MODULE 03 CONCEPTUAL DESIGN and PRELIMINARY ESTIMATE

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[Audio] MODULE 01 FUNDAMENTALS OF PROJECT MANAGEMENT COMPETENCY EXECUTIVE MASTER IN PROJECT MANAGEMENT Certified Construction Project Manager ( CCPM) UNIVERSITI MALAYSIA PERLIS ( UniMAP)

MODULE 01

FUNDAMENTALS OF PROJECT MANAGEMENT COMPETENCY

EXECUTIVE MASTER IN PROJECT MANAGEMENT Certified Construction Project Manager (CCPM) UNIVERSITI MALAYSIA PERLIS (UniMAP)

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[Audio] MODULE CONTENT 1.0 Introduction to Construction Project Management 1.1 Definition and Overview 1.2 Introduction to Construction Project Management 2.0 Construction Project Management Activities 2.1 Project Initiation 2.2 Conceptual Design and Preliminary Estimate 2.3 Procurement Management 2.4 Project Planning, Monitoring and Control 2.5 Financial Management 2.6 Design Management and Authority Liaison 2.7 Quality Management and Control 2.8 Occupational Safety and Health Management 2.9 Environmental Management 2.10 Value Management 2.11 Tender Management 2.12 Contract Management 2.13 Project Handover and Close-Out 2.14 Operation and Maintenance 2.15 Project People and Team Management 3.0 Conclusion

MODULE CONTENT

1.0 Introduction to Construction Project Management

1.1 Definition and Overview

1.2 Introduction to Construction Project Management

2.0 Construction Project Management Activities

2.1 Project Initiation 2.2 Conceptual Design and Preliminary Estimate

2.3 Procurement Management 2.4 Project Planning, Monitoring and Control

2.5 Financial Management 2.6 Design Management and Authority Liaison

2.7 Quality Management and Control 2.8 Occupational Safety and Health Management

2.9 Environmental Management 2.10 Value Management

2.11 Tender Management 2.12 Contract Management

2.13 Project Handover and Close-Out 2.14 Operation and Maintenance

2.15 Project People and Team Management

3.0 Conclusion

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.1 Definition and Overview • "A project is temporary in that it has a defined as beginning and end in time, and therefore defined scope and resources. And a project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal." (Adopted from Project Management Institute, 2019) • Projects and operations differ primarily in that operations (such as accounting, office administration, etc.) are ongoing and repetitive, while projects are unique and temporary. • Construction projects can be classified as either private (for profit) or public (for social need). Typically, construction projects can be categorized as: a. Residential construction projects. b. Commercial construction projects. c. Industrial/ Processing construction projects. d. Infrastructure / heavy construction projects.

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.1 Definition and Overview

• “A project is temporary in that it has a defined as beginning and end in time, and therefore defined scope and resources. And a project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal.” (Adopted from Project Management Institute, 2019)

• Projects and operations differ primarily in that operations (such as accounting, office administration, etc.) are ongoing and repetitive, while projects are unique and temporary.

• Construction projects can be classified as either private (for profit) or public (for social need). Typically, construction projects can be categorized as:

a. Residential construction projects.

b. Commercial construction projects.

c. Industrial/ Processing construction projects.

d. Infrastructure / heavy construction projects.

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.1 Definition and Overview – Cont. • A competent person is an individual that can apply a significant range of knowledge, skills and attitude to complete a certain amount of work activities and accomplish a successful as well as quality service and product. • Construction Project Manager is a person whom leads all of the construction project activities of a construction project throughout the entire project life cycle phase to achieve the construction project objective. • Construction Project Manager shall: a. Initiates construction project management activities. b. Plans construction project activities. c. Controls construction project activities and processes. d. Makes decisions for moving forward of the construction project. e. Manages construction project team and stakeholders.

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.1 Definition and Overview – Cont.

• A competent person is an individual that can apply a significant range of knowledge, skills and attitude to complete a certain amount of work activities and accomplish a successful as well as quality service and product.

• Construction Project Manager is a person whom leads all of the construction project activities of a construction project throughout the entire project life cycle phase to achieve the construction project objective.

• Construction Project Manager shall:

a. Initiates construction project management activities.

b. Plans construction project activities.

c. Controls construction project activities and processes.

d. Makes decisions for moving forward of the construction project.

e. Manages construction project team and stakeholders.

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management 1. 2.1 Authorisation of a Construction Project • Construction projects are authorized (to be implemented) by clients as a result of one or more of the following strategic considerations: a. A market demand (e.g. a property developer authorizes the development of a resort home project in response to property market demand for high class living in the City). b. An organizational need (e.g. a corporation authorizes the building of an office complex in Putrajaya to be their new corporate headquarters). c. A customer demand (e.g. the Energy Agency authorizes an expansion of the national power grid to meet the growth of customer demand for electricity in an urban area). d. A technological advance (e.g., the government built new types of schools with computer laboratory to keep the education system in step with the advances in education pedagogy). e. Legal requirement (e.g. the local authority approves the design and builds a new waste treatment plant so as to make the city comply with the environmental laws and regulation).

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management 1.2.1 Authorisation of a Construction Project

• Construction projects are authorized (to be implemented) by clients as a result of one or more of the following strategic considerations:

a. A market demand (e.g. a property developer authorizes the development of a resort home project in response to property market demand for high class living in the City).

b. An organizational need (e.g. a corporation authorizes the building of an office complex in Putrajaya to be their new corporate headquarters).

c. A customer demand (e.g. the Energy Agency authorizes an expansion of the national power grid to meet the growth of customer demand for electricity in an urban area).

d. A technological advance (e.g., the government built new types of schools with computer laboratory to keep the education system in step with the advances in education pedagogy).

e. Legal requirement (e.g. the local authority approves the design and builds a new waste treatment plant so as to make the city comply with the environmental laws and regulation).

