BUILD OPERATE TRANSFER

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CONSTRUCTION MANAGEMENT
ARE 413 CONSTRUCTION MANAGEMENT CLASS -2 By
MOHAMMED JALALUDDIN LECTURER CONSTRUCTION
ENGINEERING MANAGEMENT DEPT Handout 3
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Presentation Outline

• Construction Management Process
• Definition of Project
• Definition of Construction Management
• Basic Construction Management Philosophy
• Construction Management Levels
• Iterative process
• Time-Cost relationship
• Production curves
• Why Use Project Management
• Without Project Management
• With Project Management
• Major categories of Construction projects
• Residential
• Building
• Infrastructure and heavy construction
• Industrial

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Objectives of Class

• To define Project Construction Management and
  understand the different Construction Management
  Levels
• To understand the Construction Management
  Process philosophy goals.
• To define the four major categories of
  construction projects

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WHAT IS A PROJECT

• A project is an interrelated set of activities
• Temporary undertaking that results in a unique
  product
• Has set start and finish
• Requires resources to complete
• A time frame for completion
• Sequenced events
• The involvement of a cross-functional group of
  people
• Limited resources and budget

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Some Examples

• Constructing a building / dam / pipeline / road
• Redesigning the layout of a plant or office
• Relocation of a major facility such as a plant
  hospital or airport
• Organizing the Olympic games
• Planning a party or wedding

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Definition of Successful Project Management

• Within time
• Within budget
• At the desired performance / specification level
• While utilizing assigned resources effectively
• and efficiently.

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Construction Management Definition
The planning coordination and control of a
project from conception to completion on behalf
of a client requiring the identification of
client objectives in terms of quality time
cost and the establishment of relationship
between resources integrating monitoring and
controlling the contributors to the project
The figure illustrates graphically the definition
of Construction Management system
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Construction Management Levels
Four levels Organizational Level Legal
business structure various areas of
management and communication with field
managers Project Level Project activities
project cost and resource scheduling
Operation Level Construction technology (How
construction will be performed) Task
Activity breakdown (Task assignment to work crews)
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Construction Management Levels
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Construction Team Goals
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Construction Management Philosophy

• Basic Construction Management Philosophy
• PLAN COORDINATE/ORGANIZE AND CONTROL
• Also called Golden Rules of Construction
  Management

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Time-Cost Relationship

• Project costs start slowly but increase sharply
  once the project enters the construction phase
• Ability to influence decisions falls off sharply
  as time on the project passes

Influence/ Project cost
TIME
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Production Curve (s-curve)

• Projects build up slowly as workers and
  equipment are brought to the project and
  mobilized.
• Early on only a few activities may occur but
  once mobilization is complete work proceeds at a
  rapid pace until the end.

TIME
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• WHY USE PROJECT MANAGEMENT
• WITHOUT PROJECT MANAGEMENT
• WITH PROJECT MANAGEMENT

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WITHOUT PROJECT MANAGEMENT

• Resources - Ineffectively utilized
• - Not committed
• - Continuous reassignment
• Priorities - Unrecognized
• - Increasing backlog
• Planning Execution - Risks not assessed
• -- Uncontrolled change
• Timing Cost - Missed completion dates
• - Over expended budgets

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USING PROJECT MANAGEMENT

• RESOURCES
• Types and quantities required
• When and how long they will be needed
• Obtain commitments for their use
• Provides advanced planning for resource /
  facility availability
• Facilitate conflicts resolution regarding pooled
  resources

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AVAILABLE RESOURCES TO PERFORM WORK
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OVER STAFFING RESOURCES FOR CONTAINABILITY
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LEVELED RESOURCES BASED ON SCHEDULE
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Three Phases of Project Management

• PROJECT FORMULATION
• Project Decomposition(WBS Action Plan)
• Specification of Precedence Relationships
• Estimation of Activity DurationsCosts Resource
  Requirements
• Network Construction
• PLANNING AND SCHEDULING
• Computation of Each Activitys EST and EFT
• Computation of Each Activitys LST and LFT
• Computation of Slacks and Identification of the
  CP
• Scheduling of Activities

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List of Activities

• Description
• Building excavation area A
• Foundation area A
• Foundation walls area A
• Building excavation area B
• Foundation area B
• Foundation walls area B
• Backfill interior of walls
• Waterproof exterior walls
• Backfill exterior of walls
• Start mechanical/plumbing
• Slab rough in

