Project Management Application in Construction Review

Zhiqin Chan

1,*,†

, Yuchen Shen

2,*,†

and Yingying Zhang

3,*,†

School of Mechanical Engineering, Virginia Polytechnic Institute and State University, Blacksburg, U.S.A.

School of Automation, Northeast University at Qinhuangdao, China

Faculty of Built Environment, The University of New South Wales, Sydney, Australia

†

These authors contributes equally

Keywords

: Construction Project, Project Management, Critical Path Method, Program Evaluation and Review

Technique, Human Resource Management.

Abstract: Construction projects are irreplaceable parts of our daily life. When such kind of program starts to operate,

its finishing line and the final cost are determined by environmental factors and technical restrictions to some

extent. Thus, this essay is going to talk about the Critical Path Method (CPM) and Program Evaluation and

Review Technique (PERT), two of the practical tools for managers to wisely shorten a project's duration.

"Human is the first element of management". Negative impacts could take place during the procedure of a

construction project, while most of those unfavorable effect is strongly related to human resource. In order to

defeat other competitors, managers should take the advantage of talent in competition into consideration.

Invalid Human Resource Management (HRM) may reduce the productivity of a project, or even lead to

irreversible failure. Therefore, the following passage also contains information on how a project manager

should make full use of the human resource of the ongoing process.

1 INTRODUCTION

Project management is the process of leading a team

to achieve all project goals within certain constraints.

The goal of project management is to complete a

project that meets the client's goals. The main

constraints are the scope, content, start and end times,

and budget of the project. The main challenge in

terms of project management is to optimize the

allocation of resources necessary to invest and apply

them to meet pre-set goals. The Project Management

Body of Knowledge (PMBOK) mentions that the

whole project management including the process of

integration, scope, schedule, cost, resource,

procurement, communication, risk and stakeholder

management. (Project Management Institute, issuing

body. 2017).

Projects can include producing a unique product,

providing a service, or giving the customer the

desired result. Projects must have definite start and

end markers. The projects usually have time

constraints and are constrained by funding or staffing

as well. Projects can meet unique goals and

requirements, usually by making a beneficial change

to the customer or adding value to the product.

Projects can be temporary in nature or regular

business. Regular business is the activity of

producing products or providing repeatability. In

practice, the management of this different mode of

production requires the development of different

technical skills and management strategies. (Murray-

Webster, Ruth; Dalcher, Darren. 2019).

At present, project management has become an

independent field, with independent research topics,

its theoretical basis, the use of specific research

methods, and widely used in life. (Trocki and

Bukłaha 2016) The application of project

management extends to other industrial fields, such

as the pharmaceutical industry, telecommunications

sector, software production. And the application of

project management is very wide, the production of

biscuits, the development of games, engineering

construction, project management can be used

everywhere. Project management is a team

collaboration, the better the collaboration, the fewer

errors, the better the project completion.

The research direction of this paper is the

application of project management in the

construction industry. The main research is how to

optimize the completion time of the project so that

Chan, Z., Shen, Y. and Zhang, Y.

Project Management Application in Construction Review.

DOI: 10.5220/0011151700003437

In Proceedings of the 1st International Conference on Public Management and Big Data Analysis (PMBDA 2021), pages 44-51

ISBN: 978-989-758-589-0

the project can be completed effectively in the

shortest possible time, but also in line with the budget

requirements. The research includes human resources

as well. In management, how to arrange employees,

training employees and solidifying their hearts is also

an important part of doing good project management.

At present, the construction management industry

does not pay enough attention to the innovation of

management technology, and the management

scheme is not clear and detailed. (Wang 2021) These

problems may lead to the quality of the building

problems. At the same time, the real estate industry

in recent years is increasingly depressed. For

example, the project cannot deliver by the schedule

as the plan is unreasonable, construction companies

and contractors are unable to complete projects due

to bankruptcy. The above problems often occur in the

construction industry. Therefore, it is necessary to

strengthen the management of project time and cost

to improve the efficiency of project management.

This report is organized as follows, first is going

to talk about the literature review of the project

management. This part is aimed to discuss the

significance of construction management and the

methods of project management use in construction

management. The literature review will focus on the

3 directions of construction management, which is

the schedule, delay factors with the following cost,

and human resource management. Then this report

will analyse the finding in the literature review and

mainly talk about the methods using in the

construction. The last section will be a conclusion for

the whole project.

