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Construction Management: From Wikipedia, The Free Encyclopedia

Construction management refers to both the study and practice of managing the construction industry as well as a business model where a party provides both design and construction advice under a single contract. There are typically three parties involved in a construction project - the owner, designer, and builder. A construction manager can serve as an additional party to advise the owner and act as a liaison between the designer and builder. Construction management degrees and programs cover a range of topics from general management skills to technical construction knowledge.

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135 views5 pages

Construction Management: From Wikipedia, The Free Encyclopedia

Construction management refers to both the study and practice of managing the construction industry as well as a business model where a party provides both design and construction advice under a single contract. There are typically three parties involved in a construction project - the owner, designer, and builder. A construction manager can serve as an additional party to advise the owner and act as a liaison between the designer and builder. Construction management degrees and programs cover a range of topics from general management skills to technical construction knowledge.

Uploaded by

arun77c
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Construction management

From Wikipedia, the free encyclopedia

Jump to: navigation, search

Construction Management refers either to the study and practice of the managerial and
technological aspects of the construction industry (including construction, construction
science, construction management, and construction technology), or to a business model
where one party to a construction contract serves as a construction consultant, providing
both design and construction advice.

The Construction Management Association of America (CMAA) says the 120 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 which includes specific activities like defining the responsibilities and
management structure of the project management team, organizing and leading by
implementing project controls, defining roles and responsibilities and developing
communication protocols, and identifying elements of project design and construction
likely to give rise to disputes and claims.

Contents
[hide]

• 1 Study and practice


• 2 Business model
o 2.1 Design Build Contracts
o 2.2 Agency CM
o 2.3 CM At-Risk
• 3 Regulation
• 4 External links
• 5 References

• 6 See also

[edit] Study and practice


Construction management education comes in a variety of formats: formal degree
programs (two-year associate degree; four-year baccalaureate degree, masters degree,
engineer degree, doctor of philosophy degree, postdoctoral researcher); on-job-training;
and continuing education / professional development. For information on degree
programs, reference ACCE, the American Council for Construction Education, or ASC,
the Associated Schools of Construction.
The recognized institute for construction management in Great Britain is The Chartered
Institute of Building in Ascot.

According to the American Council for Construction Education (the academic accrediting
body of construction management educational programs in the U.S.), the academic field
of construction management encompasses a wide range of topics. These range from
general management skills, to management skills specifically related to construction, to
technical knowledge of construction methods and practices. There are many schools
offering Construction Management programs, including some that offer a Masters degree.
A comprehensive list can be found at
http://www.usnews.com/usnews/edu/college/tools/search.php#
[1]

[edit] Business model


Typically, the construction industry includes three parties: an owner, a designer (architect
or engineer), and the builder (usually called the general contractor). Traditionally, there
are two contracts between these three parties as they work together to plan, design, and
construct the project. The first contract is the owner-designer contract, which involves
planning, design, and construction administration. The second contract is the owner-
contractor contract, which involves construction. An indirect, third-party relationship
exist between the designer and the contractor due to these two contracts.

An alternate contract or business model replaces the two traditional contracts with three
contracts: owner-designer, owner-construction manager, and owner-builder. The
construction management company becomes an additional party engaged in the project to
act as an advisor to the owner, to which they are contractually tied. The construction
manager's role is to provide construction advice to the designer, on the owner's behalf,
design advice to the constructor, again on the owner's behalf, and other advice as
necessary.

[edit] Design Build Contracts

Main article: Design-build

Recently a different business model has become more popular. Many owners -
particularly government agencies have let out contracts which are known as Design-Build
contracts. In this type of contract, the construction team is known as the design-builder.
They are responsible for taking a concept developed by the owner, completing the
detailed design, and then pending the owner's approval on the design, they can proceed
with construction. Virtual Design and Construction technology has enabled much of the
ability of contractors to maintain tight construction time frames.

There are two main advantages to using a design-build contract. First, the construction
team is motivated to work with the design team to develop a design with constructability
in mind. In that way it is possible for the team to creatively find ways to reduce
construction costs without reducing the function of the final product. The owner can
expect a reduced price due to the increased constructability of the design.

The other major advantage involves the schedule. Many projects are given out with an
extremely tight time frame. By letting out the contract as a design-build contract, the
contractor is established, and early mobilization and construction activities are able to
proceed concurrently with the design. Under a traditional contract, construction cannot
begin until after the design is finished, the project is bid and awarded, and the team can
mobilize. This type of contract can take months off the finish date of a project.

[edit] Agency CM

Construction Cost Management is a fee-based service in which the Construction Manager


(C.M) is responsible exclusively to the owner and acts in the owner's interests at every
stage of the project. The construction manager offers advice, uncolored by any
conflicting interest, 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.
• Cashflow Management.

Comprehensive management of every stage of the project, beginning with the original
concept and project definition, yields the greatest possible benefit to owners from
Construction Management.

[edit] CM At-Risk

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), in most
cases. The construction manager acts as consultant to the owner in the development and
design phases, (often referred to as "Preconstruction Services"), but as the equivalent of a
general contractor during the construction phase. When a construction manager is bound
to a GMP, the most fundamental character of the relationship is changed. In addition to
acting in the owner's interest, the construction manager must manage and control
construction costs to not exceed the GMP, which would be a financial hit to the CM
company.

CM "At Risk" is a global term referring to a business relationship of Construction


contractor, Owner and Architect / 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 somewhat comparable to a "Low Bid" contract, but with a
number of adjustments in responsibilities required by the CM. Aspects of GMP
agreements will be elaborated below. The following are some primary aspects of the most
potential benefits of a CM At Risk arrangement:

Budget management: Before design of a project is completed ( 6 months to 1-1/2 years of


coordination between Designer and Owner), the CM is involved with estimating cost of
constructing a project based on hearing from the designer and Owner (design concept)
what is going / desired to be built. Upon some aspect of desired design raising the cost
estimate over the budget the Owner wants to maintain, a decision can be made to modify
the design concept instead of having to spend a considerable amount of time, effort and
money re-designing and/or modifying completed construction documents, OR, the Owner
decides to spend more money or obtain higher financial support for the project. To
manage the budget before design is done, construction crews are mobilized, CM is
spending tens of thousands per week just having onsite management, major items are
purchased, etc, etc,...is an extremely more effcient use of everyone's time, effort,
Architect / Designer's costs, and the CM's General Conditions costs, AND delivering to
the Owner a design within his budget.

Selecting constructor: ( to be elaborated )

Maintaining positive working relationships among the Owner, Architect / Designer and
Constructor: ( to be elaborated )

Maximizes the awareness among Owner, Architect / Designer and CM of all parties
needs, expectations in order to perform their part of the project in the most efficient
manner. ( to be elaborated )

[edit] Regulation
In the UK the industry is regulated though Construction Design Management regulations,
which prevent incidents on construction sites and civil engineering structures once
competent

[edit] External links


• American Council for Construction Education
• Associated Schools of Construction
• Construction Management Association of America
• National Institute of Construction Management and Research, India
• Construction Manager Certification Institute
• US Department of Labor, Occupational Outlook Handbook
• Full list of accredited graduate and undergraduate Project Management Degrees in
the US and abroad. (list maintained by the International Project Management
Commission)
• Graduate course Construction Management in India
• Construction Specifications Institute
• Texas A&M University - Department of Construction Science
• http://cife.stanford.edu/
• http://cm.csuchico.edu/
• Colorado State University Department of Construction Management

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