CONSTRUCTION MANAGEMENT

General principles – classification & stages involved in construction projects – administrative approval –
technical and budget sanctions – construction team - preliminary planning of schemes – preliminary
estimate

Construction planning- materials, equipment and labour management - Departmental labour- muster roll
system and casual labour system – tender and tender document, e-tendering and contractual procedures –
definition of contracts –types of contracts, legal implications –deposits – earnest money deposit and security
deposit – penalties and arbitration.

Concept of public private partnership. M-book, types of measurements – original, pre and check measurement.
Maintenance of accounts – spread sheets -types of bills and payment - completion reports and completion
certificates.

Classification and codification systems - materials, tool & plants – indenting, hiring procedures, inspection
and maintenance – stock verification procedures. Work breakdown structure, bar-chart – concept and
procedure- limitations – advantages of network analysis – CPM and PERT- introduction to management
software
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What is Construction Planning?
 CP is the first step in integrating all the project activities within a
given time frame and budget.
 It is a basic and challenging task in the management and execution
of construction projects.

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Need for CONSTRUCTION PLANNING
 Choice of technology
 Defining the activities
 Estimating the resources required
 Estimating the duration
 Identifying any connections among the activities

 Deciding the relationship b/w project participants and the

organization to be included

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Material Management
 Accordingto International Federation of Purchasing and Materials
Management,

a) Material Management is the total concept having its definite

organization to plan and control all types of materials, its supply
and its flow from raw stage to finished stage so as to deliver the
product to customer as per his requirements in time.
b) It involves material planning, purchasing, receiving, storing,
inventory control, scheduling, production, physical distribution
and marketing.

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CLASSIFICATION AND CODIFICATION SYSTEM:
 Materials in stores are classified either on the basis of their nature
or their basis of use.
 The most commonly used method is classification based on nature.
 For example, the materials may be classified as construction
materials, consumable stores, spare parts, abrasive, lubricating oil,
etc.
 After dividing all items of stores into various classifications, the
next step is to codify alphabetically or numerically.
 Decimal system of codification is more commonly used.
 Under this method, the whole numbers are used to indicate the
main group and decimal numbers for primary and secondary
groups.
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CLASSIFICATION AND CODIFICATION SYSTEM:

For example, materials may be classified as follows:

 Section body-1, Main code consists of first two digits.

 Section body-2, Sub-code consists of the next two to three digits

depending upon the requirement.
 Section body-3, details of size, quality, etc. Last one or two digits
depending upon the requirement.

