Construction Management & Engineering
CIEG 467-013
Construction Management & Engineering
CIEG 467-013
Construction Managers must be
both…
…business and technically
oriented
Construction Management & Engineering
CIEG 467-013
Construction Education
• Engineering (civil or architectural)
–Specialization/area of concentration
–Curriculum Elective
Construction Management & Engineering
CIEG 467-013
Construction Management
• Foundation of business and
science courses
• Architectural & engineering
coursework
• Core of Construction Mgt. Courses
Construction Management & Engineering
CIEG 467-013
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 Management & Engineering
CIEG 467-013
B.S.C.M. Coursework
Business Management
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Accounting
Economics
Statistics
Financial Mgt.
Contract Law
Construction Management & Engineering
CIEG 467-013
B.S.C.M. Curriculum Course Distribution
Business
15%
Engineering
(incl math &
science)
34%
Architecture
8%
Liberal Arts
13%
Construction
Mgt.
30%
Construction Management & Engineering
CIEG 467-013
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)
Construction Management & Engineering
CIEG 467-013
Basic Skills needed by Construction
Managers
– Estimating
– Computer
– Leadership/supervisory
– Communication = writing and oral
skills
– Negotiating
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Construction Management Functions
• Coordination
• Planning & Scheduling
• Purchasing & Expediting
• Supervision
• Cost Control
• Documentation and Reporting
Construction Management & Engineering
CIEG 467-013
Construction Management Functions
• Quality Control/Quality Assurance
• Estimating
• Safety and Risk Management
• Contract Administration
• Claims Analysis/Avoidance
Construction Management & Engineering
CIEG 467-013
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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CIEG 467-013
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
Construction Management & Engineering
CIEG 467-013
Executive Functions
• Ultimately responsible for quality,
safety, production, and general
financial health.
Construction Management & Engineering
CIEG 467-013
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 Management & Engineering
CIEG 467-013
Project Life Cycle
Construction Management & Engineering
CIEG 467-013
Life Cycle of a Constructed Facility
1.
2.
3.
4.
5.
6.
Concept and Feasibility
Engineering and Design
Procurement
Construction
Startup and Implementation
Operation or Utilization
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CIEG 467-013
What is Construction?
 Application of art and science
 Inherently dangerous
 Organized chaos
 Man using creativity, knowledge, strength,
determination, and persistence to control his
environment
Construction Management & Engineering
CIEG 467-013
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
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CIEG 467-013
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
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“The Blame Game”
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Industry Divisions
1. Residential Construction
2. (Institutional & Commercial) Building
Construction
3. Heavy Construction
4. Industrial Construction
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CIEG 467-013
Residential
•
Types
– Single family houses
– Multi family dwellings
– High-rise apartments
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30-35 % of the industry
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Low capital and technology requirements
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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
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Building Construction
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Institutional and Commercial Construction
– Schools and universities
– Medical clinics and hospitals
– Recreational facilities and sports
stadiums
Construction Management & Engineering
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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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CIEG 467-013
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
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Heavy Construction
•
Also referred to as “Horizontal Construction”,
“Heavy Civil Construction”, “Heavy
Engineering Construction”, “Infrastructure &
Heavy Construction” and “Heavy/Highway
Construction”.
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20-25% of the construction industry
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Mostly public financing or large consortium
Heavy Construction
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Highway & bridges
Railroads & urban
transit systems
Tunnels and Dams
Airports
Canals
Port & harbor structures
Heavy Construction
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Pipelines
Sewer Systems
Water treatment &
distribution systems
Power &
communication
networks
Landfills
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CIEG 467-013
Heavy Construction
•
Accounts for 20-25% of the
construction market
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Heavy public works projects
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Mostly public financing
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Owner is a governmental agency or
large consortium
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Heavy Construction
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Mass quantities of basic materials: earth,
rock, steel, timber, and concrete
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Constructors need knowledge of engineering
and geology
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Engineers and builders are often specialized.
Construction Management & Engineering
CIEG 467-013
Heavy Construction
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Greatest impact and manipulation of
land and water
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High degree of mechanization
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Contracts awarded through
competitive bidding
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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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Industrial Construction
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Petroleum refineries
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Steel mills &
aluminum plants
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Chemical
processing plants
Industrial Construction
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Fossil fuel & nuclear
power plants
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Other heavy
manufacturing
facilities
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CIEG 467-013
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)
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CIEG 467-013
Industrial Construction
•
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
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CIEG 467-013
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
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Participants in the Construction Process
1. Owner
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Private or public
Conceives the construction project
Increasing level of sophistication
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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
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CIEG 467-013
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
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CIEG 467-013
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 Management & Engineering
CIEG 467-013
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 Management & Engineering
CIEG 467-013
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
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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
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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
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10. Industry Associations

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
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10. Industry Associations

Functions and services
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Public relations
Joint industry promotions
Management education
Market development
Apprenticeship training
Legislative
Government relations
Product research
Construction Management & Engineering
CIEG 467-013
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
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CIEG 467-013
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
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Project Delivery Organization
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Construction by owners forces
Owner-managed construction
Construction by general contractor
Design-build team
CM Contract
Construction Management & Engineering
CIEG 467-013
 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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CIEG 467-013
 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
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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 employees 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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CIEG 467-013
 CM Contract -- Fee (management services
only) also referred to as “Agency”
– Specialized construction skills through all stages of
project
– 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
Construction Management & Engineering
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