PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS o Construction

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS o. Construction sector is a key enabler for social and economic development worldwide o. Construction sector contribution in Tanzania ü 2010 -GDP -7. 8% (USD 1. 6 b) ü 2015 -GDP-13. 6% (USD 6. 0 b)

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS o. Construction projects worldwide have a poor reputation of TIME & COST OVERRUN o CAUSES –Frequent Variations, contractor’s financing, delayed payment, Corruption, poor project management etc o POTENTIAL SOLUTION o. An effective Project Management System

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS RISKS INHERIT IN CONSTRUCTION PROJECTS o Construction Contract is all about shifting the risks from the Client to the Contractor for a REWARD ü Financial Risks ü Contractual Risks ü Operational Risks ü Environmental Risks

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS RISKS INHERIT IN CONSTRUCTION PROJECTS o RISK MANAGEMENT ü Avoid the risk ü Transfer the risk ü Mitigate the risk ü Accept

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS 4 KEYS TO EFFECTIVE CONSTRUCTION PROJECTS PLANNING AND MANAGEMENT 1. PLANNING üMobilization ü Developing deliverables/milestones(Planning tools) ü Determining resources (equipment, materials, labour)

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS 4 KEYS TO EFFECTIVE CONSTRUCTION PROJECTS PLANNING AND MANAGEMENT 2. MONITORING PROGRESS AND MAKING ADJUSTMENTS ü Time control ü Cost Control ü Quality Control ü Safety management

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS 4 KEYS TO EFFECTIVE CONSTRUCTION PROJECTS PLANNING AND MANAGEMENT 3. COMMUNICATIONS ü Standard construction communication (Progress report, payment requests, work request, Claims)etc ü Other Communications

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS 4 KEYS TO EFFECTIVE CONSTRUCTION PROJECTS PLANNING AND MANAGEMENT 4. COLLABORATIONS ü Good communication ü Team work ü Common desire to finish the project successfully ü Trust for each other

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONSTRAINTS HINDERING CONTRACTORS PERFORMANCES 1. CORRUPTION o Major obstacles to economic development o Construction sector ranks as one of the most prone to corruption worldwide o Produces poor quality and overpaid infrastructure

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONSTRAINTS HINDERING CONTRACTORS PERFORMANCES 2. DELAYED PAYMENT TO CONTRACTORS o Affects Contractor’s cash flow o Leads to delay in completion of the project o Leads to abandonment of the project o Creates financial hardships

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONSTRAINTS HINDERING CONTRACTORS PERFORMANCES 3. INADEQUATE MANAGERIAL SKILLS o Construction is a risky business so needs special skills to manage o Skills to identify the risks and manage them o Investing in trained project managers is important for both contractors and clients

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS 1. Interventions by PPRA o Setting aside of funds (Payment guarantee) o Force account (Local fundi) o. Review criteria for Employer’s personnel (Project Manager) o Review clause related to delay of payment by Client

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS 2. Interventions by CRB o Project Registration –Monitor up to completion o Regular compliance check– Human resources o Increase efforts to ensure Contractors participation in mega projects

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS 3. Interventions by ERB o Project Registration –monitor up to completion o Expedite the envisaged Project management training series o Increase efforts to ensure mega projects participation by local firms

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS 4. Interventions by AQRB o Project Registration –monitor up to completion o Project management training series o Increase efforts to ensure mega projects participation by local consulting firms

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS Joint efforts CRB, ERB & AQRB o Create joint platform for discussion of projects success/failure o Best Innovation award of the year

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS STAKEHOLDERS CONTRACTORS o Earlier risks identification and assessment o Careful review of all contract documents o Invest in human resources o Continue learning (SSTP)

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS Construction Professionals(Engineers, Architects & Quantity Surveyors) MAINTAIN A HIGHLY DISCPLINED MIND TO GAIN PUBLIC TRUST AND ADMIRATION o Scrupulous attitude ü Detailed ü honest

PLANNING AND MANAGEMENT OF CONSTRUCTION PROJECTS CONCLUSION AND RECOMMENDATIONS TO STAKEHOLDERS Construction Professionals(Engineers, Architects & Quantity Surveyors) MAINTAIN A HIGHLY DISCPLINED MIND TO GAIN PUBLIC TRUST AND ADMIRATION o Innovative attitude ü Passion ü Desire to always learn new things