Construction Management I
Construction Management I CSM 4513
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This 10 page Class Notes was uploaded by Ardith Wehner MD on Thursday October 29, 2015. The Class Notes belongs to CSM 4513 at University of Texas at San Antonio taught by Staff in Fall. Since its upload, it has received 18 views. For similar materials see /class/231343/csm-4513-university-of-texas-at-san-antonio in Management Information Systems at University of Texas at San Antonio.
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Date Created: 10/29/15
Lecture 1 Notes The Construction Industry 0 Represents 10 of the global economy 0 Represents 55 of the work force 0 AIA American Institute of Constructors o CMAA Construction Management Association ofAmerica o AIA and CMAA initiated professional certification programs 0 Considered as a SERVICE INDUSTRY 0 Have many risks due to government funding demographics market trends and unpredictability The Nature of the Business Success is depended on the quality of the people involved Uses technology for structural capabilities Uses computers for scheduling and management Follows Government Policies to comply with rules and regulations as a wide range oflabor relations Works with economic and political practices Made up of many small businesses consisting of different specialty skills 0 Electricians Plumbing Masonry Paint etc o Considered project oriented so people learn as they go II Has 4 Different Construction Segments 0 Residential 0 Commercial 0 Infrastructure Heavy Highway 0 Industrial Residential Consists of homes small condominiums and apartment buildings Mainly privately funded either by the homeowner or the builder Uses low technology because it is LESS COMPLEX Only requires a small capital investment When the economy is good the small businesses do well Interest rates and government polices in uence the investment in housing Commercial Infrast O Consists of buildings shopping malls theaters schools and hospitals Also privately funded with the exception of schools and hospitals Uses more technology because it is MORE COMPLEX Designed by the ArchitectEngineer and constructed by general contractors Managed and coordinated by construction managers Built for a quick turnaround in marketing and retail More capital investment is needed 0 Which leads to fewer participants and lowers the competition ructure Heavy Highway Consists of roadways bridges canals dams and tunnels Enables the distribution of goods and people Designed mainly by civil engineers Constructed mainly by heavy construction contractors Few firms are involved due to the complexity of the work The firms that are involved are very large The need for rebuilding is high Projects are intended to last a long time Is continuous despite of economic ups and downs Industrial Consists of steel mills petroleum refineries chemical processing plants automobile production facilities etc Are built for production activities within the facility Mostly privately funded Productivity and return on investment depend on how well the facility operates Combines the talents of scientists and engineers with specialized construction personnel Design and construction depend on the needs of the process and production equipment MOST COMPLEX of all 4 sectors Construction and Technology Bridges the gap and between homeoffice and filedoffice The use of electronic communication is being uses more and more Incorporates accounting software email estimatingscheduling BIM Building Information Modeling 0 Updates and shares project design information for parties involved CAD Computer Aided Design 0 Allow parties involved to design and view 23 Dimensional components of the project Owners 0 Can be individuals seeking a home for their family 0 Could be a large organization responding to a change in technology 0 Can also be a municipality seeking to improve its infrastructure 0 Could also be developers working to make money in a certain market 0 The owner is where the project is born 0 The owner s most important function is to financially support the project 0 Include Public Owners Private Owners and Owner Representatives Public Owners 0 Public Projects are built with public money TAX PAYERS 0 Usually build military complexes large public work projects and courthouses 0 Have to go through a series of agencies such as federalstate regulations to be approved Private Owners 0 Could include homeowner who builds only one house in his lifetime 0 Can include a company that owns numerous of facilities 0 Could also include developers who focus on financing location and the image of the project 0 Their goal is to make money either through a quick sale or long term rentals 0 Larger companies have a department ofpeople who represent them Owner Representatives 0 Their job is to understand the goals and objectives of their organization and ensure that the facility is planned to support them 0 Factors that created the need for construction 0 Changing technologies market competition management innovations organizational growth and natural aging of facilities Design Professionals 0 Mainly consists of the architects