Project Management Lecture

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Fundamental responsibilities and functions of project management

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Project Management for Engineering and Construction : 

Project Management for Engineering and Construction Garold D. Oberlender

Project Management : 

Project Management The art and science of coordinating people, equipment, materials, money and schedules to complete a specified project on time and with approved cost.

The key to project management : 

The key to project management Take a task and break it down into smaller, manageable tasks, and compete tasks one-at-a-time If a given task is too large, break it down into manageable tasks…

What is a project : 

What is a project A project is a single, non-repetitive enterprise, and because each project is unique, its outcome can never be predicted with absolute confidence. A project manager must achieve the end results despite all the risks and problems that are encountered.

(PPP) Principal Parties of a Project : 

(PPP) Principal Parties of a Project Owner Designer Construction Contractor Any may have one person or a team Each may have different levels of involvement All required for a successful project

(PPP) Principal Parties of a Project : 

(PPP) Principal Parties of a Project Owner Initiates project Pays for project sets operational criteria Identify level of involvement (reports, approvals, job meetings, etc.)

(PPP) Principal Parties of a Project : 

(PPP) Principal Parties of a Project Designer Produce design alternates Design computations Prepare plans and specifications Other responsibilities On-site inspection – daily or periodic Review shop drawings Land acquisition Permits Budget preparation

(PPP) Principal Parties of a Project : 

(PPP) Principal Parties of a Project Construction Contractor Performance of all work in accordance with the contract documents Labor, equipment, materials and know-how to build To complete: Construction estimate Work plan Schedule of values Project schedule

Who does the project manager work for? : 

Who does the project manager work for? May be owner, designer or contractor… Each may have a manager Project manager works for the project.

Project manager’s team may include… : 

Project manager’s team may include… Owner’s, designer’s and contractor’s manager Representatives from: Marketing Engineering Finance Manufacturing Construction Project Manager Design Project Manager Work Managers

Types of management (philosophical) : 

Types of management (philosophical) Project Management. Coordination of a one time work by a team of people who (probably) have never previously worked together Functional Management (discipline management) Coordination of repeated work of a similar nature, by the same people [Examples] Design engineering, surveying, estimating, purchasing, crafts & trades Career – generally starts with functional, progresses to Project management Sports – head coach, assistant coaches…

Distinguish between Project and Function Management : 

Distinguish between Project and Function Management Project Management What must be done When it must be done How much will it cost Coordinating overall needs Multi-disciplinary focus Reliance on others Project Quality Administrative viewpoint Generalist’s approach Function Management How it will be done Who will do it Who well it will be done Coordinating specific needs Single-discipline focus Providing technical expertise Technical quality Technical viewpoint A specialist’s approach

Case Study… : 

Case Study…

Slide 14: 

Fort Piqua Hotel Restoration Project

Historic Tax CreditsNew Markets Tax CreditsState GrantsLocal FundingPrivate ContributionsHow the City of Piqua funded a $20 million building restoration for $2.4 million city funds : 

Historic Tax CreditsNew Markets Tax CreditsState GrantsLocal FundingPrivate ContributionsHow the City of Piqua funded a $20 million building restoration for $2.4 million city funds Project Management:

Problem: : 

Problem: Dilapidated Historic Hotel in center of CBD

Problem: : 

Problem:

Problem: : 

Problem: Dilapidated Historic Hotel in center of CBD New Streetscape, building façade rehab grants and revitalization of the rest of the downtown

Problem: : 

Problem:

Problem: : 

Problem: Dilapidated Historic Hotel in center of CBD New Streetscape, building façade rehab grants and revitalization of the rest of the downtown Public Library that needs modernization, additional space, and ADA compliance

Three Stories to be told… : 

Three Stories to be told… History Financing – Project Management Uniqueness in design and construction - Project Management

History : 

