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Evaluating Project Performance Using Six to Eight Evaluation Tactics

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Added on  2019/12/03

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The effective project plan has helped in completing the construction of a building within the given limitations and cost of £1,000,000. The project was completed within 3 months using Gantt charts and earned value analysis to assess its performance. It is essential to evaluate the change control process at the completion stage of the project.

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TABLE OF CONTENTS
introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
1.1 Background and principles of project management (impact of principles on project
success).......................................................................................................................................4
1.2 Viability of projects and developing success and failure criteria...................................5
1.3 Principles behind project management system and procedures....................................6
1.4 Key Elements involved in terminating projects and conducting Post Project
Appraisals..................................................................................................................................7
Task 2...............................................................................................................................................8
2.1 Organizational structure, roles and responsibilities of participants within a project..8
2.2 Control and coordination of project..................................................................................9
2.3 Assessment of the project requirements and qualities..................................................10
2.4 Plan and specify human resources and requirements of a project...............................11
Task 3.............................................................................................................................................14
3.1 Project plans and project organizations (_as per the guideline)..................................14
3.2 Project scheduling, estimating and const control techniques.......................................16
3.3 Analysis of the methods used to measure project performance...................................18
3.4 Project change control procedures and evaluation of the complete project................19
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
Appendix 1.....................................................................................................................................24
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TABLE OF FIGURES
Figure 1: Project leadership requirements.....................................................................................10
Figure 2: Gantt chart for Ramboll construction project................................................................14
Figure 3: Network diagram for construction project of RAMBOLL company.............................14
Figure 4: Work Break down structure of construction project of RAMBOLL.............................17
TABLE OF TABLES
Table 1: Net Present Value of project..............................................................................................5
Table 2: Difference of project leader and manager.......................................................................11
Table 3: Project plan......................................................................................................................15
Table 4: Personal and job specification of project manager..........................................................24
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INTRODUCTION
Project management can be defined as application of skills and knowledge in managing
and controlling different activities of a project (Andersen, Dysvik and Vaagaasar, 2009). The
current research report is based on project management. It comprises different tools, process,
plans, methods and techniques with respect to manage a project. It is based on a case study of
RAMBOLL organization which is a well known consultancy and construction organization of
London. It offers integrated services of project management, consultancy and service
management (Chiu-Chi and et.al, 2013). This organization has received construction project. So,
research will discuss project management principles and their important for managing different
activities of this organization. Further, it includes roles and responsibilities of different team
members of the organization. Including this, study focuses on different tools and techniques for
scheduling. Estimating and controlling cost of the whole project.
TASK 1
1.1 Background and principles of project management (impact of principles
on project success)
Background:
Cervone (2006) has asserted that “project management can be defined as a process which
includes application of knowledge, skills, tools and techniques to satisfy the needs of a project”
(Cervone, 2006). Along with this, Darren, 2012 has concluded that “project management is
required for satisfying the expectations and demands of all stakeholders” (Darren, 2012). In
addition, managing time, cost, scope and quality are also considered as major activities of the
whole project. As per the given information RAMBOLL organization has got a contract from
University of Bergen, Norway, to transform an industrial building into a functional and
university building for their Arts faculty. Budget for this project is £1,000,000 and assigned time
is 6 months (Greasley, 2007). Project management team can use three months for developing
plan for whole project.
Principles of project management:
Project management is based on some basic principles which include initiation, planning,
execution, monitoring and control and closing. Therefore, initiating the construction project is
one of the major principles of the current project (Dey, Clegg and Bennett, 2010). Afterwards,

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project team will focus on appropriate planning of different activities for completing objectives.
Including this, appropriate execution of project plan will help in satisfying the project
specification. Along with this, monitoring and controlling of whole process group is also
considered as project management principle (Hobbs, 2009). Formal closure of all activities and
measuring performance of the project helps assessing success and failure criteria of whole
project. The major impact of project management principles can be seen in form of the effective
execution of planning, monitoring and controlling activities (Greasley, 2007). By applying
project management principles, RAMBOLL organization will be able to university building
project effectively.
