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1、Title:Project Man ageme nt,29:4,359 363,2004#2004 Kluwer Academic Publishers.Writ ing for the Netherla nds.Special Issue:Project Man ageme nt Of In troduct ion Special Issue Michael E State n Georgetow n Un iversity An tho ny YEZER George Wash ington Un iversity Organizing for Project Management Org
2、anization of Project Participants The top man ageme nt of the owner sets the overall policy and selects the appropriateorga ni zati on to take charge of a proposed project.Its policy will dictate how the project life cycleis divided among orga ni zati ons and which professi on als should be en gaged
3、.Decisi ons by the topma nageme nt of the owner will also in flue nce the orga ni zati on to be adopted for projectma nageme nt.I n gen eral,there are many ways to decompose a project into stages.The mosttypical ways are:Seque ntial process ing whereby the project is divided into separate stages and
4、 eachstage is carried out successively in seque nce.Parallel process ing whereby the project is divided in to in depe ndent parts such that allstages are carried out simulta neously.Staggered processing whereby the stages may be overlapping,such as the use ofphased desig n-con struct procedures for
5、fast track operatio n.It should be pointed out that some decompositions may work out better than others,depending on the circumsta nces.In any case,the prevale nce of decompositi on makes thesubseque nt in tegrati on particularly importa nt.The critical issues invo Ived in orga ni zati on forproject
6、 man ageme nt are:How many orga ni zati ons are invo Ived?What are the relati on ships among the orga ni zati ons?Whe n are the various orga ni zati ons brought into the project?There are two basic approaches to orga nize for project impleme ntati on,eve n though many variati ons may exist as a resu
7、lt of differe nt con tractual relati on ships adopted by the owner an dbuilder.These basic approaches are divided along the following lines:Separatio n of orga ni zatio ns.Numerous orga ni zatio ns serve as con sulta nts or con tractors to the owner,with different organizations handling design and c
8、onstruction functions.Typical examples which invo Ive differe nt degrees of separati on are:traditi onal seque nce of desig n and con struct ion;professi onal con struct ion man ageme nt.In tegrati on of orga ni zati ons.A sin gle or joi nt ven ture con sist ing of a nu mber of orga ni zati ons with
9、 a sin gle comma nd un dertakes both desig n and con structi on functions.Two extremes may be cited as examples:own er-builder operati on in which all work will be han died in house by force acco unt;tur nkey operati on in which all work is con tracted to a ven dor which is resp on sible for deliver
10、i ng the completed project.The organization for the management of construction projects may vary from case to case.On one extreme,each project may be staffed by exist ing pers onnel in the fun cti onal divisio ns ofthe orga ni zati on on an ad-hoc basis as show n in Figure 1.1 un til the project is
11、completed.Thisarra ngeme nt is referred to as the matrix organization as each project manager must negotiate allresources for the project from the existi ng orga ni zatio nal framework.On the other hand,theorga ni zati on may con sist of a small cen tral fun cti onal staff for the exclusive purpose
12、ofsupport ing various projects,each of which has its functional divisions as shown in Figure 1.2This decentralized set-up is referred to as the project-oriented orga ni zati on as each projectma nager has aut onomy in managing the project.There are many variati ons of man ageme nt stylebetwee n thes
13、e twoextremes,depe nding on the objectives of the orga ni zati on and the nature ofthe construction project.For example,a large chemical company with in-house staff for pla nnin g,desig n and con struct ion of facilities for new product lines will n aturally adopt the matrixorga nizatio n.On the oth
14、er hand,a con struct ion compa ny whose existe nee depe nds en tirely on themanagement of certain types of construction projects may find the project-oriented orga ni zati on particularly attractive.While orga ni zati ons may differ,the same basic prin ciples of man ageme ntstructure are applicable
15、to most situatio ns.Figure 1.1 A Matrix Orga ni zati on Figure 1.2 A Project-Oriented Organization To illustrate various types of orga ni zati ons for project man ageme nt,we shall con sider twoexamples,the first one representing an owner organization while the second one representing theorganizatio
16、n of a construction management consultant under the direct supervision of the owner.Traditional Designer-Constructor Sequence For ordinary projects of moderate size and complexity,the owner often employs a designer(an architectural/engineering firm)which prepares the detailed plans and specification
17、s for theconstructor(a general contractor).The designer also acts on behalf of the owner to oversee theproject implementation during construction.The general contractor is responsible for theconstruction itself even though the work may actually be undertaken by a number of specialtysubcontractors.Th
