Assignment #1

1. Define the meaning of the construction industry? How does this defer from
your own definition? Discuss and give details.
*Construction Industry is one of the most booming industries in the whole world. This
industry is mainly an urban based one which is concerned with preparation as well as
construction of real estate properties. The repairing of any existing building or making certain
alterations in the same also comes under Construction Industry.

2. In what particular scope of construction industry services will construction

project management be needed? Explain how this is so.

*In building construction because project management will be the person responsible for accomplishing
the project objectives. Key project management responsibilities include defining and communicating
project objectives that are clear, useful and attainable. Procuring the project requirements like
workforce, required information, various agreements and material or technology needed to accomplish
project objectives.

3. Describe some of your construction project management experience.

* My experience in construction project management is to managing the constraints of my project
management triangle, which are cost, time, scope and quality to finish the project.

4. Name at least three economic and three social contributions of the

construction industry to the economy? Define the importance of the construction
project manager in increasing the contributions of the construction industry to
the economy.
*Economic contributions of construction industry to the economy
1. Creation of wealth and jobs through property development the growth of buy-to-lets has
developed new businesses and created jobs in refurbishment and property maintenance.
2. Economic migration – a booming construction industry attracts workers from other
countries. This then allows more construction to take place.
3. New developments attract further commercial opportunities this brings further economic
wealth into an area after the initial development is complete.

*Social contributions of construction industry to the economy

1. Inner city regeneration of run-down areas – unsightly buildings are demolished and
replaced, regenerating an area and injecting new growth.
2. Reduction in pollution – the inclusion of alternative transport, trams, buses and light
railway networks reduces reliance on cars.
3. Affordable housing – planners now have to include this type of housing in any new
housing development. This allows people to own their own homes more easily.

5. What are some of the technical and managerial knowledge required of the
construction project managers to carry out their jobs? What are some of the skills

CM-650 Principles of Construction Management – Elton John Evangelista Page 1

needed by a construction project manager in vertical and horizontal
construction?
*Technical knowledge required of construction managers to carry out their job are planning,
schedules, construction management activities, basic technical knowledge and productivity and cost
control.
*Managerial knowledge required of construction managers to carry out their job are leadership,
delegation, negotiation, decision making, motivation, team working, time management and top
management relation.

6. Name at least five differences between a construction project manager

practicing in the Philippines and one who works abroad (e.g., Asia). Explain why
you think so.
*

CM-650 Principles of Construction Management – Elton John Evangelista Page 2

 Project manager
From Wikipedia, the free encyclopedia
US Navy 080111-N-8273J-033 Chief of Naval Operations (CNO) Adm. Gary Roughead (left) talks with project
managers

A project manager is a professional in the field of project management. Project managers have the
responsibility of the planning, procurement and execution of a project, in any undertaking that has a
defined scope, defined start and a defined finish; regardless of industry. Project managers are first
point of contact for any issues or discrepancies arising from within the heads of various departments
in an organization before the problem escalates to higher authorities. Project management is the
responsibility of a project manager. This individual seldom participates directly in the activities that
produce the end result, but rather strives to maintain the progress, mutual interaction and tasks of
various parties in such a way that reduces the risk of overall failure, maximizes benefits, and
minimizes costs.

Contents
[hide]

 1Overview
 2Project Management Key Topics
 3Types of Project Managers
o 3.1Construction Project Manager
o 3.2Architectural Project Manager
o 3.3Insurance Claim Project Manager
o 3.4Engineering Project Manager
o 3.5Software Project Manager/IT Project Manager
 4Responsibilities
 5See also

CM-650 Principles of Construction Management – Elton John Evangelista Page 3

 6References
 7Further reading

Overview[edit]
A project manager is the person responsible for accomplishing the project objectives. Key project
management responsibilities include

 defining and communicating project objectives that are clear, useful and attainable
 procuring the project requirements like workforce, required information, various agreements and
material or technology needed to accomplish project objectives
 managing the constraints of the project management triangle, which are cost, time, scope and
quality
A project manager is a client representative and has to determine and implement the exact needs of
the client, based on knowledge of the organization they are representing. An expertise is required in
the domain the Project Managers are working to efficiently handle all the aspects of the project. The
ability to adapt to the various internal procedures of the client and to form close links with the
nominated representatives, is essential in ensuring that the key issues of cost, time, quality and
above all, client satisfaction, can be realized.

Project Management Key Topics[edit]

 to specify the reason why a project is important
 to specify the quality of the deliverables
 resource estimate
 timescale
 Investment, corporate agreement and funding
 Implementation of management plan on to the project
 team building and motivation
 risk assessments and change in the project
 monitoring
 stakeholder management
 provider management
 closing the project.[1]
Project Tools
The tools, knowledge and techniques for managing projects are often unique to Project
Management. For example: work breakdown structures, critical path analysis and earned
value management. Understanding and applying the tools and techniques which are
generally recognized as good practices are not sufficient alone for effective project
management. Effective project management requires that the project manager understands
and uses the knowledge and skills from at least four areas of expertise. Examples
are PMBOK, Application Area Knowledge: standards and regulations set forth by ISO for
project management, General Management Skills and Project Environment
Management[2] There are also many options for project management software to assist in
executing projects for the project manager and his/her team.
Project Teams
When recruiting and building an effective team, the manager must consider not only the
technical skills of each person, but also the critical roles and chemistry between workers.
A project team has mainly three separate components: Project Manager, Core Team and
Contracted Team.

CM-650 Principles of Construction Management – Elton John Evangelista Page 4

 Risk
Most of the project management issues that influence a project arise from risk, which in turn
arises from uncertainty. The successful project manager focuses on this as his/her main
concern and attempts to reduce risk significantly, often by adhering to a policy of open
communication, ensuring that project participants can voice their opinions and concerns.

Types of Project Managers[edit]

Construction Project Manager[edit]
Until recently, the American construction industry lacked any level of standardization,
with individual States determining the eligibility requirements within their jurisdiction.
However, several Trade associations based in the United States have made strides in
creating a commonly accepted set of qualifications and tests to determine a project
manager's competency.

 The Construction Management Association of America (CMAA) maintains the

Certified Construction Manager (CCM) designation. The purpose of the CCM is to
standardize the education, experience and professional understanding needed to
practice construction management at the highest level.
 The Project Management Institute has made some headway into being a
standardizing body with its creation of the Project Management Professional (PMP)
designation.
 The Constructor Certification Commission of the American Institute of
Constructors holds semiannual nationwide tests. Eight American Construction
Management programs require that students take these exams before they may
receive their Bachelor of Science in Construction Management degree, and 15 other
Universities actively encourage their students to consider the exams.
 The Associated Colleges of Construction Education, and the Associated Schools of
Construction have made considerable progress in developing national standards for
construction education programs.
The profession has recently grown to accommodate several dozen Construction
Management Bachelor of Science programs. Many universities have also begun offering
a master's degree in Project Management. These programs generally are tailored to
working professionals who have project management experience or project related
experience; they provide a more intense and in depth education surrounding the
knowledge areas within the project management body of knowledge.
The United States Navy construction battalions, nicknamed the SeaBees, puts their
command through strenuous training and certifications at every level. To become
a Chief Petty Officer in the SeaBees is equivalent to a BS in Construction Management
with the added benefit of several years of experience to their credit. See ACE
accreditation.
Architectural Project Manager[edit]
Architectural project manager are project managers in the field of architecture. They
have many of the same skills as their counterpart in the construction industry. And will
often work closely with the construction project manager in the office of the General
Contractor (GC), and at the same time, coordinate the work of the design team and
numerous consultants who contribute to a construction project, and manage
communication with the client. The issues of budget, scheduling, and quality-control are
the responsibility of the Project Manager in an architect's office.

