DETERMINING THE LEVEL OF CONSTRUCTION MANAGEMENT APPLICATIONS IN TURKEY COMPARED WITH CMAA STANDARDS

Transcription

1 Fifth International Congress on Advances in Civil Engineering, September 2002 Istanbul Technical University, Istanbul, Turkey DETERMINING THE LEVEL OF CONSTRUCTION MANAGEMENT APPLICATIONS IN TURKEY COMPARED WITH CMAA STANDARDS M. Kuruoglu, G. Polat Istanbul Technical University, Department of Construction Management, Istanbul, Turkey Abstract Project management is the application of knowledge, skills, tools and techniques to project activities in order to meet the client s needs from a project. Project management fundamentally focuses on the management of time, cost and quality. Construction projects have different characteristics from the projects realized in the manufacturing industry. Therefore, the standards about management of construction projects have been developed by Construction Management Association of America (CMAA) in order to satisfy the special demands of the construction projects. There are a number of initiatives designed to encourage the take-up of project management principles in construction. The aim of this research is to compare the project management applications in Turkish construction sector with CMAA standards by investigating the permeation of the main principles. Firstly, the requisites that should be accomplished by each participant of the project in each phase of the construction process have been indicated. Then the questionnaire has been founded considering the key points of the construction management principles. The respondents were questioned about likelihood of construction management techniques being adopted in the construction process. The survey revealed only a limited application of construction management techniques. It is commonly encountered that site managers or the professionals working on the site consider construction management as a redundant procedure. There have been many hindrances for the adoption of the construction management techniques in Turkish construction sector and it is observed that there isn t a consensus on the basic definitions and concepts. There was a great variation in perceptions: all of the respondents defined the project management in different ways, some of them were erroneous some of them were imperfect. In spite of these negative impressions, there are some positive developments. It is evident that construction management principles can

2 be adopted by the construction sector with the help of the increase in the governmental sanctions, qualified and educated professionals. Introduction Project is a process that is only complete when the owner is convinced that all that was imagined at the very beginning has come true. This process has many parties (owner, contractor, architect, engineer) and phases. However, construction projects are specific, unique and unrepeatable. Therefore, the standarts about construction management have been developed by Construction Management Association of America (CMAA) in order to satisfy the special demands of the construction projects. Construction management is a concept based on the use of labour, machinery, materials and incomeexpenditure in an efficient way and to limit the external effects in order to realize the project in optimum time and minimum cost (Kuruoglu, 2000). Management of project, cost, time, quality, administration of project / contract, project safety programs in the pre-design, design, procurement, construction, post construction phases of the construction are the components of the construction management (CMAA, 2000). The general aim of the research reported in this paper was to test the current level of construction management principles by investigating their penetration into Turkish construction sector. A conceptual framework, drawn from the CMAA standarts and fundamental requirements for the implementation of the construction management principles, was used in this survey. Firstly, the requisites that have to be accomplished by each participant of the project in each phase of the construction process are indicated and the questionnaire has been founded according to these requisites. The first objective was to test the level of understanding of construction management principles. Next, the examined companies were tested for the presence of the indicators of implementation. Finally, the respondents, were questioned as to their attitudes towards application of CMAA standarts. What Is Project Management? There are many definitions of project management to suit different purposes. However, before defining the conceptual framework of the project management, what a project indicates must be clearly interpreted. Project is defined in the Project Management Body Of Knowledge (PMBOK) of the Project Management Institute as (Duncan, 1996) A project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and a definite end. Unique means that the product or service is different in some distinguishing way from all similar products or services. James P. Lewis has defined a project in the Project Planning, Scheduling & Control as A project is one time job that has definite starting and ending points, clearly defined objectives, scope, and (usually) a budget. The key words are one - time, definite starting and ending points, budget, and objectives/scope. Through these, a project is differentiated from repetitive activities such as production, order processing, and so on. (Lewis, 1997). Project is defined in another way in the Project Management Planning and Control as (Burke, 1993) A group of activities that have to be performed in a logical sequence to meet preset objectives outlined by the client. Murat Kuruoglu defined the project as Project is a process that is only

