Project management and control

Owing to the higher standards in whichpeople wished to live and work, buildings became more and morecomplex, which in turn put more and more pressure on theprocurement process, resulting

fItOIECT MANAGEMENT AND CONTROL

- _.- _- -_.

I

'IS - ~Q

6 ~ -~.

Macmillan Building and Surveying Series

Series Editor: Ivor H Seeley

Emeritus Professor, Nottingham Trent University

Advanced Building Measurement, second editionIvor H Seeley

Advanced Valuation Diane Butler and David Richmond

Applied ValuationDiane Butler

Asset ValuationMichael Rayner

Building Economics, third editionIvor H Seeley

Building Maintenance, second editionIvor H Seeley

Building Maintenance TechnologyLee How Son and George C S Yuen

Building ProcurementAlan E Turner

Building Project AppraisalKeith Hutchinson

Building Quantities Explained, fourth editionIvor H Seeley

Building Surveys, Reports and DilapidationsIvor H Seeley

Building Technology, fifth editionIvor H Seeley

Civil Engineering Contract Administration and Control, second edition

Ivor H Seeley

Civil Engineering Quantities, fifth editionIvor H Seeley

Civil Engineering Specification, second editionIvor H Seeley

Commercial LeaseRenewa/~Apractical guidePhilip Freedman and

Eric F Shapiro

Computers and Quantity SurveyorsA J Smith

Conflicts in Construction-Avoiding, managing, resolvingJeff Whitfield

Construction Contract ClaimsReg Thomas

Construction LawMichael F James

Contract Planning Case StudiesB Cooke

Contract Planning and Contract Procedures, third editionB Cooke

Cost Estimates of Structures in Commercial BuildingsSurinder Singh

Design-Build ExplainedD E. L.Janssens

Development Site EvaluationN P Taylor

Environment Management in ConstructionAlan Griffith

Environmental Science in Building, third editionR McMullan

European Construction-Building techniques and proceduresB Cooke

and G Walker

Facilities ManagementAlan Park

continued overleaf

Housing AssociationsHelen Cope

Housing Management-Changing practiceChristine Davies (Editor)

Information and Technology Applications in Commercial Property

Rosemary Feenan and Tim Dixon (Editors)

Introduction to Building Services, second editionChristopher A Howard and Eric F Curd

Introduction to Valuation, third editionD Richmond

Marketing and Property PeopleOwen Bevan

Principles of Property Investment and Pricing, second editionW D Fraser

j Project Management and ControlDavid Day

Property Valuation TechniquesDavid Isaac and Terry Steley

Public Works EngineeringIvor H Seeley

Resource Management for ConstructionM R Canter

Quality Assurance in BuildingAlan Griffith

Quantity Surveying PracticeIvor H Seeley

Recreation Planning and DevelopmentNeil Ravenscroft

Resource and Cost Control in BuildingMike Canter

Small Building Works ManagementAlan Griffith

Structural Detailing, second editionP Newton

Urban Land Economics and Public Policy, fourth editionP N Balchin,

J.L.Kieve and G H Bull

Urban Renewal-Theory and practiceChris Couch

1980 JCT Standard Form of Building Contract, second editionR F Fellows

Series Standing Order

If you would like to receive future titles in this series asthey are published, you can make useof our standing order facility To place a standing order please contact your bookselleror, in caseof difficulty, write to usat the address below with your name and address and the nameof the series Please state with which title you wish to begin your standingorder (If you live outsidethe United Kingdom we may not have the rights for your area, in which casewe will forward your order to the publisherconcerned.) Customer Services Department, Macmillan Distribution Ltd

Houndmills Basil1llstoke, Hampshire, RG21 2XS El1llland.

Project Management and Control

M

MACMILLAN

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

ISBN 0-333-54243-6

A catalogue record for this book is available

from the British Library

Typeset by Richard Powell Editorial and Production

Services, Baslngstoke, Hants RG22 4TX

Printed and bound in Great Britain by

Mackays of Chatham PLC, Chatham, Kent

1 The Project Manager 1

2.5 Introduction of project management

2.6 Why a Project Manager?

12

13

14 14

151617

4 The Project Team

32

323233343436

38

3939

39404142424345464749

50

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

5.13 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

Contents ix

505154555557

5858585960616263646465676869707172737474

The Construction Stage

PM's role in construction stage

7.1 Old-style cost advice

7.2 Establishing cost control

7.3 Problematic cost areas

7.4 Reporting problematic areas

7.5 The quantifiable factors

7.6 Cost consultancy

7.7 Contingency management

7.8 Reliabilityof estimates

7.9 Total project cost

7.10 Early cost advice

92

9292939495969797989899100100101103104104105106107107

9 Completion and Hand-over

9.1 Transition into usable facility

126

126127128128

130132132

134

134

134

138

10.17 IT in use on the Queen Elizabeth II

.Appendix: Project Implementation Plan:

This book is based on my experience of project management as itevolved over more than 20 years In the 1970s and 1980s ProjectManagers were normally appointed from the older generation, therebeing no formal training in what was then the new occupation A longexperience of the building industry was the only qualification; but eventhat gave no assurance of success High-quality formal training ofstudents of the right calibre now permits the appointment of ableProject Managers into this high-stress occupation at a much youngerage I hope that this book will assist such readers in some smallmeasure

