Effective Project Management
Chetan Thakre
PMP, BE, MBA, PGDPC
Real Estate Project Management
Facilities Management
Residential
Construction Management
Hospitality
Commercial
TrainingsRetail
by Vidya Bhagwat
Industrial
Program Content
Module 1
Chapters
Fundamentals Of Real Estate Project Management
1.1 Introduction To Real Estate Project Management
1.2 Project Management Process Groups & Knowledge Areas
Program Content
Module 2
Essential Knowledge Areas For Real Estate Project Management
2.1 Integration Management : One View For Project Success
2.2 Scope Management : Delivering Promise
2.3 Time Management : Managing Delays
2.4 Cost Management : Managing Money
2.5 Quality Management : Gateway For Customer Satisfaction
Chapters
2.6 HR Management : Managing People On Project
2.7 Communication Management : Right Information At Right Time
2.8 Risk Management : Proactive Issue Management
2.9 Procurement Management : Effective Supplier Management
2.10 Stakeholder Management : Managing People Influencing Project
Chapter 1.1
Introduction To Real Estate Project Management
Trainings by Vidya Bhagwat
Objective of This Chapter
This chapter gives you basic concepts in project management. Understanding basic
project management concepts is very important for real estate professionals as:
 Project management is the backbone of any real estate company. Hence you
are directly or indirectly responsible for project success in your organization.
 Project is series of several inter-dependent tasks. You might be responsible for
certain task(s) but your actions have wider implications on the project. You
must clearly understand this many to many relationship.
 Project management processes are different from construction management
(technical processes). As a good real estate professional, you must have
knowledge both areas.
 This course material is based on PMI’s ® (Project Management International)
best practice framework. This globally renowned and widely successful project
management methodology. It will give you clear understanding all dimensions
of real estate project management.
Project management practices in Indian Real Estate and Infrastructure sector are not
well developed . Hence the project delivery performance is also low.
Some Of The Key Challenges In Indian Real Estate Sector
Which Need To Be Taken Into Account
Land Acquisition
Managing Government Agencies
Cost Escalations
Gaps In Project Integration
Poor Communication
Improper Risk Management
Labour Supply Issues
Quality Issues
Forecasted Demand Of Project Management Professionals In Indian Construction Sector
Key Drivers For Professional Approach For
Real Estate Project Management
 Growing customer expectations
 Industry competition and external pressure
 Shift from unorganized to organized industry
 Entry of foreign players
Inner Drive To Grow
Why You Must Know About Project Management
 Project management is the backbone of any real estate
company. Hence you are directly or indirectly responsible for
project success in your organization.
 Project is series of several inter-dependent tasks. You might be
responsible for certain task(s) but your actions have wider
implications on the project. You must clearly understand this
many to many relationship.
 Project management processes are different from construction
management (technical processes). As a good real estate
professional, you must have knowledge both areas.
 This course material is based on PMI’s ® (Project Management
International) best practice framework. This globally renowned
and widely successful project management methodology. It
will give you clear understanding all dimensions of real estate
project management.
How This Study Material Is Going To Help You
This program trains you for leadership in managing real estate and
construction projects. You will have far superior project
management knowledge than those who have not completed this
course.
Some of the key benefits :
 Effective project phasing to have better management control
 Developing work plan and managing resources (time, budget,
information and project staff)
 controlling quality
 Effective risk management (Risk identification and action plans
to mitigate risks)
 Effective allocation of responsibilities and monitoring work
 Effective site organization and administration
 Effective people management and managing team dynamics
Chapter 1.2
Introduction To Real Estate Project Management
Trainings by Vidya Bhagwat
What Is Project ?
Project is a temporary endeavour
undertaken to create a unique
product or service.
• Example : construction of building, construction of fencing ,
installation of facilities management .
• But maintenance work for the building or facilities
management is not project
but called operations
Trainings by Vidya Bhagwat
management
 The temporary nature indicate that a project has definite
beginning and end. Hence meeting dead lines is extremely
important for project success
 The end is reached when the project objectives are
achieved or when the project is terminated
 Temporary dose not necessarily mean that the project is
short. Duration of project depends on scope and
complexity
 Temporary dose not refer to product , service or result
created by project.
 The project creates unique product, service or result which
by Vidya
Bhagwat
may be tangible or Trainings
intangible.
