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1、17.1 SECTION SEVENTEEN CONSTRUCTION PROJECT MANAGEMENT Robert F. Borg Chairman, Kreisler Borg Florman General Construction Company Scarsdale, New York Construction project management encompasses organizing the fi eld forces and backup personnel in administrative and engineering positions necessary f
2、or super- vising labor, awarding subcontracts, purchasing materials, record keeping, and fi - nancial and other management functions to ensure profi table and timely perform- ance of the job. The combination of managerial talents required presupposes training and experience, both in fi eld and offi
3、ce operation of a construction job. Proper construction project management will spell the difference between a suc- cessful building or contracting organization and a failure. This section outlines practical considerations in construction project management based on the operations of a functioning g
4、eneral contracting organization. Wherever possible, in illustrations given, the forms are from actual fi les for specifi c jobs. These forms, therefore, not only illustrate various management techniques, but also give specifi c details as they apply to particular situations. 17.1TYPES OF CONSTRUCTIO
5、N COMPANIES The principles of construction project management, as outlined in this article, apply equally to those engaged in subcontracting and those engaged in general contract- ing. Small Renovation Contractors.These companies generally work on jobs re- quiring small amounts of capital and the ty
6、pe of work that does not require much estimating or a large construction organization. They usually perform home alter- ations or small commercial and offi ce work. Many small renovation contractors have their offi ces in their homes and perform the paper work at night or on weekends after working w
7、ith the tools of their trade during the day. The ability to grow from this type of contractor to a general contractor depends mainly on the training and business ability of the individual. Generally, if one is intelligent enough 17.2SECTION SEVENTEEN to be a good small renovation contractor, that pe
8、rson may be expected to eventually move into the fi eld of larger work. General Contractors.These companies often are experts in either new buildings or alteration work. Many building contractors subcontract a major portion of their work, while alteration contractors generally perform many of the tr
9、ades with their own forces. Some general contractors specialize in public works. Others deal mainly with private and commercial work. Although a crossing of the lines by many general contractors is common, it is often in one or another of these fi elds that many general contractors fi nd their niche
10、. Owner-Builder.The company that acts as an owner-builder is not a contractor in the strict sense of the word. Such a company builds buildings only for its own ownership, either to sell on completion, or to rent and operate. Examples of this type of company include giants in the industry, and many o
11、f them are listed on the various stock exchanges. Many owner-builders, on occasion, act in the capacity of general contractor or as construction manager (see below) as a sideline to their main business of building for their own account. Real Estate Developer.This is a type of owner-builder who, in a
12、ddition to build- ing for personal ownership, may also build to sell before or after completion of the project. One- and two-family home builders are included in this category. Professional Construction Manager.A professional construction manager may be defi ned as a company, an individual, or a gro
13、up of individuals who perform the functions required in building a project as the agent of an owner, but do so as if the job was being performed with the owners own employees. The construction management organization usually supplies all the personnel required. Such person- nel include construction
14、superintendents, expediters, project managers, and account- ing personnel. The manager sublets the various portions of the construction work in the name of the owner and does all the necessary offi ce administration, fi eld supervision, requisitioning, paying of subcontractors, payroll reports, and
15、other work on the owners behalf, for a fee. Generally, construction management is performed without any risk of capital to the construction manager. All the fi nancial obligations are contracted in the name of the owner by the construction manager. (See Art. 17.9.) Program Manager.A general contract
16、or or construction manager may expand services by undertaking program management. Such services will include: demo- lition of existing buildings on the site; devising and providing fi nancial analyses of new buildings or a program to replace what was there, or for the acquisition of a new site; hiri
17、ng an architect and other design professionals on behalf of the owner and supervising their services; performing preconstruction services during the plan- ning stage; advertising for and receiving bids from contractors for the new work; consulting on fi nancing and methods of payment for the work; s
18、upervising the contractor; obtaining tenants, whether commercial, residential, or industrial for the completed project; helping to administer and manage the complete project. Obviously, the comprehensive services outlined above will require that the gen- eral contractor or construction manager augme
19、nt his staff with trained architects, accountants, real estate professionals, and management and leasing experts. CONSTRUCTION PROJECT MANAGEMENT17.3 Package (Turnkey) Builders.Such companies take on a contract for both design and construction of a building. Often these services, in addition, includ
20、e acquisition of land and fi nancing of the project. Firms that engage in package building usually are able to show prospective clients prototypes of similar buildings completed by them for previous owners. From an inspection of the prototype and discussion of possible variations or features to be i
21、ncluded, an approximate idea is gained by the prospective owner of the cost and function of the proposed building. Package builders often employ their own staff of architects and engineers, as well as construction personnel. Some package builders subcontract the design por- tion to independent archi
22、tects or engineers. It is important to note that, when a package builder undertakes design as part of the order for a design-construction contract, the builder must possess the necessary professional license for engineering or architecture, which is required in most states for those performing that
23、function. Sponsor-Builder. In the fi eld of government-aided or subsidized building, partic- ularly in the fi eld of housing, a sponsor-builder may be given the responsibility for planning design, construction, rental, management, and maintenance. A sponsor guides a project through the government pr
24、ocessing and design stages. The sponsor employs attorneys to deal with the various government agencies, fi nancial institu- tions, and real estate consultants, to provide the know-how in land acquisition and appraisal. On signing the contract for construction of the building, the sponsor assumes the
25、 builders role, and in this sense functions very much as an owner- builder would in building for its own account. 17.2CONSTRUCTION COMPANY ORGANIZATION How a construction company organizes for its work depends on number and size of projects, project complexity, and geographical distribution of the w
