Project Governance: Structure, Responsibilities, and Phases

This article provides a comprehensive guide on project governance for construction companies. It covers the meaning of project governance, recommended governance structure, responsibilities of individuals, and project phases. The article also emphasizes the importance of effective project governance for construction organizations.

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Project governance
Institution
Student name
Date

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Executive summary
This article is written with an objective of delivering a report to the chief executive
officer and the board of governance on the information necessary for installing effective project
governance and the responsibility assigned to the individuals of the organization as well as the
project life cycle.
The report herein focuses on the governance of the project. The information and data
used are dedicated to a construction company that is capital intensive; hence, the assumptions
made are specific to the organization, thus limiting the report from the universal application.

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Table of Contents
Introduction.................................................................................................................................................4
Meaning of project governance..................................................................................................................4
Recommended project governance structure.............................................................................................5
Establish a single accountability point.....................................................................................................6
Appointing stakeholders and working groups.........................................................................................6
Implementing the right system...............................................................................................................6
Regular monitoring..................................................................................................................................7
Maintain the focus on the delivery of the project...................................................................................7
Why the structure.......................................................................................................................................8
Responsibilities of the individuals in the construction project....................................................................8
The owner or the client or the shareholders...........................................................................................8
Architect..................................................................................................................................................8
Facility manager......................................................................................................................................9
Health and safety inspector.....................................................................................................................9
Construction workers..............................................................................................................................9
Project Phases.............................................................................................................................................9
Initiation....................................................................................................................................................10
Planning.....................................................................................................................................................12
Steps in project planning...........................................................................................................................12
Execution phase........................................................................................................................................13
Closure phase............................................................................................................................................14
The project steering committee and operation procedure.......................................................................16
Terms of reference for the project steering committee............................................................................16
Policies and procedure as to how PSC operates........................................................................................17
Conclusion.................................................................................................................................................17
Reference..................................................................................................................................................18

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Introduction
Capital intensive organization in the construction filed are usually granted the tenders for
construction, repair, and upgrading if not a renovation of the large structures in both size and
complexity, either under the government of the state, corporates or even individuals. These
projects involve irrigation water harvesting and supply, road and bridges construction, buildings
among other structures of considerable size and complexity (Badewi, & Shehab, 2016).
Meaning of project governance
Experts define project governance as the framework designed and installed in the
construction organization to prove the managers and the leaders with the competent structure of
the organization to adopt in matters human resource hierarchy, leadership, and management. The
framework also provides the management with vital information on how to manage the processes
in the organization as far as matter construction is concerned (Müller, Zhai, & Wang, 2017).
Quick and random decision making in construction works subjects the construction
organization to risks of high finance misuse and development of structures that fails to prove
expertise in the development process despite high use of the organization resources. The
engineering decision-making process has to take a well-defined model accounting on the cost the
organization will suffer loss and reputation in case it was tendered to construct a water reservoir
or a bridge only to collapse months later after finishing the construction (Jouini, Midler, &
Silberzahn, 2016).
Organizations with a well-developed decision-making structure have the capability of
developing structures that are appealing in look and quality. The design of the project also proves

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expertise; hence, the quality is competent. Misuses of funds, human capital, and other physical
resources are also reduced by a significant margin on account of sound decision-making and
proper management. Robust decision-making, where the process is structured and the carried out
as a process rather than an instant activity helps the management to estimate the requirement of
the project in terms of funds, human capital and other resources the project needs to complete
within the estimated budget and time for effectiveness (Wu, Wang, Chen, 2017).
Besides the capital, human resource, processes, and the decision-making model,
stakeholders, procedures, standards are also vital aspects of the construction project governance
the responsibility of these aspects of the project are discussed later in this report.
Project governance tables the responsibilities of the individuals, making them aware of
what is expected of them and the flow of communication between the members of any category
in the organization facilitating smoothness in running of the processes. Communication is crucial
in the project for the purpose of disseminating knowledge, sharing ideas, giving instruction and
solving difference hence effective communication is vital to the organization, and it is only
achievable through the understanding of individual’s role and responsibilities hence the
communication channel and model adopted in the organization (Bruno, Gelderman, Lambrechts,
& Semeijn, 2018).
Recommended project governance structure
Robust project governance requires the construction organization to adapt to an efficient
governance structure to ensure a streamlined working environment. The structure best structure
of governance in the organization is achieved through consideration of the critical areas of
projects implementers to ensure efficiency.

