Chapter 1 · 6 hours
Introduction of Project and Project Management
IOE past exam questions
Past questions and answers
36 questions set from this chapter, 6 of them more than once; 4 are most repeated (set, or a close variant set, in 3 or more exams). Most repeated first.
- Most repeated · 5 of 26 exams
- Asked 5 times
- 2072 Chaitra · 5 marks
- 2070 Chaitra · 5 marks
- 2070 Chaitra (old course) · 4 marks
- 2066 Bhadra (old course) · 4 marks
- 2068 Baisakh (old course) · 8 marks
How are project goals or objectives set? Explain the goal setting criteria (SMART) with the aid of a suitable example.
Answer
Goals and objectives are set by understanding the need or problem, consulting the stakeholders, and stating the end result in clear, measurable terms. The usual sequence is:
- Identify the need or problem and the stakeholders.
- State the broad goal (the long-term purpose).
- Break the goal into specific objectives (short-term, measurable results).
- Test each objective against the SMART criteria.
- Get approval from the client and revise if resources or constraints do not match.
SMART criteria
| Letter | Criterion | Meaning |
|---|---|---|
| S | Specific | Clear and unambiguous; says what, where and for whom |
| M | Measurable | Quantity, quality or cost can be checked |
| A | Achievable | Possible with available resources and technology |
| R | Realistic / Relevant | Matches the need and the organisation's capacity |
| T | Time-bound | Has a deadline or time frame |
Example
Poor objective: "Improve the road to the village."
SMART objective: "Construct a 12 km, 5.5 m wide black-topped road from X to Y, within 24 months, at a cost not exceeding NRs 40 crore, meeting Department of Roads standards."
- Specific: 12 km black-topped road from X to Y.
- Measurable: length, width, cost and standard are given.
- Achievable: the equipment, contractor and budget are available.
- Realistic: the village needs year-round access.
- Time-bound: 24 months.
- Most repeated · 5 of 26 exams
- Asked 5 times
- 2073 Shrawan · 10 marks
- 2066 Bhadra (old course) · 8 marks
- 2081 Bhadra · 6 marks
- 2076 Chaitra · 6 marks
- 2072 Chaitra · 4 marks
Discuss the project phases and life cycle, giving examples of the activities carried out in the different phases and stages of the life cycle.
Answer
A project life cycle is the sequence of phases through which a project moves from conception to closure. Each phase has its own activities and ends with a decision point.
The project life cycle is the series of phases a project passes through from its start to its end. Each phase ends with a review (gate) before the next begins. The common four-phase model is:
Initiation -> Planning -> Implementation -> Termination
(Concept) (Definition) (Execution) (Closure)
Effort
^ ___
| / \___
| __/ \__
|__/ \___
+--------------------------> Time
| Phase | Main work |
|---|---|
| Initiation / concept | Identify need, pre-feasibility, objectives, preliminary cost, go or no-go decision |
| Planning / definition | Detailed design, WBS, schedule, budget, resource and risk plans, contracts |
| Implementation / execution | Mobilisation, procurement, construction or manufacturing, monitoring and control |
| Termination / closure | Testing, handover, final payment, documentation, lessons learned, release of resources |
Activities in each phase
Initiation (concept):
- Identify the need or problem and collect basic data.
- Generate and screen project ideas; select the best option.
- Carry out pre-feasibility and feasibility studies (technical, economic, financial, environmental, social).
- Define objectives, scope and main deliverables.
- Estimate preliminary cost, time and resources.
- Identify stakeholders and the funding source.
- Prepare the project proposal or concept note and take the go or no-go decision.
- Appoint the project manager and form the core team.
Planning (definition):
- Detailed survey and design; prepare drawings and specifications.
- Prepare the work breakdown structure (WBS), schedule (bar chart, CPM, PERT) and budget.
- Plan resources, quality, communication and risk.
- Prepare tender documents, evaluate bids and sign contracts.
- Obtain approvals, permits and land.
Implementation (execution): mobilisation, procurement, construction, monitoring of time, cost and quality, quality testing, payments and reporting.
Termination (closure): final inspection, commissioning, handover with as-built drawings, final payment, demobilisation, completion report and lessons learned.
Example: for a bridge, initiation covers traffic study and feasibility; planning covers design, estimate and tender; implementation covers foundation, piers, deck and approach roads; termination covers load test, handover and final bill.
- Most repeated · 4 of 26 exams
- Asked 4 times
- 2078 Bhadra · 6 marks
- 2072 Chaitra · 1+4 marks
- 2066 Bhadra (old course) · 8 marks
- 2070 Chaitra (old course) · 2+3+3 marks
Define a project. Explain the characteristics of a project with appropriate examples.
Answer
Definition
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Characteristics
| Characteristic | Meaning | Example |
|---|---|---|
| Specific objective | Defined purpose and deliverable | Complete a 40 m span bridge |
| Definite life span | Fixed start and end date | Start Shrawan 2080, finish Asar 2082 |
| Unique / non-routine | Not a repetitive task; each project differs in site, design, conditions | Two dams are never identical |
| Progressive elaboration | Details are developed step by step as information increases | Concept, feasibility, detailed design, drawings |
| Temporary team | Team formed for the project and dispersed at the end | Engineers, contractors, consultants |
| Limited resources | Fixed budget, manpower, equipment, time | Budget of NRs 50 crore |
| Uncertainty and risk | Future events cannot be fully predicted | Landslide, price rise, delay in land acquisition |
| Interdependent tasks | Activities depend on each other | Foundation before columns |
| Customer / stakeholders | Client, funder, users, public | Department of Roads, donor, villagers |
| Multi-disciplinary and cross-functional | Different specialists work together | Civil, electrical, environment, finance |
- Most repeated · 3 of 26 exams
- Asked 3 times
- 2074 Chaitra · 8 marks
- 2081 Bhadra · 5 marks
- 2082 Baisakh · 5 marks
Explain in detail how a project operates in a dynamic environment, with a suitable technical example. (All the activities progressing according to schedule is seldom the case in a project.)
Answer
A project is not carried out in a closed laboratory; it works in an environment that keeps changing. Because of this, activities seldom progress exactly as scheduled.
Sources of change
- Political: change of government, policy, strikes and bandhs.
- Economic: price escalation, exchange rate, interest rate.
- Social: local objections, land and compensation disputes.
- Natural: monsoon, floods, landslides, earthquakes (such as 2015).
- Technical: design change, new technology, unexpected geology.
- Resource: delay in funds, material shortage, equipment breakdown, labour shortage.
