UNIT – I

Overview of Construction
Sector
⚫ Construction management

⚫ Construction management is the overall planning,

coordination, and control of a construction
process from the start to the end. 

⚫ There are few types of construction that use

construction management, they are industrial, civil,
commercial, environmental and residential.

⚫ Each category has its own way of running projects,

but all will follow the construction management
methodology.
⚫Role of Construction Management

Now a days technological advancement and new scientific

inventions have added new dimensions to the construction
industry.

A project is now considered as a group of activities having

interrelations.

which may include the role of specialist and specialized work

using the latest knowledge and skill available.
CPM & PERT are some of the modern systematic techniques
used to control the activities within the period at a certain
cost.

New techniques and methods are now adopted in construction

with the aid of these plants and machinery to make
construction easier, well within time schedule of high quality.

The application of these construction management techniques

which are used in plants and machinery for finding alternative
solutions and selecting the best possible solutions.
Importance of Construction Management
⚫ Effective Project Management
⚫ Reduces Delays Improving Efficiency
⚫ Ensure Project Stay In Budget
⚫ Improve Communication
⚫ Ensure Quality Control
⚫ Avoid Disputes and provide solution
Today, India is the second fastest growing economy
in the world. Construction has become the second
largest economic activity after agriculture.

Construction accounts for nearly 65% of the total

investment in the infrastructure & is expected to be
the biggest beneficiary of the flow in infrastructure
investment over next 5 yrs.
 ⚫ Role of construction industry in infrastructure
development

⚫ The industry is a distinct sector of the economy which

makes its direct contribution to economic growth like all the
other sectors such as agriculture, manufacturing and
services. 
⚫ The construction industry has laid down the physical and
technological foundations upon which modern civilization
has developed.
⚫ It also creates investment opportunities across various
related sectors and vital to the achievement of national
socio-economic objectives.
⚫ Construction plays a Important role in the growth of the
economy as a basic infrastructure facility.

⚫ increase in the level of construction activity will increase the

GDP and have a positive influence on employment, and
public income.
Employment generated in construction also significantly helps
the rural population.

According to 1971 , about 51% of the construction workforce

comes from rural area and 49% from urban and semi urban
areas.

The sector accounts for about 38% of gross investment and

about 45% of India’s total infrastructure costs.
What is Infrastructure-
⚫ Infrastructure is defined as the basic physical systems of a
business, region, or nation and often involves the production
of public goods or production processes.
1.Power:

⚫ India is the third largest producer of electricity in the world.

⚫ The national electric grid in India has an installed capacity of

393.389 GW as of 31 December 2021.

⚫ The Government of India has set a target of installing of

installing 175 GW of renewable energy capacity by the year 2022,

which includes 100 GW from solar, 60 GW from wind, 10 GW from

bio-power and 5 GW from small hydro-power.

⚫ Renewable power plants, which also include large hydroelectric

plants, constitute 37% of India's total installed capacity.

2. Roads:

(November, 2021) India has the second-largest road network

in the world, spanning a total of 5.89 million
kilometers (kms).

This road network transports 64.5% of all goods in the

country and 90% of India's total passenger traffic uses road
network to commute.

⚫ Road Transport and Highways has completed 1,41,190

km of National Highways as on 31st March 2022 out of
the set target of 2,00,000 km for 2024-25," 
⚫ The Ministry of Road Transport and Highways is
committed to expanding the National Highway
(NH) network across the country with an aim of
constructing 18,000 kilometres of National
Highways in the financial year 2022-23.

⚫ This target would be achieved at a record speed of

50 kilometres per day, the ministry said.
⚫ Length of national highways in India
from financial year 2003 to 2021(in
kilometers)
3. Railways:
Indian Railways (IR) is a government-owned-railway system
 under the ownership of Ministry of Railways, 
Government of India that operates India's national railway system

It manages the fourth largest national railway system in the world

by size, with a total route length of 67,956 km  as of 31 March
2022.

6853 stations, 300 yards ,2300 Good sheds, 700 Repair shops
make the rail network largest in Asia and second largest in world.
4.Ports:
13 major ports and 187 minor ports along
7517km long Indian coastline.
traffic movement at India's major ports
rises 7% in FY22
5. Airports:
Airports Authority of India (AAI) manages a total of 137
Airports, which includes 103 Domestic Airports, 24
International Airports, and 10 Customs Airports.
⚫Nature of Construction Industry
The construction industry is divided into three major
segments

1.Construction of building contractors, or general contractors,

build residential, industrial, commercial and other buildings.

2. civil engineering construction build sewers, road, highways

etc.

