Construction Methods & Management

Construction Managers must be both business and technically oriented

Basic Skills needed by Construction Managers

Estimating Computer Leadership/supervisory Communication = writing and oral skills Negotiating Team Building

Construction Management Functions

Coordination

Planning & Scheduling

Purchasing & Expediting Supervision Cost Control Documentation and Reporting

Construction Management Functions

Quality Control/Quality Assurance

Estimating
Safety and Risk Management

Contract Administration
Claims Analysis/Avoidance

Additional Skills & Knowledge needed by Construction Engineers

Surveying (GPS, GIS, Hydrographic) Structural Design CADD/Drafting

Specialization in Mechanical, Electrical, Chemical, or Environmental disciplines

Construction Engineering Functions

Preparation and Review of Shop Drawings Constructibility & Sequencing Studies Value Engineering

Erection Diagrams and Procedures

Survey & Layout

Executive Functions
Corporate Management

Strategic Planning
Marketing & Business Development

Public Relations
Labor Relations

Executive Functions

Ultimately responsible for quality, safety, production, and general financial health.

Construction training can be valuable to design professionals

To enable them to produce practical and efficient designs
Develop needed management skills Learn scheduling techniques that can be applied to the preconstruction process

Project Life Cycle

Life Cycle of a Constructed Facility

1. 2. 3. 4. 5. 6. Concept and Feasibility Engineering and Design Procurement Construction Startup and Implementation Operation or Utilization

What is Construction?
Application of art and science Inherently dangerous Organized chaos

Mankind using creativity, knowledge, strength, determination, and persistence to control his environment

Construction differs from manufacturing in that:

Not performed in controlled conditions, therefore highly impacted by weather and other environmental conditions Seasonality Each project is unique Remotes sites with various access problems

Construction differs from manufacturing in that:

Process is not as predictable

Difficulty in applying automation High potential for encountering unforeseen conditions Costs can vary according to conditions

Construction differs from manufacturing in that:

Difficult to manage and supply utilities and other resources. Technical innovations are adopted slower. Success is dependent upon the quality of its people. Very custom-oriented Product can be of mind-boggling size, cost, and complexity

Problems Facing Construction Industry:

Highly traditional and fragmented; slow to embrace new technology Restrictive/outdated building codes Labor agreements and craft jurisdictional issues Liability and legal considerations Lack of profit motive or other incentive

Problems Facing the Construction Industry:

Government regulation

Environmental constraints
NIMBY syndrome

Global competition

The Blame Game

Overview of the Construction Industry

10% of GNP Employs over 10,000,000 workers Annual Volume exceeds $800 billion Vital to the Nations economic health and quality of life

Industry Divisions
1. Residential Construction 2. (Institutional & Commercial) Building Construction

3. Heavy Construction
4. Industrial Construction

Overview of the Construction Industry

Industry Divisions 1. Residential Construction

2. (Institutional & Commercial) Building Construction

3. Heavy Construction

4. Industrial Construction

Overview of the Construction Industry

Residential
Types
Single family houses Multi family dwellings High-rise apartments & condominiums 30-35 % of the industry Low capital and technology requirements

Overview of the Construction Industry

Residential (continued)
Largely private

Often speculative
Developers = surrogate owners Designed by architects, builders/developers

Overview of the Construction Industry

Building Construction
Institutional and Commercial Construction Schools and universities Medical clinics and hospitals Recreational facilities and sports stadiums

Overview of the Construction Industry

Building Construction
Retail stores and shopping centers Warehouses and light manufacturing Office buildings (single story to sky scrappers) Hotels, convention centers, and theaters

Overview of the Construction Industry

Building Construction Institutional and Commercial Construction Churches and Synagogues Prisons Courthouses and other government buildings

Overview of the Construction Industry

Building Construction 35-40 % of construction market Larger and more complex than residential Various owners (mostly private) Designed by architects and engineers

Overview of the Construction Industry

Heavy Construction Horizontal Construction 20-25% of the construction industry Mostly public financing or large consortium

Overview of the Construction Industry

Heavy Construction
Highway & Bridges Railroads & Urban Transit Systems Tunnels and Dams Airports Canals Port & harbor structures

Overview of the Construction Industry

Heavy Construction Pipelines Sewer Systems Water treatment & distribution systems Power & communication networks Landfills

Overview of the Construction Industry

Heavy Construction Mass quantities of basic materials: earth, rock, steel, timber, and concrete Constructors need knowledge of engineering and geology

Engineers and builders are often specialized

Overview of the Construction Industry

Heavy Construction
Greatest impact on land and water

High degree of mechanization

Contracts awarded through competitive bidding

Overview of the Construction Industry

Industrial Construction
Very large scale projects

High degree of technological complexity

Designed and built by the largest firms with the highest level of technical sophistication Represent 5-10% of the market

Overview of the Construction Industry

Industrial Construction
Petroleum refineries
Steel mills & aluminum plants

Chemical processing plants

Overview of the Construction Industry

Industrial Construction
Fossil fuel & nuclear power plants
Other heavy manufacturing facilities

