What is Project Management Triangle ????

Project Management Triangle - An OLD Concept with SCOPE, TIME and COST forming 3 sides of Triangle and Quality at the Centre. All of them being PROJECT CONSTRAINTS...
The Triangle Concept depicted the interdependency of these constraints. i.e scope changes lead to changes in Time, Cost and Quality issues, similar changes in any one constraints affects the others significantly..
Modern Day Project Management have more Project constraints like

• SAFETY - Zero Accident Free Manhours,
• Stakeholder Requirements / Satisfaction,
• Social Responsibilities,
• Legal and Regulatory Requirements,
• Environmental Impacts,
• Skilled Resource Constraints
• Technological Advancements

Hence a present day Project Constraints could only be depicted in the form of a 'n' sided Pyramid based on 'n' Project Constraints under consideration for a given Project with "QUALITY" being the BASE of the PYRAMID.
Well, still if your project constraints falls only in a Project Management Triangle Format then, you have a well defined Project with all other constraints already taken care off or inbuilt.

Minimizing and Preventing Contract Changes...!!!

A good STAKEHOLDER ANALYSIS process results in effective understanding of all stakeholder's requirements, needs, wants and expectations..
Identification, grouping and documentation of the above points results in a Clear Scope which once approved shall minimize unnecessary contract changes in future...!!!

Effective Communication in Project Management Process

When stakeholder analysis itself is not done in projects, then there is no point of discussing any further on the communication aspects in a project environment.
Without stakeholder analysis, we won't be in a position to identify the following :
1. Who are all the stakeholders in the project?
2. What and in which mode the information has to be transferred to these stakeholders?
3. What is the frequency of such reporting systems?
4. Authenticity and correctness of information provided?
5. Timeliness of the reports generated and delivered?
All the above is a must and should be adhered to for effective communications to ensure effective decision making throughout the project cycle.

How to manage large projects??

Project Success requires mainly the following 5 Parameters to be looked into : -
1. Scope Clarity : The more clear the scope and specifications are Lower the Risks (Uncertainties).
2. Realistic Budgets : This is for Cost, Time and Quality related areas. If all the targets agreed and approved are Realistic and Achievable then they form a GOOD YARD stick for performance Measurement.
3. Execution : Skilled and Knowledgeable Work Team with an Attitude for continuous learning and improvement with well documented Execution Procedures in hand.
4. Good MIS : Considering the voluminous transactions occurring in larger projects, a good MIS is a must to track physical progress as well as cost (under various designated cost heads for better monitoring and control).Good MIS reduces Decision Making based on ASSUMPTIONS and rather rely on Sound FACTS!
5.Scope Verification : A good scope verification results in mutual agreement of deliverable by the Client eventually resulting in Formal Acceptance and Contract closure...
If all the above 5 Process are intact ... PROJECT SUCCESS ....!!!

What should a manager do to manage teams or workforce During Recession?

RECOGNIZING people at work by giving due consideration for their SKILLS and TALENT is among the High Rated Motivating Factors at work as per Literature and also in Practice..
DELEGATION of Works results in TRANSFER of OWNERSHIP & ACCOUNTABILITY of the TASKS to the ASSIGNEES, thus enhancing his EFFECTIVENESS of producing RESULTS.
But point to be kept in MIND is that a GOOD LEADER by DELEGATING works doesn't escape from his RESPONSIBILITY on the OUTCOME of his TEAM MEMBER'S performance..
Keeping above points in view ..
RECOGNITION + DELEGATION = MANAGEMENT SUCCESS...!!

Client's Actions to Reduce the Risk of Construction Management

Scope Clarity & Effective BID Evaluation Strategy...!!!

RISK is a result of high amount of Uncertainties Bound in the Project Works.
Considering the fact that CLIENT is the HIGHLY Benefited from any Project and always WORKS in the TOTAL INTEREST of the PROJECT, then only two other factors could reduce the RISK FACTOR of the PROJECT...!
1. SCOPE CLARITY = Scope is the Heart and Soul of the Project hence the better the DEFINITION of SCOPE and SPECIFICATION the lesser confusions, uncertainties and chaos resulting in Project SUCCESS
2. EFFECTIVE BID EVALUATION STRATEGY = A Good Scope clarity alone is meaningless if the Vendor / Contractor selected through Bidding process is not skilled and effective in executing the SCOPE...!!

