CVIL 461

ORGANIZATIONS IN
CONSTRUCTION
 PROJECT COALITION

OWNER / CLIENT DESIGN CONSULTANT CONSTRUCTION

MANAGER / CONTRACTOR
 PROJECT COALITION:
OWNER / CLIENT
• The main stakeholder of the project
• Financers
• Private Institutions & Companies & Individuals
• Public Institutions
• Not-for-profit Organisations
• PPP – Public/Private Partnerships
PROJECT COALITION: DESIGN CONSULTANT
• Designs the project based on local and national specifications
• Tasked with understanding the Client’s needs
• Produces Contract Documents
• Design Drawings
• Technical Specifications
• Legal Permits Acquired from Government Institutions e.g. Town Planning Department,
Municipality.
• Bill of Quantities
• May also act in contract administration during construction
• Checking quality of work, issuing change orders, approving payment reports etc.
DESIGN CONSULTANCY ORGANIZATION
CIVIL
ENGINEER

SURVEYOR ARCHITECT

DESIGN
CONSULTANT
- MANAGER

QUANTITY MECHANICAL
SURVEYOR ENGINEER

ELECTRICAL
ENGINEER
 DESIGN Interior Architects Acoustic Landscape Environmental
CONSULTANT: Engineers Architects Engineers

OTHER
SPECIALISTS
Lighting Designer Security Fire Safety Facilities Manager
Consultant Consultant
 PROJECT COALITION:
CONSTRUCTION MANAGER
/ CONTRACTOR
• The main undertaker of the project.
• Can be one single company or multiple companies
• May use subcontractors for faster & more specialized work
• Coordinates the 5M’s of the project to reach budget, cost and quality targets
PROCUREMENT MODELS

DESIGN – BID – DESIGN & BUILD

BUILD
DESIGN – BID – BUILD MODEL

CONTRACT ADMINISTRATION
DESIGN – BID – BUILD MODEL
• Advantages:
• Well defined roles and relationships (Clear separation of design and
construction phases) => minimizing conflicts of interest.
• Reduced Risk and Uncertainty for the Owner (since the design is
completed before construction)
• Competitive bidding (Lowest price/Greatest economic efficiency)
ensures cost efficiency
• Construction Responsibility transferred to Design
• Disadvantages:
• Longer Project Duration (due to linear sequence: design → bidding
→ construction)
• Design is not reviewed for constructability => Higher Potential for
Cost Overruns (due to design errors or unforeseen issues)
• Limited Collaboration Between Design and Construction Teams (If
design flaws are discovered during construction, the contractor may
seek additional compensation, leading to disputes)
DESIGN & BUILD MODEL
DESIGN & BUILD MODEL
• Advantages:
• Good communication between design & construction
team (contractor and designer work together, minimizing
miscommunication)
• Fast-track & Greatly Reduced Project Time (design and
construction phases overlap)
• Design is done with constructability and cost efficiency as
the priority.
• Easier incorporation of changes
• Disadvantages:
• Potential for Higher Initial Costs (less competitive bidding,
meaning the owner may not always get the lowest price).
• Owner has much less control over work
CONSTRUCTION MANAGEMENT
APPROACHES

AGENCY CONSTRUCTION CONSTRUCTION

MANAGEMENT MANAGER AT RISK

(manager (manager will, at some relatively early

operates throughout stage of design, provide
the project as the cost and schedule commitments to the
agent of the owner owner and take on the responsibility
to manage of completing the job within the time 13

the entire project) frame and cost stated)

 ORGANIZATION OF A
CONSTRUCTION
PART 2 MANAGEMENT
COMPANY
CONSTRUCTION MANAGEMENT
COMPANY – MAIN OBJECTIVES
• Offer specialized construction services (by expert knowledge )
• Complete construction projects successfully
• Continuous improvement: development of know-how and
construction technologies (Invest in innovation, research, and new
construction methods to enhance efficiency )
• Adapt to the market changes and survive (e.g., shifts focus from
residential to renewable energy projects in response to industry
trends.)
• Train and develop the workforce
• Comply with social, environmental and sustainability responsibilities
(uses recycled materials and energy-efficient designs to meet green
building standards.)
• And most importantly make profit!
 CONSTRUCTION COMPANY ORGANIZATION

• A Construction Management (CM) company has a well-defined hierarchical structure to

efficiently manage projects, ensure smooth operations, and optimize resource utilization.
• The structure varies based on company size, project complexity, and specialization.
CONSTRUCTION MANAGEMENT COMPANY-
ORGANIZATIONAL STRUCTURE
• Shareholders: The owners or investors of the construction management company. They
provide the capital and have the ultimate control over the company’s direction.
• Board of Directors: A group of elected individuals who represent the shareholders'
interests and provide strategic guidance for the company’s management.
• Administrations: This unit handles the day-to-day management and organizational
support for the company's operations, ensuring smooth internal processes (e.g., HR
management, document control, compliance, etc.)
• Services: Provides specialized construction-related services that support project
execution and delivery (e.g., temporary-works design, engineering, technical support,
and quality assurance, R&D construction economics, purchasing, etc.)
• Business Development: Focuses on growth strategies and the acquisition of new
projects and clients.
• Construction Operations: Manages the execution of construction projects and oversees
the fieldwork (includes project managers, site supervisors, and construction workers).
• Finance and Accounts: Manages the company’s financial health, ensuring effective use of
resources and profitability (accounting, budgeting, financial reporting, and cash flow
management.)
CONSTRUCTION MANAGEMENT COMPANY-
SERVICES DEPARTMENT
 ORGANIZATION OF
PROJECT AND
PART 3 SITE MANAGEMENT
TEAMS
 PROJECT/CONTRUCTION MANAGER’S MAIN
ROLES

• ORGANIZING THE MANPOWER, MATERIALS AND MACHINERY

• DIRECTING AND COORDINATING THE ACTIVITIES
• DECISION MAKING
• PLANNING AND UPDATING SCHEDULES
• COST ESTIMATING
• RECORD KEEPING
• 3. Construction Manager (CM)
• Scope: Supervises the physical construction activities on-site.
• Responsibilities:
• Manages on-site contractors and labor.
• Ensures adherence to project specifications and safety regulations.
• Coordinates daily construction activities.
• Resolves technical and operational issues on-site.
• Conducts quality control and inspections.

• Focus: Field execution, construction quality, and site safety.

• Authority: Reports to the Project Manager.
• 1. Project Manager (PM)
• Scope: Manages a single construction project from start to finish.
• Responsibilities:
• Develops project plans, schedules, and budgets.
• Coordinates with stakeholders, including clients, engineers, and contractors.
• Ensures the project meets scope, time, and cost constraints.
• Manages risks, procurement, and compliance with regulations.
• Tracks progress and reports to senior management.

• Focus: Execution of one project efficiently within constraints.

• Authority: Reports to a Program Manager.
• 2. Program Manager
• Scope: Manages multiple related construction projects under a single
program.
• Responsibilities:
• Oversees multiple project managers.
• Aligns projects with strategic business goals.
• Manages resource allocation across projects.
• Ensures interdependencies between projects are handled.
• Provides high-level risk management and financial oversight.
• Focus: Strategic alignment of multiple projects within a program.
• Authority: Higher than a project manager; reports to senior executives.
SITE MANAGEMENT TEAM – Smaller Projects