Hence
understanding
requirements for each project are important
Project
Projects
To attain its objectives
and terminate
 Start and end date
Operations
 To sustain the
business
Ongoing
Example
Construction of new
building
Example
Selling apartments in
the building
Trainings by Vidya Bhagwat
Three Main Functions In An Organization
Strategic Management
Acquire tools for creation & augmentation of
organization value. Bestow tools to worthy
persons to generate profit
Project Management
Operational Management
Create Desired Value For The Organization
Use created value to generate profit &
revenue
What Is Real Estate Project Management
Real Estate Project Management is the application of knowledge,
skills, tools and techniques to execute projects effectively and
efficiently to meet both process and product requirements.
Example of project management activities
–
–
–
–
Identifying structural requirements
Meeting promised quality standards
Managing relation with owners
Managing compelling project constraints
Role Of Civil Engineer In Real Estate Project
Civil Engineer plays pivotal role in designing , structural decision
making and construction. Some of the key responsibilities of
civil engineer are mentioned below but not limited to :
 Understanding the site topography and positioning the building
on the site
 Planning the routing and the site drainage, access roads and
utility connections
 Understanding the local geology and soil conditions, including
the location of the water table
 Selecting and designing a foundation system and the rock or
soil layer on which the building will be founded
Role Of Civil Engineer In Real Estate Project
 Selecting a structural system that is compatible with the
building architecture and designing it to be capable of resisting
all the occupancy and environmental loads (snow, earthquake,
wind, etc.). This includes the selection and the design of a floor
system and may also include the design of the building
envelope, or the separation between the interior and the
exterior environments of a building. The structural system must
also be compatible with the other engineered systems in the
building (e.g. HVAC, building envelope)
 Once the design is finalized and approved, the next step is to
define the specifications of all the materials used in the
building, prepare a quantity take-off, and prepare an estimate
of the construction cost
 The plans and other technical documents serve as the basis for
conducting the bidding process and the selection of a
contractor and possibly, specialty subcontractors.
Role Of Civil Engineer In Real Estate Project
 Civil engineers are also involved in the planning, scheduling and
inspection of construction, including testing and interpretation
of tests. They may also be involved in the site layout and the
selection of construction methods. Construction safety is also
one of their concerns
The architectural design, design of engineering systems and
possibly landscaping is the role of other professionals, such as
architects, mechanical engineers, fire protection engineers,
electrical engineers, lighting specialists, acoustics specialists,
etc.
Civil Engineer Plays Very Critical Role In
Real Estate Project Management
Project Management Skills
 Knowledge : refers to what project manager knows about
project management and real estate product management
 Performance : refers to what project manager is able to do or
accomplish while applying project management knowledge
 Personal : refers to how project manager behaves when
performing the project related activities includes attitudes,
core personality characteristics etc
 Interpersonal skills : refers to project manager’s ability to
communicate and manage other stake holders
Does Project
Size Matter
Project Management
Small companies managing one or few independent projects
at a time.
Example – Construction of single building
Program Management
Program Management is the process of managing
several related projects, often with the intention of
improving an organization's performance
The action related to these interdependencies may include
• Resolving resource constraints
• Aligning organizational / strategic direction
• Resolving issues and change management
Program Management
Example - Multiple Projects In A Township
"Live the dream“ – DSK Dream City
Portfolio Management
Portfolio refers to projects, programs , sub portfolios
and operations managed as a group to achieve
strategic objectives.
 The projects and programs or projects of a portfolio may
not necessarily interdependent or directly related.
 Focuses on ensuring that projects and programs are
reviewed to prioritize resource allocation and that the
management of portfolio is consistent with and aligned to
organizational strategies
.
Portfolio Management
Example - Company Projects Under Various Categories i.e.
Residential, Commercial, Industrial , FM etc
“Highest quality standards for project execution, materials and
services, collaborates only with the best-in-class associate” Godrej Properties
Project Management Office
The project management office is a management
structure that standardizes the project related
governance processes and facilitate sharing of
resources , methodologies, tools and techniques.
The primary function may include but not limited to
• Managing all shared resources
• Identify and developing project management methodology, best
practices and standards
• Coaching, mentoring, training
• Coordinate communication across projects
• Role : supportive or controlling or directive
The difference in the role of project managers and PMO
includes following
 The project manager focuses on specified project
objectives while PMO manages major program scope
changes
 The project manager controls the assigned resources for
the project, while the PMO optimizes the use of shared
resources
 The project manager manages constraints of individual
project, while the PMO manages interdependencies
among projects at the enterprise level
Portfolios, Programs And Projects
PMO
Importance Of Project Governance
Project Governance is an oversight function that is aligned with
organization’s governance model and that encompasses the project
life cycle. It provides framework to project manager and team with
structure, processes, decision making model and tools for managing
the project.