- Stakeholder: client's change orders, delayed approvals.
Technical example: a hydropower tunnel project
Plan: 1,500 m headrace tunnel excavated in 12 months. In practice, poor rock is met at 600 m, so extra support is needed and progress falls. Heavy rain floods the adit and a fund release is delayed. The schedule slips, cost rises and the design of the lining is revised.
How the project manager responds
- Monitor progress and environment regularly.
- Update the schedule and budget (re-planning).
- Keep contingency time and money.
- Use risk management and change control.
- Maintain communication with all stakeholders.
Hence planning must be flexible, and control must be continuous.
- Asked 2 times
- 2070 Asar · 4+6 marks
- 2076 Chaitra · 3+4 marks
Define or differentiate bilateral, multilateral and joint venture projects with examples. Discuss the external environment in which a project is operated and the major elements that influence it.
Answer
Bilateral, multilateral and joint venture projects
- Bilateral project: financed or implemented by two countries (or a country and one agency) under an agreement. Example: Pokhara International Airport (loan from China Exim Bank), or roads built with Indian grant assistance.
- Multilateral project: financed by several countries through an international agency. Example: projects funded by the World Bank, ADB or UN agencies, such as the Kathmandu Valley Water Supply improvement.
- Joint venture project: two or more parties (companies or a company and government, often foreign and local) share capital, risk, management and profit. Example: Bhote Koshi hydropower, Upper Tamakoshi with local and foreign partners, Himal Cement.
| Basis | Bilateral | Multilateral | Joint venture |
|---|---|---|---|
| Parties | Two countries or agencies | Many countries via an agency | Two or more firms |
| Funding | Grant or loan from one donor | Pooled funds of an institution | Equity of partners |
| Control | By agreement of the two | By the institution's rules | By partners' shares |
External environment of a project
A project environment is the set of all internal and external factors, conditions and forces that surround a project and influence its success. It is the context in which the project is planned and carried out.
External environment
| Element | Influence on a project |
|---|---|
| Political / legal | Government policy, stability, laws, licences, taxes (e.g. Hydropower policy, Public Procurement Act) |
| Economic | Inflation, interest rates, exchange rate, price of materials, market demand |
| Social / cultural | Community acceptance, local participation, resettlement, labour attitude |
| Technological | Availability of new methods, equipment and skills |
| Natural / physical | Geology, climate, floods, earthquakes, terrain |
| Competitive | Competitors, alternative suppliers |
| Financial | Banks, donors, investors, capital market |
Task (immediate) environment
Clients, funders, suppliers, contractors, consultants, labour unions, government agencies, local community and competitors. These directly supply resources and affect achievement of objectives, but also impose limits (rules, deadlines, conditions).
Internal environment
Organisation structure, culture, management style, resources and skills of the project team.
A project manager must scan the environment continuously, adapt plans, and manage stakeholders and risks.
- Asked 2 times
- 2076 Asoj · 2+4 marks
- 2074 Asoj · 1+4 marks
Define project. Describe a joint venture project and the possibility of technology transfer (and capital transfer) through it, with a suitable example.
Answer
Project
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Joint venture project and technology transfer
A joint venture project is one in which two or more organisations, usually a local and a foreign partner, combine capital, technology and management for a specific project and share profit, loss and control according to an agreement.
Technology and capital transfer
- The foreign partner brings advanced technology, machinery, design skill and often capital.
- The local partner brings land, local knowledge, labour, permits and market access.
- Local engineers and workers learn new methods by working with experts, so skills and know-how are transferred.
- Capital flows in through the foreign equity share and loans, and a part of the profit remains in the country.
- A training clause and a plan to hand over operation to local staff make the transfer effective.
Example: a Nepali company and a foreign hydropower developer form a joint venture to build a 100 MW plant. The foreign partner supplies turbines, design and finance; the Nepali partner handles licences, land and civil works. Nepali engineers are trained in operation and maintenance, and after the agreed period the plant is handed over to Nepal.
- 2075 Chaitra · 2+5 marks
What is a project? Explain its dimensions and characteristics.
Answer
Project
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Dimensions of a project
A project is viewed in three basic dimensions, called the project triangle, which must be balanced:
Quality / Scope
/\
/ \
/ \
/______\
Time Cost
- Time: start and finish dates, schedule and milestones.
- Cost: the budget, including resources and cash flow.
- Quality / scope: the deliverables and performance standard.
Changing one dimension affects the others: shortening the time usually raises the cost or lowers the quality. Other dimensions often added are risk, resources and stakeholder satisfaction.
Characteristics
| Characteristic | Meaning | Example |
|---|---|---|
| Specific objective | Defined purpose and deliverable | Complete a 40 m span bridge |
| Definite life span | Fixed start and end date | Start Shrawan 2080, finish Asar 2082 |
| Unique / non-routine | Not a repetitive task; each project differs in site, design, conditions | Two dams are never identical |
| Progressive elaboration | Details are developed step by step as information increases | Concept, feasibility, detailed design, drawings |
| Temporary team | Team formed for the project and dispersed at the end | Engineers, contractors, consultants |
| Limited resources | Fixed budget, manpower, equipment, time | Budget of NRs 50 crore |
| Uncertainty and risk | Future events cannot be fully predicted | Landslide, price rise, delay in land acquisition |
| Interdependent tasks | Activities depend on each other | Foundation before columns |
| Customer / stakeholders | Client, funder, users, public | Department of Roads, donor, villagers |
| Multi-disciplinary and cross-functional | Different specialists work together | Civil, electrical, environment, finance |
- 2076 Chaitra · 5 marks
Discuss, citing project characteristics, how a project can be differentiated from other permanent systems.
Answer
A project is a temporary system for a unique result, whereas a permanent system (for example a hospital, a factory in operation, an electricity utility) keeps running to give continuous output.
| Basis | Project | Permanent system |
|---|---|---|
| Life | Temporary, definite start and end | Continuous, no fixed end |
| Objective | Specific, one-time deliverable | Ongoing operation and routine output |
| Work | Unique, non-repetitive | Repetitive, routine |
| Team | Temporary, disbanded at completion | Permanent staff |
| Organisation | Often a matrix or project team | Functional hierarchy |
| Uncertainty | High, new situation each time | Low, established procedure |
| Planning | Detailed plan for each project | Standard procedures and policies |
| Control | Time, cost and quality against the plan | Efficiency and output standards |
| Example | Construction of a 50 bed hospital | Daily running of the hospital |
When the project is complete, the product is handed over to the permanent system for operation. A project is therefore recognised by its definite objective, limited time, unique nature, temporary team and constrained resources.
