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Published by: vijayakapoor on Jan 12, 2011
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For many companies, the traditional organizational structure gives way to the modular model. In this new structure, companies focus on what they can do best and outsource many other tasks, such as accounting, operations, and human resources and so on. The future organization, competing in the global environment needs to be lean and flexible. One such strategy is to leverage its power by focusing on those function companies can do best, and let the specializing suppliers do the rest.

The best contracting organization structure reflects a flat hierarchy. It is logical for a successful construction contracting firm to have a lean and thin structure. The contracting industry is an owner-operator one where the CEO or president needs to know most, not less. Many levels ensure the owner knows less and what ever he is told is filtered by the level who reported. Currently, delegating less is a new trend in every construction business. It is a trend that allows for the owner to know more things, quicker and therefore faster to act.

What is a modular structure? Modular organization rely on outsourcing any or all non critical function i.e. which does not affect the company¶s long-term competitive advantages. Outsourcing enables management team and yet achieves seemingly enact able goals. Such organizations keep their core value chains in house, i.e. which add value to the company and stakeholders and outsource any activities which are no value to its activities

Scope of work
The scope of work in order to construct a housing colony for an industrial group is as follows ±  Grading and site preparation  Foundation structure  Excavation


curing and de shuttering. while the roofing is done by a completely different subcontractor specializing in roofing. curing and de shuttering.  Soil filling and compaction till plinth level  Roof slab including reinforcement. concreting. curing and de shuttering.  Brick work and curing  Ducts for electrical wiring  Frames for doors and windows  Plastering and curing  Water treatment  Floor/tiling  Electrical wiring  Water supply Sanitary and plumbing  Doors and windows  Painting  Connections for electricity and drainage  Fire protection systems  Completion/occupancy certificate Many of these steps are performed by independent crews known as subcontractors. shuttering.  Pillars/columns (up to plinth level)  Soil filling in trenches and compaction till ground level  Plinth construction including reinforcement. concreting. concreting. concreting. 2 . shuttering.  Pillars up to lintel level including reinforcement. shuttering. curing and de shuttering. shuttering. For example. shuttering.  Lintel including reinforcement. curing and de shuttering.  Pillars up to roof level including reinforcement. shuttering. concreting. concreting. Footing/foundation including reinforcement. the framing is generally done by one subcontractor specializing in framing. curing and de shuttering.

and also company procedures  Training laborers on how to properly handle and dispose of hazardous materials according to procedures and policies set by personal corporation regulations and state laws.  Making decisions to ensure quality is optimized and budgets are maintained.inspecting many final products to ensure excellence  Ensuring quality products. which are all necessary for any construction project  Directing all construction related functions. and cost analysis.  Directing safety programs in an attempt to reduce any hazards or injuries possible during and after the site¶s construction. and executing accurate tests. and overseeing all processes  Assisting with managing all construction workers.  Meeting the contractors and designers for accurate scheduling. . Functions include ±  Making the plan on which builders will work on  Planning.  Following strict laws and guidelines.  Studying land surfaces.  Creating the progress and budget reports necessary to compute remaining estimates  Assisting with daily activities.Each subcontractor is an independent business. taking detailed measurements. designing. All of the subcontractors are coordinated by a contractor who oversees the job and is responsible for completing the house on time and on budget.  Ensuring all procedures is properly followed. staffing. design and implementing adequate procedures and policies  Ordering necessary materials and equipment for each project to ensure delivery within the scheduled amount of time 3 .  Detecting failure .

and designers into clear documents. and deadlines for multiple sites.  Through delays and peak times.  Coordinating the ideas of owners. contractors.  Monitoring site progress to ensure schedules are being maintained.  Monitoring costs and expenditures throughout projects  Making decisions pertaining to production on a daily basis.  Calculating the accurate amount of staff. Creating design evaluations and seeing to it that all projects are completed with a specific time table and budget. resolving the issues. so they must meet with each on a regular basis to ensure there are no discrepancies. and after the construction process.  Managing the activities of the workforce.  Scheduling plans deliveries. 4 . material. and equipment necessary to complete a project.  Overseeing all aspects of an entire housing contract. and coordinating all activities among contractors accordingly.  Maintaining numerous documents and contracts that must be properly maintained before. as well as keeping records of daily progress. and organizing materials. maintaining an adequate amount of laborers.  Daily inspections and ensuring that plans are being properly executed. production outlines.  Maintaining schedules.  In case of discrepancies. material and equipment deliveries. during.  Coordinating all scheduling and communications that are necessary.

