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Technical
Article
What is project
management?
October 2013

Written by NBS for The Construction Information Service

Licensed copy from CIS: sirfreds, Sir Frederick Snow, 07/05/2015, Uncontrolled Copy.

What is project management?

Project management broadly encompasses a number of
aspects in meeting the goals necessary to the
successful completion of a project. An effective manager
must take into account four elements:
Resources - the people, materials and
equipment necessary to complete the project.
People may include employees, vendors and
subcontractors. Materials and equipment are
dependent on the nature of the project
Money finances within the project require
careful attention. Contingencies such as
weather problems, supply issues or changes in
design can have a negative impact on the
projects final cost. In order to maximize profit
the manager must keep the actual cost at or
below the estimated cost by remaining on
schedule and effectively staying within the
project scope
Time management of time involves effective
understanding and communication of the tasks
required, creating and managing a schedule,
and controlling the critical path to a successful
outcome
Scope - includes the project size, the goals set,
and the requirements necessary to meet these.
Changes in scope must be met with revision of
the budget either by amending the time
schedule or by adjusting of resources needed.
A project plan outlines the specific goals and timelines
for a project, aswell as breaking down the various tasks
needed to accomplish these goals. Project planning is
an important part of making sure a project is completed,
correctly, on time and on budget.
Project planning
Charts, like the Gantt chart (or bar chart) are helpful in
establishing a deadline and marking progress toward
that deadline. Most projects, however, need more
detailed project planning resources.
Planning methods such as the Project Management Life
Cycle are more practical than Gantt Charts because
they include important aspects of planning, such as
process groups, which outline various stages of project
development, and knowledge areas which break down
the process groups into areas of expertise.

This allows project managers to better distribute project

processes and phases to employees.
Project Management Information
Project Management Information System (PMIS) are
system tools and techniques used to deliver information.
PMs use these applications to collect, combine and
disseminate information to the teams involved. PMIS is
used by upper and lower management to communicate
with each other to help plan, execute and close project
management goals.
During the planning process, project managers use
PMIS for budget framework such as estimating costs. It
is also used to create a specific schedule and define the
scope baseline. At the execution of the project
management goals, the project management team
collects information into one database. The PMIS is
used to compare the baseline with the actual
accomplishment of each activity, manage materials,
collect financial data, and keep a record for reporting
purposes.
During the closing phase, the PMIS used to review the
goals to check if the tasks were accomplished; then, it is
used to create a final report of the project close.
Logical framework
The Logical Framework Approach (LFA) to project
management is a method used for designing a project
and aiding in planning; typically for non-profit
organizations. A logframe document is the output of the
LFA process, clearly displaying the overall design of a
project using a visual matrix and text. This can be a
valuable tool for PMs to use during initial stakeholder
communication because it can reduce even complex
projects to a basic summary. The types of items covered
by a logframe include:
Project objectives (ultimate purpose or goal)
Activities that must be completed to achieve the
objectives
Resources required to carry out scheduled
activities
Project assumptions with regard to external and
internal factors (risks, challenges, and
opportunities)
Metrics that will be used to verify that the
projects objectives have been achieved.
The logframe is not intended to show a full process
breakdown or all aspects of project scope and schedule.
Instead, it cuts through the noise and clarifies the
essentials. However, it should not be used as a
replacement for a project plan.
Matrix Format
The logframe is set up as a table with rows and columns
covering each basic aspect of the project and showing
the logical relationship between these components.
Some project managers who use a logframe

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recommend starting with a list of problems which they

would then restate as a series of positive actions or
solutions. The resources or inputs required can be listed
on the matrix at the intersection of activities and
measurable indicators, in much the same way as
carrying out a SWOT analysis.
The diagram below is a very simple version of a
logframe. These matrices are often far more complex
and may include many different column and row
headers.
Objectives

