Introduction

For many companies, the traditional organizational structure gives way to the modular
model. In this new structure, companies focus on what they can do best and outsource
many other tasks, such as accounting, operations, and human resources and so on. The
future organization, competing in the global environment needs to be lean and flexible.
One such strategy is to leverage its power by focusing on those function companies can
do best, and let the specializing suppliers do the rest.

The best contracting organization structure reflects a flat hierarchy. It is logical for a
successful construction contracting firm to have a lean and thin structure. The contracting
industry is an owner-operator one where the CEO or president needs to know most, not
less. Many levels ensure the owner knows less and what ever he is told is filtered by the
level who reported. Currently, delegating less is a new trend in every construction
business. It is a trend that allows for the owner to know more things, quicker and
therefore faster to act.

What is a modular structure?

Modular organization rely on outsourcing any or all non critical function i.e. which does
not affect the company’s long-term competitive advantages. Outsourcing enables
management team and yet achieves seemingly enact able goals. Such organizations keep
their core value chains in house, i.e. which add value to the company and stakeholders
and outsource any activities which are no value to its activities

Scope of work
The scope of work in order to construct a housing colony for an industrial group is as
follows –
 Grading and site preparation
 Foundation structure
 Excavation

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  Footing/foundation including reinforcement, shuttering, concreting, curing and de
shuttering.
 Pillars/columns (up to plinth level)
 Soil filling in trenches and compaction till ground level
 Plinth construction including reinforcement, shuttering, concreting, curing and de
shuttering.
 Pillars up to lintel level including reinforcement, shuttering, concreting, curing
and de shuttering.
 Lintel including reinforcement, shuttering, concreting, curing and de shuttering.
 Pillars up to roof level including reinforcement, shuttering, concreting, curing and
de shuttering.
 Soil filling and compaction till plinth level
 Roof slab including reinforcement, shuttering, concreting, curing and de
shuttering.
 Brick work and curing
 Ducts for electrical wiring
 Frames for doors and windows
 Plastering and curing
 Water treatment
 Floor/tiling
 Electrical wiring
 Water supply Sanitary and plumbing
 Doors and windows
 Painting
 Connections for electricity and drainage
 Fire protection systems
 Completion/occupancy certificate

Many of these steps are performed by independent crews known as subcontractors. For
example, the framing is generally done by one subcontractor specializing in framing,
while the roofing is done by a completely different subcontractor specializing in roofing.

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Each subcontractor is an independent business. All of the subcontractors are coordinated
by a contractor who oversees the job and is responsible for completing the house on
time and on budget.
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Functions include –
 Making the plan on which builders will work on
 Planning, designing, and overseeing all processes
 Assisting with managing all construction workers. 

 Meeting the contractors and designers for accurate scheduling, staffing, and cost
analysis. 
 Creating the progress and budget reports necessary to compute remaining
estimates
 Assisting with daily activities. 

 Making decisions to ensure quality is optimized and budgets are maintained.

 Ensuring all procedures is properly followed.

 Studying land surfaces, taking detailed measurements, and executing accurate

tests, which are all necessary for any construction project
 Directing all construction related functions,
 Following strict laws and guidelines, and also company procedures
 Training laborers on how to properly handle and dispose of hazardous materials
according to procedures and policies set by personal corporation regulations and
state laws. 
 Directing safety programs in an attempt to reduce any hazards or injuries possible
during and after the site’s construction. 
 Detecting failure - inspecting many final products to ensure excellence
 Ensuring quality products, design and implementing adequate procedures and
policies
 Ordering necessary materials and equipment for each project to ensure delivery
within the scheduled amount of time

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 Creating design evaluations and seeing to it that all projects are completed with a
specific time table and budget. 

 Coordinating all scheduling and communications that are necessary. 

 Scheduling plans deliveries, and organizing materials.

 Calculating the accurate amount of staff, material, and equipment necessary to
complete a project. 
 Monitoring costs and expenditures throughout projects

 Making decisions pertaining to production on a daily basis. 

 Overseeing all aspects of an entire housing contract,

 Maintaining schedules, production outlines, and deadlines for multiple sites. 

 Managing the activities of the workforce, material and equipment deliveries, as

well as keeping records of daily progress. 

 Through delays and peak times, maintaining an adequate amount of laborers, and
coordinating all activities among contractors accordingly. 

 In case of discrepancies, resolving the issues. 

