construction management

2014

I.A. Anhaf Ahamed

NG/HNDQS/06/08

[MANAGEMENT

PRINCIPLES AND

APPLICATION – FOR

CONSTRUCTION AND

THE BUILT

ENVIRONMENT

SECTOR] Lecture: B.A. Harshi Madubashini

Management Principles Individual Assignment 01

I.A. Anhaf Ahamed 1 NG/HNDQS/06/08

Acknowledgment

This assignment would not possible without encouragement of our “Management

Principles” lecturer Ms. B.A. Harshi Madubashini BSc.(Hons) in Quantity Surveying

(RICS). I take this opportunity to express deep sense of gratitude for Mr. Gamini

Rajakaruna and all staff members of ICBT campus Nugegoda. As well as I take this

opportunity to thank my parents. Finally I thank my parents and my friends. Because

without their support and encouragement I can’t submit this assignment at right time



Table of Content

Table of Contents Executive Summary ....................................................................................................... 9

1.0 Introduction ............................................................................................................ 10

2.0 TASK A ................................................................................................................. 11

2.1 Established Definitions for Management........................................................... 11

2.2 Management Process.......................................................................................... 11

2.2.1 Forecasting .................................................................................................. 13

2.2.2 Planning ...................................................................................................... 13

2.2.3 Organising ................................................................................................... 14

2.2.4 Motivation ................................................................................................... 16

2.2.5 Controlling .................................................................................................. 17

2.2.6 Co-ordination .............................................................................................. 17

2.2.7 Communication ........................................................................................... 18

3.0 Task B .................................................................................................................... 19

3.1 Teamwork .......................................................................................................... 19

3.1.1 Advantages of Teamwork ........................................................................... 19

3.2 Leadership .......................................................................................................... 21

3.2.1 Leadership Styles ........................................................................................ 22

3.3 Motivation .......................................................................................................... 24

3.3.1 McGregor’s Theory..................................................................................... 25

3.3.2 Schein’s Classification Theory ................................................................... 26

3.3.3 Maslow’s Hierarchy of needs theory .......................................................... 28

3.3.4 Alderfer’s continuum theory ....................................................................... 30

3.3.5 Herzberg’s two factor (motivation-hygiene) theory ................................... 31

3.3.6 Achievement Motivation theory ................................................................. 33

4.0 Task C .................................................................................................................... 34



What is marketing? .................................................................................................. 34

What is market? ....................................................................................................... 35

What is marketed?.................................................................................................... 35

Types of markets ...................................................................................................... 36

Customer Markets ................................................................................................ 36

Ownership Markets .............................................................................................. 36

Supply Market...................................................................................................... 36

Open Markets ....................................................................................................... 38

Closed Markets .................................................................................................... 38

What is the difference between open-market and closed-market transactions? .. 39

Construction Markets ............................................................................................... 40

Civil Engineering ................................................................................................. 40

Infrastructures ...................................................................................................... 40

Residential and Commercial ................................................................................ 41

Mechanical and Electrical .................................................................................... 41

Designers and Architects ..................................................................................... 41

Term Maintenance Contracts (TMC)................................................................... 42

5.0 Task D .................................................................................................................... 43

Design Team ............................................................................................................ 43

Architect............................................................................................................... 44

Clerk of Work ...................................................................................................... 45

Structural Engineer .............................................................................................. 46

Civil Engineer ...................................................................................................... 46

Service Engineer .................................................................................................. 46

Quantity Surveyor ................................................................................................ 47

Production Team (Contractor’s Team) .................................................................... 48

Contractor............................................................................................................. 48



Project Manager ................................................................................................... 49

Site Engineer ........................................................................................................ 49

Quantity Surveyor ................................................................................................ 51

Safety Manager .................................................................................................... 52

Maintenance Team (Installation Team) ................................................................... 53

Mechanical Engineer............................................................................................ 53

Electrical Engineer ............................................................................................... 53

Plumbing Engineer............................................................................................... 53

Main Cycle of work activities .................................................................................. 54

Pre-construction stage .......................................................................................... 55

Construction stage................................................................................................ 55

Post construction stage......................................................................................... 55

6.0 Task E .................................................................................................................... 56

Organizational Structure .......................................................................................... 56

Direct Line Organizational Structure ................................................................... 57

Lateral Organization Structure............................................................................. 59

Functional Organizational Chart .......................................................................... 60

Product Organizational Structure......................................................................... 61

Matrix Organization Structure ............................................................................. 61

Centralized Organization Structure...................................................................... 63

Decentralized Organization Structure .................................................................. 64

7.0 Task F..................................................................................................................... 66

Approaches of organization Chart ........................................................................... 66

Span of Control .................................................................................................... 66

Chain of Command .............................................................................................. 69

Job Design............................................................................................................ 71

8.0 Task G .................................................................................................................... 72



Project Based Organizational Structure ................................................................... 72

Mäga Engineering Commercial Building Project Based Organizational Chart ...... 73

Disadvantages of Project Based Organizational Structure ...................................... 73

Increased Need for Effective Leadership.......................................................... 73

9.0 Task H .................................................................................................................... 74

Purpose of Mission Statement, Strategy, Corporate Planning, Policy and Objective

of an Organization in Construction and Built Environment Sector ......................... 74

Mission Statement................................................................................................ 74

Organization Strategy .......................................................................................... 77

Corporate Planning .............................................................................................. 77

Organizational Policy........................................................................................... 78

Objective of an Organization ............................................................................... 78

10.0 Task I.................................................................................................................... 79

How The Influence of the scale and Size of a Project Can Affect the Way a

Construction Business Organized and Managed ..................................................... 79

11.0 Task J ................................................................................................................... 80

Estimated Cost and Actual Cost .............................................................................. 80

Different Between Estimated Cost and Actual Cost ............................................ 80

Cost Planning ........................................................................................................... 81

Cost Control ............................................................................................................. 82

Main Advantages of Cost Control ....................................................................... 82

Cash Flow ................................................................................................................ 83

Monitoring of Construction ..................................................................................... 84

Installation of Work in Construction ....................................................................... 85

12.0 Task K .................................................................................................................. 86

Concept of Sharing Best Practice............................................................................. 86

Bench Marking......................................................................................................... 88



Types of Benchmarking and The Way It Used For: ............................................ 89

13.0 Task L .................................................................................................................. 92

Sustainable Construction and Environmental Management and Conservation Issues

Impact on the Organization and Operation of a Project........................................... 92

Sustainable Construction ..................................................................................... 92

Environmental Management in Sustainable Development .................................. 94

Conservation Issues.............................................................................................. 97

Part 2 ............................................................................................................................ 98

14.0 Task M ................................................................................................................. 98

Techniques Used to Organise the Layout of a Project............................................. 98

Resourcing a Project .............................................................................................. 100

15.0 Task N ................................................................................................................ 102

Work Plan .............................................................................................................. 102

Monitoring ............................................................................................................. 103

Areas of Monitoring........................................................................................... 103

Monitoring Techniques ...................................................................................... 105

Progress Control..................................................................................................... 108

16.0 Task O ................................................................................................................ 110

Methods employed to Plan, Schedule and manage the supply and utilization of

resources................................................................................................................. 110

Methods Employed to Plan a Project ................................................................. 110

Methods Employed to Project Scheduling......................................................... 113

Methods Employed to Manage the Supply and Utilization of Resources for the

Project ................................................................................................................ 114

17.0 Task P................................................................................................................. 122

Quality Standards and Statutory Compliance ........................................................ 122

Quality Standard ................................................................................................ 122

Statutory Compliance......................................................................................... 124



18.0 Task Q ................................................................................................................ 125

Other Aspects of Communication and Liaison Activity that Need to Be Organised

and Managed in a Project....................................................................................... 125

Aspects of Communication ................................................................................ 125

Liaison Activity.................................................................................................. 126

19.0 Task R ................................................................................................................ 127

Procurement Methods ............................................................................................ 127

Types of Procurement ........................................................................................ 127

Management Structures.......................................................................................... 136

Key components of management structures ...................................................... 136

Types of management structure ......................................................................... 138

Tendering Methods ................................................................................................ 140

Open Tendering.................................................................................................. 141

Selective Tendering............................................................................................ 142

Negotiated Tender.................................................................................................. 142

20.0 Task S................................................................................................................. 143

Contract Constitutes ............................................................................................... 143

Agreement Element............................................................................................ 143

Value Exchanged Element ................................................................................. 143

The Rights and Obligations of the Main Parties in Relation to Performance (Time,

Cost and Quality) ................................................................................................... 144

Type of Business Agreement ............................................................................. 144

Stages of Contracts................................................................................................. 146

Project Reporting Stage ..................................................................................... 146

Project Planning Stage ....................................................................................... 147

Project Tendering Stage ..................................................................................... 147

Project Construction Stage................................................................................. 148

Project Commissioning Stage ............................................................................ 149



21.0 Conclusion ......................................................................................................... 150

22.0 References .......................................................................................................... 153

Books ..................................................................................................................... 153

Electronic Source ................................................................................................... 154

Internet [online].................................................................................................. 154

PDF and e-books ................................................................................................ 160

Online Magazine ................................................................................................ 161

Blog .................................................................................................................... 162

Lecture Notes ......................................................................................................... 163

Figure References .................................................................................................. 164



Executive Summary

In this assignment I have mentioned the management principles and its application for

construction and built environment sector. I have included every principles briefly

which are using in project from design stage to commissioning stage.



1.0 Introduction

The construction industry plays an essential role in a country’s economy. This is

fundamental to the country’s development too. There are several challenging

engineering and management problems that occur on construction sites which are lead

to high quantity of rework, defects, delays, disagreements and cost overruns on

construction projects. Therefore it is important to having a process of management for

construction project.

A construction site’s success is based on project time, quality and cost. Completing a

project within time, quality and cost is an important task and management helps to

achieve those.

A construction project has three stages; design stage, production stage and operation

stage. In each task there are several personals and teams. A proper management will

help to communicate and coordinate with each other and it is one of key component to

project success.

It also includes the major topic of sustainability which is spoken in modern

construction. It also explains how it effect to the construction cost, quality and time. It

also explains how it effect to management.

To achieve all above task there should be a proper planning and monitoring which can

help reduce or stop quantity of rework, defects, delays, disagreements and cost

overruns on construction projects.

As it can see a management is important key component to achieve a project without

problems. Therefore I try to explain several topics in management briefly below.



2.0 TASK A

Established Definitions for Management

Fryer (2004, pp. 1) states that ‘management is the process of steering an organisation

towards the achievement of its objectives, by means of technical skills for planning and

controlling operations, and social skills for directing and co-ordinating the efforts of

employees’.

According to above statement it defines management is combination process of

technical skills and social skills for an organization and which helps the organization

lead to success.

Management is a multipurpose organ that manages a business and manages managers

and manages workers and works (Drucker, 2006).

According to Fayol (1984) ‘management is to forecast, to plan, to organize, to

command, to co-ordinate, and control activities of others’.

Management Process

There are six general areas which Fayol developed have been become known as the

process of management, which we still use and refer to today. Communication is included

recently for this process.

Forecasting

Planning

Organising

Motivating

Controlling

Co-ordinating

Communicating



Above mentioned Management process can break to two stages

Planning Functions

o Forecasting

o Planning

o Organising

Executive Functions

o Motivating

o Controlling

o Co-ordinating

o Communicating

Based on the above list of management processes will be observe each of these precise

management tasks.

Forecasting

Planning

Organising

Motivating Contrilling

Co-ordinating

Communicating



Forecasting

Forecasting defines using past data to determine the future plan and predictions for a

working situation and a budget ‘Principles of Management’ (Anon., 2008) and

according to Madubashini, 2014. Forecasting provides information about the possible

future events and their significances for an organization.

According to Madubashini, 2014. There are three features of forecasting for a

construction project.

Financial Forecast – It simply define a predicting budget for the project and it’s an

estimation of future financial efforts.

Workload Forecasting – It is a process of forecasting how system workloads will

differ in the future and it is a predicting the process of managing all the work, time

and cost during the project. It is also a Margin for Tenders too.

Resources Forecasting – It is forecast which type of roles, materials, plants needed on

future project.

Forecasting in a construction process is

Planning

‘Principles of Management’ (Anon., 2008) illustrate that planning is the preparation of

an operation of action considered to achieve a project’s specific objectives, which will

have been planned during the forecasting and it determine the board lines of operations.

In an actual planning there are systemic approaches for planning which can do by

following steps



Organising

Shakthivel Murugan (2004, pp. 133) shows Louis Allen statement ‘organising defines

the process of identifying and grouping the work to be performed and defining and

allocating responsibilities and duties towards various personals in organization’.

Process of organising

Shakthivel Murugan (2004, pp. 133–135) states that the function of organizing is

performed by Managers and it is a continuous process. Organising as process is

dynamic concept and following steps involving in organizing process.

Determining Activities

Grouping Activities

Assigning Duties

Delegating Authority

Coordinating Activities

Importance of Organising

According to Shakthivel Murugan (2004, pp. 135–136) organising is the mainstay of

effective management due to the following reasons;

Effective Administrating

Growth and Diversification

Adaptation of New Technology

Optimum Use of Human Resources

Specialization

Security and Support

Coordination and Communication

Training and Development



Organizational Structure

Board of Directors

Chairman

Company

Secretary

Managing Director

Technical Teams

Principal And Senior Staff

Associate Consultants

Support Service

Technical Officers

Research Associates

Administrative

Administrative Officer

Secretary/

Clerks/

Receptionist

Accountant



Motivation

According to Madubashini, 2014 motivation is a social process the executive function

of cultivating morale, inspiring loyalty to leaders and producing an emotional climate

conductive to the proper satisfaction of the entire task.

Why Motivation is Important?

For any organisation to succeed everyone working within it must perform well. To

achieve this people must be motivated to work efficiently. If any industry is going to

deliver successful completion of a work, it needs a motivated workforce.

Motivation Factors

According to Madubashini, 2014., there are three main factors in motivation;

Economic Factors – Wages, job-security, job continuity, pensions, and

future prospects

Social Factors – The work environment, relationship with other

employees or supervisors, and acceptance

Creative Factors – Achievement, and job satisfaction

Circle of Motivation

Purpose

Needs Talents

Passions



Controlling

Controlling checks whether above mentioned plans are being recognized, in the event of

deviations or short falls, managers can involve is corrective action. ‘Principles of

Management’ (Anon., 2008)

Controlling Process

Controlling has main process which is establishment of standards. It defines the plans

or the targets which have to be achieved. According to Madubashini, 2014 there are

two main standards in controlling process;

Measurable or Tangible – Cost, output, expenditure, time, and profit

Non measurable or Intangible - Performance of a Manager, deviation of workers, and

planned targets

Co-ordination

Co-ordination is unification of effort between the company personnel to ensure that

all functions are working harmoniously towards the organisation’s aims and common

objectives. (Madubashini, 2014)

Having regular meeting is very important to have proper co-ordination.

