CONSTRUCTION PLANNING

AND RESOURCE
MANAGEMENT

 COURSE CODE BCT 325

 COURSE CREDIT HOURS 3

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Course content
 Chapter I Resource management
 Importance resource management in CPs
 types of construction & its resource
 Chapter II Material management
 Material procurement and delivery
 Inventory Control
 Cost Tradeoff in Material Management
 Construction material resource planning
 Chapter III Human resource planning
 Advantage of humane resource
 Human resource planning ( office, field supervision, labor and sub
contracting)
 Resource leveling
ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 Chapter IV Construction equipment’s & plant manag’t
 types of construction equipment's
 Equipment costs, life and replacement analysis( ownership cost,
operation cost, overhead cost, & profit)
 Depreciation cost(SLM, SOY, & DDM)
 ChapterV Construction Planning and Scheduling
 Construction planning
 Advantage of planning (before the construction start, during
the construction stage, after the project completion)
 Construction Planning – Steps
 Construction scheduling
 Schedule updating
 Bar charts,
 CPM
 PERT and
 Computer Software's:
 Primavera,
ETU, Construction Management, Lecture
 MS Project, etc. Notes, June 2021,Teddy A
 Chapter VII Construction time management /Project time-cost trade-off
 Objective Time-Cost Trade-Off
 Activity Time-Cost Relationship and Project Time-Cost
Relationship
 Shortening Project Duration

Course evaluation method:

I. Project work & continuous assessment 40%
II. Midterm exam 20%
III. Final exam 40%

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Reference
 Fundamentals of Construction Management
 Building Construction: Project Management,
Construction Administration, Drawings, Specs, Detailing
Tips, Schedules, Checklists, and Secrets Others Don’t
Tell You: Architectural Practice Simplified, by Gang Chen
 Construction Project Management, by Frederick Gould
& Nancy Joyce
 Principles & Practices of Commercial Construction, by
Cameron K. Andres P.E. Retired, Ronald C. Smith & W.
Ronald Woods
 Microsoft Project 2013 Step by Step by Carl Chatfield
&Timothy Johnson
ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 CHAPTER 1
RESOURCE MANAGEMENT
Definition of Resource Management:
 Is the efficient and effective development of an organization's
resources when they are needed. Such resources may include
financial resources, inventory, human skills, production resources,
or information technology.

 Is a key element to activate resource estimating and project human

resource management. Both are essential components of a
comprehensive project management plan to execute and monitor a
project successfully.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
1.1. Importance of Resources management in
Construction Projects

 Improve Profits and Performance.

 Avoid Personnel Mistakes,
 Increased productivity, due to the availability of the right
materials prior to work
 Avoidance of delays, due to the ability to plan the work activities
according to the availability of materials.
 Reduction in the cost of materials, this is due to reduction in
waste caused by manual and inefficient materials management
and controls.
ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 Cont’d
 Reducing the overall costs of materials
 Better handling of materials
 Reduction in duplicated orders
 Materials will be on site when needed and in the
quantities required
 Improvements in labor productivity
 Improvements in project schedule
 Better field material control
 Better relations with suppliers
 Reduce storage of materials on site.
 Generally leading to assure quality and quality
assurance.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
What is Quality?

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Which one is Quality?

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
What does the word “quality” mean to
you?
 Think about your past experiences staying
at various hotels. Did you stay at a
“quality” hotel? What about the
experience made it a “quality” experience
for you?

 Think about a product you bought. How

can you define its “quality”?

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 What is quality
 Cconformance to specifications (British Defense Industries Quality Assurance
Panel)
 Cconformance to requirements (Philip Crosby)

 Fitness for purpose or use (Juran)

 A predictable degree of uniformity and dependability, at low cost and suited to
the market (Edward Deming)

 Ssynonymous with customer needs and expectations (R J Mortiboys)

 Mmeeting the (stated) requirements of the customer- now and in the future
(Mike Robinson)

 The total composite product and service characteristics of marketing,

engineering, manufacturing and maintenance through which the product and
service in use will meet the expectations by the customer (Armand
Feigenbaum)

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Now which one do you Prefer?

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Meaning of Quality
Webster’s Dictionary
 degree of excellence of a thing
American Society for Quality
 totality of features and characteristics
that satisfy needs
Consumer’s and Producer’s Perspective

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Dimensions of Quality of product
1. Performance:
◦ Will the product/service do the intended
job?
2. Reliability:
◦ How often does the product/service fail?
3. Durability:
◦ How long does the product/service last?
4. Serviceability:
◦ How easy to repair the product / to solve
the problems in service?
ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 Dimensions of Quality of product
5. Aesthetics:
◦ What does the product/service look/smell/sound/feel like?
6. Features:
◦ What does the product do/ service give?
7. Perceived Quality:
◦ What is the reputation of the company or its products/services?
8. Conformance to Standards:
◦ Is the product/service made exactly as the designer/standard
intended?
9. Safety
◦ assurance that customer will not suffer injury or harm from a
product; an especially important consideration for automobiles

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Dimensions of Quality: Service
 Time and Timeliness
How long must a customer wait for service, and is it completed on time?
 Is an overnight package delivered overnight?
Completeness:
 Is everything customer asked for provided?
 Is a mail order from a catalogue company complete when delivered?

