ARC 155 Construction Management Introduction PDF

ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION HANDOUT #1 Introduction to Construction Management Construction management is a professional service that provides a project’s owner(s) with effective management of the project's schedule, cost, quality, safety, scope, and function. Construction managemen...

ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION HANDOUT #1 Introduction to Construction Management Construction management is a professional service that provides a project’s owner(s) with effective management of the project's schedule, cost, quality, safety, scope, and function. Construction management is compatible with all project delivery methods. No matter the setting, a Construction Manager’s (CMs) responsibility is to the owner and to a successful project. At its core, a capital project is made up of three parties (excluding the CM):  The owner, who commissions the project and either funds the project directly or finances it through a variety of methods.  The architect/engineer, who designs the project.  The general contractor, who oversees day-to-day operations and manages subcontractors. The CM represents the owner’s interest and provides oversight over the entire project directly for the owner. His/her mandate is to work with all parties to deliver the project on time, at or under budget, and to the owner’s expected standard of quality, scope, and function. CMs are uniquely qualified through combined education and experience to work with the owner, architect, general contractor, and other stakeholders to determine the best possible sequence of construction operations and develop a detailed schedule and budget, while also establishing plans for project safety and security and helping the owner manage risk. This requires using project management information systems (PMISs) and complex planning techniques, like critical path method, as well as knowledge of construction methods. Professional CMs use industry-standard practices to manage projects successfully. The CM Body of Knowledge and Standards of Practice address all six areas of construction management services: schedule, cost, safety, quality, function, and scope. The ultimate goal of construction management is to minimize risk by controlling a project's schedule, budget (cost), and quality — also known as the "project management triangle." AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION This can be broken down into a variety of activities, which may include;  Project Planning  Design Coordination  Scheduling and coordination  Cost Management  Quality Management  Contract Administration  Safety and compliance  Risk Management  Labor and Market insight  Documentation and reporting  Project Closeout On complex projects, these duties may be divided between multiple project or construction managers, with each responsible for a different focus A CM can Hired by Role Example be: Construction Manager A healthcare company hires a Construction A CM firm Owner/Developer as Agent or Owner’s Manager as Agent to provide consultative services Rep during construction of a new hospital. A commercial developer selects a GC to provide A General Construction Manager Owner/Developer input during design; the agreement is amended to a Contractor at Risk (CMAR) GMP prime contract in preconstruction. Construction Manager A large retail chain employs a construction manager An employee Owner/Developer or Project Manager to oversee development of new stores. A GC is launching a new public works division, and General An employee Project Manager hires a CM to manage contracts and Contractor subcontractors. AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION Construction Manager vs. Project Manager Embracing humility and asking for help are crucial steps towards achieving excellence in the industry. Discover how clarifying questions and building strong relationships can lead to innovative solutions and mastery in your craft. The difference between a Construction Manager (CM) and Project Manager (PM) isn’t always clear. In fact, the terms are often used interchangeably in the building industry. Construction Managers most commonly work for the owner to provide input on design feasibility and/or coordinate construction activities, managing the General Contactor (GC) on the owner’s behalf. Project Managers are often hired by a contractor to oversee the administrative aspects of the building project, like scheduling and logistics. In practice, however, the line between a CM and PM is often heavily blurred. The actual job title activities can vary greatly depending on the type of company they work for, or the specific role they are hired to fill. Regardless of the job title, most opportunities for both roles require candidates to have a background in construction management Major Differences Between a Construction Manager and Project Manager Level of Authority Given the nature of the projects and the responsibilities, generally, the construction manager must report directly to the project manager. While both roles are essential to ensure the timely delivery of any project, construction managers are usually people with experience in the construction trades whose responsibility is mainly to the construction aspect of the project. The project manager usually handles all other elements that extend beyond the construction phase, and as such, a strong partnership between the two is vital to ensure projects are successful. Responsibilities Construction manager tends to be responsible primarily for the project’s construction stage. Project managers, on the other hand, are responsible for the entire project and must work in tandem with construction managers to deliver projects successfully. Salary Usually, the salary of a project manager tends to be higher than a construction manager’s because their specialty extends beyond construction into professional fields such as engineering, architecture, etc. On the other hand, the construction manager’s salary depends more on experience and certifications. Since construction managers specialize primarily in the construction stage, their salary tends to be lower than that of a project manager with a much broader set of responsibilities across multiple project stages. Differences in Skills While project managers and construction managers share similarities, project managers usually have a more specialized background to lead the entire project on multiple levels. In contrast, construction managers focus more on day-to-day operations. AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION Project managers generally talk directly with the client and are the key agents that ensure things happen. That means they must deeply understand regulations, team building, operations, construction methodologies, etc., and ensure they make the best choices to complete projects on time, on budget, and with high-quality standards. On the other hand, construction managers usually follow the