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1. 2.2 Construction Project Life Cycle • A typical project life cycle recognizes that a project has a limited life span and that there are predictable changes in the level of effort and focus over the life of the project. Construction projects can be described in terms of its life cycle stage or phase in Figure 1.0. • Progressive elaboration is a characteristic of a project that integrates the concept of temporary and unique within the project life cycle. Because the outcome of each project is unique, the characteristics that distinguish the service must be progressively elaborated. • In construction, progressive elaboration can be seen for a project that progressed from a concept plan to schematic plan to detail contractual plans, construction and shop drawings, to as-built drawings for use in maintenance.

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1.2.2 Construction Project Life Cycle

• A typical project life cycle recognizes that a project has a limited life span and that there are predictable changes in the level of effort and focus over the life of the project. Construction projects can be described in terms of its life cycle stage or phase in Figure 1.0.

• Progressive elaboration is a characteristic of a project that integrates the concept of temporary and unique within the project life cycle. Because the outcome of each project is unique, the characteristics that distinguish the service must be progressively elaborated.

• In construction, progressive elaboration can be seen for a project that progressed from a concept plan to schematic plan to detail contractual plans, construction and shop drawings, to as-built drawings for use in maintenance.

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1. 2.2 Construction Project Life Cycle – cont. Inception phase Design development phase Tendering phase Construction phase Handover phase Operation & maintenance phase Demolition Figure 1.0: A typical Project Life Cycle

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1.2.2 Construction Project Life Cycle – cont.

Inception

phase

Design

development

phase

Tendering phase

Construction

phase Handover phase

Operation & maintenance

phase

Demolition

Figure 1.0: A typical Project Life Cycle

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1. 2. 3 Construction Project Activities • A Construction Project Manager shall have adequate knowledge to manage the following construction project activities: • These project activities are divided into modules for each respective project activities. a) Project Initiation i) Environmental Management b) Conceptual Design and Preliminary Estimate j) Value Management c) Procurement Management k) Tender Management d) Project Planning, Monitoring and Control l) Contract Management e) Financial Management m) Project Handover and Closed-Out f) Design Management and Authority Liaison n) Operation and Maintenance g) Quality Management and Control o) Project People and Team Management h) Occupational Safety and Health Management

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1.2.3 Construction Project Activities

• A Construction Project Manager shall have adequate knowledge to manage the following construction project activities:

• These project activities are divided into modules for each respective project activities.

a) Project Initiation i) Environmental Management

b) Conceptual Design and Preliminary Estimate j) Value Management

c) Procurement Management k) Tender Management

d) Project Planning, Monitoring and Control l) Contract Management

e) Financial Management m) Project Handover and Closed-Out

f) Design Management and Authority Liaison n) Operation and Maintenance

g) Quality Management and Control o) Project People and Team Management

h) Occupational Safety and Health Management

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1. 2. 4 Project Development Principle • The Construction Project Manager has to have knowledge on project development principle and understands that main issues have to be resolved soonest possible. Any changes to the project requirement during the later stages of the project would incur the cost and delay to the project. • The Construction Project Manager has to apply his knowledge, skills, tools, and techniques to manage each of the identified Project Activities and to achieve the Project Objective determined by the Client at the outset. • The Construction Project Manager has to ensure that all the project activities are implemented under the ` First Time Right Principle' to avoid wastage, time and cost during the implementation of a Project.

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1.2.4 Project Development Principle

• The Construction Project Manager has to have knowledge on project development principle and understands that main issues have to be resolved soonest possible. Any changes to the project requirement during the later stages of the project would incur the cost and delay to the project.

• The Construction Project Manager has to apply his knowledge, skills, tools, and techniques to manage each of the identified Project Activities and to achieve the Project Objective determined by the Client at the outset.

• The Construction Project Manager has to ensure that all the project activities are implemented under the `First Time Right Principle’ to avoid wastage, time and cost during the implementation of a Project.

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1. 2. 5 Three (3) Keys Project Management Process • The Construction Project Manager shall have the knowledge of the following three ( 3) keys project management processes: a. Phasing of a project – to divide the project into logical and sequential steps for ease of implementation. b. Controlling of a project – to control the implementation of the project to achieve the agreed project contents and processes, time, quality and cost. c. Decision making – to make a specific decision has to be taken at the right time at each phase of the Project Development Phase to enable the project to move forward.

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1.2.5 Three (3) Keys Project Management Process

• The Construction Project Manager shall have the knowledge of the following three (3) keys project management processes:

a. Phasing of a project – to divide the project into logical and sequential steps for ease of implementation.

b. Controlling of a project – to control the implementation of the project to achieve the agreed project contents and processes, time, quality and cost.

c. Decision making – to make a specific decision has to be taken at the right time at each phase of the Project Development Phase to enable the project to move forward.

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1. 2. 5 Three ( 3) Keys Project Management Process – cont. a. Phasing of a project The objective of phasing is to make the total development of project scope into manageable phases. Idea and What Inception Phase How Design Development Phase How to make Tendering Phase Do Construction Phase Close Handover Phase Preserve O&M Phase Construction Project Phases Figure 2.0: Phasing Project Development

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1.2.5 Three (3) Keys Project Management Process – cont.

a. Phasing of a project

The objective of phasing is to make the total development of project scope into manageable phases.

Idea and

What

Inception

Phase

How

Design

Development

Phase

How to make

Tendering Phase

Do

Construction

Phase

Close

Handover Phase

Preserve

O&M Phase

Construction Project Phases

Figure 2.0: Phasing Project Development

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1. 2. 5 Three ( 3) Keys Project Management Process – cont. b. Controlling of a project Each development phase must be controlled to ensure that the project development is in accordance with the intended project objective and the end result (or GOAL). Each phase of the project is subject to controlling processes in Time, Cost, Quality, Organization, and Information to achieve the intended project end result as shown in Figure 3.0. Figure 3.0: Project Controlling Principle

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1.2.5 Three (3) Keys Project Management Process – cont.

b. Controlling of a project

Each development phase must be controlled to ensure that the project development is in accordance with the intended project objective and the end result (or GOAL). Each phase of the project is subject to controlling processes in Time, Cost, Quality, Organization, and Information to achieve the intended project end result as shown in Figure 3.0.