Working Capital Management Strageies in Construction Projects...???

Minimize Stock and Reduce Cash/ Bank Balance...!!!

Working Capital = Current Assets - Current Liabilities
Current Assets = Stock, Unfinished Goods, Cash / Bank Balances, Outstanding Claims etc.. (What you OWN)
Current Liability = Payment due to Sub Contractor, Vendor balances, etc.. (What you OWE)
A negative Working Capital is a healthy sign in any Construction Project, that is in Simple Terms "Work with others MONEY...!!!"
Its very simple said than done...

A Good Procurement Plan and Fund Management Plan could aids in Timely Procurement & Utilization of Materials as well as Funds thus reducing Working Capital...!!!

Strategies for Construction Cost Control ...!!!

(Actual Spent) + (ETC Qty x ETC Rate) + ETC Overheads within Revised Cost Baseline...!!!

Yes.. any strategies to Control Cost should fall within the below Constraints...!!!
Actual Spent + (ETC Qty x ETC Rate) + ETC Overheads <= Revised Cost Baseline Actual Spent = From Summation of all cost heads in ur MIS
ETC Qty = Revised BOQ Qty - Actual Executed Qty
ETC Rate = Labour + Material + Plant Rate
(adjusted to actual Productivity Rates, Market Rates, Escalations and Wastages)
ETC Direct Cost = ETC Qty x ETC Rate
ETC Overheads = Staff + Temp Structure + Water/Power + Stationary + Insurance + Financing Costs + Sundries + Misc.
Revised Cost Baseline = Latest Approved Project Budget
Revised Project Estimate = Actual Spent + ETC Direct Cost + ETC Overheads
Any decision taken in the project should be towards minimizing all the above cost components contributing to Revised Project Estimates, such that the above referred constraints always holds good...
i.e Revised Project Estimate <= Revised Cost Baseline There is no Shortcut to Cost Control, BUT only Skill and Experience to see the Complete Picture referred above can result in successful Cost Control...!!!

By saying REVISED COST BASELINE, I am trying to stress on the FACT that no PROJECT is free from SCOPE CHANGES in due course.
Hence any Approved SCOPE Change should be simultaneously accompanied with REBASELINING OF COST which is nothing but REVISED COST BASELINE...!!!
Once there is an APPROVED SCOPE CHANGE, the ORIGINAL COST BASELINE is IMMATERIAL and OUTDATED.
If there is no approved scope change then
REVISED COST BASELINE = ORIGINAL COST BASELINE...!!

Techniques to minimize cost overrun in Construction..!!

Realistic COST BASELINE...!!

First step to avoid Cost Overruns is by arriving and adhering to a Realistic COST BASELINE in the Project...
Most of the Time it does occur that we become over Optimistic and set Unrealistic COST BASELINES to get a token of appreciation / recognition from Top Management.
This is a Contagious disease affecting Project health and it so happens that irrespective of performance of the project the same Cost Baselines are adhered too.
That is at any stage of review, Estimates to Complete (ETC) Costs are back calculated to fit into the Cost Baselines rather than Highlighting the TRUE Picture
Its only during, Testing & Commissioning Stage that this Cost Overruns normally pops out, by which its too late to recover...!!

Tips: How to become successful Project Manager ?

Leadership Qualities ...!!!

Project Management Skills are all about steering the Project Management TEAM towards achieving the set Objectives and Success Criteria to get the Deliverables Acceptable by Client inorder to declare the Project as Successfully Completed...
Each and every stage of the PROJECT involves TEAMWORK and is NEVER a ONE MAN SHOW!!!..
And whenever SUCCESS from TEAMWORK is required, it is HIGHLY MANDATORY for a Project Manager to have GOOD LEADERSHIP QUALITIES in him...!!!

How to select the right Construction Project Delivery System?

Contract Management Team...!!!

