Project Stakeholders, Project Phases, Project Organization

Summary

The script discusses the importance of identifying and managing stakeholders in various types of projects, from single-family homes to complex structures like IT buildings and refineries. It highlights the different roles and phases of a project, emphasizing the significance of early decision-making and the impact of these decisions on project outcomes. The transcript also explores project life cycles, the EPC model, and the challenges of fast-track construction, underscoring the need for effective project management throughout all stages.

Takeaways

• 🏠 Stakeholders in a project include customers, architects, engineers, contractors, vendors, and regulatory bodies.
• 🔍 The role of stakeholders varies by project complexity; a single-family home has fewer stakeholders than a large IT building or a refinery.
• 👷‍♂️ Project management is crucial in aligning the objectives of various stakeholders to ensure project success.
• 📈 The project life cycle begins with business planning and ends with decommissioning, with varying degrees of involvement from stakeholders.
• 👨‍🎓 Engineering curriculums typically focus on the execution phase of projects, which is only a part of the full project life cycle.
• 🛠 In the EPC (Engineering, Procurement, and Construction) model, a single company handles multiple phases, which can improve efficiency but demands strong management.
• 🚀 Fast track construction overlaps engineering, procurement, and construction to save time, posing challenges in managing the interface between phases.
• 💰 The cost of a project escalates as it progresses, with the majority spent during the design and construction phases.
• ✅ Early phases of a project offer greater influence over outcomes at a lower cost, emphasizing the importance of early decision-making.
• 📊 The construction project organization can vary greatly, but the scheduling function is a critical component, typically reporting to the project manager.
• 🔑 The project manager plays a central role in overseeing all aspects of the project, from planning to execution, and managing stakeholders.

Q & A

What are the key stakeholders involved in a single family home project?

The key stakeholders in a single family home project include the customer (owner), architect, structural engineer, contractor, vendors, suppliers, and regulatory bodies such as municipal authorities and corporations.

What is the role of a contractor in a single family home project?

In a single family home project, the contractor is responsible for the construction process. They may also handle project management and coordinate with vendors and suppliers.

Why is stakeholder management important in project management?

Stakeholder management is important because it ensures that all parties involved in a project are aligned with the project objectives. Proper management of stakeholders helps in the successful completion of the project by balancing their objectives and interests.

What is the significance of the project life cycle?

The project life cycle is significant as it outlines the various phases a project goes through, from the original idea to decommissioning. Understanding these phases helps in planning, execution, and management of the project effectively.

How does the role of an owner change throughout the project life cycle?

The role of an owner changes throughout the project life cycle. They have high responsibility during the planning and decision-making phases, less involvement during the construction phase, and high responsibility again during operation and maintenance.

What is the difference between a conventional project delivery model and an EPC model?

In a conventional project delivery model, design, procurement, and construction are often handled by separate entities with a lag between phases. In an EPC (Engineering, Procurement, and Construction) model, a single company is responsible for all three, which can lead to better accountability, efficiency, and potentially faster project delivery.

What are the advantages of the EPC model over the conventional model?

The EPC model offers advantages such as better accountability, efficiency, and potentially higher quality due to a single company being responsible for all aspects. It also allows work to start earlier and overlap phases, which can save time.

What are the potential disadvantages of the EPC model?

Disadvantages of the EPC model may include the risk of not getting a company that is capable of handling the full scope of EPC responsibilities, which could lead to project failure or delays.

What is the concept of 'fast track construction'?

Fast track construction is a project delivery method where the phases of engineering, procurement, and construction are overlapped to save time. This approach requires effective management to ensure smooth transitions between phases and to minimize delays.

How does the influence on a project's outcome change as the project progresses?

The influence on a project's outcome is highest in the early stages, where decisions can be made with lower cost implications. As the project progresses, particularly into the design and construction phases, the ability to influence the project decreases, and changes become more costly.

What is the role of a scheduling person in a construction project?

The scheduling person in a construction project typically reports to the project manager and is responsible for developing and maintaining the project schedule. They ensure that all project activities are planned and sequenced properly to meet deadlines.

