Construction Site Management

Professor Rafael Romano Osuna January 2015

Outline

 Introduction
 Course objectives
 Syllabus
 Classroom rules
 Construction Management
 Project Life Cycle
Introduction
 About myself
Professional Background
Partner & New Business Development Director (2010 – to date)
Hermosillo y Asociados Arquitectos
Operations Director & Head of Mexico´s city office (2005- 2010)
Hermosillo y Asociados Arquitectos
Project Manager - Hermosillo y Asociados (2002-2005)
Project Manager, Sales Region Director, EHS supervisor, Blending Plant
Supervisor,
EXXON MOBIL (1995-1999)

Academic Background
MSc Environmental Engineering - Newcastle Upon Tyne University
MBA - ITAM
Bachelor of Civil Engineering - ITESM – MTY
About the rest of the team

a) Course expectations

Team organization
• 5 teams
Course Objectives
 ITESM - On completing the course the student will be familiar with and able
to carry out the control process of a public or private construction from the
builder's perspective.

 The aim of this module is to provide students with an understanding of how a

construction company is comprised, along with project management essential
tools and techniques.
 The origin of these tools and techniques;
 When and where they can be applied throughout a Project’s Life Cycle; and
 Their limitations.
Syllabus
 Syllabus
Classroom rules
 Punctuality
 Assistance will be taken 5 minutes after lecture starts. Owner of the
official Clock?
 No one will be allowed inside the classroom after this.
 You are only entitled to be absent twice during the semester.
 Three hour class with fifteen minutes break after 1.5 hours.
 No mobiles, NO IPads Punishment. Time will be added to the end of the class

 Always leave the classroom clean and in order. Clean the blackboard.
 No Food, No Drinks
 No rude games or playing inside the classroom
 Take care of the furniture, desk and appliances

 Last one to exit, shall turns off lights and close the door.
 Enchance respect, open communications and Gender equity
 Feel like to Sleep? At your house!
• BONUS POINTS- Read a BOOK!
• Bonus points in Partial Exams
• ERNEST HEMINGWAY: " ACROSS THE RIVE AND INTO THE TREES” , “A MOVEABLE FEAST”
• ANATOLE FRANCE: “LA ISLA DE LOS PINGUINOS”
• HARUKI MURAKAMI: “TOKIO BLUES”, “SOUTH OF THE BORDER, WEST OF THE SUN”
• MARIO BENEDETTI: «LA TREGUA»
• F. SCOTT FITZGERALD: «THIS SIDE OF PARADISE»
• Final Assessment
• Partial Exams (Period 1 and 2): 30% each (total 60%)
• Homework: 5%
• Team Presentation : 10%
• Quick Exams: 5%
• Final Exam: 20%

PARTIAL EVALUATION, 75% Exam, 5% Quick Exam, 5% Homework, 15%

Presentation
• Only 2 evaluations (2 periods)
• They are No changes in the Exams and Team Presentation Dates!
• If the overall group final average is above 90%, the final exam will not be
accumulative. If the group´s average is >85% the final exam will be semi-
accumalative (All the course subjects, except items already evaluated in partial exams). If the
Group´s average is <80%, the final exam will include 100% of the subjects.
• If a class needs to be reschedule, they will be on Saturday´s mornings from
7:30am a 10:30am
• Tutorials will be at 6:30pm Fridays @ Starbucks, you need to do appointment
by email (rafael.romano@hya.com.mx)
• Team Presentation
• 10 minutes per Team
• Powerpoint- present to classmates each subject
• IN ENGLISH
• Provide handouts (summary of important items)
• They will be part of the partial evaluation
• Presentation and Handouts should be loaded to the wiki-link class site
• Professor Evaluation 70%, Classmates Evaluation 30%
• Class web page: http://pbworks.com/
http://constructioncost.pbworks.com/w/page/84009334/FrontPage
You will recieved an invitation to join, please provide your personal email.
All questions should be posted in this blackboard. Answers will be given to all students
 • Secure Campus!
• SAFETY • Take care of your belongings
• Return lost things to PAQUETEC
• SAFE-TAXI- Request to guardhouse #5740, only authorize taxis

