Management

Approaches

Construction Management

Customer appoints

Design teamand

Management team

Construction ManagementCUSTOMER

TRADECONTRACTORS

CONSTRUCTIONMANAGER

ARCHITECT

Construction Management Customers

Tend to be commercial developers wanting:• Large, city centre buildings• High quality architecture• Secure profitsThe most successful of these customers: • Provide leadership for projects• Are actively involved in key decisions• Concentrate attention on agreed objectives

Construction Management Design Teams

• Led by experienced architect who produces overall concept

• Include engineers and specialists who produce much of the detail design

• Guided by design meetings held at key stages • Establish quality control systems• Ensure design is complete and does not cause

delays

Construction Management Management Teams

• Led by experienced construction manager• Check completion date and budge• Establish project organization and plan• Ensures designs meet agreed objectives• Ensures competent teams are selected• Establish control systems• Ensures problems are solved quickly• Identifies good ideas emerging during project

Construction ManagementWorks Contractors

• Have direct contracts with customer• Specialists form part of design team• Ensure designs match cost and time targets• Agree how and when work will be done• Work in accordance with design and plan• Involved in project meetings• Complete work and leave site clean and tidy

Construction Management Key Relationships

CUSTOMER

TRADECONTRACTORS

CONSTRUCTIONMANAGER

ARCHITECT

SPECIALISTDESIGNERS

SPECIALISTCONSULTANTS

Construction Management Performance

• Considerably faster than traditional construction • Commercial projects completed

about 40% quicker• Helps commercial customer achieve

their financial objectives

Efficient Construction Managementacts on the following propositions

• Reduce the number of teams involved• Improve the quality of relationships• Reduce performance variability• Reduce external interference

plus

Efficient Construction Managementacts on the following propositions

• Select teams competent in the technologies required by the project

• Ensure teams accept the agreed objectives• Ensure teams are motivated to achieve agreed

objectives• Foster accurate communications between teams• Ensure teams regard the transactions as

advantageous to themselves

Management Contracting

Similar to construction management except the management team

is provided by a management contractor and works contractors are

subcontractors to the management contractor

Construction Management at Risk

Similar to construction management except the construction management

company guarantee the maximum price and employ works contractors

as subcontractors

Design and Manage

Similar to management contractingexcept the management contractoremploys the design team as well

as the works contractors

Project using Construction Management

The project is to construct a new hotel on a virgin site. The hotel has 300 guest rooms

and the other spaces expected in a 5* hotel

The building is 10 stories high with a steel structural frame, concrete beam floors and

roofs, and high quality, pre-fabricated external cladding.

Teams Team-daysBrief 1 80Design 31 780Plan 5 150Procurement 13 680Manufacturing 10 250Production 40 2340Commissioning 4 140TOTALS 104 4400

For a project with 104 teams (N=104)

Possible relationships = 104 x 103/2 = 5356

3230 of these do not occur

Actual relationships 5356 - 3230 = 2126

Largest number of teams in one time interval is 34 in 21st time interval

They are constructing theservice cores, risers and main plant, the main entrance

and vertical circulationManufacturing teams are producing building

componentsThe work is supervised by design and construction

management teams

34 x 33/2 = 561 possible relationships

During the 21st time interval the following teams work simultaneously

3 out of 4 construction manager’s plan and control teams1 out of 2 contracts and payment systems teams

4 out of 10 manufacturing teams3 out of 4 service core teams

3 out of 4 risers and main plant teams5 out of 8 entrance and vertical circulation teams

1 out of 2 designer and construction manager’s supervision teams

This gives a total of 20 teams with 190 relationships

Established Relationships

A total of 90 teams have established relationships with some of the other teams and

there are a total of 1687 established relationships

Established Relationships Indicator ER=1687/2126=0.79

The relationship fluctuation indicator FE = 0.81

This reflects a strong influence of established relationships throughout the project because

both ER and FE are comparatively high

Construction management strategy relies on established relationships between

construction management company and trade contractors

Relationship Quality Indicator for established relationships ranges from 0.40 to 0.98

Total Relationship Quality Indicator 1195/2126=0.56

Although there are a number of high values for individual Relationship Quality Indicators, the total Relationship Quality Indicator is no more than reasonably good because there are 439 boundary relationships in this project out of

possible 2126

The project organisation is not overly complex There are 31 time intervals out of a potential

maximum of 207

The intervals are relatively short in comparison to total project duration (prevent escalation

of problems when teams interact for a prolonged period)

Relationships configuration complexity indicator = 0.875

The past performance of the 104 teams over their previous 10 projects provides team Performance Variability Indicators which

range from 0.45 to 1.0

Performance Variability Indicator Rp=0.85

Historical records for projects using Construction Management gives

External Interference Indicator = 0.52

Established Relationships ER=0.79

Relationship Fluctuation FE=0.81

Relationship Quality QR=0.56

Relationship Configuration CR=0.875

Performance Variability Rp=0.85

External Interference I=0.52

Project using Construction Management