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CLASSIFICATION AND CODIFICATION SYSTEM:
Advantages of System of Classification and Codification:
 It helps in material control.
 It gives advantage of abbreviation because lengthy description are
replaced with code number.
 It helps in maintenance of mechanized accounts.
 Secrecy of description can be maintained because of distinctive
store code number
 Distinctive code given to each item which avoids the duplication
due to multiple names.
 It facilitates the identification of various items for prompt issue of
stores. This is useful where the same material is known by more
than one name.
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 TYPES OF STORES
There are two types of stores based on the following coinsideration:
1. FUNCTIONAL:
Depending on the use to which material is stored – Chemicals,
tools, raw materials stores etc.
2. PHYSICAL:
Depending upon its size and location – Central store, decentralised
store and Central store with sub-store.
Centralised store: The usual practice in most concern is to have central store.
All the materials are kept at one central store.
Decentralised store: Handling of stores will be undertaken by the shopkeeper
of the department. Independent stores will be situated in various department.
Centralised store with Sub-stores: In order to minimize the transportation cost
from central stores to individual departments, sub-stores may be situated near
the production itself. 10
Labour Management
 LM in construction industry refers to controlling the manpower problem,
improving labour productivity and reducing time and cost overrun of the
project.
 In any project, it is necessary to estimate the required labour and this can be
done with proper construction schedules.
 Labour schedule, helps in providing future labour requirement and optimum
deployment of labour force wherever necessary.
 Quantitatively, there are two key metrics to define the labour productivity:
a) Effectiveness: how much work a unit of labour can accomplish in a
certain construction process.
b) Efficiency: The quantity of work completed by a unit of labour in a
given period of time.
Labour efficiency is used in construction industry to calculate overall output
with respect to the resource spent. It is generally used to measure and
monitor the performance. 11
Labour Management
Steps to improve the Labour Productivity:
 Providing adequate and timely training to labours.
 Motivating the workers till the completion of the project.
 Acquiring materials and service in advance.
 Reimbursing workers as well as vendors on time.
 Organising and implementing a methodical workflow.
 Providing appropriate and ontime supervision throughout the project.
 Maintaining work discipline.
 Providing basic facilities to the labours on the site.
 Completing legal documents prior to the start of the project.
 Planning funds management in advance.
 Determining optimal machinery through advanced equipment planning. 12
Labour Management
Characteristics of construction workers:
 Safe:
i. Keeping everyone safe in the site is always the highest priority.
ii. With heavy materials and equipment, it is very easy to be accidentally
injured.
iii. Hence, the workers must be completely up to date on their health and safety
training.
 Physically fit:
i. Workers must be healthy and capable of carrying their work.
ii. Any accident could lead to huge compensation claims than a employer will
want to avoid.
 A hard worker:
i. It doesn’t matter whether a worker has experience or not, if they are willing
to work hard then they are an asset to the company.
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Labour Management
Characteristics of construction workers:
 Passionate:
i. Workers who are genuinely passionate on work will guarantee a happy,
motivated and a productive work environment.
 Friendly:
i. For most project, the construction worker will be working with teams and
most likely to deal with clients.
ii. Hence, it is essential that the worker is happy, friendly and polite.

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 Equipment Management
 The use of new equipment and innovative methods has made possible
changes in construction technologies in recent decades.
 The selection of appropriate size and type of construction equipment often
affects the required amount of time and effort and thus job-site productivity of
a project.
 Hence it is important to be familiar with the characteristics of the major types
of equipment most commonly used in construction.
Equipment Schedule:
 It indicates the number of equipment of various types to be used during
different periods.
 It contains information such as ownership of the equipment, rent to be paid for
hired equipment, condition of working, etc.
No. Description Model S.No. or Acquisition Date Condition of Equip. Equipment
Units of equipment number County ID No. Cost Purchased New or Used assigned to:
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Equipment Management

Factors behind the Identification of Different Alternative Equipment:

 Economic consideration
 Company specific
 Site specific
 Equipment specific
 Client and project specific
 Manufacturer specific
 Labour consideration

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Equipment Management
Economic consideration:
 The economic considerations such as owning costs, operating labour cost and operating
fuel cost of equipment are most important in selection of equipment.
 Besides the resale value, the replacement cost of existing equipment and the salvage
value associated with the equipment are most important in selection of equipment.
Company specific:
 The selection of equipment by a company may be governed by its policy on ‘owning’ or
‘renting’.
 The emphasis on owning may result in purchase of equipment keeping in mind the future
requirements of the projects
 The emphasis on renting may lead to putting too much focus on short term benefits.
Site specific:
 Site conditions which includes both ground and climatic conditions may affect the
equipment selection decision.
 For ex. The soil and profile of the site may dictate whether to go for crawler or wheel
mounted equipment.
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Equipment Management
Equipment specific:
 Construction equipment come with high price tags. While it may be tempting to
go for low initial price, it is preferable to opt for standard equipment.
 Such equipment are manufactured in large numbers and their spares are also
easily available, which would ensure minimum downtime.
 They can fetch good salvage money at the time of their disposal.
Client and project specific:
 The owner/client may have certain preferences that are not in line with the
company’s preferred policies as far as equipment procurement is concerned.
Manufacturer specific:
 A company may prefer to buy equipment from same manufacturer again and
again. This may bring uniformity and compatibility of equipment upgrade in
future.
Labour consideration:
 Shortage of labour/trained manpower may lead to decision in favour of procuring
equipment that is highly automated. 18
Equipment Management
Importance of cost in making decision for equipment:
Total equipment cost comprises of two separate components:
 Ownership cost
a. Initial cost
b. Depreciation
c. Investment cost
d. Insurance cost and storage cost

