Construction Industry and its Management Flashcards
Prof Duccio Turin definition of Construction
Need to consider its :
Output - What type of building
Process - The people involved
Characteristic
Brief 3
Determines requirements
Clients
Users
Land 3
Lawyers
Chartered Surveyors
Land Use
Design 3
Consultants - Arch, Eng, QS
Statutory Consent - Local Authority
Standards - Proff Institutions
Procurement 3
Purchasing goods/services
Contractual Arrangements
Tendering Process
Construction 3
Components, Plant, Labour, Capital
Sub/contractors
Standards/Building control/Safety
Occupation 4
Equipment
Fixtures/Fittings
IT
Furniture
Maintenance 1
Facility Management
Building Cycle
Where the circle leads back to Land
Brief, Design, Land, Procurement, Construction, Occupation, Maintenance
Characteristics of Construction
Buildings Expensive
Building process is large and complex
Fragmented Industry
How did the BuiEnv develop
Urbanisation, Building type, Standards/control, Management
Early Civilisation (3)
Relied on natural resources: Reeds, Trees, Leaves
Needed for Shelter and portable
Skills within the family
Roman Impact (3)
753 BC to 27 BC and 64 AD to 1453 AD
Sophisticated structures/infrastructure/towns
Build Mats, stone, concrete, bricks, tiles, decoration
Built largely by the Military
Dark Ages
Rural Farming focus around monasteries
Black Death 4m to 2.4m lack of tradesmen cost increase
17th, 18th, 19th Century
Wool Industry, Industrial buildings, Towns, large estates
Increased Building Demand/complexity
Formation of Bodies
Industrial Revolution
Wool/steam engine - Factories, mining, transport
Urban housing for rural-urban migration workers
Public sector buildings, gov/edu/health
Disease/hygiene problems led to gov planning/control
Number of listed buildings
500,000 England and Wales
Evolution of Management of Projects
Created split design/construction, fragmented design/main contractor has responsibility of delivery. Discontented results created the project manager
Medieval Period (4)
600-1500
12 trade guilds where tradesmen followed work
Design followed trade practices
Large Projects led by master tradesman or mason
Gothic Style (2)
Pointed Arch, Rib Vaulting (ceiling), Flying Butress
Enabled Slender, Higher, Complex structures
Renaissance Period (4)
1500-1600
Grand Tour, introduced to other European designs
Buildings influenced by crafts
Introduction of architect and contracting unit
Classical Period (4)
1600-1800
Architect established, designed and contracted to build
Emergence of Contractors
Christopher Wren and Inigo Jones
Victorian Period
1800-1900
Introduced Engineer
Institutionalisation of construction
Seperation fo design and build
20th Century (5)
Commercialisation of clients and buisness
Unique buildings not necessarily follow style
Functionalism of design
Demand for complex buildings
Increased Fragmentation
3 Factors evolving planning
Industrialisation
Urbanisation and population growth
Overcrowding and Disease
Town Planning
-Diff Disciplines: Public Health, Building control, Housing Management,
Town/Country Planning Asso 1899 Sir Ebenezer Howard
Letchworth/Welwyn
Drivers of Construction Demand (Macro) (3)
Economic Growth
Political/Economic Policy
Population Growth
Drivers of Construction Demand (Micro)
Business activity/investment
Response to society demands
Maintaining the building/building stock
Client
An individual or organisation that commissions the construction of a building
Factors effecting the Con. Industry
Nature of the demand
Diversity of types of project
Low barriers to entry/exit for firms
Manner of industry evolution
Manner of industry evolution
Seperation of design and construction and manner of work carried out.
Broad Definition of Construction
Manufacturers of building products, (equipment/ components), various professional services by architects, surveyors, engineers and property managers’
Narrow Definition of Construction
Estimating the activity of firms that construct and maintain buildings and infrastructure – that is, just those businesses that undertake on-site activities
Overview - Nature of Con. Industry (8)
Highly fragmented, involving many organisations/ parties, highly complex, high uncertainly, high levels of risk, proceeds in sequential stages, expensive, dangerous
Characteristics of Projects (6)
Uniqueness - Location and issies Clearly defined objectives - Time cost Quality Fixed timescale Team of people - Teamwork No practice or rehearsal Change
Impact of Large Projects
Creates employment
Impact environment
Cen/Loc Gov - Envi, Planning, Quality/workman standards
Product Life Cycle (PLC) (9)
Inception, Feasibility, Strategy, Pre Construction, Construction, Commissioning, Occupation, In-use, start
Consideration for each PLC Stage
Scope
Participants and their roles
Key activities and output
Scope Management
Defining what work is required and then making sure all of that work – and only that work – is done.
Input to Construction Process (7) Management
Need, Land, Labour, Materials, Plant, Information, Captial
Output of Construction Process (5) Management
Finished Building, Investment, Employment, Profit, Carbon Emissions
Fragmentation
Lots of parties involved although mostly for short periods of time in the process
Health and Safety
1 of the highest fall/fatality per 1000
Workers 2x likely, disabling injury than other industries
Health and Safety Statistics
5% of total employment
31% of total fatalities
10% of major/substantial injuries
Last 25 years 3,000 people have died
Overview - Management of Con. Industry
Over last 100 years the design & construction split and lack of manager has caused conflict and an adversarial culture. Introduction of PM a response to this problem.
