Construction Management Fifth Edition Daniel W. Halpin Purdue University Bolivar A. Senior Colorado State University Gunnar Lucko Catholic University of America VP and Editorial Director Laurie Rosatone Senior Director Don Fowley Acquisitions Editor Linda Ratts Editorial Manager Gladys Soto Content Management Director Lisa Wojcik Content Manager Nichole Urban Senior Content Specialist Nicole Repasky Production Editor Abidha Sulaiman Photo Researcher Billy Ray Cover Photo Credit © Laoshi/Getty Images This book was set in 10/12 Times LT Std by SPi Global and printed and bound by Strategic Content imaging. Founded in 1807, John Wiley & Sons, Inc.
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| Lucko, Gunnar, author. Title: Construction management / Gunnar Lucko, Catholic University of America, Daniel W. Halpin, Purdue University, Bolivar A. Senior, Colorado State University.
Description: Fifth edition. | Hoboken, NJ : Wiley, [2017] | Revised edition of: Construction management / Daniel W. | Includes bibliographical references and index. | Identifiers: LCCN 2017013701 (print) | LCCN 2017020534 (ebook) | ISBN 9781119365051 (pdf) | ISBN 9781119365020 (epub) | ISBN 9781119256809 (cloth : acid free paper) Subjects: LCSH: Construction industry—Management.
| Construction industry—Law and legislation—United States. Classification: LCC HD9715.068—dc23 LC record available at https://lccn.gov/2017013701 The inside back cover will contain printing identification and country of origin if omitted from this page. In addition, if the ISBN on the back cover differs from the ISBN on this page, the one on the back cover is correct. Dedicated to the loving memory of Maria Kirchner Halpin 1937–2009 About the Authors Daniel W.
Halpin is Professor Emeritus and retired Bowen Head of the Division of Construction Engineering and Management at Purdue University. He is a graduate of the U. Military Academy at West Point and received the MSCE and PhD degrees in Civil Engineering from the University of Illinois in 1969 and 1973. Prior to attending Illinois, he served in the U.
Army Corps of Engineers receiving the Bronze Star Medal for service in the Republic of Vietnam. His awards include the Walter L. Huber Civil Engineering Research Prize (1979) and the Peurifoy Construction Research Award (1992) both given by the American Society of Civil Engineers (ASCE). ASCE recognized his achievements with distinguished membership (Dist.
Also in 2006, the Construction Industry Institute (CII) awarded him the prestigious Carroll H. Dunn Award of Excellence, CII’s highest award. He is a member of the National Academy of Construction (NAC) and was named a Distinguished Alumnus of the Department of Civil and Environmental Engineering at the University of Illinois in 2008. Senior, PhD, is Associate Professor in the Department of Construction Management at Colorado State University, Fort Collins CO.
He graduated with a degree in Civil Engineering at the Universidad Nacional Pedro Henríquez Ureña, Dominican Republic, his country of ori- gin. He earned his Master’s degree at the Georgia Institute of Technology, and his doctorate at Purdue University, Indiana. Prior to his academic career, Dr. Senior served in the Dominican Republic as a contractor and consultant for construction project planning, control and financial management.
He has served as consultant in productivity improvement and scheduling for projects in Colorado, USA, and coauthored the textbook Financial Management and Accounting Fundamentals for Construction (Wiley). His scholarly work emphasizes the areas of Lean Construction, productivity improvement and teaching methods. Gunnar Lucko Gunnar Lucko, PhD, is Professor of Civil Engineering at Catholic University of America and Director of its Construction Engineering and Management Program. He received his Doctor of Philosophy from the Vecellio Construction Engineering and Management Program at Virginia Tech in 2003 and a Master of Science in 1999.
He also holds a Diploma in structural and envi- ronmental engineering from Hamburg University of Technology in his native Germany. His scholarship has been recognized by the American Society of Civil Engineers with the 2013 Daniel W. Halpin Award for Scholarship in Construction and the 2011 Thomas Fitch Rowland Prize. His research interests include mathematical modeling, analysis, and optimization of pro- ject schedules in conjunction with aspects like cost and resource use, as well as construction equipment operations and economics, and engineering education.
v Preface Introduction This book has been a basic text worldwide over the past 35 years. It provides an introduction to the construction industry for students planning to work as construction managers. It is estimated that more than 400,000 students and practitioners have used it to gain a broad understanding of what one might encounter as an engineer and/or manager in the complex world of construction. The first edition of this text was published by John Wiley and Sons, Inc.
Quoting from the Preface of that edition, we noted that: The construction industry. is a fragmented and diffuse industry encompassing both very small and very large contracting groups as well as the in-house forces of government and semi-government agencies. It also includes many professional groups such as architects, engineers, construction man- agers, and management consultants. In addition, materials suppliers and vendors as well as other support groups are part of this massive industry.
