PROJECT CONSTRUCTION AND MANAGEMENT

MODULE 1a: INTRODUCTION TO ENGINEERING MANAGEMENT

Chapter Objectives
After completing this lesson/module, the students should be able to:
1. Define engineering management and discuss its scope, functions, and relevance in
modern engineering practice.
(Cognitive – Understanding / Level: Discuss)
2. Differentiate between engineering managers and traditional managers in terms of
roles, decision-making, and required competencies.
(Cognitive – Analyzing / Level: Differentiate)
3. Apply principles of engineering management in managing teams, resources, and
projects in simulated engineering scenarios.
(Psychomotor / Affective – Application and teamwork / Level: Apply)

Background of Engineering Management

Engineering management and leadership is a “broadly integrative and synthesis-focused

enterprise engineering discipline”1, where, akin to mechanical engineering and civil
engineering, design and synthesis are key elements of the engineering work. Engineering
management covers the gap between engineering and business management, namely
the combination of technical and economic decision-making with analytical skills,
optimization capabilities, and technical product development.

When industrial revolutions emerge, engineering innovation is essentially causing the

production of goods and services in a society to be accelerated due to a general-purpose
‘power’. For example, the first revolution was powered by steam; the second one by
electricity; and the third one by computing. This new and fourth industrial revolution, as
many believe, is being powered by data and AI. Companies who are restructuring or building
themselves to thrive in it form what we call, Industry 4.0.

Increasingly, all industries are becoming more data-driven and thus are basing their
business decisions on all the digital data collected across the supply chain. Because of the
speed of innovation in this new era, engineers are being increasingly brought to the decision
table to analyze and interpret the massive amounts of data to help make fast, robust
economic decisions, and to apply engineering management skills to better lead engineering
teams to exploit new opportunities and develop smarter products, platforms, and services.
With the rise of Industry 4.0, where technologies combine human, machines, and data, a
modernized form of engineering management has arisen. In this new era, engineering
management must have their decision making supercharged by data and artificial
intelligence (AI).

At its fundamental core, the field of engineering management combines technical

engineering expertise, human leadership, specific business management concepts, and
advanced technologies. Today’s engineering managers must be skilled Industry
4.0 practitioners and leaders who can guide diverse engineering teams and oversee complex
service or product development that always leverage and consider the role of data. Their
responsibilities include safety, sustainability, resource allocation, team building, project
planning, budgeting, and product development linked with economic and financial
outcomes. They must also oversee execution in terms of technology deployment.

Effective engineering management matters enormously. It influences an organization’s

financial outcomes (revenue growth, profitability and operational efficiency) and impacts
engineering facilities, largescale projects, clients, workers, and the public. The focus is on
effective implementation of best practices to lead engineering teams with knowledge
spanning the gap between business management and engineering.
Engineering managers serve as the interface between the business and technical sides of a
project, translating business-oriented goals and needs into actionable engineering strategies
and projects. They direct teams to ensure they stay motivated, focused, and efficient.
Their joint knowledge of certain key aspects of business management and technical
engineering concepts allows them to proactively make balanced decisions that will
mitigate project risks, efficiently allocate resources, and consistently deliver high-quality
products within the project budget and schedule.

“Engineers are good at solving technical problems. However, they're often not as strong at
leveraging data science techniques to make evidence-based decisions, or leading and inspiring
diverse teams with empathy and inclusiveness.
- C. Fred Higgs, III, Faculty Director, Master of Engineering Management & Leadership (MEML)
Degree Program

