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Recently the global construction industry has witnessed great technological evolution. Several useful applications emerges out which can make your construction project management process superior from project planning to achievement. The following are some newest applications useful for effective construction project management.

PlanGrid: This construction application will be useful if anyone directly performs with architect in future construction projects. The construction software enables the users to distribute plans, markups, photos, specifications, reports with the whole project team members effortlessly. So the possibilities for all types of mis-communications are reduced to a great extent and all the information can be easily allocated throughout planning stage to all the parties involved with the construction project.

Material Estimator: With this handy construction tool the contractors, designers, remodelers, engineers, architects as well as other building professionals will be able to calculate feet inch fraction construction math and building materials estimating. This construction application deals with square footage concerning any project and offers a instant estimate of the total materials (drywall, decks, fencing, gravel, concrete, flooring and paint etc.) utilized in a construction project.

Build It Live: It is (SaaS) construction project management software program useful for owners, architects, engineers, general contractors, vendors, laborers, who are associated with the project, to get all the updated information concerning the latest drawings, schedules, and changes online on the cloud. So the concerned parties in the planning & building of the projects will get access to the above information. If any modification is occurred to a project, all the project stakeholders will be notified about the modification automatically through the email.

Control Center 7: Control Center 7 allows the users to keep a track of their jobsite from any remote location. This construction application performs in tandem with cameras already set up in the jobsite and provides you visual access to the job ceaselessly. Get crucial visual information long after your project is finished as well as a complete online database of recorded images from your camera system.

Take photograph & post detailed views to be conveyed to the team members. Trim down lag time while finding any complication on site and resolving it. An immediate photo is used to provide change orders, a recently completed milestone or what materials are required for giving order.

SmartBidNet: This commercial construction bidding software can allow you to keep track on the financial information of vendors and subcontractors as well as bid project data, documents etc. associated with the project through a web-based and mobile platform. Just put the bid information into the app to have some ideas on whom to select. Besides, measurements and other statistics are also affixed to each bid for taking effective decision.

With bid invitations, the subcontractors will be able to get customized access to the online plan room. One can keep track of what plan files they view and download and collaborate on estimating through takeoff integrations.

Project Quote Estimate: It is a handy construction field estimator in the app store. It consists of 19 diversified calculators and tools for materials and costs that can generate an on-site estimate efficiently. This application is only compatible with residential properties at present.

This application lets building contractors to produce professional quotes instantly for any client in the construction site as well as estimate costs and quantities quickly for any renovation project. Just create a pdf quote and sent it to the clients through email.

iQuick Contract Maker: Quick Contract Maker can be applied to generate a legal contract instantly and effortlessly through any phone or handheld appliance. The application includes pre-written information useful for creating legal contract. It can be customized for any contract agreement. All stages of the contract are contained with the application, just select the section according to your choice and add it to the device and send it to the clients through email.

One can apply it for diverse projects which range from Construction, Landscape, Real Estate, Movers, Home Repair, etc.

Reference : http://tech.co/

To manage a project, a company or authority has to set up a project organization, which can supply
the resources for the project and service it during its life cycle.
There are three main types of project organizations:
1 Functional;
2 Matrix;
3 Project or task force.

 

Figure 1 shows a diagrammatic representation of the three basic project management organizations, Functional, Project (or Task Force) and Matrix.

Functional organization

 
This type of organization consists of specialist or functional departments each with their own departmental manager responsible to one or more directors. Such an organization is ideal for routine operations where there is little variation of the end product. Functional organizations are usually found where items are mass produced, whether they are motor cars or sausages. Each department is expert at its function and the interrelationship between them is well established.
 

In this sense a functional organization is not a project-type organization at all and is only included because when small, individual, one-off projects have to be carried out, they may be given to a particular department to manage. For projects of any reasonable size or complexity, it will be necessary to set up one of the other two types of organizations.

Matrix organization

This is probably the most common type of project organization, since it utilizes an existing functional organization to provide the human resources without disrupting the day-to-day operation of the department. The personnel allocated to a particular project are responsible to a project manager for meeting the three basic project criteria, time, cost and quality.
 

The departmental manager is, however, still responsible for their ‘pay and rations’ and their compliance with the department’s standards and procedures, including technical competence and conformity to company quality standards.

The members of this project team will still be working at their desks in their department, but will be booking their time to the project. Where the project does not warrant a full-time contribution, only those hours actually expended on the project will be allocated to it.
 

The advantages of a matrix organization are:
1 Resources are employed efficiently, since staff can switch to different projects if held up on any one of them;
2 The expertize built up by the department is utilized and the latest state-ofthe- art techniques are immediately incorporated;
3 Special facilities do not have to be provided and disrupting staff movements are avoided;
4 The career prospects of team members are left intact;
5 The organization can respond quickly to changes of scope;
6 The project manager does not have to concern himself with staff problems.
 