Courtesy:
 How are customers treated by employees?
 Are catalogue phone operators nice and are their voices pleasant?
Consistency
 Is the same level of service provided to each customer each time?
 Is your newspaper delivered on time every morning?

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Dimensions of Quality: Service

 Accessibility and convenience

 How easy is it to obtain service?
 Does a service representative answer you calls quickly?
 Accuracy
 Is the service performed right every time?
 Is your bank or credit card statement correct every month?
Responsiveness
 How well does the company react to unusual situations?
 How well is a telephone operator able to respond to a
customer’s questions?

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Meaning of Quality: On Two Perspectives

Consumer’s
&
Producer’s Perspective

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Meaning of Quality: Producer’s Perspective

Quality of Conformance
Making sure a product or service is produced
according to design
if new tires do not conform to specifications,
they wobble
if a hotel room is not clean when a guest checks
in, the hotel is not functioning according to
specifications of its design

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Meaning of Quality: Consumer’s
Perspective

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Meaning of Quality: Consumer’s
Perspective

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
Meaning of Quality: A Final Perspective
Consumer’s and producer’s
perspectives depend on each other
 Consumer’s perspective: PRICE
 Producer’s perspective: COST
 Consumer’s view must dominate

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
1.2 Types of Construction and its resources
1.2.1. Construction Industry Category
 Construction Industry can be categorized into
three major sectors:
i. Transport and Communication Sector - Road,
Railway, Airway, and Telecommunication related
physical works;
ii. Water and Energy Works – Hydropower
development, transmission lines, wind power,
irrigation projects; and
iii. Buildings and Other Physical Infrastructures.
 CI is among the leading industry in producing
employment and contribute to the over all
national development.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Cont’d
Construction Industry Category

Transportation Infrastructure
The Construction Energy supply
Industry

Urban development Water supply

ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 1.2.2. Construction resources
 Any construction project ( given scope of work) can not
accomplish out of the construction resource.
Construction resources
 Materials
 Peoples
 Equipment's, and
 Time
 If the project plan and schedule are to be achieved,
it is necessary to assure that required material,
labor, and equipment will be available when
needed in the require quantities.
ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 Chapter - 2
Materials Management
Definition: Different researchers provide different definitions
for material management. Namely:
 Materials management can deal with planning and building
design for the movement of materials, or with logistics that
deal with the tangible components of a supply chain.
Specifically, this covers the acquisition of spare parts and
replacements, quality control of purchasing and ordering
such parts, and the standards involved in ordering, shipping,
and warehousing the said parts.
 material management is concerned with the planning,
identification, procuring, storage, receiving and distribution
of materials. The purpose of material management is to
assure that the right materials are in the right place, in the
right quantities when needed. The responsibility of one
department.
ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 Cont’d
 material management as the process to provide the right
materials at the right place at the right time in order to
maintain a desired level of production at minimum cost.
 material management as a concept concerned with the
management of materials until the materials have been used
and converted into the final product. Activities include
cooperation with designers, purchasing, receiving, storage,
quality control, inventory control, and material control.

 Material management involves the control of the flow of

goods in a firm. It is the combination of purchasing with
production, distribution,
marketing and finance.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 cont’d

Note: All the researchers came to conclude the material

management, and have to:
From the right source
At the right time
With the right price and
The right quantity.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Cont’d
 Materials represent a major expense in construction, so
minimizing procurement or purchase costs presents
important opportunities for reducing costs.
 First, if materials are purchased early, capital may be tied
up and interest charges incurred on the excess inventory
of materials. Even worse, materials may deteriorate
during storage or be stolen unless special care is taken.
 Second, delays and extra expenses may be incurred if
materials required for particular activities are not
available.
 Accordingly, insuring a timely flow of material is an
important concern of project managers.
 Materials management is not just a concern during the
monitoring stage in which construction is taking place.
 Decisions about material procurement may also be
required during the initial planning and scheduling stages.
ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 Cont’d
Sufficient time for obtaining the necessary materials must be
allowed. In some cases, more expensive suppliers or
shippers may be employed to save time.

