Introduction to Construction Industry

Major parties:
1. Owners/Client/Developers/Promoters
2. Consulting Firms: Designers Surveyors, Architects, Engineers
3. Contractors
4. Regulators Civil Engineering and Development Department, Buildings
5. Department, Lands Department, Environmental Protection Department, etc.
6. Other stakeholders
Construction output: Gross value of construction works in nominal term by
main contractors is increasing during 2006-2012
Ten Major Infrastructure Projects :
1. South Island Line
2. Sha Tin to Central Link
3. Tuen Mun-Chek Lap Kok Link and Tuen Mun Western Bypass
4. Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail
Link (XRL)
5. Hong Kong-Zhuhai-Macao Bridge (HZMB)
6. Rail connection between the Hong Kong and Shenzhen airports
7. Lok Ma Chau Loop
8. West Kowloon Cultural District (WKCD)
9. Kai Tak Development
10. North East New Territories (NENT) New Development Areas (NDAs) and
Hung Shui Kiu NDA
Construction industry: offer many opportunities for career growth
Introduction to Construction Project Management
What is a project?
A project is a temporary endeavor undertaken to create a unique product, service,
or result (Project Management Institute--PMI).
I. Temporary means that every project has a definite beginning and a
definite end.
II. Uniqueness is another important characteristics.
III. Progressive elaboration is the third characteristic of a project, which
means developing in steps, and continuing by increments. (PMI)
 What is a Project Management?
I. Project Management is the application of knowledge, skills, tools and
techniques to project activities to meet project requirements (PMI) .
II. Project management is accomplished through the application and
integration of the project management processes of initiating, planning,
executing, monitoring and controlling, and closing
Project Management Processes

Content of Project Management

I. Identifying requirements
II. Establishing clear and achievable objectives
III. Balancing the competing demands for quality, scope, time and cost
IV. Adapting the specifications, plans, and approach to the different
concerns and expectations of the various stakeholders
What is Required for a Good Project Manager?
I. Project Management General Knowledge
II. Application Area Knowledge, Standards, and Regulations
III. Understanding the Project Environment
IV. General Management Knowledge and Skills
V. Interpersonal Skills
What Makes Construction Projects Unique?
I. Construction projects, with the possible exception of residential
projects, do not produce a product as such; but rather a facility that will
make or house the means to make a product or provide service facilities
such as dams, highways and parks.
II. They deal with geographical differences and natural events in every
case and may have a significant effect on the environment.
 III. Often, if not usually, they involve a team of hired specialists in design
and construction disciplines.
IV. In todays world they have to involve many stakeholders, particularly,
environmental and community groups that many other types of
projects do not.
V. Construction projects often require large amounts of materials and
physical tools to move or modify those materials.(PMI)
Stakeholders of Construction Projects
I. Project stakeholders are individuals and organizations that are actively
involved in the project, or whose interests may be affected as a result of
project execution or project completion.
II. Clients/promoters
III. Project performing organizations
A. Financial planning consultants
B. Architectural and engineering firms
C. Design/construct firms
D. Professional construction managers
E. Operation and maintenance
F. Facility management
IV. Regulatory agencies
V. General public
Conflicting Views of a Construction Project:
Different project stakeholders view the project differently. This lecture will
primarily discuss a construction project from the clients perspective.
 The Life Cycle of a Constructed Facilities
Introduction to Construction Company Management
(Organization)
The need for an organization:
I. Planning
II. Organizing
III. Staffing
IV. Leading
V. Controlling
A. Once company objectives have been established, it is the organization that
achieve those objectives by carrying out business activities.-------Cost
estimating, bidding, contract negotiation, project planning and scheduling,
accounting, payrolls, etc.
B. Contractor needs to have a general company organization that supports the
total of company operations.
C. Contractor also needs a suitable field organization for each of its project
Organization basics:
Organizing a business may be described as determining the individual
job positions that are required, defining the duties and responsibilities
of each such position, and establishing working relationship between
these positions.
 Steps for Development of an Effective Company Organization:
1. List every duty for which someone must be made responsible.
2. Divide the listed duties into individual job positions.
3. Arrange these positions into an integrated functional structure showing
lines of supervision.
4. Staff an organization
5. Establish lines of communication.
6. Prepare a manual of policies and procedures.
7. Implement the plan and adjust as necessary.