- 2080 Baisakh · 6 marks
Explain the characteristics of a project by comparing it with a final year project.
Answer
A final year engineering project (for example "Design of a 20 kW micro-hydro plant") is a small but true project, so it shows every characteristic of a project.
| Characteristic | In a final year project |
|---|---|
| Specific objective | Design and report of a given system, with defined deliverables |
| Definite start and end | Starts in 7th semester and ends at the final viva with a deadline |
| Unique, non-routine | The topic and site/data differ from other batches and from regular classes |
| Temporary team | A group of 3-4 students formed for this work and dissolved after submission |
| Limited resources | Fixed time, small budget, laboratory and software access |
| Progressive elaboration | Idea, proposal, literature, design, analysis, report, with details developed step by step |
| Uncertainty and risk | Data not available, equipment failure, member absent, supervisor change |
| Interdependent tasks | Data collection before design; design before drawings |
| Stakeholders | Supervisor, department, examiners, the client or industry |
| Management needed | Planning (Gantt chart), progress meetings, control against the deadline |
Compared with regular coursework (a permanent, repetitive activity), the final year project is temporary, unique and goal-oriented. The same ideas of scope, schedule, cost and risk apply to a large field project; only the scale differs.
- 2082 Baisakh · 2+5 marks
List out the characteristics of a project. Elaborate with an example the "specific task not routinely performed" and "progressive elaboration" characteristics of a project.
Answer
Characteristics of a project
- Specific objective and deliverable
- Definite start and end (limited life)
- Unique task, not routinely performed
- Progressive elaboration
- Temporary team or organisation
- Limited resources (time, money, manpower)
- Uncertainty and risk
- Interdependent activities
- Multiple stakeholders and customer orientation
Specific task not routinely performed
A project produces something new each time, so it is not a repeated daily operation. Even for similar works, the site, soil, design and conditions differ.
Example: constructing a suspension bridge over the Karnali. Its geology, span, river flow and community are unlike any earlier bridge, so a fresh plan and method statement are required. In contrast, repairing potholes every day is routine work.
Progressive elaboration
Details are developed gradually in steps as more information becomes available, while the project moves forward.
Example: for a hydropower scheme, first only the idea and capacity (say 30 MW) are known. The pre-feasibility study gives approximate layout; the feasibility study fixes the headworks and powerhouse; the detailed design gives drawings, quantities and a precise estimate; construction drawings are issued as work proceeds. At each stage the scope and cost become more accurate.
- 2068 Baisakh (old course) · 8 marks
Define a project and classify it. Name the characteristics of a project and describe what you mean by a temporary team/organization in a project.
Answer
Definition
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Classification
| Basis | Types | Example |
|---|---|---|
| Sector | Agriculture, industry, energy, transport, health, education | Irrigation canal, cement factory |
| Size / cost | Small, medium, large, mega | Foot trail vs Melamchi water project |
| Ownership | Public, private, public-private (PPP) | Government road, private hotel, BOOT hydropower |
| Nature of resources | Labour intensive, capital intensive | Rural road by user groups, a dam |
| Participation | Domestic, bilateral, multilateral, joint venture | See below |
| Purpose | Production, service, infrastructure, social | Factory, school, bridge |
| Technology | Conventional, high technology | Manual brick kiln vs automated plant |
| Time | Short term, medium term, long term | 6 month school building vs 10 year highway |
| Location | Urban, rural, regional, national | Smart city, village water supply |
Characteristics
- Specific objective
- Definite life span
- Unique, non-routine task
- Progressive elaboration
- Temporary team
- Limited resources
- Uncertainty and risk
- Interdependent activities
Temporary team / organisation
A project needs people from different fields for a limited time. A team is formed when the project starts: the project manager is appointed, and engineers, surveyors, accountants and workers are drawn from the parent organisation or hired from outside. Once the project is completed, the team is disbanded and the members return to their departments or move to other projects.
Features: it is created for one objective, has a leader with clear authority, members come with different skills, and it has no permanent status. Example: the team formed to build a district hospital, which dissolves after handover. Because the group is new, team building, role definition and communication are essential.
- 2065 Shrawan (old course) · 8 marks
Explain project and the characteristics of a project. Explain goal setting (SMART).
Answer
Project
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Characteristics of a project
| Characteristic | Meaning | Example |
|---|---|---|
| Specific objective | Defined purpose and deliverable | Complete a 40 m span bridge |
| Definite life span | Fixed start and end date | Start Shrawan 2080, finish Asar 2082 |
| Unique / non-routine | Not a repetitive task; each project differs in site, design, conditions | Two dams are never identical |
| Progressive elaboration | Details are developed step by step as information increases | Concept, feasibility, detailed design, drawings |
| Temporary team | Team formed for the project and dispersed at the end | Engineers, contractors, consultants |
| Limited resources | Fixed budget, manpower, equipment, time | Budget of NRs 50 crore |
| Uncertainty and risk | Future events cannot be fully predicted | Landslide, price rise, delay in land acquisition |
| Interdependent tasks | Activities depend on each other | Foundation before columns |
| Customer / stakeholders | Client, funder, users, public | Department of Roads, donor, villagers |
| Multi-disciplinary and cross-functional | Different specialists work together | Civil, electrical, environment, finance |
Goal setting (SMART)
Goals and objectives are set by understanding the need or problem, consulting the stakeholders, and stating the end result in clear, measurable terms. The usual sequence is:
- Identify the need or problem and the stakeholders.
- State the broad goal (the long-term purpose).
- Break the goal into specific objectives (short-term, measurable results).
- Test each objective against the SMART criteria.
- Get approval from the client and revise if resources or constraints do not match.
SMART criteria
| Letter | Criterion | Meaning |
|---|---|---|
| S | Specific | Clear and unambiguous; says what, where and for whom |
| M | Measurable | Quantity, quality or cost can be checked |
| A | Achievable | Possible with available resources and technology |
| R | Realistic / Relevant | Matches the need and the organisation's capacity |
| T | Time-bound | Has a deadline or time frame |
Example
Poor objective: "Improve the road to the village."
SMART objective: "Construct a 12 km, 5.5 m wide black-topped road from X to Y, within 24 months, at a cost not exceeding NRs 40 crore, meeting Department of Roads standards."
- Specific: 12 km black-topped road from X to Y.
- Measurable: length, width, cost and standard are given.
- Achievable: the equipment, contractor and budget are available.
- Realistic: the village needs year-round access.
