What is construction management?
Chapter 2
In this chapter
• What makes the construction project unique
• What factors determine the success of a construction project
• The owner’s role in initiating the project delivery process
• How owners select and procure their construction services
• Trends in project delivery
• The various construction management functions
• What it takes to be a construction manager
Terminology
• Construction
• Building or assembling something
• Management
• Act of getting people together to accomplish desired goals and objectives
efficiently and effectively
• Planning
• Look ahead and chart out future course of operation
• Formulation of Objectives, Policies, Procedure, Rules, Programs and Budgets
Terminology
• Management :
Management is the technique of understanding the problems,
needs and controlling the use of Resources, Cost, Time, Scope and
Quality.
• Project Management :
Application of knowledge, skills , tools & techniques to project
activities in order to meet stakeholder needs & expectations from a
project.
Terminology
• Construction Management:
• The term construction management deals with management in
which group of peoples of different categories work together to
execute the project economically without difficulty in a well-
planned organized manner.
Terminology
Construction Manager VS Engineer
CM:
• Works smart
• Better
• Cheaper
• Faster
• Innovative
• Creative solution for problem solving
Engineer:
• Works hard
• Use traditional way of problem solving
What is CM?
What is construction Management?
Have you ever heard about 5M?
M M M
M
What is construction Management?
• In construction management, we look forward to the following
factors.
• To have less construction cost.
• Improving the quality of construction works by using modern technology
and modern construction equipment.
• To check the wastage of material and labour.
• To complete the work in shortest possible time.
What does Construction Manager do?
• Take a set of written plans and specifications and a raw piece of land
• Coordinate all of the materials, manpower, and equipment necessary to
guarantee the set price, schedule, and quality of the project
• Without any accidents or errors, regardless of weather conditions, interest rate
fluctuations, acts of God, or any other unforeseen conditions
Construction Management Defined
• “Construction management (CM) entails the planning, scheduling,
evaluation, and controlling of construction tasks or activities to accomplish
specific objectives by effectively allocating and utilizing appropriate labor,
material, and time resources in a manner that minimizes costs and
maximizes customer/owner satisfaction.”
Construction Management Defined
• Who should deploy CM?
• Owner or Contractor ?
Why do Construction Companies use PM?
• To handle projects effectively in an organization.
• To define the project and agree with the customer
• To plan and assess resource needs for the project
• To estimate project cost and make proposals
• To plan & schedule activities in a project.
• To allocate the right resource at the right time.
• To assess risk and failure points and make
backup plans.
• To lead a project team effectively and communicate well
Why do people learn PM?
• To explore the latest concepts and techniques of project management.
• To increase value/contribution to the organization. To
prove yourself skillful in managing projects.
• To learn a new thought process that helps organized
thinking and structured approach.
• To acquire a professional degree/ recognition and
increase job prospects.
• Endless possibilities and benefits……..
Why construction management?
• Better control of financial, physical and human resources.
• Improved customer relations.
• Shorter development time.
• Lower Costs.
• Higher quality and increased reliability.
• Higher profit margin.
• Improved productivity.
• Better internal coordination.
Steps in CM
• Project Definition and Scope.
• Technical Design.
• Financing.
• Contracting.
• Implementation.
• Performance Monitoring.
Construction Project & its Environment
1. What is a project?
2. Construction Project
3. Six Dials of Project value
Construction Project & its Environment
•A Project is a unique effort to make a product
within predetermined limits of Time, Cost &
Quality
•Projects are not operations (a series of routinely
done tasks in an organization)
•A construction Project is an attempt to provide a
facility / building / infrastructure, etc within
specified time, cost, quality & SAFETY constraints
Construction Project & its Environment
Let’s go a bit deeper
Portfolio
Program
Project
Construction Project & its Environment
Let’s go a bit deeper Portfolio
Characteristics of the project; Program
Project: A temporary endeavor undertaken to create
Project
a
unique product, services or result.
Program: A group of related projects and/or services
intended to meet common objectives and usually managed
by one entity.
➢Ongoing (usually periodic/annual).
➢One time.
Portfolio: A group of projects or programs other works that
are group together to facilitate effective management and
to meet strategic business objectives.
Construction Project & its Environment
Let’s go a bit deeper…
Characteristics of the projects;
1. Unique in nature – No repetition
❑ On-of-a-kind facility
❑ Different building site
❑ Variable weather
❑ Particular topographic & environmental conditions
❑ A prototype in itself, no previous testing
❑ Variable natural materials
❑ Manual work
Construction Project & its Environment
2. Defined Timescale
Clearly specified start & end dates
3. Approved Budget
To meet client requirement an allocated level of
financial expenditure is made
4. Limited Resources
An agreed amount of labor, material; & machinery is
allocated at start of project
5. Risk
A level of uncertainty is associated
6. Change
Improvement is made in society
Six Dials of Project Value
Function
Quality
Scope PROJECT
VALUE Safety
(optimize all)
Cost
Time
General Principles
1. Know & define your project, what others have to do & what you have to
do and paid for
2. Estimate the costs as accurately as you can
3. Allow for contingencies, provisional items & cost escalation in estimates
4. Know your client, have they been trouble to anyone in past
5. Is the contract understood and agreed by all parties?
6. Check for your cash flow, is it sufficient for suppliers & workers
General Principles
1. Have a plan
2. Measure work against plan, certify by quantity surveyor
3. Make sure that every change requested by the customer is
covered by a contract variation order with adequate price cover.
4. Take steps to keep a healthy and safety policy convenience to the
public at a minimum.
5. Site security
Thank you
