Table of Contents | Introduction | Understanding | Environment
Education | Summary | Appendix A | Appendix  B | Appendix C

Appendix A –
Summary of Major Functional Responsibilities of Project Management

The following brief descriptions describe the major functional responsibilities on a construction project.

A1 Strategic Planning

In large complex projects there is a need to do initial project management planning - in short, planning the plan. A logical sequence commences with a global project description and a clear statement of project objectives. Next follows a high level project Work Breakdown structure (WBS) with a corresponding project organization and functional responsibility chart.

Then comes the assignment of responsibilities, the development of a high level schedule network and consequent resource loading. It should then be possible to develop an optimized Master Schedule. The results of this planning effort should be assembled into a document known as the Project Plan. It should be one of the major deliverables of the project's Concept Phase, described in the text.æ Table A-1 shows the contents of a typical Project Plan.

A2 Planning and Scheduling

Scheduling, or time management, is one of the key functions of managing a project. Failure to achieve established milestone dates inevitably affect project costs unfavorably. There are four steps:

1. Planning: establishing the required activities, their logical sequence, restraints and interfaces
2. Scheduling: adding durations and resources and adjusting for optimum results
3. Monitoring: evaluating progress against plan
4. Control: exercising positive corrective action over unacceptable variances

A3 Budgeting and Estimating

At the earliest possible time, an acceptable project budget breakdown must be established, which properly reflects the best estimate of the work required to achieve the overall project objectives. This will form the basis for regular cost monitoring and reporting.

From time to time, updated cost estimates will be required, as well as detailed estimates of individual work packages. The quality and accuracy of these estimates will improve as the project proceeds and information becomes available in greater detail. In order to obtain "best value for money", major cost components may be subject to comparative "value analysis" where suitable alternative choices exist.

Table A-1: Typical Project Plan Content

A4 Cost Control and Accounting

Control of costs is achieved through monitoring, analyzing, reporting and exercising control over commitments and expenditures with due regard to schedule. A key element is maintaining visibility of the Forecast Final Cost of the Project and exercising corrective action in good time, by regular progress assessment and determination of future commitments and expenditures.

Project accounting deals with the control and historic recording of actual cash payments to consultants, contractors, suppliers others for services provided to the project in a manner which enables comparison with the project budget.

Definitive and detailed procedures are essential in this function to ensure the financial integrity of the project.

A5 Regular Status Reporting

Reporting on a regular basis, of timely up-to-date information, is essential to keep the client and others informed of the status of the project and to permit all necessary decisions and actions to be taken promptly. Typical reports include:

• General project status
• Progress compared to schedule
• Cost compared to budget
• Activity status of consultants, contractors and management
• Procurement status
• Permits, agreements and contract negotiations
• Construction status
• Completion certification & commissioning status

A6 Management of Design Consultants

This function ensures that the design work is proceeding in a timely manner and that the output of this work will be within the constraints of the project's scope and budget. It may include:

• Working with the owner to prepare a design brief outlining the project requirements to form the basis of consultant selection, including prequalification based on capability and staffing
• Selection recommendations
• Negotiating fee structures, terms of reference and responsibilities with the respect to the project team
• Award recommendations
• Briefing, expediting and ensuring regulatory and user input coordination

A7 Procurement and Contract Administration

The extent of special expertise and the level of effort required in this function is substantial, as will be seen from the following sub-sections.

      A7.1 Procurement

Procurement involves the systematic execution of procedures for purchasing all materials, equipment and services needed for the project, in good time, and in a manner which is cost effective. This process includes:

• Establishing procurement criteria and procedures based on good commercial practice and in agreement with the owner
• Interaction with the project scheduling and budgeting activities
• Agreement with the owner regarding signing and requisitioning authorities
• Prequalification of suppliers of goods and services, including sourcing, availability and market conditions
• Establishing suitable standard documents for proposals, tender calls, contract general and special conditions, and purchase orders
• Issue, receipt, assessment and recommendations for award in respect of proposals/bids/quotes
• Establishing a material management and control system, including verification of materials and equipment received
• Administration of contracts

      A7.2 Expediting

Expediting is essential to determine whether schedule objectives will be met, and what corrective action will be necessary to protect against unexpected developments with regard to deliveries. This applies to all materials, equipment and services needed for the project, whether procured externally or provided internally by the owner.

      A7.3 Quality Assurance and Control

Quality itself is the composite of material attributes, including performance features and characteristics, of the product or service required to satisfy the need to meet project objectives.

A quality assurance program, therefore, identifies these objectives and establishes a strategy of client interfacing for organizing and coordinating planned and systematic controls for maintaining established standards right from early design work through to commissioning.

Following identification of specific system requirements, a quality control program is necessary to exercise direct influence on results by the collection of specific technical data for analysis and decision as to acceptance or rejection.

      A7.4 Payment Certification

Payment certification involves verifying interim and final payment entitlement for every consultant, supplier and contractor engaged on the project in accordance with the terms of the respective contracts. However, in respect of suppliers and contractors, much of this work is delegated to the respective consultants who have a professional responsibility to ensure that the work conforms to their technical requirements. Nevertheless, the volume of paper work is substantial and must be closely integrated with Project Accounting.

A8 Management of Construction and Commissioning

      A8.1 Construction Management

Construction management includes the setting of a strategy, followed by its implementation, for the procurement of constructed work. Therefore, it is important that the project manager ensures that the construction manager oversees the following, to the extent that they are not incorporated into individual contract documents:

• Provides input to the design and reviews contract documents as to constructability and cost
• Provides input to the project schedule with respect to construction activities and logic
• Recommends tendering strategies and procedures for the selection of tenderers, including tenders for pre-purchased equipment
• Has responsibility for calling, receiving, evaluating and comparing tenders, and recommending contract awards
• Mobilizing and managing the construction site, including temporary facilities, site logistics, storage on and off site for pre-purchased materials and equipment, and general site conduct
• Mobilizing contractors, reviewing their schedules, manpower and methodology
• General day-to-day scheduling, coordination and supervision
• Expediting submission and review of shop drawings and samples
• Field contract administration, distribution of field clarifications, special work authorizations, and distribution of any change orders
• Claim avoidance measures
• Harmonious trade contractor and labor relations
• Monitors construction progress and cost
• Calls for inspection and reinspection of defective work
• Certification of contractors' physical progress
• Submission of required as-built drawings, operating manuals and instructions and similar contract completion documentation
• Administers the correction of faults during the warranty period

      A8.2 Commissioning

Typically, commissioning and start-up is carried out by the owner's users or operational staff who will actually run the facility. However, prior to start-up, every system and every part of the project must be brought into operational mode ready for formal handover. The whole project team is therefore required to assist by organizing and managing the transition from construction/installation to operation. A carefully developed set of commissioning procedures is necessary to ensure orderly and successful project completion, including:

• Responsibilities and organization
• Detailed equipment and systems commissioning and start-up sequence, including check-out, static tests, "dry and wet" operational tests, performance tests, etc.
• Client acceptance, including equipment and systems tagging, opportunities for training and general familiarization, designation of temporary working and storage areas for operations staff, etc.
• Deficiency lists, and their progressive correction
• Building occupancy permits
• Ensuring completion of all final contract documentation

Summary

Appendix B

**ææ The Technical Specification is often enlarged to contain all information either under "Technical Basis" or under parts of other sections.

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