Construction Methods & Management – Purdue University • Accounting
– Virginia Tech • Economics
– Auburn University • Statistics
Construction Managers must be both… – Georgia Southern University • Financial Mgt.
…business and technically – University of North Florida • Contract Law
oriented
Construction Education Options Licensing/Certifications
Construction Education Options • Professional Engineer’s License issued by
Education Format • National CM Programs
state or local governing board.
• Traditional – Arizona State University
• Certified Constructor issued by the
• CEM – Florida International University
American Institute of Constructors (AIC).
• BC – Colorado State
• Certified Construction Manager issued by
• CM – Clemson
Construction Management Association of
– University of Washington
America (CMAA)
Engineering (civil or architectural) – Michigan State University
• Project Management Professional (PMP) by
– Specialization/area of – Brigham Young
the Project Management Institute (PMI)
concentration – Wentworth Institute of Technology
– Curriculum Elective Basic Skills needed by Construction Managers
• Graduate Construction Programs – Estimating
Construction-Focused – Stanford University – Computer
Education
– University of Colorado – Leadership/supervisory
– University of Michigan – Communication = writing and oral
Applied Technology
or
– Virginia Tech skills
Civil
Professional Studies – University of Southern California – Negotiating
Architecture
Engineering – Arizona State University – Team Building
– Florida International University
CEM CM BCM
– Texas A&M
Construction Management Construction Management Functions
• Interdisciplinary Education • Coordination
School of Construction
• Practice rather than theory based • Planning & Scheduling
• Foundation of Business and Science Courses • Purchasing & Expediting
Construction Management Education
• Architectural & Engineering Coursework • Supervision
• National CEM Programs
• Core of Construction Management Courses • Cost Control
– Stanford University
• Documentation and Reporting
– University of Michigan
• Quality Control/Quality Assurance
– Virginia Tech B.S.C.M. Coursework
• Estimating
– Purdue University Engineering subjects
• Safety and Risk Management
– University of Illinois-UC • Strength of Materials
• Contract Administration
– Oregon State University • Statics and Structures
• Claims Analysis/Avoidance
– University of Colorado • Soil Mechanics
– NC State • Steel and Concrete Design
Additional Skills & Knowledge needed by
• National BCM Programs • Surveying
Construction Engineers
– Georgia Tech
• Surveying (GPS, GIS, Hydrographic)
– University of Florida Business Management • Structural Design
• CADD/Drafting Mankind using creativity, knowledge,
• Specialization in Mechanical, Electrical, strength, determination, and persistence to
Residential
Chemical, or Environmental disciplines control his environment
• Types
– Single family houses
Construction Engineering Functions Construction differs from manufacturing in that:
– Multi family dwellings
• Preparation and Review of Shop Drawings • Not performed in controlled conditions,
– High-rise apartments &
• Constructibility & Sequencing Studies therefore highly impacted by weather and
condominiums
• Value Engineering other environmental conditions
• 30-35 % of the industry
• Erection Diagrams and Procedures • Seasonality
• Low capital and technology requirements
• Survey & Layout • Each project is unique
• Largely private
• Remotes sites with various access problems
• Often speculative
Executive Functions • Process is not as predictable
• Developers = surrogate owners
• Corporate Management • Difficulty in applying automation
• Designed by architects, builders/developers
• Strategic Planning • High potential for encountering unforeseen
• Marketing & Business Development conditions
• Public Relations • Costs can vary according to conditions
Building Construction
• Labor Relations • Difficult to manage and supply utilities and • Institutional and Commercial Construction
other resources. – Schools and universities
Executive Functions • Technical innovations are adopted slower. – Medical clinics and hospitals
• Ultimately responsible for quality, safety, • Success is dependent upon the quality of its – Recreational facilities and sports
production, and general financial health. people. stadiums
• Very custom-oriented – Retail stores and shopping centers
Construction training can be valuable to design • Product can be of mind-boggling size, cost, – Warehouses and light manufacturing
professionals…… and complexity – Office buildings (single story to sky
• To enable them to produce practical and Problems Facing Construction Industry: scrappers)
efficient designs • Highly traditional and fragmented; slow to – Hotels, convention centers, and
• Develop needed management skills embrace new technology theaters
• Learn scheduling techniques that can be • Restrictive/outdated building codes • Institutional and Commercial Construction
applied to the preconstruction process • Labor agreements and craft jurisdictional – Churches
issues – Courthouses and other government
buildings
Project Life Cycle • Liability and legal considerations
Life Cycle of a Constructed Facility • Lack of profit motive or other incentive
Government regulation • 35-40 % of construction market
1. Concept and Feasibility •
Environmental constraints • Larger and more complex than residential
2. Engineering and Design •
Global competition • Various owners (mostly private)
3. Procurement •
• Designed by architects and engineers
4. Construction
5. Startup and Implementation “The Blame Game”
6. Operation or Utilization Heavy Construction
• Horizontal Construction
Industry Divisions
What is Construction? • 20-25% of the construction industry
1. Residential Construction
Application of art and science • Mostly public financing or large consortium
2. (Institutional & Commercial)
Inherently dangerous • Highway & Bridges
Building Construction
Organized chaos • Railroads & Urban Transit Systems
