construction management practice implications of the theory of construction management

Construction Management Practice

Implications of theTheory of Construction

Management

Customers

Ideally customers employ a Total Construction Service company

specialising in the type of facility they need

Where such a company is availablethey should work with the company’s

established systems

Customers when no Total Construction Service company is available

• Appoint the project manager• Brief which fully describes the new

facility and identifies the constraints• Identify key objectives in terms which

allow performance to be measured• Key decision is use an established

design or an original design


• Decide how far customer wants to be involved in decisions• Key decision is contract with a single

construction company or multiple companies


• Be prepared to invest in actions which reduce inherent difficulty• Define agreed objectives with

construction companies being considered• Calculate IDIs for the construction

management options


• Select appropriate construction management strategy• Select key construction companies to

put construction management strategy into effect• Review and finalise agreed objectives• Agree fair contracts


• Ensure controls are in place to ensure performance in terms of agreed objectives is measured and action taken on any failures or problems• Particularly check that each

construction company remains committed to the project’s efficiency

Construction Management Propositions relevant to Customers for one off Projects

• Reduce the number of teams involved• Improve the quality of relationships• Reduce performance variability• Reduce external interference

plus


• Select teams competent in the technologies required by the project

• Ensure teams accept the agreed objectives• Ensure teams are motivated to achieve agreed

objectives• Foster accurate communications between

teams• Minimise the effort needed to achieve

accurate communications between teams


• Minimise the length and intensity of negotiations over the transactions which bring teams into the project organization

• Ensure teams regard the transactions as advantageous to themselves

• Minimise the resources teams devote to improving the terms of the transactions which brought them into the project organization


• Ensure their organization collects, reviews and acts on feedback about the effects of its action on its objectives

Construction Programmes

• Customers should organize their projects into programmes whenever possible

• Set tough targets for performance improvements

• Then build long-term relationships with selected construction companies

• Encourage construction companies to build effective relationships


• Projects must be similar so the same construction companies can undertake them

• Can be individually designed but use similar technologies

• Coordinate start and completion dates so construction teams build experience

• Encourage the development of a Total Construction Service

Construction Management Propositions most relevant to Customers setting up


• Satisfy the requirements of local or specialised markets to ensure company’s survival

• Develop teams with well developed skills and knowledge which match the requirements of projects

• Develop teams integrated by established relationships

• Improve the quality of support provided to teams by their companies



• Foster innovations which match the requirements of projects

• Ensure the use of effective information systems

• Establish values which run consistently throughout their organization

• Ensure their organization acts in ways which are intended and authorised



• Ensure communications are effective and result in common understandings

• Ensure transactions are agreed with minimum effort, accepted as fair, foster established relationships, and are acted on in the spirit in which they were agreed

• Ensure their organization forms established relationships with other organizations



• Ensure their organization collects, reviews and acts on feedback about the effects of established norms and procedures

Construction Companies

Implication of the Theory of

Construction Management

Construction Companies

• Think and plan long-term• Meet local demand efficiently• Relentlessly search for improved

performance year on year• R&D, testing and evaluation for big

steps forward

Construction Management Propositions relevant to all Construction Companies

• Satisfy the requirements of local or specialised markets to ensure company’s survival

• Develop teams with well developed skills and knowledge which match the requirements of projects

• Develop teams integrated by established relationships

• Improve the quality of support provided to teams by their companies

Construction Management Propositions relevant to all Construction Companies

• Foster innovations which match the requirements of projects

• Ensure their organization collects, reviews and acts on feedback about the effects of established norms and procedures

Construction Company Strategies

• Produce complete facilities or specialise in selected activities• Direct contracts with customers or

act as subcontractors• Prefabricated standardised

components or one off design details

Total Construction Service Companies

• Medium size companies concentrate on a specific type of facilities• Large companies are competent at a

number of distinct types of facilities• Mega companies aim to construct a

wide range of facilities

Total Construction Service CompaniesMarketing

• Products based on a deep understanding of customers’ needs• Products deliver value to customers• Benefits for facilities management• Convenient financial packages• Actively monitor and develop the

company’s reputation

Total Construction Service CompaniesCore Team for Project Organizations

• Led by project manager who is primary point of contact for customer• Includes specialists in all issue important

to the customer• Manages all stages of project• Evaluates the project’s physical, political,

economic and social environments

Total Construction Service CompaniesInternal Organization for Projects

• Construction teams have clearly defined tasks with fixed start and completion dates

• Norms include effective quality and safety controls

• Teams trained to have broad skills so they manage their own work

• Teams trained to identify improvements to their products and methods

Total Construction Service CompaniesRelationships

Effective cooperative relationships are systematically developed and sustained: • Between construction teams • Between the company and its teams • With other construction companies • With customers

Total Construction Service CompaniesLong-Term Development

In addition to steady, systematic improvements to mainstream products and methods, companies:

• Encourage staff to identify new ideas• Invest in R&D• Undertake tests and trials of promising

new products and methods

Specialist Companies

• Ensure customers understand company’s role• Cooperate in agreeing project objectives• Work to design and plan• Use well established technologies and

methods• Foster cooperative relationships• Aim to improve own efficiency• Actively search for improvements

Construction Management Propositions for Construction Company’s work on Projects

• Reduce the number of teams involved• Improve the quality of relationships• Reduce performance variability• Reduce external interference


• Select teams competent in the technologies required by the project

• Ensure teams accept the agreed objectives• Ensure teams are motivated to achieve agreed

objectives• Foster accurate communications between

teams• Minimise the effort needed to achieve

accurate communications between teams


• Minimise the length and intensity of negotiations over the transactions which bring teams into the project organization

• Ensure teams regard the transactions as advantageous to themselves

• Minimise the resources teams devote to improving the terms of the transactions which brought them into the project organization


• Ensure their organization collects, reviews and acts on feedback about the effects of its action on its objectives

construction management practice implications of the theory of construction management

Documents

single construction

key construction companies

projects efficiency

project organization

key objectives

original design slide

terms of agreed objectives

resources teams