Outlines

00:00

🏗️ Project Stakeholders Identification

The paragraph discusses the importance of identifying stakeholders in a project, using examples of a single family home and a large IT building to illustrate the various parties involved. It highlights the roles of the customer, architect, structural engineer, contractor, vendors, and regulatory bodies. The complexity of stakeholders increases with project scale, as seen in the transition from a home to an IT building, where additional roles such as project manager, subcontractors, and MEP services become necessary. The paragraph emphasizes the necessity of understanding and managing stakeholders for a successful project outcome.

05:01

🤝 Stakeholder Management and Project Phases

This section delves into the significance of stakeholder management, emphasizing the alignment of stakeholders' objectives with the project's goals. It uses the example of the Delhi metro to illustrate the diverse requirements of public stakeholders. The paragraph outlines the project life cycle, from business planning to decommissioning, and discusses the varying degrees of involvement and responsibility of different stakeholders at each phase. It stresses the importance of understanding the project phases and the stakeholders' roles within them, particularly highlighting the owner's continuous involvement and the fluctuating responsibilities of other stakeholders like contractors and project managers.

10:08

🛠️ Execution Phase and EPC Model

The focus shifts to the execution phase of a project, introducing the EPC (Engineering, Procurement, and Construction) model and contrasting it with traditional models. The EPC model is presented as a way to streamline the process by having a single entity handle all three stages, which can lead to better accountability, efficiency, and potentially higher quality. However, the disadvantages are also noted, such as the risk of poor execution if the EPC company is not sufficiently capable. The paragraph also touches on the concept of fast track construction, which overlaps engineering and construction phases to save time, and the challenges it presents in terms of project management.

15:10

📈 Project Cost and Influence Over Time

This paragraph examines the relationship between project cost and the ability to influence project outcomes over time. It presents two curves: one showing cost egress as the project progresses, and another indicating the level of influence one can exert at different stages. The early stages offer high influence at lower cost implications, whereas later stages have lower influence but higher cost implications for changes. The importance of making critical decisions early in the project to minimize later changes and associated costs is underscored.

20:12

👷‍♂️ Construction Project Organization

The final paragraph provides an overview of how a construction project is typically organized, from the contractor's perspective. It describes the roles of a regional manager, project manager, and various teams such as scheduling and planning, quality control, and occupational health and safety. The paragraph also mentions the execution team and subcontractors who carry out the work. On the client side, it includes architects, design engineers, and project management consultants, noting that their organizational relationships can vary. The focus is on the scheduling person, who is critical in construction projects and typically reports to the project manager.

Keywords

💡Stakeholders

Stakeholders are individuals or groups who have an interest or involvement in a project. In the video, stakeholders are discussed in the context of various types of projects, such as a single family home, a large IT building, and public projects like the Delhi metro. The term is integral to the theme as it highlights the importance of identifying and managing the interests of all parties involved in a project.

💡Project Manager

A Project Manager is a professional responsible for the planning, execution, and closure of a project. The script mentions the role of a project manager in larger projects, where they oversee the coordination of various tasks and ensure the project meets its objectives. The term is used to illustrate the importance of project management in successfully completing complex projects.

💡Architect

An Architect is a professional who designs buildings, structures, or environments. In the script, the architect is identified as a key stakeholder in construction projects, responsible for creating the design and overseeing its implementation. The role of the architect is essential to the theme as it underscores the creative and technical aspects of project planning.

💡Structural Engineer

A Structural Engineer is a specialist who focuses on the structural integrity of buildings and structures. The script refers to structural engineers as part of the team involved in complex construction projects, emphasizing their importance in ensuring the safety and stability of the built environment.

💡Contractor

A Contractor is a party who enters into a contract to perform work or provide goods. The video script discusses the role of contractors in executing the construction phase of a project, highlighting their responsibility for managing the physical construction process and coordinating with subcontractors.