Widening Procurement Options
Package Deal/Turnkey Management Contracting Design and build/design and develop Construction Management Contractor Fee not fixed Price, able influence design
CIOB PM Defintion Abbreviated
Overall planning, control and co-ordination of a project from inception to completion aimed at meeting a client’s requirements, ensuring completion on time, within cost and to required quality standards
Basic PM Functions (4)
Scope Management
Time Management
Quality Management
Cost Management
Integrative PM Functions (4)
Risk Management
HR Management
Communications Management
Contract/Procurement Management
What is PM About (4)
Achieving Objectives
Managing Groups
Knowledge of Technical Process
Analysis and Control
Qualities/Skills PM Need (4)
Develop/maintain team spirit
Organise and Lead
Right qualities of temperament
Maturity of judgement
Project Management Techniques (5)
Project Scope Planning and scheduling Financial Management Stakeholder Management Risk Management
3 Measures of Project Success
Project Functionality - Performance of final product
PM Effectiveness - Delivery in accordance to objectives
Participants Commercial Performance - Whether PT gained financially from their contribution.
Categories of Land Owners
Traditional - Church crown aristocracy Industrial - firm Financial - institution Developers - for profit Householders - home owners Conservation Charity - national parks
Value of Property Effected by (8)
Size/Quality Location Age Local Demand Availability of similar Property Local Transport Local amenities Value of similar properties
Development Appraisal
Compares Total Revenue with Total Cost of scheme
How much land/construction cost
Cost of borrowing
Project rental income/investment yield
Development Appraisal Variables (7)
Land Price Building Cost Project Cost Rental Income Interest Yields Investment Yields Time - Length uncertainty
Optimum Property Investor Position
A prime property
Good quality product
Long pre-let w/ blue-chip (does well in downturn) tenant
A fully repairing & insuring lease arrangement
Regular upward rent reviews
Current Major Issues in Con.
30% of projects still exceed their cost budget by 20% and 75% miss target completion by 10-15%.
Significant moves to change industry, w/ more single source arrangements + collaborative working.
Emerson Report (criticism of industry)
Emerson Report (1962) concerned with relationships in the building process – lack of liaison, separation of education of professionals,
Banwell Reports (criticism of industry)
Banwell Reports (1964 & 1967) concerned with project organisation
Higgins & Jessop Report (criticism of industry)
Higgins & Jessop Report (1965) identified the need to co-ordinate design & construction
First to suggest the overall co-ordination role
Drivers for Change in Con.
Quality driven agenda Commitment to people Committed leadership Focus on customer Product team integration
Improving the project process
Product development
Product implementation
Production of components
Partnering the supply chain
Tagets for improvement
Capital Cost - -10% Construction Time - -10% Defects - -20% Accidents - -20% Productivity - +10% Turnover/Profit - +10%
Egan Report
1998 30% of construction is reworked, Labour is only 40-60% efficient, 10% of materials are wasted, Accidents can account for 3-6% of total project costs
Change to Collaborative Culture
Integrated teams No blame culture Sharing ‘pain & gain’ Partnering Frameworks.
Project Management changes
Introduction of client-facing manager of overall process
Use of a PMgr now mandatory on public sector projects
Construction 2025
UK should be in 2025
- 33% in both initial cost and the whole life cost
- 50% inception-completion time new build/refurb asset
- 50% in greenhouse gas emissions inbuilt environment
- 50% trade gap all exports/imports for product/materials
Drivers of Con 2025 delivery
Improved image of the industry
Increased capability in the workforce
A clear view of future work opportunities
Improvement in client capability & procurement
A strong & resilient supply chain
Effective research & innovation
Types of Castles
Shell Keep - Round/Curtain Wall
Hall Keep - Large multi storey
High Curtain wall - Defence structure
Evolution of PM
Master tradesman PM
More commercialisation, control cost client QS
Architect taking over design
1800 split of architect and contractor
Design and construction kept drifting apart
Formation of professional bodies
Tudor
1485-1560 Non religious show off wealth Steep Roof Fireplaces Small Windows
Elizabethan / Jacobean
1560-1620 Large mansions for aristocracy Grand Tour Jetting / Dutch Gables More sophistication of housing
Planning Policy
Process of policy making, control and implementation.
Public health - Indust rev hygeine/disease
House Man - C’cil Housing, prevent mass cheap housing
Building COntrol - Important over time
Inception
Initial Stage Statement of objectives Environmental Mandate Approval of feasibility Appointment of PM
Feasibility
Establishing/reviewing options to achieve objectives
Understand client demands/appraising options
Financial viability
Client decision to proceed to strategy
Strategy
PM takes clients preferred options
Assembling the team
Establish infrastructure for managing/controlling project
Facility Management/Procurement strategy
Pre - Construction
Implement plans of strategy stage
Execution of design process, obtaining legal consent
Client approval with construction works
Construction
Facilities construction defined by design
Process involves greatest n.o of people/orgs/expenditure
Commissioning
Confirms building services systems are installed
Commission strategy/schedule
Training of client staff
Completion
Formal transfer of completed facilities
Single or phased over time
Ensure client has knowledge/capability to operate
Final inspections
Evo Man Project : Middle Ages
Client
Master Mason organises trade guilds
Measurer equate work to pay
Evo Man Project : 16th
Introduction of Architect
Functional specialists
Evo Man Project : 18th
Introduction of Engineers, QS, Main contractor
Subcontractors
QS - 2 Measurer Client+Contractor
Evo Man Project : 20th
Introduction of PM, design teams
Estimate Value of Property
Similar property
Comparative contractors - cost of construction
Residual method - future estimate
Investment - opportunity cost
High Net to Growth Ratio
Maximising floorspace to let out
Minimise circulation space
Latham Report
Need for better teamwork and co-operation
