Professional Documents
Culture Documents
– Estimating
– Computer
– Leadership/supervisory
– Communication = writing and oral skills
– Negotiating
– Team Building
Construction Methods & Management
CIEG 486-010
Executive Functions
• Corporate Management
• Strategic Planning
• Marketing & Business Development
• Public Relations
• Labor Relations
Construction Methods & Management
CIEG 486-010
Executive Functions
What is Construction?
Application of art and science
Inherently dangerous
Organized chaos
• Government regulation
• Environmental constraints
• NIMBY syndrome
• Global competition
Construction Methods & Management
CIEG 486-010
• 10% of GNP
• Employs over 10,000,000 workers
• Annual Volume exceeds $800
billion
• Vital to the Nation’s economic
health and quality of life
Construction Methods & Management
CIEG 486-010
Industry Divisions
1. Residential Construction
2. (Institutional & Commercial) Building
Construction
3. Heavy Construction
4. Industrial Construction
Overview of the Construction Industry
Industry Divisions
1. Residential Construction
2. (Institutional & Commercial)
Building Construction
3. Heavy Construction
4. Industrial Construction
Overview of the Construction Industry
Residential
• Types
– Single family houses
– Multi family dwellings
– High-rise apartments &
condominiums
• 30-35 % of the industry
• Low capital and technology
requirements
Overview of the Construction Industry
Residential (continued)
• Largely private
• Often speculative
• Developers = surrogate owners
• Designed by architects,
builders/developers
Overview of the Construction Industry
Building Construction
• Institutional and
Commercial
Construction
– Schools and
universities
– Medical clinics and
hospitals
– Recreational facilities
and sports stadiums
Overview of the Construction Industry
Building Construction
– Retail stores and
shopping centers
– Warehouses and light
manufacturing
– Office buildings (single
story to sky scrappers)
– Hotels, convention
centers, and theaters
Overview of the Construction Industry
Building Construction
• Institutional and
Commercial Construction
– Churches and
Synagogues
– Prisons
– Courthouses and other
government buildings
Overview of the Construction Industry
Building Construction
• 35-40 % of construction market
• Larger and more complex than
residential
• Various owners (mostly private)
• Designed by architects and engineers
Overview of the Construction Industry
Heavy Construction
• Horizontal
Construction
• 20-25% of the
construction industry
• Mostly public
financing or large
consortium
Overview of the Construction Industry
Heavy Construction
• Highway & Bridges
• Railroads & Urban Transit
Systems
• Tunnels and Dams
• Airports
• Canals
• Port & harbor structures
Overview of the Construction Industry
Heavy Construction
• Pipelines
• Sewer Systems
• Water treatment & distribution
systems
• Power & communication
networks
• Landfills
Overview of the Construction Industry
Heavy Construction
• Mass quantities of basic
materials: earth, rock, steel,
timber, and concrete
• Constructors need
knowledge of engineering
and geology
• Engineers and builders are
often specialized
Overview of the Construction Industry
Heavy Construction
• Greatest impact on
land and water
• High degree of
mechanization
• Contracts awarded
through competitive
bidding
Overview of the Construction Industry
Industrial Construction
• Very large scale projects
• High degree of technological complexity
• Designed and built by the largest firms with the
highest level of technical sophistication
• Represent 5-10% of the market
Overview of the Construction Industry
Industrial Construction
• Petroleum refineries
• Steel mills & aluminum
plants
• Chemical processing plants
Overview of the Construction Industry
Industrial Construction
• Fossil fuel & nuclear power
plants
• Other heavy manufacturing
facilities
Overview of the Construction Industry
Industrial Construction
• Complex mechanical systems, process piping, and
instrumentation
• Civil, but also mechanical, chemical, and electrical
engineering disciplines involved
• Mostly private ownership (in western countries)
Overview of the Construction Industry
Industrial Construction
• Negotiated contracts are typical
• “Turnkey” contract arrangements are common
• Design-constructor must be intimately familiar
with the technology and operations of the facility
Overview of the Construction Industry
1. Owner
• Private or public
• Conceives the construction project
• Increasing level of sophistication
Construction Methods & Management
CIEG 486-010
2. Designer
• Architects
• Size of firms ranging form single practitioner to
large integrated firms
• Mostly building and residential construction
• Engineers
• Civil, mechanical, structural, electrical,chemical,
environmental, geotechechnical, and
multidiscipline
Construction Methods & Management
CIEG 486-010
3. General Contractor
• General contractor also called “Prime” contractor
• Specialty contractors working as subcontractors
• Organization ranges from small, one-person
company to large, integrated A/E/C firms
• Part of a design-build team
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Design-Build (Turnkey)
– Single firm or team responsible for design and
construction minimizes coordination problems
– More efficient designs with the interjection of
constructibility and innovation
– Often employs fast-track construction
– Benefits include reduced overall delivery time and “one-
stop shopping” for the owner
– Disadvantages include complexity of evaluating
proposals
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CM Contract – “At-Risk”
– CM assumes financial risks similar to a GC
– CM manages all phases of the work without
performing any actual work tasks
– CM’s only resources are management personnel
– Contractors/subcontractors have a direct contract
privity with CM
– Contract form is often a negotiated guaranteed
maximum price arrangement
– Disadvantages includes lack of impartiality
Construction Methods & Management
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