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

Project Management Services under Contract

Because major construction projects are exceptional, one-time or at least infrequent undertakings for most organizations, it is usually impractical to maintain an experienced project manager and the necessary support personnel on the owner's staff. The use of specialized outside services as a temporary extension of the owner's management structure for the duration of the project is much more practical. Outside services are more flexible, usually have access to varied resources, and cost little in comparison to the total project commitment throughout its life.

Such a project management service can assume complete responsibility for the management of a project and for meeting project objectives. A competent project manager, who would be directly responsible for the complete management of the project as defined by the client, would be assigned together with all required staff and services not otherwise available from the client. A typical project organization chart is shown in Figure 4.

Figure 4. Senior Appointments for an Engineer, Procure, Construct (EPC) Organization

Figure 4. Senior Appointments for an Engineer, Procure, Construct (EPC) Organization

This service should commence with the critical first steps of developing the requirements of the concept into a scope of work and be completed with the managing and start-up of the constructed facilities. It should be initiated by a project task force comprising senior representatives from the client and from the home office of the project management service. This task force would establish project organization and policies. It could continue to meet at intervals to confirm commitments and continuously review the status of the project at the executive level, until performance is completed.

Construction Management  Construction Management

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