Construction Project Management - Literature review Example

PRINCE2 IN CONSTRUCTION PROJECT MANAGEMENT By Student’s name Course code and name Professor’s name University name City, State Date of submission Table of Contents Table of Contents 2 Literature Review 3 Introduction 3 Overview of PRINCE2 4 Incorporation of PRINCE2 in Construction Projects Management 10 Project start-up 12 Project Planning 14 Management of Stage Boundaries 16 Project Control 17 Product delivery management 19 Project closure 20 Conclusion 21 List of References 22 Literature Review Introduction Management of construction projects is a very vital aspect in resource exploitation for physical asset creation. The fundamentals of management and execution are marred by radical technological evolution on all phases of construction. In a bid to manage construction projects effectively, various tools and methodologies have been employed for the sake of achieving the clients’ sets of objectives, resource maximization, proper coordination/ control and lastly maintenance of effective communication mechanisms for the purpose of conflict resolution. The trends in research show that modern construction project phases complement each other in one way or the other. This has in turn prompted the development of project specific methodologies to aid in all aspects of construction management. In so doing it has become clear that, for construction projects management to be successful, the methodology choice is very important. The significance of a methodology is stressed by well-seasoned project managers such as Charvat (2003) who notes that every discrete deliverable is affected in one way or the other by the nature in which the project phases are intertwined. Incorrect methodologies result in miscommunication, poor delivery, negative cost and schedule escalation, poor resource usage and other minorities attached to these. According to Chitkara (2009), methodology is defined as a combination of tools, processes and methods that are meant for goal accomplishment within a project environment. The project management methodologies therefore provide means of managing projects with a sole purpose of deliverable realization. As noted in the above argument, projects managed without use of methodologies tend to be clumsy and unrealistic. Various methodologies are chosen in order to aid in the initiation, planning, execution, monitoring, testing and closure of projects. Among the most common methodologies employed in the field of construction include; critical path method, critical chain planning, precedence diagramming, Graphical Evaluation and Review Technique and PRINCE2 among others. These methodologies are gauged in terms of the magnitude and effectiveness of their incorporation within the construction field. For the purpose of this argument, this literature review shall be centred on the incorporation of PRINCE2 methodology of project management in the field of construction. The figure provides an overview of various stages of construction projects management that shall be discussed along with the incorporation of PRINCE2 methodology in the realization of the intended goals. Figure 1: The various phases of project management (Anon., 2013). Overview of PRINCE2 PRINCE2 methodology acronyms denote projects in controlled environments – as one of the best approaches in project management. This methodology was developed in 1996 by the Office of Government Commerce (OGC) in order to influence the outcomes of project management in a positive manner. PRINCE2 is structured for the private sector with an emphasis on business justification, definition of the project team, division of the project into manageable phases, planning based on the final product and flexibility with regard to appropriate levels of project management. PRINCE2 is hailed for its approach towards project management for several reasons that have been established by Allen, et al., (1999). These reasons are highly attributed to the project goals and the ability by the managers to realize profitability in them. The first reason is that this methodology offers a project an organised and controlled start as a foundational stage. The flexibility it gives the project managers towards decision making is highly attributed to since the periodical reviews are supposed to check on the progress as dictated by the business case scenario. The management plan also offers automatic control towards the deviations that arise from these reviews as part of risk control. The stakeholders are communicated to with a high degree of individual involvement in matters that arise from time to time. These communication channels are determined by the initially laid plan for offsite and onsite deliverables (Allen, et al., 1999). It has been established that project managers in the construction industry prefer a prerequisite start to a project. PRINCE2 methodology offers a professional approach towards the issue of project demarcation in order to offer project managers with easily manageable bits. Further, project resource planning ensures that a project runs smoothly without any hitches arising as a result of poor projections by committing the top management to the approval process. The methodology also directs that the project management team issues detailed periodical reports to cater for future reference and continuous improvement within an organisation. The project review meetings are minimised to vital points affecting the management of the construction project and calls for action from the stakeholders from time to time (Allen, et al., 1999). The decision making process is highly hierarchical meaning that the project team is entitled to participate whenever need for one arises. The importance of this objective is that it offers an easy approach towards decision making on matters that are likely to benefits the project whether through the top management or the lowest ranked person who may be the brick layer for instance. This calls for full involvement of all those involved in a construction project so as to provide a positive attitude towards the deliverables. Further, when a team is committed to procedures, it makes it easier to achieve quality from the first stage of a project. A detailed plan on how to attain excellence is featured right in the initial stage with every party involved in the construction project being allocated his or her mandates. This requirement is adversely mentioned in construction firms that do not achieve quality as an end product that is intended is not followed up with during the developmental stages attached to it. PRINCE2 methodology ensures that the requirements set during the planning stage including those discussed with the client are achieved without failure (Wideman, 2002). This project management methodology has been proven to work efficiently in construction projects as it contains the following desirable attributes; it offers a project with a defined lifecycle which has to be achieved by the project team as a matter of priority, the business products are measured in terms of monetary gains to the organisation involved, planning the activities with a propensity of final product achievement, offers a resource definition for the entire project and lastly the responsibilities are well laid prior to the commencement. This methodology aims at achieving its objectives through approved people management practices that look at motivating leadership instead of applying coercion as a means of achievement. The human resource is therefore treated with paramount importance as the main determinant of project success. Together with this methodology, the tools used in aiding the delivery of construction projects include Gantt charts developed through software such as Microsoft Project and critical path analysis for longest period determination. PRINCE2 provides construction projects managers with an oversight of the risks and ways of managing them (Graham, 2010). Figure 2: PRINCE2 Process Model (ILX Group Plc, 2009). PRINCE2 is dedicated to various levels of management through the divisions shown in figure 2 above. These stages befit construction projects by description in order to deal with the unpredictable turn of events. Risk management is given the highest consideration as this might topple the progress of a construction project. The distinct stages of PRINCE2 project management include; project start-up, project planning/ initiation, boundary management during execution, control stage, product delivery management and project closure. These phases are all based on a dedicated customer/ supplier environment which are determined by the drive to achieve a desirable outcome (Hedeman, et al., 2010). According to Hinde (2012), the customer may be an individual, a corporate or even a government that is seeking for construction services. On the other side, the supplier is a contracting firm that is seeking to tender for services or management consultancy of the construction. These shall be discussed in the next level of this literature review with the main purpose of indicating how this methodology can be incorporated in construction projects management for effective end product delivery. Incorporation of PRINCE2 in Construction Projects Management The choice of the management methodology is dependent on the nature of the industry. According to Hällgren & Wilson (2008), construction projects are characterised by unique contributory properties that are end product oriented. The efficiency and uniqueness of the project management approach is based on the deliverables because most of these projects are one-of-a-kind as much as the principles should be maintained from one step to another. Application of revolutionary methodologies that are inclined towards the incorporation of modern information technology is very important towards the successful achievement of construction organizations’ goals. Chang and Lee (2004) point out that the dynamic nature of the construction industry calls for versatile management methodology. The compatibility these methodologies pose to the project in terms of other technologies applied as a whole is very important to consider. PRINCE2 is a flexible methodology with respect to implementation within the building industry. PRINCE2 project management criterion is based on well-defined stages to aid in the achievement of project goals. Establishment of effective structures in the construction industry is highly called for as a means of maximizing profits and minimising client/ supplier conflicts. PRINCE2 emphasizes on setting up organisational mechanisms within the construction industry. Although the ideal scenario cannot be achieved within the organisation providing direction on how management and communication should be carried out is sufficient. The flexibility that is attached to PRINCE2 is attractive to teams that are seeking for superb means of maintaining a good relationship with the clients in order to achieve a competitive edge (Allen, et al., 1999). This section shall investigate how these strategies are incorporated in the construction project management with a focus on successful and proven approaches. In order to understand how best this methodology is suited for the construction industry, this topic is further subdivided into the following project phases: Project start-up. Project planning and initiation. Management of stage boundaries. Project Control. Product delivery management. Project closure. The above project phases are mandatory in every project regardless of the sector in which it is applied. Therefore, construction projects are not exceptional when it comes to the procedures of approach to be applied in realization of the deliverables. These phases are visualized in the detailed figure 2 above and a simple one shown in