Construction: Project Management
Construction: Project Management
Construction: Project Management
MANAGEMENT
A background of Construction
Industry
Construction industry is the largest industry
in the world
It consumes a wide employment circle of
labor
It exhibits costs overruns, time extension, and
conflicts among parties.
Intricate and time consuming undertakings
During the construction process itself , work
will involve many skills, materials and
hundreds of operations
Cost overruns-
also known as a cost increase, underrated or
budget overrun, involves unexpected costs
incurred in excess of budgeted amounts due to an
underestimation of the actual cost during
budgeting.
Challenges of construction
Industry
Its unique nature and every project is one of a
kind
Many conflicting parties are involved
Project is constrained by time, money and
quality
High risk
Characteristics of
construction Industry
A defined goal or objective
Specific task to be performed
A defined beginning and end
Resources being consumed
Construction Project
Participants
Architects
Engineers
Building tradesman
Sub contractors
Material dealers
Inherent components
Subsoil conditions
Surface topography
Weather
Transportation
Material supply
Labor conditions
Technology
Construction Parameters
Deliverables
These are tangible products, services and results
that you will produce during the project
Key dates
Completion Criteria
Expectations
Potential Risks
Project Stages
Owner
Whether public or private , is the instigating party
that gets the project financed, design and built
For public owners, must proceed with applicable
statutes and administrative directives pertaining
for advertising for bids, bidding procedure,
construction contracts, administration and other
matters
Private owners maybe individuals, partnership
and corporation, for their own use or for sell ,
lease and rent.
Participants
ARCHITECT-ENGINEER
Is the design arm of the owner
Is a private and independent design firm that
accomplishes the design under contract with the
owner.
Or a part of construction contractor in case of
design and construction mode.
Participants
PRIME CONTRACTOR
Is the firm that is the prime contract with the
owner for the construction of the project either its
entirety or some designated portion
Could be a single contract system or separate
contracts
BIDDING
Competitive Bidding
The most standard system especially in
government projects
Bid prices quoted by the contractors will be the
basis of awards, where the lowest bidder usually
winning the awards.
Bidding Types
Negotiated Contracts
Awarded on the basis of direct agreement with
the contractor without going through the
competitive bidding process.
It includes terms and provisions that are usually
mutually agreed upon to both parties.
Bidding Types
Sub-contracting
The extent to which general contractor will
subcontract depends greatly on the nature of the
project and the contractors own organization.
Bidding Types
Design-bid- Construct
Most common type especially for government
projects where field construction is not started
before the architect-designer finalized the design.
Possible to reduce project cost but sometimes
slows down the completion time of the projects
Bidding Types
Fast Tracking
Overlapping accomplishment of project design
and construction.
As the design of the progressive phases of the
work is finalized , these work packages are put
under contract, a process also called phased
construction.
This could reduce the total time required to
achieve project completion.
Bidding Types
Speculative Construction
When owners build structures for lease, sale , to
other parties, like housing and shopping centers
and warehouse facilities.
The developer act as their own contractors.
They build dwelling units in their own account
and employ sales to market for their product.
The construction Industry
Residential construction
Building construction (Institutional and
commercial)
Heavy construction
Industrial construction
Residential construction
Low Capital
30-35% of the industry
Single Family, Multi Family, high rise
apartments
Building construction
Petroleum refineries
•Steel mills & aluminum plants •Chemical
processing plants
•Fossil fuel & nuclear power plants
•Other heavy manufacturing facilities 37
Industrial Construction
Construction Management
Labourer
Masons
Carpenters
Plumber
Electrician
Welder
Roof installer
Painter
Glass installer
Foreman/Leadman
Labour Productivity
Quality of Work -
Quantity of Work -
Job Knowledge -
Related Work Knowledge -
Judgment -
Initiative -
Resource Utilization -
Dependability -
Analytical Ability -
Communicative Ability -
Interpersonal Skills -
Labor characterisitcs
Communicative Ability -
Interpersonal Skills -
Ability to Work Under Pressure -
Security Sensitivity -
Safety Consciousness -
Profit and Cost Sensitivity -
Planning Effectiveness -
Leadership -
Delegating -
Labor characterisitcs
Planning
Scheduling
Controlling
Three Phases of PERT CPM
Planning
Is defined as determining the relationship
between the work operation and the sequence in
which they are to be performed
Three Phases of PERT CPM
SCHEDULING
is defined as the process of transferring the arrow
diagram into timetable of calendar days.
It involves distribution of work time to each work
operation and determining when to start and
when to finish
Three Phases of PERT CPM