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Chapter 3 - Construction Managment
Chapter 3 - Construction Managment
CHAPETR III
CONSTRUCTION MANAGMENT
In this chapter the basics of project/project management and construction management and
their relation will discussed. Additionally one aspect of construction management namely
Resources Management focused on Human Resource management will be viewed.
A project is a unique process, consisting of a set of coordinated and controlled activities with an
assumed start and known finish dates, undertaken to achieve an objective conforming to
specific requirements including constraints of time, cost and resources.
Projects are understood to be parts of the main business of organizations with the following
identifying characteristics:
Among these characteristics, the first two are most acknowledged in several project
management literatures. For instance, PMBoK uses these two characteristics as the main
elements to define a project. However, it is also acknowledged that the degree of uniqueness
varies among different projects.
Three broad categories of projects can be identified (Dennis Lock, 1987) each with its own
characteristics:
A. Manufacturing projects,
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel
CEng 5604 – Construction Management Lecture Notes
A. Manufacturing projects:
In this category projects involve the following activities: original design work, prototype
testing, if necessary, manufacturing, assembling, and installation and commissioning.
Except installation and commissioning works, most of the activities are carried out under the
control of the manufacturer. Such projects are often made for a fixed price, promised delivery
dates, and a set of unambiguous data – specifications – that define the performance.
C. Management projects:
The employment of an external manager or managing teams offering services to organizations:
to ensure effective and efficient management system, to ensure efficient installation and startup of new
approaches, to follow projects of the above nature on behalf of clients and / or financiers, etc.
In project management the different constraints have been identified as the Triple Constraints
which are managing Quality, Schedule (time) and Cost simultaneously. Projects can better be
managed in ways that balance these constraints as shown in Fig. 3.1. But, overly emphasizing
one of these aspects may compromise another. Changing any of the three without adjusting
one or all of the others may affect the quality of the project outputs.
Quality
Balance
Time Cost
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel
CEng 5604 – Construction Management Lecture Notes
The construction industry by enlarge uses projects to accomplish its tasks. In due time
Construction Management developed as disciple from Project Management as a result of the
growing challenge to complete projects within the allocated budget, time and assumed quality
standard.
The Construction industry is the major and direct beneficiary of innovations from the field of
General and Project Management. For effective and efficient accomplishment of construction
projects and to increase their probability to success, project management concepts are
undoubtedly necessary. The Professional Construction Management (PCM) itself is young and
still is not widely assimilated into the construction industry.
A constant challenge faced by today's project management is change. On the one hand change
represents growth, opportunity and development, and yet on the other hand change represents
threat, disorientation, and upheaval. All management concepts would admit that there is no
single prescription or formula possible for successes of projects. However, by applying the
various new project management concepts, most, if not all, present problems can be solved.
Ensure that the production of construction works satisfy the client’s functional
requirements,
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel
CEng 5604 – Construction Management Lecture Notes
i. Planning
Planning is a function of devising the cause for the future with a vision, formulated for the
future state of the organization or the project. Planning also involves preparation of alternatives
for achieving specified objectives.
In preparation of plans the following questions should be addressed:
What to do?
How to do?
Where to do?
Who is to do it?
Degree of difficulty
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel
CEng 5604 – Construction Management Lecture Notes
ii. Organizing
Organizing is required to achieve effective utilization of the people, facilities, equipment and
money available to the Organization. Organizing also involves establishing a workable
organizational structure to divide the work into manageable department/sections and delegate
tasks accordingly.
iii. Staffing:
Staffing involves assigning (employing) people to fill the posts created within the organizational
structure. Staffing also involves matching the organization’s needs with each employee’s goals
and desires, and it requires adherence to equal opportunity regulations.
iv. Motivating:
Motivation can be defines as follows:
• Motivation is the internal or external forces that act on a person that arouse enthusiasm
and persistence to pursue a certain course of action.
Motivation is important in management of people because a motivated workforce will “go the
extra mile” to exceed performance expectations on the job. There are a number of theories
which formulate why people are motivated, from those Hertzberg’s two factor theory and
expectancy theory from content and process theories respectively are worth mentioning.
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel
CEng 5604 – Construction Management Lecture Notes
Expectancy Theory:
A person’s motivation is a multiplicative function of expectancy, instrumentality, and valence:
M=ExIxV
Motivation is sharply reduced when, expectancy, instrumentality, or valence approach zero and
Motivation is high when expectancy and instrumentality are high and valence is strongly
positive.
v. Communication:
Communication is a multifaceted management responsibility. Communication can be formal
and informal; it is both written and oral. It utilizes paper, telephone, face-to-face, and
electronic means. Construction Managers communicate goals and purposes; information,
instructions, and inducements. They also ensure that the messages are sent and received in
NB: - “People work for what you inspect, not for what you expect.”
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel
CEng 5604 – Construction Management Lecture Notes
Any Human Resource management has to be based on the existing Labor and other civil codes
related to worker’s right. Many construction projects face a challenge when it comes to labor
force management as they are not aware of the prevailing laws and decrees. The detail view of
labor management will presented as all construction projects and construction firms are
effective as long as there employees are effective.
Industrial relation: refers to all types of relationships between the parties concerned
within industrial undertakings including construction, agriculture, mining, commerce
finance, transport and other services
Labor relations: refers to the relationship between the labor union and management
To secure harmonious relations among all who are concerned with production and
operation process
To give workers their desired place by considering them as partners and associating
them with management
To give the workers their due share in profit, improve their working conditions and
their by eliminating the possibility Industrial unrest such as strikes, lockout etc.
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel
CEng 5604 – Construction Management Lecture Notes
Union Organizing
Collective Bargaining
B. Collective Bargaining
Collective bargaining is the phase that management representatives negotiate with union
representatives on terms of workplace. The end result of collective bargaining is the labor
agreement or contract.
Mandatory Bargaining Topics: Wages, Hours and Employment Conditions are usually
mandatory bargaining topics.
Wages: - Base pay rates, Overtime pay rates, Retirement benefits, Health benefits, Travel pay,
and Pay incentives.
Hours: - Overtime, Holidays, Vacation, and Shifts.
Employment Conditions: - Layoffs, Promotions, Seniority provisions, Safety rules, Work rules,
Grievance procedures, Union shop, and Job descriptions.
Collective bargaining requires negotiating skills such as the understanding of conflict and
conflict management. The principles of negotiation include:
To have patience
To empathize
To be flexible
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel
CEng 5604 – Construction Management Lecture Notes
It is advisable to follow the 9, 9 style for negotiation management. The (9, 9) style is table format
having nine grid lines and plotted on the X- and Y- axis where concern for employees is plotted
on the X- axis and concern for employers is plotted on the Y- axis as shown in Figure 3.2. The
aim to reach at the (9, 9) part and have a win/win result.
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JU, JiT, Department of Civil Engineering Instructors: Ashebir, Abay, Moges, Abel