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Construction Is A Complex Process:

Learn about the adversarial nature of Engineering, Procurement, and Construction (EPC) projects from the perspectives of Owners, Designers, and Builders. Discover how conflicts, both internal and external, impact project outcomes. Gain insights into the roles, risks, and objectives of each party involved in the construction process.

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Construction Is A Complex Process:

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  1. Construction Is A Complex Process: Module 03-02 – PS&E Modified: February 10, 2003 CVEN-349 Maxwell

  2. Purpose: • Illustrate the Three Contrasting Points of View – Owner, Designer, Builder CVEN-349 Maxwell

  3. Learning Objectives. • Students should be able to list the main concerns of all three parties and • Apply them to simple design project situations CVEN-349 Maxwell

  4. It is an Adversarial Process As strange as it may seem, the EPC (Engineering, Procurement, and Construction) is an adversarial process wherein each of the three main parties (the Owner, the Designer, and the Builder) tends to be at odds with the other two because of conflicting objectives. CVEN-349 Maxwell

  5. The “People” Part • Most of the “art” of construction management involves sorting out these external conflicts – partnering, negotiation, etc. • As well as external conflicts within your own organization – team and organizational problems CVEN-349 Maxwell

  6. What Are Some Examples of External Conflicts? • Schedule Changes • Scope Creep / Design Changes • Change Orders CVEN-349 Maxwell

  7. What Are Some Examples of Internal Conflicts • Marketing – Sell the job, regardless of the technical feasibility. • Technical – Deliver the “Statue of Liberty” every time, regardless of the budget. • Fiscal – Stay within budget regardless of the quality and quantity of the work. CVEN-349 Maxwell

  8. The “Science” Part • This course involves the numerical tools related to the Project Manager’s four major responsibilities: schedule, budget, work, and safety. • You have to be able to succeed at both to gain positions of great responsibility (and great reward) within the process. CVEN-349 Maxwell

  9. Types of Construction • Houses & light commercial (30-35%) • Buildings & heavy commercial (35-40%) • Industrial – Chemical plants, paper mills, power plants, etc. (5-10%) ** • Heavy - Dams, bridges, etc. (5-10%) ** • Transportation - Highways, railroads, canals, etc. (15-20%) (linear) ** ** Where engineers control things CVEN-349 Maxwell

  10. The Owner’s Point of View • Project will be managed by Internal Staff or CM Firm. • There are Government (all three levels) to be satisfied: EPA, Building Codes & Permits, Use Codes & Permits, Access Permits, Tax Assessments, OHSA, … • Project Funding: Internal Cash Flow, Banks, REITs, Other Lenders, Tax Abatements, … • Future Users: Internal, External, … CVEN-349 Maxwell

  11. Owner, Cont’d. • Risk Shifting: Bonding Companies, Insurance Companies, Contract Clauses… • Government Owners have Special Problems: Bidding Rules, Contracting Rules, Defaulting Rules, Labor Compliance Rules, Fraud Rules, Conflict of Interest Rules, … … CVEN-349 Maxwell

  12. Designer’s Point of View • Engineering Staff will be internal or external: Structural, Foundation, Environmental, HVAC, Other Special, • Architectural Staff: Building and Other Special • Regulators: Professional Boards, Building Codes • Risks: Financial, Management, etc. CVEN-349 Maxwell

  13. Designer’s Risks • Conflicts between plans and specifications ** • Faulty Design ** • Shop Drawings ** • Errors and Omissions ** **What you get sued for. CVEN-349 Maxwell

  14. Builder’s Point of View • General Contractor – Usually a specified minimum, say 40%. Primary responsibility • Suppliers: Steel, Concrete, Materials, … • Trade Unions: Electricians, Masons, Painters, Glaziers, Carpenters, Dry Wall, Roofers, Plumbers, Laborers, Truckers, Operators, etc. • Sub contractors: Electrical, Mechanical, Erectors, Conveyances, Masonry, Dry Wall, Finish, etc. CVEN-349 Maxwell

  15. Builder Cont’d. • Regulators: OHSA, Owner’s Inspectors, Code Inspectors, Labor Inspectors, Union Work Rules. • Major Risks: Safety, Budget, Schedule, Acts of God, Workmanship, Labor Strife, • Financial Partners: Insurers, Bonding Companies, Bankers CVEN-349 Maxwell

  16. Your Primary Objectives as PM No matter who you work for, where you are in the organization, or what part of the process you “own,” your job is to deliver a product: • On Time, • On Budget • On Scope - Meets or exceeds customer requirements • And, maintain a safe and non-threatening work place. All this and “have a life.” CVEN-349 Maxwell

  17. Class Assessment • Take about 1-minute to write a sentence identifying the “muddiest” topic in this module. CVEN-349 Maxwell

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