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TitleConstruction management for industrial projects : a modular guide for project managers
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Table of Contents
                            Construction Management for Industrial Projects: A Modular Guide for Project Managers
	Contents
	Preface
	1. Introduction
	2. Project Management
		2.1 The Principle of Project Management
		2.2 Project Characteristics
		2.3 Project Life Cycle
			2.3.1 Initiation of the Project
				2.3.1.1 Getting to the Scope Baseline
			2.3.2 Feasibility Study
			2.3.3 Feed (Preliminary) Engineering
			2.3.4 Detail Engineering
			2.3.5 Decision Support Package
				2.3.5.1 What Is the DSP?
				2.3.5.2 Executive Summary
				2.3.5.3 DSP Notification Document
				2.3.5.4 DSP Reference Document
				2.3.5.5 Why Is It Important?
				2.3.5.6 How Can We Implement this Document?
				2.3.5.7 When Is the Reasonable Time?
				2.3.5.8 Who Is Responsible for this Document?
			2.3.6 Design Management
			2.3.7 Execution Phase
			2.3.8 Commissioning and Startup
		2.4 Is this Project Successful?
			2.4.1 Project Management Goals
				2.4.1.1 Project Integration Management
				2.4.1.2 Project Scope Management
				2.4.1.3 Project Time Management
				2.4.1.4 Project Cost Management
				2.4.1.5 Project Quality Management
				2.4.1.6 Project Human Resource Management
				2.4.1.7 Project Communications Management
				2.4.1.8 Project Risk Management
				2.4.1.9 Project Procurement Management
		2.5 Project Management Tasks
			2.5.1 Define the Project Target
			2.5.2 Define the Scope of Work
			2.5.3 Define the Time Frame
			2.5.4 Define the Available Resources
			2.5.5 Define the Cost
			2.5.6 Evaluate the Master Plan
			2.5.7 Accept the Master Plan
			2.5.8 Schedule Follow Up
			2.5.9 Cost Follow up
			2.5.10 Comparing Between Actual Work and Master Plan Cost
			2.5.11 Performance Evaluation
		2.6 Project Manager Skill
	3. Economic Risk Analysis
		3.1 Introduction
		3.2 Project Cash How
			3.2.1 Depreciation Methods
				3.2.1.1 Straight-Line Method
				3.2.1.2 Declining-Balance Method
				3.2.1.3 Sum-of-the-Year-Digits
				3.2.1.4 Sinking-Fund Method
				3.2.1.5 Service-Out Method
			3.2.2 Method of Net Present Value (NPV)
				3.2.2.1 Inflation Rate
			3.2.3 Minimum Internal Rate of Return (MIRR)
			3.2.4 Payout Method
		3.3 Economic Risk Assessment
			3.3.1 Probability Theory
			3.3.2 Probability Distribution of Variables
				3.3.2.1 Normal Distribution
				3.3.2.2 Log Normal Distribution
				3.3.2.3 Binominal Distribution
				3.3.2.4 Poisson Distribution
				3.3.2.5 Weibull Distribution (Rayleigh Distribution)
				3.3.2.6 Gamma Distribution
				3.3.2.7 Logistic Distribution
				3.3.2.8 Extreme Value (Gumbel Distribution)
				3.3.2.9 Pareto Distribution
			3.3.3 Distribution for Uncertainty Parameters
				3.3.3.1 Triangular Distribution
				3.3.3.2 Uniform Distribution
			3.3.4 Choosing the Appropriate Probability Distribution
				3.3.4.1 Chi-Square Test
		3.4 Decision Tree
		3.5 Monte-Carlo Simulation Technique
		3.6 Risk Adjusted Value (RAV)
	4. Time Planning
		4.1 Introduction
			4.1.1 Plan Single Point of Accountability (SPA)
			4.1.2 Starting the Plan
			4.1.3 Work Breakdown Structure (WBS)
		4.2 Responsibilities of the Team
		4.3 Expected Activity Time Period
		4.4 Calculating the Activity Time Period
		4.5 Time Schedule Preparation
			4.5.1 Gantt Chart
			4.5.2 Arrow Diagram Method (ADM)
			4.5.3 Precedence Diagram Method (PDM)
			4.5.4 Critical Path Method (CPM)
			4.5.5 Program Evaluation and Review Technique (PERT)
			4.5.6 Example
			4.5.7 Application of the PERT Method
				4.5.7.1 Statistics Calculation for Activity Time
				4.5.7.2 Example
		4.6 Planning Overview
	5. Resource Management
		5.1 Introduction
		5.2 Project Organization
			5.2.1 Types of Organization
				5.2.1.1 Project Organization as Part of the Company
				5.2.1.2 Independent Project Organization
				5.2.1.3 Matrix Organization
			5.2.2 Selecting the Best Organization
		5.3 Roles and Responsibilities of the Project Manager
			5.3.1 Project Manager as a Leader
		5.4 Administrative Organization for Total Quality Management
		5.5 Team Member Selection
		5.6 Managing the Team
		5.7 Allocate Resources to Project Plan
			5.7.1 Example
		5.8 Relation Between Project Parties
		5.9 Document and Information Transfer
		5.10 Information Transfer
		5.11 Quality Control in the Design Phase
			5.11.1 Inputs and Outputs of the Design Phase
			5.11.2 Design Verification
			5.11.3 Change in the Design
			5.11.4 Approval of the Design
	6. Cost Management
		6.1 Introduction
		6.2 Cost Types
			6.2.1 Cost Estimate
				6.2.1.1 Top-Down Estimates
				6.2.1.2 Bottom-Up Estimates
