Unit 4 - Notes - Computerised Project

Management - CPM
This comprehensive guide explores the fundamentals of computerised project management with a focus on Microsoft
Project implementation for construction professionals. From initial project setup through execution, tracking, and
analysis, this document provides step-by-step instructions on leveraging digital tools to enhance project outcomes.
Learn essential techniques for resource allocation, cost management, progress reporting, and an introduction to Building
Information Modeling (BIM) integration.

by Siddhartha Nadadhur
Introduction to Computerised Project
Management
Computerised project management represents a significant evolution from traditional manual methods, offering
construction professionals powerful tools to plan, execute, and monitor complex projects with greater efficiency and
accuracy. These digital solutions enable real-time collaboration, automated calculations, and sophisticated analytical
capabilities that would be impractical or impossible with paper-based systems.

In the construction industry, where projects involve numerous stakeholders, tight schedules, and substantial financial
investments, computerised project management provides the necessary framework to coordinate activities, anticipate
challenges, and make data-driven decisions. Microsoft Project stands as an industry-standard platform, offering
specialized features tailored to the unique requirements of construction project management while integrating
seamlessly with other Microsoft productivity tools.
Benefits of Computerised Project
Management
Enhanced Efficiency
Automates routine tasks such as schedule calculations, resource leveling, and progress
tracking, allowing project managers to focus on strategic decision-making rather than
administrative work.

Improved Accuracy
Eliminates manual calculation errors and provides consistent methodology for estimating,
scheduling, and cost tracking, resulting in more reliable project plans and forecasts.

Better Communication
Facilitates clear visualization of project data through Gantt charts, dashboards, and
reports, enabling effective communication with stakeholders at all levels.

Real-time Insights
Provides up-to-date information on project status, allowing teams to identify and address
issues promptly before they impact the critical path.
Getting Started with Microsoft Project
Microsoft Project offers both desktop and cloud-based solutions designed specifically for professional project
management. Before creating your first construction project, it's essential to familiarize yourself with the interface and
basic functionality. The ribbon-based navigation organizes commands into logical groups, while the main view area can
display various perspectives of your project data.

The standard view combines a Gantt chart on the right with a task sheet on the left, providing both tabular and visual
representations of your schedule. Key elements include the timeline, task entry table, and view selector. For construction
professionals, particularly useful views include Resource Sheet, Task Usage, and Network Diagram, which help visualize
dependencies between construction activities.
Creating a New Construction Project
Define Project Calendar
Set working days, shifts, holidays, and weather contingencies specific to your construction site location
and requirements.

Configure Project Settings

Establish schedule calculation methods, currency units, default work hours, and project start or end date
constraints.

Save Project Template

Create standardized templates for similar construction projects to maintain consistency and save setup
time.

Set Baseline
Establish the approved project plan as a baseline against which actual performance will be measured.
Defining Project Scope and Deliverables
Before building out the detailed task list, it's crucial to clearly define the project scope and key deliverables. In Microsoft
Project, this foundation helps maintain focus on contractual obligations and prevents scope creep. Begin by
documenting major deliverables such as completed foundations, structural elements, building systems, and finished
spaces.

Use summary tasks to represent major construction phases like site preparation, foundation work, structural framing,
exterior envelope, mechanical/electrical/plumbing systems, interior finishes, and site completion. Each summary task
should encompass all work required to complete that phase, with clear start and end criteria. Linking the task structure
to contract documents and specifications ensures alignment with client expectations and facilitates progress tracking
against contractual milestones.
Building the Task List Structure
Constructing a well-organized task list is fundamental to effective project management. In Microsoft Project, tasks
should be arranged hierarchically, moving from high-level construction phases down to specific work packages and
individual activities. This Work Breakdown Structure (WBS) provides a logical framework for planning, tracking, and
reporting.

1 Create Summary Tasks 2 Define Subtasks

Begin with major construction phases (e.g., site Break down each phase into logical components,
work, foundations, structural) as Level 1 summary creating subtasks that represent discrete work
tasks. packages.