Importance of Co-ordination

Encourages team spirit

Gives proper direction

Improves relationship in the organization

Directs personnel contact and continuous operation



Communication

This task is involved with in the all stages in construction project. It is one of the

important functions of a manager. It is an activity in order to get connect with others

and done things through others. (Madubashini, 2014)

Stages of Communication

Importance of Communication

Helps is smooth and efficient working of an organization

Facilitates co-ordination

Increases managerial efficiency

Communication Process in Construction Industry



3.0 Task B

Teamwork

Teamwork is a process by a group of people working together in order to achieve a

goal. (Anon, 2014)

Teamwork is an essential part for an industry which is helping personalities work

together with their best in any condition. It also helps to avoid conflicts inside

industry and conflict between individuals.

This definition admits that team work brings together different ideas from different

people, with different skill sets for the success of a set target or goal. (Anon, 2014)

Advantages of Teamwork

Better efficiency, the ability to focus different ideas on the same problem and mutual

support are some of the advantages in teamwork.

Many organizations trust on teams. There are several advantages in teamwork. Some

of these include:

Better Outcomes: A team can bring more benefit to stand against a challenge

and there is more important to reduce risk of poor individual contributions as a

result it can lead to better business outcomes because.

Efficiency: A team can able to complete more works than individuals do

alone. This helps the company save money.

Better Ideas: A good team is admits with different members. These members

can use their ideas skills to the same problem, which can give effective

solution for the problem.

Mutual support: In a team it helps to work together. It is lead to mutual

support which helps to encourage personals to achieve goals.



Sense of Achievement: When members of a team work to achieve specific

goals, there is often a better sense of achievement than what an employee may

feel when working on their own. (Anon, 2014)



Leadership

A Leader is someone who leads others. He/ She is a person who has a vision, and

skills to make it happen. (Reh, 2014). It is critical to teamwork. The team leader who

is the person responsible for ensuring the members’ work efficiency and work

together to achieve their goal or objective and the leader should be the role model for

the team and he/ she should have ability to solve problems. (Effective Teamwork,

2004)

A leader...

Create a supportive climate of honesty, trust and mutual respect and it helps to

encourage loyalty and cooperation and provides a 'blame free' culture

Assist the team to forge a clearly articulated vision with clear objectives and

goals

Identify individual members’ own goal which are compatible team goals and

objectives

Develop a work plan which is allocated clearly defined tasks that are

meaningful and challenging for each members

Increase commitment from team members to complete the task on time, and

inspire them “to go the extra mile”

Ensure that all members feel their input is visible to the team as a whole

Ensure for regular, clear and accurate feedback to the team on its performance

over time

Be willing to share credit with the entire team for the team's successes

(Effective Teamwork, 2004)



Leadership Styles

There can be as many ways to lead people as a leader. Many businesspeople and

psychologists have developed useful frameworks that define the main ways to lead

people.

These frameworks can develop an approach to good leadership and effective

leadership.

It will explain below some of the common approaches to leadership that can use. It’ll

also look at some specific leadership styles, and it'll explore the advantages and

disadvantages of each type. (Anon, 2014)

In the 1930s Psychologist Kurt Lewin developed his leadership styles framework, and

it provided the foundation of many of the methods that followed afterwards. He said

that there are three major leadership styles: (Anon, 2014)

Autocratic leaders

Autocratic leadership is also known as authoritarian leadership. It is a leadership style

regarded as over all decisions and little input from group members are controlled by

individual person. Autocratic leaders typically make choices based on their own ideas

and judgments and rarely accept advice from followers. Autocratic leadership

involves absolute, authoritarian control over a group.

Characteristics of Autocratic leadership Style

Little or no input from group members

Leaders make the decisions

Group leaders dictate all the work methods and processes

Group members are hardly ever trusted with decisions or important tasks

This leadership style is useful when decisions need to be made quickly without

consulting with a large group of people or some projects require strong leadership in

order to get things completed quickly and efficiently. (Cherry, 2014)



Democratic leaders

Democratic leadership is also known as participative leadership. It is a type

of leadership style in which members of the group take a more participative role in the

decision-making process. Researchers have found that this learning style is usually

one of the most effective and lead to higher productivity, better contributions from

group members, and increased group morale.

Characteristics of Democratic leadership Style

Group members are encouraged to share ideas and opinions, even though the

leader retains the final say over decisions.

Members of the group feel more engaged in the process.

Creativity is encouraged and rewarded.

This leadership style really useful because group members are encouraged to share

their thoughts, democratic leadership gives leader to better ideas and more creative

solutions to problems. Group members also feel more involved and committed to

projects, making them more likely to care about the end results. (Cherry, 2014)

Laissez-faire

Laissez-faire leadership is also known as delegative leadership. It is a type of

leadership style in which leaders are hands-off and allow group members to make the

decisions. This is generally the leadership style that leads to the lowest productivity

among group members. (Cherry, 2014)

Characteristics of Laissez-faire leadership Style

Very little guidance from leaders

Complete freedom for followers to make decisions

Leaders provide the tools and resources needed

Group members are expected to solve problems on their own

Laissez-faire leadership can be effective in situations where group members are

highly skilled, motivated, and capable of working on their own. (Cherry, 2014)



Motivation

For organisations operating within the construction industry, people are easily their

biggest asset. For any organisation to succeed everyone working within it must

perform well. To achieve this people must be motivated to work efficiently. At the

end of the day, if our industry is going to deliver, what our clients desire, successfully,

we need a motivated workforce.

Why is motivation important?

A leader or a manager should try to find a reliable link between the worker’s personal

goals and the effective performance which require to meet the needs of the

organisation.

A manager or a leader also tries to create the environment within the personal and

organisational goals to be harmonised.

An effective motivation means achieving the desired results. This can be created

using a number of techniques to decide how a manager or leader can motivate their

subordinates and the manager or the leader make certain assumptions about what

motivates people.

There are two motivational theories of assumptions about people,

McGregor’s Theory X and Theory Y

Schein’s Classification



McGregor’s Theory

In 1960 Douglas McGregor published ‘the human side of Enterprise”, in that book he

defined that the use of traditional management techniques might not be the only way

to motivate the employees. Instead, he advocated a new and different approach, which

he claimed would at least achieve the same if not more motivation

McGregor’s theory is called ‘Theory X / Theory Y. where by:

Theory X (Authoritarian management style)

The assumptions that employees dislike work, are lazy, dislike responsibility, and

must be corrected to perform.

Therefore most people must be forced with the threat of punishment to work towards

organizational object.

Theory Y (Participative management style)

The assumption that employees like work, are creative, seek responsibility, and can

exercise self-direction.

These people will apply self-control and self-direction in the pursuit of organizational

objectives, without external control or the threat of punishment.

Table containing the key assumptions from McGregor’s Theory X and Theory Y

Theory X Theory Y

People need close supervision People want independence in work

Will avoid work when possible People seek responsibility

Will avoid responsibility People are motivated by self-fulfilment

That they desire only money People naturally want to work

People must be pushed to perform People will drive themselves to perform



Schein’s Classification Theory

This theory relating to the managers or the leaders assumptions of people, which is

devised by Edgar Schein in the 1970s the theory identifies four main assumptions that

are made about people in terms of motivation.

Rational Economic Man

Rooted in the theories of Adam Smith, this assumption suggests that people are

motivated by self-interest and the maximisation of gain. Ultimately, Schein follows

McGregor’s Theory X arguing human beings can be placed into two categories:

The untrustworthy – money-motivated, calculative masses.

The trustworthy – more broadly motivated, moral elite, who’s task is to

motivate and manage the masses.

Therefore the task of the manager to motivate the workforce here is to ensure the

workforce is receiving the appropriate wage to secure their effort and performance.

Social Man

People are motivated mainly by their social needs. The desire the feeling of belonging

Self-Actualising man

People are motivated more by self-fulfilment needs than by any others. Self-

actualising man needs to be challenged, responsibility given to them, a sense of pride

in their work. (McGregor’s Theory Y and Maslow support or adopt this view)

Complex man

This motivational theory accepts that people are complex and variable. People

respond to a variety of management strategies and are affected by different tasks and

different work-groups. Motivation here is in the form of ‘psychological contact’ based

on the expectations that the individual parties have of each other and the amount to

which these are fulfilled. This approach includes the earlier three in its view point.

At the start it looked at what motivation is, and afterward it mentioned the individuals

or organisation’s needs, and how motivation is important. Although within the above



theories several theories have been formed around this concept of needs. In the main,

the theories have been resulting from the discipline of social psychology.

The main theories relating to needs in terms of motivation are:

Maslow’s Hierarchy of needs

Alderfer’s continuum theory

Herzberg’s two factor theory

Achievement Motivation theory



Maslow’s Hierarchy of needs theory

This concept originates a work which is done by Maslow in the 1950s. He suggested

that human needs operate at a number of different levels, from basic physiological

needs to higher level self-actualization needs. Maslow’s general theory was that,

people tend to satisfy their lowest level of need before moving on to the higher levels

within the hierarchy.

Needs Hierarchy

Physiological Needs This need exists at the lowest level of the hierarchy.

Examples of this need are the need for food, water, air and

sleep. Organisations can help individuals to fulfil this need

by preparing sufficient income to obtain food, shelter and

a comfortable working environment. People will focus on

fulfilling these needs before fulfilling the needs in the

following level.

Safety Needs This need is related closely to acquiring a safe physical

and emotional environment. Examples of this need are

employment network, health insurance and retirement

plans used to fulfil the safety needs of employees.

Social Needs After physiological and safety needs been fulfilled, social

needs will become the main source of motivation to

people. This need includes desire towards friendship, love

and the feeling of belonging. An example of social need is

when an employee establishes friendship in the workplace

and feels a part of the organisation.

Esteem Needs The needs at this level include the needs for status and

recognition. This need can be fulfilled through success.

Esteem needs are fulfilled when one is given recognition

and respect by other people. For example, organisations

can help in fulfilling this need through promotion or

providing a spacious work station to the employee. People

in need of recognition want themselves to be accepted

based on their abilities and want to be known as being

capable and efficient.



Self-actualization Needs This need is at the highest level of the hierarchy. This need

means that people value high achievement based on their

self-potential by using capability and interest to the

maximum level in order to perform work in the

environment. As an example, a challenging task can assist

in satisfying a person towards the achievement of self-

actualization needs.



Alderfer’s continuum theory

Clayton Alderfer defined a new motivational model, called the ERG theory of

motivation which is followed from Maslow’s hierarchy of needs with some studies.

The theory suggests that people’s needs are arranged along a continuum (range),

rather than a hierarchy. Furthermore Alderfer reduced the number of needs to three.

1. Existence – psychological and safety needs

2. Relatedness – social and external esteem

3. Growth – Internal esteem and self-actualization

Maslow’s theory actually worked like a ladder, where it must satisfy one need before

moving to the next but Alderfers theory has no steps. He argues that people have

multiple needs, which must be satisfied all together, according to the ERG theory, if it

was to focus on only one need, this would not certainly motivate that person.

The theory also recognizes that if a higher level of need remains unfulfilled, the

person may go back to lower level needs that appear easier to satisfy; this is known as

frustration regression. This effect’s on workplace motivation.



Herzberg’s two factor (motivation-hygiene) theory

Frederick Hertzberg took the view that people live at two levels, the physical and the

psychological. He observed two hundred accounts and engineers good and bad

experiences at work and based on his analysis and he set out to determine the effect of

attitude on motivation, according to his study he developed the motivation-hygiene or

two factor theory of motivation.

According to his study he discovered that some factors always led to satisfaction

whilst other always to dissatisfaction. He coded them as the positive factors (the

motivators) and the negative factors (the hygiene factors). The positive factors always

related to the job and the negative factors related to the environment. Motivator

factors always looked to motivate the employee and the hygiene factors dis-satisfied

employees or make a nil response. (Anon,2014)

Factors for Satisfaction Factors for Dissatisfaction

Achievement

Recognition

The work itself

Responsibility

Advancement

Growth

Company policies

Supervision

Relationship with supervisor and peers

Work conditions

Salary

Status

Security

As a conclusion he mentioned that the job dissatisfactions and job satisfactions are not

opposite. He said;

The opposite of ‘satisfaction’ is ‘no satisfaction’

The opposite of ‘dissatisfaction’ is ‘no dissatisfaction’

It means reducing dissatisfaction will not create satisfaction nor adding satisfaction

factors will not eliminate dissatisfaction.

Finally according to this theory a person as managers or leader must provide hygiene

factors to reduce dissatisfaction and motivators to motivate the employees.



Model of Herzberg’s theory



Achievement Motivation theory

When recruiting senior management the organizations are ought to use Psychometric

testing, within the recruitment process, often prior to any interview, to reduce to the

field of applicants.

This is a testing which is linked to achievement motivation created by McClelland at

Harvard University, McClelland discovered three particular needs:

1. The need for achievement

This need is often seen as positive, especially when the individuals needs match those

of the organisation with high achievement. Their need will be good at taking

responsibility, and carrying tasks through. Though, is this to high, the individual will

not be able to function effectively as a team member or strict compliance with

organizational goals

2. The need for affiliation

Most people have some need for affiliation where this predominates, these people are

less likely to be strong decision makers, because they wish to secure consensus rather

than get the job done.

3. The need for power

The need of power, is one some people can’t manage without, however this will not

apply to those who desire management roles. Managers need power, but where this

need dominates, the manager will be authoritarian, which is often felt to be ineffective

and better when combined with a strong need for achievement.



4.0 Task C

What is marketing?

Some basic definition about marketing

There are many definitions of marketing. The better definitions are focused upon

customer orientation and satisfaction of customer needs. (Friesner, 2014)

“Marketing is the social process by which individuals and groups obtain what they

need and want through creating and exchanging products and value with others.”

Philip Kotler.

“Marketing is the management process that identifies, anticipates and satisfies

customer requirements profitably.”

The Chartered Institute of Marketing (CIM).

“The right product, in the right place, at the right time, at the right price”

Dennis Adcock.



What is market?

A market can be defined as a place where any type of trade takes place. Markets are

dependent on two major participants (Anon,2014)

Buyers

Sellers

It is also consider some more facts which is important to marketing for above parties

Each party has something that might be of value to the other party

Each party is capable of communication and delivery

Each party is free to reject the exchange offer

Each party believes it is appropriate or desirable to deal with the other party

What is marketed?

Marketing people are involved in marketing 10 types of entities: (Anon, 2014)

Goods

Services

Experiences

Events

Persons

Places

Properties

Organization

Information

Ideas



Types of markets

There are four main major markets include;

Customer markets

Ownership markets

Supply markets

Labour markets

Customer Markets

Customer market is a term use for the portion of available customers who currently

support a business. It is usually for a product or service. Most frequently used

in business marketing, it can sometimes be called the market or customer base for a

business. (Anon, 2014)

Ownership Markets

This is a market sells shares of companies. In which investors buy and sell shares

based on their judgement of a company’s future profitability. In Sri Lanka it is done at

Securities and Exchange Commission (SEC) of Sri Lanka.

Supply Market

It is a market which consists of loan capital, fixed assets supplies and consumable.

Loan Capital

The part of a company's capital employed that is not equity capital, earns a fixed

rate of interest instead of dividends, and must be repaid within a specified period,

irrespective of the company's financial position.

Loan capital may be obtained from a bank or finance company as long-term loans, or

from debt-equity investors in the form of debentures or preferred stock, and is

usually secured by a fixed and/or floating charge on the company's assets. Unlike debt

capital, it does not include short-term loans. It is also called borrowed capital.



