Construction Management & Engineering

CIEG 467-013

Construction Management & Engineering
CIEG 467-013

Construction Managers must be
both…
…business and technically
oriented

Construction Management & Engineering
CIEG 467-013

Construction Education
• Engineering (civil or architectural)
– Specialization/area of concentration
– Curriculum Elective

Construction Management & Engineering
CIEG 467-013

Construction Management
• Foundation of business and
science courses
• Architectural & engineering
coursework
• Core of Construction Mgt. Courses

Construction Management & Engineering
CIEG 467-013

B.S.C.M. Coursework
Engineering subjects




Strength of Materials
Statics and Structures
Soil Mechanics
Steel and Concrete Design
Surveying

Construction Management & Engineering
CIEG 467-013

B.S.C.M. Coursework
Business Management




Accounting
Economics
Statistics
Financial Mgt.
Contract Law

Construction Management & Engineering
CIEG 467-013

B.S.C.M. Curriculum Course Distribution
Business
15%

Engineering
(incl math &
science)
34%

Architecture
8%
Liberal Arts
13%

Construction
Mgt.
30%

Construction Management & Engineering
CIEG 467-013

Licensing/Certifications
• Professional Engineer’s License issued by state
or local governing board.
• Certified Constructor issued by the American
Institute of Constructors (AIC).
• Certified Construction Manager issued by
Construction Management Association of
America (CMAA)

Construction Management & Engineering
CIEG 467-013

Basic Skills needed by Construction
Managers
– Estimating
– Computer
– Leadership/supervisory
– Communication = writing and oral skills
– Negotiating

Construction Management & Engineering
CIEG 467-013

Construction Management Functions
• Coordination
• Planning & Scheduling
• Purchasing & Expediting
• Supervision
• Cost Control
• Documentation and Reporting

Construction Management & Engineering
CIEG 467-013

Construction Management Functions
• Quality Control/Quality Assurance
• Estimating
• Safety and Risk Management
• Contract Administration
• Claims Analysis/Avoidance

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

Project Life Cycle

Construction Management & Engineering
CIEG 467-013

Life Cycle of a Constructed Facility
1.
2.
3.
4.
5.
6.

Concept and Feasibility
Engineering and Design
Procurement
Construction
Startup and Implementation
Operation or Utilization

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

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 Management & Engineering
CIEG 467-013

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.
Technical innovations are adopted slower.
Success is dependent upon the quality of
its people.
Very custom-oriented
Product can be of mind-boggling size,
cost, and complexity

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

Construction Management & Engineering
CIEG 467-013

“The Blame
Game”

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

Residential

Types
– Single family houses
– Multi family dwellings
– High-rise apartments

30-35 % of the industry

Low capital and technology requirements

Construction Management & Engineering
CIEG 467-013

Residential (continued)

Largely private

Often speculative

Developers = surrogate owners

Designed by architects,
builders/developers

Construction Management & Engineering
CIEG 467-013

Building Construction

Institutional and Commercial Construction
– Schools and universities
– Medical clinics and hospitals
– Recreational facilities and sports
stadiums

Construction Management & Engineering
CIEG 467-013

Building Construction
– Retail stores and shopping centers
– Warehouses and light manufacturing
– Office buildings (single story to sky
scrappers)
– Hotels, convention centers, and theaters

Construction Management & Engineering
CIEG 467-013

Building Construction
• Institutional and Commercial
Construction
– Churches and Synagogues
– Prisons
– Courthouses and other government
buildings

Construction Management & Engineering
CIEG 467-013

Building Construction



35-40 % of construction market
Larger and more complex than
residential
Various owners (mostly private)
Designed by architects and engineers

Construction Management & Engineering
CIEG 467-013

Heavy Construction

Also referred to as “Horizontal Construction”,
“Heavy Civil Construction”, “Heavy
Engineering Construction”, “Infrastructure &
Heavy Construction” and “Heavy/Highway
Construction”.

20-25% of the construction industry

Mostly public financing or large consortium

Heavy Construction





Highway & bridges
Railroads & urban
transit systems
Tunnels and Dams
Airports
Canals
Port & harbor structures

Heavy Construction




Pipelines
Sewer Systems
Water treatment &
distribution systems
Power &
communication
networks
Landfills

Construction Management & Engineering
CIEG 467-013

Heavy Construction

Accounts for 20-25% of the
construction market

Heavy public works projects

Mostly public financing

Owner is a governmental agency or
large consortium

Construction Management & Engineering
CIEG 467-013

Heavy Construction

Mass quantities of basic materials: earth,
rock, steel, timber, and concrete

Constructors need knowledge of engineering
and geology

Engineers and builders are often specialized.

