ce 415 construction management dr. Ömer Özkan associate professor

CE 415 Construction Management

Dr. Ömer ÖzkanAssociate Professor


Course Description (Catalog):

CE401 Construction Management (3+0)

Construction project management, project life-cycle and project management functions. Construction project procurement. Construction contracts. Construction planning, estimating and bidding. Scheduling techniques in construction.

Performance measurement and management in construction, project success factors, tools to improve project and organizational performance.

Contract and claims management, risk and value management, IT and knowledge management, strategic collaborations, quality management, benchmarking.

Contemporary issues in construction management, advanced processes in construction.


Course Description (Catalog):

CE401 Construction Management (3+0)

Learning Outcomes

The student will be furnished with the - basic principles of construction project

management, - project delivery systems and contract

strategy, - cost estimating and tendering, - construction planning, - quality management, - health and safety and construction

equipment.

This course is designed to give an overall introductory information in the field of construction management at the undergraduate level.


Reference books:

• Bennett, F.L. (2003) The Management of Construction: A Project Life Cycle Approach, Elsevier, Oxford.• Fewings, P. (2005) Construction Project Management, Taylor&Francis, New York.• Harris, F.C., McCaffer, R. and Edum-Fotwe, F. (2006) Modern Construction Management, 6th ed., Blackwell Publishing, Oxford.• Kelly, J., Morledge, R. and Wilkonson, S. (2002) Best Value in Construction, Blackwell Science Ltd, Oxford.• Knutson, K., Schexnayder, C.J., Fiori, C.M. and Mayo, R. (2008) Construction Management Fundamentals, 2nd ed., McGraw Hill,USA.

http://akademik.maltepe.edu.tr/~seyitceribasi


Curricular Context

This elective course provides the senior year students with the essentials of project and strategic management in construction and familiarizes them with the performance issues and new processes in construction.

Class Policies:

• When you are late, please don’t ask to come in

• Don’t use phone, if you need talk or sth like that, please go out of the class.

• Please feel free talk in the class about courses

Project:• Students should make group, Groups include

only two student.• Find one project (architect and reinforced

concrete), two apartments in one floor• Calculate project costs• Prepare bidding files

Grading Number Percentage

Midterm

Project

Quizzes

Final Exam

Course Assessment:


SCHEDULE OF TOPICS

Topic

1 The Construction Industry and Terminology

2 What is Construction Management?

3 Construction Procurement (Bid Analyses and Construction Contracts)

4 Construction Project Organization

5 Construction Planning and Scheduling

6 Construction Cost Estimations

7 Midterm Exam

8 Cost Equation and Examples



11 Project Budgets

12 Project Payments Analyses



1. The Construction Industry and Terminology

1.1. Introduction

1.2. The Construction Sector

1.3. The Construction Industry in Turkey

1.4. Construction profession

1.5. The Design and Construction Process


1.1. Introduction

The construction industry is vast and varied. Just take a look around—from homes to highways to hospitals—and you see the results of this industry. Starting with the need for shelter, we first built primitive huts and houses. Then humankind constructed buildings for assembly and in which to worship. As our needs expanded, so did our building capabilities.

We eventually built political capitals, great cities bustling with business and commerce. Though the means and the methods have changed over the centuries, the construction industry is still about building communitiesthat serve people.


1.1. Introduction

The importance of the sector to society as a whole is immense. Construction, perhaps more than any other industry, is fundamental to the quality of our lives. It provides the drinking water and shelter we need to survive as people and it provides the infrastructure needed for the economy. Construction is big business, totaling more than $ 4.6 trillion annually worldwide, and there is no slowdown in sight.



The role of construction in national economy and development has been widely studied. Gross domestic product GDP (gayri safi yurt içi hasıla - GSYİH) is the total annual value of all goods and services produced by a country less income from investments abroad. Various development patterns for construction related to GDP have been suggested.



The Gross National Product (GNP) is a similar figure, but unlike GDP it includes earnings of domestic companies abroad. The inverse ‘U’ shape pattern by Ranko Bon (1992) suggests that the share of construction in national output increases in the early stages of development but ultimately will decrease in absolute and relative terms in more advanced industrial countries (Bon 1992, Figure 2.1).

An important aspect is that while the proportion for new construction decreases with later stages of development, the share of improvement and maintenance in total construction increases (Bon, 1992).



