Project Management UGA: Midterm
1/13
Site Finding
Google earth or google maps; type in chickamauga georgia, highway 27 and merges into lafayette
Google Earth can go to street mode and see the site; it allows you to see utility lines, vegetation, drains, curbs, etc.
Site Plan; will need to look up things that go into an Autozone such as shelves, counters, etc. Then need to draw in AutoCad
Preliminary Work
Need to know background information about the site and who we are working for
The site is big and paved, so need to worry about drainage
There are also houses to the north so need to worry about drainage
Letter of Transmittal
Cover Letter: gives and overview of what we are turning in and what it is for who, when, and why, should only be one page
2 Page Memo
Background of site
Background of Buttler Properties: what do they specialize in and what do they do when did they start, who started the company, etc.
Should be two pages single spaced
1/15
Industry Sectors
Publicly funded (36%)
Privately funded (64%)
Four Sectors of Construction
Commercial (28%)
Includes office buildings,large apartment complexes, shopping malls, theatres, etc
Tend to be privately funded with some public funding for schools and hospitals
Typically designed by architects with support from engineers and constructed by general contractions that manage the project
More technology and larger capital than in the residential sector
Many companies will develop a construction specialty
Accounts for about ¼ of the construction market
Residential (31%)
Individual homes small condos and small apartment complexes
Projects are privately funded by individual owners for their own use
Typically designed by an architect (not always) with support from structural/geotechnical
Most components of this constriction are built on-site
Fairly low level of technology
In a good economy, about ½ of construction spending takes place in the residential sector
Industrial (6%)
Steel mills, petroleum refineries, chemical processing plants, power plants, and automobile producing facilities
The design and construction depends on the needs of the process or production equipment
Generally privately funded
Lots of specialities, so there are fewer companies working in this area
A lot of repair work from jobsite errors
Heavy Engineering (35%)
Enables the distribution of goods and people (roadways, bridges, dams, canals)
Designed by civil engineers and built by specialized construction contractors
Much fewer companies (companies tend to be very large)
Most are publicly funded as they serve the public's needs (Taxes)
Currently this area requires more attention
Bridges typically designed for 50 years, Average US bridge age is 43 years
Most cities are relying on water distribution systems built prior to WW1
Construction Historical Perspective
Construction: act of building structures
As society become more and more organized the ability to build things became a hallmark of civilization (hydraulic structures)
Construction is a hallmark of our civilization, infrastructure, wastewater, roads, bridges, etc
Why do we do it? It helps solve societal problems
Early Human Structures
Examples
Settlement remains in caral-supe in Peru
Earliest evidence of human wood used for structures and tools
Reconstruction of oval wood hut in the south of France
Construction management: the overall planning, coordination and control of a project from the beginning to completion
Construction Management: the organizing and directing of in individuals, materials, and equipment to accomplish the purpose of the designer
(Two different types of construction management big M and little m)
More than the act of building. Addresses how resources can be best applied to complete a project
Four M’s of Construction Resources: Manpower, Machines, Materials, Money, as well as time
Types of Industry
The construction industry is a service industry that’s success is dependent upon people rather than on its technology or product
The industry is cyclical (abundance of projects and slow periods)
Demand depends on factors such as government funding demographics and market trends —weather dependent
A lot of construction is custom (not mass produced)
Demographic/Trends
Employment is expected to rise 19% in the next 10 years
Demand for commercial construction and increase in road, bridges and other infrastructure related projects
Aging workforce being replaced with younger individuals
Need a diverse workforce
The population is living longer
Leads to more assisted living facilities and health care facilities
Retirement communities needed
Technology
Using information and computing technology to manage projects bridging the office and job-site
Computer Aided Design (CAD) used to design and view two and three dimensional components of buildings
uilding Information Modeling (BIM)- a three dimensional modeling program that enables visualization of the project
Lidar, scanning
Opportunities
Domestically one of the greatest opportunities for construction is in infrastructure: bridges, roadways, tunnels, airports
Need rehabilitation and or replacement
US Department of Transportation estimates the need for roads and bridges $64.1 billion
Sustainability
Management Levels
Hierarchical
Organizational- concerned with the legal and business structure
Project
Activity
Operation
Process
Work Task
In the higher up tasks it is more about managing projects and physical components of the project
As you get lower you get closer to the field work and day to day actions, and individual tasks
2/5
Organizing and Managing
Construction and civil engineering are normally project based
Why do we need an Organization Structure?
