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- Herausgeber: Roberto Pisani
- Kategorie: Fachliteratur
- Sprache: Englisch
Managing a project as Customer or as Contractor is not the same thing and even though both have the same goal (to successfully implement the project) each of them will have to manage it taking account of his own role. The purpose of this book is to deal with the project management activities related to the resources, the works, the risks, the time and the costs by specifying how they should be addressed by Customer and Contractor to ensure that both Parties know what to do and understand what each of them expects from the other. The book provides concepts, criteria and data coming from the management experience of complex international projects, offering useful information to execute a project, starting from the initial stage of preparation and planning until its satisfactory conclusion. It describes how to communicate progress and results and it explains how to face and overcome the most critical issues. The book target is to help the "insiders" to complete the project with success and profit and the “beginners” to “start the art” that is to know the beauty of Project Management and to learn how to do it.
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Veröffentlichungsjahr: 2015
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Roberto Pisani
Copyright © 2015 by Roberto Pisani
All rights reserved
This book is copyrighted property of the author, and may not be reproduced, copied or utilized, totally or in part, in any form or by any means without permission in writing of the author.
First Printing: 2015Table of contents
1 FOREWORD
2 SOME TERMS TO REMEMBER
3 GENERALITIES
3.1 Theme and characters
3.1.1 Project
3.1.2 Project and Project Management
3.1.3 Customer and Contractor
3.1.4 Stakeholders
3.2 Stage and action
3.2.1 Action field
3.2.2 Contract and Project life cycle
3.2.3 Project Management topics
4 PROJECT MANAGEMENT
4.1 Management of the Resources
4.1.1 Human Resources
4.1.2 Material Resources
4.2 Management of the Works
4.2.1 Scope of Supply
4.2.2 Works crucial requirements
4.2.3 Quality of the Works
4.2.4 Progress of the Works
4.2.5 Changes and Variations
4.3 Management of the Risks
4.3.1 Customer and Contractor risks
4.3.2 Before Contract
4.3.3 Risk Register
4.3.4 Project execution phase
4.4 Management of the Time
4.4.1 Planning
4.4.2 Overall Master Schedule
4.4.3 Critical path
4.4.4 Project execution phase
4.4.5 Project Completion date
4.5 Management of the Costs
4.5.1 Contract price
4.5.2 Terms of payment
4.5.3 Project initial budget
4.5.4 Project cost control
4.5.5 Contract price management
4.6 Reports
4.6.1 Communication
4.6.2 Progress Report
4.6.3 Final Report
5 CRITICAL POINTS
5.1 Selection
5.1.1 Delays
5.1.2 Changes
5.1.3 Operational interface
5.2 Reducing or adding criticalities
1 FOREWORD
Does a Customer manage a project like a Contractor?
If their roles are different, will their management activities be the same?
The answer is obvious. Managing a project as Customer or as Contractor is not the same thing and even though both have the same goal (the project success) each of them will have to manage it taking account of his own functions.
For example, if the Customer will exercise his management activities with care that the project is carried out on schedule with the expected quality, on the other hand, the Contractor will cover the same issues with a greater focus on costs and remuneration.
Therefore this book was created with the purpose of dealing with the project management activities related to the resources, the works, the risks, the time and the costs by specifying how they should be addressed by a Customer and by a Contractor to ensure that the Parties know what to do and understand what each of them expects from the other.
The book, which provides concepts, criteria and data coming from the management experience of complex international projects, will provide useful information to execute a project, starting from the initial stage of preparation and planning until its satisfactory conclusion, treating the techniques and the aspects necessary for its management. It will describe how to communicate progress and results and it will inform how to face and overcome the most critical issues.
The goal is to help the insiders to complete the project with success and profit and the beginners to "start the art" that is to know the beauty of Project Management and to learn how to do it.
I repeat, this book was thought not for generic insiders or beginners, but for people who is Customer or Contractor, to support them in understanding their responsibilities, their duties and how they should make the Project management together.
The book comes with elements taken from existing projects and contracts in order to provide the readers with examples of how certain issues are handled in the reality.
The last observation is about people.
I wish you to have to do with honest women and men, because there are no skills and experiences that take if they are not placed at the service of a work done with rectitude. If bad faith, greed and arrogance are prevailing, your good idea, your good project will not be successful and all your efforts will be in vain.
You will be prepared: Good luck!
2 SOME TERMS TO REMEMBER
This chapter defines the meaning of some words you will find in the book.
Note: within each term, the capitalized words have their own definition.
Agreement
The written document concerning the Works, which establishes the Contract between the Customer and the Contractor.
Change
Modification, alteration, deletion, addition to the Works requested by the Customer to the Contractor or proposed by the Contractor to the Customer.