History Hotel built in 1891 – Dedication ceremony October 22, 1891 Thriving Hotel for 35 years – rich history… Theodore Roosevelt & William Howard Taft both spoke from the main balcony during the presidential campaign of 1912

History : 

History Hotel built in 1891 – Dedication ceremony October 22, 1891 John Phillips Sousa, Harry Houdini, etc. Centerpiece of local Civil Rights activities Struggling Hotel for 45 years Empty Deteriorating Hotel for 35years

Attempts to Restore : 

Attempts to Restore Three times in 1990s – Private Developers Hired Architects Conducted Feasibility Studies All walked away – no way to privately recoup costs without public participation (grants)

1999 - “Future Piqua II” : 

1999 - “Future Piqua II” City Wide Strategic Plan #1 Priority: Resolve the hotel problem Either restore it or demolish it –passionate public sentiment on both sides City Commission - Restore if financially possible

Strategy to Restore the Hotel : 

Strategy to Restore the Hotel Piqua Improvement Corp. (CIC) purchased building (Benefactor gave $200,000) City = Developer Anchor Tenant – Flesh Public Library 3 floors, 30,000 SF, expandable to 45,000 sf

Strategy to Restore the Hotel : 

Strategy to Restore the Hotel Piqua Improvement Corp. (CIC) purchased building (Benefactor gave $200,000) City = Developer Anchor Tenant – Flesh Public Library 3 floors, 30,000 SF, expandable to 45,000 sf Community Banquet facility/Conference Center – old ballroom on top floor

Strategy to Restore the Hotel : 

Strategy to Restore the Hotel Piqua Improvement Corp. (CIC) purchased building (Benefactor gave $200,000) City = Developer Anchor Tenant – Flesh Public Library 3 floors, 30,000 SF, expandable to 45,000 sf Community Banquet facility/Conference Center – ballroom, top floor First floor restaurant and coffee shop accessible from library

Where do we start? : 

Where do we start? Hire Architect – Jeff Wray & Assoc. Estimate made public in 2004 - $9.5 million Negotiate with library board Apply for grants Project Manager – November, 2004

Historic Tax Credits : 

Historic Tax Credits Tax Credits help only entities that pay tax City pays no taxes Formed LLC – PIC as general partner, Mainstreet Piqua stand-in as limited partner Sole purpose: realize benefit of the tax credits and build project Now What?

Funding available… : 

Funding available… City (Hotel Fund) Library Lease $135,000 for 20 yr State of Ohio - Grant for Roof Vertical Brownfield – Clean Ohio Fund Grant Other State Grants – CDBG etc. Historic Tax Credits (20%) *** (That’s good, but not too close…) $2,000,000 $1,400,000 $ 400,000 $1,300,000 $400,000 $2,500,000 $8,000,000

Slide 39: 

What Would Piqua Look Like With The Hotel?

Slide 40: 

What Would Piqua Look Like Without The Hotel?

Slide 41: 

What Would Piqua Look Like With The Hotel?

Slide 42: 

What Would Piqua Look Like Without The Hotel?

New Markets Tax Credits : 

New Markets Tax Credits We became aware of NMTC Like Historic – Need L.P. structure Unlike Historic - Competitive

What are NMTC? : 

What are NMTC? 2001 Federal government allocated $3.5 billion, re-allocated each year. Distributed to CDEs (Community Development Entities) in $50,000,000 allocations

Stipulations for NMTC : 

Stipulations for NMTC List of eight – you must comply with three LMI (Low to moderate Income) Census Tract Environmental – Vertical Brownfield Local Designation – Blighted condition

We tried to jump in… : 

We tried to jump in… Need a CDE who is also an investor Accept bids, December 2005 No CDE $14,000,000 low bid No cash 

“Complicated?” : 

“Complicated?” Investors would not commit to project until the city had firm bids in hand Contractors did not want to provide firm bid prices until all project funding was secure

Gear up for 2006 allocations : 

Gear up for 2006 allocations Scheduled for May 1 Open Bids May 1 7 Primes - $14,500,000 Soft Costs- $1,500,000 Total Project $16,000,000 This time…

Hurricane Katrina : 

Hurricane Katrina $3.5 billion $1 billion for hurricane victims Compromise - $4.1 billion total Hold announcements until June 15

Finally – CDE said “yes” : 

Finally – CDE said “yes” CDE and Investor – hard to find Had to reduce budget by $1.5 million No $1.5 million FFE No $1.5 million Landscaping Then what?

