CONSTRUCTION MANAGEMENT (CM)  COMMUNICATION SKILLS

o interact with a range of people, including the public,

 a professional service for project owners clients, and tradespeople, so they must have good
 led by a construction manager interpersonal skills
 is a professional management practice consisting of an array of  CONTRACT MANAGEMENT SKILLS
services applied to construction projects and programs through the o persuading, COMPROMISING, and making mutually
planning, design, construction and post construction phases for the beneficial, binding agreements.
PURPOSE of achieving project objectives including the o may need to NEGOTIATE contracts
management of quality, cost, time, and scope.  HEALTH AND SAFETY KNOWLEDGE
 is the process of planning, coordinating, controlling, Organizing, o must be aware of worksite health and safety issues
scheduling, mobilizing, directing equipment, material, and
and understand relevant legislation and regulations.
personnel, and overseeing construction projects.
o need to know best practices to minimize risks
PURPOSE  PROJECT MANAGEMENT SKILLS
o requires coordinating a range of activities involving
 TO CONTROL the quality of a project’s primary constraints: different people and completing milestones on time and
o SCOPE within budget
 tasks required to fulfill the project’s goals
o TIME MAIN PARTIES INVOLVED
 schedule for the project to reach completion
 OWNER
o COST
o the one commissioning the work
 financial constraints of a project, also known
 ARCHITECT or ENGINEER
as the project budget which comprises all of
o responsible for the design of the project
the financial resources needed to complete
the project on time.  GENERAL CONTRACTOR
o the person overseeing the day-to-day operations of the
ULTIMATE GOAL project