figure 3 below. Figure 3: The simplified PRINCE2 Process Model suitable for construction projects management. Project start-up Project start-up is a very important aspect in the construction management field. PRINCE2 provides for means of checking out the viability of projects before the real projects phases kick off as a means of ensuring that there shall be no losses of hitches incurred during the execution. During this phase, the project’s top management is supposed to find the right people as per the qualifications required to have a successful end. Project start-up gives a chance to those involved in a construction project to unwind on the previous cases in an exhaustive manner. A rough outline that is founded at this stage is important in the justification of a construction project to help in making of final decisions. This outline gives suggestions on how the project board shall carry out decision making for the purpose of harmony and peace within the environment. The project idea is drafted and finalized in terms of drawings or any other forms of visualization to the approval of the client who in this case is final person unless there is a consultancy involved. Brainstorming of all the important specifications attached to construction projects is carried out for documentation and filed appropriately for future reference. The products to be used in the projects are also pointed out in detail at this stage to give a proper detailing of the construction requirements (Graham, 2010). PRINCE2 starts rolling even before the real projects kicks off through processes highlighted above. This factor is very important considering that a project should be run using proactive delivery methodologies. According to The Stationery Office (2010), a project by definition is a temporary organization aimed out delivering a business product to an agreed client. Programmes are based on the temporary nature of projects for optimization of procedures to ensure that the construction projects are not complicated, extremely governed to an extent that overstretches the resources and lastly to clear the boundaries. The benefits of this procedure are mainly attached to themes of PRINCE2 which call for high involvement of the stakeholders and advanced technology. Other strategies that should be laid during this stage of construction management include the benefits, information management, issue resolution documentation, control and monitoring, resource management and stakeholder involvement (Turley, 2010). The definition of organisation at this stage stands out as an important factor since most methodologies are not keen to point it out. As stated above, PRINCE2 offers the project management team with an easy time in defining the organization structure. The responsibilities are clearly defined with all the accountabilities being shown for the sake of harmonious coexistence within the controlled environment. Duplication of responsibilities of the construction team is avoided through an integrated approach. Reports and related reviews are designed during this stage take an efficient official format of milestone and boundary alignment (Murray, 2010). Figure 4: An organisation chart well suited for a construction firm (Murray, 2010). Project Planning The planning stage is highly desirable because success or failure of a construction project is entirely dependent on it. The plan is designed to have an organised formula for deliverables identification, validation of quality, determination of successors and predecessors, starting date and any other data required for this purposes. According to Shaker (2009), the start-up stage defines the construction schedule which is the main organization tool for a construction project manager. Every task is outlined during this stage through use of critical analysis and Gantt chart tools with the sensitive activities highlighted accordingly. PRINCE2 provides an ideal environment for successful project start-up as far as planning is concerned. The levels of planning within a construction project are clearly identified with such factors as uncertainty in the environment being given considerable coverage. In order to make it easy for plan demarcation, PRINCE2 methodology identifies the following plans that should be set up during the advanced start-up stage; programme plan, project plan, stage plan, team plan and exception plan. From the look of things, the flexibility offered by PRINCE2 is unique in accordance to other existing methodologies (Allen, et al., 1999). Figure 5: Levels of PRINCE2 planning (Allen, et al., 1999). The construction project plan is a mandatory document that is intended for kicking off the business case. The deliverables and resources required are well pointed to allow for boundaries staging when the right time comes. This document shall aid in the identification of achieved progress, changes in project deliverables and lastly the forecasting of total duration. The initial versions of this document are kept in place in order to keep track of any unpredicted deviations (Bentley, 2010). A stage plan is required at the end of each stage with an overview of the constraints incurred during the previous one. This mainly has to do with the integration of concepts that arise from milestone interdependencies within the construction tasks. These plans are issued to the project board or the top management for review and final decision making with this regard. This approach is aimed at manifesting confidence with of the project status as per the target set by the project management team. It is also important to note that the first stages of a construction plan are huge determinants of what is likely to follow in terms of constraints and risks (Allen, et al., 1999). The exception plan is set in case of an emergency during the construction process. The tolerances to which this may vary are identified by the project manager