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Module 1

18ENG85 JUL-AUG 2022


What are the characteristics of Management?
The characteristics of management encompass a range of attributes that define effective management
practices across various fields, including construction project management. These characteristics help
ensure that projects and organizations operate efficiently and achieve their goals. Here are the key
characteristics:

Goal-Oriented
Objective Setting: Management involves setting clear and achievable goals.

Direction: Provides a sense of direction for all organizational activities.

Organized Activities
Systematic Approach: Management ensures that tasks are organized and systematic.

Coordination: Involves coordinating resources and activities to achieve objectives.

Decision-Making
Problem-Solving: Management involves making decisions to solve problems and address issues.

Strategic Planning: Decisions are made based on strategic planning and analysis.

Dynamic Function
Adaptability: Management is adaptable to changing environments and conditions.

Flexibility: It involves flexibility to adjust plans and processes as needed.

Continuous Process
Ongoing Activity: Management is a continuous process that does not end with achieving goals.

Monitoring and Improvement: Involves regular monitoring and continuous improvement of


processes.

Resource Management
Efficient Utilization: Ensures efficient use of resources, including human, financial, and material.

Optimization: Focuses on optimizing resource allocation and usage.

Leadership and Motivation


Guidance: Management provides guidance and leadership to team members.

Motivation: Involves motivating employees to achieve high performance and commitment.

Interpersonal Skills
Communication: Effective management involves clear and open communication with all
stakeholders.

Relationship Building: Building and maintaining good relationships within the team and with
stakeholders.

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Accountability
Responsibility: Managers are responsible for the outcomes of their decisions and actions.

Transparency: Involves maintaining transparency in operations and decision-making.

Performance-Oriented
Efficiency: Management focuses on achieving results efficiently.

Effectiveness: Ensures that the outcomes meet the desired goals and standards.

Innovation
Creativity: Encourages innovative thinking and problem-solving.

Change Management: Involves managing and implementing changes effectively.

Ethical Practices
Integrity: Management involves adhering to ethical principles and practices.

Corporate Social Responsibility: Emphasizes the importance of social responsibility in business


operations.

These characteristics collectively contribute to effective management, ensuring that organizations and
projects are guided, organized, and operated in a manner that achieves their objectives and fosters
continuous improvement.

What are the functions of Management?

Functions of Management in Construction Project Management

Defining the Requirement of Work (Initiation Process)


Objective Setting: Establishing clear project goals and objectives.

Feasibility Analysis: Assessing the viability and feasibility of the project.

Stakeholder Identification: Identifying and engaging key stakeholders.

Project Charter: Creating a project charter to formally authorize the project.

Establishing the Extent of Work (Planning Process)


Scope Definition: Outlining the project scope, including deliverables and boundaries.

Task Breakdown: Developing a work breakdown structure (WBS) to detail all tasks.

Resource Planning: Identifying and allocating necessary resources.

Budgeting: Estimating costs and creating a project budget.

Scheduling: Developing a project timeline and schedule.

Risk Management: Identifying potential risks and planning mitigation strategies.

Communication Plan: Establishing communication protocols and plans.

Monitoring the Progress of the Work (Execution Process)


Resource Allocation: Assigning and managing resources to project tasks.

Task Execution: Performing the work according to the project plan.

Quality Assurance: Implementing quality control measures to ensure standards are met.

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Progress Tracking: Monitoring project progress and performance.

Stakeholder Communication: Keeping stakeholders informed through regular updates.

Adjusting Deviations from the Plan (Controlling Process)


Performance Measurement: Comparing actual performance against the project plan.

Variance Analysis: Identifying variances from the planned schedule, budget, and scope.

Change Management: Implementing change control processes to manage project changes.

Risk Management: Addressing and mitigating emerging risks.

Corrective Actions: Taking corrective actions to address deviations and keep the project on track.

Completion of the Project (Closing Process)


Final Deliverables: Completing and handing over all project deliverables.

Quality Verification: Conducting final quality checks to ensure all requirements are met.

Stakeholder Acceptance: Obtaining formal acceptance of the project from stakeholders.

Documentation: Finalizing and archiving project documentation and records.

Contract Closure: Terminating contracts and releasing resources.

Lessons Learned: Documenting lessons learned and best practices for future projects.

These functions collectively ensure that a construction project is initiated, planned, executed,
monitored, controlled, and closed in an organized and efficient manner.
Elaborate types of Organisation structures. Suggest a Organisation chart for a
small construction
Line organisational structure
Line organisation is the simplest and oldest form of organisation structure.