The disadvantages are:
1 There may be a conflict of priorities between different projects;
2 There may be split loyalties between the project manager and the departmental manager due to the dual reporting requirements;
3 Communications between team members can be affected if the locations of the departments are far apart;
4 Executive management may have to spend more time to ensure a fair balance of power between the project manager and the department manager.

All the above problems can, however, be resolved if there is a good working relationship between the project manager and the department heads. At times both sides may have to compromize in the interests of the organization as a whole.
 

Project organization (task force)

From a project manager’s point of view this is the ideal type of project organization, since with such a set up he has complete control over every aspect of the project. The project team will usually be located in one area which can be a room for a small project or a complete building for a very large one.

Lines of communication are short and the interaction of the disciplines reduces the risk of errors and misunderstandings. Not only are the planning and technical functions part of the team but also the project cost control and project accounting staff. This places an enormous burden and responsibility on the project manager, who will have to delegate much of the day-to-day management to special project coordinators whose prime function is to ensure a good communication flow and timely receipt of reports and feedback information from external sources.
 

On large projects with budgets often greater than £0.5 billion, the project manager’s responsibilities are akin to those of a managing director of a medium-size company. Not only is he concerned with the technical and commercial aspects of the project, but has also to deal with the staff, financial and political issues, which are often more difficult to delegate.

There is no doubt that for large projects a task force type of project organization is essential, but as with so many areas of business, the key to success lies with the personality of the project manager and his ability to inspire the project team to regard themselves as personal stakeholders in the project.
 

One of the main differences between the two true project organizations (matrix and task force) and the functional organization is the method of financial accounting. For the project manager to retain proper cost control during the life of the project, it is vital that a system of project accounting is instituted, whereby all incomes and expenditures, including a previously agreed overhead allocation and profit margin, are booked to the project as if it were a separate self-standing organization. The only possible exceptions are certain corporate financial transactions such as interest payments on loans taken out by the host organization and interest receipts on deposits from a positive cash flow.

The estimating team will consider construction methods and employ planning techniques to:

1. Highlight any critical or unusual activities.
2. Examine alternative ways of tackling the work.
3. Calculate optimum durations for temporary works and plant.
4. Reconcile the labour costs in the estimate with a programme showing resources.
5. Determine the general items and facilities priced in the preliminaries section of the bill.
6. Check whether the time for completion is acceptable.

The effort needed will depend on the size and complexity of the project, the proposed use of heavy plant and the design of major temporary works. Estimating for civil engineering work in particular is dependent on an examination of alternative methods and pre-tender programmes. A civil engineering estimator usually produces a resourced programme to price major aspects of the work operationally. 

Pre-tender programmes are prepared by either the estimator or planning engineer, or more likely by working together.The choice depends on company policy, size of project and type of work. The planning engineer’s contribution can be seen as producing an appraisal of labour and plant resources and general items – in other words the estimator expresses his solutions in terms of cash, the programmer deals with time. The aim is to reconcile one with the other.

In a competitive market it is important to look for ways to construct the project more economically. Applying planning techniques can have opposite consequences. Increasing the value of the tender when problems are identified and reducing the estimate when methods can be adopted which reduce individual and overall durations. The team must, however, look for the solution, which reflects the ‘true’ cost of construction.The role of the planning engineer is wider than just producing a programme. His input to a tender can also include:

1. Producing site layout drawings, which are used to locate temporary facilitates, such as concrete batching plant, cranage, access routes, restrictions, areas for accommodation and storage, location of services, overhead service, temporary spoil heaps, and areas which will need reinstatement.
2. Examining the most suitable methods in relation to the design and the temporary works required.
3. Preparing method statements not only for pricing purposes but also for submission to clients or consultants when requested.
4. Producing cashflow forecast charts for management and clients who need them.
5. Providing staff structure and resource histograms for general labour, production labour and plant.

The planning engineer will often have a better understanding of current site practice and will be better placed to collect data from monitoring exercises on site. His experience of completed work will be important especially where the overall duration of a project could be reduced. Shorter contract periods can have a substantial effect on the cost of preliminaries where time-related costs (mainly staff, site accommodation, cranage and scaffolding) account for as much as 12–20% of a tender figure.

Operational estimating is a form of analytical estimating where all the resources needed for part of the construction are considered together. For example, an estimator pricing manholes using the Civil Engineering Standard Method of Measurement (CESMM) needs to gauge the time taken to build a complete manhole, whereas a building estimator is expected to price all the individual items for excavation, concrete work, brickwork etc., measured under the rules of the appropriate work sections.

The following examples show some of the many other situations where work is priced as whole packages:

1. Excavation including trimming, consolidation and disposal;
2. Placing concrete in floor slabs including fabric reinforcement, membranes, isolation joints and trowelling;
3. Formwork to complex structures including a unique design, hired-in forms and falsework;
4. Drain runs including excavation, earthwork support, bedding, pipework and backfill;
5. Repairs which often involve more than one trade or a multi-skilled operative;
6. Roof trusses including the use of a crane, a suitable gang of operatives and temporary works.

