Advanced Construction Project Management
Description
Advanced Construction Project Management is a comprehensive resource that covers the myriad aspects of implementing a megaproject from a contractor's perspective. With many years' experience of managing construction megaprojects, the author provides an in-depth exploration of the structure, dynamics and management of these demanding projects. In addition, the book gives all stakeholders a clear understanding of the complexity of megaprojects and offers contractors the insight and essential tools needed for achieving results.
As the trend to plan and implement ever-larger projects looks likely to continue into the future, the need for a guide to understand the challenges of managing a megaproject couldn't be greater. Comprehensive in scope, the book explores the theoretical background, economics, complexity, phases, strategic planning, engineering, coordination, and common challenges of megaprojects. The book also provides the tools for managing stakeholder integration. This important book:
* Describes the structure, dynamics and management of megaprojects
* Explores the management activities required and examines the appropriate tools for the management of megaprojects
* Includes tools for stakeholder integration
* Provides an advanced understanding of construction management concepts
Written for managers, project managers and engineers, and cost consultants, Advanced Construction Project Management covers, in one complete volume, the information needed to lead a successful project.
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CHRISTIAN BROCKMANN is Professor for Construction Engineering, Management and Economics at the City University of Applied Sciences, Bremen, in Germany. With over 20 years' experience in the management of major infrastructure projects as a contractor and consultant, Christian was Project Director for the BangNa Expressway in Thailand and the Port Said Tunnels in Egypt, both $2 billion plus projects, and was part of the Owner's Project Management Team for the Qatar Integrated Railway Project, a $40 billion infrastructure programme in the Middle East.
Content
1 Introduction 1
1.1 Let me Start with a Story 3
1.2 Status of Megaprojects 6
1.3 Purpose 8
1.4 Methodological Approach 9
1.5 Readership 11
1.5.1 Managers and Engineers Working for Construction Companies 12
1.5.2 Owners of Megaprojects 12
1.5.3 Designers of Megaprojects 12
1.5.4 Project Managers and Quantity Surveyors Working for the Owner 12
1.5.5 Managers and Engineers of Large Civil Engineering Projects 13
1.5.6 Lecturers and Students 13
1.5.7 Academe 13
1.6 Structure of the Text 13
2 Theoretical Background 17
2.1 Definitions 17
2.2 Cognitive Maps 18
2.3 Descriptive Management Research 19
2.4 Guiding Theories 20
2.4.1 Luhmannian Systems Theory 20
2.4.2 Contingency Theory 21
2.4.3 New Institutional Economics 22
3 Advanced Construction Project Management 25
3.1 Construction 26
3.2 Management 28
4 Characteristics of Megaprojects 33
4.1 Project Typology 34
4.1.1 Conceptualizing Criteria 35
4.1.2 Choice of Dimensions 36
4.1.3 Typical Cases 37
4.1.4 Typology 37
4.2 Complexity of Megaprojects 41
4.2.1 Defining Complexity 42
4.2.2 Construct Dimensions of Complexity 43
4.2.3 Factors of the Construct Dimensions 44
4.2.4 Complexity Development 46
5 International Construction Management 49
5.1 International Construction Joint Ventures 49
5.2 Global Contractors 51
5.3 Goals for International Construction Joint Ventures 53
5.4 Success Factors for Megaprojects 56
5.5 Key Personnel 59
5.6 Expatriate Life 61
6 Megaproject Phases and Activity Groups 63
6.1 Project Idea and Project Development 65
6.2 Design Phases 66
6.3 Market Contacts, Bidding Period, and Contract Negotiations 67
6.3.1 Market Contacts 67
6.3.2 Bidding Period 69
6.3.3 Contract Negotiations 70
6.4 Construction and Maintenance 71
6.4.1 Planning and Procurement 73
6.4.1.1 Task Complexity 73
6.4.1.2 Social Complexity 74
6.4.1.3 Cultural Complexity 75
6.4.1.4 Cognitive Complexity 76
6.4.1.5 Operative Complexity 76
6.4.2 Testing the Construction Technology 76
6.4.2.1 Task Complexity 77
6.4.2.2 Social Complexity 78
6.4.2.3 Cultural Complexity 78
6.4.2.4 Cognitive Complexity 78
6.4.2.5 Operative Complexity 78
6.4.3 Mastering the Construction Technology 79
6.4.3.1 Task Complexity 79
6.4.3.2 Social Complexity 80
6.4.3.3 Cultural Complexity 80
