Estimating the Project
Given that cost is one of the major factors or values of the construction project, estimating is probably one of the most important construction management functions. Estimating entails the calculation and pricing of all materials, equipment, and man-hours needed to complete the work. We use estimating to get the work and also to help us keep score. In other words, we constantly compare the actual cost of the project with the estimated cost of the project and monitor any discrepancies. Significant variances are often the first sign of trouble, and a good project manager takes immediate steps to determine the cause and mitigate the problem.
Administering the Contract
Contract administration (or project administration) is all about the “red tape” and paperwork associated with a construction project. As you might imagine, there are tons of reports, submittals, shop drawings, time cards, payroll records, change orders, inspection records, and numerous other documents that must be processed in order to manage a project as complex and expensive as a building, bridge, or highway. Basically, project administration deals with managing all the business affairs related to the contract parties and their obligations. This function usually requires the effort of many different construction management personnel and is vitally important when it comes to doing the work and keeping score relative to the targets for cost, time, and quality.
Managing Job Site and Construction Operations
This is where all the action happens and we get to build something! This function considers every detail associated with the logistics of actually doing the work and getting it done. Think about all the activities and needs linked with workers doing their jobs: tools, equipment, traffic, parking, deliveries, storage, security, communications, signage, safety, trash, drinking water, lunch breaks, and so on. It includes everything right down to when to deliver and where to place the portable toilet! These may be things that you have never thought of before relative to the construction project. But all of these things must be planned, organized, managed, and controlled on the job site in order for the construction to move forward in the most productive manner.
Planning and Scheduling the Project
Project planning is a critical component for the successful completion of any type of building or structure. Planning is about organizing the activities that have to take place in a logical sequence in order to get the project from the ground-breaking phase (or earlier) to the occupancy phase, where the completed project can be used for its intended purpose. Scheduling introduces real time into the plan and is the tool used to communicate the scheme to all parties associated with the project. This function is all about doing the work as planned within a defined time span as well as helping keep score. The schedule is monitored and adjusted throughout the process.
Monitoring Project Performance
This is really one of the primary “keeping score” functions of construction management. There are two key components to controlling project performance: cost and time. Controlling is the process of measuring, monitoring, and comparing actual efforts with estimated inputs and adjusting the plan accordingly to get the project back on track for completion as intended. Estimates and schedules are the tools used to examine this progress.
Managing Project Quality
The quality standards on any project are established in the plans and specs prepared by the designer. Within these documents, specific measurable conditions are given. These include dimensions, tolerances, test results, temperatures, and so on. It is the contractor's responsibility to see that all such quality standards are met and verified. For the builder to accomplish this goal, they must organize, institute, and adhere to a quality control plan. The quality control plan usually consists of a number of inspections, field tests, lab tests, and observations. It is very important that the contractor be able to document and report satisfactory compliance because only after the standards have been met will the owner accept the work and release payment.
Managing Project Safety
The ability to do work on a construction site is directly related to safe surroundings. Every construction manager is responsible for creating and maintaining a safe working environment. This function cannot be taken lightly. People get hurt and can even lose their lives on construction projects. This function, by necessity, must be a priority on every project regardless of size. The personal and economic costs associated with accidents, injuries, and deaths on the job site are clearly avoidable, and a proactive, rigorous approach to safety planning and management is one of the most important construction management goals.
Assessing Project Risks
Construction is a very risky business, for both the owner and the contractor. Part of the challenge is trying to place the risk in the hands of the party who can best manage that risk (see Table 2.1). That's why an owner hires a contractor to begin with—to shift the risks for the construction cost, time, quality, and safety to someone trained to manage them. Once the risks are identified, understood, and analyzed, proper allocations can be made for reasonable schedules, estimates, and management plans.
Table 2.1 Risks Allocation Table
| Type of Risk | Responsible Party | ||
| Contractor | Owner | Designer | |
| Site conditions | X | ||
| Weather conditions | X | ||
| Project funding | X | ||
| Subcontractor failure | X | ||
| Job site safety | X | ||
| Material deliveries | X | ||
| Quality of the work | X | X | |
| Delays in the work | X | X | |
| Defective design | X | ||
| Defective work | X | ||
| Code compliance | X | X | |