How to Fill the Gap ($6.5 Million) : 

How to Fill the Gap ($6.5 Million) New Markets Tax Credits City Commission add’l borrow Still $2.5 million to go -  $3,000,000 $1,000,000 $4,000,000

Hotel Library Legacy Alliance : 

Hotel Library Legacy Alliance Local Philanthropists Asked, “How much?” [$2,500,000] Asked, “How soon?” [ 10 days ] In ten days the HLLA returned with $2,600,000 in pledges from nine donors! (Local banker said he would loan total with signed pledge cards only.)

Gap = $0! : 

Gap = $0! 5 City Commissioners 7 Library Board Members 7 Contracts 20,548 sidewalk inspectors 1 Project with signed contracts and work underway!

Slide 56: 

Construction Commencement Ceremony December 18, 2006

Slide 57: 

Contractors on site – January 8, 2007

Slide 58: 

Exterior Building Restoration – May 1, 2007

The HLLA is back… : 

The HLLA is back… “Can we raise the funds to complete the banquet facility?” Lower cost to do it now Avoid construction disruption after occupancy Asked, “How much?” [$1,400,000] Asked, “How soon?” [By September 1, 2007] Fundraiser underway Do you think they’ll do it?  (Would you like to participate?)

Every once in a while, project managers enter a new arena : 

Every once in a while, project managers enter a new arena This is what it all came down to…

Bids for 7 contracts returned… : 

Bids for 7 contracts returned… General Trades $9,341,000 Masonry restoration $276,714 Electrical $$2,237,000 Plumbing $545,000 HVAC $1,858,000 Sprinkler $200,000 Environmental $87,090 Total $14,544,804

Project Managers : 

Project Managers City of Piqua Project General Manager Project Construction Manager Project Financial Manager Jeff Wray Architects Project Manager Assistant Project Manager Piqua Public Library Project General Manager – Library Director Project Technical Manager – Architect from MKC

Project managers : 

Project managers Tuttle Construction Project Manager Project Superintendent Debra-Kuempel HVAC – Project Manager GM Mechanical plumbing – Project Manager Carey Electric – Project Manager A-1 Sprinkler – Project Manager Trisco systems exterior rehab – Project Manager LVI Environmental – Project Manager

If you are keeping score… : 

If you are keeping score… 15 Project Managers – 1 project Started with Partnering Meeting – 8 hours Outside Consultant Optional $10,000 cost paid by contractors All participated in cost, all attended Purpose Establish goals Procedure for communication Procedure for changes Criteria for conflict resolution who makes the final call How do we get there? Weekly job meeting – 14 present every week plus additional

Slide 78: 

Project Managers at work…

20 concepts of Project Management : 

20 concepts of Project Management Ensure that one and only one person is responsible for the project scope, budget and schedule Don’t begin work without a signed contract, regardless of the pressure to start Confirm that there is an approved scope, budget, and schedule for the project Lock in the project scope at the beginning and ensure there is no scope growth without approval Make certain that the scope is understood by all parties, including the owner

Slide 80: 

Project Managers at work…

20 concepts of Project Management : 

20 concepts of Project Management Determine who developed the budget and schedule, and when they were prepared Verify that the budget and schedule are linked to the scope Organize the project around the work to be performed, rather than trying to keep people busy Ensure there is an explicit operational work plan to guide the entire project Establish a work breakdown structure that divides the project into definable and measurable units of work

Slide 82: 

