Dr. Bassam Ghalman, an expert in development projects and supervisor of the Al-Haramain Railway Project, summarized the key elements and success factors of projects in 20 points that ensure their excellence and success. He explained that one of the most important reasons for a project’s success is having a project resource management team that handles planning and cost estimation, determines actual needs—including labor, equipment, machinery, and construction materials—and monitors subcontractors.
This was announced at a well-attended forum recently held in the Saleh Abdullah Kamel Hall at the Makkah Chamber of Commerce and Industry. The forum addressed the roles and responsibilities of a project manager, summarizing them as planning, scheduling, organizing, structuring, hiring, staff development, monitoring, control, follow-up, and guidance.
Project Resource Management
Drawing on his personal experience in project management, Ghalman pointed out that sourcing all types of equipment from a single supplier is preferable to dealing with multiple suppliers, as this allows for greater benefits in securing the supplier’s services for spare parts and maintenance, emphasizing that maintaining equipment and machinery—especially large items—on-site is more efficient than transporting them off-site, as it saves time.
He noted that the Resources Department is responsible for ensuring the quality and quantity of materials required for the project, emphasizing the importance of adhering to specifications and standards, as well as the delivery date and method, and added “It is poor practice for project managers to deliver the necessary materials to the site too early, as this may hinder the movement of equipment, vehicles, machinery, and workers, and expose them to theft, vandalism, and damage due to adverse weather conditions.”.
Subcontractor Management
Ghalman emphasized the importance of managing subcontractors for the success of any large project that requires the involvement of specialized contractors, noting that the golden rule in dealing with subcontractors is “Having the subcontractor sign the same contract that the general contractor signed with the owner, thereby binding the subcontractor to the same terms and conditions as those applicable to the general contractor,” explaining that subcontracting is a tool used by unscrupulous contractors, and that in-house contracting is a philosophy through which the main contractor seeks to achieve gains with the least possible effort, given that the system permits this approach for laudable reasons, including providing specialized contractors with the opportunity to participate in the execution of certain components of ongoing projects.
Good Project Planning
Ghulman explained that one of the factors for the success of any project is good planning, including identifying the processes to be carried out, as well as defining the relationships between each activity within the project. He noted that one of the most well-known planning methods is the Critical Path Method, which is used in 90% of the projects implemented in the Kingdom.
Project Cost Calculation
Ghalman discussed the role of project cost estimation in ensuring successful implementation, saying “The cost estimation process begins at the start of the project design phase to assess the financial capabilities and resources of the owner or developer. Furthermore, the purpose of cost estimation is to ensure that the engineering designs are implemented without exceeding the estimated budget for the project.”.
Two Methods for Calculating Cost
He explained that there are two methods for estimating the cost of any project. The first is the approximate method, which is characterized by its simplicity and speed of implementation but lacks precision. An example of this is the method used to estimate the cost of building a hospital, where the cost is typically estimated based on the number of beds, at one million riyals per bed; thus, the estimated cost of a 400-bed hospital project would be 400 million riyals.
He noted that methods for estimating project costs include the unit-area method for calculating building floor areas and the unit-volume method for calculating the construction costs of tanks, refrigeration units, and warehouses. The cost-plus method is used to estimateand similar projects, such as villas and residential apartments. There is also the project-part cost method, which involves estimating the costs of constructing the foundations, then the columns, and finally the ceilings.
He noted that the second method for estimating the cost of any project is the detailed method, which is considered the most important and provides more accurate figures; it can only be applied once the project drawings, specifications, and terms and conditions are complete and available.
