Code of Practice for Project Management for Construction and Development
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Content
Foreword xi
Acknowledgements xiii
Working group for the revision of the Code of Practice for Project Management - Fifth Edition xv
List of tables xvii
List of figures xix
List of diagrams - Briefing Notes xxi
Introduction 1
Project management 1
Definitions 1
Characteristics of construction projects 2
Characteristics of construction project management 3
Adding value 4
Scope of project management 4
Project lifecycle 4
CHAPTER 1 Inception 11
Stage checklist 11
Stage process and outcomes 11
The client 12
Client obligations and responsibilities 12
Client project objectives 12
Client engagement: Internal team 12
Project manager 13
Project manager's objectives 13
Project manager's duties 14
Project manager's appointment 14
Project mandate 14
Environmental mandate 16
BIM mandate 17
BN 1.01 Leadership in project management 19
BN 1.02 Typical terms of engagement: Project manager 21
BN 1.03 Typical project mandate outline 26
BN 1.04 Project handbook 27
BN 1.05 Government Soft Landings 45
CHAPTER 2 Feasibility 47
Stage checklist 47
Stage process and outcomes 47
Client's objectives 48
Outline project brief 48
Feasibility studies 48
Energy in a building environment 51
Lifecycle costing and sustainability 52
Sustainability in the built environment 52
Towards sustainable development 53
Responsible sustainable development 54
Achieving sustainable development 55
Site selection and acquisition 56
Project brief 58
Design brief 58
Funding and investment appraisal 60
Development planning and control 60
Stakeholder identification 61
Business case 61
Approval to proceed 61
BIM brief 62
BN 2.01 Key sustainability issues 63
BN 2.02 Environmental sustainability assessment methods 67
BN 2.03 Guidance on environmental impact assessment 72
BN 2.04 Site investigation 79
BN 2.05 Business case development 82
CHAPTER 3 Strategy 85
Stage checklist 85
Stage process and outcomes 85
Client's objectives 86
Project governance 86
Strategy outline and development 89
Project organisation and control 90
Project team structure 91
Selecting the project team 91
Project management procedures and systems 92
Information and communication technology 92
Project planning 94
Cost planning and controls 94
Cost control 96
Design management process (managing the design delivery) 97
Risk identification and management 98
Environmental management and controls 98
Environmental statements 98
Contractor's environmental management systems 98
Stakeholder management 99
Quality management 99
Commissioning strategy 100
Selection and appointment of project team consultants 100
Collaborative arrangements 102
Framework arrangements 102
Private public partnership/private finance initiative (PPP/PFI) 102
Procurement strategy 103
Traditional 103
Design and build 104
Management contracting 104
Construction management 104
Hybrid procurement approaches 104
Innovative form of procurement 105
Characteristics of procurement options 106
Procuring the supply chain 106
Responsible sourcing 106
Tender procedure 106
Procurement under EU directives 108
e-Procurement 108
Employer's requirement document 108
Facility management strategy/considerations 109
Project execution plan 109
Checklist for the PEP 110
Essential contents 110
Approval to PEP 111
BIM strategy 111
BN 3.01 Health and safety in construction including CDM guidance 113
BN 3.02 Guidance on value management 121
BN 3.03 Project risk assessment 124
BN 3.04 Information and communication technology 131
BN 3.05 Building information modelling 144
BN 3.06 Project planning 153
BN 3.07 Characteristics of different procurement options 154
BN 3.08 Framework agreements 158
BN 3.09 Procedure for the selection and appointment of consultants 160
BN 3.10 Selection and appointment of contractors 163
BN 3.11 Guidance on EU procurement rules 177
BN 3.12 Project governance 180
BN 3.13 Change management 184
BN 3.14 Strategic collaborative working 187
BN 3.15 PPP/PFI arrangements 193
BN 3.16 Guidance on e-procurement 209
BN 3.17 Design management process 213
CHAPTER 4 Pre-construction 217
Stage checklist 217
Stage process and outcomes 217
Design process 218
Managing the design delivery 218
Project coordination and progress meetings 219
Design team meetings 219
Managing design team activities 219
Statutory consents 221
Planning approval 221
Planning consultants 221
Legislation 222
Timing 222
Negotiations 222
Presentations 222
Refusal 222
Appeal 222
Enforcement powers 222
Other statutory consents 223
Building Regulations 223
Disability Discrimination Act (DDA) 224
Impact of utilities on project planning/scheduling 224
Technical design and production information 224
Value management 226
Contract award 226
Pre-start meeting 226
Agenda items at pre-start meeting 227
Introduction 227
Contract 227
Contractors' matters 227
Resident engineer/clerk of works' matters 228
Consultants' matters 228
Quantity surveyor's matters 228
Communications and procedures 229
Meetings 229
Contractual arrangements 229
Establish site 231
Control and monitoring systems 232
Contractor's working schedule 233
Value engineering (related to construction methods) 233
Management of the supply chain 234
Risk management 235