and engineers o The architect is the lead designer for artistic realms of the project 0 The engineer is the lead designer for the technical realms of the project 0 Lead designers depend on the nature of the project Architects 0 Brought to work on the aesthesis ofa project 0 Are the industries image makers 0 Their main job is to translate and develop the project requirements to represent them so the contractor can price estimate and implement the design Engineers 0 Brought to work on the geotechnical structural air conditioning lightingpower and plumbing work of the project 0 The work of the engineer can in uence the design approach vise versa Consists of 13 of all construction costs Makes sure that the project functions the way it s supposed to and properly Construction Professionals 0 Constructor is the professional responsible for all construction activities 0 Consists of estimators schedulers purchasing agents and subcontractors Estimators 0 jobs are won and lost by their efforts 0 Works with the design drawings and prepare a list of all job costs 0 They need to understand the construction process have knowledge of costs for labor materials and equipment Schedulers 0 Plan the sequence of the construction activities Must understand the construction process Must define distinct construction activities Must understand the relationship among activities Monitors job progress coordinates subcontractors analyzes changes and solves problems Purchasing Agents 0 Buys subcontracts once a job is won 0 Negotiates to get the best price 0 Must be persuasive and have a broad business sense Subcontractors 0 They reduce the builder s financial risk 0 They allow the work to be done more economically and efficiently 0 They specialize in different markets Lecture 21 Notes Project Delivery Methods 0 The owners must choose a delivery method to ensure that it will meet the project objectives and be delivered on time and within a budget 0 A building not delivered on time usually costs more than planned 0 And a late delivery can have cascading effects throughout the owner s organization 0 A project is completed when a group ofpeople s skills match the type of project envisioned 0 They must decide how the members will interact with both the owner organization and each other PROECT DELIVERY METHOD is a particular combination ofprofessionals and contract arrangements that assign responsibilities and risk in a certain way Managing Project Risks o Separated Functions 0 Scope Creep 0 Project Acceleration Separated Functions 0 Occurs when the designer and constructor are the primary professionals on a project 0 Their communication during the project life cycle is key to project success 0 When a change in design occurs after the construction has started it can affect how the construction sequencing is changed 0 The longer the designer waits to inform the contractor ofa change in the design the more it can cost for that design change vise versa Scope Creep 0 Defined as the scope of the work that increases or decreases due to the change in quantity 0 Larger projects are leading to a higher scope creeps 0 Can usually create a backlash further into the project 0 Example When 10000 SF of58 IN wallboard changes to 11000 SF or 3A IN wallboard Project Acceleration 0 Buyers prefer to have projects delivered quickly 0 Finishing early can lower costs put the building into service sooner and cut interest rates on loans 0 However there are risks in finishing projects early 0 Not all elements of the design could be considered 0 Drawings must be detailed to calculate real costs Poor Working Relationships 0 Causes by not having enough time and experience to build good working relationships between everyone involved working on the project 0 Personal chemistry between individuals working on the project is an important role Factors Assessing Project Risks 0 Financial 0 Time 0 Design 0 Quality Financial Risks o The project can cost more than anticipated 0 Or it will cost more than the project itself is worth Time Risks o The project can sometimes not be completed on time 0 Late projects can sometimes affect other parts of the owner s work Design Risks 0 Sometimes the project will not perform in the way it was intended Quality Risks o The project can have poorquality materials and workmanship 0 Or the work will be incomplete in some way Minimizing Risks 0 Choose the right delivery method 0 Choose the right contract type 0 Monitor the ENTIRE process of the project 0 Work with good Partners Different Types of Delivery Methods 0 DesignBidBuild o DesignBuild 0 Construction Management Risk DesignBidBuild o The method in which the owner contracts with separate entities for each design and construction phase of the project 0 Consists of3 phases 0 Design Phase the owner hires an architect to design the project 0 Bidding Phase the owner then holds a bid for the design to find the general contractor that bids the lowest price 0 Construction Build Phase after the bid is awarded to the contractor the construction begins 0 Disadvantages o The construction professionals don t enter the process until the design is complete 0 There is no time for