Figure 3.0: Project Controlling Principle

(Time) (Cost) (Quality) (Organisation) (Information) c 1 Broad Plan for subæquent Plan & Approach Phaæ for next Project R—ult Control li Asr•cts

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[Audio] 1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1. 2. 5 Three ( 3) Keys Project Management Process – cont. a. Decision Making The work under each phase has to be completed before the decision is made and move to the next phase. This is important in order to avoid abortive work. Figure 4.0: Combination of the Three (3) Cornerstones

1.0 INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT 1.2 Introduction to Construction Project Management – cont. 1.2.5 Three (3) Keys Project Management Process – cont.

a. Decision Making

The work under each phase has to be completed before the decision is made and move to the next phase. This is important in order to avoid abortive work.

Figure 4.0: Combination of the Three (3) Cornerstones

Construction Project Phases Idea and What Inception Phase T CQ 01 How Design Development Phase T CQ 01 Construction Project How to make Tendering Phase T Do Construction Phase Close Handover Phase CQ 01 Construction Project Design T CQ 01 Construction Programme Construction rogramme Project Commission Preserve Phase T CQ 01 Operation and Maintenance Programme Decision making

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.1 Project Initiation • In project initiation, Construction Project Manager shall collect information regarding the construction project from Client that will eventually be compiled as project idea, project brief and Statement of Need. • Construction Project Manager shall also determine if the construction project is viable by conducting a feasibility study. The feasibility study will also help in compiling the requirement of the construction project in later stages. 2.1. 1 Project Idea • The Project Idea is normally determined by the Client. It forms the basis by which a project is to be developed. It defines project objectives, project results and any specific requirements by the Client. Detail evaluation or research has to be carried out to determine whether the intended Project Idea would be able to meet the objective and requirement of the Client.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.1 Project Initiation

• In project initiation, Construction Project Manager shall collect information regarding

the construction project from Client that will eventually be compiled as project idea, project brief and Statement of Need.

• Construction Project Manager shall also determine if the construction project is viable

by conducting a feasibility study. The feasibility study will also help in compiling the requirement of the construction project in later stages.

2.1.1 Project Idea

• The Project Idea is normally determined by the Client. It forms the basis by which a

project is to be developed. It defines project objectives, project results and any specific requirements by the Client. Detail evaluation or research has to be carried out to determine whether the intended Project Idea would be able to meet the objective and requirement of the Client.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.1 Project Initiation – cont. 2.1.2 Feasibility Study • Economic, financial and technical feasibility study of a project is based on the accepted Project Idea. The objective, coverage area and extent of the feasibility study have to be clearly defined to avoid abortive work inadequate findings, etc. which are insufficient for the Client to make a decision on whether to proceed with the project or not. • The accepted finding of the Feasibility Study Report would be included as part of the Project Brief of the project. 2. 1. 3 Project Brief • Project Brief is to be issued to the Design Consultant. It shall include the Project objective, physical and non-physical works required by the Client. • It shall also include the relevant accepted findings and recommendation of the `Feasibility Study Report' and other specific requirements of the stakeholders. It has to be complied fully by the Project Implementers during the implementation stage of the project unless with the specific approval of the Client.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.1 Project Initiation – cont. 2.1.2 Feasibility Study

• Economic, financial and technical feasibility study of a project is based on the accepted

Project Idea. The objective, coverage area and extent of the feasibility study have to be clearly defined to avoid abortive work inadequate findings, etc. which are insufficient for the Client to make a decision on whether to proceed with the project or not.

• The accepted finding of the Feasibility Study Report would be included as part of the

Project Brief of the project.

2.1.3 Project Brief

• Project Brief is to be issued to the Design Consultant. It shall include the Project

objective, physical and non-physical works required by the Client.

• It shall also include the relevant accepted findings and recommendation of the

`Feasibility Study Report’ and other specific requirements of the stakeholders. It has to be complied fully by the Project Implementers during the implementation stage of the project unless with the specific approval of the Client.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.2 Conceptual Design and Preliminary Estimate • With the information gathered from Client, as well as information gathered from site survey, site investigation, site visit and soil investigation, Construction Project Manager shall initiate development of concept design and began to prepare preliminary estimate of the construction project. • Design Consultant and Cost Consultant (or Quantity Surveyor) may be appointed to complete this construction activity in a more precise and professional way. 2. 2. 1 Concept Design • Design Consultant shall produce a concept design with all information provided to them and shall be presented to Client for review and discussion. Concept design may come in several options for the Client to make decision, on which design shall be proceed for the construction project. Illustration such as a 3-dimensional model may allow a better perspective for making decision.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.2 Conceptual Design and Preliminary Estimate

• With the information gathered from Client, as well as information gathered from site

survey, site investigation, site visit and soil investigation, Construction Project Manager shall initiate development of concept design and began to prepare preliminary estimate of the construction project.

• Design Consultant and Cost Consultant (or Quantity Surveyor) may be appointed to

complete this construction activity in a more precise and professional way.

2.2.1 Concept Design

• Design Consultant shall produce a concept design with all information provided to them

and shall be presented to Client for review and discussion. Concept design may come in several options for the Client to make decision, on which design shall be proceed for the construction project. Illustration such as a 3-dimensional model may allow a better perspective for making decision.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.2 Conceptual Design and Preliminary Estimate – cont. 2.2. 2 Preliminary Estimate • Quantity Surveyor may derive a very rough cost estimate based on information gathered from Client and also from concept design generated by Design Consultant. • It shall be noted that contingency amount allocated in the cost estimate amount may provide a small insurance shall there be unexpected element occurs in the future during the construction project life cycle.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.2 Conceptual Design and Preliminary Estimate – cont. 2.2.2 Preliminary Estimate

• Quantity Surveyor may derive a very rough cost estimate based on information gathered

from Client and also from concept design generated by Design Consultant.