2 LITERATURE REVIEW

The research idea of this paper is to select the

research direction. Base on the research direction to

do the literature review, and then found the issue of

the construction industry from the literature review.

The following will analyse the issue, give the solution

and provide the recommendation. The following

figure is the brainstorming map of the research

approach.

Figure 1. Research approach.

2.1 Construction Planning

Schedule management plays a very significant role in

project management. Schedule management is to

arrange the activities of the project and determine the

project duration. Excellent project schedule

management helps the company to get back the

investment return as early as possible, maintain the

good economic situation of the company, ensure the

stability of the capital chain, and thus improve the

economic benefits of the company. Therefore, in

order to achieve the profit goal of the project, there

must be reasonable project planning, scientific and

reasonable control, and effective investment of

resources. (Ge 2011).

For the same management category, construction

management and project management are mutually

connected. In construction management, there is a

stage which is construction planning. It plays a

similar role to schedule management in project

management.

Planning refers to the overall prediction of the

future course of action and is a conceptual word in

architecture. Planning is the process of making

assumptions and predictions about the future. Gather

facts and opinions during the process to develop an

appropriate course of action to achieve the proposed

objectives. Planning is a very important phase in a

project. The success rate of a project will be greatly

increased if there is a reasonable plan, the plan is

Project Management Application in Construction Review

carried out effectively, and the people involved are

actively involved in the plan. (Kerzner 2013) In order

to implement the plan smoothly, control is also a very

important means. It is necessary to monitor the

progress, find the deviation from the original plan in

time, evaluate the impact of the deviation and update

the plan.

Programming and scheduling are both approaches

to construction planning. Programming specifically

refers to the identification of the activities needed to

complete a project, the relationships between the

activities, and the order in which they will be

executed. Scheduling is the process of quantifying a

program in order to measure time, cost, and

efficiency in allocating resources.

2.2 Construction Project Delay and

Economic Response

Project delay is a phenomenon that all project

managers will try their best to reject. Managers tend

to make decisions with clear management of all

possible consequences. In the past years, Project

Management strategies did help companies enhance

their effectiveness and avoid insufficient cost.

However, a considerable number of uncertainties

show up when people manage a project. The

uncertainties, sometimes, will lead to a significant

delay of the project process and will also result in

economic responses like the increasing budget.

The uncertainties of building construction and

other constructions are from many resources and

regularly get different roles of people involved. A

feeble identification and management of the

unexpected situation will result in unnecessary costs

to the project and serious delay of the project. The

Specialty Plant Services (SPS) has stated that the

common construction uncertainties poorly including

project scope management, sudden increase in

construction material, lack of project controls, issues

with suppliers and subcontractors, poorly written

contract, environmental or weather conditions, and

unknown site conditions. (Specialty Plant Services

2021) The SPS also states that companies should

identify those potential risks while the preparation of

construction. The statement from SPS means that,

people can avoid risks in advance with a well-

performed project management strategy.

In another essay, Project Management and Delay

Factors of Public Housing Construction by Yue

Choose Kog, Ph.D. (Yue 2017), stated that the major

factors of the delay in a construction project are the

late release of the site, variation orders, delay by other

contractors, shortage of building materials, inclement

weather, and other factors like amenities. The

author's research is based on all 186 cases powered

by The Housing and Development Board (HDB), a

Singapore public housing development corporation.

(Shah 2016) The consequence caused by the delay

factors is that for 164 cases, they finished all the

construction 854 months late and huge further cost.

Since the project was late, the company will have to

cover all the compensation to their customers and the

document fees related to government activities.

Even more, the economic response of a

construction project delay is an important

consideration during the project management

process. Doctor, Raj Kapur Shah, has done research

about the causes for delay and cost overrun in

construction projects. (Shah 2016) Raj has analyzed

three cases and find out that for different countries,

the most critical delay factors will be different, and

the future economic response will be various. But one

thing in the same is that all delay factors lead to a

significant cost overrun situation.

Thus, delay factors and following cost overrun

should be considered thoroughly while having

project management. Strategies should be applied to

make proactive control of the potential delay factors

and reject all possible uncertainties.

2.3 Construction Project Human

Resource Management

A construction project is often hard to achieve its

target within the budget and time. Such a tough

situation is mainly caused by the following factors,

for instance, project complexity, environment,

economic, material, project parties and statutory

regulations.

