Construction Methods & Management
CIEG 486-010
Construction Methods & Management
CIEG 486-010
Construction Managers must be
both…
…business and technically
oriented
Construction Education Options
Education Format
• Traditional
• CEM
• BC
• CM
Construction Education Options
• Engineering (civil or architectural)
–Specialization/area of
concentration
–Curriculum Elective
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
Construction Management Education
• National BCM Programs
– Georgia Tech
– University of Florida
– Purdue University
– Virginia Tech
– Auburn University
– Georgia Southern
University
– University of North Florida
Construction Education Options
• National CM Programs
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Arizona State University
Florida International University
Colorado State
Clemson
University of Washington
Michigan State University
Brigham Young
Wentworth Institute of Technology
Construction Education Options
• Graduate Construction Programs
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Stanford University
University of Colorado
University of Michigan
Virginia Tech
University of Southern California
Arizona State University
Florida International University
Texas A&M
Construction Education Options
Construction Management
• Interdisciplinary Education
• Practice rather than theory based
• Foundation of Business and Science
Courses
• Architectural & Engineering Coursework
• Core of Construction Management
Courses
Construction Methods & Management
CIEG 486-010
B.S.C.M. Coursework
Engineering subjects
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Strength of Materials
Statics and Structures
Soil Mechanics
Steel and Concrete
Design
• Surveying
Construction Methods & Management
CIEG 486-010
B.S.C.M. Coursework
Business Management
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Accounting
Economics
Statistics
Financial Mgt.
Contract Law
Construction Methods & Management
CIEG 486-010
Construction Methods & Management
CIEG 486-010
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)
Construction Methods & Management
CIEG 486-010
Basic Skills needed by Construction Managers
– Estimating
– Computer
– Leadership/supervisory
– Communication = writing and oral skills
– Negotiating
– Team Building
Construction Methods & Management
CIEG 486-010
Construction Management Functions
• Coordination
• Planning & Scheduling
• Purchasing & Expediting
• Supervision
• Cost Control
• Documentation and Reporting
Construction Methods & Management
CIEG 486-010
Construction Management Functions
• Quality Control/Quality Assurance
• Estimating
• Safety and Risk Management
• Contract Administration
• Claims Analysis/Avoidance
Construction Methods & Management
CIEG 486-010
Additional Skills & Knowledge needed by
Construction Engineers
• Surveying (GPS, GIS, Hydrographic)
• Structural Design
• CADD/Drafting
• Specialization in Mechanical, Electrical,
Chemical, or Environmental disciplines
Construction Methods & Management
CIEG 486-010
Construction Engineering Functions
• Preparation and Review of Shop
Drawings
• Constructibility & Sequencing Studies
• Value Engineering
• Erection Diagrams and Procedures
• Survey & Layout
Construction Methods & Management
CIEG 486-010
Executive Functions
• Corporate Management
• Strategic Planning
• Marketing & Business Development
• Public Relations
• Labor Relations
Construction Methods & Management
CIEG 486-010
Executive Functions
• Ultimately responsible for quality,
safety, production, and general
financial health.
Construction Methods & Management
CIEG 486-010
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
Construction Methods & Management
CIEG 486-010
Project Life Cycle
Construction Methods & Management
CIEG 486-010
Life Cycle of a Constructed Facility
1.
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5.
6.
Concept and Feasibility
Engineering and Design
Procurement
Construction
Startup and Implementation
Operation or Utilization
Construction Methods & Management
CIEG 486-010
What is Construction?
