SRM INSTITUTE OF SCIENCE AND TECHNOLOGY

DEPARTMENT OF CIVIL ENGINEERING

COLLEGE OF ENGINEERING AND TECHNOLOGY
KATTANKULATHUR

B.Tech – Civil Engineering

3rd Year – 6th Semester
Course Code Course Title L T P C
CONSTRUCTION ENGINEERING AND
18CEC304T 2 1 0 3
MANAGEMENT
 UNIT 1 - Topics
Basics of Construction- Unique features of construction
Construction projects types and features, Phases of a project
Project Life cycle
Feasibility study - preliminary analysis - market, technical,
financial,
Economic and ecological - detailed market and demand analysis-
detailed technical analysis

Construction project planning and competency skills

Time value of money, NPV
Stages of project planning: pre-tender planning
Contracts and Types
Pre-construction planning,
Detailed construction planning
Agencies involved and their methods of execution Important Terminologies: Delays, penalties and liquidated
damages; Force Majeure, Suspension and Termination
Process of development of plans and schedules

Role of client and contractor Bidding Process

Basics of Construction
As the name suggest two words : Construction Engineering & Construction
Management, which are co-related with each other.

In common it meant that we have to execute the plan of construction by means
of various management techniques.

Planning is a general term that sets a clear road map that should be followed to
reach a destination.
Project & Management
Objectives
 Completing the work within specified time and budget
 Evolving a reputation for high quality workmanship
 Providing safe working conditions for staff and workers
 Taking sound decisions at lowest practical management level through delegation of authority
 Motivating people to give their best
 Creating an organization that works as a team
Functions
Deciding in advance what is to be done, how and in what order it is to be done. It involves :
 Crystallizing objectives
 Collecting and synthesizing information
 Developing alternatives within specified constraints
 Comparing alternatives in terms of objective feasibility and consequences
 Selecting optimum course of action
 Establishing policies, methods, systems, standards and budgets for objectives
Organizing
 Dividing the work into component activities
 Designing job structures
 Defining targets and responsibilities
 Allocating resources
 Delegating specific tasks to individuals
 Establishing organizational chart for better coordination
Coordinating
 Bringing together and coordinating the work of various departments
 Arranging regular meeting of departments
Procuring
 Providing right quality resources at right time
 Preparing resource procurement schedules
 Developing specifications for required resources
 Deciding appropriate source of procurement
 Budgeting resources and arranging approvals and purchases
 Preventing wastage at site
Directing
 Providing effective leadership
 Motivating participants behavior
 Communicating instructions and orders
 Providing suitable climate for subordinate’s development
Controlling
 Specifying the factors to be controlled
 Monitoring the performance in terms of progress, quality and cost
 Comparing actual and planned performance
 Analysis of shortfalls and implementation of suitable remedial measures
 Quick and accurate flow of information
The characteristics of a construction project
The project should have a specified target.
The project should be unique and cannot be replicated with the same task and resources giving
the same results.
The construction project should satisfy the owners requirement and expectations from the project.
The construction project should not be a routine work, although there are some aspects that are
routine.
The construction project shall consists of a number of associated activities contributing to the
project as a whole.
The time limit for completion of project shall be defined.
The Construction project is complex and it involves a number of individuals from different
departments. So, right coordination shall be setup within departments.
The project manager must be flexible to accommodate any change that might occur during the
project.
There are factors of uncertainty such as the performance of individuals, how their skills adapt
to unfamiliar work, and other unknown external influences.
The total cost of construction project shall be defined and project shall be completed within
the given budget.
The project should provide unique opportunities to acquire new skills.
The project gives impetus to the project manager to adapt to working under changing
circumstances, as the nature of the project is change.
There are risks with each step of the project, and the project manager should manage those
risks to reach the project goal.
Types of Construction Projects
There are different types of construction projects:
• Residential
• Building
• Institutional and commercial
• Industrial
• Specialized industrial construction
• Highway construction
• Heavy construction
Project Life Cycle
 It describes all the activates which are involved from the start of the business
to successful completion
 It explains a series and phase of project completion
 The project life cycle consists of four phases, initiation, planning, execution
(including monitoring and controlling) and evaluation.
Stages in PLC
Initiation phase begins by defining the scope, purpose, objectives, resources,
deliverables, timescales and structure of the project. The next step is to develop
a Business Case (Feasibility study, Terms of Reference, project team)
Project Plan which the project manager will refer throughout the project to
monitor and control time, cost and quality. (Resource Plan Financial Plan,
Quality Plan Risk Plan, Acceptance Plan)
Project Execution phase the project team produces the deliverables while the
project manager monitors and controls the project delivery by undertaking
(Time Mgt., Cost Mgt, Quality Mgt, Change Mgt, Risk, Communication
Management)
Evaluation (also known as a Post-Implementation Review) should be carried out
to determine the project's overall success and find out whether the benefits
stated in the original Business Case were actually realised. Any lessons learned
should be documented for future projects.
WHAT IS CONSTRUCTION
PLANNING
Construction planning is the first stage of construction management, the discipline of taking a
construction project from conception to completion.
It includes components such as
Scheduling
Organising
Staffing
Directing
Monitoring
PLANNING PROCESS AND ITS TYPES
Define the scope of work, method statement, and sequence of work.
Generate the work breakdown structure (WBS) to produce a complete list of activities.
Develop the organization breakdown structure (OBS) and link it with work breakdown structure
identify responsibilities.
Determine the relationship between activities.
Estimate activities time duration, cost expenditure, and resource requirement.
Develop the project network.
Strategic Planning
This determines sets and articulates project objectives.
It answers the big questions concerning a project’s mission, how it will achieve this mission,
and how these objectives align with the project sponsor’s or owner’s larger strategy.
In short, strategic planning is the big-picture analysis that the project sponsor carries out.
Operational Planning
This investigates into the details of how the project will meet its strategic objectives — if it can
meet them at all.