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Establish a single accountability point
Accountability is critical in the capital intensive organization. Lack of accountability on
individual or office subjects the organization to the crisis of performance since no individual is
accountable to poor performance in any aspect (Muller, 2017). The organization is a no
exception on the matter that of having the responsible personnel’s indecision on areas like the
flow of work, resources allocation, communication from the endless list of the factors of
consideration in an organization.
Appointing stakeholders and working groups
The project manager should select individuals or organizations that they will work with
to deliver the project at hand. The selection should be very categorical and has to be done on the
criteria of the possibility of the stakeholders to deliver as opposed to knowing each other for a
long time. It is believed that too many cooks destroy the broth (Chih, & Zwikael, 2015. The
selected shareholders should have the capacity to deliver; the number of shareholders should be
sufficient but not excess. Involving too many stakeholders in the organization implies that the
decision-making process will take a long time as the individuals are trying to consult one
another. The time wasted will eat up to the operation time hence affecting the project delivery
within the timeline estimated in the planning phase of the project.
Below is a graphical representation showing the effectiveness of shareholders in the
completion of the project.

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Implementing the right system
The systems used in the governance structure should be efficient in existence in the respective
fields. The system, especially in the finance department, should have the highest competence to
handle the financial needs of the organization (Gil, & Pinto, 2016). The weak system would
encourage fund misuse and embezzlement which will consequently subject the organization to
critical financial status hence failure to deliver the project at all or deliver the project at a cost
exceeding the budget of the project.
Regular monitoring
Monitoring of the project progress is essential not only in the significant projects but also
the small ones. Failure to excise regular project monitoring is almost similar to giving up in the
project as if the organization is ready to suffer the loss of the project. People work very.
Differently, some will deliver low-quality services in the process of the project realization due to
lack of the necessary competence in the project. The management has to either coach the
employee on the effective service delivery or even replace him if coaching seems to be a less
efficacious remedy (Musawir, Serra, Zwikael, & Ali, 2017)
Other employees deliver poor quality intentionally to cause loss to the organization on
the ground of malicious and ill motif while other will deliver poor quality as a means of
expression of their dissatisfaction and or anger of the human resource. Monitoring the process
enables the management to identify the factors affecting the employees hence formulating the
strategy for solving the issues affecting the human resource of the construction organization
(Roo, & Porter, 2016).

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Maintain the focus on the delivery of the project
Deviation from the scope of the project is one of the mains causes of project failure on
the grounds of resources wastage; hence, the project surpasses the budget by the time it is
completed. The deviation also eats up the project implementation time, causing the project to
finish time to go past the time allocated to the project (Turner, 2016).
Why the structure
The structure in the above discussion reduces the inefficiency that could be derived from
taking long in decision making due to the involvement of a large number of stakeholders. The
structure also reduces the financial crisis due to misuse of the funds on account of using
unsuitable financial system. Maintaining the scope of the project enables the management to
ensure there is less deviation from the scope of the project hence avoiding the loss of resources
and time wastage due to the loss of the scope.
Monitoring the project is also vital, and the management uses this strategy to evaluate the
quality of the project being delivered right from the foundation of the project (Hu, Le, Gao, Li, &
Liu, 2018).
Responsibilities of the individuals in the construction project
Construction project implementation is done through the collaboration of individuals with
various responsibilities at work in the project. The following are among the leading individuals
in the organization, and the discussed is their responsibility at work.

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The owner or the client or the shareholders
This is the person who owns the project. He is responsible for funding every aspect of the
project, including the materials and the labor supply. The owner may be an individual,
Government, or a group.
Architect
This is the person responsible for the monitoring of the constructions work to ensure the
project is delivered according to the plan of the project in every step (Badewi, 2016).
Facility manager
He is likely the person who is involved in the highest thinking level for the project. His
responsibility is the construction works is to make a project plan on the timeline, quality, and the
budget. In most cases, they work for the client on a lease. He also decides on the systems to be
used and designate inventory monitor.
Health and safety inspector
The health of the human resource must be put at the frontline of the priorities in the
organization. Construction works are risky and hazardous to work at. The health inspector is
responsible for giving health advice and recommending the safety measure the human resource
and the management should employ.
Construction workers
Human resource is one of the most critical aspects of the organization regardless of
whether the construction company is capital intensive or uses artificial intelligence. The human

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resource in the construction works is responsible for the actual construction of the actual
structures in the project (Hart, & Bubb, 2016).
Project Phases
Every project has a start, the middle or the continuation phase as well as the end of the
project. When the project is small, the management or an individual can handle all the phases of
the project as opposed to big projects where the management may is forced to dividend into
departments to handle the task at hand or even hire experts where the expertise available in the
organization. Handling the project blindly without breaking it into phases halts the competence
of the project, and the outcome is always faced by incompetence’s, funds, and resources misuse.
Understanding the project and dividing it into phases ease the understanding of the project hence,
management, control, and oversight until the project is initiated and completed (Joslin, & Müller,
2015).
On research on the performance of American based project, the findings claim that of one
billion invested in developing a project, a hundred and twenty-two million is wasted in the
process due to poor performance. Further, it claims that, of the failed projects, 57% of them are
as a result of poor communication due to the unfortunate breakdown of the project.
The main phases of the project worth discussion in this report include;
a) Initiation
b) Planning
c) Execution

