09-Aug-18

CL 409.01

CONSTRUCTION MANAGEMENT

Objective of subject…
• To make aware of the method of construction
management.
• To impart knowledge about different methods of network
planning.
• To acquainted with tendering Procedure and various
constructions contract systems.
• To aware about laws for labors.

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Overview of subject….
1. Construction sector in India
2. Project feasibility report
3. Construction planning, organizing, controlling and
monitoring
4. Project management through networks
5. PERT
6. CPM
7. Contracts and tender

Credits and Hour

Teaching Scheme Theory Practical Total Credit

Hours/ 3 2 5
week 4
Marks 100 50 150

Pedagogy
Continuous
Evaluation Syllabus for Test/Exam Marks Equivalent Marks

Unit Test/ Internal 30 15

Presentation Tender and contract, any 5 5

management techniques

Assignment/ Online 10 10
course

Total Marks = 30

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Unit: 1
Construction Sector in India (9%)

Introduction
Construction:
It is a process of translating the plans, specification and resources
into physical facility to meet specific requirements of owner
within schedule, cost quality.
Management:
It is process to plan, to organize, to coordinate, to control
resources of project to achieve predetermined goal successfully.
Project:
It is a temporary endeavor(effort) undertaken to provide a unique
product of service.

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Construction Stakeholders…

Project Mang.
Architect
Cons.

Physical Advice Engineer Structural Cons.

Lawyer Const.
Supervision Cons.

Client/Owner Contractor Soil Testing

cons.

Physical
Construction Material Supplier
Sub-contractor

Labour supplier

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Client/ Owner
• The legal entity(person/ organization) that will use facility or
structure after completion of project.
• May be an national and local government, public corporation, public
enterprise, individual, firm/company.

Responsibility:
 To define what must be done
 To judge the use of funds to execute the project
 To make decisions and provide information when required
 To appoint engineer and give him power to work on his behalf.
 To give possession of site to the contractor.

Architect
• Employed by the employer to provide overall project
guidance, design expertise and to (usually) administer the
contract.

Responsibility:
extracting and understanding the client’s requirements
developing a design response
ensuring the design is constructed (contract administration –
administering the Contract between Employer and Contractor)
 Tender preparation and contractor selection.

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Engineer
• Generally the term ‘engineer’ means the consulting engineer who works with
the client to conclude the contract. They provide technical services on behalf
of client.
• consultant is referred to as project management consultant, structural cons.,
const. supervisor cons., geo-technical cons. etc.
Responsibility:
Responsibility varies from consultant to consultant. In general , they are
responsible for
 undertaking project feasibility study
 preparation, reviewing and coordinating engineering drawing
 Geo-technical investigation
 Helping client in bidding process, coordinating in execution phase

Project Manager
• They appointed by the Employer, the project manager
may:
Co-ordinate the general flow of the project
Ensure programmes are realistic
Facilitate the flow of information between organizations
Co-ordinate site activities
Ensure the quality of workmanship and materials
Ensure good health and safety practice

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Lawyer
• Some construction companies in India have a legal cell
comprising lawyer specializing in construction dispute.
Responsibility:
Review various documents like contract, inspection report etc.
Resolve the dispute between client and contractor
deals with matters relating to building construction,
engineering and related fields.

Contractor
• The production aspects of construction projects are undertaken by building
contractors who are essentially commercial companies or individual that
contract to construct development projects.

Responsibility:
 Carrying out a full site investigation prior to submission of tender to ensure
that the bid includes all the cost of contractual risks and problems.
 Submitting priced bills of quantities for examination and/or correction of any
errors when required by the architect.
 Planning and programming the works and reprogramming thereafter
whenever unforeseen events frustrate the program.
 Controlling directly employed operatives, sub-contractors, suppliers,
materials and plant for the execution of the project to programme and cost.
 Coordinating efforts of all operatives and ensuring that the completed works
comply with the contract specification and are also to the satisfaction of the
architect.

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 Notifying the architect of information requirements, delays to the

construction programme, discrepancy between contract documents,
direct loss and/or expense sustained and so on.
 Paying the wages of directly employed operatives, sub-contractors and
suppliers in time to avoid conflicts over payment.
 Supplying all the information required by the client's professional
advisers for the proper administration of the works.
 Taking steps to carry out the contractor's obligations to rectify all
defects on completion of the works.
 Providing post-occupancy repair and maintenance service if so
required by the client.

Subcontractor/ supplier/vendor
• In large construction projects, very often no single
contracting company has adequate expertise and resources
to undertake all activities on their own.
• Under such situation, they employ small contractors for
certain specialized item of work, for either execution
purpose or material procurement purpose.

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Causes of Failure of Constn. Project

Project failure occurs when the following criteria for success are not met: on time
delivery, cost limit and client acceptance of scope of the work. Major issues
are related to poor planning, poor leaderships and inadequate
knowledge/expertise.
1. Underestimating the Project:
– Reasons a construction project may fail is due to inaccurate estimates.
Miscalculations, specification errors, omissions, excluded permits, and changing
market conditions (e.g., prices of materials and labor) can all lead to costly overruns,
leaving the contractor stressed and the client unhappy.
2. Changing in Scope :
– Client requests that are out of the scope of work originally agreed upon
– Unforeseen conditions that are unknown to the contractor at the time the contract is
signed
– Clients not doing thorough preliminary work (e.g., site surveys, proper planning, etc.)

