UNIVERSITY OF GONDAR
INSTITUTEOF TECHNOLOGY
DEPARTMENT OF CIVIL ENGINEEREING
Construction Management(Ceng5204)
Chapter one
Introduction to Construction Industry
& Construction Management
Outline
3
Introduction to construction industry
Major sectors in CI
Characteristics of CI
Introduction to Project Management
project
Project management
Main Parties in Civil Engineering
Introduction to CI
4
Construction Industry (CI) : is an industry which
involved in the
planning,
execution and
evaluation of all types of civil works.
…Cont.
5
In general, there are three types of construction:
Building construction:
Heavy / civil construction: including works
such as bridges, roads, canals, dams and
buildings.
Industrial construction: including medicine,
petroleum, chemical, power generation,
…Cont.
6
Characteristics of CI
7
Nature of production:
Usually on site
Changing supply-chain relationship and
production site
Exposed to inclement weather condition
Health and safety concerns
Nature of product:
Large, heavy, durable, expensive,
…Cont.
8
Demand for the product
Demand is usually driven by ‘other’ goods
and services; not controlled by industry,
Time lags b/n demand and supply is long.
…Cont.
9
The Workforce
labor-intensive industry despite the
advancement in modern technologies.
Structure of industry:
Fragmented industry
Large uncertainty
…Cont.
10
. Sequential process
Need ID Design Bid Build
Client A/E Client Contractor
Fragmented project participants
Introduction to PM
11
A project is a temporary endeavor undertaken to create unique
produce or service.
A temporary endeavor: Has a defined beginning and
end.
Creates a unique Product or Service: Every project
entails unique features of either stakeholders, production
approach, governance, context (environment), etc
Is progressively elaborated: A project has different
phases and the knowledge accumulated increases as it
passes through these phases.
…Cont.
12
Component of a business plan: A
project (or the product it delivers) is not an
end by itself, it is a means to an end
(objective).
Project goals
Levels and functions of management
13
.
Introduction to PMBOK
14
Project
. Management Body
In t e of Knowledge
Ski rperso
lls nal Construction Industry
Practices,
Technologies,
Standards and
Regulations, etc.
n e ral ent
Ge agem e & n
n
Ma wled
g s ta
o d er e
Kn ls Un g t t
h
l
Ski n
di ojec nme
Pr viro
En
nt
Project
ProjectManagement
Management
Project management knowledge are
. Project
ProjectIntegration
Integration
Management
Management
Project
ProjectScope
Scope
Management
Management
Project
Project
Time
TimeManagement
Management
Activity definition
Activity Activity definition
Develop project charter
Scope planning Activitysequencing
sequencing
DevelopDevelop project charter Scope planning Activity resource estimating
Developpreliminary project
preliminary project
Activity resource estimating
Activity
statement Scope definition
Scope definition Activityduration estimating
duration estimating
statement
Develop project management plan Create WBS
Schedule development
Schedule development
Develop project management plan Schedule
Direct
Directand manage project Create WBS Schedulecontrol
control
and manage project Scope verification
execution Scope verification
execution
Monitor and control project work Scope control
Monitor and control project work Scope control
Integrate
Integratechange management
change management
Close project
Close project
Project
ProjectQuality
Quality Project
ProjectHuman
HumanResource
Resource
Management
Management Management
Management
Quality planning
Quality planning Human resource planning
Perform quality assurance Human resource planning
Project Perform quality assurance Acquire project team
ProjectCost
CostManagement
Management Perform quality control Acquire project team
Cost estimating Perform quality control Develop project team
Cost estimating Develop project team
Cost budgeting Manage project team
Cost budgeting Manage project team
Cost control
Cost control
Project
ProjectRisk
Risk
Management
Management
Risk management Project
ProjectProcurement
Procurement
Risk management
Project
ProjectCommunication
Communication planning Management
planning Management
Plan
Management
Management
Risk identification
Risk identification Plan purchasepurchase
and
and
Qualitative acquisition
Communication planning Qualitativerisk analysis
risk analysis acquisition
Plan contracting
Communication planning Quantitative
Quantitative riskAnalysis
risk
Analysis Plan contracting
Request
Information distribution
Information distribution
Risk
Riskresponse
response
Planning
Planning Requestseller responses
seller responses
Risk monitoring and control Select sellers
Performance reporting Risk monitoring and control Select sellers
Contract
Performance reporting Contractadministration
administration
Contract
Manage stakeholders
Manage stakeholders Contractcloser
closer
. Construction
ConstructionSpecific
Specific
Project
ProjectManagement
Management Knowledge Areas
Knowledge Areas
Project
ProjectStakeholders
Stakeholders Project
ProjectSafety
Safety
Project
Project Project
ProjectFinancial
Financial
Environmental Management
Management
Management Management
Management
Environmental
Management
Management
Management Financial Planning
Identify stakeholders Safety Planning Financial Planning
Identify stakeholders Safety Planning Environmental Financial Execution
Environmental Financial Execution
Plan stakeholders Management Safety Execution
Plan stakeholders Management Safety Execution planning Administration and
planning Administration and
Manage Stakeholders Administration
Manage Stakeholders Administration Environmental
Environmental Records
Engagement and reporting Records
Engagement and reporting assurance
assurance
Control Stakeholders Engagement Environmental
Control Stakeholders Engagement Environmental
Control
Control
Project
ProjectClaim
Claim
Management
Management
Claim identification
Claim identification
Claim quantification
Claim quantification
Claim prevention
Claim prevention
Claim resolution
Claim resolution
Project life-cycle
17
may be viewed as a process through which a
project is implemented from beginning to end.
often very complex; however, it can be
decomposed into several stages
There is no single best approach in organizing
project management throughout a project's
life cycle.
…Cont.
18
…Cont.
19
In summary the project phases can be summarized
as follows:
a. Preconstruction phase:
A-1 conceptual planning
owner hires key consultants including the designer
and project manager,
selects the project site, and
establish a conceptual estimate, schedule, and
…Cont.
20
A-2 Schematic design:
the project team investigates alternate design
solutions, materials and systems.
Completion of this stage represents about
30% of the design completion for the project.
…Cont.
21
A-3 Design development:
Designing the main systems and components
of the project.
This stage takes the project from 30% design
to 60% design.
A-4 Contract documents:
Final preparation of the documents necessary
for the bid package.
…Cont.
22
b. Procurement phase (Bidding and award
phase)
In fast-track projects, this phase overlaps with
the design phase.
If the project is phased, each work package
will be advertised and bid out individually.
c. Construction phase
The actual physical construction of the project
…Cont.
23
d. Closeout phase
In this stage, the management team must
provide documentation, shop drawings, as-
built drawings, and operation manuals to the
owner organization.
The relationship of management theories
24
Portfolio, program & projects
25
.
Portfol
• Collection of Programs/Projects for an
io overall business objectives
• Group of related projects for a
Progra
m common outcome or collective ability
• Pre-determined objectives
Project
s
• Means to satisfy program / portfolio
objectives
Management functions
26
…Cont.
27
Planning: a systematic thinking about ways and
means for accomplishment of pre-determined goals.
Organizing: Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility
relationships.
…Cont.
28
Staffing: involves:
Manpower Planning Recruitment, selection &
placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.
…Cont.
29
Direction: has following elements:
Supervision
Motivation
Leadership
Communication
…Cont.
30
Controlling: has following steps.
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the
standards and finding out deviation if any.
Corrective action.
Main Parties in Construction Project
31
.
Indirect stakeholders’
boundary
Users
Contractor
Regulatory/Statutory
bodies Suppliers
Client
Direct stakeholders’ boundary
Trade Unions Financing
institutions
Consultant
The general public
Client
32
The client is the initiator and owner of the
project
The client is the most important party who is
active from inception to completion and event to
post-occupancy maintenance.
…Cont.
33
Clients may be classified as Public sector clients
and private sector clients.
A. Public sector clients
Central Government Offices (Ministries)
Local Authorities (Regional or Town)
Public Corporations
B. Private sector clients
These are private individuals & private
Public Sector Agencies
34
A. Statutory Authorities
These bodies offer technical advice during
design and construction in their
respective areas.
E.g. electric, water, Fire Authority
B. Municipalities and Government Authorities
These bodies offer the basic Land permit
…Cont.
35
Has responsibilities to:
Assigns the Engineer;
Pays the due payments for the contractor;
Provides the site and right of access to it in
due time;
Looks into the statutory aspects of the
construction such as permission to construct
Engineer
36
Is supposed to act professionally with integrity
and impartiality (although he has to protect the
interest of the Employer as well)
His authorities can be limited [by specifying
matters he needs to get approval from the
Employer on PCC)
…Cont.
37
Other responsibilities
Issuing variation
Certifying additional payment
Issuing Defect Liability Certificate
Contractor
38
Execute the Work (object of the Contract) with
due diligence and in good faith
Keep operations and the Site safe and secure
Need to produce performance security and satisfy
other formalities;
Other participants
39
Insurance Companies:
Banks:
Suppliers:
Trade (labor) unions:
40
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