high-level plans provided by the project manager and lead their team more intensely on the field, solving technical and essential problems with the physical construction of the project. Both skills are essential to ensure projects are successful. Project managers are in charge of contextual work beyond the construction aspect of the project, while construction managers are experts on trades and getting things done well and on time. Work Environment As you can imagine, the work environment between these two types of managers can be different. Construction managers are masters of craftsmanship; they have multiple years of experience and know how to solve construction problems most people couldn’t even imagine. Their main domain is fieldwork and the construction processes that happen daily; even though they may have a dedicated office to focus on more high-level activities, they could also handle them. On the other hand, project managers are primarily focused on high-level management and ensuring that any project’s macro and contextual problems, such as permits and licenses, are solved. While they may also visit the site, they are often less involved with day-to-day operations and more focused on managing all the aspects of a real estate project from start to finish line. AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION 5 Differences Between a Project Manager and a Construction Manager Deciding the type of leadership needed in a construction project is an important decision. The right leadership can make all the difference in the ease in which your project is completed; not to mention your project schedule and budget. We’ve outlined 5 key differences between a project manager and a construction manager to help you make the best decision for the leadership of your project. 1. Construction managers will manage only the construction portion of the product. The CM is an expert in building trades including electrical, carpentry, plumbing and general construction. They oversee day-to-day operations from pre-construction through the project punch list. Essentially, a CM is a project manager with a specific area of knowledge. 2. A construction manager is involved in personnel management at the construction site. The CM will ensure that materials are delivered on time, that tools are available and that resources are properly allocated. 3. A project manager runs all aspects of the real estate project. This includes everything from the initial planning, site selection and analysis, design, procurement, construction and the physical move. Because the PM is responsible for the project budget and schedule, it is beneficial to have an independent resource. The PM will be keenly aware of anything that will extend the project schedule and inflate the project budget and aims to mitigate those risks. 4. A project manager is brought on at the inception of a real estate project and therefore has a comprehensive understanding of the client’s goals. A project manager works very closely with the client to gain a comprehensive understanding of all aspects of the real estate project. More than knowing what the client needs out of their physical space, a project manager has the AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION  knowledge from the client to understand the specific needs so that the end result is precisely what the client wants. 5. The main difference is the level of authority. A CM oversees all construction activities. A PM supervises the CM. The project manager has greater responsibility to the project, as he/she oversees more than the construction process. Therefore, a project manager will often supervise a construction manager. Key differences between project managers and construction managers A construction manager is usually an expert in building trades such as general construction, electrical, plumbing, and carpentry. They manage the day-to-day operations relating only to the construction portion of the project. A construction manager is like a project manager with expertise and knowledge in a specific construction area. They are involved in a project from the preconstruction phase to the punch list. A construction manager is also responsible for managing personnel at the construction site. They ensure timely delivery of materials to prevent delays. They also ensure that tools and other resources are available and properly allocated. On the other hand, a project manager manages all the aspects of a real estate project from start to finish. They are involved in the initial construction planning, site selection and analysis, design, procurement, building, and the actual move. The project manager manages the project budget and schedule and is typically aware of potential risks, and works actively to mitigate them. The project manager guards the budget and schedule to prevent extra costs and delays. The project manager often has a better understanding of the client’s goals than the construction manager because of their early involvement in the project. Besides, project managers tend to work more closely with the client and understand their needs outside of their real estate. The chief difference between a project manager and a construction manager is the level of authority. A construction manager oversees all construction activities and reports to the project manager. The project manager is more responsible for the project and manages matters beyond construction activities. This means that the project manager supervises the construction manager. Project manager The main role of a project manager is to ensure that the project is delivered on time and within budget. A project manager plans and supervises construction projects from start to finish. They organize and manage construction processes, ensuring everything is done efficiently and promptly. A project manager understands construction methodologies and procedures and can coordinate a large team of professionals with varying expertise. A project manager should be very organized and highly analytical because they must handle complex construction issues. Responsibilities The project manager is responsible for obtaining permits and licenses from the authorities. They also negotiate contracts with vendors and suppliers to reach favorable agreements. AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION The project manager also hires contractors and other office staff and assigns them responsibilities. They also supervise and guide laborers and mechanics where necessary. In addition, the project manager is responsible for planning construction operations and ensuring adherence to the schedule. They must collaborate with architects and engineers to determine the project specifications. Their goal is to meet all deadlines. The project manager is also responsible for determining and acquiring materials, workforce, and equipment. They must acquire all materials and equipment timely to avoid inadequacies that could cause delays. The project manager is responsible for