Duration 10 9 8 8 7 8 5 1 2 4 3
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PRIORITIES
Critical Path Schedule with Logic
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PRIORITIES
Project Schedule with Resources and Baseline
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USING PROJECT MANAGEMENT

• PLANNING EXECUTION
• Provides a means to accommodate feedback
• Priorities and responsibilities are understood
• Risks are assessed and mitigation occurs
• Communicate work plans for first line supervision

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USING PROJECT MANAGEMENT

• DEVELOPMENT OF CASH FLOW
• Estimate durations of activities
• Estimate cost of activities
• Crew size performing work scope
• Crew wages Installation of Equipment

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Typical Cash Flow Diagram

Time
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USING PROJECT MANAGEMENT

• TIMING COST
• Updated projected completion dates and budgets
• Perform to meet delivery schedules
• Manage and control change
• Avoid penalties
• Project completed as planned

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PLAN/TARGET/BASELINE
Thousands
PLANNED
C 20000
C 20000
C 20000
C 20000
C 10000
C 10000
B
C
D
E
F
A
20
20
20
20
20
20
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SCHEDULE VARIANCE
Thousands
ProgressDate
PLANNED
PROJECTED EARNED
ProjectedSlippage
ScheduleVariance
EARNED
C 20000
C 10000
C 20000
C 20000
C 20000
C 10000
B
A
C
D
E
F
20
40
20
20
20
20
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COST/SCHEDULE VARIANCE
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Three Phases of Project Management-Continued

• MONITORING AND REPLANNING
• Monitoring of the Projects Activities
• Replanning of the Remaining Portion of the
  Project
• Is the revised estimate of projects shortest
  completion time acceptable
• Is there a need to allocate additional resources
  or shift resources from non-critical activities
  
• Monitoring and Controlling of Project costs.
  Budgeted vs. Actual Costs

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CONCLUSION

• Using Project Management allows the project team
  to
• identify potential problems before they occur
• plan for their solutions
• Resulting in
• Better planned and managed projects
• Finishing on time within budget
• Performing to acceptable quality standards

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Categories of Construction Projects

• Residential
• Building construction.
• Infrastructure and heavy construction
• Industrial
• Major differences exist
• In the way the projects are funded
• In the technologies involved
• And in the manner in which the designers
  builders and owners interact.

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Categories of Construction Projects
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Residential Construction

• Residential construction projects include the
  construction of individual homes as well as small
  condominium and apartment building complexes.
• Privately funded by individual owners for their
  own use or by developers for profit.
• This industry tends towards the use of fairly
  low technologies and requires little investment
  to enter.
• Such projects are typically designed by
  architects but in some cases a single home may
  be designed by the individual home owner or
  builder.
• The industry is characterized by large numbers
  of small designers and builders and suppliers

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Residential Construction
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Building construction

• Examples of building construction projects
  include office buildings large apartment
  buildings shopping malls.
• Projects such as these are designed by
  architects with engineering support and are
  generally built by general contractors.
• Most of these projects are privately funded
  though some projects like schools and city
  offices are publicly funded.
• The technical sophistication of building
  construction projects is greater than residential
  construction as is the investment necessary to
  enter.
• These factors provide for fewer players than in
  residential construction

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Building construction
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Infrastructure and heavy construction

• Some examples of infrastructure and heavy
  construction are roadways bridges dams and
  tunnels.
• Designed principally by civil engineers and
  built by heavy construction contractors having
  engineering backgrounds or support.
• These projects are usually publicly funded
• Long in duration and they involve the heavy use
  of equipment

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Infrastructure and heavy construction
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Infrastructure and heavy construction
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Industrial Construction

• Steel mills petroleum refineries chemical
  processing plants and automobile production
  facilities all serve as examples of industrial
  facilities.
• These projects are defined more by the production
  activities within the facility than by the
  facility itself.
• The design and construction is dependent on the
  needs of the process and production equipment.

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Industrial Construction
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CONCLUSION

• Using Project Management allows the project team
  to
• identify potential problems before they occur
• plan for their solutions
• Resulting in
• Better planned and managed projects
• Finishing on time within budget
• Performing to acceptable quality standards
• Categories of Construction Projects Residential
  Building construction Infrastructure and heavy
  construction Industrial

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Questions