change management on construction projects-libre

8/9/2019 Change Management on Construction Projects-libre

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2014

Queens Uniersity

Belfast

Malak Abdelmoaty

40140238

[CHANGE MANAGEMENT ON

CONSTRUCTION PROJECTS]ARC7058: Project Management, Planning and Control

Lecturer: Ron Coates


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[CHANGE MANAGEMENT ON CONSTRUCTION PROJECTS] November 20, 2014

Queens Uniersity Belfast| Project Management, Planning and Control 1

Change Management on Construction

Projects

Table of ContentsList of Figures .......................................................................................................................................... 1

Executive Summary:- .............................................................................................................................. 2

Introduction:- .......................................................................................................................................... 3

Change Management in constructionwhat is the essence of managing change:- ............................. 4

Setting time, cost, quality and project safety priorities for specific projectswhat are the

influences:- .............................................................................................................................................. 7

Planning, monitoring and control within each priorityhow might this change during the life-time of

a project:- .............................................................................................................................................. 10

Planning:- .......................................................................................................................................... 11

Monitoring and Controlling:- ............................................................................................................ 12

Conclusion:- .......................................................................................................................................... 14

References/Bibliography:- .................................................................................................................... 15

List of FiguresFigure 1: Changes During a Project (Lock, 2013) .................................................................................... 5

Figure 2: Clients Project Manager Dealing ith Changes Coates, 4.............................................. 5

Figure 3: Contractors Project Manager Dealing ith Changes Coates, 4...................................... 5

Figure 4: Points to Consider for the Requested Change (Lock, 2013) .................................................... 6

Figure 5: Critical Factors to Consider for Successful Change (PMI, 2013) .............................................. 6

Figure 6: Relation between Tim and Cost of Change (Lock, 2013) ......................................................... 7

Figure 7: Cost and Risk of Change Relative to Time (PMI, 2008) ............................................................ 7

Figure 8: Models of Priorities (Lock, 2013; Lester, 2013) ....................................................................... 8Figure 9: Models of Priorities (Lock, 2013; Lester, 2013) ....................................................................... 8

Figure 10: Cost, Time, and Quality Venn diagram (Harman, 2010; Ruess, 2014) ................................... 9

Figure 11: Priority Matrix (Lock, 2013) ................................................................................................. 10

Figure 12: Level of Process Interaction Relative to Time (PMI, 2008) .................................................. 11



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Executive Summary:-

Managing projects is difficult and can be quite a challenge, undertaking-a large number of

projects fail to be completed on time, on budget, or to specifications, and one of the many

reasons behind that goes back to the great amount of change orders that a single project mightcome up against.

The aim of this paper is to discuss change management in construction. Not to mention, the

paper outlines how managing a project is different from managing any other business, and

that project management is all about change, as well as propose several aspects to consider

before implementing any requested changes.

The paper then moves on by discussing how specific priorities, set for time, cost, quality and

project safety, will influence or define how specific projects will be managed, with particular

reference to the planning, monitoring and control of these four influences during the life-timeof a projectfrom its inception to its completion and hand-over. This section starts by listing

the objectives and priorities of any project, and the models that have been made for those

priorities. Furthermore, a review for the order of the priorities proposed by a few authors is

included, in addition to a priority matrix involving all the project stakeholders to help define

clear project priorities to avoid any conflicts in the future.

Last but not least, the paper also talks over with another important aspect which is planning,

monitoring and controlling of a project. This part starts by introducing the five process

groups that project management goes through in any project. Consequently, it goes through

by focusing on two of those process groups which are planning, monitoring and controlling,and how these processes interact together to deliver a project successfully and avoid any

associated risks or hazards.


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Introduction:-

APM defines project management as (2006, p.2):

Project management is the process, by which projects are defined, planned,

monitored, controlled, and delivered such that the agreed benefits are

realised. Projects are unique, transient, endeavours undertaken to achieve a

desired outcome. Projects bring about change and project management is

recognized as the most efficient way managing such change.

