ADDIS ABABA UNIVERSITY

Addis Ababa Institute of Technology

School of Civil and Environmental Engineering

CONSTRUCTION MANAGEMENT
(CENG 5212)

Chapter One
INTRODUCTION TO MANAGEMENT

Addis Mesfin (MSc.)

 1. INTRODUCTION
Basic relationship in the Construction Process
Owner
Architect /
Finance
Engineer

General Contractor
Supplier

Testing Laboratories

Sub-Contractor
THE PROJECT LIFE CYCLE OF CONSTRUCTION PROJECT
 The project life cycle of a construction project may be
viewed as a process through which a construction project
is implemented from cradle to grave.
Market Definition of project
demand or
perceived
objectives and scope
needs
Conceptual
Disposal of planning and
Facility feasibility
study
Fulfillment
Conceptual plan or
of useful life
preliminary design
Operation and Design and
maintenance engineering

Acceptance of facility Plans and specifications

Start up for Procurement
occupancy and
construction

Completion of
construction
3
Main Parties in Construction Project
 The practice of planning, designing, constructing, and operating a
facility is most usually a collective effort of different groups of
professionals and trades.
 Depending on the size, complexity, and purpose of a particular
construction project, the project team may include:
 A client or an owner: Individuals, government, real estate
developers etc.
 Financial institutions or other investors that provide the funding
 Local planning and code authorities
 Consultants or Licensed architects and engineers who provide
design work and prepare construction documents
 Contractors who provide construction services and install
systems
 Marketing or leasing agents
 Facility managers who are responsible for operating the facility.

4
I. Client
 The client is the most important party who is active from
inception to completion and even to post-occupancy
maintenance.
 Clients may be classified as Public sector clients and
private sector clients.

II. Consultant
 The main role of the consultant is to interpret the client’s
project requirement into a specific design.

5
The consultants’ team shall:
 Ascertain, interpret and formulate the client’s
requirement into an understandable project.
 Design the project to much requirements and
constraints (imposed by statutory obligations,
technical feasibility, environmental factors, site
conditions, cost, etc)
 Assess client’s cost limit to decide on materials & the
like.
 Prepare contract documents.
 Supervise the project and constantly inform the client
on the progress
 Approve payments
 Resolve contractual disputes
 Issue provisional and final acceptance certification

6
III. Contractor

These are groups established mainly as commercial companies,

that contract to construct development projects.

 Responsibility of contractors:
 Carry out a full site investigation prior to submission of
tender,
 Submit tender,
 Plan, Program, Control the construction process.
 Notify the consultant about delays, ,
 Effect all payments to his employees, suppliers,
subcontractors,
 Rectify all defects on completion of works, etc
 Provide post occupancy repair & maintenance if
required.

7
IV. Public Sector Agencies

A. Statutory Authorities
 These bodies offer technical advice during design
and construction in their respective areas.
 E.g. EEPCO, AAWSA, Fire Authority - requires
meeting their specific requirements. Thus early
information to these authorities is required.
B. Municipalities and Government Authorities
 These bodies offer the basic Land permit and
building permit.

8
Resource for the construction Industry
 The following resources are vital for construction industry:

Human Resources (Labor or Workmen)

Financial Resources ( Fund)
Information Resources(news and updates)
Physical Resources ( Materials, Equipment and Other
Assets)
Services and Management

9
Construction Project Management Process
 Project management is the Planning, Organizing,
Monitoring and Controlling of all aspects of a project, to
achieve the project’s objective.

Project Scope Project Time Project Cost

Management Management management

Project Human Project

Project quality
Resource Communication
management
management Management

Project
Project Risk
Procurement
Management
Management
10
Meaning and Definition of Management

 Management is one of the most important human

activities.
 Management is essential whenever human efforts
are to be undertaken collectively to achieve specific
goals.
 Management is essential in Organizations.
 There is no single and comprehensive meaning and
definition of management, because of the various
aspects of management, the perspective of the
theorist and lack of clarity of concepts and
principles as the field is relatively young.

11
The most important meanings of management are
 Management refers to a group of people who are
responsible for guiding and controlling the organization
(managerial personnel).

 Management is the process of running an organization

(planning, organizing, staffing, directing/leading and
controlling).

 Management is a body of knowledge, a discipline.

 Management is the art of getting things done through and
with people in a formally organized group.

12
 Management is the process of coordinating all
resources through the five major functions of
planning, organizing, staffing, directing/leading and
controlling to achieve organizational objective.

 Management is the means of integrating resources

(materials, finance, human resources, information,
etc.,) in order to achieve organizational objectives
efficiently and effectively.

