Construction Management and Enterprenurship Notes.pdf

BCV501 - Construction Management & Entrepreneurship Notes

1. CONSTRUCTION MANAGEMENT &
ENTREPRENEURSHIP
BCV501
Presented By,
Mr Puneeth K
Assistant Professor
Dept of Civil Engineering
ATMECE, Mysuru

2. SYLLABUS
MODULE1:
PlanningandScheduling:Constructionprojectformulation–constructionmanagement,definescope–
scopemanagement,typesofprojectplanninganditsmanagement,Statutoryandregulatoryrequirements-
layoutandbuildingplanapproval,contract,FireandSafety,Quality,Environmental,commencement
certificate,legalandpublicpolicies.
Schedulemanagement–WBS,BarCharts,SequencingandDependency,NetworkDiagram,Activity
Duration,CriticalPathMethod,PERT,Casestudy.
CostManagement-Creatingschedules,AssigningResources,Cost,Evaluation,OptimizationandTracking.
ATMECE 2

3. MANAGEMENT
•Characteristics of management
•Functions of management
•Objectives of Management
•Importance and purpose of planning process
•Types of plans

4. MANAGEMENT
FOUR ASPECTS:
•ECONOMIC PERFORMANCE
•DIRECTING PEOPLE
•DECISION MAKING
•FUNCTIONS

5. •Managementistheartofgettingthingsdonethroughpeople.
•Managementistheprocessofplanning,organizing,leadingandcontrollingtheeffortsof
organizationmembers.
•Managementistheprocessofworkingwithandthroughotherstoachieveorganizationalgoalsin
achangingenvironment.
•Managementistheprocessofcoordinatingworkactivitiessothattheyarecompletedeffectively
andefficiently.

6. CHARACTERISTICS OF
MANAGEMENT

7. FUNCTIONS OF
MANAGEMENT
1.PLANNING:
❑Itisconsideredasprimaryfunctionof
management.
❑Itisafunctionwhichdetermines‘what’
shouldbedone.
❑Itistheprocessofdeterminingthebusiness
objectiveandchartingoutthemethodsof
attainingit.

8. 2.ORGANIZING:
❑Itinvolvesinestablishingauthority–responsibilityamongthepeopleworkingingroups.
❑Involvescreatingastructurethatfacilitatestheachievementofgoals.
❑ItconsistsofHumanorganizationandmaterialorganization.
3.STAFFING:
❑Involvesprovidinghumanresources.
❑Involvesprocessofrecruiting,training,developing,compensatingandevaluatingemployeesand
maintainingthisworkforcewithproperincentivesandmotivations.

9. 4.DIRECTING:
❑Processofdirectingthehumanresourcetoperformthenecessarytasksaspertheplans.
❑Itinvolvesimportantcomponents:
a)Communicating
b)Leading
c)Motivating
d)Supervising
5.CONTROLLING :
❑Establishingstandardsofperformance.
❑Measuringcurrentperformanceandcomparingitagainstestablishedstandards.
❑Takingactiontocorrectanyperformancethatdonotmeettheobjective.

10. OBJECTIVES OF
MANAGEMENT
•ECONOMICOBJECTIVE–Maximizingonprofits,growthofcompany&itssurvival.
•SOCIALOBJECTIVE–Tomakeavailableemploymentopportunities,tosaveenvironmentfrom
gettingpolluted,tocontributeinimprovinglivingstandards
•HUMANOBJECTIVE-toensureaseamlessexperienceforthestaffandotherpeopleassociatedwith
managementandaccomplishorganizationalgoals.ObjectivesofHRMincludeensuringtheavailability
ofresources,easyaccesstodata,on-timepayroll,ensuringcompliance,etc.
•NATIONALOBJECTIVE-createopportunitiesforgainfulemploymentofpeople.Thiscanbe
achievedbyestablishingnewbusinessunits,expandingmarkets,wideningdistributionchannels,etc.
•OTHEROBJECTIVES

11. LEVELS OF
MANAGEMENT
LOW
LEVEL
MIDDLE
LEVEL
TOP
LEVEL
CHAIRMAN
PRINCIPAL/HOD’S
FACULTIES

12. PLANNING
❑Planningisfundamentallyamentalpredispositiontodothingsinanorderlyway,tothink
beforeacting,andtoactinlightsoffactsratherthanguesses.
Ex:-“Developmentofacademicallyexcellent,culturallyvibrant,sociallyresponsibleand
globallycompetenthumanresources”.