Project Managers at work…

20 concepts of Project Management : 

20 concepts of Project Management Establish a project organizational chart that shows authority and responsibilities for all team members Build the project staff into an effective team that works together as a unit Emphasize that quality is a must, regardless of cost or how fast it is completed. (If it doesn’t work, it is worthless.) Budget all tasks, any work worth doing should have compensation. (Clean-up, safety, etc.) Develop a project schedule that provides logical sequencing of the work required

Slide 84: 

Project Managers at work…

20 concepts of Project Management : 

20 concepts of Project Management Establish a control system that will anticipate and report deviations on a timely basis so corrective action can be taken Get problems out in the open with all persons involved so they can be resolved Document all work. It may seem irrevelant now, but may be important later Prepare a formal agreement with appropriate parties whenever there is a change in the project (the proverbial change order.) Keep the client informed (they pay, and will use the project upon completion.)

Slide 86: 

Project Managers at work…

Five basic functions of project management : 

Five basic functions of project management Planning Organizing Staffing Directing Controlling

Project Manager’s Role in Planning : 

Project Manager’s Role in Planning Focus planning on the work to be performed Establish project objectives early so everyone involved knows what is required Involve all discipline managers and key staff Establish well-defined milestones Build contingencies Avoid reprogramming Prepare formal agreements for changes Communicate project plan to define responsibilities Note: Good plans are only good if implemented

Project Manager’s Role in Organizing : 

Project Manager’s Role in Organizing Organize the project around the work to be accomplished Develop a work breakdown that divides project into measurable units of work Establish a project organization chart showing who does what Define clearly the authority and responsibility for all project team members

Project Manager’s Role in Staffing : 

Project Manager’s Role in Staffing Define clearly the work to be done; work with department heads to select team members Provide in effective orientation (project goals and objectives) at beginning of the project Explain what is expected of each team member, and how role fits into total project Solicit each team member’s input to clearly define and agree upon scope, budget and schedule

Project Manager’s Role in Directing : 

Project Manager’s Role in Directing Serve as effective leader in coordinating all important aspects of the project Show interest and enthusiasm, with “can-do” attitude Be available to project staff, get problems out in the open, and work out problems cooperatively Analyze problems early for early solutions Obtain resources needed to accomplish tasks Recognize each person’s importance, compliment good work, guide in correcting mistakes, build effective team

Project Manager’s Role in Controlling : 

Project Manager’s Role in Controlling Maintain record of planed and actual work accomplished to measure performance Maintain milestone chart Maintain monthly project cost chart Keep records of meeting, conversations and agreements Keep everyone informed – no surprises

Project Team : 

Project Team Effective teamwork is essential in a successful project. Must start early, maintain throughout the project. (Remember that partnering meeting?)

How do you build a team? : 

How do you build a team? Communication Common goal – not competitors Everyone knowledgeable Continuity – avoid turnover Keep peripheral players engaged Technical and non-technical words like: Respect, kindness, responsibility, honesty, dignity

Motivating Teams : 

Motivating Teams Maslow’s hierarchy of Needs Basic Comfort Needs – food, clothing, shelter Safety Needs – job security Belonging Needs –peer acceptance Ego or Self-Esteem Needs (recognition) Self fulfillment needs (power, wealth, influence

Conflict Management : 

Conflict Management It is inevitable that conflicts among team members will arise. The manager must realize that conflicts can actually be beneficial if resolved I an appropriate manner.

Conflict Management : 

Conflict Management Withdrawal Smoothing (a path) Often temporary Fogging Compromise (bargaining) Reoccurrence Confrontation Manager must realize how much authority he or she has

Consensus : 

Consensus Solution by which all parties can abide Voting, trading, averaging Avoid insults, threats, offensive comments or defensive actions Mutual Respect

Project Management : 

Project Management The art and science of coordinating people, equipment, materials, money and schedules to complete a specified project on time and with approved cost.