CM-650 Principles of Construction Management – Elton John Evangelista Page 5

 Insurance Claim Project Manager[edit]
In the insurance industry project managers often oversee and manage the restoration of
a clients home/office after a fire, flood. Covering the fields from electronics through to
the demolition and constructions contractors.
Engineering Project Manager[edit]
In Engineering project management is the term used to describe the task of seeing a
product/device through the stages of R&D/design to manufacturing stages. Working with
various professionals in different fields of engineering and manufacturing to go from
concept to finished product. Optionally, this can include different versions and standards
as required by different countries. Requiring knowledge of laws, requirements and
infrastructure. Things like electrical voltages often change from country to country.
Software Project Manager/IT Project Manager[edit]
A Software Project Manager has many of the same skills as their counterparts in other
industries. Beyond the skills normally associated with traditional project management in
industries such as construction and manufacturing, a software project manager will
typically have an extensive background in software development. Many software project
managers hold a degree in Computer Science, Information Technology, Management of
Information Systems or another related field.
In traditional project management a heavyweight, predictive methodology such as
the waterfall model is often employed, but software project managers must also be
skilled in more lightweight, adaptive methodologies such as DSDM, Scrum and XP.
These project management methodologies are based on the uncertainty of developing a
new software system and advocate smaller, incremental development cycles. These
incremental or iterative cycles are time boxed (constrained to a known period of time,
typically from one to four weeks) and produce a working subset of the entire system
deliverable at the end of each iteration. The increasing adoption of lightweight
approaches is due largely to the fact that software requirements are very susceptible to
change, and it is extremely difficult to illuminate all the potential requirements in a single
project phase before the software development commences.
The software project manager is also expected to be familiar with the Software
Development Life Cycle (SDLC). This may require in depth knowledge of requirements
solicitation, application development, logical and physical database design and
networking. This knowledge is typically the result of the aforementioned education and
experience. There is not a widely accepted certification for software project managers,
but many will hold the Project Management Professional (PMP) designation offered by
the Project Management Institute, PRINCE2 or an advanced degree in project
management, such as a MSPM or other graduate degree in technology management.

Responsibilities[edit]
The Project Manager is accountable for ensuring that everyone on the team knows and
executes his or her role, feels empowered and supported in the role, knows the roles of
the other team members and acts upon the belief that those roles will be
performed.[3] The specific responsibilities of the Project Manager may vary depending on
the industry, the company size, the company maturity, and the company culture.
However, there are some responsibilities that are common to all Project Managers,
noting:[4]

 Developing the project plans

CM-650 Principles of Construction Management – Elton John Evangelista Page 6

  Managing the project stakeholders
 Managing communication
 Managing the project team
 Managing the project risk
 Managing the project schedule
 Managing the project budget
 Managing the project conflicts
 Managing the project delivery

Construction management
From Wikipedia, the free encyclopedia
(Redirected from Construction manager)

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Construction Project Management (CM) is a professional service that uses specialized, project
management techniques to oversee the planning, design, and construction of a project, from its
beginning to its end. The purpose of CM is to control a project's time, cost and quality.[1] CM is
compatible with all project delivery systems,[2] including design-bid-build, design-build, CM At-Risk
and Public Private Partnerships. Professional construction managers may be reserved for lengthy,
large-scale, high budget undertakings (commercial real estate, transportation infrastructure,
industrial facilities, and military infrastructure), called capital projects.

Contents
[hide]

 1The role of a contractor

 2Function
 3Seven types of construction
 4Obtaining the project
o 4.1Bids
o 4.2Selection methods
o 4.3Payment contracts
 5Project stages
o 5.1Design
o 5.2Pre-construction

CM-650 Principles of Construction Management – Elton John Evangelista Page 7

 o 5.3Procurement
o 5.4Construction
o 5.5Owner occupancy
 6Issues resulting from construction
o 6.1Dust and mud
o 6.2Environmental protections
 7Construction activity documentation
 8Resolving disputes
 9Study and practice
 10Software
 11Required knowledge
 12Business model
o 12.1Design, bid, build contracts
o 12.2Design-build contracts
o 12.3Planning and scheduling
o 12.4Architecture–engineer
o 12.5Agency CM
o 12.6CM at-risk
 12.6.1Advantages
 12.6.2Drawbacks
 12.6.3Bottom Line
o 12.7Accelerated construction techniques
 13See also
 14References
 15Further reading

The role of a contractor[edit]

Contractors are assigned to a construction project during the design or once the design has been
completed by a licensed architect. This is done by going through a bidding process with different
contractors. The contractor is selected by using one of three common selection methods: low-bid
selection, best-value selection, or qualifications-based selection.
A construction manager should have the ability to handle public safety, time management, cost
management, quality management, decision making, mathematics, working drawings, and human
resources.[3]

Function[edit]
The functions of construction management typically include the following:

1. Specifying project objectives and plans including delineation of scope, budgeting,

scheduling, setting performance requirements, and selecting project participants.
2. Maximizing the resource efficiency through procurement of labor, materials and equipment.
3. Implementing various operations through proper coordination and control of planning,
design, estimating, contracting and construction in the entire process.
4. Developing effective communications and mechanisms for resolving conflicts.:[4]
The Construction Management Association of America (CMAA) states the most common
responsibilities of a Construction Manager fall into the following 7 categories: Project Management
Planning, Cost Management, Time Management, Quality Management, Contract Administration,
Safety Management, and CM Professional Practice. CM professional practice includes specific

CM-650 Principles of Construction Management – Elton John Evangelista Page 8

activities, such as defining the responsibilities and management structure of the project management
team, organizing and leading by implementing project controls, defining roles and responsibilities,
developing communication protocols, and identifying elements of project design and construction
likely to give rise to disputes and claims.[5]

Seven types of construction[edit]

 Agricultural: Typically economical buildings, and other improvements, for agricultural purposes.
Examples include barns, equipment and animal sheds, specialized fencing,
storage silos and elevators, and water supply and drains such as wells, tanks, and ditches.
 Residential: Residential construction includes houses, apartments, townhouses, and other
smaller, low-rise housing, small office types.[3]
 Commercial: This refers to construction for the needs of private commerce, trade, and services.
Examples include office buildings, "big box" stores, shopping centers and malls, warehouses,
banks, theaters, casinos, resorts, golf courses, and larger residential structures such as high-rise
hotels and condominiums.
 Institutional: This category is for the needs of government and other public organizations.
Examples include schools, fire and police stations, libraries, museums, dormitories, research
buildings, hospitals, transportation terminals, some military facilities, and governmental
buildings.
 Industrial: Buildings and other constructed items used for storage and product production,
including chemical and power plants, steel mills, oil refineries and platforms, manufacturing
plants, pipelines, and seaports.
 Heavy civil: The construction of transportation infrastructure such as roads, bridges, railroads,
tunnels, airports, and fortified military facilities.[3] Dams are also included, but most other water-
related infrastructure is considered environmental.
 Environmental: Environmental construction was part of heavy civil, but is now separate, dealing
with projects that improve the environment. Some examples are water and wastewater treatment
plants, sanitary and storm sewers, solid waste management, and air pollution control.[3]

Obtaining the project[edit]

Bids[edit]
A bid is given to the owner by construction managers that are willing to complete their construction
project. A bid tells the owner how much money they should expect to pay the construction
management company in order for them to complete the project.[3]

 Open bid: An open bid is used for public projects. Any and all contractors are allowed to submit
their bid due to public advertising.
 Closed bid: A closed bid is used for private projects. A selection of contractors are sent an
invitation for bid so only they can submit a bid for the specified project.[3]
Selection methods[edit]

 Low-bid selection: This selection focuses on the price of a project. Multiple construction
management companies submit a bid to the owner that is the lowest amount they are willing to
do the job for. Then the owner usually chooses the company with the lowest bid to complete the
job for them.[3]
 Best-value selection: This selection focuses on both the price and qualifications of the
contractors submitting bids. This means that the owner chooses the contractor with the best
price and the best qualifications. The owner decides by using a request for proposal (RFP),

CM-650 Principles of Construction Management – Elton John Evangelista Page 9

 which provides the owner with the contractor's exact form of scheduling and budgeting that the
contractor expects to use for the project.[3]
 Qualifications-based selection: This selection is used when the owner decides to choose the
contractor only on the basis of their qualifications. The owner then uses a request for
qualifications (RFQ), which provides the owner with the contractor's experience, management
plans, project organization, and budget and schedule performance. The owner may also ask for
safety records and individual credentials of their members.[3] This method is most often used
when the contractor is hired early during the design process so that the contractor can provide
input and cost estimates as the design develops.
Payment contracts[edit]

 Lump sum: This is the most common type of contract. The construction manager and the owner
agree on the overall cost of the construction project and the owner is responsible for paying that
amount whether the construction project exceeds or falls below the agreed price of payment.[3]
 Cost plus fee: This contract provides payment for the contractor including the total cost of the
project as well as a fixed fee or percentage of the total cost. This contract is beneficial to the
contractor since any additional costs will be paid for, even though they were unexpected for the
owner.[3]
 Guaranteed maximum price: This contract is the same as the cost-plus-fee contract although
there is a set price that the overall cost and fee do not go above.[3]
 Unitprice: This contract is used when the cost cannot be determined ahead of time. The owner
provides materials with a specific unit price to limit spending.[3]

Project stages[edit]
Design[edit]
The design stage involves four steps: programming and feasibility, schematic design, design
development, and contract documents. It is the responsibility of the design team to ensure that the
design meets all building codes and regulations. It is during the design stage that the bidding
process takes place.[3]

