Construction Management

Ar. Vivek Kumar

Assoc. Professor
Aim , Objective & Function of CM
Aim

Optimum utilization of human , material , financial & time

resources for economical , safe & timely completion of
construction project.

Objectives

Timely construction of construction works within

budgeted amount.
Use of management techniques for proper scheduling
of various items of work, procurement of stores & cash
flow of fund,
Aim , Objective & Function of CM
Objectives
To evolve an organization which should be
competent, effective & should work as a cohesive
team.
To lay down responsibilities & delegation of authorities
for members of organization.
Create opportunities for on the job training for junior
staff & for discussion/exchange of ideas on technical
matters among the senior staff for correct execution of
work.
Every one should feel part of the team & give out his
best to evolve a reputation for high quality
workmanship.
Aim , Objective & Function of CM
Objectives
Provide safe & satisfactory working conditions for all
persons at work site with adequate remuneration.

Function

The function can be called as the various management

steps to achieve the aim of safe , economical & timely
completion of project.

Various functions in the sequence of action are as under

Aim , Objective & Function of CM
Function.

a) Planning

The planning process usually cover six steps:

Setting goals
Analysing problems & opportunities
Identifying & evaluating alternatives
Choosing a plan
Implementing the programme
Controlling & judging the results of implementation
Aim , Objective & Function of CM
Function.

There are basic characteristics of planning:

The plan should be specific & measurable

Should have definite goals
Definite results
Plans should be time-oriented
Plan should be attainable
Plan should be mutually supportive
Aim , Objective & Function of CM
Function.

b) Organizing
After having planned & time scheduled items of work ;
next requirement is to create an organization for
execution of plan.

Organizing is the second major managerial function. It is

the process of structuring a companys resources-its
personnel & materials-in a way that will allow it to achieve
its objectives.
Aim , Objective & Function of CM
Function.

b) Organizing.
Organizational structural will depend on type of work &
the time schedule.

On completion of organization chart , the next step is to

lay down the duties & responsibilities of each staff
member.
Aim , Objective & Function of CM
Function.

c) Staffing
Staffing is third major organizational function to recruit the
personal with requisite qualification & experience to carry
out the duties allotted to them.

d) Leading
Leading is the fourth basic managerial function. It is
defined as the act of guiding & influencing other people to
achieve goal.
Leading involves leadership ,communication & motivation
skills.
Aim , Objective & Function of CM
Function.
e) Controlling-
After having made the plan & schedule of works and
having staffed and briefed the organizational set up to
execute the allotted task, it is very essential to monitor
the actual progress achieved and the cost incurred.
Match the actual progress and expenditure with the
planned schedules of progress & the cost estimates.
In case of variation in actual & planned progress or
expenditure first step is to analyze the reasons for the
variation & then initiate corrective steps , which may
involve even the change in plan , training or replacement
of persons
Construction stages of project-
Every construction project large or small passes through
distinct stages as shown.

Design

Conception
& Tendering
Sanction

Commissioning &
Maintenance Execution
Construction stages of project-
a) Conception & Sanction stage-
i) Initiation of demand-
The demand of work may originate from end users who
may be family or a society or an organization.
The demand for works may also be on the initiation of an
entrepreneur or may be part of economic & development
policies of the government.
ii) Acceptance of necessity & Issue of Administrative
approval
The demand initiated is examined by competent
authority, which may be head of family, municipal
corporation, Board of directors of a corporation & in case
of Government organization it may be officer having
requisite financial powers.
Construction stages of project-
b) Design stage
In case of Government departments planning & design may
be carried out in house, however in case of projects where
know how or expertise are not available in house it may also
following procedure, which is generally adopted by corporate
sector ie engage an Architect firm base on previous
experience or hold a competition among the leading architect
firms for preparation of concept plan for the project. All
competitor are provided with the site data & the requirements
are explicitly listed.

After selection of Architect firm an agreement is signed

between the architect firm & owner agency & architect is
made responsible for complete design, public health,
electrification & any other specialist required depending on
the scope of project & for working out specifications.
Construction stages of project-
Architect is responsible for getting the working drawings
approved from the controlling authority of the area where
the project is located & which generally is the municipal
corporation.

Finally Architect is to prepare the Tender document for

the project , all these action are carried out by architect in
close coordination with owner agency.
Construction stages of project-
c) Tendering stage-

This action is taken by the owner agency based on

drawings, specifications & Bill of quantities (BOQ) &
tender document prepared by the architect firm.

At many a times the responsibility of floating the tender &

scrutiny of tenders received back is also delegated to
Architect , which have to carry out this in close
coordination with user agency.

The purpose of this stage is to appoint a contractor for

execution of project at most suitable terms & conditions
of cost & completion time.
Construction stages of project-
d) Execution stage

This is final stage for which all preparations have been

made , in this stage actual construction is undertaken as
per the contract agreement. This is very important stage
& close coordination between Architect , Project Manager
& Contractor is very essential to endure quality & speed
of progress.
Construction stages of project-
d) Commissioning & Maintenance-

Commissioning & Maintenance on completion of project

Architect firm issues a completion certificate with list of
defect if any.

The maintenance period is reckoned from the date of

completion certificate. Architect firm also supply the two
sets of As-built drawings to the client for their record &
further action if any.

Contractor is responsible for maintenance of assets

created under the project for a period of 12 calendar
months.
Construction stages of project-
The contractors security deposit is released only on
successful completion of maintenance period.
Contract & its Type
An agreement enforceable by law is called contract.