Because of the possibility of change, the plans of project management are repetitive

and endure liberal illustration throughout the lifecycle of a project. Liberal

illustration draws in unending elaboration and improvements for the project

management plans, and developing more precise estimates, meeting the extra

information and specifications being introduced to the initial project management

plans (PMI, 2008).

A change may be requested by any of the projects stakeholders. As much as change

could be essential and bound to happen, it could as well be worthless and

inconvenient. As a result, the project must have an efficient change control team, in

addition to developing an appropriate and proper change implementation strategy

and methods to dispatch the requested change effectively and successfully, and

keeping up with projects objectives and priorities as in scope, cost, time and quality.

Since project management is all about managing change, we can say that they are

both two sides of the same coin, or that project management is the essence ofchange. A detailed explanation of change management, and how they could affect

the projects priorities, as well as how to develop planning to adapt with those

changes, in addition to controlling and monitoring the required modifications, is

discussed through the coming sections of this paper.


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Feasibility

Can we doit?...Which isbest?

Strategy

How do webest manageto do it?

Design

How do webest realisethe project?

Construction

Problem-sohow do webuild it?

Commissioning

Does it dowhat wewant it to do?

Design

Likelihood:Perhaps if it isa design andbuild project

Construction

Likelihood:Certainly

Commissioning

Likelihood:Perhaps

Subsequently, a clients project manager will have to deal with changes in the scope of a

project throughout the various stages of a project as in show in fig.2

Furthermore, a contractors project manager will also have to deal with changes to the scope

of a project as shown in fig.3

Since change in a project is frequent and ceaseless, limited projects can face several

confrontations when implementing changes. Therefore, the board responsible for approving

of the requested changes should acknowledge several points (as shown in fig.4) at first beforeimplementing those changes.

Figure 1: Changes During a Project (Lock, 2013)

Figure 2: Clients Project Manager Dealing with Changes (Coates, 2014)

Figure 3: Contractors Project Manager Dealing with Changes(Coates, 2014)


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Requested

(Proposed)CHANGE

Is the changeactually

possible tomake?

Is it acustomer-

requested ora self-

inflictedchange?

What is theestimatedcost of the

change?

Will thecustomerpay? If so,

what shouldbe the price?

If the change

is notcustomer-

requested, isit really

necessary?Why?

What will bethe effect onthe projecttimescale?

How willsafety,

reliability andperformancebe affected?

Will scrap orredundant

materials becreated?

Whatdrawings,

specificationsand other

documentswill have to

be modified?

Change that is reasonable, measureable, and capable of being sustained over a longperiod of time.

Thoughtful planning to address risks in the fluid environment of change and thelimitations in controlling those risks

Capability of the project team to carry out and integrate all supporting activitiesthat impact the delivering of project benefits.

Importance and challenges of communications, stakeholder participation, andmonitoring/responding to potential resistance.

Proactive monitoring, adjusting and reworking of project plans to optimize theintended outcomes

Additionally, PMI (2013, p.106) listed out the most critical factors to consider when

delivering successful change through projects and they are as follows (Fig.5):

Figure 4: Points to Consider for the Requested Change (Lock, 2013)

Figure 5: Critical Factors to Consider for Successful Change (PMI, 2013)


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Since change is a destined fate for any project, the timing of introducing this change is crucial

to the project cost. A project manager would very much hate to face any changes at a late

stage in the project due to the huge costs and risks it burdens the whole project with. Fig.6

and Fig.7 show the relation between costs of change over time in a project in addition to risks

relative to time, and how much the cost increases as time goes, as well as the high potential ofrisks and disruption of the project sequence that may occur at later stages of the projects time

line.

Finally, the change originator must be aware of whether they will have any type of

compensations as in changing the budget or offering any extension of time (changing the

budget or giving an extension of time only occurs if the change is originated by the client,

otherwise if the change is created elsewhere, the client has to approve of any changes to the

budget or time of the project).