 Full satisfaction of the client’s demands for a viable project both in KEY ELEMENTS
terms of functionality and budget.
 CONSTRUCTION DELIVERY METHODS
WHY NEEDED? o a system used by an agency or owner for organizing and
financing design, construction, operations, and
 Buildings and their construction have become increasingly maintenance services
COMPLEX. New INNOVATIONS in methods, designs and  CONSTRUCTION CONTRACTS
materials mean that the management of construction projects o legally binding documents that are signed by the
REQUIRES PROFESSIONALS with the KNOWLEDGE AND winning bidder and the owner and outline the scope of
SKILLS TO DELIVER ON TIME AND ON BUDGET in a work.
demanding and rapidly changing industry o basis for payment
ROLE OF CM  CONSTRUCTION BIDDING PROCESS
o process of submitting a tender by the contractor to the
 Responsible: client as a proposal to manage
o for PLANNING, COORDINATING, BUDGETING,  PROJECT LIFE CYCLE
and SUPERVISING projects from the beginning to the o sequence of phases through which a project progresses.
end. o PROJECT INITIATION
o for DEVELOPING A PROGRAMME OF WORK  first step in starting a new project
o for facilitating the PROCUREMENT of materials and  Define project goals
subcontractors.  feasibility study is done
o delegate the task of OBTAINING LICENSES AND  Create a business case
PERMITS o PROJECT PLANNING
 In charge of the OVERALL PLANNING and CONTROL of a  the team identifies all of the work to be done
project.  every minor detail of the project process is
 IDENTIFY RISKS AND ISSUES planned
 TRACK PROGRESS OF THE CONSTRUCTION  Define scope
 Set a budget baseline
 Accountable for MONITORING COSTS AND DELIVERING
o PROJECT EXECUTION
THE PROJECT ON BUDGET
 when the work gets done
CORE RESPONSIBILITIES  real job of executing the plans made on
paper.
 COST MANAGEMENT: Maintain awareness of all costs  Risk assessment before executing a plan is
associated with a project; necessary
 CONTRACT ADMINISTRATION: Create contracts for o MONITORING AND CONTROL PHASE
subcontractors and suppliers;  gives a clear view of the project's progress
 HEALTH AND SAFETY MANAGEMENT: Ensure everyone  evident from the fact that even a slight
on-site follows health and safety regulations; mistake or error at a construction site can be
 QUALITY MANAGEMENT: Deliver projects that meet clients' expensive.
specifications; ensure all work complies with quality standards; o PROJECT CLOSURE
 TIME MANAGEMENT  to confirm completion of project
deliverables to the satisfaction of the project
SKILLS owner
 involves a punch list
 ANALYTICAL AND CRITICAL THINKING SKILLS  Resources are demobilized, rentals are
o must interpret designs, plans, and technical drawings. returned
o must understand complex contracts and interpret
building codes and regulations. PROJECT DELIVERY SYSTEMS
o translate all this information into easy-to-follow
instructions for on-site workers.  system used by an agency or owner for organizing and financing
 MOTIVATIONAL SKILLS design, construction, operations, and maintenance services
o must ensure their teams meet deadlines, stay within DELIVERY METHODS
budget, and produce quality work.
o must motivate team members with guidance,  DESIGN-BID-BUILD (DESIGN-TENDER-BUILD)
feedback, and recognition, as well as resolve conflicts o known as traditional building,
and keep the team focused on its goals. o probably the most used method
 ATTENTION TO DETAIL o three phases:
o responsible for ensuring the quality of work on site is  design,
up to standard with local building codes and regulation.
  owner contracts with a design  MULTIPLE AWARD TASK ORDER CONTRACT
organization to perform o Often found in military or government construction
preliminary planning, work
 bid, o long-standing contracts for multiple projects
 owner enters into a contract with
the successful contractor CONSTRUCTION CONTRACT
 build
 DESIGN-BUILD  are legally binding documents that are signed by the winning
o owner executes a single contract with an organization bidder and the owner and outline the scope of work, risks, duties,
that becomes responsible for both the design and the and legal rights for both of both parties
construction
Payment Methods
o Reduces the timeline
o fosters better communication  LUMP SUM /FIXED PRICE CONTRACT
o Benefits: o agree on the overall cost of the construction project
 SINGULAR RESPONSIBILITY. There is o must include all DIRECT COSTS of labor, materials,
a single point of responsibility. equipment and subcontractors, as well as such
 QUALITY. high-quality and proper INDIRECT COSTS as field supervision, field office,
performance. equipment maintenance and the like, plus general
 COST SAVINGS. The single entity works company OVERHEAD, plus PROFIT
as a team to evaluate alternative methods o A
and materials efficiently and accurately  Total cost is known before construction
 TIME SAVINGS. Design and construction  Lack of a need to monitor
can be overlapped o D
 REDUCED ADMINISTRATIVE  owner bears the RISK of poor quality
BURDEN. little investment in coordinating  high cost and long time required for
and arbitrating between the designer and contractors to prepare tenders
contractor  Flexibility is limited
 EARLY KNOWLEDGE OF FIRM
 COST PLUS
COSTS. responsible for both design and
o payment for the contractor including the total cost of
cost estimates
the project as well as a fixed fee or percentage of the
 RISK MANAGEMENT. Cost, schedule,
total cost.
and quality can be clearly defined.
o a fee that covers profit and non‐reimbursable overhead
 CONSTRUCTION MANAGER
costs
o engage a construction manager to provide professional
o beneficial to the contractor since any additional costs
construction management services.
will be paid for
o ACTS AS AN ADVISOR TO THE OWNER
o PERCENTAGE OF COSTS
o acts as an extension of the owner’s staff and assumes
 fee is an agreed‐upon percentage of the
little risk
‘costs’
 CONSTRUCTION MANAGER AT RISK o FIXED FEE
o OCCUPIES A CONTRACTUAL POSITION between
 fee does not depend on the contractor’s
the owner and the execution contractors. costs.
o replaces the general contractor in holding the various
 GUARANTEED MAXIMUM PRICE
trade contracts. o same as the cost-plus-fee contract
o construction manager (CM) is hired by the owner to
o although there is a set price that the overall cost and fee
oversee the project.
do not go above.
 PROJECT MANAGER
o Sets a maximum price
o owner decides to turn the entire project over to an
o Sometimes called a construction manager at risk
independent manager.
contract
 DOCUMENT AND CONSTRUCT
 TIME AND MATERIALS
o a variation of the design–build arrangement,
o Often used on small projects
o the design consultant’s contract with the owner is
o MATERIALS are paid at their actual cost
transferred to the contractor
o LABOR AND EQUIPMENT inputs are reimbursed at
o contractor then becomes responsible to the owner for
pre‐agreed rates
completion of design, as well as construction,
 MEASURE AND VALUE
 SEPARATE PRIME CONTRACTS
o used when the cost cannot be determined ahead of time
o THE OWNER CONTRACTS DIRECTLY WITH
o owner provides materials with a specific unit price
INDIVIDUAL SPECIALTY CONTRACTORS
o owner pays the contractor for the measured quality
o THERE IS NO SINGLE GENERAL CONTRACTOR
o determines the amount the contractor will be paid as the
 TURNKEY
project proceeds
o owner and contractor agree on a fixed contract sum
o Contractors provide tenders based on estimated
o contractor will take responsibility for the entire project
quantities provided by the owner
o a construction organization that usually enters into a
contract with the owner
 BUILD–OWN–OPERATE–TRANSFER
o involving the private sector in the development of the
public infrastructure.
o private sector to finance, design, build,
o hen transfer the asset to the government free of charge
 JOINT VENTURE
o voluntary association of two or more parties
o formed between construction firms or between design
firms and construction firms;
 FORCE ACCOUNT
o project owner acts as the prime contractor and carries
out the work with its own forces
o usually confined to relatively small, uncomplicated
projects
 PHASED CONSTRUCTION
o construction does not begin until the end of the
tendering and contractor selection efforts
 JOB ORDER CONTRACTING
o Works at completing a number of predefined
construction tasks
o used in small-to-medium construction projects