LECTURE 2  Advise on the selection of contractors.

Project Organization  Validate payments.

 Oversee change control procedures.

 Advise on disputes.

 Monitor and assess overall client programmes and

cost plans (which may include items beyond the
scope of the main contract or consultant's
appointments).

 Advise on the transition from construction to

occupation.

 Report to the client.

Obligations to the Public

-Representation of
Qualifications and Availability
-Legal Compliance
-Fair Competition
CONSTRUCTION MANAGER -Public Contracts
-Safety
 Help the client develop their preliminary business
case and initial strategic brief.
Obligations to the Client
 Advise on the selection and appointment of the -Client Service
consultant team (and perhaps to manage the -Conflicts of Interest
appointment process). -Fair Compensation
 Help the client to organise themselves and identify
the roles and responsibilities of client Obligations to the Profession
representatives, champions and user panels. - Release of Information
- Industry Standards
 Issue information and instructions on behalf of the - Professional Development
client. - Integrity of the Profession
 Develop a project execution plan, including
selection of procurement route and contracts. 5 Areas of Potential Liabilities of a Construction
Management Professional
 Contribute to risk management exercises.

 Contribute to value management exercises. Design Deflects

- No direct Control
 Contribute to design reviews. - Potentially not for the defect but for failure to
discover design defect
Cost Estimates Technical Competence:
- Liable for guaranteed fixed cost but penalties may
only be to the effect of forfeiting remaining fees Should have a full working knowledge of all technical
Scheduling & Coordination aspects of project management.
- Liable for failure to detect faulty schedules by
- Project Management Success
others & for schedules the CM prepared himself
- Project Structures
Inspection
- Quality
- Liable only for defects that could not be discovered
by even reasonable care and diligence. - Cost & Finance
Payment Applications - Start-Up
- Liable for negligence in payment applications which - Interested Parties
delays the projects and for over payments made. - Scope & Deliverables
- Project Organization
CM AS THE PROJECT LEADER - Procurement & Contract
- Project Requirements & Objectives
QUALIFICATIONS OF A CONSTRUCTION MANAGEMENT - Risk & Opportunity
PROFESSIONAL - Teamwork
- Contextual expertise - Resources
- Behavioural Competencies
- Changes
- Technical Competencies
- Close-out
Contextual Expertise: - Communication
- Control & Reports
Has established expertise within expertise within a specific - Info and Documentation
domain or context, developed over years of experience and - Time & Project Phases
good foundational and professional education - Problem Resolution
- Project, Program and Portfolio Orientation
- Project, Program and Portfolio Implementation
- Health, Security, and Safe Environment PRO CM OPPORTUNITIES
- Systems, Products and technology
THE INTERNATIONAL CONSTRUCTION PROJECT
- Personnel Management
MANAGEMENT ASSOCIATION
- Business, Finance and Legal

Behavioral Competence: What is the ICPMA?

Should not only possess hard skills but soft skills as well. The ICPMA is a unique worldwide organization that spreads
Values and character are foundational requirements for best practice in construction and project management
leadership and management positions. throughout its membership. Initially founded in 2001 in
Cannes, it is a modern and dynamic forum, providing
- Leadership opportunities to network with other professionals and
- Negotiation academics and to engage in new business and research on a
- Efficiency global basis.
- Openness
- Ethics
TOP 3 PROJECT MANAGEMENT ORGANIZATIONS WITH
- Consultation
CERTIFICATIONS
- Engagement & Motivation - Project Management Institute
- Assertiveness - International Project Management Association
- Self-Control - Association for Project Management
- Reliability
-
-
Creativity
Relaxation  
- Conflict & Crisis ORGANIZATIONS WITH CONSTRUCTION MANAGEMENT
RELATED CERTIFICATIONS
- Results Orientation
- Construction Management Association of America
- Values Appreciation
- American Institute of Constructors
 - Design-Build Institute of America
- DTI – Construction Industry Authority of the
Philippines

