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Abstract
Information and Communication Technology (ICT) is beginning to be more frequently included as part of some large-scale construction / infrastructure project in Malaysia. The examples of these projects are the airport, highway, smart home, intelligent building and car park projects. This paper explores the differences of a typical construction / infrastructure projects and an ICT project; various perspectives of project management are being explored: project management scope, technical uncertainty, critical success factor, industry, and management focus. Issues of combining an ICT project into a construction project are discussed from a construction project manager perspective and an ICT project manager managing an ICT project manager perspective. Users involvement, sub-contractor coordination, risk management, communication and project cultural issues are explored.
Introduction
There is an increasing trend in Malaysia, that projects on Information and Communication Technology (ICT) are included as part of the infrastructure or construction turnkey project. This paper will focus on discussing the unique issues faced by project managers when managing ICT project in the construction environment. The paper will: 1. Look into a few examples of these ICT projects in the construction / infrastructure project environment. 2. Compare the differences in managing construction / infrastructure projects and ICT projects. 3. Explore in detail the issues of managing ICT projects in the construction industry
Intelligent building systems that can switch on or off air-conditioning and lighting systems for passengers waiting lounges based on the timing of various flights Flight Information Display Systems that provide timely flight information to passengers Complex baggage handling systems that automate the many traditional luggage handling Today, highways are constructed with many state of the art ICT systems such as: Several Highways around Klang Valley have Traffic Control and Surveillance Systems (TCSS), with Variable Message Signs (VMS), Close Circuit TV (CCTV) and traffic detectors (REAM, 1999) that allow highway operators to manage highways more efficiently Revenue Collections Systems, which consist of the point of sales system, prepaid system, such as Touch and Go, and traffic counting system at every toll plaza in Malaysia ( REAM, 1999), to collect revenue for highways operators. Even car parks are incorporating parking management systems to manage parking revenue and inform the motorist about the number of vacant spaces available at the entrance of the car park( REAM, 1999). Residential homes and commercial buildings today have smart home systems, building management systems, and state of the art security systems. These are all part of the housing development and commercial building projects.
Technology
A construction /infrastructure projects technological uncertainty ( Shenhar, A, Renier, J and Wideman, 1996) is normally low. See. Figure 1. It is based on established technology. Projects such as building construction and road building projects rely on existing and well-established base technologies to which all industry players have equal access. Many contractors can do the work and competition for the work is high. Therefore, the expectation of the customer is to have an acceptable product to be used for traditional purposes. What they want is to have their requirements met through standard solutions at minimum cost. An ICT project normally is of high technology content. Due to rapid technological change, many ICT projects involve new technology, development of new product, or customization / improvement on established technology. The customers therefore expect significantly improved capabilities, good return on investment. The technical risk is high. Project cost overrun is always a result of technical difficulty. As ICT projects have higher technological uncertainty than construction / infrastructure project, ICT project manager ( Shenhar, A, Renier, J and Wideman, 1996) are more involved in engineering and design-related issues such as design cycles, design freeze points and system engineering.
Increasing :
Multi-System Planning System Engineering Systems Integration Configuration Management Design Cycles Risk Analysis & Management
Increasing
Increasing
Simple Low
Technical Skills Flexibility Development and Testing Late Design Freeze Technical Communication Risk and Opportunity
High
Technological Uncertainty
Industry
The construction /infrastructure industry is a highly regulated; law and engineering standards are in place for specific minimum product expectation, while professional architects and engineers are expected to review and certify design and product delivery. The ICT industry, on the contrary, is a very dynamic industry. Standards only exist to specify system interface to ensure system interoperability. There is nothing to define product quality standards.
Product Deliverables
Construction / Infrastructure projects are dealing with tangible products ( Shenhar and Wideman, 1997 ). The project deliverables primary value is in the physical artifact. It is the value of the artifact that distinguishes it from other products. As construction / infrastructure projects are based on established technology delivering tangible products, meeting the project schedule and budget are ( Shenhar and Wideman, 1996) the most critical project management objective. ICT projects are delivering intangible products. Its value is ( Shenhar and Wideman, 1997 ) in its intellectual property. Although there are some physical results, this is not the essence of the product. The essential feature is new information and its physical aspect is only a vehicle for its conveyance and transformation. Since the project is delivering intangible products, project success measures are based ( Shenhar and Wideman, 1996) on how the system benefits the customer such as:
fulfilling customers needs solving customer problem customer is using the product business / commercial success revenue and profits enhanced
Customers of these intangible product projects, however are ( Shenhar and Wideman, 1996) more tolerable of project schedule and budget overrun.
