Construction management

Construction Management or Construction Project Management (CPM) is the overall planning, coordination, and control of a project from beginning to completion. CPM is aimed at meeting a client's requirement in order to produce a functionally and financially viable project.[1] The construction industry is composed of five sectors: residential, commercial, heavy civil, industrial, and environmental. A construction manager holds the same responsibilities and completes the same processes in each sector. All that separates a construction manager in one sector from one in another is the knowledge of the construction site. This may include different types of equipment, materials, subcontractors, and possibly locations.

In 2010 the Chartered Institute of Building published its construction management definition based upon the Institute's 45,000 members and the work they do. The designation Chartered Construction Manager is available to full corporate members (MCIOB) and fellows (FCIOB) of the Chartered Institute of Building.

The role of a contractor

A contractor is assigned to a construction project once the design has been completed by the person or is still in progress. This is done by going through a bidding process with different contractors. The contractor is selected by using one of three common selection methods: low-bid selection, best-value selection, or qualifications-based selection. This is the main role of a contractor.

A Construction Manager should have the ability to handle public safety, time management, cost management, quality management, decision making, mathematics, working drawings,and human resources.[2]

Functions

The functions of construction management typically include the following:

  1. Specifying project objectives and plans including delineation of scope, budgeting, scheduling, setting performance requirements, and selecting project participants.
  2. Maximizing the resource efficiency through procurement of labor, materials and equipment.
  3. Implementing various operations through proper coordination and control of planning, design, estimating, contracting and construction in the entire process.
  4. Developing effective communications and mechanisms for resolving conflicts.:[3]

The Construction Management Association of America (a US construction management certification and advocacy body) says the 120 most common responsibilities of a Construction Manager fall into the following 7 categories: Project Management Planning, Cost Management, Time Management, Quality Management, Contract Administration, Safety Management, and CM Professional Practice. CM professional practice includes specific activities, such as defining the responsibilities and management structure of the project management team, organizing and leading by implementing project controls, defining roles and responsibilities, developing communication protocols, and identifying elements of project design and construction likely to give rise to disputes and claims.

Seven types of construction

Construction Management jobs

Project designer

Obtaining the project

Bids

A bid is given to the owner by construction managers that are willing to complete their construction project. A bid tells the owner how much money they should expect to pay the construction management company in order for them to complete the project.[2]

Selection methods

Payment contracts

Project stages

Design

The design stage contains a lot of steps: programming and feasibility, schematic design, design development, and contract documents. It is the responsibility of the design team to ensure that the design meets all building codes and regulations. It is during the design stage that the bidding process takes place.[2]

Pre-construction

The pre-construction stage begins when the owner gives a notice to proceed to the contractor that they have chosen through the bidding process. A notice to proceed is when the owner gives permission to the contractor to begin their work on the project. The first step is to assign the project team which includes the project manager (PM), contract administrator, superintendent, and field engineer.[2]

During the pre-construction stage, a site investigation must take place. A site investigation takes place to discover if any steps need to be implemented on the job site. This is in order to get the site ready before the actual construction begins. This also includes any unforeseen conditions such as historical artifacts or environment problems. A soil test must be done to determine if the soil is in good condition to be built upon.[2]

Procurement

The procurement stage is when labor, materials and equipment needed to complete the project are purchased. This can be done by the general contractor if the company does all their own construction work. If the contractor does not do their own work, they obtain it through subcontractors. Subcontractors are contractors who specialize in one particular aspect of the construction work such as concrete, welding, glass, or carpentry. Subcontractors are hired the same way a general contractor would be, which is through the bidding process. Purchase orders are also part of the procurement stage.[2]

Construction

The construction stage begins with a pre-construction meeting brought together by the superintendent. The pre-construction meeting is meant to make decisions dealing with work hours, material storage, quality control, and site access. The next step is to move everything onto the construction site and set it all up.[2]

Contractor progress payment schedule

A Contractor progress payment schedule is a schedule of when (according to project milestones or specified dates) contractors and suppliers will be paid for the current progress of installed work.