Fixed assets supplies and consumable

Consumables are goods which are used up and not returned once issued from stores or

shops.

Fixed assets are a long-term tangible piece of property that a firm owns and uses in

the production of its income and is not expected to be consumed or converted into

cash any sooner. (Anon, 2014)

Labour Market

A labour market is the place where workers and employees interact with each other.

In the labour market, employers compete to hire the best, and the workers compete for

the best satisfying job. (Anon, 2014)



These markets divide into two major categories.

Open markets

Closed Markets

Open Markets

Open market is an economic system with no barriers to free market activity. An open

market is characterized by the absence of:

Prices

Taxes

Licensing requirements

Supports

Unionization

And any other regulations or practices that interfere with the natural

functioning of the free market.

Anyone can participate in an open market. There may be competitive barriers to entry

but there are no regulatory barriers to entry. (Anon, 2014)

Closed Markets

Closed market is opposite to open market which is a market where a supplier deals

only with one agent or distributor and does not supply any others direct. (Anon, 2014)



What is the difference between open-market and closed-market transactions?

Open-Market Closed-Market

Open-market transactions occur on

the open market where average

investors put through their

transactions.

Insiders must follow certain rules and

regulations that have been set out by

the Securities and Exchange

Commission (SEC).

The purchase or sale made in an

open-market transaction is done

voluntarily by the insider, and is not

regulated by any company rules.

Since these trades are made

voluntarily by the insider, they can be

used to identify the insider's

sentiment about the stock.

A closed-market transaction is the

opposite of an open-market

transaction.

Any trading that is done in a closed-

market transaction is between the

insider and the company; no other

parties are involved.

Closed-market transactions occur

when the insider is receiving shares

as part of a compensation package or

through stock options.



Construction Markets

In modern industry the construction and built environment sector provides a wide

range of markets and activities. These markets are usually broken down into the

different types of construction and disciplines. They all work using the same methods

such as bill of quantities, design and architecture but have their own individual areas

of construction such as the following examples.

Civil Engineering

Commonly civil engineering work covers a wide range of projects include;

Embankments

Groundwork

Reinforced concrete structures (bridges and tunnels, piling, railways and

highway construction).

Infrastructures

The highways and rail are a part of the civil engineering sector, it also has its own

features that are individual from any other types of construction.

Consultants

The consultants are often employed by the client to manage control of the main

contractor and the finances that are funded. Their task is to ensure the contractor is

completing the work to a appropriate standard and within time. The consultant is also

expected to question all applications before they are certified to ensure the client is

not being charge too much.



Residential and Commercial

This area is the most common sector of the construction industry because every

human need somewhere to live and somewhere to work.

Buildings such as

Factories

Offices

Houses

Flats and Apartments

Maisonettes

Warehouses

Retail parks

Etc...

are common to almost everywhere in Sri Lanka. This area of the built

environment deals mainly with the bricks and joists used to construct a new building.

Mechanical and Electrical

The Mechanical and Electrical works are probably one of the more focused of

construction markets. This area of work is responsible for ensuring a building is

supplied with electricity, air conditioning, heating units and etc., because the work

involves very complex processes therefore this sector employs some of constructions

highest earners.

Designers and Architects

The Designers are working within all areas of construction. They are responsible at

the inception stage of any project. Their job is very important as any bad design can

lead to huge implications and additional costs during the construction

phase. Architects are more concerned with the appearance of a building. He is also

responsible for design of the building.



Term Maintenance Contracts (TMC)

Maintenance is the one of the most overlooked area in construction sector. Every

stages of construction require a level of maintenance. Any damage can caused by a

lack of maintenance. It can potentially cripple a company financially and cause a lot

of bad press.



5.0 Task D

A building has three (03) stages includes design stage, production stage, operation

stage. Each and every stage has different professionals. They are doing different

duties in construction industry.

Design Team

These team also known as consultants. The consultants are professionals typically

appointed by client to perform expert tasks on a project include,

Providing advice on setting up and defining the project.

Developing and co-ordinating the design.

Preparing production information and tender documentation.

Administration of construction contracts.

Inspecting the work of contractors (Anon, 2014)

The members are consultant team is mostly:

Architect

Clerk of Work

Structural Engineer

Civil Engineer

Service Engineer

Quantity Surveyor (Cost Consultant)

The client may wish to allocate the roles of lead designer and lead consultant to one or

more of these consultants to co-ordinate the work of the rest of the team. (Anon,

2014)

For consultants to work effectively as a team they should adopt collaborative

practices as early in the project as possible. The requirement to adopt such practices

should be included in appointment documents. See Collaborative practices and

Consultant team start-up meeting for more information. (Anon, 2014)



Architect

The architect is its own recognised profession who is designing the aesthetic design of

the building and the appearance inside the building. His responsible is to design the

building according to client requirement.

An architect is expected to:

Be honest and act with integrity

Be competent

Promote services honestly and responsibly

Manage business competently

Consider the wider impact of work

Carry out work faithfully and conscientiously

Be trustworthy and look after clients’ money properly

Have appropriate insurance arrangements

Maintain the reputation of architects

Deal with disputes or complaints appropriately

Co-operate with regulatory requirements and investigations

Have respect for others (Anon, 2014)

Architect normally acts as the client’s legal agent.



Clerk of Work

The clerk of works is a manager on a construction site appointed by the client who

checks to see that work is carried out properly and that health and safety rules are

being followed.

A clerk of works would manage the quality and safety of work on a construction site,

making sure that building plans and specifications are being followed correctly.

Duties of Clerk of Work include:

Performing regular inspections of the work on site and comparing completed

work with drawings and specifications

Measuring and sampling building materials to check their quality

Recording results either on paper or a hand-held Personal Digital Assistant

(PDA)

Identifying defects and suggesting ways to correct them

Liaising with other construction staff, such as contractors, engineers and

surveyors

Monitoring and reporting progress to construction managers, architects and

clients

Providing daily reports to client

He may also be responsible for supervising the workforce on the building site during a

project. (Anon, 2014)



Structural Engineer

Structural engineer designs the structural part for the architectures design. Structural

engineers work on a very wide range of structures, including; buildings, bridges, oil

rigs, ships and aircraft. It is both a technical and creative role that involves close

relationship with professionals from other corrections. (Anon, 2014)

Civil Engineer

The civil engineers design, construct, maintain and improve the physical environment

of structures.

It is a broad profession that involves a range of subjects that can be developed as

expert knowledge, such as:

Structures

Transportation

Environmental

Maritime

Geotechnical

Hydraulic

Sanitary

Water

Whilst some of this expert knowledge may be considered sub-disciplines of civil

engineering, subjects such as structural engineering may now be considered

engineering disciplines in their own right. (Anon, 2014)

Service Engineer

Building services engineers play a central role in contributing to the design of a

building. He plan, design, monitor and inspect systems to make buildings

comfortable, functional, efficient and safe. Typically these systems will include

heating, ventilation and air conditioning (HVAC), water and drainage, lighting,

power, ICT, lifts and escalators, control systems and so on (see building services for

more information). Specialist systems such as specialist gas distribution, humidity and

bacteria control and so on might be required for complex buildings such as airports,

hospitals, factories and laboratories. (Anon, 2014)



Quantity Surveyor

The consultant quantity surveyor is also known as cost consultant. His responsible

are;

Helping determine the client's requirements and undertaking feasibility studies

Benchmarking requirements against similar projects

Assessing and comparing options

Helping define the project budget

Checking developing designs against the project budget

Assessing value for money

Checking designs meet legal and quality standards

Undertaking risk management and value management exercises

Preparing cost plans, estimates and cash flow projections

Advising on procurement strategy

Advising on packaging

Preparing bills of quantities

Preparing tender pricing documents

Collating and issuing tender documentation

Assessing tenders

Estimating the cost of variations

Preparing valuation statements for interim certificates

Assisting with the valuation of claims

Preparing regular cost reports, including out-turn cost and cash flow

Completing the final account (Anon, 2014)



Production Team (Contractor’s Team)

Construction team is a group of people who are working for the design into real.

Construction team members are:

Contractor

Project Manager

Site Engineer

Quantity Surveyor

Safety Manger

Supervisor

Store Keeper

MEP Engineers

Labours

Specialist Sub-contractors

Specialist self-employees

Contractor

A contractor is appointed by the client to construct all or part of the works. It is his

responsible for the day-to-day oversight of a construction site, management of dealers

and trades, and communication of information to involved parties throughout the

building project. (Anon, 2014)

http://en.wikipedia.org/wiki/Construction



Project Manager

The project manager is a specialist who is appointed by the contractor and he is

responsible for the day-to-day management of the project. (Anon, 2014)

The project manager is responsible for:

Planning

Organization

Resource management

Discipline pertaining to the successful completion of a specific project or

objective.

This position may refer to a temporary attempt containing an end according with the

end of the assigned project.

Site Engineer

The site engineers carry out a technical, organisational and supervisory role on

construction projects.

The site engineers apply designs and plans to mark out the site and can be involved in

projects.

The site engineer works as part of the site management team liaising with and

working alongside architects, engineers, construction managers, supervisors, planners,

surveyors and subcontractors. They share responsibility for site security, health and

safety, and the organisation and supervision of material and human resources. (Anon,

2014)

Responsibilities of a site engineer

Acting as the main technical adviser on a construction site for subcontractors,

crafts people and operatives;

Setting out, levelling and surveying the site;

Checking plans, drawings and quantities for accuracy of calculations;

Ensuring that all materials used and work performed are as per specifications;

Overseeing the selection and requisition of materials and plant;

Agreeing a price for materials, and making cost-effective solutions and

proposals for the intended project;



Managing, monitoring and interpreting the contract design documents

supplied by the client or architect;

Liaising with any consultants, subcontractors, supervisors, planners, quantity

surveyors and the general workforce involved in the project;

Liaising with the local authority (where appropriate to the project) to ensure

compliance with local construction regulations and by-laws;

Liaising with clients and their representatives (architects, engineers and

surveyors), including attending regular meetings to keep them informed of

progress;

Day-to-day management of the site, including supervising and monitoring the

site labour force and the work of any subcontractors;

Planning the work and efficiently organising the plant and site facilities in

order to meet agreed deadlines;

Overseeing quality control and health and safety matters on site;

Preparing reports as required;

Resolving any unexpected technical difficulties and other problems that may

arise. (Anon, 2014)



Quantity Surveyor

The quantity surveyor manages all costs of projects from the initial calculations to the

final figures.

He seeks to minimise the costs of a project and enhance value for money, while still

achieving the required standards and quality. These are specified by statutory building

regulations, which the surveyor needs to understand and adhere to.

The quantity surveyor may work for either the client or the contractor, working in an

office or on site. They are involved in a project from the start, preparing estimates and

costs of the work.

When the project is in progress the quantity surveyors keep track of any variations to

the contract that may affect costs and create reports to show profitability.

The title of the job is also known as a construction cost consultant or commercial

manager. (Anon, 2014)

Responsibilities of quantity surveyor

Preparing tender and contract documents, including bills of quantities with the

architect and/or the client;

Undertaking cost analysis for repair and maintenance project work;

Assisting in establishing a client's requirements and undertaking feasibility

studies;

Performing risk, value management and cost control;

Advising on procurement strategy;

Identifying, analysing and developing responses to commercial risks;

Preparing and analyzing costing for tenders;

Allocating work to subcontractors;

Providing advice on contractual claims;

Analyzing outcomes and writing detailed progress reports;

Valuing completed work and arranging payments;

Maintaining awareness of the different building contracts in current use;

Understanding the implications of health and safety regulations.



Areas that may be worked on once the surveyor has experience and specialised

knowledge include:

Offering advice on property taxation;

Providing post-occupancy advice, facilities management services and life

cycle costing advice;

Assisting clients in locating and accessing additional and alternative sources of

funds;

Enabling clients to initiate construction projects;

Advising on the maintenance costs of specific buildings.

Safety Manager

An occupational safety and health is an important part of maintaining a workplace

environment. Also, safe workplaces are required by law. (Anon, 2014)

Responsibilities of Safety Manager

Conduct accident and incident investigations, determine probable causes and

make recommendations for corrective action.

Advising contractor regarding health and safety.

Running accident prevention and safety programs. (Anon, 2014)



Maintenance Team (Installation Team)

Mechanical Engineers

Electrical Engineers

Plumbing Engineer

Trunk Drivers

Crane Operators

HVAC installers

Heavy equipment operators

Mechanical Engineer

Mechanical Engineer is the responsible for the mechanical services associated with

the project during and after construction.

Electrical Engineer

Electrical Engineer is with the preparation of working drawings for electrical power

and distribution system during and after construction.

Plumbing Engineer

Plumbing Engineer is with the preparation of working drawings for Plumbing and

distribution system during the construction.



Main Cycle of work activities

The cycle of work activity is the process of work that is being done by the

construction company. In the cycle there are different stages with different people

involving in these stages. The following are the stages:

Preconstruction

Construction

Post construction

During these stages there are professionals who control these stages and how they

work. The main plans to the details are done by these professionals. These

professional are:

Architects

Engineers

Quantity Surveyors

Technical officers

Contactors

Labourers

Technicians

Managers

Project manager

Painters



The main cycle, its professionals and their duties are as follows:

Pre-construction stage

This is the stage where the designs for the construction and the cost for the

construction are prepared.

The professionals involved:

Architect or Engineer

Quantity Surveyor

Construction stage

This stage involves in the construction of the physical building. Different construction

methods are established and made use of during this stage. During this stage the

construction closely follows the drawings and instructions of the plan.

The professionals involved in this stage are:

Engineer

Quantity Surveyor

Contractors

Labourer

Manager

Technical officers

Project manager

Post construction stage

This is the stage where the installation of electricity, water and waste is done. In this

stage maintenance is done as the project is over. Once the project it is very important

to make sure that the construction stays in the same manner or gets improved with

time.

The professional involved in this stage are:

Engineers

Technical officer

Quantity Surveyor



6.0 Task E

Organizational Structure

An organizational structure defines the scope of acceptable behaviour within an

organization, its lines of authority and responsibility, and to some extent the

organization's relationship with its external environment. It shows the pattern or

arrangement of jobs and groups of jobs within an organization and yet it is more than

an organizational chart.

The organizational structure connects to both reporting and operational relationships.

The individual elements of an organizational structure typically include a variety of

components.

Departments or divisions

Management hierarchy

Rules, procedures, and goals

More temporary components such as task forces or committees.

The organizational structures should be shaped and implemented for the primary

purpose of helping the achievement of organizational goals in an efficient manner.

The organizational structure specifies how subordinates report to their superiors. This

enhances coordination in the activities of the members of the group. There are various

organization structures which include:

Direct line organizational structure

Lateral organizational structure

Functional organizational structure

Product organizational structure

Matrix organizational structure

Centralized organizational structure

Decentralized organizational structure (Anon, 2014)



A major advantage of an effective organizational structure is that it reduces conflict

between employees regarding who is to carry out certain jobs in the organization.

There are some more advantages include:

Facilitates specialization

Control over resources

Easier communication

Better employee performance (Anon, 2014)

Direct Line Organizational Structure

The direct line organisation has only direct, vertical relationships between different

levels in the firm. There are only line departments. The departments directly involved

in finishing the primary goal of the organisation.