- Time-bound: 24 months.
- 2082 Bhadra · 4+4 marks
Define a project and illustrate the types of projects with examples. Describe the effect of project management for the smooth running of a project.
Answer
Definition
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Types of projects
| Basis | Types | Example |
|---|---|---|
| Sector | Agriculture, industry, energy, transport, health, education | Irrigation canal, cement factory |
| Size / cost | Small, medium, large, mega | Foot trail vs Melamchi water project |
| Ownership | Public, private, public-private (PPP) | Government road, private hotel, BOOT hydropower |
| Nature of resources | Labour intensive, capital intensive | Rural road by user groups, a dam |
| Participation | Domestic, bilateral, multilateral, joint venture | See below |
| Purpose | Production, service, infrastructure, social | Factory, school, bridge |
| Technology | Conventional, high technology | Manual brick kiln vs automated plant |
| Time | Short term, medium term, long term | 6 month school building vs 10 year highway |
| Location | Urban, rural, regional, national | Smart city, village water supply |
Examples of other types: labour intensive (rural trail), capital intensive (hydropower), joint venture (cement plant with foreign partner), multilateral (World Bank funded roads).
Effect of project management on smooth running
- Clear objectives and scope: everyone knows what is to be done.
- Proper planning: WBS, schedule and budget prevent confusion.
- Efficient use of resources: less waste of labour, material and machines.
- Control: delays and cost overruns are found early and corrected.
- Coordination: the work of contractors, consultants and departments is linked.
- Risk reduction: risks are identified and handled before they cause loss.
- Quality assurance: work meets specifications.
- Better decisions and communication: timely information to the client and team.
- Result: completion on time, within budget and to the required quality, and stakeholder satisfaction.
- 2079 Bhadra · 6 marks
What are the different bases of project classification and the types of projects on those bases?
Answer
| Basis | Types | Example |
|---|---|---|
| Sector | Agriculture, industry, energy, transport, health, education | Irrigation canal, cement factory |
| Size / cost | Small, medium, large, mega | Foot trail vs Melamchi water project |
| Ownership | Public, private, public-private (PPP) | Government road, private hotel, BOOT hydropower |
| Nature of resources | Labour intensive, capital intensive | Rural road by user groups, a dam |
| Participation | Domestic, bilateral, multilateral, joint venture | See below |
| Purpose | Production, service, infrastructure, social | Factory, school, bridge |
| Technology | Conventional, high technology | Manual brick kiln vs automated plant |
| Time | Short term, medium term, long term | 6 month school building vs 10 year highway |
| Location | Urban, rural, regional, national | Smart city, village water supply |
One project can be placed in several classes at once. For example, a rural road built by users is a public sector, infrastructure, labour intensive, small, domestic project.
- 2073 Shrawan · 10 marks
Classify a project and discuss its characteristics in detail, including the importance of a good project environment.
Answer
Definition
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Classification
| Basis | Types | Example |
|---|---|---|
| Sector | Agriculture, industry, energy, transport, health, education | Irrigation canal, cement factory |
| Size / cost | Small, medium, large, mega | Foot trail vs Melamchi water project |
| Ownership | Public, private, public-private (PPP) | Government road, private hotel, BOOT hydropower |
| Nature of resources | Labour intensive, capital intensive | Rural road by user groups, a dam |
| Participation | Domestic, bilateral, multilateral, joint venture | See below |
| Purpose | Production, service, infrastructure, social | Factory, school, bridge |
| Technology | Conventional, high technology | Manual brick kiln vs automated plant |
| Time | Short term, medium term, long term | 6 month school building vs 10 year highway |
| Location | Urban, rural, regional, national | Smart city, village water supply |
Characteristics
| Characteristic | Meaning | Example |
|---|---|---|
| Specific objective | Defined purpose and deliverable | Complete a 40 m span bridge |
| Definite life span | Fixed start and end date | Start Shrawan 2080, finish Asar 2082 |
| Unique / non-routine | Not a repetitive task; each project differs in site, design, conditions | Two dams are never identical |
| Progressive elaboration | Details are developed step by step as information increases | Concept, feasibility, detailed design, drawings |
| Temporary team | Team formed for the project and dispersed at the end | Engineers, contractors, consultants |
| Limited resources | Fixed budget, manpower, equipment, time | Budget of NRs 50 crore |
| Uncertainty and risk | Future events cannot be fully predicted | Landslide, price rise, delay in land acquisition |
| Interdependent tasks | Activities depend on each other | Foundation before columns |
| Customer / stakeholders | Client, funder, users, public | Department of Roads, donor, villagers |
| Multi-disciplinary and cross-functional | Different specialists work together | Civil, electrical, environment, finance |
Importance of a good project environment
A favourable environment gives the project what it needs and reduces uncertainty. A good environment means:
- stable and supportive government policy and laws, which speeds approvals and attracts investors;
- availability of finance, skilled labour, materials and equipment at reasonable cost;
- community support and good relations, which reduce disputes and delays;
- reliable infrastructure (roads, power, communication) for site works;
- suitable natural conditions and a plan for disasters;
- competent partners, contractors and consultants.
A poor environment (political instability, strikes, price rise, hostile locals) causes delay, cost overrun and sometimes failure. So the environment must be studied before the project is selected and monitored throughout its life.
- 2070 Chaitra · 3 marks
Differentiate between labour intensive and capital intensive projects with examples.
Answer
| Basis | Labour intensive | Capital intensive |
|---|---|---|
| Main input | Human labour | Machines and money |
| Employment | High | Low |
| Capital cost | Low | High |
| Speed and quality | Slower, variable quality | Faster, uniform quality |
| Suitable where | Labour is cheap and plentiful | Labour is scarce or the work is large and technical |
| Example | Rural road by hand, canal digging, trail improvement | Hydropower dam, tunnel, airport, steel plant |
- 2071 Chaitra · 2+4+4 marks
Define project. Elaborate labour intensive, capital intensive, joint venture and multilateral projects. Explain the various elements of task environment.
Answer
Project
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Types of projects
| Basis | Labour intensive | Capital intensive |
|---|---|---|
| Main input | Human labour | Machines and money |
| Employment | High | Low |
| Capital cost | Low | High |
| Speed and quality | Slower, variable quality | Faster, uniform quality |
| Suitable where | Labour is cheap and plentiful | Labour is scarce or the work is large and technical |
| Example | Rural road by hand, canal digging, trail improvement | Hydropower dam, tunnel, airport, steel plant |
- Bilateral project: financed or implemented by two countries (or a country and one agency) under an agreement. Example: Pokhara International Airport (loan from China Exim Bank), or roads built with Indian grant assistance.
