Project Management in Construction

Project Management in Construction -

Fourth Edition

Anthony Walker BBS, MSc, PhD, FRICS Emeritus Professor of Real Estate and Construction University of Hong Kong

Blackwell Science

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Contents

Preface

1 Relevance of Organisation Structure Introduction Management and organisation Building versus civil engineering Definition of construction project management Objectives and decisions The project management process and the project manager 1 Projects, firms and clients The contribution of organisation structure Organisation theory and project organisations Project organisation in context 2 Evolution of Project Organisation Introduction Origins A perspective of c ~ n t e r n ~ o ; & influences ~ Relevance of systems theory '

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3 Organisation and the Construction Process Introduction The classical approach The behavioural approach The socio-technical approach The systems approach Postmodernism Mintzberg's classification The transaction cost approach and organisational economics Projects, firms and process

4 Systems Thinking and Construction Project Organisation Introduction

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Contents

Systems concepts Action of environmental forces Summary

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The Client Introduction Classification of clients Clients' objectives Relationship of the client's organisation and the construction process Conflicting objectives Project change Role of the client Clients and projects

6 The Project Team The firms Relationship with the client Differentiation, interdependency and integration Decisions and their effect on structure Differentiation and integration in practice Culture Partnering Management techniques and project information 7 A Model of the Construction Process Introduction Common characteristics Sub-systems The operating system and the managing system Design of organisation structures Convergence 8 Activities of Project Management Introduction Approval and recommendation Boundary control, monitoring and maintenance General and direct oversight Pattern of activities Functions of project management Some practical considerations

9 Authority, Power and Politics Introduction Authority

Contents

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Power Relationship between authority and power The sources of power Power and interdependency Politics in organisations Power and leadership Empowerment Power in project management Politics, projects and firms Empowerment and projects Project managers and power 10 Project Leadership Introduction Leadership Some research models Leadership style Leadership and the project manager Project managers' perceptions Leadership qualities 11 Organisation Structures Introduction Project management theory and transaction cost economics The components of project organisation structures Client/project team integration Design team organisation Integration of the construction team An illustration of a transaction cost explanation Organisation matrix ',,_..

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211 21 1 212 22 1 22 1 222 229 238 239

Analysis and Design of Project Management Structures Need for analysis and design Criteria Techniques Linear responsibility analysis Project outcome Presentation of project organisations Case studies Refevences Index

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Agency theory, 52 Alternative methods of management, 234 Appointment contractor, 240 project team, 166 Approval, 155,263 Asset specificity, 218 Authority, 173 client, 105, 155 in projects, 186 project teammanager, 105, 115, 155, 158, 162,205,227 m

Behaviour organisation, 207, 213, 217 responses, 12, 268 . schools, 33 sub-system, 100 ,,_ . Boundary between sub-systems, 146 client and construction process, 77 with environment, 38 Boundary control, 152 objective, 157 on LRA, 264 Bounded rationality, 217 BPF system, 210, 229 Business Process Re-engineering, 33, 44 Brief, 91, 98 competing factors, 98 conflict, 61 +

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development of, 116, 166 feedback, 84, 168 sufficiency, 61, 77 transmission, 166 uncertainty, 6 1 Bureaucracies, 33 L

Change conditions for, 19 project, 77, 102 Civil engineering, 4, 22, 141 Clients, 87 attributes, 107 environment, 7 1, 9 1 integration, 77, 165, 222, 267 management of projects, 10 objectives, 98, 102, 107 corporate, 90 establishment of, 165 public, 72, 92 variety, 11 organisation, 11, 88, 105, 107 effect on managing activities, 147, 155, 159, 162, 165 profiles, 93 range of expertise, 240 role, 104 variety, 11 Commissioning, 169 Competitive tendering, 230, 240 Complexity, 15, 83, 200 Conflict between firms and projects, 9

Index

in the project management process, 7 objectives, 64, 102 within the brief, 64 Construction management, 3, 80, 190, 233 Construction process model, 245 system, 38 Contingency theory, 40 strategic, 42 Contractor appointment, 240 integration, 224, 230 matrix structure, 8 relationship with design team, 169, 230 Contracts, 213 standard forms, 11, 161, 169 Control loops, 258, 266 Culture, 128, 200, 204 Decisions, 5, 12, 13 . client, 105 feedback, 83, 102, 147 key, 146, 169, 214 on LRA, 261 objectives, 5 operational, 147, 169, 214 on LRA, 261 points, 121, 146, 214 on LRA, 261 primary, 145, 169, 214 on LRA, 261 process, 121 sub-system, 21 1 Design-and-build, 3, 7, 11, 126, 161, 234, 238 integration, 25, 126, 236 negentrophy, 79 organisation matrix, 240 Design team integration, 225 Differentiation, 3, 41, 120 definition, 61, 117

determinants, 150 on dRA, 261,265 in practice, 123 Empowerment, 183, 191 Entropy, 72 Environment, 66, 120 client, 71, 97 definition, 38 differentiation, 41, 80 institutional, 76, 81 protected niche, 79 task, 76 uncertainty, 102, 145 Environmental forces action of, 71 at start of project, 97 classification, 68 direct, 73 indirect, 73 quantification, 77 non-technical, 69 technical, 69 Equifinality, 65 Feedback, 83 decision points, 83, 102, 147 managing system, 152, 168 negative, 84 positive, 84 Fees, 24 Firms, 8, 80,112 objectives, 9 First World War, 20 General Systems Theory, 38 Governance structure, 213 Groupthink, 118 Industrial revolution, 19 Information, 137 Information technology, 128 Innovation, 10, 21, 41 Input, 100

