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PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS. Construction sector is a key enabler for social and economic development worldwide Construction sector contribution in Tanzania 2010-GDP -7.8% (USD 1.6b) 2015-GDP-13.6% (USD 6.0b). PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS.

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PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS

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  1. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS Construction sector is a key enabler for social and economic development worldwide Construction sector contribution in Tanzania 2010-GDP -7.8% (USD 1.6b) 2015-GDP-13.6% (USD 6.0b)

  2. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS Construction projects worldwide have a poor reputation of TIME & COST OVERRUN CAUSES –Frequent Variations, contractor’s financing, delayed payment, Corruption, poor project management etc POTENTIAL SOLUTION An effective Project Management System

  3. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS RISKS INHERIT IN CONSTRUCTION PROJECTS Construction Contract is all about shifting the risks from the Client to the Contractor for a REWARD Financial Risks Contractual Risks Operational Risks Environmental Risks

  4. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS RISKS INHERIT IN CONSTRUCTION PROJECTS RISK MANAGEMENT Avoid the risk Transfer the risk Mitigate the risk Accept

  5. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS 4 KEYS TO EFFECTIVE CONSTRUCTION PROJECTS PLANNING AND MANAGEMENT 1. PLANNING Mobilization Developing deliverables/milestones(Planning tools) Determining resources (equipment,materials,labour)

  6. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS 4 KEYS TO EFFECTIVE CONSTRUCTION PROJECTS PLANNING AND MANAGEMENT 2. MONITORING PROGRESS AND MAKING ADJUSTMENTS Time control Cost Control Quality Control Safety management

  7. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS 4 KEYS TO EFFECTIVE CONSTRUCTION PROJECTS PLANNING AND MANAGEMENT 3. COMMUNICATIONS Standard construction communication (Progress report, payment requests, work request, Claims)etc Other Communications

  8. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS 4 KEYS TO EFFECTIVE CONSTRUCTION PROJECTS PLANNING AND MANAGEMENT 4. COLLABORATIONS Good communication Team work Common desire to finish the project successfully Trust for each other

  9. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONSTRAINTS HINDERING CONTRACTORS PERFORMANCES 1. CORRUPTION Major obstacles to economic development Construction sector ranks as one of the most prone to corruption worldwide Produces poor quality and overpaid infrastructure

  10. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONSTRAINTS HINDERING CONTRACTORS PERFORMANCES 2.DELAYED PAYMENT TO CONTRACTORS Affects Contractor’s cash flow Leads to delay in completion of the project Leads to abandonment of the project Creates financial hardships

  11. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONSTRAINTS HINDERING CONTRACTORS PERFORMANCES 3.INADEQUATE MANAGERIAL SKILLS Construction is a risky business so needs special skills to manage Skills to identify the risks and manage them Investing in trained project managers is important for both contractors and clients

  12. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS 1. Interventions by PPRA Setting aside of funds (Payment guarantee) Force account (Local fundi) Review criteria for Employer’s personnel (Project Manager) Review clause related to delay of payment by Client

  13. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS 2. Interventions by CRB Project Registration –Monitor up to completion Regular compliance check– Human resources Increase efforts to ensure Contractors participation in mega projects

  14. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS 3. Interventions by ERB Project Registration –monitor up to completion Expedite the envisaged Project management training series Increase efforts to ensure mega projects participation by local firms

  15. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS 4. Interventions by AQRB Project Registration –monitor up to completion Project management training series Increase efforts to ensure mega projects participation by local consulting firms

  16. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS Joint efforts CRB, ERB & AQRB Create joint platform for discussion of projects success/failure Best Innovation award of the year

  17. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS STAKEHOLDERS CONTRACTORS Earlier risks identification and assessment Careful review of all contract documents Invest in human resources Continue learning (SSTP)

  18. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS Construction Professionals(Engineers, Architects & Quantity Surveyors) MAINTAIN A HIGHLY DISCPLINED MIND TO GAIN PUBLIC TRUST AND ADMIRATION Scrupulous attitude Detailed honest

  19. PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS Construction Professionals(Engineers, Architects & Quantity Surveyors) MAINTAIN A HIGHLY DISCPLINED MIND TO GAIN PUBLIC TRUST AND ADMIRATION Innovative attitude Passion Desire to always learn new things

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