It is also called military type of organization.

Under this system, authority flows directly and vertically from the top of the managerial
hierarchy ‘down to different levels of managers and subordinates and down to the operative
level of workers.

Advantages of Line Organization

1. The personnel in Line organization are directly involved in achieving the objectives of the
organization.

2. Clear identification of authority, accountability and responsibilities.

3. Simple to understand and simple to operate.

4. Communication is fast and easy.

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5. Especially useful when the company is small in size, it provides for greater control and discipline
in the organization.

6. It makes rapid decisions and effective coordination possible. So it is economic and effective.

Disadvantages of Line Organization

1. It is a rigid and inflexible form of organization.

2. Efficiency of the structure depends heavily on the person in authority

3. No Specialization.

4. There is a tendency for line authority to become dictatorial.

5. It overloads the executive with pressing activities so that long-range planning and policy
formulation are often neglected.,

6. May encourage favoritism.

7. It does not provide any means by which a good worker may be rewarded and a bad one
punished.
Line and staff organisational structure
Variation of line organization.

The functional specialists (STAFF)are added to the line.

Staff-is basically advisory in nature and usually does not possess any command authority over
line managers.

They help the line managers by taking up workload of specific functions.

Line managers- direct responsibility for accomplishing the objectives of the enterprise.

Type of Staff:

1. Personal Staff-personal assistants, advisors

2. Specialized Staff-account manager, research, legal etc

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Advantages of Line and Staff Organization

1. Division of Labour: Line officers can concentrate mainly on then production/implementation as


the work of planning and investigation is performed by the staff- division of responsibility.

2. Specialization: Specialization provides for experts advice and efficiency in management.

3. Large Scale Production: Works better for larger organizations.

4. Flexibility: The system is flexible as new activities may be undertaken by the staff without
forcing early adjustments of line arrangements.

5. Improved Efficiency

Disadvantages of Line and Staff Organization

1. Multiplicity of Authority: Confusion and conflict may arise between line and staff.

2. Indiscipline: Staff generally advise to the lines, but line decides and acts. Therefore the staffs
often feel powerless.

3. Delay in decision making.

4. Shifting of responsibility: Although expert advice is available it reaches the workers through
the managers. Here it is liable to create a greater deal of misunderstanding and
misinterpretation.

5. Costly: Since staff specialists demand higher payments, it is expensive.


Staff or functional authority organisational structure.
Functional organisation refers to the organisation which is divided into a number of functions such
as finance, production, sales, personnel, office and research and development and each of
functions are performed by an expert.

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So it has Line authority, staff authority and functional authority in this type of organisation.

Advantages of Line and Staff Organization

1. One of the most popular form of structure which works very well for large organisations.

2. Each manager is an expert in his field. He has to perform a limited number of functions. So
complete specialization in functional organisation.

3. The greater degree of specialisation leads to improvement in quality of product.

4. Since experts get sufficient time for creative thinking, planning and supervision are made
efficient.

5. It increases the work satisfaction for specialists who presumably do what they like to do.

Disadvantages of Line and Staff Organization

1. Each worker receives instructions not only from one superior, but also from a group of
specialists.

2. Since there is no direct boss or controller of the workers, co-ordination is hard to achieve.

3. Since control is divided, action cannot be taken immediately.

4. The conflicts of leadership may arise.

5. Expensive as each function requires its own team.


Committee organisational structure.
Committee is a group of individuals formed permanently or temporarily for a particular purpose
through free interchange of ideas.

It is a Variation of line and staff organization, where instead of staff, you have different
committees for different functions.

Committees have control and say in decision making unlike the staff members.

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Advantages of Line and Staff Organization

1. Pooling of ideas,

2. Co-ordination,

3. Motivation through participation,

4. Representation of interest groups,

5. Easy communication,

6. No concentration of power,

7. A tool of management for development.

Disadvantages of Line and Staff Organization

1. Slow Decisions

2. Divided responsibility
Matrix organisational structure
A matrix organisation, also referred to as the “multiple command system” has two chains of
command.

One chain of command is functional in which the flow of authority is vertical.

The second chain is horizontal depicted by a project team, which is led by the project, or group
manager who is an expert in his team’s assigned area of specialisation.

Since the matrix structure integrates the efforts of functional and project authority, the vertical
and horizontal lines of authority are combination of the authority flows both down and across.

Advantages of Line and Staff Organization

1. Strong product/project co-ordination: Since there is both vertical and horizontal


communication it increases the coordination and this coordination leads to greater and more
effective control over operations.