Types of Engineering Management

Within the field of engineering management, roles vary by specialization. Here are some of the
fields within engineering management and the specific responsibilities in each role:
• Mechanical engineering managers lead teams, projects, and innovations in the design
and improvement of mechanical systems, typically in specialized areas like automotive,
robotics, and electronics.
• Bioengineering managers lead teams, projects, and innovations in the interface of
medicine and engineering. They participate in the design of medical and diagnostic
devices, biocompatible materials, and advance biomedical engineering, ecological
engineering, and orthopedic medicine.
• Chemical and Biomolecular engineering managers lead teams, projects, and
innovations in chemical plant operations, waste management, life sciences, and the
production of items such as medicine and plastics on a large scale. Their work focuses
on the study and manipulation of chemicals and biological molecules, which often finds
applications in materials and nanotechnology, engineered biological systems, energy,
sustainability and the environment. When chemical-based innovations emerge, these
managers lead engineering teams to scale them up.
• Civil and Environmental engineering managers lead teams, projects, and
innovations related to societal infrastructures. Projects can include bridges and
roadways, and ecological improvements, like contamination remediation, green energy,
and infrastructure for smart cities.
 • Electrical and Computer engineering managers lead teams, projects, and
innovations in the study, design, and development of electricity, electronics,
electromagnetism, and computer hardware and software, ranging from electrical
components and information technology hardware to supercomputers and cloud-based
hardware and cyber-infrastructure. Semiconductor manufacturing is another area that
is filled with these engineering managers.
• Industrial and Systems engineering managers lead teams, projects, and innovations
in the optimization and development of industrial and manufacturing systems,
processes, machines, and organizations.
• Materials Science and Nanoengineering managers lead teams, projects, and
innovations in the study, discovery, creation, testing, and use of materials (like advanced
plastics and graphene) by understanding their behavior from the the atomic to
macroscopic scale. This is done in order to create tools and materials solutions for
industry or human problems.
• Software engineering managers lead teams, projects, and innovations in the
development of advanced software systems and computer programs, many of which are
cloud based, platform based, and increasingly incorporating AI and machine learning.

The Progression from Individual Contributor to Engineering Manager

As undergraduates, engineers are expected to pass rigorous math, science, and engineering
classes in order to learn the “hard skills”, or technical skills, required to become an individual
contributor in their chosen specialization. For many engineers, working as an expert in their
field–whether Aerospace or Mechanical, Environmental or Chemical–is the end goal and a
fulfilling career.

But for those engineers who feel called to lead engineering, becoming an Industry
4.0 engineering manager and business leader can be a difficult and confusing path for three
main reasons:

1. The Chicken-or-Egg Dilemma: Many companies will only consider candidates with
demonstrated managerial/leadership experience, but the only way to get this
experience is by managing and leading teams. Where is an engineer supposed to start?

2. Hard Skills Now Include Industry 4.0 AI and Data Science Skills: AI is a general-
purpose technology that will transform every industry. Every engineering discipline will
be deeply impacted by it, from molecular dynamics in chemical engineering, to smart
buildings and infrastructure in civil and environmental engineering. Opportunities
presented by big data and AI are increasing exponentially, and the engineer who expects
to have a thriving career will not be able to sit on the sidelines. Data is the ‘blood’ that
connects both devices in the Internet of Things and technologies such as 3D printing,
digital twins, and autonomous vehicles. Today’s engineering managers and leaders
must understand the strategic, economic and operational benefits of these advances,
while communicating the value of them to the internal gatekeepers over the resources-
-the business executives.
 3. Soft Skills and Emotional Intelligence are Core to Effective Leadership: Being an
effective engineering manager requires not just the technical skills they learned as
undergraduates, but a new toolkit of soft, human leadership skills that don’t always
come naturally to more systematic, logical thinkers. These include: motivating and
inspiring employees (“EQ” or emotional intelligence), persuasion, servant leadership,
communication, project management, and more. Most MSEs (Master’s or M.S. Degrees
in Engineering) typically won’t focus on these important human leadership areas;
instead, they'll push engineers deeper into their chosen area of specialization.

What is an Engineering Management Master's Degree?

