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    Construction Methods & ManagementCIEG 486-010

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    Construction Methods & Management

    CIEG 486-010

    Construction Managers must be

    both

    business and technicallyoriented

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    Construction Education Options

    Education Format

    Traditional CEM

    BC

    CM

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    Engineering (civil or architectural)

    Specialization/area of

    concentrationCurriculum Elective

    Construction Education Options

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    Construction-Focused

    Education

    CEM CM BCM

    Civil

    Engineering

    Applied Technology

    or

    Professional Studies

    Architecture

    School of Construction

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    Construction Management Education

    National CEM Programs Stanford University

    University of Michigan Virginia Tech

    Purdue University

    University of Illinois-UC

    Oregon State University

    University of Colorado

    NC State

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    Construction Management Education

    National BCM Programs

    Georgia Tech

    University of Florida Purdue University

    Virginia Tech

    Auburn University

    Georgia SouthernUniversity

    University of North Florida

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    Construction Education Options

    National CM Programs Arizona State University

    Florida International University Colorado State

    Clemson

    University of Washington

    Michigan State University Brigham Young

    Wentworth Institute of Technology

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    Construction Education Options

    Graduate Construction Programs Stanford University

    University of Colorado University of Michigan

    Virginia Tech

    University of Southern California

    Arizona State University Florida International University

    Texas A&M

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    Construction Management

    Interdisciplinary Education

    Practice rather than theory based

    Foundation of Business and Science

    Courses Architectural & Engineering Coursework

    Core of Construction Management

    Courses

    Construction Education Options

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    B.S.C.M. Coursework

    Engineering subjects

    Strength of Materials

    Statics and Structures

    Soil Mechanics Steel and ConcreteDesign

    Surveying

    Construction Methods & Management

    CIEG 486-010

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    Construction Methods & Management

    CIEG 486-010

    B.S.C.M. Coursework

    Business Management

    Accounting

    Economics

    Statistics Financial Mgt.

    Contract Law

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    Construction Methods & Management

    CIEG 486-010

    B.S.C.M. Curriculum Course DistributionEngineering

    (incl math &

    science)34%

    Construction

    Mgt.

    30%Liberal Arts

    13%

    Business

    15%

    Architecture8%

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    Construction Methods & Management

    CIEG 486-010

    Licensing/Certifications

    Professional Engineers License issued by state orlocal governing board.

    Certified Constructorissued by the American Instituteof Constructors (AIC).

    Certified Construction Managerissued byConstruction Management Association of America(CMAA)

    Project Management Professional(PMP) by theProject Management Institute (PMI)

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    Basic Skills needed by Construction Managers

    Estimating

    Computer

    Leadership/supervisory

    Communication = writing and oral skills

    Negotiating

    Team Building

    Construction Methods & Management

    CIEG 486-010

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    Construction Methods & Management

    CIEG 486-010

    Construction Management Functions

    Coordination

    Planning & Scheduling

    Purchasing & Expediting

    Supervision Cost Control

    Documentation and Reporting

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    Construction Methods & Management

    CIEG 486-010

    Construction Management Functions

    Quality Control/Quality Assurance

    Estimating

    Safety and Risk Management

    Contract Administration

    Claims Analysis/Avoidance

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    Construction Methods & Management

    CIEG 486-010

    Additional Skills & Knowledge needed by

    Construction Engineers

    Surveying (GPS, GIS, Hydrographic)

    Structural Design

    CADD/Drafting

    Specialization in Mechanical, Electrical,

    Chemical, or Environmental disciplines

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    Construction Methods & Management

    CIEG 486-010

    Construction Engineering Functions

    Preparation and Review of ShopDrawings

    Constructibility & Sequencing Studies

    Value Engineering Erection Diagrams and Procedures

    Survey & Layout

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    Construction Methods & Management

    CIEG 486-010

    Executive Functions

    Corporate Management

    Strategic Planning

    Marketing & Business Development

    Public Relations

    Labor Relations

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    Construction Methods & Management

    CIEG 486-010

    Executive Functions

    Ultimately responsible for quality,safety, production, and general

    financial health.

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    Construction Methods & Management

    CIEG 486-010

    Construction training can be valuable

    to design professionals To enable them to produce practical and

    efficient designs

    Develop needed management skills Learn scheduling techniques that can be

    applied to the preconstruction process

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    Construction Methods & Management

    CIEG 486-010

    Project Life Cycle

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    Construction Methods & Management

    CIEG 486-010

    Life Cycle of a Constructed Facility

    1. Concept and Feasibility2. Engineering and Design

    3. Procurement

    4. Construction5. Startup and Implementation

    6. Operation or Utilization

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    Construction Methods & Management

    CIEG 486-010

    What is Construction?