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2. Efficient use of support systems: Since the matrix organisation is handling a number of
projects, available resources will be used fully.

3. Improved environmental monitoring: It focuses the organisational resources on the specified


projects, thus enabling better planning and control.

4. As any department or division has to harness its effort towards accomplishment of a single
project, employees are effectively motivated.

Disadvantages of Line and Staff Organization

1. High administration cost: There is continuous communication both vertically as well


horizontally, which increases paper work and costs.

2. Potential confusion over authority and responsibility: Since, there is m ore than one
supervisor for each worker, it causes confusion and conflicts and reduce effective control.

3. High prospects of conflict.

4. Overemphasis on group decision making.

5. Excessive focus on internal relations.


For a small construction firm, the Line and Staff Organizational Structure is often a suitable choice.
This structure combines the simplicity of the line organizational structure with the specialized expertise
of staff functions, providing a balance between direct control and expert advice. Here’s a suggested
structure:

Line and Staff Organizational Structure


1. Top Management

CEO/Owner: Overall responsibility for the firm, strategic planning, and major decision-making.

Project Manager: Oversees multiple projects, ensures alignment with company goals, and
manages resources.

2. Line Departments

Construction Department

Site Supervisor/Foreman: Directly manages construction activities on-site, ensures work is


done according to plans and schedules.

Construction Workers: Perform various construction tasks, including carpentry, masonry,


plumbing, and electrical work.

Procurement Department

Procurement Officer: Manages the purchasing of materials and equipment, ensures timely
delivery and cost-effectiveness.

Finance and Administration Department

Finance Manager: Handles budgeting, financial reporting, and accounting.

Administrative Staff: Manage office functions, documentation, and support tasks.

3. Staff Departments

Engineering and Design Department

Architect/Design Engineer: Provides design expertise, creates blueprints and


specifications.

Structural Engineer: Ensures structural integrity and compliance with building codes.

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Quality Control and Safety Department

Quality Control Officer: Monitors construction quality, ensures adherence to standards.

Safety Officer: Implements and monitors safety protocols, conducts safety training.

4. Support Functions

Human Resources: Manages recruitment, training, and employee relations.

IT Support: Maintains technology infrastructure and support.

Benefits of Line and Staff Organizational Structure


Clear Hierarchy: Direct lines of authority ensure clear responsibility and accountability.

Expertise: Staff departments provide specialized knowledge and support, improving project quality
and efficiency.

Flexibility: Adaptable to changing project needs, as line managers can focus on core activities
while staff experts handle specialized tasks.

Efficiency: Streamlines operations by combining direct control with expert advice, enhancing
decision-making and problem-solving.

18ENG85 JAN-FEB 2023


State the life cycle stage of a project (construction project) and elaborate them.

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The Project Management Life Cycle of a Construction Project
The project management life cycle in construction typically consists of four distinct phases: Project
Conception and Initiation, Project Definition/Planning, Project Launch/Execution, and Project Closure.
Each phase encompasses specific tasks and responsibilities to ensure successful project completion.

1. Project Conception and Initiation


This phase involves the initial steps to define and start a project.

Defining Project Objectives and Need: Establish clear goals and the necessity of the project.

Feasibility Study: Assess the project’s viability, addressing questions of "why" and "how" the
project will be executed.

Appointing Project Manager: Designate a project manager to oversee and lead the project.

Financial Planning: Develop a financial plan, including funding sources and budget allocations.

Location and Site Selection: Choose a suitable site for the project, considering factors like
accessibility, environmental impact, and regulatory compliance.

2. Project Definition/Planning
This phase involves detailed planning to outline how the project will be executed.

Defining Scope of the Project: Clearly outline the project’s deliverables and boundaries.

Designing and Drawings: Create detailed designs and architectural drawings.

Cost Estimation: Estimate costs for all aspects of the project.

Defining Contract Terms and Conditions: Establish the terms and conditions for contracts.

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Permits and Approvals: Obtain necessary permits and regulatory approvals.

Scheduling: Develop a comprehensive project schedule, including timelines for each phase.

Selection of Contractors: Choose contractors based on criteria such as expertise, experience, and
cost.

Mobilization of Resources: Gather and prepare all resources needed for the project.

Preparation of Site: Prepare the site for construction, which may include clearing, grading, and
setting up temporary facilities.

3. Project Launch/Execution
This phase is where the project plan is put into action.

Execution:

Resource Allocation: Allocate resources, including labor, materials, and equipment.