3. Delays in taking Approval:

– Government approvals, site regulations, and permit delays slow down the
timeline for project and can cause costly overruns if not accounted for
correctly.
4. Surprise Conditions:
– Conditions unknown to the project manager can quickly become a problem
and run up the costs of a project. Natural disasters and design or structural
issues are the main culprits and can be hard to plan for during the bidding
process
5. Unclear Specifications:
– Clients don’t always understand everything that needs to be fleshed out in
order to make sure necessary objectives are clearly identified and the
construction project runs smoothly. Unclear specifications can become very
costly, especially when the owner’s and contractor’s interpretations differ
significantly.

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6. Financing Issues:
– The owner runs out of money to finance the project, contractor might
not come back to run project if they can’t provide the funds.
7. Unreliable Workers:
– A lack of qualified workers or a team that is unreliable is a invite
disaster when it comes to construction projects
8. Communication Gaps:
– Effective communication is extremely crucial to the success of a
any project. When any of the parties involved aren’t getting the right
information at the right times, it can become a very costly issue. It is
important to establish a chain of command to make sure that all parties
are getting the necessary updates in regards to changes on the project,
design, plans, specs, or timeline.

9. Improper Planning:
– Rigid, inflexible schedules are common in construction projects. If
don’t account for surprises or delays, a project can take longer and
cause cost overruns. It is extremely important to constantly monitor
project tasks closely to ensure sub-ordinates are matching up with the
assigned duration given when planning.
10. Lack of Leadership
– When we see this word, leader, we usually think, the project manager.
However, the people at each management-level have a responsible to
ensure that the project is successful. Management should not
micromanage but provide support to ensure that the PM can follow
through with the expectations placed upon them.

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Status of Indian Construction Industry

• Second largest in the country after agriculture and employed about 32 million
people.
• Contribute to about 10-11% of India’s GDP totaling about INR 240000 crores
• Large investment opportunities in Housing & Infrastructure sector
• Total infrastructure expenditure during the Twelfth Five Year Plan (2012 -
2017) nearly doubled to Eleventh Five Year Plan (2007 – 2012) -INR 20.5
trillion to INR 40.9 trillion
• 50% of the investment is expected from private sector.
• Construction accounts for 50-60% of the total investment in Infrastructure
Sector (remaining from Housing and Industrial sectors)

• Due to significant investment opportunities emerging in this industry, a large

number of international real estate players have entered the country.
• Since 2000, FDI (Foreign Direct Investment)in the Construction Sector has
grown positive till 2011-12 reaching to about 45000 million US$ (dip in
2009-11), but has shown negative growth in 2012-13.
• There is a slowdown in the India’s economic growth trajectory resulted in the
slowdown of construction sector too.
• Though investment targets of telecom and oil & gas sectors are achieved in
the 11th Plan, roads, railways and ports, have under-achieved their investment
targets (about 25% shortage).
• Major problems faced by construction/infrastructure investments are: Land
accusation, capacity constraints, slow pace in reforming policy and
regulations.

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• Delayed approvals & Clearances, poor dispute resolution

mechanism, Lack of institutional mechanism for project
monitoring, Difficulty in raising funds (mainly debt for
infrastructure) etc.
• Reforms brought recently: Land Acquisition Act, Higher
limit for External Commercial Borrowing for
Infrastructure (10 billion US$), Setting up of
Infrastructure Debt Funds, Reduction in withholding tax
etc

Function of Construction Management

Planning Scheduling Organizing

Directing &
Coordinating Procuring
Leading

Monitoring
& controlling

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Planning
• Planning gives idea about future course of action.
• It involves deciding in advance…
– What is to be done?
– Where it is to be one?
– How it is to be done?
– In what order it is to be done?
• Planning involves…
– Defining objectives or scope of work
– Collecting and arranging information
– Developing alternative with specified constraint
– Comparing alternatives in terms of feasibility & consequence
– Selecting the optimum course of action
– Establishing policies, procedure, methods, programmes, system standard, budget
to accomplish project.

Scheduling
• Scheduling is related to time resource. It decide starting and ending time of
planned activities. It put plan on calendar date scale.
• In involve breaking project up to activity level so it can easily manage.
Organizing
• It is a process of establishing structural relationships among the function of
people involves in project.
• It involves…
– Deciding job structure.
– Defining performance target & responsibility
– Delegating authority with responsibility
– Establishing structural relationship to secure coordination.

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Co-ordinating
• Bring the different elements of (a complex activity or
organization) into a harmonious or efficient relationship.

Procuring
• Procuring deals with provision of right quality and right
quantity of resources at the right time.

• Procuring involves…
– Preparing resource procurement schedule
– Developing specification for required resources
– Deciding appropriate source of resource
– Budgeting resources
– Arranging approval & purchase
– Preventing wastage during execution of work

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Directing & Leading

• It involves giving instruction to people so they can work
efficiently and effectively to achieve goal.
• It involves…
– Motivating participant behaviour
– Communicating instruction and order
– Providing suitable environment for work

Monitoring & Controlling

• It is process of monitoring performance during execution
and compare with planned function to measure the
deviation. It is a method of applying corrective measures
at right time in case of deviation from plan.
– specifying the factor to be controlled.
– Stating the method of measuring control factors.
– Monitoring data received.
– Applying corrective measures to put a plan on schedule path.
– Re-planning when necessary.

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