Cost overrun is a very common problem facing by

the construction industry. Cost is always related

between the contract amount and the actual cost. The

contract amount is agreed upon by the employer and

the contractor during the signing contract stage. The

actual cost is the final cost of a completed

construction project. In a practical situation, the

actual cost is extremely difficult to predict due to

various reasons, such as unnecessary employers’

interference, low productivity of workers, the

managers' lack of experience, etc.

Hence in the year 1989, the idea of Human

Resource Management Effectiveness (HRME) was

mentioned in Ulrich's Periodicals Directory, by using

which will solving similar circumstances (Yang

2021).

Human Resource Management (HRM) is the

function within an organization that focuses on

PMBDA 2021 - International Conference on Public Management and Big Data Analysis

recruitment, management, and providing direction

for the people who work in the organization. HRM is

the organizational function that deals with issues

related to people such as compensation, hiring,

performance management, organization

development, safety, wellness, benefits, employee

motivation, communication, administration, and

training. ("Caused Of Employer Related Cost

Overrun Construction Essay" ukessays.com. 2018)

The purpose of HRM is to hire, train and develop

staff and where necessary to discipline or dismiss

them. Through effective training and development,

employees at Enterprise achieve promotion within

the company and reach their full potential. This

reduces the need for external recruitment and makes

maximum use of existing talent. ("Strategic Human

Resource Management In Asda." ukessays.com.

2018) In this way, the process of managing people

during business issues should be easier and more

cost-effective.

The evaluation of the efficiency of HRM by the

enterprise can improve the strategic role of corporate

human resources, make HRM work more closely

related to the development of the company, and

provide more targeted suggestions for formulating

development strategies. Only by continuously

evaluating the effectiveness of corporate HRM can

we continuously improve its methods and practices

and enable HRM to play its strategic role. (Describe

Human Resource Management in Organisations in

New Zealand." ukessays.com. 2018)

Therefore, the following content will review the

objects, perspectives, and methods of human

resource management both at home and abroad.

3 RESULT AND DISCUSSION

3.1 Construction Planning

To ensure that the project can achieve the expected

benefits within a reasonable time frame. During the

planning stage, efforts should be made to coordinate

resources as much as possible to make the project

have sufficient return. So as to meet the full

expectations of customers. The following section lists

the tools and methods commonly used in the time

planning phase of project management.

3.1.1 Management Tools

Work Breakdown Structure(WBS) is to break down

the large project by layer-to-layer into its smaller

components or activities. Decomposition structure

elements can be products, data, services, activities, or

other elements which can divide the project with

logic. The WBS provides an implementation step for

the construction of the project, provides the necessary

framework for detailed cost estimation and control,

and provides guidance to help control the project

schedule and supervision (Munier, Jiménez-Sáez, &

Fernández-Diego 2013).

Critical Chain Project Management (CCPM) is a

Project Management method proposed by Dr.

Eliyahu M. Goldratt in his book Critical Chain in

1997 (Goldratt, 1997). It is proposed to solve the

problem that many projects end up taking longer than

expected to complete, resulting in increased cost over

budget and project delivery quality that does not meet

the original promise (Kumar Mishra, & Kumar

Moktan, 2019). CCPM can avoid delayed delivery

due to task uncertainty. The longest time chain in the

critical chain determines the final delivery time of the

project. The core of CCPM is to constrain the

duration, allowing projects to be completed in a

shorter time with limited resources.

3.1.2 Presentation of Plan and Schedule

Critical Path Method (CPM) network and Program

Evaluation and Review Technique (PERT) network

are commonly used in engineering to assist in time

flow planning. Both Networks can display simple

diagrams of information flows or workflows,

including the order of activities and their

relationships. They cannot intuitively display the

project completion time and the use of resources.

These are graphical models that show strong logical

sequences and relationships.

Different from the above two charts, Gantt Charts

can well reflect the process and time of the project.

Gantt Charts can list the objectives which need to be

completed, the tools or the equipment that to be used,

the duration of the activities, and the specific time.

The chart is very logical as well.

3.2 Construction Project Delay and

Economic Response

The delay factors and economic response of cost

overrun have shown their significance in the project

management of construction projects. To avoid delay

factors and cost overrun, proactive movements

Project Management Application in Construction Review

should be generated and covered all possible

presumptions. Since then, the following parts will

talk about the technologies, and methods researchers

used to find those legacies and weaknesses in the

project management process.

3.2.1 Diagnosis Tool

Relative Importance Index (RII) is a tool that can

identify the most critical factors causing the delay.