13. CHARACTERISTICS OF PLANNING

14. IMPORTANCE OF PLANNING
•Reduced uncertainties and Risks
•Better Coordination
•Improved operational efficiency
•Easy implementation of change
•Base for controlling

15. Based on the Nature
of planning
Based on Time
Horizon
Based on scope and
Degree of details
Based on Frequency
of Use
TYPES OF
PLANNING

16. 1.BasedontheNatureofplanning:
•FormalPlanning
•InformalPlanning
2.BasedonTimeHorizon:
•ShorttermPlans
•Intermediatetermplans
•Longtermplans

17. 3. Based on scope and degree of details:
•Strategic Planning (SWOT)
•Intermediate Planning (Polishing)
•Operational Planning (SHORT TERM)
4. Based on Frequency of Use:
•Single use plans
•Standing Plans

18. STEPS IN PLANNING

19. Basic components of Planning:
1.Goal:Thetargetsandresultsthatmanagershopetoachieve.
2.ActionStatement:Meansbywhichanorganizationgoesaheadtoattainitsgoal.

20. CONSTRUCTION PROJECT FORMULATION
•Phase 1: Pre-project Conception and Decision-making
•Phase 2: Project Planning and Design
•Phase 3: Estimating Cost of Labor, Materials & Equipment
•Phase 4: Selecting Contractors
•Phase 5: Project Mobilization
•Phase 6: Operation and Construction
•Phase 7: Termination and Closure

21. CONSTRUCTION PROJECT FORMULATION
Conceptual
Design
Preliminary
Design
Detailed
DesignConstruction
Testing,
Commission
& Handover

22. CONSTRUCTION MANAGEMENT
➢Constructionmanagementcomprisesofsystematicapproachestomanage“TRIPLE
CONSTRAINTS”.
➢Men,Materials,Machinery&Moneyaretheresourceinconstructionmanagement.
➢Itdoesnotincludedesignorconstructionservices.

23. IMPORTANCE OF CONSTRUCTION MANAGEMENT
•Maximumproductionatleastcost.
•Optimumutilizationofresources.
•Completionofprojectintimeandextractspotentialtalents.

24. PROJECT
MANAGER
DESIGN
MANAGER
QUANTITY
SURVEYOR
SCHEDULER
CONTRACT
MANAGER

25. NECESSITY OF CONSTRUCTION MANAGEMENT
•Tocheckthewastageofmaterialandlabour.
•Toarrangethecompletionofworkinminimumpossibletime.
•Toimprovethequalityandspeedofworkbyusingmodernequipment.
•Toeffecttheeconomyinthecostofconstruction

26. OBJECTIVES OF CONSTRUCTION MANAGEMENT
➢Properplanningandorganizing.
➢Workshouldbeexecutedasperspecifications(Prescriptive,Performance,Proprietary).
➢Workshouldbeproperlysupervisedbyqualifiedandtrainedstaff.
➢Workshouldbeexecutedeconomically.

27. PROJECT ORGANIZATION
Principles
1.Objectives
2.Specialization
3.Co-ordination
4.Authority & Responsibility
5.Span of control
6.Balance
7. Principle of continuity
8. Uniformity
9. Unity of command
10. Efficiency

28. ADVANTAGES OF ORGANISATION
•Preventsduplicationofwork
•Minimizesconflictbetweenindividuals
•Itaidsinwagesalaryandadministration
•Permitsexpansionwithadequatecontrol

29. TYPES OF ORGANIZATION
1.LineorMilitaryOrganization

30. 2. LINE AND STAFF ORGANIZATION

31. 3. FUNCTIONAL ORGANIZATION

32. 4. MATRIX ORGANIZATION

33. MANAGEMENT FUNCTIONS (CONSTRUCTION PROJECT)
1.Project Management Planning
2.Cost Management
3.Time Management
4.Quality Management
5.Contract Administration
6.Safety Management

34. MANAGEMENT STYLES
1.AutocraticorAuthoritarianStyle:Amanagerwhotendstomakeunilateraldecisionand
centralizesauthority.
2.DemocraticorParticipativestyle:Amanagerwhotendstoinvolvethegroupindecision
making.
3.Laissez–fairorFreeReinstyle:Amanagerwhogenerallygivesthegroupcomplete
freedom.

