LECTURE 1
INTRODUCTION TO
CONSTRUCTION PROJECT MANAGEMENT
Learning Outcomes
• Familiarize with the construction industry and its
environment.
• Identify and define construction management
goals.
• Understand the construction management
process.
• Identify the major industry divisions in
construction
OVERVIEW OF THE
CONSTRUCTION INDUSTRY
CONSTRUCTION INDUSTRY
SERVICES
Construction infrastructure projects are
one of the most important factors in
supporting the socio-economic development
in the country. It could generate downstream
economic activities and completely enhance
productivity and competitiveness in the
Construction industry.
Overview of the Construction Industry
◼ 6% of GDP (Gross Domestic Product)
◼ Employs over 2,000,000 workers
◼ Annual Volume exceeds Ph238 billion
◼ Vital to the Nation’s economic health
and quality of life
CONSTRUCTION PROJECT ENVIRONMENT
Construction is the act, process, or manner
of building, constructing, or forming something
which requires the application of special
engineering and/or architectural knowledge and
skills and involving the use of specialized
building trades or crafts.
Project Goal
The primary goal of the construction
project management team is to complete
the projects as specified according to
plans, on schedule, within the budget
and achieve the best quality level
required by the contract
Project Goal
In order to achieve this goal a construction
management system will serve as a guide:
COST
Construction
Project
Management
System
QUALITY TIME
Overview of the Construction Industry
4 - Categories of construction
1. Residential Construction
2. (Institutional & Commercial)
Building Construction
3. Infrastructure and Heavy
Construction
4. Industrial Construction
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
Overview of the Construction Industry
Residential (continued)
Largely private
Often speculative
Developers =
surrogate owners
Designed by architects,
builders/developers
Overview of the Construction Industry
Building Construction
Institutional and Commercial
Construction
– Schools and universities
– Medical clinics and hospitals
–Recreational facilities and
sports stadiums
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
Overview of the Construction Industry
Building Construction
Institutional and Commercial
Construction
– Churches
– Synagogues
– Prisons
– Courthouses
– other government
buildings
Overview of the Construction Industry
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
Heavy Construction
Horizontal Construction
20-25% of the construction industry
Mostly public financing or large
consortium
Overview of the Construction Industry
Heavy Construction
Highway & Bridges
Overview of the Construction Industry
Heavy Construction
Railroads & Urban Transit Systems
Overview of the Construction Industry
Heavy Construction
Tunnels
Overview of the Construction Industry
Heavy Construction
Dams
Overview of the Construction Industry
Heavy Construction
Airports
Overview of the Construction Industry
Heavy Construction
Canals
Overview of the Construction Industry
Heavy Construction
Ports and Harbors
Overview of the Construction Industry
Heavy Construction
Pipelines and Sewer Systems
Water treatment & distribution systems
Overview of the Construction Industry
Heavy Construction
Power & communication networks
Overview of the Construction Industry
Heavy Construction
Mass quantities of basic materials:
earth, rock, steel, timber, and
concrete
Contractors need knowledge of
engineering and geology
Engineers and builders are
often specialized
Overview of the Construction Industry
Heavy Construction
Greatest impact on land and water
High degree of mechanization
Contracts awarded through
competitive bidding
Overview of the Construction Industry
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
Industrial Construction
Petroleum refineries
Steel mills & aluminum plants
Chemical processing plants
Overview of the Construction Industry
Industrial Construction
Fossil fuel & nuclear power plants
Other heavy manufacturing facilities
Overview of the Construction Industry
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
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
