Construction Management & Engineering
Construction Managers must be both oriented business and technically
Construction Education Engineering (civil or architectural) Specialization/area of concentration Curriculum Elective
Construction Management Foundation of business and science courses Architectural & engineering coursework Core of Construction Mgt. Courses
B.S.C.M. Coursework Engineering subjects Strength of Materials Statics and Structures Soil Mechanics Steel and Concrete Design Surveying Construction Management & Engineering
B.S.C.M. Coursework Business Management Accounting Economics Statistics Financial Mgt. Contract Law
B.S.C.M. Curriculum Course Distribution Business 15% Engineering (incl math & science) 34% Architecture 8% Liberal Arts 13% Construction Mgt. 30%
Licensing/Certifications Professional Engineer s License issued by state or local governing board. Certified Constructor issued by the American Institute of Constructors (AIC). Certified Construction Manager issued by Construction Management Association of America (CMAA)
Basic Skills needed by Construction Managers Estimating Computer Leadership/supervisory Communication = writing and oral skills Negotiating
Construction Management Functions Coordination Planning & Scheduling Purchasing & Expediting Supervision Cost Control Documentation and Reporting
Construction Management Functions Quality Control/Quality Assurance Estimating Safety and Risk Management Contract Administration Claims Analysis/Avoidance
Additional Skills & Knowledge needed by Construction Engineers Surveying (GPS, GIS, Hydrographic) Structural Design CADD/Drafting Specialization in Mechanical, Electrical, Chemical, or Environmental disciplines
Construction Engineering Functions Preparation and Review of Shop Drawings Constructibility & Sequencing Studies Value Engineering Erection Diagrams and Procedures Survey & Layout
Executive Functions Construction Management & Engineering Corporate Management Strategic Planning Marketing & Business Development Public Relations Labor Relations
Executive Functions Ultimately responsible for quality, safety, production, and general financial health.
Construction training can be valuable to design professionals To enable them to produce practical and efficient designs Develop needed management skills Learn scheduling techniques that can be applied to the preconstruction process
Project Life Cycle
Life Cycle of a Constructed Facility 1. Concept and Feasibility 2. Engineering and Design 3. Procurement 4. Construction 5. Startup and Implementation 6. Operation or Utilization
What is Construction? Construction Management & Engineering Application of art and science Inherently dangerous Organized chaos Man using creativity, knowledge, strength, determination, and persistence to control his environment
Construction differs from manufacturing in that: Not performed in controlled conditions, therefore highly impacted by weather and other environmental conditions Seasonality Each project is unique Remotes sites with various access problems
Construction differs from manufacturing in that: Process is not as predictable Difficulty in applying automation High potential for encountering unforeseen conditions Costs can vary according to conditions
Construction differs from manufacturing in that: Difficult to manage and supply utilities and other resources. Technical innovations are adopted slower. Success is dependent upon the quality of its people. Very custom-oriented Product can be of mind-boggling size, cost, and complexity
Problems Facing Construction Industry: Highly traditional and fragmented; slow to embrace new technology Restrictive/outdated building codes Labor agreements and craft jurisdictional issues Liability and legal considerations Lack of profit motive or other incentive
Problems Facing the Construction Industry: Government regulation Environmental constraints NIMBY syndrome Global competition
The B lam e Game
Industry Divisions 1. Residential Construction 2. (Institutional & Commercial) Building Construction 3. Heavy Construction 4. Industrial Construction
Residential Types Single family houses Multi family dwellings High-rise apartments 30-35 % of the industry Construction Management & Engineering Low capital and technology requirements
Residential (continued) Largely private Often speculative Developers = surrogate owners Designed by architects, builders/developers
Building Construction Institutional and Commercial Construction Schools and universities Medical clinics and hospitals Recreational facilities and sports stadiums
Building Construction Retail stores and shopping centers Warehouses and light manufacturing Office buildings (single story to sky scrappers) Hotels, convention centers, and theaters
Building Construction Institutional and Commercial Construction Churches and Synagogues Prisons Courthouses and other government buildings
Building Construction 35-40 % of construction market Larger and more complex than residential Various owners (mostly private) Designed by architects and engineers
Heavy Construction Construction Management & Engineering Also referred to as Horizontal Construction, Heavy Civil Construction, Heavy Engineering Construction, Infrastructure & Heavy Construction and Heavy/Highway Construction. 20-25% of the construction industry Mostly public financing or large consortium
Heavy Construction Highway & bridges Railroads & urban transit systems Tunnels and Dams Airports Canals Port & harbor structures
Heavy Construction Pipelines Sewer Systems Water treatment & distribution systems Power & communication networks Landfills
Heavy Construction Accounts for 20-25% of the construction market Heavy public works projects Mostly public financing Owner is a governmental agency or large consortium
Heavy Construction Mass quantities of basic materials: earth, rock, steel, timber, and concrete Constructors need knowledge of engineering and geology Engineers and builders are often specialized.