13
14
 General Mgmt Theoretical and Practical Development
 General Management as a practice is as old as the human
civilization but management as a theory is the result of
the industrialization in the 20th century.
 Management thoughts have been enriched by many
contributors of earlier practitioners in the field.
Management theories in the world has both theoretical
and applied contributors. This contributions are
1. Early contributions
2. Industrial era contributions Reading
3. Classical contributions assignment !
4. Behavioral contributions
5. Quantitative contributions
6. Systems Perspectives
7. Contingency Perspectives, and
8. Recent Contributions
15
Management Functions

 Management is a set of goal-directed, interrelated and

interdependent activities, aimed at accomplishing
organizational goals in an efficient and effective
manner.

 Generally, management functions encompass: planning,

organizing, leading and controlling.

16
 Management Function inputs and outputs

Management sets direction

Planning
Performance
Resources
•Human •Attain goals

•Financial •Products
Controlling Organizing
•Raw Materials •Services

•Technological •Efficiency

•Information •Effectiveness

Leading
Inputs Outputs

17
 Planning: devising a systematic approach for
attaining the goals of the organization.
 Organizing: determining how activities and
resources are grouped and the composition of
work groups and the way in which work and
activities are to be coordinated.
 Leading: guiding, leading and overseeing of
employees to achieve organizational goals.
 Controlling: establishing performance standards
and comparing results and expectations to make
appropriate changes.

18
 Planning Organizing
Organizing
Planning

Management
Management
Functions
Functions

Controlling Leading
Leading
Controlling

19
 Planning
 Management starts with planning. Without a plan
organizations will never succeed. If they do, it will
have been by luck or chance and is not repeatable.
Plan, will help us in:
 What to accomplish (goals);
 When to accomplish the goals;
 What resources to use;
 Who should accomplish what;
 Where to accomplish; and
 What methods to use.
 Assess all possible scenarios including the best and
worst and what actions to take.

20
Organizing
 Organizing refers to the process of designing jobs and
departments and determining authority relationships in
organizations.
 Organizing:
 Permits people to work together in order to
achieve goals;
 Helps to achieve synergy (interaction);
 Avoid duplication of resources;
 Establish authority ; and
 And facilitate communication.

21
Some issues addressed in organizing include:

 Specialization (division of labor);

 Grouping jobs into departments and structuring
(functional, product, customer, geographic);
 Determining authority relationships (span of control,
chain of command);
 Delegation of authority; and
 Centralization and decentralization.

22
Leading
 Influencing, inspiring and empowering employees to
work towards the leaders vision.
 Leading involves:
 Building successful groups and teams in
organizations;
 Motivating people;
 Communication; and

 Developing organizational change.

23
Controlling
 The process of measuring performance, comparing it
with the objectives, and making any necessary
adjustments.
 The purpose of control include:
 Adapting to changes;
 Minimizing consequences of errors;

 Helping the organization cope with complexities; and

 Improving efficiency.

24
Managerial Roles
 Henry Mintzberg brought forward ten most common roles by
managers and classified them into three managerial role categories:
Interpersonal, Informational and Decision Making Roles liaison

25
 Management Scopes and Levels

Manager: Definition
 The people looking beyond themselves and
exercising formal authority over the activities and
performance of other people in pursuit of
organizational goals.

 Someone whose primary responsibility is to carry

out the management process.

 Someone who plans and makes decisions,

organizes, leads, and controls human, financial,
physical, and information resources.

26
 Depending on the nature and scope of the job
managers are performing, they can be classified
under either functional or general managers.

 A relatively large organization possesses three levels

of managers: Top, Middle and First – line or Lower
managers and could resemble pyramidal shape

27
 Levels of Management

Top managers

Middle managers

First-line managers

Areas of Management

28
A. Top Managers
 The relatively small group of executives who manage the
organization’s overall goals, strategy, and operating
policies.
B. Middle Managers
 Largest group of managers in organizations who are
primarily responsible for implementing the policies and
plans of top managers. They supervise and coordinate
the activities of lower-level managers.
C. First-Line Managers
 Managers who supervise and coordinate the activities of
operating employees.

29
 Make decision about the
overall direction and
Top Level performance of the
organization

Translate the over all

direction and
performance into specific
Middle Level

objectives and plans

Implement
directions and plans
Lower Level through production
and delivery of
services

30
Managerial skills
 Conceptual skills: the capacity to think in the abstract
and to see the organization as a complete unit and to
integrate and give direction to its diverse activities so
that objectives are achieved.

 Interpersonal skills: the ability to communicate with,

understand and motivate both individuals and groups.

 Technical skills: skills necessary to accomplish or

understand the specific kind of work being done in an
organization.

31
 Conceptual Skills Technical Skills
Intellectual ability to Knowledge and ability to
process information and accomplish the specialized
make accurate decision activities of the work group
about the work, group, and
Interpersonal Skills
the job
Communication , conflict
resolution, leading 32
THANK YOU!

33