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- Herausgeber: John Wiley & Sons
- Kategorie: Wissenschaft und neue Technologien
- Sprache: Englisch
While the construction process still requires traditional skills, the dynamic nature of construction demands of its managers improved understanding of modern business, production and contractual practices. This well established, core undergraduate textbook reflects current best practice in the management of construction projects, with particular emphasis given to supply chains and networks, value and risk management, BIM, ICT, project arrangements, corporate social responsibility, training, health and welfare and environmental sustainability.
The overall themes for the Eighth Edition Modern Construction Management are:
- Drivers for efficiency: lean construction underpinning production management and off-site production methods.
- Sustainability: reflecting the transition to a low carbon economy.
- Corporate Social Responsibility: embracing health & safety and employment issues.
- Modern contractual systems driving effective procurement
- Building Information Modelling directed towards the improvement of collaboration in construction management systems
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Veröffentlichungsjahr: 2020
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
About the authors
Preface to the eighth edition
Companion website
Chapter 1: Introduction
Structure of the book
Objectives and contents
Chapter 2: Quality management
Summary
Introduction
Notions of quality
Quality in transition
Quality control and inspection
Quality assurance
Total quality management
A systems approach to managing quality
Further Reading
Section 1:
Project production management
Chapter 3: Production process improvement
Summary
Introduction to lean construction
Energy
Productivity
Economic development
International environmental protocols
UK emissions
Productivity improvement
Management systems
Management processes (see BS 6079)
Employee participation
Macro key performance indicators
Further Reading
Chapter 4: Planning techniques and methods
Summary
Introduction
Planning in construction
Who plans?
Planning the design process
Planning for waste management
Planning for safety, health, and the environment (SHE)
Planning techniques
Other planning techniques
Modern construction planning
Monitoring progress and managing the time model
Construction planning and scheduling with 4D CAD and BIM
Planning multiple projects
Appendix 4.A. Normal Probability Distribution Tables (Table 4.3)
Further Reading
Chapter 5: Workforce motivation
Summary
Introduction
Motivation theories
Payment systems, remuneration and performance
Further Reading
Chapter 6: Project cost control
Summary
Why cost-control is essential for construction projects
A cost-control procedure for construction works
Points to consider when choosing a cost-control system
Management of the carbon footprint
Further Reading
Chapter 7: Management of equipment
Summary
Acquisition of plant and equipment
The financing of equipment
Systematic plant selection
The essential characteristics of a decision situation
Setting hire rates
Marginal costing
Plant maintenance
Monitoring of maintenance servicing and exhaust emissions
Human-centred approaches
Further Reading
Section 2:
Business management
Chapter 8: Project procurement
Summary
Introduction
The construction process (BS 6079-1:2002)
ISO/BS procurement standards
Appointing the team/parties to the contract
Public contracts and supplies
Project manager/leader
The contract
Health and safety considerations
Categories of contract
Separated and cooperative contracts
Management-oriented contracts
Integrated contracts
Discretionary contracts
Performance of different contract categories
Client risk exposure for different contract categories
Further Reading
Chapter 9: Estimating and tendering
Summary
Introduction
Parties involved in estimating and tendering
The estimating process
BOQ estimating
Collection and calculation of cost information
Project study
Preparing the estimate
Submitting the tender
Estimating in management contracting
Design and build
Cost planning
Cost management
Whole-life costing
Private finance initiative (PFI)
Computer aided estimating
BIM and estimating
Summary
Future Reading
Chapter 10: Competitive bidding
Summary
Introduction
Part 1: A brief review of bidding strategy
Part 2: The importance of accuracy in estimating
Part 3: Some ways of using the existing theories
Recent developments in bidding
Client evaluation of bids
Further Reading
Chapter 11: Company budgetary control
Summary
Introduction
Preparation of budgets
The carbon footprint
Further Reading
Chapter 12: Cash flow and interim valuations
Summary
Introduction
The need for cash flow forecasting by contractors
The requirements of a forecasting system
Capital lock-up
The factors that affect capital lock-up
Interim valuations and cash flow
Measurement of work in activities
Computers and cash flow
Cash flow forecast by standardised models
Closing remarks
Further Reading
Chapter 13: Economic assessments
Summary
Introduction
Interest
Economic comparisons
Profitability measures
Inflation
Accuracy of future estimates
Financial modelling
Cost-benefit analysis
Some worked examples
Appendix 13.A Tabulations of Interest and Time Relationships
Further Reading
Section 3:
Administration and company management
Chapter 14: Company organisation
Summary
Introduction
The function of a manager
Company organisational structures
Departments/functions
Health, safety, occupational welfare and pensions
Educational qualifications and vocational training
Corporate social responsibility
Management attitude
Construction companies in an internet age
Virtual companies
Collaborative working
Further Reading
Chapter 15: Market planning and business development
Summary
Introduction
Market planning
The business-development process
Chapter 16: International construction logistics and risks
Summary
Introduction
The international environment
Further Reading
Chapter 17: Towards BIM and digital construction
Summary
Introduction
Information and information management
The construction company's business
Processes involved in a construction business
Information needs to support business processes
Management of contractors' information resources
Construction information systems
The construction information manager
The emergence of BIM
BIM standards
Digital construction
Further Reading
Chapter 18: Financial management
Summary
Introduction
Types of businesses
Types of capital
The control of capital
The company accounts
Regulatory authorities
Further Reading
Section 4:
Self-learning exercises
Chapter 19: Questions – construction management
1
Questions
Note
Chapter 20: Questions – operational research (OR)
Summary
Questions
Chapter 21: Questions – six sigma
*
Six sigma
Problems (readers should start with Problem 1)
Problem 1 One-tail left test
Problem 2 Two-tail t-test
Problem 3 Paired samples one-tail right t-test
Problem 4 Two-sample two-tail Z test
Problem 5 Two sample one-tail t-test
Problem 6 F test
Problem 7 Binomial distribution
Problem 8 Two-sample two-tail proportion test
Problem 9 Poisson distribution – probability of success
Problem 10 Chi squared goodness-of-fit test
Problem 11 Correlation analysis
Problem 12 Linear univariate regression analysis
Problem 13 Time series
Problem 14 One-way ANOVA
Problem 15 Two-way ANOVA (two factors)
Problem 16 Two-way ANOVA (interaction of the variables)
Problem 17 Bayes' theorem or law
Further Reading
Bibliography
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
Abbreviations and acronyms
Index
End User License Agreement
List of Tables
Chapter 2
Table 2.1 Role of QA in the TQM process.