Advantages of Direct Line Organizational Structure

Tends to simplify and clarify authority, responsibility and accountability

relationships

Promotes fast decision making

Simple to understand

Disadvantages of Direct Line Organizational Structure

Neglects specialists in planning

Overloads key persons

CEO

Manager

(Production)

Foreman (A)

Workers

Foreman (B)

Workers

Manager

(Markrting)

Sales Officer (A)

Sales Persons

Sales Officer (B)

Sales Persons



Lateral Organization Structure

The Lateral organization has a structure with power starting from the top down. There

is a well-defined chain of command with the lateral organization, and the person at

the top of the organizational chart has the most power. Employees report to the person

directly above them in the organizational structure. Each person is responsible for a

specific area or set of duties. (Bianca, 2014)

Advantages of Lateral Organizational Structure

Provide clear lines of authority and a tight span of control

Lead to high operating efficiency

The organization is comprised of relatively small departments, allowing

managers to closely monitor and control the activities of their subordinates

Each layer of the organization reports to the one directly above it, all the way

up the chain to top management

Each layer has its own clearly defined functions and responsibilities

Employees seeking advancement within the organization also have a clearly

defined "career ladder," with each layer of the organization representing

another rung the employee attempts to reach. (Anon, 2014)

Advantages of Lateral Organizational Structure

Feel less valued than those higher up in the chain

employees may not relish the accompanying culture of politics, which places

heavy emphasis on pleasing the boss

Take a great deal of time for top management decisions to filter down through

multiple layers,

Reducing the organization's ability to react quickly to a rapidly changing

business climate. (Anon, 2014)



Functional Organizational Chart

The positions in an organisation can be categorized as:

Line Position

A position in the direct chain of command that is responsible for the achievement of

an organisation’s goals.

Staff Position

A position intended to provide expertise, advice and support for the line positions.

The line officers or managers have the direct authority to be exercised by them to

achieve the organisational goals. The staff officers or managers have staff authority

over the line. This is also known as functional authority.

The line organisation managers cannot be experts in all the functions they are required

to perform. But in the functional authority organisation, staff personnel who are

specialists in some fields are given functional authority

The principle of unity of command is violated when functional authority exists.

Managing Director

Director (Personnel)

Director (Quality Control)

Director (Production)

General Manager (Production)

Manager (Works)

Foreman

Workers

Director (Research &

Development)

Director (Finance)

General Manager

(Q.C)

Manager

(Q.C)

Q C Engineer

Inspectors

Staff Authority

Line Authority



Product Organizational Structure

Companies typically develop an organizational structure to help them achieve goals

and objectives. These structures may derive from the management style of business

owners and managers or the divisions within the company. A product organizational

structure creates a structure centred on the company’s product lines. (Vitez, 2014)

Matrix Organization Structure

It is a permanent organisation designed to achieve specific results by using teams of

specialists from different functional areas in the organisation. The feature of matrix

organizational is applied to a horizontal set of divisions and reporting relationships

onto a hierarchical functional structure.

Sales Manager

Advertising Director

Sales Manger Product (A)

Sales People

Sales Manger Product (B)

Sales People

Sales Manger Product (C)

Sales People



Advantages of Matrix Organizational Structure

Decentralised decision making.

Strong product/project co-ordination.

Improved environmental monitoring.

Fast response to change.

Flexible use of resources.

Efficient use of support systems

Disadvantages of Matrix Organizational Structure

High administration cost.

Potential confusion over authority and responsibility.

High prospects of conflict.

Overemphasis on group decision making.

Excessive focus on internal relations

This type of organisation is often used when the firm has to be highly responsive to a

rapidly changing external environment



Centralized Organization Structure

A centralized organizational structure is a setup in which most power and critical

decision making responsibilities are concentrated with a few key leaders. A

centralized organization often houses its primary decision makers or executives in a

central headquarters with offices and meeting areas for leaders to discuss business.

Advantages of Centralized Organizational Structure

Focused vision

Fast Execution

Reduced conflicts

Control and Accountability

Disadvantages of Centralized Organizational Structure

Delay in work

Remote control

No loyalty

No Secrecy

No special attention

CEO

Marketing Production Human

Resource Information Technology

Customer Service



Decentralized Organization Structure

Decentralization is a type of organizational structure in which daily operations and

decision-making responsibilities are delegated by top management to middle and

lower-level mangers within the organization. The top management is allowing to

focus more on major decisions. For a small business, growth may create the need to

decentralize to continue efficient operations. Decentralization offers several

advantages, though relinquishing control may be difficult for a business owner

accustomed to making all the decisions.

Advantages of Decentralized Organizational Structure

Empowering employees

Reliving the Burden

Preparing for emergencies

More efficient decision making

Ease of expansion

Managing Director

General Manager (A)

Foreman (A)

Foreman (B)

General Manager (B)

Foreman (A)

Foreman (B)

General Manager (C)

Foreman (A)

Foreman (B)



Disadvantages of Decentralized Organizational Structure

More cost

No specialization

Need more specialists

No uniform action

No equitable distribution of work

Control Systems

Types of Business

Branches of organization

Type of organization



7.0 Task F

Approaches of organization Chart

Span of Control

The Span of control in management has effects for work flow, communications, and

opportunities for promotion in a company. The Span of control is the number of staff

that report to a manager. Companies have an ideal span of control, which is the

number of reports they feel a manager can effectively manage.

Implications of Span of Control

Span of control of an organization determines the width of the organization. Span of

control divide into two categories.

Narrow spans - Fewer reports to the manager will result in a taller organizational chart

with more management positions relative to the number of individual contributors.

Wide spans - A higher number of reports to the manager will result in a flatter or

wider chart with fewer management positions relative to the number of individual

contributors.



Narrow spans lead to

Fewer opportunities for promotions, since there are fewer management

positions in the company.

The concern that manager input will be relatively harder for staffers to obtain,

and managers will have less time to focus on specific decisions. Employees

will need to be relatively more self-motivated and independent in their work

style due to having less manager input.

Important strategic decisions by the company will have relatively less time

spent on them, due to the reduced time available to focus on individual

decisions. This can lead to less-than-optimal responses to business

opportunities and threats.

http://www.tutor2u.net/business/gcse/organisation_public_sector_clip_image003.gif



Wide spans lead to

Faster decision-making due to fewer levels of approvals required for a specific

decision, which allows the company to respond more quickly to business issues.

Better and more frequent communication between higher-level managers and

staffers, so the staff is more knowledgeable about company goals and the higher-

level managers are more knowledgeable about daily operational issues faced by

staff.

Reduced costs relative to taller organization, since there are fewer

management layers needing compensation.

http://www.tutor2u.net/business/gcse/organisation_public_sector_clip_image004.gif



Chain of Command

The chain of command refers to a company's hierarchy of reporting relationships in an

organizational structure from the bottom to the top of an organization. The chain of

command not only establishes responsibility it lays out a company’s lines of authority

and decision making power. A proper chain of command ensures that every task has

one person assuming responsibility for performance.

Formation of chain of command

The command chain doesn't happen accidentally. Organizational designers lay it out

as the last step in creating an organizational structure.

Planners first consider a company’s goals since organizational structure must

support strategy.

Determine the tasks needed to reach the goals.

Departmentalization follows as designers decide how to group the tasks.

Grouping affects resource sharing and the ease with which people

communicate and coordinate work.

After departmentalizing, designers assign authority for tasks and areas.

Once the authority is assigned, planners can finally lay out the relationships between

positions, thereby creating a chain of command.



Example for Chain of Command

CEO

Exceutive Vice

President President

Vice President

Vice President

Vice President

Vice President

Region 1 Region 2

District A District B District C District D District E District F District G

Region 3 Region 4 Region 5

Vice President

Excecutive Vice

President



Job Design

Job design is the specification of the contents, methods and relationships of jobs to

satisfy technological and organizational requirements as well as the personal needs of

job holders.

There are clearly many alternative designs for any given job. An understanding of

what the job design is supposed to achieve is particularly important. There are five

performance objectives give a guide to what is relevant in job design decisions.

Quality

Speed

Dependability

Flexibility

Cost

Health and Safety

Quality of Working Life



8.0 Task G

Project Based Organizational Structure

Every construction is naturally project based but other companies also can organize

their business structure based on projects. Some companies find that the structure

means increased sluggishness and allowing them to adjust quickly to market changes.

The Project based organizational structures are based on hierarchies, functions and

operations. Essential company functions are maintained in a management structure,

while the work is carried out in project based groups. An employee can have one boss

for project related work but another for promotions and benefits. As a business owner

could have several project groups reporting on tasks. Meanwhile it can maintain

company functions outside the project groups.

Construction projects are time limited by definition and organizational structures

based on projects continuously change as the projects change. This continuous flux

results in increased flexibility in assigning work to the employees best suited to the

tasks.



Mäga Engineering Commercial Building Project Based Organizational Chart

Disadvantages of Project Based Organizational Structure

Projects isolate

Project team not coordinating with other teams or the rest of the company.

The risk of having a lot of very well-implemented components of the business

running without fitting together well.

Employees are always on the move, reporting to different project managers

and performing different tasks.

Increased Need for Effective Leadership

Pro

ject

Co

ord

inat

or

Mr.

M.G

. K

ula

ratn

e

Project Manager

Mr.N.A. Ranasinghe

Site Engineer

Mr.H.D.M. Peiris

Pro. Engineer

Mr.J.S.A. Ponweera

Formwok Foreman

Mr.L. De H.P. Pushpakumara

Trainee Supervisor

Mr. D.P.B.A. Sanjeeva

Pro. Engineer

Me.H.Y.V. Dias

Trainee Supervisor

Mr.M.M.N.L. Megasooriya

Asst. Surveyor

Mr.N.L. Kandewattha

Supervisor

Mr.E.M. Udara Sampath

Supervisor

Mr.G.K.S.S. Wimalasena

Pro. Engineer

Mr. T.G.P. Rathnayake

Cons. Supematendent

(Scaffolding)

Mr. Gamini Thesera

Cons. Supematendent

(Rebar)

Mr. Shantha Gamage

Supervisor

Mr.H.D.V.A. Vidanage

Store Keeper

Mr. D.K.M.A. Padmasiri

Ass. Accountant

Mr. K.V.P. Pushpakumara

Quantity Surveyor

Mr. Asanga Pradeep

Trainee Quantity Surveyor

Mr.W. Eranga



9.0 Task H

Purpose of Mission Statement, Strategy, Corporate Planning, Policy and

Objective of an Organization in Construction and Built Environment Sector

Mission Statement

The mission statement is a statement declaring the purpose of an organization or the

reason for the company existence. A mission statement provides framework and

context to help guide the company's strategies and actions by spelling out the

company's overall goal. Initially a mission statement helps decision making internally

while also expressing the company's mission to workers, customers, suppliers, and the

community. (Hom, 2014)

A mission statement is not a marketing tool designed to grab attention quickly. While

it should be catchy and memorable, a mission statement is a thoughtful declaration

designed to articulate the goals and philosophies of a company. (Hom, 2014)

A mission statement is also not a business plan. A business plan is an organized

outline of the ideas about how the business functions. A mission statement differs

from a vision statement. A mission statement says what the company currently is and

a vision statement states what the company hopes to become. (Hom, 2014)

A mission statement is not an immortal statement. As a company grows over time, the

company's mission and intent may also change. It is good to retreat to the mission

statement every five years to see if it needs to be perfected or rewritten. A mission

statement will keep any company on track, but it shouldn't become flat or irrelevant.

(Hom, 2014)



A good mission statement addresses several questions:

What are the opportunities or needs that the company addresses?

What is the business of the organization? How are these needs being

addressed?

What level of service is provided?

What principles or beliefs guide the organization?

The mission statement should be short yet resonate with both employees and those

outside of the organization. The organization's purpose must be expressed in a way

that inspires support and ongoing commitment. It is up to the mission statement to set

the tone of the company and outline concrete goals.

Here are some examples of mission statements from large construction companies in

Sri Lanka:

Mäga Engineering: “Maga is excellence driven and committed to ensure the

satisfaction of customer needs with utmost care, by constantly providing quality

products and services at affordable prices, thus creating a fair and growing return to

our organization, an inspiring workplace and a continued sense of security to our

employees, enabling us to contribute to society in elevating the quality of life”

Access Engineering: “To meet the challenges in the development of multi sector civil

engineering projects, providing innovative solutions whilst developing long term

progressive relationships with all our stakeholders”

Sunken Construction: “To provide a quality professional service, exceeding

customer expectations, by the effective utilisation of all resources, with the best

practice of the industry”

CML & MTD Construction: “To effectively utilize and develop the company’s

resources in Engineering, Technical knowledge, Management skills and capital in

combination with state of the art Plant and technology to efficiently execute projects

providing value additions to all our stakeholders”



Thudawa Brothers: “To offer timely delivery of quality construction and services at

a competitive cost through motivated staff, superior technology, efficient systems and

sustainable development"

Nawaloka Construction:

“We are in the Construction and Piling industry.

We provide our Clients / Customers with a reliable satisfactory service.

We are a dedicated, proactive team.

Our services and performances are well recognized and rewarded”

The above statements reflect every facet of a business and the range and nature of

products offered, pricing, quality, service, etc. A good mission statement reflects how

the business fits into a certain niche in a unique way. A mission statement answers

one main question: How does a business differ from its competitors? (Hom, 2014)



Organization Strategy

An organizational strategy is the sum of the actions which is a company expects to

take to achieve long term goals. These actions make up a company’s strategic plan.

Strategic plans take at least a year to complete, requiring involvement from all

company levels. Top management creates the larger organizational strategy, while

middle and lower management adopt goals and plans to fulfil the overall strategy step

by step.

Corporate Planning

Business success is dependent upon clear and conclusive planning. Strong sales and

customer holding drive profit success. The increased sales and improved customer

holding is a product of the business planning that occurs behind the scenes. There are

many types of planning that businesses use. The corporate planning is the most

common.

The corporate planning defines the strategies that the employees will take to meet the

business’ goals and missions. This type of planning is also known as strategic

planning which focuses on staff responsibilities and procedures. The strategic

planning requires a close look at the company’s missions, strengths and weaknesses.

Though corporate planning identifies the step-by-step process of the business and

achieves accomplishments. Corporate planning also provides specific, measurable

goals with realistic time lines.



Organizational Policy

A Policy is a statement of an organization is an agreed intent that clearly and

unequivocally sets out an organisation’s views with respect to a particular matter.

It is a set of principles or rules that provide a definite direction for an

organisation

Policies assist in defining what must be done

(Organizational Policy & Procedures, 2014)

A policy is important for:

Workers in an organisation can have a framework for actions that help them

get on with the job they need to do

employees in the organisation don’t have to keep on discussing and discussing

the same issues every time they arise and decision can be applied efficiency

Legal and other requirements can be met

A tool for quality improvement

(Organizational Policy & Procedures, 2014)

Objective of an Organization

Organizational objectives are short-term and medium-term goals that an organization

seeks to accomplish. An organization's objectives will play a large part in developing

organizational polices and determining the allocation of organizational resources.

Achievement of objectives helps an organization reach its overall strategic goals.