 Maintaining numerous documents and contracts that must be properly maintained

before, during, and after the construction process,

 Coordinating the ideas of owners, contractors, and designers into clear

documents, so they must meet with each on a regular basis to ensure there are no
discrepancies. 

 Daily inspections and ensuring that plans are being properly executed. 

 Monitoring site progress to ensure schedules are being maintained. 

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Assigning responsibility

TASKS THAT HAS TO BE PERFORMED WHO PERFORMS

THE TASK
Measuring and laying-out site; calculating requirements; cutting Brick layer
and aligning bricks; applying and finishing mortar
Studying requirements; measuring site; setting forms; preparing Cement mason
grading and base

Establishing methods, procedures, sources, and models for Construction

analyzing construction cost information; verifying weekly accountant
critical path balancing; comparing construction budget with
variance calculations
Preparing residential closing work papers; completing monthly Construction
job closing routine; preparing financial statement data; Accounting
preparing sales commissions, overhead, and marketing journal Coordinator
entries
Completing building permit requirements; maintaining sub- Construction
contractor relationships; assigning project numbers; noting Administrative
phase completion dates Assistant
Establishing construction financial data methods, procedures, Construction Cost
sources, and models; collecting, tracking, and calculating cost Analyst
information; identifying and analyzing variances; maintaining
job cost system
Producing and improving architectural plans; reducing Construction Design
construction costs; resolving design and construction problems; Services Supervisor
resolving differences between designers and sales personnel
Operating computer-aided design system; forwarding blueprints Construction Design
to requesting parties; analyzing design options; evaluating Technician
construction
Establishing and enforcing purchasing policies; identifying Construction
resources; negotiating quality, delivery, and price agreements Director
and leases; maintaining ethical standards
Identifying suitable parcels and locations; negotiating Construction

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purchases; planning land development; developing building Division President
sites
Collecting and studying reports, maps, drawings, blueprints, Construction
aerial photographs and tests on soil composition, terrain, Engineer
hydrological characteristics, and related topographical and
geologic data; preparing engineering design and documents;
confirming specifications; inspecting construction site
Studying home plans; updating specifications; identifying and Construction
projecting costs for each elevation; costing changes, additions, Estimator
and site adjustment requirements
Studying blueprints; scheduling materials, equipment; preparing Construction
cost estimates; monitoring expenses Foreman
Assembling and disassembling scaffolding; checking schedules; Construction
determining materials requirements; locating, loading, Laborer
unloading, and moving materials.
Planning construction requirements; ; resolving land Construction
development issues; building quality homes Manager
Understanding and analyzing construction objectives; Construction
interviewing “people” who understand goals; studying position Operations Vice
and product statements; diagnosing/analyzing needs and President
requirements
Analyzing materials, supplies, tools, and equipment Construction Planner
requirements; requisitioning and approving purchase of
materials, supplies, tools, and equipment; providing project
estimates; monitoring project expenditures
Advising clients regarding project objectives and requirements; Construction Project
Directing development of, and verifying, project drawings, Controller
specifications, details, and budgets; controlling expenses;
guiding project operations
Interviewing customers; following warranty guidelines; Construction Quality
scheduling work with subcontractor; monitoring and evaluating Assurance
subcontractor work Coordinator
Recording surveys; tracking warranty claims; obtaining and Construction Quality
investigating complaints; compiling and updating customer Manager

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satisfaction information
Providing administrative services; representing builder; Construction
identifying and correcting customer complaints; resolving Secretary
warranty issues
Identifying new acreage; obtaining and analyzing development Construction
bids; determining development profitability negotiating land Services Vice
purchase; obtaining utilities President
Defining project purpose and scope; calculating resources Construction
required; establishing standards and protocols; allocating Supervisor
resources
Reading blueprints; estimating and ordering requirements; Dry-Wall Installer
measuring and laying-out reference lines; measuring, cutting,
fitting, and finishing dry-walls
Preparing bid documents and contracts; coordinating contract Engineering
execution; maintaining contract records; maintaining materials Construction
and sup preparing material bids Administrative
Completes construction projects by verifying estimates, project Engineering
drawings, and specifications; establishing and disseminating Construction Project
schedules; awarding contracts; obtaining tools and equipment Manager
Identifying suitable parcels and locations; negotiating Home Construction
purchases; planning land development; developing building manager
sites
Constructs pipeline by studying demand estimates; assessing Pipeline
Sites and watercourse crossings; preparing specifications and Construction
logistics; completing impact studies Manager
Laying-out project; gathering materials; preparing roof; Roofer
installing roofing
Developing staking sheets; completing and filing forms and Staking Aide
sketches; requesting payment of permit and easement fees;
defining staking requirements
Planning surveys; verifying construction location; defining lines Surveyor
and grades, typography, underground facilities, cut and fill;
providing maps, calculations, documentation, and illustrations
Training laborers on how to properly handle and dispose of Safety Supervisor
hazardous materials according to procedures and policies set by

