Construction Methods

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Construction Methods ManagementCIEG 486-010
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Construction Methods ManagementCIEG 486-010

• Construction Managers must be both
• business and technically oriented

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Construction Education Options

• Education Format
• Traditional
• CEM
• BC
• CM

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Construction Education Options

• Engineering (civil or architectural)
• Specialization/area of concentration
• Curriculum Elective

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(No Transcript)
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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

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Construction Management Education

• National BCM Programs
• Georgia Tech
• University of Florida
• Purdue University
• Virginia Tech
• Auburn University
• Georgia Southern University
• University of North Florida

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Construction Education Options

• National CM Programs
• Arizona State University
• Florida International University
• Colorado State
• Clemson
• University of Washington
• Michigan State University
• Brigham Young
• Wentworth Institute of Technology

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Construction Education Options

• Graduate Construction Programs
• Stanford University
• University of Colorado
• University of Michigan
• Virginia Tech
• University of Southern California
• Arizona State University
• Florida International University
• Texas AM

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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

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Construction Methods ManagementCIEG 486-010

• B.S.C.M. Coursework
• Engineering subjects
• Strength of Materials
• Statics and Structures
• Soil Mechanics
• Steel and Concrete Design
• Surveying

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Construction Methods ManagementCIEG 486-010

• B.S.C.M. Coursework
• Business Management
• Accounting
• Economics
• Statistics
• Financial Mgt.
• Contract Law

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Construction Methods ManagementCIEG 486-010
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Construction Methods ManagementCIEG 486-010

• Licensing/Certifications
• Professional Engineers 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)

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Construction Methods ManagementCIEG 486-010

• Basic Skills needed by Construction Managers
• Estimating
• Computer
• Leadership/supervisory
• Communication writing and oral skills
• Negotiating
• Team Building

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Construction Methods ManagementCIEG 486-010

• Construction Management Functions
• Coordination
• Planning Scheduling
• Purchasing Expediting
• Supervision
• Cost Control
• Documentation and Reporting

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Construction Methods ManagementCIEG 486-010

• Construction Management Functions
• Quality Control/Quality Assurance
• Estimating
• Safety and Risk Management
• Contract Administration
• Claims Analysis/Avoidance

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Construction Methods ManagementCIEG 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

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Construction Methods ManagementCIEG 486-010

• Construction Engineering Functions
• Preparation and Review of Shop Drawings
• Constructibility Sequencing Studies
• Value Engineering
• Erection Diagrams and Procedures
• Survey Layout

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Construction Methods ManagementCIEG 486-010

• Executive Functions
• Corporate Management
• Strategic Planning
• Marketing Business Development
• Public Relations
• Labor Relations

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Construction Methods ManagementCIEG 486-010

• Executive Functions
• Ultimately responsible for quality, safety,
  production, and general financial health.

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Construction Methods ManagementCIEG 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

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Construction Methods ManagementCIEG 486-010

• Project Life Cycle

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Construction Methods ManagementCIEG 486-010

• Life Cycle of a Constructed Facility
• Concept and Feasibility
• Engineering and Design
• Procurement
• Construction
• Startup and Implementation
• Operation or Utilization

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Construction Methods ManagementCIEG 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

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Construction Methods ManagementCIEG 486-010

• 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

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Construction Methods ManagementCIEG 486-010

• 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

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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

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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

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Problems Facing the Construction Industry

• Government regulation
• Environmental constraints
• NIMBY syndrome
• Global competition

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Construction Methods ManagementCIEG 486-010

• The Blame Game

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Overview of the Construction Industry

• 10 of GNP
• Employs over 10,000,000 workers
• Annual Volume exceeds 800 billion
• Vital to the Nations economic health and quality
  of life

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Construction Methods ManagementCIEG 486-010

• Industry Divisions
• Residential Construction
• (Institutional Commercial) Building
  Construction
• Heavy Construction
• Industrial Construction

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Overview of the Construction Industry

• Industry Divisions
• Residential Construction
• (Institutional Commercial) Building
  Construction
• Heavy Construction
• Industrial Construction

