Construction Management
Human beings build houses, roads, bridges, tunnels, ports, airports, factories, shopping centres, offices, warehouses, etc. Public and private organisations participate in the execution of these projects with the collaboration of architects, engineers, companies, financial entities, etc. The scope of the “construction” term includes the primary sector (quarries), secondary sector (equipment and construction materials) and tertiary sector (engineering and architecture consulting companies), that is, industrial, commercial and service activities. Therefore, it includes private initiatives and the activities of the public administrations.
Construction is set within a sensitive socio-political environment, affected by the need to protect the fundamental rights of persons, such as public health, homes, road safety, environmental integration, etc. It is easy to understand the problems in establishing a set of economic activities in an ordered and coherent framework, taking place in an environment with many players from various sectors , with conflicting interests and branches towards many other economic sectors. In a broader sense, construction is an important motor and, at times, an obstacle to economic growth.
In view of this scenario, this book is focused exclusively in the construction phase of that process. The contractor’s point of view is chosen, even though the links with the owner are always taken into account. An envisioned outline of the management at the construction site is looked for, from the signing of the contract to the beginning of the operational phase.
Aiming to develop a useful and applied text for students in post-graduate construction programmes, five authors work together. They all have a wide experience in the construction industry; in fact, this book is based on their previous experience in several Leonardo da Vinci projects financed by the European Union. Four of the authors develop their main task as professors in two different universities: Eugenio Pellicer, Víctor Yepes and Joaquín Catalá at the Universitat Politècnica de València, and José Teixeira at the Universidade do Minho; Helder Moura works for the Portuguese Highway Agency. Each author has led those chapters in which they can add more value to the work due to their professional and academic practice. Nevertheless, all of us have contributed to the whole.
Every chapter begins with educational objectives that allow the reader to know in advance its focus. Furthermore, it includes many cites in throughout the text in order to provide clues to post-graduate students in key issues that can allow them to deepen their knowledge. Other recommended books for further reading are also indicated at the end of each chapter. European examples, best practices and procedures are incorporated using “boxes” in the text. Furthermore, figures and tables try to clarify the main concepts for the readers.
The book is organised into fifteen chapters as follows. Chapter 1 introduces the construction industry in general. This chapter also gives data on construction in the European Union and presents the construction company, including some of their traditional organisational hierarchies, and the link between the firm and the construction site.
Chapters 2 and 3 examine the contractual documents and the different agents that appear in the construction phase, including the ones associated to relational contracts. Administrative and technical documents of the design phase and tendering documentation are also analysed, as well as the main phases of the estimating process, during the bid preparation. Chapter 4 introduces other interesting issues such as communications, negotiation, information flow, documentation and record keeping; it develops the daily logs, the reports, the diary and the meetings, paying particular attention to building information modelling.
Chapters 5 to 8 explain basic issues related to the execution of works, such as: site setup and planning (5), machinery and equipment (6), productivity and performance (7), and quality management (8). Chapter 5 considers constrains of the site and the equipment, storage of materials, temporary facilities, auxiliary works, jobsite offices and jobsite security. Chapter 6 takes into consideration the selection of machinery, the calculation of its cost and, finally, the machinery maintenance. Chapter 7 presents the study of works, techniques of work measurement, equipment performance and productivity assessment; the concept of benchmarking is explained here too. Finally, Chapter 8 explores the quality management processes at the construction site; this chapter also deals with innovation and knowledge management processes in the construction organisation, relating them to quality management.
Chapter 9 is focused on health and safety in the construction site. Taking into account the European Union directives, the general principles of prevention and the involved agents and their duties are explained. Site specific safety plans and incidents during the execution of works are also considered from the point of view of the site manager as well as the owner. Chapter 10 shows the environmental management at the construction site; the issue of sustainability is also explained; construction and demolition recycling is explained in detail. Chapter 11 analyses the supply chain management in construction, introducing the lean construction approach.
Chapter 12 is the longest in the book. It describes resources management, investigating the scope of activities, the assignment of resources to activities, their sequence, duration and monitoring. It develops the bar and network diagrams, cost of resources and cost control. Subjects such as the last planner system, the earned value method, value engineering and risk management are explained too.
Chapter 13 focuses on progress payment procedures. Chapter 14 considers changes and claims during the construction phase. Finally, Chapter 15 describes the closeout process of the construction works and also the construction contract, analysing the commissioning procedures, handover and occupation; it also introduces the operation and maintenance manual and the as-built documents.
Our gratitude also goes to our former, present and potential students who have allowed us to develop, in different ways, the materials of this book. We want to acknowledge our families for the time we have spent preparing the book instead of enjoying their company. We would also appreciate any comments that help us to improve the manuscript in future editions.