1.2 Viability of projects and developing success and failure criteria
Viability of the project is considered as value of return and profitability from the
investment project. There are different methods of investments appraisal by which manager can
determine the project viability. NPV and Payback period methods are most appropriate for
checking viability (Kloppenborg, 2011). NPV helps in determining the net present value of the
future cash flow of project. Positive NPV shows the profitability and negative NPV shows that
project will not be profitable for organization. On the other hand Payback period helps in
determining the period in which company will get back the amount of initial investment (Kathy
and Deborah, 2007). As per the given information, calculation of NPV and Payback period is as
follows:
Net Present Value (NPV):
Table 1: Net Present Value of project
Net Present Value of project
Years Cash Inflow Present value of 4 % Discounted Cash Inflow
@ 4 %
1 180,000 0.96 173076.92
2 180,000 0.92 166420.12
3 180,000 0.89 160019.34
4 250,000 0.85 213701.05
5 250,000 0.82 205481.78
6 250,000 0.79 197578.63
Total Discounted Cash inflow 1116277.84
Less: Initial Investments 1000000.00
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Net Present value 116277.84
Above calculation has reflected positive NPV for this investment project so, RAMBOLL
can select this project for investment purpose because it will be profitable in future.
Payback Period:
Payback Period
Years Cash Inflow Cumulative frequency
1 180,000 180000.00
2 180,000 360000.00
3 180,000 540000.00
4 250,000 790000.00
5 250,000 1040000.00
6 250,000 1290000.00
Payback period in years
4.20 years
Initial investment amount was £1,000,000 and it can be recovered by this project in 4.2
years. As well as in the discounted method (NPV), this project will be profitable for company in
coming future. So, RAMBOLL can select this project for investment purpose.
Measures of the payback period and NPV are the major criteria for determining success
and failure of project (Kumaraswamy, 2011). Along with this, calculation of time and cost will
also be comprised in the measures of project success and failure.
1.3 Principles behind project management system and procedures
Project management system can be defined in term of knowledge, skills and techniques which
are required for firm or an individual for successful execution of planning, organizing, managing,
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motivating and controlling resources functions within stipulated time. This construction project
of RAMBOLL can be completed by appropriate implementation of project management system
and procedures which are based on some basic principles. In order to successful execution of
project, it is necessary for firm to emphasize on different components including tools, resource
management and processes in a proper manner.
These principles are as follows:
Each and every team members must have appropriate knowledge of project information support
system (Knapp and et.al, 2010).
Appropriate integration and allocation of human and material resources for attaining
objectives.
Appropriate implementation of all activities is also one of the major principles of project
management system and process (Simmons, Bland and Wojciechowski, 2012).
Project team should focus on quality and cost management.
Success of project management system can be measured in form of allocation of human and
material resources, execution of processes, quality and cost management processes.
1.4 Key Elements involved in terminating projects and conducting Post
Project Appraisals
Key elements of the termination of project: Natural termination: External factors such as disaster and technical fault also lead project
termination (Levy, 2009). There are different types of natural factors such as earthquake,
tsunami, flood and disasters can terminate the construction project of RAMBOLL
organization. Similarly, failure in the technology can lead the termination of construction
of the building for organization. Unnatural termination: RAMBOLL organization should focus on different elements at
the time of terminating project. Major reasons behind the project termination will be lack
of skills and capabilities of project team, unclear goals and objectives, inappropriate

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scope of project, high cost and huge time, etc (Martin and Guerin, 2006). Along with this,
lack of human and material resources is also considered as reason of project termination.
Therefore, natural and unnatural factors can terminate the project of RAMBOLL. at the
time of termination, manager should focus on some elements such as audit reports, cost and time,
closing report, remaining work, completed activities, legal requirements and final records, etc.
Post project appraisal:
Using variance analysis RAMBOLL can analyze the post project performance. It helps in
comparing expected and actual performance of construction project (Walker, 2007).
Cost-benefit analysis has reflected that construction project will be very costly for the
organization but after completion it will provide lots of benefits to whole university.
Risk analysis is also very important task for project manager because it will help in
determining risk, and developing appropriate plan to manage these risks in effective
manner (Zwikael, 2009).
Final achievements of the project are also important method for post project appraisal.
TASK 2
2.1 Organizational structure, roles and responsibilities of participants within a
project
Matrix structure of organization will be appropriate developing appropriate building for
the arts faculty of whole university (Simmons, Bland and Wojciechowski, 2012).