- Multilateral project: financed by several countries through an international agency. Example: projects funded by the World Bank, ADB or UN agencies, such as the Kathmandu Valley Water Supply improvement.
- Joint venture project: two or more parties (companies or a company and government, often foreign and local) share capital, risk, management and profit. Example: Bhote Koshi hydropower, Upper Tamakoshi with local and foreign partners, Himal Cement.
Elements of the task environment
The task environment is the part of the external environment that directly interacts with the project.
| Element | Role |
|---|---|
| Client / owner | Defines requirements, pays, approves |
| Funding agencies | Banks, donors; provide money with conditions |
| Suppliers | Materials, equipment, services |
| Contractors and consultants | Execute and supervise the work |
| Labour and unions | Supply and affect workforce availability |
| Government agencies | Licences, regulations, taxes, approvals |
| Local community | Land, acceptance, local labour |
| Competitors | Compete for resources and market |
| Users / customers | Final beneficiaries of the output |
- 2072 Kartik
Define project and explain its characteristics in brief. What are the major differences between project management and traditional management? Explain the external environment of the project.
Answer
Project and its characteristics
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
| Characteristic | Meaning | Example |
|---|---|---|
| Specific objective | Defined purpose and deliverable | Complete a 40 m span bridge |
| Definite life span | Fixed start and end date | Start Shrawan 2080, finish Asar 2082 |
| Unique / non-routine | Not a repetitive task; each project differs in site, design, conditions | Two dams are never identical |
| Progressive elaboration | Details are developed step by step as information increases | Concept, feasibility, detailed design, drawings |
| Temporary team | Team formed for the project and dispersed at the end | Engineers, contractors, consultants |
| Limited resources | Fixed budget, manpower, equipment, time | Budget of NRs 50 crore |
| Uncertainty and risk | Future events cannot be fully predicted | Landslide, price rise, delay in land acquisition |
| Interdependent tasks | Activities depend on each other | Foundation before columns |
| Customer / stakeholders | Client, funder, users, public | Department of Roads, donor, villagers |
| Multi-disciplinary and cross-functional | Different specialists work together | Civil, electrical, environment, finance |
Project management vs traditional management
| Basis | Project management | Traditional (functional) management |
|---|---|---|
| Purpose | One-time unique objective | Continuous routine operation |
| Duration | Temporary | Permanent |
| Organisation | Temporary team, often matrix | Fixed functional hierarchy |
| Authority | Project manager across departments | Functional heads |
| Work | Non-repetitive | Repetitive |
| Planning | Detailed plan per project; time/cost/quality focus | Annual plan, policies |
| Control | Against schedule, budget and scope | Against standards and profit |
| Risk | High uncertainty | Low and predictable |
| Techniques | WBS, CPM/PERT, earned value | Budgeting, standard procedures |
External environment of the project
A project environment is the set of all internal and external factors, conditions and forces that surround a project and influence its success. It is the context in which the project is planned and carried out.
External environment
| Element | Influence on a project |
|---|---|
| Political / legal | Government policy, stability, laws, licences, taxes (e.g. Hydropower policy, Public Procurement Act) |
| Economic | Inflation, interest rates, exchange rate, price of materials, market demand |
| Social / cultural | Community acceptance, local participation, resettlement, labour attitude |
| Technological | Availability of new methods, equipment and skills |
| Natural / physical | Geology, climate, floods, earthquakes, terrain |
| Competitive | Competitors, alternative suppliers |
| Financial | Banks, donors, investors, capital market |
Task (immediate) environment
Clients, funders, suppliers, contractors, consultants, labour unions, government agencies, local community and competitors. These directly supply resources and affect achievement of objectives, but also impose limits (rules, deadlines, conditions).
Internal environment
Organisation structure, culture, management style, resources and skills of the project team.
A project manager must scan the environment continuously, adapt plans, and manage stakeholders and risks.
- 2080 Bhadra · 2+6 marks
Discuss the scope of project engineering. Explain in detail how a project operates in a dynamic environment with a suitable example.
Answer
Scope of project engineering
Project engineering covers the technical and managerial work needed to carry a project from idea to completion and operation:
- Identification, formulation and appraisal of projects (technical, economic, financial, environmental, social).
- Project planning: WBS, scheduling with bar chart, CPM and PERT, resource planning.
- Design, estimating and preparation of tender and contract documents.
- Implementation: procurement, construction supervision, quality assurance.
- Monitoring, evaluation and control of time, cost and quality.
- Risk analysis and management.
- Project financing and capital budgeting.
- Closure, handover, operation and maintenance, and post-project evaluation.
It applies to civil, electrical, mechanical and industrial projects alike.
Project in a dynamic environment
A project is not carried out in a closed laboratory; it works in an environment that keeps changing. Because of this, activities seldom progress exactly as scheduled.
Sources of change
- Political: change of government, policy, strikes and bandhs.
- Economic: price escalation, exchange rate, interest rate.
- Social: local objections, land and compensation disputes.
- Natural: monsoon, floods, landslides, earthquakes (such as 2015).
- Technical: design change, new technology, unexpected geology.
- Resource: delay in funds, material shortage, equipment breakdown, labour shortage.
- Stakeholder: client's change orders, delayed approvals.
Technical example: a hydropower tunnel project
Plan: 1,500 m headrace tunnel excavated in 12 months. In practice, poor rock is met at 600 m, so extra support is needed and progress falls. Heavy rain floods the adit and a fund release is delayed. The schedule slips, cost rises and the design of the lining is revised.
How the project manager responds
- Monitor progress and environment regularly.
- Update the schedule and budget (re-planning).
- Keep contingency time and money.
- Use risk management and change control.
- Maintain communication with all stakeholders.
Hence planning must be flexible, and control must be continuous.
- 2079 Baisakh · 2+5 marks
What is project environment? How can you say that a project operates under a dynamic environment? Explain with an example.
Answer
A project environment is the set of all internal and external factors, conditions and forces that surround a project and influence its success. It is the context in which the project is planned and carried out.
External environment
| Element | Influence on a project |
|---|---|
| Political / legal | Government policy, stability, laws, licences, taxes (e.g. Hydropower policy, Public Procurement Act) |
| Economic | Inflation, interest rates, exchange rate, price of materials, market demand |
| Social / cultural | Community acceptance, local participation, resettlement, labour attitude |
| Technological | Availability of new methods, equipment and skills |
| Natural / physical | Geology, climate, floods, earthquakes, terrain |
| Competitive | Competitors, alternative suppliers |
| Financial | Banks, donors, investors, capital market |
Task (immediate) environment
Clients, funders, suppliers, contractors, consultants, labour unions, government agencies, local community and competitors. These directly supply resources and affect achievement of objectives, but also impose limits (rules, deadlines, conditions).
