CONSTRUCTION MANAGEMENT

CONSTRUCTION
PROCESS
LECTURE 2
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 Life Cycle of a Construction Project

• 6 basic phases :
Concept and feasibility studies
Engineering and design
Procurement
Construction
Start up and implementation
Operation or utilization

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 Concept and feasibility studies

• Conceptual analyses
• Technical and economic feasibility studies
• Environmental impact report.

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 KT DRAW BRIDGE
• The iconic drawbridge linking Kuala Terengganu City Centre to
Kuala Nerus via Seberang Takir, will be a new state landmark
when completed by end of this year. The construction work
on the RM240 million, 638m drawbridge.

• The bridge would shorten the journey from Kuala Terengganu

to the Sultan Mahmud Airport to approximately 10 minutes
via a coastal road which was be built by the state government.

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 Engineering and design
• Preliminary engineering & design
– Stresses on architectural concept
– Evaluation of technological process alternatives
– Size and capacity decision
– Comparative economic studies (choice whether
IBS or conventional) types of construction
method

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 Engineering and design
– For example, in a high rise building:
• Determines number and spacing of the stories.
• General layout of services and occupied floor spaces.
• General functional allocations.
• Steel or reinforced concrete structure.

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 Engineering and design

• Detailed Engineering & Design

– Process of breaking down, analyzing and
designing the structure and elements to
comply with recognized standards of safety
and performance.

– Designs will be in the form of a set of explicit

drawings and specifications that will tell the
constructors exactly how to build the structure
at site.
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Types of Construction Method
1. Cast in-situ method.
2. Composite method.
3. Fully pre-fabricated method.

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1. Cast In-situ Method
- construction on site
- formwork is used as mould where wet
concrete is poured into a temporary
system

2. Composite Method
- Partially pre-fabricated
examples:- steel roof truss, wall frames

3. Fully Pre-Fabricated method

- all elements pre-fabricated in the factory
- can involve the assembly of precast
elements such as floor slabs, in-filled
walls,
bathrooms, staircases, etc
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 Procurement
• Contracting and sub contracting.
• Obtaining materials and equipment required
to construct the project.

* Both dependent on the contractual approach

taken for the particular project.

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 Construction
• Designer’s plans and specifications are concerted
into physical structures.

• Involves the organization & coordination of all the

resources for the project. Ex. Labor, construction
equipment, money, etc to complete the project
within __________, ____________ & ___________
specified by the designer.

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 Start Up and Implementation

• To make sure all components function well

together as a total system.
• May involve testing, adjusting and correcting
the major electrical and mechanical systems
so that they perform at their optimum level.

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 Operation & Utilization
• Utilisation of structure.

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 The Construction Process
•Client identifies the need for the item of construction
Conceptual •Client appoints and briefs consultants
Stage •Consultants study the client’s requirement, propose an
outline of the design and assess the feasibility of the
project

•The concept of the project is further developed

Design Stage •Prepare the production information and contract
document
•Call tenders

Construction •Prepare production programmes

Stage •Construction carried out on the site

Operation & •The completed building or works is maintained, repaired

or altered as required, over the course of its life.
Maintenance
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 Characteristics
of a
Construction Project

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 Management in construction
can be divided into two distinct
levels:
1. Management at the company
(corporate) level.

2. Management at project level.

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 Nature of
Construction Industry

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 Nature of the Construction Industry

• Management of construction projects differs from

that in other industries due to the unique nature of
the construction industry;
1. Heterogeneous and fragmented firms
2. Size of firms
3. Size of the industry
4. Regulator of the economy
5. Characteristics of projects
6. Characteristics of workforce
7. Ease of entry to the industry
8. Separation of design and production
9. Speculative demand
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 Heterogeneous and fragmented firms

• Construction industry comprises of a group

of heterogeneous and fragmented firms,
meaning;
- there are large differences between
firms in terms of size and scope of
work, and
- within firms there is often diversity in
activities.

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 Size of firms

• The construction industry is made up of

mostly small firms.
• The small and medium sized firms however
accounts for only around
20-30 % of the total construction works.

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 Size of the industry

• The size of the construction industry is large;

- 3 to 14 % of a nation’s GDP
- employs between 5-12 % of the total workforce.
• These figures for GDP and labour employed would
be much higher if other closely related industries,
especially construction material manufacturers, are
considered. Gross Domestic Product (GDP) is the best way to
measure a country's economy. It includes everything
produced by all the people and companies that are in
the country.

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• GDP From Construction in Malaysia decreased
to 15350 MYR Million in the first quarter of
2020 from 16575 MYR Million in the fourth
quarter of 2019.

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 Construction industry as a regulator of the economy.

• Due to its large size and its wide influence over

other related industry, the government has very
often used the construction industry as a regulator
of the national economy.
• This done in the following ways:
- Direct intervention as a major client for the
industry.
- Indirectly through the manipulation of interest rates to
control private sector building demand

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 Dec. 11, 2003

KUALA LUMPUR, Malaysia -- In one of its first

major economic-policy decisions, Malaysian Prime
Minister Abdullah Ahmad Badawi's government
said it plans to halt construction on a controversial
14.5 billion ringgit ($3.82 billion) railway project.

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KL can save $100b by dropping 3 mega projects:
Mahathir
• SHAH ALAM • The Malaysian government could reduce its
total debts by RM300 billion (S$99.5 billion) by cancelling
three mega projects started by the previous government,
Prime Minister Mahathir Mohamad said yesterday.
• These are the Kuala Lumpur-Singapore High-Speed Rail (HSR),
the East Coast Rail Line (ECRL) and the trans-Sabah gas
pipeline projects, he said at a talk show in the Selangor
capital, adding that these projects are too costly to be funded
by the government.
• Malaysia and Singapore last month signed an agreement to
postpone work on the HSR for about two years, up to May 31,
2020.
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 Ease of entry to the industry

• There are few constraints to setting up a

contracting or property/housing
development business.
• The authorities have imposed mandatory
registration for contractors as well as
developers, but the conditions for
registration are relatively easy compared to
the consultants.