It is not surprising then that it speaks with many voices, and that at times highly quantitative methods are appropriate while at other times the intuitive or empirical approach is all that is available. The management of construction is at one and the same time an art and a science. Therefore, construction managers must be masters of a wide range of qualitative and quan- titative subjects and deal with a wide spectrum of topics involving technical, management, legal, financial and leadership issues. Using an analogy, a construction manager is like a decathlon athlete who must be outstanding in a wide range of technical and people-oriented areas—a jack of all trades, master of all.
Organization Early chapters of this text address the history of construction and the process by which owners procure and contractors execute construction projects. Subsequent chapters deal with company organization as well as planning and scheduling. Chapters addressing the four Ms of construction—money, machines, manpower, and materials—are then presented. Along the way, monetary concepts such as calculating the cost of money (i., issues regarding interest and invest- ment), the impact of taxes, funding of projects from the owner’s perspective and how contractors manage “cash flow” during the construction process are discussed.
The final chapter discusses one of the most important issues confronting modern day construction managers—safety. Material new to this edition includes chapters on planning and scheduling that have been streamlined to provide a smoother presentation. In addition, a new chapter addressing linear scheduling methods in detail as well as the scheduling impact of resource allocation and resource planning has been added. Material regarding the historical background of construction as a profession and a disci- pline has been included to help the student become excited about the multifaceted nature of realizing great construction projects.
Hopefully, students will gain a better understanding of the role played by construction over the centuries in shaping the society in which we live. vii viii Preface Acknowledgments The authors would like to recognize the late Professor Ronald Woodhead of the University of New South Wales for the major role he played in the realization of the first two editions of this book. His experience and insights were critical to the success of these earlier editions. We would also like to thank the many colleagues and numerous students who have pro- vided very useful feedback regarding various aspects of this book over the past 35 years.
In particular, the following academics and industry colleagues provided important insights and relevant material for this book: Dulcy Abraham and Joe Sinfield, Purdue University Bob Bowen, Bowen Engineering, Indianapolis, IN Peter Dozzi, University of Alberta, Edmonton, Canada Jimmy Hinze, University of Florida, Gainesville, FL E. Paul Hitter Jr., Messer Construction, Cincinnati, OH Mike Kenig, Holder Construction, Atlanta, GA Jerry Kerr, Construction Consultant, Indianapolis, IN Kelly Wallace, Bozzuto Construction, Greenbelt, MD Finally, we would like to recognize the continuing support and understanding of our families through the process of writing, updating, and preparing the text for publication. Contents About the Authors v Preface vii 1 History and Basic Concepts 1 1. Bridges and History 1 1.
The Historical Impact of Construction 2 1. Great Captains of Construction 3 1. Other Historic Projects 8 1. Construction versus Manufacturing Processes 9 1.
Construction Technology and Construction Management 12 1. Construction Management Is Resource Driven 13 1. Structure of the Construction Industry 14 1. Differing Approaches to Industry Breakdown 15 1.
Management Levels of Construction 16 Review Questions and Exercises 18 2 Preparing the Bid Package 19 2. Project Concept and Need 19 2. Formal Need Evaluation 21 2. Conceptual Drawings and Estimates 22 2.
Preliminary and Detail Design 27 2. Notice to Bidders 28 2. Decision to Bid 38 2. Subcontractor and Vendor Quotations/Contracts 39 ix x Contents 2.
Performance and Payments Bonds 41 2. Cost and Requirements for Bonds 42 Review Questions and Exercises 43 3 Issues During Construction 45 3. Acceptance Period/Withdrawal 45 3. Award of Contract/Notice to Proceed 46 3.
Suspension, Delay, or Interruption 51 3. Progress Payments and Retainage 54 3. Acceptance and Final Payment 55 3. Summary 57 Review Questions and Exercises 58 4 Contracts 59 4.
Process of Purchasing Construction 60 4. Major Construction Contract Types 61 4. Competitively Bid Contracts 61 4. Stipulated-Sum Contracts 62 4.
Unit-Price Contracts 63 4. Project Delivery Methods 68 4. Design-Build Contracts 69 4. Design-Build in a Consortium Format 70 4.
Construction Management Contracts 71 4. Construction Management At-Risk 72 4. Comparing Project Delivery Methods 72 Review Questions and Exercises 73 5 Legal Structure 75 5. Types of Organization 75 5.
Legal Business Forms 75 5. Partnership 77 Contents xi 5. Comparison of Legal Structures 82 5. Joint Venturing 84 Review Questions and Exercises 85 6 Impact of Taxes 86 6.
Society and Taxation 86 6. Business Impact of Taxation 87 6. Types of Taxes 88 6. Income Tax Systems 88 6.
Taxation of Businesses 89 6. Business Deductions in General 91 6. Taxable Income: Individuals 91 6. Itemized Deductions, Standard Deductions, and Personal Exemptions 92 6.
