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PD 6079-4:2006 (Book) Project management - Guide to project management in the construction industry, 2006

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PD 6079-4:2006 (Book) Project management - Guide to project management in the construction industry, 2006

Contents [Go to Page]
Introduction 1
1 Scope 3
2 Normative references 3
3 Terms and definitions 4
4 Project management in the construction industry 6
4.1 General 6
4.2 The construction industry and construction industry projects 6
4.3 Projects and project management 9
5 The project management plan (PMP) 11
5.1 General 11
5.2 Quality management in projects 12
5.3 The components of a project management system 14
5.4 Project processes 16
5.5 Hierarchy of plans 20
6 Scope definition and scope-related processes 25
6.1 General 25
6.2 Inception - Client requirements and constraints 25
6.3 Stakeholder requirements and constraints 27
6.4 Feasibility evaluation and the project brief 27
6.5 Scope development and control 28
6.6 Work breakdown structure 28
6.7 Control of activities 30
6.8 Change management 30
6.9 Configuration management 31
7 Project organization structure 32
7.1 General 32
7.2 Internal client project organization 32
7.3 Project organization 36
7.4 Management authority 36
7.5 Communication 37
7.6 Contractual relationships 37
7.7 Resource management 37
8 The project lifecycle 37
8.1 General 37
8.2 Project phases 39
8.3 Control points 39
9 The product delivery process 40
9.1 General 40
9.2 Initiation 43
9.3 Feasibility 43
9.4 Outline design 43
9.5 Scheme design 44
9.6 Detailed design 45
9.7 Mobilization 45
9.8 Construction 46
9.9 Commissioning 46
9.10 Handover and completion 47
10 Regulatory and enabling processes 48
10.1 General 48
10.2 Design principles and materials standards 48
10.3 Client and project-specific third-party approval 49
10.4 Standard operating policies 49
10.5 Funding 49
10.6 Management of regulatory and enabling processes 50
11 Project management control processes 51
11.1 General 51
11.2 Management responsibility 52
11.3 Resource management 56
11.4 Time-related processes 58
11.5 Cost-related processes 60
11.6 Communication-related processes 61
11.7 Risk-related processes 63
11.8 Procurement-related processes 64
11.9 Project and process closure 66
11.10 Measurement, analysis and improvement 66
Foreword
Introduction [Go to Page]
Figure 1 Structure of PD 6079-4
1 Scope
2 Normative references
3 Terms and definitions [Go to Page]
3.1 client
3.2 change management
3.3 configuration management
3.4 construction management
3.5 contract administration
3.6 contract administrator
3.7 control point
3.8 framework agreement
3.9 operator
3.10 partnering
3.11 product
3.12 project
3.13 project control
3.14 project process
3.15 project schedule
3.16 project team
3.17 stakeholder
3.18 subproject
3.19 supplier
4 Project management in the construction industry [Go to Page]
4.1 General
4.2 The construction industry and construction industry projects [Go to Page]
4.2.1 Characteristics on the construction industry [Go to Page]
Table 1 Characteristics of the construction industry
Figure 2 The project management triangle
4.2.2 Custom and practice
4.2.3 The project environment [Go to Page]
Figure 3 Interaction between the immediate and wider project environments
4.3 Projects and project management [Go to Page]
4.3.1 Construction projects [Go to Page]
Figure 4 Projects and subprojects
4.3.2 The role of the project manager
4.3.3 Attributes of the project manager [Go to Page]
a) leadership;
b) technological understanding;
c) evaluation and decision-making skills;
d) people management skills;
e) systems design and maintenance skills;
f) planning and control skills;
g) financial awareness;
h) buying and general procurement skills;
i) communication skills;
j) negotiation skills;
k) contractual skills;
l) legal awareness;
m) character;
n) project team building skills;
o) relevant experience;
p) social and environmental awareness.