Advantages:
Effective utilization of resources
Better coordination between products and projects
Sharing information and quick decision making (Hobbs, 2009)
Disadvantages:
Internal complexity
Expensive to maintain (Martin and Guerin, 2006)
Managing internal conflict
Matrix structure focuses on both different functions and departments as well as project also
(Chiu-Chi and et.al, 2013). Therefore, it will help RAMBOLL organization in increasing
coordination between team members and managers to accomplish common goal. It will be
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suitable because it will improve the efficiency in information exchange. Therefore, it will
improve communication and flexibility among team members. Overall matrix structure will
helps in attaining objectives of the project in effective manner.
Major participants of this construction project are Project manager, designer and
architecture, Construction manager and Quality analyst. Project manager will play important role
in, planning, implementation and management of activities and appropriate allocation of
resources. Responsibility of designer and architecture are developing design for university
building, library and other section (Duties of Contractors, 2015). Along with this, they are also
accountable for decoration and appearance of the whole building. Construction manager is
important for completing the construction of the whole building on time. Managing quality and
attaining all standards of quality are included in responsibilities of the quality analyst (Workers’
roles and responsibilities, 2015).
Person specification and job specification of project manager
Project manager is responsible for planning, implementation and management of activities. Job
and personal specification of project manager is defined in appendix section.
2.2 Control and coordination of project
Project control: This term can be defined in form of measuring the influence of time and
cost outcomes of a program on the data gathering and management processes of project. Work
breakdown structure is one of the major technique for controlling different activities of project.
Application of WBS is described as under:
Application of WBS (Project control technique):
Proper allocation of resources and responsibilities to the project team
Estimate the cost, time and risk associated with the university building (Levy, 2009)
By using this, project manager would be able to set project milestones and control points
Work break down structure (WBS) and Gantt chart are major tool for improving control
and coordination between project team members. WBS and Gantt chart help in increasing
communication at different level as well as also help in developing hierarchy of different
activities of the project (Construction (Design and Management) Regulations 2007, 2015).
Along with this, it is beneficial for developing association between various activities. Overall,
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WBS and Gantt chart is appropriate tool for controlling activities and coordinating project team
members of the current construction project.
Along with this, project manager also play important role in control and coordination of
the project. Project manager needs to assure about the appropriate allocation of resources and
completion task on decided time (Phases of the construction project, 2012). It will help in
monitoring and control of different activities.
2.3 Assessment of the project requirements and qualities
Independent design and expression with a strong identity and dignity are major
requirements of university building. Along with this, manager should assure about the
development of central hub and meeting place for arts faculty. New and emerging technologies
are also considered as major requirement of this project (Construction, 2015).
For fulfilling all these requirements, project manager must have appropriate leadership
and management qualities. Communication and motivation skills are necessitate for improving
coordination among team members. Along will this; manager should be capable enough to
manage conflicts and disputes at workplace. All qualities are required for managing different
activities on time and cost (Kloppenborg, 2011).
Project leadership requirements
In the context of present case scenario, project leadership skills are required for establishing
better communication with team, solving problems and enhance contribution of an individual
towards achieving success (Kloppenborg, 2011).
Figure 1: Project leadership requirements
(Source: Hobbs, 2009).

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Role of project leader
Lead the team and carry out team building activities
Solve conflicts and disputes at workplace
Improving coordination among team member (Kumaraswamy, 2011)
Difference of project leader and manager
Table 2: Difference of project leader and manager
Project manager Project leader
Emphasize on goals and objectives Focus on vision
Follow autocratic leadership style for
decision making process.
Democratic leadership style is
used by project leader to take
appropriate decisions.
Concentrate on consistency approach for
managing different activities of project
(Greasley, 2007)
Focuses on flexibility approach
for managing activities.
Project manager focuses on major
function of administration.
Innovation of different ideas and
actions for managing different
function is the major role of
project leader.
2.4 Plan and specify human resources and requirements of a project
Project manager needs to develop an appropriate plan for construction of the whole
building of university. This plan includes estimation of the resource requirements, cost and
money. Along with this, it also comprises implementation and appropriate monitoring of all
activities. Including this, project planning also focuses on requirements of client (Greasley,
2007).
