractor, and is responsible for the overall direction and management of the project activity.

Typical activities of the project manager include initiation of the project, project scheduling, project start-up, project control, contractual strategies and financial planning. Theproject manager acts as the key catalyst to stimulate effective communication and coordination between design, procurement and construction activities. The project manager ensures that the project is completed within budget, on schedule and meets the technical and construction quality objectives.

To effectively implement a project, the manager should possess the following:

Expertise Expertise *Management Skills *Leadership Qualities

Communication Capability

Business Expertise. The Project Manager is essentially a "business man" and must ensure that the project is executed in strict accordance with the Project Objectives. In the majority of projects, the number-one project objective is Cost. On such projects, the technical details required and schedule considerations should be consistent with the budget for the project. It is vital that design and construe-

tion engineers execute their work with full realization of financial impact, and it is the responsibility of the Project Manager to ensure this "financial execution."

Business expertise can be divided into the following:

Control

2. Planning & Scheduling

3. Economic/Risk Analysis

4. Purchasing

5. Contract Management

6. Analytical Skills

The above work categories may be carried out by other specialists, but it is the Project Manager's responsibility to "'direct" these activities and ensure that the work quality is adequate.

Technical Expertise. The project manager should have a broad-based technical background to ensure that the project is properly staffed and that the client's objectives have been defined to enable the project to be completed with quality and "constructability" as objectives.

Management Skills. The project manager should have basic management skills including:

1. Good Decision Making

2. Competent Planning (Project Execution Plan)

3. Creative Organizing

4. Realistic Delegation

5. Follow Up on Delegation

6. Effective Communication

7. Adequate Common Sense

Leadership Qualities. An effective leader has the ability to bring about "people changes," and to persuade/motivate them to a work performance which they would not normally attempt. Good leadership qualities generally depend upon:

1. Liking People.

2. Being an Educator (With the use of "empathy")

3. Having an attitude for action

4. Desire to excel (To be "the best")

5. Experience (To determine "cause and effect")

6. Taking Risks (With appropriate analysis)

7. Sensitivity and Self Esteem

8. Being Honorable (Lack of trust is very "destructive")

9. Outstanding Leadership can lead to Inspiring Individuals 10. Patience and perseverance.

Effective Communication Capability. This is generally achieved with the following skills:

1. Understanding basic human behavior

2. Writing: structure, style, discipline

3. Reading: speed and retention

4. Speaking: eyes, hands, voice, presence

5. Listening: the "communication gap"

DEVELOPING PROJECT OBJECTIVES AND EXECUTION PLAN

In order to ensure that the project meets the performance specification and financial requirements of the client, it is important that specific qualifying objectives be established as soon as possible. The first part of defining the scope is to determine the division of responsibilities between the client, contractor and subcontractor. Figure 1-1 illustrates the responsibility determination which needs to be made for an engineering, procurement and construction project. It is important to include a design criteria and an abbreviated key date schedule when scoping the project. Schedule considerations are outlined in detail in Chapter 3.

DEFINING THE SCOPE OF WORK1

More than any other segment of the project documents, the scope of work is the key to a project's success. It must contain a precise description of the project, defining the proposed work as completely as possible. The scope of work must give company management, the project team, and the contractors, a clear picture of

'How to Manage Successful Construction Projects, Thomas W. Dickson. Reprinted from

Plant Engineering, March 27,1987. ©By Cahners Publishing Company.

Figure 1-1. Responsibility Determination for An Engineering and Construction Project

Activity Client Contractor Submntractor

1. Survey of Site Location and Soil, Contour & Elevation (Soil Report)

2. Site Preparation

2.1. Clearina

2.2. Fill

2.3. Removal of Obstruction

2.4. Excavation

3. Permits (Environmental/Regulatory)

4. Construction Utilities

4.1. Water

4.2. Steam

4.3. Air

4.4. Electric Power

5. Furnish Construction Temporary Facilities

5.1. Roadway, Railspur. and Docking Facilities for Receipt and Unloading of Materials

5.2. Securitv Service

5.3. Construction Parking

5.4. Access

5.5. Laydown Areas

5.6. Field Office

5.7. Warehouse

5.8. Camp Facilities (Overseas Location)

5.9. Temporary Design Office (for major

6. Design Engineers

6.1. Electrical Engineers

6.2. Mechanical Engineers

6.3. Piping

6.4. Process Enaineers

6.5. Civil/Structural Engineers

6.6. Architectural Engineers

6.7. Instrumentation

7. Purchasing

Activity Client Contractor Subcontractor

8. Expediting Purchase Equipment

9, Equipment Inspection

10. Transportation Management

11. Contracting

12. Start-up Engineering Commissioning

13. Spare Pans

14. Operating Manuals

15. Furnish & Install Charge & Materials

what is required of them, the services each will provide, and the type of support each can expect from the plant or the company.

The scope of work has a twofold function. It is an internal contract with the company's management on the project's objectives and the basis for prebid conferences with potential contractors. For this reason, the scope of work should be developed with input, review, and approval by company management, engineering, maintenance, and operations.

In addition, the scope of work is a public source document for prospective contractors that delineates construction details and the level of management required to perform the work. This section should, therefore, be written in a positive tone that will encourage successful contractors to become contributing members of the integrated project team. Regardless of the type of project, the scope of work must contain certain kinds of information (see accompanying Figure, "Defining the Scope of Work") Figure 1-2.

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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