It is the • Always carry your ID Student Card

• Review access and egress roads.
responsability of • Use safe transport Bus (TransporTEC)
• No smoking- no Drugs
all of us!!!!!!! • Report abandoned bags or packages
• Know evacuations roads and points of reunion
• During earthquake, stay inside classroom. Leave room when finish
• Report any emergency or contingency to #911 o 5740
• In case of any disturbance or incident, please stay inside the
Classroom.
• All cars and bags are subject to inspection.

www.cem.itesm.mx/campus_seguro
1. Project / Construction Management
• What do you expect of this course?
 • TOTAL PROJECT CYCLE
Company

Customer
Guarantee
Period
Marketing

BID Contract Design Construction Close Out

Are all the activities that need to be done in order to execute properly a project,
starting with Marketing Strategies, Preparing a Cost Proposal, doing the Design
and Construction of the Project and lastly, repeating a future sale with the same
Customer.
Empresa

• MANAGEMENT of a CONSTRUCTION COMPANY

• Basic Management Concepts

• Types of Companies in Mexico- Commercial Company

• Creation of a Company - Types de Companies

• Mission, Vision, Values and Objectives

• Strength-Driver, how to differentiate from the competition?

• Departments, Define «roles» and responsibilities

• Management Style vs Human Resources

• Organization Chart

• Team´s Integration and Motivation

• Basic Management Concepts
• The main proposed of a business person is to create a stable
organization, with continuos improvement and everlasting over time.
• To create Job Opportunities for the Society

• Produce a good or service, seeking always for a PROFIT

• Increase the PRODUCTIVITY

• Should seek the following basic actions:

• Planning
• Organize
• Management
• Results Control
• Continuous Improvement
• Have social responsibility and involvement
• Be HONEST and have a code of ethics
• Management Basic Concepts

• Work load division

• Define the Roles y Responsibilities per each position
• Flow Diagram of each process

• Team´s Discipline and Unity

• Honesty

• Team´s Integration and y motivation

• Compensation
• According to Results and Productivity
• Milestones achieved

• Team work
• Open, complete and clear Communications
• Management Basic Concepts

• PLANNING
• Define the “reason to be” of the Company
• Nature and clear understanding of the scope of work to be done
• Values

• Establish Objectives and Goals

• Determine the results that need to be achieved
• Action plan and strategy
• Path to obtain the results
• Set a time schedule of when to achieve the results
• Do a budget!

• Establish Company´s policy

• Operation guideline and rules
• Ethical Standards and active involvement with Society

• Establish Company´s process

• Continuous Improvement, measurement of results and Tranning
• Clear and complete. NO SPACE for ERRORS
• PLANNING
• Intergration Function
• Determine the necessities, requirements and trainning needed to increase the productivity
• Proper Company´s induction to all employees
• Professional Opportunities and personal growth within the company
• Monetary and Non-Monetary Motivation
• Effective Communication at all levels

• Manager´s Profile
• Intellectual and Moral Virtue
• General Knowledge, technical experience
• Leader and an effective communicator
• MAIN ACTIVITIES
• REDUCE the RISK for the Company
• Assure to achieve the company´s goals and comply with the policy
• Review and assure the Quality in all stages of the project
• Prevent incidents, accidents and errors
• To motivate, integrate and enhance teamwork with all employees
• Increase the Productivity
• Comply with the Project´s agreements (contract)
• Learn to properly Delegate**
• Basic Parts of a Construction Company
• CUSTOMERS
• Offer quality products or services
• CAPITAL RESOURCES
• Know the financial limits
• Be Profitable- it is a business!!!
• HUMAN RESOURCES
• Maintain best Talent-Career Development-Continuous Trainning-Compensation
• FLEXIBILITY and be able to Colapse (reduce size when needed)
• ESTABLISHED PROCESS AND TECHNICAL KNOWLEDGE
• Increase Productivity, give the Value Added and differenciate your Company
• Control the Project Cycle Time: Time + Cost + Quality + Safety
• RISK CONTROL

• Priorities
• CUSTOMER SERVICE
• Cumply with the adquired agreement (CONTRACT)
• HUMAN RESOURCES
• Keep the best Talent, enhance team work and increase Productivity
• CAPITAL PROFITABILITY
• Get a better pay off then having the money in the BANK!
• Types of Companies (Mexico)

Ley General de Sociedades Mercantiles (1934)

• Protects partners and third persons.
• The Comany should be Register in the Public Records Office
• Has a Legal figure different than the Partners
• It Protects Partners if they are not guilty against any irregularity or harm done by others
• Not Guilty Partners can demand payment of any loss done by others
• Any Settlement will be limited to the company´s assets to pay any debts or any civil responsability
• The Partnership should be constituted before a Public Notary