				6.2.1.3 Analogous Estimates
				6.2.1.4 Parametric Estimates
			6.2.2 Steel Structure Cost Estimate
			6.2.3 Detailed Cost
			6.2.4 Cost Estimate to Project Control
		6.3 Economic Analysis of Project Cost
			6.3.1 Work Breakdown Structure (WBS)
			6.3.2 Organization Breakdown Structure (OBS)
			6.3.3 OBS/WBS Matrix
			6.3.4 Work Packages
			6.3.5 Cost Control
			6.3.6 "S" Curve
		6.4 Cash Flow Calculation
			6.4.1 Project Cash Flow
			6.4.2 Impact on Increasing Cost
			6.4.3 Project Lateness Impact
			6.4.4 Impact of Operational Efficiency
	7. Bidding, Tenders, and Contracts
		7.1 Introduction
		7.2 Contracts
			7.2.1 The Measured Contract
			7.2.2 The Lump-Sum Contract
			7.2.3 The Cost-Plus Contract
		7.3 Contracts Between an Owner and an Engineering Consultancy Office
		7.4 The Importance of Contracts for Project Quality Assurance (QA)
		7.5 Contracts in ISO
		7.6 FIDIC Contracts
		7.7 General Conditions in Contracts
		7.8 Arbitration and the Arbitrator
		7.9 Bids and Tenders
			7.9.1 Public (Open) Tender
			7.9.2 Limited Tender
			7.9.3 Negotiated Tender
			7.9.4 The Direct-Order Tender
			7.9.5 Tender Technical Evaluation
			7.9.6 Commercial Evaluation
				7.9.6.1 Commercial Evaluation Methods
		7.10 Closeout Report
	8. Quality — From Theory to Reality
		8.1 Introduction
		8.2 Quality Management Systems
		8.3 The ISO 9000 Standard
		8.4 Quality Management Requirements
			8.4.1 Quality Manual
			8.4.2 Quality Plan
			8.4.3 Quality Control
				8.4.3.1 Why Is Quality Control Important?
				8.4.3.2 Submittal Data
				8.4.3.3 How to Check Incoming Materials
				8.4.3.4 Methods of Laying Out and Checking Work
				8.4.3.5 Material /Equipment Compliance Tests
				8.4.3.6 When to Inspect Work
				8.4.3.7 Paperwork/Documentation
				8.4.3.8 Quality Control Plans
			8.4.4 Quality Assurance
				8.4.4.1 Quality Assurance in the ISO
				8.4.4.2 The Responsibility of the Manufacturer
				8.4.4.3 Responsibility of the Owner
		8.5 Project Quality Control in Various Stages
			8.5.1 Feasibility Study Stage
			8.5.2 Quality Considerations During FEED (Front-End Engineering and Design) Preliminaries
			8.5.3 Quality Considerations of Detailed Study
				8.5.3.1 Design Quality Control
			8.5.4 Execution Phase
				8.5.4.1 ISO and Control Work
				8.5.4.2 Inspection Procedures
				8.5.4.3 Importance of Well-Prepared Contracts in Assuring Project Quality
				8.5.4.4 Checklists
		8.6 Operational Phase of the Project
		8.7 The "Total Building Commissioning System"
			8.7.1 Planning Stage
				8.7.1.1 Identifying the Commissioning Team
				8.7.1.2 Defining the Owner's Project Requirements with the Customer Agency
				8.7.1.3 Developing Preliminary Commissioning Plan
				8.7.1.4 Commissioning for Certifications (LEED, Energy Star, etc.)
				8.7.1.5 Commissioning Agent Costs
				8.7.1.6 Cost-Benefit Analysis for Commissioning
			8.7.2 Design Stage
				8.7.2.1 Incorporation of Commissioning into A/E and CM Scope of Services
			8.7.3 Construction Stage
				8.7.3.1 Review Submittals for Performance Parameters
				8.7.3.2 Develop and Utilize Construction Checklists
				8.7.3.3 Oversee and Document Functional Performance Testing
				8.7.3.4 Test Data Records
				8.7.3.5 Hold Commissioning Team Meetings and Report Progress
				8.7.3.6 Conduct Owner Training
				8.7.3.7 Turnover Commissioning Record
			8.7.4 Building Commissioning Process in the Post-Construction Stage
				8.7.4.1 Post-Construction Stage
				8.7.4.2 Perform Deferred and Seasonal Testing
				8.7.4.3 Re-inspect/Review Performance Before End of Warranty Period
				8.7.4.4 Complete Final Commissioning Report
				8.7.4.5 Recommission Facility Every 3–5 Years
				8.7.4.6 Recommissioning
			8.7.5 Advantages for Total Building Commissioning System
	9. Project Risk Management
		9.1 Introduction
			9.1.1 The Risk Management Process
		9.2 Project Risks
		9.3 Risk Assessment
		9.4 Risk Identification
			9.4.1 Methods of Defining Risk
				9.4.1.1 Brainstorming
				9.4.1.2 Delphi Technique
				9.4.1.3 Nominal Group Technique
				9.4.1.4 Crawford's Slip
				9.4.1.5 Expert Interviews
				9.4.1.6 Root Cause Identification
				9.4.1.7 Checklists
				9.4.1.8 Documentation Review
				9.4.1.9 SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis
				9.4.1.10 Analogy
			9.4.2 Grouping of Risks
		9.5 Defining Priorities
			9.5.1 Matrix Method
			9.5.2 Tabulated Method
		9.6 Risk Response Planning and Strategies
		9.7 Risk Monitoring and Control
		9.8 Example
		9.9 Methods of Risk Avoidance
	10. Quiz for Project Management
		10.1 Introduction
		10.2 Questions
		10.3 The Right Decisions
	References
	Index
	About the Author
                        

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