Professional Documents
Culture Documents
Construction Management
by; Abate M.
Compiled by; Abate 2013 E.c
3.1 Construction Project
2
a. Temporary
Every project has a definite beginning and a definite
end. The end is reached when the project’s objectives
have been achieved, or it becomes clear that the project
objectives will not or cannot be met, or the need for the
project no longer exists and a project is terminated.
Temporary doesn’t necessarily mean short in duration:
it is not ongoing effort.
Temporary doesn’t generally apply to the product,
service or result created by the project.
In this stage, project takes the definite shape. All the
technical issues related to the project are carried out.
Engineers come out with the best alternatives available.
Design phase of project is carried out in two phases
Preliminary design
Detailed design
geological,
Structural Mechanical
Architect And
Engineer
Electrical Eng.
CAD Drafting
Software
Mechanical
Architectural Structural
Specifications & Electrical
Drawings Drawings
Drawings
be accomplished
This stage has become a very important stage in
L
ev
el
of
e
f
f
o
rt
Financier(s)
Beneficiary(s) Financial Institutions
Consultant(s) Sub-Consultant(s)
Contractor(s) Supplier(s)
Stakeholders
' in Public
Government(s) The Public
Construction
Projects
Employer(s) Other sectors
The Construction
Other Interest Groups
Industry
Regulatory Bodies
EQUIPMENT:
These days various plants, equipment, tools etc., are used very often in
construction activities. It increases efficiency and economy by replacing
the hard work that can be made by human labor taking much time.
Its initial cost though high, it works for long period of time under adverse
conditions with less manpower than working in its absence which will
result to be economical for long term investment.
Depending on the types and nature of construction, machinery at site
includes batching plant, mixers, trucks, tractors, excavators, dampers,
cranes, vibrators, pumps etc.
OTHER ASSETS:
Physical Infrastructures and Owned Land are assets which can be
collaterals for capital base enhancement and credit facilities and are useful
to develop the scarce financial resources and getting into business access.
SERVICES:
Services such as acquisition of land, provisions of water supply, electric
power, communication systems, etc., are very much necessary in the
construction industry. Without acquiring such services, it is too hard to
implement construction activities successfully. Therefore, well thought
and due consideration shall be given to services and shall be considered
as one of the resources required for civil works projects.
MANAGEMENT:
Management has come to employ a disciplined approach to the use of
available resources. To coordinate these resources and achieve the
required goal, a system shall be devised to plan, organize, execute, and
control, the project. Such system which helps to achieve the necessary
goal is called Construction Management, without which it will be a
catastrophe both in cost and completion time to the project.
Compiled by; Abate M. 2013 E.c
3.5Performance Management
Time Management
37
In construction all projects are time bound. The project time
objective specifies the project completion time. Time delays
results to penalties while early completion might earn
rewards.
There may be many reasons both foreseeable and
unforeseeable, for non-completion of a project time.
Planning is the devising of a workable scheme of operations
to accomplish an established objective when put into action.
Construction planning is a fundamental and challenging
activity in the management and execution of construction
projects.
It involves;
the choice of technology,
the definition of work tasks,
the estimation of the required resources and
durations for individual tasks, and
the identification of any interactions among the different work
tasks.
Critical
Path
The series of activities all of which must finish on time for the whole project to finish on time
Sometimes described as the longest path through a network, hence the shortest project time
Apart from the work plan and schedule for time management,
contractors are required to show their budgetary forecast (cash
flow diagram) indicating the gross and net cash requirements
of projects. Often projects are observed running into
difficulties from short of cash flow.
Projects by nature require to be financed from other financing
securities especially during the early phases of the construction
period until they reach a stage of self-financing date.
Hence for successful performance of projects, one has to
prepare a cash flow diagram and monitor progress during the
contract period.
Given project
5km road project
5month contract time of completion
Budgeted cost of Br. 500M
Scheduled(time and cost)
1km1month100M.Br
Physical progress
At the end of 2nd month 1.5 km
Actual cost 180M.Br
Question
Under spending?/ over spending?
Behind schedule?/ ahead schedule?
Solution
Cost over run=180-150= 30M
BCWS=200M here the schedule is measured by Br.
BCWP=150M
ACWP=180M(Earned Value) from cost statement of the
project(Report)
Variance
SV=BCWP-BCWS=-50M ( he/ she left with 50 birr works)
(schedule variance in terms of money, it could be in MH or
equipment, labor..)
CV=BCWP-ACWP=-30M(negative variance as of monitoring day )
Conclusion
As the SV & CV indicates the project is Overspending
and as well lagging
behind the schedule.
SPI=BCWP/BCWS=150/200=0.75 behind schedule
CPI=BCWP/ACWP=150/180=0.83 cost overrun
B) Design Bid Build (DBB) This is the most practiced type of
delivery system in the construction industry. After project owners did
prepare the basic planning that identifies construction project
programs, they call upon the participation of design and / or
supervision consultants either by tender or by negotiated contracts.
This consultant will carry out the design together with the necessary
tender documents which will be the bases for tendering to select
contractors. These process is called Design - Bid - Build and hence the
name for such delivery system. Some of the main criticisms of the
traditional DBB method of project delivery are lack of innovation,
delayed completion periods, and cost overruns Since, in the DBB
method, the client bears most of the risks of the design and the
construction aspects.
Thank you!!