3 complete when the owner is convinced that all that was imagined at the very beginning has come true. (Kuruoglu, 2000). The definitions interpreted above are basically prevalent for the projects executed in the manufacturing industry. In the light of these definitions, project management is defined in PMBOK as Project management is the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among: Scope, time, cost and quality. Stakeholders with differing needs and expectations. Identified requirements (needs) and unidentified requirements (expectations). (Duncan, 1996). Project management can also be defined as follows: The role of managing whole project from inception to completion ensuring that the client s interests are continually represented (CIDA/AIPM, 1995), The project management function is that of overseeing the whole project, commonly focuses on time, cost and quality (CIDA, 1993) and Making the project happen (Burke, 1993). What Is Construction Management? Construction projects have different characteristics from the projects realised in the manufacturing industry. The basic characteristics of the construction projects have been declared by many specialists. Donald S. Barrie and Boyd C. Paulson have stated the distinguishing traits of the construction projects in the Professional Construction Management as Construction projects are intricate and time consuming undertakings. The total development of a project normally consists of several phases requiring a diverse range of specialised services. such as financial organizations, governmental agencies, engineers, architects, lawyers, insurance and surety companies, contractors, building tradesmen. To some degree each construction is unique, and no two jobs are ever quite alike. The contractor sets its factory on the site The construction process is subject to highly variable and sometimes unpredictable factors As a consequence of these circumstances, construction projects are typified by their complexity and diversity and by the nonstandardized nature of their production (Barrie and Paulson, 1992). The peculiarities of the construction projects have also been proclaimed by Dennis Lock in the Project Management as These projects incur special risks and problems of organization and communication. They often require massive capital investment and they require rigorous management of progress, finance and quality (Lock, 1992). Construction project has also been defined in CMAA as follows Construction project is the total effort required in all phases from conception through design and construction completion to accomplish the owner s objectives (CMAA, 2000). As a result of the distinctive properties of the construction projects, the standarts about management of construction projects have been developed by Construction Management Association of America (CMAA) in order to satisfy the special demands of the construction projects. Construction management can also be defined as The

4 process of professional management applied to a construction project from project inception to completion for the purpose of controlling time, scope and quality (CMAA, 2000). As defined in the CMAA, the construction management performs 6 basic functions: Project management: The use of integrated systems and procedures by a team of professionals during project design and construction. As applied to a construction project, project management can be used synonymously with construction management. Cost management: The act of managing the all or partial costs of planning, design, and construction process to remain within the budget. Time management Quality management: The process of planning, organization, implementation, monitoring and documenting a system of policies and procedures that coordinate and direct relevant project resources and activities in a manner that will achieve quality. Project/contract administration: The function of implementing the terms and conditions of a contract, based upon established systems, policies, and procedures. Project safety programs (CMAA, 2000). Survey Design And Measuring Objectives It is a prevalent belief in Turkish construction sector that applicability of construction management is very limited because of the peculiarities and distinguishing properties of the construction projects. The general aim of the research reported in this paper was to test the current level of construction management principles by investigating their penetration into Turkish construction sector. In CMAA standards, construction management consists of 6 basic functions and the requirements of these functions are examined in 5 different phases. In this study, the questionnaire, containing 60 questions (2 questions for each function at each phase), was formed in order to indicate the current applications of the construction management principles in Turkish construction sector. During the evaluation of the questionnaire, the weightiness of the responses was considered. The first objective was to test the level of understanding of construction management principles. Next, the examined companies were tested for the presence of the indicators of implementation. Finally, the respondents, were questioned as to their attitudes towards application of CMAA standarts. Special attention has been given to the following points as preparing this questionnaire in order to receive the most accurate responses: The questions must be simple and easily understandable, The questions must be open ended, Not to repeat similar questions in different steps of the questionnaire, The trap questions have been asked in order to be sure of the trustability of given answers,