The amount that a country spends on construction is closely related to its income. Expenditure varied from $5 per person in Ethiopia to almost $5,000 in Japan. This means that construction output, by value, is heavily concentrated in the rich, developed world. The high income countries of Europe are responsible for 30% of global output, the United States for 21% and Japan for 20%. China, despite its huge size and rapid economic growth in recent years, lags a long way behind with only 6%. India has 1.7% (International Labor Organization, 2003).



The distribution of construction employment is the reverse of the distribution of output. While three-quarters of output is in the developed countries, three-quarters of employment is in the developing world. Official data suggest there are around 111 million construction workers in the world, some 80 million of them in the low and middle income countries.

However, as many construction workers in these countries are informally employed and therefore not counted in official data, the real number may be much higher. The reason for the greater employment-generating potential of construction activity in the developing countries can be traced to differences in technology as shown in Figure (International Labor Organization, 2003).



A trend between construction investment and economic growth rate has not been clearly identified, as various studies has contradicting conclusions. Researchers have in some occasions found a positive association between construction activity and economic growth. Given that industrialization is the growth engine, the construction sector, through its relation with numerous other sectors of the economy, would play a determinant role in this development process. In other views, the construction sector does not lead but rather accompany economic growth.



Global construction sector presented an unsteady outlook. After the rapid growth in 1999, the sector reduced around 3 % in size from 3,6 trillion dollars to 3,4 trillion dollars. This situation continued between 2001 and 2002 where the market dropped to 3 trillion dollars. In 2003, the sector showed increased activity and a better performance was anticipated in the years ahead. In 2007, world construction output reached 4,7 trillion dollars with 5% percent growth. However, global economic crisis in 2008 dropped output of the sector significantly. The construction sector showed signs of recovery in 2010 and output reached 4,6 trillion dollars in 2011 but it was below the levels achieved in 2007. It is predicted that volume of output in the construction sector will grow to 15 trillion dollars worldwide by 2025. (DPT 9. Kalkınma Planı, 2006; WTO, 2007; AECOM, 2012; Global Construction, 2013).

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1.3. The construction industry in Turkey

Construction sector is one of the leading sectors of the Turkish economy. Its potential to bring foreign exchange to local markets as a result of works carried out abroad and multiplier effect on the economy due to the existence of strong input-output relations with other sectors highlights its importance.



The construction sector creates demand for the products and services of more than 200 sub sectors. This effect is the basic indicator for the construction sector being considered as the locomotive of the economy. The overall share of construction sector, together with the contribution of other sectors that supply input to construction, is around 30 %.



Today Turkish contractors are working in over 100 countries, realizing around 7000 projects, generating foreign exchange for the Turkish economy, implementing new technologies, joining international partnerships and creating markets to export Turkish goods abroad.

Turkish construction industry is also known as one of the leading sectors of economy due its potential for generating employment. It constitutes 6% of GDP and employing approximately 1.8 million people.



International construction works play an important role through resulting in entrance of foreign currency into Turkish economy in forms of profit transfer of the contracting company.

Construction provides a positive support to the country’s trade balance through the export of construction materials, machine and equipment (Turkish Contractors Association, 2012).


1.4. Construction Profession

The Project Players:

As our brief walk through construction history revealed earlier, the days of the individual master builder are long gone. No longer is it practical to expect one person to design, engineer, and build construction projects.

Today’s master builder is a collaborative team with diverse skills and expertise. Many, many players are involved, and they all make a valuable contribution to the effort while at the same time adding to the complexity of the process. It is very important to understand the various roles and responsibilities of these many players as they influence the construction management process



Primary Players

The three principal players in any construction project are the owner, the designers (architects and engineers), and the contractor.

Although these three parties are always involved in a project, the alignment and contractual relationships among them will vary depending upon the project delivery system utilized to deliver the project.



Owners

No construction would ever be accomplished without owners. They are the driving force behind the construction industry. Their demands for housing, commercial facilities, industrial products, and infrastructure are the chief motivation to build. :



After determining need and deciding to build, the owner is accountable for four primary duties:

• Developing the program and outlining the needs and requirements of the end users

• Determining the quantity, extent, and character of the project by defining the scope of work

• Creating the overall budget for the project, including land acquisition (if necessary), development, design, and construction costs

• Providing the funding for the project and making periodic payments to the designers and the contractor



Design Professionals:

Two types of professional designers are engaged in the construction process, and each deals with different parts of the project design. Architects deal with the function, life safety issues, and aesthetics of the building, and engineers deal with the systems.

They typically work together to complete the design function with one or the other taking the lead, depending on the type of facility being constructed



Architects:Architects are licensed professionals trained in the art and science of building design. They transform the owner’s program into concepts and then develop the concepts into building images and plans that can be constructed by others. In addition to completing a four- or five-year college program, architects are also required to have a number of years of experience and pass an exam before they can become licensed.