Construction Management & Engineering
CIEG 467-013

Heavy Construction

Greatest impact and manipulation of
land and water

High degree of mechanization

Contracts awarded through
competitive bidding

Construction Management & Engineering
CIEG 467-013

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.

Industrial Construction

Petroleum refineries

Steel mills &
aluminum plants

Chemical
processing plants

Industrial Construction

Fossil fuel & nuclear
power plants

Other heavy
manufacturing
facilities

Construction Management & Engineering
CIEG 467-013

Industrial Construction

Complex mechanical systems, process
piping, and instrumentation

Civil, but also mechanical, chemical, and
electrical engineering disciplines involved

Mostly private ownership (in western
countries)

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

Construction Industry is further subdivided into
sectors or segments by:




Public vs. private ownership/funding
Union labor vs. open shop
Organization and method of project delivery
Type of work: new vs. rehab/retrofit/restoration
Contract type

Construction Management & Engineering
CIEG 467-013

Participants in the Construction Process
1. Owner


Private or public
Conceives the construction project
Increasing level of sophistication

Construction Management & Engineering
CIEG 467-013

Participants in the Construction Process

2. Designer

Architects
• Size of firms ranging form single practitioner to
large integrated firms
• Mostly building and residential construction
Engineers
• Civil, mechanical, structural, electrical,chemical,
environmental, geotechechnical, and
multidiscipline

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

Participants in the Construction Process

5.

Suppliers


6.

Fabricators

7.

Manufactures, distributors, research, promotions
Materials and equipment sales
Equipment Rental
Structural steel, pre-castors, wood products

Labor/Trade Unions

Construction Management & Engineering
CIEG 467-013

Participants in the Construction Process

8.

Government
Federal, State, local, and quasi-government
Owner/client



GSA, DOT’s, School Districts, USACOE

Non-ownership functions






Taxation and regulation
Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA),
FHWA, FAA, EPA, and several others
State: DOL, DEP/DNREC, historic preservation (SHPO)
Local: County/City/Township Building Officials, Planning
Boards, and Zoning Commissions
Quasi-government agencies: development authorities,
bridge and turnpike commissions

Construction Management & Engineering
CIEG 467-013

Participants in the Construction Process

9.

Utility Companies





Electric, communications, water, 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

Construction Management & Engineering
CIEG 467-013

Participants in the Construction Process

10. 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, specifications, and costs

Construction Management & Engineering
CIEG 467-013

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

Construction Management & Engineering
CIEG 467-013

10. Industry Associations
Functions and services









Public relations
Joint industry promotions
Management education
Market development
Apprenticeship training
Legislative
Government relations
Product research

Construction Management & Engineering
CIEG 467-013

Participants in the Construction Process
11. Professional Services





Business/management consultants
Legal council
CPA firms
Surety Companies
Financial Institutions/Lenders
Insurance agents

Construction Management & Engineering
CIEG 467-013

Participants in the Construction Process
12. Adjacent Owners and the Public AtLarge


Existing businesses, institutions, and
residences adjacent to the constructed
facility
Civic organizations and community
groups
Railroads and public lands

Construction Management & Engineering
CIEG 467-013

Project Delivery Organization




Construction by owners forces
Owner-managed construction
Construction by general contractor
Design-build team
CM Contract

Construction Management & Engineering
CIEG 467-013

 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 Management & Engineering
CIEG 467-013

 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

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, many others

Construction Management & Engineering
CIEG 467-013

 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 employees fast-track construction
– Benefits include reduced overall delivery time
and “one-stop shopping” for the owner
– Disadvantages include complexity of evaluating
proposals

Construction Management & Engineering
CIEG 467-013

 CM Contract -- Fee (management services

only) also referred to as “Agency”

– Specialized construction skills through all stages of project
– Provides close coordination between design and
construction
– Eliminates impact of conflicts of interest
– Independent and objective evaluation of costs, schedules,
and performance
– Potential saving in time and cost
– Disadvantages include no risks associated with costs
increase

Construction Management & Engineering
CIEG 467-013

 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 Management & Engineering
CIEG 467-013