Construction teams evaluate whether they have the resources they need to meet the strategic
objectives, identify any shortfalls, and seek the sponsor’s approval to cover those shortfalls.
Site Planning
This process analyzes the building site to see how natural conditions might affect the project.
For example, space constraints, soil stability, climate, light, accessibility, geography, wildlife,
and proximity to rivers or lakes can all affect a construction project.
Site planning ensures that a project plan will work in the field.
Financial Planning
A project’s financial plan relates closely to its resource plan.
A financial plan details the costs to incur in the resource plan and accounts for administration
and overhead.
It also includes contingency reserves for unexpected events that drive up project costs.
The financial plan can map expenditure over the course of the project so that the project
manager and sponsors know when they require money
Resource Planning
This process details the materials, labor, and equipment that you will use in the project,
complete with quantities.
The resource plan is an important document for determining costs and budgets.
Labor projections are a challenging aspect of resource planning.
Making up for a labor shortfall is more difficult than coping with an equipment or resource
shortfall.
Rapid fluctuations in the size of the labor force are a function of poor management
Quality Planning
A quality plan details standards for project deliverables and is a central part of the dilemma in
contractor accountability.
The quality plan also describes the processes by which you will maintain quality as well as what
steps you will take if the quality of deliverables do not meet standards.
It addresses who on the project team is in charge of quality and how you will measure and
communicate quality
Risk Planning
Construction projects face a wide range of risks, from fluctuating prices of raw materials to
changes in laws, fire, shortage of qualified workers, and natural disasters.
The risk planning involves the risks that a project might be susceptible to and discusses what
can be done to eliminate, mitigate, or tackle the risks deemed significant by risk analysis.
It also lays out how the team will monitor risks and respond if anything unfortunately happens
Communication Planning
It addresses how to convey information (through email, paper documents, meetings, etc.),
defines your audience, indicates frequency, and defines who is responsible for handling the
information
An adequate information flow is critical for building and maintaining trust, ensuring
transparency, and keeping everyone aligned.
The information you communicate will vary with the audience.
With field crew, you would share operational updates.
With project sponsors, you are more likely to discuss high-level information regarding the
project’s progress.
Scheduling
This lays out the operational plan on a projected timescale, including the anticipated
completion date.
In small type of planning does not involve highly detailed scheduling of every project task (that
is a separate activity that usually follows the planning phase).
On large projects, specialist schedulers draw up detailed schedules.
The roles and responsibilities of
contractors
The roles and responsibilities of contractors manifest themselves in various aspects of the project
for instance project planning, management, monitoring, construction site safety, and legal issues.
The contractor also appoint subcontractor, who have special expertise, to execute certain parts
of the project that cannot be constructed by the contractor.
Subcontractors involve in construction processes based on services that they provide in the
course of a construction project.
A contractor is a person or an organization hired by the client to complete the project.
In summary, the roles and responsibilities of contractors have many different levels since they
carry out broad range of tasks and manage numerous individuals.
Project Planning Responsibilities

Plan important project development and implementation in advance.

Determination and estimation of various issues in the project such as needed materials,
equipment.
Anticipation of any potential modification in the project.
Making sure that health and safety specifications are followed.
Practicing excellent communication between all parties involved in the construction such as
client and subcontractors.
Determine legal and regulatory requirements.
Project Management

Manage the budget for the completion of construction activities.

Main contractor is responsible to find and hire right subcontractors and individuals to complete
the job.
Main contractor with cooperation of subcontractors need to manage equipment, materials,
and other services required for smooth flow of the project.
Manage generated waste
Submit bills based on terms of contract documents.
Project Monitoring

Monitor project in terms of time schedule, safety, work quality, and other project-related
details as specified in the project contract.
Review, modify, and update the project programme dependent on latest changes and
feedback.
Practice economic construction techniques
Monitoring safety related issues.
Legal and Regulatory Responsibilities

Contractor is responsible for building permits application

Ensure that the project is in compliance with required legal and regulatory issues
Making sure the project is in compliance with all the necessary legal and regulatory issues.
Health and Safety Responsibilities

Guarantee safety policy to ensure health and safety in the workplace.

