SPECIALIZATION 3: CONSTRUCTION MANAGEMENT

FAR EASTERN UNIVERSITY, INSTITUTE OF ARCHITECTURE AND FINE ARTS

LECTURE 1: FUNDAMENTALS OF CONSTRUCTION MANAGEMENT

Prepared by: ARLB

Modern management in construction addresses four principal areas of the industry:

• Management of the physical production phase or site construction management;
• Management of the various functions that make up and contribute to the delivery of projects, or
total project and program management;
• Management of the corporate establishments involved in the delivery of the constructed
facilities and services or organizational management;
Management of the industry to create an enabling commercial, regulatory, and conducive socio-
economic environment, or sector management.
Construction Management addresses the effective planning, organizing, application, coordination,
monitoring, control and reporting of the core business processes of marketing, procurement,
production, administration, accounts and finance necessary to achieve economic success and/or
profitability for an enterprise or organization engaged in the provision of construction facilities.
The function may be performed by a client, contracting company, consultant firm, public body or
combination of such stakeholders contracted to bring a project or series of projects to safe completion
on time, to budget, to the set quality and expected innovative, aesthetic, socially responsible, and
environmental impact.
Construction Project Management focuses on the delivery of a specific solution by contracting with
stakeholders who undertake combinations of the following indicative sub- processes relating to a
specific project:
• Scoping and budgeting the project; • Cost and budgetary control, including cash
• Design coordination/management; flow forecasting;
• Establishing the management structure of the • Quality management;
management team; • Contract and progress payments
• Marketing and procurement; administration;
• Defining roles and responsibilities; • Legal issues;
• Estimating and tendering; • ICT management;
• Stakeholder management; • Health and Safety management, education,
• Project and construction methods planning, training and welfare provision;
coordination and control; • Corporate Social Responsibility;
• Value and risk management; • Management of the potential environmental
• Management of labor resources, temporary impacts of construction; • Commissioning,
works provision, equipment, plant, auditing and recording of the project(s).
subcontractors and suppliers; • Organizing, leading and implementing
• Time and subcontractor interface controls;
management; • Production and productivity management;

DEFINITION OF TERMS
MANAGEMENT- the DIRECTION and SUPERVISION OF RESOURCES towards the achievement of a
defined GOAL within a TIME SCALE
THEORY OF MANAGEMENT-this can be defined as the general principles of controlling a business/
industry, TESTED and CONTESTED with practice
DIRECTION-instruction about how to do something
SUPERVISION-to be in charge of a piece of work/ labor and making sure that everything is done
correctly, safely etc.
RESOURCES- something that is required in order to do work
 MONEY
 EQUIPMENT
 PEOPLE
 MATERIALS
 INFORMATION
 SKILLS
 KNOWLEDGE
 ANY ITEM LIKELY TO BE IN LIMITED SUPPLY
GOAL-desired end. Something that you hope to achieve.
TIME SCALE-the period of time that it takes for a project to happen or be completed
PLANNING-the act or process of setting out goals, intended to be achieved, and what course of action
should be used in achieving the goals; setting targets/ time limits/ course limits
CONTROLLING-comparison of actual performance of a process against the original plan;
FORECASTING-looking in to the future to try and assess the possible trend of events, which are likely to
influence the conditions of the working situation, so that steps may be taken to overcome any
difficulties before or soon as they rise.
MOTIVATING-the reason why somebody does something that involves hard work and effort of the
reason somebody behaves in a particular way.
COORDINATING-the act of making parts of something, groups of people etc. work together in an
efficient and organized way.
COMMUNICATING-act of exchanging information, news, ideas, feelings, and thoughts etc. with other
people; making known your ideas, and thoughts etc. known to other people, so that they understand
them.
ORGANIZING-arranging for something to happen or to be provided.
CONSTRUCTION- is a series of actions undertaken by construction companies and consultants, which
produces or alter building and infrastructure.
CONSTRUCTION PROCESS- can be described as a complex interplay of people, tools, equipment and
materials, coordinated by communication and for with money.

CONSTRUCTION ACTIONS INCLUDE:

• DESIGN AND MANAGEMENT DECISIONS
• DIRECT PRODUCTION OF THE FACILTY ON SITE
• PROJECT CLOSE-OUT/ FINAL ACCOUNTING
• REHABILITATION AND MAINTENACE OF EXISTING FACILITIES

CONSTRUCTION MANAGEMENT
IS THE PRACTICE OF ENSURING THAT CONSTRUCTION ACTIONS ARE UNDERTAKEN EFFECTIVELY AND
EFFICIENTLY
CONTRACTOR
MEANS ANY PERSON OR LEGAL ENTITY ENTERING INTO CONTRACT WITH THE CLIENT FOR THE
EXECUTION OF WORKS OR PART THEREOF
CONSTRUCTION MANAGER
A PROFESSIONAL WHO MANAGES THE BUILDING CONSTRUCTION PROCESS-PREPARES PRODUCTION
DOCUMENTS, INVOLVED WITH THE DAY TO DAY MANAGEMENT OF CONSTRUCTION PROJECTS, HAVE
RESPONSIBILTY FOR SUPERVISING PEOPLE AND REPORTS TO THE CLIENT AND THE SENIOR
MANAGEMENT

The OBJECTIVES of the MANAGEMENT

• LESS TIME TAKEN
• LESS WASTE (LEAN PRINCIPLES)
• ECONOMIC USE OF RESOURCES
• HIGHER QUALITY OF PRODUCTS
• MORE VALUE
• LESS ACCIDENTS AND FATALITIES
• SATISFACTION OF CLIENT/ EMPLOYER
• PRODUCTS ARE SUSTAINABLE

GENERAL SKILLS FOR MANAGERS

Conceptual skills-A manager’s mental ability to coordinate all of the organization’s interests and
activities
Interpersonal skills-A manager’s ability to work with, understand, mentor, and motivate others, both
individually and in groups
Technical skills-A manager’s ability to use the tools, procedures, and techniques of a specialized field
Political skills-A manager’s ability to build a power base and establish the right connections

PRINCIPLES OF MANAGEMENT
1. PRODUCTIVITY- IMPROVING THE NECESSARY METHODS FOR AN INCREASE IN THE PRODUCTION
OF GOODS BY THE USE OF MECHANICAL POWER
2. SOCIAL SCIENTIFIC ASPECT OF MANAGEMENT- THE GROWTH OF THE TRADE UNION SYSTEM---
ATTENTION GIVEN TO WAGES AND WORKING CONDITIONS
3. FINANCIAL ACCOUNTING- PROVIDING PROPER FINANCIAL ACCOUNTING, MAINTENANCE OF
APPROPRIATE GOODS OF ACCOUNT AND PERIODICAL PREPARATION OF BALANCE SHEET
4. PLANNING, MOTIVATION AND EFFICIENCY
THE SPECIFICATION OF JOB RESPONSIBILITIES
TIME AND MOTION STUDY
PLANNING SCHEDULE
TOOLS TO AID THE ADEQUATE
PLANNING AND PRODUCTION
5. PROCESS OF MANAGEMENT
PLANNING
ORGANIZING
COMMANDING
COORDINATING
CONTROLLING
6. HUMAN PRINCIPLES OF MANAGEMENT
PERFORMANCE
ORGANIZATION
MOTIVATION
NEEDS
SATISFACTION
THREATS
REWARDS