💡Vendors and Suppliers

Vendors and Suppliers are entities that provide necessary goods and services for a project. The script mentions them as stakeholders in the project, emphasizing their role in supplying materials and equipment needed for construction, which is crucial for the project's successful completion.

💡Regulatory Bodies

Regulatory Bodies are organizations that establish and enforce rules and regulations. In the script, they are discussed as stakeholders who must grant permissions for various aspects of a project, such as municipal authorities and environmental agencies, illustrating the compliance aspect of project management.

💡MEP (Mechanical, Electrical, and Plumbing)

MEP refers to the systems within a building that provide heating, cooling, lighting, power, and water. The script discusses the importance of MEP in larger construction projects, where these systems are more complex and require specialized engineering services.

💡EPC (Engineering, Procurement, and Construction)

EPC is a project delivery method where a single entity is responsible for designing, procuring, and constructing a project. The script explains the advantages and disadvantages of the EPC model, such as better accountability and efficiency, but also the challenges of finding a company capable of handling such comprehensive responsibilities.

💡Fast Track Construction

Fast Track Construction is a project delivery method where the design, procurement, and construction phases overlap to save time. The script describes this method as more challenging to manage due to the need for effective communication and coordination between the overlapping phases.

💡Project Life Cycle

The Project Life Cycle refers to the series of phases that a project goes through from its start to completion. The script outlines the life cycle, from business planning to decommissioning, to emphasize the different stages of project development and the varying degrees of influence and cost implications at each stage.

Highlights

Importance of identifying project stakeholders for successful project management.

Examples of stakeholders in a single-family home project, including the owner, architect, and contractor.

Discussion on the role of a project manager in different types of projects.

Inclusion of vendors and suppliers as key stakeholders in a project.

The necessity of engaging with regulatory bodies like municipal authorities for permissions.

Complexity increase in projects like large IT buildings involving more stakeholders such as project managers and subcontractors.

Importance of MEP (Mechanical, Electrical, and Plumbing) in larger construction projects.

The significance of environmental clearances and public agency involvement in certain projects.

Different types of engineering required for complex projects like refineries, including mechanical, chemical, and metallurgy.

The concept of stakeholder management being crucial for aligning objectives with project management goals.

Project life cycle phases from business planning to decommissioning, emphasizing the varying involvement of stakeholders.

The focus of engineering curriculums primarily on the execution and detailed design phases of projects.

The role and responsibility changes of the owner and contractor throughout different project phases.

Introduction of the EPC (Engineering, Procurement, and Construction) model and its advantages and disadvantages.

Explanation of fast track construction and its management challenges compared to conventional methods.

The impact of decision-making timing on project costs and outcomes, highlighting the importance of early choices.

Organizational structure of a construction project, detailing the roles of various stakeholders including the scheduling function.

Transcripts

Now, I am moving on to the issue of projects stakeholders.

So, when we take a project, who are all the people who are interested and participating

in the project?

So, let us take a few examples, I have given the example of a small of a single family

home there, we have a large bungalow, you have a single person, who owns a bungalow.

So, we know that, so you know it could be one of your future homes, you are the customer.

So, we know that there is a customer.

One of the stakeholders, who are the others?

So, let us take single family home as an example.

Who are the others, who you would bring into this project?

Architect.

Yes, there will be an architect.

Structural Engineer.

Okay.

Project manager.

Would you bring a project manager?

No.

Who would do a project manager?

Contractor.

The contractor would do it, or the architect would do a project management in this case.

Who else?

Vendors.

Vendors, suppliers.

MEP

Is there MEP?

What is the MEP or plumbing, but it is I would not put it as MEP.

There is some plumbing involved, but it is not as sophisticated, it is something which

your contractor can handle single-handedly.

Anyone else?

There are regulatory people, like the corporation, these that, etcetera.

Finance.

There can be finance, bank; there can be a regulatory and public agencies like municipal

authority, water supply, electricity, sewage all of them you will need permissions from

all of them, you know the Chennai CMDA, the Metropolitan Development Authority.

