CONMED2 – CONMED1 REVIEW

Mr W Mpingana
16 February 2024
CONMED1 REVIEW
In this presentation
• The construction industry
• Construction management
• Construction management vs contractor
• Objectives of construction management
• Construction project lifecycle
• Contract management
• Challenges with construction projects
• The client brief

3
 WHAT IS CONSTRUCTION?

• Construction is a series of actions undertaken by construction companies and

consultants, which produces or alter buildings and infrastructure
• Construction actions can be described as a complex interplay of people, tools,
equipment and materials coordinated by communication and paid for with
money
• Construction include:
(i) Design and management of decisions
(ii) Direct physical production of the facility on site
(iii)Project close-out/final accounting; and
(iv)Rehabilitation and maintenance of existing facilities
 WHAT IS CONSTRUCTION? CONT’D

• The sets of actions , which make up most of construction projects, are so complex
that there must be a sophisticated system of coordination to ensure the work is
undertaken correctly
• The actions which form any one construction project are extremely complex and
diverse because:
(i) They take place in widely different locations
(ii) May involve practically every technology yet devised by humans
 WHAT IS CONSTRUCTION MANAGEMENT?

• Construction management is the practice of ensuring that construction actions are

undertaken effectively and efficiently
• According to SACPCMP (2009), construction management is the management of
the physical construction process within the built environment and includes the co-
ordination, administration and management of resources. The Construction
Manager is the one point of responsibility in this regard
 WHAT IS CONSTRUCTION MANAGEMENT? CONT’D

• Fellows et al. (2002) viewed construction management in two dimensions – the

management of the business if construction and of projects. They highlight that in
practice, the two dimensions rely on each other. This view is acknowledged by
some (Radosavljec and Bennett, 2012) who posited that construction
management if at the Centre of both company and project management as shown
in the following figure: Construction management

Company
management Project
management
 CONSTRUCTION MANAGEMENT FUNCTIONS

To be successful a construction company

must:

• Estimate the cost of construction projects

accurately
• Predict the schedule of the work
• Control the progress and expenditures during
construction
• Complete projects safely and on time
 CONSTRUCTION MANAGEMENT FUNCTIONS

Responsibility to construct the project:

• in accordance with the plans and specifications
• to satisfy the customer’s cost, quality, and time
expectations

The project team is organized for the purpose of

accomplishing those missions!
OBJECTIVES OF CONSTRUCTION MANAGEMENT: THIS IS TO ENSURE
THAT PRODUCTIVE EFFORTS UNDERTAKEN BY A COMPANY/
INDIVIDUAL ARE EFFICIENT AND EFFECTIVE

• Less time taken

• Less waste (Lean principles)
• Economic use of resources
• Higher quality products
• More value
• Less accidents and fatalities
• Satisfaction of client/ employer
• Products are sustainable e.g. green buildings, low impact design, and passive
energy usage
 CONTRACTOR VS CONSTRUCTION MANAGER

Contractor • Construction Manager

• Means any person or legal entity • Can be said to be a professional who
entering into contract with the client for manages the building construction
the execution of the works or part process – prepares production
thereof (SACPCMP, 2009) documents, involved with the day to
day management of construction
projects, have responsibility for
supervising people and reports to the
client and senior management
 THE PROJECT CYCLE

 Constructing a building usually represents a major investment for an owner

(individual, a private firm or a public agency).

 Since the investment is motivated by market demands or perceived needs to

be met in a timely fashion, the building is expected to satisfy objectives
specified by the owner and relevant regulations.

 Most buildings, are custom made in consultation with the owner.

PROJECT TIMELINE
 WHAT IS CONTRACT MANAGEMENT?

Contract management is the active management of

the relationship between the client and the
contractor over the term of the contract for the
provision of goods and services to the agreed
standards.
 THE BENEFITS OF EFFECTIVE
CONTRACT MANAGEMENT

• more favourable contract outcomes

• improved quality of service and customer focus;
• achieving value for money and financial control;
• decrease in the level of risk;
• early identification and resolution of poor performance, other problems or disputes;
• evaluation of the specification against contract performance and identification of contract changes or
variations
 CONTRACT MANAGEMENT

The following factors are essential for good contract management:

• Good preparation. An accurate assessment of needs helps create a clear output-based

specification. Effective evaluation procedures and selection will ensure that the contract is awarded
to the right provider.
• The right contract. The contract is the foundation for the relationship. It should include aspects
such as allocation of risk, the quality of service required, and value for money mechanisms, as well
as procedures for communication and dispute resolution.
• Single business focus. Each party needs to understand the objectives and business of the other.
The customer must have clear business objectives, coupled with a clear understanding of why the
contract will contribute to them; the provider must also be able to achieve their objectives,
including making a reasonable profit margin.
• Service delivery management and contract administration. Effective governance will
ensure that the customer gets what is agreed, to the level of quality required. The performance
under the contract must be monitored to ensure that the customer continues to get value for
money.

