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FUNDAMENTALS OF PROJECT 
MANAGEMENT COMPETENCY

EXECUTIVE MASTER IN PROJECT MANAGEMENT
Certified Construction Project Manager (CCPM)
UNIVERSITI MALAYSIA PERLIS (UniMAP)

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1.0  Introduction to Construction Project Management

1.2  Introduction to Construction Project Management

2.0  Construction Project Management Activities

2.1  Project Initiation
2.2  Conceptual Design and Preliminary Estimate

2.3  Procurement Management
2.4  Project Planning, Monitoring and Control

2.5  Financial Management
2.6  Design Management and Authority Liaison

2.7  Quality Management and Control
2.8  Occupational Safety and Health Management

2.9  Environmental Management
2.10  Value Management

2.11  Tender Management
2.12  Contract Management

2.13  Project Handover and Close-Out
2.14  Operation and Maintenance

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.1 Definition and Overview

•
“A project is temporary in that it has a defined as beginning and end in time, and
therefore defined scope and resources. And a project is unique in that it is not a
routine operation, but a specific set of operations designed to accomplish a singular
goal.” (Adopted from Project Management Institute, 2019)

•
Projects and operations differ primarily in that operations (such as accounting, office
administration, etc.) are ongoing and repetitive, while projects are unique and
temporary.

•
Construction projects can be classified as either private (for profit) or public (for
social need). Typically, construction projects can be categorized as:

c.
Industrial/ Processing construction projects.

d.
Infrastructure / heavy construction projects.

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.1 Definition and Overview – Cont.

•
A competent person is an individual that can apply a significant range of knowledge,
skills and attitude to complete a certain amount of work activities and accomplish a
successful as well as quality service and product.

•
Construction Project Manager is a person whom leads all of the construction project
activities of a construction project throughout the entire project life cycle phase to
achieve the construction project objective.

a.
Initiates construction project management activities.

b.
Plans construction project activities.

c.
Controls construction project activities and processes.

d.
Makes decisions for moving forward of the construction project.

e.
Manages construction project team and stakeholders.

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.2 Introduction to Construction Project Management
1.2.1 Authorisation of a Construction Project

•
Construction projects are authorized (to be implemented) by clients as a result of
one or more of the following strategic considerations:

a.
A market demand (e.g. a property developer authorizes the development of a resort
home project in response to property market demand for high class living in the City).

b.
An organizational need (e.g. a corporation authorizes the building of an office complex in
Putrajaya to be their new corporate headquarters).

c.
A customer demand (e.g. the Energy Agency authorizes an expansion of the national
power grid to meet the growth of customer demand for electricity in an urban area).

d.
A technological advance (e.g., the government built new types of schools with computer
laboratory to keep the education system in step with the advances in education
pedagogy).

e.
Legal requirement (e.g. the local authority approves the design and builds a new waste
treatment plant so as to make the city comply with the environmental laws and
regulation).

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.2 Introduction to Construction Project Management – cont.
1.2.2 Construction Project Life Cycle

•
A typical project life cycle recognizes that a project has a limited life span and that
there are predictable changes in the level of effort and focus over the life of the
project. Construction projects can be described in terms of its life cycle stage or
phase in Figure 1.0.

•
Progressive elaboration is a characteristic of a project that integrates the concept of
temporary and unique within the project life cycle. Because the outcome of each
project is unique, the characteristics that distinguish the service must be
progressively elaborated.

•
In construction, progressive elaboration can be seen for a project that progressed
from a concept plan to schematic plan to detail contractual plans, construction and
shop drawings, to as-built drawings for use in maintenance.

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.2 Introduction to Construction Project Management – cont.
1.2.2 Construction Project Life Cycle – cont.