(Grimsley, 2014)

Setting organizational objectives can involve many factors. It can set a single

objective for your organization or multiple objectives. You set target deadlines for the

accomplishment of objectives. Other critical factors include who controls the

decisions that will affect objective achievement. The decision-makers must be

committed to the objectives. (Grimsley, 2014)



10.0 Task I

How The Influence of the scale and Size of a Project Can Affect the Way a

Construction Business Organized and Managed

Every construction has a scale and size which is important to organise and manage a

project. This is influenced to a project because construction project is depending on

the amount of work that needs to be done.

The scale and time of a project general impact on several factors;

Project Time

Project Cost

Project Quality

Project Resources

Construction techniques

A general contractor is needed to manage and organise the project around these

factors. He also should consider these impacts to move the project toward success and

profit.

When a principal contractor is selected the client should consider whether the

contractor has enough capability to achieve the project without failure. It is his

responsibility to find out whether the size and scale of the project can be managed by

principal contractor because as it explained earlier if he doesn’t have capable of

manage and organize the project it will lead to failure and lost.

Therefore a scale and size of a project directly influence on project management and

organising.



11.0 Task J

Estimated Cost and Actual Cost

Estimates costs are the expressions of opinion (cost) based upon past experiences.

Though the standard costs are based upon standard rate that are very carefully

developed and set as scientifically as possible. However, both estimated costs and

standard costs are related to future period of time but there are some significant

differences between them. (Anon, 2010)

Different Between Estimated Cost and Actual Cost

Estimate Cost Actual Cost

Estimated costs are the expressions of

opinion based upon experience

Standard costs are based upon standard

rates that are carefully developed and set

as scientifically as possible

Estimated costs are used by those firms

that follow historical costing system

Standard costs are used by those

organizations that follow standard costing

Estimated costs are based on actual costs

and anticipated costs

Standard costs are fixed after scientific

analysis of relevant cost elements

Estimated costs are based on

approximation

Standard costs are based upon

specifications

Estimated costs are normally used as

guideline for price determination, quoting

the selling price etc.

Main purpose of standard costs is to serve

as a tool for cost control



Cost Planning

Cost planning ensures value for money and responsible management of public monies

of a capital project’s finances, including the requirements set out in the code of

practice for the building and construction industry.

There are very many different names given to cost planning documents.

Cost plans are generally prepared by quantity surveyors.

Considerations of Cost plan preparation

Go forward through the life of the project

Developing in detail and accuracy as more information becomes available

about the nature of the design

Then actual prices are provided by specialist contractors, contractors and

suppliers. They range from very early initial cost appraisals through to tender

pricing documents and the final account.

As a result there are a great number of names that can be used for key cost

planning information. It has standardised these as follows:

Initial cost appraisals (studies of options prepared during the feasibility

study stage).

Elemental cost plan (prepared during the project brief stage and carried

through to detailed design).

Approximate quantities cost plan (from the end of detailed design through

to tender).

Pre-tender estimate (prepared alongside tender documentation).

Tender pricing document (strictly speaking this is not a priced document, but

is part of the tender documentation issued to the contractor for pricing).

Contract sum (agreed with the contractor during the tender period and adjusted

during the construction period).

Contract sum analysis (a breakdown of the contract sum prepared by

the contractor on design and build projects).

Final account (agreed during the defects liability period).

Other than initial cost appraisals, these all relate to the construction cost of the project.

It is important that the client makes clear what costs should be monitored by

the quantity surveyor and what will remain within the control of

the client organisation.



Cost Control

The cost controls starts by the businesses identifying what their costs are and evaluate

whether those costs are reasonable and affordable. Then it can look for ways to cut

costs through methods.

To have a profit to companies it must not only earn revenues. It also must controls

costs. If costs are too high, profit margins will be too low. It is making difficult for a

company to succeed against its competitors. In the case of a public company, if costs

are too high, the company's may find that its share price is depressed and that it is

difficult to attract investors.

Main Advantages of Cost Control

Lower Expenses

Less Abuse

Better Records

Atmosphere of Thrift

Cost control takes on many different styles and forms, depending on the underlying

reason for reducing expenses and expenditures. Small constructions particularly look

for cost control measures that enable both growth and sustainable business

endeavours. Irrespective of the area of spending the construction must plan for

controlling their costs or they risk the experience of painful cost control instead of

whittling down their expenses in a painless, unified fashion. The difference between

painful and painless cost control is that painful reductions negatively impact

operations and painless cost control has the least impact on the business and its future.

(Mayhew, 2014)



Cash Flow

An income or expense changes a cash account over a given period. Cash inflows

usually arise from one of three activities

Financing

Operations

Investing

Although this is also occurs as a result of donations or gifts in the case of personal

finance. Cash outflows result from expenses or investments. This holds true for both

business and personal finance. (Anon, 2013)

In construction as in personal finance cash flows are essential to creditworthiness.

They can be offered as a record of something that has happened in the past or

forecasted into the future or a person expects to take in and to spend. Cash flow is

critical to an entity's survival. Having plenty cash on hand will ensure that creditors,

employees and others can be paid on time. If a business or person does not have

enough cash to support its operations, it is said to be insolvent, and a likely candidate

for bankruptcy should the insolvency continue. (Anon, 2013)



Monitoring of Construction

Construction monitoring is an accurate and positive way of checking the quality,

accuracy and progress of a construction project. A specialist teams will oversee all

aspects of construction identified by due diligence phase and provide reports, updates

and advice to give a complete project control.

Areas to monitor include:

The construction environment

Quality control

Timeliness and meeting targets

Negotiations, suppliers and supplier performance

Health & safety

Costing

Materials

Conformance with plans and specifications

Construction monitoring gives a clear view of the project’s progress, and allows

addressing problems before and as they arise.

A construction project is a product of different information and designs from different

professionals. If these information and designs are to be adhered to, the presence of

their producers and designers are required. (Mishra, 2010)

The Architect

Engineering Consultant

Builder

Quantity Surveyor

Monitoring Techniques

Work Breakdown Structure (WBS)

Gantt chart

Arrow diagram or critical path analysis

Progress curves (Mishra, 2010)



Installation of Work in Construction



12.0 Task K

Concept of Sharing Best Practice

In a project if a person is doing well other people tend to be interested in what he is

doing and how he is doing it, so that they can be successful too. Sharing best practices

is a key part attributing to the success of any organization. Similar to the old saying,

“Learn from other’s mistakes” it’s important to learn from individual experiences,

but it’s much easier and more effective to learn from the experiences, mistakes and

successes of others.

A best practice defined as a standard-operating method that produces the best

performance and results. Best practices are not rules or laws. They are bendable,

adaptable to individual needs and systems. They are learning tools.

The sharing of best practices can help avoid reinventing the wheel, and more quickly

enact new processes or programs that can help improve internal processes and service

to customers. By its very nature, a franchise organization thrives on best practices.

Sharing what successful franchisees are doing encourages others to do the same.

There are many ways to strengthen commitment to a best-practices culture:

Incorporate strategic communications from company leadership.

Integrate this commitment into key messages.

Celebrate best practices.

Integrate best-practice sharing into all formal and informal meetings.

Be open to changing the operations manual to incorporate best practices.



Implementing best practices

Best practices are only useful if employees are put them into practice. To keep these

best practices going and to continually evolve into other, new best practices. They

encourage continuous learning and continual improvement. The result can be more

candid dialogue and improved relations.

The employees who have been in the industry for a number of years are the best

people to talk to. They will be the first to recognize the most effective best practices

and the first to pass those best practices on to others.

Implement best practices to ensure optimum organizational effectiveness, quality

service, and employee satisfaction.

Best Practices Sharing should be:

Widespread:

o Face-to-face, on paper and electronic;

o Within teams, departments, the federal Public Service, Canada, the

world;

o Available to employees at all levels in the organization;

Effective:

o To systematically improve service, processes, client and employee

satisfaction;

o By briefly describing the practice and results, and designating an

accessible contact person;

o By leaders, trainers, facilitators and employees supporting best

practices sharing;

o By taking full advantage of present and future technological

possibilities.



Bench Marking

Benchmarking is the process of identifying best practice in relation to both products

(including) and the processes by which those products are created and delivered. The

search for best practice can take place both inside a particular industry, and also in

other industries. (Riley, 2012)

The objective of benchmarking is to understand and evaluate the current position of a

business or organisation in relation to best practice and to identify areas and means of

performance improvement. (Riley, 2012)

The Benchmarking Process

Benchmarking involves looking to examine how others achieve their performance

levels and to understand the processes they use. In this way benchmarking helps

explain the processes behind excellent performance. When the lessons learnt from a

benchmarking exercise are applied appropriately, they facilitate improved

performance in critical functions within an organisation or in key areas of the business

environment. (Riley, 2012)

Application of benchmarking involves four key steps:

1. Understand in detail existing business processes

2. Analyse the business processes of others

3. Compare own business performance with that of others analysed

4. Implement the steps necessary to close the performance gap

Benchmarking should not be considered a one-off exercise. To be effective, it must

become an on-going, integral part of an on-going improvement process with the goal

of keeping abreast of ever-improving best practice. (Riley, 2012)



Types of Benchmarking and The Way It Used For:

There are a number of different types of benchmarking, as summarised below:

Type Description Most Appropriate for the

Following Purposes

Strategic

Benchmarking

Where businesses need to

improve overall performance

by examining the long-term

strategies and general

approaches that have enabled

high-performers to succeed.

It involves considering high

level aspects.

Changes resulting from this

type of benchmarking may

be difficult to implement and

take a long time to

materialise

Re-aligning business

strategies that have

become inappropriate

Performance or

Competitive

Benchmarking

This type of analysis is often

undertaken through trade

associations or third parties

to protect confidentiality.

Assessing relative level of

performance in key areas

or activities in comparison

with others in the same

sector and finding ways of

closing gaps in

performance

Process Benchmarking Process benchmarking

invariably involves

producing process maps to

facilitate comparison and

analysis. This type of

benchmarking often results

in short term benefits.

Achieving improvements

in key processes to obtain

quick benefits



Functional

Benchmarking

Businesses look to

benchmark with partners

drawn from different

business sectors or areas of

activity to find ways of

improving similar functions

or work processes. This sort

of benchmarking can lead to

innovation and dramatic

improvements.

Improving activities or

services for which

counterparts do not exist.

Internal Benchmarking There may be fewer barriers

to implementation as

practices may be relatively

easy to transfer across the

same organisation. Real

innovation may be lacking

and best in class

performance is more likely

to be found through external

benchmarking.

Several business units

within the same

organisation exemplify

good practice and

management want to

spread this expertise

quickly, throughout the

organisation

External Benchmarking This type of benchmarking

can take up significant time

and resource to ensure the

comparability of data and

information, the credibility

of the findings and the

development of sound

recommendations.

Where examples of good

practices can be found in

other organisations and

there is a lack of good

practices within internal

business units



International

Benchmarking

Best practitioners are

identified and analysed

elsewhere in the world,

perhaps because there are too

few benchmarking partners

within the same country to

produce valid results.

Where the aim is to

achieve world class status

or simply because there

are insufficient"national"

businesses against which

to benchmark.

However benchmarking is comparing one’s business process and performance metrics

to industry bests or best practices from other industries. As it is best practices sharing

can used for benchmarking. It will help to lead industry success without failures.

Therefore sharing best practices most useful tool for benchmarking.



13.0 Task L

Sustainable Construction and Environmental Management and Conservation

Issues Impact on the Organization and Operation of a Project

Sustainable Construction

Sustainable construction objects at reducing the environmental impact of a building

over its entire lifetime, while enhancing its economic feasibility and the comfort and

safety of its occupants. (Anon, 2007)

Sustainability is one of the world’s most spoken and less understood word in past but

nowadays it is become more common everywhere. Presently most countries and

individuals take the subject seriously the concept of sustainability. They try the

preservation of the environment as well as critical development-related issues such as

the efficient use of resources, continual social progress, stable economic growth, and

the eradication of poverty.

In the world of construction, buildings have the capacity to make a major contribution

to a more sustainable future for our planet.

Sustainable construction targets to meet present day needs for

Housing

Working environments

Infrastructure

Without give in the ability of future generations to meet their own needs in times to

come. It incorporates elements of

Economic efficiency

Environmental performance

Social responsibility



Issues involve in Sustainable Construction

Design and management of buildings

Materials performance

Construction technology and processes

Energy and resource efficiency in building

Operation and maintenance

Robust products and technologies

Long-term monitoring

Adherence to ethical standards

Socially-viable environments

Stakeholder participation

Occupational health and safety and working conditions

Innovative financing models

Improvement to existing contextual conditions

Interdependencies of landscape, infrastructure, urban fabric and architecture

Flexibility in building use, function and change

The dissemination of knowledge in related academic, technical and social

contexts.

Based on this concept it will make sustainable construction easier to understand,

evaluate and apply for sustainable construction.



Environmental Management in Sustainable Development

There are several graduate opportunities in sustainable development, include:

Resources efficiency

Waste management

Energy

Transport – technology

Resource Efficiency

Resource efficiency means using resources such as water, energy and even your

workforce more efficiently. Getting the most out of what you have. This can be

beneficial in many ways such as reducing the amount of material used and/or

manufacturing costs, reducing waste materials and compliance to environmental

legislation. It also reduces your impact on the environment.

Waste Management

Sustainable Development mainly focuses on two factors regarding waste

management:

Recycling and Recovery

Reuse

Recycling and Recovery

Difficulties and issues to examine include materials, waste and non-operational

products. Useful characteristics to explore are:

The ease of mechanical disassembly at the end of the products life, so

materials can be reused

Increasing material standardisation - especially relevant where the need for

recyclability is increasing instead of various composites.

Choose materials that easily separable and are not mutually contaminating,

and improved separation techniques of composite parts.



Reuse

Despite efforts to reduce the amount of waste generated, consumers and businesses

still create substantial waste. Much of this waste can immediately be reused to

minimize the strain on the environment and municipal waste management.

There are four major barriers to recycling and re-use: cost, contamination, available

markets, and the generally lower grade of recycled product quality. These

implications must be addressed realistically, not idealistically.

Dispose

Waste that cannot be reused or recycled in some form eventually finds its way to

disposal. This disposal includes landfills, but an increasing number of municipalities

have elected to divert waste into resource recovery. These recovery methods use the

waste to generate electricity or produce raw materials for industry. However, resource

recovery is not without its own undesirable effects, such as pollution from

incinerators. Some waste, however, is not suitable for resource recovery methods.

Energy

There is an ever-increasing demand for electricity. Black-outs in recent times, in

various parts of the world, are proof if any were needed. Britain is predicted to be a

net importer of energy by the end of the decade; some researchers suggest as much as

three-quarters being imported by 2020.

Transport Technology

For many companies the price of transporting goods and materials accounts for a

large part of their total overheads. So does the provision of car parking spaces for

staff. Transport offers wide-ranging and considerable opportunity for resource

efficiency improvements, especially those involving people.

Organizations often find it helpful to work with external advisors to share and apply

best practice in the area of transport. Transport issues span all sectors, so significant

commonality and opportunity to share ideas exists in this area.



Considering above all sectors construction industry starts a sustainable development

in construction to avoid negative environmental impact from it. So they decide to

have a sustainable construction technology towards future generation. Nowadays it is

most spoken concept towards young builders too.