Table 2.2 The key elements for a quality system in a building contracting fir...
Table 2.3 Key elements to achieve a total quality company within construction...
Chapter 3
Table 3.1 International and UK environmental agreements.
Table 3.2 National reports on construction industry productivity.
Table 3.3 Stakeholder levels.
Table 3.4 Method study questioning technique.
Chapter 4
Table 4.1 The calculations for a line-of-balance schedule.
Table 4.2 Expected duration (weeks) and variances for activities.
Table 4.3 Cumulative probabilities of the normal probability distribution (ar...
Chapter 5
Table 5.1 Summary of incentive schemes.
Table 5.2 Directly proportional incentive scheme calculation (time allowed = ...
Table 5.3 Geared incentive schemes calculation.
Table 5.4 Geared incentive schemes.
Table 5.5 Audit tool for monitoring organisation-wide motivation levels.
Chapter 6
Table 6.1 Budgeted costs.
Table 6.2 Updated costs at Week 52.
Chapter 7
Table 7.1 Evaluation of crane selection – Crane no. 1.
Table 7.2 Evaluation of crane selection – Crane no. 2.
Table 7.3 Evaluation of crane selection – Crane no. 3.
Table 7.4 Cost comparison of alternative crane purchases.
Table 7.5 Declining-balance depreciation example.
Table 7.6 Sinking-fund depreciation example.
Table 7.7 Sum-of-digits depreciation example.
Table 7.8 Calculating a crane hire rate using DCF method.
Table 7.9 The effect of inflation on the rate calculation.
Table 7.10 Marginal costing.
Chapter 8
Table 8.1 Current approximate proportions of total contracts.
Table 8.2 Performance expectations of procurement methods.
Table 8.3 Procurement selection method.
Chapter 9
Table 9.1 Example of an operational build-up for the plant element for placin...
Table 9.2 Example of a unit rate build-up.
Table 9.3 Supplementary cost calculations in unit rate build-up.
Chapter 10
Table 10.1 Correlation of ‘average of mean standardised bid’ and ‘success rat...
Table 10.2 Winning bids preceded by 2, 3, 4, or 5 decrements in a contractor'...
Table 10.3 Form for conducting preliminary examination of bids.
Chapter 11
Table 11.1 Master budget.
Table 11.2 Administration budget.
Table 11.3 Budgeted sum for overheads and profit.
Table 11.4 Budgeted receipts.
Table 11.5 Table of variances.
Chapter 12
Table 12.1 Effects of different factors on cash flow.
Chapter 13
Table 13.1 Thirty-six combinations of construction time and construction cost...
Table 13.2 Summary of cost-benefit analysis for proposed road scheme.
Table 13.3 DCF example including corporation tax.
Table 13.4 The effect of different trial interest rates.
Table 13.5 DCF example including development grant.
Table 13.6 The effect of different interest rates on PW factors and on the ca...
Table 13.7 Predicted resale values.
Table 13.8 Calculating the optimal replacement age.
Table 13.A.1 Interest tables for 10%.
Table 13.A.2 Interest tables for 15%.
Chapter 17
Table 17.1 Sources of information in construction.
Table 17.2 Contractor's information matrix.
Table 17.3 Potential Benefits of a new system.
Table 17.4 Summary of current UK BIM standards.
Table 17.5 BIM maturity levels.
Chapter 18
Table 18.1 Financing alternatives.
Table 18.2 Company trading position at 31 December.
Table 18.3 Details of trading position.
Table 18.4 Profit and loss statement.
Table 18.5 Tabulated balance sheet at 31 December.
Chapter 19
Table Q5.1 Craneage activity sampling.
Table Q7.1 Activity standard and crashed costs.
Table Q9.1 Activities and resources information.
Table Q10.1 Subcontractor's labour requirements.
Table Q11.1 Resource requirements.
Table Q12.1 Resource requirements.
Table Q13.1 Operations, labour-hours and number of operatives.
Table Q14.1 Labour-hours and team size.
Table Q15.1 Operations, labour-hours, and number of operatives.
Table Q16.1 Activity times based on internal resources of company.
Table Q18.1 Bar diameter and weight.
Table Q18.2 Usage rates for steel-fixers.
Table Q18.3 Binding wire allowance.
Table Q20.1 Plant provided for the placing of concrete.
Table Q21.1 Labour allowances for planking and strutting.
Table Q23.1 Week No. 1: Summary of hours worked.
Table Q25.1 Contract programme.
Table Q25.2 Budget values (£000).
Table Q25.3 Progress at end of Week 37.
Table Q25.4 Actual costs to end of Week 37.
Table Q25.5 Actual costs up to end of Week 37 (£000).
Table Q26.1 Budgeted sum for overheads and profit.
Table Q27.1 Value of activities.
Table Q28.1 Data for cash flow forecasting exercise.
Table Q29.1 Project budget and profit distribution.
Table Q30.1 Budgeted value and profit distribution.
Table Q31.1 Monthly estimated costs for a contract.
Table Q34.1 Cost of alternative schemes.
