Construction Management PDF

PRE CONSTRUCTION The pre-construction stage begins when the owner gives a notice to proceed to the contractor that they have chosen through the bidding process. A notice to proceed is when the owner gives permission to the contractor to begin their work on the project. The first step is to...

PRE CONSTRUCTION The pre-construction stage begins when the owner gives a notice to proceed to the contractor that they have chosen through the bidding process. A notice to proceed is when the owner gives permission to the contractor to begin their work on the project. The first step is to assign the project team which includes the project manager (PM), contract administrator, superintendent, and field engineer. Project manager: The project manager is in charge of the project team. Contract administrator: The contract administrator assists the project manager as well as the superintendent with the details of the construction contract. Superintendent: It is the superintendent's job to make sure everything is on schedule, including the flow of materials, deliveries, and equipment. They are also in charge of coordinating on-site construction activities. Field engineer: A field engineer is considered an entry-level position and is responsible for paperwork. During the pre-construction stage, a site investigation must take place. A site investigation takes place to discover if any steps need to be implemented on the job site. This is in order to get the site ready before the actual construction begins. This also includes any unforeseen conditions, such as historical artifacts or environmental problems. A soil test must be done to determine if the soil is in good condition to be built upon. Procurement The procurement stage is when labor, materials and equipment needed to complete the project are purchased. This can be done by the general contractor if the company does all their own construction work. If the contractor does not do their own work, they obtain it through subcontractors. Subcontractors are contractors who specialize in one particular aspect of the construction work such as concrete, welding, glass, or carpentry. Subcontractors are hired the same way a general contractor would be, which is through the bidding process. Purchase orders are also part of the procurement stage. Purchase orders: A purchase order is used in various types of businesses. In this case, a purchase order is an agreement between a buyer and seller that the products purchased meet the required specifications for the agreed price. The construction stage begins with a pre-construction meeting brought together by the superintendent (on an American project). The pre-construction meeting is meant to make decisions dealing with work hours, material storage, quality control, and site access. The next step is to move everything onto the construction site and set it all up. A contractor progress payment schedule is a schedule of when (according to project milestones or specified dates) contractors and suppliers will be paid for the current progress of installed work. Progress payments or interim payments are partial payments for work completed during a portion of a construction period, usually a month. Progress payments are made to general contractors, subcontractors, and suppliers as construction projects progress. Payments are typically made on a monthly basis but could be modified to meet certain milestones. Progress payments are an important part of contract administration for the contractor. Proper preparation of the information necessary for payment processing can help the contractor financially complete the project. Owner Occupancy Once the owner moves into the building, a warranty period begins. This is to ensure that all materials, equipment, and quality meet the expectations of the owner that are included within the contract. Warranties When people in the construction industry refer to 'warranties', they are probably referring to an obligation that arises from a document that has been signed or issued by the warrantor. Alternatively, they might be referring to a warranty that arises under statute or is implied by law. Issues Resulting from Construction Dust and mud When construction vehicles are driving around a site or moving earth, a lot of dust is created, especially during the dryer months. This may cause disruption for surrounding businesses or homes. A popular method of dust control is to have a water truck driving through the site spraying water on the dry dirt to minimize the movement of dust within and out of the construction site. When water is introduced, mud is created. This mud sticks to the tires of the construction vehicles and is often led out to the surrounding roads. A street sweeper may clean the roads to reduce dirty road conditions. Environmental protections Storm water pollution: As a result of construction, the soil is displaced from its original location which can possibly cause environmental problems in the future. Runoff can occur during storms which can possibly transfer harmful pollutants through the soil to rivers, lakes, wetlands, and coastal waters. Endangered species: If endangered species have been found on the construction site, the site must be shut down for some time. The construction site must be shut down for as long as it takes for authorities to make a decision on the situation. Once the situation has been assessed, the contractor makes the appropriate accommodations to not disturb the species. Vegetation: There may often be particular trees or other vegetation that must be protected on the job site. This may require fences or security tape to warn builders that they must not be harmed. Wetlands: The contractor must make accommodations so that erosion and water flow are not affected by construction. Any liquid spills must be maintained due to contaminants that may enter the wetland. Historical or cultural artifacts: Artifacts may include arrowheads, pottery shards, and bones. All work comes to a halt if any artifacts are found and will not resume until they can be properly examined and removed from the area. Construction Activity Documentation Project meetings take place at scheduled intervals to discuss the progress on the construction site and any concerns or issues. The discussion and any decisions made at the meeting must be documented. Diaries, logs, and daily field reports keep track of the daily activities on a job site each day. Diaries: Each member of the project team is expected to keep a project diary. The diary contains summaries of the day's events in the member's own words. They are used to keep track of any daily work activity, conversations, observations, or any other relevant information regarding the construction activities. Diaries can be referred to when disputes arise and a diary happens to contain information connected with the disagreement. Diaries that are handwritten can be used as evidence in court. Logs: Logs keep track of the regular activities on the job site such as phone logs, transmittal logs, delivery logs, and RFI (Request for Information) logs. Daily field reports: Daily field reports are a more formal way of recording information on the job site. They contain information that includes the day's