The book is structured so that eac:JL.chaptecdeals$imar:i1ywith Olle

~_seect ~,!,ana_g~m~lltonl)!; tb_~~e._ar~the i'!g[.~le!l~_J.QLtbjuec~ Each~nd~ery project is uniq~~,_~it~ its own problems and

aspects, or ingredients, at the expense of others, so the relativeimportance of the tasks described in the various chapters will vary fromproject to project Once the fundamentals of each step in projectprocurement are fully understood, it then becomes easier, and safer, tomanipulate them to suit the needs of any project

The appointment of Project Managers by experienced clients totheirbuilding projects is now almost universal The scope of the duties andthe 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, bykeeping abreast of modern developments and improved managementtechniques

September, 1993

xiii

David Day

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

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

xv

jjjjjjjjjjjjjjjjjj

1 The Project Manager

1.1 DEFINITION OF PROJECT MANAGEMENT

1.1.1 An often quoted definition of project management is 'themanagement of change' While this is clear and readily understood byits practitioners, the word 'change' does have other connotations withinthe building industry, which may cause confusion Further confusionmay arise in that people not understanding what project management ismay not readily comprehend such a succinct definition It is preferable

to use the older definition of project management as 'the processo(p.':Pcuring~JacilitY.'!Y_hjfJLfyll>,~e~.aclient's r~lJfrement, "i~~!!1>_a.napp~ved ti~~ cost'"'

The PrQ1E}~_~a!,~&~rJ!'MLi~r~n apEOinte(L\Q~I,!Re!yi~~.Jh~

~ffic~Ol'p-rocessof that proc':!~~.!!1~.I1~,so it follows that the PM's role is

of ~eyim portance to the success of a' _- -"' pr~J!-!.~.

1.2 HISTORICAL BACKGROUND

1.2.1 Construction projects have probably always had a controller.When Christianity came to England, cathedral construction wasorganised by a master mason, who was responsible for both the designand procurement processes; the latter included hire of craftsmen andnegotiating their rates of pay, opening quarries for stone, timber fellingand seasoning, and constructing forges Programming in those days wassimple, the rate of progress being set by the annual income available to

be spent on the project-this set the size of the labour force, and that inturn determined the overall project duration A PM as such was nottherefore necessary as a separate and distinct specialisation; it formedpart of the Master Mason's appointment

1.2.2 The historical convention of the senior designer, being theundisputed head of the project team, continued until comparativelyrecent times The decision by architects in the last century toconcentrate their professional activities on design eventually dilutedtheir absolute authority on such matters as finance, landscaping,

interior design, and eventually services and structures Their decisionalso accelerated the growth of master builders, who by then werealready on the scene and from whom the growth of sub-contractorssubsequently developed Owing to the higher standards in whichpeople wished to live and work, buildings became more and morecomplex, which in turn put more and more pressure on theprocurement process, resulting in higher and higher failure rates ofachieving the client's objectives in terms of cost and time.

1.3 THE BUILDING INDUSTRY TODAY

When one considers the disparate components of the building industrytoday, it is not surprising that an overall management structure is beingimposed on the procurement process Even a quick examination revealsthe multiplicity of divisions

1.3.1 Within the field of professional specialisations there arearchitects, landscape architects, interior designers, quantity surveyors,cost consultants, electrical engineers, structural engineers, mechanicalengineers, public health engineers and building surveyors There arealso a large number of specialist professional advisers for such matters

as rights of light, boundary walls, damp treatment and fire regulations,and the list could continue

1.3.2 Builders and sub-contractors, too, have a multiplicity ofspecialisations able to provide services ranging from a full design andconstruct package, through construction management to a single trade

or the provision of labour only

1.3.3 There is also a wide range of builder's merchants, specialistsuppliers and plant hire companies providing goods and services tobuilders and sub-contractors

1.3.4 These divisions are not sacrosanct: the boundaries are crossed inmany ways, producing an infinite variety of services from which toselect those which are particularly suitable for each individual project

1.4 DESIGN AND MANAGEMENT

1.4.1 If one also considers the complexity of the buildings that the

The Project Manager 3

industry's clients require, with the priorities they possess, it is notsurprising that the functions of design and management of theprocurement process have become separated Not only have thefunctions separated, but also, because of undertaking the responsibilityfor the appointment and the performance of the design team, the PMhas taken on the role of overall leadership

1.4.2 The use of projectmanagement services is still not universal Agreat number of projects are managed and designed by a sole leaddiscipline, normally an architect: increasingly these rend to be thesmall to medium-sized projects Probably a large degree of success andclient satisfaction is obtained, but a wider use of modern managementtechniques would undoubtedly help to improve performance.Unfortunately, fee bidding for appointments to these projects wouldpreclude the use of advanced management techniques unlessspecifically specified in the documentation

1.5 WHO SHOULD MANAGEl

1.5.1 Over the past few years, whenever this subject arises, the debate

as to who should manage has degenerated into one along disciplinelines, which, close thought reveals, leads to a dead end All disciplineshave produced successful PMs and all have produced some who arenot so successful It has been claimed, on more than one occasion, thatmanagers not qualified in any of the building disciplines could just aseffectively act as Project Managers, as the project requirement isbasically and predominantly one of management In theory, at least,the lay manager could use professional support staff to explain thetechnicalities of the building process when necessary

1.5.2 While there may be occasions when a lay manager can produce

a successful result, it is probable that the best chance of success would

be with a professional Project Manager; the industry's clients at presentnormally appoint professional managers

The best managers, surely, must be those who can use their ownexperience and knowledge of the industry to plan ahead and findsolutions to problems: in effect, to do their jobthey need an in-depthtechnical awareness of the industry as a whole, so that proposals by

projectteam members to resolve problems are readily understood andacceptable in the total context of theproject.