5 To determine alternative questions according to the type of the firms (contractor, designer, investor), To provide construction management procedures by asking the optimum amount of questions, To ask more detailed subquestions in order to be sure of the trustability of given answers. The consulting firms offering project management services and contractor firms performing project management were chosen for this investigation. The inquirers visited the firms and asked the questions to the respondents face to face to avoid misleading responses. Survey Results The survey revealed only a limited application of construction management techniques and project management principles in Turkish construction sector. Many hindrances still exist that impede the permeation and adoption of the project management principles. The findings obtained from this questionnaire are presented below: A) In every firm, there is a construction manager and a construction management plan is formed. As well, the master schedules are prepared regularly and project team meetings are organized in the design phase. In addition to these facts, the owner is informed detailed about the project at the procurement phase. B) It s found that all firms are forming daily site reports regularly and the records of purchases of the choosen materials are carried out during the construction phase. It s determined that change order approval procedures are existing and the owner is informed about the cost of the changes in all firms as well. Meetings and in-firm writings are used to obtain project coordination. C) All of the pilot firms defined the project management in differing ways. The distinctive answers given by the respondents about the project management definition can be briefly summarized as follows: Project management consists of planning every step of the project including post construction phase. In other words, imagining what will happen during the project from the begining. If project management is symbolized as a triangle, the corners of this triangle can be specified as quality, time and cost. Fundamentally, project management means managing humans. D) While the differences between site manager and CM are inquired, 11 different types of answers are given by the respondents. The distinctive answers can be briefly summarized as follows; Site manager is responsible for inspecting the work progress on site. On the other hand, CM is responsible for taking precautions in order to provide the progress of work parallel to the project forecasting.

6 CM is responsible for all of the technical, administrative and financial topics, however site manager is responsible only for production of construction. E) It s found that, the 83% of the firms have project procedures manual, 16% of them doesn t have it and 1% are in the endeavour of preparing it. F) 25% of the firms do not renew the forms, 38% renew the forms from one project to the other one, 37% need to renew the forms they use while the problems begin to come out continuously. G) While the respondents are asked if they use alternative methods like feasibility and methods of construction, it s seen that 67% are using so and 33% are not. H) It s observed that, the 50% of the firms use all types of the contracts, the 25% use unit price method, the 8% use lump sum fee and the 17% arrange characteristic type of contracts originated from their special needs. I) The most encountered answer to the question above is all the types. The respondents explain the reason of this answer according to the country conditions or the speciality of the firm they are working with. It s observed that contract type is unit price method if the work is short-termed, there is a possibility of increase in quantities and if there are uncertainties in the project; percentage-of-constructioncost fee if the firm is working as an owner because of the easiness of decision making; lump-sum fee if there are no uncertainties in the project. J) The 33% of the firms are working with their own financial possibilities as 67% of them are working with the help of financial aids. K) The ways of informing the bidders are usually meetings, briefing and writings, giving a detailed report to the bidders can be a way too as well. L) The most interesting answers of the respondents to the question how they evaluate the bids are below: The wanted documents must be fully presented in the bid. List of machinery equipment, guarantee document, undertake document, curriculum vitae and site layout plan (if the firm will establish its own dormitory and refectory for its workers) are observed. Then details are concerned. Bids balanced as eliminating the ones not in accordance with conditions, a new standard is prepared and revised bids are taken. It is checked if the bid is appropriate according to the technical conditions. CM, site manager, technical office, head-quarters are considered as a whole. M) These are the meetings held to maintain project coordination and the most remarkable answers given when the meeting participants are asked : Work progress meetings are done. Executive managers and necessary site personnel participate in these meetings.

7 The project progress is evaluated by weekly or daily meetings. Necessary people in addition to the core project team participate in these meetings. N) This is the summary of 11 different answers given when the material purchase procedure is asked to the firms : It is all stated in the agreement. Usually procurement department deals with purchasing. Alternative materials are searched if there are any. O) The 92% of the firms prepare work progress schedule while 8% do not. P) The control procedures during the construction, daily inspections, field reports and the evaluation of the results are asked and the summary of given 11 different answers is stated: The amount of work every unit must do is defined. This is compared with the daily reports coming from the field. Q) The 67% of people interviewed has stated that they have faced occupational safety accidents while 33% have not. The most common type of accident is falling from flat. It is also stated that workshop accidents, fall of material on head, getting wounded during production and electric shock accidents happen quite often. A firm has stated that one of their trucks had been assaulted by machine gun fire in the east region. R) The 83% of the firms prepare punch lists while 17% do not. S) It is observed that operations for final acceptance take between 1 month to 1 year due to the specifications and bureaucracy. T) In 90% of the firms, it is observed that the cost of construction and the construction budget do not match each other. It is also stated that the variance occurs between 2% and 40%. Only one firm has stated that construction cost and budget match each other. Conclusion This analysis of the level and application of construction management principles within Turkish construction firms has revealed a distinct lack of understanding and application of the basic techniques required for a construction management culture to exit. It is believed that making plans for the future is very difficult as a result of the economic inconsistency in Turkey. Commonly, project management is considered synonymous with time management term. It is generally considered that cost management cannot be accomplished properly due to high inflation in Turkey and the huge amount of uncertainties of the projects. Quality management is decided synonymous with obtaining ISO 9000 certificate.

