Construction Management Construction Management Eugenio Pellicer PhD, Associate Professor (Senior Lecturer), Universitat Politècnica de València, Spain Víctor Yepes PhD, Associate Professor (Senior Lecturer), Universitat Politècnica de València, Spain José C. Teixeira PhD, Associate Professor (Senior Lecturer), Universidade do Minho, Portugal Helder P. Moura MSc, Regional Director, Estradas de Portugal, SA, Portugal Joaquín Catalá PhD, Professor, Universitat Politècnica de València, Spain This edition first published 2014 © 2014 by John Wiley & Sons, Ltd Registered Office John Wiley & Sons, Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom. Editorial Offices 9600 Garsington Road, Oxford, OX4 2DQ, United Kingdom. The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom. 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Moura, Joaquín Catalá. – First edition. pages cm Includes bibliographical references and index. ISBN 978-1-118-53957-6 (pbk.) 1. Construction industry–Europe–Management–Textbooks. I. Title. HD9715.E82P37 2013 624.068–dc23 2013019567 A catalogue record for this book is available from the British Library. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Cover images: courtesy of Shutterstock Cover design by Sophie Ford, His and Hers Design Set in 10/12.5pt Minion by SPi Publisher Services, Pondicherry, India 1 2014 Contents About the Authors x Preface xi 1 Organising Construction Processes in Construction Companies 1 1.1 Educational outcomes 1 1.2 The facility life-cycle 1 1.3 Production by projects 4 1.4 The construction industry 6 1.5 Construction companies 9 1.6 Organisational structure of a construction company 13 1.7 The construction site within the construction company 17 References 18 Further reading 19 2 Contract Documents 20 2.1 Educational outcomes 20 2.2 Contract documents 20 2.3 Type of documents 23 2.4 Bidding documents 26 2.5 Contractor tender or bid 29 2.6 Estimating process 29 2.7 Contract agreement 33 2.8 Bill of quantities 35 2.9 General and particular conditions 37 2.10 Technical specifications 41 2.11 Contract drawings 43 2.12 Other documents 46 References 48 Further reading 49 3 Procurement Approaches 50 3.1 Educational outcomes 50 3.2 Introduction to procurement 50 3.3 Traditional procurement 53 3.4 Design-build arrangements 55 3.5 Management contracting 56 3.6 Construction management 58 3.7 Relational contracting 59 3.8 Public concessions and public-private partnerships 62 vi Contents 3.9 Organisation modelling 65 3.10 The project manager team 66 References 67 Further reading 68 4 Communications, Information and Documentation 69 4.1 Educational outcomes 69 4.2 Importance of communications, documentation and information 69 4.3 Communications on site 71 4.4 Daily logs 74 4.5 Reports 74 4.6 Construction diary 78 4.7 Meetings 79 4.8 Photographs and videos on site 80 4.9 Information and documentation flow in construction 81 4.10 Information and communications technologies (ICT) 82 4.11 Building information modelling (BIM) 87 4.12 Electronic business and project administration 89 References 93 Further reading 94 5 Site Setup and Construction Processes 95 5.1 Educational outcomes 95 5.2 Site constraints 95 5.3 Equipment constraints 98 5.4 Material storage and handling 99 5.5 Temporary facilities and auxiliary works 100 5.6 Construction jobsite offices 101 5.7 Security on construction sites 103 5.8 Internal organisation of the construction works 105 5.9 General approach to construction processes 108 5.10 Temporary works 110 References 112 Further reading 113 6 Machinery and Equipment 114 6.1 Educational outcomes 114 6.2 The need of machinery and equipment 114 6.3 Selection of machinery and equipment 115 6.3.1 Conditioning factors 115 6.3.2 Methods used to select the machine in relation to economic profitability 116 6.4 Calculation of costs 118 6.4.1 Fixed and variable hourly costs 118 6.4.2 Equipment ownership costs 119 6.4.3 Operating costs 124 Contents vii 6.5 Maintenance 127 References 129 Further reading 130 7 Productivity and Performance 131 7.1 Educational outcomes 131 7.2 Productivity and performance 131 7.3 Work study 134 7.4 Method study 135 7.5 Work measurement 136 7.6 Equipment performance 141 7.7 Assessment of production/productivity 144 7.8 Benchmarking and construction productivity improvement 145 References 149 Further reading 150 8 Quality, Innovation and Knowledge Management 151 8.1 Educational outcomes 151 8.2 Quality, innovation and knowledge 151 8.3 Quality control 153 8.4 Quality assurance in accordance with ISO 9001 154 8.5 Innovation in construction projects 156 8.6 Knowledge management in construction 162 8.7 Standards and procedures 164 8.8 Certificates and technical approvals 165 References 167 Further reading 168 9 Health and Safety Management 169 9.1 Educational outcomes 169 9.2 Introduction to occupational health and safety 169 9.3 The risk–accident cycle 170 9.4 Regulatory context 171 9.5 Agents involved 173 9.6 Business context 174 9.7 On-site prevention 174 9.8 Health and safety plan 177 9.9 Management of the health and safety plan 178 9.10 Incidents and accidents during construction 184 References 186 Further reading 187 10 Environmental and Sustainability Management 188 10.1 Educational outcomes 188 10.2 Environmental impact assessment 188 10.3 Basic legislation for environmental impact assessment 190 viii Contents 10.4 Environmental management tools 191 10.5 Environmental management at the construction site 192 10.6 Construction and demolition (C&D) waste management 193 10.7 C&D reduction, reuse and recycling 196 10.8 Environmental monitoring plan 198 10.9 Environmental impacts at the construction site 199 10.10 Sustainability in construction 200 10.11 Green buildings and certifications 201 References 203 Further reading 204 11 Supply Chain Management 205 11.1 Educational outcomes 205 11.2 Introduction to supply chain management 205 11.3 The construction supply chain 207 11.4 Pros and cons of subcontracting in the construction industry 209 11.5 Procurement and management of subcontracts 211 11.6 Purchase of materials and equipment 213 11.7 Coordination of suppliers and subcontractors 215 11.8 Lean construction 216 References 219 Further reading 220 12 Resources Management 221 12.1 Educational outcomes 221 12.2 Construction planning 221 12.3 Work breakdown structure 224 12.4 Scheduling of activities 226 12.5 Duration of activities 227 12.6 Resources limitations and leveling 229 12.7 Bar chart or Gantt diagram 230 12.8 Network diagrams 232 12.8.1 Historical introduction 232 12.8.2 Graphical representation 233 12.8.3 Calculating the critical path 234 12.8.4 Probability applications 236 12.8.5 The precedence diagramming method 237 12.8.6 Critical chain 239 12.8.7 Commercial software 240 12.9 Line of balance 241 12.10 Last planner system 242 12.11 Time control 246 12.12 Cost assessment and control 247 12.13 Earned value management 250 12.14 Value engineering 252