 Operating cost
a. Maintenance and repair cost
b. Tire cost
c. Consumable cost
d. Mobilization and Demobilization cost
e. Equipment operator cost
f. Special items cost
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Equipment Management
Inspection and Testing of equipment:
 Inspection and testing, including cleaning is required in order to keep equipment in
good working order and to ensure that it is remains safe.
 If inspection and testing is not carried out properly, it may result to safety concerns
and deterioration.
 Equipment failing to meet the requirement shall be dealt with immediate rectification
and reporting to appropriate person.
 It is always necessary to maintain complete recorded of the equipment. And the
record shall include:
a. Information on the type and model
b. Any identification mark or number that it has
c. Its normal location
d. The date in which the inspection was carried out
e. Who carried out the inspection
f. Any faults found during the inspection
g. To whom and by whom these faults have been reported
h. Any action taken to rectifying it
i. The date when repairs or other necessary action were carried out. 20
 Types of labour
Construction labour can be broadly divided into two types:
i. Departmental labour or Regular establishment
ii. Casual labour

Departmental Labour: Employees who are part of the regular, permanent

workforce of an organization.
 They are employed on along-term, continuous basis.
 They have a formal employment contract and receive regular salaries or
wages.
 They are considered as part of the organization’s core workforce.
 The employees may be temporary or permanent.
 Permanent employees have great security of service.
 They are entitled to benefits like paid leave, retirement plans and other perks.

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 Casual labour

Casual Labour: Casual labour is employed as and when required for the
execution of work. This is also known as daily labour.
 They are paid on the basis of the number of days of work.
 There is no provision of leave, except the weekly holidays.
 They may be employed on daily, hourly or project basis also.
 They are not considered as the part of the organization.

Note: If the casual employee renders more than 1 year of service, labour law
converts his status and deems him a regular employee – even if there is no
action on the side of the employer.

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 Payment to Labours - Muster roll system

Except for the regular, all persons engaged departmentally for the execution
of works are considered as casual labour. Their wages are drawn on “Muster
rolls”.
Muster rolls are prepared in the prescribed form and the Nominal muster roll
(NMR) form consists of two parts.
Part 1: It consists of necessary columns for entering the name of labour,
designation, father’s name, their attendance particulars, rate of wages and the
total amount payable for each labour.
 NMR form has the provision for entering the total amount of the muster,
signature or left hand thumb impression of the labour as a receipt.
 At the bottom of the form, the person preparing the NMR form should sign
before submitting to the authority who in turn verifies the details entered and
makes the payment.
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 Payment to Labours - Muster roll system

Part 2: It is used for recording the name of the work, amount of the work done in
cases in which the work is susceptible to measurements.
 Other details like the number of measurement book, pages in which the
measurements are recorded will also be entered in this part.
 If the work is not susceptible to measurement, a remark to that effect is
recorded.

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 Payment to Labours - Muster roll system
Some important instructions regarding the preparation of muster rolls are:
 Duplicate copies of muster rolls should not be prepared
 Separate muster rolls are prepared for each period of payment. Labour may be paid more
than once a month depending upon local conditions and practices.
 The daily record of attendance and times should be recorded in such a way as to leave no
possibility of tampering or making unauthorized entries.
 After the muster roll has been passed, payment should be made as early as possible.
 A record of wages that remains unpaid must be kept in a register of unpaid wages.
 Subsequent payment of unpaid wages is recorded in the hand receipt. A note of the same is
recorded in the register of unpaid wages as well as in the muster roll.
 Wages that remain unpaid for three months must be reported to the divisional office.
 Progress of work done by the labour is recorded and is to be compared with departmental
rates.
 Muster rolls are checked with reference to entries in the measurement book to the extent of
50% in the sub-divisional and 50% in the division office, when the divisional engineer makes
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payments.