The Company Deeds should have:

• Name, Nationality and official address
• Partnershipo Objectives
• Useful Life, Capital assets, Partners Contribution (indicating if it is of “Variable Capital”)
• How the Partnership will be Manage
• How to divide the profit sharing (positive or negative)
• The amount to have in the reserve fund.
• Partnerhip Breakup and settlement basis.
 • Types of Partnerships
• Sociedad de Nombre Colectivo
• Existe bajo una razón social y todos los socios responden de modo subsidiario ilimitado y solidariamente
• Se puede formar con el nombre de uno o más socios
• Los asociados no pueden ceder sus derechos sin el consentimiento de todos los socios
• Admisión de nuevos socios requiere consentimiento de todos los socios o si se dispone, con la mayoría
• Se permite la continuación de la sociedad con herederos
• Sociedad en Comandita Simple
• Existe bajo una razón social y se compone de uno o varios socios comandidatos que responden de una
Manera subsidaria, ilimitada y solidariamente de las obligaciones sociales.
• Es similar a la Sociedad de Nombre Colectivo, con la variante de la aparición de los socios comanditarios,
que Solamente se obligan hasta el pago de sus aportaciones.

• Sociedad de Responsabilidad Limitada

• Es la que se constituye entre socios que sólo están obligados al pago de sus aportaciones.
• Es una variante de la sociedad de Nombre Colectivo.
• Tendrá hasta 25 socios, capital no inferior a $5,000, y que en todo caso las acciones serán por $100 o
de un múltiplo de $100
• El aumento de capital social no podrá llevarse a cabo mediante suscripción pública.
• Asamblea de socios es l órgano supremo de la sociedad. Resoluciones se tomará en base a mayoría de
Votos de los socios que representen la mitad del capital social.
 • Tipos de Sociedades
• Sociedad Anónima**
• Existe bajo una denominación y se compone exclusivamente de socios cuyas obligaciones se limitan
Al pago de las acciones.
• 5 socios como mínimo, capital no menor a $25,000.
• Que exhiba el dinero en efectivo o cuando menos el 20% del valor de cada acción y el resto se garantice
Con bienes distintos del numerario.
• La ley permite que se pueda constituir por suscripción pública, es decir, permite subastar las acciones al
Público.

• Sociedad Cooperativa
• Pueden ser de crédito, de producción o de consumo, regidas por la legislación especial y a las cuales
No se les reconoce personalidad juridirica.

• Capital Variable
• También se le llama Capital Variable, a la parte del capital social (en las sociedades de capital variable),
que puede ser aumentada o disminuida con relativa facilidad y dentro de ciertos límites.

• En México, es un Régimen al que algunas sociedades están sujetas, el cual les permite, dentro de ciertos
límites, ya sea aumentar o disminuir con cierta facilidad su capital social.
 What should be the Mission of a Company?
It is the reason of why the company was create, the cause it exists.

Also are the company´s prime settings and the basic functions that it will perform in a
determine environment in order to achieve the proposed Mission.

A Mission can be defined as the:

• The Necessity to meet or satisfy
• The Customers to achieve,
• Products and Service to offer

The Characteristics that a Mission should have:

• Wide-extended
• Specific
• Motivating
• Achievable

http://www.trabajo.com.mx/mision_de_una_empresa.htm
 What should be the Visión of a Company?
It is defined as the road that a Company sets for the long term and acts as a lead

and incentive to guide in the strategic decisions for growth and competitiveness.

Key Question: “what and where do we want the company to be in the future?”

What should be the Values of a Company?

Defines the group of moral codes, beliefs and rules that govern the daily activities of an
Organization.

Constitute the institutional philosophy and a support to the organization´s culture.

The main objective in the definition of the Corporate´s values is to have a reference guide
that will inspire and regulate the daily activities of an organization.
http://www.crecenegocios.com/los-objetivos-de-una-empresa/
http://www.promonegocios.net/empresa/mision-vision-empresa.html
 What should be the objectives of a Company?
The objectives are the results that a company pretends to reach or the State to be achieve

It is escencial for a company to establish clear objectives, since they provide a path to follow
and help as an inspiring source for all the team members of a company.

