Construction Management & Engineering CIEG 467-013.
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Transcript of Construction Management & Engineering CIEG 467-013.
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Construction Management & EngineeringCIEG 467-013
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Construction Management & EngineeringCIEG 467-013
Construction Managers must be both…
…business and technically oriented
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Construction Management & EngineeringCIEG 467-013
Construction Education
• Engineering (civil or architectural)
–Specialization/area of concentration
–Curriculum Elective
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Construction Management & EngineeringCIEG 467-013
Construction Management
• Foundation of business and science courses
• Architectural & engineering coursework
• Core of Construction Mgt. Courses
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B.S.C.M. Coursework
Engineering subjects
• Strength of Materials• Statics and Structures• Soil Mechanics• Steel and Concrete Design• Surveying
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Construction Management & EngineeringCIEG 467-013
B.S.C.M. Coursework
Business Management
• Accounting• Economics• Statistics• Financial Mgt.• Contract Law
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Construction Management & EngineeringCIEG 467-013
B.S.C.M. Curriculum Course DistributionEngineering(incl math &
science)34%
Construction Mgt.30%
Liberal Arts13%
Business 15%
Architecture8%
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Construction Management & EngineeringCIEG 467-013
Licensing/Certifications
• Professional Engineer’s License issued by state or local governing board.
• Certified Constructor issued by the American Institute of Constructors (AIC).
• Certified Construction Manager issued by Construction Management Association of America (CMAA)
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Basic Skills needed by Construction Managers
– Estimating– Computer– Leadership/supervisory– Communication = writing and oral
skills– Negotiating
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Construction Management & EngineeringCIEG 467-013
Construction Management Functions
• Coordination
• Planning & Scheduling
• Purchasing & Expediting
• Supervision
• Cost Control
• Documentation and Reporting
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Construction Management & EngineeringCIEG 467-013
Construction Management Functions
• Quality Control/Quality Assurance
• Estimating
• Safety and Risk Management
• Contract Administration
• Claims Analysis/Avoidance
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Construction Management & EngineeringCIEG 467-013
Additional Skills & Knowledge needed by Construction Engineers
• Surveying (GPS, GIS, Hydrographic)
• Structural Design
• CADD/Drafting
• Specialization in Mechanical, Electrical,
Chemical, or Environmental disciplines
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Construction Management & EngineeringCIEG 467-013
Construction Engineering Functions
• Preparation and Review of Shop Drawings
• Constructibility & Sequencing Studies
• Value Engineering
• Erection Diagrams and Procedures
• Survey & Layout
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Construction Management & EngineeringCIEG 467-013
Executive Functions
• Corporate Management
• Strategic Planning
• Marketing & Business Development
• Public Relations
• Labor Relations
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Construction Management & EngineeringCIEG 467-013
Executive Functions
• Ultimately responsible for quality, safety, production, and general financial health.
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Construction Management & EngineeringCIEG 467-013
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
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Construction Management & EngineeringCIEG 467-013
Project Life Cycle
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Construction Management & EngineeringCIEG 467-013
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
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Construction Management & EngineeringCIEG 467-013
What is Construction?
Application of art and science
Inherently dangerous
Organized chaos
Man using creativity, knowledge, strength, determination, and persistence to control his environment
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Construction Management & EngineeringCIEG 467-013
Construction differs from manufacturing in that:
• Not performed in controlled conditions, therefore highly impacted by weather and other environmental conditions
• Seasonality
• Each project is unique
• Remotes sites with various access problems
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Construction Management & EngineeringCIEG 467-013
Construction differs from manufacturing in that:
• Process is not as predictable
• Difficulty in applying automation
• High potential for encountering unforeseen conditions
• Costs can vary according to conditions
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Construction differs from manufacturing in that:
• Difficult to manage and supply utilities and other resources.
• Technical innovations are adopted slower.
• Success is dependent upon the quality of its people.
• Very custom-oriented
• Product can be of mind-boggling size, cost, and complexity
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Problems Facing Construction Industry:
• Highly traditional and fragmented; slow to embrace new technology
• Restrictive/outdated building codes
• Labor agreements and craft jurisdictional issues
• Liability and legal considerations
• Lack of profit motive or other incentive
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Problems Facing the Construction Industry:
• Government regulation
• Environmental constraints
• NIMBY syndrome
• Global competition
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Construction Management & EngineeringCIEG 467-013
“The Blame Game”
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Construction Management & EngineeringCIEG 467-013
Industry Divisions
1. Residential Construction
2. (Institutional & Commercial) Building Construction
3. Heavy Construction
4. Industrial Construction
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Construction Management & EngineeringCIEG 467-013
Residential
• Types
– Single family houses
– Multi family dwellings
– High-rise apartments
• 30-35 % of the industry
• Low capital and technology requirements
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Construction Management & EngineeringCIEG 467-013
Residential (continued)
• Largely private
• Often speculative
• Developers = surrogate owners
• Designed by architects, builders/developers
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Construction Management & EngineeringCIEG 467-013
Building Construction• Institutional and Commercial Construction
– Schools and universities
– Medical clinics and hospitals
– Recreational facilities and sports stadiums
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Construction Management & EngineeringCIEG 467-013
Building Construction
– Retail stores and shopping centers
– Warehouses and light manufacturing
– Office buildings (single story to sky scrappers)
– Hotels, convention centers, and theaters
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Construction Management & EngineeringCIEG 467-013
Building Construction• Institutional and Commercial
Construction– Churches and Synagogues
– Prisons
– Courthouses and other government buildings
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Construction Management & EngineeringCIEG 467-013
Building Construction
• 35-40 % of construction market• Larger and more complex than
residential • Various owners (mostly private)• Designed by architects and engineers
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Construction Management & EngineeringCIEG 467-013
Heavy Construction
• Also referred to as “Horizontal Construction”, “Heavy Civil Construction”, “Heavy Engineering Construction”, “Infrastructure & Heavy Construction” and “Heavy/Highway Construction”.