So, basically what I, what do you wanted to say is, so for even a project like this you

have a lot of people, who are involved.

Now, let us take a slightly more complex project, so this is let say a large IT building, you

will, we will go back to our original list, we certainly have a customer.

You will have an architect, you will have a structural engineer, you will have a contractor,

you will have suppliers, you will have to finance all of these, who else will be involved.

There will be a project manager here because it is a large project.

You have so many contractors.

Yes.

Sub-contractors.

Yes, so they are called subcontractors, in this case, because it is a single thing, single

house

the contractor might have the mason, the carpenter, everybody might work with him.

You do not need a subcontractor, whereas in the large project like this you will go with

subcontractors.

So, something we missed out here is, in addition to structural engineering, you need you have

foundations, geo tech, all of that will be there, but we will assume that is theÉ You

will really need engineering services here, not just structural; you will need, now you

need MEP.

.

MEP is part of , you will need structural, you will need geo tech, you will need instrumentation

depending on the kind of you know, what are the kind of facilities you have in and you

need instrumentation, I am kind of filling that here.

Environmental clearance.

Yes, all of that you will have, so here you might not need environmental clearance for

the house, now you will have a public agency, which will you have you might need environmental

clearances.

You know it is something like the pollution control board might come in to say that you

have to be cleared, we have more public agencies coming in.

What else?

suppliers for elevators and.

All of that will be part of the MEP; you will have now, for example, a part of the MEP and

like you said an elevator, you have air-conditioning system, you will have fire water, I mean fire

production systems.

So, same similar, but the whole thing is got more complex and more people.

So, all the and all of these stakeholders are important, unless as a project manager

you manage all of them in some way or the other, you are not going to be able to complete

successfully.

Do all theseÉ

So, let us take another, you know just let us continue with this thinking, now here is

a public project, something like Delhi metro.

Stakeholders almost all of the above, earlier stakeholders are there, but now you have public

at large and public comes with very different requirements, diverse requirements.

And then, we are, here we are now looking for very long term public service, it is not,

I mean we are not looking at todayÕs requirement, you are really looking at very much more long

time.

Here is a project, can anyone recognize what this is?

No, the one below.

What is it look like to?

Refinery.

It is a refinery; it is a refinery and again, you now, you have what is the kind

of engineering that goes into the refinery, what are the types of engineers.

So, most of the above earlier ones are the same.

mechanical.

Yes, you have a mechanical for piping, chemical for the process, you have instrumentation,

you have civil, and you have metallurgy.

So, now, this is, the engineering here is become far more complicated, project management,

regulatory, subcontractors, different kinds of subcontractors.

When you take the earlier project, this we primarily in the scope of a civil engineering,

here scope of a civil little bit of MEP and electrical is also certainly there.

But, now you go to our project like this, slightly different because it is public, but

still more engineering input today.

We go to something like a refinery, it is a hub of engineering inputs are required in

addition

to all of the others . Now, you go into things like a nuclear power plant, so it can get

really complex.

We can go on discussing this, but the basic issue I want to bring about is there are multiple

stakeholders and unless you understand, who the stakeholders are clearly, you will not

be able to manage a project.

So, a lot of project management is understanding stakeholders and managing them properly on

a project.

So, here is kind of a very comprehensive look at some of the stakeholders in a project,

which is a popular representation and if you go around, you will find it covers many of

them on a typical general project, not necessarily a construction project.

So, stakeholders again, I am just emphasizing stakeholder management is really a key issue.

Now, coming back to stakeholder management in one more aspect, when you take most of

these, all of them, what is your object, why is stakeholder management important.

What are the stakeholders trying to do for themselves?

profits.

Yes, stakeholders are trying the maximize their own and all businesses, they are trying

to maximize their objectives, and unless their objectives are aligned with the project management

objectives, it is going to be very, very difficult to manage the project.

So, getting stakeholders on board, getting correct stakeholders on board and managing

everyoneÕs objectives and balancing is really the key, is one of the keys.

