1580822831unit 1 Construction Management - An Introduction
1580822831unit 1 Construction Management - An Introduction
Introduction to
UNIT-1 Construction
Management
Learning Outcomes
By the end of this unit the learner will be able to:
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Unit 1
Introduction to Construction Management
This unit presents a brief introduction to the construction industry. Construction is indeed one of the
most important Industries on earth, dating backing to the beginning of civilisation. The evidence is all
around us, serving as witnesses to the ingenuity of man. Relics of the construction prowess of ancient
civilisations are dotted all over the modern world in Asia, North America, Europe, Africa, South America
and many other regions. Some famous examples include the Pyramids of Egypt, the Taj Mahal of India,
Roman Amphitheatres of Italy, and the Great Wall of China.
Modern construction has evolved from simple manual techniques into a complex maze of highly
mechanised and orchestrated symphonies of activities, requiring billions of dollars in investment and
serving as the second biggest source of employment in the world. Construction involves many field
activities requiring the use of resources such as land, construction materials, labour, equipment and
energy, etc., to achieve a pre-defined objective of raising structures such as roads, buildings, dams and
just about any imaginable structure you will find around you.
Due to limited and very costly resources, construction has to be managed productively and efficiently
using innovation, creativity and sound organisational and economic principles. Properly managed
construction projects result in lower costs, completion of projects on time, and higher-quality structures.
In order to construct a successful organisational model for a successful construction project, it is
important to study and understand the various components that make up a successful model.
Construction activities must be cost-effective, using high-quality materials and performed within a
limited timeframe to achieve quality end products.
The face of the construction industry has been changing rapidly in recent times. These advancements in
modern construction methodologies and techniques, along with the emergence of more productive
equipment, mean that industry players must remain on their toes to keep up with the latest construction
technology. In order to remain relevant, companies must adopt new approaches to managing and
building projects. The growth in technology has produced newer and better materials to use, newer
techniques of accomplishing tasks at lower costs and with better time management skills, and newer
equipment for more productive work, etc. Therefore, the human resource capacity must constantly
update or upgrade knowledge and skills.
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Construction has contributed to most advanced economies of the world through the provision of critical
infrastructures of economic significance, especially in recent times. Investment in construction activities
contributes a sizeable portion of a country’s GDP, in terms of creating employment opportunities for
workers to earn decent incomes and contribute to the economy.
Some established countries in Asia, such as Hong Kong and South Korea, rode the benefits of
construction to attain their present level of economic success. China and Malaysia are following in their
footsteps and have been investing heavily in mega construction projects for the last 50 years or so. It is a
very powerful tool for development and economic progress.
Complexity
The modern construction industry is highly mechanised and complex; it involves complex interactions
between a vast array of resources, such as thousands of skilled labourers, equipment such as cranes and
earthmovers, logistics etc., all interconnected in thousands of activities. Activities may overlap
simultaneously or in sequential discrete steps or even randomly – a phenomenon more complex than
anything to be found in ordinary factories or manufacturing contexts.
Uniqueness
One way in which construction differs from other industries is the fact that no two projects are ever
alike. In other words, each project is unique. This uniqueness of each project is defined by the nature of
the site of construction and is also influenced by the weather and the ground conditions at each site
location.
The construction supervisor and management team are critical to the success of every construction
project. They are responsible for ensuring that plans and specifications are adhered to and for managing
the limited resources available within the budget and delivering the complete project on time. Since
there is little room for costly mistakes, it is incumbent on the supervisory team to be vigilant to ensure
that mistakes are detected instantly and corrected immediately.
Mobility of Facilities
One major difference between the construction and mainstream manufacturing industries is that
products resulting from construction are stationary, while those resulting from manufacturing tend to be
mobile during value addition. The construction industry requires the movement of resources such as
labour, equipment etc. from one place to another to create products under dynamic and hazardous
working conditions. Manufacturing industries, on the other hand, require products at various stages of
the product life cycle to be moved from one facility to the next for value to be added. Products are
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standardised and easy to control, unlike construction where new techniques or modifications to existing
techniques have to be developed to deal with the constantly changing working environment.
