Executive Control with Flexibility In Managing Capital Projects


Abstract | Introduction | Need for PM | Comparison | Objectives
Execution | Features | Flexibility | Stages | Work Breakdown
Scheduling | Construction Management | Services | Conclusion

Comparison with Traditional Management Philosophy

It is important to note that Project Management, in the context considered here is a total organizational concept. It includes the coordination and direction of financial, regulatory and environmental specialists, consultants and contractors, together with the owner's and user's staff as members of a project team. It starts with identifying and developing the basic project idea and continues through feasibility, construction and commissioning.

Thus Project Management may be defined as:

"The application of modern management techniques and systems to the execution of a project from start to finish in order to achieve pre-defined objectives within limits of time, budget and client satisfaction."

Project management should also be clearly distinguished from Construction Management. Construction Management refers to the direct management of the construction stage and is a valuable major technique which can be used within the project management structure outlined above. As discussed later, it may be used to advantage as an alternative to the general contractor, particularly on large projects where time savings and continued flexibility are required.

The project manager may have specialist skills but he needs to act as, and be looked upon as, the 'general practitioner'. He should bring to the job a background of experience in planning and management of similar projects, as well as general know-how in design and construction. Except for the individual specialists themselves, to whom he should be ready to refer, he should be as knowledgeable as anyone about the economic and regulatory environment, engineering technology, project planning, scheduling and cost accounting, as well as construction.

His job is to interpret the client's requirements to the specialists and direct their efforts to achieving the best combination of the project's key criteria. The key criteria are commonly recognized as scope, cost, time, and client satisfaction. This last item is sometimes overlooked, but is perhaps the most significant, since unless the project is seen to be satisfactory, it will not be recognized as such. On it, hangs the whole reputation of project management and the opportunity for follow-on business, The four criteria inevitably come into conflict; judicious trade-offs, with the client's approval, are constantly necessary.

Need for PM  Need for PM

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