Clear accountability
Efficient use of resources and time
Faster decision making
Reduce conflicts
Two types of organizational structures (mix or both)
Centralized and Decentralized
Centralized
When decision making is concentrated at the top level such as the CEO and the President
Typically smaller consulting firms
Pros: reduce conflicts, everyone knows there job under the CEO
Cons: the CEO could get to busy or making the wrong decisions
Decentralized
Decision-making authority is distributed across individual teams
As firm grows bigger it becomes more decentralized (not all decisions made by the president)
Pros: can be faster in decision making, less bureaucratic, big commercial construction
Organizational Chart
Generalist- the most basic
People and employees are grouped together in general and broad groups such as managing directors, production manager, plant superintendent, and then foreman shops answering to each other
Departmental- complex
Will have different departments and it will show how everything works (much larger firm)
Matrix-most complex
Will show department to department interactions and who might work with who, shows the interconnections
Will have to answer to the department head, and also the project manager of that project, so if you working on multiple projects you will have to work with multiple project managers
Legal forms of Organization
Sole Proprietorship
Single-person ownership, working for themselves
May have many employees, but only one person that is in control
Can be started without and ended without any documentation
Can be high risk
Pay for all equipment
Partnership
Must be at least two people to be legal, percentage of ownership may vary
Have to pay for everything together
All debts by the company are responsible by partners
Will dissolve according to a prior agreement
How to split company if the company dissolves
Corporation
Stockholders are only liable up to the amount they have invested in the company
If it wants to raise capitol it can sell stocks
Construction companies generally only have a few people that have stocks in the company
Decisions on stock are made by people who already own stocks
Slower decision making process in the firm
Delivery Methods
Represent how the projects is designed, engineered and constructed
Determines how stakeholders will work together throughout the project
Design-Bid-Build
Owner hires a design professional
Developed design and contract documents
Pay a fee that is either a percent of overall cost or lump sum
Owner gets bid or negotiates with a specific contractor
Contractor is then responsible for completing the project according to the contract documents
Contractor may use in house employees or sibs to complete work
The owner hires a firm to perform the design and construction throughout the life of the project.
Can be a single company that offers both services
Can be a joint venture that come together to perform a single project
In either case, each can hire subcontractors to perform the work in the field
Construction Manager at Risk (CMAR)
The owner hires a design firm and constructed project management firm in the beginning
Theres is a commitment by th construction manager to deliver the project within a GMP (Maximum Price)
Construction Manager acts as a consultant to the owner in the development and design
Contract Types
Single Fixed Price (Lump Sum)
The contractor agrees to provide a specified amount of work for a specific sum
Both sides to fix the conditions of the project precisely, because after the contract is signed, both parties must live with its terms
Pros:
The owner knows before the work begins what the final cost will be
Typically used with a design bid build method
The designer creates contracts that the owner will bid or negotiate
Cons:
The contract is only as good as the contract documents
If the project changes or errors exist in the control documents then the contract has to be renegotiated
Unit Price
The owner and contractor agree on the price that will be charged per unit for the major elements of the project
The owner estimates quantities for the project. The contract will be a total price based on these quantities.
Contractor overhead, profit, and other project expenses must be included in the unit prices.
Pros:
Sometimes difficult to accurately quantify the work necessary
Designer estimates the quantities and the bidders provide a unit price for each task
Cons:
If actual quantities are significantly different, the owner's financial commitment may be greater than planned
Possible for unbalanced bids (ethical?)
Some quantities measure in the field
Cost Plus Fee
Contractor is reimbursed by the owner for his work costs and receives an additional agreed upon fee or percentage of the costs
The owner must be clear what costs will be reimbursed and which costs will be covered by the fee
Pros:
This type of contract is beneficial when the scope of the project is difficult to define or when fast track construction
Contractor can start work faster because he knows prices will be reimbursed
Cons:
Project begins with unknowns even when contract is stated
The project costs may be capped, but quality and scope may be sacrificed at the expense (work is not as great of quality just so they can make the budget)
Contract Changes
In each contract:
An agreement is established
The contract is entered into after the work to be performed has been estimated and a work plan developed
A bid may be submitted or negotiations may occur If conditions change, the contract may have to change:
The scope of the project increases or decreases because of a change in owner requirements
The work must be performed differently because of conditions unforeseen when the contract was agreed to.
The design must be adjusted because of omissions in the documents or design features can’t be built as specified.