LibraryPirate Construction Project Management This page intentionally left blank Construction Project Management A Practical Guide to Field Construction Management 5th Edition S. Keoki Sears Glenn A. Clough John Wiley & Sons, Inc. This book is printed on acid-free paper.
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Library of Congress Cataloging-in-Publication Data: Clough, Richard Hudson. Construction project management : a practical guide to field construction management / Richard H. Construction industry—Management.8—dc22 2007032130 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 Contents Preface vii 1 Construction Practices 1 2 Management System 17 3 Project Cost Estimating 31 4 Project Planning 63 5 Project Scheduling 85 6 Production Planning 129 7 Project Time Acceleration 147 8 Resource Management 173 9 Project Time Management 197 10 Project Cost System 223 11 Project Financial Management 259 12 Scheduling Applications 285 Appendix A Highway Bridge Bid-Item Summary Sheets 309 Appendix B SI Unit Highway Bridge Bid-Item Summary Sheets 323 Appendix C Highway Bridge Project Outline 345 Appendix D Arrow Notation 347 Appendix E The PERT Procedure 367 Appendix F Analysis of Estimating Accuracy 373 Appendix G Highway Bridge Case Studies 381 Index 395 v This page intentionally left blank Preface This book is about Critical Path Method (CPM)–based planning and scheduling as applied to the construction industry.
The book’s distinguish- ing feature is the use of one example project throughout to demonstrate planning, scheduling, project acceleration, resource management, time control, financial control and the project cost system. The example project is a highway bridge. It has been suggested that a building project might be more appropriate for many readers. We have seriously considered that suggestion, although the complexity of even a simple building tends to obscure project man- agement fundamentals in logistical detail and diminish the clarity of the book.
The bridge example, although a civil engineering project, typifies the basics of construction by incorporating critical aspects of most construction projects: the construction of foundations, concrete work, structural steel, and finish work, all of which require labor and equipment supervision, subcontractor management, and material expediting. The entire highway bridge project takes 10 weeks to construct and can be completely illustrated in 70 distinct activities. This fifth edition has been updated with current labor, material, and equipment pricing and includes a complete estimate for the highway bridge. Scheduling and management concepts, such as Work Breakdown Structures (WBS) and the Earned Value Management System (EVMS), are developed in this edition.
An estimate in SI units is included in Appendix B for readers outside the United States. Of particular interest is Chapter 6, which includes discussions of pro- duction planning as it affects personnel, safety, quality, paperwork, and material control. A site layout drawing shows the location of temporary buildings, formwork fabrication, material laydown and staging area, fire extinguishers, and first aid kits. Much of the information in this chapter is gleaned from years of construction experience and is unique to this text.
For generations Men, Machines, Materials, Methods, and Money have been the five Ms of construction. Efficient usage of these five resources vii viii Preface is the essence of construction management. However, in recent years, an important change in these basic resources has occurred. Women now constitute an important part of the construction industry.
They occupy responsible positions in the field trades and at all levels of management. Construction terms like ‘‘journeyman,’’ ‘‘foreman,’’ and ‘‘piledriverman’’ have been used in the industry for literally hundreds of years. Because such words are the only ones generally recognized, these words are used in this text but are not meant in any way to imply gender. At times, the word ‘‘he’’ or ‘‘him’’ is used as a singular pronoun.
Such use of the masculine gender is done solely for the sake of readability and has no presumption of gender. The authors of this text recognize and applaud the important contribution that women have made and are making to the construction industry. This book teaches a method for capturing, modeling, and viewing the entirety of a construction project so that it can be effectively planned and managed from start to finish. Consequently, many of the illustrations are quite large and presented on extra-wide pages called tip-ins.
Due to production limitations, these tip-ins can only be inserted at specific intervals throughout the book rather than at the point they are referenced. Where a tip-in is referenced, guidance is provided on where to locate the figure within the text. In some cases, the tip-ins are located in the chapter following the point where they are referenced. This fifth edition represents 37 years of publication and three generations of authors.