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 personal corporation regulations and state laws. 
Direct safety programs in an attempt to reduce any hazards or Safety Director
injuries possible during and after the site’s construction
Studying blueprints; calculating requirements; measuring and Tile Setter
laying-out site; measuring, cutting, and attaching laths

Communication Flow
Communication planning pulls the project together. The communication plan should
outline:
• Who (lines of communication sender- and receiver-responsibility and authority)
• What (scope of communication and format)
• How (e-mail, document, telephone, meeting, presentation)
• When (schedule)
• Feedback (confirms message received and understood – document control)
• Filing (retrieval, storing, disaster recovery)

Formal communication
Communication flows in four directions: downwards, upwards, and horizontally and
laterally. The following figure shows the flow of communication in a construction firm.

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Downward communication starts at the top and flows down through the project levels to
workers. The major purpose of downward communication is to provide subordinates with
information on goals, strategies and policies. Downward communication is likely to be
filtered, modified, or halted at each level as managers decide what should be passed down
to employees.

Upward communication - When employees send a message to their superiors, they are
using upward communication. The main function of upward communication is to supply
information to the upper levels about what is happening at the lower levels.

Horizontal communication occurs between people on the same level of the hierarchy and
is designed to ensure or improve co-ordination of the work effort. It is formal
communication, but does not follow a chain of command. Effective horizontal
communication should prevent tunnel vision in the organization.

Lateral communication takes place between people at different levels of the hierarchy and
is usually designed to provide information, co-ordination or assistance to either or both
parties

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Informal communication
Informal communication, commonly called “the grapevine”, can begin with anyone in the
organization and can flow in any direction. The grapevine’s prime function is to
disseminate information to employees that is relevant to their needs.
In the construction industry, the following are informal communication methods:
• Regular contact
• Mind reading
• Motivation to speak

Project communication instruments

Project communication, is internal and external communication between members of an
organization at all levels in order to achieve a mutual goal or goals.

COMMUNICATION IN THE CONSTRUCTION INDUSTRY

• Communication is strategic – now more than ever. In an information-driven age,
communication is an integral part of the corporate strategy

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Figure 5. Importance of communication instruments used by professionals
Source: (University of the Free State, Department of Quantity Surveying and
Construction Management, 2007) (The ratings are: 1= low, 3= intermediate, 5 = high)

For each project, it is important that the project-related information is fully documented
to ensure that all the people involved understand what has and is happening. Each project
has a great deal of communication and documentation. With many projects using the
same communication instruments, over and over again, the running of the project will be
much easier and more understandable if communication instruments, -plans, -structure
and -flows are a standard process. Standardization will provide a system for effective
management that is not too complex, and may contribute towards the effective execution
and completion of a project.

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Organization Structure

Board of
directors

Chairman

Vice chairman
and Managing
Director

General Manager

Construction
manager

Project Manager
and contract
manager

Engineering
Manager

Since most of the departments can be outsourced, the structure will be a lean and modular
one. Human resources, marketing and legal departments can be outsourced. The contract
manager is responsible for handling all the subcontracts. thus the organizational chart
shown in the figure is a very lean one.

The sub junior level workers who can be temporary and locally recruited are –
 General construction workers
 Heavy truck drivers
 Mechanic and repair helpers
 Plumbers and pipe fitters
 Structure metal workers
 Blue – collar workers
 Supervisors
 Cement masons
 Construction helpers
 Construction and well drillers
 Line installers and repairers
 Material moving machine operators

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Number Of Personnel At Each Level

The following are the number of people required –

White collared workers – 100
Blue collared workers – 300

The break up will be as follows

BLUE COLLARED WORKERS
Job Title No. of workers
Brick layers 30
Cement Masons 30
Construction Foreman 36
Construction Laborer 100
Construction Supervisor 15
Dry-Wall Installer 2
Pipeline/ Plumber 10
Roofer 15
Staking Aide 20
Surveyor 2
Safety Supervisor 15
Tile Setter 15
Electrician 10