 Conceptual/Programming and feasibility: The needs, goals, and objectives must be

determined for the building. Decisions must be made on the building size, number of rooms, how
the space will be used, and who will be using the space. This must all be considered to begin
the actual designing of the building. This phase is normally a written list of each room or space,
the critical information about those spaces, and the approximate square footage of each area.
 Schematic design: Schematic designs are sketches used to identify spaces, shapes, and
patterns. Materials, sizes, colors, and textures must be considered in the sketches.[3] This phase
usually involves developing the floor plan, elevations, a site plan, and possibly a few details.
 Design development (DD): This step requires research and investigation into what materials
and equipment will be used as well as their cost. During this phase, the drawings are refined
with information from structural, plumbing, mechanical, and electrical engineers. It also involves
a more rigorous evaluation how the applicable building codes will impact the project.
 Contract documents (CDs): Contract documents are the final drawings and specifications of
the construction project. They are used by contractors to determine their bid while builders use
them for the construction process. Contract documents can also be called working drawings.[3]
Pre-construction[edit]
The pre-construction stage begins when the owner gives a notice to proceed to the contractor that
they have chosen through the bidding process. A notice to proceed is when the owner gives
permission to the contractor to begin their work on the project. The first step is to assign the project

CM-650 Principles of Construction Management – Elton John Evangelista Page 10

team which includes the project manager (PM), contract administrator, superintendent, and field
engineer.[3]

 Project manager: The project manager is in charge of the project team.

 Contract administrator: The contract administrator assists the project manager as well as the
superintendent with the details of the construction contract.
 Superintendent: It is the superintendent's job to make sure everything is on schedule including
flow of materials, deliveries, and equipment. They are also in charge of coordinating on-site
construction activities.[3]
 Field engineer: A field engineer is considered an entry-level position and is responsible for
paperwork.
During the pre-construction stage, a site investigation must take place. A site investigation takes
place to discover if any steps need to be implemented on the job site. This is in order to get the site
ready before the actual construction begins. This also includes any unforeseen conditions such as
historical artifacts or environment problems. A soil test must be done to determine if the soil is in
good condition to be built upon.[3]
Procurement[edit]
The procurement stage is when labor, materials and equipment needed to complete the project are
purchased. This can be done by the general contractor if the company does all their own
construction work. If the contractor does not do their own work, they obtain it through subcontractors.
Subcontractors are contractors who specialize in one particular aspect of the construction work such
as concrete, welding, glass, or carpentry. Subcontractors are hired the same way a general
contractor would be, which is through the bidding process. Purchase orders are also part of the
procurement stage.[3]

 Purchase orders: A purchase order is used in various types of businesses. In this case, a
purchase order is an agreement between a buyer and seller that the products purchased meet
the required specifications for the agreed price.[3]
Construction[edit]
The construction stage begins with a pre-construction meeting brought together by the
superintendent. The pre-construction meeting is meant to make decisions dealing with work hours,
material storage, quality control, and site access. The next step is to move everything onto the
construction site and set it all up.[3]
A Contractor progress payment schedule is a schedule of when (according to project milestones
or specified dates) contractors and suppliers will be paid for the current progress of installed work.
Progress payments are partial payments for work completed during a portion, usually a month,
during a construction period. Progress payments are made to general contractors, subcontractors,
and suppliers as construction projects progress. Payments are typically made on a monthly basis but
could be modified to meet certain milestones. Progress payments are an important part of contract
administration for the contractor. Proper preparation of the information necessary for payment
processing can help the contractor financially complete the project. [6]
Owner occupancy[edit]
Once the owner moves into the building, a warranty period begins. This is to ensure that all
materials, equipment, and quality meet the expectations of the owner that are included within the
contract.[3]

Issues resulting from construction[edit]

CM-650 Principles of Construction Management – Elton John Evangelista Page 11
Dust and mud[edit]
When construction vehicles are driving around a site or moving earth, a lot of dust is created,
especially during the dryer months. This may cause disruption for surrounding businesses or homes.
A popular method of dust control is to have a water truck driving through the site spraying water on
the dry dirt to minimize the movement of dust within and out of the construction site. When water is
introduced mud is created. This mud sticks to the tires of the construction vehicles and is often lead
out to the surrounding roads. A street sweeper may clean the roads to reduce dirty road conditions.
Environmental protections[edit]

 Storm water pollution: As a result of construction, the soil is displaced from its original location
which can possibly cause environmental problems in the future. Runoff can occur during storms
which can possibly transfer harmful pollutants through the soil to rivers, lakes, wetlands, and
coastal waters.
 Endangered species: If endangered species have been found on the construction site, the site
must be shut down for some time. The construction site must be shut down for as long as it
takes for authorities to make a decision on the situation. Once the situation has been assessed,
the contractor makes the appropriate accommodations to not disturb the species.
 Vegetation: There may often be particular trees or other vegetation that must be protected on
the job site. This may require fences or security tape to warn builders that they must not be
harmed.
 Wetlands: The contractor must make accommodations so that erosion and water flow are not
affected by construction. Any liquid spills must be maintained due to contaminants that may
enter the wetland.
 Historical or cultural artifacts: Artifacts may include arrowheads, pottery shards, and bones.
All work comes to a halt if any artifacts are found and will not resume until they can be properly
examined and removed from the area.[3]

Construction activity documentation[edit]

Project meetings take place at scheduled intervals to discuss the progress on the construction site
and any concerns or issues. The discussion and any decisions made at the meeting must be
documented.[3]
Diaries, logs, and daily field reports keep track of the daily activities on a job site each day.

 Diaries: Each member of the project team is expected to keep a project diary. The diary
contains summaries of the day's events in the member's own words. They are used to keep
track of any daily work activity, conversations, observations, or any other relevant information
regarding the construction activities. Diaries can be referred to when disputes arise and a diary
happens to contain information connected with the disagreement. Diaries that are handwritten
can be used as evidence in court.
 Logs: Logs keep track of the regular activities on the job site such as phone logs, transmittal
logs, delivery logs, and RFI (Request for Information) logs.
 Daily field reports: Daily field reports are a more formal way of recording information on the job
site. They contain information that includes the day's activities, temperature and weather
conditions, delivered equipment or materials, visitors on the site, and equipment used that day.[3]
Labor statements are required on a daily basis. Also list of Labor, PERT CPM are needed for labor
planning to complete a project in time.

Resolving disputes[edit]
CM-650 Principles of Construction Management – Elton John Evangelista Page 12
 Mediation: Mediation uses a third party mediator to resolve any disputes. The mediator helps
both disputing parties to come to a mutual agreement. This process ensures that no attorneys
become involved in the dispute and is less time-consuming.
 Minitrial: A minitrial takes more time and money than a mediation. The minitrial takes place in
an informal setting and involves some type of advisor or attorney that must be paid. The
disputing parties may come to an agreement or the third party advisor may offer their advice.
The agreement is nonbinding and can be broken.
 Arbitration: Arbitration is the most costly and time-consuming way to resolve a dispute. Each
party is represented by an attorney while witnesses and evidence are presented. Once all
information is provided on the issue, the arbitrator makes a ruling which provides the final
decision. The arbitrator provides the final decision on what must be done and it is a binding
agreement between each of the disputing parties.[3]

Study and practice[edit]

Construction Management education comes in a variety of formats: formal degree programs (Two-
year associate degree; four-year baccalaureate degree, masters degree, project
management, operations management engineer degree, doctor of philosophy degree, postdoctoral
researcher); on-the-job-training; and continuing education and professional development.
Information on degree programs is available from ABET, the American Council for Construction
Education (ACCE), the Construction Management Association of America (CMAA) or the Associated
Schools of Construction (ASC).
According to the American Council for Construction Education (one of the academic accreditation
agencies responsible for accrediting construction management programs in the U.S.), the academic
field of construction management encompasses a wide range of topics. These range from general
management skills, through management skills specifically related to construction, to technical
knowledge of construction methods and practices. There are many schools offering Construction
Management programs, including some offering a master's degree.[7][8]

Software[edit]
Capital project management software (CPMS) refers to the systems that are currently available that
help capital project owner/operators, program managers, and construction managers, control and
manage the vast amount of information that capital construction projects create. A collection, or
portfolio of projects only makes this a bigger challenge. These systems go by different names:
capital project management software, computer construction software, construction management
software, project management information systems. Usually Construction Management can be
referred as subset of CPMS where the scope of CPMS is not limited to construction phases of
project. Among main construction management software can be mentioned Procore and PlanGrid.