Completiondate
The date set in the Agreement to achieve the Substantial completion of the Works.
Contract
The Agreement between Customer and Contractor for the execution of the Works.
Contract documents
They establish the Works to be performed and the rights and obligations of the Parties.
Contract price
The amount of money that the Customer has to pay to the Contractor for the execution of the Works in compliance with the Contract documents.
Contract times, Time for completion
The period of time expected to complete the Works as specified in the Contract documents.
Contractor
Who will carry out the Works when entered into the Agreement with the Customer.
Critical path
The sequence of activities in the program (Schedule) of Works which are mutually dependent (each of them depends on the execution of others) and essential to reach the end of the Works in time.
Customer (Owner, Employer, Purchaser, Buyer)
Who has entered into the Agreement with the Contractor and for which the Works have to be executed.
Defects
Any irregularity, lack or failure of the Works.
Minor ones which do not prevent the use of the Works and shall not affect the issue of the Provisional Acceptance Certificate) must be eliminated by the Contractor in the Warranty period.
Extension of time, Time extension
Prolongation of the Contract times.
Final Acceptance (or Defects Liability) Certificate
Document that certifies the end of the Warranty period, confirming that the Contractor has fulfilled all his contractual obligations and, specifically, those related to the Defects of the Works.
Milestones
Dates specified in the Agreement which are associated with defined Works events. Typically these events, if not respected, are associated with onerous contract terms at charge of the Contractor.
Order
The binding agreement between the parties. It commits one party to provide the specified product at a certain date and the other party to pay the price.
Owner’s Engineer
Organization entrusted by the Customer to support his staff during the Project execution. Usually he is involved in interfacing and controlling the Contractor Works.
Parties
The Customer and the Contractor.
Penalty, Liquidated damages
The reduction in the Contract price that is up to the Customer when the Contractor does not complete the Works within the Completion date.
Project
See chapter 3.2.
Project Initial Budget
The assessment of the Project costs performed by the Project Team following the Project Contract award.
Project kick-off
First meeting between Customer and Contractor after the Contract award or first meeting inside each organization of Customer and Contractor to communicate the Contract award and to start the Project activities.
Project Life Cycle
Development stages of a Project from its born up to its final completion.
Project Manager
The professional appointed by the Customer or by the Contractor after the Contract award to lead the Project execution.
Project Management
See chapter 3.2.
Project Overall Master Schedule
The whole schedule of the Project, issued by the Contractor after the Contract award, detailing all the Project activities up to its completion.
Project Team
Group of professionals that will support the Project Manager in the management of the Project.
Project Whole-life Costs
The total costs to be sustained to implement the Project from its beginning up to its completion.
Provisional Acceptance Certificate or Taking Over
Document that certifies the Substantial completion of the Works according to the requirements of the Contract, starting the Warranty period.
Risk
An event, a condition that can adversely affect the smooth running of a Project activity.
Risk Register
A database containing all Project identified Risks with their individual characteristics and the necessary information for their management during the Project execution.
Schedule, Program
Document in which the Contractor indicates, over time, the activities for the execution and completion of the Works, the contractual Milestones to be achieved and, if any of interest, the activities pertaining to the Customer.
Scope of supply
The share of the works to be performed by the Parties to complete the Project as defined in the Contract.
Site
The place, made available by the Customer, where the erection, commissioning and test activities will be carried out and the Project completed.
Stakeholder
Who has an interest in the Project, participating to its implementation and contributing to its completion and success.
Sub-contractor, Sub-supplier or Supplier
Who has a direct Order with the Contractor for the execution of a part of the Works.
Substantial completion of the Works
When the Works are sufficiently completed and can be used for the purpose for which they were made.
Terms of payment
The payment conditions specified in the Contract to remunerate the Project Works.
Variation, Change order, Supplemental agreement
Document agreed by the Parties authorizing an addition, a deletion, a review of the Works and/or a change of the Contract price and/or of the Contract times.
Vendor List
List of the main supplies of the Project with the indication of the possible Suppliers.
Warranty period, Defects liability period
The period, following the issue of the Provisional Acceptance certificate, during which the Contractor has to eliminate any Defects of the Works of his responsibility.
Works
What the Contractor has to do to realize the Project according to the Contract documents.3 GENERALITIES
We know that managing "something" means to do a certain number of activities to handle the "something" in the best way possible in order to obtain the expected result.
In this section we are going to know our "something" and who will do the activities to get it done, how they have to perform these activities and the area of their involvement.
3.1 Theme and characters
Let us suppose we want to manage a trip somewhere.
Which is the first thing we must know?
There are different possible answers: someone can say the destination, someone else the purpose of the trip, its duration, the budget and so on. Yes correct, but … are those really the first thing we must know?
Let us change the item and suppose we have to manage the sizing process of a textile factory. Which is the first thing we must know in this case?