Index

Institution theory, 43 Management, 3 Integrating mechanism, 105 classical approach, 32 contingency theory, 41 construction project, 6, 185 range, 115 definition, 5, 24 uncertainty, 74 executive, 226, 240 Integration, 3, 41, 80, 120, 213 non-executive, 225, 240 client, 74, 165, 222, 267 objectives, 9, 64 contractor, 224, 230 firms, 112 design team, 224 general, 7 in practice, 124 matrix, 8, 114 interdependency 'principles o f , 32, 62 pooled, 119 scientific, 32 reciprocal, 119 system, 121, 155, 213, 227 sequential, 119 techniques, 126 meeting, 158 temporary structures, 11, 79 on LRA, 266 Management contracting, 3, 232 tasks, 168 integration, 126, 232 uncertainty, 74 organisation matrix, 240 Interdependency, 15, 83, 112, 120, 179 Matrix symbols, 263 definition, 82 Middle ages, 18 integration, 119 Mintzberg's classification, 45, 93, on LRA, 261,265 191 pooled, 119 Multi-disciplinary practices ,reciprocal, 82, 119, 157 integration, 124, 224 sequential, 81, 119, 157 responsibility, 163, 227 Joint ventures, 134 Key personnel, 124, 171 Leadership, 135, 182, 1.94 ., qualities, 196, 207 research models, 196 styles, 202 Linear Responsibility Analysis (LRA), 256 Linear Responsibility Chart (LRC), 254 . Manager construction, 7 contract, 7 design, 7 project, 6, 24, 41, 107, 226

Negentropy, 79 Negotiated tenders, 11, 240 integration, 25, 232 organisation matrix, 240 Objectives, 38, 83, 213, 244 clients, 61, 97, 102, 107 corporate, 90 establishment of, 165 public, 92 variety, 11 conflicting, 64, 102 decisions, 5 firms, 9 multiple, 102 project management, 9 systems, 39 Opportunism, 131, 217

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288

Index

Organisation, 3, 12 Post-war, 21 Power,54, 103, 176 analysing, 5, 251 in project management, 185 behaviour, 207 in projects, 187 clients, 11, 88, 104, 107 sources, 178 effect on managing activities, 155, structures, 33 159, 162, 165 Production costs, 216 complexity, 83 Professional institutions, 3, 20, 80 construction project definition, 4 Professions, 2, 8 change, 79 evolution, 18 evolution, 20 metaphors, 96 ' Professional organisation, 16, 45, 48 model, 139 patterns, 21 1 Project conventional, 223, 238 change, 75, 102 definition, 1 conception, 141 feedback, 83 co-ordinator, 91, 93, 104 culture, 204 disposal, 169 design of, 152, 165, 253 inception, 144 criteria, 254 information, 29, 136, 167 techniques, 254 manager, 6, 24, 105, 192, 226 uncertainty, 154 outcome, 209,269 effectiveness, 244 evaluation, 169, 268 hierarchies, 63 feedback, 83 informal, 12, 33, 159, 169 functions of project management, initiatives, 24 164 matrix, 240 model, 141 of project team, 230, 240 performance, 121, 188 patterns, 10 programme, 166 realisation, 144 reform, 24 responsibility, 162, 226 theory, 16, 213 Organisational economics, 51 tasks, 168 Output, 9 Y teams, 122 Project manager, 6, 169 Oversight direct, 159 authority, 105, 205 on LRA, 264 contingency theory, 168 general, 159 evolution of, 24 on LRA 263 executive, 226 leadership, 202 relationship with client, 114 Partnering, 130, 161, 190 Patronage, 188 Plans of work, 102 Recommendation, 155 Politics on LRA, 263 in organisations, 180 Resource dependency model, 42 Postmodernism, 43

Index

Second World War, 21 Sentience, 118 on LRA, 261 Separate trades contracting, 233, 240 Serial tendering, 231, 240 Socio-technical approach, 35 Soft systems methodology, 97 Strategic contingency, 42 Subcontractors, 2, 8, 11, 56 management contracting, 232 nominated, 230 relationship to project management, 172,230 Systems adaptive, 38, 79 boundary, 75 classification, 62 closed, 38 construction process, 39 growth, 80 hierarchy, 63 maintenance, 152, 158 on LRA, 264 ,managing, 151, 153, 155, 227 feedback, 261 on LRA, 258,265 monitoring, 152, 158 on LRA, 264 objectives, 39 L

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open, 38, 99 operating, 151, 153, 227 on LRA, 258 theory, 38, 213 relevance, 29 Task sub-systems, 149 integration, 169 on LRA, 258 Teamthink, 118 Techniques, 12, 29, 60, 101 for organisational design, 254 management, 136 Technology, 12, 101, 151 Trade-off, 251 Transaction cost economics, 40, 51, 127, 131,211 Transformation, 99 TREND, 254 Trust, 125, 132 Two-stage tendering, 11, 230, 240 Uncertainty, 11, 15, 83 contingency theory, 41 effect on brief, 64 effect on integration, 75 effect on organisation design, 153 environment, 104, 145