construction methods & management cieg 486-010. construction managers must be both…...
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Construction Methods & ManagementCIEG 486-010
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Construction Methods & ManagementCIEG 486-010
Construction Managers must be both…
…business and technically oriented
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Construction Education Options
Education Format
• Traditional
• CEM
• BC
• CM
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• Engineering (civil or architectural)
–Specialization/area of concentration
–Curriculum Elective
Construction Education Options
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Construction-FocusedEducation
CEM CM BCM
CivilEngineering
Applied Technologyor
Professional Studies
Architecture
School of Construction
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Construction Management Education
• National CEM Programs– Stanford University– University of Michigan– Virginia Tech– Purdue University– University of Illinois-UC– Oregon State University– University of Colorado– NC State
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Construction Management Education
• National BCM Programs– Georgia Tech– University of Florida– Purdue University– Virginia Tech– Auburn University– Georgia Southern University– University of North Florida
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Construction Education Options
• National CM Programs– Arizona State University– Florida International University– Colorado State– Clemson– University of Washington– Michigan State University– Brigham Young – Wentworth Institute of Technology
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Construction Education Options
• Graduate Construction Programs– Stanford University– University of Colorado– University of Michigan– Virginia Tech– University of Southern California– Arizona State University– Florida International University– Texas A&M
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Construction Management
• Interdisciplinary Education
• Practice rather than theory based
• Foundation of Business and Science Courses
• Architectural & Engineering Coursework
• Core of Construction Management Courses
Construction Education Options
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B.S.C.M. Coursework
Engineering subjects
• Strength of Materials• Statics and Structures• Soil Mechanics• Steel and Concrete Design• Surveying
Construction Methods & ManagementCIEG 486-010
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Construction Methods & ManagementCIEG 486-010
B.S.C.M. Coursework
Business Management
• Accounting• Economics• Statistics• Financial Mgt.• Contract Law
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Construction Methods & ManagementCIEG 486-010
B.S.C.M. Curriculum Course DistributionEngineering(incl math &
science)34%
Construction Mgt.30%
Liberal Arts13%
Business 15%
Architecture8%
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Construction Methods & ManagementCIEG 486-010
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)
• Project Management Professional (PMP) by the Project Management Institute (PMI)
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Basic Skills needed by Construction Managers
– Estimating– Computer– Leadership/supervisory– Communication = writing and oral skills– Negotiating
– Team Building
Construction Methods & ManagementCIEG 486-010
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Construction Methods & ManagementCIEG 486-010
Construction Management Functions
• Coordination
• Planning & Scheduling
• Purchasing & Expediting
• Supervision
• Cost Control
• Documentation and Reporting
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Construction Methods & ManagementCIEG 486-010
Construction Management Functions
• Quality Control/Quality Assurance
• Estimating
• Safety and Risk Management
• Contract Administration
• Claims Analysis/Avoidance
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Construction Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
Executive Functions
• Corporate Management
• Strategic Planning
• Marketing & Business Development
• Public Relations
• Labor Relations
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Construction Methods & ManagementCIEG 486-010
Executive Functions
• Ultimately responsible for quality, safety, production, and general financial health.
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Construction Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
Project Life Cycle
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Construction Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
What is Construction?
Application of art and science
Inherently dangerous
Organized chaos
Mankind using creativity, knowledge, strength, determination, and persistence to control his environment
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Construction Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
“The Blame Game”
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Overview of the Construction Industry
• 10% of GNP
• Employs over 10,000,000 workers
• Annual Volume exceeds $800 billion
• Vital to the Nation’s economic health and quality of life
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Construction Methods & ManagementCIEG 486-010
Industry Divisions
1. Residential Construction
2. (Institutional & Commercial) Building Construction
3. Heavy Construction
4. Industrial Construction
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Overview of the Construction Industry
Industry Divisions
1. Residential Construction
2. (Institutional & Commercial) Building Construction
3. Heavy Construction
4. Industrial Construction
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Overview of the Construction Industry
Residential • Types
– Single family houses
– Multi family dwellings
– High-rise apartments & condominiums
• 30-35 % of the industry
• Low capital and technology requirements
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Overview of the Construction Industry
Residential (continued)
• Largely private
• Often speculative
• Developers = surrogate owners
• Designed by architects, builders/developers
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Building Construction
• Institutional and Commercial Construction
– Schools and universities
– Medical clinics and hospitals
– Recreational facilities and sports stadiums
Overview of the Construction Industry
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Overview of the Construction Industry
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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Overview of the Construction Industry
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)• Designed by architects and engineers
Overview of the Construction Industry
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Heavy Construction
• Horizontal Construction
• 20-25% of the construction industry
• Mostly public financing or large consortium
Overview of the Construction Industry
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Heavy Construction
• Highway & Bridges• Railroads & Urban Transit
Systems• Tunnels and Dams• Airports• Canals• Port & harbor structures
Overview of the Construction Industry
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Heavy Construction
• Pipelines• Sewer Systems• Water treatment & distribution
systems• Power & communication
networks• Landfills
Overview of the Construction Industry
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Overview of the Construction Industry
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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Overview of the Construction Industry
Heavy Construction
• Greatest impact on 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
Overview of the Construction Industry
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Industrial Construction
• Petroleum refineries
• Steel mills & aluminum plants
• Chemical processing plants
Overview of the Construction Industry
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Industrial Construction
• Fossil fuel & nuclear power plants
• Other heavy manufacturing facilities
Overview of the Construction Industry
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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 countries)
Overview of the Construction Industry
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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 operations of the facility
Overview of the Construction Industry
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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
Overview of the Construction Industry
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Construction Methods & ManagementCIEG 486-010
Participants in the Construction Process
1. Owner
• Private or public• Conceives the construction project• Increasing level of sophistication
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Construction Methods & ManagementCIEG 486-010
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
Construction Methods & ManagementCIEG 486-010
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Construction Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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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Construction Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
Project Delivery Organization
• Construction by owners forces
• Owner-managed construction
• Construction by general contractor
• Design-build team
• CM Contract
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Construction Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010
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 employs 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 Methods & ManagementCIEG 486-010
CM Contract -- Fee (management services only) also referred to as “Agency”– Specialized construction skills through all project stages
including preconstruction– 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 Methods & ManagementCIEG 486-010
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 Methods & ManagementCIEG 486-010