for approval by the project board. On the other side, the team plan is required to break down the sequence in which the construction project team shall carry out its mandates. This is because construction projects involve skilled and specialised labour to realize its end goals (Bentley, 2010). The advantages attached to construction project planning includes the projections that are likely to arise before the full force commencement of a project, identification of required resources in a timely manner for scouting, identification of risks involved with a project and lastly the ability to ensure that quality is achieved in the long run. This translates to; avoidance of impromptu decision making, yardstick provision as per the previous construction projects, well maintained communication and commitment from the construction project stakeholders (Bentley, 2010) Management of Stage Boundaries Managing stage boundaries is a very important aspect of construction projects. Adhering to stage boundaries management usually gives assurance to the project team with regard to intended deliverables, continuous assessment of project viability, record maintenance and provision of approval information to the board. Management of this kind is followed up with such documents as actual versus intended planning, faltering project plan, updated project logs, lessons and problems/ constraints encountered and the end stage report (Queensland University of Technology, n.d.). Construction projects are dependent boundaries management for success to be achieved as per the projected plans. The integration of PRINCE2 methodology shall be highly attributed to the realization of these goals. This is mainly made possible through systematic integration of stage plans into the management of construction projects. Supplying the project board with the information required aids in the review of construction projects in stages. The exception reports identified are meant to aid the project team in preplanning of the next move in stages that are rejected by the project board. The other side of the argument indicates that the project board in case of a construction is only validated to continue with the project while the viability lasts. The business case is therefore expected to be updated during this stage as a matter of prove that the project is meeting the set objectives without straining (Bentley, 2005). According to the Office of Government Commerce (2009), the examination and review of business case viability at the end of each stage ensures that the following are well documented; arising issues, risks, project plan, benefits, project initiation and others that pertain to periodical quality checks depending on the nature of the contract. Project Control In order to control construction projects effectively, PRINCE2 offers an understanding of the day to day activities that are likely to affect the deliverables. The control stage is one of the busiest taking into consideration the proactive nature of activities surrounding it. The criterion defined in the planning documents is checked against, to ensure that all the requirements are met. This stage also defines the viability of the construction business case according to the past projects undertaken by an organisation. Through control, the project team is able to; establish the progress at any given time, detect constraints of any activity, compare actual versus projected plans, initiate action on the necessary corrections and authorise additional work without contravening the company laws (Allen, et al., 1999). In construction project management, the notable controls include end stage assessment, progress, deviation management, monitoring, and project closure. The construction project board usually monitors the environment in order to assume a “controlled environment”. The projects usually flourish when the directorship of the project is proactive. Therefore any arising changes in a project must be curbed to avoid escalation of matters to uncontrollable magnitudes. PRINCE2 methodology offers the construction industry with means of controlling the project in a day to day basis. This proves that the tolerances and quality that are commonly seen in most projects that are uncontrolled is reduced. This is done through the continuous improvement process that is appointed by the project directors (Office of Government Commerce, 2002). Work package authorisation document is provided by PRINCE2 as a control tool to enable accountability towards the mandates assigned by the project manager. This tool is advantageous in that checkpoints can be set by the project manager as a means of collecting reports from individuals allocated with tasks. Other solutions set by this methodology include the ability to control suppliers and customer situations. This is based on the argument that the client’s requirements shall be met from a single supply point with the main aim of organisation. The planned targets are well synchronized with the methodology if the standards are in line to the quality objectives and early improvement or corrective measures on the end product. This statement at no point contradicts the intentions of a construction management. All plans are also checked from time to time to ensure that the plans set by the project directors is achieved as per the targets (Project Management Basics, 2013). Product delivery management Managing product delivery is one issue that is not very outstanding in the construction industry. The incorporation of PRINCE2 methodology in the industry comes in handy since it is through this process that product creation can be closely watched especially if there are subcontractors involved. PRINCE2 combines this process with issues to do with the procurement department of the company in order to ensure that the product delivered is managed as per the initial objectives which may differ from one construction