WHITE COLLARED WORKERS

Job title No. of workers
Construction accountant 3
Construction Accounting Coordinator 3
Construction Administrative Assistant 10
Construction Cost Analyst 2
Construction Design Services Supervisor 5
Construction Design Technician 15
Construction Director 1
Construction Division President 1
Construction Engineer 15
Construction Estimator 5
Construction Manager 3

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 Construction Operations Vice President 1
Construction Quality Assurance coordinator 3
Construction Quality Manager 3
Construction Secretary 1
Construction Services Vice President 1
Safety Director 3
Chief Operating Officer 1
Construction Project Manager 15
Account officer 4
Store Managers 5

The assumption taken here is that the bungalows are of around 3000 square feet and the
apartments are of 1000 square feet.

The number of people required in each department in a construction project varies with
respect to the area of the place as well as the cost and time. If the housing colony has to
be completed in a short span of time, then the number of workers required will be more
and the cost will increase. If the budgets are high then obviously, more labour can be
used to complete the work faster.

Recommendations –
Construction is a labour-intensive industry, which places heavy reliance upon the skills of
its workforce.
 In the construction sector, a very fast employment growth is expected.
Additionally, excellent job opportunities will exist as the number of job openings
exceeds the number of qualified applicants. Thus, the retention of good people is
very crucial

 Good manpower planning is necessary. Shortage of workforce results in delays

leading to a cost escalation.

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 Availability of workforce differs from region to region. Even the cost of man
hours is different in different places. Thus it is necessary to keep these factors in
mind before proceeding with the project.

 Pre-planning for the manpower should be done with a proper estimation of the
required personnel. This will be of great help to avoid labour related uncertainties.

 The structure of the firm should be such that the firm is able to focus on its core
activities and outsourcing is cost effective. Something that can be done by the
firm at a better quality and lower costs should not be outsourced unless a proper
strategy is in place for supporting the same.

 Communication is very important in construction sectors. Communication within

project-based environments presents special challenges. This is especially true
within the construction industry. Many of the problems that develop in
construction projects are a result of both the temporary and inter-disciplinary
nature of project teams - each player having a different employer compounds this
arrangement. Practical guidance should be provided on possible solutions to
communication problems

 Management should understand construction industry and realize the importance

of labour resource issues and the need for long-term planning of labour resource
requirements, so allowing them to train and retrain people to address the predicted
skill shortages.

 The construction industry is characterized by the predominance of migratory and

unskilled labour. Therefore, there is need to expand the training and skill
certification programs both in terms of content as well as geographical reach

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  Considering shortage of skilled employees in the labour market of the
construction industry and the reduction in the number of qualified workers, proper
forecasting of manpower should be done.

 Ways should be considered so that employee motivation can be improved by

making use of the principles of human resource management.

 Through the practice of the philosophies of strategic human resource

management, it is possible to develop a high level of consistency between
organizational and individual needs.

Thus, the success as a company is dependent on every person who works there. The
collective commitment of every employee to common goals and common values is what
makes the organization a leader in the industry. The firm should provide career
opportunities that offer current rewards in the form of comprehensive and competitive
compensation and benefits as well as meaningful advancement opportunities. It is
important to attract, develop and retain the most highly skilled workforce in the industry.
The company should have an excellent work force with a commitment to training and
development opportunities for employees in every position in the company.

Bibliography

1. Principles of Management – Koontz Ordeal – McGraw Hill Publications

2. Construction management in practice - By Richard Fellows, David Langford,

Robert Newcombe, Sydney Urry

3. http://www.ihireconstruction.com/constructionjobsggcon.asp

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4. http://en.wikipedia.org/wiki/Construction

5. http://www.b4ubuild.com/resources/schedule/6kproj.shtml

6. http://www.en.articlesgratuits.com/human-resource-planning-in-the-construction-
industry;-can-it-ever-work-id1139.php

7. http://www.cob.sjsu.edu/gilliss_d/Summer09/Pearce_11e/Chap011.ppt#277,22,Ty
pes of Boundaries

8. http://www.imsc.res.in/~sitabhra/papers/pan_sinha_pramana_08.pdf

9. http://scitation.aip.org/getabs/servlet/GetabsServlet?
prog=normal&id=JMENEA000022000002000089000001&idtype=cvips&gifs=y
es

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