35. DIFFERENCE BETWEEN AUTOCRAT & DEMOCRAT
Sl.No Autocrat Democrat
1. It leans on authority It leans on commitments
2. Requires no input, makes every
decision
Requires input and suggestions for
making decisions
3. Discourages workers by threatEncourages workers by developing
trust
4. Thorough knowledge is mustLeans from subordinates
5. It shifts the reason of
failure/problems
It solves the problem
6. Reties on controls Depends on goals
7. It fires others It inspires others

36. CONSTRUCTION PLANNING & SCHEDULING
•Types of project plans
•Work breakdown structure
•Grant chart
•Preparation of network diagram

37. OBJECT OF PLANNING
•Toexecuteworkinanorganizedandstructuredmanner.
•Toreducerework.
•Toestablishqualitystandards.
•Toknowdurationofeachactivity.
•Procurementofmaterialsinadvance.

38. PRINCIPLES OF PLANNING
•The plan should provide information in a readily understandable form.
•Plan should be realistic.
•Plan should be flexible.
•Plan should be comprehensive.

39. ACTIVITIES INVOLVED IN CONSTRUCTION PLANNING
1.Definingthescopeofwork
2.Identifyingactivitiesinvolved
3.Establishingprojectduration
4.Definingproceduresforcontrollingandassigningresources
5.Developingappropriateinterfaces
6.Updatingandrevisingplans

40. TYPES OF PROJECT PLANS
1.ProjectConceptualplan
2.Projectpreliminaryplan
3.Detailedconstructionplan
4.Timeplan
5.Manpowerplan
6.Materialplan
7.Constructionequipmentplan
8.Financeplan

41. SCHEDULING
•Itisamechanicalprocessforsettingthevariousplannedactivitiesinorderbyfixingthe
startingandfinishingdatesofeachactivity.
•Construction,Material,Labour,EquipmentandExpenditurearedifferenttypesofScheduling
TYPES OF SCHEDULE
1.Constructionschedule
2.Labourschedule
3.Materialschedule
4.Equipmentschedule
5.Expenditureschedule

42. Thistermexpressestwotypesofrequirements:
(i)Statutoryrequirements
(ii)Regulatoryrequirements
Bothstatutoryrequirementsandregulatoryrequirementsarethoserequirementsthatarerequiredbylaw.These
requirementsarenon-negotiableandmustbecompliedwith.Failuretocomplyalegalrequirementmayresultinafine
orpenaltyandpossiblyacustodialsentenceforthepersonorpersonsresponsibleororganizationforsuchfailure.

43. ❑“Statutoryreferstolawspassedbyastateand/orcentralgovernment,whileregulatoryreferstoarule
issuedbyaregulatorybodyappointedbyastateand/orcentralgovernment.”
❑Statutoryrequirementsarethoserequirementswhichareapplicablebyvirtueoflawenactedbythe
government.
❑Theseareenactedbypassingthelawinthelegislativeassemblyorparliament.Aregulatoryrequirement
canbetermedasadministrativelegislationthatconstitutesorconstraintsrightsandallocates
responsibilities.
❑Itissomewhatdifferentfromthestatutorylegislationandtherecanbefollowingtypesofregulations
applicableonanorganization

44. Theterm‘statutoryandregulatoryrequirements’hasbeenusedin0.1Generalofthisstandard,whichstates,‘The
potentialbenefitstoanorganizationofimplementingthequalitymanagementsystembasedonthisinternational
standardarei)theabilitytoconsistentlyprovideproductsandservicesthatmeetthecustomerandapplicablestatutory
andregulatoryrequirements.

45. StatutoryRequirements
•BuildingCodes:Compliancewithnationalandlocalbuildingcodesthatdictatedesign,safety,andconstruction
standards.
•ZoningLaws:Adherencetozoningregulationsthatdeterminelanduse,buildingheight,density,andsetbacks.
•EnvironmentalRegulations:Assessmentofenvironmentalimpactandcompliancewithregulationssuchasthe
NationalEnvironmentalPolicyAct(NEPA)orlocalequivalents.
•HealthandSafetyRegulations:Ensuringthatplansmeetpublichealthandsafetystandards.

