Construction Methods & Management – Purdue University • Accounting

– Virginia Tech • Economics

– Auburn University • Statistics
Construction Managers must be both… – Georgia Southern University • Financial Mgt.
…business and technically – University of North Florida • Contract Law
oriented

Construction Education Options Licensing/Certifications

Construction Education Options • Professional Engineer’s License issued by
Education Format • National CM Programs
state or local governing board.
• Traditional – Arizona State University
• Certified Constructor issued by the
• CEM – Florida International University
American Institute of Constructors (AIC).
• BC – Colorado State
• Certified Construction Manager issued by
• CM – Clemson
Construction Management Association of
– University of Washington
America (CMAA)
Engineering (civil or architectural) – Michigan State University
• Project Management Professional (PMP) by
– Specialization/area of – Brigham Young
the Project Management Institute (PMI)
concentration – Wentworth Institute of Technology
– Curriculum Elective Basic Skills needed by Construction Managers
• Graduate Construction Programs – Estimating
Construction-Focused – Stanford University – Computer
Education
– University of Colorado – Leadership/supervisory
– University of Michigan – Communication = writing and oral
Applied Technology
or
– Virginia Tech skills
Civil
Professional Studies – University of Southern California – Negotiating
Architecture
Engineering – Arizona State University – Team Building
– Florida International University
CEM CM BCM
– Texas A&M