1.6 EDUCATION AND TRAINING

1.6.1 Few, if any, practising Project Managers have had formaltraining prior to undertaking the job At best they will have attended ashort training course lasting perhaps one week, and only a handfulhave so far been fortunate enough to be able to take one of the degree

or diploma courses now available

The majority of would-be PMs either are appointed to the task withinthe organisation which employs them, or apply for an advertised post.Employers may sponsor them for specific courses or seminars, which,while providing a valuable insight, are normally too short to give in-depth tuition, and are normally far too expensive for individualswithout sponsorship

At present the best plan for newly qualified professionals aspiring tobecome PMs is to spend at least two years in their discipline, in assenior a capacity as possible, in order to gain useful practicalexperience During that time it would be possible to commence adiploma course such as that offered by The College of EstateManagement The principal professional institutions have PM sectionswhich hold seminars on matters of interest, and joining the Association

of Project Managers (APM) will give access to their seminars andmeetings organised by a number of special-interest groups, eachcovering a specific aspect of project management, and to the branchesaround the country

1.6.2 The APM does not yet examine candidates for membership butmembers may submit themselves for certification This entailspreparing a paper on the candidate's experience and role on a projectand satisfying a panel, during an interview, as to the standard ofcompetence achieved The 'Certified Project Manager' status has longbeen in use in the USA

The APM has also launched an accreditation programme for trainingcourses This will eventually permit a member to select the appropriatecourse to suit a specific need from those available

It is likely that in the long term the APM in its progress to charteredstatus will impose entry by examination only, study facilities for whichwill become available in full-time courses at the appropriateestablishments

1.6.3 In the long term, there will be a need for a dedicated projectmanagement profession with its own qualification and examinations.These examinations would have to cover the basics of all the building

The Project Manager 5

industry professions, and the construction side of the building industry,including design processes, building law, contract law and procedures,cost control, commercial accounting and finance, programming,building operations and personnel, as well as project managementtechniques

1.6.4 The ideal would be for all the professional institutions whosemembership has an interest in project management to unite insponsoring an appropriate syllabus for a project managementqualification, which could be the field for entry for students with theappropriate educational standard

The syllabus should also be structured so as to permit existingqualified personnel to extend their studies in order to obtain the newproject management qualification An added advantage would be for

an arrangement whereby qualified PMs could 'cross over' to acquireanother discipline's qualification by means of extended study

If the institutions do not get together, it is probable that the APM willproduce its own syllabus independently; they also represent PMs inother industries who want entry by examination to be introduced in theforeseeable future Should the opportunity for co-operation be lost, anumber of long-term benefits to the industry will be lost too Theemergence of an APM syllabus which met with the industry's clients'approval, and that would be very likely, would at least end theargument as to which discipline was the most suitably trained to be aPM

1.6.5 Probably the best training area for potential PMs is in a practice office or a small to medium sole discipline office, working on

multi-a number of smmulti-all projects rmulti-ather thmulti-an one lmulti-arge one A number ofsmall projects give a more complete experience in that each willcontain a greater variety and number of problems than the largerprojects: the basic principles for resolving these problems on projects ofany size are similar A few years spent working with several differentproject teams will also provide a thorough grounding in the realities ofpersonnel management

1.7 THE PROJECT MANAGER AT WORK

1.7.1 It is essential for the PM to keep the project objectives in mind atall times, considering each and every aspect in its relationship with allthe others Other people working on the project will be blinkered by

their particular responsibility, but the PM must always consider thewider view.

The extent and manner in which anyone matter can affect thewhole, or other matters in juxtaposition to it, requires carefulexamination The area where the highest percentage of problems arise

is in the interface zone, whether in the context of design, sub-contracts

or the interaction of people working together

1.7.2 This is not to say that a PM should act unilaterally for all, oreven most of, the time-far from it Listen particularly to advice offered

by senior members of the project team, test it out, consider all theconsequences and then make a decision Remember that it is goodpersonnel management to give your reasons for taking action in amanner different from that advised

1.7.3 When confronted with a serious problem, consider all theoptions, including radical ones: nothing within the PM's responsibility

is immutable If something does not work or is jeopardising the success

of the project, it can be changed to something that does; this applies toevery aspect of the project

If a failure arises in a contract, sub-contract, commission, or theprovision of goods or services within the contract, whether total or inpart, any contractual arrangement can, by agreement between theparties, be determined and substituted by a new one, or amended tosuit changed circumstances There may well be consequences in takingthese actions, particularly if taken unilaterally, but if the outcome is inthe client's best interest, that is the path to take

1.7.4 PMs should make a practice of talking to as many people aspossible at all levels of the project, in the design team and on siteduring construction By listening carefully, not only will muchinteresting detail be assimilated, but also there will be a few pointers as

to where, for example, information flow could be improved Goodnews, of having achieved something, travels up the line very quickly,but bad news tends to be filtered out, while attempts are made torectify mistakes; the consequences can be that a worse problemeventually requires resolution than would otherwise have been thecase Establishing a dialogue with personnel at all levels can oftenresult in preliminary warnings being received

When a problem is encountered at the work face, the reason for itshappening and a possible solution are often readily suggested also.Rectifying such problems should be done quietly and without fuss, as

