Construction Management

Tuesday

15.30 – 18.00
 Lecture no.1
• Objectives : To
– Introduce the subject of construction management,
– discuss construction project lifecycle and different
delivery methods,
– discuss the basic principles of management
function
– discuss the conception of a construction project
and its project delivery
 Construction Industry
• essential contributor to the process of
development

• measure the importance of the construction

industry
– Contribution to the Gross Domestic Product
(GDP)
– Contribution to investment
– The amount of manpower employed
 The Type of Construction
• Heavy engineering construction
(dams,tunnels,bridges,highways,airports,urban transit
systems,ports,pipelines,water treatment plants,communication networks)
• Building construction
(schools,universities,hospitals,commercial office
towers,warehouses,theater,light manufacturing plants,government
building,commercial malls,recreation centers)
• Residential construction
(single-family homes,multi-unit townhouses,high rise
apartments,condominium)
• Industrial construction
(Petroleum refinements,petrochemical plants,nuclear power
plants,steel mills,heavy manufacturing plants)
 The Study of Construction
• Construction Technology
– relates to the methods or techniques used to place
the physical materials and elements of construction
at the job site
• Construction Management
– address how the resources available to the manager
can be best applied
 Construction resources
• Manpower
• Machines
• Materials
• Money
• Management/Method
• Safety
• IT
 Construction management
• Involves the timely and efficient application of
the five Ms + S + IT to construct a project
 Project
• Is a temporary endeavor undertaken to create a
unique product or service (PMBOK)
• Temporary:
– every project has a definite beginning and a definite end
• Unique:
– the product or services is different in some distinguishing
way from all similar products or services
 Construction Project Life Cycle
· Concept and feasibility studies;
· Engineering and design,;
· Procurement,
· Construction.
· Start-up and implementation,
· Operation and utilisation.
· Demolition or conversion
Construction Project Life Cycle

Project Engineering
Planning
Need formulation & Design
Process
process Process

Awareness Project concept Project scope

of need formulation definition

Use
Disposal Construction
Management
Process Process
Process

Fulfillment Project completion and Full project

of need acceptance for use description
Enam jasa penting dalam proyek
konstruksi
• Manajemen Proyek:
– Pedoman kegiatan-kegiatan proyek mulai dari perancangan dan
konstruksi hingga penggunaan
• Perancangan:
– Solusi terhadap kebutuhan pemilik proyek dalam bentuk
dokumen-dokumen kontrak yang digunakan sebagai acuan bagi
kontraktor dalam menghitung perkiraan biaya serta pelaksanaan
konstruksi.
• Ikatan Kontrak:
– Pengaturan untuk kontrak-kontrak bagi jasa-jasa yang diperlukan
untuk melaksanakan proyek
Enam jasa penting dalam proyek
konstruksi
• Konstruksi:
– Pekerjaan yang dilakukan oleh pelaksana konstruksi, yang
membangun suatu proyek dengan menggunakan pekerja-pekerja
yang termasuk dalam daftar bayaran mereka.
• Administrasi Kontrak:
– Pelayanan kontrak untuk konstruksi antara pemilik dan pelaksana
konstruksi
• Koordinasi Konstruksi:
– Pengaturan kegiatan-kegiatan konstruksi pada tahap pelaksanaan
konstruksi proyek.
 Key Project Stakeholders
• Owner
• Engineering/designer
• Constructor
 General Contracting (GC)
P e m ilik P r o y e k

( P e r ja n jia n K R p. ( K o n tr a k K o n s t r u k s i)
K o n s u lt a n s i)

* (K o n tra k to r
K o n s u lt a n K o n tra k to r T in g k a t
P e ra n c a n g U ta m a P e rta m a )

R p.

(K o n tra k to r
( K o n t r a k t o r T in g k a t K e d u a ) S u b k o n tra k to r P e la k s a n a
K o n s tr u k s i)
R p.

( K o n tr a k to r T in g k a t K e tig a ) S u b -s u b k o n tra k to r

R p. C a ta ta n :
*
T id a k a d a ik a ta n k e r ja s e c a r a
( K o n tr a k to r T in g k a t K e d u a , la n g s u n g a n ta r a K o n s u lta n P e r a n c a n g
K e tig a d a n K e e m p a t ) S u p lie r d e n g a n K o n tra k to r U ta m a . H u b u n g a n
m e r e k a d ije la s k a n p a d a d o k u m e n
K o n d is i U m u m
 Design-Build (D-B)K o n s u lta n K o n s u lt a n
P e m ilik P r o y e k K P e m ilik P r o y e k K
P e ra n c a n g P e ra n c a n g

R p. R p. ( K o n tr a k K o n s tr u k s i)

K o n tra k to r
( K o n tr a k to r T in g k a t
K o n tra k to r R a n c a n g -B a n g u n
P e rta m a )
R a n c a n g -B a n g u n K A /E (G C -A /E )
(G C )
R p.

R p.
( K o n t r a k t o r T in g k a t ( K o n tr a k t o r P e la k s a n a
S u b k o n tra k to r
A lte r n a tif ik a ta n k o n tr a k K edua) K o n s t r u k s i)
R a n c a n g -B a n g u n

R p.

( K o n tr a k to r T in g k a t K e tig a ) S u b -s u b k o n tra k to r

R p.

( K o n tr a k to r T in g k a t K e d u a ,
K e tig a d a n K e e m p a t ) S u p lie r
 Agency CM (ACM)
Pemilik Proyek

(Perjanjian Konsultansi) K Rp. (Perjanjian

Konsultansi)
* *
Konsultan Konsultan
Perancang MK

Rp.

(Kontraktor tingkat
Kontraktor
pertama)

Rp.

(Kontraktor Tingkat (Kontraktor pelaksana

Subkontraktor
Kedua) konstruksi)

Rp.