2.1. Material Procurement and Delivery

 The main sources of information for feedback and
control of material procurement are requisitions, bids and
quotations, purchase orders and subcontracts, shipping
and receiving documents, and invoices.
 For projects involving the large scale use of critical
resources, the owner may initiate the procurement
procedure even before the selection of a constructor in
order to avoid shortages and delays.
 Under ordinary circumstances, the constructor will handle
the procurement to shop for materials with the best
price/performance characteristics specified by the
designer. ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 Cont’d
 Some overlapping and re-handling in the procurement
process is unavoidable, but it should be minimized to
insure timely delivery of the materials in good condition.
 The materials for delivery to and from a construction site
may be broadly classified as:
 Bulk materials,
 Standard off-the-shelf materials, and
 Fabricated members or units.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Cont’d
 Bulk materials refer to materials in their natural or semi-
processed state, such as earthwork to be excavated, wet
concrete mix, etc. which are usually encountered in large
quantities in construction.
 Standard piping and valves are typical examples of
standard off-the-shelf materials which are used
extensively in construction projects. Since standard off-
the-shelf materials can easily be stockpiled, the delivery
process is relatively simple.
 Fabricated members such as steel beams and columns
for buildings are pre-processed in a shop to simplify the
field erection procedures.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 2.2 Inventory Control

 The general objective of inventory control is to minimize

the total cost of keeping the inventory while making
tradeoffs among the major categories of costs which
include:
 Purchase costs,
 Order costs,
 Holding costs, and
 Unavailable costs.
 These cost categories are interrelated since reducing cost
in one category may increase cost in others.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Cont’d
A. Purchase Costs
 The purchase cost of an item is the unit purchase price
from an external source including transportation and
freight costs.
 For construction materials, it is common to receive
discounts for bulk purchases, so the unit purchase cost
declines as quantity increases.
 Because of this, organizations may consolidate small
orders from a number of different projects to capture such
bulk discounts, in some cases, this is a basic saving to be
derived from a central purchasing office.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Cont’d
B. Order Costs
 The order cost reflects the administrative expense of
issuing a purchase order to an outside supplier.
 Order costs are usually only a small portion of total costs
for material management in construction projects,
although ordering may require substantial time.

C. Holding Costs
 The holding costs or carrying costs are primarily the
result of capital costs, handling, storage, obsolescence,
shrinkage and deterioration.
 Capital cost results from the opportunity cost or financial
expense of capital tied up in inventory.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Cont’d
 Handling and storage represent the movement and
protection charges incurred for materials.
 Storage costs also include the disruption caused to other
project activities by large inventories of materials that get
in the way.
 Obsolescence is the risk that an item will lose value
because of changes in specifications.
 Shrinkage is the decrease in inventory over time due to
theft or loss.
 Deterioration reflects a change in material quality due to
age or environmental degradation.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Cont’d
D. Unavailability cost
 The unavailability cost is incurred when a desired
material is not available at the desired time.
 In manufacturing industries, this cost is often called the
stock out or depletion cost.
 Shortages may delay work, thereby wasting labor
resources or delaying the completion of the entire project.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
2.3. Cost Tradeoff in Material Management

 To illustrate the type of trade-offs encountered in

materials management, suppose that a particular item is to
be ordered for a project. The amount of time required for
processing the order and shipping the item is uncertain.

 Consequently, the project manager must decide how

much lead time to provide in ordering the item.

 Ordering early and thereby providing a long lead time

will increase the chance that the item is available when
needed but it increases the cost of inventory and chance
of spoilage on site.

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 Cont’d
2.4. Material management steps

Sequence Contribution action

1. Requisition Drawings, specifications, Material bills, Terms and
conditions
2-Bids Approved bidders list, Pre qualification of bidders, Bid
evaluations
3-P.O. (Purchase Order) Bid clarification, Notice of award
4-Expediting Vender data, Manufacturer inspection
Delivery

5-Transport Carrier and route, Ownership en route to and Customize

6-Receiving Inspection and acceptance, Receiving report, Storage

7-Inventory Dispersal (i.e. material handling), Inventory level

ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
Material management in construction

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
 2.5. Construction material resource planning
Ensuring that the material resource for construction projects
arrive on time involves these important planning areas:
 Long delivery materials ( longer than 10 months to deliver)
 Special materials ( need special treatment e.g. welding,
bending, casting, and testing)
 Common materials in short supply (ordinary items e.g.
steel, concrete & reinforcing bars)
 Service and system requirement (schedule, accounting,
cost controlling, administrative system should on time)
 Transportation system (usually involved in large
construction projects either in site location or in purchasing
sources and any of that type of project will involve special
loading, transportation or receiving facilities )
. ETU, Construction Management, Lecture
Notes, June 2021,Teddy A
 Cont’d
 It’s very important that the CM make an early review of
the project physical resources to give those item on critical
path special attention

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A
THANK YOU!

ETU, Construction Management, Lecture

Notes, June 2021,Teddy A