Setting time, cost, quality and project safety priorities for specific

projects what are the influences:-

A definition of a project is a matter that almost every piece of literature discussing project

management must include. APMs (2006, p. xv) definition of a project was that A project is

a unique, transient endeavour undertaken to achieve a desired outcome. PMI (2008, p. 1)

also state that A project is a temporary endeavour undertaken to create a unique product,

service or result. The temporary nature of projects indicates a definite beginning and end. Ina like manner, Lester (2013) construes a project as a set of activities with a precise beginning

and ending points, with a necessity of fulfilling certain particularized aims and goals at

completion; on-time, within budget; accomplishing recommended performance and quality

demands.

Hence, what can be obviously deduced from the previously mentioned definitions is that any

project is unique in its own scope and nature, and that there are certain objectives that the

delivered project must meet in order to be named successful. As a result of the unique

character each project has, the order of priority given to those objectives varies accordingly in

each project being delivered, depending on the desired outcome.

Figure 6: Relation between Tim and Cost of Change (Lock, 2013) Figure 7: Cost and Risk of Change Relative to Time (PMI, 2008)


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Several objectives models have been developed to outline the three most important priorities

any project seeks (Fig.8), however, several other priorities have been introduced some of

them being crucial aspects such as safety which is a non-negotiable prospect in the UK

industry, and others that might be optional depending on the project scope such as

sustainability, which is actually becoming of a greater importance due to the environmentsdegradation (Fig.9)

Normally in a real world, a client can never have a project which is cheap, fast and of a high

quality at the same time. Considering that safety is non-negotiable, cannot be compromised,

and probably takes the first seat in any project, other objectives have to be prioritized by theclient according to his requirements. Therefore a client should be aware that optimizing the

Figure 8: Models of Priorities (Lock, 2013; Lester, 2013)

Figure 9: Models of Priorities (Coates, 2014)


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three other priorities is practically impossible as one will always suffer, thus he must only

choose two priorities (Fig.10).

Lester (2013) discussed the importance of safety by presuming that while cost, time, quality

can be shuffled to meet the changing needs of the project; safety cannot be negotiated by any

means.

Based upon this theory Lester (2013) proposed an order listing the four project management

criteria relative to their significance, where safety takes the lead, followed by performance,

then time and finally cost in the back seat. He supported his argument by mentioning that:

-If the project is not safe, it can cost lives and/or destroy the constructor and

other stakeholders.

-If the performance is not acceptable, the project will have been a waste of

time and money.

-If the project is not on time, it can still be a success, but may have caused a

financial loss.

-Even if the cost exceeds the budget, the project can still be viable, as extra

money can usually be found. (Lester, 2013, p.4)

Figure 10: Cost, Time, and Quality Venn diagram (Harman, 2010; Ruess, 2014)


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Lock (2013) supports that proposal of Lester mentioned previously with regards to

quality/performance, concentrating on the fact that degrading quality/performance is

not an option, as any project manager should never deliver a project which is not

convenient or proper.

On the other hand, there may be other numerous facets affecting the order of the

project management priorities, some of them might be political, others might be due

to the clients commercial needs, and much less the changes that any project could

encounter through the projects lifecycle, that may possibly force the client;

stakeholders; project managers to reorder their priorities depending on those

implemented changes, and therefore the project manager must be ready to make

sacrifices and compromises to the initially planned criteria for the projects best

interest.

One way of help ordering the priorities of each project is through a matrix that

includes all the stakeholders, reaching the conception of the objectives triangle, and

involving all stakeholders in having the decision of listing the priorities in the most

appropriate manner (Fig.11) (Lock, 2013).

Planning, monitoring and control within each priority how might

this change during the life-time of a project:-

Any project to be delivered should pass through five process groups; Initiating; planning,

executing; monitoring and controlling; closing. However, although these processes may

seem to be sequential, in practice, those processes overlap and inter-react together throughout

the project lifecycle, more specifically during the planning, executing, and monitoring andcontrolling processes (Fig.12),and that is due to the continuous and iterative changes the

Figure 11: Priority Matrix (Lock, 2013)


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project encounters, which as a result requires further planning to adapt with the proposed

modifications, in addition to qualified monitoring and controlling to avoid any risks arising

from those changes. The complexity of how those processes work together puts an immense

burden over project management, in order to deliver the project according to the required

specifications efficiently and effectively.