3. Specialty trade contractors are engaged in specialized

activities such as carpentry, painting ,plumbing and
electrical work.
⚫Classification and Types of Civil Engineering
Works:-
Minor works, Major works and Project

a)Minor works – When the cost of the construction work is less

than 20,000rs/- it is classified as a “minor work”

b)Major work – When the cost of the construction work is

between Rs.20000/- to 1lac, it is treated as a “major
construction work”

c) Project: The construction work which cost more than 1lac, are
called projects.
⚫Project management
Consultant
 (Client )PMC

PMC-I PMC-II
(From Beginning to Completion ) (Till Tender Flash )

Tendering Drawing
Execution Tender Document
Site BOQ
Contractor Work Checking Tender Release
Bill
Quality Work

PMC Charges (Client)

According to BOQ Amount (Bill of Quantity)
Ex. Project BOQ=100Cr. 5% amount charge by client to PMC = 5Cr. (PMC do the work from
beginning to completion )
 Contractor PMC
PMC-I PMC-II
( Beginning to Completion) ( section of Work )

⚫ Execution Ex. Scheduling

⚫ Scheduling Time Frame
⚫ Bill Controlling
⚫ Management Monitoring
⚫ Vendor selection
⚫ BBS
⚫ RA Bill

Sub contractor
A subcontractor is someone who gets their work from a contractor.

⚫ Charges of PMC (Contractor)-

(Charges Apply According to Contract value).
⚫ Example - Project Value 100Cr
⚫ Contract Value – 98Cr
⚫ PMC Amount 10% of Contract Value
Contractor will pay 9.8 Cr to PMC
⚫   Project Management Consultants

⚫ The construction industry generally deals with the various types of

construction sectors Real Estate & Infrastructure.

⚫ Real Estate Sector is segmented in Residential, Industrial, Corporate, and

Commercial.

⚫ Whereas Infrastructure sector in Roads, Railways, Urban Infrastructures,

Ports, Airports and Power. 
 
⚫ To manage such kind of unique projects requires an expertise with
organizations and a thorough body of knowledge.

⚫ Project Management Consultancy plays multifaceted part in such projects

and provides the services from inception to completion of projects.
⚫ 
⚫ Use of Project Management Consultancy (PMC) offers
one of the effective management solution to increase and
improve the efficiency and outcome of a project in
construction. 

⚫ Project Management Consultants manage the Project

by application of their Knowledge, Skills, and Experience
at various stages.

⚫ However, at the same time PMC also has to face various

challenges like Design Issues, Constructability Issues,
Long lead material Issues, Contractor Coordination
Issues, Engineering Issues, Safety Issues, etc which can
be tackled only by a well organized approach of the
PMC. 
Project Management Consultant Skills
⚫ Proficiency in 
project management tools and software.
⚫ Strong leadership and motivational skills
⚫ Experience in leading both virtual and physical teams
⚫ Excellent time and cost management skills
⚫ Deep organizational knowledge
⚫ Superb problem-solving and resource planning skills
⚫ Expertise in creating project reports
⚫ Efficiency in managing and prioritizing tasks 
⚫ First-class verbal and written communication skills
⚫ Selection of PMC-
⚫ Experience- PMC should have at least 10years of
experience in execution of same level project through
managerial level .

⚫ Consultant role determination .

⚫ Financial Background: It’s essential that the PMC selected

has a self-sufficient financial background.

⚫ In the construction industry often cash flows are found to be

a barrier in efficient delivery. 
⚫ Evaluation of proficiency on the basis of
work proposal

⚫ Negotiation on terms and condition .

⚫ Appointment
⚫ Project overrun:
⚫ Project overrun, or project cost overrun, is a
situation that occurs when the project's actual
cost exceeds the initial budget.

⚫ The mean that a shortfall of budget that occurs

in a result of unexpected cost .

⚫ Underestimation of project costs, Uncontrolled

scope changes, Project execution failures,
Errors in project design.  
Reason behind project overrun
1.under financing
If the project is not allocated with an adequate amount
of budget at the start it will lead to either budget
overrun or failure.

2. Unfeasible cost estimation.

If the cost calculation dine on the basis of guess and is
carried by inexperienced or unqualified employees
the the project is unexpectedly going to face budget
overrun.
3.Underestimating the project complexity-
Large projects contain more number of activities
and they are usually at risk of overrunning.

4. Prolonged project Schedule-

If the project is not on schedule and due to
uncertainty if project schedule is extended that
automatically reflects on time and money.
⚫ 5 .lack of backup plan
⚫ 6 lack of resource planning.
⚫ 7.poor performance.
⚫ How to Tackle Overruns-
⚫ 1. A good project plan supported by a time schedule
of activities and resources- multidisciplinary project
organization.
⚫ 2.model of the project and key activities and
milestones of all phases should be contained by first
level plan .
⚫ 3.pay a lot of attention to project planning
⚫ 4 also we can use right software.
⚫ 5. Use good scheduling tools & charts.
⚫ Project monitoring & Reporting System.
1)Project monitoring
The monitoring process performed to observe project
execution so that potential problems can be identified in timely
manner an corrective action can be taken .

