IntroductionSlide 2Nature of the Construction IndustryNature of the Industry ContinuedPhysical Nature of the ProductConstruction SectorsCharacteristic of Residential ConstructionUnique Aspects of Commercial ConstructionSlide 9Unique Aspects of Highway/Heavy ConstructionWhy is CM Needed?The Construction ProjectKnowledge Required of a CMConstruction’s FutureConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedConstruction Project ManagementConstruction Project ManagementFourth EditionFourth EditionIntroductionChapter 1Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedIntroductionNature of the Construction IndustryThe Construction ProjectCategories of ProjectsWhy is CM needed?Knowledge required of a CMConstruction’s FutureConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedNature of the Construction Industry+/- 10% of US GNPMany small businessesCreates a Physical ProjectService IndustryHigh Sales/Low AssetsFragmentedCustom OrientatedConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedNature of the Industry ContinuedUnstable DemandSeasonalMost work is regionalConstruction Drives economy?Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedPhysical Nature of the ProductUnique undertakingSpecific / known clientMajor investmentProduction in ‘temporary’ plantsExposed elements during productionLabor intensiveMobile AssetsNumerous & changing hazardsTechnically complex Multiple components manufactured in other industriesConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedConstruction Sectors Residential Construction Commercial Construction Industrial Construction Heavy/Highway ConstructionConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedCharacteristic of Residential ConstructionTypically wood products & light gauge steelLow Overhead; High Competition Low Profit Margins & High Number of BankruptciesClose working relationship with ownersStrongly influenced by interest rate & economyConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedUnique Aspects of Commercial Construction Technically complicated construction systemsNumerous specialty contractors involved Variety of construction materialsRequire extensive knowledge in construction process, communication & leadership skillsConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedRequire highly specialized expertiseSubstructure construction is the keyHeavy Materials: Steels, ConcreteSchedule driven Technology is more complexIndustrial ConstructionConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedUnique Aspects of Highway/Heavy Construction Mostly financed by public Designed by registered professional engineersUse large qualities of a relatively small materials Heavy duty construction equipment required Higher percentage of self-performance Higher profit marginConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedWhy is CM Needed?Increased Project SizeIncreased Organizational ComplexityIncreased Technical ComplexityMore Complex InterdependenciesIncreased Government RegulationsSpeed!!!!Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedThe Construction ProjectUniqueLargeOutdoorsEach a new teamConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedKnowledge Required of a CMFinancialMethods and MaterialsPeople and Organizational SkillsLaws and RegulationsOther?Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedConstruction’s FutureImage!CertificationConstruction not DisruptionChanging DemographicsDeclining Technical SkillsShifting