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 Separation of design and production

• Traditionally design is separated from

production, making the management of the
construction process difficult and
complicated; reasons being:
(i) conflict of interests between the
designers and constructors,
(ii) poor communication and coordination.
*How can the above difficulties be overcome?
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 The nature of demand

• The demand for construction projects is

called ‘derived’ demand; meaning it is
derived from the need for buildings or
infrastructure in which to live, play, work and
to manufacture, store and transport goods,
etc.

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 Characteristics of projects

The industry is project-based, with construction

works having the following characteristics:
• projects are large discrete units,
• works are carried out over relatively long
duration,
• projects are constructed away from where the
firms are located,
• projects undertaken by any one firm are
geographically dispersed,
• majority of projects are designed and tailor-made
to a client’s requirements,
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 Cont’d
• there is wide variability in the types of
construction projects,
• prices for projects are established through
competitive tendering; meaning the products
are sold before they are produced,
• each individual project frequently constitutes a
significant proportion of a firm’s workload, and
• projects are built based on speculative demand.

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 End of lecture on
Nature of Construction Industry

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 The Contractual Relationships among the
Participants

• The contractual relationships among the parties

involved in a project depend on the procurement
method used for the project.
• Procurement methods can be broadly classified
under the following:
- Traditional approach
- Design-and-Build
- Management contracting
- Construction management
- Partnering

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 Some models of
contractual relationship

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 TRADITIONAL METHOD
• is based upon rigid separation of design and construction

• The promoter, usually after undertaking a feasibility study,

appoint a team of consultant (led by architect/engineer) to
under take the detail design.

• The design team prepares detailed drawing, specifications and

often Bill of Quantities.The tender documents are prepared
and the contract awarded, usually to the contractor with the
lowest bid.

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 CONTRACTUAL AND FUNCTION RELATIONSHIP (Traditional Method)

CLIENT

DESIGN ARCHITECT ACTING AS QUANTITY

CONULTANTS DESIGN LEADER AND SURVEYOR
PROJECT MANAGER

MAIN CONTRACTOR

NOMINATED / NAMED DOMESTIC

SUBCONTRACTORS SUBCONTRACTOR

Contractual relationship

Functional relationship
Alternative relationship
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 DESIGN & BUILT METHOD

• one building contractor or a construction

company to take full responsibility and carry
sole liability for the design and construction of
a building

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 DESIGN & BUILT METHOD

• Early delivery of project is required

• - Project is of technical complexity
• - There is the need for early start on site
• - Price certainty (usually fixed lump sum) is
required prior to production
• - Construction project is prestigious and hence
single point responsibility is required
• - Economy (time, cost, function, quality, value
for money) is required.

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 ORGANISATION STRUCTURE (D & B)

CLIENT
CLIENT’S
AGENTS

MAIN
CONTRACTOR

CONTRACTOR’S PROJECT TEAM

QUANTITY ARCHITECT ENGINEER CONTRACTOR’S MANAGER

SURVEYOR
CONTRACTOR’S SITE TEAM

SITE SITE SITE SUPPORT

MANAGER ENGINEER SURVEYOR STAFF

Contractual relationship
Organisational relationship

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 Turnkey

THE TURNKEY CONTRACTOR IS MADE FULLY

AND TOTALLY RESPONSIBLE FOR EVERYTHING
FROM PLANNING, DESIGN, CONSTRUCTION AND
SUPERVISION.

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Ideal Prestige Sdn Bhd (Ideal Prestige) has signed a turnkey development
contract with the Metallurgical Corporation of China Construction Overseas
Ltd (MCC Construction) for Pacific Parade, which is poised to become
Sabah’s largest commercial development.

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 CONSTRUCTION MANAGEMENT METHOD

• delivery of a high-quality construction product on

time at the least cost
• similar to the management contract approach except
– construction manager - consultant - employed by the
client in a purely managerial capacity
– direct contractual relationship between the various works
contractors and the client
– The design team and construction manager possess
equal professional status.
– client has direct responsibility for his or her project and
flexibility in procuring the various specialist services.

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ORGANISATIONAL STRUCTURE FOR CONSTRUCTION MANAGEMENT

CLIENT

DESIGN CONTRUCTION
TEAM MANAGER

WORKS CONTRACTORS

Contractual relationship

Organisational relationship
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ORGANISATIONAL STRUCTURE FOR CONSTRUCTION MANAGEMENT

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 PARTNERING IN CONSTRUCTION
• Is a concept based on co-operative efforts for mutual
benefits.

• Its use is widely in other countries and in other

economic sectors.

• The application of partnering as an approach in

construction procurement may lead to improved
performance in the construction industry.

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 PARTNERING IN CONSTRUCTION
• In partnering, efforts are made to design for
each project a problem-finding and problem-
solving team comprising of members from
both parties and recognises and honours the
objectives of all parties, thus creating
SYNERGY for project success.

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 PARTNERING IN CONSTRUCTION
• The BRT-Sunway Line is Malaysia’s first dedicated and
elevated electric Bus Rapid Transit (BRT) system, and is
the first public-private partnership (PPP) between
Prasarana Malaysia Berhad (Prasarana) and Sunway
Berhad.

• This public transport project, operated and managed

by Prasarana, serves to enhance the connectivity,
accessibility and mobility for the communities in
Bandar Sunway, Subang Jaya and USJ. Sunway has
contributed RM123 million to the RM634 million BRT-
Sunway Line project.

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