The next idea we want to discuss is on the phases of a project, this is again very, very

important to understand, how does the project begin and how does the project end.

So, if you look at, and it also is important to look at it from the, from who are the players

in various phases?

So, here we have a project life cycle of phase, starting from the original idea of a project

going all the way to the decommissioning.

So, here we have performing business planning, so we can take any of this, let say take that

IT building as an example.

So, one of the IT companies want to desire whether they want to set up a building, so

yes.

So, here it is performing business planning, does not make business sense to invest in

the building.

So, you can look at the various sub-tasks, determine resource requirements, identify

corporate objectives, develop project concept.

Once the concept is approved, you go to pre-project planning; in most of these is not it is all

business decisions still, it is all you know for business point of view they making.

You know organize pre-project planning, select project alternatives, develop project definition,

decide whether to proceed with the project, in most of this is a financial decision you

know whether there is investing the project, brings the returns it should or not if I am

a private entity.

With the government entity, whether the investment will begin social returns or development returns,

and only then we come to this execute the project.

So, in the execute project phase you have developed detail design, procure equipment

and materials, construct the project, start up the facility.

After that it all goes to the operation, where you managing, operating you know looking at

improvements, improving in this thing

and finally, decommissioning the projects, so this is operation part.

Now, I just want to put does in the perspective of the engineering curriculum we are learning

today.

You are being, I mean most of you will be in the civil engineering program 4 or 5 years,

where to do you, what is the focus of the program, which, where are we in the program.

We are only learning execution, design and most of your curriculum are towards detail

design.

It is not even preliminary design detailed design.

So, if you look at of the curriculum here, I think 80 percent of your course work was

at least here and might be those of you, who are taking construction management you will

have more course work in the construction project aspect.

So, I just wanted to put the perspective of this is what a project goes through as project

managers for the owner.

So, for someone like we talked about project participant last time, stakeholders, where

does the owner interact with this project, where does the owner come in, where does the

owner go or how does the ownerÕs responsibility change, where is the owner.

Obviously, the owner is involved here, how does his responsibility change throughout.

Here he has a very high responsibility, I mean responsibility is always responsible,

it is ownerÕs responsibility, but day to day here it is probably very high, here it

is probably is less and then, of course, it is very high again.

What about someone like a contractor?

.

So, there is almost no responsibility in todayÕs contracting model; there is no responsibility

in and you know conventional model, but when you come here you have a lot of responsibility

and then, delivery and then, youÉ Someone like, so you can have a project manager from

two sides, you can have the owners project manager, you can have the contractor's project

manager or you know, the project scope for each is different.

The owners project manager will be looking at from at least from here to at least this

delivery of the project.

The contractor of the project manager might be looking early from somewhere, and this

phase still tells delivery of the project.

So, what I want to emphasize is the different stakeholders play different roles and each

other phases and ask for me finally, who is most gain for a successful project, which

stakeholder the owner.

Because finally, he is the one who is going to own it and he is going to the operate it

and in the owner has to be really involved although involvement decreases a little bit

they have to be a fully involved with this throughout the phases.

But, most of the other actors come in and leave the stage in different parts of it and

how you

manage that whole you know, who comes in when, when are they brought in how much information

do they have, what are the skills how do they leave is also very, very important part of

this whole project management process.

Now, let us just focus on this phase, which comes out here, so if I take to execute the

project, and I am taken at into, what we typically call us engineering procurement construction

and commission, so you might have heard the word EPC other acronym EPC yes or no, yes.

So, EPC stands for engineering procurement and construction and many of our construction

companies today are looking at EPC as a business there, so when the owner wants you to be built

a project in the older model I can I mean in one of the models I can get someone to

do design procure the equipment and a contractor to construct.

But, there is a delay in some of that it is happening, because the design has to be fully

complete before construction starts.

In the EPC model you try to get the same company, so let say EPC I try to get the same company

to do engineering, procurement, and construction.

What are the advantages, what are disadvantages?

Lesser number of player certainly better.

A lesser number of player certainly.

better accountability.

