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Construction Methods & Management

Construction Managers must be both… …business and technically oriented

Basic Skills needed by Construction Managers
– 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

Electrical. GIS.Additional Skills & Knowledge needed by Construction Engineers • Surveying (GPS. or Environmental disciplines . Chemical. Hydrographic) • Structural Design • CADD/Drafting • Specialization in Mechanical.

Construction Engineering Functions • Preparation and Review of Shop Drawings • Constructibility & Sequencing Studies • Value Engineering • Erection Diagrams and Procedures • Survey & Layout .

Executive Functions • Corporate Management • Strategic Planning • Marketing & Business Development • Public Relations • Labor Relations .

safety. and general financial health.Executive Functions • Ultimately responsible for quality. production. .

Construction training can be valuable to design professionals…… • To enable them to produce practical and efficient designs • Develop needed management skills • Learn scheduling techniques that can be applied to the preconstruction process .

Project Life Cycle .

Life Cycle of a Constructed Facility 1. 5. Concept and Feasibility Engineering and Design Procurement Construction Startup and Implementation Operation or Utilization . 3. 4. 2. 6.

determination. strength. and persistence to control his environment .What is Construction?  Application of art and science  Inherently dangerous  Organized chaos  Mankind using creativity. knowledge.

Construction differs from manufacturing in that: • Not performed in controlled conditions. therefore highly impacted by weather and other environmental conditions Seasonality Each project is unique Remotes sites with various access problems • • • .

Construction differs from manufacturing in that: • • • • Process is not as predictable Difficulty in applying automation High potential for encountering unforeseen conditions Costs can vary according to conditions .

Construction differs from manufacturing in that: • • • • • Difficult to manage and supply utilities and other resources. and complexity . Very custom-oriented Product can be of mind-boggling size. Success is dependent upon the quality of its people. Technical innovations are adopted slower. cost.

Problems Facing Construction Industry: • Highly traditional and fragmented. slow to embrace new technology Restrictive/outdated building codes Labor agreements and craft jurisdictional issues Liability and legal considerations Lack of profit motive or other incentive • • • • .

Problems Facing the Construction Industry: • Government regulation • • Environmental constraints NIMBY syndrome • Global competition .

“The Blame Game” .

000 workers • Annual Volume exceeds $800 billion • Vital to the Nation’s economic health and quality of life .000.Overview of the Construction Industry • 10% of GNP • Employs over 10.

Heavy Construction 4.Industry Divisions 1. Residential Construction 2. (Institutional & Commercial) Building Construction 3. Industrial Construction .

Heavy Construction 4.Overview of the Construction Industry Industry Divisions 1. Industrial Construction . Residential Construction 2. (Institutional & Commercial) Building Construction 3.

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 .

builders/developers .Overview of the Construction Industry Residential (continued) • Largely private • • • Often speculative Developers = surrogate owners Designed by architects.

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. and theaters . convention centers.

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. and concrete • Constructors need knowledge of engineering and geology • Engineers and builders are often specialized . timber. steel.

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 .

chemical. and instrumentation Civil. but also mechanical.Overview of the Construction Industry Industrial Construction • • • Complex mechanical systems. process piping. 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 Construction Industry is further subdivided into sectors or segments by: • • • • • Public vs. rehab/retrofit/restoration Contract type . open shop Organization and method of project delivery Type of work: new vs. private ownership/funding Union labor vs.

Participants in the Construction Process 1. Owner • • • Private or public Conceives the construction project Increasing level of sophistication .

electrical.Participants in the Construction Process 2. geotechechnical. environmental. Designer • Architects • Size of firms ranging form single practitioner to large integrated firms • Mostly building and residential construction Engineers • Civil. mechanical. and multidiscipline • .chemical. structural.

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 • • .

promotions Materials and equipment sales Equipment Rental Structural steel. wood products 6. Suppliers    Manufactures.Participants in the Construction Process 5. Fabricators  Labor/Trade Unions . research. 7. distributors. pre-castors.

Government   Federal. DOT’s. and quasi-government Owner/client  GSA. USACOE  Non-ownership functions  Taxation and regulation  Federal: IRS. NLRB. State. and Zoning Commissions  Quasi-government agencies: development authorities. EPA. historic preservation (SHPO)  Local: County/City/Township Building Officials. USACOE. DOL. Planning Boards. and several others  State: DOL. local. FAA. DEP/DNREC. bridge and turnpike commissions .Participants in the Construction Process 8. OSHA. HUD (FHA). School Districts. FHWA.

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 . communications.Participants in the Construction Process 9. Utility Companies       Electric. water.

and costs    . specifications. 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.Participants in the Construction Process 10.

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 .

Professional Services       Business/management consultants Legal council CPA firms Surety Companies Financial Institutions/Lenders Insurance agents .Participants in the Construction Process 11.

and residences adjacent to the constructed facility Civic organizations and community groups Railroads and public lands   .Participants in the Construction Process 12. Adjacent Owners and the Public AtLarge  Existing businesses. institutions.

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 .

many others .Specialty contractors might include those specializing in one of the following: • Excavation • Steel erection • Concrete – Cast-in-place – Prestressed/Precast • Masonry • Timber/wood framing • Piping/plumbing • • • • • • Clearing and grubbing Blasting/demolition Electrical Painting HVAC Environmental remediation • Many.

 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 “onestop shopping” for the owner – Disadvantages include complexity of evaluating proposals .

schedules. and performance – Potential saving in time and cost – Disadvantages include no risks associated with costs increase . 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.

 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 .