Report on Project Management Principles at VINCI Construction

This report provides a comprehensive analysis of project management within the context of VINCI Construction, a UK-based construction company. It begins by outlining the core principles of project management, including setting standards, ensuring their maintenance, allocating resources, providing guidance, and estimating budgets and timelines, with specific examples of how VINCI applies these principles through its Project Management Office (PMO). The report then details the application techniques used in project management, such as defining objectives, appointing project officers, and controlling projects across cost, quality, and time dimensions. It also addresses the challenges VINCI faces, including project status updates, less experienced staff, process requests, and unstructured projects, and how the company mitigates these issues. Furthermore, the report highlights the benefits of adopting project management approaches, such as increased efficiency, enhanced customer satisfaction, growth and development, flexibility, and effective risk assessment. The analysis draws on various academic sources to support its findings, providing a well-rounded view of project management in the construction industry.

PROJECT MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Principles applied for project management.................................................................................1
Application technique.................................................................................................................2
Challenges...................................................................................................................................2
Benefits.......................................................................................................................................3
Drawbacks...................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The project management has come into force due to increasing need of sophisticated
products and services that can fulfil the demands of customers. A particular department known
as PMO or Project management office is entrusted in business organisations where they are
expected to make the projects matching to high standards. The project management implies
different methods which are applied on the basis of some principles so that planning for work
can be done in an effective manner (Too and Weaver, 2014). The present report is focussed on
project management in which various positive and negative aspects of its implementation has
been discussed. Besides this, the chosen organisation for this purpose is VINCI which is a
construction company of UK. The report will be discussing about the PMO and its importance
in cited organisation.
Principles applied for project management
The project management is a technique which helps in overall functions of a business to
be performed in a planned and systematic way. Because of this, many organisations and varied
industries are adopting this approach so that they can effectively plan, apply and control different
business activities along with proper management of available resources (Memon and et.al.,
2011). The project management is basically a non repetitive activity which is made for fulfilment
of any financial or technical based goals. This also allots a proper time for accomplishing various
objectives and goals of business. The VINCI company also takes help of the approach so that it
can plan its work systematically. The project management approach adopted by PMO in said
firm works on some basic principles which are as follows:
 Setting standards- The project management is based on some principles where it fixes
some standards so that a proper planning can be executed. The mentioned organisation
makes a project management template or a blueprint of it on the basis of some fixed
standards so that work can be done as per the pre determined plan. This helps in saving
time and cost as standardisation makes easier to understand about quality of project (De
Bakker, Boonstra and Wortmann, 2010).
 Ensuring maintenance of standards: After setting standards, the PMO is expected to
monitors the work so as to ensure that wok is being followed as per the set standards. In
mentioned company, while setting it, the PMO makes a list of different tasks that has to
be performed. On the basis of these tasks, the project management breaks into small sets
of sub tasks that can make work easier. This breaking of tasks make it easier for PMO to
monitor work and ensuring that standards are being followed. If it is found that work is
not moving as per the pre determined criteria, it can be improved through feedback to
acknowledge employees about it (Cervone, 2011).
 Allocation of resources: It is necessary that tasks broken down into sub tasks are allotted
to right person with adequate resources to accomplish it. The PMO makes attempt to
allocate different resources at right places along with distribution of work in systematic
manner as per the skills available and required by the project. This assures that the work
is being done as per the required standard and with availability of proper materials.
 Source of guidance: The PMO is helpful source in providing guidance and information to
new managers as they are not familiar with the projects and its development processes
(Wu and Low, 2010). The mentioned firm has a centre of excellence where the PMO use
to provide needed guidance and information to new mangers to make them familiar with
work.
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 Estimation of right budget and time: The PMO is entrusted with the major work of
estimating correct time and budget for the entire project so that work processes can be
performed as per the time and cost. The cited business also makes necessary steps that
can help in correct estimation of time and budget by implementing portfolio management
approach (Chou, 2011). This helps the cited enterprise to review the entire project and
arranging them as per the prioritization. Thus, this makes easier for PMO to estimate its
completion time and budget.
Application technique
The project management approach follows a particular approach that helps in application
of its various techniques. Laslo, (2010) asserts that by following the guidelines that are necessary
for implementation of the techniques, the project can be performed in a better way. Some of the
steps that can be followed by VINCI for applying project management approach are as follows:
Defining objectives: The mentioned firm should move primarily by setting definite objectives
that can be of much help for organisation in understanding the scope, resources available and
involves staff in accomplishing the project. Thus, the outline of the project can be formed
according to which all concerned employees can move.