Table Q36.1 Capital expenditure and net revenue.
Table Q37.1 Projected revenues.
Table Q39.1 Predicted resale values.
Table Q42.1 Cash flows experienced.
Table Q49.1 Specifications of four truck-mounted cranes.
Table Q54.1 Capital structures.
Table Q54.2 Performance levels.
Table Q56.1 Account balances of a construction company.
Table Q58.1 Tabulated balance sheet as at 31 December the previous year.
Table Q59.1 Quantities of excavation work
Chapter 20
Table Q1.1 Proportion of sales.
Table Q8.1 Supply and delivery of fill material.
Table Q9.1 Individual assessments.
Chapter 21
Table 21.1 Summary of parametric statistical tools covered.
List of Illustrations
Chapter 2
Figure 2.1 Aspects of construction quality.
Figure 2.2 Example of an inspection report sheet for undertaking constructio...
Figure 2.3 Deming's 14 points to achieve TQM.
Figure 2.4 Oakland's steps to TQM.
Figure 2.5 A simple cause-and-effect diagram for managing materials-related ...
Figure 2.6 Quality influence and contribution in construction projects.
Figure 2.7 Framework for EFQM Excellence Model.
Figure 2.8 A schema for achieving a quality plan.
Chapter 3
Figure 3.1 World energy, population and GDP projections.
Figure 3.2 Model for continuous improvement in productivity.
Figure 3.3 The value management process.
Figure 3.4 Supervisor delay survey.
Figure 3.5 Pie diagram for supervisor delay survey results.
Figure 3.6 Results of regular supervisor delay survey.
Figure 3.7 Time study observation sheet.
Figure 3.8 Rating graph.
Figure 3.9 Cumulative mean basic time.
Figure 3.10 Basic times plotted against volume of concrete.
Figure 3.11 Typical relaxation allowances.
Figure 3.12 Synthetical estimating.
Figure 3.13 Normal distribution curve.
Figure 3.14 Activity sampling observation sheet. Key to operations: FS = fix...
Chapter 4
Figure 4.1 Contractor's management functions.
Figure 4.2 Typical organisation of estimating and tendering in a major cons...
Figure 4.3 Typical bar chart.
Figure 4.4 A linked bar chart and resource aggregation chart. The vertical l...
Figure 4.5 A dummy arrow to maintain correct logic.
Figure 4.6 A network showing duration, event numbers, and event times.
Figure 4.7 Use of dummies for unique identification of activities.
Figure 4.8 Calculation of float.
Figure 4.9 Resource aggregation charts for activities starting as early and...
Figure 4.10 Resource-limited histogram and table of scheduled start dates....
Figure 4.11 Resource allocation for two resource types.
Figure 4.12
P
recedence list and diagram showing the same network as in Figu...
Figure 4.13 Adjustment to arrow networks to produce overlaps between activ...
Figure 4.14 Logic diagram.
Figure 4.15 Time for completion of 10 repetitive sequences at the rate of o...
Figure 4.16 Logic diagram for each section added to the completion schedule...
Figure 4.17 Effect of scheduling operation ‘Pile cap’ at a completion rate ...
Figure 4.18 Effect of scheduling operation ‘Pile cap’ at a completion rate ...
Figure 4.19 Line-of-balance schedule drawn from data in Table 4.1.
Figure 4.20 Line-of-balance schedule drawn from data in Table 4.1.
Figure 4.21 Line-of-balance schedule drawn from data in Table 4.1.
Figure 4.22 A PERT diagram showing duration, event numbers, and event times...
Figure 4.23 Space–time diagram for a road project.
Figure 4.24 Interrelationships between various management functions using ...
Figure 4.25 Project delivery functions.
Chapter 5
Figure 5.1 Maslow's hierarchy of needs.
Figure 5.2 Categories of factors that distinguish Theory Z organisations.
Figure 5.3 Methods of encouraging motivation to work.
Figure 5.4 Piecework system expressed graphically.
Figure 5.5 Geared incentive schemes.
Chapter 6
Figure 6.1 Original programme of works–in weeks.
Figure 6.2 Programme updated at Week 52.
Figure 6.3 Daily time allocation sheet.
Figure 6.4 Materials supply.
Figure 6.5 Cost control expenditure graph.
Chapter 7
Figure 7.1 Graphical comparison of depreciation methods.
Chapter 8
Figure 8.1 Typical stages of a construction project.
Figure 8.2 Project management arrangement.
Figure 8.3 Contract procurement options.
Figure 8.4 Separated contract.
Figure 8.5 The construction management contract.
Figure 8.6 The management contract.
Figure 8.7 The design and management contract.
Figure 8.8 Integrated contract.
Figure 8.9 Functions in a large civil engineering project.
Figure 8.10 Adjudicator's contract NEC3.
Figure 8.11 Client risk exposure for different procurement arrangements.
Chapter 9
Figure 9.1 Estimating practices in different types of construction organisat...
Figure 9.2 Activity flow showing role of estimating in tendering process of ...
Figure 9.3 The selection of production rates and cost data and their combina...
Figure 9.4 An example of unit rate and operation rate estimating combined.
Figure 9.5 Resource reconciliation report.
Chapter 10
Figure 10.1 Distribution of 31 competitors' bids compared to our cost estima...
Figure 10.2 Probability of beating competitor versus mark-up.
Figure 10.3 Distribution of 31 lowest competitors' bids compared to our cost...
Figure 10.4 Average difference between mean and lowest bid.
Figure 10.5 Demonstration of how the estimate of the average amount lost in ...
Figure 10.6 Average margin lost in competition.
Figure 10.7 Average of the lowest bid/designer's estimate and average of mea...
Figure 10.8 Cusum plot for one contractor.
Fig. 10.9 Sensitivity of success rate to changes in mark-up.