It must be said that building estimators have become skilled at applying production outputs to units of work and then occasionally employing operational estimating techniques to check the results. Civil engineers, on the other hand, usually examine methods and durations before pricing the work.This is because different construction methods for civil engineering can have a significant effect on costs. There is also a greater reliance on the specification, the drawings and preambles which give the item coverage. The term ‘operational estimating’ is often applied to methods that rely on a forecast of anticipated durations of activities, and a resource levelling exercise. The estimator must start with an appraisal of the details on the drawings, the extent of the work described in the specification and bill, and a study of the site conditions.

Fig: 1 Contractor’s spreadsheet for weighbridge foundation

Next, the sequence of work will be found by considering the restraints brought about by site layout, client’s requirements, the design, time of year, and temporary works.The critical operation at each stage of the construction can then be plotted and the rest of the activities sketched in. Labour and plant schedules can be drawn up for direct work, specialist sub-contractors will be asked for their advice about their work. It may be necessary to change the programme if there are any unwanted peaks and troughs in the resources needed on site. The estimator will then have a list of resources for each operation from which to calculate costs. This approach will often produce a cost based on a particular method for carrying out the work.

If this has brought about a saving in costs the estimator will prepare a method statement so site staff can understand the assumptions made in preparing the estimate. When a building estimator uses operational estimating with a traditional bill of quantities he has great difficulty dividing the cost of a piece of work among all the related bill items. Where, for example, should an estimator put the rate for casting a concrete floor which includes a DPM, fabric reinforcement, power floating and sealer? The PQS often insists on rates being inserted against items that have a value, so there is better financial control during construction. Clearly this is not a problem with a contractor’s bill of quantities produced for design and build or plan and specification projects, because there is no bill of quantities submitted.

Another solution to the problem for building estimators would be to rough price the bill, early on in the tender period and adjust the balancing sums of money when operational methods highlight greater or lower costs.This is commonly done during the final review stage, and the rough pricing technique is popular with those using computer systems.

The advantages of operational estimating are:
1. Activities are examined to select those methods that are practicable.
2. Outputs are based on a programme, which includes holiday breaks, time of year, idle time, facilities available on site etc., giving a more realistic guide to the time needed for labour and plant.
3. Alterations and repair work are usually measured as global items which can be overpriced if all the possible trades are examined separately.
4. In a competitive market, the estimator may only look at the labour and plant needed for the core item of work; such as the brickwork in a manhole assuming the bricklayer can fix the cover while finishing the brickwork and the excavator can dig the pit when it digs the pipe trench.

Figure 1 is a contractor’s bill of quantities for a weighbridge foundation priced analytically. The estimator used an all-in rate of £12.00/hour for all his labour and applied his usual labour outputs from his tables of constants.

The site manager has kept records from previous similar jobs which show that this type of weighbridge foundation usually takes two weeks to construct with four men, and a return visit is needed for two men to grout in the equipment. A backacter and roller costing £28.00/hour is needed for three days.This gives the following net cost for labour and plant:

Labour

4 nr x 2 weeks x 45 hours x £12.00 = 4320.00
2nr x 2 days x 9 hours x £12.00 = 432.00
Total £4752.00

Plant

1 nr x 3 days x 8 hours x £28.00 = £672.00

It can be seen from the comparison that when the project is assessed as a whole, the net cost of labour and plant is more than the total from the unit rate analysis (Fig. 1).The estimator may have used his normal constants for labour and plant without checking whether there is a continuous flow of work for labour and plant resources. Perhaps the site manager should next look at materials wastage that he has experienced, in particular blinding concrete and fabric reinforcement, which could be significantly higher for such a small contract.

If you have decided to start an engineering business, you are about to embark on an exciting journey into the unknown. Working for yourself is different to working for a boss. You are now the master of everything you do. You decide what happens to you and how much money you make. For some, that freedom is liberating, for others, it is terrifying. Becoming a boss won’t be easy. You have loads of things to consider before you make it big. Here are five super tips that you should keep in mind.

Make a financial budget before every quote

When you get your first job, it is easy to let it excite you. Many new businessmen rush into quoting people for a job, before doing their research. Don’t think that taking a little extra time to complete your budget will lose you a client. Many people worry that if they take too long getting back to the client, the client will go with another company. It is your duty to make a budget before you set a quote. If you don’t do that, you could end up losing money on jobs. 

Time management will be your best tool 

Engineering jobs always run longer than they should. You can set yourself aside from the majority of engineering companies by completing jobs on time. Time management is not easy. You need to have great organizational and planning skills. You should make sure that you make a detailed schedule of each day. That means you can plan everybody’s roles and responsibilities before they start work. Usually, engineering companies get just one fee for the entire job. That means that when you are wasting time, you’re also wasting money. 