Following are the various types of contracts

1) Item rate contract

2) Percentage rate contract
3) Lump-sum contract
4) Labour contract
5) Material supply contract
6) Cost plus percentage rate contract
7) Cost plus fixed fee contract
Contract & its Type

1) Item rate contract

In Item rate contract contractor is required to quote rate for
individual item of work on the basis of schedule of
quantities furnished. The amount to be received by the
contractor , depends upon the quantities of work actually
performed. The payment to the contractor is made on the
basis of the detailed measurement of different items of
work actually executed by him.

Merits
i) This method ensures a very detailed analysis of cost &
payment to the contractor & also is based upon detailed
measurement of each item actually done , so this method
is more scientific.
Contract & its Type

ii) Changes in drawings & quantities of individual item

can be made as per requirements within agreed limits.
iii) There is no urgency of providing detailed drawings at
the time of awarding the contract. It can be prepared later
on.
Demerits
i) The total cost of work can only be known after
completion. As such the owner may face financial
difficulty if the final cost is substantially high.
ii) Additional staff is required to take detailed
measurement of work.
iii) The scope of saving with use of inferior quality
materials may prompt the contractor to do so.
Contract & its Type
Percentage rate contract
In this form of contract , the department draws up Item rate
tender ie bill of quantities with rate , amount & total
amount. The contractors are required to offer to carry out
the work as per with the rates shown in the specific price
schedule or some percentage above or some percentage
below the rates indicated in the schedule of work attached
with the tender. The percentage above or below or at par is
applicable on the overall cost of the work also.

Merits
i) The ranking amongst the contractors is easily known just
on the opening of the tenders.
ii) As there is no provision to quote contractors own rate for
an individual item , benefit due to increased quantity
Contract & its Type
Merits
With a beneficial rate can not be availed by the
contractor. The chance of unbalanced tender gets
eliminated.

Demerits

i) A contractor is required to write down the percentage

above or at par or below, it is very easy to write such a
rate in few minutes before the time of submission of the
tender.
Contract & its Type
Lump-sum contract

In this type of contract , a contract is required to quote a

fixed sum for execution of work complete in all respect in
the stipulated time according to the drawing, design &
specifications supplied to him with tender.

Merits
i) As the total cost of the work known before hand, the
owner can arrange the fund in time.
ii) Detailed measurement of work done are not required
except in respect of addition & alterations.
Contract & its Type
Demerits

i) The owner aims to get maximum work out of money he

spends whereas the contractor tries to get maximum profit
out of money he receives , this causes conflict in interests.

Labour contract
In labour contract , the contract undertakes contract for the
labour portion only excluding the material which are
arrange & supplied by work site by the owner.
Merits
i) The work done through labour contract is superior
quantity as better quantity materials are arranged by the
owner.
Contract & its Type
ii) The overall cost of construction may be less , as no
profit is paid on the cost of materials.

Demerits

i) The owner will have to remain vigilant & watchful over

the material used , the contractor may overlook the
material wastage involved.
ii) A large storage area is required to store the various
kinds of materials to be used in the construction under
constant guarding.
Contract & its Type
Material supply contract
In this type of contract , a contractor has to offer his rate
for supply of the required quantities of materials.

Merits
i) Payment is very prompt , so the contractor try to take
supply order at less profit, resulting in low cost of
material.
ii) The owner has nothing to worry for any loss, breakage,
charges during transit.

Demerits
i) Constant control over quality of materials received in
several batches & at different times is required.
Contract & its Type
Cost plus percentage rate contract

In this type of contract , a contractor agree to take the work

of construction on actual cost of work plus on agreed
percentage in addition for his service.

Merits

i) It is particularly suitable when work can not be executed

by other type of contracts due to uncertainty & fluctuations
in the market rates of labour & materials.
Demerits
i) The contractors only aim is to make the cost of the project
as high as possible in order to seek greater margin of profit.
Contract & its Type
Cost plus fixed fee contract
In this type of contract, the contractor is paid by the
owner an agreed fixed lump-sum amount over & above
actual cost of the work.
Role of Architect in Construction Management
a) Conception & sanction stage

Preparation of concept plan for project keeping in mind

the clients requirement & Bye laws of the area in which
work is situated.

b) Design stage

On approval of concept plan , Architect to finalize the

specifications in consultation with client & prepare
submission drawings in consultation with specialists such
as structural engineer , electrical engineer & public health
engineer etc. and submit the drawing to the competent
authority.
Role of Architect in Construction Management
c) Tendering stage
In consultation with client it is decided as to the type of
contract to be floated ie lump sum contract or item rate
contract & accordingly Architect gets the draft tender
document prepared along with working drawing.

d) Execution stage

Architect recruits a team of engineers to supervise the

work on his behalf. He appoints the leader of the team
as his representative at work site with authority to deal
with contractor and Project Manager on day to day
basis on his behalf.
Role of Architect in Construction Management
Architect frequently visits the site to personally
approve the samples of materials, monitor the quality
of workmanship & progress of contract.
Architect with his team of supervisors scrutinises the
Running bills submitted by the contractor & forward
the same to Project Manager for payment.

e) Commissioning & maintenance stage

Architect checks that the work as per contract &
drawing have been completed & issues the completion
certificate to Project manager with list of defect if any.
Provide two set of As built drawing to owner agency
on completion of work.
Role of Architect in Construction Management
Liaise with civil authorities for issue of completion
certificate & for providing water , electricity metered
connections as applicable.
Issue clearance for refund of Security deposit of
contractor on successful completion of maintanence
period.