An engineering management graduate degree can help engineering professionals more easily
and confidently transition from being an individual contributor to an engineering manager and
leader. The engineering master’s degree (often called a “MEM” degree, or Rice “MEML” degree)
is ideal for individuals with existing engineering educational and work/business experience
who want to advance their careers and take on leadership roles.
The MEM degree is not merely a combination of engineering and management, it bridges the
gap of information between engineering and business management in order to train engineers
to lead technical teams and units. The Master of Engineering Management and Leadership
(MEML) degree at Rice University is a MEM degree, yet it is supplemented by a focus on
educating engineers to lead within this exciting, fast-evolving Industry 4.0 (I4) landscape.
In an engineering management master’s degree program, professionals can learn and apply
both the I4 technical skills (for example, augmented reality or additive manufacturing) and soft
skills that one often can’t acquire through work experience alone. These programs are designed
to sharpen your leadership skills while broadening your business, managerial, technical
engineering, and advanced tech knowledge, so you’ll be prepared to manage engineering teams
and projects of any size or level of complexity.
While there are many ways to learn related skills like communication and project
management, an advanced engineering management program provides a holistic, all-in-one
curriculum and a unique experience to learn in personalized, smaller class sizes from
industry experts who have been on the frontlines of data-driven digital transformation. For
example, the MEML@Rice degree program has one of the highest numbers of engineering
professors in the practice, a title for reserved for engineering professors with 10+ years of
industry experience. The MEML curriculum allows students to gain invaluable experience that
will help them reskill and upskill through the Capstone project, where students develop I4-
relevant technological solutions to their industry’s latest engineering and business problems.
Whichever business engineering management role you pursue, the Master of Engineering
Management and Leadership (MEML) program at Rice will help you develop the skills you need
to succeed. With specializations in computer and data science, skill sets designed to develop
Industry 4.0 and data-driven leaders, a world-class faculty, and a robust curriculum, the
program is designed to prepare you for a successful engineering management or technical
leader career.
Sources: 1Bozkurt, Ipek. "Quantitative analysis of graduate-level engineering management
programs." 2014 IEEE International Technology Management Conference. IEEE, 2014.
What is Engineering Management?

In his book, Roberto O. Medina defines Engineering Management as a specialized form of

management that is required to successfully lead engineering or technical personnel and
projects. It combines the problem-solving and analytical skills of engineering with the
organizational, administrative, and planning abilities of management.
“Engineering Management is the art and science of planning, organizing, allocating
resources, directing and controlling activities which have a technological component.” –
Roberto O. Medina
In essence, engineering management focuses on managing technology-driven enterprises,
where both human and material resources are applied to solve problems, innovate, and
deliver results effectively and efficiently.

Why Engineering Management is Important

As technology advances, engineering work is no longer confined to technical problem-
solving. Engineers today must also:
• Manage budgets and teams
• Handle client communication
• Understand market dynamics
• Comply with regulations
• Lead multidisciplinary projects
Thus, engineering management is vital in producing well-rounded engineers who are
equipped not only to design and build but also to lead and manage.

Roberto G. Medina’s Engineering Management (Chapter 1: “The Field of Engineering

Management”) touches briefly on the prehistoric origins of engineering, highlighting how
even early human innovations laid the groundwork for what would become the formal
engineering profession. Here are the key insights he presents about:
Prehistoric Contributions & Early Functions of Engineers
1. Stone-bladed Axe & Irrigation: c. 6000–3000 B.C.
• Medina cites the stone-bladed axe, a pivotal innovation in tool-making.
• He also highlights the irrigation systems developed to support early agriculture—
recognizable as the first hydraulic and civil engineering efforts
• These developments illustrate that prehistoric people already engaged in
engineering-like functions: designing tools, managing water, and shaping their
environment.

Broader Historical Engineering Milestones

While not prehistoric, Medina situates these early contributions within a longer timeline of
engineering achievements:
• Pyramids of Egypt (3000–600 B.C.): major structural/construction projects.
• Roman road-building (600 B.C. to A.D. 400): infrastructure and transport
engineering.
• Followed by advancements in paper, gunpowder, steam engines, and modern
machinery
Medina’s Framework: Functions of the Engineer (Across History)
Even though his reference to prehistoric times is brief, Medina defines 10 core engineering
functions that span from antiquity through modern times:
1. Research – learning about nature and codifying usable theories
2. Design & Development – turning ideas into physical systems
3. Testing – verifying functionality of designs
4. Manufacturing – overseeing production processes
5. Construction – managing civil engineering projects
6. Sales – supporting customers with technical expertise
7. Consulting – advising clients and organizations
8. Government Service – regulatory and oversight roles
9. Teaching – educating future engineers
10. Management – directing people and resources to achieve goals

Though prehistoric engineers lacked formal education or structure, their stone tools
and irrigation works represent early examples of research (tool-making), design, water
management (construction)—functions that would later formalize into Medina’s
framework.
Module 1b

Objectives: At the end of the module, students should:

1. explain and differentiate the concepts of organization, management structures,
principles of good organization, levels of management, and management functions,
with at least 80% accuracy in class discussions and written assessments;
2. analyze and apply the principles of delegation of authority and functional
management skills (technical, human, conceptual, administrative, decision-making)
by preparing an organizational chart and planning framework for a sample
construction project, demonstrating clarity of roles and functions;
3. evaluate and justify the importance of effective organizational design, planning, and
management functions in ensuring construction project success through a reflective
paper or group presentation that highlights accountability, teamwork, and ethical
responsibility in project management.