Every employee plays an integral role 

Don’t dismiss anyone’s ability or skills. In an engineering company, there is a hierarchy system that works within every group. There is no such thing as a small job. Make sure that you appreciate the hard work that everybody is putting into your company. It is vital that you let your staff know how much you appreciate them. It can be easy to take staff for granted. If you do that, your staff will likely find another company for which to work. Take the time to get to know your staff so that you create a strong working relationship with them. 

Choose your material and tools with care 

When you are buying your materials and tools for each job, you might find buying the cheapest items is tempting. Remember, cheap materials never last. You want people to remember you as a quality company. That means that you need to ensure that you get quality materials so that they last. For example, when you’re buying a drawn seamless tube for a job, make sure that it comes with great reviews. Finding the right material for each job is vital to the success of your business, and so you need to make sure that you choose with care. 

Start small and think big later 

You might want to dive into large engineering jobs and take on the world. As with everything, though, you’re going to need to start small. You can’t expect to land a massive job when you first start your business. Your clients want to see a track record of great work from you. That means that you won’t get the big jobs until you have proved you can handle them. No job is ever too small for you to take on when you start your company. Thinking that you’re above certain jobs won’t win you friends or clients. Take any job you can get so that you can start building your portfolio.

Construction is the largest product-based (as opposed to service-oriented) industry in the United States. The dollar volume of the industry is on the order of $1 trillion ($1,000 billion) annually. The process of realizing a constructed facility such as a road, bridge, or building, however, is quite different from that involved in manufacturing an automobile or a television set.

Manufactured products are typically designed and produced without a designated purchaser. In other words, products (e.g., automobiles or TV sets) are produced and then presented for sale to any potential purchaser. The product is produced on the speculation that a purchaser will be found for the item produced. A manufacturer of bicycles, for instance, must determine the size of the market, design a bicycle that appeals to the potential purchaser, and then manufacture the number of units that market studies indicate can be sold. Design and production are done prior to sale. To attract possible buyers, advertising is required and is an important cost center.

Many variables exist in this undertaking, and the manufacturer is at risk of failing to recover the money invested once a decision is made to proceed with design and production of the end item. The market may not respond to the product at the price offered. Units may remain unsold or sell at or below the cost of production (i.e., yielding no profit). If the product cannot be sold so as to recover the cost of manufacture, a loss is incurred and the enterprise is unprofitable. When pricing a given product, the manufacturer must not only recover the direct (i.e., labor, materials, etc.) cost of manufacturing but also the so-called indirect and general and administrative (G&A) costs such as the cost of management and implementation of the production process (e.g., legal costs, marketing costs, supervisory costs, etc.). Finally, unless the enterprise is a non-profit, the desire of the manufacturer is to increase the value of the firm. Therefore, profit must be added to the direct, indirect, and G&A costs of manufacturing.

Manufacturers offer their products for sale either directly to individuals (e.g., by mail order or directly over the Web), to wholesalers who purchase in quantity and provide units to specific sales outlets, or to retailers who sell directly to the public. This sales network approach has developed as the framework for moving products to the eventual purchaser. (See if you can think of some manufacturers who sell products directly to the end user, sell to wholesalers, or sell to retail stores.)

In construction, projects are sold to the client in a different way. The process of purchase begins with a client who has need for a facility. The purchaser typically approaches a design professional to more specifically define the nature of the project. This leads to a conceptual definition of the scope of work required to build the desired facility. Prior to the age of mass production, purchasers presented plans of the end object (e.g., a piece of furniture) to a craftsman for manufacture. The craftsman then proceeded to produce the desired object. If King Louis XIV desired a desk at which he could work, an artisan would design the object, and a craftsman would be selected to complete the construction of the desk. In this situation, the purchaser (King Louis) contracts with a specialist to construct a unique object. The end item is not available for inspection until it is fabricated. That is, because the object is unique, it is not sitting on the show room floor and must be specially fabricated.

Because of the one-of-a-kind unique nature of constructed facilities, this is still the method used for building construction projects. The purchaser approaches a set of potential contractors. Once agreement is reached among the parties (i.e., client, designer, etc.) as to the scope of work to be performed, the details of the project or end item are designed and constructed. Purchase is made based on a graphical and verbal description of the end item, rather than the completed item itself. This is the opposite of the speculative process where design and manufacture of the product are done prior to identifying specific purchasers. A constructed facility is not commenced until the purchaser has been identified. It would be hard to imagine, for instance, building a bridge without having identified the potential buyer. (Can you think of a construction situation in which the construction is completed prior to identifying the buyer?)

The nature of risk is influenced by this process of purchasing construction. For the manufacturer of a refrigerator, risk relates primarily to being able to produce units at a competitive price. For the purchaser of the refrigerator, the risk involves mainly whether the appliance operates as advertised. In construction, because the item purchased is to be produced (rather than being in a finished state), there are many complex issues that can lead to failure to complete the project in a functional or timely manner. The number of stakeholders and issues that must be dealt with prior to project completion leads to a complex level of risk for all parties involved (e.g., designer, constructor, government authorities, real estate brokers, etc.). A manufactured product is, so to say, ‘‘a bird in the hand.’’ A construction project is ‘‘a bird in the bush.’’