Required knowledge[edit]
 Construction and building
 Technology
 Public safety
 Customer service
 Human resources
 Mathematics

Business model[edit]

CM-650 Principles of Construction Management – Elton John Evangelista Page 13

Skyscrapers under construction in Panama City, Panama

The construction industry typically includes three parties: an owner, a licensed designer
(architect or engineer) and a builder (usually known as a general contractor). There are traditionally
two contracts between these parties as they work together to plan, design and construct the
project.[9] The first contract is the owner-designer contract, which involves planning, design, and
construction contract administration. The second contract is the owner-contractor contract, which
involves construction. An indirect third-party relationship exists between the designer and the
contractor, due to these two contracts.
An owner may also contract with a construction project management company as an adviser,
creating a third contract relationship in the project. The construction manager's role is to provide
construction advice to the designer, design advice to the constructor on the owner's behalf and other
advice as necessary.
Design, bid, build contracts[edit]
Main article: Design–bid–build
The phrase "design, bid, build" describes the prevailing model of construction management, in which
the general contractor is engaged through a tender process after designs have been completed by
the architect or engineer.
Design-build contracts[edit]
Main article: Design–build
Many owners – particularly government agencies – let out contracts known as design-build
contracts. In this type of contract, the construction team (known as the design-builder) is responsible
for taking the owner's concept and completing a detailed design before (following the owner's
approval of the design) proceeding with construction. Virtual design and construction technology
may be used by contractors to maintain a tight construction time.
There are three main advantages to a design-build contract. First, the construction team is motivated
to work with the architect to develop a practical design. The team can find creative ways to reduce
construction costs without reducing the function of the final product. The second major advantage
involves the schedule. Many projects are commissioned within a tight time frame. Under a traditional
contract, construction cannot begin until after the design is finished and the project has been
awarded to a bidder. In a design-build contract the contractor is established at the outset, and

CM-650 Principles of Construction Management – Elton John Evangelista Page 14

construction activities can proceed concurrently with the design. The third major advantage is that
the design-build contractor has an incentive to keep the combined design and construction costs
within the owner's budget. If speed is important, design and construction contracts can be awarded
separately; bidding takes place on preliminary plans in a not-to-exceed contract instead of a single,
firm design-build contract.
The major problem[10] with design-build contracts is an inherent conflict of interest. In a standard
contract the architect works for the owner and is directly responsible to the owner. In design-build
the architect works for the design-builder, not the owner, therefor the design-builder may make
design and construction decisions that benefit the design-builder, but that do not benefit the owner.
During construction, the architect normally acts as the owner's representative. This includes
reviewing the builder's work and ensuring that the products and methods meet specifications and
codes. The architect's role is compromised when the architect works for the design-builder and not
for the owner directly. Thus, the owner may get a building that is over-designed to increase profits
for the design-builder, or a building built with lesser-quality products to maximize profits.
Planning and scheduling[edit]
Project-management methodology is as follows:

 Work breakdown structure

 Project network of activities
 Critical path method (CPM)
 Resource management
 Resource leveling
 Risk assessment
Architecture–engineer[edit]

 Work inspection
 Change orders
 Review payments
 Materials and samples
 Shop drawings
 Three-dimensional image
Agency CM[edit]
Construction cost management is a fee-based service in which the construction manager (CM) is
responsible exclusively to the owner, acting in the owner's interests at every stage of the project.
The construction manager offers impartial advice on matters such as:

 Optimum use of available funds

 Control of the scope of the work
 Project scheduling
 Optimum use of design and construction firms' skills and talents
 Avoidance of delays, changes and disputes
 Enhancing project design and construction quality
 Optimum flexibility in contracting and procurement
 Cash-flow management
Comprehensive management of every stage of the project, beginning with the original concept and
project definition, yields the greatest benefit to owners. As time progresses beyond the pre-design
phase, the CM's ability to effect cost savings diminishes. The agency CM can represent the owner

CM-650 Principles of Construction Management – Elton John Evangelista Page 15

by helping select the design and construction teams and managing the design (preventing scope
creep), helping the owner stay within a predetermined budget with value engineering, cost-benefit
analysis and best-value comparisons. The software-application field of construction collaboration
technology has been developed to apply information technology to construction management.
CM at-risk[edit]
CM at-risk is a delivery method which entails a commitment by the construction manager to deliver
the project within a Guaranteed Maximum Price (GMP). The construction manager acts as a
consultant to the owner in the development and design phases (preconstruction services), and as a
general contractor during construction. When a construction manager is bound to a GMP, the
fundamental character of the relationship is changed. In addition to acting in the owner's interest, the
construction manager must control construction costs to stay within the GMP.
CM at-risk is a global term referring to the business relationship of a construction contractor, owner
and architect (or designer). Typically, a CM at-risk arrangement eliminates a "low-bid" construction
project. A GMP agreement is a typical part of the CM-and-owner agreement (comparable to a "low-
bid" contract), but with adjustments in responsibility for the CM. The advantage of a CM at-risk
arrangement is budget management. Before a project's design is completed (six to eighteen months
of coordination between designer and owner), the CM is involved with estimating the cost of
constructing a project based on the goals of the designer and owner (design concept) and the
project's scope. In balancing the costs, schedule, quality and scope of the project, the design may be
modified instead of redesigned; if the owner decides to expand the project, adjustments can be
made before pricing. To manage the budget before design is complete and construction crews
mobilized, the CM conducts site management and purchases major items to efficiently manage time
and cost.[11]
Advantages[edit]

 CM is working "at risk", therefore have incentive to act in the owner's interest, as well as to
efficiently manage construction costs, considering they would be liable for any amount in excess
of the GMP
 Ability to handle changes in design or scope[12]
Drawbacks[edit]

 If a cost overrun occurred, it could cost the CM a great deal of money

 The CM is allowed some mistake-related contingency, therefore there is a possibility that they
will compensate by reducing the scope of the work to fit the GMP
 Since the GMP is settled before design begins, it is difficult for owners to know whether they
received the best possible bid[11]
Bottom Line[edit]
An At-Risk delivery method is best for large projects—both complete construction and renovation—
that are not easy to define, have a possibility of changing in scope, or have strict schedule
deadlines. Additionally, it is an efficient method in projects containing technical complexity, multi-
trade coordination, or multiple phases.[12]
Accelerated construction techniques[edit]
Starting with its Accelerated Bridge Program in the late 2000s, the Massachusetts Department of
Transportation began employing accelerated construction techniques, in which it signs contracts with
incentives for early completion and penalties for late completion, and uses intense construction
during longer periods of complete closure to shorten the overall project duration and reduce cost.[13]

CM-650 Principles of Construction Management – Elton John Evangelista Page 16

Construction
From Wikipedia, the free encyclopedia
For other uses, see Construction (disambiguation).
"Construction site" redirects here. For the TV series, see Construction Site (television series).

In large construction projects, such as this skyscraper in Melbourne, Australia, cranes are essential.

Construction site and equipment prepared for start of work in Cologne, Germany (2017)

Construction is the process of constructing a building or infrastructure.[1] Construction differs

from manufacturing in that manufacturing typically involves mass production of similar items without
a designated purchaser, while construction typically takes place on location for a known
client.[2] Construction as an industry comprises six to nine percent of the gross domestic

CM-650 Principles of Construction Management – Elton John Evangelista Page 17

 product of developed countries.[3] Construction starts with planning, design, and financing; it
continues until the project is built and ready for use.
Large-scale construction requires collaboration across multiple disciplines. A project
manager normally manages the job, and a construction manager, design engineer, construction
engineer or architect supervises it. Those involved with the design and execution must consider
zoning requirements, environmental impact of the job, scheduling, budgeting, construction-site
safety, availability and transportation of building materials, logistics, inconvenience to the public
caused by construction delays and bidding. Large construction projects are sometimes referred to
as megaprojects.

Contents
[hide]

 1Etymology
 2Types of construction
o 2.1Industry sectors
o 2.2Building construction
o 2.3Residential construction
o 2.4New construction techniques and sustainability
 3Construction processes
o 3.1Design team
o 3.2Financial advisors
o 3.3Legal aspects
o 3.4Interaction of expertise
o 3.5Procurement
 3.5.1Traditional
 3.5.2Design-build
 3.5.3Management procurement systems
 4Authority having jurisdiction
 5Industry characteristics
o 5.1Careers
 6Safety
 7History
 8List of countries by the largest output in construction
 9See also
 10References

Etymology[edit]
Construction is a general term meaning the art and science to form objects, systems, or
organizations,[4] and comes from Latin constructionem (from com- "together" and struere "to pile up")
and Old French construction.[5]Construction is used as a verb: the act of building, and a noun: how a
building was built, the nature of its structure.

Types of construction[edit]

CM-650 Principles of Construction Management – Elton John Evangelista Page 18

Industrial assemblage of a thermal oxidizer in the United States of America.