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Overview of the Construction Industry

• Residential
• Types
• Single family houses
• Multi family dwellings
• High-rise apartments condominiums
• 30-35 of the industry
• Low capital and technology requirements

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Overview of the Construction Industry

• Residential (continued)
• Largely private
• Often speculative
• Developers surrogate owners
• Designed by architects, builders/developers

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Overview of the Construction Industry

• Building Construction
• Institutional and Commercial Construction
• Schools and universities
• Medical clinics and hospitals
• Recreational facilities and sports stadiums

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Overview of the Construction Industry

• 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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Overview of the Construction Industry

• Building Construction
• Institutional and Commercial Construction
• Churches and Synagogues
• Prisons
• Courthouses and other government buildings

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Overview of the Construction Industry

• Building Construction
• 35-40 of construction market
• Larger and more complex than residential
• Various owners (mostly private)
• Designed by architects and engineers

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Overview of the Construction Industry

• Heavy Construction
• Horizontal Construction
• 20-25 of the construction industry
• Mostly public financing or large consortium

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Overview of the Construction Industry

• Heavy Construction
• Highway Bridges
• Railroads Urban Transit Systems
• Tunnels and Dams
• Airports
• Canals
• Port harbor structures

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Overview of the Construction Industry

• Heavy Construction
• Pipelines
• Sewer Systems
• Water treatment distribution systems
• Power communication networks
• Landfills

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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

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Overview of the Construction Industry

• Heavy Construction
• Greatest impact on land and water
• High degree of mechanization
• Contracts awarded through competitive bidding

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Overview of the Construction Industry

• 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

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Overview of the Construction Industry

• Industrial Construction
• Petroleum refineries
• Steel mills aluminum plants
• Chemical processing plants

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Overview of the Construction Industry

• Industrial Construction
• Fossil fuel nuclear power plants
• Other heavy manufacturing facilities

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Overview of the Construction Industry

• 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)

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Overview of the Construction Industry

• 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

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Overview of the Construction Industry

• 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

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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• Owner
• Private or public
• Conceives the construction project
• Increasing level of sophistication

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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• 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

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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• 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

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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• 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

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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• Suppliers
• Manufactures, distributors, research, promotions
• Materials and equipment sales
• Equipment Rental
• Fabricators
• Structural steel, pre-castors, wood products
• Labor/Trade Unions

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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• Government
• Federal, State, local, and quasi-government
• Owner/client
• GSA, DOTs, School Districts, USACOE
• 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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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• Utility Companies
• 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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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• Industry Associations
• 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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Construction Methods ManagementCIEG 486-010

• Industry Associations
• Functions and services
• Industry information and communication
• Development and maintenance of standards
• Interindustry coordination
• Collective bargaining
• Statistics (market industry)
• Meetings and conventions

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Construction Methods ManagementCIEG 486-010

• Industry Associations
• Functions and services
• Public relations
• Joint industry promotions
• Management education
• Market development
• Apprenticeship training
• Legislative
• Government relations
• Product research

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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• Professional Services
• Business/management consultants
• Legal council
• CPA firms
• Surety Companies
• Financial Institutions/Lenders
• Insurance agents

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Construction Methods ManagementCIEG 486-010

• Participants in the Construction Process
• Adjacent Owners and the Public At-Large
• Existing businesses, institutions, and residences
  adjacent to the constructed facility
• Civic organizations and community groups
• Railroads and public lands

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Construction Methods ManagementCIEG 486-010

• Project Delivery Organization
• Construction by owners forces
• Owner-managed construction
• Construction by general contractor
• Design-build team
• CM Contract

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Construction Methods ManagementCIEG 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

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Construction Methods ManagementCIEG 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

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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

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Construction Methods ManagementCIEG 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 one-stop shopping for the owner
• Disadvantages include complexity of evaluating
  proposals

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Construction Methods ManagementCIEG 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

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Construction Methods ManagementCIEG 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
• CMs 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

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Construction Methods ManagementCIEG 486-010