3 Specify Deliverables 4 Apply WBS Codes

Ensure each lowest-level task has a tangible, Assign standardized WBS codes that align with
verifiable deliverable that can be clearly marked as your organizational system and contract
complete. documentation.
Task Properties and Duration Estimation
Once your task structure is established, each task requires detailed properties to accurately model the construction
process. The most critical property is duration4the time needed to complete the task. For construction activities, use
working days rather than calendar days to account for weekends and non-working periods. Microsoft Project offers
several duration estimation approaches including fixed duration, effort-driven, and resource-dependent calculations.

Property Description Construction Example

Duration Time required to complete task 5 days for concrete curing

Effort-driven Work remains constant regardless 1,000 sq ft drywall installation

of resources

Fixed duration Task takes set time regardless of Inspection approvals (always 2
work days)

Constraints Specific date requirements Equipment delivery on July 15

Establishing Dependencies Between Tasks
Task dependencies create the logical sequence of construction activities, determining how the project will unfold over
time. In Microsoft Project, you can establish four types of dependencies between tasks, each reflecting a different
relationship. For construction projects, understanding these relationships is crucial for creating realistic schedules that
account for physical constraints, resource availability, and regulatory requirements.

Finish-to-Start (FS) Start-to-Start (SS) Finish-to-Finish Start-to-Finish (SF)

(FF)
The most common The second task can start The second task cannot
dependency type in once the first task has The second task cannot finish until the first task
construction, where one started. Example: Rough- finish until the first task starts. Rarely used in
task must finish before in electrical work can finishes. Example: Punch construction but might
the next can begin. begin once framing has list corrections cannot apply to specialized
Example: Concrete must started (with lag time). finish until final inspection handover situations.
cure before steel erection is complete.
can start.
Critical Path Analysis in Construction
Projects
The critical path represents the sequence of tasks that determine the minimum project duration. Any delay to a critical
path task will extend the project completion date unless mitigated. Microsoft Project automatically calculates the critical
path based on task dependencies and durations, highlighting these tasks to focus management attention.

For construction projects, understanding the critical path is essential for effective scheduling and resource allocation.
Critical activities often include long-lead procurements, foundation work, structural elements, and specialized
installations. Project managers should regularly review the critical path as the project progresses, as non-critical
activities can become critical if they experience delays. Microsoft Project provides specialized views and filters to isolate
and analyze the critical path, helping teams prioritize activities that directly impact the completion date.
Creating and Managing Resources
Resources in Microsoft Project represent the people, equipment, and materials needed to complete construction tasks.
Properly defining these resources enables accurate scheduling, cost estimation, and resource leveling. The Resource
Sheet view provides a centralized location to create and manage all project resources.

Work Resources Material Resources Cost Resources

People and equipment Consumable items measured Fixed costs not tied to work or
measured by time by quantity. Include concrete, quantity. Include permits,
(hours/days). Include trade steel, lumber, and finishes. bonds, insurance, and one-
contractors, equipment Specify unit costs and time fees. These resources
operators, supervisors, and consumption rates for help track financial obligations
machinery like excavators or accurate material forecasting. not directly tied to construction
cranes. Define availability activities.
calendars and hourly/daily
rates.
Assigning Resources to Tasks
Once resources are defined, they must be assigned to specific tasks to create an integrated schedule and budget. In
Microsoft Project, resource assignments determine how much work is required, how long tasks will take, and how much
they will cost. For construction projects, accurate resource assignments are critical for workforce planning, equipment
scheduling, and material procurement.

To assign resources, select a task and use the Assign Resources dialog or the Task Form view. Specify allocation units
(percentage of availability), work amount (hours), and any specific assignment details like cost rate tables or material
consumption rates. For construction-specific needs, consider using resource contours to model variable work patterns,
such as increased crew sizes during critical phases or reduced equipment utilization during setup and breakdown
periods.
Cost Estimation and Budgeting
Microsoft Project calculates project costs based on resource assignments, fixed costs, and material consumption. For
construction projects, accurate cost estimation requires careful input of labor rates, equipment costs, material prices,
and subcontractor fees. The system automatically computes task costs by multiplying resource rates by work hours or
quantity.

