Over expenditures and delays
5.6 Conclusion
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Off- Prism Strategy
Use proactive method for engaging external participants and assessing the macro environmental conditions that can influence project cost. In the case of most projects, engineering focus on technical solutions with little attention to community interest or concerns and often fail to recognize market and macroeconomic change.
Risk Analysis
Agencies should estimate base amounts separately from risk and contingency costs. Understanding the associated with the project and having a clear definition of contingency coverage is very important. The definition of contingency helps in understanding what is or is not covered in the contingency amounts included in the planning level cost estimates and can aid in managing.
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 6.1 Summary
The following conclusions are based on the insights gained by the author from the literature review and the analysis of the research survey.
The literature review highlighted the following:
The following conclusions are based on the insights gained by the author from the literature review and the analysis of the research survey.
The literature review highlighted the following:
Management in construction is solely driven by project constraints and the more complex the client’s needs the more strategic the management system that has to be enforced. The selection of an appropriate building procurement system contributes to the achievement of the client’s objectives in terms of time, cost and quality. Although there is no better procurement system when the systems are compared, management systems seem to resolve most critical issues of the clients better than conventional systems. The technical complexity, time reductions and fewer cost overruns are managed efficiently in management than other systems.
If there are two conflicting objectives in a project there will be no attainment of client’s objectives; if the contractor’s objective is to make a high profit and the client’s objectives is to spent less, clearly there is conflict. The choice of some procurement systems inflicts this conflict in their management strategy. Like design and built, the contractor manages the entire project and in the process the contractors objectives are put before the clients objectives, at the same time, some clients concerns are not on time and budget but are more concerned in completing the work without much involvement and prefer to use this strategy, therefore there is no better strategy, the strategy depends on the client’s requirements.
CPM was not implemented to face out other procurement systems. Risk management and other management strategies are a good illustration of this. The same management process in the conventional methods still applies in construction project management and the systems have similar characteristic but their objectives are different. The difference is with the additional services that CPM has to overcome the weakness of the TPM.
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Competition is increasing; the market is fluctuating therefore risk is increasing and the more protective allowance that need to be done. Through case studies it was discovered that in this era no projects will prosper without any risk assessment and mitigation done before hand.
Failure without proper drastically if no risk assessment and elimination is done on a project before hand; project fail without.
Construction project management is successful today as compared with other procurement systems because it addresses the complexity of today’s projects requirements and design; it also runs parallel with the advanced technology which forces public sector departments and private sectors to be more productive. This calls for strategic management ethics on projects. Many dynamic projects have succeeded without project management simple because there were no time and cost limitations but today this parameter determines the success of a project and construction project management priorities on these objectives.
The intense management strategies of the management system will also determine success of a project. Most management systems do not address the project constraints and for a system to be successful it must address the natural causes of failure; construction project management uses risk management as a tool that tries to address the natural project failure by eliminating them through corrective measures; this might not eliminate the risk entirely but a project that under goes a risk assessment will definitely reduce the risk to a great extent. Risk management proves that construction project management is effective towards client’s objectives because of its management content. Project and their constraints require a lot of changes as the changes occur in all angles of a project; and the advantage with using construction project management is; the management process allows change as the construction progress; this includes strategies that allow a particular constraint to be addressed as it occurs. Change control management eliminating the risk therefore it improves cost reductions and time scales, therefore having a great influence on cost overruns and delays. Again if it was not for the complexity and advanced technologies that world is revolving around today, there would not be much risk that today’s projects undergo; therefore there would not be a need for risk assessment that construction project management seem to use as a help tool, which concluded that construction project management is a success of today problems.
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The measure of project management is massif in that it is not only used in the construction industry, but in all South African business sectors and surprisingly succeeding when implemented.
Any management skill, functions and roles must be modeled around the success requirements needed to achieve the objectives and also the mitigation requirement needed to waiving off the constraints; otherwise any professional will claim capable in managing a project without having the necessary skills, which is a result of failure of conventional system. Cost is seen as the most uncontrollable parameter in most projects and for that it requires careful control measures and it must take first priority, such a parameter will demand scope and schedule management; risk management and construction project management.
The research found that there is a linkage between the construction project management strategies and constraints that a project inherits, again making construction project management an effective achiever of the client’s objectives.
Survey used to test the theory and conclusions developed in the literature survey. The results of the survey indicated the following:
Most clients preferred the use of construction project management on their project.
Construction project management proved to be improving the cost and time mostly and tackling the project constraints.
It is the most used procurement strategy and most buildings in South Africa have been constructed using it.