Measurable
Indicators

Means of
Assumptions
Verification

Goal
Purpose
Outputs
Activities
A very basic logframe diagram

Hired help
Successful project management is always a team effort.
However, this team isnt always in house. For many
larger and more complex projects, it is not unusual for
even an experienced PM to call on outside expertise for
help with the planning process or to perform some of the
work.
In some cases, the expert knowledge required is only
needed for the project at hand. Creating a full time
position can cost far more, in the long term, than hiring a
consultant. An added advantage of sourcing an expert to
collaborate with existing team members is that they can
share responsibility for the project outcome.
Project management planning is only as good as the
information it is based on. So, in certain situations,
contracting an expert to collect data for scope planning
and scheduling makes sense. An outside consultant with
lots of industry networking connections may more
quickly compile accurate statistics and other information
than in house staff.
Risk identification is an example of such an area of
expertise. A third party risk assessor who does not have
a financial stake in any coverage may be able to offer
more accurate insights.
However, there are potential pitfalls in investing in an
outsider. It can represent a significant expense,
especially if the budget is tight. Second, bringing in an
expert may create friction with in house experts,
especially if staff feel they are being passed over in
favour of an outsider.
Risk management
Project Risk Management is a branch of project
management that deals with identifying and mitigating
risk. The desired outcome of risk management is to
increase the probability and maximize the result of
positive events. Risk management plans help project
managers and the project team to anticipate various
risks associated with their project and plan for them.

Written by NBS for The Construction Information Service

There are six steps to the project risk management

process; these steps are repeated over the course of
the entire project:
Risk Management Planning - analysis and
decision making with regards to best
addressing, planning, and implementation of the
risk management activities of a project
Risk Identification - Assessment of the risk
susceptibilities of a project and communicating
their traits
Qualitive Risk Analysis - the process by which
risks are given ranking with regard to their
potential occurrence and impact on project
outcome
Quantative Risk Analysis - the numerical
assessment of the impact of overall risk on
project outcome
Risk Response Planning concerned with
planning interventions to reduce the risk to a
project when faced with an adverse event
Risk Monitoring and Control - the dynamic and
on-going process of project risk management
that notes risk occurrence, assesses the effect
of risk, notes new risks, carries out intervention
with risk response plans, and assesses their
outcomes across the duration of a project.
Risk is any element of uncertainty that may have a
positive or negative impact upon project management
such as time to completion, amount of resources, or
cost. Risk management often involves interaction with
team members from other work groups to evaluate and
implement measures to reduce risk to the deliverables
as a whole.
Positive risks are generally referred to as opportunities
in project management terms and these events provide
the potential to dramatically improve the outcome of a
project by:
Reducing length of time to completion and/or
reducing the required manpower
Reducing the total project costs
Increasing the quality/quantity of the completed
project.
Risk management planning should take the time to
evaluate the chances of positive opportunities arising.
This way, they can be recognized when they come along
and exploited to best advantage. Examples of positive
opportunities that occur during project management
might include:
The acquisition of a new resource that reduces
labour costs
A successful outcome of initial testing with little
or no need for revisions
A total lack of employee absenteeism for the
duration of the project
A drop in the price of necessary raw materials.

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Identification of positive risk, and making it a reality,

demonstrates good project management. While it can be
rewarding, competent project management requires
practice, networking with other successful project
managers, and keeping up with trends through reading
and research.

Further information
The following are only a small selection of recent
documents in the core Service and Management
supplement; representing a sample of the larger
collection of PM documents:
PAS 1192-2:2013 Specification for information
management for the capital/delivery phase of
construction projects using building information
modelling
BS ISO 21500:2012 Guidance on project management
BS 6079-1:2010 Project management. Principles and
guidelines for the management of projects
BS EN 31010:2010 Risk management - risk assessment
techniques
BS ISO 31000:2009 Risk management - principles and
guidelines
Guide to using the RIBA plan of work 2013
BSRIA BG 38/2012 Soft landings core principles
Planning Inspectorate Working with public bodies working with public bodies in the infrastructure planning
process. Version 3, April 2012 (Advice Note 11)
NBS Technical Article Basics of risk management
CRC Press Project management. Systems, principles,
and applications
Architectural Press Green construction project
management and cost oversight
CIRIA Publication RP978 Implementing lean in
construction: overview of CIRIA's guides and a brief
introduction to lean
CIC/BIM INS Best practice guide for professional
insurance when using building information models:
Agreement and contract conditions

October 2013
Michael Smith is a member of the Construction
Information Service editorial team. He is a chartered
information specialist (MCLIP) and chartered
environmentalist (CEnv).

Written by NBS for The Construction Information Service

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