When applying the RII method, the company must

create a questionnaire and send them to three main

parties: consultant, client, and contractors. For each

cause, there will be a rank of importance which will

be selected by the three main parties. The importance

is shown in terms of 1 to 4 with increasing

essentiality.

3.2.2 Proactive Movements

Since the major project delay factors have been

identified, people have a clear view and understand

about those factors. With a considerable analysis of

the factors, companies will be able to work out a plan

in advance to solve and overcome the potential delay

factors. For example, the case of the HDB project

mentioned previously. The unexcused delay factors

like inadequate information can be limited by

improving the communication efficiency before

beginning of a specific task or even the beginning of

the project. A more specific example mentioned in

the essay is that the Contract Department should

check with the Civil Engineering Department to

check on-site availability prior to calling a tender for

a building contract (Yue 2017). Another possible

proactive movement is to hold meetings between

project managers and actual workers more

frequently. The meeting will help the administration

party well contact construction teams with effective

information.

3.3 Human Resource Management on

Construction Project

Compared with those unsteady and random elements,

artificial factors are clearer to be discovered and

easier to be taken under control. A good business

strategy is one that is likely to succeed, is informed

by people factors. (Yang 2021) Accordingly,

Performance Management is often recommended to

assist the process of managing people who work for

the project.

The process of planning, implementing,

monitoring, and improving the efficiency and

effectiveness of the internal units of organization and

staff can be called Performance Management.

Within each organization, Performance Management

is a key issue affecting all other components of

human resources management. The goal of

Performance Management is to improve the

performance of individuals, teams, and

organizations. ("Strategic Human Resource

Management In Asda." ukessays.com. 2018)

The following content includes basic missions for

both the managers and the employees. By doing so,

the former could manage to facilitate their

supervision, while the latter may timely check on the

completion of their tasks.

3.3.1 Managers: Leaderships, Strict

Standard for Recruitment,

Communication

A manager may be recognized as the leader of the

team. What kind of leadership style does the leader

adopt to have a great influence on the development of

the team. Leadership can determine the efficiency

and future height of a team. The team which has

correct or suitable leadership is getting stronger and

stronger. On the contrary, it is easy for the team to be

lazy and lack creativity. Meanwhile, it will also do

more harm than good if the schedule of the project

doesn't take emergency and risks measures seriously,

or the entire plan is far too vague to comprehend.

Therefore, it is necessary to choose the appropriate

leadership method for the team according to the

actual situation.

Finding the right employees through recruitment

is crucial to the completion of projects and the

expansion of the team's competitive advantage. Fair

recruitment allows the team to have more talent. All

kinds of managers should avoid unconscious bias in

the recruitment process and give everyone an equal

opportunity. Hiring the person best suited for the job

without being affected by stereotypes. (B.Kaviya,

C.Hema. 2015) Giving the employees a sufficient

amount of training is a good idea to be taken into

consideration.

Focusing on communication between team

members is necessary as well. Employees need to be

aware of the goals and deadlines of ongoing projects,

so it's important to communicate well with them and

inform them about the situation within the

organization. In order to control the project process

well, doing a good job of time management is very

necessary.

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3.3.2 Employees: Teamwork Culture,

Motivate Participation, Accepting

Appropriate Training

If the team relationship is not harmonious, then the

team members have no cohesion, which is not

conducive to the completion of the project. Without

cooperation, excellent performance cannot be

achieved. Team members should develop the ability

to teamwork. The so-called teamwork ability refers

to the ability to build on the team, give play to the

team spirit, complement and help each other to

achieve the maximum work efficiency of the team.

For team members, it is not only necessary to have

individual abilities, but also the ability to do their best

in different positions and coordinate with other

members.

Creating a sense of belonging among employees

can effectively increase their participation in the

work. If the team is always full of contradictions

whether the speed and quality of the project

completion will have a great impact. Team members

should trust each other, be inclusive, maintain open

communication and be willing to share ideas. (Bika,

2020) Therefore, in order to better cultivate

employees' sense of participation, the most important

thing is communication and feedback. Meanwhile, to

stimulate the enthusiasm of employees to work, the

competition mechanism can be created appropriately.

The implementation of competition mechanism in the

enterprise, excellent staff promoted, poor

performance eliminated so that employees aware of

the sense of crisis. In this way, employees can be

motivated to improve their enthusiasm, understand

that society is the strong kill the weak.

Firing people is never the ideal thing to do, and

it's something no hiring manager wants to face. But

this method should always be used as a last resort.

