CHAPTER 1 MANAGEMENT IN THE ENGINEERING AND CONSTRUCTION INDUSTRY CONSTRUCTION'S FUTURE:  Increasing size of projects & Organizations  Increasing technological complexity & more complex interdependencies & Variations in the relationships among its organization Institution  Rapid Increase of regulations.

 Management must cope with new economic and cultural realities resulting form inflation, energy shortage and new societal standards. Success will require the fullest understanding of all facets of the construction Industry.  Shortage of resources.  At the project level: Integration of design, procurement and construction into one total process.

THE NATURE OF THE CONSTRUCTION INDUSTRY:  Very large = 10% of GNP  1/2 million construction firms  Intensely competitive  Relatively has trivial technological advances Do not benefit much of mass production  Construction industry is custom- oriented

* Construction has many characteristics common to both manufacturing and service industries Like MANF Physical products Like SERV Small assets Like SERV Dependent on the qualities of its people  Very poor in research (<1% of revenue) compared to 10%-20% in electronics

TYPES OF CONSTRUCTION PROJECTS:  Residential Construction  Building Construction  Heavy Engineering Construction  Industrial Construction A) In Developed Countries (USA)

 Buildings  Infra Structure:  Electro mechanical works B) In Gaza strip Roads Water-related Waste water Water supply

EVOLUTION OF ALTERNATIVE APPROACHES TO THE MANAGEMENT OF CONSTRUCTION: 3 Main players (factors) (1) Owners: achieve the best value of money (2) Contractors: Bid low enough to win Bid high enough to profit (3) Workers: Better living standards and working conditions  Modifications of Traditional concepts

Heavy and Highway Traditional Bldg. & Industrial Design – construct negotiated contract Public Owners Traditional Except Rapid Transit & Wastewater Private Owners non-traditional

The Challenges of Construction Coordination and Control Constructor Engineer Owner Construction Management Construction Design Planning Review plans and specifications, and challenge same Personnel selection Construction methods Schedule Cost analysis Reporting and control Construct Value engineering Define project Personnel selection Design in logical construct sequence Cost and value control Design schedule Review final plans and specs w/cost estimate Procedures Feasibility Contract method Operating requirements Controls Standards Bidder selection Resources Contract terms Finance Quality Time Rising Costs Design criteria Inspection Lack of skilled workers Supervision Finance Availability of materials Delivery of materials, supplies and equipment Government restraints Productivity Changes Construction schedule Wages Productivity Time delay Jurisdictional disputes Capital equipment (price at time of delivery) Inflation Materials and supplies Design schedule Cost-Time-Quality-Trade-offs Union agreements Training Value engineering (functional analysis) Isolation and analysis of high-cost areas Reference: Challenges in construction’s future. (from Boyd C. Paulson, Jr., Goals for Basic Research in Construction, Technical Report No. 202, Stanford University, Dept. of Civil Engineering, The Construction Institute, Stanford, Calif., July 1975.)