Student's Manual

Student's Manual

to Accompany

PROJECT MANAGEMENT

FOR ENGINEERING

AND CONSTRUCTION

3rd Edition

Garold D. Oberlender, Ph.D, P.E.

Professor Emeritus of Civil Engineering

Oklahoma State University

McGraw-Hill, Inc.

New York Chicago San Francisco Athens

London Madrid Mexico City Milan

New Delhi Singapore Sydney Toronto

Introduction

This document is intended as a guide for students using the book, Project Management for Engineering and Construction, 3rd Edition. For chapters that have numerical problems, discrete solutions can be calculated. The book has numerous examples that illustrate the calculations for solving numerical problems.

The questions at the end of the chapters are intentionally worded for open-ended answers, based on assumed conditions for a project. This is done to encourage creative thinking by students, to freely and openly expand their knowledge of project management beyond reproducing the contents of the book. Like many situations in life, there is often more than one good answer to a question. Responses to questions should be provided in short phrases, rather than in a narrative paragraph form, for ease in interpretation to give concepts and ideas on your knowledge of project management.

Garold D. Oberlender, Ph.D, P.E.

Contents

Chapter #1 - Introduction …………………………. 4

Chapter #2 - Working with Project Teams .……….. 8

Chapter #3 - Project Initiation ..…………………… 10

Chapter #4 - Early Estimates ……………………… 15

Chapter #5 - Project Budgeting …………….…….. 17

Chapter #6 - Development of Work Plan ..……….. 20

Chapter #7 - Design Proposals …………….……… 25

Chapter #8 - Project Scheduling ………………….. 26

Chapter #9 - Tracking Work ………………….….. 39

Chapter #10 – Design Coordination ………………. 44

Chapter #11 – Construction Phase ………..………. 46

Chapter #12 – Project Close Out ………………….. 50

Chapter #13 – Personal Management Skills ….…….. 52

Chapter #14 – Risk Management ………...... 66

Chapter #1 - Introduction

Question #1. As presented in this chapter, quality is an integral part of project management. Because there are different levels of quality, it is important for the owner, designer, and contractor to have a mutual understanding of the quality that is expected in a project. Describe methods that can be used to ensure that quality is adequately defined, understood, and properly included in a project.

Methods to Ensure the Owner's Requirements of Quality:

o -

Methods to Ensure the Designer's Requirements of Quality:

o -

Methods to Ensure the Contractor's Requirement of Quality:

o -

Question #2. Give examples of problems that may arise when an owner falls to fulfill his

or her responsibility of clearly defining the operational criteria of a project.

o -

Chapter #1 – Introduction

Question #3. Give examples of problems that may arise when a designer fails to give

adequate attention to the impact of a design selection on the cost or schedule

during the construction phase.

o -

Question #4. Give examples of problems that may arise when a contractor fails to perform

his or her work in accordance with the contract documents.

o -

Question #5. In actuality, there are at least three project managers that are involved in a project, one each working for the owner, designer, and contractor. Since each of these individuals work for a different organization, describe methods that you would suggest to ensure good working relationships between these three individuals.

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Chapter #1 – Introduction

Question #6. Interview three project managers, one working for an owner, designer, and

contractor, respectively, to identify factors that each manager believes is

important for the successful completion of a project.

Owner's Project Manager:

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Designer's Project Manager:

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Contractor's Project Manager:

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Question #7. A definition of project management is given in this chapter. Review this

definition and expand it to include additional items that you feel are

important to the function of project management.

o -

Chapter #1 - Introduction

Question #8. Consult publications from one or more of the references at the end

of this chapter to compare and contrast the differences between

"project management" and "functional management".

Project Management compared to Functional Management

o - o -

Question #9. The five basic functions of management discussed in this chapter are derived from the basic principles of business management. Review two sources of publications that describe the role and functions of management, one from a journal of business management and one from a journal of engineering management. Compare the business perspective of management to the engineering perspective of management.

Business Management compared to Engineering Management

o - o -

Question #10. Throughout the project management process, there are four questions that

must be addressed. Who? Does What? When? How Much and What can go wrong? Expand this list to include other questions that may be appropriate for some situations in the management of a project.

o -

Chapter #2 – Working with Project Teams

Questions #1. It is the project manager’s responsibility to ensure that each team

member is assigned primary responsibility for discrete work. Recognizing there are numerous work items in a project, describe methods for ensuring there will be no overlap or gaps in work of the project team.

o -

Questions #2. You are the project manager of a team which has been newly formed.

Suppose you feel one of the team members is lacking in the required skills to perform the work. Discuss methods you would use to assist the team member to ensure that their work will meet your expectations.

o -

Question #3. The composition of a design team represents individuals with diverse

backgrounds, including civil, mechanical, electrical, structural, etc. What are methods that you would use to ensure mutual respect among team members and to reinforce the understanding that everyone on the team is an important player in the success of the project?

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Chapter #2 - Working with Project Teams

Question #4. Maslow’s theory of hierarchy of needs lists five levels of needs that are

motivators of people. As a project manager, list methods you would use to identify the needs of team members so you can be responsive to those needs in motivating you team.

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Question #5. Conflict between team members often is a result of changes. List changes

during a project that could potentially lead to conflicts. For each change, how would you attempt to resolve the conflict.