Military residential unit construction by U.S. Navy personnel in Afghanistan

In general, there are three sectors of construction: buildings, infrastructure and industrial.[6] Building
construction is usually further divided into residential and non-residential (commercial/institutional).
Infrastructure is often called heavy civil or heavy engineering that includes large public works, dams,
bridges, highways, railways, water or wastewater and utility distribution. Industrial construction
includes refineries, process chemical, power generation, mills and manufacturing plants. There are
also other ways to break the industry into sectors or markets.[7]
Industry sectors[edit]
Engineering News-Record (ENR), a trade magazine for the construction industry, each year
compiles and reports data about the size of design and construction companies. In 2014, ENR
compiled the data in nine market segments divided as transportation, petroleum, buildings, power,
industrial, water, manufacturing, sewer/waste, telecom, hazardous waste and a tenth category for
other projects.[8] In their reporting, they used data on transportation, sewer, hazardous waste and
water to rank firms as heavy contractors.[9]
The Standard Industrial Classification and the newer North American Industry Classification
System have a classification system for companies that perform or engage in construction. To
recognize the differences of companies in this sector, it is divided into three subsectors: building
construction, heavy and civil engineering construction, and specialty trade contractors. There are
also categories for construction service firms (e.g., engineering, architecture) and construction
managers (firms engaged in managing construction projects without assuming direct financial
responsibility for completion of the construction project).[10][11]
Building construction[edit]
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2017) (Learn how and when to remove this template message)

Building construction is the process of adding structure to real property or construction of buildings.
The majority of building construction jobs are small renovations, such as addition of a room, or
renovation of a bathroom.[12] Often, the owner of the property acts as laborer, paymaster, and design
team for the entire project.[13] Although building construction projects consist of common elements
such as design, financial, estimating and legal considerations, projects of varying sizes may reach
undesirable end results, such as structural collapse, cost overruns, and/or litigation. For this reason,
those with experience in the field make detailed plans and maintain careful oversight during the
project to ensure a positive outcome.

CM-650 Principles of Construction Management – Elton John Evangelista Page 19

The National Cement Share Company of Ethiopia's new plant in Dire Dawa.

Commercial building construction is procured privately or publicly utilizing various delivery

methodologies, including cost estimating, hard bid, negotiated price, traditional, management
contracting, construction management-at-risk, design & build and design-build bridging.
Residential construction practices, technologies, and resources must conform to local building
authority regulations and codes of practice. Materials readily available in the area generally dictate
the construction materials used (e.g. brick versus stone, versus timber). Cost of construction on a
per square meter (or per square foot) basis for houses can vary dramatically based on site
conditions, local regulations, economies of scale (custom designed homes are often more expensive
to build) and the availability of skilled tradesmen. Residential construction as well as other types of
construction can generate waste such that planning is required.
According to McKinsey research, productivity growth per worker in construction has lagged behind
many other industries across different countries including in the United States and in European
countries. In the United States, construction productivity per worker has declined by half since the
1960s.[14]

Framing

Residential construction[edit]
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CM-650 Principles of Construction Management – Elton John Evangelista Page 20

The most popular method of residential construction in North America is wood-framed construction.
Typical construction steps for a single-family or small multi-family house are:

 Obtain an engineered soil test of lot where construction is planned

 Develop floor plans and obtain a materials list for estimations (more recently performed
with estimating software)
 Obtain structural engineered plans for foundation (soil test report obtained earlier will be used by
engineer to design foundation), floor plan, floor (if two story).
 Obtain lot survey
 Obtain government building approval if necessary
 If required obtain approval from HOA (homeowners association) or ARC (architectural review
committee)
 Clear the building site (demolition of existing home if necessary)
 Survey to stake out for the foundation
 Excavate the foundation and dig footers (Scope of work is dependent of foundation designed by
engineer)
 Install plumbing grounds
 Pour a foundation and footers with concrete
 Build the main load-bearing structure out of thick pieces of wood and possibly metal I-beams for
large spans with few supports. See framing (construction)
 Add floor and ceiling joists and install subfloor panels
 Cover outer walls and roof in OSB or plywood and a water-resistive barrier.
 Install roof shingles or other covering for flat roof
 Cover the walls with siding, typically vinyl, wood, or brick veneer but possibly stone or other
materials
 Install windows
 Frame interior walls with wooden 2x4s
 Add internal plumbing, HVAC, electrical, and natural gas utilities
 Building inspector visits if necessary to approve utilities and framing
 Install insulation and interior drywall panels (cementboard for wet areas) and to complete walls
and ceilings
 Install bathroom fixtures
 Spackle, prime, and paint interior walls and ceilings
 Additional tiling on top of cementboard for wet areas, such as the bathroom and kitchen
backsplash
 Installation of final floor covering, such as floor tile, carpet, or wood flooring
 Installation of major appliances
 Unless the original owners are building the house, at this point it is typically sold or rented.
New construction techniques and sustainability[edit]
The development of efficiency codes has prompted the development of new construction
technologies and methods, many pioneered by academic departments of construction management
that seek to improve efficiency and performance while reducing construction waste.
New techniques of building construction are being researched, made possible by advances in 3D
printing technology. In a form of additive building construction, similar to the additive
manufacturing techniques for manufactured parts, building printing is making it possible to flexibly
construct small commercial buildings and private habitations in around 20 hours, with built-in
plumbing and electrical facilities, in one continuous build, using large 3D printers.[15] Working versions
of 3D-printing building technology are already printing 2 metres (6 ft 7 in) of building material per

CM-650 Principles of Construction Management – Elton John Evangelista Page 21

hour as of January 2013, with the next-generation printers capable of 3.5 metres (11 ft) per hour,
sufficient to complete a building in a week.[16] Dutch architect Janjaap Ruijssenaars's performative
architecture 3D-printed building was scheduled to be built in 2014.[17]
In the current trend of sustainable construction, the recent movements of New Urbanism and New
Classical Architecture promote a sustainable approach towards construction, that appreciates and
develops smart growth, architectural tradition and classical design.[18][19]This is in contrast
to modernist and short-lived globally uniform architecture, as well as opposing solitary housing
estates and suburban sprawl.[20] Both trends started in the 1980s.
Wood is being introduced as a realistic material for skyscrapers (nicknamed "plyscrapers") thanks to
new developments in super-strong engineered timber, whose collective name is "mass timber" and
includes cross-laminated timber.[21]

Construction processes[edit]

Shasta Dam under construction in June 1942

Design team[edit]
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section by adding citations to reliable sources. Unsourced material
may be challenged and removed. (June 2017)(Learn how and when to
remove this template message)

In the industrialized world, construction usually involves the translation of designs into reality. A
formal design team may be assembled to plan the physical proceedings, and to integrate those
proceedings with the other parts. The design usually consists of drawings and specifications, usually
prepared by a design team including Architect, civil engineers, mechanical engineers, electrical
engineers, structural engineers, fire protection engineers, planning consultants, architectural
consultants, and archaeological consultants. The design team is most commonly employed by (i.e.
in contract with) the property owner. Under this system, once the design is completed by the design
team, a number of construction companies or construction management companies may then be
asked to make a bid for the work, either based directly on the design, or on the basis of drawings
and a bill of quantitiesprovided by a quantity surveyor. Following evaluation of bids, the owner
typically awards a contract to the most cost efficient bidder.
The best modern trend in design is toward integration of previously separated specialties, especially
among large firms. In the past, architects, interior designers, engineers, developers, construction
managers, and general contractors were more likely to be entirely separate companies, even in the
larger firms. Presently, a firm that is nominally an "architecture" or "construction management" firm
may have experts from all related fields as employees, or to have an associated company that
provides each necessary skill. Thus, each such firm may offer itself as "one-stop shopping" for a
construction project, from beginning to end. This is designated as a "design build" contract where the

CM-650 Principles of Construction Management – Elton John Evangelista Page 22

contractor is given a performance specification and must undertake the project from design to
construction, while adhering to the performance specifications.
Several project structures can assist the owner in this integration, including design-build, partnering
and construction management. In general, each of these project structures allows the owner to
integrate the services of architects, interior designers, engineers and constructors throughout design
and construction. In response, many companies are growing beyond traditional offerings of design or
construction services alone and are placing more emphasis on establishing relationships with other
necessary participants through the design-build process.
The increasing complexity of construction projects creates the need for design professionals trained
in all phases of the project's life-cycle and develop an appreciation of the building as an advanced
technological system requiring close integration of many sub-systems and their individual
components, including sustainability. Building engineering is an emerging discipline that attempts to
meet this new challenge.
Financial advisors[edit]
Trump International Hotel and Tower (Chicago)

May 23, 2006

September 14, 2007 (3 months before completion)

Construction projects can suffer from preventable financial problems. Underbids happen when
builders ask for too little money to complete the project. Cash flow problems exist when the present
amount of funding cannot cover the current costs for labour and materials, and because they are a
matter of having sufficient funds at a specific time, can arise even when the overall total is
enough. Fraud is a problem in many fields, but is notoriously prevalent in the construction
field.[22] Financial planning for the project is intended to ensure that a solid plan with adequate
safeguards and contingency plans are in place before the project is started and is required to ensure
that the plan is properly executed over the life of the project.