A major requirement of this project is appropriate number of human resources for
managing different activities of the project. Major human resources for RAMBOLL Company
will be project manager, architecture and designer, constructor manager and quality analyst, etc
(Kathy and Deborah, 2007). Organization needs to use appropriate recruitment and selection
process for hiring personnel for organization. Along with this, skills and capabilities in human
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resources are also considered as major requirements. RAMBOLL organization should require
managing time and money in effective manner (Hobbs, 2009). Completion of all these
requirements will help in completing project on time and attaining all objectives in effective
manner.
Work packages are components that come in lowest part of WBS and it is developed during
construction and decomposition project into smaller pieces (Levy, 2009). For example,
performance measuring and control are work package which is scheduled and controlled by
project manager of RAMBOLL firm.
Responsibility assignment matrix of university building project can be described as follow.
RACI matrix for the current project of RAMBOLL is described as under:
WBS element Project team members
R-Responsible
A-
Accountable
C-Consulted
I-Informed
John [Project
Manager]
Andy
[architecture]
Grant
[constructor
manager]
Tom
[Designer ]
Breat lee
[quality
analyst]
1.1
Formulation of
project
objectives
R A C C
1.2 Project
planning
R I C R A
1.2.1 Design of
whole project
R C I A
1.3
Implementation
R I
1.3.1
Arrangement
R I A I
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of resources
1.3.2
Implementation
of project plan
R A A
1.3.3
Construction of
building
R C I R I
1. 4 Project
control
R A R I
1.4.1
Monitoring and
control
R A C I R
1.4.2
Performance
measuring
R C A I R
1.4.3 Execution R I C A I
1.4.4 Project
closer
R I
Responsibility assignment matrix is also known as RACI matrix. This matrix allocate
roles and responsibilities in terms of R-Responsible, A-Accountable, C-Consulted and I-
Informed. It includes the number of team members and their roles and responsibilities at the time
of attaining objectives. For the revised construction project major human resources are project
manager, Architecture, constructor, designer and quality analyst. All these will play different
roles as per their skills and knowledge (Levy, 2009).As per the above RACI matrix different
personnel are responsible and accountable for distinct activities of the project. Project manager
has allotted roles and responsibilities as per the skills and knowledge of every team member.
According to the above matrix project manager is responsible for every activity of the project.
Allocation of roles has helped project manager in completing every activity on time.

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TASK 3
3.1 Project plans and project organizations (_as per the guideline)
Figure 2: Gantt chart for Ramboll construction project
Figure 3: Network diagram for construction project of RAMBOLL company
Gantt chart is developed to provide detail about start and finish dates of terminal elements and
the summary of the entire project. On the other side, network diagram draws for the purpose of
defining set of activities and project flow.
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Project manager of RAMBOLL has developed a project plan in which whole activities of
construction will be completed in 90 days or 3 months. Critical path analysis and network
diagram has reflected that project will be started on 28 September 2015 and will be completed on
8th Januarys 2016. Critical path for the project has included different activities such as activities
of 2-4-6-8-10-11-12-13= 75 days. It has reflected that project can be completed in minimum 75
days and it will be the longest path of this project (Simmons, Bland and Wojciechowski, 2012).
Table 3: Project plan
S.
No Task Name Duration Start Finish Predecessors
1
Construction project
of RAMBOLL
company
75 days Mon
9/28/15 Fri 1/8/16
2 Formulation of
project objectives 5 days Mon 9/28/15 Fri 10/2/15
3 Project planning 10 days Mon
10/5/15 Fri 10/16/15
4 Project Design 10 days Mon 10/5/15 Fri 10/16/15 2
5 implementation 35 days Mon
10/19/15 Fri 12/4/15
6 Arrangement of
resources 15 days Mon
10/19/15 Fri 11/6/15 4
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7
Implementation of
construction project
plan of RAMBOLL
organization
10 days Mon
10/19/15 Fri 10/30/15 4
8 Construction of
building 20 days Mon 11/9/15 Fri 12/4/15 6
9 Project control 25 days Mon
12/7/15 Fri 1/8/16
10 Monitoring and
control 5 days Mon 12/7/15 Fri 12/11/15 7,8
11 Performance
measuring 5 days Mon
12/14/15 Fri 12/18/15 10
12 Execution 8 days Mon
12/21/15
Wed
12/30/15 10,11
13 Project close 7 days Thu
12/31/15 Fri 1/8/16 12
3.2 Project scheduling, estimating and const control techniques
Scheduling definition
Scheduling can be defined in term of project listing, milestones and activities of a project.