The Project Manager 7

this will keep the avenues open in the future Stirring up aggravation inthe intermediate levels of management may be unproductive in thelong run; the precise action required will depend on the circumstances

of any particular case, and will depend on the PM's leadershipqualities

1.7.5 In some people's minds the task of project management issynonymous with aggravation and confrontation; they adopt this style

of management from the outset of each project Exponents of this styleshould take a course or two in personnel management and workingrelationships An aggressive attitude must be the final resort, the failure

of which results in someone's being removed from the project

In the majority of cases, a PM can get the project team members toachieve the objectives by personal involvement, using tact anddiplomacy to put things back on the rails, where required.Demonstrating a willingness to understand problems, and making firmdecisions quickly, establish a PM's position far more effectively than anaggressive stance It may be necessary on occasion for a PM to beassertive, but to be aggressive from the outset leaves no room tomanoeuvre subsequently

A PM who adopts the confrontational style of management from theoutset is really demonstrating an inability to understand personnelmanagement, and possibly a serious lack of judgement in makingappointments to the project team in the first place

1.7.6 Full-time project management, whether on a large project or anumber of smaller ones, is a high-stress occupation The PM makes thedecisions, is the final arbiter in disputes and ultimately takes totalresponsibility In order to survive the pressure, a PM should makecertain of the quality of support staff, delegate work to them, and leavethem to do it At times everyone finds it necessary to work late or totake work home at night or at weekends: it is part of the job It does theproject no good to have its PM in a mentally exhausted state, soattention has to be paid to regular periods of relaxation: it is goodpractice to have a deputy PM appointed, who can take over theresponsibility when the PM is on holiday or absent when unwell.1.7.7 At the outset of a project, a PM will take time to assimilate thetask ahead, outline the various ways to achieve the objective, and, inmore detail, determine the immediate actions required Asthe planningbegins to firm up, a member of the PM's team should be appointed todraft a project plan

Control of a project is established by preparing a project plan whichsets out the project's objectives, who people are, what theirresponsibilities are; it includes the Brief, the programme, the budgetand any other pertinent details The more complex the project, themore detailed the plan may need to be, but a project plan which lookslike a small telephone directory is useless, for the simple reason that noone will have the time to read it.

1.7.8 The Appendix contains the project plan written for therenovation of the Sir John Soane's Museum in lincoln's Inn Fields,London This is a very simple example of a project plan; more complexexamples would include such additional matters as the format ofreports and payment certificates, and defining the method forproducing each of these documents and who is responsible forproducing them

1.7.9 Control of a project is maintained by achieving each stage in theplan by efficient management Control is not maintained by adhering to

a plan which has failed in some manner: a failed plan must be replacedquickly by another which achieves the objective in some other manner

or alters the objective

1.7.10 At any stage in a project the most important target is the nextone What has happened in the past is over, leaving a situation to bemanaged Project management is about organising what is yet to bedone and getting it done

A PM's authority is far easier to maintain if personal relationships arekept at a distance A PM's first priority is to the project, and either thisduty or a close friendship may be placed in jeopardy in certaincircumstances, so are best avoided

The Project Manager 9

1.9 SCOPE OF SERVICE

1.9.1 The scope of services being requested by clients, particularly ofconsultant PMs, differs with every enquiry The management proposalsubmitted with each fee bid differs from almost all other submissions,

as the precise role for which the client wishes the PM to undertakeresponsibility varies from project to project It is essential, therefore, forthe PM to study the potential client's initial approach and to query anypoint considered unclear, in order to provide a proposal for the servicewhich is required

1.9.2 The initial client approach can vary from a straightforwardappointment on an agreed fee to a request for either a proposal tomanage a project or a proposal to provide a full design andmanagement service The approach may be a straightforward singleappointment but is more likely to be a request to participate in acompetitive bid The basis for inviting bids in the current marketsituation is extremely variable: anything from a bare outlineto a fullydetailed client requirement

)

1.10 MANAGEMENT PROPOSALS

1.10.1 A tender in response to a client's enquiry for a competitive bidusually takes the form of a management proposal which details theintended method and style of managing the project to be adopted inorder to achieve the client's requirement, and the fee required Such aproposal must cover the employment of all resources, and an outlineplan for all the activities necessary to achieve the objectives contained

in the invitation

1.10.2 Because of the newness of this form of submission, PMs require

a good business sense in addition to a sound knowledge of projectmanagement if they are to avoid the pitfalls that lie ahead The contentmust always be unambiguous and not make assumptions withoutclarification, even if the invitation is itself ambiguous Whereappropriate state the service being offered for a fee and quote anadditional fee for any options to the service

1.10.3 These proposals can take several weeks, and cost a great deal

to prepare, particularly with those projects where the PM is also toinclude the design-team appointments in a 'manage and design'

enquiry, as these may need to be obtained also on a competitive basiswhere price is of extreme importance A possible alternative is for a PM

to set up a consortium of consultants capable of undertaking either any

projector those within agreed limits, which limitations may relate tolocation or size It would be practicable for such a group to set out thepolicy they will adopt in working together, covering finance,organisation and resources, and to put together an outline managementproposal, well ahead of preparing a bid

1.10.4 The preparation of a proposal is an onerous task, particularlywhen starting from scratch and if under pressure in a live situation.There is, however, a comparatively recent publication which will helpconsiderably

reference, and an essential for every PM's bookshelf

Part 1 sets out in detail the main and optional tasks for both Project

Managers and project co-ordinators It covers all activities fromfeasibility to projectcompletion, resulting in a first-classelde-memolre

for use by even the most experienced PM

Part 2 of the Code contains the RICS Project Management Agreementand Conditions of Engagement, recommended for use as the basis forthe employment by all disciplines operating in the field of project

management It is important that every member of the PM's teamshould be fully conversant with these Conditions, and the Agreement,

in order to avoid possible misunderstandings as to the respective rightsand responsibilities of the parties