Other Reasons?
• Help to focus all efforts to the same direction.
• Serve as a guide to elaborate the strategies and to assign the proper resources.
• Serve as a base to focus on the tasks and activities.
• Allow to evaluate the results, measure the efficiency or productivity of the company
• Helps on the coordination, to have order and control
• Helps to enchance involvement, commitment and personal motivation to all team
members,. When they are reach it produces a degree of satisfaction.
• Reveal priorities
• Produce team work (synergy)
• Reduces employees uncertainty or doubts about the future
http://www.crecenegocios.com/los-objetivos-de-una-empresa/
What are the Main Characteristics of an Objective ?

• MEASURABLE

• CLEAR- SIMPLE

• REACHABLE

• CHALLENGING

• CONSISTENT WITH THE VISION AND MISSION OF THE COMPANY

Homework 1: Pbworks: 3 examples of each of them (per team)

http://www.crecenegocios.com/los-objetivos-de-una-empresa/
EJEMPLO EMPRESA
CONSTRUCTURA
 Filosofía de empresa

Visión de la empresa

• Estar dentro de las primeras 5 empresas más sólidas de México en su ramo,

revolucionando el mercado para tener las fortalezas de una compañía grande,
combinadas con la agilidad, flexibilidad y el trato personalizado-humanizado de
una empresa pequeña.

• Ser la primera opción que los clientes potenciales consideren en sus proyectos.

• Trascender como empresa, pasando exitosamente por la transición de generaciones

fundadoras con liderazgo emergentes; creciendo ordenadamente, competitivos y flexibles
manteniendo la atención humanizada y personalizada a nuestros clientes.
 Filosofía de empresa

Misión

• Nuestra empresa tiene su razón de ser en el diseño y construcción de

infraestructura para la industria, el comercio y el turismo.

• Nuestra empresa trabaja con los más altos estándares de calidad y orientada
a las necesidades particulares de cada uno de sus clientes.

• Nuestra empresa esta comprometida con el desarrollo de sus colaboradores

y el respeto a su comunidad y al medio ambiente.
 Filosofía de empresa

Valores

Integridad, honestidad, lealtad y respeto. No hacer tratos dudosos, cumplir los compromisos
con nuestros clientes y colaboradores. Tener una conducta personal y grupal correcta de
acuerdo a nuestros principios y valores. Mantener intacto nuestro prestigio y honor.
Unidad, trabajo en equipo y mejora continua. El interés por el grupo esta por encima del interés
personal. Tener tolerancia, respeto y confianza entre los miembros del equipo para lograr la
sinergia. Responsabilidad, entrega y sacrificio en el trabajo cotidiano; sacrificio del bien presente
por el bien futuro mayor. Trabajo duro que combinado con la mejora continua nos lleve a ofertar
servicios de calidad.
Responsabilidad y justicia social. Formar profesionistas que aporten a la comunidad.
Ser recíprocos, solidarios y subsidiarios con nuestros colaboradores y nuestra sociedad.
Satisfacción del cliente. Flexibilidad y dedicación en la atención. Proporcionarles seguridad.
Ofrecerles lo mejor en tiempo, costo y calidad. Ganarnos su confianza creando un vínculo serio
y abierto. Comprensión; hacer nuestras sus necesidades, lograr atención personalizada y humanizada.
What is the Differentiation item of your company vs- the competition?
• Has to be unique (can´t be copied in the short term)
• Need to fully know the Competition (strengths, weakness)
• Need to know the necessities of the market (demand)
• Need to know and understand the virtues (strengths) and weakness of the service or
Product that your company is offering.
• The Service or Prouct to be offered should be EFFICIENT in Cost, Time and Quality
• Need to have solid experience performing an activity or offering the service or product

Will this Value Added be paid by the Customer?

• If they dont pay for it, then it is not a DIFFERENTIATED product or service!!!
• It has to be an innovative product or service

• At the end of the day, it is not only to comply with the agreement with the customer
(contract), we should be able to give the value added by providing a personalize and
Flexible service.
 Departaments- Define Roles and Responsibilities
Why are they so important to a Company?
• Decision Making efficiency
• Defines Limits
• Delegate
• Increase Productivity
• Reduces Risk
• Assign the best person for the right job!
• MEAN LEAN MACHINE- RESULT FOCUS!
• Reduces Errores, Increase Quality
• Enhance Team work
• Can use ISO9000 standard, but….
• It is recommended to do a flow diagram per process, identifying the main documents that
will impact Time or Cost
• All process should be able to be audit (change orders- Time, Cost, Change in Scope of work)
• Continually be revised and updated (avoid mistakes – market driven - Efficency)
• Should put together a Job description per position in the company

Flow Diagram ISO9000 Job desciption

Design Process Process
 Manager´s Style vs Human Resources
Why its so important?

