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UD CIEG 125 - Construction Planning and Scheduling

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11/17/2005 1Construction Planningand SchedulingCIEG125 - Introduction to Civil EngineeringLecture 11Fall 2005Turn off your cell phone!Turn off your cell phone!Turn in your homework!Turn in your homework! 10/22/05• Ethics presentations – groups 16, 17, 18 and 19.• Construction• The construction industry• Estimating• Scheduling• Project 3• Homework 8Outline• The Construction Industry• Major Types of Construction• The Project Life Cycle• Professional Services Available to Owner• Construction Contractors• What does a Construction Manager (CM) do?Construction Industry• A conglomeration of diverse fields and participants• A sector of the economy (~9% of GNP)• Products provide foundation for industry• office buildings and manufacturing facilities• infrastructure (highways, bridges, dams etc)• power plantsConstruction Activity• 85% is contract construction (i.e., done by one firm for another under contract)• 1 million US construction contractors• 60% of contracting by top 400 contractors, such as:• Brown and Root• M. W. Kellogg• BechtelMajor Types of Construction• Residential Housing• Institutional and Commercial Buildings– high-rise office buildings and hotels– sports stadiums, hospitals, shopping centers• Specialized Industrial Construction– coal-fired or nuclear power plants– oil refineries, steel mills, chemical processing plants• Infrastructure and Heavy Construction– highways, tunnels, bridges, dams– pipelines, sewage treatment plants11/17/2005 2Project Life Cycle• Market Demands or Perceived Needs– definition of project objectives and scope– e.g., 500,000 sq. ft. of office space• Conceptual Planning/Feasibility Studies– Preliminary design– Economic feasibility• Design and Engineering– Construction Plans and SpecificationsProject Life Cycle• Procurement and Construction– Constructed Facility• Startup for Occupancy– Occupancy Permit Issued– Acceptance of Facility• Operation and Maintenance– Facility is used and maintained– Facility is renovated• Disposal of Facility– Facility is demolished and possibly recycledProfessional Services Available to Owner• Financial Planning Consultants (CPAs)• Investment Bankers• Architectural/Engineering (A/E) Firm– develop preliminary design– owner gets contractor bids on design– A/E firm completes detailed design & inspects– A/E firm acts on behalf of owner (changing)• Design/Construct Firms– integrates design & construction processesProfessional Services Available to Owner• Professional Construction Managers– manage the entire construction process for an owner– offer professional services (e.g., design, inspection, management) from inception to completion of the construction project• Operation and Maintenance Managers• Facility Managers– compile computer records of building plans– maintain space inventories and conditions– maintain furniture and equipment inventoriesConstruction Contractors• General Contractors (GC)– coordinates all tasks in a construction project– contracts with subcontractors– could be replaced by construction management firm– knowledgeable about local labor force• Specialty Contractors (“Subs”)– mechanical, electrical, foundation, excavation• Material and Equipment Suppliers– steel fabrication and erection– ready-mixed concrete delivery– roofing and glazingWhat does a CM do?• A CM manages a construction project• Strive for efficient utilization of labor, material and equipment• Some of the activities of CM– break down work into work packages– estimate durations and costs of work packages– create schedule when work packages are to be done and when needed materials are to be procured– contract the work to subs– monitor schedule and costs of work packages11/17/2005 3The Importance of Construction Management• Construction is a critical building block in the project life cycle• Construction represents a commitment to life cycle cost• Construction represents the largest part of visible costsConstruction as the building block…..Source: Engineering Economy, Blank, Tarquin, McGraw Hill, 1989.Needs | Requirements/| Preliminary | Detailed |Construction| Integration | Implementation | MaintenanceAnalysis Specifications design design verification validation User acceptance and supportConcept and definition phaseDesign phaseConstruction phaseImplementation and operation phaseCommitment to life-cycle costSource: Blanchard, Fabrycky, Systems Engineering and Analysis, Prentice Hall, 1981Commitment of Life Cycle Cost0.00%20.00%40.00%60.00%80.00%100.00%120.00%Percentage of Life Cycle CostOpportunity for cost savings Actual expenditures Cumulative life-cycle cost Concept designand advance planningPreliminary systemdesignDetail system designand developmentProduction and/ or constructionVisible costs...Acquisition costOperations costMaintenance costRetirement and disposal costTraining costTest and support costsTypes of contracts• Lump sum• Unit price• Guaranteed maximum fixed price• Cost reimbursable• Construction management• Design construct• ……BOT, DBOT….Contract provisions• Bonding• Insurance and indemification• Changed conditions• Change orders• Schedules, delays, liquidated damages, bonuses and penalties• Payment terms and retainage• Subcontracting• Alternate dispute resolution• Partnering11/17/2005 4Construction Company Organization• Main office• operations• engineering and estimating• administration• other• legal• employee relations• business development• public relations• Project staff• project manager• project engineer• general superintendent• office managerResponsibilities• Coordination with designer• constructability• value engineering• Temporary structures• Inspection and quality control• Shop drawings• Estimating and bidding• Scheduling• Cost controlSummary• Construction industry is a very large and fragmented industry.• There are many “players”• Owners buy construction• A/E firms design it• Contractors: GC and subs build it• CM firm might manage the construction process instead of a GCOutline Estimating• Introduction• Labor, Material and Equipment• Cost Estimating Methods• Work Breakdown Structures• Cost Estimating using WBS• SummaryCost and Schedule• The Skyscraper Video:• The owner was concerned about both final


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