• It shall be noted that contingency amount allocated in the cost estimate amount may

provide a small insurance shall there be unexpected element occurs in the future during the construction project life cycle.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.3 Procurement Management • In order to prepare a construction tender and then type of contract, a procurement method must be determine in order to suit the tender documentation based on procurement strategy. • There are some variables that may affect the choice of procurement method: a. Broad issues ( consultant, contractor, negotiation, measurement and alternative procurement method, among others). b. Construction Project and Client ( project size, client type, among others). c. Client procurement needs (time, cost, quality, project objectives and market conditions among others). • A Construction Project Manager shall advice Client on the procurement strategy for a successful construction project such as: a. Establish timeline of procurement activities. b. Identify resources requirement. c. Availability of sufficient fund.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.3 Procurement Management

• In order to prepare a construction tender and then type of contract, a procurement

method must be determine in order to suit the tender documentation based on procurement strategy.

• There are some variables that may affect the choice of procurement method:

a. Broad issues (consultant, contractor, negotiation, measurement and alternative procurement

method, among others).

b. Construction Project and Client (project size, client type, among others).

c. Client procurement needs (time, cost, quality, project objectives and market conditions among others).

• A Construction Project Manager shall advice Client on the procurement strategy for a

successful construction project such as:

a. Establish timeline of procurement activities.

b. Identify resources requirement.

c. Availability of sufficient fund.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.4 Project Planning, Monitoring and Control • A Construction Project Manager shall be able to plan, monitor and control a construction project. Sometimes, planning may take more time than the actual construction phase period. 2. 4. 1 Project Planning • The main thing that will be looked for in planning are the schedule or work programme. Before a Contractor is appointed and submitted their construction work programme, Construction Project Manager must have the intended milestones and major event planned on certain period or dates. A master work programme shall be referred to when reviewing the Contractor's construction work programme.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.4 Project Planning, Monitoring and Control

• A Construction Project Manager shall be able to plan, monitor and control a

construction project. Sometimes, planning may take more time than the actual construction phase period.

2.4.1 Project Planning

• The main thing that will be looked for in planning are the schedule or work programme.

Before a Contractor is appointed and submitted their construction work programme, Construction Project Manager must have the intended milestones and major event planned on certain period or dates. A master work programme shall be referred to when reviewing the Contractor’s construction work programme.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.4 Project Planning, Monitoring and Control – cont. 2.4. 2 Project Monitoring • Project monitoring is very important during construction phase, in order for the construction project is completed in time, cost as well as within acceptance quality by the Client or other standards. 2. 4. 3 Project Control • Construction Project Manager shall control the progress and execution of the construction project based on the planning made earlier in the construction project phase as well as monitoring done during construction.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.4 Project Planning, Monitoring and Control – cont. 2.4.2 Project Monitoring

• Project monitoring is very important during construction phase, in order for the

construction project is completed in time, cost as well as within acceptance quality by the Client or other standards.

2.4.3 Project Control

• Construction Project Manager shall control the progress and execution of the

construction project based on the planning made earlier in the construction project phase as well as monitoring done during construction.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.5 Financial Management • Construction Project Manager is obligated to the Client for structuring the budget carefully, based upon the Client's needs and requirements. Cash flow shall be under control all the time to ensure construction project profitability. • The need of financing in a typical construction business for contractor can be divided into three stages as follows: a. Pre-construction – Commonly for preliminaries items for contractor. This is the working capital for acquiring Performance Bond, insurances and construction and provisions of preliminary works and facilities. The pre-construction stage only contributes a small portion of the financial needs of a contractor. However, for a much larger scale project, this stage can consume a considerable sum of the contractor's budget. b. Construction – Financing is required for working capital, namely labour and construction materials, and for the fixed capital namely machinery and plants. During this stage, the contractor prepares the Cost Breakdown Structure ( CBS), a detailed form of project cost that has the direct purpose of integrating project schedule and costs with a cross reference to the project Work Breakdown Structure ( WBS).

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.5 Financial Management

• Construction Project Manager is obligated to the Client for structuring the budget

carefully, based upon the Client’s needs and requirements. Cash flow shall be under control all the time to ensure construction project profitability.

• The need of financing in a typical construction business for contractor can be divided

into three stages as follows:

a. Pre-construction – Commonly for preliminaries items for contractor. This is the working

capital for acquiring Performance Bond, insurances and construction and provisions of preliminary works and facilities. The pre-construction stage only contributes a small portion of the financial needs of a contractor. However, for a much larger scale project, this stage can consume a considerable sum of the contractor’s budget.

b. Construction – Financing is required for working capital, namely labour and construction

materials, and for the fixed capital namely machinery and plants. During this stage, the contractor prepares the Cost Breakdown Structure (CBS), a detailed form of project cost that has the direct purpose of integrating project schedule and costs with a cross reference to the project Work Breakdown Structure (WBS).

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.5 Financial Management – cont. • The need of financing in a typical construction business for contractor can be divided into three stages as follows: c. Contractor needs to bear the cost required to make good all defects in the defect liability period. The amount of fund for rectification works depends on the type and scale of defect on the finished project. A poor quality of work, which leads to failure, may result in demolition and re-construction of the works.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.5 Financial Management – cont.

• The need of financing in a typical construction business for contractor can be divided

into three stages as follows:

c. Contractor needs to bear the cost required to make good all defects in the defect liability period. The amount of fund for rectification works depends on the type and scale of defect on the finished project. A poor quality of work, which leads to failure, may result in

demolition and re-construction of the works.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.6 Design Management and Authority Liaison 2.6. 1 Detail Design • With conceptual design approved by the Client, detail design shall be developed into working drawings and specification that are suitable for construction purposes. In some procurement method, such as Conventional, detail design shall be done by design Consultant before Contractor is appointed. While in Design and Build, detail design shall be done by in house Consultant of the Contractor or by Contractor himself. • Detail design involves all discipline in a construction project and therefore clashes must be monitored between the disciplines. 2. 6.2 Cost Estimates • During the course of development of detail design, quantity surveyor may also monitor the progress of the detail design to ensure that the design does not exceed the approved budget. Cost estimates can be done by: a. Elemental cost estimate. b. Elemental cost analysis.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.6 Design Management and Authority Liaison 2.6.1 Detail Design

• With conceptual design approved by the Client, detail design shall be developed into

working drawings and specification that are suitable for construction purposes. In some procurement method, such as Conventional, detail design shall be done by design Consultant before Contractor is appointed. While in Design and Build, detail design shall be done by in house Consultant of the Contractor or by Contractor himself.