These sustainable construction and environmental management impact on the

organization and operation of a project, such as:

Construction Techniques

Materials

Construction Duration

Construction Quality

Construction Cost



Conservation Issues

Nowadays transition toward a world society, protection of the environment and

conservation of the earth's resources represent an enormously complex challenge. The

rapid progress in science and technology that has united the world physically has also

greatly accelerated destruction.

Among the principles guiding approach to conservation and sustainable development,

the following are of particular importance

Nature reflects the qualities and attributes of God and should, therefore, be

greatly respected and cherished;

All things are interconnected and flourish according to the law of reciprocity;

and

The oneness of humanity is the fundamental spiritual and social truth shaping

our age

There are two major impacts which can effect to conservation issues regarding

sustainable development

Local Pollution

Indoor Pollution



Part 2

14.0 Task M

Techniques Used to Organise the Layout of a Project

Most construction sites that run into trouble do so for reasons related to managerial

factors rather than because of technical problems. The site-based management can

make significant improvements in the cost and time savings during the construction

process without involving a mass of additional work. The role of site managers is to

control and maintain work performance and then taking actions to rectify situations

where performance is unsatisfactory.

Site management, in general, involves many tasks, such as site investigation before

construction process starts, material delivery and procurement management, keeping

better site records, keeping good site communication and high level of information

flow, monitoring performance regularly, establishing a well co-ordination system

among different parts, and performing a good site layout planning

Among the important tasks of site management is the site layout planning. Extensive

time loss and cost overruns could result in large projects, where the number of

manpower, subcontractors, and equipment involved are high there is no effective and

systematic approach to site planning.

A detailed planning of the site layout and location of temporary facilities can enable

the management to make considerable improvement by

Minimizing travel time

Waiting time

Increasing worker morale by showing better and safer work environment.

Due to its importance, this research focuses on the site layout planning problem.



Problems of Failed Layout Plan

Failure to plan the site layout in advance is a prime cause of operational inefficiency,

and can increase the overall cost of a project substantially. In the absence of a precise

site layout plan, the following problems may occur:

Material stacks wrongly located.

Plant and equipment wrongly located.

Inadequate space allowed.

Site huts wrongly located in relation to their effective use.

There it should consider several elements regarding site layout planning

A well planned site including all temporary facilities and utilities lead to:

Increasing productivity and safety

Reducing area(s) needed for temporary construction

Maximizing utilization.

The following points should be considered in good site layout.

Safety

Site Accessibility

Information Signs

Security

Accommodation

Offices

Water Supply and Sanitary

Material Handling

Storage and Site Cleaning

Craft Change-Houses

Batch Plant and Fabrication Shops



Resourcing a Project

Effective resourcing contributes to project success in Project Management.

Identifying project resource requirements at an early stage helps to ensure the smooth

running of a project.

Resourcing isn’t just about people, it’s also about materials and equipment. Creating

a resource management plan will help project managers identify all of the resources

they need to successfully complete the project. It helps to determine the amount of

labour, materials and equipment required for the project to operate and meet the

objectives set out in the Project Plan.

Resource management planning scopes out the level of resources needed to complete

a project. The Resource Plan will specify the exact quantities of labour, equipment

and materials required to complete a project

Resource planning is part of the project planning phase of the project management life

cycle and takes place before project execution.



Accommodation



15.0 Task N

Work Plan

Problems will arise in every Construction Project. These problems and their

alternative solutions establish some elements of change around which the organization

must adapt. Projects are generally established to carry out these changes and someone

is always responsible for each project's successful completion.

A work plan is an outline of a set of goals and processes by which a team or person

can accomplish those goals, offering the reader a better understanding of the scope of

the project. Work plans, whether used in professional or academic life, help to stay

organized while working on projects. Through work plans, you break down a process

into small, achievable tasks and identify the things you want to accomplish.

A work plan is being followed several steps to write it:

Identify the purpose for your work plan

Write the introduction and background

Determine your goal(s) and objectives

Consider ordering your work plan by "SMART" objectives

o S -Specific

o M -Measurable

o A -Achievable

o R -Relevant

o T -Time bound

List project resources

Identify any constraints

Who is accountable

Write project strategy



Monitoring

In project type product production the need for feedback creates the task of collecting

field progress measurements. This task may be completed by experienced engineers

or assigned to interns and field hands. Either the process of field production feedback

is naturally wrong and may lead to unforeseen project events. It is possible that other

industry divisions have similar issues and used solutions applicable to construction.

A construction project is a product of different information and designs from different

professionals. If these information and designs are to be adhered to, the presence of

their producers and designers are required. (Mishra, 2010)

The Architect

Engineering Consultant

Builder

The Quantity Surveyor

Areas of Monitoring

A construction project is considered successful if it meets defined needs to the

required standard (quality) within the time and cost budget. These parameters –

quality, cost and time are critical and should therefore be monitored as they define the

success level of any construction project. (Mishra, 2010)



Quality

For monitoring of quality to be effective, it must be measured against a standard. The

Project Quality Management Plan serves as a standard against which the quality of

a construction project can be measured. Quality in a construction project depends on a

range of variables and involves much more than the simple parameters such as the

visible standard of finishes, structural soundness, or making of components fit within

close tolerances. The monitoring of quality should embrace all the aspects by which

a construction project is judged including spatial arrangement, circulation, efficiency,

aesthetic(s), flexibility as well as its functional ability as a climate modifier and as a

suitable structure. (Mishra, 2010)

Besides the Project Quality Management Plan, contract and job specifications also

provide a criterion by which to assess and assure the quality of a construction project.

Cost

For control and monitoring purposes, the detailed cost estimate should be converted to

a project budget, and the project budget is used subsequently as a guide for

management. The detailed cost estimate should provide a baseline for the assessment

of financial performance during a construction project. Expenses during the course of

the project should be recorded in specific job cost accounts and this should be

compared with the original detailed cost estimates. When the cost is within the

detailed cost estimate, the cost and finance of a construction project are thought to be

monitored and under control. (Mishra, 2010)

Time

Construction typically involves a deadline for work completion, so construction

managers must force attention to time. More generally, a delay in construction

represents additional costs due to late facility occupancy and other factors. The

duration of activities must therefore be monitored and compared to expected durations

so that the project is completed within the time required. (Mishra, 2010)



Monitoring Techniques

The method of ensuring that an accurate check is kept upon progress in

a construction project is very important, depending as it does upon frequent

comparisons between works done and programme. Such comparisons can be made in

a simple visual manner, so as to throw into prominence any divergence between the

two by plotting the progress on the construction programme (Mishra, 2010)

Monitoring tools will involve recording techniques such as the use of network

diagrams like:

i. Gantt chart

ii. Arrow diagram or critical path analysis

iii. Progress curves

Before any of the above monitoring techniques can be implemented to monitor a

project effectively, a thorough knowledge of the entire work associated with

the construction project must be known. This leads us to the concept of Work

Breakdown Structure.

Work Breakdown Structure (WBS)

A Work Breakdown Structure provides a rational subdivision of the work in

hierarchical form down to the lowest level of discrete work packages from which

estimates of resources requirements, duration, linkages and costs can be determined.

From the Work Breakdown Structure, a list of activities and precursor activities can

be produced for the purposes of network analysis, from which programmes and chart

flow. (Mishra, 2010)



The Gantt chart

This is a simple and effective way of illustrating progress or status of an entire project

or its individual status. A Gantt chart, also known as a bar chart, graphically describes

a project consisting of a well-defined collection of tasks or activities, the completion

of which marks its end. An activity is a task or closely related group of tasks whose

performance contributes to completion of the overall project. (Mishra, 2010)

The Gantt chart is generally organized so that all activities are listed in a column at

the left side of the diagram. A horizontal time scale extends to the right of the list,

with a line corresponding to each activity on the list. A bar representing the duration

of each activity is drawn between its corresponding scheduled start and finish times

along its horizontal line. (Mishra, 2010)

Gantt charts can be modified in order to show planned progress as well as to report

progress. In order to report progress, a parallel bar is sometimes placed below the plan

bar, and it is initially left open. Then, as the job progresses, it is shaded in direct

proportion to the physical work completed on the activity.

The Gantt chart is an effective way to monitor the duration and cost associated with

a construction project. (Mishra, 2010)



The Critical Path Method (CPM)

The Critical Path Method is the systematic representation of a project by means of a

diagram called network depicting the sequence and interplay of various

components/units that go to form the project. (Mishra, 2010)

The Critical Path Method is activity based. This does not take into account of the

uncertainties involved in the estimation of time for the execution of an activity. The

times are related to costs. The activities are represented by arrows. These arrows are

connected in order of sequence of operations. The nodes which represent events are

attached to the beginning and end of each arrow. (Mishra, 2010)

The Critical Path Method provides a powerful means of documenting and

communicating project plans, schedules and performance to managers. It also

identifies the most critical elements in the project schedule and thus, allows

management to set priorities and focus attention on them. (Mishra, 2010)

Progress Curves

Progress curves, also called S curves, graphically plot some measure of cumulative

progress on the vertical axis against time on the horizontal axis. Progress can be

measured in terms of money expended, quantity surveys of work in place, man-hours

expended, or any other measure which makes sense (Barrie et al, 2006); and this can

be expressed either in terms of actual units (naira, cubic meters, etc) or as a

percentage of the estimated total quantity to be measured. (Mishra, 2010)

Progress curves can express some aspects of project plans. Once the project is

underway, actual progress can be plotted and compared with that which was plotted.

It is then possible to make projections based on the slope of the actual progress curve.



Progress Control

The Progress Control component covers all the

Activities

Techniques

Responsibilities

Possible tools

Above components are used during a project to monitor and assess objectives and

results achieved against those planned.

A continuous monitoring and control is performed regularly during the course of the

entire project life-cycle in order to verify and find out the continuous project viability.

The threaten of the project’s objectives and provides a procedure in order to deal with

deviations from any of the established levels of tolerance in a project may provide

component and guidance to the Project Manager on how to deal with events which

may being very closely related to the Manage by Exception Principle.

Progress Control is measured against the planned objectives and reflect the different

monitoring needs related to the different levels of planning. For this reason the

monitoring and control procedures and techniques used must cover:

Progress Monitoring (Actual vs. Planned)

Achievements Assessment (Actual vs. Planned)

Work Package Assessment

Stage Plan Assessment

Project Plan Assessment

Risk and Issue Monitoring

Problem Solving activities

Go/no-go Decision assessments



These controls must be performed at all levels of planning to make sure the interests

of all levels of management are covered. The Project Manager will monitor stage and

work package status, the Project Board will monitor Stage and Project Status and the

Corporate or Policy making environment will monitor the Project Board.



16.0 Task O

Methods employed to Plan, Schedule and manage the supply and utilization of

resources.

Methods Employed to Plan a Project

Planning a project is the key to a successful project. Before planning a project it

should get an idea to do when undertaking any kind of project.

Many people know the value of a project plan in saving time, money and many

problems. (Haughey, 2014)

Project planning approaches that have several steps include:

1. Project goals

2. Project deliverables

3. Project schedule

4. Supporting plans

Project Goals

A project won’t successful until the needs of the stakeholders have been met. The

stakeholders are anybody directly or indirectly impacted by the project, such as:

The project sponsor.

The customer who receives the deliverables.

The users of the project outputs.

The project manager and project team.

As a first step, it is important to identify the stakeholders in the project. Once it

understands the stakeholders are, find out their needs is the next step. The next step,

have a comprehensive list of needs is to prioritise them. It can create a set of goals

from the prioritised list, which can be easily measured. (Haughey, 2014)

Once it has established a clear set of goals, they should be recorded in the project

plan. It can be useful to also include the needs and expectations of your stakeholders.

This is the most difficult part of the planning process completed. (Haughey, 2014)



Project Deliverables

Using the goals it should create a list of things the project needs to deliver in order to

meet those goals. It should specify when and how each item must be delivered.

Add the deliverables to the project plan with an estimated delivery date. More

accurate delivery dates will be established during the scheduling phase. (Haughey,

2014)

Project Schedule

Project schedule is a list of tasks that need to be carried out for each deliverable which

is identified above. It will identify the following for each task: (Haughey, 2014)

The amount of effort (hours or days) required to complete the task.

The resource that will carry out the task.

Once it has established the amount of effort for each task, it can work out the effort

required for each deliverable, and an accurate delivery date.

A common problem is when a project has an imposed delivery deadline from the

sponsor that is not realistic based on your estimates. The options it has in this situation

are:

Renegotiate the deadline (project delay).

Employ additional resources (increased cost).

Reduce the scope of the project (less delivered).

Use the project schedule to justify pursuing one of these options.

Supporting Plans

This section deals with plans that should create as part of the planning process. These

can be included directly in the plan. (Haughey, 2014)

Human Resource Plan

Communications Plan

Risk Management Plan

Finally it should remember to update the plan as the project progresses, and measure

progress against the plan.



Methods Employed to Project Scheduling

The project schedule is the tool that communicates

What work needs to be performed

Which resources of the organization will perform the work

The timeframes in which that work needs to be performed. (Anon, 2014)

All of the work associated with delivering the project on time will be reflected by

project schedule. The project manager will be unable to communicate the complete

effort, in terms of cost and resources, necessary to deliver the project without a full

and complete schedule. (Anon, 2014)

Scheduling can be done by:

Critical Path Method (CPM)

Gantt chart

Work Breakdown Structure



Methods Employed to Manage the Supply and Utilization of Resources for the

Project

A project is a temporary group activity designed to produce a unique product or

service. And it has a defined beginning and end in time, and therefore defined scope

and resources. A project is unique in that it is not a routine operation, but a specific

set of operations designed to accomplish a singular goal. (Anon, 2014)

Therefore a project must be expertly managed to deliver the on-time, on-budget

results, learning and integration that organizations need. (Anon, 2014)

Project management is the application of:

Knowledge

Skills

Techniques

To execute projects effectively and efficiently. It’s a strategic competency for

organizations, enabling them to tie project results to business goals and better

compete in their markets. (Anon, 2014)

Project management processes fall into five groups:

Initiating

Planning

Executing

Monitoring and Controlling

Closing

While project management skills are obviously important for a project,

interestingly the methods and tools can be helpful for everyone.



Project management process

Agree precise specification for the project

o Terms of Reference

Plan the project

o Time, team, activities, resources, financials

Using suitable project management tools.

Communicate the project plan to your project team

o To any other interested people and groups.

Agree and delegate project actions.

Manage and motivate

o Inform, encourage, and enable the project team.

Check, measure, monitor, review project progress

o Adjust project plans, and inform the project team and others.

Complete project

o Review and report on project performance; give praise and thanks to

the project team.

Project follow-up

o Train, support, measure and report results and benefits.



Project management knowledge draws on ten areas:

Integration

Scope

Time

Cost

Quality

Procurement

Human Resources

Communication

Risk Management

Stakeholder Management

All management is concerned with these. But project management brings a

unique focus shaped by the goals, resources and schedule of each project. (Anon,

2014)



Managing the Supply and Utilization of Resources

A successful Project Management must effectively manage the resources assigned to

the project. This includes the labour hours of the designers, the builders, the testers

and the inspectors on the project team. (Reh, 2014)

The managing project resources frequently involves more than people management.