Labor Materials Equipment Subcontractors Permits & Fees

Budget views allow project managers to analyze costs by phase, resource type, or time period. The Cost table view
displays fixed costs, resource costs, and total costs for each task, enabling detailed financial planning. For construction-
specific needs, consider using cost rate tables to account for overtime, weekend work, or specialized conditions.
Resource Leveling for Optimal Allocation
Resource leveling resolves over-allocation issues by adjusting task schedules while maintaining dependencies. In
construction projects, this technique prevents unrealistic resource demands, such as scheduling the same crane for
multiple simultaneous activities or assigning more electricians than available. Microsoft Project offers both manual and
automatic leveling options.

To identify over-allocations, use the Resource Graph or Resource Usage views, which highlight periods where demand
exceeds availability. The automatic leveling function can then redistribute work by delaying tasks, splitting tasks, or
adjusting assignments based on priorities you establish. For construction projects, leveling priorities should consider
weather-sensitive activities, subcontractor availability windows, and critical path tasks that should remain fixed despite
resource conflicts.
Refining the Project Schedule
After initial schedule development, refinement is necessary to create a realistic and achievable plan. This process
involves reviewing and adjusting task durations, dependencies, constraints, and resource assignments to optimize the
project timeline while maintaining constructability. Schedule refinement should be collaborative, incorporating input from
construction managers, trade contractors, and key stakeholders.

Review Compress Add Buffers Validate Feasibility

Assumptions Schedule Incorporate rational time Ensure the schedule
Validate duration Apply fast-tracking and contingencies for high- aligns with site logistics,
estimates and crashing techniques to risk or weather-sensitive material lead times, and
dependency logic with critical path activities activities. labor availability.
experienced team where feasible.
members.
Creating the Project Baseline
The baseline represents the approved project plan against which actual performance will be measured. In Microsoft
Project, setting a baseline captures a snapshot of the current schedule, including start and finish dates, durations, work,
and costs for all tasks. This reference point becomes the foundation for earned value analysis and variance reporting
throughout the project lifecycle.

For construction projects, the baseline should be established after thorough review and approval by all key stakeholders,
including the owner, general contractor, and major subcontractors. Microsoft Project allows saving up to 11 different
baselines, which is particularly useful for tracking the impact of major change orders or recording periodic re-baselining
due to owner-approved schedule revisions. The baseline should be formally documented, with assumptions and
exclusions clearly noted to provide context for future variance analysis.
Project Tracking Fundamentals
Once construction begins, Microsoft Project becomes a powerful tool for tracking actual progress against the baseline
plan. Regular updates capture completed work, record actual start and finish dates, log actual durations, and document
actual costs. This data enables project managers to identify variances, forecast completion, and implement corrective
actions when necessary.

Establish Update Cycle Collect Actual Data

Determine frequency of project Gather progress information from
updates (typically weekly for field supervisors, subcontractors,
construction projects) and site records

Analyze Variances Update Schedule

Compare actual vs. planned Enter actual dates, percent
performance and identify issues complete, and remaining work in
requiring attention Microsoft Project
Recording Actual Progress
Microsoft Project offers several methods for updating task progress, each suited to different types of construction
activities. For simple updates, percent complete can be entered directly for each task. For more detailed tracking, actual
start dates, actual finish dates, actual work hours, and remaining duration can be recorded. The Tracking Gantt view
visually compares baseline and actual schedules, highlighting variances with different bar styles.

Construction-specific best practices include updating progress by deliverable rather than time spent, focusing on
physical completion percentages rather than effort expended. For example, foundation work might be 50% complete
when formwork and reinforcement are installed, even if that represents 75% of the labor hours. Microsoft Project's
Tracking table provides fields for both physical percent complete and duration percent complete, allowing these
distinctions to be captured and analyzed.
Managing Schedule Changes
As construction progresses, schedule changes are inevitable due to
weather delays, scope modifications, unforeseen conditions, or resource
constraints. Microsoft Project provides tools to manage these changes while
maintaining schedule integrity. The Update Project dialog allows
rescheduling uncompleted work from the status date, automatically
adjusting future task dates based on current progress and remaining
dependencies.

For significant changes such as owner-requested modifications or major

delays, the change management process should include formal schedule
impact analysis. Microsoft Project enables this through task filtering,
highlighting, and comparison of different scenarios. Schedule changes
affecting the critical path or contractual milestones should trigger
appropriate notifications to stakeholders, potential acceleration planning, or
change order documentation depending on the cause and contractual
terms.
Reporting on Project Progress
Microsoft Project offers diverse reporting capabilities to communicate progress to different stakeholders. Out-of-the-box
reports provide visual summaries of schedule status, task completion, resource utilization, and cost performance. These
can be supplemented with custom reports tailored to construction-specific needs such as submittal tracking, permit
status, or quality metrics.