46. RegulatoryRequirements
•PlanningPermission:Obtainingthenecessarypermitsfromlocalplanningauthoritiesbeforebeginningconstruction.
•SiteInspections:Scheduledinspectionsduringconstructiontoensurecompliancewithapprovedplansandcodes.
•OccupancyPermits:Securingoccupancypermitstoconfirmthatthebuildingissafeandhabitableonceconstructionis
completed.
LayoutBuildingPlan
•DesignSubmission:Preparingandsubmittingdetailedarchitecturalandengineeringplansthatincludesitelayout,floor
plans,elevations,andsections.
•CompliancewithGuidelines:Ensuringthatthedesignalignswithlocalguidelinesonaesthetics,historicalpreservation,
andcommunitystandards.
•PublicConsultation:Engagingwiththecommunity,ifrequired,toaddressconcernsorobjectionsregardingtheproposed
development.

47. ApprovalProcess
•ApplicationSubmission:Submittingaformalapplicationtotherelevantauthoritiesalongwithallrequired
documentationandfees.
•ReviewPeriod:Undergoingareviewperiodduringwhichauthoritiesassesstheplanforcompliancewithallapplicable
codesandregulations.
•ApprovalorDenial:Receivingofficialapprovalordenial,oftenwithstipulationsorconditionsattached.
ContractualRequirements
•ContractualObligations:Draftingcontractsthatoutlinetheresponsibilitiesofallpartiesinvolved,includingarchitects,
contractors,andsubcontractors.
•InsuranceandBonds:Ensuringthatnecessaryinsurance(liability,worker'scomp)andbonds(performance,payment)
areinplacetoprotectagainstpotentialrisks.
•ComplianceClauses:Includingclausesthatrequireadherencetoallstatutoryandregulatoryrequirementsasacondition
ofthecontract.

48. WORK BREAKDOWN STRUCTUTRE
•ConvertsProjectobjectivestospecificdeliverables.
•Itisatechniqueinprojectmanagementwheretheprojectisbrokendownintothemanageable
chunks.
•Taskorientedfamilytree.
•WBSdividesandsubdividesaprojectintodifferentcomponents.
•Planning=
(Workbreakdown+WorkSequencing)

49. CLASSIFICATION OF PROJECT WORK BREAKDOWN LEVELS
1.SUB PROJECT LEVEL
2.TASK LEVEL
3.WORK PACKAGE LEVEL
4.ACTIVITY LEVEL

50. METHODS OF SCHEDULING
•GANTT CHARTS & BAR CHARTS
•MILESTONE CHARTS
•NETWORK ANALYSIS

51. GANTT CHARTS

52. •Theyareveryeasytounderstandandfollow.
•Theyrelateactivitiesandtheirdurationstocalendardays.
•Theydon’tshowtheinterrelationshipamongtheactivities(Impactofdelay).

53. NETWORK ANAYSIS
•AOA (Activity on Arrow)
•AON (Activity on Node)
NETWORK TYPES:
•CPM Network (Critical Path Method)
•PERT Network (Program Evaluation Review Technique)

54. ACTIVITY ON ARROW (AOA)
Example: Project Wall Construction
This can be broke down to
Earth Work = 2 days
Brick Work = 6 days
Plastering = 2 days
Total time = 10 days
AOA representation of this Project

55. ACTIVITY ON ARROW (AOA)

57. ACTIVITY ON NODE (AON)
InthistypeofNetwork,theactivitiesaredenotedbycirclesorBoxescallednodes,andthe
immediatepredecessorrelationshipbetweenthetwoactivitiesisshownbyanarrow
connectingthetwonodes.

58. ACTIVITY ON NODE (AON)

59. CPM PERT
It’s a activity orientedIt’s a event oriented
Projects of known
magnitude
Projects under research
work
Duration of the each activity
can be determined
It cannot be
Applied to construction
Research& Development
Industry
Cost is the direct controlling
factor
Time is the controlling
factor