Chapter 11
Figure 11.1 Types of budget.
Figure 11.2 Monthly cumulative budgeted turnover in year.
Chapter 12
Figure 12.1 Value versus time from a bar chart (values shown as £000).
Figure 12.2 Cumulative value versus time in percentage terms.
Figure 12.3 Cash flow forecasting calculations.
Figure 12.4 Cash-out and cash-in curves.
Figure 12.5 Relationship between data on computer systems for cash-flow calc...
Chapter 13
Figure 13.1 Relationship between present and future value of an amount of mo...
Figure 13.2 Compound amount of a uniform series.
Figure 13.3 Relationship between total present worth and the present worth o...
Figure 13.4 Graph of net present worth versus interest rate.
Figure 13.5 Net PW versus interest rates showing the differing order of net ...
Figure 13.6 (a) Sensitivity chart of DCF yield, capital cost and constructio...
Figure 13.7 Cash-flow model for proposed factory.
Figure 13.8 Estimates of construction cost and the variability of the cost....
Figure 13.9 More detailed assessment of a cost's variability.
Figure 13.10 Non-symmetrical estimate of variability.
Figure 13.11 (a) Simple cash flow model; (b) Simple cash flow model for a pl...
Figure 13.12 Simulation output.
Figure 13.13 Cash flow model illustrating the use of frequency distributions...
Figure 13.14 Types of distribution describing variability in estimates.
Chapter 14
Figure 14.1 Typical construction company functions.
Figure 14.2 Administration subdivided into elements.
Figure 14.3 Services subdivided into elements.
Figure 14.4 Accounts subdivided into elements.
Figure 14.5 Large company subdivided by function.
Figure 14.6 Holdings of a group of companies.
Figure 14.7 Matrix organisation.
Figure 14.8 Organisational arrangement on the construction site.
Figure 14.9 Plant organisation options.
Chapter 15
Figure 15.1 The marketing process.
Chapter 17
Figure 17.1 Structured information flow diagram for Design (Austin et al 199...
Figure 17.2 Schematic diagram of an extended enterprise.
Figure 17.3 Information genres requiring management in construction.
Chapter 18
Figure 18.1 Sources of long-term finance.
Figure 18.2 Sources of short-term finance.
Figure 18.3 The current assets and current liabilities cycle.
Chapter 19
Fig. Q1.1 Flow diagram for Bogtown Sewage Works site layout.
Fig. Q1.2 Process chart for a crane.
Fig. Q1.3 ASME symbols.
Fig. Q1.4 Site layout at primary digestion tank no. 1.
Fig. Q1.5 Outline process diagram.
Fig. Q2.1 Time study abstract sheet.
Fig. Q3.1 Activity sampling exercise.
Fig. Q4.1 Existing site layout.
Fig. Q8.1 Arrow network showing duration in days.
Fig. Q9.1 Scheme details.
Fig. Q9.2 Construction sequence details.
Fig. Q10.1 Network for subcontractor's operations.
Note:
Duration in weeks a...
Fig. Q11.1 Precedence diagram.
Fig. Q12.1 Network for a project.
Fig. Q14.1 Construction plan for one house.
Fig. Q15.1 Construction plan for one house.
Fig. Q17.1 Formwork panel.
Fig. Q21.1 Concrete surround to pipe.
Fig. Q27.1 Precedence diagram for construction of a workshop.
Fig. Q34.1 Frequency of pumping demand.
Chapter 21
Fig. 21.1 Normal population distribution.
Fig. 21.2 Samples' distribution.
Fig. 21.3 One-tail right test.
Fig. 21.4 One-tail left test.
Fig. 21.5 Two-tail test.
Fig. 21.6 Two-sample test.
Fig. 21.7 Binomial distribution.
Fig. 21.8 Poisson distribution.
Fig. 21.9 Chi squared or χ2 goodness-of-fit test.
Fig. 21.10 Linear regression.
Guide
Cover
Table of Contents
Title Page
Copyright
About the authors
Preface to the eighth edition
Companion website
Begin Reading
Bibliography
Abbreviations and acronyms
Index
End User License Agreement
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The book's companion website is at www.wiley.com/go/MCM8 and offers invaluable resources for both students and lecturers:
Solutions to the self-learning exercises
PowerPoint slides with discussion topics
Journal and web references
Questions directory
Modern Construction Management
Eighth Edition
Frank Harris‡
Former Emeritus Professor of Construction ScienceUniversity of WolverhamptonUnited Kingdom
Ronald McCaffer
Emeritus Professor of Construction ManagementLoughborough UniversityUnited Kingdom
Andrew Baldwin
Emeritus Professor of Construction ManagementLoughborough UniversityUnited Kingdom
Distinguished Visiting Professor and Co-Director of the National Centre for International Research of Low Carbon and Green BuildingsChongqing UniversityChina
Francis Edum-FotweLecturer in Construction ManagementLoughborough UniversityUnited Kingdom
This eighth edition first published 2021
© 2021 John Wiley & Sons Ltd
Edition History
5e; (2001, Blackwell Science) 6e; (2006, Blackwell Publishing), 7e; (2013, John Wiley & Son, Ltd)
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Library of Congress Cataloging-in-Publication Data
Names: Harris, Frank, 1944- author. | McCaffer, Ronald, author. | Baldwin,
Andrew, 1950- author. | Edum-Fotwe, Francis, author.
Title: Modern construction management / Frank Harris, former Emeritus
Professor of Construction Science, University of Wolverhampton, United
Kingdom; Ronald McCaffer, Emeritus Professor of Construction Management,
Loughborough University, United Kingdom; Andrew Baldwin, Emeritus
Professor of Construction Management, Loughborough University, United
Kingdom; Distinguished Visiting Professor and Co-Director of the
National Centre for International Research of Low Carbon and Green
Buildings, Chongqing University, China; Francis Edum-Fotwe, Lecturer in
Construction Management, Loughborough University, United Kingdom.
