Professional Documents
Culture Documents
– 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
Inherently dangerous
Organized chaos
• 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 Nation’s 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
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
6. Fabricators
Structural steel, pre-castors, wood products
7. Labor/Trade Unions
Participants in the Construction Process
8. Government
Federal, State, local, and quasi-government
Owner/client
GSA, DOT’s, 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 At-
Large
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 • Clearing and grubbing
• Steel erection • Blasting/demolition
• Concrete • Electrical
– Cast-in-place • Painting
– Prestressed/Precast • HVAC
• Masonry • Environmental
• Timber/wood framing remediation
• Piping/plumbing • 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 “one-
stop 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
– CM’s 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