overlapping between the design amp construction phases 0 There is little interaction between the designer and constructor DesignBuild o The method in which the owner contracts with a single firm that is responsible for BOTH the design and construction The single firms can then hire 3rd party contractors to perform the actual labor Advantages 0 Good communication is present between the design team and construction team 0 Most firms specialize in particular areas and have a smooth ow between the design and construction phases 0 Can be easily fast tracked and cut down the overall schedule Construction Management Risk 0 Occurs when the owner hires a contractor to assist in the preconstruction phases and hires the architect separately to assist in the design phases The contractor can be held liable for costs that overrun the GUARANTEED MAXIMUM PRICE GMP Advantages 0 Early GMP 0 Fast Tracking is possible to cut down the overall schedule 0 Construction input in design Lecture 22 Notes Contract Types 0 Lump Sum 0 Unit Price 0 CostPlus Fee Lump Sum Contract 0 Occurs when the contractor agrees to provide a specific amount of work for a specific sum 0 Once the contract is signed both parties must live with its terms 0 The main advantage to a lump sum contract is that the owner knows the cost of the project before it begins 0 The designer prepares a complete set of contract documents which the owner then either bids out or negotiates with a contractor o If the scopes of the project changes the contract will need to be renegotiated causing increased cost to the owner Unit Price Contract 0 Occurs when the owner and contractor agree on a price that will be charged PER UNIT for major elements of the project 0 The owner will then provide ESTIMATED quantities for the project 0 Then he will ask the contractors to bid on the job by figuring out the UNIT PRICES for the ESTIMATED quantities 0 Actual quantities must be measured on the job site requiring the owner to be present to work with the contractors CostPlus Fee Contract 0 Occurs when the contractor is reimbursed by the owner for his work costs and receives either an additional agreed upon fee or a fee that is based on the percentage of costs 0 GUARANTEED MAXIMUM PRICE GMP can be involved 0 Involved when the contractor is reimbursed at costs within the agreed upon fee up to the GMP o The contractor is responsible for any additional costs 0 Mainly used in early design or preconstruction and combined when using the DesignBuild or CM Risk delivery methods Lecture 3 Notes Project Chronology 0 Project ideas Money and Finance Project is born Project development Construction Completion Movein Maintain Repair DeadDemolish Design of the Project 0 Divided into 4 phases so the owner can review the progress at major points along the way 4 Phases of Project Design 0 Programming 0 Schematic Design 0 Design Development 0 Construction Documents Programming 0 Describes the spaces needed services required for those spaces and the relationships of the functions to be performed in the building Is depended on the owners sophistication and complexity of the propose facility When all said and done the owner must choose to continue or cancel the project Schematic Design 0 The part when the designer defines the building s characteristics 0 Such as O 0000 Site investigations Foundation types Environmental Factors Alternative Designs Conceptual Estimates Design Development 0 The part when detailed information is defined for the design 0 The finalization of major building systems 0 For example how many electrical outlets are needed 0 Cost estimates are then refigured to obtain real costs ofproject 0 Construction Documents 0 The part when the final working documents are sued to bid and construct the project 0 If the documents are not complete problems can occur in terms of costs and time of the project Procurement 0 The finding and purchasing of materials for the project 0 The hiring of subcontractors for the project 0 After procurement is complete actual construction begins Turnover and Startup 0 After construction is complete the project is turned over to the owner 0 Includes testing of piping ductwork and machinery o The legal process in which the building becomes the legal property of the owner 0 Involves legal certificated occupancy and completion Operations of the Facility Owner s Responsibility Operating costs of the facility are much greater than the actual construction Must be planned in advanced Economic Analysis of Facility 0 Life Expectancy DesignBuild costs operating Costs capital Lecture 4 Notes PreConstruction o Needed for a project to be completed in a smooth and efficient matter 0 Projects are getting bigger and schedules are being shortened 0 Technology is changing and regulations are increasing 0 Designs are more detailed and any change has a potential to be costly Logistic Site Planning 0 Project Manager must review the existing site conditions to develop a site logistic plan 0 Allows the staff to plan for safety movement of personnelmaterials and owsequence of construction 0 Examples 0 Tower Crane Locations
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