Internal environment
Organisation structure, culture, management style, resources and skills of the project team.
A project manager must scan the environment continuously, adapt plans, and manage stakeholders and risks.
Why a project operates in a dynamic environment
The political, economic, social, technical and natural conditions around a project keep changing during its life, which may last several years. These changes alter the requirements, cost and schedule, so a project cannot follow a fixed plan.
Example: a highway project in Nepal. During construction the government changes the compensation rate, cement and fuel prices rise, a monsoon landslide blocks the road, local people stop work demanding jobs, and the client orders an extra bridge. Each event forces re-planning of time and cost. Hence the project manager must monitor the environment and update plans regularly.
- 2075 Chaitra · 5 marks
Explain the different environments within which a project needs to be conducted.
Answer
A project environment is the set of all internal and external factors, conditions and forces that surround a project and influence its success. It is the context in which the project is planned and carried out.
External environment
| Element | Influence on a project |
|---|---|
| Political / legal | Government policy, stability, laws, licences, taxes (e.g. Hydropower policy, Public Procurement Act) |
| Economic | Inflation, interest rates, exchange rate, price of materials, market demand |
| Social / cultural | Community acceptance, local participation, resettlement, labour attitude |
| Technological | Availability of new methods, equipment and skills |
| Natural / physical | Geology, climate, floods, earthquakes, terrain |
| Competitive | Competitors, alternative suppliers |
| Financial | Banks, donors, investors, capital market |
Task (immediate) environment
Clients, funders, suppliers, contractors, consultants, labour unions, government agencies, local community and competitors. These directly supply resources and affect achievement of objectives, but also impose limits (rules, deadlines, conditions).
Internal environment
Organisation structure, culture, management style, resources and skills of the project team.
A project manager must scan the environment continuously, adapt plans, and manage stakeholders and risks.
- 2074 Asoj · 1+4 marks
What is project environment? How does the political environment affect a project in Nepal?
Answer
Project environment is the set of internal and external conditions, such as political, economic, social, technological and natural factors, that surround and influence a project.
Effect of the political environment in Nepal
The political environment includes government policy, laws, stability and the behaviour of political parties. In Nepal it affects projects in these ways:
- Policy and law: hydropower, tourism, mining and procurement depend on policy, e.g. the Public Procurement Act, Hydropower Development Policy, Electricity Act. Frequent change creates uncertainty.
- Government instability: frequent changes of government and ministers delay decisions, approvals, budget release and project priorities.
- Bandh, strikes and protests: stop work and transport; labour and local groups make demands.
- Budget and funding: projects depend on annual budgets and political priority; donors react to stability.
- Federalism: three tiers of government (federal, provincial, local) create overlapping approvals and changed responsibilities.
- Land acquisition and compensation: political pressure often delays right-of-way.
- Contractor selection and corruption risk: interference can reduce quality and cause delay.
- Positive side: supportive policy, tax incentives, and government guarantees (such as a power purchase agreement) encourage investment.
Hence the manager should keep good relations with authorities, include political risk in the risk plan and allow time contingency.
- 2081 Baisakh · 4 marks
Define project environment and explain how the task environment of any project provides resources and influences the ability to achieve the project's objectives even though it also imposes limitations.
Answer
The project environment is the sum of all external and internal factors that surround a project and affect its outcome. The task environment is the part of it that deals directly with the project: client, funding agencies, suppliers, contractors, consultants, labour, government agencies, local community and competitors.
How it provides resources
- Clients and funders give money and approvals.
- Suppliers give materials, equipment and services.
- The labour market gives skilled and unskilled workers.
- Government gives licences, land, infrastructure and policy support.
- The community gives local labour and goodwill.
These inputs are essential to reach the objectives of time, cost and quality.
How it limits
- Funders attach conditions and release money in stages.
- Laws, standards and permits restrict methods and timing.
- Suppliers may delay or raise prices; labour may strike.
- The community may object to land use or environmental effects.
- Competitors compete for the same scarce resources.
Therefore the project manager must manage relations with each task-environment element, using it as a source of support while planning for its constraints.
- 2079 Bhadra · 6 marks
Describe with a suitable example, considering a running project of Nepal, how the different operating/task environments make the project more complex and uncertain.
Answer
A project operates inside several environments, each with its own changing forces. Their interaction makes the project more complex (many parties and rules) and uncertain (outcomes cannot be predicted).
Example: Upper Tamakoshi Hydropower Project (456 MW)
| Environment | Effect on the project |
|---|---|
| Political | Policy changes, delay in approvals, strikes and bandhs |
| Economic | Rise in prices of cement, steel and fuel; exchange rate affecting foreign loans; financing from the Employees Provident Fund and banks |
| Social | Resettlement, compensation, local demands for jobs and benefits |
| Technical | Long tunnels, difficult geology, imported turbines needing specialist technology |
| Natural | Monsoon floods, landslides and the 2015 earthquake damaged works and access |
| Task environment | Contractors, suppliers, lenders and government agencies each follow their own interests and schedules |
| Legal | Environmental clearance, land acquisition and licence conditions |
The project was delayed and its cost increased because these environments changed during construction. The manager had to revise the schedule, seek extra funds, repair damage and manage many stakeholders, which shows the added complexity and uncertainty.
- 2081 Baisakh · 4 marks
Differentiate between goal and objective of any project, giving a suitable example.
Answer
| Basis | Goal | Objective |
|---|---|---|
| Nature | Broad, general statement of purpose | Specific, detailed statement of what will be achieved |
| Time | Long term | Short or medium term |
| Measurability | Often qualitative, hard to measure | Quantitative and measurable |
| Number | Usually one or few | Several objectives support a goal |
| Role | Gives direction | Gives targets to be reached |
| Example | Improve rural access and the local economy | Build a 12 km gravel road within 18 months at NRs 25 crore |
The goal gives direction; the objectives, when achieved, together achieve the goal.
- 2076 Asoj · 2+6 marks
Differentiate between the goal and objective of a project. Explain the goal setting criteria of a project with a suitable example.