6.4.3.4 Cognitive Complexity 80
6.4.3.5 Operative Complexity 80
6.4.4 Stabilization of all Construction Processes 81
6.4.4.1 Task Complexity 81
6.4.4.2 Social and Cultural Complexity 81
6.4.4.3 Cognitive and Operative Complexity 82
6.4.5 Routine Processes 82
6.4.5.1 Task Complexity 83
6.4.5.2 Social and Cultural Complexity 83
6.4.5.3 Cognitive and Operative Complexity 83
6.4.6 Demobilization of the Project 83
6.4.6.1 Task Complexity 84
6.4.6.2 Social and Cultural Complexities 84
6.4.6.3 Cognitive Complexity 84
6.4.6.4 Operative Complexity 84
6.4.7 Management Roles During Construction 84
6.4.8 The Course of Complexity throughout the Activity Groups 86
6.4.8.1 Task Complexity 88
6.4.8.2 Social Complexity 88
6.4.8.3 Cultural Complexity 88
6.4.8.4 Cognitive Complexity 88
6.4.8.5 Operative Complexity 88
7 Descriptive Megaproject Management Model 89
7.1 Management Functions 90
7.1.1 Complex Engineering Tasks 91
7.1.1.1 Design/Design Management 91
7.1.1.2 Project Management 91
7.1.1.3 Production Planning 91
7.1.1.4 Site Installation 92
7.1.1.5 Construction Management 92
7.1.2 Management Functions 92
7.1.2.1 Planning and Controlling 92
7.1.2.2 Organizing and Staffing 93
7.1.2.3 Directing 93
7.1.3 Meta-functions 93
7.1.3.1 Decision-Making 93
7.1.3.2 Communication 93
7.1.3.3 Coordination 94
7.1.3.4 Learning 94
7.1.4 Basic Functions 94
7.1.4.1 Project Knowledge 94
7.1.4.2 Trust 94
7.1.4.3 Sensemaking 94
7.1.4.4 Commitment 95
7.1.5 Cultural Dimensions 95
7.1.5.1 Power Distance 95
7.1.5.2 Uncertainty Avoidance 95
7.1.5.3 Individualism 96
7.1.5.4 Masculinity 96
7.1.5.5 Long-term Orientation 96
7.1.5.6 Indulgence 96
7.2 Management Functions and Complexity 96
7.2.1 Management Functions and Task Complexity 96
7.2.2 Management Functions and Social Complexity 98
7.2.3 Cultural Dimensions and Cultural Complexity 98
7.2.4 Management Functions and Cognitive Complexity 99
7.2.5 Management Functions and Operative Complexity 101
7.3 Combining Management and Complexity 102
8 Engineering Management 105
8.1 Design and Design Management 105
8.1.1 Design Management 105
8.1.2 Design 109
8.2 Project Management 111
8.2.1 Integration Management 112
8.2.2 Scope Management 113
8.2.3 Time Management 113
8.2.4 Cost Management 114
8.2.5 Quality Management 115
8.2.6 Human Resource Management 116
8.2.7 Communication Management 117
8.2.8 Risk Management 118
8.2.9 Procurement Management 120
8.2.10 Stakeholder Management 121
8.2.11 Health, Safety, and Environmental Management 123
8.2.12 Contract Management 123
8.3 Production Planning 125
8.4 Site Installation 129
8.5 Construction 135
9 Management Functions 139
9.1 Planning 141
9.1.1 Analysis 143
9.1.2 Developing New Plans 143
9.1.3 Analytical Framework for Planning 144
9.1.4 Planning System for Megaprojects 145
9.1.4.1 Corporate Governance Plan 146
9.1.4.2 Legal Affairs Plans 146
9.1.4.3 Project and Quality Management Plans 146
9.1.4.4 Codification Management Plan 147
9.1.4.5 Document Management Plan 147
9.1.4.6 Schedule and Cost Management Plans 148
9.1.4.7 Change Management Plan 148
9.1.4.8 Risk Management Plan 148
9.1.4.9 Communication and Reporting Management Plans 148
9.1.4.10 Stakeholder Management Plan 149
9.1.4.11 Configuration Management Plan 149
9.1.4.12 HSE Management Plan 149
9.1.4.13 Design Management and Overall Design Requirements Plan 149
9.1.4.14 Technical Interface and EIA Management Plans 149
9.1.4.15 Testing Procedures, Commissioning, and Operations/Inspection Plans 149
9.1.4.16 Construction, Logistics, and Traffic Management Plans 150
9.1.4.17 Commercial, Procurement, Contract, Financing, Controlling, and Tax/Insurance Management Plans 150
9.1.4.18 Administration Management Plans 150
9.2 Controlling 150
9.3 Organizing 155
9.3.1 Organizational Structure 157
9.3.2 Process Organization 161
9.3.3 Organizational Rules 162
9.4 Directing 163
9.5 Staffing 167
10 Meta-Functions 171
10.1 Decision-Making 171
10.2 Communication 177
10.2.1 Megaproject Communication 178
10.2.2 Communication Models 178
10.2.2.1 Dialog-Based Model by Watzlawick 179
10.2.2.2 Encoder/Decoder Model by Shannon and Weaver 179
10.2.2.3 Four-Aspect Model by Schulz von Thun 182
10.2.3 Communication Methods 182
10.2.4 Communication Organization 185
10.3 Coordination 188
10.3.1 Coordination Methods 189
10.3.2 Fragmented Supply Chain 191
10.4 Learning 193
11 Basic Functions 199
11.1 Project Knowledge 199
11.2 Trust 202
11.3 Sensemaking 206
11.4 Commitment 209