Overview of the Construction Industry

Industrial Construction
Complex mechanical systems, process piping, and instrumentation Civil, but also mechanical, chemical, and electrical engineering disciplines involved Mostly private ownership (in western countries)

Overview of the Construction Industry

Industrial Construction
Negotiated contracts are typical Turnkey contract arrangements are common Design-constructor must be intimately familiar with the technology and operations of the facility

Overview of the Construction Industry

Construction Industry is further subdivided into sectors or segments by:
Public vs. private ownership/funding Union labor vs. open shop Organization and method of project delivery Type of work: new vs. rehab/retrofit/restoration Contract type

Participants in the Construction Process 1. Owner

Private or public Conceives the construction project Increasing level of sophistication

Participants in the Construction Process

2. Designer
Architects Size of firms ranging form single practitioner to large integrated firms Mostly building and residential construction Engineers Civil, mechanical, structural, electrical,chemical, environmental, geotechechnical, and multidiscipline

Participants in the Construction Process

3. General Contractor

General contractor also called Prime contractor Specialty contractors working as subcontractors Organization ranges from small, one-person company to large, integrated A/E/C firms Part of a design-build team

Participants in the Construction Process

4. Construction Manager
Two principle divisions of CM
CM for Fee (management services only) CM At Risk Operates similarly to a GC or DB with no labor or capital equipment Can encompass the management of the design process as well as construction CM services including inspection and overall project or program management

Participants in the Construction Process

5.

Suppliers
Manufactures, distributors, research, promotions Materials and equipment sales Equipment Rental Structural steel, pre-castors, wood products

6. 7.

Fabricators

Labor/Trade Unions

Participants in the Construction Process

8.

Government
Federal, State, local, and quasi-government Owner/client
GSA, DOTs, School Districts, USACOE

Non-ownership functions
Taxation and regulation Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA), FHWA, FAA, EPA, and several others State: DOL, DEP/DNREC, historic preservation (SHPO) Local: County/City/Township Building Officials, Planning Boards, and Zoning Commissions Quasi-government agencies: development authorities, bridge and turnpike commissions

Participants in the Construction Process

9.

Utility Companies

Electric, communications, water, gas,sanitary sewer Private petroleum pipelines Owner or service provider Integral part of the process Existing facilities in conflict with new construction Interruption of service can be very costly

Participants in the Construction Process

10. Industry Associations

Organizations of construction contractors Organizations of the design and management professions Construction material and equipment suppliers and product research Construction labor organizations Coordination and arbitration Inspection, specifications, and costs

10. Industry Associations

Functions and services

Industry information and communication Development and maintenance of standards Interindustry coordination Collective bargaining Statistics (market & industry) Meetings and conventions

10. Industry Associations

Functions and services

Public relations Joint industry promotions Management education Market development Apprenticeship training Legislative Government relations Product research

Participants in the Construction Process

11. Professional Services

Business/management consultants Legal council CPA firms Surety Companies Financial Institutions/Lenders Insurance agents

Participants in the Construction Process

12. Adjacent Owners and the Public AtLarge

Existing businesses, institutions, and residences adjacent to the constructed facility Civic organizations and community groups Railroads and public lands

Project Delivery Organization Construction by owners forces Owner-managed construction Construction by general contractor Design-build team CM Contract

 Construction employing owner forces

Usually small in-house construction or renovations Industrial projects or institutional (such as hospitals or schools

Owner-managed construction
Residential/commercial building developers Industrial or institutional

 Construction by General Contractor

Also referred to as Prime Contractor Most common method of delivery Contractor bears substantial risks and financial responsibility Facility designed by in-house architect/engineer or by design consultants Often requires specialty subcontractors

Specialty contractors might include those specializing in one of the following:

Excavation Steel erection Concrete
Cast-in-place Prestressed/Precast

Masonry Timber/wood framing Piping/plumbing

Clearing and grubbing Blasting/demolition Electrical Painting HVAC Environmental remediation Many, many others

 Design-Build (Turnkey)
Single firm or team responsible for design and construction minimizes coordination problems More efficient designs with the interjection of constructibility and innovation Often employs fast-track construction Benefits include reduced overall delivery time and onestop shopping for the owner Disadvantages include complexity of evaluating proposals

 CM Contract -- Fee (management services

only) also referred to as Agency

Specialized construction skills through all project stages including preconstruction Provides close coordination between design and construction Eliminates impact of conflicts of interest Independent and objective evaluation of costs, schedules, and performance Potential saving in time and cost Disadvantages include no risks associated with costs increase

 CM Contract At-Risk
CM assumes financial risks similar to a GC CM manages all phases of the work without performing any actual work tasks CMs only resources are management personnel Contractors/subcontractors have a direct contract privity with CM Contract form is often a negotiated guaranteed maximum price arrangement Disadvantages includes lack of impartiality

Construction Methods & Management