Project Management

Instructor(s): Prof. Fred Moavenzadeh

MIT Course Number: 1.040 / 1.401J / ESD.018J

As Taught In: Spring 2009

Level: Undergraduate

Course Description

1.040 Project Management focuses on the management and implementation of construction projects, primarily infrastructure projects. A project refers to a temporary piece of work undertaken to create a unique product or service. Whereas operations are continuous and repeating, projects are finite and have an end date. Projects bring form or function to ideas or need. Some notable projects include the Manhattan Project (developing the first nuclear weapon); the Human Genome Project (mapping the human genome); and the Central Artery Project (Boston’s “Big Dig”). The field of project management deals with the planning, execution, and controlling of projects.

The course is divided into three parts:

Part 1: project finance
Part 2: project evaluation
Part 3: project organization

This course will cover the basic tools, skills, and knowledge necessary to successfully manage a project through its inception, design, planning, construction, and transition phases. There will be several guest lectures discussing current projects, and a construction site visit to MIT’s Media Lab extension.

Syllabus

Course Meeting Times

Lectures: 2 sessions / week, 1.5 hours / session

Calendar

LEC # TOPICS KEY DATES
1 Introduction  
2 Introduction II  
3 Project organization and contracts  
4 Construction finance  
5

Working the globe
Guest lecture: Fred Berger

Privatization

 
6 Public-private partnerships in financing of infrastructure Assignment 1 due
7 Private finance initiative  
8 Project finance  
9 How to get involved in private finance Term project proposal due
10 Case studies I  
11 Case studies II Assignment 2 due
12 Risk analysis  
13 Risk management  
14 Project financial evaluation
Guest lecture: Massood Samii, Southern New Hampshire University
 
15 Cost benefit analysis
Guest lecture: Massood Samii, Southern New Hampshire University
Assignment 3 case selection due
16 Guest lecture: Massood Samii, Southern New Hampshire University  
17

Capital program management
Guest lecture: Chris Gordon, Harvard University

Construction site visit

 
18 Project organization I  
19 The World of Skanksa and The Road Ahead
Guest lecture: Jim Becker, Skansa AB
 
20 Project organization II Assignment 3 due
21 Project control  
22 Project management engineering, procurement and construction  
23 Identifying and covering risks—current trends  
24

Masdar City: Zero Carbon, Zero Waste: ‘Someday is Today’
Guest lecture: Khaled Awad

Project uncertainty management

Term project report due
25 Term project presentations  

Readings

Recommended readings are listed by subject area. Students are not required to read the recommended material but are encouraged to do so if they are interested in further study.

Required Textbook

Amazon logo Hendrickson, Chris, and Tung Au. Project Management for Construction. Upper Saddle River, NJ: Prentice Hall, 1989. ISBN: 9780137312665.

This textbook is available online for free viewing.

Recommended Readings for Project Finance

Amazon logo Yescombe, E. R. Principles of Project Finance. New York, NY: Academic Press, 2002. ISBN: 9780127708515.

Amazon logo Grimsey, Darrin, and Mervyn K. Lewis. Public Private Partnerships: The World Revolution in Infrastructure Provision and Project Finance. London, UK: Edward Elgar Publishing, 2007. ISBN: 9781847202260.

Amazon logo Esty, Benjamin C. Modern Project Finance: A Casebook. New York, NY: Wiley, 2008. ISBN: 9780471434252.

Recommended Readings for Project Evaluation

Amazon logo Newnan, Donald G., Jerome P. Lavelle, and Ted G. Eschenbach. Engineering Economic Analysis. 8th ed. New York, NY: Oxford University Press, 2000. ISBN: 9780195151527.

Amazon logo Park, Chan S. Contemporary Engineering Economics. 3rd ed. Upper Saddle River, NJ: Prentice Hall, 2002. ISBN: 9788120321434.

Amazon logo Mishan, E. J. Cost-Benefit Analysis. New York, NY: Praeger Publishers, 1976. ISBN: 9780275565305.

Amazon logo Ray, Anandarup. Cost-Benefit Analysis: Issues and Methodologies. Baltimore, MD: Johns Hopkins University Press, 1984. ISBN: 9780801830693.

Amazon logo Ward, William A., Barry J. Deren, and Emmanuel H. D’Silva. The Economics of Project Analysis: A Practitioner’s Guide (EDI Technical Materials). Washington, DC: The World Bank, 1991. ISBN: 9780821317518.

Recommended Readings for Organization

Amazon logo Miller, Roger, and Donald Lessard. The Strategic Management of Large Engineering Projects. Cambridge, MA: MIT Press, 2001. ISBN: 9780262122368.

Amazon logo Morris, Peter W. G. The Management of Projects. London, UK: Thomas Telford Books, 1994. ISBN: 9780727716934.