    Application of art and science

    Inherently dangerous

    Organized chaos

    Mankind using creativity, knowledge,strength, determination, and persistence tocontrol his environment

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    Construction Methods & Management

    CIEG 486-010

    Construction differs from manufacturingin that:

    Not performed in controlled conditions,therefore highly impacted by weather andother environmental conditions

    Seasonality

    Each project is unique

    Remotes sites with various access problems

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    Construction Methods & Management

    CIEG 486-010

    Construction differs from manufacturingin that:

    Process is not as predictable

    Difficulty in applying automation

    High potential for encountering unforeseenconditions

    Costs can vary according to conditions

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    Construction differs from manufacturingin that:

    Difficult to manage and supply utilities and otherresources.

    Technical innovations are adopted slower. Success is dependent upon the quality of its

    people.

    Very custom-oriented

    Product can be of mind-boggling size, cost, and

    complexity

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    Problems Facing Construction

    Industry:

    Highly traditional and fragmented; slow toembrace new technology

    Restrictive/outdated building codes

    Labor agreements and craft jurisdictional

    issues Liability and legal considerations

    Lack of profit motive or other incentive

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    Problems Facing the Construction

    Industry:

    Government regulation

    Environmental constraints

    NIMBY syndrome

    Global competition

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    Construction Methods & Management

    CIEG 486-010

    The Blame Game

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    Construction Methods & Management

    CIEG 486-010

    Industry Divisions

    1. Residential Construction

    2. (Institutional & Commercial) Building

    Construction3. Heavy Construction

    4. Industrial Construction

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    Overview of the Construction Industry

    Industry Divisions

    1. Residential Construction2. (Institutional & Commercial)

    Building Construction

    3. Heavy Construction4. Industrial Construction

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    Overview of the Construction Industry

    Residential

    Types

    Single family houses

    Multi family dwellings

    High-rise apartments &condominiums

    30-35 % of the industry

    Low capital and technologyrequirements

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    Overview of the Construction Industry

    Residential(continued)

    Largely private Often speculative

    Developers = surrogate owners

    Designed by architects,builders/developers

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    Building Construction

    Institutional and

    CommercialConstruction

    Schools anduniversities

    Medical clinics and

    hospitals Recreational facilities

    and sports stadiums

    Overview of the Construction Industry

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    Overview of the Construction Industry

    Building Construction

    Retail stores andshopping centers

    Warehouses and lightmanufacturing

    Office buildings (singlestory to sky scrappers)

    Hotels, conventioncenters, and theaters

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    Overview of the Construction Industry

    Building Construction

    Institutional andCommercial Construction

    Churches andSynagogues

    Prisons

    Courthouses and othergovernment buildings

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    Building Construction

    35-40 % of construction market

    Larger and more complex thanresidential

    Various owners (mostly private) Designed by architects and engineers

    Overview of the Construction Industry

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    Heavy Construction

    HorizontalConstruction

    20-25% of theconstruction industry

    Mostly publicfinancing or largeconsortium

    Overview of the Construction Industry

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    Heavy Construction

    Highway & Bridges

    Railroads & Urban TransitSystems

    Tunnels and Dams

    Airports

    Canals

    Port & harbor structures

    Overview of the Construction Industry

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    Heavy Construction

    Pipelines

    Sewer Systems Water treatment & distribution

    systems

    Power & communication

    networks Landfills

    Overview of the Construction Industry

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    Overview of the Construction Industry

    Heavy Construction

    Mass quantities of basic

    materials: earth, rock, steel,timber, and concrete

    Constructors needknowledge of engineering

    and geology Engineers and builders are

    often specialized

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    Overview of the Construction Industry

    Heavy Construction

    Greatest impact on

    land and water High degree of

    mechanization

    Contracts awarded

    through competitivebidding

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    Industrial Construction

    Very large scale projects High degree of technological complexity

    Designed and built by the largest firms with thehighest level of technical sophistication

    Represent 5-10% of the market

    Overview of the Construction Industry

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    Industrial Construction

    Petroleum refineries

    Steel mills & aluminumplants

    Chemical processing plants

    Overview of the Construction Industry

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    Industrial Construction Fossil fuel & nuclear power

    plants

    Other heavy manufacturing

    facilities

    Overview of the Construction Industry

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    Industrial Construction

    Complex mechanical systems, process piping, andinstrumentation

    Civil, but also mechanical, chemical, and electricalengineering disciplines involved

    Mostly private ownership (in western countries)

    Overview of the Construction Industry

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    Industrial Construction

    Negotiated contracts are typical

    Turnkey contract arrangements are common

    Design-constructor must be intimately familiarwith the technology and operations of the facility

    Overview of the Construction Industry

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    Construction Industry is further subdividedinto sectors or segments by:

    Public vs. private ownership/funding

    Union labor vs. open shop

    Organization and method of project delivery

    Type of work: new vs. rehab/retrofit/restoration Contract type

    Overview of the Construction Industry

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    Construction Methods & Management

    CIEG 486-010

    Participants in the Construction Process

    1. Owner

    Private or public

    Conceives the construction project Increasing level of sophistication

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    Construction Methods & Management

    CIEG 486-010

    Participants in the Construction Process

    2. Designer

    Architects Size of firms ranging form single practitioner to

    large integrated firms

    Mostly building and residential construction

    Engineers Civil, mechanical, structural, electrical,chemical,

    environmental, geotechechnical, andmultidiscipline

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    Participants in the Construction Process

    3. General Contractor General contractor also called Prime contractor

    Specialty contractors working as subcontractors

    Organization ranges from small, one-personcompany to large, integrated A/E/C firms

    Part of a design-build team

    Construction Methods & Management

    CIEG 486-010

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    Construction Methods & Management

    CIEG 486-010

    Participants in the Construction Process

    4. Construction Manager Two principle divisions of CM

    CM for Fee (management services only)

    CM At Risk

    Operates similarly to a GC or DB with no labor orcapital equipment

    Can encompass the management of the designprocess as well as construction

    CM services including inspection and overall project orprogram management

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    Construction Methods & Management

    CIEG 486-010

    Participants in the Construction Process

    5. Suppliers

    Manufactures, distributors, research, promotions

    Materials and equipment sales

    Equipment Rental

    6. Fabricators Structural steel, pre-castors, wood products

    7. Labor/Trade Unions

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    Construction Methods & Management

    CIEG 486-010

    Participants in the Construction Process

    9. Utility Companies

    Electric, communications, water, gas,sanitary

    sewer Private petroleum pipelines

    Owner or service provider

    Integral part of the process

    Existing facilities in conflict with newconstruction

    Interruption of service can be very costly

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    Construction Methods & Management

    CIEG 486-010

    10. Industry Associations

    Functions and services

    Industry information and communication

    Development and maintenance of standards

    Interindustry coordination

    Collective bargaining Statistics (market & industry)

    Meetings and conventions

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    Construction Methods & Management

    CIEG 486-010

    10. Industry Associations

    Functions and services Public relations

    Joint industry promotions Management education

    Market development

    Apprenticeship training

    Legislative Government relations

    Product research

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    Construction Methods & Management

    CIEG 486-010

    Participants in the Construction Process

    11. Professional Services

    Business/management consultants

    Legal council

    CPA firms

    Surety Companies

    Financial Institutions/Lenders

    Insurance agents

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    Construction Methods & Management

    CIEG 486-010

    Participants in the Construction Process

    12. Adjacent Owners and the Public At-Large

    Existing businesses, institutions, andresidences adjacent to the constructedfacility

    Civic organizations and communitygroups

    Railroads and public lands

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    Construction Methods & Management

    CIEG 486-010

    Project Delivery Organization

    Construction by owners forces

    Owner-managed construction

    Construction by general contractor

    Design-build team

    CM Contract

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    Construction Methods & Management

    CIEG 486-010

    Construction employing owner forces

    Usually small in-house construction or

    renovations Industrial projects or institutional (such as

    hospitals or schools

    Owner-managed construction Residential/commercial building developers

    Industrial or institutional

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    Construction Methods & Management

    CIEG 486-010

    Construction by General Contractor

    Also referred to as Prime Contractor

    Most common method of delivery Contractor bears substantial risks and

    financial responsibility

    Facility designed by in-housearchitect/engineer or by design consultants

    Often requires specialty subcontractors

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    Specialty contractors might include thosespecializing in one of the following:

    Excavation

    Steel erection

    Concrete Cast-in-place

    Prestressed/Precast

    Masonry

    Timber/wood framing

    Piping/plumbing

    Clearing and grubbing

    Blasting/demolition

    Electrical Painting

    HVAC

    Environmentalremediation

    Many, many others

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    Construction Methods & Management

    CIEG 486-010

    CM Contract -- Fee (management servicesonly) also referred to as Agency

    Specialized construction skills through all project stages

    including preconstruction Provides close coordination between design and

    construction

    Eliminates impact of conflicts of interest

    Independent and objective evaluation of costs,schedules, and performance

    Potential saving in time and cost

    Disadvantages include no risks associated with costsincrease

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    Construction Methods & Management

    CIEG 486-010

    CM ContractAt-Risk CM assumes financial risks similar to a GC

    CM manages all phases of the work withoutperforming any actual work tasks

    CMs only resources are management personnel

    Contractors/subcontractors have a direct contract

    privity with CM Contract form is often a negotiated guaranteed

    maximum price arrangement

    Disadvantages includes lack of impartiality

    C i M h d & M

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    Construction Methods & ManagementCIEG 486-010