Appointing project officer: The next step that will be required by the company is to appointing
a project manager who is able to handle it entirely. This can be decided as per the nature of
project which may require to be handled by a professional person (Morris, 2010). Therefore, an
experienced person according to required skill should be appointed. The manager will be
responsible to complete the project as per the decided time and budget.
Project control: The projects are required to be controlled as per three aspects which are cost,
quality and time. For each aspect, some techniques can be applied for their proper control. To
manage the time in project management, CPM and PERT techniques are applicable so which
also makes a way to estimate right time for completion of projects. To control costs, the
summary of cost can be made by manager so that skilled forces can be assigned with matching
tasks (Fortune and et.al., 2011). This will help in less wastage of resources. Besides this, the
manager can set some definite criteria of performance so that quality of work cannot be
compromised. The project manager should also ensure that the standards are met by employees
in their work.
This entire task will help in proper performance of work by developing sub tasks and
assigning a proper budget and time for each one. In case, if any changes are required, some
tactics should also be made so that they can be adopted to avoid failures of projects.
Challenges
There are lots of challenges that are faced in projects which has to be removed timely to
minimise the problems related to duplication of work and its overbearing (Bernroider and
Ivanov, 2011). To remove these types of issues, the adoption of project management approach
and appointment of PMO has increased. In context of VINCI, the importance of these
approaches to overcome challenges can be understood as follows:
 Project status: The said company keeps a record of all the projects in which at the end of
month, the managers have to update it as per the entire month's reports. The updates
related to the status reports mostly become irritating as it causes frequent frictions.
Besides this, the procedure becomes very domineering as sometimes it asks same
information again and again. Besides this, the manager has to fill new form for each of
the information as well (Doloi, 2011). the use of some particular software do away the
issues related to filling up of same information frequently. The said organisation
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establishes a scorecard template in which all data are integrated and updated in the
PMO- summary report. This makes possibilities of duplication in work less.
 Less experienced staff: It is necessary that projects are handled by experienced staff so
that any complex project can also be handled. In VINCI, the company adopts a better
method for this as it use to make rotation of experienced managers in different roles
within PMO so that their knowledge and experience can be shared with other staff as well
(Hanisch and Wald, 2011.). This proper management and rotation technique helps in
auditing of all projects in proper manner and their timely delivery.
 Process request: The projects done should be followed by managers with timely
responses. Each project done is submitted to PMO which follows a process for which
sometimes the project manager may have to wait for a long time. When the request for
following the process takes much time, this act as a blockage in the entire system.
Therefore, it is necessary that PMO works in a timely manner so that delivery of it cannot
be hindered (Asquin, Garel and Picq, 2010).
 Unstructured projects: There are some possibilities that the projects managers start the
process without any proper planning and structuring resources. Therefore, the PMO
makes assignment of resources in a proper way. This makes the appropriate allotment of
resources along with minimum chances of its late delivery (Ojiako and et.al., 2011).
Benefits
There are lot of benefits of adopting the project management approaches as it can help in
improvement of performance as well as in increasing the revenues of company. The VINCI has
also enjoyed a lot of benefits with the help of PMO which are discussed below:
 Increased efficiency: According to Svejvig and Andersen, (2015) the project management
helps as a guiding principle where a company can move in a particular direction with the
help of a roadmap. The PMO in cited business organisation make a blueprint in which all
tasks are decided and assigned to different people which makes aware to every employee
about their roles and responsibilities. Thus, they work with more efficiency with a
complete guiding book in a smarter way.
 More customer satisfaction: Through project management approaches, the projects are
accomplished in a proper way and also with less cost and time. As per Garel, (2013) the
PMO makes it sure that at initial stages it plans the entire project in a definite way by
applying appropriate techniques so that right time for completing it can be estimated. The
mentioned firm also adopt the techniques of PERT and CPM in which network diagrams
are made to determine right period of completing the project. This assures timely delivery
of projects leading to customer satisfaction and possibilities of their frequent visit.
 Growth and development: The project management also helps in growth and
development of business. With the help of efficient management in projects, the
organisation can make their goodwill in the market. Cervone, (2011) asserts that through
managing the projects it assures timely delivery and it makes a positive image of firm in
market. The cited venture has made its progress in market through experienced and
efficient staff in PMO because of which it has accomplished the work of many famous
buildings. Besides this, it also helps in making the organisation competitive in the
competitive edge of market.