applying and finishing mortar Studying requirements. preparing sales commissions. cutting and aligning bricks. collecting. and calculating cost information. overhead. resolving design and construction problems. noting phase completion dates Establishing construction financial data methods. and marketing journal entries Completing building permit requirements. maintaining job cost system Producing and improving architectural plans. comparing construction budget with variance calculations Preparing residential closing work papers. preparing grading and base Brick layer Cement mason Establishing methods. completing monthly job closing routine. identifying and analyzing variances. forwarding blueprints to requesting parties. calculating requirements. assigning project numbers. resolving differences between designers and sales personnel Operating computer-aided design system. and models. verifying weekly critical path balancing. sources. evaluating construction Construction Design Technician 5 . and models for analyzing construction cost information. reducing Construction accountant Construction Accounting Coordinator Construction Administrative Assistant Construction Cost Analyst Construction Design Services Supervisor construction costs. procedures. measuring site. sources. preparing financial statement data. tracking. procedures. setting forms. analyzing design options.Assigning responsibility TASKS THAT HAS TO BE PERFORMED WHO PERFORMS THE TASK Measuring and laying-out site. maintaining subcontractor relationships.

Directing development of. negotiating quality. equipment. determining materials requirements. Construction Engineer Construction Estimator Construction Foreman Construction Laborer unloading. monitoring project expenditures Advising clients regarding project objectives and requirements. loading. monitoring expenses Assembling and disassembling scaffolding. studying position and product statements. tools. additions. aerial photographs and tests on soil composition. and price agreements and leases. preparing cost estimates. providing project estimates. updating specifications. and verifying. locating. diagnosing/analyzing needs and requirements Analyzing materials. Planning construction requirements. preparing engineering design and documents. project drawings. identifying and projecting costs for each elevation. supplies. Construction Operations Vice President development issues. inspecting construction site Studying home plans. supplies. building quality homes Understanding and analyzing construction interviewing ³people´ who understand goals. resolving land Construction Manager objectives. Construction Project Controller 6 . delivery. maintaining ethical standards Identifying suitable parcels and locations. maps. checking schedules. . scheduling materials. drawings. and equipment. confirming specifications. tools. costing changes. and moving materials. blueprints. and related topographical and geologic data. terrain.Establishing and enforcing purchasing policies. and equipment Construction Planner purchase of requirements. negotiating Construction Director Construction Division President purchases. and site adjustment requirements Studying blueprints. identifying resources. hydrological characteristics. requisitioning and approving materials. developing building sites Collecting and studying reports. planning land development.

specifications. planning land development. calculating resources required. maintaining materials and sup preparing material bids Completes construction projects by verifying estimates. guiding project operations Interviewing customers. cutting. monitoring and evaluating subcontractor work Recording surveys. allocating resources Reading blueprints. and finishing dry-walls Preparing bid documents and contracts. determining development profitability negotiating land purchase. obtaining tools and equipment Identifying suitable parcels and locations. coordinating contract execution. developing building sites Constructs pipeline by studying demand estimates. and specifications. maintaining contract records. assessing Sites and watercourse crossings. obtaining utilities Defining project purpose and scope. representing builder. awarding contracts. following warranty guidelines. Construction Quality Assurance Coordinator Construction Quality Manager scheduling work with subcontractor. fitting. resolving warranty issues Identifying new acreage. tracking warranty claims. obtaining and investigating complaints. Construction Secretary identifying and correcting customer complaints. establishing standards and protocols. and budgets. compiling and updating customer satisfaction information Providing administrative services. measuring and laying-out reference lines. negotiating Construction Services Vice President Construction Supervisor Dry-Wall Installer Engineering Construction Administrative Engineering Construction Project Manager Home Construction manager purchases. details. measuring. project drawings. preparing specifications and Pipeline Construction 7 . obtaining and analyzing development bids. establishing and disseminating schedules. controlling expenses. estimating and ordering requirements.

requesting payment of permit and easement fees. measuring. typography. completing and filing forms and sketches. defining lines and grades. underground facilities.and receiver-responsibility and authority) ‡ What (scope of communication and format) ‡ How (e-mail. storing. documentation. telephone. and illustrations Training laborers on how to properly handle and dispose of hazardous materials according to procedures and policies set by personal corporation regulations and state laws. and attaching laths Manager Roofer Staking Aide Surveyor Safety Supervisor Safety Director Tile Setter Communication Flow Communication planning pulls the project together. completing impact studies Laying-out project. calculations. verifying construction location. Direct safety programs in an attempt to reduce any hazards or injuries possible during and after the site¶s construction Studying blueprints. defining staking requirements Planning surveys. calculating requirements. providing maps. installing roofing Developing staking sheets. meeting. The communication plan should outline: ‡ Who (lines of communication sender.logistics. presentation) ‡ When (schedule) ‡ Feedback (confirms message received and understood ± document control) ‡ Filing (retrieval. document. cutting. cut and fill. measuring and laying-out site. gathering materials. disaster recovery) 8 . preparing roof.

The major purpose of downward communication is to provide subordinates with information on goals. but does not follow a chain of command.When employees send a message to their superiors. Horizontal communication occurs between people on the same level of the hierarchy and is designed to ensure or improve co-ordination of the work effort. Upward communication . The following figure shows the flow of communication in a construction firm. Effective horizontal communication should prevent tunnel vision in the organization. and horizontally and laterally. Downward communication starts at the top and flows down through the project levels to workers. 9 . The main function of upward communication is to supply information to the upper levels about what is happening at the lower levels. upwards. they are using upward communication. Downward communication is likely to be filtered. strategies and policies. It is formal communication. or halted at each level as managers decide what should be passed down to employees.Formal communication Communication flows in four directions: downwards. modified.

COMMUNICATION IN THE CONSTRUCTION INDUSTRY ‡ Communication is strategic ± now more than ever. co-ordination or assistance to either or both parties Informal communication Informal communication. can begin with anyone in the organization and can flow in any direction. commonly called ³the grapevine´. In the construction industry. The grapevine¶s prime function is to disseminate information to employees that is relevant to their needs.Lateral communication takes place between people at different levels of the hierarchy and is usually designed to provide information. is internal and external communication between members of an organization at all levels in order to achieve a mutual goal or goals. In an information-driven age. the following are informal communication methods: ‡ Regular contact ‡ Mind reading ‡ Motivation to speak Project communication instruments Project communication. communication is an integral part of the corporate strategy 10 .

-plans. 2007) (The ratings are: 1= low. Department of Quantity Surveying and Construction Management. Standardization will provide a system for effective management that is not too complex. 11 . Importance of communication instruments used by professionals Source: (University of the Free State. 3= intermediate.Figure 5. -structure and -flows are a standard process. over and over again. With many projects using the same communication instruments. it is important that the project-related information is fully documented to ensure that all the people involved understand what has and is happening. the running of the project will be much easier and more understandable if communication instruments. Each project has a great deal of communication and documentation. and may contribute towards the effective execution and completion of a project. 5 = high) For each project.

The contract manager is responsible for handling all the subcontracts.Organization Structure Board of directors Chairman Vice chairman and Managing Director General Manager Construction manager Project Manager and contract manager Engineering Manager Since most of the departments can be outsourced. Human resources. marketing and legal departments can be outsourced. The sub junior level workers who can be temporary and locally recruited are ±  General construction workers  Heavy truck drivers  Mechanic and repair helpers  Plumbers and pipe fitters  Structure metal workers  Blue ± collar workers  Supervisors  Cement masons  Construction helpers  Construction and well drillers  Line installers and repairers  Material moving machine operators 12 . thus the organizational chart shown in the figure is a very lean one. the structure will be a lean and modular one.

Number Of Personnel At Each Level The following are the number of people required ± White collared workers ± 100 Blue collared workers ± 300 The break up will be as follows BLUE COLLARED WORKERS Job Title Brick layers Cement Masons Construction Foreman Construction Laborer Construction Supervisor Dry-Wall Installer Pipeline/ Plumber Roofer Staking Aide Surveyor Safety Supervisor Tile Setter Electrician No. of workers 30 30 36 100 15 2 10 15 20 2 15 15 10 WHITE COLLARED WORKERS Job title Construction accountant Construction Accounting Coordinator Construction Administrative Assistant No. of workers 3 3 10 13 .

