Commercial Management of Projects: Defining the Discipline


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The risks associated with making mistakes in this part of the process are great, since their impact will be felt across the project development process and in the final project results. For more information, see links below in the Additioanl Resources section.

Once a design team has been agreed upon and assembled, the owner needs to coordinate and manage the project's design phases. Design management requires the oversight of schedules and budgets; review of key submissions and deliverables for compliance with program goals and design objectives; verification of stakeholder input for inclusion; verification of construction phase functional testing requirements; and appropriate application of the owner's design standards and criteria. This stage should also define the criteria for assessing quality measurement to ensure the project's success.

Determining appropriate goals and objectives at the beginning of the process, during a visioning session, and measuring their implementation over the life cycle of building and construction has been proven to increase overall building quality and reduce project costs and timing to delivery. There are many approaches to achieve successful project design and construction. The Delivery Methods are driven by the project's scope, budget, and schedule.

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Corporate governance and shareholder value

The selection of a delivery method will in turn influence the team composition, schedule, budget, and management plans to be followed throughout the process. Project scope is the work that must be performed to meet a client's program goals for space, function, features, impact, and level of quality.

What is CONTRACT MANAGEMENT? What does CONTRACT MANAGEMENT mean?

Scope management sets the boundaries for the project and is the foundation on which the other project elements are built. From the beginning it helps identify the work tasks and their requirements for completion.

Project Start-Up and Integration

Effective scope management requires accurate definition of a client's requirements in the Planning and Development stage and a systematic process for monitoring and managing all the factors that may impact or change the program requirements throughout the project design and construction phases through delivery of the finished project. A Project Management Plan PMP documents key management and oversight tasks and is updated throughout the project as changes occur.

The plan includes definition of an owner's program goals, technical requirements, schedules, resources, budgets, and management programs. It also provides a vehicle for including efficiencies in the design and construction phases of all buildings. It will also serve as the basis for completed construction documents and outline the commissioning plan for finished execution.

Building Information Modeling BIM is the process of generating and managing building data during its life cycle Typically it uses three-dimensional, real-time, dynamic building modeling software to increase productivity in building design and construction. The process produces the Building Information Model also abbreviated BIM , which encompasses building geometry, spatial relationships, geographic information, and the quantities and properties of building components. Utilizing BIM has the potential to save project time and cost and increase overall productivity of construction and delivery of building projects with less rework, design, and construction errors.

Slutzky, :. BIM single data entry into one model avoids the opportunity for inconsistency and error of repeated input of identical data in multiple media. Data once entered or altered is available in the single current model available to all. BIM three dimensionality and software identify physical conflicts between elements reducing significant construction delay, and extraordinary additional expense.

Where modifications are suggested, the impact of the proposed changes are immediately apparent, subject to evaluation and reconsideration. Confidence in shop drawing and fabrication accuracy is improved by BIM because the model can provide construction details and fabrication information. More materials can be fabricated more economically off site under optimal conditions due to the confidence in the accuracy of the fabrication. BIM can link information to quantify materials, size and area estimates, productivity, material costs and related cost information.

Commercial management theory and practice

Overall, the BIM digital model becomes a rehearsal of construction and can help identify conflicts and their resolution before actual construction dollars are spent. This stage should include all of the components involved with construction and documentation for the project. The team members involved in this phase will be responsible for Requests for Information RFIs , Change order management, conflict resolution, inspections, submittal reviews, adhering to schedules and coordinating timely payments.

Oversight in this area is critical because it has significant impact on a project's total cost. Budget Establishment - Initial budgets are established by the owner based on the owner's required program and the design, as well as realistic estimate of the cost to execute the related work in current market conditions.

Commercial breakdown

The budget should anticipate all program requirements from planning, programming and design to bidding, construction, turnover, and post occupancy. Once established and agreed, the initial project budget should not change, unless amended by approved changes. Budget Management - During the preconstruction process, the details of the program and design are developed.

The design process is managed by the team with the ultimate goal of achieving the owner's program requirements within the budget and timeframe needed. When the design or program starts to grow or "creep", the project team must work together to bring the design and estimated cost back in line with the established budget. Value analysis, alternate procurement strategies, cost-benefit analysis, program adaptation and life-cycle costing are a just a few examples of the tools available to the team to help manage design to budget.

Project Managment

Cost Control - Cost control is a process requiring continual and systematic cost management as well as monitoring to compare actual costs incurred against targeted budget line item numbers. Key elements to controlling cost are rooted in, among others:. A project schedule establishes a timeline for delivering the project and most importantly, the project activities and their respective inter-relationships. Avoiding missing deadlines for delivery of key project components is a key objective of schedule management.

Comprehensive project schedules will identify all of the project's stages, phases, and activities assigned to each team member mapping them to a timeline that measures key dates that are used to keep track of work progress. Schedule management interfaces directly with scope, cost, and quality optimization and team member roles and activities must be defined, coordinated, and continually monitored. It is the goal of every project manager to look for efficiencies in all of these areas as a project progresses. Gino Wickman. Darren Hardy. Richard N.

Commercial Management of Projects: Defining the Discipline / Edition 1

Amy C. Josh Kaufman. Gene Kim. Stephen A. General Stanley A. Grant Cardone. Patrick M. Ben Horowitz.


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Commercial Management of Projects: Defining the Discipline Commercial Management of Projects: Defining the Discipline
Commercial Management of Projects: Defining the Discipline Commercial Management of Projects: Defining the Discipline
Commercial Management of Projects: Defining the Discipline Commercial Management of Projects: Defining the Discipline
Commercial Management of Projects: Defining the Discipline Commercial Management of Projects: Defining the Discipline
Commercial Management of Projects: Defining the Discipline Commercial Management of Projects: Defining the Discipline

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