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.2 Introduction to Construction Project Management – cont.
1.2.3 Construction Project Activities

•
A Construction Project Manager shall have adequate knowledge to manage the
following construction project activities:

•
These project activities are divided into modules for each respective project
activities.

a) Project Initiation
i) Environmental Management

b) Conceptual Design and Preliminary Estimate
j) Value Management

c) Procurement Management
k) Tender Management

d) Project Planning, Monitoring and Control
l) Contract Management

e) Financial Management
m) Project Handover and Closed-Out

f) Design Management and Authority Liaison
n) Operation and Maintenance

g) Quality Management and Control
o) Project People and Team Management

h) Occupational Safety and Health Management

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.2 Introduction to Construction Project Management – cont.
1.2.4 Project Development Principle

•
The Construction Project Manager has to have knowledge on project development
principle and understands that main issues have to be resolved soonest possible.
Any changes to the project requirement during the later stages of the project would
incur the cost and delay to the project.

•
The Construction Project Manager has to apply his knowledge, skills, tools, and
techniques to manage each of the identified Project Activities and to achieve the
Project Objective determined by the Client at the outset.

•
The Construction Project Manager has to ensure that all the project activities are
implemented under the `First Time Right Principle’ to avoid wastage, time and cost
during the implementation of a Project.

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.2 Introduction to Construction Project Management – cont.
1.2.5 Three (3) Keys Project Management Process

•
The Construction Project Manager shall have the knowledge of the following three
(3) keys project management processes:

a.
Phasing of a project – to divide the project into logical and sequential steps for ease of
implementation.

b.
Controlling of a project – to control the implementation of the project to achieve the
agreed project contents and processes, time, quality and cost.

c.
Decision making – to make a specific decision has to be taken at the right time at each
phase of the Project Development Phase to enable the project to move forward.

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1.0  INTRODUCTION TO CONSTRUCTION PROJECT MANAGEMENT
1.2 Introduction to Construction Project Management – cont.
1.2.5 Three (3) Keys Project Management Process – cont.

The objective of phasing is to make the total development of project scope into
manageable phases.

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Each development phase must be controlled to ensure that the project development is in
accordance with the intended project objective and the end result (or GOAL). Each phase
of the project is subject to controlling processes in Time, Cost, Quality, Organization, and
Information to achieve the intended project end result as shown in Figure 3.0.

Figure 3.0: Project Controlling Principle

(Time)
(Cost)
(Quality)
(Organisation)
(Information)
c
1
Broad Plan for
subæquent
Plan & Approach
Phaæ
for next
Project R—ult
Control li Asr•cts

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The work under each phase has to be completed before the decision is made and move
to the next phase. This is important in order to avoid abortive work.

Figure 4.0: Combination of the Three (3) Cornerstones

Construction Project Phases
Idea and
What
Inception
Phase
T CQ 01
How
Design
Development
Phase
T CQ 01
Construction
Project
How to
make
Tendering
Phase
T
Do
Construction
Phase
Close
Handover
Phase
CQ 01
Construction
Project
Design
T CQ 01
Construction
Programme
Construction
rogramme
Project
Commission
Preserve
Phase
T CQ 01
Operation and
Maintenance
Programme
Decision making

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2.0  CONSTRUCTION PROJECT MANAGEMENT ACTIVITIES

• In project initiation, Construction Project Manager shall collect information regarding

the construction project from Client that will eventually be compiled as project idea,
project brief and Statement of Need.

• Construction Project Manager shall also determine if the construction project is viable

by conducting a feasibility study. The feasibility study will also help in compiling the
requirement of the construction project in later stages.

• The Project Idea is normally determined by the Client. It forms the basis by which a

project is to be developed. It defines project objectives, project results and any specific
requirements by the Client. Detail evaluation or research has to be carried out to
determine whether the intended Project Idea would be able to meet the objective and
requirement of the Client.

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2.1 Project Initiation – cont.
2.1.2 Feasibility Study

• Economic, financial and technical feasibility study of a project is based on the accepted

Project Idea. The objective, coverage area and extent of the feasibility study have to be
clearly defined to avoid abortive work inadequate findings, etc. which are insufficient for
the Client to make a decision on whether to proceed with the project or not.

• The accepted finding of the Feasibility Study Report would be included as part of the

• Project Brief is to be issued to the Design Consultant. It shall include the Project

objective, physical and non-physical works required by the Client.