Description: Eighth edition. | Hoboken : Wiley-Blackwell, 2021. | Includes
bibliographical references and index.
Identifiers: LCCN 2020024260 (print) | LCCN 2020024261 (ebook) | ISBN
9781119488347 (paperback) | ISBN 9781119488354 (adobe pdf) | ISBN
9781119488385 (epub)
Subjects: LCSH: Construction industry–Management.
Classification: LCC HD9715.A2 H35 2021 (print) | LCC HD9715.A2 (ebook) |
DDC 624.068–dc23
LC record available at https://lccn.loc.gov/2020024260
LC ebook record available at https://lccn.loc.gov/2020024261
Cover Design: Wiley
Cover Image: © Bloomberg/Contributer/Getty Images
About the authors
Frank Harris BEng, MSc, PhD, DSc, CEng, MICE, FCIOB was Emeritus Professor of Construction Science at the University of Wolverhampton. Frank graduated in Civil Engineering and worked in the construction industry for many years, giving his research and publications clear practical objectives supporting industry. In Construction Management, his expertise included productivity and the effects of weather on construction planning. He also pioneered the field of construction plant and equipment and its management.
Ronald McCaffer BSc, PhD, DSc, FREng, FRSE, FICE, FCIOB is Emeritus Professor of Construction Management at Loughborough University. Graduating in Civil Engineering, Ron McCaffer worked on the design of sewage treatment plants, drainage systems and on construction sites including Hinkley Point B Nuclear Power Station gaining a broad understanding of design and construction; both methods and management. Taking up an academic career, he built a strong research team funded by the Research Council, the EU and industrial companies who were greatly supportive. His experience includes estimating, tendering, quality management and computer systems.
Andrew Baldwin BSc, MSc, PhD, FICE, has extensive construction industry and academic experience. Following an extended career in industry, he began an academic career at Loughborough University UK where he is now an Emeritus Professor in Construction Management. He is also a Distinguished Visiting Professor at Chongqing University, China and Co-Director of the National Centre for International Research of Low Carbon and Green Buildings.
Francis Edum-Fotwe BSc, MSc, PhD, holds a lectureship in Construction and Project Management in the School of Architecture, Building and Civil Engineering, Loughborough University. Francis has worked in industry, in design and construction management roles, as well as running a construction company. He also has extensive experience in academia in both the UK and internationally, having been a lecturer in Ghana, and a visiting academic in Germany, The Netherlands, Greece, and Zambia.
Preface to the eighth edition
This book is intended for students and graduates of civil engineering, construction management, building and quantity surveying who wish to extend their knowledge and obtain a better understanding of site, business and the corporate management of construction companies.
Since its first edition, Modern Construction Management has successfully provided a background to how construction companies operate, the management techniques involved, their decision making and how these decisions are successfully implemented. Over the decades since the first edition, the structure of the industry, techniques adopted and the processes have changed. While the parties to a construction project have remained the same their responsibilities have changed. New materials, technologies and processes have been introduced. However, the young construction manager still needs to be a competent technologist to successfully complete construction work as well as possess the skills of knowledge management and an understanding of business processes. This is the basis of career enhancement to executive and board level. This remains the aim of Modern Construction Management.
This new edition builds on previous editions in giving future managers the basic understanding they will need to deliver a crisis-free, efficient and cost-effective construction industry. This requires managers who are people-orientated, socially responsible, innovative and involved in carbon reduction. These objectives have become more acute given recent issues regarding the quality of construction work. The Chartered Institute of Building (CIOB) has recognised that Quality is one of the most prominent issues facing the construction industry today. Modern Construction Management begins by emphasising the important role of total quality management and safe working that pervades every aspect of the construction industry. The subsequent sections are: ‘project production management’ describing the management techniques employed on site; ‘business management’ which addresses the relevant commercial aspects; and ‘administration and company management’ covering corporate activities including information management.
The eighth edition of Modern Construction Management recognises a changing construction industry and includes the processes essential for meeting performance indicators and delivering continuous improvement. Also featured are the principles of lean construction, construction industry productivity, environmental management and sustainability. Innovations such as procurement standards, contractual legislation, early /optimised contractor involvement, framework processes stakeholder management and corporate social responsibility are reviewed.
Information management within all industries is rapidly changing and set to change further with the introduction of 5G technologies. Worldwide, the continuing emergence of Building Information Management (BIM) is leading to new ways of working. This book recognises how BIM is changing construction and how new technologies will change not only processes but also how the industry operates.
The final section of the book includes a comprehensive selection of worked examples designed to assist the reader consolidate learning and includes many tutorial exercises invaluable for analysing the facets of construction management featured in the contents.
Ronald McCaffer
Andrew Baldwin
Francis Edum-Fotwe
Companion website
The book's companion website is at www.wiley.com/go/MCM8 and offers invaluable resources for both students and lecturers:
Solutions to the self-learning exercises
PowerPoint slides with discussion topics
Journal and web references
Questions directory
Chapter 1Introduction
Modern management in construction addresses four principal areas of the industry:
Management of the physical production phase or site construction management;
Management of the various functions that make up and contribute to the delivery of projects, or total project and programme management;
Management of the corporate establishments involved in the delivery of the constructed facilities and services or organisational management;
Management of the industry to create an enabling commercial, regulatory, and conducive socio-economic environment, or sector management.
Construction Management addresses the effective planning, organisation, application, coordination, monitoring, control, and reporting of the core business processes of marketing, procurement, production, administration, accounts, and finance necessary to achieve economic success and/or profitability for an enterprise or organisation engaged in the provision of construction facilities. The functions may be performed by a client, contracting company, consultant firm, public body or a combination of such stakeholders contracted to bring a project or series of projects to safe completion on time, to budget, to the set quality and expected innovative, aesthetic, socially responsible, and environmental impact.