26、ork. Sole Proprietor.This is a simple form of organization for construction contractors. It is often used by subcontractors, including those licensed in plumbing, electrical, or mechanical work. The advantage of operating as a sole proprietorship is that taxes on profi ts are much lower for individu
27、al owners. But there is the disadvantage of having the personal exposure to potential debts associated with a disastrous job. Partnership.This is the joint ownership and operation of a company by two or more persons. Each partner, however, is personally liable for all the debts of the partnership. P
28、rofi ts and losses are shared in some manner predetermined by the partners. A partnership comes to an end with the death of one of the partners. (For typical provisions to be included in a partnership agreement, see Richard H. Clough, Construction Contracting, John Wiley for a bank to be available f
29、or temporary loans or for writing letters of credit; for equipment loans; and for advice on in- vestments or for custodian accounts for the handling of surplus funds of the con- tractor. Trade Associations. Many contractors fi nd it advantageous to become a member of a local trade association or loc
30、al branches of national organizations, such as the Associated General Contractors of America and the Construction Management As- sociation of America. Before doing so, however, the contractor should investigate and be thoroughly acquainted with the rules of such associations, particularly with regar
31、d to labor bargaining. In most cases, membership in a local trade association binds the contractor to permit that association to do all of its labor-contract bargaining with local labor unions and the various construction trades. Furthermore, if there is a strike by any of the local labor organizati
32、ons, the members must obey the dictates of the asso- ciation and may be required to join in the associations stand against the strikers. On the other hand, a contractor who is not a member of the local association is free to bargain individually with the trade unions involved and can sign their con-
33、 tract as an independent. Often, labor unions, during a strike, will be willing to offer an interim contract to independent contractors under which terms the contractor will be able to resume work on agreeing to be bound by the terms of the labor agreement consummated to settle the strike, effective
34、 retroactively. 17.4SOURCES OF BUSINESS For continuity of operation, a construction organization needs a supply of new projects to build. After a company has been in existence for a long time and built up a reputation, new business may come to it with less effort. But most companies must work hard a
35、t obtaining new jobs. Furthermore, work that happens to come in may not be of a type that the organization prefers. To fi nd that type requires serious, skillful efforts. To be successful, a contracting company should have a person specifi cally as- signed to attract new business. This person might
36、be the proprietor of the construc- tion company. In large fi rms, a complex organization with sales and public relations personnel, backed up by engineers and cost estimators, is used. The organization should be geared to follow up on all possible sources of new business. Public Works.The following
37、sources for leads to new jobs and submitting pro- posals can be used for public work bids: Dodge Bulletin, or other construction industry newsletters. ENRPulse and Offi cial Proposals sections. Bid invitations, as a result of requests to be placed on bid-invitation mailing lists of various governmen
38、t agencies. Newspaper and trade-paper announcements and articles. Offi cial publications of government agencies that contain advertisements of con- tracts to be bid. 17.8SECTION SEVENTEEN Private Contracts.All the sources for public works. Contacts with and letters to architects and designers. Conta
39、cts with and letters to owners and facilities personnel. Personal recommendation. Sponsorship.Applying for sponsorship of any of the following: Government-encouraged housing programs. Urban redevelopment. Purchase of land, with fi nancing of building construction to be provided by various government
40、 programs. Owner-Builder/Developer Construction and rental of apartment buildings. Construction and rental of commercial and offi ce facilities. Construction and leasing of government buildings. Professional Construction Manager Applications to city and state agencies or large corporations awarding
41、this type of contract. All the sources for obtaining private contracts. Program Manager Applications to city, state, and federal agencies who are awarding this type of contract. All resources for obtaining private contracts as well as government contracts. Uses of Dodge Bulletin.From a typical Dodge
42、 Bulletin (McGraw-Hill Informa- tion Systems Company, New York), a subscriber to this daily information bulletin can gain the following information: Contracts for which general contract and prime bids for mechanical and electri- cal work, etc., are being requested. A contractor interested in any of
43、these types of work can obtain the plans and specifi cations from owners or designers, whose names and addresses are given, and submit a bid. For contracts awarded, lists of names of contractors and amounts of contracts. Subcontractors or material suppliers who are interested in working for the con-
44、 tractors can communicate with those who have received the awards. Lists of jobs being planned and estimates of job costs. Contractors and subcon- tractors who are interested in jobs in those locations and the sizes indicated can communicate directly with the owner. Additional information that may b
45、e obtained from the Dodge Bulletin includes lists of subcontractors and suppliers being employed by general contractors on CONSTRUCTION PROJECT MANAGEMENT17.9 other jobs that are already under way, and tabulation of the low bidders on jobs bid and publicly opened. 17.5WHAT CONSTITUTES THE CONTRACT D
46、OCUMENTS? Generally, plans and specifi cations for a project are completed before issuance to contractors. This, however, is not always the case. For example, during the course of design, the architect may distribute progress plans and specifi cations for review by government agencies or for pricing
47、 by contractors. Sometimes, the owner may be anxious to enter into a contract or start a job before the plans and specifi cations have been totally completed or approved. Therefore, to the general contractor, the most important thing to be alert to regarding plans and specifi cations is: What consti
48、tutes the agreed-upon plans and specifi cations and other contract documents that pertain to the project? It is surprising how often this question is neglected by those entering into con- struction contracts and by attorneys and others concerned with signing of contracts. A clear understanding of wh
49、at constitutes the contract documents and the revisions, if any, is one of the most urgent aspects of construction contracting. Furthermore, a precise list of what constitutes the contractors obligation under the contract is essential to proper performance of the contract by the contractor. In general, the contract documents should be identifi ed and agreed to by both parties. A listing of the contract documents should be included as part of every contract. Contract documents generally include the following: Plans (list each plan and revision date of each plan, together w