• Detail design involves all discipline in a construction project and therefore clashes must

be monitored between the disciplines.

2.6.2 Cost Estimates

• During the course of development of detail design, quantity surveyor may also monitor

the progress of the detail design to ensure that the design does not exceed the approved budget. Cost estimates can be done by:

a. Elemental cost estimate.

b. Elemental cost analysis.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.6 Design Management and Authority Liaison – cont. 2. 6. 3 Authority Liaison • All development shall obtain approval of planning permission from Local Planning Authority and all building must obtain Development Order ( D.O) before any development can start at the construction site. Submission and liaison with Local Planning Authority for approval of planning a construction project is usually done by Submitting Person (SP), and SP can be an architect, lead consultant or planning consultant. • Construction Project Manager must ensure adequate time and period is allocated for the application to be fully approved by Local Planning Authority.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.6 Design Management and Authority Liaison – cont. 2.6.3 Authority Liaison

• All development shall obtain approval of planning permission from Local Planning

Authority and all building must obtain Development Order (D.O) before any development can start at the construction site. Submission and liaison with Local Planning Authority for approval of planning a construction project is usually done by Submitting Person (SP), and SP can be an architect, lead consultant or planning consultant.

• Construction Project Manager must ensure adequate time and period is allocated for

the application to be fully approved by Local Planning Authority.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.7 Quality Management and Control • The Quality management is defined as the act of overseeing all activities and tasks needed to maintain a desired level of excellence. • Quality standards provide construction organisations with the shared vision, understanding, procedures, and vocabulary needed to meet the expectations of their stakeholders. Some benefits to quality standards are: a. The construction organisation is focused towards the quality goals. b. Increased productivity results from the initial evaluation and improvement of processes that occurs during the implementation process and from continuous training of personnel. c. Client satisfaction increases are seen as goals and objectives. d. Have better financial rewards and return on investment. e. Documented procedures are easier for new employees to follow. f. Defects are caught earlier and are corrected at a lower cost.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.7 Quality Management and Control

• The Quality management is defined as the act of overseeing all activities and tasks

needed to maintain a desired level of excellence.

• Quality standards provide construction organisations with the shared vision,

understanding, procedures, and vocabulary needed to meet the expectations of their stakeholders. Some benefits to quality standards are:

a. The construction organisation is focused towards the quality goals.

b. Increased productivity results from the initial evaluation and improvement of processes that

occurs during the implementation process and from continuous training of personnel.

c. Client satisfaction increases are seen as goals and objectives.

d. Have better financial rewards and return on investment.

e. Documented procedures are easier for new employees to follow.

f. Defects are caught earlier and are corrected at a lower cost.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.7 Quality Management and Control – cont. 2. 7. 1 Project Quality Document • Project quality document will act as medium for quality management to be implemented. These document shall ensure that quality assurance and quality control can be implemented efficiently and with standardize methodology. • Quality assurance is planned and systematic activities in quality system to satisfy relevant standard and to be performed throughout construction project. Quality control monitors construction project results to determine compliance to the listed quality standard. 2.7. 2 Quality Management System ▪ Construction organization structure and processes for implementing quality management is known as Quality Management System ( QMS).

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.7 Quality Management and Control – cont. 2.7.1 Project Quality Document

• Project quality document will act as medium for quality management to be

implemented. These document shall ensure that quality assurance and quality control can be implemented efficiently and with standardize methodology.

• Quality assurance is planned and systematic activities in quality system to satisfy

relevant standard and to be performed throughout construction project. Quality control monitors construction project results to determine compliance to the listed quality standard.

2.7.2 Quality Management System

▪ Construction organization structure and processes for implementing quality

management is known as Quality Management System (QMS).

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.8 Occupational Safety and Health Management • Implementing safety and health requirement should be part of organisation responsibility. The organizations' management must ensure that the construction project comply with Occupational Safety and Health Act 1994 and Factories and Machinery Act 1967 in implementing safety and health requirement for the construction site to minimize the accident rate and fatalities. • Construction Project Manager is the primary link between site supervisors and organization management for critical aspects of the task and represent management on construction project safety and health. • Construction Project Manager shall ensures that health and safety are a critical aspect for all works carried out at construction site. This can be done with establishment of Occupational Safety and Health ( OSH) policy in a construction project.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.8 Occupational Safety and Health Management

• Implementing safety and health requirement should be part of organisation

responsibility. The organizations’ management must ensure that the construction project comply with Occupational Safety and Health Act 1994 and Factories and Machinery Act 1967 in implementing safety and health requirement for the construction site to minimize the accident rate and fatalities.

• Construction Project Manager is the primary link between site supervisors and

organization management for critical aspects of the task and represent management on construction project safety and health.