Part 3 provides an outline for a Project Handbook This type ofcontrol document is relatively new and may be known by other names;its function is dealt with in paragraph 2.17 of this book under the title

of Project Implementation Plan, the description more familiar to theauthor, although the title given by the CIOB is probably more germane

to the document's function

2 The Client

2.1 CLIENT KNOWLEDGE OF THE BUILDING INDUSTRY

2.1.1 As a generality, building industry clients have only one thing incommon: a need for some form of new structure which they cannotprovide for themselves Each has a unique requirement in terms of thefinished product and its location, and in matters of their principalconcern such as time and cost Their understanding and knowledge ofhow best to use the industry to their advantage varies considerably: atone end of the range are the experienced clients, e.g, governmentdepartments and property developers, whose close involvement withthe industry could be said to virtually make them a part of the industry

in their own right, while at the other end of the spectrum are clientswho have absolutely no knowledge of how to proceed other than byappointing an architect or, more often, a builder The extent of aclient's knowledge of the industry will obviously determine the way inwhich the first approach is made and the degree of vulnerability toinefficiency, or worse, to which they can be, and all too often are,exposed

2.2 INFORMED CLIENTS

2.2.1 Clients with a higher frequency of use of the industry,particularly those with projects which are large in size, complex and ofhigh cost, who become more experienced through encounteringproblems of non-delivery on time, or shocks on costs, develop a lowerand lower tolerance level to the industry'S inefficiency It is notsurprising that the more experienced clients have sought more efficientmethods of procurement over the last two decades These have takenseveral forms: the appointment of Project Managers having varyingdegrees of authority over the procurement process and, with the aid ofsome members of the building industry, creating alternative methods ofcontracting, all aimed at providing stronger control and reducing the

11

overall procurement time.

2.2.2 Project Managers are normally appointed to direct theprocurement of the larger, more complex, projects and projectmanagement is the subject here Normally, experienced clients andProject Managers know how to go about finding one another andgiving and receiving the appropriate service It is a great pity that a verylarge number of the smaller, inexperienced users of the industry do notknow how to initiate the procurement process, other than byapproaching a builder direct Many do not even know that ProjectManagers exist, or, if they do, consider the service to be nothing morethan another expense which cannot be afforded It is certain that alarge number of these users could benefit enormously from projectmanagement services, even if only partial services were required

2.3 WIDENING THE CLIENT FIELD

2.3.1 There is only one way to spread the message of the benefits thatproject management services bring and that is to be active Go out intothe marketplace where the need exists; this of course is primarily theprovince of the independent consultancies and practitioners.Consultant project management practices should advertise theirservices via local contacts such as bank managers, accountants andsolicitors, and the respective associations, all of whom are approached

by clients considering business expansion

2.3.2 Convincing those who normally provide their clients with advice

on financing expansion or new enterprises of the benefits of the servicemust eventually lead to recommendations for and an increase in theuse of project management services Another way of publicising theservice is to conduct seminars and give talks to local Chambers ofCommerce and other local business organisations, at times and places

to suit them, which for maximum impact must be properly preparedand rehearsed

2.3.3 With such a young, comparatively little-known service, the onlyway to widen its clientele is to become known The uninitiatedbusiness person must be convinced of the benefits that can beobtained; employing a PM to them means spending more money on aservice from an organisation within an industry not renowned forachieving what it says it will Time and effort has to be expended to

The Client 13

win them over

2.3.4 It is probable that a number of small, not very profitable,commissions will result at first from such activities Some years ago thedirector of a small company wished to extend a production line; thetender for the building work was £6800, which was considerablyabove budget He sought the advice of a practising PM, who took littletime in reorganising the requirement into a more economic scheme,and obtained competitive tenders for less than £4000, including fees,ready for a start to meet the client's programme The work wasefficiently done, at a convenient time, and the result was a very happyclient, who returned later with a commission for the PM to handle theprocurement of a new building That company is still growingl

2.4 EXPERIENCED CLIENTS

2.4.1 The term 'experienced client' covers a very wide field, rangingfrom those having completed one project to major organisations whichhave a large ongoing programme of building work When a client onthe first project has gone through the traumas that often arise throughnot reading, or understanding, the exclusions on estimates, the timeneeded to prepare designs or the tenders that result from the vagaries ofthe marketplace; when the shocks arising from the effect of suchcontractual conditions or contrivances as provisional sums, contractualclaims and ex-contractual claims have been encountered; when the feeaccount shocks from time charges and expenses, not to mention thenumber of consultants and specialist advisers that had becomeinvolved, without any warning: then we can say that have an'experienced client'

2.4.2 The reaction is often one of anger at the lack of fulfilment of theexpectations at the outset Even when the causes of the shocks areunderstood and reluctantly accepted, many become more and moredisenchanted with the generally poor performance of the buildingindustry, the norm being to finish late and at a higher cost thanoriginally envisaged Happily it has to be said that this is not always so,but it unfortunately happens more often than it should, or indeed moreoften than it need It is not surprising that the more informed clientsstarted to seriously consider and use the project managementtechniques which were proving well worth while in the United States

