Project Life Cycle Economics: Cost Estimation, Management and Effectiveness in Construction Projects

438 Pages·2015·2.04 MB·English

by  Massimo Pica

Project Life Cycle Economics
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Project Life Cycle
Economics
Cost Estimation, Management
and Effectiveness in Construction
Projects
Edited by
MassiMo PiCa
Foreword by
RUssELL D. aRCHiBaLD
© Massimo Pica and his contributors 2015
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise without the prior permission of the publisher.
Massimo Pica has asserted his right under the Copyright, Designs and Patents Act, 1988, to
be identified as the editor of this work.
Published by
Gower Publishing Limited Gower Publishing Company
Wey Court East 110 Cherry Street
Union Road Suite 3-1
Farnham Burlington, VT 05401-3818
Surrey, GU9 7PT USA
England
www.gowerpublishing.com
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN: 978-1-4724-1964-4 (hbk)
ISBN: 978-1-4724-1965-1 (ebk – ePDF)
ISBN: 978-1-4724-1966-8 (ebk – ePUB)
Library of Congress Cataloging-in-Publication Data
Pica, Massimo.
Project life cycle economics : cost estimation, management and effectiveness in
construction projects / by Massimo Pica.
pages cm
Includes bibliographical references and index.
ISBN 978-1-4724-1964-4 (hbk) -- ISBN 978-1-4724-1965-1 (ebook) -- ISBN 978-1-4724-1966-8
(epub) 1. Construction industry. 2. Project management. 3. Product life cycle. I. Title.
HD9715.A2P477 2015
624.068’4--dc23
2014041194
Printed in the United Kingdom by Henry Ling Limited,
at the Dorset Press, Dorchester, DT1 1HD
Contents
List of Figures ix
List of Tables xiii
About the Editor xv
About the Contributors xvii
Foreword xxi
Preface xxiii
List of Abbreviations xxv
Part I Fundamentals oF Project lIFe cycle economIcs:
IntroductIon to Part I
1 The Essence of Project Management and its Challenges 3
Massimo Pica
2 Project Management, Projects and Their Life Cycles: Historical
Views 13
Massimo Pica
3 Projects and Their Life Cycles: Some Current Views 27
Francesca Montanari
4 Introduction to Project Life Cycle Cost, Schedule and Requirements
Management 37
Federico Minelle and Franco Stolfi
5 Initiating the Project 55
Claudia Spagnuolo
6 Estimating and Budgeting for Project Activities: Project Work
Breakdown Structures and Cost Breakdown Structures 69
Tommaso Panetti
7 Developing and Managing the Project Schedule 85
Tommaso Panetti
vi ProjeCt Life CyCLe eConomiCs
8 Resource Issues in Schedule Management 99
Tommaso Panetti
9 Measuring, Monitoring and Controlling the Project Performance 111
Federico Minelle and Franco Stolfi
10 The Percentage of Completion as a Metric of Project Control:
Concepts and Calculation Methods 119
Massimiliano Arena
11 Project Change Management 137
Fabrizio Colista
12 Project Closeout and Lessons Learned 155
Carmine Russo
13 Human Factors in Project Life Cycle Economics 175
Barbara Boccasini
Part II Project cost and Value For constructIons
and FacIlItIes: IntroductIon to Part II 195
14 Planning for the Project Life Cycle of Constructions and Facilities 199
Massimo Pica
15 Fundamentals of Construction Economics 215
Massimo Pica
16 Identifying Cost and Life Expectancy Information 235
David Churcher
17 The Evolution of Construction Cost Estimation and Project
Management 247
Massimo Pica
18 Environmental Impact and Lifetime Cost-Effective Sustainability
of Constructed Assets 267
Massimo Pica
Contents vii
19 Value for Money Assessment in Construction Projects:
The Economic Effects of PPP/PFI in Projects 281
Massimo Pica
20 Driving Towards Successful Progress and Delivery of
Construction Projects 297
Massimo Pica
21 Construction Project Monitoring in Complex Contexts 313
Massimo Pica
Conclusions 327
Massimo Pica
Appendix 1
The New ISO Standard 21500 Guidance on Project Management 339
Carmine Russo
Appendix 2
Project Optimization through AHP Decision Support Methods 355
Barbara Boccasini
Appendix 3
The PILOT Method and Software Tools for Decision Making 369
Barbara Boccasini
Appendix 4
Project Evaluation through Impact Analysis Methods: An Example 389
Federico Minelle and Franco Stolfi
Index 403
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List of Figures
1.1 Applicability matrix of Project Management in projects 4
1.2 Applicability matrix of Project Management in projects: The level
of technology is added in Quadrant 2 5
1.3 Matrix of Project Management applicability to projects 6
2.1 The Pantheon in Rome 16
3.1 Six-Phase Comprehensive Project Life Cycle Model 34
4.1 Project process groups effort 38
4.2 Requirements Management approach 40
4.3 Risk Matrix 43
6.1 Graphical WBS 70
6.2 Project phases and deliverables 71
6.3 Hierarchical structure of a WBS 73
6.4 WBS dictionary with component descriptions 76
6.5 Project budgeting process 81
7.1 Example of a Gantt chart for Executive Management and sponsors 86
7.2 Project schedule for discussion with customers 86
7.3 Project schedule for discussion with team members 87
7.4 Project milestone schedule 87
7.5 Dependencies between project activities 91
7.6 Network diagram example 91
7.7 Example of a critical path 92
7.8 Correlation of tasks in a precedence diagram 94
7.9 Example of a precedence diagram 95
7.10 The precedence diagram at a glance 96
7.11 Detail of the precedence diagram: Boxes with a white background
are placed on the critical path 97
8.1 The RACI chart 102
8.2 Example of the crashing technique 104
8.3 Impact of the crashing technique on consecutive project activities 105
8.4 Impact of the fast-tracking technique on consecutive project
activities 106
8.5 Resource histogram 107
8.6 Resource histogram showing project team member roles 108
9.1 Risk class and risk drivers (examples) 112