3. Heavy Construction
• Tunnels and Dams
4. Industrial Construction
• Airports
• Canals • Type of work: new vs. • CM services including inspection and
• Port & harbor structures rehab/retrofit/restoration overall project or program management
• Pipelines • Contract type
• Sewer Systems 5. Suppliers
• Water treatment & distribution systems Participants in the Construction Process Manufacturers,
• Power & communication networks 1. Owner distributors, research,
• Landfills • Private or public promotions
• Conceives the construction project Materials and equipment
Mass quantities of basic materials: earth, • Increasing level of sophistication sales
rock, steel, timber, and concrete 2. Designer Equipment Rental
Constructors need knowledge of engineering • Architects 6. Fabricators
and geology 1. Size of firms ranging from Structural steel, pre-
Engineers and builders are often specialized single practitioner to large castors, wood products
Greatest impact on land and water integrated firms 7. Labor/Trade Unions
High degree of mechanization 2. Mostly building and 8. Government
Contracts awarded through competitive residential construction Federal, State, local, and
bidding • Engineers quasi-government
1. Civil, mechanical, Owner/client
Industrial Construction structural, electrical, 9. Utility Companies
• Very large scale projects chemical, environmental, Electric, communications,
• High degree of technological complexity geotechechnical, and water, gas, sanitary sewer
• Designed and built by the largest firms with multidiscipline Private petroleum pipelines
the highest level of technical sophistication Owner or service provider
• Represent 5-10% of the market 3. General Contractor Integral part of the
• Petroleum refineries • General contractor also called process
• Steel mills & aluminum plants “Prime” contractor Existing facilities in
• Chemical processing plants • Specialty contractors working as conflict with new
• Fossil fuel & nuclear power plants subcontractors construction
• Other heavy manufacturing facilities • Organization ranges from small, Interruption of service can
one-person company to large, be very costly
Complex mechanical systems, process piping, integrated A/E/C firms
and instrumentation • Part of a design-build team 10. Industry Associations
Civil, but also mechanical, chemical, and Organizations of
electrical engineering disciplines involved 4. Construction Manager construction contractors
o Mostly private ownership (in Two principle divisions of CM Organizations of the design
western countries • CM for Fee and management professions
(management services only) Construction material and
Overview of the Construction Industry equipment suppliers and product
• CM At Risk
research
– Operates
Construction Industry is further subdivided Construction labor
similarly to a GC or DB with no
into sectors or segments by: organizations
labor or capital equipment
• Public vs. private ownership/funding Coordination and
• Can encompass the
• Union labor vs. open shop arbitration
management of the design process as
• Organization and method of project delivery Inspection, specifications, and costs
well as construction
Functions and services – Disadvantages include complexity of
• Industry information and Construction by General Contractor evaluating proposals
communication – Also referred to as “Prime
• Development and maintenance of Contractor” • CM Contract -- Fee (management
standards – Most common method of delivery services only) also referred to as
• Interindustry coordination – Contractor bears substantial risks “Agency”
• Collective bargaining and financial responsibility
• Statistics (market & industry) – Facility designed by in-house – Specialized construction skills through
• Meetings and conventions architect/engineer or by design all project stages including
consultants preconstruction
11. Professional Services – Often requires specialty – Provides close coordination between
Business/management subcontractors design and construction
consultants – Eliminates impact of conflicts of
Legal council Specialty contractors might include those interest
CPA firms specializing in one of the following: – Independent and objective evaluation of
Surety Companies costs, schedules, and performance
Financial • Excavation – Potential saving in time and cost
Institutions/Lenders • Steel erection – Disadvantages include no risks
Insurance agents • Concrete associated with costs increase
– Cast-in-place
12. Adjacent Owners and the Public At-Large – Prestressed/Precast CM Contract – “At-Risk”
Existing businesses, • Masonry – CM assumes financial risks similar
institutions, and residences • Timber/wood framing to a GC
adjacent to the • Piping/plumbing – CM manages all phases of the work
constructed facility • Clearing and grubbing without performing any actual work
Civic organizations and • Blasting/demolition tasks
community groups • Electrical – CM’s only resources are management
Railroads and public lands • Painting personnel
• HVAC – Contractors/subcontractors have a
Project Delivery Organization • Environmental remediation direct contract privity with CM
• Construction by owners forces • Many, many others – Contract form is often a negotiated
• Owner-managed construction guaranteed maximum price
• Construction by general contractor arrangement
• Design-build team • Design-Build (Turnkey) – Disadvantages includes lack of
• CM Contract – Single firm or team responsible for impartiality
design and construction minimizes
Construction employing owner forces coordination problems
– Usually small in-house construction – More efficient designs with the
or renovations interjection of constructability and
– Industrial projects or institutional innovation
(such as hospitals or schools – Often employs fast-track
Owner-managed construction construction
– Residential/commercial building – Benefits include reduced overall
developers delivery time and “one-stop
– Industrial or institutional shopping” for the owner