Payments 235
Benchmarking 236
Change and variation control 236
Dispute resolution 238
BIM strategy 239
BN 4.01 Regular report to client 241
BN 4.02 Dispute resolution methods 243
BN 4.03 Implications of Housing Grants, Construction
and Regeneration Act 1996, Amended 2011 247
BN 4.04 Typical meetings and their objectives 248
CHAPTER 5 Construction 251
Stage checklist 251
Stage process and outcomes 251
Project team duties and responsibilities 252
Client 252
Project manager 252
Design team 253
Quantity surveyor 253
Contractor 253
Construction manager 254
Management contractor 254
Subcontractors and suppliers 254
Other parties 255
Performance monitoring 255
Health, safety and welfare systems 256
Environmental statements 256
Contractor's environmental management systems 257
Compliance with site waste management plan regulations 2008 257
Monitoring of the works 258
Reporting 258
Public liaison and profile 259
Quality management systems 259
Commissioning and production of operation and maintenance manuals 259
Commissioning 259
Operation and maintenance manuals 260
BIM strategy 260
BN 5.01 Performance management plan 261
CHAPTER 6 Testing and commissioning 263
Stage checklist 263
Stage processes and outcomes 263
Project manager's duties and responsibilities 264
Commissioning generally 264
Procurement of commissioning services 264
Smaller projects 264
Larger projects 265
Role of the commissioning contractor 265
The testing and commissioning process and its programming 266
Differences between testing and commissioning 267
Testing 267
Commissioning 268
Performance testing 268
Main tasks to be undertaken 268
Pre-construction 268
Construction and post-construction 270
Seasonal commissioning 270
Commissioning documentation 273
O&M manual (building owner's manual) 273
As-built documentation 274
Health and safety file 274
Occupier's handbook 275
BIM strategy 275
BN 6.01 Contents of the health and safety file 277
BN 6.02 Contents of building owner's manual 280
BN 6.03 Contents of occupier's handbook 283
CHAPTER 7 Completion, handover and operation 285
Stage checklist 285
Stage process and outcomes 285
Planning and scheduling handover 286
Procedures 286
Client commissioning and occupation 287
Operational commissioning 288
Main tasks 288
Client occupation 290
Structure for implementation 291
Scope and objectives 291
Methodology 291
Organisation and control 291
Soft landings 296
BIM strategy 296
BN 7.01 Client commissioning checklist 297
BN 7.02 Introduction to facilities management 299
BN 7.03 Engineering services commissioning checklist 300
BN 7.04 Engineering services commissioning documents 302
BN 7.05 Handover checklists 303
BN 7.06 Practical completion checklist 306
CHAPTER 8 Post-completion review and in use 307
Stage checklist 307
Stage process and outcomes 307
Post-occupancy evaluation 308
Project audit 308
Cost and time study 309
Human resources aspects 309
Performance study 309
Project feedback 310
Close-out report 310
Benefits realisation 311
Occupation/in-use strategy 311
Client's BIM strategy 311
BN 8.01 Post-occupancy evaluation process chart 313
Glossary 315
Bibliography 319
Past working groups of Code of Practice for Project Management 325
Index 329
0
Introduction
Project management
Project management has come a long way since its modern introduction to construction projects in the late 1950s. Now, it is an established discipline which executively manages the full development process, from the client’s idea to funding coordination and acquirement of planning and statutory controls approval, sustainability, design delivery, through to the selection and procurement of the project team, construction, commissioning, handover, review, to facilities management coordination.
This Code of Practice positions the project manager as the client’s representative, although the responsibilities may vary from project to project; consequently, project management may be defined as ‘the overall planning, co-ordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally and financially viable project that will be completed safely, on time, within authorised cost and to the required quality standards’.
The fifth edition of this Code of Practice is the authoritative guide and reference to the principles and practice of project management in construction and development. It will be of value to clients, project management practices and educational establishments and students, and to the construction and development industries. Much of the information contained in the Code of Practice will also be relevant to project management practitioners operating in other commercial spheres.
Definitions
There are many definitions in existence for the term ‘Project Management’. The CIOB, in this Code of Practice, and in all other publications, uses the following definition:
Project management
The overall planning, coordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally viable and sustainable project that will be completed safely, on time, within authorised cost and to the required quality standards.
Table 0.1 summarises a number of definitions of project management, as practiced by a selection of leading organisations involved in project management within the construction and building industry in UK.