18、e owner usually negotiates the fee for service with the architectural/engineering(A/E)firm.In addition to the responsibilities of designing the facility,the A/E firm also exercises tosome degree supervision of the construction as stipulated by the owner.Traditionally,the A/Efirm regards itself as de
19、sign professionals representing the owner who should not communicatewith potential contractors to avoid collusion or conflict of interest.Field inspectors working foran A/E firm usually follow through the implementation of a project after the design is completedand seldom have extensive input in the
20、 design itself.Because of the litigation climate in the lasttwo decades,most A/E firms only provide observers rather than inspectors in the field.Even theshop drawings of fabrication or construction schemes submitted by the contractors for approvalare reviewed with a disclaimer of responsibility by
21、the A/E firms.The owner may select a general constructor either through competitive bidding or throughnegotiation.Public agencies are required to use the competitive bidding mode,while privateorganizations may choose either mode of operation.In using competitive bidding,the owner isforced to use the
22、 designer-constructor sequence since detailed plans and specifications must beready before inviting bidders to submit their bids.If the owner chooses to use a negotiatedcontract,it is free to use phased construction if it so desires.The general contractor may choose to perform all or part of the con
23、struction work,or actonly as a manager by subcontracting all the construction to subcontractors.The generalcontractor may also select the subcontractors through competitive bidding or negotiated contracts.The general contractor may ask a number of subcontractors to quote prices for the subcontractsb
24、efore submitting its bid to the owner.However,the subcontractors often cannot force thewinning general contractor to use them on the project.This situation may lead to practices knownas bid shopping and bid peddling.Bid shopping refers to the situation when the generalcontractor approaches subcontra
25、ctors other than those whose quoted prices were used in thewinning contract in order to seek lower priced subcontracts.Bid peddling refers to the actions ofsubcontractors who offer lower priced subcontracts to the winning general subcontractors inorder to dislodge the subcontractors who originally q
26、uoted prices to the general contractor priorto its bid submittal.In both cases,the quality of construction may be sacrificed,and some statestatutes forbid these practices for public projects.Although the designer-constructor sequence is still widely used because of the publicperception of fairness i
27、n competitive bidding,many private owners recognize the disadvantages of using this approach when the project is large and complex and when market pressures requirea shorter project duration than that which can be accomplished by using this traditional method.Professional Construction Management Pro
28、fessional construction management refers to a project management team consisting of aprofessional construction manager and other participants who will carry out the tasks of projectplanning,design and construction in an integrated manner.Contractual relationships amongmembers of the team are intende
29、d to minimize adversarial relationships and contribute to greaterresponse within the management group.A professional construction manager is a firm specializedin the practice of professional construction management which includes:Work with owner and the A/E firms from the beginning and make recommen
30、dations ondesign improvements,construction technology,schedules and construction economy.Propose design and construction alternatives if appropriate,and analyze the effects of the alternatives on the project cost and schedule.Monitor subsequent development of the project in order that these targets
31、are not exceeded without the knowledge of the owner.Coordinate procurement of material and equipment and the work of all construction contractors,and monthly payments to contractors,changes,claims and inspection for conforming design requirements.Perform other project related services as required by
32、 owners.Professional construction management is usually used when a project is very large orcomplex.The organizational features that are characteristics of mega-projects can be summarizedas follows:The overall organizational approach for the project will change as the project advances.The“functional
33、”organization may change to a“matrix”which may changoertgoanaization“(nporot ject necessarily in this order).Within the overall organization,there will probably be functional,project,and matrix suborganizations all at the same time.This feature greatly complicates the theory and the practice of mana