• It shall also include the relevant accepted findings and recommendation of the

`Feasibility Study Report’ and other specific requirements of the stakeholders. It has to
be complied fully by the Project Implementers during the implementation stage of the
project unless with the specific approval of the Client.

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2.2 Conceptual Design and Preliminary Estimate

• With the information gathered from Client, as well as information gathered from site

survey, site investigation, site visit and soil investigation, Construction Project Manager
shall initiate development of concept design and began to prepare preliminary estimate
of the construction project.

• Design Consultant and Cost Consultant (or Quantity Surveyor) may be appointed to

complete this construction activity in a more precise and professional way.

• Design Consultant shall produce a concept design with all information provided to them

and shall be presented to Client for review and discussion. Concept design may come in
several options for the Client to make decision, on which design shall be proceed for the
construction project. Illustration such as a 3-dimensional model may allow a better
perspective for making decision.

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2.2 Conceptual Design and Preliminary Estimate – cont.
2.2.2 Preliminary Estimate

• Quantity Surveyor may derive a very rough cost estimate based on information gathered

from Client and also from concept design generated by Design Consultant.

• It shall be noted that contingency amount allocated in the cost estimate amount may

provide a small insurance shall there be unexpected element occurs in the future during
the construction project life cycle.

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• In order to prepare a construction tender and then type of contract, a procurement

method must be determine in order to suit the tender documentation based on
procurement strategy.

• There are some variables that may affect the choice of procurement method:

a. Broad issues (consultant, contractor, negotiation, measurement and alternative procurement

b. Construction Project and Client (project size, client type, among others).

c.
Client procurement needs (time, cost, quality, project objectives and market conditions
among others).

• A Construction Project Manager shall advice Client on the procurement strategy for a

a. Establish timeline of procurement activities.

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2.4 Project Planning, Monitoring and Control

• A Construction Project Manager shall be able to plan, monitor and control a

construction project. Sometimes, planning may take more time than the actual
construction phase period.

• The main thing that will be looked for in planning are the schedule or work programme.

Before a Contractor is appointed and submitted their construction work programme,
Construction Project Manager must have the intended milestones and major event
planned on certain period or dates. A master work programme shall be referred to when
reviewing the Contractor’s construction work programme.

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2.4 Project Planning, Monitoring and Control – cont.
2.4.2 Project Monitoring

• Project monitoring is very important during construction phase, in order for the

construction project is completed in time, cost as well as within acceptance quality by
the Client or other standards.

• Construction Project Manager shall control the progress and execution of the

construction project based on the planning made earlier in the construction project
phase as well as monitoring done during construction.

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• Construction Project Manager is obligated to the Client for structuring the budget

carefully, based upon the Client’s needs and requirements. Cash flow shall be under
control all the time to ensure construction project profitability.

• The need of financing in a typical construction business for contractor can be divided

a. Pre-construction – Commonly for preliminaries items for contractor. This is the working

capital for acquiring Performance Bond, insurances and construction and provisions of
preliminary works and facilities. The pre-construction stage only contributes a small portion
of the financial needs of a contractor. However, for a much larger scale project, this stage can
consume a considerable sum of the contractor’s budget.

b. Construction – Financing is required for working capital, namely labour and construction

materials, and for the fixed capital namely machinery and plants. During this stage, the
contractor prepares the Cost Breakdown Structure (CBS), a detailed form of project cost that
has the direct purpose of integrating project schedule and costs with a cross reference to the
project Work Breakdown Structure (WBS).

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c.
Contractor needs to bear the cost required to make good all defects in the defect liability
period. The amount of fund for rectification works depends on the type and scale of defect
on the finished project.
A poor quality of work, which leads to failure, may result in

demolition and re-construction of the works.

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2.6 Design Management and Authority Liaison
2.6.1 Detail Design

• With conceptual design approved by the Client, detail design shall be developed into

working drawings and specification that are suitable for construction purposes. In some
procurement method, such as Conventional, detail design shall be done by design
Consultant before Contractor is appointed. While in Design and Build, detail design shall
be done by in house Consultant of the Contractor or by Contractor himself.