Multiplicity of Agencies
Many agencies are involved in construction projects, from the conception of the product through to the
completion of the project. Each agency is expected to play a specific role in the course of the project life
cycle. These agencies may include governmental agencies, land authorities, planning agencies, the fire
department, and Town and Country Planning Councils, etc. Their roles may differ but, essentially, they
ensure that the project complies with the laws of the land. They carry out inspections and provide
certifications for various activities on site.
Organisation
The owner of the construction project normally advertises the project and invites tenders from
prospective contractors to undertake the project. The contract is awarded to a successful bidder after a
competitive bid process. The winning contractor then engages the services of subcontractors on
contracts to execute various planned activities within a specified timeframe. Subcontractors may also
employ hundreds of skilled workers to work on specialised aspects of the project. During the
construction of larger-scale projects, it is very common to have thousands of employees working on
diverse aspects of the project site. The complexity of large-scale projects necessitates a great deal of
organisation and management of a large group of people who interact with one another in many ways to
produce the final product within a limited time period.
Three groups of people are normally involved in a typical construction project:
The owner
The engineering group comprising managers, architects, structural engineers and civil engineers
etc.
The construction group consisting of a number of contractors and workers who perform the
actual work.
These three groups interact in a well-organised way with no particular group having absolute control.
Each group has a set of unique functions to perform at specific moments and their activities may overlap
or occur sequentially. The owner is expected to exercise control of the finance and quality control, the
engineering group ensures structural and aesthetic integrity, while the contractor motivates the
workforce to execute the work professionally and to a very high standard to meet the deadline.
The main categories of activities of a construction project include:
Finance
Financial activities involved in construction can be classified into the following categories:
1. Investments in fixed assets, such as tools, equipment, machinery, catering and shuttering, etc.
2. Short-term finances, such as earnest-money and security deposits to meet the cash flow
requirements at construction sites
3. Investment in the future through education, training, research, and development of human
resources and technologies
4. Overheads in salaries and establishment of other expenses relating to advertisements and public
relations, legal expenses and other related expenses required for the project to run smoothly
Funding sources include credit facilities, loans and securities. Frequently, the construction industry
experiences cash flow issues due to the blockage of security deposits, earnest-money, and delayed
payment of bills, among many other impediments.
Management
Since most companies’ HQs are far away from the project site, it becomes difficult for the management
to provide direct supervision and control of activities. This gives most projects’ workforces autonomy in
tackling their responsibilities. It is thus essential to have well-trained personnel who will execute their
mandated activities professionally and on time to achieve satisfactorily high-quality products.
Supply issues
Demand issues
Supply is hampered by the immobile nature of projects and the harsh conditions prevailing during the
construction process. With regard to demand issues, one finds that demand for construction products
tends to be seasonal or cyclic, resulting in a highly unpredictable market.
The lack of adequately-trained personnel is the single most important factor in low productivity records.
The availability of well-trained personnel to make wise decisions in executing activities becomes very
important for producing high-quality products. Highly trained human resources are lacking in areas that
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would substantially improve construction productivity. Areas such as effective information management
systems and design and equipment management are both in dire need of high-quality personnel.
Better productivity might be achieved through systematic planning and management of all aspects of
construction projects using highly trained human resources at all levels as well as the best available
techniques and equipment to produce quality products at lower cost and in shorter durations.
Management and organisation of projects will entail coordination of interactions between the planning,
design and execution stages of projects.
Labour Quality
Labour for construction work mostly depends upon the location of the project site. This means that the
local workforce is normally employed to carry out various aspects of the construction. The quality of the
labour employed will determine the quality of the final product. Workers may improve their skills
through on-the-job learning, by trial and error, or by imitation.
Safety Hazards
A typical construction project is inherently dangerous because of the high propensity for accidents to
occur. The wide range of working conditions involving supported structures, moving equipment and
labour make the site a highly unpredictable environment. Consequently, there is a need to put in place
safety measures to prevent accidents from occurring. Unfortunately, due to the rapidly changing
conditions, it is not sufficient to adopt safety procedures from the static manufacturing environment for
implementation on construction project sites.
Careful and adequate research needs to be conducted to determine the most effective types of safety
procedure to implement on the site because losses resulting from construction accidents may be so
significant that they will even wipe out profits.