12 Cultural Management 215
13 Innovation in Construction Megaprojects 223
13.1 Aspects of Innovation 225
13.1.1 Methodology and Case Study Choice 227
13.1.2 Innovations and Trajectories 230
13.1.2.1 Product Innovations 231
13.1.2.2 Construction Technology Innovations 234
13.1.2.3 Innovations Within the Technical Organization 235
13.1.2.4 InnovationsWithin the Management Organization 236
13.1.2.5 Innovations Within the Legal Organization 237
13.1.3 Conclusions and Implications 237
13.1.3.1 Megaprojects are Innovative 237
13.1.3.2 Strings of Incremental Innovations 238
13.1.3.3 Innovation in Megaprojects is Systemic 238
13.1.3.4 Innovation is not Necessarily Beneficial to All Parties 238
13.1.3.5 Contractors Can Manage Single-Project Innovations in Megaprojects into Good Currency 238
13.1.3.6 Innovation Champions Act on All Hierarchical Levels 238
13.2 The Innovation Process 239
13.2.1 Introduction 239
13.2.2 Approaches to Generate Innovation and Definition 240
13.2.3 Innovation Process Models and Barriers to Innovation 241
13.2.4 Data Summary 242
13.2.5 The General Model of the Innovation Process 244
13.2.5.1 Project Planning 244
13.2.5.2 Nine Partially Overlapping Process Groups 245
13.2.6 Product and Process Innovations for the BangNa Expressway 248
13.2.7 Process Innovations for the Great Belt Tunnel 249
13.2.8 Conclusions 251
13.3 Progress Functions 252
13.3.1 Theory and Terminology 253
13.3.2 Literature Review 255
13.3.3 Research 257
13.3.4 Data Analysis and Discussion 262
13.3.5 Discussion and Conclusion 264
14 All in All, What Does It Mean? 267
References 269
Index 279
1
Introduction
Construction megaprojects capture our imagination. They are the most visible and most lasting products of human ingenuity. Humankind has erected iconic buildings and statues across time in all parts of the world. Most of them were megaprojects at the time of construction. Although the examples shown in Figure 1.1 are in black and white, most readers will be able to recognize them. The chosen examples include monuments from the East to the West:
- Sydney Opera House (Sydney, Australia, 1973) is the best-known building in Australia
- Akashi Kaikyo Bridge (Kobe, Japan, 1998) is the longest spanning bridge in the world
- Oriental Pearl Tower (Shanghai, China, 1994) has a unique shape and is 468 m high
- Taj Mahal (Agra, India, 1653) is a masterpiece of Muslim architecture
- Burj Khalifa (Dubai, UAE, 2008) is the tallest building in the world
- Kremlin (Moscow, Russia, 1561); the St. Basil's Cathedral is a fine example of Russian Orthodox architecture
- Pyramids of Giza (Cairo, Egypt, 2560 BCE) are some of the oldest and most massive structures in the world
- Hagia Sophia (Istanbul, Turkey, 537) was built as a Byzantine church, and remodeled as a mosque after 1453
- Eiffel Tower (Paris, France, 1889) is a representative structure built with wrought iron
- The Statue of Liberty (New York, USA, 1786) is a symbol of and dedication to liberty
- Machu Picchu (Peru, fifteenth century) is a city built by the Incas
- The Moai statues (Easter Island, Chile, after 1200) are spiritual statues
The list is anything but exhaustive since I have omitted civil structures such as tunnels (Gotthard Base Tunnel, Switzerland), dams (Hoover Dam, USA; Three Gorges Dam, China), or roads (New Silk Road, Asia, Africa, and Europe) because it is not easy to depict such structures. No products from Airbus, Apple, Gucci, JP Morgan Chase, or Porsche can boast of the same imaginative power that these structures emanate.
Awe and attraction are not the only feelings we develop toward megaprojects. Many of them have met with outright rejection during planning and execution. Not everyone appreciates spending billions for a single project, and not everyone makes use of the same structures. Some people might enjoy a football match at the Wembley Stadium (completed 2007), while others prefer a visit to the Oslo Opera House (completed 2008). Nobody likes a nuclear power plant in the backyard or a highway in front of the house. All megaprojects have positive and negative aspects; individuals can choose their own perspectives. It is not the task of civil engineers to make decisions for the implementation of megaprojects; this, in many countries, is a democratic procedure. However, each civil engineer must decide for himself whether to engage in a megaproject or not; this is his civil duty.
