Management Approaches

Construction Management Customer appoints Design team and Management team

Construction Management CUSTOMER TRADE CONTRACTORS CONSTRUCTION MANAGER ARCHITECT

Construction Management Customers Tend to be commercial developers wanting: Large, city centre buildings High quality architecture Secure profits The most successful of these customers: Provide leadership for projects Are actively involved in key decisions Concentrate attention on agreed objectives

Construction Management Design Teams Led by experienced architect who produces overall concept Include engineers and specialists who produce much of the detail design Guided by design meetings held at key stages Establish quality control systems Ensure design is complete and does not cause delays

Construction Management Management Teams Led by experienced construction manager Check completion date and budge Establish project organization and plan Ensures designs meet agreed objectives Ensures competent teams are selected Establish control systems Ensures problems are solved quickly Identifies good ideas emerging during project

Construction Management Works Contractors Have direct contracts with customer Specialists form part of design team Ensure designs match cost and time targets Agree how and when work will be done Work in accordance with design and plan Involved in project meetings Complete work and leave site clean and tidy

Construction Management Key Relationships CUSTOMER TRADE CONTRACTORS CONSTRUCTION MANAGER ARCHITECT SPECIALIST DESIGNERS SPECIALIST CONSULTANTS

Construction Management Performance Considerably faster than traditional construction Commercial projects completed about 40% quicker Helps commercial customer achieve their financial objectives

Efficient Construction Management acts on the following propositions Reduce the number of teams involved Improve the quality of relationships Reduce performance variability Reduce external interference plus

Efficient Construction Management acts on the following propositions Select teams competent in the technologies required by the project Ensure teams accept the agreed objectives Ensure teams are motivated to achieve agreed objectives Foster accurate communications between teams Ensure teams regard the transactions as advantageous to themselves

Management Contracting Similar to construction management except the management team is provided by a management contractor and works contractors are subcontractors to the management contractor

Construction Management at Risk Similar to construction management except the construction management company guarantee the maximum price and employ works contractors as subcontractors

Design and Manage Similar to management contracting except the management contractor employs the design team as well as the works contractors

Project using Construction Management The project is to construct a new hotel on a virgin site. The hotel has 300 guest rooms and the other spaces expected in a 5* hotel The building is 10 stories high with a steel structural frame, concrete beam floors and roofs, and high quality, pre-fabricated external cladding.

TeamsTeam-days Brief180 Design31780 Plan 5150 Procurement13680 Manufacturing10250 Production Commissioning4140 TOTALS

For a project with 104 teams (N=104) Possible relationships = 104 x 103/2 = of these do not occur Actual relationships = 2126

Largest number of teams in one time interval is 34 in 21 st time interval They are constructing the service cores, risers and main plant, the main entrance and vertical circulation Manufacturing teams are producing building components The work is supervised by design and construction management teams 34 x 33/2 = 561 possible relationships

During the 21 st time interval the following teams work simultaneously 3 out of 4 construction manager’s plan and control teams 1 out of 2 contracts and payment systems teams 4 out of 10 manufacturing teams 3 out of 4 service core teams 3 out of 4 risers and main plant teams 5 out of 8 entrance and vertical circulation teams 1 out of 2 designer and construction manager’s supervision teams This gives a total of 20 teams with 190 relationships

Established Relationships A total of 90 teams have established relationships with some of the other teams and there are a total of 1687 established relationships Established Relationships Indicator E R =1687/2126=0.79

The relationship fluctuation indicator F E = 0.81 This reflects a strong influence of established relationships throughout the project because both E R and F E are comparatively high Construction management strategy relies on established relationships between construction management company and trade contractors

Relationship Quality Indicator for established relationships ranges from 0.40 to 0.98 Total Relationship Quality Indicator 1195/2126=0.56 Although there are a number of high values for individual Relationship Quality Indicators, the total Relationship Quality Indicator is no more than reasonably good because there are 439 boundary relationships in this project out of possible 2126

The project organisation is not overly complex There are 31 time intervals out of a potential maximum of 207 The intervals are relatively short in comparison to total project duration (prevent escalation of problems when teams interact for a prolonged period) Relationships configuration complexity indicator = 0.875

The past performance of the 104 teams over their previous 10 projects provides team Performance Variability Indicators which range from 0.45 to 1.0 Performance Variability Indicator Rp=0.85

Historical records for projects using Construction Management gives External Interference Indicator = 0.52

Established Relationships E R =0.79 Relationship Fluctuation F E =0.81 Relationship Quality Q R =0.56 Relationship Configuration C R =0.875 Performance Variability R p =0.85 External Interference I=0.52 Project using Construction Management