Heavy Construction Greatest impact and manipulation of land and water High degree of mechanization Contracts awarded through competitive bidding
Industrial Construction Very large scale projects High degree of technological complexity Designed and built by the largest firms with the highest level of technical sophistication Represent 5-10% of the market.
Industrial Construction Petroleum refineries Steel mills & aluminum plants Chemical processing plants
Industrial Construction Fossil fuel & nuclear power plants Other heavy manufacturing facilities
Industrial Construction Complex mechanical systems, process piping, and instrumentation Civil, but also mechanical, chemical, and electrical engineering disciplines involved Mostly private ownership (in western countries)
Industrial Construction Negotiated contracts are typical Turnkey contract arrangements are common Design-constructor must be intimately familiar with the technology and operations of the facility
Construction Industry is further subdivided into sectors or segments by: Public vs. private ownership/funding Union labor vs. open shop Organization and method of project delivery Type of work: new vs. rehab/retrofit/restoration Contract type
Participants in the Construction Process 1. Owner Private or public Conceives the construction project Increasing level of sophistication
Participants in the Construction Process 2. Designer Architects Size of firms ranging form single practitioner to large integrated firms Mostly building and residential construction Engineers Civil, mechanical, structural, electrical,chemical, environmental, geotechechnical, and multidiscipline
Participants in the Construction Process 3. General Contractor General contractor also called Prime contractor Specialty contractors working as subcontractors Organization ranges from small, one-person company to large, integrated A/E/C firms Part of a design-build team
Participants in the Construction Process 4. Construction Manager Two principle divisions of CM CM for Fee (management services only) CM At Risk Operates similarly to a GC or DB with no labor or capital equipment Can encompass the management of the design process as well as construction CM services including inspection and overall project or program management
Participants in the Construction Process 5. Suppliers Manufactures, distributors, research, promotions Materials and equipment sales Equipment Rental 6. Fabricators Structural steel, pre-castors, wood products 7. Labor/Trade Unions
Participants in the Construction Process 8. Government Federal, State, local, and quasi-government Owner/client 8 GSA, DOT s, School Districts, USACOE Non-ownership functions 8 Taxation and regulation 8 Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA), FHWA, FAA, EPA, and several others 8 State: DOL, DEP/DNREC, historic preservation (SHPO) 8 Local: County/City/Township Building Officials, Planning Boards, and Zoning Commissions 8 Quasi-government agencies: development authorities, bridge and turnpike commissions
Participants in the Construction Process 9. Utility Companies Electric, communications, water, gas,sanitary sewer Private petroleum pipelines Owner or service provider Integral part of the process Existing facilities in conflict with new construction Interruption of service can be very costly
Participants in the Construction Process 10. Industry Associations Organizations of construction contractors Organizations of the design and management professions Construction material and equipment suppliers and product research Construction labor organizations Coordination and arbitration Inspection, specifications, and costs
10. Industry Associations Functions and services Industry information and communication Development and maintenance of standards Interindustry coordination Collective bargaining Statistics (market & industry) Meetings and conventions
10. Industry Associations Construction Management & Engineering Functions and services Public relations Joint industry promotions Management education Market development Apprenticeship training Legislative Government relations Product research
Participants in the Construction Process 11. Professional Services Business/management consultants Legal council CPA firms Surety Companies Financial Institutions/Lenders Insurance agents
Participants in the Construction Process 12. Adjacent Owners and the Public At- Large Existing businesses, institutions, and residences adjacent to the constructed facility Civic organizations and community groups Railroads and public lands
Project Delivery Organization Construction by owners forces Owner-managed construction Construction by general contractor Design-build team CM Contract
Construction employing owner forces Usually small in-house construction or renovations Industrial projects or institutional (such as hospitals or schools Owner-managed construction Residential/commercial building developers Industrial or institutional
Construction by General Contractor Also referred to as Prime Contractor Most common method of delivery Contractor bears substantial risks and financial responsibility Facility designed by in-house architect/engineer or by design consultants Often requires specialty subcontractors
Specialty contractors might include those specializing in one of the following: Excavation Steel erection Concrete Cast-in-place Prestressed/Precast Masonry Timber/wood framing Piping/plumbing Clearing and grubbing Blasting/demolition Electrical Painting HVAC Environmental remediation Many, many others
Design-Build (Turnkey) Construction Management & Engineering Single firm or team responsible for design and construction minimizes coordination problems More efficient designs with the interjection of constructibility and innovation Often employees fast-track construction Benefits include reduced overall delivery time and one-stop shopping for the owner Disadvantages include complexity of evaluating proposals
CM Contract -- Fee (management services only) also referred to as Agency Specialized construction skills through all stages of project Provides close coordination between design and construction Eliminates impact of conflicts of interest Independent and objective evaluation of costs, schedules, and performance Potential saving in time and cost Disadvantages include no risks associated with costs increase
CM Contract At-Risk CM assumes financial risks similar to a GC CM manages all phases of the work without performing any actual work tasks CM s only resources are management personnel Contractors/subcontractors have a direct contract privity with CM Contract form is often a negotiated guaranteed maximum price arrangement Disadvantages includes lack of impartiality
Construction Management & Engineering