• Construction Project Manager shall ensures that health and safety are a critical aspect

for all works carried out at construction site. This can be done with establishment of Occupational Safety and Health (OSH) policy in a construction project.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.8 Occupational Safety and Health Management – cont. 2.8. 1 Occupational Safety and Health in Construction Industry ( Management) OSHCIM • Guidelines on OSHCIM introduced by DOSH recommends that designers, principal designers, principal contractors and contractors to take account of the principles in carrying out their duties. Applying this principle at the planning and design stage will authorize the client, designer and contractor to integrate control measures as early as in the design process to avoid or, if this is reasonably practicable, minimize risks to safety and health throughout the life of the structure being designed. 2. 8. 2 Occupational Safety and Health Duties • With principle of OSHCIM implemented in construction project, the risk of a hazard occurring will become less, but monitoring during construction phase is also very important. All personnel must play their roles and take up their respective responsibilities.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.8 Occupational Safety and Health Management – cont. 2.8.1 Occupational Safety and Health in Construction Industry (Management) OSHCIM

• Guidelines on OSHCIM introduced by DOSH recommends that designers, principal

designers, principal contractors and contractors to take account of the principles in carrying out their duties. Applying this principle at the planning and design stage will authorize the client, designer and contractor to integrate control measures as early as in the design process to avoid or, if this is reasonably practicable, minimize risks to safety and health throughout the life of the structure being designed.

2.8.2 Occupational Safety and Health Duties

• With principle of OSHCIM implemented in construction project, the risk of a hazard

occurring will become less, but monitoring during construction phase is also very important. All personnel must play their roles and take up their respective responsibilities.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.9 Environmental Management • Construction is not an inherently environmentally friendly industry and many research conducted has portrayed construction as a major contributor to environmental disruption and pollution, hence a proper environmental management in construction project is crucial to be taken care of. 2. 9. 1 Environmental Impact Assessment ( EIA) • Environmental Impact Assessment (EIA) is a policy and management tool for both planning and decision making. EIA enables project owners or developers to identify, predict and evaluate the foreseeable environmental consequences of proposed development projects, plans and policies. • The outcome of an EIA study assists the decision maker and the general public to determine whether a project should be implemented and in what form. Environment Consultant shall be appointed to prepare EIA for the above purposes.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.9 Environmental Management

• Construction is not an inherently environmentally friendly industry and many research

conducted has portrayed construction as a major contributor to environmental disruption and pollution, hence a proper environmental management in construction project is crucial to be taken care of.

2.9.1 Environmental Impact Assessment (EIA)

• Environmental Impact Assessment (EIA) is a policy and management tool for both

planning and decision making. EIA enables project owners or developers to identify, predict and evaluate the foreseeable environmental consequences of proposed development projects, plans and policies.

• The outcome of an EIA study assists the decision maker and the general public to

determine whether a project should be implemented and in what form. Environment Consultant shall be appointed to prepare EIA for the above purposes.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.9 Environmental Management – cont. 2.9. 2 Environment Management Plan ( EMP) • Construction Environmental Management Plan (EMP) shall be produced at the start of construction phase. EMP shall be prepared to address the potentially significant environmental aspects and impacts and to propose appropriate mitigation measures. Construction Project Manager should ensure that the appointed Environment Consultant prepares the EMP and monitor its implementation during the construction stage. 2. 9. 3 Environmental Management Report ( EMR) • Environmental Monitoring Report (EMR) is one of the tasks to ensure the success of the recommended plan. It is required when significant environmental impacts identified from the project require follow-up study, control and/or monitoring. • The appointed Environment Consultant should prepare the EMR and assist Construction Project Manager to submit the EMR to the Department of Environment ( DOE). Construction Project Manager must be aware of the findings of Environment Consultant or content of the EMR and request consultation for any arising issues and important findings.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.9 Environmental Management – cont. 2.9.2 Environment Management Plan (EMP)

• Construction Environmental Management Plan (EMP) shall be produced at the start of

construction phase. EMP shall be prepared to address the potentially significant environmental aspects and impacts and to propose appropriate mitigation measures. Construction Project Manager should ensure that the appointed Environment

Consultant prepares the EMP and monitor its implementation during the construction stage.

2.9.3 Environmental Management Report (EMR)

• Environmental Monitoring Report (EMR) is one of the tasks to ensure the success of the

recommended plan. It is required when significant environmental impacts identified from the project require follow-up study, control and/or monitoring.

• The appointed Environment Consultant should prepare the EMR and assist Construction

Project Manager to submit the EMR to the Department of Environment (DOE). Construction Project Manager must be aware of the findings of Environment Consultant or content of the EMR and request consultation for any arising issues and important findings.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.10 Value Management ( VM) • Value management (VM) is a process that aim at defining, optimising and meeting value for money in any of the construction projects to achieve essential functions as well as consistent with requirements to performance, reliability, quality, and maintainability. • VM usually incorporates a series of workshops, interviews, and reviews, through which the project requirements are evaluated against the means of achieving them. 2. 10. 1 Value Engineering ( VE) • Under Value Engineering (VE), project functions remain the same but at a lower cost due to better plan or method of implementation. The main goal is to increase value at no additional cost when feasible.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.10 Value Management (VM)

• Value management (VM) is a process that aim at defining, optimising and meeting value

for money in any of the construction projects to achieve essential functions as well as consistent with requirements to performance, reliability, quality, and maintainability.

• VM usually incorporates a series of workshops, interviews, and reviews, through which

the project requirements are evaluated against the means of achieving them.

2.10.1 Value Engineering (VE)

• Under Value Engineering (VE), project functions remain the same but at a lower cost due

to better plan or method of implementation. The main goal is to increase value at no additional cost when feasible.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.11 Tendering Management • In construction project management life cycle, tender management usually start during the design development phase where the tender document is prepared according to the design developed during this phase, and ends during tendering phase when the contract has been awarded to contractor. The main objective of tendering is to choose and select a contractor for the construction contract. • It is the duty of the construction project manager to take lead the entire tender management in which primarily involves the design consultants such as architect, engineer, quantity surveyor or any other consultants involved in the construction project. 2. 11. 1 Tendering Method • The several types of tendering method that have been implemented in our construction industry.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.11 Tendering Management

• In construction project management life cycle, tender management usually start during

the design development phase where the tender document is prepared according to the design developed during this phase, and ends during tendering phase when the contract has been awarded to contractor. The main objective of tendering is to choose and select a contractor for the construction contract.

• It is the duty of the construction project manager to take lead the entire tender

management in which primarily involves the design consultants such as architect, engineer, quantity surveyor or any other consultants involved in the construction project.