Amazon logo Meredith, Jack R., and Samuel J. Mantel, Jr. Project Management: A Managerial Approach. 6th ed. New York, NY: John Wiley, 2005. ISBN: 9780471715375.

Amazon logo Levy, Sidney. Project Management in Construction. 5th ed. New York, NY: McGraw-Hill Professional, 2006. ISBN: 9780071464178.

Amazon logo Oberlender, Garold. Project Management for Engineering and Construction. New York, NY: McGraw-Hill Publishing, 1993. ISBN: 9780070481503.

Lecture Notes

Notes are available for selected lectures below.

LEC # TOPICS
1 Introduction (PDF)
2 Introduction II (PDF)
3 Project organization and contracts (PDF)
4 Construction finance (PDF)
5

Working the globe
Guest lecture: Fred Berger (PDF – 1.4MB) (Courtesy of Fredric Berger and The Louis Berger Group, Inc. Used with permission.)

Privatization (PDF)

6 Public-private partnerships in financing of infrastructure (PDF)
7 Private finance initiative (PDF)
8 Project finance (PDF)
9 How to get involved in private finance (PDF)
10 Case studies I
11 Case studies II
12 Risk analysis
13 Risk management
14 Project financial evaluation
Guest lecture: Massood Samii, Southern New Hampshire University (PDF) (Courtesy of Massood Samii. Used with permission.)
15 Cost benefit analysis
Guest lecture: Massood Samii, Southern New Hampshire University (PDF) (Courtesy of Massood Samii. Used with permission.)
16 Guest lecture: Massood Samii, Southern New Hampshire University
17

Capital program management
Guest lecture: Chris Gordon, Harvard University (PDF – 9.8MB) (Courtesy of Chris Gordon. Used with permission.)

Construction site visit

18 Project organization I (PDF)
19 The World of Skanksa and The Road Ahead
Guest lecture: Jim Becker, Skansa AB (PDF – 3.7MB) (Courtesy of Jim Becker. Used with permission.)
20 Project organization II (PDF)
21 Project control
22 Project management engineering, procurement and construction (PDF)
23 Identifying and covering risks—current trends (PDF)
24

Masdar City: Zero Carbon, Zero Waste: ‘Someday is Today’
Guest lecture: Khaled Awad

Project uncertainty management (PDF)

25 Term project presentations

Assignments

ASSIGNMENTS READINGS DUE DATES

Assignment 1

After reading the three documents, what advice would you give to the government with regard to investment in infrastructure as an economic stimulant? Please give the reasoning behind your advice, and contain your comments and discussion to not more than 500 words.

“Be Careful What You Wish For.” The Economist, February 5, 2009.

“Can The Centrists Hold?” The Economist, February 5, 2009.

Doshi, Viren, Gary Schulman, and Daniel Gabaldon. “Lights! Water! Motion!.” Strategy + Business 46 (2007).

Lec #6

Assignment 2

After reading the two articles accompanying this assignment and incorporating what you have learned from the lectures thus far on construction finance, private participation in infrastructure delivery (and any other relevant information), prepare a memo offering your comments on the assigned readings. For example, you may choose to comment broadly on the state of infrastructure delivery in the U.S. and the limitations or opportunities provided by various financing strategies, issues regarding the delivery of major/transformative projects, and/or any other issues related to the readings. This assignment is purposefully open-ended to encourage you to analyze the readings and craft an original response, but please feel free to raise any questions you may have about the assignment in class in Lec #9 or #10.

Your memo should be similar in length to the papers you prepared for Paper 1 (i.e., approximately 500 words). There are no strict formatting guidelines, but double-spaced text is preferred, and any references you use should be appropriately cited using footnotes or a reference list at the end of your document.

Cooper, Michael. “Big Ideas, Grand Plans, Modest Budgets.” The New York Times, February 14, 2009.

Poole, Robert. “Infrastructure Report Card: A Caution.” Surface Transportation Innovations 64 (2009).

Lec #11

Assignment 3

A report issued by the U.S. Department of Transportation consists of several case studies of recent projects in transportation. Please go over the list of cases and select two cases that, in your opinion, provide a good contrast. This contrast could be in terms of financing, nature of contract or organization. You are encouraged to look at additional information that you can find on the web or library related to your chosen cases.

Turn in a short paper (roughly 5-10 pages) with regard to your analysis and comparison of these two cases.

AECOM Consult Team. “Case Studies of Transportation Public-Private Partnerships in the United States.” Federal Highway Administration Report. July 7, 2007. (This resource may not render correctly in a screen reader.PDF ‑ 7.1MB)

Case selection due Lec #15

Paper due Lec #20

Site visit (PDF)   Lec #17

Download Course Materials

This package contains the same content as the online version of the course, except for any audio/video materials and other interactive file types.

Download here.

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