Schedule Status Reports Resource Reports

Gantt charts with progress bars, milestone reports, Resource usage, availability, and allocation reports
and critical path analysis highlighting activities that are that help manage labor crews, equipment scheduling,
on schedule, behind schedule, or ahead of schedule. and material deliveries for upcoming work.

Cost Reports Dashboard Reports

Budget vs. actual cost reports, cash flow projections, Executive summaries combining key performance
and earned value analysis demonstrating financial indicators from schedule, resource, and cost data for
performance by work package and overall project. high-level project oversight and quick status
assessment.
Creating Custom Reports
While Microsoft Project includes many standard reports, construction projects often require customized reporting to
address specific contract requirements, organizational standards, or stakeholder information needs. The Report Design
tools allow creation of tailored reports combining tables, charts, text, and images into professional presentations.

Custom reports can incorporate external data sources, such as quality tracking databases or procurement systems, to
provide comprehensive project status. For construction-specific reporting, consider developing specialized views such
as three-week lookahead schedules for coordination meetings, submittal and procurement status reports for long-lead
items, or subcontractor performance dashboards for trade management. These custom reports can be saved as
templates for consistent application across multiple projects.
Analyzing Financial Progress
Earned Value Management (EVM) provides a systematic approach to measuring financial performance by integrating
scope, schedule, and cost measurements. Microsoft Project includes built-in EVM calculations that enable objective
analysis of budget status and forecasting of final costs. These metrics are particularly valuable for construction projects
where physical progress must be correlated with financial expenditure.

Key EVM Metrics Performance Indices Forecasting Methods

Planned Value (PV): Budgeted Cost Performance Index (CPI): Estimate at Completion (EAC):
cost of scheduled work EV/AC Projected final cost
Earned Value (EV): Budgeted Schedule Performance Index Estimate to Complete (ETC):
cost of completed work (SPI): EV/PV Cost to finish remaining work
Actual Cost (AC): Actual cost of To Complete Performance Index Variance at Completion (VAC):
completed work (TCPI): Work remaining/funds Budget - EAC
Cost Variance (CV): EV - AC remaining

Schedule Variance (SV): EV - PV

Cash Flow Analysis and Forecasting
Cash flow management is critical in construction projects, where significant expenditures occur throughout the project
lifecycle. Microsoft Project can generate cash flow projections based on the scheduled timing of tasks and their
associated costs. These projections help anticipate funding requirements, plan for major procurement activities, and
manage payment applications.

To create effective cash flow forecasts, ensure that costs are properly distributed across task durations using
appropriate accrual methods. Front-loaded costs might apply to material procurement, while labor costs typically accrue
linearly during task execution. Microsoft Project's Cash Flow report visualizes income and outgo over time, allowing
financial managers to identify periods of high expenditure that require advance planning. For construction-specific
needs, consider customizing these reports to align with payment application schedules and retainage calculations.
Risk Management in Microsoft Project
Effective risk management is essential for successful construction projects, which face numerous variables including
weather conditions, material availability, labor productivity, and regulatory approvals. Microsoft Project supports risk
management through several approaches, including task buffers, multiple baselines, and scenario modeling.

Risk Identification
Document potential risks using task notes or custom fields

Risk Quantification
Assess probability and impact using custom number fields

Risk Response
Add contingency tasks or extend durations to mitigate identified risks

Risk Monitoring
Track risk status through custom reports and
dashboards
Managing Multiple Interrelated Projects
Large construction programs often involve multiple interrelated projects that share resources, depend on common
milestones, or must be coordinated for logistical reasons. Microsoft Project offers several approaches to managing these
complex scenarios, including master projects, shared resource pools, and linked project files. These capabilities are
particularly valuable for phased developments, campus construction, or multi-building programs.