Progress payments are partial payments for work completed during a portion, usually a month, during a construction period. Progress payments are made to general contractors, subcontractors, and suppliers as construction projects progress. Payments are typically made on a monthly basis but could be modified to meet certain milestones. Progress payments are an important part of contract administration for the contractor. Proper preparation of the information necessary for payment processing can help the contractor financially complete the project. [4]

Owner occupancy

Once the owner moves into the building, a warranty period begins. This is to ensure that all materials, equipment, and quality meet the expectations of the owner that are included within the contract.[2]

Issues resulting from construction

Dust and mud

When construction vehicles are driving around a site or moving earth, a lot of dust is created, especially during the dryer months. This may cause disruption for surrounding businesses or homes. A popular method of dust control is to have a water truck driving through the site spraying water on the dry dirt to minimize the movement of dust within and out of the construction site. When water is introduced mud is created. This mud sticks to the tires of the construction vehicles and is often lead out to the surrounding roads. A good practice is to have a street sweeper clean the roads at least once a day to minimize dirty road conditions. April 2015

Environmental protections

Construction activity documentation

Project meetings take place at scheduled intervals to discuss the progress on the construction site and any concerns or issues. The discussion and any decisions made at the meeting must be documented.[2]

Diaries, logs, and daily field reports keep track of the daily activities on a job site each day.

Labor statements are required on a daily basis. Also list of Labor, PERT CPM are needed for labor planning to complete a project in time.

Resolving disputes

Terminology

Airport terminal under construction
Berlin Brandenburg Airport, an example of poor construction management[5]

The following terms are commonly used in the industry:

Study and practice

Construction Management education comes in a variety of formats: formal degree programs (Two-year associate degree; four-year baccalaureate degree, masters degree, project management, operations management engineer degree, doctor of philosophy degree, postdoctoral researcher); on-the-job-training; and continuing education and professional development. Information on degree programs is available from the American Council for Construction Education (ACCE) or the Associated Schools of Construction (ASC).

According to the American Council for Construction Education (the academic accrediting body of construction management educational programs in the U.S.), the academic field of construction management encompasses a wide range of topics. These range from general management skills, through management skills specifically related to construction, to technical knowledge of construction methods and practices. There are many schools offering Construction Management programs, including some offering a Masters degree.[8][9]

Construction Management software

Capital project management software (CPMS) refers to the systems that are currently available that help capital project owner/operators, program managers, and construction managers, control and manage the vast amount of information that capital construction projects create. A collection, or portfolio of projects only makes this a bigger challenge. These systems go by different names: capital project management software, construction management software, project management information systems. Usually Construction Management can be referred as subset of CPMS where the scope of CPMS is not limited to construction phases of project. There are systems available from vendors such as Aurigo Software which will not only manage capital projects but also the entire project portfolio (Program).[10]

There is a belief among many senior executives that by investing in an ERP system, their operational problems in project delivery will become history. That is hardly ever the case. ERP systems are an essential part of running a large and complex organization and they are excellent “systems of record” but are not sufficient tool for managing large capital projects and obtain real-time information and analytics around it. There is a growing trend of capital project owners realizing that ERP are not designed for the needs of capital project management and what is required is a CPMS system, which is integrated with ERP and other internal systems such as GIS, Mapping, etc. CPMS is a critical component of overall IT strategy for Capital project owners and capital project owners are realizing it now, more than ever.[11]

Required knowledge

Skills and abilities

Business model

Two tall buildings, with construction cranes on top, next to much taller skyscraper
Skyscrapers under construction in Panama City, Panama

The construction industry typically includes three parties: an owner, a designer (architect or engineer) and a builder (usually known as a general contractor). There are traditionally two contracts between these parties as they work together to plan, design and construct the project.[12] The first contract is the owner-designer contract, which involves planning, design and construction administration. The second contract is the owner-contractor contract, which involves construction. An indirect third-party relationship exists between the designer and the contractor, due to these two contracts.

An owner may also contract with a construction project management company as an advisor, creating a third contract relationship in the project. The construction manager's role is to provide construction advice to the designer, design advice to the constructor on the owner's behalf and other advice as necessary.

Design, bid, build contracts

The phrase "design, bid, build" describes the prevailing model of construction management, in which the general contractor is engaged through a tender process after designs have been completed by the architect or engineer.

Design-build contracts

Many owners – particularly government agencies – let out contracts known as design-build contracts. In this type of contract, the construction team (known as the design-builder) is responsible for taking the owner's concept and completing a detailed design before (following the owner's approval of the design) proceeding with construction. Virtual design and construction technology may be used by contractors to maintain a tight construction time.