project to the other. These calls for team managers to make sure that the products allocated to the project are authorised as the conventions direct (Fewings, 2005). Other parameters that pose importance to the applicability of PRINCE2 methodology in construction project management include; acceptance and inspection of work in progress, team approach and planning, conformance of the final products to the identified quality specifications, ensuring that allocated work is executed within the timeframe, approval of completed products and keeping of forecasts on a regular basis. According to Lock (2007), process work in construction projects broadly translates to plans and progress tracking for change control and quality management. Monitoring the constraints as part of the factors affecting the deliverability of a construction project is paramount considering that the requirements of work package have to be recognized no matter which kind of interface is involved. Project closure Like any other project, construction projects are required to be concluded in a systematic manner with both sides coming to an agreement with regard to the intended deliverables. PRINCE2 is keen not to leave this important procedure out thereby emerging as a superior methodology for use in construction project management. Project closure is normally carried out when the construction project cannot contribute to the company any more. The objectives of project closure are highlighted as; user acceptance of the products resulting from the project, performance review, offering product support in accordance to the location, assessment of benefits and follow-up on recommendations (Office of Government Commerce, 2009). Figure 6: Basic project closure diagram (Office of Government Commerce, 2009). Handling of construction project closure is made easier by PRINCE2 methodology as the guidelines are systematically laid down. Further recommendations are made as follows; the updated project plan is tailored to portray the actual versus the projected progress, overview of the project status of account, confirmation of deliverables and approval by the directors on the release of the product. This methodology may also be tailored to give indications on how to close the project prematurely without just abandoning it. This aids in salvaging of valuables and ascertainment of the construction resources consumed. Dire consultation between the stakeholders is required for future business case and billing (Hinde, 2012). Conclusion The literature review above successfully indicates that PRINCE2 methodology is well suited for construction projects management with regard to major phases. Each and every stage of project management with PRINCE 2 is well organised with the necessary documentation and focus to the final product. The most important point to note is that projects in controlled environment methodology can easily eliminate most of the constraints that are faced by the construction project management in the day to day activities if properly customised. Furthermore, the magnitude to which customization should be carried out in order to fit construction projects is very low as this method readily accommodates the project phases. The fact that this process is not field specific is a plus since there are other project management methodologies that do not allow any degree of versatility. List of References Allen, M. et al., 1999. Managing Successful Projects with PRINCE2. New York: Central Computers and Telecommunications Agency. Anon., 2013. The Project Lifecycle. [Online] Available at: http://www.cmu.edu/computing/ppmo/project-management/life-cycle/ [Accessed 20 August 2013]. Bentley, C., 2005. Practical PRINCE2. nORWICH: The Stationery Office. Bentley, C., 2010. PRINCE2 Revealed. Massachusetts: Routledge. Bentley, C., 2010. PRINCE2: A Practical Handbook. Oxford: Routledge. Chang, A. S. & Lee, K. P., 2004. Nature of Construction Technology, Tainan: Civil Engineering Department. Charvat, J., 2003. Project Management Methodologies. New Jersey: John Wiley & Sons. Chitkara, K. K., 2009. Construction Project Management. New Delhi: Tata McGraw-Hill Education. El-Sayegh, S. M., 2007. Significant Factors Affecting the Selection of the Approporiate Project Delivery Method. Tampico, Mexico, American University of Sharjah, pp. 1-8. Fewings, P., 2005. Construction Project Management: An Integrated Approach. New york: Routledge. Graham, N., 2010. PRINCE2 for Dummies. Chichester, West Sussex: John Wiley and Sons, Ltd.. Hällgren, M. & Wilson, T. L., 2008. The nature and management of crises in construction projects: Projects-as-practice observations. International Journal of Project Management, Volume 26( Issue 8), p. 830–838. Hedeman, B., Vis van Heemst, G. & Fredriksz, H., 2010. Project Management Based on PRINCE2 2009. Zaltbommel: Van Haren Publishing. Hinde, D., 2012. PRINCE2 Study Guide. West Sussex: John Wiley & Sons. ILX Group Plc, 2009. PRINCE2 2009 Process Model. [Online] Available at: www.PRINCE2Live.com [Accessed 20 August 2013]. Lock, D., 2007. Project Management. Burlington: Gower Publishing, Ltd.. Murray, A., 2010. Using PRINCE2™ and MSP® Together, London: The Stationery Office. Office of Government Commerce, 2002. Tailoring PRINCE2. London: The Stationery Office. Office of Government Commerce, 2009. Managing Successful Projects with PRINCE2™. Norwich: The Stationery Office. Project Management Basics, 2013. Construction projects – part 1. [Online] Available at: http://www.project-management- basics.com/project_management_116_Construction_projects_part_1.shtml [Accessed 24 August 2013]. Queensland University of Technology, n.d. Creating Value in Project Management Using PRINCE2, Queensland: Information and Publishing Solutions. Turley, F., 2010. An Introduction to PRINCE2. London: MgmtPlaza. Wideman, R. M., 2002. Comparing PRINCE2 with PMBoK®, Vancouver, BC: AEW Services. Read More