 Flexibility: In the views of Chou, (2011), the major benefits of project management is
that it provides a greater flexibility in the plans. It is evident that PMO makes the entire
plan of project in advance where all tasks are determined in advance. But, the plan is
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made in such a way so that any better strategy that can help in completion of project with
more efficiency and in better way can also be applied by making modifications. Thus, the
cited venture of VINCI also gained much of the success as it makes projects plans in a
very flexible manner and takes the direction which is best for its completion.
 Assessing risk: The project management makes strategies and work allocation on the
basis of a proper study in which the managers make a research to assess the risks
concerned with entire project (Morris, 2010). This allows to make an advance plan for
facing any types of challenges and risks. Thus, the project management helps in making
strategies which can make possibilities of failure in projects minimum by advance
planning of overcoming risks.
 Quality and quantity: The project management increases the quality and quantity as well
because it results in improved efficiency. With the help of proper planning in project
management, the company can reach the set target within a fixed time period (Turner,
Ledwith and Kelly,2012).
 Feedback: The project management also provides the opportunity to acquire feedback
from clients about the progress of work and their satisfaction level from the projects
(Fortune and et.al., 2011). Apart from this, the given feedback can also be based on some
complaints and suggestions. Thus, it will help in moulding the projects as per the needs
of clients. This will also help in increasing the competitiveness in the projects and
gaining better responses from market.
 Better understanding: The Project management done under PMO helps the company in
understanding the link and dependency of different projects according to the portfolio
(Mahaney, and Lederer, 2010).
 Communication: There are various teams and employees who use to engage for
completion of a project. This needs a better and improved way of communication. Thus it
becomes necessary to have an effective communication that can manage teams and keep
informed all the stakeholders who are related with project. The PMO helps in this
objective with maintenance of perfect communication (Killen and Hunt, 2010).
Drawbacks
The project management approach has several drawbacks due to which it makes difficult
for the companies to adopt the mentioned technique. The disadvantages that are possessed by
organisation from project management can be discussed as under:
 Cost overhead: The adoption of project management approach need to perform a lot of
activities in which appointment of PMO is also necessary. Bernroider and Ivanov,(2011)
asserts that the activities like hiring project managers, their training, appointing a
manager to keep monitoring on all the process under projects etc. involves a large cost
which must be done for accomplishing a project in a proper way. Therefore, the idea of
PMO and project management approaches are avoided by small companies so that these
overheads can be reduced.
 Communication overhead: Doloi, (2011) argues that though the project management
helps in improving the quality of projects, but it also acts as a barrier in the
communication process. With setting up of PMO who works to manage the projects and
monitor the entire work, increases an another level in the communication process.
Without the presence of PMO, the communication can flow directly without any barrier
but in case of a PMO, the employees have to contact each time with this department due
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to which it becomes a long process and team members have to go through a long process
of communication.
 Time overhead: The project management makes an attempt to estimate the cost and time
for completion of projects in advance. As per this, they try to make it complete the work
pushing employees more towards putting extra efforts. But Asquin, Garel and Picq,
(2010) has contradicted that PMO makes the communication process much longer which
leads to the longer time in making coordination through indirect communication. The
delays in projects are an inevitable part which cannot be avoided, hence it becomes
difficult to manage the work on time.
 Obsession: It is apparent that there is an increase in obsession related to methodology
among managers (Marcelino-Sádaba and et.al., 2014). This obsession generally results in
the rigidity among managers according to which they do not use to adopt changes and
can also make the environment quite stressful for the team members. This makes the
employees and assistants in the project to feel uncomfortable in working and it often
leads to loss of quality in work.
 Non creativity: As per Hanisch and Wald, (2011), the non creativity ion project
management can be of to types which are managerial and technical. The technical non
creativity comes into force when the manager of projects sets fixed time period for
accomplishing a piece of work. He also makes the team members to work as per this
deadline strictly so that they can meet the time. But it often results in loss of creativity
among employees as their major focus remains in completing the work on time.
Therefore, they do not get time for thinking in an innovative and creative way. Thus, the
quality aspect of project may also be compromised. Besides this, Chou, (2011) have
argued that managerial non creativity takes place when the manager of a project performs
all the work strictly as per the planned process. This makes the scope of flexibility limited
and makes the project completion as per the quality aspect weak. Therefore, it is
necessary to make projects enough flexible so that it can be completed in a proper way
with high quality and flexibility.
 Conflicts: The PMO allows to have a greater degree of transparency in work but this
sometimes lead to conflicting situations. The performances can be monitored and
checked from both sides by comparing it with fixed standards which results in cultural
transitions. This makes the greater possibilities of conflicts as they it is not acceptable by
clients who are not used to such transparencies (Mahaney and Lederer, 2010).