If the housing colony has to be completed in a short span of time. then the number of workers required will be more and the cost will increase. If the budgets are high then obviously. 14 . The number of people required in each department in a construction project varies with respect to the area of the place as well as the cost and time.Construction Cost Analyst Construction Design Services Supervisor Construction Design Technician Construction Director Construction Division President Construction Engineer Construction Estimator Construction Manager Construction Operations Vice President Construction Quality Assurance coordinator Construction Quality Manager Construction Secretary Construction Services Vice President Safety Director Chief Operating Officer Construction Project Manager Account officer Store Managers 2 5 15 1 1 15 5 3 1 3 3 1 1 3 1 15 4 5 The assumption taken here is that the bungalows are of around 3000 square feet and the apartments are of 1000 square feet. more labour can be used to complete the work faster.

Many of the problems that develop in construction projects are a result of both the temporary and inter-disciplinary nature of project teams . Thus it is necessary to keep these factors in mind before proceeding with the project. y Availability of workforce differs from region to region. Communication within project-based environments presents special challenges.Recommendations ± Construction is a labour-intensive industry. y The structure of the firm should be such that the firm is able to focus on its core activities and outsourcing is cost effective. y In the construction sector. the retention of good people is very crucial y Good manpower planning is necessary. y Communication is very important in construction sectors. Shortage of workforce results in delays leading to a cost escalation.each player having a different employer compounds this arrangement. Thus. Practical guidance should be provided on possible solutions to communication problems 15 . Additionally. excellent job opportunities will exist as the number of job openings exceeds the number of qualified applicants. which places heavy reliance upon the skills of its workforce. This is especially true within the construction industry. y Pre-planning for the manpower should be done with a proper estimation of the required personnel. Something that can be done by the firm at a better quality and lower costs should not be outsourced unless a proper strategy is in place for supporting the same. Even the cost of man hours is different in different places. a very fast employment growth is expected. This will be of great help to avoid labour related uncertainties.

y The construction industry is characterized by the predominance of migratory and unskilled labour. there is need to expand the training and skill certification programs both in terms of content as well as geographical reach y Considering shortage of skilled employees in the labour market of the construction industry and the reduction in the number of qualified workers. The collective commitment of every employee to common goals and common values is what makes the organization a leader in the industry.y Management should understand construction industry and realize the importance of labour resource issues and the need for long-term planning of labour resource requirements. It is important to attract. the success as a company is dependent on every person who works there. y Ways should be considered so that employee motivation can be improved by making use of the principles of human resource management. y Through the practice of the philosophies of strategic human resource management. proper forecasting of manpower should be done. so allowing them to train and retrain people to address the predicted skill shortages. The company should have an excellent work force with a commitment to training and development opportunities for employees in every position in the company. Thus. The firm should provide career opportunities that offer current rewards in the form of comprehensive and competitive compensation and benefits as well as meaningful advancement opportunities. 16 . it is possible to develop a high level of consistency between organizational and individual needs. develop and retain the most highly skilled workforce in the industry. Therefore.

http://scitation.imsc.sjsu.org/wiki/Construction 5.com/constructionjobsggcon.Bibliography 1. http://www.ppt#277. Robert Newcombe.pdf 9.asp 4.By Richard Fellows.com/human-resource-planning-in-the-constructionindustry. http://www.edu/gilliss_d/Summer09/Pearce_11e/Chap011.shtml 6.res.ihireconstruction.com/resources/schedule/6kproj. Sydney Urry 3. http://www. David Langford. http://www.en. http://en.22.articlesgratuits. Principles of Management ± Koontz Ordeal ± McGraw Hill Publications 2.b4ubuild.wikipedia.Ty pes of Boundaries 8. Construction management in practice .in/~sitabhra/papers/pan_sinha_pramana_08.php 7.-can-it-ever-work-id1139.aip.cob.org/getabs/servlet/GetabsServlet?prog=normal&id=JMENEA0 00022000002000089000001&idtype=cvips&gifs=yes 17 . http://www.

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