Project Organization organization is to establish organization the work to be done the people doing work the work place(s)    The main objective of Project the relationship among: Contractual and Organizational Approaches Contractual and Organizational . involves internal organization of personnel. involves internal organization involved number of organizations relationship between the organizations be involved in the when each organization project Defining The Organization     1. within the firm 2. other firms With i.e. electronics, software, i.e. electronics,

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Project Organization Works Best When Best Works Organization Project 1. can be defined with a specific goal and deadline Work 2. The job is unique or somewhat unfamiliar to the existing 3. The work contains complex interrelated tasks requiring 4. The project is temporary but critical to the organization 5. lines The project cuts across organizational and costs Coordinates activities Monitors schedule   Often temporary structure Uses specialists from entire company Headed by project manager Permanent structure called ‘matrix organization’   Project Organization Characteristics Project   Matrix Organization Marketing Operations Engineering Finance 1 2 3 4

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Balanced Matrix VS Strong Matrix Organization Matrix VS Strong Balanced Matrix Project Participants Project material and equipment supplier construction manager general and subcontractors, A/E consultant and architecture engineering o o o o the Owner: the Contractor: the designer:   The main participants of a project are: The main participants of a project  Organizational Types 1.Traditional 2.Owner-Builder 3.Turnkey 4.Professional Construction Manager Four principal structures of contractual relationship between the project participants: Organizational Types lly in an adversary position with disputes and may drive-up costs. time is usually the longest.

Organizational Types general contractor (maximum vs. minimum quality). contract. 4. Change orders will often end in 3. The owner and the designer are usua 1. Design may not benefit from construction expertise. 2. Overall design-construct 1.and historically supported. accepted Widely 2. Using lump-sum the overall cost can be determined before awarding the 1. Traditional Advantages: 3. Minimal involvement of the owner during construction. 4. Design-construct time can be reduced using phased construction. Disadvantages: Organizational Types Organizational Types constant over a period of time. period constant over a operational management. and the traditional approach. the professional construction manager, 2. Justified where the project management can be separated from 3. can employ all techniques of The the design-constructor, owner-builder 2. The Owner-Builder Advantages: 1. Justified when the volume of and work relatively is relatively large Organizational Types Organizational Types furnished by a single organization. a single furnished by profit. to ensure be affected the schedule or the cost. problems that may affect 1.and know-how Design, construction, are owner. Only one contract for the 1. Usually cost cannot be determined before construction. 2. If the project cost is fixed price, overall and quality performance may 3. Turnkey 3. Turnkey Advantages: 2. Minimal owner coordination -dealing with a single organization. 3. Appropriate for unknowledgeable owner. 4. Design-construct time can be reduced through using phased construction. 5. expertise can Construction be utilized during design phased construction. 6. Change orders are easy to handle. Disadvantages: 3. The owner may not be informed if there is a design or construction Organizational Types r modifications helps assure decisions in les, and overall construction performance, r approach allows price competition from can be achieved through use of phased

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4. Professional Construction Manager 4. Professional local contractors akin to the traditional lump-sum or unit-price methods. and award phases. construction. including similar evaluation forthe changes best o interest of the owner. conflicts of interest between the owner and the designer. 6. Significant opportunities are provided for value engineering in the design, bidding, 5. The professional construction manage 3. Full-time coordination between design and4. the Minimum construction contractors is design-construction available. time Advantages: 1. Special construction skills may be2. utilized Independent at evaluation all of costs, stages schedu of the project with no