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Construction Management & EngineeringCIEG 467-013
Construction Management & EngineeringCIEG 467-013
Construction Managers must be both…
…business and technically oriented
Construction Management & EngineeringCIEG 467-013
Construction Education• Engineering (civil or architectural)
–Specialization/area of concentration–Curriculum Elective
Construction Management & EngineeringCIEG 467-013
Construction Management• Foundation of business and
science courses• Architectural & engineering
coursework • Core of Construction Mgt. Courses
B.S.C.M. CourseworkEngineering subjects
• Strength of Materials• Statics and Structures• Soil Mechanics• Steel and Concrete
Design• Surveying
Construction Management & EngineeringCIEG 467-013
Construction Management & EngineeringCIEG 467-013
B.S.C.M. CourseworkBusiness Management
• Accounting• Economics• Statistics• Financial Mgt.• Contract Law
Construction Management & EngineeringCIEG 467-013
B.S.C.M. Curriculum Course DistributionEngineering(incl math &
science)34%
Construction Mgt.30%
Liberal Arts13%
Business 15%
Architecture8%
Construction Management & EngineeringCIEG 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)
Basic Skills needed by Construction Managers
– Estimating– Computer– Leadership/supervisory– Communication = writing and oral
skills– Negotiating
Construction Management & EngineeringCIEG 467-013
Construction Management & EngineeringCIEG 467-013
Construction Management Functions
• Coordination• Planning & Scheduling• Purchasing & Expediting• Supervision• Cost Control• Documentation and Reporting
Construction Management & EngineeringCIEG 467-013
Construction Management Functions
• Quality Control/Quality Assurance
• Estimating
• Safety and Risk Management
• Contract Administration
• Claims Analysis/Avoidance
Construction Management & EngineeringCIEG 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
Construction Management & EngineeringCIEG 467-013
Construction Engineering Functions
• Preparation and Review of Shop Drawings
• Constructibility & Sequencing Studies• Value Engineering• Erection Diagrams and Procedures• Survey & Layout
Construction Management & EngineeringCIEG 467-013
Executive Functions
• Corporate Management
• Strategic Planning
• Marketing & Business Development
• Public Relations
• Labor Relations
Construction Management & EngineeringCIEG 467-013
Executive Functions
• Ultimately responsible for quality, safety, production, and general financial health.
Construction Management & EngineeringCIEG 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 & EngineeringCIEG 467-013
Project Life Cycle
Construction Management & EngineeringCIEG 467-013
Life Cycle of a Constructed Facility
1. Concept and Feasibility2. Engineering and Design3. Procurement4. Construction5. Startup and Implementation6. Operation or Utilization
Construction Management & EngineeringCIEG 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 & EngineeringCIEG 467-013
Construction differs from manufacturing in that:
• Not performed in controlled conditions, therefore highly impacted by weather and other environmental conditions
• Seasonality
• Each project is unique
• Remotes sites with various access problems
Construction Management & EngineeringCIEG 467-013
Construction differs from manufacturing in that:
• Process is not as predictable• Difficulty in applying automation• High potential for encountering unforeseen
conditions• Costs can vary according to conditions
Construction differs from manufacturing in that:
• 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:
• 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:
• Government regulation
• Environmental constraints
• NIMBY syndrome
• Global competition
Construction Management & EngineeringCIEG 467-013
“The Blame Game”
Construction Management & EngineeringCIEG 467-013
Industry Divisions
1. Residential Construction2. (Institutional & Commercial) Building
Construction3. Heavy Construction4. Industrial Construction
Construction Management & EngineeringCIEG 467-013
Residential• Types
– Single family houses– Multi family dwellings– High-rise apartments
• 30-35 % of the industry• Low capital and technology requirements
Construction Management & EngineeringCIEG 467-013
Residential (continued)• Largely private
• Often speculative
• Developers = surrogate owners
• Designed by architects, builders/developers
Construction Management & EngineeringCIEG 467-013
Building Construction• Institutional and Commercial Construction
– Schools and universities– Medical clinics and hospitals– Recreational facilities and sports
stadiums
Construction Management & EngineeringCIEG 467-013
Building Construction
– Retail stores and shopping centers– Warehouses and light manufacturing– Office buildings (single story to sky
scrappers)– Hotels, convention centers, and theaters
Construction Management & EngineeringCIEG 467-013
Building Construction• Institutional and Commercial
Construction– Churches and Synagogues– Prisons– Courthouses and other government
buildings
Construction Management & EngineeringCIEG 467-013
Building Construction
• 35-40 % of construction market• Larger and more complex than
residential • Various owners (mostly private)• Designed by architects and engineers
Construction Management & EngineeringCIEG 467-013
Heavy Construction
• Also referred to as “Horizontal Construction”, “Heavy Civil Construction”, “Heavy Engineering Construction”, “Infrastructure & Heavy Construction” and “Heavy/Highway Construction”.
