UNIVERSITY OF MORATUWA STUDY ON PROJECT M A N A G E M E N T APPLICATIONS IN THE L O C A L BUILDING CONSTRUCTION INDUSTRY B Y S. V . L E E L A R A T N A SUPERVISED B Y Eng. P . M . G U N A S E K A R A UNIVERSITY OF M O R A T U W A THESES & DISSERTATIONS DEPARTMENT OF CIVIL ENGINEERING UNIVERSITY OF MORATUWA, MORATUWA, SRI LANKA. 6T9y 018, STUDY ON PROJECT MANAGEMENT APPLICATIONS IN THE LOCAL BUILDING CONSTRUCTION INDUSTRY B Y SUSIRI VIRAJA L E E L A R A T N A THE THESIS SUBMITTED IN PARTIAL FULFILMENT OF : ; THE REQUIREMENT FOR THE DEGREE OF MASTER OF ENGINEERING IN THE F A C U L T Y OF E N G I N E E R I N G D E P A R T M E N T OF CIVIL E N G I N E E R I N G SUPERVISED B Y Eng. P . M . G U N A S E K A R A We accept this thesis as confirming to the required standard University of Moratuwa October 1993 COMST1UCTBON ft STRUCTURAL ENGINEERING BEPARTMEMT OF CIVIL ENGINEERING UNIVERSITY OF MORATUWA. MM TUes, coll- 6 0 - 0 60313 Abstract The traditional method o f Project delivery system with the Architect as team leader, responsible for both design and management of the project with the contractor appointed on the basis o f a competitive tender, still predominates in Sri Lanka. However, in recent years variations of this method have emerged and we have seen almost the entire spectrum of alternative procurement systems including Executive Project Management, Non executive Project Management, construction management, etc. The objective of this study was to find out the actual practices being used in the field of Project Management in Sri Lanka, what services are offered and by whom, how effective they are and recommendations to improve the existing practices and to increase Project Managers participation. The study found out that, most of the problems could have overcome by :" educating the clients. The other significant finding was the requirement of a form of contract defining the responsibilities and accountability of a Project Manager. The report goes on to state that leadership qualities are more important than the technical qualifications of a Project Manager to keep the project particiapnts as a team. Further it recommends that Project Management should be recognized as a separate discipline with an institute. It also shows the need for professional bodies and government to encourage and recognize the functions of project management. ii Acknowledgements The author wishes to acknowledge the generous assistance offered by the following ; in particular to Brig W R Wijeratne, Brig A K Jayawardena and Col N Gunathilake, who allowed me to follow this course, to my supervisor Eng P M Gunasekara, who helped me to develop my initial ideas and guidance, to lecturers in the Departments of Civil Engineering, University of Moratuwa and Loughborough University of Technology(UK), to Krishna, Thushari and Felix who typed my unreadable draft, to M r V Halahakone who worked hard correcting my wayward grammar, and especially to my wife Lakmini, for sacrifying of two years of her holidays (and weekends), and for her patience, tolerance and encouragement. M y sincere appreciation is greatly extended to many members of the construction industry and professions who have shared with me their views on project management. Without that experience this thesis could not have been written. Finally this thesis will be a tribute to my parents who recognized and reminded me the value of education from my childhood. iii Contents Abstract ii Acknowledgements Hi 1. Introduction 1 1.1 Objectives 1 1.2 Background 1 1.3 Limitations 2 1.4 Methodology 2 2. Construction Project Delivery Systems 3 2.1 Classification 3 2.2 The Traditional Method 5 2.3 Design and Build 6 2.4 Weaknesses in Traditional Project Delivery Systems 7 2.5 Development of Project Management 8 2.6 Management Contracting 9 2.7 Non-Executive Project Management 11 2.8 Executive Project Management 12 3. What is Project Management? 14 3.1 Definitions 14 3.2 Concepts(Objectives) 15 3.3 International Practices 15 3.4 Functions of Project Management 19 3.5 Qualities of the Project Manager 20 iv 4. Project Management in Sri Lanka 23 4.1 Brief History 23 4.2 Present Situation 25 4.3 Future Attractions 26 4.4 Findings from the research 26 4.5 Summary o f issues 30 4.6 Effectiveness of the existing practices 30 4.7 Recommendations to improve the existing practices 31 5. Conclusion 33 References 35 Appendices A . Methodology A l Study Strategy A 2 Master Programme B. Sources o f Data B l List o f Project Management structured projects in Sri Lanka. B2 Framework of Parties involved B3 List o f clients, consultants and contractors interviewed B4 Questionnaire to clients B5 Questionnaire to Consultants/contractors B6 List o f Project Management services interviewed B7 Guide line format used for interviewing Project Managers C. Extracts from contract agreements used in a Project Management structured project (Alterations to the standard forms) C I Between the Client and the Project manager C2 Between the Client and the consultant C3 Between the Client and the contractor v