 Over staffing: The model of project management which is set up as per the PMO needs
more staff and takes more time. As a consequence, the projects are delivered late and the
objective of achieving benefits is not delivered.
CONCLUSION
The present report is focussed on project management which is a recent and most
demanded need in present time. In present scenario, it is evident that the needs and demands of
people have become very sophisticated due to which the companies are trying to do their best.
To provide best of services, the organisation make different strategies but it may lack in one or
more aspects that may result in dissatisfaction among customers. Therefore, the concept of
Project management helps in solving such issues. The PMO is a kind of centre of excellence in
various organisations in which they make projects and set their standards so that work can be
accomplished as per the plan. Besides this, the project management helps in completing the work
on time. The report has concluded some benefits of this project management while on other hand
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there are some drawbacks as well. But overall, the PMO can help in managing the projects in
well manner so that its success rate and quality can be maintained.
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REFERENCES
Journals and Books
Asquin, A., Garel, G. and Picq, T., 2010. When project-based management causes distress at
work. International Journal of Project Management. 28(2), pp.166-172.
Bernroider, E.W. and Ivanov, M., 2011. IT project management control and the Control
Objectives for IT and related Technology (CobiT) framework.International Journal of
Project Management. 29(3), pp.325-336.
Cervone, H.F., 2011. Understanding agile project management methods using Scrum. OCLC
Systems & Services: International digital library perspectives. 27(1), pp.18-22.
Chou, J.S., 2011. Cost simulation in an item-based project involving construction engineering
and management. International Journal of Project Management. 29(6), pp.706-717.
De Bakker, K., Boonstra, A. and Wortmann, H., 2010. Does risk management contribute to IT
project success? A meta-analysis of empirical evidence. International Journal of Project
Management. 28(5), pp.493-503.
Doloi, H.K., 2011. Understanding stakeholders' perspective of cost estimation in project
management. International journal of project managemen. 29(5), pp.622-636.
Fortune, J. and et.al., 2011. Looking again at current practice in project
management. International Journal of Managing Projects in Business. 4(4), pp.553-572.
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project management. International Journal of Managing Projects in Business. 4(4).
pp.553-572.
Garel, G., 2013. A history of project management models: From pre-models to the standard
models. International Journal of Project Management. 31(5). pp.663-669.
Hanisch, B. and Wald, A., 2011. A project management research framework integrating multiple
theoretical perspectives and influencing factors. Project Management Journal. 42(3), pp.4-
22.
Killen, C.P. and Hunt, R.A., 2010. Dynamic capability through project portfolio management in
service and manufacturing industries. International Journal of Managing Projects in
Business. 3(1). pp.157-169.
Laslo, Z., 2010. Project portfolio management: An integrated method for resource planning and
scheduling to minimize planning/scheduling-dependent expenses. International Journal of
Project Management. 28(6), pp.609-618.
Mahaney, R.C. and Lederer, A.L., 2010. The role of monitoring and shirking in information
systems project management. International Journal of Project Management. 28(1). pp.14-
25.
Marcelino-Sádaba, S. and et.al., 2014. Project risk management methodology for small firms.
International Journal of Project Management. 32(2). pp.327-340.
Memon, A.H. and et.al., 2011. Factors affecting construction cost in Mara large construction
project: perspective of project management consultant. International Journal of
Sustainable Construction Engineering and Technology. 1(2). pp.41-54.
Morris, P.W., 2010. Research and the future of project management.International Journal of
Managing Projects in Business. 3(1), pp.139-146.
Ojiako, U. and et.al., 2011. Learning and teaching challenges in project management.
International Journal of Project Management. 29(3), pp.268-278.

Svejvig, P. and Andersen, P., 2015. Rethinking project management: A structured literature
review with a critical look at the brave new world. International Journal of Project
Management. 33(2), pp.278-290.
Too, E.G. and Weaver, P., 2014. The management of project management: A conceptual
framework for project governance. International Journal of Project Management. 32(8),
pp.1382-1394.
Turner, R., Ledwith, A. and Kelly, J., 2012. Project management in small to medium-sized
enterprises: tailoring the practices to the size of company.Management Decision. 50(5).
pp.942-957.
Wu, P. and Low, S.P., 2010. Project management and green buildings: lessons from the rating
systems. Journal of Professional Issues in Engineering Education and Practice. 136(2),
pp.64-70.
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