There are three main advantages to a design-build contract. First, the construction team is motivated to work with the design team to develop a practical design. The team can find creative ways to reduce construction costs without reducing the function of the final product. The second major advantage involves the schedule. Many projects are commissioned within a tight time frame. Under a traditional contract, construction cannot begin until after the design is finished and the project has been awarded to a bidder. In a design-build contract the contractor is established at the outset, and construction activities can proceed concurrently with the design. The third major advantage is that the design-build contractor has an incentive to keep the combined design and construction costs within the owner's budget.

The major problem[13] with design-build contracts is an inherent conflict of interest. In a standard contract the designer is responsible to the owner to review the builder's work, ensuring that the products and methods meet specifications and codes. An independent builder may pick up design flaws which might go unnoticed (or unmentioned) if the builder is also the designer. The owner may get a building that is over-designed to increase profits for the design-builder, or a building built with lesser-grade products to maximize profits. If speed is important, design and construction contracts can be awarded separately; bidding takes place on preliminary plans in a not-to-exceed contract instead of a single, firm design-build contract.

Planning and scheduling

Project-management methodology is as follows:

Architecture–engineer

Agency CM

Construction cost management is a fee-based service in which the construction manager (CM) is responsible exclusively to the owner, acting in the owner's interests at every stage of the project. The construction manager offers impartial advice on matters such as:

Comprehensive management of every stage of the project, beginning with the original concept and project definition, yields the greatest benefit to owners. As time progresses beyond the pre-design phase, the CM's ability to effect cost savings diminishes. The agency CM can represent the owner by helping select the design and construction teams and managing the design (preventing scope creep), helping the owner stay within a predetermined budget with value engineering, cost-benefit analysis and best-value comparisons. The software-application field of construction collaboration technology has been developed to apply information technology to construction management.

CM at-risk

CM at-risk is a delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP). The construction manager acts as a consultant to the owner in the development and design phases (preconstruction services), and as a general contractor during construction. When a construction manager is bound to a GMP, the fundamental character of the relationship is changed. In addition to acting in the owner's interest, the construction manager must control construction costs to stay within the GMP.

CM at-risk is a global term referring to the business relationship of a construction contractor, owner and architect (or designer). Typically, a CM at-risk arrangement eliminates a "low-bid" construction project. A GMP agreement is a typical part of the CM-and-owner agreement (comparable to a "low-bid" contract), but with adjustments in responsibility for the CM. The advantage of a CM at-risk arrangement is budget management. Before a project's design is completed (six to eighteen months of coordination between designer and owner), the CM is involved with estimating the cost of constructing a project based on the goals of the designer and owner (design concept) and the project's scope. In balancing the costs, schedule, quality and scope of the project, the design may be modified instead of redesigned; if the owner decides to expand the project, adjustments can be made before pricing. To manage the budget before design is complete and construction crews mobilized, the CM conducts site management and purchases major items to efficiently manage time and cost.

Accelerated construction techniques

Starting with its Accelerated Bridge Program in the late 2000s, the Massachusetts Department of Transportation began employing accelerated construction techniques, in which it signs contracts with incentives for early completion and penalties for late completion, and uses intense construction during longer periods of complete closure to shorten the overall project duration and reduce cost.[14]

See also

References

  1. 3rd Forum "International Construction Project Management" 26th/27 June 2003 in Berlin
  2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 Barbara J. Jackson (2010). Construction Management Jumpstart (2nd ed.). Indianapolis, Indiana: Wiley.
  3. Chris Hendrickson (September 2008). "What Is Construction Project Management?". PM Hut. Retrieved 2010-07-04.
  4. Minks, William (2011). Construction Jobsite Management.
  5. New York Times article on the problems with the new Berlin Brandenburg Airport
  6. Hammond, p. 10
  7. Hammond, p. 11; “Generalübernehmer”
  8. http://www.usnews.com/usnews/edu/college/tools/search.php#
  9. "Standards and criteria for accreditation of post-secondary construction education degree programs" (PDF). American Council for Construction Management. Retrieved 2006-05-29.
  10. Date, Nitin. "Capital Project Management Software overview".
  11. Date, Nitin. "Implementing CPMS as part of overall IT Strategy".
  12. Halpin, Daniel. Construction Management. Hoboken, NJ: Wiley, 2006
  13. Stagner, Steve. "Design-Build and Alternative Project Delivery in Texas" (PDF). Texas Council of Engineering Companies. Retrieved 18 October 2011.
  14. http://www.fhwa.dot.gov/publications/publicroads/12mayjune/03.cfm

Further reading