Project Management in Construction

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Project Management

in Construction

- , .

Fourth Edition

Anthony

Walker

BBS, MSc, PhD, FRICS

Emeritus Professor of Real Estate and Construction

University of Hong Kong

Blackwell

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1

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

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Systems concepts

Action of environmental forces t

Summary /' 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

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Contents vii

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 211

Introduction 21 1

Project management theory and transaction cost economics 212

The components of project organisation structures 22 1

Client/project team integration 22 1

Design team organisation 222

Integration of the construction team 229

An illustration of a transaction cost explanation 23 8

Organisation matrix 239

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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 274

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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 a ,,_

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.

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 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

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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, 21 3 Groupthink, 1 18 Industrial revolution, 19 Information, 137 Information technology, 128 Innovation, 10, 21, 41 Input, 100

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Institution theory, 43 Integrating mechanism, 105 contingency theory, 41 range, 115 uncertainty, 74 Integration, 3, 41, 80, 120, 213 client, 74, 165, 222, 267 contractor, 224, 230 design team, 224 in practice, 124 interdependency pooled, 119 reciprocal, 11 9 sequential, 119 meeting, 158 on LRA, 266 tasks, 168 uncertainty, 74 Interdependency, 15, 83, 112, 120, 179 definition, 82 integration, 11 9 on LRA, 261,265 pooled, 119 ,reciprocal, 82, 119, 157 sequential, 81, 119, 157 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 Management, 3 classical approach, 32 construction project, 6, 185 definition, 5, 24 executive, 226, 240 non-executive, 225, 240 objectives, 9, 64 firms, 112 general, 7 matrix, 8, 114 'principles o f , 32, 62 scientific, 32 system, 121, 155, 213, 227 techniques, 126 temporary structures, 11, 79 Management contracting, 3, 232 integration, 126, 232 organisation matrix, 240 Matrix symbols, 263 Middle ages, 18 Mintzberg's classification, 45, 93, 191 Multi-disciplinary practices integration, 124, 224 responsibility, 163, 227 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, 13 1, 217

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288 Index

Organisation, 3, 12 analysing, 5, 251 behaviour, 207

clients, 11, 88, 104, 107

effect on managing activities, 155, 159, 162, 165 complexity, 83 construction project definition, 4 evolution, 18 metaphors, 96 ' model, 139 patterns, 21 1 conventional, 223, 238 definition, 1 feedback, 83 culture, 204 design of, 152, 165, 253 criteria, 254 techniques, 254 uncertainty, 154 effectiveness, 244 hierarchies, 63 informal, 12, 33, 159, 169 initiatives, 24 matrix, 240 of project team, 230, 240 patterns, 10 reform, 24 theory, 16, 213 Organisational economics, 51 Output, 9 Y Oversight direct, 159 on LRA, 264 general, 159 on LRA 263 Partnering, 130, 161, 190 Patronage, 188 Plans of work, 102 Politics in organisations, 180 Postmodernism, 43 Post-war, 21 Power,54, 103, 176 in project management, 185 in projects, 187 sources, 178 structures, 33 Production costs, 216 Professional institutions, 3, 20, 80 Professions, 2, 8 change, 79 evolution, 20 Professional organisation, 16, 45, 48 Project change, 75, 102 conception, 141 co-ordinator, 91, 93, 104 disposal, 169 inception, 144 information, 29, 136, 167 manager, 6, 24, 105, 192, 226 outcome, 209,269 evaluation, 169, 268 feedback, 83

functions of project management, 164 model, 141 performance, 121, 188 programme, 166 realisation, 144 responsibility, 162, 226 tasks, 168 teams, 122 Project manager, 6, 169 authority, 105, 205 contingency theory, 168 evolution of, 24 executive, 226 leadership, 202

relationship with client, 114

Recommendation, 155 on LRA, 263

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Second World War, 21 Sentience, 1 18

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 L, objectives, 39 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, 1 18 Techniques, 12, 29, 60, 101

for organisational design, 254 -

management, 136 Technology, 12, 101, 151 Trade-off, 251

Transaction cost economics, 40, 5 1, 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