CE 441 Construction
Management
WEEK VII Project Environmental Management,
Project Financial Management, Project Safety
Management, Project Claims Mangement
Project • Project Environmental Management
includes the processes required to ensure
Environmental that the impact of the project execution to
Management the surrounding environment will remain
within the limits stated in legal permits.
Major Environmental
Management Processes
Environmental planning. Identifying what are the
characteristics of the environment surrounding the
construction site and which environmental standards are
relevant to the project and determining what impact the
project will bring to the environment and how to satisfy the
identified environmental standards.
Environmental assurance. Evaluating the results of
environmental management on a regular basis to provide
confidence that the project will satisfy the relevant
environmental standards.
Environmental control. Monitoring specific project results to
determine if they comply with relevant environmental
standards and identifying ways to eliminate causes of
unsatisfactory performance.
Environmental
Planning
Environmental planning involves identifying which environmental standards are relevant to the
project and determining how to satisfy them. It is one of the key facilitating processes during
construction projects planning and should be performed regularly and in parallel with the other
project planning processes.
• A typical environmental impact report for construction
projects contains:
• Introduction about the project.
• Identification of the owner and main contractor.
• Description of the product to be built, mentioning its main
systems.
• Characterization of the influence areas, including site
Environmental localization. Influence areas can be divided into interference
area and influence (direct and indirect) area.
Impact Report • Neighbor projects, either finished, planned or in execution.
• Environmental assessment.
• Analysis of impacts of executing the project in the considered
region or in another, or of not executing the project, regarding
technological, juridical, economical, and social aspects.
• Identification and assessment of impacts to environment.
• Description of planned mitigating responses to negative
impacts and maximizing actions to positive impacts.
• Monitoring program to ensure environmental conservation.
Environmental Assurance
• Environmental assurance is all the planned and systematic activities implemented within the
environmental system to provide confidence that the project will satisfy the relevant environmental
standards. It should be performed throughout the project. Assurance should be provided to all
stakeholders, as environment conservation is a matter of global interest.
Environmental Control
Environmental control involves monitoring specific project results to determine if they comply with relevant
environmental standards and identifying ways to eliminate causes and effects of unsatisfactory results. It should be
performed throughout the project.
Project Financial Management
• Financial management includes the processes to acquire
and manage the financial resources for the project and is
more concerned with revenue source and
analyzing/updating net cash flows for the construction
project than is cost management.
• The major processes are
Project • Financial planning. Identifying key financial issues to be
Financial addressed and assigning project roles, responsibilities
and reporting relationships.
Management • Financial Control. Monitoring key influences identified
under Section 15.1 and taking corrective measures if
negative trends are recognized.
• Administration and Records. Designing and maintaining
a financial information storage/retrieval database to
enable financial control to proceed in a smooth way.
Financial Planning
Financial Control
• Financial control ensures that the bonds are reduced when necessary, calls for
funds from project partners are made as needed, and all insurance and bank
withdrawals/deposits are done at the appropriate times .
Financial Administration and Records
Project Claim Management
Project Claim • Claim Management describes the processes
required to eliminate or prevent construction
Management claims from arising and for the expeditious
handling of claims when they do occur.
CLAIM
IDENTIFICATION
• The identification of a claim starts with sufficient knowledge of the
scope and contract terms to be aware when some activity appears
to be a change in scope or terms requiring a contract adjustment.
CLAIM
QUANTIFICATION
• Once an activity has been reviewed and a decision made that it is worthy
of pursuing as a claim, the next step is to quantify it in terms (usually) of
additional compensation or a time extension to the contract completion
or other milestone date.
CLAIM
PREVENTION
• Clearly the best way to prevent claims is to have no claims to
prevent! Thus, the emphasis is on how to avoid or prevent claims
from arising. The perfect, well-scoped and risk allocated contract
that is well executed will very likely not produce any claims.
CLAIM
RESOLUTION
• Even with a concerted effort to prevent claims they still may arise. There
may be a justifiable disagreement as to whether the claim in question is
a change to the contract or not, or whether the claimed amount of
compensation or time requested is correct.
• Safety Management includes the
processes required to assure that the
PROJECT SAFETY construction project is executed with
appropriate care to prevent accidents
MANAGEMENT that cause or have the potential to
cause personal injury or property
damage.
SAFETY
PLANNING
• Safety planning for a construction project involves a job site analysis of
the hazards inherent in the work and making decisions as to the
measures to be taken to deal effectively with them.
SAFETY PLAN
EXECUTION
• Execution of the project safety plan involves the application and
implementation of the safe construction practices on-site in accordance
with the requirements of the plan.
SAFETY
ADMINISTRATION
AND RECORDS
• Along with governmental laws and regulations that apply to safe
construction practice, there are often requirements for record-
keeping and reporting
Q&A