Construction Project Management focuses on the delivery of a specific solution by contracting with stakeholders who undertake combinations of the following indicative sub-processes relating to a specific project:
○ Scoping and budgeting the project;
○ Design coordination/management;
○ Establishing the management structure of the management team;
○ Marketing and procurement;
○ Defining roles and responsibilities;
○ Estimating and tendering;
○ Stakeholder management;
○ Project and construction methods planning, coordination, and control;
○ Value and risk management;
○ Organising, leading, and implementing controls;
○ Production and productivity management;
○ Management of labour resources, temporary works provision, equipment, plant, subcontractors, and suppliers;
○ Time and subcontractor interface management;
○ Cost and budgetary control, including cash flow forecasting;
○ Quality management;
○ Contract and progress payments administration;
○ Legal issues;
○ Information and communications technology (ICT) management;
○ Health and Safety management, education, training and welfare provision;
○
Corporate Social Responsibility
(
CSR
);
○ Management of the potential environmental impacts of construction;
○ Commissioning, auditing, and recording of the project(s).
The Chartered Institute of Buildings, CIOB, provide a comprehensive set of definitions of Construction (Project) Management (CIOB 2014).
Significantly, as recent Constructing Excellence (CE) and government reports emphasise, the marked shift towards modern forms of contracting, rapid technological change, and greater environmental, social and economic accountability of construction pose ever-growing competition in a world of intensified global trading – not least the Corporate Social Responsibility notion of ‘doing well by doing good’ to enhance competitive advantage. Hence, an intelligent client will increasingly need to focus on achieving value at the operational and business levels through the appointment of a robust integrated ‘best in class’ supply chain of stakeholders, able to deliver the listed project services with the fresh, practicable, robust, measurable and auditable core competences and management processes.
Structure of the book
This book covers the principal responsibilities of Construction Management divided into four main sections; in addition, Chapters 1 and 2, which do not form part of the main sections, give specific consideration at the outset to the philosophy of the book as a means of explaining the succeeding chapters.
In particular, Chapter 2, Quality management in construction provides the platform for the succeeding chapters and describes the evolution of quality management from quality control through quality assurance to total quality management (TQM), as well as the current standards employed by construction organisations. It illustrates how quality is intertwined as a thread running through all subsequent sections and explores the emerging strategic role of quality as a driver for competitive advantage in construction. Looking at quality from the project perspective, it advocates a concerted effort by both client and contractor to make any quality agenda a reality, and explores a systems approach to attaining such an agenda. It concludes with a look at initiatives by the professional bodies associated with the construction to support and promote quality attainment and management.
Section I deals with techniques relating to project production management.
Section II covers the business aspects of management at both project and company levels, including environmental management and legislation guidelines.
Section III addresses the executive management responsibilities for overall corporate control.
Section IV brings together a selection of self-learning problems complemented with complete worked solutions for use in the classroom environment, tutorial exercises and seminar discussions, which are provided on the companion website.
The reasons for this particular presentation are:
(1) Successful construction industry executives have distinct phases in their careers: the initial period is spent on site, followed by middle-management duties at the project level, culminating in a career with executive head-office activities. The sections are intended to cater for these phases.
(2) The construction industry is inherently uncertain as a result of the nature of the industry itself – the competitive tendering process, the company's turnover, site production rates and the weather are all features that are characterised by variability and a degree of uncertainty. To be able to cope with such uncertainty, construction executives need to be acquainted with the relevant knowledge and tools for addressing these features. The management techniques described in this book help reduce variability and thus provide the basis for sound and effective decisions by aspiring executives. For example, with proper planning, the duration of a project is not just an experienced guess. The inevitable residual variability in even the best-run company needs to be controlled by:
(a) Planning and setting targets;
(b) Choosing methods to achieve such plans and targets;
(c) Monitoring progress;
(d) Taking corrective action when necessary.
This continual monitoring and revision is ultimately the only way to cope with uncertainty and variability.
Objectives and contents
Each chapter deals with a specific topic (which could, if exhaustively treated, form the basis of a whole book; suggestions for further reading appear at the end of each chapter, while references appear in the bibliography at the end of the book).
The level of detail aimed at is that which will provide the reader with a basic working knowledge of the topic, rather than with specialist expertise. For example, the planning section of the book explains the major techniques available for planning both repetitive and non-repetitive works in sufficient detail to allow intelligent engineers to apply them, providing sufficient comprehension for them to converse sensibly with a specialist support group such as a planning department. Engineers and builders need enough knowledge to understand, appreciate and, where necessary, question the work of specialist support staff such as accountants, cost clerks, planners, and plant managers. A grasp of the techniques described in the sections should help in achieving this skill. Specialists must not be allowed to hide safely in their own specialisms. Participation in the exercises in Section IV covering the numerical-based aspects of these techniques provides a deeper and better understanding of the implications of the various approaches to decision making.
The contents of each section are now discussed briefly below.
Section I
Section I relates specifically to project production management, including planning techniques, production process improvement, estimating and tendering, workforce motivation and cost control.
Chapter 3
:
Production process improvement
provides a foundation to the efficient delivery for the operational aspects of construction. The basis for evaluating such efficiency has shifted to include energy use, productivity, and national productivity reports,
Building Information modelling
(
BIM
), quality management, lean construction, benchmarking, digital technologies, waste management, asset management, Six Sigma, production measurement and sampling. The chapter also provides examples of the application of the production measurement.
