Construction Management

CIVE 421
Fall 2022
Dr. Issam Srour
How Are We Doing So Far?

PART I. CONSTRUCTION INDUSTRY AND PRACTICE

√ Construction Management in the Engineering and Construction
Industry
√ Construction Project Characteristics and Life Cycle
 Development and Organization of Projects

PART II. CONSTRUCTION MANAGEMENT IN PRACTICE

 Pre-construction Studies, Activities, and Investigations
 Bidding and Contract Award
 Construction Supervision, Logistics, and Materials Management
PART III. METHODS IN CONSTRUCTION MANAGEMENT
 Concepts of Project Planning and Control
 Construction Scheduling and Cash Flow Analysis
Outline for Today

 Types of Projects

 The Project Life Cycle

Project Types
 Project Types (cont’d)
1. Residential
 Any facility intended for habitational use

2. Commercial and institutional building

 Any building project such as hotels, hospitals,
schools, warehouse, convention centers,
offices, shopping centers etc
Project Types (cont’d)

 Residential and commercial construction

projects are in reality part of one group
 Who designs them?
 So?
• Materials required for construction emphasizes
the architectural aspect for construction
(examples?)

 Yet we separate them into 2 categories

“ what is the difference between a residential

type and a commercial type project? ”
Project Types (cont’d)

Differences are assigned due to:

 Locality
 Design features
 Functionality
 Layout
 Façade
Project Types (cont’d)

3) Heavy Projects

 Involving production machinery

 Normally, these projects provide facilities that

have a public function relating to the
infrastructure
e.g., highway projects or anything that may come
with it such as: infrastructures, networks, dams,
pipelines

 Who designs them?

Project Types (cont’d)

4) Industrial = highly technical projects in

manufacturing and processing of products

 Chemical, Electrical, and/or Mechanical

processes
* e.g., gas/oil separation, refinery, chemical plant,
power plant

 Who designs them?

Many Other Ways of Categorizing
Projects by Type
 For example, projects are often categorized as:
1. Civil: roads, highways, tunnels, bridges, water and
waste water systems
2. Building: including residential or commercial
3. Process plants: facilities that convert materials into
sealable products through chemical processing (e.g.
refinery, chemical plants)
4. Industrial plants: convert materials into sealable
products through mechanical processing (e.g., power
plants, automobile assembly plants, and food
processing plants).
Other Ways of Describing Project
Types

 Grassroots/Greenfield vs Brownfield

 New vs Renovation/refurbishment

 Public vs Private
 Contracting wise?
 Financing wise?
• Only 1 set of cash flow streams for private projects (i.e.
streams flowing in and out of the entity)
• Public projects have an additional set of cash flow stream
that bypasses the entity and flow directly into the pockets
of the public
• Public projects might have special tax provisions
Typical Breakdown
Outline for Today

 Types of Projects

 The Project Life Cycle

The Project Life Cycle
P D B C O

Aim:
To achieve a product owned by the client and used
by residents, commuters, etc… Product

Design and The Built

Construction Facility
Processes
How:
By choosing appropriate design
and construction methodologies
while keeping in mind time, money, R
quality, safety and environmental $ Q
constraints + Safety & Environmental
A More Detailed Look
 Project Life Cycle

Pre- Pre- Post-

Project Construction Construction
Design Bidding Construction Operation

Project life
Engineer’s Bid expectancy
Go-Ahead
Estimate Price
Decision
First Step in Pre-Project Planning

 What is the first step?

 How?

 For commercial projects, a market analysis is

done to
 Establish profitability of proposed project
 Recommend optimal time frame for
construction
 Other considerations
• Facility size, site location, labor availability,
logistics, utilities

 Why do we look into all these factors?

Pre-Project Planning

 Define project objectives and scope to meet

business objectives

 Study alternatives and select site

 Scope is finalized and a project execution plan is

in-place

 Long-lead items are identified and work packages

are developed (drawings, specifications,
addenda, general and special conditions)
Pre-Project Planning

 By the end of this phase, a decision is made

on the project’s fate, based on
 Graphical representation of project
• Sketch or architect’s rendering
• Layout diagram of facility
• 3D model of facility
 Cost/benefit analysis where cost estimate
based on conceptual-level information
• Square footage of roof area, floor space, size
of HVAC
 A design brief is prepared
Cost Projections
Cost Projections (cont’d)
Design Development

 Design team evaluates and selects architectural

components and project systems
 Examples?

 What are the roles of the different parties?

 Design team’s role is to recommend each of the
project’s systems
 Owner’s role is to verify that each system is acceptable
 CM’s job is to evaluate cost and schedule implications

 Preparation for next phase

 Obtaining necessary permits
 Prequalification of bidders starts
Preparing for Bidding

 Involves final preparation of documents

necessary to define each of the bid packages
 Technical documents: drawings, specs, general
conditions
 Prior to going out to bid, contract documents need
to be closely reviewed by the CM and owner
personnel

 Along with this work, a detailed and complete

estimate is put together
 Why is that?
Bidding/Award Phase

 Begins with a public advertisement or specific

companies notifying potential bidders about
 Scope of work
 Instructions on where to pick up or review contract
documents, when/where bids are due
 If bonding is a requirement
 Pre-bid conference details
Bidding/Award Phase
 CM and designer carefully review bids, and
should encourage alternate ideas
 As prices are revised on bid packages, the CM will
get a sense of the bidding climate compared to “fair
estimate”
 After bids are reviewed, and adjusted, the CM will
recommend a contractor and contract is signed

 Is there any remaining risk for variance after

contract is signed?
 Unforeseen conditions
• Bad weather, strikes, differing site conditions
• Designer error, unbuildable details, dimensioning
errors, subcontractor non-performance
Construction

 Designer’s role is to
 Review contractor shop drawings and samples to
validate conformance with contract
 Monitor construction quality and assist CM in
authorizing progress payments
 Study variation/change orders

 Construction manager’s role is to

 Support mobilization effort of all trade contractors
to job site (“notice to proceed”)
 Prepare a punchlist/snaglist
 Monitor/conduct tests to verify acceptance of
project
Closeout
 Team is responsible for providing documentation for
the end users
 Shop drawings
 As-built drawings
 Warranties
 Operations manuals

 Final accounting and assessment of project team

performance
 Lessons learned should be documented
 Actual costs and durations should be recorded and be
used to update company records
Expenditure versus Influence!

Rapidly
Major Decreasing Low
Influence Influence Influence
High Large

Low Small
Perform Perform Design and Operate
Project Life Business Pre-Project
Cycle Planning Planning Construction Facility