2.11.1 Tendering Method

• The several types of tendering method that have been implemented in our construction

industry.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.11 Tendering Management – cont. 2. 11.2 Tender Document • The content of tender document for different procurement method, as well as typical content of a Conventional as well as Design and Build ( D&B) procurement. 2.11. 3 Tender Process • Typical process of tendering. Once a successful tenderer is selected, a contractor may be appointed with issuance of Letter of Award ( LOA) or Letter Acceptance ( LA). Tender document and submission of the successful tenderer shall be compiled and form a contract document of the construction project.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.11 Tendering Management – cont. 2.11.2 Tender Document

• The content of tender document for different procurement method, as well as typical

content of a Conventional as well as Design and Build (D&B) procurement.

2.11.3 Tender Process

• Typical process of tendering. Once a successful tenderer is selected, a contractor may be

appointed with issuance of Letter of Award (LOA) or Letter Acceptance (LA). Tender document and submission of the successful tenderer shall be compiled and form a contract document of the construction project.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.12 Contract Management • Contract document that was bounded will have relationship of an Employer and the Contractor in a construction contract. The Client is usually the Employer and may delegate his power to a Contract Administrator ( CA) according to the clauses and conditions of the construction contract. A Construction Project Manager may also be appointed as CA in a construction contract by the Employer. • A contract document is usually be formed with standard form of contract as a base. There are many form of contracts usually used on construction industry and even established by regulated agencies such as by CIDB, JKR, PAM, IEM, AIAC and FIDIC among others. 2. 12. 1 Contract Clauses • A Construction Project Manager (as a Contract Administrator), shall monitor the execution of the construction contract by the Contractor and also ensure compliance in the action of all parties in fulfilling their obligation under the construction contract. • According to the above listed standard form of contracts, there are many clauses and condition that shall be fulfilled throughout the construction contract.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.12 Contract Management

• Contract document that was bounded will have relationship of an Employer and the

Contractor in a construction contract. The Client is usually the Employer and may delegate his power to a Contract Administrator (CA) according to the clauses and conditions of the construction contract. A Construction Project Manager may also be appointed as CA in a construction contract by the Employer.

• A contract document is usually be formed with standard form of contract as a base.

There are many form of contracts usually used on construction industry and even established by regulated agencies such as by CIDB, JKR, PAM, IEM, AIAC and FIDIC among others.

2.12.1 Contract Clauses

• A Construction Project Manager (as a Contract Administrator), shall monitor the

execution of the construction contract by the Contractor and also ensure compliance in the action of all parties in fulfilling their obligation under the construction contract.

• According to the above listed standard form of contracts, there are many clauses and

condition that shall be fulfilled throughout the construction contract.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.12 Contract Management – cont. 2. 12.2 Contract Breach • If one of the parties to a contract fails to perform as required, this may constitute a breach of contract. A breach may entitle the innocent party to make a claim for damages for the losses it has suffered. • Assessing the seriousness of breaches of contract depends on the particular circumstances and terms of the contract. This can lead to disputes, where for example, the Employer refuses to make payment, claiming that the contractor has failed to perform, whereas the contractor contends that they are not performing because the Employer has refused to make payment. • Construction contracts usually include provisions for the resolution of disputes by agreed dispute and claims resolution procedures. • When the conflict is large enough and brought upon to the action or situation of a party or more parties to breach the contract, the construction contract in Malaysia facilitate the situation with clauses of the contract either to put a party out of the contract ( determination) or put an end to the contract itself ( termination).

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.12 Contract Management – cont. 2.12.2 Contract Breach

• If one of the parties to a contract fails to perform as required, this may constitute a

breach of contract. A breach may entitle the innocent party to make a claim for damages for the losses it has suffered.

• Assessing the seriousness of breaches of contract depends on the particular

circumstances and terms of the contract. This can lead to disputes, where for example, the Employer refuses to make payment, claiming that the contractor has failed to perform, whereas the contractor contends that they are not performing because the Employer has refused to make payment.

• Construction contracts usually include provisions for the resolution of disputes by

agreed dispute and claims resolution procedures.

• When the conflict is large enough and brought upon to the action or situation of a party

or more parties to breach the contract, the construction contract in Malaysia facilitate the situation with clauses of the contract either to put a party out of the contract (determination) or put an end to the contract itself (termination).

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.13 Project Handover and Close-out • With construction works by the Contractor are near completion, a stage of confirmation that the construction project is constructed compliance with the design and contract shall be inspected, tested as well as proven to be functional by the Contractor. 2. 13. 1 Final Inspection, Testing and Commissioning (T&C) • Testing and commissioning (T&C) shall be done on services constructed and installed in a construction project. T&C shall be scheduled accordingly so as to allow the Client or Client's representative as well as Construction Project Manager or his delegates to witness the test and eventually approved of their functions and operational. • Shall there be any minor defect to the completed works, the defect shall be listed in a defect list (or punch list) for the Contractor to rectify during Defect Liability Period ( DLP). The works shall not be deemed as practical completion shall there be major outstanding works or defects remaining.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.13 Project Handover and Close-out

• With construction works by the Contractor are near completion, a stage of confirmation

that the construction project is constructed compliance with the design and contract shall be inspected, tested as well as proven to be functional by the Contractor.

2.13.1 Final Inspection, Testing and Commissioning (T&C)

• Testing and commissioning (T&C) shall be done on services constructed and installed in a

construction project. T&C shall be scheduled accordingly so as to allow the Client or Client’s representative as well as Construction Project Manager or his delegates to witness the test and eventually approved of their functions and operational.

