Construction Management & Engineering 486/CIEGNotes090403.pdf · Construction Management & Engineering ... Existing businesses, institutions, ... • Steel erection • Concrete –

Construction Management & EngineeringCIEG 467-013


Construction Managers must be both…

…business and technically oriented


Construction Education• Engineering (civil or architectural)

–Specialization/area of concentration–Curriculum Elective


Construction Management• Foundation of business and

science courses• Architectural & engineering

coursework • Core of Construction Mgt. Courses

B.S.C.M. CourseworkEngineering subjects

• Strength of Materials• Statics and Structures• Soil Mechanics• Steel and Concrete

Design• Surveying



B.S.C.M. CourseworkBusiness Management

• Accounting• Economics• Statistics• Financial Mgt.• Contract Law


B.S.C.M. Curriculum Course DistributionEngineering(incl math &

science)34%

Construction Mgt.30%

Liberal Arts13%

Business 15%

Architecture8%


Licensing/Certifications

• Professional Engineer’s License issued by state or local governing board.

• Certified Constructor issued by the American Institute of Constructors (AIC).

• Certified Construction Manager issued by Construction Management Association of America (CMAA)

Basic Skills needed by Construction Managers

– Estimating– Computer– Leadership/supervisory– Communication = writing and oral

skills– Negotiating



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 Feasibility2. Engineering and Design3. Procurement4. Construction5. Startup and Implementation6. Operation or Utilization


What is Construction?

Application of art and science

Inherently dangerous

Organized chaos

Man 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



• Process is not as predictable• Difficulty in applying automation• High potential for encountering unforeseen

conditions• Costs can vary according to conditions


• 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”


Industry Divisions

1. Residential Construction2. (Institutional & Commercial) Building

Construction3. Heavy Construction4. Industrial Construction


Residential• Types

– Single family houses– Multi family dwellings– High-rise apartments

• 30-35 % of the industry• Low capital and technology requirements


Residential (continued)• Largely private

• Often speculative

• Developers = surrogate owners

• Designed by architects, builders/developers


Building Construction• Institutional and Commercial Construction

– Schools and universities– Medical clinics and hospitals– Recreational facilities and sports

stadiums


Building Construction

– Retail stores and shopping centers– Warehouses and light manufacturing– Office buildings (single story to sky

scrappers)– Hotels, convention centers, and theaters


Building Construction• Institutional and Commercial

Construction– Churches and Synagogues– Prisons– Courthouses and other government

buildings


Building Construction

• 35-40 % of construction market• Larger and more complex than

residential • Various owners (mostly private)• Designed by architects and engineers


Heavy Construction

• Also referred to as “Horizontal Construction”, “Heavy Civil Construction”, “Heavy Engineering Construction”, “Infrastructure & Heavy Construction” and “Heavy/Highway Construction”.

• 20-25% of the construction industry

• Mostly public financing or large consortium

Heavy Construction

• Highway & bridges• Railroads & urban

transit systems• Tunnels and Dams• Airports• Canals• Port & harbor structures

Heavy Construction

• Pipelines• Sewer Systems• Water treatment &

distribution systems• Power &

communication networks

• Landfills


Heavy Construction

• Accounts for 20-25% of the construction market

• Heavy public works projects• Mostly public financing• Owner is a governmental agency or

large consortium


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.


Heavy Construction

• Greatest impact and manipulation of land and water

• High degree of mechanization• Contracts awarded through

competitive bidding

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.


Industrial Construction

• Petroleum refineries

• Steel mills & aluminum plants

• Chemical processing plants


• Fossil fuel & nuclear power plants

• Other heavy manufacturing facilities



• Complex mechanical systems, process piping, and instrumentation

• Civil, but also mechanical, chemical, and electrical engineering disciplines involved

• Mostly private ownership (in western countries)



• Negotiated contracts are typical• “Turnkey” contract arrangements are

common• Design-constructor must be intimately

familiar with the technology and operations of the facility


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



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


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 Process4. 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



5. SuppliersManufactures, distributors, research, promotionsMaterials and equipment salesEquipment Rental

6. FabricatorsStructural steel, pre-castors, wood products

7. Labor/Trade Unions


Participants in the Construction Process8. Government

Federal, State, local, and quasi-governmentOwner/client8 GSA, DOT’s, School Districts, USACOENon-ownership functions8 Taxation and regulation8 Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA),

FHWA, FAA, EPA, and several others8 State: DOL, DEP/DNREC, historic preservation (SHPO) 8 Local: County/City/Township Building Officials, Planning

Boards, and Zoning Commissions8 Quasi-government agencies: development authorities,

bridge and turnpike commissions



9. Utility CompaniesElectric, communications, water, gas,sanitary sewerPrivate petroleum pipelines Owner or service providerIntegral part of the processExisting facilities in conflict with new constructionInterruption of service can be very costly



10. Industry AssociationsOrganizations of construction contractorsOrganizations of the design and management professions Construction material and equipment suppliers and product researchConstruction labor organizationsCoordination and arbitrationInspection, 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 AssociationsFunctions and services

• Public relations• Joint industry promotions• Management education• Market development• Apprenticeship training• Legislative• Government relations• Product research


Participants in the Construction Process11. Professional Services

Business/management consultantsLegal council CPA firmsSurety CompaniesFinancial Institutions/LendersInsurance agents


Participants in the Construction Process12. Adjacent Owners and the Public At-

LargeExisting businesses, institutions, and residences adjacent to the constructed facilityCivic organizations and community groupsRailroads 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 schoolsOwner-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• Steel erection• Concrete

– Cast-in-place– Prestressed/Precast

• Masonry• Timber/wood framing• Piping/plumbing

• Clearing and grubbing• Blasting/demolition• Electrical• Painting• HVAC• Environmental

remediation• 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 employees 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 stages of project

– 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


Documents

Construction Management & Engineering 486/CIEGNotes090403.pdf · Construction Management & Engineering ... Existing businesses, institutions, ... • Steel erection • Concrete –