This may involve risk management strategies, emergency response system, and other
preventive means for construction site safety.
Make sure that all individual at construction site utilize safety equipment.
Provide safety awareness to workers.
The roles and responsibilities of Client
Understand the challenges that they and the project are likely to face.
Communicate and interact effectively with key stakeholders and professionals within the industry.
Understand in direct terms where they can have a positive impact on the project.
Put in place a client-side due carefulness process.
Reduce their institutional risk and the risk of project failure.
Discover how their standard models are able to exist and even transfer to a common client-side
procedure for managing a construction project.
FEASIBILITY STUDY
Feasibility study is related to analyze the viability of the identified project to support decision
making of investment.

As its name implies, it is a study to decide whether the identified project is attractive enough to
go for implementation

The study needs inputs from many professional disciplines for various areas of the study
Feasibility Analysis: A Schematic Diagram
Generation of ideas

Initial Screening

Is the Idea Prima Facie Promising?

No
Yes Terminate
Plan Feasibility Analysis

Conduct Conduct
Market Analysis Technical Analysis

Conduct Financial
Analysis

Conduct Economic and Ecological analysis

Is the project Worthwhile? No

Yes Terminate
Prepare Funding Proposal
Why Feasibility Study
-To find if there is adequate demand for the project’s output.
To find if there is availability of suitable technology and inputs
To find the best options
To answer if the project meets the environmental regulations and
priority of the nations
To examine the project’s financial and economic viability
Areas of Analysis in Feasibility study
Demand/ Need and Market Analysis
Technical Analysis
Management Analysis
Financial Analysis
Economic Analysis
Environmental Analysis
Social Analysis
Market and Demand Analysis

Market and demand analysis look at the need of the project and help to estimate demand
It is the key activity for determining the scope of an investment, the possible production
programs, the technology required and often the choice of location.
Market and Demand Analysis
The analysis cover mainly:
Aggregate demand for the product/service
The share of unfulfilled demand
Demand forecasting
Market price of product/service
Analysis of competitors, their strength weakness
Distribution mechanism
Technical Analysis
Every project must be technically feasible.

Technical analysis is related to examine whether the project under study is technically
feasible to setup and operate to produce service/product.

For example, in agriculture project of Apple farming, types of field, soil test, temperature
required in selected location, location selection, plantation distance of between plants, variety
etc, needs to be analyzed.
Technical Aspects to be Considered
Choice of technological process and/ or appropriate technology,
Is the technology proven or tested?
Does the technology/ process/ equipment technically fit with the facility’s
existing technology/process/ equipment & machinery?
Equipment capacity & whether it is as per requirement
List of recommended equipment suppliers.
Reputation of the suppliers and performance guarantees
Technical Aspects to be considered
Investment cost and operational cost of different technology/process
Environmental aspects of different technology
Location aspects of the project and availability of infrastructural facilities with
probable alternative locations
Inputs: Availability of electricity, water, fuel, raw materials
Size and scale of operations: based on the demand, capital requirement, and
technology, inputs available
Management Analysis
If the management is incompetent, even a good project may fail.
So it looks at:
Types of organization
Academic qualification, and experience of key persons
Availability of personnel required for project execution.
Assessment of other specific skills required for the project
User’s role in case of development projects etc.
Financial Analysis
The scope of financial appraisal varies considerably with the nature of project
and whether it is revenue producing (e.g. industry, agriculture) or not (e.g.
roads, public schools).
Financial analysis covers:
 - Investment Cost Estimation
 - Operating Cost Estimation
 - Benefits Estimation
 - Cost Benefits Comparison
 - Project Selection Decision
Economic Analysis
Economic analysis estimate and analyze the project’s net contribution to the whole economy of
the region or country.
It helps determine whether the project increases the net wealth of a region or country as a
whole or not.
Estimation of Economic Costs of Projects
Estimation of Economic Benefits of Projects
Comparing Costs and Benefits
Economic Analysis
Calculation of Economic Net Present Value (ENPV), Economic Internal Rate of
Return (EIRR) and Economic Benefit Cost Ratio (EB/C Ratio)
Decision:
- If ENPV > 0, accept, if ENPV < 0, reject
- If EIRR > discount rate (cost of capital), accept project
- If EB/C ratio > 1 accept, < 1 reject project
Environmental Analysis
A project may causes environmental impacts in many ways
Identification and analysis of adverse effects on the environment
Identification of positive impacts
Required Mitigation measures
Designing environmental management plan
Provision of fund for environment management plan
Social Analysis
A project may causes social impacts in many ways
Will the project have any adverse effects on the society
What are positive and negative impacts
Viable measures to address negative impacts
Estimating cost for addressing social impacts
Completing the Feasibility study
The feasibility study should act as a springboard for the next
phase in the project life cycle. design and appraisal, ensuring that it
is able to commence in a focused way.

The end product of Feasibility Study should therefore comprise a

clear, concise report, called Feasibility Study Report