The project manager must also manage the equipment used for the project and the

material needed by the people and equipment assigned to the project. (Reh, 2014)

It regards three major subjects:

People

Materials

Equipment

Managing People

It knows that suppliers want to take action to improve working standards and

minimise their impact on the environment. Therefore a management system is needed

which is the set of:

Interdependent policies

Processes

Procedures

That a company uses to achieve its business objectives which include social

responsibility.

This approach is to present an integrated method that helps suppliers balance social

responsibility objectives with those of running a successful business.

To be successful in this approach it:

Describe the possible unintended ‘social’ outcomes of policies and procedures

that are meant to achieve business objectives;

Identify operational controls to manage or avoid these unwanted outcomes;

and

Show how to monitor and measure the effectiveness of your controls to ensure

you meet standards.



This section will help to check whether there is a risk of not maintaining essential

management system elements in the current business operations, and if so, how to put

controls in place to make sure to meet standards.

Benefits

Building social responsibility into the business management system will help you stay

within the law, avoid penalties and meet the customers’ requirements.

A well designed management system approach also has business benefits such as:

Improving your company’s image and reputation.

Achieving both your business and social responsibility objectives.

Improved labour relations.

Less time spent on audits.

Cost savings through improvements in system efficiency.



Managing Materials

Managing material is an approach for planning, organizing, and controlling all those activities

principally concerned with the flow of materials into a project. (Anon, 2014)

The scope of Materials Management differs greatly from company to company and

may include: (Anon, 2014)

Material planning and control

Production planning

Purchasing

Inventory control

In-plant materials movement

Waste management

It is a business function for:

Planning

Purchasing

Moving

Storing material in an optimum way which help organisation to minimise the

various costs like inventory, purchasing, material handling and distribution

costs. (Anon, 2014)

The fundamental objectives of the Materials Management function, often called the

famous 5-R’s of Materials Management which are acquisition of materials and

services:

Of the Right quality

In the Right quantity

At the Right time

From the Right source

At the Right price (Anon, 2014)



The Key Objectives for Material Management

To buy at the lowest price , consistent with desired quality and service

To maintain a high inventory turnover , by reducing excess storage , carrying

costs and inventory losses occurring due to deteriorations , obsolescence and

pilferage

To maintain continuity of supply , preventing interruption of the flow of

materials and services to users

To maintain the specified material quality level and a consistency of quality

which permits efficient and effective operation

To develop reliable alternate sources of supply to promote a competitive

atmosphere in performance and pricing

To minimize the overall cost of acquisition by improving the efficiency of

operations and procedures

To hire, develop, motivate and train personnel and to provide a reservoir of

talent

To develop and maintain good supplier relationships in order to create a

supplier attitude and desire furnish the organisation with new ideas , products,

and better prices and service

To achieve a high degree of cooperation and coordination with user

departments

To maintain good records and controls that provide an audit trail and ensure

efficiency and honesty

To participate in Make or Buy decisions (Anon, 2014)



Materials Management's scope:

The scope is vast. Its sub functions include Materials planning and control,

Purchasing, Stores and Inventory Management besides others. (Anon, 2014)

Basically, under its scope are:

Emphasis on the acquisition aspect

Inventory control and stores management

Material logistics, movement control and handling aspect

Purchasing, supply, transportation, materials handling etc.

Supply management or logistics management

All the interrelated activities concerned with materials (Anon, 2014)

Managing Equipment

Equipment Management is responsible for procedures related to the management and

control of all inventorial equipment under the care and custody of the person.

The equipment has to manage as part of your project depends on the nature of the

project. A project to construction project would need earth moving equipment, cranes,

and cement trucks. The project management key for equipment is much like for

people resources. It has to make sure it has the right equipment in the right place at

the right time and that it has the supplies it needs to operate properly.



17.0 Task P

Quality Standards and Statutory Compliance

Quality Standard

Quality Standards were developed to assist companies control quality and maintain a

high standard of customer satisfaction. Quality has become a lot more than that,

quality standards can assist a company with good management practices, reduce risk

and increase profit margins. (Anon, 2014)

A good quality system should not be written just to satisfy the accreditation process,

but should be written with the company's business practices in mind and to enhance

procedures and policies to ensure sound operation. (Anon, 2014)

Having a good quality system in place will ensure that the products, services are of

the highest standards and the customers are happy and the future of the organisation is

heading in the right direction. (Anon, 2014)

How Do a Company or Project Use Standards

Each company has different requirements and each has its own reasons for following

the Quality System and the goal of a company or project is to: (Anon, 2014)

Improve quality

Reduce risk

Measure effectiveness

Increase productivity

Increase profit margins.



Quality Management System

Implementing a Quality Management System (QMS) is not that difficult, the key is

planning and commitment. How complex or simple the QMS is depends entirely on

the organisation and what the objectives are. It can be simply a guide to the

company's policies and procedures or it can document every task and procedure. It

really depends on how much risk is involved and how much control is required.

(Anon, 2014)



Statutory Compliance

Statutory means laws or regulations. Compliance means to comply with or adhere to.

So statutory compliance means following the laws on a given issue. (Anon, 2014)

The term is most often used with organizations which must follow lots of regulations.

When they forget or refuse to follow some of those regulations, they are out of

statutory compliance. A company that follows all the rules is in statutory compliance.

(Anon, 2014)

Organizations can spend a significant amount of time ensuring that they are compliant

with all provisions, with no guarantee of full compliance. These include the following

regulations:

Building Act. 1984

Sustainable and Secure Building Act. 2004

Health and Safety at Work etc. Act. 1974

The Construction (Design and Management) Regulation 2007

And etc…

Its strong focus on Statutory Management and Statutory Compliance in Construction

has caused to develop a highly sophisticated designed to manage large scale and

diverse requirements of the clients. (Anon, 2014)



18.0 Task Q

Other Aspects of Communication and Liaison Activity that Need to Be

Organised and Managed in a Project

Aspects of Communication

There are several aspects of communication. A communication can be;

Verbal communication which requires language. A language is a system of

arbitrary signals, such as

o voice sounds

o gestures or written symbols

Which communicate thoughts or feelings

Non-verbal communication, which does not need language to exchange ones

thoughts. Silent communication shows more emotion than verbal. Non-verbal

communication includes;

o Gestures

o body language

o signs

o Symbols and etc…

There are several factors which slow down human communication.

Language is not understandable

Context is not understandable

Obfuscations (Confusing message or unclear message)

Distraction



Liaison Activity

Liaison means a contact or connection maintained by communications between units

of the armed forces or of any other organization in order to ensure concerted action,

cooperation, etc.

This work is performed by a person named Liaison Officer and he often work in the

housing, regeneration, construction and social housing sectors and work as a liaison

work to ensure that the local community are fully aware of any work going on. He

may also be responsible for the health and safety, site access and more technical

aspects.

This activity is considering several responsibilities, such as;

Establish an effective communications system to keep the site team informed

and maintain good relationships with the tenants and construction team.

Carry out door-to-door home visits with local residents who may be involved

in regeneration activity

Providing an overview of current and proposed regeneration projects

Working to establish accommodation needs and review future housing

requirements

Dealing with people issues in a positive manner and ensure tenant satisfaction

is achieved

Coordinating work, questionnaires, providing works information, dealing with

queries, responding to complaints and resolving concerns

Report to Resident Engineer.

Initiate / generate technical instructions, site notes and other site observations.

Liaise with other disciplines for co-ordination issues.

Assist in preparation of weekly and monthly reports.

This will be useful to organise and manage any project successfully.



19.0 Task R

Procurement Methods

Procurement means purchasing goods or services

The procurement of construction project is vast in scope because it involves the

gathering and organizing of crowds of separate individuals or firms or companies to

design, manage and build construction products. Project procurement is very much

concerned with the organized methods or process and procedure of obtaining or

acquiring a construction product. (Rashid et al., 2006)

There are several types of procurement methods used in construction industry. These

procurement types used for: (Rashid et al., 2006)

Speedier project delivery

Better project outcomes

The procurement systems have brought changes to:

Process and procedure of project delivery

The aspects of management and organization (Rashid et al., 2006)

Types of Procurement

There are main three types of procurement used in:

1. Separated and Corporate System

2. Integrated System

3. Management Oriented System



Separated and Corporate System

In this system the responsibilities of Designing and Building is separated. The both

actions are carried out by separate organisation. These organisations commonly

named as designers (or consultants) and contractors (or builders). (Rashid et al., 2006)

This procurement method divides into two categories:

Traditional Method

Variant to Traditional Method

Traditional Method

It is a system where the project development activities that start from feasibility study,

preliminary design, documentation to construction and hand over and they are carried

out sequentially one after another. The complete working drawings or design has to be

prepared by the designers before tender and construction activities can take place and

hand over it to contractor. (Rashid et al., 2006)

Below diagram will show the process of traditional procurement method clearly;



Variant to Traditional Method

This method divides into two more sub categories:

1. Sequential Method

2. Accelerated Method

Sequential Method

It is a single stage approach. In it client will appoint a consultant team to act on his

behalf to:

Produce construction drawings and specification

Tender document

Administer the tendering processes to select a contractor

Once it has selected a contractor and awarded the contract, the contractor will carry

out based on the drawings and specification prepared by the client’s consultants.

(Rashid et al., 2006)

Accelerated Method

A method can be considered as an innovative approach to speed up the selection of

contractor and the commencement of construction is the accelerated method.

This method can be divided into 2 sub-categories

Two-stage methods

Negotiated tendering methods

Both methods involve preliminary discussion with selected few contractors, submission of

fixed tender or cost negotiation.



Integrated System

As the name implies it is integrated or combined of the responsibilities of design and

construction of the project. This system divides into two categories: (Rashid et al.,

2006)

Design and Build

Variant to Design and Build

Design and Build

In this method both responsibilities are contracted out to a single contracting

organisation. It is also called a parallel or single responsibility procurement system

whereby the client will only need to deal with a single organisation for both the

designing and constructing the proposed project. In this case, the contractor will have

to engage and be responsible for design and construction teams. (Rashid et al., 2006)

The following diagram will show process of the design and build procurement

method;



Variant to Design and Build

This system has three sub categories:

Package Deal

Turnkey

Develop and Construct

Package Deal

It is a contracting type of procurement method where a contractor is given the

responsibility for everything that is required and necessary for the design,

construction and delivery of the project. He will appoint package deal contractor for

building services. (Rashid et al., 2006)

Under this system, the services of the contractor will include the preparation of

Project brief

Sketch and final working drawings

Getting all the approval from authorities

Project financing

Construction

Furnishing and commissioning of all equipment and accessories

Handing over the project to the client.

The following diagram will show process of the package deal procurement method;

Client Design and Build

Contractor

Design

Construction

Package Contractor 01

Package Contractor 02



Turnkey

Under this method a contractor is commissioned to undertake the responsibilities for

everything necessary and required for

The construction

Completion

Commissioning

Hand over the project.

The word “turnkey” means that the contractor will give the key of completed project

and the client can then enter the project by “turning the key”. (Rashid et al., 2006)

In this method the contractor will have to do everything from

Preparing project brief

Getting approval

Designing

Financing

Construction

Furnishing and decorating to commissioning

Handing over completed, cleaned and ready for use project

Develop and Construct

It is another method of integrated procurement approach which is very much similar

to design and build. In this case, the contractor is given the responsibility for both the

design and construction of the project. (Rashid et al., 2006)

The difference is, under this method the client’s design consultants prepare the

concept sketches or designs and passed them to the contractor who will develop them

and produced the detailed working drawings, construct and complete the project based

on what it has developed and produced to client. (Rashid et al., 2006)



Management Oriented System

Under this system the management of the design and construction a project is

contracted out to a contractor who will act as a management consultant on behalf of

the client. (Rashid et al., 2006)

There are three types of procurement method that fall under the category of

Management Oriented Procurement Systems, they are:

1. Management contracting

2. Construction management

3. Design and manage

Management Contracting and Construction Management

These two methods are forms of fast-tracking procurement approach whereby a

contractor is contracted and paid a fee to manage, procure and supervise the

construction of a project rather than to build the project. (Rashid et al., 2006)

The actual construction works are contracted out to many package or specialist

contractors.

Under this arrangement the management contractor is employed as a construction

consultant to be part of the client’s team.

The main difference between Contract Management and Construction Management

contracting is that in the former, the package contractors are in contract with the

management contractor. In the latter, the package contractors (specialist sub-

contractors) are in contract with the client or building owner. (Rashid et al., 2006)



The following diagram will show process of the management contracting procurement

method;

The following diagram will show process of the construction management

procurement method;

Client Management

Contractor

Design Consultant

Specialist Package Contractor 01

Specialist Package Contractor 02

Client

Design Consultant

Construction Management Contractor

Specialist Sub Contractor 01





Design and Management

In this method a single organization or firm is commissioned to be responsible for

designing the project and managing its construction. The firm is does carry out the

work itself, but it is contracted out to a number of specialist sub-contractors or

package contractors, who enter into contract with the client. A design and manage

firm or company is engaged as a consultant for the client and become a member of the

project team. (Rashid et al., 2006)

The following diagram will show process of the design and manage procurement

method;

Client

Design and Manage Contractor

Construction and Package Sub Contractors



Management Structures

When a new employee joins a company one of the first things they learn is the

company’s management structure. This includes understanding the working

relationships with their manager, subordinates and peer group. (Bombaci, n.d.)

Choosing the correct management structure ensures an organization’s;

Continued growth

Content employees

Profitable returns for the shareholders. (Bombaci, n.d.)

Choosing the wrong structure creates;

Tensions between employees and managers

Allows inefficient work practices to flourish and reduces company

profitability.

In the worst case an incorrect management structure can lead to company

closure. (Bombaci, n.d.)

Key components of management structures

There are several key components that support a management structure and should be

considered when implementing a new structure. Some of these key components are:

Task definition – How tasks are allocated, who reports to whom and the

formal co-ordinating mechanisms and interaction patterns that will be

followed.

Communication Style – How messages travel throughout an organization.

There are a number of possible alternatives:

o Messages may travel down only from top management

o They may travel both up and down through management layers

o Or they may travel horizontally amongst peers in an operating group.

Formalization – The degree to which jobs and procedures within the

organization are standardized using defined rules covering decision making,

communication and management control. The rules may be objective such as



through written descriptions or they may be subjective using informal

controls.

Type of Influence – This relates to the influencing techniques used by

management to direct and motivate staff to achieve the desired goal.

Authority-based influence is based on managers using their position within a

hierarchical management structure to issue orders and give direction.

Expertise-based influence is based on managers using their knowledge and/or

expertise to direct and influence subordinates to carry out a task in a particular

way.

Centralization – The degree to which decision making is concentrated either in

a single point in the organization, such as top management, or whether

employees are empowered to make decisions

Complexity – This relates to the degree to which jobs are formally defined

with specific, well-defined tasks. There are three types of complexity:

o Horizontal differentiation is the degree of differentiation among units

based on the orientation of members, the nature of the tasks they

perform and their education and training.

o Vertical differentiation is the number of hierarchical levels between

top management and employees.

o Spatial differentiation is the degree to which the organization’s

facilities and personnel are dispersed geographically.

Co-ordination – This is the process of integrating the objective and activities

of the separate units of an organization in order to achieve organizational goals

and efficiency. (Bombaci, n.d.)



Types of management structure

There are two types of management structure in use today, each with its advantages

and disadvantages.

The Mechanistic Structure

Organic Management Structure

The Mechanistic Structure

The mechanistic structure which is characterized by the following:

Rigid task definition

Vertical communication

High degrees of formalization

Authority-based influence

Centralized control

Complex differentiation

High degree of co-ordination

Line and line and employee management structures are two characteristics of

mechanistic structures. (Bombaci, n.d.)

Advantages of Mechanistic Structure

Mechanistic management structures are used in environments where there is

high complexity in the tasks undertaken by the organization.

Each employee specializes in a particular task and makes only a small

contribution to the company’s final output.

Emphasis is placed on improving technical processes and senior managers

decide how work will be accomplished. (Bombaci, n.d.)

Disadvantages of Mechanistic Structure

The mechanistic management structure is very rigid and slow to adapt to

changing environmental conditions.

The structure is also not suited to turbulent or highly competitive market

conditions such as those found in the telecommunications industries.

In addition it should not be used when the majority of the staffs are highly

skilled professionals, such as in an international auditing firm. (Bombaci, n.d.)



Organic Management Structure

The organic management structure which is characterized by the following:

Flexible task definition

Lateral communication

Low degrees of formalization

Expertise-based influence

Decentralized control

Simple differentiation

Low degree of co-ordination

Matrix and divisional management structures are considered to have many of the

characteristics of an organic management structure. (Bombaci, n.d.)

Advantages of Organic Management Structure

Organic management structures are useful when the environment in which an

organization operates is highly uncertain, unstable or subject to vary rapid

changes in market conditions.

It is also used in situations where personnel are empowered to make decisions

and resolve problems, such as in professional consulting firms.

Communication is used to provide information and advice rather than giving

instructions. (Bombaci, n.d.)

Disadvantages of Organic Management Structure

This type of management structure does not work well if the tasks are very large and

complex and require significant integration of resources and personnel to accomplish

strategic goals. (Bombaci, n.d.)



Tendering Methods

Tendering is the process of making an offer, bid or proposal, or expressing interest in

response to an invitation or request for tender. Organisations will seek other

businesses to respond to a particular need, such as the supply of goods and services,

and will select an offer or tender that meets their needs and provides the best value for

money. (Anon, 2014)

There are three types of tendering methods used in construction industry:

Open Tendering

Selective Tendering

Negotiated Tendering



Open Tendering

Open tender is an arrangement where an advertisement in local newspapers or trade

journals invites contractors to apply for tender documents. There is a deposit usually

required to ensure that only serious offers are made and most probably it is needed to

cover the cost of copying the documents. (Duck, 2014)

Advantages of Open Tender

The main advantage of such tendering is as follow: (Duck, 2014)

Give high level of competition and contractors tend to give best prices as

compare to other tendering method

There is no list of restrictive tenderer, which does not allow favoritism

It is very transparent process which ensures that only the contractor with the

best price and meeting all the technical requirements will win the tender.

This process is usually manage by procurement board where its staff are

trained for such exercises and board ensure that all the procedures involved in

tender are followed

Disadvantages of Open Tender

The low price usually detriment of quality and often result in the client

obtaining poor quality job and late completion of work.

Given that its open tender and thus there are no restrictions on the number of

contractor who can bid and become bulky and lengthy job for tender analyses

which often result in delays and high cost. (Duck, 2014)



Selective Tendering

Selective tendering consists of drawing up a list of chosen firms and asking them to

tender. It is by far the most common arrangement because it allows price to be the

deciding criterion; all other selection factors will have been dealt with at the pre-

qualification stage. There are three ways in which selective tendering lists are drawn

up: (Duck, 2014)

An advertisement may produce several interested contractors and suitable

Firms are selected to tender.

The consultants may contact those they would wish to put on an ad-hoc list.

Many local authorities and national bodies keep approved lists of contractors

in certain categories (Duck, 2014)

Negotiated Tender

Under this method normally one contractor is approached and such tender mainly

used for specialist work, in such case there are limited number of contractor who do

such work in the market. It is based on one-to-one discussion with contractors to

negotiated the terms of contract (Duck, 2014)



20.0 Task S

Contract Constitutes

Disagreement over the validity of contracts can land all parties in a court room. The

basics of a legal contract are quite simple and there must be agreement and there must

be something of value exchanged. It's the analysis of these two elements that causes

the problems, include: (Burke, 2014)

Agreement

Value Exchanged

Agreement Element

The first of two requirements that identify a legal contract is agreement. Both parties

must be in agreement over the major issues outlined in the contract. This means one

party has made an offer and the other party has accepted it. Agreements that violate

laws are not valid contracts. Both parties must be of sound mind when making the

agreement. (Burke, 2014)

Value Exchanged Element

The second element of a valid contract is the exchange of something of value or the

agreement to exchange something of value. The most basic exchange is that of cash

for a service or product.

E-Bay and other auction sites are a great example of exchanging value. The winning

bidder agrees to exchange cash for the item being presented. The owner of the item

agrees that they will give the winning bidder the item when they receive the cash. The

bidding is initiated by this promise of exchange. (Burke, 2014)



The Rights and Obligations of the Main Parties in Relation to Performance

(Time, Cost and Quality)

The rights and obligations of parties under an international contract depend on which

law governs their agreement. (Anon, 2014)

An agreement between parties is binding in law. Furthermore the rights and

obligations of the parties under a contract may be enforced by the courts. The courts

may compel performance of contractual obligations by the party in default or, more

commonly, may award damages for breach of contract. (Anon, 2014)

For a contract to be formed four basic elements must be present;

Offer

Acceptance

Consideration

The intention to create legal relations

Generally much negotiation takes place between the parties before an agreement

becomes binding and a contract is formed. It is important therefore to recognise the

precise moment when a contract is formed as this is when the parties assume

contractual obligations and the consequent risk of liability if the terms of the contract

are breached.

Type of Business Agreement

There are three types of business agreement

Express term

Implied term

Exemption clauses.



Express Term

Express terms are terms that have been specifically mentioned and agreed by both

parties at the time the contract is made. They can either be oral or in writing. (Anon,

2014)

Obstacles of express term

Each time it discusses a product or service with a customer and become

responsible for providing and agreeing specific information.

For services this may include a time when the service will take place and a

price for the complete service

For a product this may include the price and product availability these are

known as the express terms. (Anon, 2014)

Exemption Clauses

It is a particular type of express term which taking two basic forms;

Clauses which exclude liability for the breach of a particular term or terms.

This effectively negates any obligation to perform those terms. These may be

called exclusion clauses.

Clauses which do not affect the obligation to perform, but which limit the

remedies available for a breach. These may be called limitation clauses.

Implied Terms

The implied terms describe a basic level of trust between the vendor and the

customer. The law provides that, in every transaction for the sale and supply of goods,

certain terms are implied. The person selling the goods must have the right to do so,

and the goods must:

Correspond with the description

Be of satisfactory quality

Appearance and finish

Freedom from minor defects

Safety

Durability

Be fit to purpose (Anon, 2014)



Stages of Contracts

The stages of a construction contract depend upon a step-by-step description of the

expectations toward completion. Certain aspects of the construction process cannot be

undertaken or completed until other aspects have begun or ended. From conceptual to

the realistic situations, a project passes through several stages completely distinct

from each other and each stage has its own purposes and functions. (Shrivastava,

2008)

Pre Tender Project Reporting Stage

Project Planning Stage

Tender Project Tendering Stage

Post Tender Project Construction Stage

Project Commissioning Stage

Project Reporting Stage

It is also called briefing stage where ideas of the project are originated by individual

or group of individuals or public sector or private sector company.

The purpose of this stage is to study the conceptual ideas of a project and prepare a

reporting or briefing by specifying project functions, Architects, engineers and other

members of a construction team correctly interprets the owner’s wishes and provide

an estimated cost. (Shrivastava, 2008)

Function of Project Reporting Stage

Set Objectives of a Project

Technical and Non-technical investigation

Development of Alternative Solutions

Evaluation and Comparison of Alternatives

Selection of the most feasible alternative

Prepare the detailed project report



Project Planning Stage

This is very important stage when a realistic and detailed cost estimate of the chosen

project made. Any modifications later on will result in adding to the project cost.

The purpose of this stage is to prepare project summary, to prepare detailed drawings

and specifications, to make detailed structural design and finally to get the detailed

estimated cost of the project. Types of construction and methodology for network

technique are worked out. (Shrivastava, 2008)

Function of Project Planning Stage

Project Tendering Stage

In this stage tender are invited and the contract is awarded to the contractor.

The purpose of this stage is to award a contract to the contractor selected for the

purpose on suitable terms and conditions ensure requisite and appropriate quality, cost

and completion time. (Shrivastava, 2008)

Finalize Project Summary

Carry out Technical investigation

Preparation of Plans and Specification

Detailed design and Preparations of working Drawing

Detailed cost estimate of thr Project

Construction Methodology, schedule using network tech.



Function of Project Tendering Stage

Project Construction Stage

During this stage, actual work is executed as per plans and specifications prepared

earlier. The construction methodology is carried out in a planned manner preventing

wastage of manpower, material and money and ensures completion of the project

within stipulated time, cost and quality. (Shrivastava, 2008)

Function of Project Construction Stage

The various activities of this stage can be summaries as follow,

1. Following construction schedules or calendars are prepared where requirement

of each with exact data is clearly demarcated. This facilitates the work of

construction management along with controlling and monitoring,

a. activity schedule

b. material schedule

c. worker schedule

d. fund schedule

e. equipment schedule

2. Provision of services and facilities must be provided before starting the

construction work.

3. Typical layout of plant and service camp should be incorporated.

Preparation of tender document and obtaining tenders

Comparative statement of tenders

Ascertaining resources capacity, work experience and

reliability of the contractors

Award of the contract to the selected contractor and contract document

Work order and possession of site to the contractor



4. Supervision of construction work within the contract agreement and ensuring

the quality of work and checking of work as per plans and specifications is

made.

5. Coordination of sub-contractors and various sections is done.

6. Inspection, quality control and progress of work are the main function of this

stage.

7. If there is any problem during the construction, it must be sorted out amicably.

Final checking of the complete work is made and final payment is made to the

contractor. (Shrivastava, 2008)

Project Commissioning Stage

In this stage which the performance of the work structure is evaluated and nature of

maintenance and repair is proposed.

The purpose of this stage is to ensure that the construction work has been completed

as specified in the contract documents. If any changes have been made because of

some reasons, they must be recorded for technical performance and financial

implications. (Shrivastava, 2008)

Function of Project Commissioning Stage

Various functions involves in this stage are:

1. To keep various records of the actual work

2. To have quality inspection thoroughly to remove the defects if found.

3. To prepare operating and maintaining manuals

4. To carry out the performance test of the structure

To have training and recruitment of staff for commissioning schedule (Shrivastava,

2008)



21.0 Conclusion

In this Management Principle assignment is has mentioned several tasks regarding

management principles and its application for construction and built environment

sector and it is mentioned about the definition of management and the process of

management. Process of management is shows about the Forecasting, Planning,

Organizing, Motivation, Controlling, Coordination and the Communications.

In construction sector team work is very important, in this report it is talked about

mean of leadership, concept of team work and leadership styles used in modern

management and discussed about the Motivation needs of individual and groups in the

construction and built environment.

Construction is a process of a business therefore it is involved in market and

marketing activities. In this project it is talked about the main markets, activities and

services provide by the construction and build environment.

Construction industry has three stages and in it there are each and every stage

employed with different professionals. In this project it is discussed about the roles of

different professionals with in design, construction and installation team and also the

Main cycle of work activities.

In this project it explained using diagrams, explained the organization structure,

which incorporates direct line, Lateral, Functional, Centralized and Decentralized

organization structures. Next explain about the Span of control, chain of command

and job design in relation to above organization structures.

Next it is explained the purpose of mission and vision statement, strategy, corporate

planning, policy and objective of an organization in construction and build

environment sector.

It is also explained about how to influence of the scale and size of a project can affect

the way a construction business organized and managed.



Construction project or any other project based on cost because it is lead to project

profit therefore it is explained about actual cost and estimated cost and different

between each other, explained the application of cost planning, cost control, cash flow

and monitoring of construction and installation of work.

Every business need sharing best practices and in this project it is evaluated about

concept of sharing best practice and how it can be used to Bench Marking for the

organization.

Nowadays commonly talked topic in construction industry is sustainable construction

therefore it is talked about the sustainable construction and environment Management

and the conservation issues impact on the organization and operation of a project.

Organizing a site layout, resourcing and accommodation is important therefore in this

project explained that the how to technique used to organized the layout, resourcing

and accommodation contribute to the management of a project.

It is also described with an examples described about the type of method of work,

monitoring and progress control that used this project and explained it using Gantt

chart and prescience diagrams.

It is also explained the examples described the methods employed to plan, schedule

and manage the supply and utilization of resources for above project.

Quality Standards and statutory compliance can be achieved for every construction

projects because it will help to avoid legal issues. In this assignment it is explained

shortly.

Communication is an important component to a construction project in regard of

connecting construction teams and individuals. Therefore it is described the aspect of

communication and liaison activity that need to be organized and managed in a

project.

Procurement is only used in construction industry to getting together of different

personal for specific one project. Though it is described main type of Procurement



methods and management structure used by client and developers and evaluated

different methods of Tendering as much as possible.

Finally it defined what constitutes a contract and briefly explained the right

obligations of the main parties in relation to performance, (time, cost and quality) and

the stages of contract.

Hope that this project will give some knowledge about these key areas regarding

construction and built environment sector.



22.0 References

Books

Fryer, B. 2004. The Practice of Construction Management. 3rd ed. Wylie TX:

Blackwell.

Drucker, P. 2006. The Principals of Management. Reissue ed. New York: Harper.

Fayol, H. 1984. General and Industrial Management. Revised Sub ed. Washington.

Lee Press.

Shakthivel Murugan, M., 2004. Management Principles and Practices. 1st ed. New

Delhi. New Age International.

Shrivastava, D. U. 2008. Construction Planning and Management. 3rd ed. .Galgotia

Publications Pvt. Ltd.



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2014].

Anon. (2007). What is sustainable construction? / Toward sustainable buildings / Our

commitment to sustainability / Home - Isover. [online] Isover.com. Available at:

http://www.isover.com/Our-commitment-to-sustainability/Toward-sustainable-

buildings/What-is-sustainable-construction [Accessed 10 Oct. 2014].

Sirimanna, B. (2007). Sri Lanka urged to promote sustainable construction. [online] Financial Times- Sunday Times. Available at: http://www.sundaytimes.lk/070909/FinancialTimes/ft326.html [Accessed 10 Oct.

2014].



Blog

Anon, (2010). [Blog] Accounting Management. Available at: http://accountlearning.blogspot.com/2010/11/distinction-between-standard-cost-and.html [Accessed 9 Oct. 2014].



Lecture Notes

Madubashini, H., 2014. Management Principles, Management Principles. ICBT,

unpublished.



Figure References

construction management

Documents