Procurement: Purchase or acquire necessary materials and equipment.

Construction: Carry out the construction activities as per the plan.

Control:

Cost and Schedule Monitoring: Track project costs and schedules to ensure they align with the
plan.

Quality Checks: Perform regular quality inspections to ensure standards are met.

General Safety: Implement and monitor safety protocols to protect workers and the public.

Documentation and Records: Maintain detailed records of all activities, changes, and issues.

4. Project Closure
This final phase involves completing all activities and closing out the project.

Final Cleanup at Site: Conduct a thorough cleanup of the construction site.

Quality Checks: Perform final quality inspections to ensure all work meets required standards.

Relieving Labor and Contractors: Release labor and contractors from their responsibilities.

Final Documentation and As-Built Drawings to Owner: Provide the owner with all final
documentation and as-built drawings.

Termination of Contracts: Officially terminate contracts with contractors and suppliers.

Acquiring Required Permits and NOCs: Obtain necessary permits and No Objection Certificates
(NOCs) for project completion and operation.

These phases ensure that construction projects are systematically and efficiently managed from
inception to completion, meeting all objectives, timelines, and quality standards.
What is Organisation structures?
A social unit of people that is structured and managed to meet a need or to pursue collective goals

All organizations have a management structure that determines relationships between the different
activities and the members.

It subdivides and assigned roles, responsibilities, and authority to carry out different tasks. clearly
defined purpose for which they have been brought together.

The internal formal formwork of a business/organisation.

Shows the way in which management is organised and linked together.

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Shows how the authority is passed through the organisation.

Defines the hierarchy, the distribution of roles or the responsibilities within the organization.

The organizational structure of a company affects which department is powerful, which


department takes more decisions or which department has less power.

Depending on the market conditions, competition, industry, and history of the company, different
organizational structures can be adopted by companies at different times.

Organisation structure: Organisation types are a framework that determines the hierarchy of
people, function, and workflow—along with the reporting system in an organization.
Draw organisational chart for a construction company and explain in detail
For a small construction firm, the Line and Staff Organizational Structure is often a suitable choice.
This structure combines the simplicity of the line organizational structure with the specialized expertise
of staff functions, providing a balance between direct control and expert advice. Here’s a suggested
structure:

Line and Staff Organizational Structure

Benefits of Line and Staff Organizational Structure


Clear Hierarchy: Direct lines of authority ensure clear responsibility and accountability.

Expertise: Staff departments provide specialized knowledge and support, improving project quality
and efficiency.

Flexibility: Adaptable to changing project needs, as line managers can focus on core activities
while staff experts handle specialized tasks.

Efficiency: Streamlines operations by combining direct control with expert advice, enhancing
decision-making and problem-solving.

18ENG85 JUNE-JULY 2023


Write short notes on the following
Project Scope
Defines the work required for project completion

Includes project objectives, deliverables, tasks, deadlines, and boundaries

Ensures stakeholder understanding of inclusions and exclusions

Prevents scope creep, avoiding delays and cost overruns

Documented in a scope statement or project charter

Project budgeting

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Estimates financial resources needed for the project

Includes costs for labor, materials, equipment, permits, insurance, and contingencies

Helps in securing funding and managing expenses

Requires accurate cost estimation and regular monitoring

Involves financial planning and resource allocation


Project Planning
Develops a roadmap to achieve project goals within constraints

Defines project scope, sets objectives, and creates detailed plans

Key components: Work Breakdown Structure (WBS), roles and responsibilities, schedules, and
budgets

Organizes and coordinates all aspects of the project

Provides a clear path to successful completion

Project Scheduling
Creates a timeline for tasks and activities

Defines task sequences, estimates durations, and assigns resources

Outlines start and finish times for each task

Uses tools like Gantt charts, Critical Path Method (CPM), and PERT

Requires regular monitoring and updating to accommodate changes or delays


Explain in detail the purpose of project management with suitable examples
The characteristics of management encompass a range of attributes that define effective management
practices across various fields, including construction project management. These characteristics help
ensure that projects and organizations operate efficiently and achieve their goals. Here are the key
characteristics:

Goal-Oriented
Objective Setting: Management involves setting clear and achievable goals.

Direction: Provides a sense of direction for all organizational activities.

Organized Activities
Systematic Approach: Management ensures that tasks are organized and systematic.

Coordination: Involves coordinating resources and activities to achieve objectives.

Decision-Making
Problem-Solving: Management involves making decisions to solve problems and address issues.