Employees should be given the opportunity to

improve themselves before leaving the team, thus

they are not supposed to give in to difficulties so

easily. However, if the situation does not change,

then consider whether the employee is fit to stay with

the team since keeping consistently underperforming

employees on the team can lead to negative outcomes

and consistently unsatisfactory work quality.

(Indeed. 2020)

3.4 Suggestions for Concrete Examples

3.4.1 A Construction Project Located in

Nanjing, Jiangsu Province, China

In this particular event, the author managed to make

a survey about the response of the workers involved

in one of the construction projects of a company. The

result turned out to be disappointing due to the poor

performance of each department. Consequently, the

finishing time was postponed to nearly three weeks,

leading to an unexpectedly high increase in the cost

of the project as well. What's worse, plenty of the

employees complained fiercely about the poor

organization of the whole procedure. Some of them

even claimed that they would never work on such a

project again, which indicated that the necessary

communication between the managers and the

workers was neither enough nor effective at all. (Ting

2020)

To effectively solve the existing problems and to

avoid or reduce the possibility of the same problems

occurring in the future, our team came up with two

suggestions down below:

In the first place, making full use of the realistic

capacities of the employees by in-time

communication. Truly, CPM and PERT methods are

smart implements to shorten the working time, but

one should never make the schedule too perfect or too

idealistic. In the real world, there will always be some

unexpected situations, and we should set aside some

time to deal with these problems. At the same time,

the projects on the schedule should be broken down

into as many details as possible so that more people

can manage and monitor the quality of work being

done. Additionally, managers ought to regularly ask

for or give feedback on their workers' performance.

By the means, supervisor understands what

employees think, and whether they are faced with any

difficulty, employees might provide constructive

suggestions about the project. Asking and giving

feedback does not only make the task completed

more efficient, but it also facilitates the relationship

between employee and supervisor. (Vdovin, 2017)

In the second place, it is highly recommended to

prepare the right amount of awards for

encouragement and stimulation. This is also one of

the good method to cultivate both the relationship

between the workers and the managers and the

pleased and effective environment for cooperating

tasks. While the theories of CPM and PERT has

already been practiced, a united working team might

make the procedure even better than expected.

Project Management Application in Construction Review

3.4.2 Terminal 5 Project at Heathrow

Airport, London

The Terminal 5 project at Heathrow Airport was

recognized as a success since it met high standards

for safety and quality, remained within budget and

was completed on time, and met all its objectives. Its

successful completion is credited to the client. British

Airports Authority (BAA) had also established

relationships with stakeholders that were mutually

dependent, contributing to team building, and

promote commitment to the project at all levels of the

supply chain. (UKEssays. 2018)

According to the writer, from the successful event

mentioned above, we may safely arrive at some

beneficial advice for HRM on construction projects:

Firstly, the scope of the project should be always

under attention. The areas and processes affected by

the project are defined as its scope, which needs to be

clearly understood by all stakeholders. Therefore, the

scope of the project should not be changed without

the client's approval, which will also require new

estimates of costs and new plans.

Secondly, stick to the final goals once they are

clear. If the goals are settled, the project manager is

ought to establish the technical and business

objectives of the project that will contribute to

meeting these goals, which will inform the detailed

planning for the project.

Lastly, the final stages of the construction project

require careful management. The project manager

needs to ensure all elements of the project have been

completed, and that the client is given any support

needed when taking ownership of the construction, as

well as any operational arrangements that are

required.

4 CONCLUSION

In conclusion, this study exhibits the significance and

importance of project management in construction.

Following the main leitmotiv of project management

is to complete a project meeting client's goal, tools

like CCPM and WBS can help project the process

with an effective plan and methods like CPM and

PERT can help to form up a logical schedule. Further

to overcome the uncertainties and delay, RII and BIM

tools are being used to predict potential risks, which

can cause later cost overrun situations. Though

people can never completely prevent unpredictable

circumstances, people can use tools to record each

happened case to remind future project managers.

Last but not least, HRM plays an essential role in

the entire procedure of a program as well. Orderly

management of the human resource could simplify

numerous tasks and stabilize the routine.

Performance Management has been proved to be one

of the effective ways to enhance the HRM

productivity of them, which will later benefit the

process of the whole project management.

A construction project must depend on the

management of the project, which reflects the

importance of management in the construction

process of the project. Therefore, in the construction

process to the construction project management as

the center, improve the quality of the project, dare to

manage innovation, ensure the progress of the

project, reduce the cost of the project, improve the

economic benefits.

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