Answer
Goal vs objective
| Basis | Goal | Objective |
|---|---|---|
| Nature | Broad, general statement of purpose | Specific, detailed statement of what will be achieved |
| Time | Long term | Short or medium term |
| Measurability | Often qualitative, hard to measure | Quantitative and measurable |
| Number | Usually one or few | Several objectives support a goal |
| Role | Gives direction | Gives targets to be reached |
| Example | Improve rural access and the local economy | Build a 12 km gravel road within 18 months at NRs 25 crore |
Goal setting criteria
Goals and objectives are set by understanding the need or problem, consulting the stakeholders, and stating the end result in clear, measurable terms. The usual sequence is:
- Identify the need or problem and the stakeholders.
- State the broad goal (the long-term purpose).
- Break the goal into specific objectives (short-term, measurable results).
- Test each objective against the SMART criteria.
- Get approval from the client and revise if resources or constraints do not match.
SMART criteria
| Letter | Criterion | Meaning |
|---|---|---|
| S | Specific | Clear and unambiguous; says what, where and for whom |
| M | Measurable | Quantity, quality or cost can be checked |
| A | Achievable | Possible with available resources and technology |
| R | Realistic / Relevant | Matches the need and the organisation's capacity |
| T | Time-bound | Has a deadline or time frame |
Example
Poor objective: "Improve the road to the village."
SMART objective: "Construct a 12 km, 5.5 m wide black-topped road from X to Y, within 24 months, at a cost not exceeding NRs 40 crore, meeting Department of Roads standards."
- Specific: 12 km black-topped road from X to Y.
- Measurable: length, width, cost and standard are given.
- Achievable: the equipment, contractor and budget are available.
- Realistic: the village needs year-round access.
- Time-bound: 24 months.
- 2067 Asar (old course) · 4+4 marks
Explain the project family tree with a suitable example. Explain also the criteria of goal setting in any project.
Answer
Project family tree
The project family tree is a hierarchy that breaks the project from its broad purpose down to individual tasks. It shows how each lower level supports the level above.
Mission / Goal
|
+-- Objective 1
| +-- Programme / Sub-project 1.1
| | +-- Activity / Task 1.1.1
| | +-- Activity / Task 1.1.2
| +-- Sub-project 1.2
+-- Objective 2
+-- Sub-project 2.1
Example (rural electrification):
- Goal: improve rural livelihood through electricity.
- Objective: supply power to 2,000 households within 3 years.
- Sub-projects: micro-hydro plant; distribution line; household connection.
- Tasks: civil works, turbine installation, pole erection, wiring, training.
The tree makes the link between goals and work clear and leads to the WBS.
Criteria of goal setting
| Letter | Criterion | Meaning |
|---|---|---|
| S | Specific | Clear and unambiguous; says what, where and for whom |
| M | Measurable | Quantity, quality or cost can be checked |
| A | Achievable | Possible with available resources and technology |
| R | Realistic / Relevant | Matches the need and the organisation's capacity |
| T | Time-bound | Has a deadline or time frame |
Example
Poor objective: "Improve the road to the village."
SMART objective: "Construct a 12 km, 5.5 m wide black-topped road from X to Y, within 24 months, at a cost not exceeding NRs 40 crore, meeting Department of Roads standards."
- Specific: 12 km black-topped road from X to Y.
- Measurable: length, width, cost and standard are given.
- Achievable: the equipment, contractor and budget are available.
- Realistic: the village needs year-round access.
- Time-bound: 24 months.
- 2068 Baisakh (old course) · 8 marks
Name the project life cycle and explain how you set goals in a project by giving an example of one goal and verifying it with the criteria of goal setting.
Answer
Project life cycle
The project life cycle has four phases: initiation, planning, implementation and termination (also called concept, definition, execution and closure).
Initiation -> Planning -> Implementation -> Termination
Setting a goal, with example
Steps: identify the need, state the broad goal, convert it into a specific objective, and test it against SMART criteria.
Need: villagers of ward 5 have no safe drinking water.
Goal: provide safe drinking water to ward 5.
Objective: "Construct a gravity-flow water supply system with a 50 m³ reservoir and 25 tap stands serving 300 households within 12 months at a cost not exceeding NRs 2.5 crore, meeting national drinking water quality standards."
Verification with criteria
| Criterion | Check |
|---|---|
| Specific | Gravity system, reservoir size, 25 taps, 300 households stated |
| Measurable | Volume, number of taps, households, cost and quality standard are countable |
| Achievable | A perennial spring is available and design is standard |
| Realistic | Fits the demand (about 45 lpcd) and the budget of the local government |
| Time-bound | 12 months |
The objective satisfies all criteria, so it is acceptable.
- 2080 Baisakh · 6 marks
Define the project in your own words and explain its phases.
Answer
A project, in simple words, is a one-time, planned piece of work with a clear objective, a start and end date, a limited budget and a team formed only for it, such as building a school or a bridge.
Phases of a project
The project life cycle is the series of phases a project passes through from its start to its end. Each phase ends with a review (gate) before the next begins. The common four-phase model is:
Initiation -> Planning -> Implementation -> Termination
(Concept) (Definition) (Execution) (Closure)
Effort
^ ___
| / \___
| __/ \__
|__/ \___
+--------------------------> Time
| Phase | Main work |
|---|---|
| Initiation / concept | Identify need, pre-feasibility, objectives, preliminary cost, go or no-go decision |
| Planning / definition | Detailed design, WBS, schedule, budget, resource and risk plans, contracts |
| Implementation / execution | Mobilisation, procurement, construction or manufacturing, monitoring and control |
| Termination / closure | Testing, handover, final payment, documentation, lessons learned, release of resources |
Each phase produces an output that is checked before the next phase starts. Example (school building): initiation is need survey and approval; planning is design, estimate and tender; implementation is construction; termination is handover and final bill.
- 2067 Asar (old course) · 8 marks
List out the different phases of the project life cycle. Explain in detail the activities to be done in the implementation phase of the project life cycle.
Answer
Phases of the project life cycle
- Initiation (concept)
- Planning (definition)
- Implementation (execution)
- Termination (closure)
Activities in the implementation phase
The implementation (execution) phase is where the plan is turned into the actual product and usually takes the largest share of cost and effort.
- Mobilisation: site office, camps, machinery, manpower, materials.
- Procurement of materials, equipment and subcontractors.
- Construction or production work as per drawings and specifications.
- Resource management: allocation of labour, equipment and materials, and cash flow.
- Monitoring and control of progress, cost and quality; comparing actual with planned and taking corrective action.
- Quality assurance, testing and inspection.
- Change and variation management, claims and payments to contractors.