It can be estimated in form of budget, duration and allocation of resources. There are different
techniques which can help in estimating total time and cost for the whole project (Simmons,
Bland and Wojciechowski, 2012).. These include Project Evaluation and Review Technique
(PERT) and Crashing. Application of both techniques in current project are described as under:
PERT technique for cost control through the crashing

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This statistical technique is applied to analyze and represent the tasks involved in project. In
addition, it also provides detail about the minimum time needed to be completed project in a
significant manner (Kumaraswamy, 2011). Crashing term can be explored in term of extra
expenditures which are required to reduce the duration of an activity. Besides that, crash point
also describes the time and cost when the activity is fully crashed.
Project evaluation and review method is important for project scheduling of construction
project of RAMBOLL. Along with this, critical path analysis will be appropriate for estimating
the project duration for completing whole project (Darren, 2012). Including this, Gantt chart and
WBS are appropriate for controlling cost and time of the whole project. All these techniques are
appropriate for the current project is described as under:
Figure 4: Work Break down structure of construction project of RAMBOLL
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3.3 Analysis of the methods used to measure project performance
Project control cycle: It is a recursive process cycle and it is used to create, modify and
maintenance of assets related information in a proper manner. In this cycle, project team of
RAMBOLL firm investigated about various resources which are used in project for example,
human capital like designer, architecture and so on (Hobbs, 2009). Project control cycle allows
the project manager to define the objectives of the project plan where the actual work can be
evaluated against the set objectives. In the case of construction of a building, it helps in tracking
the overall cost of the proposed project and compares it with the original budget (Dey, Clegg and
Bennett, 2010).
Two methods to measure project performance
There are various methods which can be used for measuring the performance of proposed project
and these are explaining as follows.
Gantt chart: It is one of the most common and popular method of determine the performance of
any kind of project. In the case of proposed project, the project manager can easily assess the
progress of the project with respect to the set timeline. With the help of this, the actual
performance can compare with the planned actions (Andersen, Dysvik and Vaagaasar, 2009).
Gantt chart is beneficial for measuring and monitoring the project performance of each and every
activity. It also help in estimating the total time of the project completion. Further, it helps in
determining association between different activities of the project plan of RAMBOLL. But,
sometimes, it is complex to understand for the large investment projects because of the
involvement of number of activities. Along with this, for understanding Gantt chart project
manager needs to hire a personnel which must have appropriate skills and knowledge of project
management which can incrse the cost of project some times (Hobbs, 2009).
Earned value analysis: It is good option as compare to the Gantt chart because with the use of
it, project manager can forecast the completion time and expected cost for the proposed project.
This assessment has start with the project initiation and ends with handover it to the client
(Cervone, 2006).
EVA method is applied to assess project health and communicates the overall budget and
schedule performance of the project. On the other side, Earn value management (EVM) is
considered in order to make sure that all the project parameters are on track. In addition, tack the
project in terms of work, time and money and timely performance measurement are the major
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advantages of EVM method (Greasley, 2009). However, not emphasizes on quality, high cost in
implementation and high amount of time required in data collection kinds of disadvantages
associated with the use of this approach in university building project.
EVM is beneficial for developing and analyzing the different parameters for project
tracking. Along with this, it helps in measuring the project performance on the basis of finance.
Using this method project manager can tracks the project in terms of work, time and money. But
on the other hand, EVM method does not focus on the quality of the final outcomes of the
project which can affect the project performance also. Along with this, whole calculation is
based on the assumption of the planned value which can also affect the actual findings of the
project performance measurement (Knapp and et.al. 2010).
Recommend
On the basis of current project, EVA and EVM methods should be employed by project manager
to forecast the completion time and expected cost for the proposed project.
3.4 Project change control procedures and evaluation of the complete project
Evaluation is a part of every type of project and other activities. In the case of proposed
project, evaluation process is needed to keep control over the implementation process and
complete it within the given limitations (Kumaraswamy, 2011). The most common changes in
the proposed plan may be changes in the technologies, delay in supplies of material, poor
communication with the vendors etc.
Project control board in configuration management is responsible for approving or disapproving
proposed changes, prioritizing changes and scheduling the change in the entire project in a
proper way (Levy, 2009). It can be understood with help of below figure.