• Relationship management. Mutual trust and understanding, openness, and excellent

communications are as important to the success of an arrangement as the fulfilment of the formal
contract terms and conditions.

• Continuous improvement. Improvements in price, quality or service should be sought and,

where possible, built into the contract terms.

• People, skills and continuity. There must be people with the right interpersonal and
management skills to manage these relationships on a peer-to-peer basis and at multiple levels in
the organisation. Clear roles and responsibilities should be defined.
• Knowledge. Those involved in managing the contract must understand the business fully and know
the contract documentation inside out. This is essential if they are to understand the implications
of problems (or opportunities) over the life of the contract.

• Flexibility. Management of contracts usually requires some flexibility on both sides and a
willingness to adapt the terms of the contract to reflect a rapidly changing world. Problems are
bound to arise that could not be foreseen when the contract was awarded.

• Change management. Contracts should be capable of change (to terms, requirements and
perhaps scope) and the relationship should be strong and flexible enough to facilitate it.

• Proactivity. Good contract management is not reactive, but aims to anticipate and respond to
business needs of the future.
 IF CONTRACTS ARE NOT WELL
MANAGED
• The contractor is obliged to take control, if not, unbalanced decisions that do not serve the customer’s interests
will be taken
• Decisions are not taken at the right time
• People in both organisations fail to understand their obligations and responsibilities
• There are misunderstandings, disagreements and underestimations; too many issues are escalated inappropriately
• Progress is slow or there seems to be an inability to move forward
• The intended benefits are not realised
• Opportunities to improve value for money and performance are missed.
Ultimately, the contract becomes unworkable.
 WHY ORGANISATIONS FAIL TO
MANAGE CONTRACTS SUCCESSFULLY
• Poorly drafted contracts
• Inadequate resources are assigned to contract management
• The wrong people are put in place, leading to personality clashes
• The context, complexities and dependencies of the contract are not well understood
• There is a failure to check provider assumptions
• A lack of performance measurement or benchmarking by the customer
• A focus on current arrangements rather than what is possible or the potential for improvement
• A failure to monitor and manage retained risks
 CHALLENGES IN CONSTRUCTION
PROJECTS

• Changing client’s requirements • New or unknown construction methods

(3D Printing, Modular Construction, Self-
• Authorities requirements healing concrete)
• The construction season • Site uncertainty
• Slump? Boom? • Unreliable supply of materials / long lead
• Others times
• Economic outlook • Supply of drawings / specs
• Competitive situation
 PROJECT STAKEHOLDERS

• CLIENT
• CONTRACTOR
• PROFESSIONAL CONSULTANTS
• SUPPLIERS
• SUBCONTRACTORS
• INVESTORS
• USERS
• OCCUPIERS
 THE PROJECT BRIEF
• The project brief is the final stage in the process of defining the client'srequirements for the
development of a built asset:
• The statement of need is the first attempt to describe the possible requirements of the project. ...
• The project brief is the key document upon which the design will be based.

• The brief is the most important bit of information issued by a client to an agency.
• It's from the brief that everything else flows.
• Indeed written briefs are a point of reference that can be agreed at the outset and therefore, to
some extent, form a contract between client and agency.
 CLIENT BRIEF

• What is its importance?

• Who should ideally be participants in this process and Why?
• What information would be required by different role-players and why?
• Results or implications of poorly structured brief.
• What follows the briefing process?
Why do we want the facility? The need
When is the facility to be built? The timescale
What is to be built? The need, requirement, type of
facility
Where is the facility to be built? Location, site details
How is the facility to be built? Finance
ORGANISATION STRUCTURE –
IMPORTANT?
THANK YOU FOR YOUR TIME
AND ATTENTION