• Shall there be any minor defect to the completed works, the defect shall be listed in a

defect list (or punch list) for the Contractor to rectify during Defect Liability Period (DLP). The works shall not be deemed as practical completion shall there be major outstanding works or defects remaining.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.13 Project Handover and Close-out – cont. 2.13.2 Certificate of Practical Completion • A Contractor shall applies for practical completion from the Client or Construction Project Manager after it was deemed to have completed all works according to the contract. The Client and Construction Project Manager shall ensure that all works done are completed, inspected and tested to be according to the design, specification and as per contract. • After the conformance, Construction Project Manager shall grant the Contractor with Certificate of Practical Completion ( CPC). • However, the Client must ensure that Certificate of Completion and Compliance ( CCC) is issued by the Architect or Engineer before the completed construction project can be occupy and operated. 2. 13. 3 Hand over Document • The Contractor shall submit hand over document upon completion of works in a construction project such as:

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.13 Project Handover and Close-out – cont. 2.13.2 Certificate of Practical Completion

• A Contractor shall applies for practical completion from the Client or Construction

Project Manager after it was deemed to have completed all works according to the contract. The Client and Construction Project Manager shall ensure that all works done are completed, inspected and tested to be according to the design, specification and as per contract.

• After the conformance, Construction Project Manager shall grant the Contractor with

Certificate of Practical Completion (CPC).

• However, the Client must ensure that Certificate of Completion and Compliance (CCC) is

issued by the Architect or Engineer before the completed construction project can be occupy and operated.

2.13.3 Hand over Document

• The Contractor shall submit hand over document upon completion of works in a

construction project such as:

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.13 Project Handover and Close-out – cont. 2. 13. 4 Final Account • The final account is the conclusion of the contract sum (including all necessary adjustments) and signifies the agreed amount that the Client will pay the Contractor. • The final account meetings are generally held between the Client, Construction Project Manager, Contractor, as well as Quantity Surveyor ( QS) to confirm all cost including variable and variations are included in the Final Account. • The Contractor shall submit the draft Final Account upon completion of Defect Liability Period and was granted with Certificate of Making Good Defect by the Client. • Upon approval of the final account, the Client shall issue the Final Certificate to the Contractor and signifies the end of the construction contract.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.13 Project Handover and Close-out – cont. 2.13.4 Final Account

• The final account is the conclusion of the contract sum (including all necessary

adjustments) and signifies the agreed amount that the Client will pay the Contractor.

• The final account meetings are generally held between the Client, Construction Project

Manager, Contractor, as well as Quantity Surveyor (QS) to confirm all cost including variable and variations are included in the Final Account.

• The Contractor shall submit the draft Final Account upon completion of Defect Liability

Period and was granted with Certificate of Making Good Defect by the Client.

• Upon approval of the final account, the Client shall issue the Final Certificate to the

Contractor and signifies the end of the construction contract.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.14 Operation and Maintenance • Upon issuance of CPC and CCC, the finished construction project can be occupy and operated by the Client. • A Construction Project Manager should also ensures that the Operation and Maintenance ( O&M) manual as well as as-built drawing are prepared by the Contractor, reviewed and approved before they are submitted and used by the Client. Training shall also be done by the Contractor to the Client's personnel. • Incomplete or non-user friendly of O&M manual can lead to frustration by the O&M personnel after the construction project is handed over by the Contractor. Construction Project Manager protect the Client's interest by ensuring completeness of the O&M manual. • There are several supporting equipment and tools that can be established in a construction project to facilitate the O&M of the new facilities.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.14 Operation and Maintenance

• Upon issuance of CPC and CCC, the finished construction project can be occupy and

operated by the Client.

• A Construction Project Manager should also ensures that the Operation and

Maintenance (O&M) manual as well as as-built drawing are prepared by the Contractor, reviewed and approved before they are submitted and used by the Client. Training shall also be done by the Contractor to the Client’s personnel.

• Incomplete or non-user friendly of O&M manual can lead to frustration by the O&M

personnel after the construction project is handed over by the Contractor. Construction Project Manager protect the Client’s interest by ensuring completeness of the O&M manual.

• There are several supporting equipment and tools that can be established in a

construction project to facilitate the O&M of the new facilities.

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[Audio] 2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES 2.15 Project People and Team Management • The Construction Project Manager shall have adequate knowledge to recommend the most suitable matrix organisation for a project to the organisation's management, prepare Project Organisation Chart, work scope, responsibility and delegated authority of each of the senior staff, line of communication between the staff and the management, etc. • Project Team Management shall be based on the approved Project Organisation Structure. There are four ( 4) main types of project organisation structure under the organisation structure. • An organisation's adoption of a particular construction project organisation structure depends on its resources as well as capability and trustworthiness of the staff and the importance and complexity of the project.

2.0 CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

2.15 Project People and Team Management

• The Construction Project Manager shall have adequate knowledge to recommend the

most suitable matrix organisation for a project to the organisation’s management, prepare Project Organisation Chart, work scope, responsibility and delegated authority of each of the senior staff, line of communication between the staff and the management, etc.

• Project Team Management shall be based on the approved Project Organisation

Structure. There are four (4) main types of project organisation structure under the organisation structure.

• An organisation’s adoption of a particular construction project organisation structure

depends on its resources as well as capability and trustworthiness of the staff and the importance and complexity of the project.

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[Audio] 3.0 CONCLUSION • A Construction Project Manager must be aware of these fundamentals in order to manage a construction project. • A Construction Project Manager should also has knowledge and ability to explain their role in all the process of a construction project on the surface and ready to go deeper on each component of a project.

3.0 CONCLUSION

• A Construction Project Manager must be aware of these fundamentals in order to manage a construction project.

• A Construction Project Manager should also has knowledge and ability to explain their role in all the process of a construction project on the surface and ready to go deeper on each component of a project.

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[Audio] THANK YOU Recommended Reading and Reference 1. Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 (As at 1 October 2015), Act 520. 2. Construction Industry Development Board ( CIDB) Malaysia ( 2019), Construction Industry Competency Standard ( CICS) for Certified Construction Project Manager ( CCPM)

THANK YOU

Recommended Reading and Reference

1. Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 (As at 1

October 2015), Act 520.

2. Construction Industry Development Board (CIDB) Malaysia (2019), Construction

Industry Competency Standard (CICS) for Certified Construction Project Manager

(CCPM)