evaluating construction progress and preparing detailed reports for the property owner. They also ensure compliance with health and safety standards. Construction manager A construction manager is generally a construction expert with an understanding of building processes. They cover all the details of the construction process from groundbreaking to handover. A career in construction management is ideal for individuals that enjoy design and construction and like to lead a team of workers. Responsibilities The construction manager’s main responsibility is to oversee the day-to-day construction activities involved in a project. Construction managers also prepare, supervise and approve the development and implementation of PEP. In addition, they document any lessons learned throughout the project. The construction manager also implements the scope of work according to the approved project schedule. The construction manager monitors the construction progress and reports details to the project manager. These details also include risks and opportunities. In addition, the construction manager documents any changes to project specifications, scope, and drawings. They are responsible for defining clear roles and deliverables for all the team members. The construction manager also reviews person-hours and duration forecasts to ensure work is completed on schedule. A construction manager must monitor productivity and schedule performance, investigating reasons for poor performance. They then provide recommendations or modifications to operational procedures to improve performance and efficiency. The construction manager is also responsible for complying with health and safety standards and promoting the same safety culture across the board. Summary Project managers manage the entire project, while construction managers manage the day-to-day construction processes. The project manager has more responsibility for the project and the client and supervises the construction manager. AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION Difference between PM and CM according to UAP Documents THE PROJECT MANAGER (PM) The Project Manager (PM, whether individual or firm) operates as a member of an Owner-Architect- Engineer-Contractor Team. In the Team Approach, each member of the team will have precedence in his own field of operations or expertise. In accordance with this principle: The Architect and the Specialist Consultants (SCs) will have prime responsibility for the plan/design of the project. The Engineers will be responsible for their respective engineering plans. The Contractor shall be responsible for his men and equipment and the delivery of the project. The Owner makes decisions on the project and assures that funds are available to complete the project. The Project Manager (PM)’s primary responsibility is the exercise of overall cost control. He will plan, program and monitor the various activities, and will act as an adviser on material costs and construction methods THE CONSTRUCTION MANAGER (CM) Due to the increasing complexity of construction projects, there is an upward demand for more effective cost control and faster project implementation consistent with high quality of work. Construction Management Services were thus instituted to fill this need in the construction industry. The Construction Manager (CM) could either be: - a member of the staff of the Owner, - an independent individual, or - a firm hired by the Owner to manage the construction of a particular project. The Architect can serve as the Construction Manager (CM). His training in the coordination of various specialties allows him to supervise and assure proper monitoring of all construction activities with regards to quality, workmanship and cost. FUNCTIONS AND DESCRIPTION OF TASKS The responsibilities of the Construction Manager (CM) include the functions of the Construction Supervision Group (CSG). (reference Doc. 204-A and Architect’s Guidelines) - Coordination and Supervision - Cost and Time Control - Quality Control of Work and - Keeping of Records The Construction Manager (CM) may hire the CSG to be under his employ or may supervise the CSG hired directly by the Owner. LIMITATION OF AUTHORITY The Architect as the Construction Manager shall not: AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION Involve himself directly with the work of the Contractor such that it may be construed that he is assuming the Contractor’s liability as provided for in Article 1723, etc. of the Civil Code. Impose methods, systems or designs that will substantially affect the construction schedule and impair the design concept of the Architect. COMPENSATION FOR PROJECT MANAGER AND CONSTRUCTION MANAGER According to UAP DOC 210 Methods of Compensation and Schedule of Fees Project Manager: 2-5% Project Construction Cost Construction Manager: 1.5 to 3% Project Construction Cost Full Time Construction Supervision: 1 to 1.5% Project Construction Cost AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION Construction Management Processes 6 Phases of Construction Project Management 1. Project design The construction phases of a project’s life cycle begin with its design. Here, the owner builds the case for constructing the project. Sometimes, after all is considered, the owner might find the project is not workable. - Making a business case Whether it’s a high-rise office building or a low-rise multifamily housing project, owners must always satisfy a business case for the project. In this part of the design phase, the owner envisions the property’s use and the financial incentives for that use. - Conducting a feasibility study The feasibility study either convinces the owner the project is possible, flags it as needing adjustments, or shows it as a no-go. In this part of the design phase, the owner considers variables ranging from land use to construction costs while fine-tuning the best use. If the project is deemed possible, then it moves into the next phase. - Defining the project scope In the scoping phase, the owner works closely with architects, engineers, and sometimes even contractors to decide the project size and features. The goal is to match the finished project to its immediate use after construction and to accommodate additional uses as the project ages. At this phase, the design team renders all the drawings and specifications needed to build the project. 