Figure 1.1 The world in iconic buildings and statues.
A case in point is the Elbphilharmonie in Hamburg designed by Swiss architects Herzog and de Meuron (Figure 1.2). Its scope changed considerably over time, construction costs increased more than tenfold, and construction time exceeded the initial plan by years. Reports in German and international publications were scathing during construction. Immediately after opening, journalists heaped praise over praise on the building. Founded on an historic storehouse in the port of Hamburg, the peaks of its roof soar into the sky. Hamburg became a wealthy city through trade, and its music transcends the borders of our world (Brahms was born in Hamburg). We can read this and much more into iconic buildings. The number of visitors at the Elbphilharmonie in 2017 equaled that of the Sistine Chapel in the Vatican in the same year. The experience is two-sided: not all criticisms of megaprojects turn to praise. However, many megaprojects are not only the dreams of civil engineers but of humankind.
Literature on megaprojects often concentrates on the front-end, stressing how important governance structures are. Construction itself seems a mere nuisance. This turns the reality upside down and I will call it the fallacy of retrospectivity, because authors often interpret earlier events based on information that becomes available much later. Construction without a plan for the front-end is not advisable. Planning without construction might be fun but not worth the expenditure. We should try to avoid decisive mistakes during planning and construction.
Planning and construction are like the two blades of scissors: they work together. One without the other is useless, and both are equally important. Overestimating the front-end is a serious mistake; underestimating it will also prove catastrophic in megaprojects. Given the abundant front-end literature, this book is for those who can hold a shovel and grasp complex ideas at the same time - people with a strong foundation in construction and ideas soaring into the skies just like the roof of the Elbphilharmonie.
Figure 1.2 The Elbphilharmonie in Hamburg.
Source: sirius3001/123RF.
1.1 Let me Start with a Story
Imagine you meet Choi from South Korea at an international contractors' conference. He was the project director of the Burj Khalifa, the tallest building in the world with a height of 828 m. You see him discussing something with an American, Alex, who was the former project manager for a petrochemical plant in Taiwan. Also present is Khaled, responsible for the construction of Masdar City, projected to achieve zero carbon emissions while housing a population of 50 000. Khaled is from Syria and has worked in the United Arab Emirates for the past 15 years. Since you are standing next to them, you cannot help following their discussion. As it continues, you become more and more intrigued.
ALEX:
.so awfully proud when we opened the plant on time; it was pure exultation.CHOI (LAUGHING):
Yeah, yeah, I remember our celebration when we reached 828 m, it filled us with pride and we were cheering. After all the headaches we faced over the years, we finally finished our task. I guess it doesn't matter whether you break a record in height or in length or no record at all. The pride comes more from all the difficulties we had to overcome.ALEX:
Of course, I also remember all those sleepless nights, especially at the beginning when everything was chaos. It was a hard fight, finding solutions for all the technical and the management challenges. All the different stakeholders with all their different goals drove me mad at times. My boss was only concerned about the profit. There was no visit without him asking about profit, from the beginning to the end of the project. I can tell you we had a very tight budget. It was definitely a most demanding time. But man, I tell you, we did it! Yes, we did it!CHOI:
I agree, it was demanding in my case as well. However, sometimes I had the feeling I went bungee jumping every day and my company even paid me well for it; this was the adrenaline pumping from morning to evening. I simply cannot understand people who are bored by their work.KHALED:
I wish I could join your jubilation but I'm stuck in the middle of my project, and some days, I just try to keep my head above the water. I'm fighting all day long to get some structure and routine installed. There are thousands of loose ends, and I have no clear idea where to start and how to proceed. Of course, when my boss comes, I can't show my doubts; in my culture, you can never show weakness. Certainly, I'm never bored; I've reached my limits. To me, this is the bloody mother of all projects.CHOI:
.the adrenaline?KHALED:
.surely keeps pumping. If I would just know that I would somehow reach our goals. This insecurity when making decisions and this ambiguity in so many problems. I sometimes feel like I'm lost in the desert. There is not enough information, no clarity. Everything affects everything else, nothing is straightforward. There are so many iterative steps.ALEX:
I can understand and empathize with you. It does take a lot of patience and perseverance. Choi, do you also remember those endless days when nothing seemed to move?CHOI:
.and some days when I didn't want to leave the bed in the morning, just keep hiding under the blanket.KHALED:
Masdar City is not my first megaproject, of course. I've been involved in so many of them, I can't keep track. In the Middle East, there are so many of them. Yet, every megaproject is so very different. We are always facing new challenges, and there is no one recipe for success.CHOI:
I believe the most important characteristic for the top management is the ability to learn, to learn very quickly.KHALED:
I did not start my project; there was another project director in the beginning. He had a big ego and told everybody about his experience. He...