2.5 INTRODUCTION OF PROJECT MANAGEMENT

2.5.1 These techniques were introduced into the UK in the early 1960s

to control the Southampton Ocean Terminal project By the end of the1960s the then Ministry of Public Building and Works, having studiedthat project, had adapted and implemented their use to manage its ownnew building works programme: the same was happening elsewhere,but not as a firm policy

2.5.2 With this redefined role of overall managerial responsibilitygiven to them, PMs concentrated on solving the principal problems oftime and cost overruns Experienced clients, advised by their ProjectManagers, and by the more enterprising members of the buildingindustry, developed new, or refined existing, techniques forprocurement, such as management fee, management contracting,construction management and design and construct, primarily aimed atreducing the overall procurement time by overlapping the design andconstruction stages An added refinement has been the role of the PMwithin the building contract, giving more authority to act directly in theclient interest

2.5.3 Experienced clients with their own in-house PMs tend to be inthe lead in developing new techniques and adapting new systems.Their objective is to improve their efficiency in dealing with problems

as and when they arise and, more importantly, foreseeing where andwhen they are likely to arise The consequential reduction in cost of theprojects and having them delivered on time result in a better return oninvestment or lower taxes, depending on the client

2.5.4 It augurs well for the profession that papers on these activitiesare published regularly in several professional journals and in thecommercial technical press, in order that all may benefit, and also thatindependent consultancy practices are now contributing to thisdevelopment more and more

2.6 WHY A PROJECT MANAGERl

2.6.1 Many of the experienced client organisations which undertakethe larger, more complex, projects are themselves large and complex,frequently having a bureaucratic management structure in order tocope with a diversity of activities Within these organisations when a

The Client 15management problem arises, another level of management is ofteninserted to resolve the situation, which is seldom totally successful Ifthis is so, why should the additional level of a Project Manager on abuilding project be successful? In the past the component members ofthe construction industry have performed with tunnel vision, eachlooking to its own interest, with the resultant fragmentation actingtotally against the client's interest and in the longer term against theirown.

2.&.2 The objective, if it can be so called, has been for a disparatecollection of entities to go about the construction of some structureunder their own sets of rules The objective has always been thestructure, with regard to neither the commercial needs of, nor theconsequences to, the c1ient-a1l that matters is what is right under theterms of the contract As an example, if a contractor incorporatesmaterial which is not strictly in accordance with the specification, aninstruction is normally issued to replace it; if this results in delay it isthe builder's problem under the terms of the contract The externalconsequences to the client of such events within the contract oftenseem to be immaterial to a project team who consider that they arethere to ensure that the client receives what is contracted for, comewhat may: how often is the client's view sought in thesecircumstances? Not often enough!

2.&.3 Project management is a client-oriented activity, which hasdeveloped along two main paths The first was the growth of theclient's own in-house project management service, the other being therapidly developing independent consultancy service, which clientswithout an in-house facility may use as needed and which those clientswith such a facility can also use if, as and when required

2.7 IN-HOUSE MANAGEMENT

2.7.1 Most organisations with a large property holding will have an house facility for the property's administration and maintenance.Where there is an appreciable programme of new construction, so thein-house staffing levels may increase as the workload increases in order

in-to deal with the higher level of activity for the foreseeable future.Alternatively, in-house staff may be kept to an optimum level whichcan deal with the minimum foreseeable workload, with independentconsultants commissioned to handle the excess

2.7.2 PMs employed direct within a client organisation start with anumber of advantages: they get to know the management system andthe rule book they have to operate, the senior managers and directors,their structure and respective authorities; and are familiar with thevarious standards, procedures and end product required by theirorganisation; above all, in-house Project Managers should knowinstinctively, with their knowledge and understanding of theorganisation that they work for, the parameters within which they are

to operate, and when it is in their employer's best interest that eventsdictate that those parameters should be set aside Such knowledge is ofparamount importance, when dealing with the usual managementpressures, but is indispensable in a crisis when there is no time to referback to senior management and the Project Manager has to make an

on the spot decision

2.7.3 There can be drawbacks to the in-house project managementsystem, such as when a Project Manager is not the Project Manager butsimply a progress chaser cum postman: this, however, is something fordiscussion later

2.8 MANAGEMENT GUIDES

2.8.1 Many of the larger client organisations which have abureaucratic structure will have produced procedural guides,handbooks or manuals, intended to regulate the project procurementprocess of each project they undertake, along sound and efficient lines.Basically there are good reasons for these guides: Project Managers andtheir teams have to work alongside the personnel from otherdepartments within the organisation, such as finance, administration,operations and estate maintenance The activities of all departmentsconcerned with each project must be co-ordinated or chaos willprevail; hence the basic need for management guides arises Initiallysuch guides set out to lay down the authority of the Project Managerand the interrelated activities that the PM has with the departmentsconcerned with the project Inevitably the detailed rules within theguide proliferate, as succeeding problems are encountered and theconsequential alterations and additions to the guide produce even morechecks and burdens onto the managerial process

2.8.2 A point which senior management in such organisations mustbear in mind is that project management guides are there for that pur-

The Client 17

pose and not for running the organisation An over-detailed guide canbecome such a strait-jacket that Project Managers spend too much timelooking at the guide and not enough at the project problems All pro-ject management guides should have as rule number one: 'The rules inthis guide are to be interpreted with common sense at all times' Seniormanagers who balk at this are not employing the right calibre PMs.2.8.3 It is strongly recommended that a senior management audit beundertaken at regular intervals to ensure that the management guidedoes not in itself add unnecessarily to the cost of project managementwith time-wasting procedures

2.9 CONSULTANT PROJECT MANAGEMENT SERVICES

2.9.1 Independent project management practices may be engaged by

a client for whom they have worked previously or by one who is totallyunknown to them The client may be experienced or one setting out onthe first project Whatever the circumstances, the independent ProjectManager has the initial task of finding out about the client's ownorganisation and the personnel involved In practice full details of theorganisation will emerge gradually as work on the project develops,but it will be useful for the PM to prepare an 'information required list'

in advance, which can be completed as the project progresses

UK cannot make any decision on large projects without a main boarddirector from the US being present In such circumstances the PM may

have to recommend a special communications link to the person withthe authority to expedite matters.

