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Explore the evolving nature of the construction industry, including increasing project size, technological complexity, regulatory challenges, and the need for integrated management. Understand the characteristics and challenges of the construction industry and the evolution of alternative management approaches.
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MANAGEMENT INTHEENGINEERING AND CONSTRUCTION INDUSTRY CHAPTER 1 CONSTRUCTION'S FUTURE: • Increasing size of projects & Organizations • Increasing technological complexity & more complex interdependencies & Variationsinthe relationships among its organization Institution • Rapid Increase of regulations.
At the project level: Integration of design, procurement and construction into one total process. • Shortage of resources. • Management must cope with new economicandculturalrealities resulting form inflation, energy shortage and new societal standards. Success will require the fullest understanding of all facets of the construction Industry.
THE NATURE OF THE CONSTRUCTION INDUSTRY: • Very large = 10% of GNP • 1/2 million construction firms • Intensely competitive • Relatively has trivial technological advances • Construction industry is custom-oriented Do not benefit much of mass production
Very poor in research (<1% of revenue) compared to 10%-20% in electronics * Construction has many characteristics common to both manufacturing and service industries Like MANF Physical products Like SERV Small assets Like SERV Dependent on the qualities of its people
TYPES OF CONSTRUCTION PROJECTS: A) In Developed Countries (USA) • Residential Construction • Building Construction • Heavy Engineering Construction • Industrial Construction
B) In Gaza strip • Buildings • Infra Structure: Roads Water-related Waste water Water supply • Electro mechanical works
EVOLUTION OF ALTERNATIVE APPROACHES TO THE MANAGEMENT OF CONSTRUCTION: 3 Main players (factors) (1) Owners : achieve the best value of money (2) Contractors : Bid low enough to win Bid high enough to profit (3) Workers : Better living standards and working conditions • Modifications of Traditional concepts
Heavy and Highway Traditional Design – construct Bldg. & Industrial negotiated contract Public Owners Traditional Except Rapid Transit & Wastewater Private Owners non-traditional
The Challenges of Construction Coordination and Control Time Rising Costs Quality Design criteria Wages Delivery of materials, supplies and equipment Engineer Owner Constructor Materials and supplies Inspection Construction Management Productivity Lack of skilled workers Government restraints Time delay Design Planning Construction Productivity Jurisdictional disputes Supervision Review plans and specifications, and challenge same Define project Feasibility Changes Finance Capital equipment (price at time of delivery) Finance Availability of materials Design schedule Personnel selection Contract method Personnel selection Construction schedule Design in logical construct sequence Inflation Operating requirements Construction methods Cost-Time-Quality-Trade-offs Controls Schedule Union agreements Standards Cost analysis Cost and value control Bidder selection Reporting and control Design schedule Training Resources Construct Value engineering (functional analysis) Contract terms Value engineering Procedures Review final plans and specs w/cost estimate Isolation and analysis of high-cost areas Reference: Challenges in construction’s future. (from Boyd C. Paulson, Jr., Goals for Basic Research in Construction, Technical Report No. 202, Stanford University, Dept. of Civil Engineering, The Construction Institute, Stanford, Calif., July 1975.)