Top-Level Management
They formulate the objectives and policies of the company.
Mid-Level Management
They are mostly involved in the procurement of materials, labour and equipment management. They
may also be responsible for highly specialised duties such as lift installation and HVAC.
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First-Line Management
This level is usually composed of the construction supervisors. It is the lowest level of management,
taking instructions from the mid-level and reporting back to them during the course of construction.
Project construction sites can be executed by the owner or by a contractor. Construction by the owner is
termed ‘departmental construction’. It requires the owner to form his own company and engage the
services of an engineer and contractor. The second method is to employ the services of contractors. The
contractor-type construction involves both the owner and the contractor appointing their individual
supervisors to oversee the project.
The owner’s supervisor must ensure that all specifications and plans are being followed by undertaking
regular planned or unplanned inspections of activities on the site. His responsibilities include the
following:
i) Ensure that construction is carried out according to the contract drawings and specifications
ii) Ensure that the contractor follows the agreed schedule
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iii) Ensure that quality standards of materials, processes and workmanship are maintained
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Execution plans for activities are developed and milestones and completion dates finalised
The project manager and his team of engineers have been selected to oversee technical aspects
of the project
For a supervisor to succeed comprehensively with a project, he/she must study and understand all
contract requirements, designs, drawings and specifications and any other relevant documents. He/she
must also study the programme of construction prepared by the project engineer and his team and
devise realistic schedules for activities for each day of the week or a weekly schedule to keep up with the
overall project plan
Sample of a supervisor's schedule for a typical day:
Table 1.1
3. Excavation work should he completed by tomorrow evening; make request to the field
engineer to inspect the work tomorrow and approve the foundation so that laying the
concrete bed for the foundation can commence in two days time
4. Send a requisition to the store to supply cement, to place an order for a supply of sand and
aggregates so that these materials can be delivered to the site by tomorrow evening.
5. Request the project office to supply the working drawings of RCC slab to help estimate
resource requirements
6. Send a note to the accounts department to arrange for the payment of wages to
labourers at the end of the week
The above list of activities is not exhaustive and should be seen as of an indicative nature only.
The supervisor should ensure that the following facilities are available on the site:
i. Site offices, site stores, workshops and canteens, etc. along with the necessary furniture,
ventilation and lighting, etc.
ii. Access to the site, as well as various units such as site office, stores, and workshops, etc.
iii. Adequate parking facilities and unloading platforms for incoming materials
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File containing list of contact details of all persons connected to the project including details of
the owner(s), officials of local authorities, Government officials, suppliers, police department
etc.
Folder for approved drawings and specifications
Contract documents
Construction programme (e.g. in the form of a bar chart)
Files containing important letters
Work order book
Progress chart
Registers for materials, use of equipment, labour employed
Record of tests carried out on materials and works
A general plan of work showing all work completed each day
Daily diary containing the following:
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Equipment details such as hours worked, fuel or power used, repairs and
maintenance output etc.
Any other relevant details.
The right person (at the right time) should be chosen to carry out the inspection in order for the
inspection programme to be successful.
Supervisors are required to perform regular inspections of construction work. For contract jobs, the
owner may ask his engineer to inspect the work to ensure everything is going according to plan and
within budget. Inspections are carried out on materials and can be performed at any stage of the work. If
the contract stipulates that certain phases must be inspected by the engineer, the supervisor must
arrange for this well in advance and record details of the inspection in the work order book. To avoid
remedial work or the rejection of work, the supervisor must be pre-emptive to spot mistakes quite early
and report to the necessary authority to correct them immediately. Such prompt actions will prevent
unnecessary delays due to remedial work or rejection and will avoid extra costs.
Studying the construction programme prepared by the project manager or project engineer.
Preparing detailed programmes to expand on the schedules and preparing schedules for
organising the resources required for the work.
Having in place a systematic approach to writing daily progress reports.
Ensuring that all specifications and requirements of the project are being followed.
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The supervisor must also regularly check the quality of work and compare it with quality control
specifications to determine whether the project is on the right track or not. He/she should
correct any deviations promptly if he/she is in a position to do so; otherwise, deviations should
be reported to the site engineer immediately for prompt corrective measures to be
implemented.
Further Reading:
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