activities, temperature and weather conditions, delivered equipment or materials, visitors on the site, and equipment used that day. Labor statements are required on a daily basis. Also list of Labor, PERT CPM are needed for labor planning to complete a project in time. Resolving Disputes Mediation: Mediation uses a third party mediator to resolve any disputes. The mediator helps both disputing parties to come to a mutual agreement. This process ensures that no attorneys become involved in the dispute and is less time-consuming. Minitrial: A minitrial takes more time and money than a mediation. The mini trial takes place in an informal setting and involves some type of advisor or attorney that must be paid. The disputing parties may come to an agreement or the third party advisor may offer their advice. The agreement is nonbinding and can be broken. Arbitration: Arbitration is the most costly and time-consuming way to resolve a dispute. Each party is represented by an attorney while witnesses and evidence are presented. Once all information is provided on the issue, the arbitrator makes a ruling which provides the final decision. The arbitrator provides the final decision on what must be done and it is a binding agreement between each of the disputing parties. Business Model The construction industry typically includes three parties: an owner, a licensed designer (architect or engineer) and a builder (usually known as a general contractor). There are traditionally two contracts between these parties as they work together to plan, design and construct the project. The first contract is the owner-designer contract, which involves planning, design, and construction contract administration. The second contract is the owner-contractor contract, which involves construction. An indirect third-party relationship exists between the designer and the contractor, due to these two contracts. An owner may also contract with a construction project management company as an adviser, creating a third contract relationship in the project. The construction manager's role is to provide construction advice to the designer, design advice to the constructor on the owner's behalf and other advice as necessary. Design, bid, build contracts The phrase "design, bid, build" describes the prevailing model of construction management, in which the general contractor is engaged through a tender process after designs have been completed by the architect or engineer. Design-build contracts Many owners - particularly government agencies - let out contracts known as design-build contracts. In this type of contract, the construction team (known as the design-builder) is responsible for taking the owner's concept and completing a detailed design before (following the owner's approval of the design) proceeding with construction. Virtual design and construction technology may be used by contractors to maintain a tight construction time. Architect and Engineers Work inspection Change orders Review payments Materials and samples Shop drawings Three-dimensional image Agency CM Construction cost management is a fee-based service in which the construction manager (CM) is responsible exclusively to the owner, acting in the owner's interests at every stage of the project. The construction manager offers impartial advice on matters such as: Optimum use of available funds Control of the scope of the work Project scheduling Optimum use of design and construction firms' skills and talents Avoidance of delays, changes and disputes Enhancing project design and construction quality Optimum flexibility in contracting and procurement Cash-flow management Comprehensive management of every stage of the project, beginning with the original concept and project definition, yields the greatest benefit to owners. As time progresses beyond the pre-design phase, the CM's ability to effect cost savings diminishes. The agency CM can represent the owner by helping select the design and construction teams and managing the design (preventing scope creep), helping the owner stay within a predetermined budget with value engineering, cost-benefit analysis and best-value comparisons. The software-application field of construction collaboration technology has been developed to apply information technology to construction management. CM at Risk CM at-risk is a delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP). The construction manager acts as a consultant to the owner in the development and design phases (preconstruction services), and as a general contractor during construction. When a construction manager is bound to a GMP, the fundamental character of the relationship is changed. In addition to acting in the owner's interest, the construction manager must control construction costs to stay within the GMP. CM at-risk is a global term referring to the business relationship of a construction contractor owner and architect (or designer). Typically, a CM at-risk arrangement eliminates a "low-bid" construction project. A GMP agreement is a typical part of the CM-and-owner agreement (comparable to a "low-bid" contract), but with adjustments in  responsibility for the CM. The advantage of a CM at-risk arrangement is budget management. Before a project's design is completed (six to eighteen months of coordination between designer and owner), the CM is involved with estimating the cost of constructing a project based on the goals of the designer and owner (design concept) and the project's scope. In balancing the costs, schedule, quality and scope of the project, the design may be modified instead of redesigned; if the owner decides to expand the project, adjustments can be made before pricing. To manage the budget before design is complete and construction crews mobilized, the CM conducts site management and purchases major items to efficiently manage time and cost. A. Advantages CM is working "at risk", therefore have incentive to act in the owner's interest, as well as to efficiently manage construction costs, considering they would be liable for any amount in excess of the GMP Ability to handle changes in design or scope B. Drawbacks If a cost overrun occurred, it could cost the CM a great deal of money The CM is allowed some mistake-related contingency, therefore there is a possibility that they will compensate by reducing the scope of the work to fit the GMP Since the GMP is settled before design begins, it is difficult for owners to know whether they received the best possible bid. C. Bottom line An at-risk delivery method is best for large projects-both complete construction and renovation-that are not easy to define, have a possibility of changing in scope, or have strict schedule deadlines. Additionally, it is an efficient method in projects containing technical complexity, multi-trade coordination, or multiple phases. Accelerated Construction Techniques Starting with its Accelerated Bridge Program in the late 2000s, several Government and Private agencies began employing accelerated construction techniques, in which it signs contracts with incentives for early completion and penalties for late completion, and uses intense construction during longer periods of complete closure to shorten the overall project duration and reduce cost.