CM-650 Principles of Construction Management – Elton John Evangelista Page 23

Mortgage bankers, accountants, and cost engineers are likely participants in creating an overall plan
for the financial management of the building construction project. The presence of the mortgage
banker is highly likely, even in relatively small projects since the owner's equity in the property is the
most obvious source of funding for a building project. Accountants act to study the expected
monetary flow over the life of the project and to monitor the payouts throughout the process. Cost
engineers and estimators apply expertise to relate the work and materials involved to a proper
valuation. Cost overruns with government projects have occurred when the contractor identified
change orders or project changes that increased costs, which are not subject to competition from
other firms as they have already been eliminated from consideration after the initial bid.[23]
Large projects can involve highly complex financial plans and often start with a conceptual estimate
performed by a building estimator. As portions of a project are completed, they may be sold,
supplanting one lender or owner for another, while the logistical requirements of having the right
trades and materials available for each stage of the building construction project carries forward. In
many English-speaking countries, but not the United States, projects typically use quantity
surveyors.
Legal aspects[edit]
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remove this template message)
Main article: Construction law

Construction along Ontario Highway 401, widening the road from six to twelve travel lanes

A construction project must fit into the legal framework governing the property. These include
governmental regulations on the use of property, and obligations that are created in the process of
construction.
When applicable, the project must adhere to zoning and building code requirements. Constructing a
project that fails to adhere to codes does not benefit the owner. Some legal requirements come
from malum in se considerations, or the desire to prevent indisputably bad phenomena, e.g.
explosions or bridge collapses. Other legal requirements come from malum
prohibitum considerations, or factors that are a matter of custom or expectation, such as isolating
businesses from a business district or residences from a residential district. An attorney may seek
changes or exemptions in the law that governs the land where the building will be built, either by
arguing that a rule is inapplicable (the bridge design will not cause a collapse), or that the custom is
no longer needed (acceptance of live-work spaces has grown in the community).
A construction project is a complex net of contracts and other legal obligations, each of which all
parties must carefully consider. A contract is the exchange of a set of obligations between two or
more parties, but it is not so simple a matter as trying to get the other side to agree to as much as
possible in exchange for as little as possible. The time element in construction means that a delay
costs money, and in cases of bottlenecks, the delay can be extremely expensive. Thus, the

CM-650 Principles of Construction Management – Elton John Evangelista Page 24

contracts must be designed to ensure that each side is capable of performing the obligations set out.
Contracts that set out clear expectations and clear paths to accomplishing those expectations are far
more likely to result in the project flowing smoothly, whereas poorly drafted contracts lead to
confusion and collapse.
Legal advisors in the beginning of a construction project seek to identify ambiguities and other
potential sources of trouble in the contract structure, and to present options for preventing problems.
Throughout the process of the project, they work to avoid and resolve conflicts that arise. In each
case, the lawyer facilitates an exchange of obligations that matches the reality of the project.
Interaction of expertise[edit]

Apartment complex under construction in Daegu, South Korea

Design, finance, and legal aspects overlap and interrelate. The design must be not only structurally
sound and appropriate for the use and location, but must also be financially possible to build, and
legal to use. The financial structure must accommodate the need for building the design provided,
and must pay amounts that are legally owed. The legal structure must integrate the design into the
surrounding legal framework, and enforce the financial consequences of the construction process.
Procurement[edit]
Procurement describes the merging of activities undertaken by the client to obtain a building. There
are many different methods of construction procurement; however the three most common types of
procurement are traditional (design-bid-build), design-build and management contracting.
There is also a growing number of new forms of procurement that involve relationship contracting
where the emphasis is on a co-operative relationship among the principal, the contractor, and other
stakeholders within a construction project. New forms include partnering such as Public-Private
Partnering (PPPs) aka private finance initiatives (PFIs) and alliances such as "pure" or "project"
alliances and "impure" or "strategic" alliances. The focus on co-operation is to ameliorate the many
problems that arise from the often highly competitive and adversarial practices within the
construction industry.
Traditional[edit]
Main article: Design–bid–build
This is the most common method of construction procurement and is well established and
recognized. In this arrangement, the architect or engineer acts as the project coordinator. His or her
role is to design the works, prepare the specifications and produce construction drawings, administer
the contract, tender the works, and manage the works from inception to completion. There are direct
contractual links between the architect's client and the main contractor. Any subcontractor has a
direct contractual relationship with the main contractor. The procedure continues until the building is
ready to occupy.
Design-build[edit]

CM-650 Principles of Construction Management – Elton John Evangelista Page 25

Main article: Design-build

Construction of the Phase-1 (first two towers) of the

Havelock City Project, Sri Lanka
This approach has become more common in recent years, and also involves the client contracting a
single entity that both provides a design and builds it. In some cases, the design-build package can
also include finding the site, arranging funding and applying for all necessary statutory consents.
The owner produces a list of requirements for a project, giving an overall view of the project's goals.
Several D&B contractors present different ideas about how to accomplish these goals. The owner
selects the ideas he or she likes best and hires the appropriate contractor. Often, it is not just one
contractor, but a consortium of several contractors working together. Once these have been hired,
they begin building the first phase of the project. As they build phase 1, they design phase 2. This is
in contrast to a design-bid-build contract, where the project is completely designed by the owner,
then bid on, then completed.
Kent Hansen pointed out that state departments of transportation usually use design build contracts
as a way of progressing projects when states lack the skills-resources. In such departments, design
build contracts are usually employed for very large projects.[24]
Management procurement systems[edit]
Main article: Construction management
In this arrangement the client plays an active role in the procurement system by entering into
separate contracts with the designer (architect or engineer), the construction manager, and
individual trade contractors. The client takes on the contractual role, while the construction or project
manager provides the active role of managing the separate trade contracts, and ensuring that they
complete all work smoothly and effectively together.
Management procurement systems are often used to speed up the procurement processes, allow
the client greater flexibility in design variation throughout the contract, give the ability to appoint
individual work contractors, separate contractual responsibility on each individual throughout the
contract, and to provide greater client control.
In recent time, construction software starts to get traction – as it digitizes construction industry.
Among solutions, there are for example: Procore, GenieBelt, PlanGrid, etc.

Authority having jurisdiction[edit]

CM-650 Principles of Construction Management – Elton John Evangelista Page 26
See also: Planning permission

Digging the foundation for a building construction in Jakarta, Indonesia

In construction, the authority having jurisdiction (AHJ) is the governmental agency or sub-agency
that regulates the construction process. In most cases, this is the municipality where the building is
located. However, construction performed for supra-municipal authorities are usually regulated
directly by the owning authority, which becomes the AHJ.

Construction on the Federal Reserve building in Kansas City, Missouri

Before the foundation can be dug, contractors are typically required to verify and have existing utility
lines marked, either by the utilities themselves or through a company specializing in such services.
This lessens the likelihood of damage to the existing electrical, water, sewage, phone, and cable
facilities, which could cause outages and potentially hazardous situations. During the construction of
a building, the municipal building inspector inspects the building periodically to ensure that the
construction adheres to the approved plans and the local building code. Once construction is
complete and a final inspection has been passed, an occupancy permit may be issued.
An operating building must remain in compliance with the fire code. The fire code is enforced by the
local fire department or a municipal code enforcement office.
Changes made to a building that affect safety, including its use, expansion, structural integrity,
and fire protection items, usually require approval of the AHJ for review concerning the building
code.

Industry characteristics[edit]
In the United States, the industry in 2014 has around $960 billion in annual revenue according to
statistics tracked by the Census Bureau, of which $680 billion is private (split evenly between
residential and nonresidential) and the remainder is government.[25] In 2005, there were about
667,000 firms employing 1 million contractors (200,000 general contractors, 38,000 heavy, and
432,000 specialty); the average contractor employed fewer than 10 employees.[26] As a whole, the
industry employed an estimated 5.8 million in April 2013, with a 13.2% unemployment rate.[27] In the

CM-650 Principles of Construction Management – Elton John Evangelista Page 27

United States, approximately 828,000 women were employed in the construction industry as of
2011.[28]
Careers[edit]

Helicopter view of the Atacama Large Millimeter/submillimeter Array (ALMA) Operations Support Facility (OSF)
construction site

Ironworkers erecting the steel frame of a new building at Massachusetts General Hospital in Boston

A truck operator at Al Gamil, the largest construction company in Djibouti.

