Objective
Owner - identified the need
to
present
and
management of
fi eld construction projects
discuss
•
the
(during
the
cost,
time,
resources, and
project finance
1.2 The Construction Industry
•
•
•
largest single production activities
one of the largest employers
regarded as the bellwether of
economic growth
Major classifications of construction
•
•
•
•
•
housing,
nonresidential building,
heavy civil,
utility, and
industrial.
Contractors
•
•
involves the A&E design of the
entire project.
C. Procurement and Construction
moves toward conclusion with
substantial completion of the
project
Procurement refers to the ordering,
expediting, and delivering
Construction the process of physically
erecting the project and putting the MaE
1.5 Owner
- project financer
Public owners public bodies (federal
government, state, county, and municipal
entities) Public projects paid through bonds
or other form of financing
Private
owners
(individuals,
partnerships, corporations)
Public‐Private Partnership (PPP) used
to procure private financing for a public
project.
•
close management control
Management Techniques
construction process)
•
•
•
•
define the requirements
provide the budget constraints
B. Design
Required
•
-
1.6 Architect‐Engineer
design‐construct mode
Owner
specialty contractors
general contractors
1.3 The Construction Project
Are
undertakings
intricate,
time‐consuming
Subject to a procurement process
• All materials and installed
Equipment
Character of Construction Projects typified
by their complexity and
•
diversity and by the non-standardized
nature of their production
1.4 Project Stages
A. Planning and Definition
A-E
1.7 Prime Contractor
- a firm that contracts directly with the owner
responsible
---performance
--subcontractors & other third parties
1.8 Competitive Bidding
- the owner selects a contractor
1.9 Negotiated Contracts
- the contract is negotiated b/w owner and
contractor
1.10 Combined Bidding and Negotiation
best
value
combination
of
competitive bidding and negotiation
1.11 Subcontracting
hired
by
the
prime/general
contractor to subcontract a specialized job.
1.12 Design‐Bid‐Construct
design‐bid‐construct construction will
not start until the design is completed and
finalized
1.13 Fast Tracking
Fast
tracking
----overlapping
accomplishment
phased construction. ------ work packages
are put under contract
1.14 Construction Contract Services
include
construction,
designconstruct,
or construction management services
1.15 Construction Services
responsible only for a specific job
indicated in contract
1.16 Design‐Construct
owner hired a firm for both design
and construct
turnkey contract ---- includes
• land selection and acquisition,
project
financing,
project
equipage
procurement, and leasing of the completed
facility.
1.17 Construction Management
• achieving
high
quality
at
minimum cost
• does not include design or
construction services
Practiced in 2 variation
Agency Construction Management
manage the entire project
Construction Management At Risk
completing the job within the time frame and
cost stated
1.18 Fixed‐Sum Contract
requires the contractor to complete a job in
exchange for a amount of money
lump‐sum contract complete a amount of
work in exchange of single payment
unit‐price contract the amount of work is
determined/ based per unit
1.19 Cost‐Plus‐Fee Contracts
provide reimbursement to the
contractor and pay all construction cost and
services provided
the cost to the owner will not
exceed some total price.
1.20 Work‐by‐Force Account
The owner act as its own constructor
1.21 Turnkey and BOT Contracts
- Turnkey and build‐operate‐transfer
- The contractor is responsible for everything
(BOT) contracts provide a vehicle for
complete project delivery by the contractor.
turnkey arrangement the owner
provides the facility design requirements
to the contractor
BOT contracts are an extension of the turnkey
method.
1.22 Integrated Project Delivery
- shared by all stakeholders in the project.
All stake
holders
(AR,E,C, O)
1.23
Speculative
Construction
- Owners build structures for sale or lease
1.24 Management during the Design Phase
• meet the owner’s cost and time
boundaries.
• Estimates are made
1.25 Management of Field Construction
- owners have the option to choose what
type of project delivery system
1.26 Project Manager
- organizes, plans, schedules, and controls
all work of the project
- responsible overall
1.27 Project Manager Qualifications
• practical construction experience
• persons
with
expertise
and
experience
• ability to step back from day-to-day
details, anticipate what’s ahead
• strong interpersonal skills