5 The project management plan (PMP) [Go to Page]
5.1 General [Go to Page]
Figure 5 Integrated management plan
5.2 Quality management in projects [Go to Page]
Figure 6 Project lifecycle and control points
5.3 The components of a project management system [Go to Page]
Figure 7 The components of a project management system
Figure 8 Variable and fixed project processes
5.4 Project processes [Go to Page]
Figure 9 Management processes
Figure 10 Project management plan
Figure 11 The time relationship between the product delivery processes and regulatory and enabling processes
5.5 Hierarchy of plans [Go to Page]
Figure 12 Hierarchy of management plans [Go to Page]
Table 2 Development of a typical contractor’s project management plan
Table 3 Content of a typical project management plan
6 Scope definition and scope-related processes [Go to Page]
6.1 General [Go to Page]
a) establish a requirement for the project, and the benefits the client expects to obtain by undertaking it;
b) establish the client’s brief, or set of requirements and constraints, for the project;
c) develop this brief into a scope and detailed specification;
d) break the overall scope down into packages for planning purposes; and
e) provide processes to allow change to be made to the scope in a controlled manner.
6.2 Inception - Client requirements and constraints [Go to Page]
a) the benefits sought from the project, e.g. return on investment, payback period, etc.;
b) the functional requirements expected of the product; and
c) the timetable for delivery of the product.
Figure 13 Scope definition [Go to Page]
1) the available budget, and any constraints associated with cash flow;
2) the available resources; and
3) constraints imposed by the client organization, such as operating processes or when the site will be available.
6.3 Stakeholder requirements and constraints [Go to Page]
a) all interested stakeholders (external and internal, positive or negative);
b) their concerns;
c) any legitimate requirements they might have relating to the project or product, and any constraints they might impose on the project or product; and
d) the influence they are likely to be able to exert.
6.4 Feasibility evaluation and the project brief [Go to Page]
a) the client’s requirements;
b) the client’s constraints;
c) legitimate stakeholder requirements; and
d) constraints imposed by stakeholders. [Go to Page]
1) the client;
2) stakeholders; and
3) regulatory processes.
6.5 Scope development and control
6.6 Work breakdown structure [Go to Page]
Figure 14 Example of a product breakdown structure
Figure 15 Example of a work breakdown structure
6.7 Control of activities
6.8 Change management [Go to Page]
a) managing changes to the project brief, project scope, and project management plan;
b) coordinating changes across interlinked project processes and resolving any conflicts;
c) procedures for documenting change;
d) continual improvement;
e) aspects of change affecting personnel;
f) operational factors; and
g) lifecycle maintenance.
6.9 Configuration management
7 Project organization structure [Go to Page]
7.1 General
7.2 Internal client project organization [Go to Page]
a) scope;
b) scope change;
c) budget approval;
d) schedule approval;
e) entering into contracts; and
f) payment approval.
1) setting and agreeing the project brief;
2) signing off scope, budget and schedule at control points;
3) approving and entering into contract with suppliers; and
4) making payments.
Figure 16 Interface between the client’s internal organization and the project organization
Figure 17 Example of a hierarchical functional organization
Figure 18 Example of a project-oriented organization
Figure 19 Example of a matrix organization
7.3 Project organization [Go to Page]
a) put in place a team to carry out each and all of the functions necessary to deliver the project in an efficient manner;
b) make best use of the capabilities of available resources;
c) be appropriate to the project scope, the size of the project team, local conditions and the processes employed;
d) facilitate the desired allocation of risk;
e) relate to the level of management input the client proposes to make into the project;
f) ensure the necessary expertise is available to attend to each of the project processes, particularly the regulatory processes; and
g) facilitate effective and efficient communication and cooperation between all participants in the project.
7.4 Management authority
7.5 Communication
7.6 Contractual relationships
7.7 Resource management
8 The project lifecycle [Go to Page]
8.1 General [Go to Page]
Figure 20 Changes in risk and commitment over the project lifecycle
8.2 Project phases [Go to Page]
a) conception;
b) feasibility;
c) realization;
d) operation (post-handover);
e) termination (post-handover).