34、gement,yet is essential for overall cost effectiveness.Successful giant,complex organizations usually have a strong matrix-type suborganization at the level where basic cost and schedule control responsibility is assigned.This suborganization is referred to as a“cost center”or as a“hepardoejedctby”a
35、 paronjdecist manager.The cost center matrix may have participants assigned from many different functional groups.In turn,these functional groups may have technical reporting responsibilities to several different and higher tiers in the organization.The key to a cost effective effort is the developm
36、ent of this project suborganization into a single team under the leadership of a strong project manager.The extent to which decision-making will be centralized or decentralized is crucial to the organization of the mega-project.Consequently,it is important to recognize the changing nature of the org
37、anizational structureas a project is carried out in various stages.Owner-Builder Operation In this approach an owner must have a steady flow of on-going projects in order to maintaina large work force for in-house operation.However,the owner may choose to subcontract asubstantial portion of the proj
38、ect to outside consultants and contractors for both design andconstruction,even though it retains centralized decision making to integrate all efforts in projectimplementation.Example 1.1 U.S.Army Corps of Engineers Organization.The District Engineer Osffice of the U.S.Army Corps of Engineers may be
39、 viewed as atypical example of an owner-builder approach as shown in Figure 1.3.Figure 1.3 Orga ni zatio n of a District of Corps of Engin eers In the District Enginee r s Office of the U.S.Corps of Engineers,there usually exist anEngineering Divisio n and an Operati ons Divisio n,an d,i n a large d
40、istrict,a Con structio n Divisio n.Un der each divisio n,there are several bran ches.Si nee the authorizati on of a project is usually in itiated by the U.S.Con gress,the planning and design functions are separated in order tofacilitate operations.Since the authorization of the feasibility study of
41、a project may precede theauthorizati on of the desig n by many years,each stage can best be han dled by a differe nt branch in the Engin eeri ng Divisi on.If con structi on is ultimately authorized,the work may be han dled bythe Con structi on Divisio n or by outside con tractors.The Operati ons Div
42、isio n han dles theoperati on of locks and other facilities which require routi ne atte ntio n and maintenan ce.When a project is authorized,a project man ager is selected from the most appropriatebra nch to head the project,together with a group of staff draw n from various bran ches to formthe pro
43、ject team.When the project is completed,all members of the team including the projectmanager will return to their regular posts in various branches and divisions until the next projectassignment.Thus,a matrix organization is used in man agi ng each project.Turnkey Operation Some owners wish to deleg
44、ate all resp on sibilities of desig n and con structi on to outside con sulta nts in a tur nkey project arran geme nt.A con tractor agrees to provide the completedfacility on the basis of performa nee specificati ons set forth by the owner.The con tractor mayeve n assume the responsibility of operat
45、ing the project if the owner so desires.In order for aturnkey operation to succeed,the owner must be able to provide a set of un ambiguousperforma nee specificati ons to the con tractor and must have complete con fide nee in the capabilityof the con tractor to carry out the missi on.This approach is
46、 the direct opposite of the owner-builder approach in which the ownerwishes to retain the maximum amount of control for the desig n-con structio n process.Example 1.2 An Example of a Turnkey Organization.A 150 MW power plant was proposed in 1985 by the Texas-New Mexico Power Companyof Fort Worth,Tex
47、as,which would make use of the turnkey operation.Upon approval by theTexas Utility Commissi on,a con sortium con sisti ng of H.B.Zachry Co.,West in ghouse ElectricCo.,and Combusti on Engineering Inc.,would design,build and finance the power plant forcompletion in 1990 for an estimated con struct ion
48、 cost of$200 millio n in 1990 dollars.Thec on sortium would assume total liability duri ng con struct ion,in cludi ng debt service costs,an dthereby elimi nate the risks of cost escalatio n to rate payers,stockholders and the utility compa nyman ageme nt.Leadership and Motivation for the Project Tea
49、m The project man ager,i n the broadest sense of the term,is the most importa nt pers on for thesuccess or failure of a project.The project manager is responsible for planning,organizing andcontrolling the project.In turn,the project manager receives authority from the management ofthe organization
50、to mobilize the necessary resources to complete a project.The project manager must be able to exert interpersonal influence in order to lead the projectteam.The project manager often gains the support of his/her team through a combination of thefollowing:Formal authority resulting from an official c