 Application of art and science
 Inherently dangerous
 Organized chaos
 Mankind using creativity, knowledge, strength,
determination, and persistence to control his
environment
Construction Methods & Management
CIEG 486-010
Construction differs from manufacturing
in that:
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Not performed in controlled conditions,
therefore highly impacted by weather and
other environmental conditions
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Seasonality
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Each project is unique
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Remotes sites with various access problems
Construction Methods & Management
CIEG 486-010
Construction differs from manufacturing
in that:
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Process is not as predictable
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Difficulty in applying automation
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High potential for encountering unforeseen
conditions
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Costs can vary according to conditions
Construction differs from manufacturing
in that:
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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
Problems Facing Construction
Industry:
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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:
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Government regulation
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Environmental constraints
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NIMBY syndrome
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Global competition
Construction Methods & Management
CIEG 486-010
“The Blame Game”
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
Construction Methods & Management
CIEG 486-010
Industry Divisions
1. Residential Construction
2. (Institutional & Commercial) Building
Construction
3. Heavy Construction
4. Industrial Construction
Overview of the Construction Industry
Industry Divisions
1. Residential Construction
2. (Institutional & Commercial)
Building Construction
3. Heavy Construction
4. Industrial Construction
Overview of the Construction Industry
Residential
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Types
– Single family houses
– Multi family dwellings
– High-rise apartments &
condominiums
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30-35 % of the industry
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Low capital and technology
requirements
Overview of the Construction Industry
Residential (continued)
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Largely private
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Often speculative
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Developers = surrogate owners
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Designed by architects,
builders/developers
Overview of the Construction Industry
Building Construction
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Institutional and
Commercial
Construction
– Schools and
universities
– Medical clinics and
hospitals
– Recreational facilities
and sports stadiums
Overview of the Construction Industry
Building Construction
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Retail stores and
shopping centers
Warehouses and light
manufacturing
Office buildings (single
story to sky scrappers)
Hotels, convention
centers, and theaters
Overview of the Construction Industry
Building Construction
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Institutional and
Commercial Construction
– Churches and
Synagogues
– Prisons
– Courthouses and other
government buildings
Overview of the Construction Industry
Building Construction
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35-40 % of construction market
Larger and more complex than
residential
Various owners (mostly private)
Designed by architects and engineers
Overview of the Construction Industry
Heavy Construction
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Horizontal
Construction
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20-25% of the
construction industry
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Mostly public
financing or large
consortium
Overview of the Construction Industry
Heavy Construction
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Highway & Bridges
Railroads & Urban Transit
Systems
Tunnels and Dams
Airports
Canals
Port & harbor structures
Overview of the Construction Industry
Heavy Construction
• Pipelines
• Sewer Systems
• Water treatment & distribution
systems
• Power & communication
networks
• Landfills
Overview of the Construction Industry
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
Overview of the Construction Industry
Heavy Construction
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Greatest impact on
land and water
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High degree of
mechanization
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Contracts awarded
through competitive
bidding
Overview of the Construction Industry
Industrial Construction
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Very large scale projects
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High degree of technological complexity
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Designed and built by the largest firms with the
highest level of technical sophistication
Represent 5-10% of the market
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Overview of the Construction Industry
Industrial Construction
• Petroleum refineries
• Steel mills & aluminum
plants
• Chemical processing plants
Overview of the Construction Industry
Industrial Construction
• Fossil fuel & nuclear power
plants
• Other heavy manufacturing
facilities
Overview of the Construction Industry
Industrial Construction
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Complex mechanical systems, process piping, and
instrumentation
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Civil, but also mechanical, chemical, and electrical
engineering disciplines involved
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Mostly private ownership (in western countries)
Overview of the Construction Industry
Industrial Construction
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Negotiated contracts are typical
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“Turnkey” contract arrangements are common
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Design-constructor must be intimately familiar
with the technology and operations of the facility
Overview of the Construction Industry
Construction Industry is further subdivided
into sectors or segments by:
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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
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
1. Owner
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Private or public
Conceives the construction project
Increasing level of sophistication
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
2. Designer
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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
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
3. General Contractor
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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
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
4. Construction Manager
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Two principle divisions of CM
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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
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
5.
Suppliers
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Fabricators
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Manufactures, distributors, research, promotions
Materials and equipment sales
Equipment Rental
Structural steel, pre-castors, wood products
Labor/Trade Unions
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
8.
Government
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Federal, State, local, and quasi-government
Owner/client
 GSA, DOT’s, School Districts, USACOE
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Non-ownership functions
 Taxation and regulation
 Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA),
FHWA, FAA, EPA, and several others
 State: DOL, DEP/DNREC, historic preservation (SHPO)
 Local: County/City/Township Building Officials, Planning
Boards, and Zoning Commissions
 Quasi-government agencies: development authorities,
bridge and turnpike commissions
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
9.
Utility Companies
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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
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
10. Industry Associations
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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
Construction Methods & Management
CIEG 486-010
10. Industry Associations
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Functions and services
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Industry information and communication
Development and maintenance of standards
Interindustry coordination
Collective bargaining
Statistics (market & industry)
Meetings and conventions
Construction Methods & Management
CIEG 486-010
10. Industry Associations
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Functions and services
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Public relations
Joint industry promotions
Management education
Market development
Apprenticeship training
Legislative
Government relations
Product research
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
11. Professional Services
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Business/management consultants
Legal council
CPA firms
Surety Companies
Financial Institutions/Lenders
Insurance agents
Construction Methods & Management
CIEG 486-010
Participants in the Construction Process
12. Adjacent Owners and the Public AtLarge
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Existing businesses, institutions, and
residences adjacent to the constructed
facility
Civic organizations and community
groups
Railroads and public lands
Construction Methods & Management
CIEG 486-010
Project Delivery Organization
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Construction by owners forces
Owner-managed construction
Construction by general contractor
Design-build team
CM Contract
Construction Methods & Management
CIEG 486-010
 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
Construction Methods & Management
CIEG 486-010
 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
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Clearing and grubbing
Blasting/demolition
Electrical
Painting
HVAC
Environmental
remediation
• Many, many others
Construction Methods & Management
CIEG 486-010
 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 “onestop shopping” for the owner
– Disadvantages include complexity of evaluating
proposals
Construction Methods & Management
CIEG 486-010
 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
Construction Methods & Management
CIEG 486-010
 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
Construction Methods & Management
CIEG 486-010