All Projects are MADE of CONTRACTS...!!!
Irrespective of the Delivery System, a Good Contract Management Team is a must to Monitor and Control if the Deliverables are in line with the Requirements set for the Project.
Whether its from Client side or Contractor side, a Good Contract Management Team is a Must.
It is better not to overload such contract management teams with roles and responsibilities which may dilute their effectiveness in managing the CONTRACT.
Thus it is a true fact that whoever has a CONTRACT MANAGEMENT TEAM in his side has better chances of exhibiting their responsibilities and dealing with their liabilities in a Project Smoothly...!!!

What data should be maintained on a construction site to win claims in arbitration?

ISSUE LOGS refers to a document covering the following details updated during any ISSUES/DISPUTES raised between two parties in a CONTRACT and ISSUES analyzed on a Priority Basis:

• Date of Issue
• Between Which Parties
• Issue Title / Description
• Root Cause of Issue
• Outcomes
• Corrective Action / Preventive Action to be Taken
• Effect on Set Project Constraints (Priority Weightage)
• Reference to related Records / Correspondences
• Claim Amount with Break Up Details (If any)
• Acknowledgement from the other Party with Remarks

Project Management is misunderstood as GENERAL MANAGEMENT in many cases..!!

Considering the Dynamics of Construction Projects and also considering that various factors listed below affects the Estimation of such projects, it is a FUTILE EFFORT to search a Best Estimation SOftware to use in your PROJECTS..

• Market Trend
• Political scenario
• Inflation
• Escalation
• Contract Conditions
• Productivity Rate
• Incentives
• Overheads
• Profit Norms
• Unit Consumption
• Working Conditions
• Sequence of Operations
• Criticality of Work
• Quality Aspects
• Safety Aspects...... Never Ending Lists

Hence it is advisable to BUILD on your OWN Templates for Estimating Repeatitive and Standard Natured Works within your OWN ORGANIZATION as the same are more reliable rather following or depending on Some Softwares and adapting towards it....!!!

The Misconceptions of Project Management...!!!

Project Management is GENERAL MANAGEMENT...!!!

Project Management is misunderstood as GENERAL MANAGEMENT in many cases..!!
WHICH IS WRONG!!!
Eg. General Management deals with managing routine administrative operations of a HOTEL or CINEMA COMPLEX or HOSPITAL etc.
Whereas PROJECT MANAGEMENT is all about handling the UNIQUENESS and TEMPORARY Nature of the Task in HAND within SET CONSTRAINTS.
Though General Management skills are offcourse required for good Project Management to occur, General Managers can't be called Project Managers or made to handle PROJECTS without necessary skills, exposure and experience in handling PROJECTS and PM Processes.
PM Field is more challenging considering the Voluminous Flow of Money in delivering Products which are UNIQUE in nature..!!

Vital Parameters in Construction Project Scheduling...?

Logical Sequencing
Irrespective of all other Parameters available , I put higher emphasis on to LOGICAL SEQUENCING of ACTIVITIES in preparing a Construction Project Schedule.
There are various other parameters like..:
1. List of Activities : Any skilled person should be able to list down. Too many or less numbers of activities?
2. Duration of Activities: Methods available but more theoretical only..
But all of the above parameters are meaningless if the Logical Sequencing is WRONG..!!

How to manage a Project...???

Every person add different dimensions to attributes of Project Success - like time, cost, scope, quality, safety etc. Ultimately all of these are CONSTRAINTS to be understood and worked within. Hence Managing Constraints are the first Step to success.
Next is what we call RISKS (Known Unknown + Unknown Unknown) or other called Uncertainties, Threats, Opportunities.
Every decision in a project is not 100% PERFECT. This is becos they rely on certain ASSUMPTIONS made during such Decisions Making events.
If such Assumptions are VALID then they turn out to be OPPORTUNITIES to be Exploited and if they turn out to be INVALID then it poses a THREAT.
Beware RISK = OPPORTUNITIES + THREAT.
Hence we have to continuously VALIDATE our ASSUMPTIONS..
Hence, "Manage Constraints + Validate Assumptions = Project Success ...!!!"