If you are not an expert and you have not checked somewhere the meaning of sizing, you see the point.
First of all, to manage something we must know what the something is.
(Sizing: process which consists in treating the warp with solutions of substances adhesives which increase the strength of the yarn).
About the trip, we gave good answers above, because everybody knew the fundamental point: everybody knew what a trip is. That because it's a very simple matter, probably known since long time, perhaps since the infancy, at the time of the first trip with parents. There, the meaning of trip was learned.
So, to manage a trip or a sizing process, first of all, we must know what a trip or a sizing process is.
Moreover we could manage the trip playing an active role alone, but we could choose a different way giving an agency the charge to organize and manage it.
In the following chapters we will see what a project is and who are involved in its management.
3.1.1 Project
You can try to answer to the question: What a project is?
Start thinking without any worry, because I tell you frankly, there is not a fixed definition.
I found a nice web site, where an expert (Dr. Anthony Yeung) provided all the definitions he found worldwide and I collected five of them, which I will show you shortly, that I consider the ones which can offer a good overview of the subject. So, before continuing, squeeze your brain for some seconds more to conclude your definition and then we will see what the international experts say about it.
The first definition comes from the Project Management Institute (PMI) who wrote A Guide To The Project Management Body Of Knowledge (PMBOK Guide) that I suggest reading and which is a very important source of information, advices, knowledge for people interested in Project Management.
“A Project is a temporary endeavor undertaken to create a unique product, service, or result.”
Although all the words in the sentence are important, I chose the ones which, in my opinion, point out the main characteristics of Project: temporary and unique.
Temporary means that a Project has to be well defined as timing. A Project without a starting and finishing date is not a Project, is something else. It's a dream, a philosophy, a simple idea. It can become a Project, but it is not yet a Project.
Temporary does not mean short in time. A lot of Projects last for years. The end of a Project is reached when the Project objective is achieved or when it becomes clear that the expected goal cannot be obtained or when the Project is stopped because the needs of that Project do not exist any longer.
Unique means that the Project is the development of something never done before. A product, a service, a result can be unique also if it belongs to a large category of same products, service or results. For example, thousands of power plants of the same kind have been constructed, but each single plant is unique because of different reasons; for example the participants or the design or the site and so on.
The second definition comes from the International Project Management Association (IPMA).
“A Project is a time and cost constrained operation to realize a set of defined deliverables (the scope to fulfil the Projects objectives) up to quality standards and requirements."
In this and in the following definitions you can see underlined words; it means they are related to a Project aspect already explained in the previous definitions. In this case the word is time, which is related to the above concept of temporary.
In this definition the new aspects (in bold) which I would like to point out are cost constrained operation and defined deliverables.
Time and costs are constraints because the Project has to be performed inside a well defined frame of time and also within certain limits of cost. Time itself, you know, is money. So time and costs are again two important items which characterize a Project.
With the term deliverables we intend the result we want to obtain. Defined deliverables means that the deliverables are defined by requirements specifically foreseen for the Project. Therefore the product, service or result is not a generic target, but it is defined, because it satisfies the requirements of that particular Project bringing it to its unique condition.
The third definition is provided by ISO 10006:2003 - Quality Management Systems.
“Project is a unique process consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements including constraints of time, cost and resources.“
Two aspects have to be pointed out to provide some additional useful information to understand the meaning of Project.
First: Coordinated and controlled activities. That is one of the main topics of management.
We have seen that we have objectives to achieve, constrains to fulfil, according to specific requirements and now we see that, to perform them, we have to do activities in a coordinated and controlled manner. So Project means not simply to perform the works, but to perform them in a coordinated manner and, during its development we have to control it.
Here we have two other very important points, coordination and control, which will be further analyzed ahead.
This definition introduces another constrain: the resources.
I have heard many times, and probably you too, the following sentence as answer when you hurry up somebody to finish something: “I’m sorry, I have not unlimited resources!”
Sometime this is an excuse, but sometime it's true.
Resources are a constrain. Resources are vital for the success of the Project, so it is correct to consider it as one characteristic to define a Project.
Someone could say that speaking of constrain of costs, implicitly you talk of resources too.
This is also true, because costs certainly have to include those related to resources, but the term "resources" means not only costs. It is related to the organization, as we will see in the next definition, and to relationship, which cannot be under-evaluated talking about Project.
So it is correct to consider it explicitly.
Let me add some considerations to the term unique, which in the first definition was linked to the product, service or result (the deliverables) and here is linked to the process of the activities to get them. I think that both linkages are correct because to achieve a unique result you have to perform a unique process of activities.
The fourth definition comes from the British Standards Institute with its BS 6079-1 Guide to Project Management.
“Pr [...]