We trust that this fully updated edition will continue as a principal reference for today’s professionals and an instructive guide for tomorrow’s constructors. Keoki Sears, London, England Glenn A. Sears, Durango, Colorado January 2008 1 Construction Practices 1.1 Introduction The objective of this book is to present and discuss the management of field construction projects. These projects involve a great deal of time and expense, so close management control is required if they are to be completed within the established time and cost limitations.
The text also develops and discusses management techniques directed toward the control of cost, time, resources, and project finance during the construction process. Emphasis is placed on practical and applied procedures of proven efficacy. Examples relate to field construction practices. Effective management of a project also requires a considerable back- ground of general knowledge about the construction industry.
The purpose of this chapter is to familiarize the reader with certain fundamentals of construction practice that will be useful for a complete understanding of the discussions presented in later chapters.2 Construction Industry In terms of the dollar value of output produced, the construction indus- try is the largest single production activity of the U. The annual expenditure of approximately $1.2 trillion for construction in 2006 accounts for more than 9 percent of the gross national product (GNP). Thus, almost 1 of every 10 dollars spent for goods and services in 1 2 1 Construction Practices the United States is spent on construction. The construction industry is directly responsible for approximately 6 percent of private employment (or 5 percent of total jobs) in the United States, making it one of the nation’s largest employers.
Not only does the construction industry touch the lives of virtually everyone on a daily basis; it occupies a fundamental position in many national economies. This large and pervasive industry is regarded as the bellwether of economic growth in the United States. Periods of national prosperity usually are associated with high levels of construction activity. One is the natural result of the other.
The construction industry is heterogeneous and enormously complex. There are several major classifications of construction that differ markedly from one another: housing, nonresidential building, heavy, highway, utility, and industrial. In addition, these construction types are further divided into many specialties, such as electrical, concrete, excavation, piping, and roofing. Construction work is accomplished by contractors who vary widely in size and specialty.
Some contractors choose to concentrate on a particular task or aspect of the construction project and are therefore referred to as specialty contractors. Others assume broader responsibility for a comprehensive work package and are referred to as prime contractors. Commonly, prime contractors will subcontract specific aspects of a project to the specialty contractors, forming a contractual web of prime contractors and specialty contractors. Within the industry, very large contractors handle annual volumes in excess of $15 billion; their annual budgets rival the gross national products of many small countries.
However, the construction industry is typified by small businesses.3 Construction Project Construction projects are intricate, time-consuming undertakings. The total development of a project normally consists of several phases requiring a diverse range of specialized services. In progressing from initial planning to project completion, the typical job passes through successive and distinct stages that demand input from such disparate areas as financial organiza- tions, governmental agencies, engineers, architects, lawyers, insurance and surety companies, contractors, material manufacturers and suppliers, and building tradesmen. During the construction process itself, even a structure of modest pro- portions involves many skills, materials, and literally hundreds of different operations.
The assembly process must follow a natural order of events that constitutes a complicated pattern of individual time requirements 1.4 Project Stages 3 and restrictive sequential relationships among the structure’s many segments. To some degree each construction project is unique—no two jobs are ever exactly the same. In its specifics, each structure is tailored to suit its environment, arranged to perform its own particular function, and designed to reflect personal tastes and preferences. The vagaries of the construction site and the possibilities for creative and utilitarian variation of even the most standardized building product combine to make each construction project a new and different experience.
The contractor sets up its ‘‘factory’’ on the site and, to a large extent, custom builds each structure. The construction process is subject to the influence of highly variable and sometimes unpredictable factors. The construction team, which includes architects, engineers, building tradesmen, subcontractors, material deal- ers, and others, changes from one job to the next. All the complexities inherent in different construction sites—such as subsoil conditions, surface topography, weather, transportation, material supply, utilities and services, local subcontractors, labor conditions, and available technologies—are an innate part of construction.
Consequently, construction projects are typified by their complexity and diversity and by the nonstandardized nature of their production. The use of factory-made modular units may diminish this individuality somewhat, but it is unlikely that field construction will ever be able to adapt completely to the standardized methods and product uniformity of assembly line production. On the contrary, many manufacturing processes are moving toward ‘‘one-off’’ production and adopting many of the project management tools originating in the construction industry.4 Project Stages A construction project proceeds in a rather definite order; the stages of development that follow are typical. Once an owner has identified the need for a new facility, he or she must A.