Construction management for industrial projects : a modular guide for project managers

Construction Management for Industrial Projects: A Modular Guide for Project Managers......Page 5
Contents......Page 7
Preface......Page 19
1. Introduction......Page 21
2.1 The Principle of Project Management......Page 25
2.2 Project Characteristics......Page 26
2.3 Project Life Cycle......Page 29
2.3.1 Initiation of the Project......Page 32
2.3.1.1 Getting to the Scope Baseline......Page 34
2.3.2 Feasibility Study......Page 35
2.3.3 Feed (Preliminary) Engineering......Page 36
2.3.4 Detail Engineering......Page 40
2.3.5.1 What Is the DSP?......Page 42
2.3.5.5 Why Is It Important?......Page 43
2.3.5.8 Who Is Responsible for this Document?......Page 44
2.3.6 Design Management......Page 45
2.3.7 Execution Phase......Page 46
2.4 Is this Project Successful?......Page 47
2.4.1 Project Management Goals......Page 48
2.4.1.3 Project Time Management......Page 49
2.4.1.6 Project Human Resource Management......Page 50
2.4.1.9 Project Procurement Management......Page 51
2.5.2 Define the Scope of Work......Page 52
2.5.4 Define the Available Resources......Page 53
2.5.7 Accept the Master Plan......Page 54
2.5.10 Comparing Between Actual Work and Master Plan Cost......Page 55
2.6 Project Manager Skill......Page 56
3.1 Introduction......Page 59
3.2 Project Cash How......Page 60
3.2.1 Depreciation Methods......Page 63
3.2.1.2 Declining-Balance Method......Page 65
3.2.1.4 Sinking-Fund Method......Page 66
3.2.2 Method of Net Present Value (NPV)......Page 67
3.2.2.1 Inflation Rate......Page 68
3.2.3 Minimum Internal Rate of Return (MIRR)......Page 69
3.2.4 Payout Method......Page 70
3.3.1 Probability Theory......Page 71
3.3.2.1 Normal Distribution......Page 77
3.3.2.2 Log Normal Distribution......Page 82
3.3.2.3 Binominal Distribution......Page 83
3.3.2.4 Poisson Distribution......Page 86
3.3.2.5 Weibull Distribution (Rayleigh Distribution)......Page 88
3.3.2.6 Gamma Distribution......Page 89
3.3.2.8 Extreme Value (Gumbel Distribution)......Page 90
3.3.2.9 Pareto Distribution......Page 91
3.3.3.1 Triangular Distribution......Page 92
3.3.3.2 Uniform Distribution......Page 93
3.3.4.1 Chi-Square Test......Page 94
3.4 Decision Tree......Page 95
3.5 Monte-Carlo Simulation Technique......Page 100
3.6 Risk Adjusted Value (RAV)......Page 103
4.1 Introduction......Page 107
4.1.1 Plan Single Point of Accountability (SPA)......Page 110
4.1.2 Starting the Plan......Page 111
4.1.3 Work Breakdown Structure (WBS)......Page 115
4.2 Responsibilities of the Team......Page 117
4.3 Expected Activity Time Period......Page 119
4.4 Calculating the Activity Time Period......Page 120
4.5 Time Schedule Preparation......Page 121
4.5.2 Arrow Diagram Method (ADM)......Page 123
4.5.4 Critical Path Method (CPM)......Page 124
4.5.5 Program Evaluation and Review Technique (PERT)......Page 125
4.5.6 Example......Page 126
4.5.7 Application of the PERT Method......Page 132
4.5.7.2 Example......Page 133
4.6 Planning Overview......Page 136
5.2 Project Organization......Page 139
5.2.1.1 Project Organization as Part of the Company......Page 140
5.2.1.2 Independent Project Organization......Page 142
5.2.1.3 Matrix Organization......Page 143
5.2.2 Selecting the Best Organization......Page 145
5.3 Roles and Responsibilities of the Project Manager......Page 147
5.3.1 Project Manager as a Leader......Page 149
5.4 Administrative Organization for Total Quality Management......Page 150
5.5 Team Member Selection......Page 152
5.6 Managing the Team......Page 154
5.7.1 Example......Page 155
5.10 Information Transfer......Page 161
5.11 Quality Control in the Design Phase......Page 163
5.11.3 Change in the Design......Page 168
5.11.4 Approval of the Design......Page 173
6.1 Introduction......Page 177
6.2 Cost Types......Page 180
6.2.1 Cost Estimate......Page 181
6.2.1.2 Bottom-Up Estimates......Page 182
6.2.1.4 Parametric Estimates......Page 183
6.2.3 Detailed Cost......Page 188
6.3 Economic Analysis of Project Cost......Page 190
6.3.2 Organization Breakdown Structure (OBS)......Page 191
6.3.4 Work Packages......Page 192
6.3.5 Cost Control......Page 194
6.3.6 \"S\" Curve......Page 197
6.4 Cash Flow Calculation......Page 201
6.4.1 Project Cash Flow......Page 202
6.4.2 Impact on Increasing Cost......Page 203
6.4.4 Impact of Operational Efficiency......Page 204
7.1 Introduction......Page 207
7.2 Contracts......Page 209