• Detail design involves all discipline in a construction project and therefore clashes must

• During the course of development of detail design, quantity surveyor may also monitor

the progress of the detail design to ensure that the design does not exceed the
approved budget. Cost estimates can be done by:

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2.6 Design Management and Authority Liaison – cont.
2.6.3 Authority Liaison

• All development shall obtain approval of planning permission from Local Planning

Authority and all building must obtain Development Order (D.O) before any
development can start at the construction site. Submission and liaison with Local
Planning Authority for approval of planning a construction project is usually done by
Submitting Person (SP), and SP can be an architect, lead consultant or planning
consultant.

• Construction Project Manager must ensure adequate time and period is allocated for

the application to be fully approved by Local Planning Authority.

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• The Quality management is defined as the act of overseeing all activities and tasks

needed to maintain a desired level of excellence.

• Quality
standards
provide
construction
organisations
with
the
shared
vision,

understanding, procedures, and vocabulary needed to meet the expectations of their
stakeholders. Some benefits to quality standards are:

a. The construction organisation is focused towards the quality goals.

b. Increased productivity results from the initial evaluation and improvement of processes that

occurs during the implementation process and from continuous training of personnel.

c.
Client satisfaction increases are seen as goals and objectives.

d. Have better financial rewards and return on investment.

e. Documented procedures are easier for new employees to follow.

f.
Defects are caught earlier and are corrected at a lower cost.

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2.7 Quality Management and Control – cont.
2.7.1 Project Quality Document

• Project quality document will act as medium for quality management to be

implemented. These document shall ensure that quality assurance and quality control
can be implemented efficiently and with standardize methodology.

• Quality assurance is planned and systematic activities in quality system to satisfy

relevant standard and to be performed throughout construction project. Quality control
monitors construction project results to determine compliance to the listed quality
standard.

▪ Construction
organization
structure
and
processes
for
implementing
quality

management is known as Quality Management System (QMS).

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2.8 Occupational Safety and Health Management

• Implementing
safety
and
health
requirement
should
be
part
of
organisation

responsibility. The organizations’ management must ensure that the construction
project comply with Occupational Safety and Health Act 1994 and Factories and
Machinery Act 1967 in implementing safety and health requirement for the construction
site to minimize the accident rate and fatalities.

• Construction Project Manager is the primary link between site supervisors and

organization management for critical aspects of the task and represent management on
construction project safety and health.

• Construction Project Manager shall ensures that health and safety are a critical aspect

for all works carried out at construction site. This can be done with establishment of
Occupational Safety and Health (OSH) policy in a construction project.

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2.8 Occupational Safety and Health Management – cont.
2.8.1 Occupational Safety and Health in Construction Industry (Management) OSHCIM

• Guidelines on OSHCIM introduced by DOSH recommends that designers, principal

designers, principal contractors and contractors to take account of the principles in
carrying out their duties. Applying this principle at the planning and design stage will
authorize the client, designer and contractor to integrate control measures as early as in
the design process to avoid or, if this is reasonably practicable, minimize risks to safety
and health throughout the life of the structure being designed.

2.8.2 Occupational Safety and Health Duties

• With principle of OSHCIM implemented in construction project, the risk of a hazard

occurring will become less, but monitoring during construction phase is also very
important. All personnel must play their roles and take up their respective
responsibilities.

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• Construction is not an inherently environmentally friendly industry and many research

conducted has portrayed construction as a major contributor to environmental
disruption and pollution, hence a proper environmental management in construction
project is crucial to be taken care of.

2.9.1 Environmental Impact Assessment (EIA)

• Environmental Impact Assessment (EIA) is a policy and management tool for both

planning and decision making. EIA enables project owners or developers to identify,
predict and evaluate the foreseeable environmental consequences of proposed
development projects, plans and policies.

• The outcome of an EIA study assists the decision maker and the general public to

determine whether a project should be implemented and in what form. Environment
Consultant shall be appointed to prepare EIA for the above purposes.

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2.9 Environmental Management – cont.
2.9.2 Environment Management Plan (EMP)

• Construction Environmental Management Plan (EMP) shall be produced at the start of

MODULE 03 CONCEPTUAL DESIGN and PRELIMINARY ESTIMATE

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