Addresses the needs of commerce, trade, and government and makes up a third of the total construction industry

Often reffered to as horizontal construction, includes roadways, bridges, tunnels, dams, airports, and railways

Defined primarily by the production activities that occur within the facility

Comprised of projects that improve the environment, maintain public health, and contribute to a community's quality of life

Construction Industry Sectors

Concerned with the allocation of scarce resources

Value of the alternative forgone by choosing a particular activity

Logical grouping of project management processes to achieve specific project objectives

A limiting factor that affects a system’s productivity

Best descriptors of the factors that need to be managed and controlled on a construction project in order to produce a successful outcome for the owner and all parties involved (Collaborative Process Institute)

Logical grouping of project management processes, 10 elements needed for a specific project

Process Groups

Includes the processes required to ensure the project includes all the work required, and only the work required, to complete the project successfully.

Includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so the project can be completed within the approved budget.

Includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations, and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and executions.

Includes the processes for incorporating the organization’s quality policy regarding planning, managing, and controlling project and product quality requirements, in order to meet stakeholders’ expectations.

Includes the processes to identify, acquire, and manage the resources needed for the successful completion of the project.

Includes the processes required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and ultimate disposition of project information.

Includes the processes required to manage the timely completion of the project.

Includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.

Includes the processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project.

Includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

Monitored, established, targeted, and controlled by means of an estimate or budget

Monitored and controlled by a detailed schedule, breaking each item of work down into its component parts.

Monitored and controlled by a variety of means, including specifications, punch lists, inspections, tests, and user surveys.

Monitored and controlled proactively by identifying potential risks and taking prudent steps to mitigate those risk

Monitored and controlled by means of an architectural program, which identifies the space needs and tracks compliance of the building design with those needs

Monitored and controlled by means of process flow diagrams and utilization analyses, which document the efficiency of the processes that will be performed in the completed facility

When the market demands more than you can deliver

When you produce more than the market will bear

A model of the constraints inherent in managing a project

Triple Constraint

The financial constraints of a project, also known as the project budget.

The tasks required to fulfill the project’s goals.

The schedule for the project to reach completion.

A subset of project management that includes the processes required to ensure that the project is completed within the approved budget. It consists of resource planning, cost estimating, cost budgeting, and cost control.

A subset of project management that includes the processes required to ensure that the project includes all of the work required, and only the work required, to complete the project successfully. It consists of initiation, scope planning, scope definition, scope verification, and scope change control.

A subset of project management that includes the processes required to ensure timely completion of the project. It consists of activity definition, activity sequencing, activity duration estimating, schedule development, and schedule control.

A subset of project management that includes the processes required to ensure that the project will satisfy the needs for which it was undertaken. It consists of quality planning, quality assurance, and quality control.

The total funds needed to monetarily cover and complete a business transaction or work project.

Costs that can be directly related to producing the products and services of the project

Costs that are not directly related to the products or services of the project, but are indirectly related to performing the project

Are monetary values included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict

Allow for future situations that may be partially planned for (sometimes called known unknowns) and are included in the project cost baseline

Allow for future situations that are unpredictable (sometimes called unknown unknowns)

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings.

Refers to a chart that is used to describe, visualize, and predict the performance of a project or business overtime.

Resources are allocated in the middle part of implementation

Resources are allocated in the early part of implementation. Application: For small projects, repetitive projects

Resources are allocated in the last part of implementation. Application: Complex projects

Purpose of the Cost S-Curve

A measure of how much cash a business brought in or spent in total over a period of time

The net cash amount coming into your business that you have available for a period of time.

The net cash amount that is going out of your business because you are paying someone else or another entity

This refers to regular business activities. Inflows include revenue from selling products or services, dividends received by the business, interest, and other cash receipts. Outflows include payroll, overheads, taxes, and payments to suppliers and vendors.

This refers to gains and losses from investments. Inflows include sales from business assets and payments from loans made by your business, Outflows include purchases of assets and loans made by your business.

This refers to capital that’s raised externally. Inflows include any money that’s been borrowed, as well as sales of your company’s securities. Outflows include dividend payments and servicing debt.

Operating cash flows are presented as a list of ingoing and outgoing cash flows. Essentially, the direct method subtracts the money you spend from the money you receive.

This presents operating cash flows as a reconciliation from profit to cash flow. This means that depreciation is factored into your calculations.

A methodology that combines scope, schedule, and resource measurements to assess project performance and progress

An industry standard method of measuring a project’s progress at any given point of time, forecasting its completion date and final cost, and analyzing variances in the schedule and budget as the project proceeds

The measure of work performed expressed in terms of the budget authorized for that work.

The value of work actually completed.

That portion of the approved cost estimate planned to be spent on the given activity during a given period. BUDGET.

The total of the cost incurred in accomplishing work on the activity in a given period.

Earned Value Analysis - Key Values: