Construction Methods & Management

Construction Managers must be

both…

…business and technically

oriented
Basic Skills needed by Construction Managers

– Estimating
– Computer
– Leadership/supervisory
– Communication = writing and oral skills
– Negotiating
– Team Building
Construction Management Functions
• Coordination
• Planning & Scheduling
• Purchasing & Expediting
• Supervision
• Cost Control
• Documentation and Reporting
Construction Management Functions
• Quality Control/Quality Assurance
• Estimating
• Safety and Risk Management
• Contract Administration
• Claims Analysis/Avoidance
Additional Skills & Knowledge needed by
Construction Engineers

• Surveying (GPS, GIS, Hydrographic)

• Structural Design
• CADD/Drafting
• Specialization in Mechanical, Electrical,
Chemical, or Environmental disciplines
Construction Engineering Functions
• Preparation and Review of Shop
Drawings
• Constructibility & Sequencing Studies
• Value Engineering
• Erection Diagrams and Procedures
• Survey & Layout
Executive Functions
• Corporate Management
• Strategic Planning
• Marketing & Business Development
• Public Relations
• Labor Relations
Executive Functions

• Ultimately responsible for quality,

safety, production, and general
financial health.
Construction training can be valuable
to design professionals……
• To enable them to produce practical and
efficient designs
• Develop needed management skills
• Learn scheduling techniques that can be
applied to the preconstruction process
Project Life Cycle
Life Cycle of a Constructed Facility

1. Concept and Feasibility

2. Engineering and Design
3. Procurement
4. Construction
5. Startup and Implementation
6. Operation or Utilization
What is Construction?

 Application of art and science

 Inherently dangerous

 Organized chaos

 Mankind using creativity, knowledge,

strength, determination, and persistence to
control his environment
Construction differs from manufacturing
in that:
• Not performed in controlled conditions,
therefore highly impacted by weather and
other environmental conditions
• Seasonality
• Each project is unique
• Remotes sites with various access problems
Construction differs from manufacturing
in that:

• Process is not as predictable

• Difficulty in applying automation
• High potential for encountering unforeseen
conditions
• Costs can vary according to conditions
Construction differs from manufacturing
in that:
• Difficult to manage and supply utilities and other
resources.
• Technical innovations are adopted slower.
• Success is dependent upon the quality of its
people.
• Very custom-oriented
• Product can be of mind-boggling size, cost, and
complexity
Problems Facing Construction
Industry:

• Highly traditional and fragmented; slow to

embrace new technology
• Restrictive/outdated building codes
• Labor agreements and craft jurisdictional
issues
• Liability and legal considerations
• Lack of profit motive or other incentive
Problems Facing the Construction
Industry:

• Government regulation

• Environmental constraints

• NIMBY syndrome

• Global competition
“The Blame Game”
Overview of the Construction Industry

• 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
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

Construction Industry is further subdivided

into sectors or segments by:
• Public vs. private ownership/funding
• Union labor vs. open shop
• Organization and method of project delivery
• Type of work: new vs. rehab/retrofit/restoration
• Contract type
Participants in the Construction Process

1. Owner
• Private or public
• Conceives the construction project
• Increasing level of sophistication
Participants in the Construction Process
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
Participants in the Construction Process

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
Participants in the Construction Process
4. Construction Manager
 Two principle divisions of CM
• CM for Fee (management services only)
• CM At Risk
– Operates similarly to a GC or DB with no labor or
capital equipment
• Can encompass the management of the design
process as well as construction
• CM services including inspection and overall project or
program management
Participants in the Construction Process
5. Suppliers
 Manufactures, distributors, research, promotions
 Materials and equipment sales
 Equipment Rental
6. Fabricators
 Structural steel, pre-castors, wood products
7. Labor/Trade Unions
Participants in the Construction Process
8. Government
 Federal, State, local, and quasi-government
 Owner/client
 GSA, DOT’s, School Districts, USACOE
 Non-ownership functions
 Taxation and regulation
 Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA),
FHWA, FAA, EPA, and several others
 State: DOL, DEP/DNREC, historic preservation (SHPO)
 Local: County/City/Township Building Officials, Planning
Boards, and Zoning Commissions
 Quasi-government agencies: development authorities,
bridge and turnpike commissions
Participants in the Construction Process
9. Utility Companies
 Electric, communications, water, gas,sanitary
sewer
 Private petroleum pipelines
 Owner or service provider
 Integral part of the process
 Existing facilities in conflict with new
construction
 Interruption of service can be very costly
Participants in the Construction Process
10. Industry Associations
 Organizations of construction contractors
 Organizations of the design and management
professions
 Construction material and equipment suppliers
and product research
 Construction labor organizations
 Coordination and arbitration
 Inspection, specifications, and costs
10. Industry Associations
 Functions and services
• Industry information and communication
• Development and maintenance of standards
• Interindustry coordination
• Collective bargaining
• Statistics (market & industry)
• Meetings and conventions
10. Industry Associations
 Functions and services
• Public relations
• Joint industry promotions
• Management education
• Market development
• Apprenticeship training
• Legislative
• Government relations
• Product research
Participants in the Construction Process
11. Professional Services
 Business/management consultants
 Legal council
 CPA firms
 Surety Companies
 Financial Institutions/Lenders
 Insurance agents
Participants in the Construction Process
12. Adjacent Owners and the Public At-
Large
 Existing businesses, institutions, and
residences adjacent to the constructed
facility
 Civic organizations and community
groups
 Railroads and public lands
Project Delivery Organization
• Construction by owners forces
• Owner-managed construction
• Construction by general contractor
• Design-build team
• CM Contract
 Construction employing owner forces
– Usually small in-house construction or
renovations
– Industrial projects or institutional (such as
hospitals or schools
 Owner-managed construction
– Residential/commercial building developers
– Industrial or institutional
 Construction by General Contractor
– Also referred to as “Prime Contractor”
– Most common method of delivery
– Contractor bears substantial risks and
financial responsibility
– Facility designed by in-house
architect/engineer or by design consultants
– Often requires specialty subcontractors
Specialty contractors might include those
specializing in one of the following:
• Excavation • Clearing and grubbing
• Steel erection • Blasting/demolition
• Concrete • Electrical
– Cast-in-place • Painting
– Prestressed/Precast • HVAC
• Masonry • Environmental
• Timber/wood framing remediation
• Piping/plumbing • Many, many others
 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
 CM Contract -- Fee (management services
only) also referred to as “Agency”
– Specialized construction skills through all project stages
including preconstruction
– Provides close coordination between design and
construction
– Eliminates impact of conflicts of interest
– Independent and objective evaluation of costs,
schedules, and performance
– Potential saving in time and cost
– Disadvantages include no risks associated with costs
increase
 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