Construction Organization

Intro
o Building Construction = vertical
Use BIM, ex - buildings
o Heavy construction = Horizontal
Infrastucture, highway
Graph
o Most (71%) is private building
Public nonbuilding, public
building, private nonbuilding
split the rest about evenly
Segment of Industry
o Housing
Very material and craft
orientated (Very detailed)
Homebuilders dimension
lumber
Hire designers and
subcontracts
40-45% new construction
o Commercial Building
Office building, schools,
religious buildings
Conc, stl, or timber
A/E design and subtracted out
25-30% new construction
o Heavy Construction (Public owned)
Designed by civil engineer
Constructed by G.C. and lot of
heavy equipment

20-25% new construction

o Industrial Construction (privately
financed)
Design/build firm- (complicated
specialty project like power
plant)
Very technical 5-10%
construction
Stakeholders Intrests can be positively or
negativel impact by project
o Key stakeholders - Owner, Contractors
, A/E, workers, governmental bodies
o Roles Survey grounds, supply
material, hire fire labor, perform
subcontractor work
o Owner
Public owner Fed gov, state,
county, owners

Must act in interest of

public and finances
through taxes
Private owner Individuals,
corporations
Financed though lenders
o A/E designs project
Could be direct employees of
owner
o GC (Prime contractor) Constructs
the project
Direct contract with owner
Coordinates inputs of
construction process and in
charge of construction, field
operations, allocation of
manpower, equipment, and
materials, and maximizing
efficiency in time and money
Can have bond as insurance if
something goes wrong
o SC Subcontractor
Specialized work (like MEP
work)
Not direct relationship with
owner, reports to GC
SC can have another SC or
supplier who can hold lien
(possession of owner) if SC is
bankrupt and doesnt pay
Construction organizations
o For government projects

For transportation repair work by DOT

First branch deals with design and

estimating and second deals with
construction

Owner works with GC on bidding when

he doesnt know a lot about the details of
the project

Turn can Need to have land/lot so you

dont need to worry about financing.
Owner gives design firm total control and
just comes at the end of the project. It is
fast paced

When owner doesnt know a lot about

project, he hires Construction manager
( at no-risk) who takes care of everything

Company organization structure

o Functional
Categorized into
depts. According to
specialties
Employees work on
projects and in their
own department
o Advantages
Easier to manage by
specialties
Specialties are
centralized
Defined career paths
o Disadvantages
More emphasis on
specialty
Little authority for PM
o Projectized organization
Temporary position
that works from
project to project. No
permanent dept.
Ex Dam, plant, (for
long-term project)
o Advantages
Efficient project
organization
Loyal to project
Effective/fast
communication
o Disadvantages
Unloyal to employer
Lack of
professionalism

Less efficient use of

resources (resources
only for one project
all the time
Matrix organization
(combo)
Advantages
Clear objectives
Better
communication

o
o

(horizontal and
vertical)and resource
use
Disadvantages
Potential for conflict
Extra administration
Difficult resource
allocation