2. Project procurement With the project plans completed, the owner moves the project to the next phase. In this second of the construction project phases, the goal is to assemble the team that will do the construction. - Selecting the delivery method A prime consideration for any project is the delivery method. Until the last decade, owners almost always chose the design-bid-build delivery method. Today, more and more projects are opening up to design-build and integrated project delivery. These collaborative methods lead to lower costs and better project outcomes. The owner chooses the delivery method that will best fulfill the project’s goals. - Selecting participants The owner often selects project participants by inviting contractors or construction managers to bid on the project. Sometimes the owner may already have a working relationship with particular contractors, like is often the case with corporate owners, so they will invite them to the project. Sometimes contractors submit hard bids to win the project, while other times, the contractors and owners work together to design and price the project. In all cases, the owner is trying to achieve the best value for the money while rendering the project as close to their original intent as possible. - Awarding contracts Awarding contracts is the last part of this construction project phase. The owner must weigh multiple factors in selecting the builder. Price is a top consideration, but the builder’s track record, its ability to insure and bond for the project, and the builders’ experience with similar projects all figure into the decision. 3. Project preconstruction With contracts signed, the general contractor or construction manager gets to work on all details needed to start construction. First, they must round out the required help. Most GCs and CMs will come to the job with a group of subcontractors already known to them. However, specialty aspects of the project often require AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION them to locate and partner with specialists. The GCs and CMs spend much time at this phase bringing people, materials, and equipment together, and planning everything out. - Obtaining permits Few localities exist where you don’t need permits for construction. Contractors get to work pulling permits for everything from utility work to building code requirements. - Site surveying Contractors consult site surveys to confirm their understanding of what already exists on the construction site. These surveys often find conditions that weren’t included in the contract documents. This is the first opportunity contractors have to record and begin managing the inevitable surprises inherent in any construction project. - Creating a risk management plan Almost all contracts today require the contractor to have a formal risk management. The contractor must assess all the project risks and make plans for eliminating them, controlling them, or insuring against them. Besides protecting the owner, these plans help the contractor foresee and avoid surprise costs arising from risks. - Setting up a safety plan While safety is also a risk item on construction projects, contractors usually deal with it separately because safety risks are so far-reaching. They often involve life and death, so contractors want to make them a top priority. - Creating work breakdown structures Contractors break construction projects into activities and tasks. Activities are the units of construction, like pouring the foundation. Tasks are the steps needed to complete those activities. A work breakdown structure lists all the tasks needed for each activity. Many construction projects have thousands of activities, so the WBS creates a clear roadmap from project start to project end. - Designing the project schedule It’s the project managers' and schedulers’ jobs to turn the WBS into a schedule that work crews can follow. The schedule reflects the longest time to project completion. It includes milestones so managers can assess how well the project is hitting its schedule. - Setting up a communications plan Construction contracts often require contractors to have a communications plan that meshes with the project communications plan. Here, the contractor specifies how required and time-sensitive communications should take place. They also include accountability controls so parties to the contract know their responsibilities for communicating project information. 4. Project execution The fourth phase is where all the earlier work gets validated, or not. - Preconstruction meetings Contractors kick off the project with preconstruction meetings. During these meetings, all the parties review the project so they understand their roles and how they fit into the wider project. - Procuring resources GCs and specialty contractors buy and order all the materials, parts, and equipment needed for o their portions of the work. They also set up their work crews and labor management plans. - Starting activities This part of the project execution phase is where the physical work begins. Contractors take virtual, or 2D plans, and turn them into 3D. AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION 5. Project control Without controls, construction projects can get gravely sidetracked. There are too many moving parts and too many variables to operate without controls. - Tracking work Once construction is underway, this is the most important of the construction project management phases. Without adequate tracking, it’s very easy to lose control of the activities. This is where many PMs rely on web-based construction management because it’s always on and has the most recent project information. - Tracking activities against time objectives Each construction schedule sets a time limit for each activity. Getting done early can sometimes throw a timeline off as much as getting done late, so project managers want to see how closely crews are hitting the scheduled times. - Tracking quality of activities and tasks Rework and change orders fill the day without quality checks. Each task must meet the assigned quality. Otherwise, tasks coming after can also miss the quality mark. - Adjusting the schedule As project managers pour over the times and quality aspects of projects, they sometimes must adjust the schedule to reflect the project’s latest trajectory. - Tracking the budget All parties working on the project have their own budgets to track. However, the GC or CM must also track the overall project budget. If the budget looks like it might start running in the red, the GC or CM must find the reason, and quickly. 6. Project closure - Delivering the punch list The punch list shows all the problems with the job that must get corrected before closeout. Crews work on the portions of the punch list that match their specialties. - Commissioning For projects involving buildings, this closeout aspect certifies that all the equipment and systems work properly. - Budget closeout Closing out the budget means that everybody can get paid the final monies owed to them. If the owner and GC have withheld retainage, then this lump sum also comes due. Framework for project planning It’s no coincidence the early construction project phases are more mired in detail than the later ones. Wise owners and contractors have figured out that an ounce of planning can cancel out many pounds of rework and mistakes. The construction project phases provide the framework for well-planned projects. AR. CHRISTY ANN M. LLAMIDO FACULTY - COLLEGE OF ENGINEERING AND ARCHITECTURE ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION