construction project management is the overall planning

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Construction Project Management is the overall planning, coordination and control of a

project from inception to completion aimed at meeting a clients requirements in order to

produce a functionally and financially viable project that will be complete mingement (CPM) isproject management that applies to the construction sector (3rd Forum International

Construction Project Management 26th/27 June 2003 in Berlin).

TheConstruction Management Association of America (CMAA)(a primary US construction

management certification and advocacy body) says the 120 most common responsibilities of a

Construction Manager fall into the following 7 categories: Project Management Planning, CostManagement, Time Management, Quality Management, Contract Administration, Safety

Management, and CM Professional Practice which includes specific activities like defining the

responsibilities and management structure of the project management team, organizing and

leading by implementing project controls, defining roles and responsibilities and developingcommunication protocols, and identifying elements of project design and construction likely to

give rise to disputes and claims.

Contents

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1 Functions 2 Terminology 3 Study and practice 4 Business model

o 4.1 Design, bid, build contractso 4.2 Design and build contractso 4.3 Planning and schedulingo 4.4 ArchitectureEngineero 4.5 Agency CMo 4.6 CM at-risk

5 Regulation 6 References 7 Further reading

[edit] Functions

The functions of construction project management typically include the following[1]

:

1. Specifying project objectives and plans including delineation of scope, budgeting,scheduling, setting performance requirements, and selecting project participants.

2. Maximizing resource efficiency through procurement of labor, materials and equipment.3. Implementing various operations through proper coordination and control of planning,

design, estimating, contracting and construction in the entire process.4. Developing effectivecommunicationsand mechanisms for resolving conflicts
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BOO: build own operate

EPC: engineering procurement construction

PFI: private finance initiative

GC: general contractor

GMP: Guaranteed maximum price

MPC: multiple prime contracts: UK: one contractor takes responsibility for the development

(package deal) USA: a client may have 5 or 6 prime contractors

[edit] Study and practice

Construction Management education comes in a variety of formats: formal degree programs

(one-yearassociate degree; four-yearbaccalaureate degree,masters degree,project management,operations managementengineer degree,doctor of philosophydegree,postdoctoral researcher);

on-job-training; and continuing education / professional development. For information on degree

programs, reference ACCE, the American Council for Construction Education, or ASC, the

Associated Schools of Construction.

According to the American Council for Construction Education (the academic accrediting bodyof construction management educational programs in the U.S.), the academic field of

construction management encompasses a wide range of topics. These range from general

management skills, to management skills specifically related to construction, to technical

knowledge of construction methods and practices. There are many schools offering Construction

Management programs, including some that offer a Masters degree.[4][5]

[edit] Business model
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Skyscrapersunder construction inPanama City,Panama.

Typically the construction industry includes three parties: an owner, a designer(architector

engineer), the builder (usually called thegeneral contractor). Traditionally, there are twocontracts between these parties as they work together to plan, design, and construct the project.

[6]

The first contract is the owner-designer contract, which involves planning, design, and

construction administration. The second contract is the owner-contractor contract, whichinvolves construction. An indirect, third-party relationship exist between the designer and the

contractor due to these two contracts.

An alternate contract or business model replaces the two traditional contracts with three contracts:

owner-designer, owner-construction project manager, and owner-builder. The construction

project management company becomes an additional party engaged in the project to act as an

advisor to the owner, to which they are contractually tied. The construction manager's role is toprovide construction advice to the designer, on the owner's behalf, design advice to the

constructor, again on the owner's behalf, and other advice as necessary.

[edit] Design, bid, build contracts

Design, bid, builddescribes the prevailing model of construction management in which the

general contractor is engaged through a tender process after the designs have been completed by

the architect or engineer.

[edit] Design and build contracts

Main article:Design-build

Recently a different business model has become more popular. Many ownersparticularly

government agencies have let out contracts which are known as Design-Build contracts. In this
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type of contract, the construction team is known as the design-builder. They are responsible for

taking a concept developed by the owner, completing the detailed design, and then pending the

owner's approval on the design, they can proceed with construction.Virtual Design andConstructiontechnology has enabled much of the ability of contractors to maintain tight

construction time

There are two main advantages to using a design-build contract. First, the construction team is

motivated to work with the design team to develop a design with constructability in mind. In that

way it is possible for the team to creatively find ways to reduce construction costs withoutreducing the function of the final product. The owner can expect a reduced price due to the

increased constructability of the design.

The other major advantage involves the schedule. Many projects are given out with an extremely

tight time frame. By letting out the contract as a design-build contract, the contractor is

established, and early mobilization and construction activities are able to proceed concurrently

with the design. Under a traditional contract, construction cannot begin until after the design is

finished, the project is bid and awarded, and the team can mobilize. This type of contract cantake months off the finish date of a project.

The major problem[7]

with design-build contracts is the inherent conflict of interest. In a standard

contract the designer is responsible to the owner to review the work of the builder to be sure the

products and methods meet specifications and codes. The builder as a construction professionalexperienced working with many designers is attuned to picking up design flaws which would go

uncaught or unmentioned when builder is also designer. The owner may be more likely to get a

building that is over-designed in order to increase costs and profits for the design-builder, or built

with lesser grade products to maximize profits. If time is of the essence, a design andconstruction contracts can be awarded separately, with bidding taking place on preliminary plans

in a not-to-exceed contract in lieu of a single firm design-build contract.

[edit] Planning and scheduling

Project management methodology:

Work breakdown structure Project network of activities

o Critical path method (CPM)o Resource managemento Resource leveling

[edit] ArchitectureEngineer

Work inspection Change orders Review payments Materials and samples Shop drawings
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3d image[edit] Agency CM

Construction Cost Management is a fee-based service in which the Construction Manager (C.M)

is responsible exclusively to the owner and acts in the owner's interests at every stage of theproject. The construction manager offers advice, uncolored by any conflicting interest, on

matters such as:

Optimum use of available funds; Control of the scope of the work; Project scheduling; Optimum use of design and construction firms' skills and talents; Avoidance of delays, changes and disputes; Enhancing project design and construction quality; Optimum flexibility in contracting and procurement. Cash flow Management.

Comprehensive management of every stage of the project, beginning with the original conceptand project definition, yields the greatest possible benefit to owners from Construction

Management. As time progresses beyond the pre-design phase the CM's ability to effect cost

savings diminishes. The Agency CM can represent the owner by helping to select the designteam as well as the construction team and manage the design preventingscope creep, helping the

owner stay within a pre-determined budget by performing Value Engineering, Cost/Benefit

Analysis and Best Value Comparisons.

[edit] CM at-risk

CM at-risk is a delivery method which entails a commitment by the construction manager todeliver the project within aGuaranteed Maximum Price(GMP), in most cases. The construction

manager acts as consultant to the owner in the development and design phases, (often referred to

as "Preconstruction Services"), but as the equivalent of a general contractor during theconstruction phase. When a construction manager is bound to a GMP, the most fundamentalcharacter of the relationship is changed. In addition to acting in the owner's interest, the

construction manager must manage and control construction costs to not exceed the GMP, which

would be a financial hit to the CM company.

CM at riskis a global term referring to a business relationship of Construction contractor, Owner

and Architect / Designer. Typically, a CM At Risk arrangement eliminates a "Low Bid"construction project. A GMP agreement is a typical part of the CM and Owner agreement

somewhat comparable to a "Low Bid" contract, but with a number of adjustments in

responsibilities required by the CM. The following are some of the potential benefits of a CM At

Risk arrangement:

Budget management: Before design of a project is completed ( 6 months to 1 years ofcoordination between Designer and Owner), the CM is involved with estimating the cost of
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constructing a project based on the goals of the Designer and Owner (design concept) and the

overall scope of the project. In balancing the costs, schedule, quality and scope of the project,

decisions can be made to modify the design concept instead of having to spend a considerableamount of time, effort and money re-designing and/or modifying completed construction

documents. For instance, if the Owner decides to spend more money or obtain more funding for

the project, adjustments can be made to the project more cost-effectively without having tocomplete construction documents as a predecessor to pricing. To manage the budget beforedesign is done, construction crews are mobilized, the CM is often spending significant resources

each week with onsite management, major items are purchased, etc., etc., is a much more

efficient use of everyone's time, effort, Architect / Designer's costs, and the CM's GeneralConditions costs, AND delivering to the Owner a design within his budget.

construction project management is the overall planning

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