8.3 Control points
9 The product delivery process [Go to Page]
9.1 General [Go to Page]
Figure 21 The product delivery process
Figure 22 Integration of construction project management processes
9.2 Initiation
9.3 Feasibility
9.4 Outline design
9.5 Scheme design
9.6 Detailed design
9.7 Mobilization
9.8 Construction
9.9 Commissioning
9.10 Handover and completion
10 Regulatory and enabling processes [Go to Page]
10.1 General
10.2 Design principles and materials standards [Go to Page]
10.2.1 Published standards
10.2.2 Deleterious materials
10.2.3 Sustainable materials
10.3 Client and project-specific third-party approval
10.4 Standard operating policies [Go to Page]
10.4.1 Client operating policies
10.4.2 Project team member operating policies
10.5 Funding
10.6 Management of regulatory and enabling processes [Go to Page]
10.6.1 General [Go to Page]
a) it should be properly identified;
b) its effect on the project should be assessed;
c) a plan should be formulated to deal with the matter;
d) the plan should be implemented;
e) implementation of the plan should be monitored to confirm that the planned objective is being achieved; and
f) where there is a departure from plan, control action should be taken to address the departure from plan.
10.6.2 Identification of issues
10.6.3 Planning
10.6.4 Monitoring
10.6.5 Control
10.6.6 Review
11 Project management control processes [Go to Page]
11.1 General [Go to Page]
a) management responsibility;
b) resource management;
c) scope-related processes (see Clause 6);
d) time-related processes;
e) cost-related processes including value management;
f) communication-related processes;
g) risk-related processes;
h) procurement-related processes;
i) project and process closure; and
j) measurement, analysis and improvement.
Figure 23 The project management control process
11.2 Management responsibility [Go to Page]
11.2.1 Management commitment [Go to Page]
a) provide input into the design of project processes;
b) create a culture for safety, sustainability and quality;
c) actively create a culture that motivates the project team toward achieving the project objectives; and
d) provide a commitment to team development.
11.2.2 Project process [Go to Page]
11.2.2.1 Process approach
11.2.2.2 System approach to management
11.2.2.3 Application of quality management principles through the project process
11.2.2.4 Customer focus
11.2.2.5 Continual improvement
11.2.2.6 Mutually beneficial supplier relationship
11.2.3 Management reviews and progress evaluation [Go to Page]
11.2.3.1 Management reviews
11.2.3.2 Progress evaluation [Go to Page]
a) Progress evaluations should be used: [Go to Page]
1) to assess the adequacy of the project management plan and how the work performed conforms to it;
2) to assess whether the project processes are running to plan, to identify any variances and the reasons for these variances, and to facilitate the planning of any necessary corrective action;
3) to evaluate how well the project processes are synchronized and interlinked;
4) to identify and evaluate activities and results that could adversely or favourably affect the achievement of the project objectives;
5) to obtain inputs for planning the remaining work in the project;
6) to facilitate communication; and
7) to drive process improvement in the project, by identifying deviations and changes in risks.
b) Progress evaluations should be planned. The planning should include: [Go to Page]
1) the preparation of a schedule of regular progress evaluations (for inclusion in the project management plan);
2) the assignment of responsibility for the management of individual progress evaluations;
3) the specification of the purpose, assessment requirements, processes and outputs for each progress evaluation;
4) the assignment of personnel to participate in the evaluation (e.g. the individuals responsible for the project processes and other interested parties);
5) ensuring that appropriate personnel from the project processes being evaluated are available to provide information for the review or to answer questions; and
6) ensuring that relevant information is prepared and is available for the evaluation (e.g. the project management plan).
c) Those performing the evaluations should: [Go to Page]
1) understand the purpose of the processes being evaluated, and their effect on the project quality management system;
2) examine relevant process inputs and outputs;
3) review the monitoring and measuring criteria being applied to the processes;
4) determine whether the processes are effective; and
5) look for potential improvements in process efficiencies.
d) Once a progress evaluation has been performed: [Go to Page]
1) the outputs of the evaluation should be assessed against the project’s objectives, to determine whether the performance of the project against the planned objectives is acceptable; and
2) responsibility should be assigned for actions resulting from the progress evaluation.