Table 0.1 Definitions of project management
Organisation Definition of project management Chartered Institute of Building The overall planning, coordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally viable project that will be completed safely, on time, within authorised cost and to the required quality standards. Association for Project Management The application of processes, methods, knowledge, skills and experience to achieve the project objectives.1 British Standards 6079:2010 A unique set of coordinated activities, with definite starting and finishing points, undertaken by an individual or organisation to meet specific objectives within defined schedule, cost and performance parameters. Office of Government Commerce (Department of Business, Innovation, and skills) The planning, monitoring and control of all aspects of the project and the motivation of all those involved in it to achieve the project objectives on time and to the specified cost, quality and performance.2 International Organization for Standardization 21500:2012 Project management is the application of methods, tools, techniques and competencies to a project. Project management includes the integration of the various phases of the project lifecycle. International Project Management Association3 IPMA Project management (PM) is the planning, organising, monitoring and controlling of all aspects of a project and the management and leadership of all involved to achieve the project objectives safely and within agreed criteria for time, cost, scope and performance/quality. It is the totality of coordination and leadership tasks, organisation, techniques and measures for a project. It is crucial to optimise the parameters of time, cost and risk with other requirements and to organise the project accordingly Project Management Institute4 PMI Project management is the application of knowledge, skills and techniques to execute projects effectively and efficiently. It is a strategic competency for organisations, enabling them to tie project results to business goals – and thus, better compete in their markets.1 Definition as available at http://www.apm.org.uk/content/project-management (accessed November 2012).
2 Definition obtained from OGC Glossary of Terms & Definitions v06 March 2008 – at the time of publication the document is available at www.gov.uk through publications of the Department of Business, Innovation & Skills.
3 Definition obtained from ICB 3.0 – page 127.
4 Definition as available at http://www.pmi.org/About-Us/About-Us-What-is-Project-Management.aspx (accessed February 2013).
Characteristics of construction projects
Construction projects have inherent features that make them highly complicated enterprises. These features are characterised by high levels of complexity, uncertainty and uniqueness and include
- Complexity created by the fragmentation of the organisational mechanism by which most projects are delivered. Usually the project delivery team is external to the client organisation, there is a separation between the designers and the constructors and the requirement for a wide range of specialist knowledge and skills demands the involvement of a large number of consultants, contractors, suppliers and statutory bodies.
- Complexity of the technology involved in the construction of modern buildings.
- Logistical complexity created by the locational aspects of projects – the site being a fixed location means that everything else must be taken to it. It is likely logistical complexity will be increased in a highly urbanised country where the pressure on land means the building footprint is likely to be the same as the site area, leaving minimal working space.
- Uncertainty created by exposure to the extremes of the weather.
- Uniqueness of each project; the project organisation and the participants vary, site conditions are different, technology adopted for the building varies, external influences on the project will be different and client constraints will be different.
- Uncertainty caused by the time necessary for the project life cycle. The longer the period of time, the greater the opportunity for the project to be impacted by changing external circumstances, such as economic conditions, or by changing client requirements.
Further pressures are created by a client needing to commit to key criteria such as the project duration and cost budget at an early stage, often before the full implications of what the project actually is about and how it is to be implemented have been developed in detail.
Most participants to the project are involved because they are offering a service or product as part of their business activity. It is usual practice for this involvement to be a formal contractual agreement with an agreed fixed, lump sum price based on a definition of the service or product required. Throughout their contribution to the project, participants are therefore balancing protecting their commercial position with working towards helping to achieve the overall project objectives. This relationship is not without difficulties and does not always work to the best advantage of the client or the project.
Characteristics of construction project management
Construction projects are intricate, resource consuming and often complex activities. The development and delivery of a project typically consists of several phases, sometimes over lapped but always linked, requiring a wide variety of skills and specialised services to balance the key project constraints (Figure 0.1). In progressing from initial feasibility to completion and occupation, a typical construction project passes through successive somewhat distinct stages that necessitate input from such asynchronous areas such as financial institutions, regulatory and statutory organisations, members of the public, engineers, planners, architects, specialist designers, cost engineers, building surveyors, lawyers, insurance companies, constructors, suppliers, tradesmen and cost managers.
During the construction stage itself, a project of relatively simple design and methodology involves a wide range of skills, materials and a plethora of different but often sequential activities and tasks that must follow a predetermined order that constitutes a complicated and sensitive pattern of individual criteria and restrictive sequential relationships.
The Construction Industry Council (CIC) suggests that the primary purpose of project management is to add significant and specific value to the process of delivering construction projects.1 This is achieved by the systematic application of a set of generic...
