Construction Management & Engineering CIEG 467-013

1. Construction Management & EngineeringCIEG 467-013

2. Construction Management & EngineeringCIEG 467-013 Construction Managers must be both… …business and technically oriented

3. Construction Management & EngineeringCIEG 467-013 Construction Education • Engineering (civil or architectural) • Specialization/area of concentration • Curriculum Elective

4. Construction Management & EngineeringCIEG 467-013 Construction Management • Foundation of business and science courses • Architectural & engineering coursework • Core of Construction Mgt. Courses

5. Construction Management & EngineeringCIEG 467-013 B.S.C.M. Coursework Engineering subjects • Strength of Materials • Statics and Structures • Soil Mechanics • Steel and Concrete Design • Surveying

6. Construction Management & EngineeringCIEG 467-013 B.S.C.M. Coursework Business Management • Accounting • Economics • Statistics • Financial Mgt. • Contract Law

7. Construction Management & EngineeringCIEG 467-013

8. Construction Management & EngineeringCIEG 467-013 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)

9. Construction Management & EngineeringCIEG 467-013 Basic Skills needed by Construction Managers • Estimating • Computer • Leadership/supervisory • Communication = writing and oral skills • Negotiating

10. Construction Management & EngineeringCIEG 467-013 Construction Management Functions • Coordination • Planning & Scheduling • Purchasing & Expediting • Supervision • Cost Control • Documentation and Reporting

11. Construction Management & EngineeringCIEG 467-013 Construction Management Functions • Quality Control/Quality Assurance • Estimating • Safety and Risk Management • Contract Administration • Claims Analysis/Avoidance

12. Construction Management & EngineeringCIEG 467-013 Additional Skills & Knowledge needed by Construction Engineers • Surveying (GPS, GIS, Hydrographic) • Structural Design • CADD/Drafting • Specialization in Mechanical, Electrical, Chemical, or Environmental disciplines

13. Construction Management & EngineeringCIEG 467-013 Construction Engineering Functions • Preparation and Review of Shop Drawings • Constructibility & Sequencing Studies • Value Engineering • Erection Diagrams and Procedures • Survey & Layout

14. Construction Management & EngineeringCIEG 467-013 Executive Functions • Corporate Management • Strategic Planning • Marketing & Business Development • Public Relations • Labor Relations

15. Construction Management & EngineeringCIEG 467-013 Executive Functions • Ultimately responsible for quality, safety, production, and general financial health.

16. Construction Management & EngineeringCIEG 467-013 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

17. Construction Management & EngineeringCIEG 467-013 Project Life Cycle

18. Construction Management & EngineeringCIEG 467-013 Life Cycle of a Constructed Facility • Concept and Feasibility • Engineering and Design • Procurement • Construction • Startup and Implementation • Operation or Utilization

19. Construction Management & EngineeringCIEG 467-013 What is Construction? • Application of art and science • Inherently dangerous • Organized chaos • Man using creativity, knowledge, strength, determination, and persistence to control his environment

20. Construction Management & EngineeringCIEG 467-013 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

21. Construction Management & EngineeringCIEG 467-013 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

22. 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

23. 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

24. Problems Facing the Construction Industry: • Government regulation • Environmental constraints • NIMBY syndrome • Global competition

25. Construction Management & EngineeringCIEG 467-013 “The Blame Game”

26. Construction Management & EngineeringCIEG 467-013 Industry Divisions • Residential Construction • (Institutional & Commercial) Building Construction • Heavy Construction • Industrial Construction

27. Construction Management & EngineeringCIEG 467-013 Residential • Types • Single family houses • Multi family dwellings • High-rise apartments • 30-35 % of the industry • Low capital and technology requirements

28. Construction Management & EngineeringCIEG 467-013 Residential (continued) • Largely private • Often speculative • Developers = surrogate owners • Designed by architects, builders/developers

29. Construction Management & EngineeringCIEG 467-013 Building Construction • Institutional and Commercial Construction • Schools and universities • Medical clinics and hospitals • Recreational facilities and sports stadiums

30. Construction Management & EngineeringCIEG 467-013 Building Construction • Retail stores and shopping centers • Warehouses and light manufacturing • Office buildings (single story to sky scrappers) • Hotels, convention centers, and theaters

31. Construction Management & EngineeringCIEG 467-013 Building Construction • Institutional and Commercial Construction • Churches and Synagogues • Prisons • Courthouses and other government buildings

32. Construction Management & EngineeringCIEG 467-013 Building Construction • 35-40 % of construction market • Larger and more complex than residential • Various owners (mostly private) • Designed by architects and engineers

33. Construction Management & EngineeringCIEG 467-013 Heavy Construction • 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

34. Heavy Construction • Highway & bridges • Railroads & urban transit systems • Tunnels and Dams • Airports • Canals • Port & harbor structures

35. Heavy Construction • Pipelines • Sewer Systems • Water treatment & distribution systems • Power & communication networks • Landfills

36. Construction Management & EngineeringCIEG 467-013 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

37. Construction Management & EngineeringCIEG 467-013 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.

38. Construction Management & EngineeringCIEG 467-013 Heavy Construction • Greatest impact and manipulation of land and water • High degree of mechanization • Contracts awarded through competitive bidding

39. Construction Management & EngineeringCIEG 467-013 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.

40. Industrial Construction • Petroleum refineries • Steel mills & aluminum plants • Chemical processing plants

41. Industrial Construction • Fossil fuel & nuclear power plants • Other heavy manufacturing facilities

42. Construction Management & EngineeringCIEG 467-013 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)

43. Construction Management & EngineeringCIEG 467-013 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

44. Construction Management & EngineeringCIEG 467-013 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

45. Construction Management & EngineeringCIEG 467-013 Participants in the Construction Process • Owner • Private or public • Conceives the construction project • Increasing level of sophistication

46. Construction Management & EngineeringCIEG 467-013 Participants in the Construction Process • 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

47. Construction Management & EngineeringCIEG 467-013 Participants in the Construction Process • 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

48. Construction Management & EngineeringCIEG 467-013 Participants in the Construction Process • 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

49. Construction Management & EngineeringCIEG 467-013 Participants in the Construction Process • Suppliers • Manufactures, distributors, research, promotions • Materials and equipment sales • Equipment Rental • Fabricators • Structural steel, pre-castors, wood products • Labor/Trade Unions

50. Construction Management & EngineeringCIEG 467-013 Participants in the Construction Process • Government • Federal, State, local, and quasi-government • Owner/client • GSA, DOT’s, School Districts, USACOE • Non-ownership functions • Taxation and regulation • Federal: IRS, OSHA, USACOE, DOL, NLRB, HUD (FHA), FHWA, FAA, EPA, and several others • State: DOL, DEP/DNREC, historic preservation (SHPO) • Local: County/City/Township Building Officials, Planning Boards, and Zoning Commissions • Quasi-government agencies: development authorities, bridge and turnpike commissions