8 The transactions pertaining to the construction management basic functions that should be carried out in different phases are perceived by the specialists are shown in Table 1: Phases Pre-design Design Procurement Construction The Transactions That Should Be Carried Out Feasibility analysis, establishing the organization Limiting the cost Choosing designs, awarding All of the requirements of CMAA except safety Table 1: The Perceived Transactions That Should Be Carried Out During Construction Management Process As a result of this evaluation, it is deduced that the level of current construction management applications in Turkish construction sector compared with CMAA standards is approximately 36 % (40 % in pre-design, 20 % in design, 30 % in procurement, 80 % in construction phases). In the prevalent structure of the sector, the contractor firms do not involve in the design phase. As a result of this situation, firms do not perform the requirements of this phase. It is observed that there are not many project management consulting firms on account of the limited application field. It is commonly encountered that site managers or the professionals working on the site consider project management as a redundant procedure. They still neglect the usage of the project management principles and do not believe that the application of project management principles will add any value for the production of construction on site. This survey revealed that site managers and the workers on site are not involved in the planning and making decision periods. They also think that the applications of project management principles do not satisfy their expectations and requirements (Arditi, 1983 and Birgönül, 2000). Project management is fundamentally based on the management of the humans. Managing people is one of the most important problems in the organizations (Sorguç, 1994). The existence of quarrels and competitions, the lack of coordination and team work capability and the direct interference of the employers form the main problems of the practicability of project management principles in Turkish Construction Firms. There have been many hindrances for the adoption of the construction management techniques in Turkish construction sector and it is observed that there isn t a consensus on the basic definitions and concepts. Although this survey revealed that construction sector s impression is very pessimistic about the project management principles, there are some positive developments. In order to compete the foreign companies in the international construction market, the firms try to obtain ISO 9000 certificate. Therefore, they have to adopt and implement the project management principles more accurately. It is observed that some of the governmental sanctions force the firms to accomplish project management procedure. Besides, the new generation civil engineers are interested in this subject and this survey revealed that they endeavour to establish project management systems in the firms they work. The project management must be educated in the undergraduate level at the civil engineering faculties of the universities.

9 It is evident that project management principles can be adopted by the construction sector with the help of the increase in the governmental sanctions, qualified and educated professionals. References Arditi, D. and Koseoglu, H. (1983). Factors affecting success in network applications in a developing country, Construction Management And Economics, Vol.1, No.1, pp.3-16 Barrie, D. S. and Paulson, B. C. (1992). Professional Construction Management, McGraw Hill Book Company, N.Y. Birgonul, M. T. and Ozdogan, I. D. (2000). Critical path method in Turkish construction sector and problems observed, Proceeding of the 2nd Conference of Construction Management, Turkey, June 15-17, pp.31-42, in Turkish Burke, R. (1993). Project Management Planning & Control, John Wiley & Sons, N.Y. Construction Industry Development Agency (CIDA). (1993). Best Practice Project Management Guide: Exposure Draft, CIDA, Canberra Construction Industry Development Agency (CIDA) And Australian Institute of Project Management (AIPM). (1995). Construction Industry Project Management Guide: For Project Sponsors/Clients/Owners, Project Managers, Designers & Constructors, AIPM, Sydney Construction Management Association Of America. (2000). Standard Construction Management Services And Practice, Mc Lean, USA Duncan, R. W. (1996). A Guide To The Project Management Body Of Knowledge, Newtown Square, USA Kuruoglu, M. and Sorguç, V. D. (2000). A suggestion of reorganization of planning department for Turkish construction firms, Proceeding of the 2nd Conference of Construction Management. Turkey, June 15-17, pp.31-42, in Turkish Lewis, J. P. (1997). Project Planning, Scheduling & Control, Irwin Publishing, Chicago, USA Lock, D. (1992). Project Management, Gower Publishing, N.Y. Sorguç, V. D. (1994). Main problem of construction sector is human, Turkish Engineering News. Vol 7, pp , in Turkish