Construction Business Owner, July 2007

Project management is more than a familiar phrase to those of us in the construction industry; it is a job title for many of us. Maybe we aren't the project manager, but almost all of us work exclusively on projects. This is the nature of the construction industry, as projects are our lifeblood; they are the revenue-producing activities that we love to hate.  For many, they can bring joy and pain, profit and loss, and success and failure.

The question is not whether we are involved in project management, but, "How well will we manage projects?" Is it more pain than joy, loss than profit, and failure than success? 

Completion does not guarantee success. Completion is only one measurement for project success-the much more critical, long-term measurement is how well the project was managed. Many businesses are capable of completing projects, but those who do projects well succeed in the long-run. 

In order to not only complete the project but to also manage the project well, it is vital to have a comprehensive project plan. Developing a comprehensive project plan requires a commitment on the part of the project manager and project sponsor. Creating the project plan takes time and energy. To some it seems entirely unnecessary, as they may know exactly how to build a certain structure. But the point is not merely to do the work, but to do the work in a profitable and efficient manner. By drafting a project plan, the project manager is attempting to ensure that the project's deliverables are produced in an efficient and profitable manner. 

A Project Defined

Project management begins with an understanding of what a project is and what it is not. By recognizing the various parts of a project, we are better able to understand, and therefore, manage the project. 

A project:

• Is a unique activity or series of activities
• Has a definite starting date and ending date and
• Is constrained by scope, time and cost (See Figure 1)

Understanding the basic definition of a project allows helpful insight into the dynamics of a project.

The Project Dynamics

As stated in the definition, a project is constrained by scope, time and cost which reflects a relational dynamic. If you change one of the constraints, it will affect the other constraints. For example, if the scope of the project is changed to include new work, then the cost could be increased, and additional time will probably be needed. If the budget is slashed, you will probably have to reduce the scope of the project, or you will run out of time and money. If you are told to finish the project early, you will probably need to reduce the scope or hire additional resources, which will increase the cost. By understanding this relationship, it is easily seen how particular factors will positively or negatively affect a project. This influences those drafting the project plan. As they are developing the plan, they should take into account how various events or factors will affect these constraints. 

The Project Lifecycle

It is also important to understand the phases that every project will pass through. The five phases of every project include:

1. Initiation
2. Planning
3. Execution
4. Monitoring
5. Closing 

These phases act as a roadmap for your project, showing you where you have been and where you are going. Within each phase are specific tasks that should be accomplished to help assure that you successfully accomplish your project. 

Initiation-A project is authorized during the initiation phase of a project. Sometimes this is a formal authorization, and sometimes it is a rather informal procedure. The primary result of the initiation phase is three-fold:

1. A project manager is appointed
2. A complete description of the project is provided
3. Authorization to begin the project is given 

Once these three items have been accomplished, it is time to assemble a project team and begin work on the planning phase.

Planning-During the planning phase, the project team develops a comprehensive project plan that is comprised of a number of elements. The comprehensiveness of the project plan will depend upon the complexity and duration of the project. The project plan for smaller projects may be relatively brief. It is important to match the amount of planning to the complexity of a project. The comprehensive project plan should include some, if not all, of the following items:

1. Description of project work
2. Work breakdown structure (WBS)
3. Activity or work schedule
4. Project budget
5. Quality assurance plan
6. Project human resource plan
7. Communication plan for team members and stakeholders
8. Risk assessment and response plan
9. Purchasing and contract administration plan

Execution-The execution phase is where you put your plan into action. You know what work is to be done, who is to do it, when they are to do it and what materials and supplies are necessary, so you start to work as it has been outlined in your project plan. 

Monitoring-As soon as the Execution phase begins, the monitoring phase begins. As the actual project work is accomplished, you should be comparing it to your planned work. This is what the monitoring phase is all about: comparing actual to planned work. When the two are the same, or relatively the same, you should be happy with the results, but if the results vary too greatly, then it is time to investigate why. Maybe the plan was faulty, or you performed the work incorrectly. Regardless of the reason, you will need to repair the problem. Ideally, you have already identified the issue as a possible risk, which means you have a response plan in place. If not, you will need to return to the planning phase to develop a new plan of action to overcome the obstacle. The planning and the monitoring phases are iterative processes-you keep repeating them as needed throughout the project. As you monitor the project, you will undoubtedly learn valuable lessons. These lessons learned should be documented and inserted as an appendix to the project plan so that should the issue arise in the future, the lessons you learned can be reviewed.

Closing-Once the entire project plan has been executed and the project deliverables have been produced, it is time to close the project. During the closing phase of the project, there are a few items that need to be accomplished. First, the customer needs to accept the project deliverables. Once he recognizes that what your project produced is what he wanted, you can then proceed with closing the project. After the deliverables have been accepted, you need to reassign project team members, make sure all payments have been made to suppliers and subcontractors and update all project documentation.  Closing the project can be a relatively simple task if you have planned for it. By closing properly, you can make a smooth transition to your next project.

 

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