• 20-25% of the construction industry
• Mostly public financing or large consortium
Heavy Construction
• Highway & bridges• Railroads & urban
transit systems• Tunnels and Dams• Airports• Canals• Port & harbor structures
Heavy Construction
• Pipelines• Sewer Systems• Water treatment &
distribution systems• Power &
communication networks
• Landfills
Construction Management & EngineeringCIEG 467-013
Heavy Construction
• Accounts for 20-25% of the construction market
• Heavy public works projects• Mostly public financing• Owner is a governmental agency or
large consortium
Construction Management & EngineeringCIEG 467-013
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.
Construction Management & EngineeringCIEG 467-013
Heavy Construction
• Greatest impact and manipulation of land and water
• High degree of mechanization• Contracts awarded through
competitive bidding
Industrial Construction• Very large scale projects• High degree of technological complexity• Designed and built by the largest firms with the
highest level of technical sophistication• Represent 5-10% of the market.
Construction Management & EngineeringCIEG 467-013
Industrial Construction
• Petroleum refineries
• Steel mills & aluminum plants
• Chemical processing plants
Industrial Construction
• Fossil fuel & nuclear power plants
• Other heavy manufacturing facilities
Construction Management & EngineeringCIEG 467-013
Industrial Construction
• Complex mechanical systems, process piping, and instrumentation
• Civil, but also mechanical, chemical, and electrical engineering disciplines involved
• Mostly private ownership (in western countries)
Construction Management & EngineeringCIEG 467-013
Industrial Construction
• Negotiated contracts are typical• “Turnkey” contract arrangements are
common• Design-constructor must be intimately
familiar with the technology and operations of the facility
Construction Management & EngineeringCIEG 467-013
Construction Industry is further subdivided into sectors or segments by:
• 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 Management & EngineeringCIEG 467-013
Participants in the Construction Process
1. Owner
• Private or public• Conceives the construction project• Increasing level of sophistication
Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
2. Designer• 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
Participants in the Construction Process
3. General Contractor• 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 Management & EngineeringCIEG 467-013
Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process4. Construction Manager
Two principle divisions of CM • 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 & EngineeringCIEG 467-013
Participants in the Construction Process
5. SuppliersManufactures, distributors, research, promotionsMaterials and equipment salesEquipment Rental
6. FabricatorsStructural steel, pre-castors, wood products
7. Labor/Trade Unions
Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process8. Government
Federal, State, local, and quasi-governmentOwner/client8 GSA, DOT’s, School Districts, USACOENon-ownership functions8 Taxation and regulation8 Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA),
FHWA, FAA, EPA, and several others8 State: DOL, DEP/DNREC, historic preservation (SHPO) 8 Local: County/City/Township Building Officials, Planning
Boards, and Zoning Commissions8 Quasi-government agencies: development authorities,
bridge and turnpike commissions
Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
9. Utility CompaniesElectric, communications, water, gas,sanitary sewerPrivate petroleum pipelines Owner or service providerIntegral part of the processExisting facilities in conflict with new constructionInterruption of service can be very costly
Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
10. Industry AssociationsOrganizations of construction contractorsOrganizations of the design and management professions Construction material and equipment suppliers and product researchConstruction labor organizationsCoordination and arbitrationInspection, specifications, and costs
Construction Management & EngineeringCIEG 467-013
10. Industry Associations
Functions and services• Industry information and communication• Development and maintenance of standards• Interindustry coordination• Collective bargaining• Statistics (market & industry)• Meetings and conventions
Construction Management & EngineeringCIEG 467-013
10. Industry AssociationsFunctions and services
• Public relations• Joint industry promotions• Management education• Market development• Apprenticeship training• Legislative• Government relations• Product research
Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process11. Professional Services
Business/management consultantsLegal council CPA firmsSurety CompaniesFinancial Institutions/LendersInsurance agents
Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process12. Adjacent Owners and the Public At-
LargeExisting businesses, institutions, and residences adjacent to the constructed facilityCivic organizations and community groupsRailroads and public lands
Construction Management & EngineeringCIEG 467-013
Project Delivery Organization
• Construction by owners forces• Owner-managed construction• Construction by general contractor• Design-build team• CM Contract
Construction Management & EngineeringCIEG 467-013
Construction employing owner forces– Usually small in-house construction or
renovations– Industrial projects or institutional (such as
hospitals or schoolsOwner-managed construction
– Residential/commercial building developers– Industrial or institutional
Construction Management & EngineeringCIEG 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
• Clearing and grubbing• Blasting/demolition• Electrical• Painting• HVAC• Environmental
remediation• Many, many others
Construction Management & EngineeringCIEG 467-013
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
Construction Management & EngineeringCIEG 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
Construction Management & EngineeringCIEG 467-013
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 & EngineeringCIEG 467-013
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