Strategic Planning: Decisions are made based on strategic planning and analysis.

Dynamic Function
Adaptability: Management is adaptable to changing environments and conditions.

Flexibility: It involves flexibility to adjust plans and processes as needed.

Continuous Process
Ongoing Activity: Management is a continuous process that does not end with achieving goals.

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Monitoring and Improvement: Involves regular monitoring and continuous improvement of
processes.

Resource Management
Efficient Utilization: Ensures efficient use of resources, including human, financial, and material.

Optimization: Focuses on optimizing resource allocation and usage.

Leadership and Motivation


Guidance: Management provides guidance and leadership to team members.

Motivation: Involves motivating employees to achieve high performance and commitment.

Interpersonal Skills
Communication: Effective management involves clear and open communication with all
stakeholders.

Relationship Building: Building and maintaining good relationships within the team and with
stakeholders.

Accountability
Responsibility: Managers are responsible for the outcomes of their decisions and actions.

Transparency: Involves maintaining transparency in operations and decision-making.

Performance-Oriented
Efficiency: Management focuses on achieving results efficiently.

Effectiveness: Ensures that the outcomes meet the desired goals and standards.

Innovation
Creativity: Encourages innovative thinking and problem-solving.

Change Management: Involves managing and implementing changes effectively.

Ethical Practices
Integrity: Management involves adhering to ethical principles and practices.

Corporate Social Responsibility: Emphasizes the importance of social responsibility in business


operations.

These characteristics collectively contribute to effective management, ensuring that organizations and
projects are guided, organized, and operated in a manner that achieves their objectives and fosters
continuous improvement.

18ENG85 DEC 2023-JAN 2024


Explain various phases of project lifecycle and its importance in overall project

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The Project Management Life Cycle of a Construction Project
The project management life cycle in construction typically consists of four distinct phases: Project
Conception and Initiation, Project Definition/Planning, Project Launch/Execution, and Project Closure.
Each phase encompasses specific tasks and responsibilities to ensure successful project completion.

1. Project Conception and Initiation


This phase involves the initial steps to define and start a project.

Defining Project Objectives and Need: Establish clear goals and the necessity of the project.

Feasibility Study: Assess the project’s viability, addressing questions of "why" and "how" the
project will be executed.

Appointing Project Manager: Designate a project manager to oversee and lead the project.

Financial Planning: Develop a financial plan, including funding sources and budget allocations.

Location and Site Selection: Choose a suitable site for the project, considering factors like
accessibility, environmental impact, and regulatory compliance.

2. Project Definition/Planning
This phase involves detailed planning to outline how the project will be executed.

Defining Scope of the Project: Clearly outline the project’s deliverables and boundaries.

Designing and Drawings: Create detailed designs and architectural drawings.

Cost Estimation: Estimate costs for all aspects of the project.

Defining Contract Terms and Conditions: Establish the terms and conditions for contracts.

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Permits and Approvals: Obtain necessary permits and regulatory approvals.

Scheduling: Develop a comprehensive project schedule, including timelines for each phase.

Selection of Contractors: Choose contractors based on criteria such as expertise, experience, and
cost.

Mobilization of Resources: Gather and prepare all resources needed for the project.

Preparation of Site: Prepare the site for construction, which may include clearing, grading, and
setting up temporary facilities.

3. Project Launch/Execution
This phase is where the project plan is put into action.

4. Project Closure
This final phase involves completing all activities and closing out the project.

Final Cleanup at Site: Conduct a thorough cleanup of the construction site.

Quality Checks: Perform final quality inspections to ensure all work meets required standards.

Relieving Labor and Contractors: Release labor and contractors from their responsibilities.

Final Documentation and As-Built Drawings to Owner: Provide the owner with all final
documentation and as-built drawings.

Termination of Contracts: Officially terminate contracts with contractors and suppliers.

Acquiring Required Permits and NOCs: Obtain necessary permits and No Objection Certificates
(NOCs) for project completion and operation.

These phases ensure that construction projects are systematically and efficiently managed from
inception to completion, meeting all objectives, timelines, and quality standards.
Explain the categorization of projects as per contractors needs and brief note on
why is that needed

Categorization of Projects as per Contractors in Construction


Construction projects can be categorized based on the nature and scope of work, as well as the
specialization required. This categorization helps in matching the right contractor to the specific needs
of the project, ensuring efficiency, quality, and compliance with regulations. Here are the common
categories:

1. Residential Projects
Description: Includes single-family homes, multi-family units, townhouses, and apartments.

Contractor Specialization: Residential contractors are specialized in home construction,


renovation, and maintenance.