• To have a committed team, efficient and focus to results

• Should be:
• Effective Communications (Clear, Honest, Constant, Verdadera-Constante-Serious)
• Proper compensation (Above Market´s average)
• Aligned with the Objectives
• Incentive/Motivation
• (Part of the Decision Making, Results driven, Enhance Ownership)

• Enhance Unity
• Team work!

• Commitment, Customer Service and Result focus

• TRANSMIT ENTHUSIASM
• POSITIVE INFLUENCE
 Manager´s Style vs Human Resources
Why its so important?

• Management is the sole responsible of the coordination of human resources and the
Company´s assets & resources, to idealy satisfy the customer (comply with contract!), the
Stock holder and all team members that are part of it (continous, long-lasting).

• The Executive (Director, Leader) shall be measure based on the RESULTS that are Achieve.

Only the Achieve Results will count, all leaders have two different simultaneous task to
face, one will be to conduct himself and the other to properly manage others.
Integration and Motivation
Why are they so important?
• Committed Team, efficient and result focus!

INVOLVEMENT–COMMUNICATIONS–INTEGRATION
What are the Enemies of Motivation?
• Exclude or treat badly the human resources
• Pressure them Excessively
• Accept Errors (twice!)
• Have Preference for a Department, Team or Person
• Not giving the Opportunity for Personal Development
• Manage by impulse or as a dictator
• Unreachable or not challenging Goals
• Not assigning the proper resources to be more Efficient
• Insufficient Rewards (Monetary or Non-Monetary)
• Not enhancing Team Work
• Not having Effective and Clear Communications
 Integration and Motivation
Why are they so important?
Recommended Activites to Integrate as a team?
• Comunicación efectiva
• Discriminate Against
• Get Together after hours (dont abuse!)
• Take a common cause as proper and give service as a team
• Enhance Honesty and Trust
• Avoid a division between departments (Budgeting-Design-Construction, Office vs Site
• Enhance direct and honest competition
• Enhance decision making by all team members
• Reward positive results Organizational
Climate Survey

• Proper relationship between Goals and Incentives

• Enhance Teamwork: Company, Area, Departament, Individual Results Organizational
Climate Survey
• Precise and Clear Feedback, given privetely at the moment.
• Periodical feedback review (360 degree feedback), based on competences 360 FeedBack
• PEERS + MANAGER + CUSTOMER + SUBORDINATE
• Organizational Climate Survey (Anually). Improve.
What are the different departments of a Construction Company?
1.1 Construction General Director

Company
Organizational Chart Office
Director “A”
Office
Director “B”
Marketing
Director

Control Construction Development

& Staff Manager Manager

Construction Project Cost / Estimate Procurement Control / Project

IT Manager Design Manager
Manager Manager Manager Engenieer

Human SuperIntendent Cost Assistant 1 Procurement

Residents Design Assistant Assistant 1 .
Resources Manager Civil & Structure Corporate purchases

Cost Assistant
Procurement Procurement
Assistant Cost Assistant 2
Comptroller REVIT Modeler Assistant 2
Design Assitant MEP
Site specific purchases
Control and H&S
LEED Assistant

Each Project *Each project would Mechanical Design

would have this have a different
structure
structure
1.2 Construction Operational IT
Company Assistant

Organizational Chart
IT Manager
SAP Manager

Human Resources Assistant A

(one per office)
Human Resources
Manager
Control
Payroll
& Staff

Treasury
IMSS
Controller
Controller Assistant A
Comptroller
(one per project)

Register Assistant 1
General Accounting
Register Assistant 2
1.3 Site Owner Project
Organizational Chart Manager

Construction
Construction
Manager
Project Manager

Project Manager General

Controller H&S Engineer
Assistant Superintendent

Scheduler Site Earthworks Paramedic /

Procurement Engineer Nurse

Estimating Accounting Electrical

Assistant Engineer H&S Assistant

Design Civil Works

Representative Engineer

Structural Steel
LEED Manager Engineer

Mechanical
Engineer