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Efficiency Improvement in Construction Projects
2
Frank WiesseDrees & Sommer Middle EastDirector Saudi Arabia
+966 50 47 23 [email protected]
Introduction
Project Management & PMO
Construction Management
Finance Controlling
Efficiency Improvement in Construction Projects
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
3
How the Clientexplained it
How the Projectwas understood
How the Designerdesigned it
The Challenges
Introduction
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
4
How the Contractorconstructed it
What was the resultfor testing
What was readyfor handover
How the Client wasbilled
The Challenges
Introduction
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
5
The Challenges
Introduction
What the Clientreally needed
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
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The Project Life Cycle
Project Management & PMO
Initiation
Planning I
Planning II
Execution & Control
Closing
Operation
Basic & StrategicPlanning
ExecutionPlanning
DecisionGate
DecisionGate
DecisionGate
DecisionGate
DecisionGate
Phase -1 Phase 0 Phase 1 Phase 2 Phase 3 Phase 4
Project Development
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
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Governance(PMO & Technical Support)
operational dutiesSTAFF FUNCTION
Managementmanagerial responsibility
LINE FUNCTION
Other participantsexecution
The Understanding
Project Management & PMO
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
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Governance(PMO & Technical Support)
operational dutiesSTAFF FUNCTION
no executive authority no authority to decide & enforce delegable
Managementmanagerial responsibility
LINE FUNCTION executive authority authority to decide & enforce non delegable original Client’s duties
Other participantsexecution
consultants contractors suppliers
Project Management & PMOThe Understanding
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
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SUCCESS
Quality
Cost Time
Performance Control
Progress Control
Project Controlling
acc. Project Management Institute
The Methodology
Project Management & PMO
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
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The Back Office- providing project-related services;- supporting a specific project or program.
The Core- providing enabling processes;- supporting continuously the management of projects
or program throughout an organization.
The Organization- responsible for the alignment of projects and program works
to corporate strategy;- establishing and ensuring appropriate enterprise governance;- performing portfolio management functions to ensure strategy
alignment and benefits realization.
The PMO
Project Management & PMO
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Approach
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Organization &Communication
Design &Coordination
Procurement &Contracting
Logistics &Site Observation
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Approach
12
Financial StatusProject Controlling
Program SetupOptimization
Organization &Communication
Design &Coordination
Procurement &Contracting
Logistics &Site Observation
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Approach
13
Financial StatusProject Controlling
Program SetupOptimization
Lean Management
Progress & Performance Control
Organization &Communication
Design &Coordination
Procurement &Contracting
Logistics &Site Observation
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Programs
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Start Completion
Construction
Management
set up & manage
ManagementConstruction period
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Programs
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Start Completion
Construction
Management
set up & manage
Management
Advisory
Services
train, advise & guide
ImprovementConstruction period 6 months
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Programs
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Start Completion
Advisory
Services
train, advise & guide
Improvement
Task Force
Services
manage & execute
Completion
Construction
Management
set up & manage
ManagementConstruction period 6 months 3-6 months
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Target Systems
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Construction
Site
Building/Construction Works
Design Works
Logistics
Finance
Contracting
Project Setup
Program
.
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Improvement Process
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Construction
Site
Building/Construction Works
Design Works
Logistics
Finance
Contracting
Project Setup
Program
S Y S T E M B U S
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Principle
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CAUSE EFFECTon site
Performance
Control
Diagnosis
Evaluation
Improvement
Discovery
Analysis
Progress
Control
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Communication
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Specificplanners
Serviceproviders
Developerclient
Contractors
Projectmanagement
General planner/architect
Sub-contractors
Authorities
Fax
Post
Telephone
Notes
File system 1
File system 2
www
ftp
ISDN
Without
- Everyone's on 'his' own
- Rumours and hearsay – no proof
- Lots of copies & versions
- No data security in the www
- Inadequate documentation
- Inefficient and costly
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Construction ManagementThe Communication
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Specificplanners
Serviceproviders
Developerclient
Contractors
Projectmanagement
General planner/architect
Sub-contractors
Authorities
With
+ Central interface for EVERYONE
+ Unmistakable results + proof
+ Rules for/to communicate
+ High data security using https
+ Efficient documentation & research
+ Considerable potential savings
Project
Platform
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
62.50%
6.25%
9.38%
9.38%
3.13%
9.38%
Cost of building works
Main contractor's preliminaries
Main contractor's overhead & profit estimate
Project/ design team fees
Other developments cost
Imputed cost (risk & inflation)
* mid-size project assumed (SAR 200m < Base Cost < SAR 800m)
Finance ControllingThe Base Cost/ Budget Estimation*
22 Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Finance ControllingThe Cash Flow Forecast
23
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Phase -1(Initiation) Phase 0
(Planning I) Phase 1(Planning II)
Phase 2(Execution &
Control)
Phase 3(Closing)
Efficiency Improvement in Construction Projects – Frank Wiesse, Director Saudi Arabia – 2017
Many thanks for your attention!