ORGANIZATIONS WITH SPECIALIZED CERTIFICATIONS

- Association for the Advancement of Cost
Engineering International
- American Society of Professional Estimators
- Project Management Institute
- US Green Building Council
- Philippine Green Building Initiative
- Philippine GREEN Building Initiative
- American Society of Heating, Refrigerating, and Air-
Conditioning Engineers, Inc

DTI-CIAP-CMDF OFFERS LOCAL CERTIFICATION THRU THE:

ENHANCED CONSTRUCTION MANAGERS’ TRAINING &
CERTIFICATION PROGRAM (ECOMTCP)

“With this road map, the construction industry aims to grow

its contribution to the economy fromjP2.3 trillion in 2018 to
P130 trillion cumulatively by 2030. This value is 325 percent
larger than the P43- trillion projected growth without a road
map. Its job opportunities for construction work force from
4 million ¡n 2018 to 7 million by 2030. That’s 3 million jobs
expected to be created.”
THE PHILIPPINE CONSTRUCTION INDUSTRY ROAD MAP
2020-2030

ACTIVITIES YOU MAY EXPECT THIS SEMESTER

 COST ESTIMATES

 PROJECT SCHEDULE

 PREPARATION OF BID

 GROUP WORKS
Introduction to Construction Management See ‘Cost of Construction”.
Construction Management
• Construction management happens on the very A professional management practice applied to
inception of the project all the way to its construction projects from project inception to completion
completion for the purpose of controlling time, cost, scope, and quality.
• 5 phase of construction project life cycle
Construction Management Plan
OVERVIEW The written document prepared by the CM, which clearly
identifies the roles, responsibilities and authority of the
The Construction Industry project team and the procedures to be followed during
construction.
- Sector of National economy engaged in preparation
of land and construction, alteration, and repair of Construction Manager (CM)
building, structures, and other real property An organization or individual with the expertise and
- Generally rank second to manufacturing in the resources to provide Construction Management services.
industry sector
- Driver for Economic Growth Construction Schedule
A graphic, tabular or narrative representation or depiction
of the time of construction of the project, showing activities
Construction Management and duration of activities in sequential order.
A professional management practice applied to
construction projects from project inception to completion Contract Administration
for the purpose of controlling time, cost, scope, and quality. The function of implementing the terms and conditions of a
contract, based upon established systems, policies, and
Construction Management Plan procedures.
The written document prepared by the CM, which clearly
identifies the roles, responsibilities and authority of the Contractor
project team and the procedures to be followed during The organization or individual who undertakes responsibility
construction. for the performance of the work, in accordance with plans,
specifications and contract documents, providing and
Construction Manager (CM) controlling the labor, material and equipment to accomplish
An organization or individual with the expertise and the work.
resources to provide Construction Management services.
Construction Contract Documents
Construction Schedule The documents which provide the basis for the contract
A graphic, tabular or narrative representation or depiction entered into between parties. They typically include the bid
of the time of construction of the project, showing activities documents updated to reflect the agreement between the
and duration of activities in sequential order. owner and the contractor(s).

Contract Administration Cost Control

The function of implementing the terms and conditions of a The function of limiting the cost of the construction project
contract, based upon established systems, policies, and to the established budget based upon owner-a pp roved
procedures. procedures and authority.

Contractor Cost Management

The organization or individual who undertakes responsibility The act of managing all or partial costs of a planrng, design,
for the performance of the work, in accordance with plans, and construction process to remain within the budget.
specifications and contract documents, providing and
controlling the labor, Cost of Construction
All costs attributed to the construction of the project,
Construction Budget including the cost of contracts with the Contructor(s),
The sum established, normally during the pre-design or construction support items, general condition items, all
design phase as available tor construction of the project. purchased labor, material

Construction Cost
4C’s OF THE CONSTRUCTION INDUSTRY People in Construction

COLLOSAL – size and scale  Project Owner

COMPLEX- Form and Structure
 Direct Primary Players
CRUCIAL – Socio- Economic Contributions Architects
Engineers
COLLABORATIVE - Required approach to work Contractors

