Construction
Engineering 221
Introduction
Construction Engineering 221
Schedule
 Lots of reading (at first and keep up)
 May split class into two sections for
engineering economics and statistics,
pending students schedules
 Guest speakers
Construction Engineering 221
Get Involved
 Ask Questions
 Involve yourself in discussions
 Start discussions
 Share your education and experience
 Interact with the material, classmates,
instructors and with those in the
construction industry
 Develop a network of peers
Construction Engineering 221
RPQs
1.
Another name for the Prime Contractor is the General
Contractor.
A = True
B = False
2.
The United States has only one building code.
A = True B = False
3.
In the public arena, the contractor is almost always selected
by
A = negotiated contract
B = competitive bid
Construction Engineering 221
Construction Industry Overview
Construction Engineering 221
Today’s Topics
 Quick overview of “The Construction
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Industry”
Economic importance of Construction
The players and types of construction
Competitive vs. Negotiated
Methods of construction (fast-track)
Contract types (turnkey)
General Conditions and Building Codes
Contractor Organizations and Failure
Construction Engineering 221
“The Project”
 Each is unique
 Constructed to perform a function
 Personal tastes and preferences
 Tailored to suit its environment
 Complex (communicating an idea)
Construction Engineering 221
Why are projects complex?
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Extensive time and energy
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Very little automation (vs. manufacturing)
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Codes and standards
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Environment (weather)
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People intensive (relationships)
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Construction Engineering 221
And
Why are projects complex?
Communication
Communication
Communication
Construction Engineering 221
Economic Importance
 Great influence on nation’s economic
health
 Country’s bellwether industry
 Some facts and figure
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500 Billion in new construction
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80 % privately financed
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20 % publicly financed
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Construction creates 12 % of employment
Construction Engineering 221
The Players
 The Owner
 The Architect – Engineer
 The Prime Contractor – General Contractor
 The Subcontractor
Construction Engineering 221
Construction Categories
 Residential – homes, apartments,
townhouses
 Building – buildings other an housing
 Engineering – highway, heavy & utility
 Industrial – refiners, electric power plants
Construction Engineering 221
The Contract System
 Contract Choices – risk management
 Single General Contract or Separate Primes
 Prime Contractor selection
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Competitive Bidding
Negotiated Contract
Competitive Negotiation – Used by Dept. of Defense (US
Navy at Great Lakes Naval Training Station)
Construction Engineering 221
Contract Types
 Single Prime Contract
 Separate Prime Contracts
 Design-Construct (or Design-Build)
 Construction Management (CM)
 Design-Manage
 Construction by Force Account
Construction Engineering 221
Types of Construction
 Linear Construction
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Traditional method
Each phase finished before next one starts
 Phased Construction
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Also known as fast-track
Overlapping of design and construction
Redesign options to reduce cost are very limited
 The Team Approach
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Owner selects architect and contractor from the start
Work together as a team
Greatest opportunities to consider multiple design and
construction options to reduce overall project costs
Construction Engineering 221
General Conditions
 Common services on every job
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Temporary heat
Hoisting
Guardrails
Fire protection
Job fence
Job security
Trash disposal
 General Contractor responsible
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For themselves
And for subcontractors
Construction Engineering 221
Small and Disadvantages Business
Enterprises
 Assist economically & socially
disadvantaged contractors (D.B.E.)
 Programs include help for
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Small business enterprise (S.B.E.)
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Minority business enterprise (M.B.E.)
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Businesses owed by women (W.B.E.)
 Set – Asides: GOALS with minimums
Construction Engineering 221
Seasonality in Construction
 Total construction employment in this
country during a typical year will vary
approximately _____ from the summer
to the winter months.
a. 10%
b. 15%
c. 25%
d. 40%
Construction Engineering 221
Building Codes
 Protect the public health and safety
 Rules that control the design, materials,
and methods of construction
 Three model building codes
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Basic or National Building Code
Uniform Building Code
Standard Building Code
 Specialty Construction Codes
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National Plumbing Code
National Electric Code
Life Safety Code
Construction Engineering 221
Contractor Organizations
Construction Engineering 221
Failures in Construction
 The construction contracting business has
the second highest failure rate of any
business, exceeded on by ______________.
a. Convenience Stores
b. Gas Stations
c. Grocery Stores
d. Restaurants
Construction Engineering 221
Failures in Construction
 Why do Construction Companies fail?
1. Incompetence
2. Lack of company expertise in sales,
financing, and purchasing
3. Lack of managerial experience
4. Lack of experience in the firm’s line of
work
5. Fraud, neglect, disaster, or unknown
Construction Engineering 221
Summary
 Quick overview of “The Construction







Industry”
Economic importance of Construction
The players and types of construction
Competitive vs. negotiated
Methods of construction (fast-track)
Contract types (turnkey)
General Conditions and Building Codes
Contractor Organizations and Failure
Construction Engineering 221
See you tomorrow
Construction Engineering 221