Chapter 4
:
Planning techniques and methods
considers who plans, when, and the methods and techniques that may be adopted. The chapter describes techniques including bar charts, linked bar charts, network analysis and space-diagrams together with methods such as, Last Planner, Critical Chain Project Management and ADePT that provide specialist approaches to the management of both design and construction. Also included is guidance for planning for waste management, Health Safety and Environment in construction. A new section considers modern construction planning including developing the time model, schedule design and structure, monitoring progress and managing the time model. Consideration is given to the impact of emerging information technologies including 4D CAD and BIM.
Chapter 5
:
Workforce motivation
links the use of incentive schemes to motivation theory, which is complimented with a coverage of Theory Z. It also presents the various payment systems for non-financial, semi-financial, and purely financial incentives that can be employed to enhance worker motivation. The introduction of a new audit system for workforce motivation offers a new insight for project and senior executives.
Chapter 6
:
Project cost control
gives guidance on the various cost-control methods available, including profit-related control systems, unit- and standard-costing approaches, cost monitoring of subcontractors, and cost management of carbon emissions.
Chapter 7
:
Management of equipment
considers the financing of plant and gives guidance on plant selection and control of gaseous emissions. Calculating a hire rate and maintenance procedures are also covered. The chapter also addresses an important and emerging aspect on plant management – the need for more human-centred approaches to the management of plant within construction.
Section II
Section II presents business management topics and is intended to assist project-based staff to understand and appreciate the company's attitudes and activities, easing the transition from site to general management. The topics described relate to procurement, bidding, budgets and cash flow, economic assessment and plant management.
Chapter 8
:
Project procurement
introduces the role of project and programme management, stakeholder management, design coordination, and reviews various forms of contract including regulations for public contracts. The latest developments for procuring construction and engineering embraced in the ISO and BS Procurement standards and codes of practice, design and build, early and optimised contractor involvement, modern PFI, partnering and associated funding mechanisms are also explained. The risk exposure of each of the parties involved in different procurement arrangement is also addressed.
Chapter 9
:
Estimating and tendering
is an important function in all construction companies that must be conducted with a clear understanding of the resources required and risks involved. The chapter describes the parties involved in the estimating and tendering process, and the four types of cost estimates that may be produced. It outlines the process, decisions, and calculations involved within the traditional estimating practice and the variations adopted for other types of procurement such as Management Contracting, Design and Build, together with cost planning, cost management, whole-life costing and the private finance initiative. The last section of the chapter reviews how BIM contributes to better construction estimating.
Chapter 10
:
Competitive bidding
examines the effect of estimating accuracy, which implies the need for more resources in the estimating department, reviews how to interpret the various available items of data relating to competitors' behaviour and comments on improving estimating accuracy. It also covers electronic bidding and fundamental information on bid evaluation.
Chapter 11
:
Company budgetary control
deals with the preparation of budgets and controlling costs for a company or enterprise, including budgeting for the carbon footprint.
Chapter 12
:
Cash flow and interim valuations
illustrates company cash-flow forecasting and provides guidance on how to do this type of forecasting, the use of computers in cash-flow calculations, the process of interim valuations and the relationship between interim valuations and cash flow. It introduces the concept of invoice financing as a means for achieving positive cash flow for the construction company.
Chapter 13
:
Economic assessments
describes the principles employed in economic comparisons and in measuring rates of return, life-cycle costing, cost-benefit analysis and financial modelling. It also provides an introduction to the use of multi-criteria analysis for appraising projects.
Section III
Section III presents the executive management responsibilities largely concerning head-office activities, including organisation, business development, global construction, and the emerging role of information as a major construction resource and finance.
Chapter 14
:
Company organisation
contains a description and explanation of company structure, organisation and managerial responsibilities, training and vocational qualifications, R&D, environmental management and international agreements. The chapter also covers working in an age of connectedness.
Chapter 15
:
Market planning and business development
describes a marketing approach to construction and the benefits likely to be derived and methods of selling including green/low-carbon marketing, modern web blogging and social networking.
Chapter 16
:
International construction and logistics
risks provides an overview of the problems in globalisation of trade, raising finance, dealing with unfamiliar conditions of contract and legal systems, transport of goods, payment procedures and local labour, resources and security.
Chapter 17
:
Towards BIM and digital construction
considers the changing role of information in construction, the adoption of information technologies, information management including information strategy options, and outlines principles for investing in information systems, their implementation and management. The importance of information security and data protections is stressed. Full consideration is given to the emergence of BIM, BIM-maturity levels, and the future of BIM. The chapter ends with a review of digital construction including digitisation, artificial intelligence and the use of drones and other new technologies.
Chapter 18
:
Financial management
describes the workings of the national economy, company types and formation, banking and money, sources and means of acquiring capital funds and the use of balance sheets, profit-and-loss accounts, ratio analysis and financial regulation.
Section IV
This section presents tutorial examples with complete worked solutions for students in construction disciplines. It is separated into three chapters, with the first, Chapter 19, covering the worked examples from Chapters 3 to 18. Chapter 20 provides worked examples on operational research techniques. Chapter 21 similarly introduces Six Sigma statistical examples supportive of Lean Sigma application to productivity improvement analysis.
Students learn by reading texts and attending lectures. However, they need to test their new-found knowledge or skill by attempting to work through example problems, and several textbooks are available that offer such examples, either with or without answers. Where an answer is provided, the student's own answer is frequently at variance and they are then faced by a dilemma: is the textbook in error or has the author made different, but valid, assumptions? In this book, a complete worked solution to each example is given so that the student has full guidance through the analysis.
The topics covered in Section IV are those aspects of construction management that may be treated numerically:
○ Production analysis;
○ Planning;
○ Estimating;
○ Motivation schemes;
○ Control of project costs;
○ Budgetary control;
○ Cash-flow forecasting;
○ Discounted cash flow;
○ Investment analysis;
○ Plant management;
○ Setting of plant-hire rates;
○ Financial management;
○ Development economics;
○ Construction methods;
○ Operational research;
○ Six Sigma for construction.