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Question #6. When a team is formed that consists of people who have never worked

together, team building may be necessary. Describe methods of team building for a design team that has different engineering disciplines combined with people from purchasing, quality and cost control.

o -

Question #7. There are numerous factors in team leadership. List and briefly discuss

factors that are important in successful team leadership.

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Chapter #3 - Project Initiation

Question #1. There are many contractual arrangements for handling a project. This chapter describes the arrangements in four basic forms: design/bid/build, design/build, construction management, and owner/agent. Describe the advantages and disadvantages of each of these arrangements, considering factors such as cost, time, and level of involvement desired by the owner of the project.

Design/Bid/Build

Advantages:

o -

Disadvantages:

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Design/Build

Advantages:

o -

Disadvantages:

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Chapter #3 - Project Initiation

Question #1 continued -

Construction Management

Advantages:

o -

Disadvantages:

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Owner/Agent

Advantages:

o -

Disadvantages:

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Chapter #3 - Project Initiation

Question #2. Review one of the references at the end of this chapter, or from another

reference, and briefly describe the many forms of construction management that is currently being used in the engineering and construction industry.

Agency Construction Management:

Guaranteed-Maximum-Price Construction Management:

Extended Service Construction Management:

Owner Construction:

Question #3. The various phases for development of a project are shown in Figure 3-2. Review each phase and identify the party that most likely would be involved in performing the work of the phase, and the party whose work will be most influenced by the results of the phase. Identify parties as one of the following: owner, consultant to the owner, designer, construction manager, or construction contractor.

Phase of Project Development Involvement Affected Party

Owner's Need for Project ______

Request for Engineering Study ______

Conceptual Configurations/Alternatives ______

Review by Owner, Economic Analysis ______

Final Design of Project, Plans/Specs ______

Procurement of Bulk Material/Equipment ______

Construction Contractors ______

Project Close Out ______

Chapter #3 - Project Initiation

Question #4. A part of the owner's study is defining the requirements of the project.

Identify and describe methods that can be used to assist an owner with this important study assuming that the owner does not have the expertise to perform the study.

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Question #5. Review the list of references at the end of this chapter an summarize the

process of setting project objectives to assure the successful completion of a project.

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Question #6. Describe the difference between project objectives and project scope

definition. Define the interactive role of the owner and designer in this process to ensure a well-defined understanding between the two parties.

Project Objectives:

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Project Scope:

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Interactive Roles:

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Chapter #3 - Project Initiation

Question #7. Review published articles that describe the concept and process of

partnering, and list major differences between partnering and traditional

methods of contracting strategies.

Traditional contracting strategies:

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Partnering strategies:

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Chapter #4 – Early Estimates

Question #1. Early estimates are extremely important to the owner. From the perspective

of the owner, give examples of problems that may arise if an early estimate is significantly lower than the final actual cost of a project.

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Question #2. Give examples of problems that may arise if an early estimate is significantly

higher than the final actual cost of a project.

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Question #3. Early estimates are important to the designer. From the perspective of the

designer, give example of problems that may arise if an early estimate is significantly lower than the final cost of a project.

o -

Question #4. Describe the purpose of a kick-off meeting for preparing an early estimate of

a project. What are typical items that should be addressed and confirmed before starting estimate preparation?

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Chapter #4 - Early Estimates

Question #5. The cost of a 540 cubic feet per hour process unit is $850,000. From

historical cost records, the capacity ratio exponent of a process unit is 0.6. Use the capacity ratios raised to an exponent method to determine the estimated cost of a similar process unit with a capacity of 490 cubic feet per hour.

Question #6. Below are cost capacity curves for process units in a refinery. What is the

estimated cost for a project that has a Process Unit B with a capacity of 5,000 barrels per day?

Chapter #5 - Project Budgeting

Question #1. Usually each of the three principal parties (the owner, designer, and

contractor) prepares a cost estimate at different times during the life of a project. Describe the purpose of each estimate and the impact that estimating errors may have on the other two parties.

Owner's Estimate:

o -

Designer's Estimate:

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Contractor's Estimate:

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Question #2. Why is it important to define the range of accuracy, in percentage, that

should be applied to any estimate? Who should set this range and who should be informed of the selected range?

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Chapter #5 - Project Budgeting

Question #3. Prepare a lost estimate for the construction of a small, high quality, office

building that contains 18,525 square feet of floor area. Use the data in Figure 5-1 to prepare the estimate. Assume the cost of design for the project is 7% of construction, and a site-work cost of $180,000. What range or percentage of this cost would you recommend to define the level of accuracy?

Question #4. Use the time and location indices in Example 5-2 to estimate the cost of a building that contains 84,500 square feet or floor area. The building is to be constructed two years from now in City A. The cost of a similar type building that contains 105,000 square feet was completed last year in City C for a cost of $12,600,000.

Question #5. During the feasibility study of a project, the initial estimated cost for design and construction is $2.5 million. It is anticipated that the cost to maintain and operate the facility after completion of construction will be $430,000 per year. Assuming the owner must obtain a return on the initial investment of 15%, what net annual income must be received to economically justify the project. Assume no salvage value after using the facility for 12 years.