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Illustration 1: Change control process
(Source: Integrated Change Control Procedure, 2015)
In the case of completion of proposed project plan, the first step in the direction of
change control process is identification of change request. In this stage, the different reasons will
be determined which causes the changes request at completion of work (Dey, Clegg and Bennett,
2010). The second step is assessment of change request where the suitability of the changes
during the completion stage will determined. Next is analysis of change request where the impact
of change request on project plan and its deliverables will be identified. Now, the change request
will send to the board of directors for approval. In fifth stage, the change request will implement
as per the requirement (Simmons, Bland and Wojciechowski, 2012). During the project closure
meeting, the main agenda of project managers and other people involved in project is to discuss
project acceptance criteria’s like customer’s desire meets, quality of products and services etc. In
addition, project can be evaluated in form of financial return, customer reviews and acceptance
and time of product delivery (Knapp and et.al. 2010). In this regard, EVA, EVM and other
project evaluation tactics can be employed.
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CONCLUSION
From the above study, it has concluded that the effective project plan has help in
complete the work within the given limitations. The entire proposed project of construction of
building has completed within 3 months and cost will be 1,000,000 pounds. Gantt chart and
earned value analysis are the two methods which help in assessment of the performance of the
project. Beside this, it has important to evaluate the change control process at the completion
stage of project.
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REFERENCES
Books and journals
Andersen, S. E., Dysvik, A. and Vaagaasar, L. A., 2009. Organizational rationality and project
management. International Journal of Managing Projects in Business. 2(4). pp.479 –
498.
Cervone, F. H., 2006. Project risk management. OCLC Systems & Services. 22(4). pp.256 – 262.
Chiu-Chi, W. and et.al, 2013. Assignment of project members considering capability and
personality balance. Kybernetes. 42(7).Pp.1016 - 1028.
Darren, D., 2012. The nature of project management: A reflection on The Anatomy of Major
Projects by Morris and Hough. International Journal of Managing Projects in Business.
5(4). Pp. 643 - 660.
Dey, K. P., Clegg, T., and Bennett, J. D., 2010. Managing enterprise resource planning projects.
Business Process Management Journal. 16(2). pp.282 – 296.
Greasley, A., 2007. Operations Management. SAGE.
Hobbs, P., 2009. Project Management. Dorling Kindersley Limited.
Kathy, O. R. and Deborah, R. P., 2007. Integrating selfmanaged work teams into project
management. Journal of Facilities Management. 5(1). Pp.22 - 36.
Kloppenborg, T., 2011. Contemporary Project Management. 2nd ed. Cengage Learning
Knapp, A. and et.al., 2010. A Project Manager's Guide to Passing the Project Management
(Pmp) Exam. www.pmexam.com.
Kumaraswamy, M., 2011. Editorial: integrating infrastructure project management with its built
asset management. Built Environment Project and Asset Management. 1(1). pp.5 – 13.
Levy, B., 2009. Legal Project Management: Control Costs, Meet Schedules. Manage Risks, and
Maintain Sanity.
Martin, S. C., and Guerin, A. D., 2006. Using research to inform design solutions. Journal of
Facilities Management. 4(3). pp.167 – 180.
Simmons, B., Bland, J. M. and Wojciechowski, B., 2012. Kaplan AP Statistics. Kaplan
Publishing.
Walker, A., 2007. Project Management in Construction. Wiley.
Zwikael, O., 2009. Critical planning processes in construction projects. Construction Innovation:
Information. Process, Management. 9(4). pp.372 – 387.
Online
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<http://www.hse.gov.uk/construction/cdm/summary.htm>. [Accessed on 3rd November
2015].
Construction. 2015. [Online]. Available through:
<http://www3.imperial.ac.uk/estatesprojects/projectprocedures/stages/
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Contractors>. [Accessed on 3rd November 2015].
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http://www.itplanning.org.vt.edu/pm/integratedchangecontrol.html>. [Accessed on 3rd
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APPENDIX 1
Table 4: Personal and job specification of project manager
Personal Job specification
Good oral and written communication
skills
Tracking of project
Budget and event management skills Allocates the resources to the activities
Team working Review the project schedule
Work under pressure Supporting documentation regarding to
university building
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