Good Notes090403

Construction Management & Engineering
CIEG 467-013

CIEG 467-013
Construction Managers must be

both
business and technically
oriented

CIEG 467-013
Construction Education
Engineering (civil or architectural)
Specialization/area of concentration
Curriculum Elective

CIEG 467-013
Construction Management
Foundation of business and
science courses
Architectural & engineering
coursework
Core of Construction Mgt. Courses

CIEG 467-013
B.S.C.M. Coursework
Engineering subjects
Strength of Materials
Statics and Structures
Soil Mechanics
Steel and Concrete Design
Surveying

CIEG 467-013
B.S.C.M. Coursework
Business Management
Accounting
Economics
Statistics
Financial Mgt.
Contract Law

CIEG 467-013
B.S.C.M. Curriculum Course Distribution

Business
15%
Engineering
(incl math &
science)
34%
Architecture
8%
Liberal Arts
13%
Construction
Mgt.
30%

CIEG 467-013
Licensing/Certifications
Professional Engineers 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)

CIEG 467-013
Basic Skills needed by Construction

Managers
Estimating
Computer
Leadership/supervisory
Communication = writing and oral skills
Negotiating

CIEG 467-013
Construction Management Functions

Coordination
Planning & Scheduling
Purchasing & Expediting
Supervision
Cost Control
Documentation and Reporting

CIEG 467-013
Construction Management Functions

Quality Control/Quality Assurance
Estimating
Safety and Risk Management
Contract Administration
Claims Analysis/Avoidance

CIEG 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

CIEG 467-013
Construction Engineering Functions

Preparation and Review of Shop
Drawings
Constructibility & Sequencing Studies
Value Engineering
Erection Diagrams and Procedures
Survey & Layout

CIEG 467-013
Executive Functions
Corporate Management
Strategic Planning
Marketing & Business Development
Public Relations
Labor Relations

CIEG 467-013
Executive Functions
Ultimately responsible for quality,
safety, production, and general
financial health.

CIEG 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

CIEG 467-013
Project Life Cycle

CIEG 467-013
Life Cycle of a Constructed Facility

1.
2.
3.
4.
5.
6.
Concept and Feasibility

Engineering and Design
Procurement
Construction
Startup and Implementation
Operation or Utilization

CIEG 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

CIEG 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

CIEG 467-013

in that:
Process is not as predictable
Difficulty in applying automation
High potential for encountering unforeseen

conditions
Costs can vary according to conditions

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
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
Problems Facing the Construction

Industry:
Government regulation
Environmental constraints
NIMBY syndrome
Global competition

CIEG 467-013
The Blame
Game

CIEG 467-013
Industry Divisions
1. Residential Construction
2. (Institutional & Commercial) Building
Construction
3. Heavy Construction
4. Industrial Construction

CIEG 467-013
Residential
Types
Single family houses
Multi family dwellings
High-rise apartments
30-35 % of the industry
Low capital and technology requirements

CIEG 467-013
Residential (continued)
Largely private
Often speculative
Developers = surrogate owners
Designed by architects,
builders/developers

CIEG 467-013
Building Construction
Institutional and Commercial Construction

Schools and universities
Medical clinics and hospitals
Recreational facilities and sports
stadiums

CIEG 467-013
Retail stores and shopping centers
Warehouses and light manufacturing
Office buildings (single story to sky
scrappers)
Hotels, convention centers, and theaters

CIEG 467-013
Institutional and Commercial
Construction
Churches and Synagogues
Prisons
Courthouses and other government
buildings

CIEG 467-013
35-40 % of construction market

Larger and more complex than
residential
Various owners (mostly private)
Designed by architects and engineers

CIEG 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
Heavy Construction
Highway & bridges

Railroads & urban
transit systems
Tunnels and Dams
Airports
Canals
Port & harbor structures
Heavy Construction
Pipelines
Sewer Systems
Water treatment &
distribution systems
Power &
communication
networks
Landfills

CIEG 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

CIEG 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.