To control the execution of the work.

Monitoring is continuous process of evaluating the status of

project execution in relation to the approved work plan.

Improve performance and attain results.

⚫ Project monitoring is the process of keeping a close eye on
the entire project management life cycle and ensuring
project activities are on the right track.

⚫ The information collected through monitoring reveals gaps

or issues, which require resources to address.

⚫ Without M&E, it wouldn't be clear what areas need to be a

priority.

⚫ Resources could easily be wasted in one area that isn't the

source of the issue.

⚫ Monitoring and evaluation helps prevent that waste.

⚫ There are several types of monitoring in M&E and
they include process monitoring, technical
monitoring, financial monitoring and impact
monitoring
⚫ Most project reports will compare actual effort against the
planned effort in order to keep the project on financial track
and aligned to its schedule.

⚫ They help to control cost and keep to your budget, monitor

team performance and increase visibility into the project for
greater insights in managing them.
⚫ Good monitoring system consists of following
process-
⚫ 1.project manager has to focus on results and follow-
ups.

⚫ 2. There should be regular communication between

project coordinator & Manager.

⚫ 3 There should be regular analysis of report.

⚫ 4. Through Monitoring tools , adapting strategies

accordingly and avoiding repetition documents.
Important Content
⚫ Report must contain relevant data to the control of specific
tasks that are being executed according to specific schedule.

⚫ A report is an official record of a given period in the life of

project that present a summary of project implementation &
performance Reporting.

⚫ The project issue regular report on progress against budget

overrun , schedule & scope.
⚫ Variable are used for tracking in project
Monitoring process-
⚫ 1) schedule- It consists tracking of the
estimated effort and duration versus the actual
effort and duration.

⚫ 2) cost – It consists tracking of the estimated

cost v the actual cost.

⚫ 3) Deliverables- It consists of tracking of what

products of project have been delivered and
plan to be delivered.

⚫ 4. Quality- It consists of tracking the quality of

the deliverables being completed.
Project reporting System –
⚫ A project report is simply a document that provides detail on the overall
status of the project or specific aspects of the project’s progress or
performance.

⚫ Project reporting is essential to project management success since it

provides a window into what’s happening and what to do about it for the
entire team.

⚫ These are important tools of communication to stakeholders to keep

them updated on the project and it’s progress.
⚫ Report must contain relevant data to the control
of specific tasks that are being executed
according to specific schedule.

⚫ A report is an official record of a given period in

the life of project that present a summary of
project implementation & performance
Reporting.

⚫ The project issue regular report on progress

against budget overrun , schedule & scope.
⚫ Type of project Report-
⚫ 1. Team Available Report- how much
work each team member has on their
plate

⚫ 2.Status Report-
⚫ A weekly status report –1) work that’s
completed.2) work that’s coming up. 3)
project risk or issues.
⚫ 3. Time Tracking report-
How much time your team is actually
spending on project task.

Benefits of Reporting System-

1. Tracking.
2. Identification Risk.
3. Cost management.
4. Visibility.
5. Control.
⚫ Generation and Identification of
project Investment opportunity-

To increase the impact and sustainability of

compact investment , each core team shall
conduct a systematic including all analysis , called
Investment opportunity.

Investment analysis- growth analysis.

⚫ Identification of Investment opportunity-
⚫ Investment proposal of various types may initiate at different levels
within a firm .

⚫ The contribution of top management in generating in investment

ideas .

⚫ The proposal for adding new product May estimate from the
marketing department .

⚫ Company use a variety of methods used are –

⚫ management sponsored studies for project identification.

⚫ Formal suggestions schemes.

⚫ Consulting advice.

⚫ Investment analysis is evaluating financial assets, sector & trends.

⚫ It can include analysing past return to predict future performance.

⚫ Managerial Communication-

⚫ Managerial Communication is function which

helps manager communicates with each other
as well as with employees within the
organisation.

⚫ Communication help in the transfer of

information from one party also called sender to
other party called the receiver.

⚫ The message has to be clear and we’ll

understood in effective communication.
⚫ Ways of managerial communication-
⚫ 1. Verbal communication-
⚫ Communication done with words called a verbal
communications.

⚫ No written records are available in verbal

communication.

⚫ Verbal communication individual need to be very careful

about their speech.

⚫ 2.Written communication-
⚫ Communication is also done through email, letter,
manual, notice such mode of communication were
written records are available is often called written
communication.
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