The risks of the manufacturing process to the consumer are somewhat like those incurred when a person goes to the store and buys a music CD. If the recording is good and the disk is serviceable, the risk is reduced to whether the customer is satisfied with the musical group’s performance. The client in a construction project is more like a musical director who must assemble an orchestra and do a live performance hoping that the recording will be acceptable. The risks of a failure in this case are infinitely greater. A comparative chronological diagram of the events involved in the manufacturing process versus those in the project construction project process is shown schematically in Figure 1.

Construction project management encompasses organizing the field forces and backup personnel in administrative and engineering positions necessary for supervising labor, awarding subcontracts, purchasing materials, record keeping, and financial and other management functions to ensure profitable and timely performance of the job. The combination of managerial talents required presupposes training and experience, both in field and office operation of a construction job.

Proper construction project management will spell the difference between a successful building or contracting organization and a failure. This section outlines practical considerations in construction project management based on the operations of a functioning general contracting organization. Wherever possible, in illustrations given, the forms are from actual files for specific jobs. These forms, therefore, not only illustrate various management techniques, but also give specific details as they apply to particular situations.

The principles of construction project management, as outlined in this article, apply equally to those engaged in subcontracting and those engaged in general contracting.

Small Renovation Contractors

These companies generally work on jobs requiring small amounts of capital and the type of work that does not require much estimating or a large construction organization. They usually perform home alterations or small commercial and office work. Many small renovation contractors have their offices in their homes and perform the ‘‘paper work’’ at night or on weekends after working with 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 to be a good small renovation contractor, that person may be expected to eventually move into the field 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 trades 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 fields that many general contractors find their niche.

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 of 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 addition to building 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 defined as a company, an individual, or a group 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 owner’s own employees. The construction management organization usually supplies all the personnel required. Such personnel include construction superintendents, expediters, project managers, and accounting personnel.

The manager sublets the various portions of the construction work in the name of the owner and does all the necessary office administration, field supervision, requisitioning, paying of subcontractors, payroll reports, and other work on the owner’s behalf, for a fee. Generally, construction management is performed without any risk of capital to the construction manager. All the financial obligations are contracted in the name of the owner by the construction manager.

Program Manager

A general contractor or construction manager may expand services by undertaking program management. Such services will include: demolition of existing buildings on the site; devising and providing financial analyses of new buildings or a program to replace what was there, or for the acquisition of a new site; hiring an architect and other design professionals on behalf of the owner and supervising their services; performing preconstruction services during the planning stage; advertising for and receiving bids from contractors for the new work; consulting on financing and methods of payment for the work; supervising 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 general contractor or construction manager augment his staff with trained architects, accountants, real estate professionals, and management and leasing experts.

Package (Turnkey) Builders

Such companies take on a contract for both design and construction of a building. Often these services, in addition, include acquisition of land and financing 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 included, 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 portion to independent architects 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 function.

Sponsor-Builder

In the field of government-aided or subsidized building, particularly in the field 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 processing and design stages. The sponsor employs attorneys to deal with the various government agencies, financial institutions, 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 builder’s role, and in this sense functions very much as an owner builder would in building for its own account.

Contracts used in the residential construction industry can be grouped into three main categories:

■ Lump sum contracts
■ Cost plus contracts
■ Unit price contracts

Stipulated Lump Sum Contracts
 

Under the terms of a stipulated lump sum contract, often referred to as a firm price contract, the builder agrees to complete the project as described in the plans and specifications for a fixed sum. As long as the scope of work is not changed, the builder will be paid the agreed amount, no more, no less. For this arrangement to succeed, the scope of work has to be precisely defined in the plans and specifications.
 

Any uncertainties will usually lead to disputes between the owner and the builder. Because changes are almost inevitable on building contracts, the terms of the contract will include a mechanism for making scope changes and adjusting the contract price to reflect these changes. Under the terms of these contracts, the risk of cost overruns lies with the builder. If the cost of materials turns out to be higher than estimated, the builder will pay the extra cost. When bidders anticipate the possibility of price increases, they often add contingency sums to their bid price to compensate for the risk they are taking. If prices do not rise, these contingencies will simply add to the builder’s profit on the job.

In order to shift contract risks to the owner, some builders have modified the terms of lump sum contracts (by means of an escalation clause) to allow price increases to be added to the original contract sum. This results in what might be called a variable price lump sum contract since the fi nal price will be adjusted for price changes for materials, equipment, and possible subtrades. Stipulated lump sum contracts are commonly used on custom home projects and on multi-unit residential projects. When a competitive bid has been used to select a builder, the successful bidder will usually be awarded a fi rm price contract. Also, the agreement made by spec builders with homebuyers can be considered a kind of stipulated price contract since the builder agrees to complete the home for the sale price. However, there may be provisions in the sales agreement, similar to the escalation clause previously mentioned, that allow the agreed price to rise when there are unanticipated price increases.