• 20-25% of the construction industry
• Mostly public financing or large consortium
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Heavy Construction
• Highway & bridges
• Railroads & urban transit systems
• Tunnels and Dams
• Airports
• Canals• Port & harbor structures
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Heavy Construction
• Pipelines• Sewer Systems• Water treatment &
distribution systems• Power &
communication networks
• Landfills
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Construction Management & EngineeringCIEG 467-013
Heavy Construction
• Accounts for 20-25% of the construction market
• Heavy public works projects
• Mostly public financing
• Owner is a governmental agency or large consortium
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Construction Management & EngineeringCIEG 467-013
Heavy Construction
• Mass quantities of basic materials: earth, rock, steel, timber, and concrete
• Constructors need knowledge of engineering and geology
• Engineers and builders are often specialized.
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Construction Management & EngineeringCIEG 467-013
Heavy Construction
• Greatest impact and manipulation of land and water
• High degree of mechanization
• Contracts awarded through competitive bidding
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Industrial Construction
• Very large scale projects
• High degree of technological complexity
• Designed and built by the largest firms with the highest level of technical sophistication
• Represent 5-10% of the market.
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Industrial Construction
• Petroleum refineries
• Steel mills & aluminum plants
• Chemical processing plants
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Industrial Construction
• Fossil fuel & nuclear power plants
• Other heavy manufacturing facilities
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Construction Management & EngineeringCIEG 467-013
Industrial Construction
• Complex mechanical systems, process piping, and instrumentation
• Civil, but also mechanical, chemical, and electrical engineering disciplines involved
• Mostly private ownership (in western countries)
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Construction Management & EngineeringCIEG 467-013
Industrial Construction
• Negotiated contracts are typical
• “Turnkey” contract arrangements are common
• Design-constructor must be intimately familiar with the technology and operations of the facility
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Construction Management & EngineeringCIEG 467-013
Construction Industry is further subdivided into sectors or segments by:
• Public vs. private ownership/funding• Union labor vs. open shop• Organization and method of project delivery• Type of work: new vs. rehab/retrofit/restoration• Contract type
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Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
1. Owner
• Private or public• Conceives the construction project• Increasing level of sophistication
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Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
2. Designer• Architects
• Size of firms ranging form single practitioner to large integrated firms
• Mostly building and residential construction• Engineers
• Civil, mechanical, structural, electrical,chemical, environmental, geotechechnical, and multidiscipline
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Participants in the Construction Process
3. General Contractor• General contractor also called “Prime” contractor• Specialty contractors working as subcontractors• Organization ranges from small, one-person
company to large, integrated A/E/C firms• Part of a design-build team
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Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
4. Construction Manager Two principle divisions of CM
• CM for Fee (management services only)
• CM At Risk – Operates similarly to a GC or DB with no labor or
capital equipment• Can encompass the management of the design
process as well as construction• CM services including inspection and overall project or
program management
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Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
5. Suppliers Manufactures, distributors, research, promotions Materials and equipment sales Equipment Rental
6. Fabricators Structural steel, pre-castors, wood products
7. Labor/Trade Unions
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Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
8. Government Federal, State, local, and quasi-government Owner/client
GSA, DOT’s, School Districts, USACOE Non-ownership functions
Taxation and regulation Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA),
FHWA, FAA, EPA, and several others State: DOL, DEP/DNREC, historic preservation (SHPO) Local: County/City/Township Building Officials, Planning
Boards, and Zoning Commissions Quasi-government agencies: development authorities,
bridge and turnpike commissions
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Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
9. Utility Companies Electric, communications, water, gas,sanitary
sewer Private petroleum pipelines Owner or service provider Integral part of the process Existing facilities in conflict with new
construction Interruption of service can be very costly
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Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
10. Industry Associations Organizations of construction contractors Organizations of the design and management
professions Construction material and equipment suppliers
and product research Construction labor organizations Coordination and arbitration Inspection, specifications, and costs
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Construction Management & EngineeringCIEG 467-013
10. Industry Associations
Functions and services• Industry information and communication• Development and maintenance of standards• Interindustry coordination• Collective bargaining• Statistics (market & industry)• Meetings and conventions
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Construction Management & EngineeringCIEG 467-013
10. Industry Associations
Functions and services• Public relations• Joint industry promotions• Management education• Market development• Apprenticeship training• Legislative• Government relations• Product research
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Participants in the Construction Process
11. Professional Services Business/management consultants Legal council CPA firms Surety Companies Financial Institutions/Lenders Insurance agents
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Construction Management & EngineeringCIEG 467-013
Participants in the Construction Process
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
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Construction Management & EngineeringCIEG 467-013
Project Delivery Organization
• Construction by owners forces
• Owner-managed construction
• Construction by general contractor
• Design-build team
• CM Contract
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Construction Management & EngineeringCIEG 467-013
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
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Construction Management & EngineeringCIEG 467-013
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
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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
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Construction Management & EngineeringCIEG 467-013
Design-Build (Turnkey)
– Single firm or team responsible for design and construction minimizes coordination problems
– More efficient designs with the interjection of constructibility and innovation
– Often employees fast-track construction– Benefits include reduced overall delivery time
and “one-stop shopping” for the owner– Disadvantages include complexity of evaluating
proposals
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Construction Management & EngineeringCIEG 467-013
CM Contract -- Fee (management services only) also referred to as “Agency”– Specialized construction skills through all stages of
project– 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
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Construction Management & EngineeringCIEG 467-013
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
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Construction Management & EngineeringCIEG 467-013