Construction Management & Engineering CIEG

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Construction Management & Engineering

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Construction Management & Engineering CIEG 467-013

Construction Managers

must be

both…

…business and technically

oriented

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Construction Education

• Engineering (civil or architectural)

–Specialization/area of concentration

–Curriculum Elective

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Construction Management

• Foundation of business and

science courses

• Architectural & engineering

coursework

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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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B.S.C.M. Coursework

Business Management • Accounting • Economics • Statistics • Financial Mgt. • Contract Law

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B.S.C.M. Curriculum Course Distribution

Engineering (incl math &

science) 34% Construction Mgt. 30% Liberal Arts 13% Business 15% Architecture 8%

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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 Functions

• Coordination

• Planning & Scheduling • Purchasing & Expediting • Supervision

• Cost Control

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Construction Management Functions

• Quality Control/Quality Assurance • Estimating

• Safety and Risk Management • Contract Administration

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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 Engineering Functions

• Preparation and Review of Shop Drawings

• Constructibility & Sequencing Studies • Value Engineering

• Erection Diagrams and Procedures • Survey & Layout

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Executive Functions

• Corporate Management • Strategic Planning

• Marketing & Business Development • Public Relations

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Executive Functions

• Ultimately responsible for quality,

safety, production, and general

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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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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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What is Construction?

¾ Application of art and science

¾ Inherently dangerous

¾ Organized chaos

¾ Man using creativity, knowledge, strength, determination, and persistence to control his environment

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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

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Construction differs from manufacturing

in that:

• Process is not as predictable

• Difficulty in applying automation

• High potential for encountering unforeseen 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

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Problems Facing the Construction

Industry:

• Government regulation • Environmental constraints • NIMBY syndrome • Global competition

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Industry Divisions

1. Residential Construction

2. (Institutional & Commercial) Building Construction

3. Heavy Construction

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Residential

• Types

– Single family houses – Multi family dwellings – High-rise apartments • 30-35 % of the industry

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Residential

(continued)

• Largely private

• Often speculative

• Developers = surrogate owners • Designed by architects,

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Building Construction

• Institutional and Commercial Construction – Schools and universities

– Medical clinics and hospitals

– Recreational facilities and sports stadiums

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Building Construction

– Retail stores and shopping centers – Warehouses and light manufacturing – Office buildings (single story to sky

scrappers)

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Building Construction

• Institutional and Commercial

Construction

– Churches and Synagogues – Prisons

– Courthouses and other government buildings

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Building Construction

• 35-40 % of construction market

• Larger and more complex than

residential

• Various owners (mostly private)

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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

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Heavy Construction

• Highway & bridges • Railroads & urban

transit systems

• Tunnels and Dams • Airports

• Canals

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Heavy Construction

• Pipelines

• Sewer Systems

• Water treatment & distribution systems • Power &

communication networks

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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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Heavy Construction

• Mass quantities of basic materials: earth, rock, steel, timber, and concrete

• Constructors need knowledge of engineering and geology

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Heavy Construction

• Greatest impact and manipulation of land and water

• High degree of mechanization • Contracts awarded through

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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

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Industrial Construction

• Fossil fuel & nuclear power plants

• Other heavy manufacturing facilities

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Industrial Construction

• Complex mechanical systems, process piping, and instrumentation

• Civil, but also mechanical, chemical, and electrical engineering disciplines involved • Mostly private ownership (in western

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Industrial Construction

• Negotiated contracts are typical

• “Turnkey” contract arrangements are common

• Design-constructor must be intimately familiar with the technology and

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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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Participants in the Construction Process

1. Owner

• Private or public

• Conceives the construction project • Increasing level of sophistication

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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

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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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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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5. Suppliers

Manufactures, distributors, research, promotions

Materials and equipment sales

Equipment Rental

6. Fabricators

Structural steel, pre-castors, wood products

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8. Government

Federal, State, local, and quasi-government

Owner/client

8 GSA, DOT’s, School Districts, USACOE

Non-ownership functions

8 Taxation and regulation

8 Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA), FHWA, FAA, EPA, and several others

8 State: DOL, DEP/DNREC, historic preservation (SHPO)

8 Local: County/City/Township Building Officials, Planning Boards, and Zoning Commissions

8 Quasi-government agencies: development authorities, bridge and turnpike commissions

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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

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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

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

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12. Adjacent Owners and the Public At-Large

Existing businesses, institutions, and residences adjacent to the constructed facility

Civic organizations and community groups

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Project Delivery Organization

• Construction by owners forces • Owner-managed construction

• Construction by general contractor • Design-build team

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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 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

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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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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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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

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