 Direct Secondary Players

SCOPE OF THE CONSTRUCTION INDUSTRY Subcontractors
Suppliers
- Building Construction Vendors
- Heavy Construction
- Industrial Construction  Indirect Players Level 1
Building Inspectors
CONSTRUCTION SECTORS
Utility Companies
- Buildings ( residential) Insurance
- Buildings (Non-residential)
- Industrial  Indirect Players Level 2
- Heavy Engineering Government
Financial Institutions
Principal Player: THE OWNER Trade Associations

- Needs and Requirements

- Determination of Scope CONSTRUCTION PROJECT LIFE CYCLE
- Overall budget
- Funding and Payments  PREDESIGN
- Charter
- Requirements
TYPES OF OWNERS - Needs
PRIVATE OWNERS - Scope
PUBLIC OWNERS - Definition
- Site Selection
Direct Players - Designer
- Selection
 Design Propessionals - Building Information Management
- Architects
- Engineers  DESIGN
- Landscape Architects - Design Drawings
- Interior Designer - Specifications
- Specification Writers - Construction Reviews
- Pre-Qualification
 Construction Professionals
- Prime/General Contructors  PROCUREMENT
- Specialties - Bid Packaging
- Construction Managers - Bid Conference
- Quantity Surveyors - Detailed Cost Estimates
- Trades and Subs - Detailed Schedule
- Contractor Selection
Indirect Players - Permits
- Government/Authorities
- Utility Companies  CONSTRUCTION
- Financial Institutions - Construction
- Public - Quality Control
 - Safety Management 1.2 Introduction to Construction Management
- Progress payments •The Value of a Construction Management Professional
Project Deliverable •Practice, People, Process
- Building •Functional Areas
- Infrastructure •The Goal
- Plants •The Focus
•Project vs Construction Management
 POST-CONSTRUCTION
- Occupancy Permit 1.3 Professional Practice of a Construction Manager
- Testing and Commissioning •What is professional ethics?
- Closing •The Construction Management
- Turnover •Professional’s obligations to the
- Public
- Client
- Profession
CONSTRUCTION PROJECT LIFE CYCLE - Environment
1. Initiate •Potential Liabilities
2. Plan
3. Execute
4. Monitor & Control INTERACTING AND COMPETING CONSTRAINSTS
5. Closeout
How Much? COST
How Long? TIME
How Well? QUALITY
THE CONSTRUCTION PROJECT ENVIRONMENT

PROBABILITY OF OUTCOMES
- Worst to Best LESSON 2
INTRODUCTION TO CONTRUCTION MANAGEMENT
HIGH LEVEL OF COMPLEXITY
- Enterprise Environmental Factors
- Organizational Process Assets THE VALUE OF A CONSTRUCTION MANAGEMENT
- Organizational System and Structures PROFESSIONAL
- Contextual Expertise
HIGH DEGREE OF UNCERTAINLY - Project Leadership
- Time and Productivity
- Location, Climate and Weather What is Construction Management?
- Factors Affecting Costs The Professional Practice of leading people and managing
- Interactions of Constraints and People processes as applied to the planning, design and execution
of construction projects from inception to completion for
1.1 The Construction Industry the purpose of controlling Scope, Time Cost And Quality
• Characteristics Safety for the ULTIMATE PURPOSE OF MANAGING RISKS.
• Scope - Practice
• Sectors - People
• Principal player - Processes
• Direct players
• Indirect players Functional Areas
• Organization 1. Building Information Management
• Projects in Construction 2. Risk management
- Project life cycle 3. Project Management
- PM life cycle - Cost
- Project Environment - Schedule
- Interacting Constraints - Contract Administration
- Quality
- Safety
- Sustainability
The Goal of Construction Management
Successful delivery of a construction project all throuhouts
its project life cycle.
- Scope is completed
- Safety: Minimal Zero Accidents
- Cost: Within the Budget
- Schedule: Within the Schedule

The Focus of Construction Management

Delivery of Professional Services

Project Management
General practice as it applies to all types of projects
Provides baseline processes and knowledge areas
Project Management Cycle

Construction Management
Project Management as it specifically applies to the AEC
Industry
Processes and knowledge areas and processes specific to
the industry
Project Life Cycle

NOT LIMITED TO CONSTRUCTION PHASE