Architects design the overall aesthetic and functional look of buildings and other structures. The design of a building involves far more than its appearance. Buildings also must be functional, safe, and economical, and they must suit the needs of the people who use them.



Engineers:

Engineers are usually the lead designers for heavy civil and industrial projects. Engineers are regulated by professional licensing requirements that include a four- or five-year college program, a specific number of years of experience, and the passing of a professional licensing exam.

However, in building design, they are most often hired as consultants by the architects. In this scenario, they have no direct contact with the owner.

There are many different engineering specialties; the most common ones associated with construction activities are described next:- Structural engineers- Mechanical engineers- Electrical engineers- Civil engineers



Contractors:

The term constructor is generally used to define the professional responsible for all construction activities whether they work as a general contractor, a construction manager, or a specialty contractor.

The profession of constructor includes job titles such as, but not limited to, project manager, general superintendent, project executive, operations manager, construction manager, and chief executive officer.



The constructor’s job is to do the following:

- Interpret the plans and specifications and prepare cost estimates and time schedules to meet the requirements of the owner.

- Determine and implement the best construction practices, means, and methods to satisfy the owner’s requirements for time, cost, and quality.

- Oversee and manage all of the construction operations into a single, safe coordinated effort.



Even though the construction process is complex and often overwhelming, there really is a method to the madness. The design and construction of buildings, bridges, and roadways follow a consistent linear path from initial concept to occupancy. We move through the process one step at a time, eventually arriving at the successful delivery of the construction project.

These stages are as follows:- Design and Bidding Stages- Pre-construction- Procurement- Construction- Post-construction- Owner occupancy



The Design and Bidding Stage

The DesignEvery project starts with a design, and the design process involves an intensive study and a lot of considerations. Architects and engineers basically take ideas combined with certain requirements and develop the two into comprehensible plans and specifications that are used to construct the new building or facility.

There are four steps to the design process:- Programming and feasibility- Schematic design- Design development- Contract documents



The Design and Bidding StageThe BiddingThe design phase culminates with the competitive bidding stage. The drawings and specifications are complete, and now it’s time to select the builder and award the contract. The architect produces multiple sets of documents for distribution to the contractors during the bidding stage. The engineer also sends several sets to the building department for a plan check. The plan check by the building department occurs at the same time that bidding is taking place among the selected contractors.A notice to proceed is issued to the winning contractor, and now the work that will transform the design into reality begins.



The Pre-construction Stage

Up to this point, the only members of the construction team who have been involved with the project are the estimators. Now with contract in hand and a notice to proceed from the owner, it is time to bring on the rest of the team. This is when the estimators pass the job over to the project manager. The project manager is the captain of the construction management team. This is most likely the first time that the project manager has seen the job, so the quality of the information passed from estimator to project manager is very important. Keep in mind that cost control is one of the most crucial components of the construction management task, and poor transfer of information here will result in significant headaches for the construction management team down the road.



The Procurement Stage

To procure means to buy or obtain. The procurement stage of construction management is often referred to as “buying out” the job or purchasing the labor, materials, and equipment needed to complete the project.

A great deal of the construction management function has to do with managing contracts—contracts to secure the labor and trades needed to perform the work and contracts to secure the materials and equipment that will be placed on the project. The two primary instruments associated with this effort are subcontracts and purchase orders



The Construction Stage

Once the work is ready to start, the superintendent will call for a pre-construction meeting with all the subcontractors and major material vendors. This meeting essentially establishes the ground rules for working together.

The superintendent also uses this opportunity to go over issues such as work sequencing, work hours, material storage, quality control, site access, and many other pertinent topics.



The Post-Construction Stage

You might think that once the construction is complete, the job is over. Not quite. Just as when you cook and serve a magnificent dinner for a roomful of people, you still have to clean up afterward.

The post-construction stage is the cleanup stage. It is very important that this stage be handled with as much energy and enthusiasm as the project startup and operations, because a slipup here can have costly consequences down the road. And you always need to remember that no matter how well the first 90 percent went, if you make mistakes and drop the ball during the last 10 percent of the job, that’s all the owner will remember. The team still has a number of tasks to manage before they can call it a wrap.

ce 415 construction management dr. Ömer Özkan associate professor

Documents

construction management

ce401 construction management

construction contracts

construction equipment

construction managementdr

main construction class

project management functions

knowledge management