Why Needed: These projects require contractors familiar with residential building codes, materials,
and customer expectations.

2. Commercial Projects
Description: Encompasses office buildings, retail centers, hotels, and other commercial properties.

Contractor Specialization: Commercial contractors have expertise in constructing and renovating


commercial spaces, including adherence to business regulations and standards.

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Why Needed: These projects often involve larger scales, stricter codes, and specialized systems
like HVAC, fire safety, and accessibility.

3. Industrial Projects
Description: Includes factories, warehouses, power plants, and other industrial facilities.

Contractor Specialization: Industrial contractors specialize in heavy construction, machinery


installation, and safety protocols specific to industrial operations.

Why Needed: These projects demand a high level of technical knowledge and adherence to safety
standards to ensure operational efficiency and worker safety.

4. Infrastructure Projects
Description: Encompasses roads, bridges, tunnels, railways, and utilities.

Contractor Specialization: Infrastructure contractors focus on large-scale public works projects,


requiring knowledge of civil engineering and large equipment operation.

Why Needed: These projects are vital for public use and safety, necessitating experienced
contractors who can handle complex logistics and long-term durability requirements.

5. Environmental Projects
Description: Includes water treatment plants, waste management systems, and renewable energy
installations.

Contractor Specialization: Environmental contractors are knowledgeable about sustainable


construction practices and environmental regulations.

Why Needed: These projects focus on sustainability and compliance with environmental laws,
requiring specialized expertise to meet green building standards.

6. Specialized Projects
Description: Covers niche projects like hospitals, laboratories, and data centers.

Contractor Specialization: Specialized contractors possess expertise in specific fields such as


healthcare construction, laboratory safety standards, and advanced technological installations.

Why Needed: These projects require strict adherence to sector-specific regulations and standards,
ensuring safety, functionality, and compliance.

Brief Note on the Need for Categorization


Categorizing projects as per contractors' specialization is crucial for several reasons:

Expertise and Quality: Matching projects with specialized contractors ensures high-quality work,
as contractors bring specific expertise and experience relevant to the project type.

Efficiency: Specialized contractors can complete projects more efficiently, utilizing their
knowledge of best practices and appropriate technologies.

Compliance: Different types of projects are subject to various regulations and codes. Specialized
contractors are familiar with these requirements, ensuring legal and regulatory compliance.

Risk Management: Experienced contractors can identify and mitigate risks associated with their
specific project types, leading to safer and more reliable outcomes.

Cost-Effectiveness: Efficient project execution by specialized contractors can lead to cost savings
through reduced errors, timely completion, and optimized resource use.

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List the different forms of organisational structure. Suggest a suitable
organisation for a medium scale construction company
Write a brief note on ethics in construction industry.

ETHICS AND QUALITIES OF AN IDEAL CONSTRUCTION ORGANISATION


Building Construction is time consuming, resource intensive process. Hence there are multiple
stakeholders involved with varied interests.

To ensure efficiency and quality in construction, adhering to standard practices, following ethical
code of conduct is very essential.

Some of the very common unethical practices adopted within the industry are corruption,
compromising on health and safety requirements and resulting in environmental degradation.

These problems are mainly related to dynamism of construction industry as well as changing
demands of the stakeholders, especially the clients. However, to improve upon the current
situation, business ethics in construction industry is inculcated to promote sustainable business
practices

Four primary ethical business practices namely

Honesty: is an integral aspect of work-place environment and culture which is mainly nurtured
by the organisational management. In most developing nations, the construction industry is
plagued by unethical practices comprising of dishonesty, bribery, fraud, negligence, conflicts,
and bidding issues. Such unethical practices have negatively largely influenced the quality of
building performance, for which honesty and integrity are recommended.

Responsibility: The design Organisation for example is responsible for developing a quality
design for ensuring building quality performance and the contractors on the other hand are
entrusted with responsibilities to build a quality product. The management is responsible for
developing a detailed policy framework related to quality. The employees are subjected to
training and developmental activities to ensure that quality policy is observed. Through
coordination and synchronization of responsibilities at differing levels, it would be possible to
ensure quality building performance.

Accountability: Accountability like honesty is another ethical business practice that endows
construction projects with higher performance of building quality

Transparency: Lack of transparency within the construction industry has been considered as
one of the significant factors resulting in escalating corruption. Transparency should be
followed in awarding and rejecting of contracts, selection of vendors, pricing etc.

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