TABLE OF CONTENTS
Preface
Chapter 1: “Organising Construction Processes in Construction Companies”
1.1. Educational Outcomes
1.2. The Facility Life-Cycle
1.3. Production by Projects
1.4. The Construction Industry
1.5. Construction Companies
1.6. Organisational Structure of a Construction Company
1.7. The Construction Site within the Construction Company
References
Further Reading
Chapter 2: “Contract Documents”
2.1. Educational Outcomes
2.2. Contract Documents
2.3. Type of Documents
2.4. Bidding Documents
2.5. Contractor Tender or Bid
2.6 Estimating Process
2.7. Contract Agreement
2.8. Bill of Quantities
2.9. General and Particular Conditions
2.10. Technical Specifications
2.11. Contract Drawings
2.12. Other Documents
References
Further Reading
Chapter 3: “Procurement Approaches”
3.1. Educational Outcomes
3.2. Introduction to Procurement
3.3. Traditional Procurement
3.4 Design and Build Arrangements
3.5 Management Contracting
3.6 Construction Management
3.7 Relational Contracting
3.8 Public Concessions and Public-Private Partnerships
3.9 Organization Modelling
3.10. The Project Manager Team
References
Further Reading
Chapter 4: “Communications, Information and Documentation”
4.1 Educational Outcomes
4.2. Importance of Communications, Documentation and Information
4.3. Communications on Site
4.4. Daily Logs
4.5. Reports
4.6. Construction Diary
4.7. Meetings
4.8. Photographs and Videos on Site
4.9. Information and Documentation Flow in Construction
4.10. Information and Communications Technologies (ICT)
4.11. Building Information Modelling (BIM)
4.12. Electronic Business and Project Administration
References
Further Reading
Chapter 5: “Site Setup and Construction Processes”
5.1. Educational Outcomes
5.2. Site Constrains
5.3. Equipment Constrains
5.4. Material Storage and Handling
5.5. Temporary Facilities and Auxiliary Works
5.6. Construction Jobsite Offices
5.7. Security on Construction Sites
5.8. Internal Organisation of The Construction Works
5.9. General Approach to Construction Processes
5.10. Temporary Works
References
Further Reading
Chapter 6: “Machinery and Equipment”
6.1. Educational Outcomes
6.2. The Need of Machinery and Equipment
6.3. Selection of Machinery and Equipment
6.3.1. Conditioning Factors
6.3.2. Methods Used to Select the Machine in Relation to Economic Profitability
6.4. Calculation of Costs
6.4.1. Fixed and Variable Hourly Costs
6.4.2. Equipment Ownership Costs
6.4.3. Operating Costs
6.5. Maintenance
References
Further Reading
Chapter 7: “Productivity and Performance”
7.1. Educational Outcomes
7.2. Productivity and Performance
7.3. Work Study
7.4. Method Study
7.5. Work Measurement
7.6. Equipment Performance
7.7. Assessment of Production/Productivity
7.8. Benchmarking and Construction Productivity Improvement
References
Further Reading
Chapter 8: “Quality, Innovation and Knowledge Management”
8.1. Educational Outcomes
8.2. Quality, Innovation and Knowledge
8.3. Quality Control
8.4. Quality Assurance in Accordance with ISO 9001
8.5. Innovation in Construction Projects
8.6. Knowledge Management in Construction
8.7. Standards and Procedures
8.8. Certificates and Technical Approvals
References
Further Reading
Chapter 9: “Health and Safety Management”
9.1. Educational Outcomes
9.2. Introduction to Occupational Health and Safety
9.3. The Risk-Accident Cycle
9.4. Regulatory Context
9.5. Agents Involved
9.6. Business Context
9.7. On Site Prevention
9.8. Health and Safety Plan
9.9 Management of the Health and Safety Plan
9.10. Incidents and Accidents during Construction
References
Further Reading
Chapter 10: “Environmental and Sustainability Management”
10.1 Educational Outcomes
10.2 Environmental Impact Assessment
10.3. Basic Legislation for Environmental Impact Assessment
10.4. Environmental Management Tools
10.5. Environmental Management at the Construction Site
10.6. Construction and Demolition (C&D) Waste Management
10.7. C&D Reduction, Reuse and Recycling
10.8. Environmental Monitoring Plan
10.9. Environmental Impacts at the Construction Site
10.10. Sustainability in Construction
10.11. Green Buildings and Certifications
References
Further Reading
Chapter 11: “Supply Chain Management”
11.1. Educational Outcomes
11.2. Introduction to Supply Chain Management
11.3. The Construction Supply Chain
11.4 Pros and Cons of Subcontracting in the Construction Industry
11.5. Procurement and Management of Subcontracts
11.6. Purchase of Materials and Equipment
11.7. Coordination of Suppliers and Subcontractors
11.8. Lean Construction
References
Further Reading
Chapter 12: “Resources Management”
12.1 Educational Outcomes
12.2. Construction Planning
12.3 Work Breakdown Structure
12.4. Scheduling of Activities
12.5. Duration of Activities
12.6. Resources Limitations and Leveling
12.7. Bar Chart or Gantt Diagram
12.8. Network Diagrams
12.8.1. Historical Introduction
12.8.2. Graphic Representation
12.8.3. Calculating the Critical Path
12.8.4. Probability Applications
12.8.5. The Precedence Diagramming Method
12.8.6. Critical Chain
12.8.7. Commercial Software
12.9. Line of Balance
12.10. Last Planner System
12.12. Cost Assessment and Control
12.13. Earned Value Management
12.14. Value Engineering
12.15. Risk Management
References
Further Reading
Chapter 13: “Progress Payment”
13.1. Educational Outcomes
13.2. Introduction to Progress Payment
13.3. Lump Sum Contract
13.4. Unit Price Contract
13.5. Cost Plus Contract
13.6. Incentive Contract
13.7. Percentage of Construction Fee Contract
13.8. Progress Payment Procedures
References
Further Reading
Chapter 14: “Claims and Change Management”
14.1. Educational Outcomes
14.2. Introduction to Claims and Change Management
14.3. Definition of Claim
14.4. Causes of Claims
14.5. Types of Claims
14.6. Claim Management Process
14.7. Claim Avoidance Practices
14.8. Management of the Change Process
References
Further Reading
Chapter 15: “Project Closeout”
15.1. Educational Outcomes
15.2. The Closeout Process
15.3. Completion and Closing of the Construction Project
15.4. Inspection and Tests
15.5. Handover
15.6. Occupation
15.7. Final Documentation
15.8. Post Project Review
References
Further Reading
The authors
Valencia and Porto, February 2013