Organization and Management

What is an Organization?

Fajardo begins by laying the foundation of what an organization is in the context of

construction and business.
• An organization is essentially a structured group of people brought together to
achieve a common objective.
• It exists because no single individual can perform all tasks in a construction project
— it requires coordination, specialization, and unity of purpose.
• It is both a social system (people interacting) and a technical system (methods, tools,
and structures for efficiency).
•
In construction, the organization provides the framework for mobilizing resources
(manpower, equipment, materials, finances) and assigning authority and responsibility.

Structural Organization

This refers to the formal arrangement of authority, responsibility, and communication.

Fajardo highlights that in construction management, there are different organizational
structures that firms adopt depending on size, type of project, and management philosophy.
• Line Organization – Simplest form, authority flows directly from top to bottom (used
in small construction firms).
• Line and Staff Organization – Staff members provide expert advice, while line
executives retain decision-making authority (common in medium to large firms).
• Functional Organization – Specialists are assigned authority over a specific function
(finance, engineering, operations). Coordination can be complex.
 • Matrix Organization – Combines functional and project-based structures. Employees
report to both functional managers and project managers (common in large
construction projects).
Fajardo emphasizes that in project construction, the structural organization must match
the project’s scope and complexity.

Principles of Good Organization

Fajardo underscores certain guiding principles to ensure efficiency and effectiveness. These
include:
• Unity of Command – Each subordinate should report to only one superior to avoid
conflict.
• Scalar Chain – A clear chain of command must exist from top management down to
workers.
• Division of Labor – Tasks should be broken down and assigned according to
specialization and capability.
• Delegation of Authority – Responsibilities must be matched with sufficient authority
to execute tasks.
• Balance – No position should be overburdened or underutilized; authority and
responsibility must be balanced.
• Efficiency and Economy – The structure must allow maximum results with minimum
effort and cost.
• Flexibility – Organizations should be adaptable to changes in project requirements,
technology, or market conditions.

These principles are crucial in construction projects where delays, miscommunication,

or redundancy can cost heavily.

Organization and Business

Here, Fajardo links the concept of organization to the business side of construction.
• A construction firm is both a business enterprise (profit-oriented) and a social
organization (people working together).
• The organizational structure affects the flow of capital, efficiency of operations, risk
management, and customer relations.
• For example, poor organizational design leads to wasted resources, while good
organization ensures competitiveness and profitability.

In essence, a well-structured organization is not only about project delivery but also
about sustaining the business in the long term.

Management Structures
Fajardo explains that management structure defines how authority, responsibilities, and
communication lines are arranged in a construction firm or project team.
• Top Management – Owners, executives, or general managers who set policies, goals,
and long-term plans.
• Middle Management – Department heads or project managers who interpret policies
and implement strategies.
• Lower Management – Supervisors or foremen who oversee day-to-day operations on-
site.

The structure reflects the hierarchy of decision-making and ensures that each level
knows its role in the overall success of the project.

Management Functions

Fajardo adopts the classical view of management functions, which are indispensable in
construction:
1. Planning – Defining objectives, forecasting future conditions, and outlining actions.
Example: preparing a construction schedule.
2. Organizing – Grouping tasks, assigning responsibilities, and establishing authority
lines. Example: designating site supervisors and subcontractors.
3. Staffing – Recruiting, training, and assigning personnel. Example: hiring engineers,
skilled workers, and project staff.
4. Directing (Leading) – Guiding, motivating, and supervising staff. Example: giving
instructions on-site and resolving conflicts.
5. Controlling – Monitoring and evaluating performance, ensuring plans are executed
properly. Example: cost control, progress reporting, quality inspections.
These functions are cyclical and continuous; they interact to ensure project success.

Management Responsibility per Management Function

Fajardo stresses that each management function carries specific responsibilities:

• Planning → Responsibility to set realistic goals, anticipate risks, and ensure feasibility.
• Organizing → Responsibility to clarify authority and responsibility, prevent overlaps
and gaps.
• Staffing → Responsibility to select the right people for the right job and ensure proper
workforce development.
• Directing → Responsibility to maintain morale, communicate effectively, and inspire
productivity.
• Controlling → Responsibility to check if standards are met, budgets are kept, and
schedules are followed.

For Fajardo, effective management is about accountability: each function has clear
duties, and failure in one weakens the entire system.
Levels of Management (According to Fajardo)
In a construction firm or project, management is typically divided into three levels, each
with distinct roles and responsibilities.

1. Top-Level Management
(Owners, Company President, General Manager, Executives)
• Scope: This is the policy-making and goal-setting level. They determine the overall
direction of the company and major construction projects.

• Main Functions:
o Planning → Setting long-term objectives (e.g., expansion plans, project
portfolio strategy).
o Organizing → Designing the company’s organizational structure.
o Staffing → Appointing senior managers and department heads.
o Directing → Establishing company culture and motivating key personnel.
o Controlling → Monitoring company-wide performance and profitability.

• Responsibility: Profitability, growth, client relations, reputation, and compliance with

legal/industry standards.

In construction, this level secures projects, financing, and ensures the firm’s survival
in the market.

2. Middle-Level Management
(Department Heads, Project Managers, Resident Engineers, Division Chiefs)
• Scope: The interpreter and implementer of top management’s policies. Middle
managers translate plans into specific programs and projects.

• Main Functions:
o Planning → Preparing detailed project schedules, budgets, and resource
allocation.
o Organizing → Assigning supervisors, subcontractors, and technical staff.
o Staffing → Recruiting site engineers, technical staff, and recommending
personnel.
o Directing → Coordinating site activities, resolving problems between
departments.
o Controlling → Checking progress reports, approving expenditures, monitoring
quality and safety.

• Responsibility: Ensuring that projects are completed on time, within budget, and
according to specifications.

In construction, project managers and resident engineers are key middle managers,
bridging corporate vision with field execution.

3. Lower-Level (First-Line) Management

(Site Engineers, Foremen, Supervisors, Crew Leaders)
• Scope: This is the operational level that deals directly with workers, equipment, and
materials on site.

• Main Functions:
o Planning → Preparing daily or weekly work schedules.
o Organizing → Assigning tasks to workers and teams.
o Staffing → Requesting labor and reporting manpower needs.
o Directing → Supervising crews, giving instructions, motivating workers.
o Controlling → Monitoring workmanship, safety compliance, and resource use.

• Responsibility: Productivity, safety, discipline, and immediate quality of work.

In construction, foremen and site supervisors ensure that actual operations follow
plans and that the workforce is efficient.

Delegation of Authority in Management Functions (Fajardo’s Perspective)

1. Where Delegation Belongs

• In the organizing function, after plans are made, managers must divide work, assign
responsibilities, and delegate authority so that tasks can be performed effectively.
• Delegation is the process of granting a subordinate the right (authority) to decide and
act within defined limits, while the superior retains accountability.

Example in construction: A project manager delegates authority to a site engineer to

approve material requests, but the project manager still bears overall accountability for
costs.

2. Why Delegation is Important

Fajardo stresses that delegation is not optional — it is necessary in construction because:

• Projects are too complex for one person to handle.
• Managers must focus on policy and decision-making, while routine and technical
matters are delegated.
• It promotes efficiency, avoids bottlenecks, and empowers subordinates.

3. Principles of Delegation (as emphasized by Fajardo)

• Authority must equal responsibility → A person cannot be held responsible for
something if not given sufficient authority.
• Unity of Command → Subordinates should receive orders from only one superior.
• Clarity → The scope of authority delegated must be clearly defined.
• Accountability remains with the manager → Even if authority is delegated, the
superior is still ultimately responsible for results.

4. Delegation Across Management Levels

 • Top → Middle: Company president delegates policy implementation to project
managers.
• Middle → Lower: Project managers delegate daily supervision to site engineers or
foremen.
• Lower → Workers: Supervisors delegate specific tasks to workers and crews.

This flow of delegation ensures that decisions are made at the right level where action
takes place.

Functional Management Skills (According to Fajardo)

Fajardo points out that being in a management position in construction does not only mean
having authority — a manager must also possess skills that cut across all management
functions (planning, organizing, staffing, directing, controlling).
The commonly emphasized skills in his discussion are:

1. Technical Skills
• The ability to use specialized knowledge, methods, and techniques in a specific
field.
• In construction: knowledge of engineering principles, construction methods,
estimating, scheduling, and equipment use.
• Important for: lower and middle management (foremen, site engineers, project
managers).

2. Human (Interpersonal) Skills

• The ability to work with, motivate, and understand people.
• Includes communication, leadership, conflict resolution, and teamwork.
• In construction: managing workers on site, dealing with clients, coordinating with
subcontractors.
• Important for: all levels of management, but especially middle managers who serve
as a bridge between top executives and workers.

3. Conceptual Skills
• The ability to see the organization as a whole, understand relationships among
parts, and forecast how changes affect the system.
• In construction: seeing how cost, time, manpower, and quality interrelate in a project.
• Important for: top management (executives, owners) who make long-term strategic
decisions.

4. Administrative Skills
• The ability to plan, organize, coordinate, and control operations.
• In construction: preparing project reports, handling documentation, cost control,
managing contracts, and permits.
 • This overlaps with technical and conceptual skills but emphasizes the managerial
routine and process side.

5. Decision-Making Skills
• The ability to analyze problems, evaluate options, and choose effective solutions.
• Construction managers face daily decisions on manpower, equipment breakdowns,
weather delays, or design changes.
• Requires a blend of technical knowledge, judgment, and experience.

Functional Management Skills in the Planning Process (Fajardo’s Discussion)

1. Planning as a Management Function

• Planning is the foundation of all other functions (organizing, staffing, directing,
controlling).
• It involves defining objectives, forecasting future conditions, and deciding on courses
of action.
• In construction, poor planning almost always leads to delays, cost overruns, and
resource wastage.

Fajardo stresses that effective planning requires a set of functional management skills.

2. Functional Skills Applied to Planning

a) Technical Skills
• Preparing bar charts, CPM (Critical Path Method), and PERT (Program Evaluation and
Review Technique).
• Estimating material quantities, manpower needs, and equipment requirements.
• Understanding engineering drawings, construction methods, and specifications.
Example: A site engineer plans excavation by computing soil volume and selecting
appropriate equipment.

b) Conceptual Skills
• Seeing the project as a whole system: how cost, time, labor, materials, and quality
interconnect.
• Anticipating risks, constraints, and environmental impacts.
• Aligning project plans with company objectives and client expectations.
Example: A project manager balancing project schedule against budget and
manpower availability.

c) Human Skills
• Coordinating with architects, engineers, subcontractors, and workers during
planning.
• Negotiating realistic timelines and responsibilities.
 • Gaining commitment from the team to follow the plan.
Example: A resident engineer discussing activity sequencing with foremen to
avoid conflicts.

d) Administrative Skills
• Preparing reports, permits, and documentation required before project start.
• Structuring the work breakdown (WBS) and assigning roles.
• Setting up procedures for monitoring and communication.
Example: Submitting a construction schedule and manpower histogram to the
client for approval.

e) Decision-Making Skills
• Choosing between alternatives (e.g., subcontracting vs. in-house work, manual labor
vs. equipment use).
• Setting project priorities when resources are limited.
• Adjusting plans due to external factors (weather, material shortages).
Example: Deciding to reschedule concreting due to forecasted heavy rains.

3. Steps in the Planning Process (as Fajardo outlines them)

Fajardo highlights the typical planning sequence in construction management, which
integrates these functional skills:
1. Define Objectives – What should be achieved (scope, quality, cost, and time targets).
2. Collect and Analyze Information – Site conditions, design requirements, available
resources.
3. Forecast Conditions – Anticipate risks, availability of manpower, weather, and market
factors.
4. Identify Alternatives – Different methods, sequences, or schedules.
5. Select the Best Course of Action – Decide based on feasibility, cost, and time efficiency.
6. Formulate Supporting Plans – Manpower plan, material procurement plan, equipment
plan.
7. Communicate the Plan – Ensure all levels (from executives to workers) understand it.