Cost Plus Contracts

Cost plus contracts allow the builder to be compensated for all the costs of constructing the project plus an agreed upon fee. Under these terms, the owner bares the risk of cost overruns, but the owner will not be paying for any contingency sums previously mentioned when price increases fail to materialize. If for some reason the project scope of work is difficult to pin down, as is the case with some renovation projects, the owner may feel that there is an advantage in choosing a cost plus contract. This type of contract is also used in situations where the owner has hired a builder directly without going through a bid competition. In this case, either the owner places a great deal of trust in the builder or is willing to spend time closely monitoring costs as the work progresses.

The amount of fee included in a cost plus contract may be a percentage of the cost of the work, a fi xed sum, or a variable sum. Owners do not generally favor percentage fees because this type of agreement provides no incentive for cost control. In fact, the higher the costs, the more profi t the builder will make. There is also no incentive to control costs when fees are fi xed, but at least it will not result in rewards for ineffi ciency. In order to provide a cost control incentive, provisions have to be included that allow the fee to increase when savings are made and to decrease when project costs exceed expectations. These provisions result in what is known as a variable fee cost plus contract.

Unit Price Contracts

Unit price contracts are appropriate when there is some uncertainty about the amount of work to be done. These contracts are not often used on housing projects since on most jobs the amount of work involved is established before a builder is hired. There may, however, be situations, typically related to earthwork, where some task is required but the quantity of this work is not known. For example, a builder may have to remove an existing underground sewer pipe as part of a project. The location of the pipe may be known but depth below grade is not. Under the terms of a unit price contract, the builder would not bid a sum for the whole job; instead he would quote unit prices for the work involved. In this example, the builder may quote $15.00 per cubic yard for the trench excavation and $25.00 per cubic yard for common backfill.
 

A unit price contract, therefore, has two parts:

1. Prices per unit of measurement for the different types of work involved in the project, and
2. Measurement of the actual work completed.
 

At the end of the job, the amount of work completed is measured and recorded, and then the builder is paid his unit prices multiplied by the quantity of work done. So, continuing the example, if our builder excavates and backfills 100 cubic yards on the project, he will be paid:

100 cu. yds. x $15.00 = $1,500.00
100 cu. yds. x $25.00 = $2,500.00
Total $4,000.00

Abstract

Construction is a labour intensive process and manpower in one of the productive resources in it. Quality is directly related to the performance which is a function of motivational level of workers. Legitimate motivation to the manpower results in the improvement of quality in construction products. The study is based on the data collected from 24 different construction projects sponsored by the government. The data are analysed considering factors affecting morale and motivation of workers and their effect on quality of construction. The results of the survey report are presented in this paper. On the basis of data collected, the authors conclude that construction management, legitimate facilities including job satisfaction, proper training, and presence of some motivational plans etc., result in higher level of performance of workers which ultimately results in improvement of quality in construction. The authors also suggest suitable methods regarding motivation and coordination of manpower to achieve higher levels of quality in construction.

Keywords: Manpower, motivation techniques, construction, quality improvements.

Introduction

Quality is generally defined as “conformance to a standard of performance”[1]. One of the major factors in determining the human performance is their motivational level. The acceptable or normal level of performance can be raised to a considerably higher value if the workers are motivated[7]. Construction is a group activity that depends largely, not only upon the individual worker’s performance but on the coordinated effort of all the members of the Company. In order to improve the performance of workers, an appreciation of the functioning of the manpower and necessary motivation is required.

Chishty and Choudhary concluded that Risk management ensures quality in construction projects[3], Chaudhary M.A. studied the manpower training and its effects upon efficiency of construction projects[4]. Effect of Time requirement upon Economy of construction projects has also been illustrated by M.A.Chaudhary and others[5]. In construction industry, quality is a major part of productivity. Poor quality work often results in rejection and rework which affects productivity and in turn results in time and cost overrun. Since labor costs comprise between 25 to 40 percent of the total project cost, reduced labor cost demand some source of increased productivity[6]. A firm’s productivity is further influenced by production factors other than labor, such as equipment, materials, methods of construction and management. These resources, if properly managed and scheduled can be successfully transformed into productive uses by the human element. The quality of human performance depends much upon human motivation. One of the findings of the workshop “Quality in the Constructed Project” sponsored by American Society of Civil Engineers, was that quality problems are created by the people who lack pride in their work[2]. The situation may be attributed to the work environment, lack of proper management, worker’s training, skill, and of course, motivational level.