(Kontraktor Tingkat
Ketiga) Sub-subkontraktor

Rp.
* Catatan:
Tidak ada ikatan kerja secara
(Kontraktor Tingkat
Suplier langsung antara Konsultan Perancang
Kedua, Ketiga dan
dengan Kontraktor Utama. Hubungan
Keempat)
mereka dijelaskan pada dokumen
Kondisi Umum
 Job of Construction Manager
• To efficiently and economically apply the
required resources to realize a constructed
facility of acceptable quality within time frame
and budgeted cost specified.

“A quality facility on time

and within budget”
 Management level of construction
• Organizational - concerned with
– legal and business structure of a firm
– various functional areas of management
– Portfolio of projects ; gross project attributes:total
cost,duration,profit,cash flow, percent complete
– interaction between head office & field managers
• Project
– breakdown of project for the purpose of time & cost
control (projects activity & project cost account) ; project
definition,drawings,contract,specifications
 Management level of construction
• Operation (and Process)
– concerned with the technology & details of how
construction is performed
– focused on field works
• Task
– concerned with the identification and assignment
of elemental portion of work to field units and
work crews
– Fundamental field action and work units focus ;
basis of work assignment to labor
Management Function
 Planning;
 Organisation;
 Leading; and
 Control.
Management Function
 Planning;  Forecasts - to estimate and predict future conditions
and events
 Organisation;  Objectives - predetermine the results to be
 Leading; and accomplished
 Control.  Programs - to establish the sequence and priority of
action steps to be followed in achieving objectives
 Schedules - to establish a time sequence from
program steps
 Budgets - to allocate resources necessary to
accomplish objectives
 Procedures - to develop and apply standardised
methods of performing specified work
 Policies - to establish and effectively apply
continuing directives to repetitive questions and
problems of significance to the enterprise as a whole
and attaining its objectives
Management Function
 Planning;  Organisation structure - to identify and group the
work to be performed
 Organisation;  Delegation of Responsibility and Authority - to
 Leading; and entrust responsibility and authority to others and
 Control. create accountability for results
 Establishment of Relationships - to create the
conditions necessary for mutually co-operative
efforts of people
Management Function
 Planning;  Decision Making - to reach conclusions and
judgements
 Organisation;  Communication - to create understanding among
 Leading; and people
 Control.  Motivation - to inspire, encourage and impel people
to take required action
 Selection of People - to choose people for positions
in the organisation and for advancement
 Development of People - to help people improve
their knowledge, attitudes and skills
Management Function
 Planning;  Establishment of Performance Standards - to
establish the criteria by which methods and results
 Organisation; will be measured and evaluated
 Leading; and  Measurement of Performance - to record and report
 Control. work in progress and completed
 Evaluation of Performance - to appraise work in
progress and completed
 Correction of Performance - to rectify and improve
the work being done and the results secured.
Project Development Cycle

Need Establi Approval of Preliminary

Conceptual conceptual & final
shed
design design design

Bid period Decision to Bid package

& receipt or Advertise notice
to bidders release the bid completed
proposals

Select Notice to Construction Inspection &

contractor proceed period acceptance of
project
Project Conception
 Addressing a need.
 centres on a corporate structure, public or private, which
is commissioned to service a group need (e.g.
infrastructure for the public, return on investment for
shareholders).
 An idea. "Why don't we do this ?"
 usually involves a small group of individuals with the
position and authority to advance their ideas.
 Arise from an accident, crisis or unforeseen event
 e.g. so-called acts of God, storm and tempest, riot, war,
fire, flood etc.
Project Conception
 Establishing needs:
 feasibility study -
 market analysis for commercial projects
 site location
 availability of resources
 Project Selection
 the availability of resources. These can include:
 financial resources
 the availability of capital through cash, equity, borrowings
 Land
 including its terms of tenure (freehold or leasehold)
 Technology
 access to the world's best practice, state of the art or research and
development facilities
 human resources
 management and technical skills, construction and operations
workforce
 Infrastructure
 transport, utilities, services.
 Project Selection
 Project impact on its immediate and regional
environment, which include but not limited to:
 economy
 the effects of an extraordinary circulation of money to the local,
regional, state and national economies
 community
 the changes in relationships between long term and new inhabitants
of the area relevant to the project
 employment
 the demands on local and imported staff during both the construction
and operation of the project
 environment
 the effects on the ecosystems and balances at and near the project.
 Project Selection
 restraints and barriers which could render a proposed
project prevent it proceeding at all, for example:
 political changes
 both party and policy
 heritage and historical
 preservation of artefacts, structures, sacred sites
 environmental
 eradication of species (fauna and flora), hydrology pattern changes etc.
 completion date
 it may not be possible to execute the project by the appropriate date
 industrial relations
 traditional union coverage, work practices, demarcation disputes.
Project Conception
 Formal need evaluation:
 cost/benefit analysis
 graphical representation of the project & lay out
diagram of facility
 cost estimate based on the conceptual-level
information available

Decision to proceed or not to proceed

Preparing the bid package
 Preliminary & detail design
 drawings:
 graphical or schematic indication of work to accomplished
 specifications
 a verbal or word description of what is to be constructed and to what
level of quality
 final “owner’s” estimate:
 total job cost - mark up
 + 3% accuracy
 to ensure the design produced is within owner’s financial resources
 establish reference to evaluate bid submitted
Preparing the bid package
 Notice to bidders:
 general type & size of the project
 the availability of plans and specification for
review
Bid package
 Proposal form
 General conditions of contract
 Special conditions of contract
 Technical specifications
 Plans and drawings
Construction documents

Bidding
requirement
Project manual
Bidding documents

Contract forms
Contract documents

Contract Contract
conditions modifications

Specs Adenda
Drawings