There are many routes to the different careers within the construction industry. These three main
tiers are based on educational background and training, which vary by country:

CM-650 Principles of Construction Management – Elton John Evangelista Page 28

 Unskilled and semi-skilled – General site labor with little or no construction qualifications.
 Skilled – Tradesmen who've served apprenticeships, typically in labor unions, and on-site
managers who possess extensive knowledge and experience in their craft or profession.
 Technical and management – Personnel with the greatest educational qualifications,
usually graduate degrees, trained to design, manage and instruct the construction process.
Skilled occupations include carpenters, electricians, plumbers, ironworkers, masons, and many other
manual crafts, as well as those involved in project management. In the UK these require further
education qualifications, often in vocational subject areas. These qualifications are either obtained
directly after the completion of compulsory education or through "on the job" apprenticeship
training.[29] In the UK, 8500 construction-related apprenticeships were commenced in 2007.[30]
Technical and specialized occupations require more training as a greater technical knowledge is
required. These professions also hold more legal responsibility. A short list of the main careers with
an outline of the educational requirements are given below:

 Architect – Typically holds 1, undergraduate 3 year degree in architecture + 1, post-graduate 2

year degree (DipArch or BArch) in architecture plus 24 months experience within the industry.
To use the title "architect" the individual must be registered on the Architects Registration
Board register of Architects.
 Civil engineer – Typically holds a degree in a related subject. The Chartered
Engineer qualification is controlled by the Engineering Council, and is often achieved through
membership of the Institution of Civil Engineers. A new university graduate must hold a master's
degree to become chartered; persons with bachelor's degrees may become an Incorporated
Engineer.
 Building services engineer – Often referred to as an "M&E Engineer" typically holds a degree in
mechanical or electrical engineering. Chartered Engineer status is governed by the Engineering
Council, mainly through the Chartered Institution of Building Services Engineers.
 Project manager – Typically holds a 4-year or greater higher education qualification, but are
often also qualified in another field such as architecture, civil engineering or quantity surveying.
 Structural engineer – Typically holds a bachelor's or master's degree in structural engineering. A
P.ENG is required from the Professional Engineers Ontario (Canada). New university graduates
must hold a master's degree to gain chartered status from the Engineering Council, mainly
through the Institution of Structural Engineers (UK).
 Quantity surveyor – Typically holds a bachelor's degree in quantity surveying. Chartered status
is gained from the Royal Institution of Chartered Surveyors.
 Civil estimators are professionals who typically have a background in civil
engineering, construction project management, or construction supervision.
In 2010 a salary survey revealed the differences in remuneration between different roles, sectors
and locations in the construction and built environment industry.[31] The results showed that areas of
particularly strong growth in the construction industry, such as the Middle East, yield higher average
salaries than in the UK for example. The average earning for a professional in the construction
industry in the Middle East, across all sectors, job types and levels of experience, is £42,090,
compared to £26,719 in the UK.[32] This trend is not necessarily due to the fact that more affluent
roles are available, however, as architects with 14 or more years experience working in the Middle
East earn on average £43,389 per annum, compared to £40,000 in the UK.[32] Some construction
workers in the US/Canada have made more than $100,000 annually, depending on their trade.[33]

Safety[edit]
See also: Construction site safety

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At-risk workers without appropriate safety equipment

Construction is one of the most dangerous occupations in the world, incurring more occupational
fatalities than any other sector in both the United States and in the European Union.[34][35] In 2009, the
fatal occupational injury rate among construction workers in the United States was nearly three times
that for all workers, with Falls being one of the most common causes of fatal and non-fatal injuries
among construction workers.[34] Proper safety equipment such as harnesses, hard hats and
guardrails and procedures such as securing ladders and inspecting scaffolding can curtail the risk of
occupational injuries in the construction industry.[36] Other major causes of fatalities in the
construction industry include electrocution, transportation accidents, and trench cave-ins.[37]

Roofing requires a very high level of safety

Other safety risks for workers in construction include hearing loss due to high noise
exposure, musculoskeletal injury, chemical exposure, and high levels of stress.[28] Construction has
been identified by the National Institute for Occupational Safety and Health (NIOSH) as a priority
industry sector in the National Occupational Research Agenda (NORA) to identify and provide
intervention strategies regarding occupational health and safety issues.[38] [39]

History[edit]
Main article: History of construction
See also: History of architecture
The first huts and shelters were constructed by hand or with simple tools. As cities grew during
the Bronze Age, a class of professional craftsmen, like bricklayers and carpenters, appeared.
Occasionally, slaves were used for construction work. In the Middle Ages, these were organized
into guilds. In the 19th century, steam-powered machinery appeared, and later diesel- and electric
powered vehicles such as cranes, excavators and bulldozers.
Fast-track construction has been increasingly popular in the 21st century. Some estimates suggest
that 40% of construction projects are now fast-track construction.[40]

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 The Difference Between Vertical and
Horizontal Project Management

Written by

ZACH WATSON

 0SHARES

Tags: Project Management

The business world contains a wide variety of structures and models, but two basic forms can be
used to define the setup of many private sector organizations: vertical and horizontal. These
distinctions are important because they not only signify a difference in organization structure, but
also in the way an organization works, i.e., manages projects and gets results. While similarities
do exist, and nothing in business is totally black and white, the difference between the two
models can be vast.

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Vertical Organizations
A business in the traditional mold, vertical organizations feature well-defined leadership at the
top of the organization whose influence filters down to middle managers and department heads.
These middle managers then assign work to employees within their departments. Similarly, when
work is complete, it goes back up the chain until it reaches a manager with sufficient authority to
approve the work, which is then moved outside its original department to other areas of the
company for quality assurance or production.

For the first half of the 20th century, vertical organizations utilized a command and control
project management style. As the name implies, this method involved a senior figure within the
company assigning work with very specific guidelines and little room for deviation. If this
structure sounds authoritarian, that’s because it is, but during its heyday, it was implemented for
good reason.

At that point in time, a significant skills gap existed between managers and their subordinates.
Managers often boasted higher levels of education, and were competent in the tasks their
employees completed on a daily basis.

With the dawning of the knowledge economy, command and control began to fade as innovation
began to rival production capability as the key competitive edge in many markets. Today,
vertical organizations more commonly use a waterfall methodology, which revolves around work
flowing through different departments until it reaches an end point. The waterfall method leaves
room for innovation within departments, but limits the amount of collaboration between different
types of workers. The workflow focuses on dependent work, meaning that work takes place in a
sequential fashion.

Horizontal Organizations
In contrast to vertical organizations that feature a tiered structure of management, horizontal
organizations focus on skill proficiency rather than management hierarchy. Less division exists
between upper management and skill workers. For example, a CEO might work directly with a
development team in completing projects, but in very technical situations, a CEO would defer to
a software developer whose knowledge far exceeds that of the chief executive officer.

Organizations with a horizontal, or flat, management structure often begin as start-ups with little
need for traditional management. Titles don’t matter as much as skill, so employees without
impressive positions are trusted with greater input into project decisions and given the ability to
solve problems creatively. Productivity is what most concerns these organizations, making them
less preoccupied with distinguishing job roles and more focused on executing their goals.

Staying in line with their company structure, horizontal organizations often employ an agile form
of project management that allows for work to be completed in an iterative process rather than
sequentially. An agile methodinvolves completing various portions of the project and gathering

CM-650 Principles of Construction Management – Elton John Evangelista Page 32

feedback through testing with customers to help keep the requirements of the project relevant
and defined.

While agile is often associated with software development, it’s applicable to any innovative
project in which the requirements may change overtime or are unclear from the beginning. The
iterative testing of this project management style allows teams to continuously gather updates on
their work and adjust accordingly. It also works well with a horizontal organization’s structure
because various stages of the work don’t have to be dependent, meaning team members who can
work in a cross-functional capacity can realize greater value in this system.

Agile is difficult to scale however, as is the horizontal organizational structure. As a project team
grows, it may become difficult to make decisions as quickly as a vertical structure because so
many of the team members wield input into the project.

Both project management and company structures have their strengths and weaknesses, but
methodology also requires the right tools, like project management software, to be successful. A
waterfall approach may require software more focused on Gantt charts and forecasting, while an
agile project may utilize a platform that features more collaborative tools. Check our comparison
of Wrike vs Asana to get a breakdown of two software tools that work well for both agile and
waterfall methodologies.

