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LECTURE NOTES ON CONSTRUCTION PROJECT …

LECTURE NOTES ON CONSTRUCTION PROJECT MANAGEMENT Emad Elbeltagi, , , Professor of CONSTRUCTION Management Structural Engineering Department, Faculty of Engineering, Mansoura University CONSTRUCTION PROJECT Management 2009 Copyright 2009 by the author. All rights reserved. No part of this book may be reproduced or distributed in any form or by any means, or stored in a data base or retrieval system, without the prior written permissions of the author. i PREFACE In the Name of ALLAH the Most Merciful, the Most Compassionate All praise is due to ALLAH and blessings and peace be upon His messenger and servant, Muhammad, and upon his family and companions and whoever follows his guidance until the Day of Resurrection.

Construction project management is a relatively young field. However, its impact has ... 3.3 Estimating Activity Duration and Direct Cost 65 3.4 Exercises 68 CHAPTER 4: PROJECT SCHEDULING 4.1 The Critical Path Method 75 4.2 Calculations for the Critical Path Method 76 4.2.1 Activity-On-Arrow Networks Calculations 76 ...

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Transcription of LECTURE NOTES ON CONSTRUCTION PROJECT …

1 LECTURE NOTES ON CONSTRUCTION PROJECT MANAGEMENT Emad Elbeltagi, , , Professor of CONSTRUCTION Management Structural Engineering Department, Faculty of Engineering, Mansoura University CONSTRUCTION PROJECT Management 2009 Copyright 2009 by the author. All rights reserved. No part of this book may be reproduced or distributed in any form or by any means, or stored in a data base or retrieval system, without the prior written permissions of the author. i PREFACE In the Name of ALLAH the Most Merciful, the Most Compassionate All praise is due to ALLAH and blessings and peace be upon His messenger and servant, Muhammad, and upon his family and companions and whoever follows his guidance until the Day of Resurrection.

2 CONSTRUCTION PROJECT management is a relatively young field. However, its impact has been quite remarkable. It has become an important practice for improving the efficiency of CONSTRUCTION operations around the world. This book deals with some topics and tools of the large field of PROJECT management. This book is dedicated mainly to undergraduate engineering students, especially Civil Engineering students where most of the applications are presented in the civil engineering field. It provides the reader with the main knowledge to manage a CONSTRUCTION PROJECT from preliminary stages to handover. It includes eight chapters: Chapter 1 provides a general introduction to CONSTRUCTION projects in terms of their types, PROJECT life cycle and the main players involved.

3 Chapter 2 is dedicated for the contract strategy. The planning stages of a CONSTRUCTION PROJECT are presented in chapter 3. Chapter 4 is dedicated for presenting different scheduling techniques along with the schedule representation. Chapter 5 is dedicated to discuss the scheduling methods on non-deterministic activity durations. The scheduling of linear projects is presented in chapter 6. Chapter 7 is dealing with both the resource scheduling and smoothing problems. The schedule compression is, also, presented in chapter 8. Chapter 9 is dedicated for the PROJECT finance and cash flow analysis. Finally, chapter 01 is dedicated for PROJECT control. Many solved examples have been added to enable the students to understand the material presented in this book.

4 Also, each chapter is followed by exercises for training purposes. Finally, May ALLAH accepts this humble work and I hope it will be beneficial to its readers. ii TABLE OF CONTENTS CHAPTER 1: INTRODUCTION The Need for PROJECT Management 1 The CONSTRUCTION PROJECT 2 The PROJECT Scope and Goals 3 The PROJECT Life-Cycle 6 Preconstruction phase 9 Procurement phase (Bidding and award phase)

5 10 CONSTRUCTION Phase 10 Closeout Phase 11 Major Types of CONSTRUCTION Projects 11 Residential Housing CONSTRUCTION 11 Institutional and Commercial Building CONSTRUCTION 12 Specialized Industrial CONSTRUCTION 13 Infrastructure and Heavy CONSTRUCTION 13 CONSTRUCTION Projects Participants 14 The Owner (Client) 14 The Design Professionals 15 The CONSTRUCTION Professionals 15 The PROJECT Manager 16 Exercises 17 CHAPTER 2.

6 CONTRACT STRATEGY What is a Contract 19 Selection of Contract Type 20 PROJECT Objectives 21 PROJECT Constraints 22 PROJECT Delivery Methods 23 iii Traditional Approach 23 Direct Labor 24 Design-Build 24 Turnkey 25 Build-Operate-Transfer (BOT) 25 Professional CONSTRUCTION Management (PCM)

7 26 Contractual Relationships 26 Types of Contracts 28 Lump-sum Contract 28 Admeasurement Contract 29 Cost-reimbursable Contract (cost-plus contract) 30 Target Cost Contract 30 Time and Material (T&M) Contract 31 Contract Administration 31 Contract Documents 32 Conditions of Contract 33 The Standard (general)

8 Forms of Conditions of Contract 34 Special Conditions of Contract 36 CONSTRUCTION claims Contract 37 Selecting the Contractor 38 Sub-Contracting 38 Exercises 39 CHAPTER 3: PROJECT PLANNING Introduction 42 PROJECT Planning Steps 43 Work Breakdown Structure (WBS) 44 WBS and organizational breakdown structure (OBS)

9 47 WBS coding 47 iv PROJECT Activities 48 Activities Relationships 52 Logical relationship considering resource constraints 54 Overlap or lag 55 Types of activities relationships 58 Drawing PROJECT Network 58 Activity on arrow network (AOA) 59 Activity on node network (AON) 60 Comparison between AOA and AON 61 estimating Activity Duration and Direct Cost 65 Exercises 68 CHAPTER 4.

10 PROJECT scheduling The Critical Path Method 75 Calculations for the Critical Path Method 76 Activity-On-Arrow Networks Calculations 76 Forward path 77 Backward path 79 Float calculations 81 Identifying the Critical Activities 83 Precedence Diagram Method (PDM) 83 Time-Scaled Diagrams 84 Schedule Presentation 88 Criticisms to Network Techniques 89 Solved Examples 90 Example 1 90 Example 2 91 Example 3 92 Example 4


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