2.10.2 Apart from those special circumstances, the involvement of anumber of responsible people from various levels and departmentsthrough the company or organisation can create chaos if not properlycontrolled The creation of a building committee on which all partiesconcerned are represented may be the best arrangement for getting themain routine work done; this functions particularly well if thecommittee chairman has the necessary authority to make all thedecisions

2.10.3 Having one client-based person with the absolute authority tocontrol the project is the ideal situation and such a person normallyexists, even though it is someone who is carrying a heavy workload inaddition to the building project who may not always be readilyavailable Although business commitments and possibly the remoteness

oftheir co-location may cause difficulties, there must always be a class working relationship maintained between the client authority andthe PM Keeping contact on a personal basis is a golden rule for PMs,which must be maintained throughout the project

first-2.10.4 Consultant Project Managers should always be aware of thehierarchy within the client organisation The dilemma often arises as towhether to short-circuit the system in order to get a timely response, or

to let the system run its course, possibly to the detriment of the project.There can be no rules for these situations, as the PM is potentially on aloser whichever route is selected The correct path can only be one ofpersonal judgement, bearing in mind the personalities concerned, theposition they hold, and the potential seriousness of the effect of theproblem on the project and the probable subsequent personal relationsproblems which short-circuiting can cause A possible solution is to putthis scenario, tactfully, to a very senior member of the clientorganisation at a very early stage, preferably with other client personnelpresent; the response to a then hypothetical situation should providethe means to resolving the dilemma at a later date without too muchdifficulty, but some adverse reaction is still likely to occur

2.10.5 On any large project it is good practice to have the clientinstitute a small cadre of staff to handle information gathering anddistribution within their organisation They can be invaluable inassisting the project team at every stage of the project To name but

The Client 19

one example, the British Library appointed a team to work on their StPancras project who have been involved in all stages from developingthe Brief, researching and advising the designers on the impact on thebuilt environment within the new building when stocked with books,the process of 'moving in' and managing the new building oncompletion

2.10.6 It is essential for PMs to establish to which named person theyare responsible and respond It is also necessary to obtain names of anyother personnel within the client organisation with whom the designteam may discuss the very necessary matters of routine operation,briefing queries and other relevant subjects

2.11 CLIENT'S OBJECTIVES

2.11.1 It is important to know from the outset as much detail aspossible of the client's objectives in respect of the project: How muchstrategic planning has been done? How does the building project fit inwith that strategic programme? What are the functions of the buildlngi

Is there a cost limit to be observed? Has the Brief been written, and ifnot, who will undertake this task? Has a site been selected, or are thereoptions to be considered, or does the client wish the PM to be involved

in discussions on leasing, extending existing premises or building new?Does the client wish the PM to become involved in any financingarrangement? Are there any funding agencies involved now, or to beinvolved in the future? As funding agencies frequently impose specificconditions on design, management, contracts and other matters, whatspecific conditions are required on this particular project?

2.11.2 One aspect which will be pertinent at the start to the projectprogramme is whether or not the client has an overall strategicprogramme Is there any manufacturing or processing plant to beacquired, delivered and installed? Is a phased hand-over required, and

if so, what elements of the building are involved? The need for testingand commissioning plant and other installations prior to acceptanceand use also has to be considered, as does the need for PMinvolvement in staffing matters, such as recruitment and training of staff

to run the building on completion or access for supervising theinstallation of equipment in a phased hand-over?

2.12 CLIENT'S PRIORITIES

2.12.1 Satisfying a client requirement within a specified time and cost

is said to be the raison d/~tre for a Project Manager The usualimplication is that these three aspects are of equal importance to theclient; this is not necessarily the case at the outset of a project, and itmay change during the course of a project

2.12.2 Financial constraints can affect the management of a project intwo ways: an out-turn cost limit is often imposed to keep the client'sexpenditure within set, affordable limits, but cash flow, or annualexpenditure, may also be of paramount importance to a client Thetime to complete is frequently vital, particularly in the commercialsector, but circumstances may reduce the priority A client at the outsetrequests a facility of a particular quality and scope considered to beneeded at that time

2.12.3 The PM must establish whether the client has an overridingpriority for one, or two, of the three basic management objectives and

is prepared to be more relaxed about the outcome of the remainder, orattaches equal importance to all three The permitted degree of'relaxation' must be discussed and fully understood by all parties inorder to avoid recriminations at the end of the project Instructions by aclient such as 'finish ontime at any cost' may ensure timely completionbut the final cost of that directive may not be quite as acceptable aswas originally implied Advice must be given on the possibleconsequences in terms of the out-turn cost if the instruction is takenliterally