11.3 Resource management [Go to Page]
11.3.1 Resource-related processes [Go to Page]
11.3.1.1 General
11.3.1.2 Resource planning
11.3.1.3 Resource control
11.3.2 Personnel-related processes [Go to Page]
11.3.2.1 General
11.3.2.2 Leadership
11.3.2.3 Involvement of people
11.3.2.4 Allocation of personnel
11.4 Time-related processes [Go to Page]
11.4.1 General
11.4.2 Planning of activity dependencies
11.4.3 Estimation of durations
11.4.4 Schedule development
11.4.5 Schedule control
11.5 Cost-related processes [Go to Page]
11.5.1 General
11.5.2 Cost estimating
11.5.3 Budgeting
11.5.4 Cost management
11.5.5 Earned value analysis
11.6 Communication-related processes [Go to Page]
11.6.1 General
11.6.2 Communication planning
11.6.3 Information management [Go to Page]
11.6.3.1 General
11.6.3.2 General communication and correspondence
11.6.3.3 Drawings and specifications
11.6.3.4 Contracts and agreements
11.6.3.5 Meetings
11.6.4 Communication control
11.7 Risk-related processes [Go to Page]
11.7.1 General
11.7.2 Risk identification [Go to Page]
a) risk associated with the regulatory processes;
b) risks resulting from any proposed use of new technologies;
c) risks due to a failure of the project processes; and
d) risk associated with internal and external politics.
11.7.3 Risk assessment
11.7.4 Risk treatment
11.7.5 Risk control
11.8 Procurement-related processes [Go to Page]
11.8.1 General
11.8.2 Procurement planning
11.8.3 Supplier identification, evaluation and shortlisting
11.8.4 Documentation of purchasing requirements [Go to Page]
a) purchasing responsibility;
b) procurement route (tender, negotiation, etc.);
c) statutory procurement regulations (e.g. EU Procurement Directives [6]);
d) associated legal or regulatory matters;
e) bid evaluation procedure;
f) procurement timetable;
g) budget cost; and
h) required delivery dates for the product.
1) a description of the product’s characteristics (schedule of services in the case of a design consultant, drawings and specifications in the case of a contractor);
2) the timetable for delivery of the product;
3) requirements to interface with other suppliers;
4) appropriate quality management system requirements;
5) insurance requirements;
6) requirements for auditing (when necessary);
7) right of access to supplier premises;
8) the contract the supplier will be expected to enter into, including requirements for reporting, level of damages, etc.;
9) any warranties the supplier will be expected to provide;
10) any requirements for bonds or guarantees;
11) the tendering documents themselves;
12) liquidated damages, where applicable;
13) dispute resolution procedures.
11.9 Project and process closure
11.10 Measurement, analysis and improvement [Go to Page]
11.10.1 Improvement-related processes
11.10.2 Measurement and analysis
11.10.3 Continual improvement
Annex A (informative) Examples of project organization structures [Go to Page]
A.1 Traditional management structure [Go to Page]
Figure A.1 Traditional management structures - Lines of authority
Figure A.2 Traditional management structure - Contractual relationships
A.2 Design and build management structure [Go to Page]
Figure A.3 Design and build - Lines of authority
Figure A.4 Design and build - Contractual relationships
A.3 Management structure for construction management [Go to Page]
Figure A.5 Construction management - Lines of authority
Figure A.6 Construction management structure - Contractual relationships
A.4 Turnkey management structure [Go to Page]
Figure A.7 Turnkey management structure - Lines of authority
Figure A.8 Turnkey management structure - Contractual relationships
A.5 Management structure for executive project management [Go to Page]
Figure A.9 Executive project management - Lines of authority
Figure A.10 Executive project management - Contractual relationships
Annex B (informative) Project lifecycles [Go to Page]
Table B.1 Examples of project phase descriptions used in the construction industry
Annex C (informative) Published standards [Go to Page]
C.1 British Standards
C.2 ISO Standards
C.3 Material and component standards
Bibliography [Go to Page]
[1] GREAT BRITAIN. Construction (Design and Management) Regulations 1994 and subsequent amendments. London: HMSO.
[2] GREAT BRITAIN. Building Regulations 2000 and subsequent amendments. London: The Stationery Office.
[3] GREAT BRITAIN. Building Standards (Scotland) Regulations 1990 and subsequent amendments. London: HMSO.
[4] GREAT BRITAIN. Building Regulations (Northern Ireland) 2000. London: The Stationery Office.
[5] GREAT BRITAIN. Freedom of Information Act 2000. London: The Stationery Office.
[6] EUROPEAN COMMUNITIES. 98/4/EC. EC Procurement Directives Directive 98/4/EC of the European Parliament and of the Council of ... [Go to Page]

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