A master project file can incorporate multiple subprojects, allowing program managers to view consolidated schedules,
analyze cross-project dependencies, and generate program-level reports. The shared resource pool functionality
enables consistent resource definitions across projects while maintaining centralized tracking of availability and
assignments. For construction-specific applications, these tools support coordinated site logistics, sequential area
turnovers, and efficient allocation of specialized equipment or crews across multiple project areas.
Advanced Resource Management
Techniques
Construction projects frequently face complex resource challenges, including specialized trade availability, equipment
sharing, and variable productivity factors. Microsoft Project offers advanced resource management capabilities to
address these challenges, enabling more accurate scheduling and cost estimation.

200% 24/7
Peak Units Multiple Calendars
Maximum allocation percentage for resources during Different work schedules for various trade contractors,
intensive work phases, such as concrete pours or steel equipment operations, or shift work arrangements.
erection.

85% 48hrs
Efficiency Factor Lead Time
Productivity adjustment for weather impact, site Advanced notice required for resource mobilization,
conditions, or crew experience levels. particularly for specialized equipment or labor crews.
Integration with Other Software Systems
Modern construction management requires integration between scheduling, cost control, document management, and
Building Information Modeling (BIM) systems. Microsoft Project can serve as a hub in this ecosystem through various
integration capabilities, including data export/import, API connections, and direct integrations with other Microsoft
products.

Accounting Systems Document BIM Platforms Reporting Tools

Integrate with financial Management Establish bidirectional Export schedule data to
software to synchronize Connect with document communication with BIM business intelligence
budget data, actual costs, control systems to link models to visualize platforms for advanced
and payment processing schedule activities with schedule activities in 3D analytics and custom
for comprehensive financial related submittals, RFIs, space and link model dashboard creation.
control. and specifications for elements to timeline.
contextual access.
Introduction to Building
Information Modeling (BIM)
Building Information Modeling (BIM) represents a transformative approach
to construction project management, creating digital representations of
physical and functional characteristics of buildings. When integrated with
Microsoft Project, BIM enables 4D scheduling4the linking of 3D model
elements to schedule activities4providing powerful visualization and
coordination capabilities.

The BIM-schedule integration facilitates virtual construction sequencing,

allowing teams to identify spatial conflicts, optimize construction
approaches, and communicate complex phasing to stakeholders. Microsoft
Project can exchange data with BIM platforms through third-party
connectors or manual export/import processes. For construction managers,
this integration supports more accurate planning, enhanced communication,
and improved decision-making by providing visual context to abstract
schedule information.
Best Practices for Construction Project
Management
Effective implementation of computerized project management requires adherence to industry best practices that
maximize the value of tools like Microsoft Project while accommodating the unique characteristics of construction
projects.

Balance Detail and Manageability Maintain Schedule Currency

Develop schedules with sufficient detail to guide Update the schedule weekly, recording actual
execution but not so granular that they become progress before projecting forward. Establish clear
unmanageable. Focus detailed planning on near- data collection protocols and verify field
term activities (3-6 week horizon) while maintaining information for accuracy. Review and reconcile
appropriate summary-level projections for longer- subcontractor schedules with the master schedule
term work. regularly.

Foster Collaborative Planning Anticipate and Mitigate Constraints

Involve key stakeholders, including trade Identify long-lead items, regulatory requirements,
contractors, in schedule development and updates. and resource limitations early. Develop contingency
Use pull planning techniques for detailed phase plans for common delay scenarios. Monitor
scheduling. Publish and distribute schedule procurement and approval processes as diligently
information in accessible formats for field use. as field activities.
Training and Implementation Strategies
Successful adoption of Microsoft Project for construction management requires thoughtful implementation and
adequate training. Organizations should develop a structured approach that considers existing processes, user
capabilities, and project requirements. Begin with a pilot implementation on a single project before expanding to wider
use, allowing time for process refinement and organizational learning.

Expert Proficiency
Advanced techniques for program management and integration with
enterprise systems

Practical Application
Role-specific training focusing on daily tasks and project-specific
processes

Fundamental Knowledge
Core concepts, terminology, and basic navigation for all
users

Training should be tailored to different user roles, with project managers receiving comprehensive education while
superintendents and field personnel might focus on viewing, updating, and reporting functions. Ongoing support
through internal champions, reference materials, and refresher sessions helps maintain consistent usage and continuous
improvement. Consider integrating Microsoft Project training with broader process education about construction
scheduling principles, critical path management, and resource optimization.