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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