Better accountability, because one company is fully responsible.

work and start early.

Yes, if they manage it properly work and start early.

Quality.

Might be yes if work enough given at the same account company yes quality might also be

better.

Efficiency of a person.

Yes, efficiency, so all of these are the advantages.

What are the disadvantages?

They do not get the company who is really big enough to do EPC properly they will not

be able to deliver the project.

So, EPC is lot of responsibility I want to put this a little bit on a timeline, so if

you look at conventional project delivery it could be E-procurement starts somewhere

here, and construction will start somewhere here for this, or you know, or even you can

start immediately after engineering I am just showing an overlap basically there is a lag

between engineering and construction.

So, this is not acceptable today with the time frame we have, so if choose to keep engineering

you know very engineering same lot of companies are trying to do this today.

So, I am trying to save my due time and how am I saying it by overlapping engineering,

procurement, and construction, so this model is called fast track construction.

Obviously, management of this is far more challenging than the management of a conventional

method.

.

Yeah, yeah, so in this case also it can be done, but does not make sense for the wants

to same company to do this, and this is when a single company can do it more efficiently.

Typically here engineering is done by someone else and construction is done by someone else

procurement might be done by the owner themselves or you know some kind of consultant.

But, obviously, when I when I am can do this fast tracking it makes sense to give it to

a single company because then my communication between engineering construction I assume

is very good is much better because it is a single firm.

So, and in like we discuss, which case is management challenge is more?

Fast track yes, because you have to manage constantly you are drawings coming from engineering

to construction, you know the owner then changes his mindset is not exactly like this I will

have to go back to engineering so that interface has to be very, very well managed.

And today you will find a lot of projects and the fast track mode, but engineering is

where there is the engineering construction interface is the challenge and the missing

the weak link

is there, because traditionally we have doing this and organization was a setup for doing

construction after engineering was complete, but this schedule does not permit this today.

Another point I want to discuss is the is this graph is here which goes back to our

earlier phases performing business planning to operation and maintenance, and you have

two curves the yellow curve is showing, how cost egress as a project progresses.

So, you will find in the initial phase the cost there is not much money spent, but when

you are come into the design and construction phase that when most of the money gets spent

and then, operation and maintenance, there is again some amount spent.

Now, the purple curve on that is the influence, what is says is how much can I influence the

outcome of the project.

Obviously, in the earlier stages of my construction, I have a lot of influence on the project or

with little influence I can with the world with my influence I can easily make a change.

So, let say I take reinforce building I can say I am going to go with steel or concrete

where can I make the decision in the early phases after I do my design I cannot make

the decision.

So, my influences actually decrease and any influence any change I make here, what is

do it has a much bigger impact on the cost of the project.

So, early in the phase, I have high influence whether low cost implication later in the

phase I have low influence with high cost implication.

So, this is the way this is something which is to be kept in mind because it is really

important to understand that you need to make a decision, you want to make critical decisions

early in the project so that changes are minimized later.

Now, you come to how is actually a construction project organized, so there are many, many,

many variations here.

So, I am not saying this is just a typical structure, and I would say that they can be

asked many variations as there are companies and projects.

So, this just gives you an idea as to, where the scheduling function comes in.

So, if you take from the construction side I am looking from the contractor side you

might have a regional manager for a large contractor you will have a project manager

function might be for a specific project under the project manager you will have a variety

of groups you have the scheduling and planning, which is the function of this course and will

come back a what this person does you will have the quality control, you will have occupation

health safety environment, you will have the execution team, whose actually doing the work

you can have others, you will report project manager you will have subcontractors, who

will be doing work you know for the project.

So, this is kind of all the people on the project you certainly, then on the client

the architect the design engineers the project management consultant and I am not put them

into a particular organizational as shown relationships because depending on the contractual

conditions they can all vary.

But, these are . Finally, the players could come in these are there are different organizational

responsibilities, but our focus is on the scheduling person, and he typically reports

a project manager and he is the really critical person in the construction projects.