CHAPTER-1

INTRODUCTION CONSTRUCTION MANAGEMENT

Instructors
Dereje G.

Lecturer Dereje G. 1
 Introduction
1. Construction Project

A construction is a process of constructing something by

man for one purpose or another. It may be a road, bridge, a
dam, an airport, a commercial building, etc.

The broad spectrum of constructed facilities may be

classified into four major categories, each with its
own characteristics:
i. Residential Housing Construction:
ii. Institutional and Commercial Building Construction:.
iii. Specialized Industrial construction:
iv. Infrastructure and heavy construction

Lecturer Dereje G. 2
 Introduction
2. Construction Industry
Construction Industry (CI) is an industry which is involved in the planning,
execution and evaluation of all types of civil works.

Construction Industry can be categorized into three major sectors:

i. Transport and Communication Sector
Road, Railway, Airway, and Telecommunication related physical works.

ii. Water and Energy Works

Hydropower development, transmission lines, wind power, irrigation projects.

iii. Buildings and Other Physical Infrastructures.

 CI is among the leading industry in producing employment and contribute to

the over all national development.

Lecturer Dereje G. 3
 Introduction
 CI specially in developing countries like Ethiopia
consumes much of the national budget.

 CI – is the most important enabler for social,

economic and political development of countries.

 Specifically this fact is true for least developing

countries like Ethiopia because projects are:
• Inter- sectoral
• Demands huge capital budget

Lecturer Dereje G. 4
 Introduction
Nature of Construction Industry:
 Requires big capital investment thus is highly affected by the
economy of the nation.
 Construction is a team output and requires motivated and
skilled workers.

Uniqueness of Construction Industry:

 Fragmented Industry
 Long production cycle
 Transient organization nature
 Unpredictable work load
 Subject to Environmental Impact

Lecturer Dereje G. 5
Introduction
4. Main Parties in Construction Project
Depending on the size, complexity, and purpose of a particular
construction project, the project team may include:

 A client or an owner
 Financial institutions or other investors that provide the
funding
 Local planning and code authorities
 Consultants or Licensed architects and engineers
 Contractors
 Marketing or leasing agents
 Facility managers

Lecturer Dereje G. 6
 Introduction
I. Client
The client is the most important party who is active from
inception to completion and event to post-occupancy maintenance.
Clients may be classified as Public sector clients and private
sector clients.
A. Public sector clients
Central Government Offices (Ministries)
Local Authorities (Regional or Town)
Public Corporations
B. Private sector clients
These are private individuals & private companies.

Lecturer Dereje G. 7
 Introduction
Duty of the Client
 Demand for the product. For example for the building
project:
 Availability and cost of land,
 Location & accessibility
 Price
 Required Infrastructure
 Legal constraints
 Current & future development
 Soil characteristics of land
 Site preparation (right of way)
 Permits

Lecturer Dereje G. 8
 Introduction
II. Consultant
The main role of the consultant is to interpret the client’s project
requirement into a specific design.
The consultants’ team shall:
 Ascertain, interpret and formulate the client’s requirement into
an understandable project.
 Design the project to much requirements and constraints
(imposed by statutory obligations, technical feasibility,
enviromental factor, site conditions, cost, etc)
 Assess client’s cost limit to decide on materials & the like.
 Prepare contract documents.
 Supervise the project and constantly inform the client on the
progress
 Approve payments
 Resolve contractual disputes
 Issue provisional and final acceptance certification
Lecturer Dereje G. 9
 Introduction
III. Contractor
These are groups established mainly as commercial companies, that
contract to construct development projects.
Responsibility of contractors:
Carry out a full site investigation prior to submission of
tender,
Submit tender,
Plan, Program, Control the construction process.
Notify the consultant about delays, discrepancies,
Effect all payments to his employees, suppliers,
subcontractors,
Rectify all defects on completion of works, etc
Provide post occupancy repair & maintenance if required.
Lecturer Dereje G. 10
 Introduction
IV. Public Sector Agencies
A. Statutory Authorities

 These bodies offer technical advice during design and

construction in their respective areas.
E.g. EEPCO , Fire Authority - requires meeting their specific
requirements. Thus early information to these
authorities is required.

B. Municipalities and Government Authorities

 These bodies offer the basic Land permit and building permit.

Lecturer Dereje G. 11
 Introduction
5. Resource for the construction Industry

The following resources are vital for construction

industry:
 Human Resources (Labor or Workmen)
 Financial Resources ( Fund)
 Information Resources
 Physical Resources ( Materials, Equipment and
Other Assets)
 Services and Management

Lecturer Dereje G. 12
Overview of Construction Management
Construction Management is
 A task which involves the planning, execution, and
control of construction operations at the same
time meeting the cost, quality and completion date
objectives of the project.

 It also involves motivating and leading the

human resource to achieve objectives of the
project

Lecturer Dereje G. 13
 Planning involves
◦ determination of financing methods
◦ estimating construction costs
◦ scheduling of the work and
◦ selection of construction methods and equipment to
be used
 Execution is carrying out the construction
◦ Fast execution is essential
◦ construction management must ensure that labor,
materials, and equipment are available when needed
◦ Management of construction operations is carried
out
Lecturer Dereje G. 14
 Control of construction operations involves control
of
◦ progress of the work
◦ construction costs and income and
◦ application of measures to correct any of
these not meeting schedules
 Progress control involves
◦ comparison of actual performance of
construction with scheduled performance
 Cost and income control involves
◦ comparison of actual costs and income with
those budgeted at the start of the project
Lecturer Dereje G. 15
Objectives of Construction Management

The main objectives of the construction

management team should include:
◦ Project completion within the allocated budget and
duration,
◦ Ensure that the production of construction works
satisfy the client’s functional requirements,
◦ Construction to specified standards,
◦ Provision of safe and satisfactory working condition.

Lecturer Dereje G. 16
Project and Project Management
Project is a unique process, consisting of a set of
co-ordinated and controlled activities with an
assumed start and known finish dates, undertaken to
achieve an objective conforming to specific
requirements including constraints of time, cost and
resources.
Project is series of activities and tasks that:
◦ have a specific objective to be completed within certain
specifications
◦ have defined start and end dates
◦ have funding or budgetary limits
◦ consume resources Lecturer Dereje G. 17
Construction Project Management
 Construction Project is a unique one-time
operation with one major objective, to accomplish
the tasks at a specified cost in a limited time-frame

 Project Management is a specialized

management technique to plan and control
projects under a single point of responsibility. (i.e It
involves planning and monitoring)

Lecturer Dereje G. 18
The function of project management includes:
◦ Defining the requirement of work,
◦ Establishing the extent of work,
◦ Monitoring the progress of the work
 tracking progress
comparing actual outcome to planned outcome
analyzing impact, cause and effect
making adjustments or corrective actions
◦ Adjusting deviations from the plan.

Lecturer Dereje G. 19
Construction Project Life Cycle
 A project passes through a number of distinct
phases or stages from project conception, through
execution into project completion.
 These phases although may overlap is known as
the "project life cycle".
 The engineering process
 Pre-project planning
 Project planning and design
 Contractor Selection
 Project Mobilization
 Project operation
 Project closeout and termination Lecturer Dereje G. 20
Construction Project Life Cycle Contd..
I. Pre-project planning
 Project scope is established by
◦ developing project alternatives
◦ analyzing project risks and economic payoff
◦ developing a financial plan and making a decision to proceed (or not)
◦ deciding upon the project organization and control plan
 Design professionals are engaged who collectively put
together a design package containing : the drawings,
specifications. time table for the project and total project cost
estimates

Lecturer Dereje G. 21
Construction Project Life Cycle Contd..
 Among the first things the owner must do is
◦ to decide what sort of project delivery system will
be used.
◦ How will the various parties be related?
◦ Will the owner engage a design professional to
prepare plans and specifications and then contract
separately with a construction contractor?
◦ Or, will a single entity be responsible for the
entire project?

Lecturer Dereje G. 22
Construction Project Life Cycle Contd..
 The other primary decision required by the owner early
in the project relates to
◦ The type of contract to be used with the contractor.
 Will the contractor be paid a specified fixed price, regardless of the actual
quantities used in the project and regardless of the contractor’s actual costs?
 Will the quantities of materials be measured and the contractor paid on the
basis of those quantities and pre-agreed-upon unit prices for each material?
 Or, will the contractor be reimbursed for its actual costs, plus a fee, perhaps
with an agreed-upon upper limit?

◦ Depending upon the owner’s expertise and experience in administering

construction contracts, the owner may engage a professional engineer, an
architect or a project manager during this pre-project phase to advise on these
important decisions.

Lecturer Dereje G. 23
Construction Project Life Cycle Contd..

II. Planning and design phase

◦ The project is fully defined and made ready for
contractor selection and deployment during the
planning and design phase.
◦ This phase can be divided into three stages.
 In the first stage
 define the project’s objectives,
 consider alternative ways to attain those objectives and
 ascertain whether the project is financially feasible.

Lecturer Dereje G. 24
Construction Project Life Cycle Contd..

 In this process of planning and feasibility study,

 a project brief will be developed,
 various sites may be investigated,
 public input may be sought,
 a preliminary cost estimate will be prepared,
 funding sources will be identified and
 a final decision on whether to proceed with the
project will be rendered.

Lecturer Dereje G. 25
Construction Project Life Cycle Contd..
 In the second stage,
◦ the design professional will use the results of the
planning efforts to develop schematic diagrams showing
the relationships among the various project
components,
◦ followed by detailed design of the structural, electrical
and other systems.
◦ The output from this design development effort is used
in the final stage.
 In the third stage,
◦ contract documents are prepared for use in contractor
selection and installation work at the construction site.
Lecturer Dereje G. 26
Construction Project Life Cycle Contd.
III. Contractor selection phase
◦ In anticipation of selecting a contractor, the owner must
decide whether an open invitation will be issued to all
possible vendors or
◦ whether only certain contractors will be invited to
submit offers and
◦ whether any sort of pre-qualification process will be
invoked to limit the number of tenders.
◦ The last step in this phase is the submittal, opening and
evaluation of tenders, the selection of the successful
contractor and the finalization of the construction
contract.

Lecturer Dereje G. 27
IV. Project mobilization phase
 After the contractor is selected, a number of activities must be
completed before installation work can begin at the project site.
◦ Various bonds, licenses and insurances must be secured.
◦ A detailed program for the construction activities must be
prepared.
◦ The cost estimate must be converted to a project budget and
the system for tracking actual project costs must be established.
◦ The worksite must be organized, with provisions for temporary
buildings and services, access and delivery, storage areas and site
security.
◦ Arrangements for labor, the other essential resource, must be
organized.
◦ With the completion of this phase, it is finally time to begin the
actual field construction
Lecturer Dereje G. 28
Construction Project Life Cycle Contd..
V. Project operations phase
 In presenting the contractor’s activities on the
construction site the responsibilities involve
three basic areas
◦ monitoring and control,
◦ resource management and
◦ documentation and communication

Lecturer Dereje G. 29
Construction Project Life Cycle Contd
 The Five important aspects of monitoring and controlling the
work are.
◦ Actual schedule progress must be compared against the project program
to determine whether the project is on schedule; if it is not, actions must
be undertaken to try to bring the program back into conformance.
◦ the cost status must be checked to establish how actual performance
compares with the budget
◦ quality management, to assure that the work complies with the technical
requirements set forth in the contract documents.
◦ Safety, the contractor has an important role to play in managing the work
safely and
◦ minimizes adverse environmental impacts.

Lecturer Dereje G. 30
Construction Project Life Cycle Contd..
VI. Project closeout and termination phase
 Finally, as the project nears completion, a number of special
activities must take place before the contractor’s
responsibilities can be considered complete
◦ Testing and startup tasks, the final cleanup, various inspections and
remedial work that may result from them and
◦ the process of closing the construction office and terminating the
staff’s employment.
◦ approvals and certifications that allow the contractor to receive final
payment, a set of as-built drawings that include all changes made to
the original design, operating manuals, warranties etc.
◦ The contractor will also be responsible for transferring and archiving
project records

Lecturer Dereje G. 31
Thank You
Lecturer Dereje G. 32