Construction Management Construction Management Functions

• Interdisciplinary Education • Coordination
School of Construction
• Practice rather than theory based • Planning & Scheduling
• Foundation of Business and Science Courses • Purchasing & Expediting
Construction Management Education
• Architectural & Engineering Coursework • Supervision
• National CEM Programs
• Core of Construction Management Courses • Cost Control
– Stanford University
• Documentation and Reporting
– University of Michigan
• Quality Control/Quality Assurance
– Virginia Tech B.S.C.M. Coursework
• Estimating
– Purdue University Engineering subjects
• Safety and Risk Management
– University of Illinois-UC • Strength of Materials
• Contract Administration
– Oregon State University • Statics and Structures
• Claims Analysis/Avoidance
– University of Colorado • Soil Mechanics
– NC State • Steel and Concrete Design
Additional Skills & Knowledge needed by
• National BCM Programs • Surveying
Construction Engineers
– Georgia Tech
• Surveying (GPS, GIS, Hydrographic)
– University of Florida Business Management • Structural Design
 • CADD/Drafting
• Specialization in Mechanical, Electrical,
Chemical, or Environmental disciplines
Construction Engineering Functions
• Preparation and Review of Shop Drawings
• Constructibility & Sequencing Studies
• Value Engineering
• Erection Diagrams and Procedures
• Survey & Layout
Executive Functions
• Corporate Management
• Strategic Planning
• Marketing & Business Development
• Public Relations
• Labor Relations
Executive Functions
• Ultimately responsible for quality, safety,
production, and general financial health.
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
Project Life Cycle
Life Cycle of a Constructed Facility
1. Concept and Feasibility
2. Engineering and Design
3. Procurement
4. Construction
5. Startup and Implementation
6. Operation or Utilization
What is Construction?
 Application of art and science
 Inherently dangerous
 Organized chaos
 Mankind using creativity, knowledge,
strength, determination, and persistence to
Residential
control his environment
• Types
– Single family houses
Construction differs from manufacturing in that:
– Multi family dwellings
• Not performed in controlled conditions,
– High-rise apartments &
therefore highly impacted by weather and
condominiums
other environmental conditions
• 30-35 % of the industry
• Seasonality
• Low capital and technology requirements
• Each project is unique
• Largely private
• Remotes sites with various access problems
• Often speculative
• Process is not as predictable
• Developers = surrogate owners
• Difficulty in applying automation
• Designed by architects, builders/developers
• High potential for encountering unforeseen
conditions
• Costs can vary according to conditions
Building Construction
• Difficult to manage and supply utilities and • Institutional and Commercial Construction
other resources. – Schools and universities
• Technical innovations are adopted slower. – Medical clinics and hospitals
• Success is dependent upon the quality of its – Recreational facilities and sports
people. stadiums
• Very custom-oriented – Retail stores and shopping centers
• Product can be of mind-boggling size, cost, – Warehouses and light manufacturing
and complexity – Office buildings (single story to sky
Problems Facing Construction Industry: scrappers)
• Highly traditional and fragmented; slow to – Hotels, convention centers, and
embrace new technology theaters
• Restrictive/outdated building codes • Institutional and Commercial Construction
• Labor agreements and craft jurisdictional – Churches
issues – Courthouses and other government
buildings
• Liability and legal considerations
• Lack of profit motive or other incentive
Government regulation • 35-40 % of construction market
•
Environmental constraints • Larger and more complex than residential
•
Global competition • Various owners (mostly private)
•
• Designed by architects and engineers
“The Blame Game”
Heavy Construction
• Horizontal Construction
Industry Divisions
• 20-25% of the construction industry
1. Residential Construction
• Mostly public financing or large consortium
2. (Institutional & Commercial)
• Highway & Bridges
Building Construction
• Railroads & Urban Transit Systems
3. Heavy Construction
• Tunnels and Dams
4. Industrial Construction
• Airports
• Canals • Type of work: new vs. • CM services including inspection and
• Port & harbor structures rehab/retrofit/restoration overall project or program management
• Pipelines • Contract type
• Sewer Systems 5. Suppliers
• Water treatment & distribution systems Participants in the Construction Process  Manufacturers,
• Power & communication networks 1. Owner distributors, research,
• Landfills • Private or public promotions
• Conceives the construction project  Materials and equipment
 Mass quantities of basic materials: earth, • Increasing level of sophistication sales
rock, steel, timber, and concrete 2. Designer  Equipment Rental
 Constructors need knowledge of engineering • Architects 6. Fabricators
and geology 1. Size of firms ranging from  Structural steel, pre-
 Engineers and builders are often specialized single practitioner to large castors, wood products
 Greatest impact on land and water integrated firms 7. Labor/Trade Unions
 High degree of mechanization 2. Mostly building and 8. Government
 Contracts awarded through competitive residential construction  Federal, State, local, and
bidding • Engineers quasi-government
1. Civil, mechanical,  Owner/client
Industrial Construction structural, electrical, 9. Utility Companies
• Very large scale projects chemical, environmental,  Electric, communications,
• High degree of technological complexity geotechechnical, and water, gas, sanitary sewer
• Designed and built by the largest firms with multidiscipline  Private petroleum pipelines
the highest level of technical sophistication  Owner or service provider
• Represent 5-10% of the market 3. General Contractor  Integral part of the
• Petroleum refineries • General contractor also called process
• Steel mills & aluminum plants “Prime” contractor  Existing facilities in
• Chemical processing plants • Specialty contractors working as conflict with new
• Fossil fuel & nuclear power plants subcontractors construction
• Other heavy manufacturing facilities • Organization ranges from small,  Interruption of service can
one-person company to large, be very costly
 Complex mechanical systems, process piping, integrated A/E/C firms
and instrumentation • Part of a design-build team 10. Industry Associations
 Civil, but also mechanical, chemical, and  Organizations of
electrical engineering disciplines involved 4. Construction Manager construction contractors
o Mostly private ownership (in Two principle divisions of CM  Organizations of the design
western countries • CM for Fee and management professions
(management services only)  Construction material and
Overview of the Construction Industry equipment suppliers and product
• CM At Risk
research
– Operates
Construction Industry is further subdivided  Construction labor
similarly to a GC or DB with no
into sectors or segments by: organizations
labor or capital equipment
• Public vs. private ownership/funding  Coordination and
• Can encompass the
• Union labor vs. open shop arbitration
management of the design process as
• Organization and method of project delivery  Inspection, specifications, and costs
well as construction
  Functions and services
• Industry information and
communication
• Development and maintenance of
standards
• Interindustry coordination
• Collective bargaining
• Statistics (market & industry)
• Meetings and conventions
11. Professional Services
 Business/management
consultants
 Legal council
 CPA firms
 Surety Companies
 Financial
Institutions/Lenders
 Insurance agents
12. 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
Project Delivery Organization
• Construction by owners forces
• Owner-managed construction
• Construction by general contractor
• Design-build team
• CM Contract
 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
 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
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
• Design-Build (Turnkey)
– Single firm or team responsible for
design and construction minimizes
coordination problems
– More efficient designs with the
interjection of constructability 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
• 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
 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
– CM’s 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