Planning:-

The planning phase or the planning process group is the stage where the project objectives

and specifications in the clients brief are turned out into project management plans anddocumentations necessary for delivering the project, and acting as inputs for the execution

phase to be established.

One can rarely find final planning documents for any project, and that is because of the

nature of project management which develops continuous feedback loops for further

inspection, and furthermore because of the fact that the more information and specifications

are gathered about the project, the more it becomes essential for additional planning to meet

those specs.

Planning process examines all project aspects as in scope, cost, time, quality, communication,risk and procurement (Fig.13), turning them into project management plans and project

documents. As a result of the significant amount of changes any project faces, it is essential

to revisit those plans and update them precisely to insure they meet the defined project scope,

and that is due to the great impacts they could have on the project schedule, cost and

resources in addition to the huge risks that can evolve if those changes were not compatible

with the project plans.

Figure 12: Level of Process Interaction Relative to Time (PMI, 2008)


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Monitoring and Controlling:-

Monitoring and controlling process group interacts with all other process groups (Fig.14) to

trail, examine, and manage the advancement and accomplishments reached by the project

(Fig.15). Moreover, it explores the extents requiring changes to the initial plan and setting up

the matching and appropriate change (PMI, 2008). To control change is to guarantee that all

changes proposed for one of the projects objectives, as in scope, cost, time, and quality, are

recognized, assessed, endorsed, rebuffed or postponed (APM, 2006).

Figure 13: Fields Involved in Planning Process (PMI, 2008)


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The constant monitoring gives an overview of the whole projects health, as monitoring and

controlling does not only involve the processes related to them, but it involves the entire

project effort. Furthermore, monitoring and controlling often results in updates in the project

management plans, giving corrective and preventive actions to carry out the project according

to the requirements.

Figure 14: Project Process Groups (PMI, 2008)

Figure 15: Fields involved in Monitoring and Controlling Process (PMI, 2008)


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Conclusion:-

To sum up, it is very unusual to come across projects that have not experienced any sort of

change throughout its life cycle. Evenly, there are hardly any changes that do not affect any

of the projects scope or objectives presented in cost, time, performance, safety or any otherobjectives the project seeks. As a result, it is crucial for those changes to be documented,

assessed, and handled to ensure that their creator is well aware of all the sequences and

consequences of implementing the requested change.

Moreover, a project manager must be aware that sometimes he would have to reconsider the

projects objectives and priorities as they might need updating if the introduced changes

create extra costs, increase the whole project duration, change the projects quality or threaten

the implemented safety measures.

And last but not least, efficient monitoring and controlling will help determine theseriousness of the proposed modifications, as well as help determine the best way of planning

how to introduce those changes into the projects original plans, with minimal alteration to

the projects objectives.


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References/Bibliography:-

1) PMI (2013) Managing Change in Organizations: A Practice Guide, USA: Project Management

Institute, Inc.

2) APM (2006) APM Body of Knowledge, 5th edn., UK: Association for Project Management.

3)Coates, R. (2014) The Management of Change, Available at:

https://learning.qol.qub.ac.uk/2141/ARC/7058-AUT-

QUB/Resources/The%20Management%20of%20Change%20-%20in%20colour.pdf

(Accessed: 19th November 2014).

4) Lock, D. (2013) Project Management, 10th edn., England: Gower Publishing Limited.

5)Lester, A. (2013) Project Management, Planning and Control. Managing Engineering, Construction

and Manufacturing Projects to PMI, APM and BSI Standards, 6th edn., England: Butterworth-Heinemann.

6) PMI (2008) A Guide to the Project Management Body of Knowledge, 4th edn., Pennsylvania:

Project Management Institute, Inc.

7) Harman, R. (2010) How Would You Like Your Graphic Design, Available

at:http://www.colinharman.com/how-would-you-like-your-graphic-design/(Accessed: 19th

November 2014).

8) Ruess, B. (2014) How to Choose the Right Website Development Firm, Available

at:http://blog.tbhcreative.com/2014/06/how-to-choose-right-websitedevelopment.html

(Accessed: 19th November 2014).