7/29/2019 Financial Resources Construction management.docx

1/2

Financial Resources

The total funding available and the cash flow schedule affect projectdecisions.

Providing adequate financial support for initial activities (related toestablishment of project objectives and design criteria) is a critical step.

Inadequate capitalization can create adverse impacts (e.g. inadequatestaffing, delays in delivery, equipment failure, or shortages of construction

materials) that hamper a participants ability to deliver quality service.

In some cases, designers and/or contractors are able to enhance overallproject quality by offering the owner financial management and consulting

services.

On public projects, this may include assistance in determining agencyrequirements for grants and reimbursement.

On private projects, this assistance may include identifying new sources ofcapital or lines of credit.

Some contractors are willing and able to finance the entire project, whichallows the owner to wait until the project is ready to begin operating and

generating revenue before his or her own financial resources are

committed.

Construction Materials

The cost and availability of construction materials affect planning, designand construction operations.

Choosing the right construction materials is a critical process that, by itsnature must be undertaken early in the planning process.

The owner can benefit from the involvement of as many project teammembers as possible in the selection process.

Factors Affecting Material Selection

Type of soil conditions and foundation alternatives

7/29/2019 Financial Resources Construction management.docx

2/2

Aggregate sources for concrete Availability of fill materials Site conditions (urban vs. rural) Cost (including transportation) Sustainable development, legislative issues (Buy American, hire local, etc.)

Human Resources

In the initial stages of project planning, the owner should evaluate thehuman resources needed to complete the effort. Key factors are the

continuity of management staff and adequacy of the work force.

Staff continuity helps to enhance communication, builds better team workand compresses the learning curve. Local construction firms, labor unions, contractor associations should be

brought on board early to secure a skilled workforce.

To mitigate potential labor shortages, consideration should be given tomodifying projects, schedules, building systems (e.g. prefab) and initiate

additional training programs.

Site Development

Some site development activities may take place during planning anddesign phases-before completion of construction contract documents. Such

as:

Constructing access roads Extending utilities to the site Constructing temporary buildings and other facilities Setting up construction laydown areas and fabrication yards Planning for traffic control, developing traffic detours Relocating utilities, highways, rail, and other facilities