Project Management in the Construction Industry

Saleh Mubarak, PhD, is an independent consultant in the field of construction project management based in Tampa, Florida, focusing on training, writing, public speaking, and consulting. He is a former professor at a number of universities, an adjunct professor at the University of South Florida, and an active member of AACE International. He served on the PMI committee that created the first professional scheduler certification exam, PSP. He has more than 34 years of diversified and international experience including academia and industry.

• Special Request xviiIntroduction xixAbout the Companion Website xxi1 Introduction to Construction Project Management 1Introduction 1Basic Definitions 2Why and How Projects Are Initiated 6Project Lifecycle 7Project Management 8The Construction Industry 10Professional Organizations Related to the Construction Industry 13Project Manager’s Qualifications 15Project Manager’s Team 17The Project Management Office, PMO 18Training, Continuing Education, and Certification 19Project Participants and Stakeholders 21Exercises 232 Architecture, Engineering, and Construction 25Introduction 25Designers and Field Operations 30Exercises 313 Contracts and Contracting 33Introduction 33What is a Contract? 33Types of Contracting Approaches (Procuring Contractors) 34Bid Documents 36To Bid or Not to Bid? 40Contract Ethics 53Exercises 544 The Planning Phase 57Introduction 57The Project Management Plan 58Planning for Different Project Parties 59Planning for a Project Owner 59Planning for a Contractor 61How Far Does the Contractor’s Planning Go? 61The Relationship Between the Owner, the Designer, and the Contractor 65Exercises 695 Scope Management 71Introduction 71Scope Management 71Exercises 806 Project Budgeting/Cost Management 83Introduction 83Cost Definitions 84Types of Cost Estimates from Accuracy Perspective 87The CSI MasterFormat 93The CSI UniFormat 94Direct versus Indirect Costs 95Labor Cost 95Equipment Cost 96Materials Cost 97Sales Taxes 105Profit 105Contingency Allowance 107Sources of Cost Estimating Databases 109Bonds and Insurance 110Performance Bond 111Payment Bond 112Insurance 113Bonds versus Insurance 115Inflation/Escalation Allowance 116Crew Productivity 117Adjusting Estimates 118Putting the Estimate Together 119Cost Estimating Software Programs 120Repricing Estimates 120Exercises 1227 Time Management 127Introduction 127Basic Definitions 127History of Scheduling 128Bar Charts 129Logic Networks 131The Creation of the Project Schedule 133The Critical Path Method 142Exercises 1798 Project Controls 185Introduction 185The Baselines 185Schedule Updating 186Repercussions of Wrong/Inaccurate Remaining Duration 189Project Control 191Discussion on Measuring Work Progress and Percent Complete 199Earned Value Management, EVM 199Control Level 203Exercises 2049 Risk Management 209Introduction 209What is a Risk? 209Risk Management 210The Risk Management Plan 210The Risk Register 211Conclusion 219Exercises 21910 Managing the Contractor’s Cash Flow 223Introduction 223What is Cash Flow? 22311 Project Quality Management 241Introduction 241What is Quality? 241Total Quality Management (TQM) 243Elements of Quality Management in Construction 245Quality Assurance versus Quality Assurance 245Who Sets Quality Standards? 246Kaizen (Continuous Improvement) 248Lean Construction 249Quality Records 252Review of Shop Drawings 252Cost of Quality 255Is Quality Expensive? 256Quality Improvement 258Quality Management and Project Success 259Exercises 25912 Project Health, Safety, and the Environment (HSE) Management 261Introduction 261Definitions 261Safety 262Project HSE Management 264Safety is Everyone’s Responsibility 265Preparing a Safety (or HSE) Management Plan 270Cost of Safety Violations and Accidents 271Environmental Preservation 272Site Planning and Security 274Exercises 27613 Project Claims and Other Dispute Management 279Introduction 279Claims 279Conclusion 290Exercises 29014 Project Completion, Close-Out, and Beyond 293Introduction 293The Termination of the Construction Project 293The Transition Back to the Main (Home) Office 295Crew Productivity 297Project Success 302Exercises 30715 Project Administration and Corporate Management 311Introduction 311What does Project Administration Cover? 311The Main Office and Projects Management 313Multi-Project Management 314Managing the Starting and Closing of Projects 315Main Office and Regional Offices 317Exercises 31716 Soft Skills for Construction Project Management 321Introduction 321What are Soft Skills? 322Time Management 324Change Management 329Leadership and Teambuilding 337Conflict Management 342Emotional Intelligence 347Professionalism and Ethics 352Exercises 35617 Construction in the International Environment 361Introduction 361English is not English! 364The “Background Paradigm” Syndrome 367After the Completion of the Project 368Exercises 36818 Construction and Evolving Technology 371Introduction 371How Technology Impacted Projects’ Design and Construction 372Risk and Cost of Technology 375Exercises 38919 Management of Remodeling, Renovation, Restoration, Expansion, and Demolition Projects 391Introduction 391The General Challenges in These Projects 392Demolition 392Remodeling, Renovation, and Restoration Projects 395Expansion and Retrofitting 397Construction in Disaster Areas 397Specialty Construction: 399Exercises 39920 Real Estate Development 401Introduction 401Why Real Estate Development? 401The Business Side of Real Estate Development 402Who is Involved in Real Estate Development? 402Phases of Real Estate Development 403Exercises 40521 Construction Management from Owner/Client Perspective 407Introduction 407Project Cost to an Owner 407Planning and the Decision-Making Process 410The Owner’s Organization – PMO’s 410Public Projects 411Choosing the Contract Type and Delivery Method 412Requiring and Approving a CPM Schedule 413The Owner’s Involvement During the Design and Construction Processes 413General Recommendations for the Owner: 419Exercises 420Index 423