Motivational effects upon construction has been analyzed in detail by Maloney and James[8,9], but so far little has been done to correlate the motivation for quality improvement in construction projects. Maximum research work in this direction is based upon motivation theories which are not well accepted in the modern approaches. The recent approach is to introduce motivation programs for the increase of manpower productivity in constructions.

The objectives of the paper are,
1) To get a feedback from construction projects about the need for construction motivation.
2) To introduce factors which can influence manpower motivation.
3) To examine the role of management.

Research Methodology

The data for this study were collected at 24 different Government sponsored projects, ranging in cost from Pak. Rs. 100 millions to Rs. 750 millions approximately. The projects selected for survey work were of different types and of different geographical regions of the country. The range for stage of completion was different. Some were on going whereas maximum percentage of these projects was already completed. The data collected at each of the project consisted questionnaire survey and the interviews of the personnel at the site. The questionnaire was prepared after consultation with experienced personnel attached with the construction work. A team of the undergraduate students were trained for the survey work and the interview work was properly demonstrated at site. The questionnaire mainly related the manpower motivational tools, quality assurance techniques and time period.

The survey team faced great difficulties in the collection of data. The response was not encouraging, as at most of the sites the management hesitated to provide required information. The relative information at some of the sites, was obtained from the lower staff as proper management was not available whereas other sites were not even aware of such motivational plans. At certain organized project sites, this type of survey was very much appreciated and even some additional methods/approaches were conveyed which were ultimately incorporated in the questionnaire.

Discussion Upon Results

In the processing of the collected data, the major interest was to identify the factors influencing motivation of manpower and their productive ability. Quality of construction projects is related to motivation, performance and satisfaction of the manpower. Graphs regarding the factors influencing the quality and efficiency of construction project are shown in figures 1 through 7.

An inspection of the Figures 1 and 2 reveal that management practices are observed by a very small number of companies; only 13% of the companies have qualified, experienced and trained managers and 29% have regular management cell. Similarly, education and other training programs which impart a sense of confidence and result in higher level of performance and motivation in the workers, are also rare; only 21% of the companies surveyed provide educational training to their workers, see fig. 3.

Another very important factor that usually results in higher levels of performance is the safe working conditions and the presence of some incentive plan further enhances it. However, the conditions regarding safety and motivational plans were not found proper and encouraging. From figures 4 and 5 it is clear that conditions of safety measures at construction sites are extremely poor; only one out of all twenty four companies surveyed has its own safety manual, and same company has motivational plans for its employees.

Some of the other factors resulted in lower performance level include frequent Hiring and Firing, and Lack of Security against employment to workers. Similarly, on-site conditions like improper Site Layouts, Crew Interference, Unavailability of Required Materials at proper time affected severely the morale and motivation of workers. Frequent Design Changes and Untimely Quality Inspections resulted in poor workmanship. On the other hand, on projects which were completed on time and within initial estimated costs, least amount of rework was reported. This was mainly due to the presence of Qualified Construction Manager on the site, and trained workers. Previous experience of workers on similar projects further enhanced the productivity and quality. On these projects, most of the equipment was owned by the owner and proper alternative arrangements in case of failure of an equipment were available. Similarly, safe working conditions and presence of incentives resulted in higher level of performance, productivity and hence improved quality.

Conclusions and Recommendations

Based upon the collected data, the authors have reached at following conclusions and recommendations:
1. At most of the projects, the quality problems were mainly due to the factors affecting morale and motivation of the workers. Absence of qualified construction manager in the team was the most obvious one. To enhance the performance level of workers, inclusion of qualified project manager in the construction team must be a prerequisite. This may be included in the conditions of pre-qualification of the contractors, and minimum qualification of the manager must be specified at the time of award of the project.

2. Lack of education and training of workers resulted in poor quality work. In an industry like Construction, the problem may be solved, to a large extent, by issuing instructions about that day’s work to Foremen and Supervisors every morning in 15–20 minutes before the start of the work. These instructions should include the scope of work for the day. These First-Line managers then may be advised to convey the same to the
workers.

3. Lack or absence of incentives and motivational plans is another factor that affects quality/efficiency in construction. In this regard, it may prove to be quite encouraging that at the end of each milestone, those who have shown best performance or have improved during that time, be rewarded. These rewards may include financial or nonfinancial rewards or a combination of the two.

4. Unsafe working conditions lead to the feeling of fear because of the impending danger. This results in decreased concentration to work and hence low productivity and poor quality work. In order to enhance quality in construction, it is suggested that proper safety measures be ensured as per conditions of the project. The prevailing situation may be improved by educating the workers about safety everyday before the start of the work.