CIEG 467-013
Heavy Construction
Greatest impact and manipulation of

land and water
High degree of mechanization
Contracts awarded through

competitive bidding

CIEG 467-013
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.
Petroleum refineries
Steel mills &

aluminum plants
Chemical
processing plants
Fossil fuel & nuclear

power plants
Other heavy
manufacturing
facilities

CIEG 467-013
Complex mechanical systems, process

piping, and instrumentation
Civil, but also mechanical, chemical, and

electrical engineering disciplines involved
Mostly private ownership (in western

countries)

CIEG 467-013
Negotiated contracts are typical
Turnkey contract arrangements are

common
Design-constructor must be intimately

familiar with the technology and
operations of the facility

CIEG 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

CIEG 467-013
Participants in the Construction Process

1. Owner
Private or public
Conceives the construction project
Increasing level of sophistication

CIEG 467-013
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

CIEG 467-013
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

CIEG 467-013
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

CIEG 467-013
5.
Suppliers
6.
Fabricators
7.
Manufactures, distributors, research, promotions

Materials and equipment sales
Equipment Rental
Structural steel, pre-castors, wood products
Labor/Trade Unions

CIEG 467-013
8.
Government
Federal, State, local, and quasi-government
Owner/client
GSA, DOTs, 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

CIEG 467-013
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

CIEG 467-013
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

CIEG 467-013

Functions and services
Industry information and communication

Development and maintenance of standards
Interindustry coordination
Collective bargaining
Statistics (market & industry)
Meetings and conventions

CIEG 467-013

Functions and services
Public relations
Joint industry promotions
Management education
Market development
Apprenticeship training
Legislative
Government relations
Product research

CIEG 467-013

11. Professional Services
Business/management consultants
Legal council
CPA firms
Surety Companies
Financial Institutions/Lenders
Insurance agents

CIEG 467-013

12. Adjacent Owners and the Public AtLarge
Existing businesses, institutions, and

residences adjacent to the constructed
facility
Civic organizations and community
groups
Railroads and public lands

CIEG 467-013
Project Delivery Organization
Construction by owners forces

Owner-managed construction
Construction by general contractor
Design-build team
CM Contract

CIEG 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

CIEG 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
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

CIEG 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

CIEG 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

CIEG 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
CMs 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

CIEG 467-013

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Construction Management & Engineering

Construction Management & Engineering

Construction Managers must be

Construction Management & Engineering

Construction Management & Engineering

Construction Management & Engineering

Construction Management & Engineering

Construction Management & Engineering

B.S.C.M. Curriculum Course Distribution

Construction Management & Engineering

Construction Management & Engineering

Basic Skills needed by Construction

Construction Management & Engineering

Construction Management Functions

Construction Management & Engineering

Construction Management Functions

Construction Management & Engineering

Additional Skills & Knowledge needed

Construction Management & Engineering

Construction Engineering Functions

Construction Management & Engineering

Construction Management & Engineering

Construction Management & Engineering

Construction training can be valuable

Construction Management & Engineering

Project Life Cycle

Construction Management & Engineering

Life Cycle of a Constructed Facility

Concept and Feasibility

Construction Management & Engineering

Construction Management & Engineering

Construction differs from manufacturing

Not performed in controlled conditions,

Each project is unique

Remotes sites with various access problems

Construction Management & Engineering

Construction differs from manufacturing

Process is not as predictable

Difficulty in applying automation

High potential for encountering unforeseen

Costs can vary according to conditions

Construction differs from manufacturing

Difficult to manage and supply utilities and

Problems Facing Construction

Highly traditional and fragmented; slow to

Problems Facing the Construction

Construction Management & Engineering

Construction Management & Engineering

Construction Management & Engineering

30-35 % of the industry

Low capital and technology requirements

Construction Management & Engineering

Developers = surrogate owners

Construction Management & Engineering

Institutional and Commercial Construction

Construction Management & Engineering

Construction Management & Engineering

Construction Management & Engineering

35-40 % of construction market

Construction Management & Engineering

Also referred to as Horizontal Construction,

20-25% of the construction industry

Mostly public financing or large consortium

Highway & bridges