Example : Company which deliver very high end premium projects
will need to make sure that all activities starting from contacting
customer, quality of construction up to delivery of the property to
customer must follow same high class standards
Project Governance
Project governance framework includes







Success and deliverable acceptance criteria
Process to identify , escalate & resolve the issues
Relationship among project team & stakeholders
Project organization chart that with project roles
Processes &procedures for communication
Project decision making processes
Guidelines for aligning project governance and organizational
strategy
 Project life cycle approach
Organizational Influences On Project Management
As projects are done by a group in the organization and for the
organization, naturally organization influences projects. Ability
of project team to deliver project successfully is influence by
four factors
Organizational Influences On Project Management
 Organizational Cultures And Style
 Organizational structures
 Enterprise Environmental Factors (EEFs)
 Organizational process assets (OPAs)
Organizational Cultures And Styles
 Shared visions, mission, values & beliefs
 Regulations, policies, methods, and procedures;
 Motivation and reward systems
 Risk tolerance
 View of leadership, hierarchy & authority
 Code of conduct, work ethic, and work hours; and
 Operating environments.
• Organizational Communications
Organizational Structure : Functional
Resource
Availability
Little Or None
PM Authority
Project Budget
Managed By
Functional Mgr
PM Admin
Staff
Part Time
PM Role
Organizational Structure : Weak Matrix
Resource
Availability
Little Or None
PM Authority
Project Budget
Managed By
Functional Mgr
PM Admin
Staff
Part Time
PM Role
Organizational Structure : Balanced Matrix
Resource
Availability
Low To Moderate
PM Authority
Project Budget
Managed By
Mixed
PM Role
Full Time
PM Admin
Staff
Part Time
Organizational Structure : Strong Matrix
Resource
Availability
Moderate To High
PM Authority
Project Budget
Managed By
Project Mgr
PM Admin
Staff
Full Time
PM Role
Organizational Structure : Projectised
Resource
Availability
High To Almost Total
PM Authority
Project Budget
Managed By
Project Mgr
PM Admin
Staff
Full Time
PM Role
Organizational Influences On Project Management
Enterprise Environmental Factors (EEFs)
EEF refers to condition not under the control of project team, that
influence, constrain or direct the project. EEF are considered as
inputs in most of the planning processes.
• Internal or External
• positive or negative influence on the outcome
Enterprise Environmental Factors
These include










The culture, structure, and processes
All industry and/or government standards
Company or organization infrastructure
Human resource guidelines and policy.
Authorization systems, policies, and guidelines.
Market and overall economic conditions.
Risk tolerance of stakeholders.
Political climate.
The communications channels
Project management information systems
Organizational Process Assets
Organizational process assets (OPA)are the plans , processes, policies,
procedures and knowledge bases used by performing organization.
 Processes And Procedures
 Corporate Knowledge Base
Organizational Process Assets
OPAs are often updated for future projects and
also in the current projects. Whereas it is very
difficult to change EEF during the course of
your project.
Hence you use OPAs to improve the
management of your project. You manage
project within the constraint and guidelines
established by the EEFs
Project Life Cycle And Project Phases
Project life cycle is the series of phases that the project passes
through from its initiation to its closure.
 Each project may be divided into many phases to improve
management control.
 Collectively, the project phases are known as the project life
cycle.
 Usually they are sequential.
 These are unique to the industries
 Each phase is marked by completion of one or more
deliverables. Phase-end reviews are called phase exits, stage
gates, or kill points.
Each project may be divided into many phases to
improve management control.
These are unique to the industries
Phase To Phase Relationships : Sequential
Phase To Phase Relationships : Overlapping
The ability to influence the final characteristics of the project’s
product without significantly impacting cost is highest at the
start and decreases as the project progresses
Types
Project
ProjectOf
Life
Cycle Life
And Cycle
Predictive Life Cycle (Fully Plan Driven) : In this case project
scope, time and cost required to deliver the scope are
determined as early in the project life cycle as practically
possible.
Types
Project
ProjectOf
Life
Cycle Life
And Cycle
Project Phases
• Iterative And Incremental Life Cycle : Iterative life cycles are
one in which project phases (also called iterations)
intentionally repeat one or more project activities as the
project team’s understanding of the product increases.
Types
Project
ProjectOf
Life
Cycle Life
And Cycle
Project Phases
• Adaptive Life Cycle ( Change Driven Or Agile Methods) : Intended to
respond to high level of change and ongoing stakeholder
involvement. Adaptive method is also iterative an incremental but
differs in that the iterations are vary rapid (usually within duration
of 2 to 4 weeks) and are fixed in time and cost. Adaptive projects
generally perform small incremental improvements that will deliver
value to stakeholders