Issues
Project managers of ICT and Construction / Infrastructure projects come from two very different industries. Their project management styles and perception of projects are different. When including an ICT project as part of a large construction / infrastructure project, the two different project management styles, cultures, communication methodology and expectation meet. Some unique issues have therefore arisen: 1. User involvement 2. Design 3. Communication 4. Managing Change 5. Subcontractor Coordination 6. Risk Management Here is a typical scenario of ICT project in a construction environment:
Client
Main Contractor Consultants C & S SubContractor M&E Sub- Contractor ICT System Sub- Contractor
A client awards a large construction/infrastructure project to a main contractor. This main contractor will appoint the necessary consultants and architect during the design stage. When the design is completed, the project will be divided into various sub-projects, and be awarded to the various sub-contractors who are the specialist in that particular field. Typically, there will be subcontractors to do the civil and structural work, various mechanical and electrical systems, and ICT related systems.
Estimating the cost of change is another challenge. It is difficult to estimate the cost of the system functional change, as there is hardly any practical yardstick to software cost estimation. 4. Sub-contractors coordination: Coordination with other contractors is another set of problems: construction based sub-contractors such as building, ducting, air conditioning, electrical all need ICT constructors inputs at a very early stage of the project. For example: The architect and building sub-contractor needs the dimension and space requirements of the computer room. Air-conditioning, electrical sub-contractors and consulting engineers need computer room operating environment requirements, power requirements. The sub-contractor who is building the ducting and cable risers would need the cable ducting requirements. Such requirements are normally needed in the early state of ICT system design, when the ICT sub-contractor may not be ready to provide a firm requirement. Sometimes, such requirements are needed when the ICT contract has not been awarded yet. Some of such requirements are difficult and costly to revise, especially after concrete is poured. 5. Risk Management: The construction project manager needs to pay special attention when managing the risks of an ICT system project: Warranty and License: ICT system warranty is normally short and software license may be need renewing yearly. The project managers need to ensure that software licenses and hardware warranty starts only after handover rather than when the sub-contractor delivers and get paid for the product. Technological risks in an ICT project is significantly higher than construction project: The use of state of the art technology normally means use of unproven and immature technology. New technical issues and problems will arise and delay the project. Putting different sub-systems and components that have not been integrated before poses project system integration risk. When one of more sub-systems face interfacing problem, the project is delayed. As previously mentioned, failure to capture the real user requirements will lead to delivering a white elephant. Special attention is needed to ensure users are involved in the system design activities right from the start of the project.
uncoordinated construction work; equipment damage by unstable power supply. Other contractors for providing incorrect requirements for space, cable riser and conduit also expose the ICT project to claims. Other additional factors that can contribute to project delays include: Land acquisition of land for construction may delay entire projects for months and years Public Scrutiny some large-scale construction projects may be subjected to public scrutiny for various issues such as removal or relocation of squatters on site and environmental issues.
Conclusion
Managing a construction and an ICT project is very different in many aspects. Construction and Infrastructure project management is concerned with effective management of scope, sub-contract management, effective utilization of material, labor and project infrastructure. When managing an ICT project, it is about effective technical management of user requirement capture, understanding of business and operation goals and technical risk management. When an ICT project is included as part of a large-scale construction infrastructure project, many unique issues arise. To manage an ICT project successfully in such environment, the following have to be achieved: Effective management of communication to bridge cultural and expectation differences of construction and ICT industry. Good understanding of the risk, project requirements and expectation of both the construction and ICT industries, in order to plan and control the project implementation effectively Addressing user involvement issues by having key users or business/operation consultant as part of the design team Effective coordination between ICT sub-contractors and construction sub-contractors. It is best to achieve this through coordinators who can understand these requirements of both industries, and communicate in the wavelength of the same. Technology Planning: Keep it simple! It is important to keep the ICT implementation in the construction environment as simple and practical as possible. This is because many business and operational requirements will never be clear until the users start their business operation. It is best to first implement a simple, yet flexible system for future expansion and modification system first, and allow the users to further improve the system after handover.
References:
Shenhar, A, Renier, J and Wideman, (1996) Project Management: From Genesis to Content to Classification INFORMS Conference, Washington DC. Shenhar, and Wideman, (1997) Towards a Fundamental Differentiation between Project Types, PICMET 97 conference Innovation in Technology Management The Key to Global Leadership, Oregon. Shenhar, and Wideman, (1996) Improving PM: Linking Success Criteria to Project Type, Symposium Creating Canadian Advantage through Project Management, PMI, Calgary. REAM, (1999) ITS Strategic Plan for Malaysia A Way Forward, Road Engineering Association of Malaysia .