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d) And the closure of the project
Some projects include the fifth phase known as control. In this report, this phase will be covered
under the execution phase. The control of the project is mainly exercised in the execution phase.
Initiation
This is the first most phase of the project and stands out as it gives the management the
way forward and how to handle the project. In this phase, the management identifies the business
need or the opportunity which is at times referred to as the problem of the organization. Here the
management identifies whether the project at hands is a dam construction, a transport route of a
train or road or a mansion. The management brainstorms on how the organization can meet the
goals of the project. The project is first realized and painted in the minds of the management of
the developers (Kahler, 2015).
The management of the construction organization determines the feasibility of the
project, along with the major deliverables of the project. Different projects have different
milestones hence the disparity in the process of realizing the project. The project theory claims
the project is realized in mind and switched to reality in the actual project.
This phase is critical and must come first in all chances. The phase gives the management
an imaginary outline of the actual project. The essence of this phase is found on the argument of
a person ready to travel in search of something. The first thing to do is to identify the direction of
travel; the initial phase resembles the direction (Kerzner, 2017).
The following are the significant steps in the project initiation phase:

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a) Undertaking the feasibility study to identify the primary goals of the project in terms of the
problem, the project will solve.
b) Defining the extent in depth and breadth of the project in regards to scope.
c) Highlighting the deliverable of the by defining the services the structure will provide.
d) Defining the stakeholders and how the project affects them.
e) Development of the business for the project by analyzing the potential benefits of the
project against the cost to be incurred for the project realization.
Planning
After the approval of the project initiation stage document, the next step to undertake is
planning of the project, where the project is broken down to numerous small tasks, and the teams
are built and assigned the responsibility of handling it to complete up to a particular stage. This
implies that smaller goals within the big goal of the whole project. The teams formed are also
inspired and empowered to accomplish the sub-goals of the project (Kujala, Aaltonen, Gotcheva,
& Pekuri, 2016.
Steps in project planning
The project plan phase includes identification of the project timeline and the tasks to be
performed as well as the likely possible constraints. At this phase, the workflow documented to
visualize the timeline for the project through diagramming the critical milestone for the project.

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The timeline for the whole project is arrived at through an analysis of the time taken to
accomplish each sub-goal of the project.
The budget of the project has to be estimated and evaluated to determine the project
business case hence determining the project return on the investment. Finally, the management
gathers the resources needed to undertake the project. The resources in this note include all the
software’s, hardware’s, and the experts to manage and use the tools in the construction activities.
In the same scenario, the management also identifies and strategies how to handle the risks that
may stall the project, thus affecting the project timeline hence the budget (Müller, Andersen, &
OLE, 2016).
This is the stage where the members expected to participate in the project are brought to
the board, and the kick-off meeting is conducted. The essential tips of work to the individuals is
addressed and the rules governing the working environment. From this meeting, the human
resource and the other resources involved in the work of construction are expected in the site.
Execution phase
This is usually the third phase of the project and happens to be the one with most human
activity hence likely to take longer time than any other phase. Here the project has already been
approved, and the teams of work have already been developed, and every individual knows his
role at work hence physically involved in the realization of the goal of the project. The leaders
and the manager are deeply involved in the leadership and management activity
(Sirisomboonsuk, Gu, Cao, & Burns, 2018).

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The leaders in this phase are involved in inspiring, coaching, and motivating the human
resource in the project at the various and respective tasks assigned to. The managers, on the other
hand, are busy exercising the managerial duties of controlling, coordinating, and planning of the
activities of the project as a measure to ensure the project is delivered within the estimated
budget and the timeline. This enables the management to realize the actual project within the
estimated resources enables the management to avoid the losses emanating from the misuse of
resources (Murphy, Lyytinen, & Somers, 2018).
The management and the leaders play a significant role in this phase by ensuring the
workflow of the project is well organized by making sure the individuals assigned a particular
task have competence on it and the rate and hours of work areas estimated. This ensures the
workers neither under work or overwork as a measure of observing the human resource
productivity theory that argues the productivity of human capital is based on the motivation
factor rather than close monitoring and slavery-like working environment.
The leaders create the vision of the project and disseminate the vision to the minor
employee’s. They also provide guidance, coaching, and motivation to the personnel’s to make
sure the running of the project is smooth. The inspiration and motivation are meant to bring the
individuals together and work as a team aiming for a particular single goal.
As depicted earlier in this report, about 57% of the failed American based construction
projects fail on the ground of poor communication and poor communication structure adoption,
the management, therefore, participate in constructive and effective communication with the
human resource of the organization as a strategy of obtaining the pieces of information that could

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have a negative implication in running of the project in order to formulate the strategy to handle
the situation (Samset, & Volden, 2016).
People have a disparity in motives at work. Even the so-called experts behave differently
and would deliver poor quality of the work they are assigned to intentionally to enjoy seeing the
project fail or as a means of expressing themselves on matter dissatisfaction of the working
environment or the amount of pay they are entitled. The managers practice monitoring the
project running to ensure the quality of the work delivered is of the desired quality.
Closure phase
This is the last phase of the project (Sjøberg, 2015) It’s vital and involves evaluation of
the general performance on the project delivering and identifying what worked out more quickly
than expected and what failed to work out. Completing of the significant areas of the project
does not imply that the work of the manager is complete; the manager has to ensure that the
project is evaluated to determine the efficiency and the complications that affected the process of
delivering the project. The manager identifies the areas that they could halt the process of
delivering the project and document it for use or application in other projects by others to create
efficiency.
At this particular phase, the project manager conducts an in-depth analysis of the project
to identify whether the project goals as per the client's requirement are delivered and within the
budget of the client and the timeline (Sha, 2016). If the project goals are delivered within the
budget and the timeline, the manager classifies it as a successful project; otherwise, the project is
classified as a failed project. The classification goes further on the return of the project; in this
note, the project initially classified as failure could result in a considerable return, unlike the

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initially classified as a successful project. For the word limit in this assignment, the report will
not detail this classification.
The manager also conducts the analysis on the performance and the behavior of the
human resource in the process of delivering the project. The employee’s behavior, including the
cases of the general discipline, is documented on all avenues. At this case, if the employees once
rioted or thanked the management, the manager documents this for the analysis of the general
performance in the project delivering. The performance of the project is graded not only on the
ground of the design and attainment of the goal of the structure but also the losses made and the
conduct of the human resource (Shah, Coathup, Teare, Forgie, Giordano, Hansen, Groeneveld,
Hudson, Pearson, Ruetten, & Kaye, 2019).
The phase is critical as it is the phase at which the manager accounts for the available
budget of the project. On the same note, it is essential to appreciate the fact some waste material
in the construction site have monetary value and have to be realized as a measure for lean
production. These wastes include the broken and unused metal and plastic pieces that are worth
recycling. Other materials are left intact hence do not fall under the category of the waste
products. The intensive projects require the organization to have its physical capital like the
vehicles, caterpillars, and other machinery that are in a position of giving out more services in a
different project.
The project steering committee and operation procedure
This is a group of experts in the construction works that performs the duty of advising the
client, the stakeholders or the owner of the project guiding them on the different events to be
carried out in the organization. The activities include the budget, marketing, management of the

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construction project, and the matters that may arise in the project (Müller, Shao, & Pemsel,
2016).
Terms of reference for the project steering committee
The committee faces the challenges of the increased level of bargaining powers, thus
altering the budget of the project to the point of losing the meaning of the predicted budget. Also,
the clients and the hired managers may have variance in the objectives and the view of positivity
hence making it challenging to give advisory services.

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Policies and procedure as to how PSC operates
This committee aims to ensure the successful delivery of the project and the
maximization of the benefits of the project. The committee policy is to provide the project is
monitored in to reduce the risk of project loss. This is achieved through procedural advice and
decision making on behalf of the client. The committee also is responsible for maintenance of a
good relationship between the project and the organization which is achieved through resolving
issues with the authority and the project management. Lastly, the committee plays hard to ensure
the project implementers are provided with the necessary resources through the provision of the
advisory services to ensure the different role players are informed and have adequate knowledge
of the project.
The central policies involved are the establishment of the means to measure the benefit of
the project and how to attain the given bonus. The other significant system is to monitor the
progress of the project to ensure that everything is in line with the expectation of the
stakeholders.
Conclusion
The report details the construction project building blocks. It gives a deep insight into the
project governance and what it entails as well as how it is implemented. The report further
suggests the most suitable governance on the construction project with an explanation of the
critical areas to put into consideration in the development of the governance structure. The
explanation on the report also gives an eye on the individuals involved in the construction project
and the responsibility they are entitled to in the construction project.

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The report is also dedicated to explaining the four central pillar or phases of the project.
The phases are explained on the tasks performed on each and the responsibility of the individuals
on each phase. Lastly, the report highlights the roles and challenges of the project steering
committee.
The recommendation to any construction project manager is to adopt the efficient
governance structure of the project. Also, the project should be divided into the four main phases
for efficiency and ease in monitoring.
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