7.2.2 The Lump-Sum Contract......Page 211
7.2.3 The Cost-Plus Contract......Page 212
7.3 Contracts Between an Owner and an Engineering Consultancy Office......Page 213
7.4 The Importance of Contracts for Project Quality Assurance (QA)......Page 214
7.5 Contracts in ISO......Page 215
7.6 FIDIC Contracts......Page 216
7.7 General Conditions in Contracts......Page 223
7.8 Arbitration and the Arbitrator......Page 225
7.9 Bids and Tenders......Page 226
7.9.1 Public (Open) Tender......Page 227
7.9.2 Limited Tender......Page 228
7.9.3 Negotiated Tender......Page 229
7.9.4 The Direct-Order Tender......Page 230
7.9.5 Tender Technical Evaluation......Page 231
7.9.6 Commercial Evaluation......Page 234
7.9.6.1 Commercial Evaluation Methods......Page 235
7.10 Closeout Report......Page 236
8.2 Quality Management Systems......Page 239
8.3 The ISO 9000 Standard......Page 241
8.4.2 Quality Plan......Page 242
8.4.3 Quality Control......Page 243
8.4.3.1 Why Is Quality Control Important?......Page 244
8.4.3.2 Submittal Data......Page 245
8.4.3.4 Methods of Laying Out and Checking Work......Page 246
8.4.3.5.2 Concrete Tests......Page 248
8.4.3.5.5 Plumbing Tests......Page 249
8.4.3.6.2 Inspection During Work-in-Progress......Page 250
8.4.3.7.1 Recording Logs......Page 251
8.4.3.7.2 Pre-installation Inspection Reports......Page 252
8.4.3.8 Quality Control Plans......Page 253
8.4.4 Quality Assurance......Page 254
8.4.4.2 The Responsibility of the Manufacturer......Page 256
8.4.4.3 Responsibility of the Owner......Page 257
8.5 Project Quality Control in Various Stages......Page 258
8.5.1 Feasibility Study Stage......Page 259
8.5.2 Quality Considerations During FEED (Front-End Engineering and Design) Preliminaries......Page 260
8.5.3 Quality Considerations of Detailed Study......Page 263
8.5.3.1 Design Quality Control......Page 265
8.5.4 Execution Phase......Page 266
8.5.4.2 Inspection Procedures......Page 267
8.5.4.3 Importance of Well-Prepared Contracts in Assuring Project Quality......Page 268
8.5.4.4.1 Checklists for Reviewers......Page 269
8.5.4.4.2 External Auditing......Page 271
8.6 Operational Phase of the Project......Page 275
8.7 The \"Total Building Commissioning System\"......Page 276
8.7.1.1 Identifying the Commissioning Team......Page 278
8.7.1.3 Developing Preliminary Commissioning Plan......Page 280
8.7.1.4 Commissioning for Certifications (LEED, Energy Star, etc.)......Page 288
8.7.1.5 Commissioning Agent Costs......Page 291
8.7.2 Design Stage......Page 292
8.7.2.1.1 Project Lifecycle of the Design Professional......Page 293
8.7.2.1.2 Project Lifecycle of the Construction Manager......Page 294
8.7.2.1.4 Commissioning Agent Qualifications......Page 295
8.7.2.1.5 Request for Qualifications (RFQ) for Commissioning Agent......Page 296
8.7.2.1.7 Review Owner\'s Project Requirements and Basis of Design......Page 297
8.7.2.1.9 Concept, DD, and CD Design Reviews......Page 298
8.7.2.1.10 Issues Log......Page 300
8.7.2.1.12 Update/Refine Commissioning Plan......Page 301
8.7.2.1.14 Written Test Procedures......Page 302
8.7.3.1 Review Submittals for Performance Parameters......Page 303
8.7.3.2 Develop and Utilize Construction Checklists......Page 304
8.7.3.4 Test Data Records......Page 305
8.7.3.5 Hold Commissioning Team Meetings and Report Progress......Page 306
8.7.3.6 Conduct Owner Training......Page 307
8.7.3.7 Turnover Commissioning Record......Page 309
8.7.4.2 Perform Deferred and Seasonal Testing......Page 311
8.7.4.4 Complete Final Commissioning Report......Page 312
8.7.4.4.1 Final Satisfaction Review with Customer Agency......Page 313
8.7.4.6 Recommissioning......Page 314
8.7.5 Advantages for Total Building Commissioning System......Page 315
9.1 Introduction......Page 317
9.2 Project Risks......Page 319
9.3 Risk Assessment......Page 323
9.4 Risk Identification......Page 324
9.4.1.1 Brainstorming......Page 326
9.4.1.2 Delphi Technique......Page 327
9.4.1.3 Nominal Group Technique......Page 328
9.4.1.5 Expert Interviews......Page 329
9.4.1.8 Documentation Review......Page 330
9.4.2 Grouping of Risks......Page 331
9.5 Defining Priorities......Page 332
9.5.1 Matrix Method......Page 333
9.5.2 Tabulated Method......Page 335
9.7 Risk Monitoring and Control......Page 337
9.9 Methods of Risk Avoidance......Page 339
10.2 Questions......Page 345
10.3 The Right Decisions......Page 370
References......Page 401
Index......Page 403
About the Author......Page 413