Damian Trevor - Introduction of Construction

Construction Methods & ManagementBy

Damian TrevorDamian Trevor

Construction Methods & Management

Construction Managers must be both…

…business and technically oriented

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Construction Education Options

Education Format• Traditional• CEM• BC• CM

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• Engineering (civil or architectural)

• Specialization/area of concentration

• Curriculum Elective

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Construction-FocusedEducation

CEM CM BCM

CivilEngineering

Applied Technologyor

Professional Studies

Architecture

School of Construction

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Construction Management Education

• National CEM Programs• Stanford University• University of Michigan• Virginia Tech• Purdue University• University of Illinois-UC• Oregon State University• University of Colorado• NC State

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Construction Management Education

• National BCM Programs• Georgia Tech• University of Florida• Purdue University• Virginia Tech• Auburn University• Georgia Southern University• University of North Florida

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Construction Education Options• National CM Programs

• Arizona State University• Florida International University• Colorado State• Clemson• University of Washington• Michigan State University• Brigham Young • Wentworth Institute of Technology

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• Graduate Construction Programs• Stanford University• University of Colorado• University of Michigan• Virginia Tech• University of Southern California• Arizona State University• Florida International University• Texas A&M

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Construction Management

• Interdisciplinary Education• Practice rather than theory based• Foundation of Business and Science Courses• Architectural & Engineering Coursework • Core of Construction Management Courses

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B.S.C.M. Coursework

Engineering subjects• Strength of Materials• Statics and Structures• Soil Mechanics• Steel and Concrete Design• Surveying

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B.S.C.M. Coursework

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

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

science)34%

Construction Mgt.30%

Liberal Arts13%

Business 15%

Architecture8%

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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)

• Project Management Professional (PMP) by the Project Management Institute (PMI)

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Basic Skills needed by Construction Managers

• Estimating• Computer• Leadership/supervisory• Communication = writing and oral skills• Negotiating • Team Building

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Construction Management Functions

• Coordination• Planning & Scheduling• Purchasing & Expediting• Supervision• Cost Control• Documentation and Reporting

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Construction Management Functions

• Quality Control/Quality Assurance• Estimating• Safety and Risk Management• Contract Administration• Claims Analysis/Avoidance

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Additional Skills & Knowledge needed by Construction Engineers

• Surveying (GPS, GIS, Hydrographic)• Structural Design• CADD/Drafting• Specialization in Mechanical,

Electrical, Chemical, or Environmental disciplines

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Construction Engineering Functions

• Preparation and Review of Shop Drawings• Constructibility & Sequencing Studies• Value Engineering• Erection Diagrams and Procedures• Survey & Layout

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Executive Functions• Corporate Management• Strategic Planning• Marketing & Business Development• Public Relations• Labor Relations

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Executive Functions

• Ultimately responsible for quality, safety, production, and general financial health.

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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

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Project Life Cycle

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Life Cycle of a Constructed Facility

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

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What is Construction?

Application of art and science

Inherently dangerous

Organized chaos

Mankind using creativity, knowledge, strength, determination, and persistence to control his environment

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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

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

unforeseen conditions• Costs can vary according to

conditions

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• 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

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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

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Problems Facing the Construction Industry:

• Government regulation

• Environmental constraints

• NIMBY syndrome

• Global competition

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“The Blame Game”

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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

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Industry Divisions1. Residential Construction2. (Institutional & Commercial)

Building Construction3. Heavy Construction4. Industrial Construction

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Industry Divisions1. Residential Construction

2. (Institutional & Commercial) Building Construction

3. Heavy Construction

4. Industrial Construction

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Residential • Types

• Single family houses• Multi family dwellings• High-rise apartments &

condominiums

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

technology requirements

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Residential (continued) • Largely private• Often speculative• Developers = surrogate owners• Designed by architects,

builders/developers

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Building Construction

• Institutional and Commercial Construction

• Schools and universities

• Medical clinics and hospitals

• Recreational facilities and sports stadiums

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Building Construction

• Retail stores and shopping centers

• Warehouses and light manufacturing

• Office buildings (single story to sky scrappers)

• Hotels, convention centers, and theaters

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Building Construction• Institutional and

Commercial Construction

• Churches and Synagogues

• Prisons• Courthouses and

other government buildings

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

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

engineers

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Heavy Construction

• Horizontal Construction

• 20-25% of the construction industry

• Mostly public financing or large consortium

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Heavy Construction• Highway & Bridges• Railroads & Urban

Transit Systems• Tunnels and Dams• Airports• Canals• Port & harbor structures

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Heavy Construction• Pipelines• Sewer Systems• Water treatment &

distribution systems• Power & communication

networks• Landfills

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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

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Heavy Construction

• Greatest impact on land and water

• High degree of mechanization

• Contracts awarded through competitive bidding

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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

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Industrial Construction

• Petroleum refineries• Steel mills & aluminum

plants• Chemical processing

plants

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Industrial Construction• Fossil fuel & nuclear power

plants• Other heavy manufacturing

facilities

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• Complex mechanical systems, process piping, and instrumentation

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

• Mostly private ownership (in western countries)

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• Negotiated contracts are typical

• “Turnkey” contract arrangements are common

• Design-constructor must be intimately familiar with the technology and operations of the facility

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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

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Participants in the Construction Process

1. Owner• Private or public• Conceives the construction project• Increasing level of sophistication

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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

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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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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

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Participants in the Construction Process5. Suppliers

Manufactures, distributors, research, promotions Materials and equipment sales Equipment Rental

6. Fabricators Structural steel, pre-castors, wood products

7. Labor/Trade Unions

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Participants in the Construction Process8. Government

Federal, State, local, and quasi-government Owner/client

8 GSA, DOT’s, School Districts, USACOE Non-ownership functions

8 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

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Construction Methods & ManagementParticipants in the Construction Process9. 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

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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

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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

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10. Industry Associations

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

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11. Professional Services Business/management consultants Legal council CPA firms Surety Companies Financial Institutions/Lenders Insurance agents

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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

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Project Delivery Organization• Construction by owners forces• Owner-managed construction• Construction by general contractor• Design-build team• CM Contract

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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

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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

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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

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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 -- 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

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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

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THANK YOU

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Real Estate

Damian Trevor - Introduction of Construction