Seminar

On
Construction Management and its
importance

Submitted To: Submitted By:

Content
 Introduction
 What is Construction Management ?
 Services of Construction Management
 Construction Management Values
 Types of Construction Management
 The CM works in the Owner’s Benefit
 References
 Introduction
3

 Whilst Construction Management (CM) has been

out of favour over the last 5-6 risk-averse years,
there appears to be signs of its return.
 She further added “if I had a project now and we
were looking to procure it, then I suspect CM
would be one of the routes we’d be considering.
 What is Construction Management ?

 Construction Management is a professional

service that applies effective management
techniques to the planning, design and
construction of a project from inception to
completion for the purpose of controlling time,
cost and quality.

4
 Services of Construction Management
 
5

 Project Preplanning/Programming Phase Services

 Project Design Phase Services
 Project Procurement Phase Services
 Project Construction Phase Services Commissioning
Services
 Testing Services
Construction Management Values
 Construction Management is
a discipline and management
system specifically created to
promote the successful
execution of capital projects
for owners.
 These projects can be highly
complex. Few owners
maintain the staff resources
necessary to pay close,
continuing attention to every
detail; yet these details can
“make or break” a project.

6
The Client & Construction Management

 A professional CM firm can

augment the owner’s existing
resources with pre-planning,
design, construction,
engineering and
management expertise that
can assure the best possible
project outcome no matter
what type of project delivery
method is used.

7
 Types of Construction Management

 Agricultural
 Residential
 Commercial
 Institutional
 Industrial
 Heavy civil
 Environmental
 Professional CM pays off in:
9

 Speed of project completion.

 Claims and dispute avoidance.
 Cost savings.
 Quality of finished job.
 Quality of the construction process.
 Project safety.
 The CM works in the Owner’s
10
Benefit

CONSTRUCTION MANAGER

Safety

Time Cost

Quality
Tendered Projects
 A Prime Contractors lump sum
15
contract has a profit and risk
16

14
equation built in
12  The market can sustain up to
10 15% mark-up on labour and
8 Prime Contractor
Const. Manager
materials
6

4
 Internal disciplines such as
2
office administration,
0
0
construction management and
Trades
trades are marked up too

11
Bonding & Project Performance
 Client stipulated surety
bonding typically costs up
to 1.5%
1.6 1.5

1.4
 Often developers projects
1.2 fail financially as well
1 as, contractors fail to
0.8

0.5
Prime Contractor
Const. Manager perform or go broke
0.6

0.4  CM’s recommend using

0.2 risk analysis to pinpoint
0
Bonding where bonding is sensible

12
Cost Savings
The fact is … 16
15 15
dollars run away 14

without 12
Construction Management 10

8 Prime Contractor
 Trades 6
Const. Manager

 Materials 4
 Bonding 2 1.5
 Owner Profits 0 0 0 0.05
Trades Material Bonding

13
 Magnum Project Management Ethics
14

Client
Professional
Service Representation
Development
of
Conflicts of Qualifications
Interest
Fair
Fair
Competition Public Compensation
Welfare
Standards of
Practice Integrity
Release of
Information
 Owners need…
15

 Involvement in pre-construction and planning.

 Continued commitment all the way through project
delivery and commissioning.
 Responsive leadership and collaboration
throughout.
 Collaboration
16

 The new imperative for today’s complex

construction projects and programs.
 Collaboration is everyone’s responsibility.
 CM provides leadership and coordinates a multi-
disciplinary team.
 Owners don’t want stars – they want successful
projects.
References
 www.google.com
 www.wikipedia.com
 www.studymafia.org
18

Thank you