The intention is for the students to test their knowledge by trying the examples and comparing the solutions with those offered in the book. Any differences between the student's solutions and those presented here may be discussed with the tutor and, in this way, tutorial discussions may be used advantageously for resolving difficulties rather than for routine learning. It should be remembered that these are tutorial examples and that each one deals with a limited number of variables and principles, sometimes making simplifying assumptions. Thus, students may test their understanding of the principles and ability to manipulate the variables.
Chapter 2Quality management
Summary
Quality control, quality assurance, total quality management, and systems quality in construction.
Introduction
Quality management has seen a transition from reacting to the outcome of site production activities to become a strategic business function accounting for the raison d'être of construction companies. Unless a construction company can guarantee its clients a quality product, it can no longer compete effectively in the modern construction market. Crucial to the delivery of such quality products is the quality of processes that produce the product. ‘Quality’ now stands alongside ‘price’ as a major factor of differentiation in contractor selection by the client as well as determining the efficiency of processes that the contractor adopts for site operations. To be competitive and sustain good business prospects, construction companies need a more strategic orientation for the quality systems they deploy.
This chapter focuses on the transitions in quality management for construction companies culminating in a systems outlook for managing quality in construction. Quality management must provide the environment within which the tools, techniques, and procedures presented in the other chapters can be effectively deployed leading to operational success for the company. The role of the quality management for a construction company is not an isolated activity, but intertwined with all the operational and managerial processes of the company. This chapter reviews various concepts associated with the quality and then considers the contributions of quality control, quality assurance (QA) and total quality management (TQM) to the quality of construction. It also addresses the growing use of quality management systems for achieving superior performance in construction. It highlights the fact that quality in construction can be achieved only through the direct effort of all stakeholders of the project.
Notions of quality
The management of quality in construction is an area of specialisation that has been growing over the past three to four decades to embrace aspects of the project and company activities that are often seen as remote from the physical product. Figure 2.1 shows a number of concepts considered to have an influence on the quality of the product and which have become associated with quality in construction.
Figure 2.1 Aspects of construction quality.
The various areas that contribute to quality in construction in Figure 2.1 reflect the product features, the processes of production and organisation, as well as wider company and industry/business issues. In particular, the management of quality in construction has been embracing considerations that address more of the pre-production processes and organisation/industry issues. For example, a company's quality status is not just seen in isolation, but increasingly from the perspective of industry-wide standards and against that of its competitors.
Quality in transition
The modern concept of quality is considered to have evolved through major transition stages over many years. These stages are described below:
Quality control and inspection
Inspection is the process of checking that what is produced is what is required. Quality control introduced inspection to stages in the development of goods and services to ensure that they are undertaken to specified requirements. Usually quality control is done on a sampling basis dictated by statistical methods. Sampling concrete by making cubes is the most common and best-known example in construction.
Quality assurance
This has developed to ensure that specifications are consistently met. ‘Fit for purpose’ and ‘right first time’ are the principles of quality assurance and the frame of reference for quality assurance is the International Quality Standard ISO 9000 family of standards. In particular, ISO 9001 is seen as the de facto standard for addressing quality in the construction sector. To be certified as operating to the ISO 9001 standard is now virtually seen as essential in today's construction industry. Many clients simply will not do business with companies not certified to ISO 9001.
Total quality management (TQM)
This is based on the philosophy of continuously improving goods or services. A TQM approach is now seen as essential to long-term survival in business, including construction. A key factor is that everyone in the company should be involved and committed from the top to the bottom of the organisation.
The successful total-quality-managed company ensures that their goods and services can meet the following criteria:
Be fit for purpose on a consistently reliable basis;
Delight the customer with the service that accompanies the supply of goods;
Supply a quality of the product that is so much better than that of the competition that customers want it regardless of price.
Quality management systems
A quality management system presents a set of processes that ensure the attainment of defined quality standards for the provision of services and products by the project or a construction company. This can be company-specific or project-specific or one of several systems available on the market. The ISO 9001 is the most commonly used international standard that provides a framework for an effective quality management system.
It is now argued that successful construction companies have to meet at least two of these criteria to stay successful. The pursuit of total quality is seen as a never-ending journey of continuous improvement. A fuller description and application of each of the stages is set out below.
Quality control and inspection
The earliest and most basic form of quality management is quality control. This is described under the headings of:
Definition and objectives of quality control;
Controlling quality;
Quality control implemented in construction.
Definition and objectives of quality control
The term quality control is defined by an interpretation of its elements: ‘quality’ and ‘control’.
Quality
The term ‘quality’ is often used to describe prestige products such as Rolex watches and Mercedes Benz motor cars. However, the term ‘quality’, although applicable to these items, does not necessarily refer to prestigious products but merely to the fitness of the product to the customers' requirements. Quality describes the sum of attributes for a product or service that enables it to meet the requirements or specified need of the customer. The concept of quality goes hand in hand with value for money as perceived by the client.
Control
The concept of being ‘in control’, or having something ‘under control’, is readily understood. We mean that we know what we intend to happen, and are confident that we can ensure that it does. Quality control, however, is primarily concerned with defect detection. The main quality-control techniques are inspections and statistical quality-control techniques (i.e. sampling). Both are aimed at ensuring that the work produced and the materials used are within the tolerances specified. Some of these limits are left to the inspector's judgement and this can be a source of difficulty. The major objectives of quality control can be defined as follows:
To ensure that the completed work meets the specification;
To reduce customers' or clients' complaints;
To improve the reliability of products or work produced;
To increase customers' or clients' confidence;
To reduce production costs.
Controlling quality
Quality control involves ensuring that every product or service meets a minimum set of defined criteria for acceptance. The central feature to all quality-control systems is that of inspection.