These divisions between vertical and horizontal organizations and their project management
styles aren’t set in stone, but insights can be drawn from the utilization of waterfall and agile
methods in different business models.

How does your business manage projects? What tools do you use? Let us know in the comments.

In a business organization, communication plays an important role. It affects interpersonal

relationships, attitude, proactivity and affection toward the company and its values. In a company
organized by projects, communication takes on greater importance than in a mere functional
organization—and the project manager assumes the role of communication catalyst and promoter.
The PM should interact with all project stakeholders: the sponsor or customer, program or portfolio
manager, line manager, members of the project team, etc.

There are two main types of communication, based on the direction of the hierarchies within the
project organization:

 Horizontal: Communication established with people on the same hierarchical level

within the company (or project)
 Vertical: Communication established with people who belong to a different
hierarchical level

These two types have equal importance. Let’s consider them from the point of view of the project
manager…

Horizontal Communication
Horizontal communication represents an exchange of knowledge, ideas and experiences. The
discussion is usually focused on managerial, behavioral and disciplinary topics; it is poorly oriented
to technical discussions (except for the interaction between the project manager and the line

CM-650 Principles of Construction Management – Elton John Evangelista Page 33

managers). With the other stakeholders, the PM is the spokesperson for the project, the person
who—better than anyone—should summarize the current status, know the problems and risks, and
estimate the final outcome of the project.

In this type of communication, the project manager must somehow "defend and protect" the project
in front of stakeholders who are involved in a partial/indirect way. The most critical interaction here is
the one between the project manager and line manager. The PM should obtain the maximum level
of cooperation from a technician, who might not operate using project management logic. Diplomacy
and respect of his or her professional skills should guide this interaction.

Horizontal communication should be characterized by:

 Partial information sharing: The technical and financial details—and management of the
project—are not usually deeply explored among stakeholders, who require general
information concerning the status quo of the project.
 Synthesis/easy to read: The shared information is simple in order to be effective and easy
to read—and to allow people who are not directly involved in the project to understand the
level of progress.
 Balance and diplomacy: The project manager should communicate decisively with the
stakeholders involved in horizontal communication—but at the same time carefully, trying
on one hand to protect the work of his or her team, and on the other hand to meet the
knowledge needs of their interlocutors in a clear and transparent way.

Vertical Communication
Vertical communication is mostly characterized by technical or management interactions essentially
focused on the success of the project. The protagonists of this type of communication have a
common goal; they are more deeply involved in the project.

Vertical communication can be divided into pure and impure. Pure vertical communication follows
the chain of command of the project. If the communication is directed downward, it involves the
project manager and team members. The PM has the task of guiding the team's activities and
directing it to the achievement of project objectives. Team members must perceive the PM as the
leader of the project and provide constructive and aware contributions for the success of the project.

To do this, the project manager’s communication with team members should not only be
authoritarian, but authoritative. Pure vertical communication is also the one that exists between the
project manager and the program/portfolio manager (who should be her/his direct supervisor). The
principles on which this communication are based are the same that usually exist between the
project manager and the project team. In this case, the communication from the point of view of the
project manager is now directed upward, not downward; it should be set on a mutual respect of
roles.

Impure vertical communication is usually established in a company organized by an unbalanced

matrix between the project manager and line managers. According to the relevance of the project
within the company and its organization, the PM should be at a hierarchical level slightly different
from the line manager. This type of communication is particularly delicate and involves people who
can easily get into conflict with each other. The power struggle between the project manager/line
managers against the project team members must be mediated by appropriate communication. This
should be perceived as part of the success of the project.

In this type of communication, the project manager should be able to—on one hand—highlight the
strategic importance of the project within the organization, and consequently the importance of his or

CM-650 Principles of Construction Management – Elton John Evangelista Page 34

her role. The project manager should facilitate the contribution of line managers to project success.
This contribution must not distract project team members from their tasks and objectives. In this
context, the diplomatic action of the PM can be decisive. This mitigation can result in the project
manager making some concessions to line managers.

Vertical communication should be characterized by:

 Respect for roles: The people involved in vertical communication are not on the same
hierarchical level. It is fundamental that everyone is aware of their role (and that of his or
her partners within the project and/or organization).
 Wide information sharing: The project team and program/portfolio manager should be
aware of the most important project aspects: guidelines, processes and objectives. It is
important that everyone feels part of the project team. The sharing of information is an
essential tool for successful teamwork.
 Availability to listening: Communication within different hierarchical levels could bump
sensibility if it is not set in the proper way. It’s important to transmit the information at the
right time and in the correct ways, dealing with commands, objections and opinions that
can arrive from higher or lower levels.

Conclusion
Communication is often a complicated topic within company management. In many cases, its
importance—and, consequently, its influence on business processes—is underestimated. The type
of communication used cannot be the same with all project stakeholders, who play different roles in
the project (as it relates to hierarchy, involvement, responsibility, etc.).

The project manager is the focus of this exchange, and the way of communicating affects the
relationship with project stakeholders (who do not see his or her direct involvement). In principle, the
sharing of information should be the fundamental step to improve project communication. By
sharing, all people involved speak the same language—the language of the project—and are aware
of the importance of the discussion topics.

6 Best Practices for Managing Construction

Projects
Posted on February 7, 2018 by Rachel Novotny

6 Best Practices for Managing Construction Projects

It’s hard to know at the beginning of a project whether or not it will be successful. But as the

Project Manager, it’s your job to try to ensure that everyone has what they need in order to make

that project work. You’re supposed to bring the job in on time and within budget. While there are

many different things that can easily throw a job off track, it’s your job to put it back on track.

CM-650 Principles of Construction Management – Elton John Evangelista Page 35

You know how to set a project up for success, but here are some best practices to help you in

managing construction projects.

1. Set a Clear Project Scope

In order to manage a construction project, there has to be an understanding of what is the project.

Involve stakeholders in an approved project scope with a detailed timeline, interim milestones,

and the budget. The budget has to be capable of covering all required work. Realistic

expectations must be asserted to prevent project failure. While setbacks happen, this is the first

step in a successful project.

Having a project scope in writing sets up a great base for managing construction projects. It

ensures you have enough money to cover expenses, as well as sets your milestones for you. It

also stops “scope creep” or “just one more thing”. Scope creep is the continuous or uncontrolled

growth in the scope. It can cause projects to fail or take longer than expected and doesn’t lead to

good project management.

2. Set Up for Success

You shouldn’t just use stakeholder milestones in a project timeline. It’s important to keep open

communication with your teams when setting these milestones. Using their experience ensures

realistic milestones, it also helps you know what specifically they’ll need and establish good

communication early on.

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Having a good team only helps if you’re able to listen to them. They’re experts in their field,

have experience in projects of this type, and will help manage the small details. And managing as

a team can benefit you.

3. Focus on the Details

When managing construction projects, it’s important to focus on the details. Small details or

pieces are easily overlooked. However, they also can cause greater issues down the road. By

taking the necessary time to see the smallest details it will prevent issues. Small details can turn

into large problems, which links back to team managing.

It can be hard to remember to pay attention to the details when staring down deadlines. But

things get lost. It’s especially important to communicate the little details to your team. That way

they also know what to look for and what needs to be done.

4. Anticipate Project Setbacks

Project setbacks happen. Even the best-laid plans might go awry, but the important thing is to not

throw away the original plan. Planning for setbacks can be as simple as ensuring extra time in the

schedule, or extra money in the budget. That way a setback isn’t detrimental to the health of the

project. Anticipating setbacks can also be taking care of small issues before they become bigger

ones. It’s using past project information along with current project information in order to stay

ahead. It’s a top skill for managing construction projects.

5. Communicate Regularly
CM-650 Principles of Construction Management – Elton John Evangelista Page 37
Through communication and collaboration, the best projects are built on time. It’s through

listening and taking other people’s perspectives and experience into account that projects thrive.

Because building good working relationships is as important as the project itself. Those good

relationships lead to other productive projects and a good partnership. But that only happens

when there is open professional communication, and people feel like they’re listened to.

Listening is just as important if not more so than speaking.

6. Stay On Top of Trends

Staying on top of trends and learning are important in managing construction projects. It’s not

just what you can learn from your workers. But also learning about project management and new

tips, tricks, and solutions to make your life easier. The world is ever-changing, with new

solutions to common problems every day. These solutions, like software, can save you time and

even money through proper implementation. It also shows potential stakeholders that you take

your job seriously. Because you’re willing to learn and keep up with all of the technological

changes to provide the best service.

Conclusion
Managing construction projects can be difficult. Plans can go awry because of a variety of issues

that can and can’t be controlled. As a Project Manager, it’s your job to try to ensure that

everything stays on course. And these best practices can help you in managing construction

projects to completion.

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