2.12.4 It can happen that a client's priority may change during thecourse of a project: the Queen Elizabeth II Conference Centre,Westminster, was a case in point At the commencement, keepingwithin budget and producing an up-to-date facility of high quality forinternational conferences were of higher priority than time, as the firstmajor function for the building was not envisaged for eight monthsafter its then due date for completion This period was originallyintended for furnishing the building and detailed commissioning todebug any problems in the complex systems, particularly InformationTechnology (In. The picture changed sharply 30 months into a 45month contract, which was running about six weeks late, when theUnited Kingdom's Presidency of the Ee, and the need for a fullyoperative Centre, were advanced by six months Matters were made

The Client 21

more complicated by the EC secretariat having to obtain access to thebuilding to decide on furnishing layouts, allocation of rooms and manyother matters ahead of the completion date The priorities thenchanged, time was of the utmost importance, but neither the qualityand scale of the provision nor the budget was changed

2.12.5 It is a matter of judgement by the PM as to whether the designteam is made aware of any of the client's preferred priorities, orprobably more particularly any relaxations which the client may beprepared to make Sometimes it is better for the PM to retain thisknowledge, sometimes to acquaint the Design Team Leader (DTL) only;but as we deal with intelligent people, it will not take long for the rest

of the project team to comprehend the situation, as decisions will tend

to take the client's priority into account

2.13 BUILDING USER/PROJECT TEAM RELATIONSHIP

2.13.1 It frequently happens that the client will not be the ultimateuser; this may be due to the client's leasing the facility to anotherperson, company or organisation or to the client's being anadministrative department within a large organisation and the user'sbeing a production department Once identified, it is essential for theuser to have an input into the project from as early a stage as possible.2.13.2 When the building users are brought into the design process,they often require detailed changes, particularly if their involvementstarts late and their understanding of the already prepared drawings andspecification increases It is obviously sound common sense tointegrate the users into the process as soon as possible There will bechanges and additions to the Brief as changes arise from theintroduction of the user's differing processes or uses This is anotherarea which requires tight management; it is for the client to approvethese changes and the project team must be instructed not toimplement any user change without formal approval being receivedfrom the client

A procedure for investigating and evaluating proposed user changesand reporting on time/cost consequences by the project team should beincorporated into the client's own change control system User-initiated changes must be separately identified and reported to theclient Asrental charges may be affected, the client's instruction on thisshould be sought, which should clarify the extent to which on-costs

should be apportioned.

2.13.3 It is inevitable that members of the project team will meet withusers to discuss their requirements; it is also quite possible forenthusiastic juniors and occasionally some seniors to over-embellishsuch changes

2.13.4 Occasionally an ultimate user will require changes and beprepared to accept the cost as a direct charge rather than as a rentaladjustment Again there is a need to ensure that the total costconsequences in terms of the construction contract and fees are madeknown to both the client and the user, preferably before the work is put

in hand: there may well be occasions when serious embarrassmentcould ensue if a small variation results in an extension of time on alarge contract

2.14 FUNDING AGENCIES

2.14.1 Until comparatively recently the arrangements made by aclient for financing a project rarely affected the project team; this wasthe client's province Occasionally a client would ask for estimates to

be prepared covering an all-inclusive out-turn cost with fees, VAT and

a contingency to cover the unknowns together with an expenditureforecast: thereafter all financial arrangements were the sole concern ofthe client, unless subsequent amplification was required

2.14.2 It is not difficult to understand why the various fundingagencies are becoming more directly involved in projects Thefinancial failure of a client who has borrowed money to finance aproject and who goes into liquidation will probably result in thefunding agency's losing most, if not all, of the money advanced.Funding agencies broadly fall into two categories: investmentinstitutions which take a long-term interest in a property looking for asound return on their investment, and financing agencies whoseinterest ceases on completion of the project, or shortly thereafter.2.14.3 In both cases there is risk of loss and understandably thefinanciers wish to minimise that risk to the maximum extent possible

So it will be that in the agreement drawn up with the building client,the funding agency has certain rights of oversight, and possibly certainrights of issuing directives, on the project through all its phases, and

The Client 23

other rights in the event of the financial failure of the building client.These will all have an impact on the PM's task The funding agencymay well appoint a separate team, whose remit will be to examine andreport on the quality of the design and the PM's and the project team'sperformances in keeping the project on target as regards both time andcost Their first task may be to examine the ability of the ProjectManager, the project management team and the design team if theyhave already been selected; should their report be unfavourable in anyway, it is possible that the financier will insist on changes

2.14.4 The funding agency's team monitoring of the design, theproposed basis of contracting, costings and cost check exercises, aswell as tenders received and the performance through the constructionprocess, may result in imposed changes at any time These changeswould normally be intended to enhance the value of the finishedbuilding from an investment or resale point of view, so protecting thefunding agency's investment

In the best interests of both client and funding agencies, they shouldform a small joint committee with a nominated chairman to act as asingle point of authority

2.14.5 Construction of the British Telecom headquarters building inLondon was stopped for some considerable time while the structuralframe was redesigned in order to take a higher superimposed floorloading than BT actually required This gave greater flexibility to thepotential use of the building should BT give up its tenancy at any time

in the future

2.14.6 The funding agency's monitoring team will normally have theright to attend all meetings at which progress, both physical andfinancial, is being reported and may also look for an involvementwhich enables them to advise their employer on proposed changesprior to implementation

2.14.7 As soon as the monitoring team's appointment has been made,the Project Manager should call a meeting between both them and theproject team at which the monitoring activities and the information thefunding agency's team require are fully discussed Experience showsthat it is probable that the information will be sought in a completelydifferent way and to a depth not previously contemplated; an example

is that quantity surveyors may be expected to produce detai ledbreakdowns of costs for mechanical and electrical services for tax