Introduction - Construction Project Scheduling and Control - page 7

will help in making financial arrangements. The final design may later differ
significantly.
• A budget number (e.g., $6 million). The planner must be aware of all project-
related expenses, such as the cost of land, permits, design fees, construction,
and so forth.
• A time frame (i.e., when the project is expected to start and end).
• Other pertinent information that may be used to justify the project or clarify
some of its aspects. If an investor is doing the planning, a pro forma helps
predict the rate of return and helps in making the decision as to whether or not
to build the project.
PMI (PMI, 2013) defines a project management plan as “the document that
describes how the project will be executed, monitored, and controlled.” It may be
summary or detailed and may be composed of one or more subsidiary management
plans and other planning documents. The objective of a project management plan is
to define the approach to be used by the project team to deliver the intended project
management scope of the project. 2 It captures the entire project, covering all project
phases, from initiation through planning, execution, and closure.
The level of details of the project management plan depends on several factors:
the purpose of the plan, the timing of the plan, and the detailed information available
(which is, in part, a function of the timing).
The project manager creates the project management plan following input from
the project team and key stakeholders. The plan should be agreed on and approved by
at least the project team and key stakeholders. It is a good practice, used by professional
project management and consulting firms, to have a formal project management plan
approved in the early stages of the project and applied throughout the project. Many
owners (clients) require the contractor to submit a project management plan and have
it approved as part of the contract documents.
Many professional organizations have an office dedicated to the project manage-
ment planning and effort, called a project management office (PMO) , which is defined
by the PMI as “an organizational structure that standardizes the project-related gov-
ernance processes and facilitates the sharing of resources, methodologies, tools, and
techniques” (PMI, 2013).
Tip Box 1.4
Have you ever thought of applying project management principles to your own life?
2 This paragraph was taken from the PMI PMBOK Guide, 5th edition, 2013.