- Safety, environmental management and community relations.
- Regular reporting and coordination meetings with the client and stakeholders.
- 2080 Bhadra · 1+2+5 marks
What is a project? What are its main attributes? Write the major activities carried out in the implementation phase of a project.
Answer
What is a project?
A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.
Main attributes
- Specific objective
- Definite start and end
- Unique, non-routine work
- Temporary team
- Limited resources (cost, time, manpower)
- Progressive elaboration
- Uncertainty and risk
- Interrelated activities and stakeholders
Activities in the implementation phase
The implementation (execution) phase is where the plan is turned into the actual product and usually takes the largest share of cost and effort.
- Mobilisation: site office, camps, machinery, manpower, materials.
- Procurement of materials, equipment and subcontractors.
- Construction or production work as per drawings and specifications.
- Resource management: allocation of labour, equipment and materials, and cash flow.
- Monitoring and control of progress, cost and quality; comparing actual with planned and taking corrective action.
- Quality assurance, testing and inspection.
- Change and variation management, claims and payments to contractors.
- Safety, environmental management and community relations.
- Regular reporting and coordination meetings with the client and stakeholders.
- 2074 Chaitra · 4+4 marks
Describe whether the specified job/task is a project. Write the major activities carried out in the implementation phase of a project.
Answer
Is the specified job a project?
The question refers to a given job or task, which is not stated here. A job is a project if it has all these tests:
| Test | Question |
|---|---|
| Objective | Is there a specific result or deliverable? |
| Time | Is there a definite start and end? |
| Uniqueness | Is it non-routine, not repeated daily? |
| Resources | Are budget, manpower and time limited? |
| Team | Is a temporary team formed for it? |
| Uncertainty | Are there risks and unknowns? |
Example: constructing a 3-storey office building meets all tests, so it is a project. Daily cleaning of the same office, running a bus service or preparing monthly salary do not (they are repetitive operations with no end), so they are not projects.
Major activities in the implementation phase
The implementation (execution) phase is where the plan is turned into the actual product and usually takes the largest share of cost and effort.
- Mobilisation: site office, camps, machinery, manpower, materials.
- Procurement of materials, equipment and subcontractors.
- Construction or production work as per drawings and specifications.
- Resource management: allocation of labour, equipment and materials, and cash flow.
- Monitoring and control of progress, cost and quality; comparing actual with planned and taking corrective action.
- Quality assurance, testing and inspection.
- Change and variation management, claims and payments to contractors.
- Safety, environmental management and community relations.
- Regular reporting and coordination meetings with the client and stakeholders.
- 2079 Baisakh
What are the major activities that are required to be carried out during the initiation phase of a project?
Answer
The initiation phase begins the life cycle. Its purpose is to decide whether the project should be started.
- Identify the need or problem and collect basic data.
- Generate and screen project ideas; select the best option.
- Carry out pre-feasibility and feasibility studies (technical, economic, financial, environmental, social).
- Define objectives, scope and main deliverables.
- Estimate preliminary cost, time and resources.
- Identify stakeholders and the funding source.
- Prepare the project proposal or concept note and take the go or no-go decision.
- Appoint the project manager and form the core team.
The output is an approved proposal or project charter that authorises the planning phase.
- 2081 Baisakh · 4 marks
Describe the activities to be performed in the termination phase of the project life cycle.
Answer
The termination (closure) phase formally ends the project. Main activities:
- Completion and final inspection; correction of defects (punch list).
- Testing and commissioning of the facility.
- Handover to the client or operator with as-built drawings and manuals; training of operators.
- Final accounts, final bill, release of retention money and bank guarantees after the defect liability period.
- Settlement of claims and contracts; closing of purchase orders.
- Release of staff, equipment and site; demobilisation.
- Preparation of the project completion report, documentation and records.
- Post-project review and lessons learned; evaluation of objectives achieved.
- 2078 Bhadra · 3 marks
Write a short note on project management and its functions.
Answer
Project management is the application of knowledge, skills, tools and techniques to project activities so that the objectives are met within time, cost and quality. A project manager leads the temporary team and coordinates all resources.
Functions of project management
- Planning: setting objectives, scope, WBS, schedule, budget.
- Organising: forming the team, assigning roles and authority, allocating resources.
- Staffing: selecting and training people.
- Directing / leading: motivating, guiding and communicating with the team.
- Coordinating: linking the work of different groups and contractors.
- Controlling: monitoring progress, comparing with plan, taking corrective action.
- Risk and quality management.
- Closing: handover and review.
Effect: good management gives smooth running through clear responsibility, early detection of delay and cost overrun, better use of resources, fewer conflicts and higher chance of finishing on time and within budget.
- 2065 Shrawan (old course) · 8 marks
Explain monitoring, evaluation and controlling and the project life cycle.
Answer
Project life cycle
The project life cycle is the series of phases a project passes through from its start to its end. Each phase ends with a review (gate) before the next begins. The common four-phase model is:
Initiation -> Planning -> Implementation -> Termination
(Concept) (Definition) (Execution) (Closure)
Effort
^ ___
| / \___
| __/ \__
|__/ \___
+--------------------------> Time
| Phase | Main work |
|---|---|
| Initiation / concept | Identify need, pre-feasibility, objectives, preliminary cost, go or no-go decision |
| Planning / definition | Detailed design, WBS, schedule, budget, resource and risk plans, contracts |
| Implementation / execution | Mobilisation, procurement, construction or manufacturing, monitoring and control |
| Termination / closure | Testing, handover, final payment, documentation, lessons learned, release of resources |
Monitoring
Monitoring is the continuous collection and checking of information on progress, cost, quality and resource use while the project runs, to know whether activities follow the plan.
Evaluation
Evaluation is the periodic and systematic judgement of the project's relevance, efficiency, effectiveness, impact and sustainability against its objectives. It may be done at mid-term, at completion (ex-post) and later.
Controlling
Controlling compares actual performance with the plan, finds variances and takes corrective action to bring the project back on track (or revises the plan).
Plan -> Execute -> Monitor -> Compare -> Correct
^ |
+----------------------------------------+
Relation to the life cycle
- Initiation: feasibility evaluation (ex-ante).
- Planning: baseline set for control.
- Implementation: monitoring and control are most intense.
- Termination: final evaluation and lessons learned.
Questions from Old Question Collection (CE 701) (IOE CE 701 exam papers from 2065 Shrawan to 2082 Bhadra). Answers are written for this site; check them against your class notes.
Chapter titles and hours from the IOE syllabus ↗