CE 6050

Construction Cost Estimating

Introduction To Construction Management

By

Samer Alsharif Ph.D., PMP

Class Outline
• Construction Industry
• Project Management
• Construction Project Management
• Types of Construction Projects
• Construction Project Phases
• Project Controls Process
• Project Manager Role
• Project Team/Players
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 Construction Industry
• Construction and the ability to build things is one of
the most ancient of human skills
• Construction Industry is an important sector of
every economy
• Construction is the largest product based industry
in the United States ≈ $700 billion annually

Construction Industry
• Plans, designs, constructs, alters, maintains,
repairs, and eventually demolishes buildings of all
kind, civil engineering work, mechanical and
electrical engineering structures and other similar
work

• BLS: Construction is a good-producing industry

• Design (service), build (product)

• OSHA: Activities involving construction, alteration,

and/or repair

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 Construction Industry
• Construction industry:
 Activities: plan, design, construct, repair, alter, etc.

 Products: building, airport, road, bridge, etc.

• Construction is a high hazard industry that

comprises a wide range of activities

• Construction workers engage in many activities that

may expose them to serious hazards

What is a Project?
• Temporary endeavor
• Unique (product, service, or result)
• Definite beginning and end
• Progressive elaboration

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 What is a Construction Project?
• Temporary endeavor
• Unique (product, service, or result)
• Definite beginning and end
• Progressive elaboration
• Plans, designs, constructs, repairs, etc.

What is Project Management?

• Is the application of knowledge, skills, tools, and

techniques to project activities to meet project
requirements

• Application and integration of project management

processes
Initiating
Planning
Executing
Monitoring & Controlling
Closing

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 Construction Project Management

• Geography
• Site conditions
• Communities
• Physical environment
• Exiting infrastructure
• Risk
• Safety
• Stakeholders requirements Complexity !!!
• Disciplines integration
• Regulation, codes, standards
• Agencies, government, etc.

Construction Project Management

Project success: managing project’s constraints !!!

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 Construction Project Management

• Project success
starts with
SAFETY

• Complete
SAFELY project
scope on time
within budget
with high quality

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Types of Construction Projects

• Residential Construction
o Contractors, developers
o Custom homes
o Standard design & floor plans

• Commercial Construction
o Private owners, government
o Size: small, medium, large
o Cost: thousands to multimillion
o Megaproject $$$$

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 Types of Construction Projects

• Industrial Construction
o Hospitals, plants, refineries, etc.

• Heavy/Highway Construction
o Highways, dams, canals, bridges,
railroad, tunnels
o Owner usually government
agency

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Construction Project Phases

• Construction Project Phases and Project Lifecycle

• Initiation

• Conceptual / Planning

• Design / Engineering

• Construction

• Closeout

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 Construction Project Phases
• Construction Project Phases and Project Lifecycle

• Initiation
Owner:
 Business decision to start a project
 Secure funding

• Conceptual / Planning
Owner (Owner Representative)
 Study of alternatives
 Define scope
 Go / no go decision
 develop design RFP (Request for Proposal)
 Issue design RFP

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Construction Project Phases

• Construction Project Phases and Project Lifecycle

• Design
Owner (Owner Representative), Designer:
 Designer: decision to present design proposal
 Designer: prepare design proposal
 Owner: select design firm
 Designer: perform design (issue specs and drawings)
 Designer: develop construction RFP
 Designer: issue construction RFP

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 Construction Project Phases
• Construction Project Phases and Project Lifecycle

• Construction
Owner, Designer, Contractor
 Contractor: decision to present construction proposal
 Contractor: prepare construction proposal
 Owner/Designer: select successful bidder
 Contractor: on board, and perform construction
 Designer: oversee (quality Assurance / quality control)

• Closeout
Owner, Designer, Contractor
 Handover and closeout
 Contractor: provide warranties
 Designer: as built
 Owner: acceptance and final payments

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What is Project Controls?

• In construction project
 Time and cost (out of control)
 Independent but linked
 Schedule changes cost changes

To avoid such a disaster….

System to measure actual performance (time and cost)

against anticipated performance…
 Dynamic (throughout the project lifecycle)
 Reliable
 Timely

Time and Cost create the foundation of project controls

but not the only parameters….
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 What is Project Controls?
• The function of integrating schedule and cost data
to establish a baseline for monitoring, measuring,
controlling, and predicting project performance.
 Aspect of project management (on track, on time, within
budget)
 Effective communication
 Assists management decision making
 Performed by Project Manager or by discipline called
Project Controller/Controller

• Control systems
 Schedule
 Cost
 Contract
 Risk, Quality, Resources
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Project Controls Process

Create a
Plan

Corrective Measure
Actions Performance

Evaluate
Deviations

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 Project Manager Role

• Understanding and applying

knowledge, skills, techniques,
tools…is it enough?

• Construction
• Owner, contractor, designer, etc.
• Special skills:
 Leading: Project leader
 Communicating (≈ 90%)
 Negotiating
 Problem solving
 Area of expertise (constructability,
risk assessment, safety, etc.)
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Project Manager Role

• Directing Progress
• Execute per the plan
• Making decisions

• Directing Actions
• Minimize variances

• Controlling Results
• Right action/decision
• Strategy to control the impact

• Controlling Resources
• Efficiency
• Optimizing

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 Project Team/Players
• Owner
• A/E, Designer
• Constructor
 Project Manager
 Project Engineer
 Discipline Engineer
 Estimator
 Buyer (Supply Chain)
 Contract Manager/Admin
 Scheduler/Planner
 Financial Analyst (Cost Engineer)
 Safety Manager
 Administrative Support
 Consultant
 Construction supervisors
(superintendent)
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