References

1. Ashford J.L. 1989 “The Management of Quality in construction”, E. & F.N.Spon Ltd. 29 West Street N.Y.
2. Chishty M.S., “Improving Construction Quality Through Improving Motivation”, Scholarly Paper submitted to Department of Civil Engineering, University of Maryland, U.S.A, in partial fulfilment of requirements for degree of Master of Science, 1992
3. Chishty M.S., Choudhary M.A., “Risk Management Ensures Quality in Construction Projects”, International Conference on “The Concrete Future” 9–11 Feb. 1993, Kualalumpur, Malysia.
4. Choudhry M.A. et. al. “Trained Manpower Efficiency in Construction Projects”, International Symposium on Property Maintenance and Modernisation, 7–9 March, (1990), Singapore.
5. Choudhry M.A. et. al. “Effect of Time Requirement upon Economy of Construction projects (Survey Report), 10th International Conference CIB 86 Congress on advancing Building Technology, Sept. 21–26, (1986), Washington, USA.
6. Laufer Alexander & Jenkins Douglas G., Dec. 1982. “Motivating the Construction Workers”, Journal of Construction Division, ASCE, Vol. 108, No. CO4, (531–545)
7. Maloney William F., “Employee Involvement in Constuction” Graduate course Handout ENCE 667. Spring 1991.
8. Maloney William F., James M.McFillen, “Motivation Implications of Construction Work”, Journal of Construction Engineering & Management, Vol.112. No.1. March 1986
9. Maloney William F., James M.McFillen, “Motivation in Unionized Construction”, Journal of Construction Engineering & Management, Vol. 112. No.1. March 1986

Authors

Professor Mohammad Safdar Chishty is an Assistant Professor in the Department of Civil Engineering, University of Engineering and Technology, Lahore, Pakistan. His current research is in the areas of construction management and energy conservation in construction.
Professor Mahboob Ali Choudhry is a Professor in the Department of Civil Engineering, University of Engineering and Technology, Lahore, Pakistan, and has been involved in research for a considerable period of time in the area of construction management. He has travelled widely and has 40 publications to his name.

The value in this approach is that it balances technical and interpersonal communication and it can be iterated repeated as needed over the life cycle of a design development or project execution. Now let’s take you from what you know to what you may not know. That is, what you will do in engineering contexts when you are trying to establish intentionality and shape the flow of communication, as you head toward driving your communications rather than being driven by them during problem solving moments.

Six-Step Cycle

1. Identify Context: Establish rapport and understand the area of the space, face, and place spectrum in which you are interacting.

2. Define the Problem: What are concerns, issues—define what to talk about—primary technical, a balance of technical and interpersonal, or primary interpersonal. Include attention to interpersonal dynamics that may be obscuring technical solutions.

3. Define the Goals: What do you want to happen from the communication.

4. Generate Alternates: Explore alternates of more effective communication and behavior to create intentionality in the situation.

5. Take Action: Choose an action and follow through.

6. Iterate: Repeat as necessary to achieve holistic action follow through.

Table below summarizes the six steps to include related communication microskills and predicted results for each stage.

The development of any country depends on the rate of industrial growth. Currently, there is a race in industrial projects worldwide. The development of the industry depends on the development of the energy reserve by investment in projects of oil and gas exploration, onshore and offshore, which require new facilities or rehabilitation of existing facilities. At the same time, there are projects that are running in parallel to deliver electricity from electrical power stations or through nuclear power plants.

In this book, the term industrial structures means all the reinforced concrete and steel structures from a small factory to a nuclear plant. This book will be an overview of industrial project management, design, construction, and eventually providing a maintenance plan. Industrial projects, in most cases, are huge and can cost a billion dollars for one project, so the client, engineering firm, and contractor are in the same boat until they achieve project success through a strong management system and technical competence. Therefore, this book discusses all items that interface among these main three partners.

In these types of projects, all the engineering disciplines are working together, but, unfortunately, the structural or civil engineers are usually the last ones to obtain the exact data from the other disciplines and the first ones to start on site. Therefore it is a challenge for the structural engineers to work fast and efficiently in this type of project.

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This book presents the principles and techniques of managing engineering and construction projects from the conceptual phase, through design and construction, to completion. It emphasizes project management during the early stages of project development because the ability to influence the quality, cost, and schedule of a project can best be achieved during the early stages of development. Most books discuss project management during construction, after the scope of work is fully defined, the budget is fixed, and the completion date is firm. It is then too late to make any significant adjustments to the project to improve quality, cost, or schedule to benefit the owner.

Although each project is unique, there is certain information that must be identified and organized at the beginning of a project, before any work is started. Numerous tables and graphs are presented and discussed throughout this book to provide guidelines for management of the three basic components of a project: scope, budget, and schedule. Throughout this book, achieving project quality to meet the owner's satisfaction is emphasized as an integral part of project management.

This second edition of the book has three new chapters: Working with Project Teams, Early Estimates, and Design Proposals. The topics in these chapters are extremely important to achieving a successful project. These topics are covered from the perspective of the engineer who is employed with either the owner's organization or the design firm.

The intended audience of this book is students of university programs in engineering and construction. It is also intended for persons in industry who aid the owner in the feasibility study, coordinate the design effort, and witness construction in the field. A common example is used throughout this book to illustrate project management of the design and construction process.

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