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Construction Is A Complex Process:. Module 03-02 – PS&E Modified: February 10, 2003. Purpose:. Illustrate the Three Contrasting Points of View – Owner, Designer, Builder. Learning Objectives. Students should be able to list the main concerns of all three parties and

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Construction is a complex process l.jpg

Construction Is A Complex Process:

Module 03-02 – PS&E

Modified: February 10, 2003

CVEN-349 Maxwell


Purpose l.jpg

Purpose:

  • Illustrate the Three Contrasting Points of View – Owner, Designer, Builder

CVEN-349 Maxwell


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Learning Objectives.

  • Students should be able to list the main concerns of all three parties and

  • Apply them to simple design project situations

CVEN-349 Maxwell


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It is an Adversarial Process

As strange as it may seem, the EPC (Engineering, Procurement, and Construction) is an adversarial process wherein each of the three main parties (the Owner, the Designer, and the Builder) tends to be at odds with the other two because of conflicting objectives.

CVEN-349 Maxwell


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The “People” Part

  • Most of the “art” of construction management involves sorting out these external conflicts – partnering, negotiation, etc.

  • As well as external conflicts within your own organization – team and organizational problems

CVEN-349 Maxwell


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What Are Some Examples of External Conflicts?

  • Schedule Changes

  • Scope Creep / Design Changes

  • Change Orders

CVEN-349 Maxwell


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What Are Some Examples of Internal Conflicts

  • Marketing – Sell the job, regardless of the technical feasibility.

  • Technical – Deliver the “Statue of Liberty” every time, regardless of the budget.

  • Fiscal – Stay within budget regardless of the quality and quantity of the work.

CVEN-349 Maxwell


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The “Science” Part

  • This course involves the numerical tools related to the Project Manager’s four major responsibilities: schedule, budget, work, and safety.

  • You have to be able to succeed at both to gain positions of great responsibility (and great reward) within the process.

CVEN-349 Maxwell


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Types of Construction

  • Houses & light commercial (30-35%)

  • Buildings & heavy commercial (35-40%)

  • Industrial – Chemical plants, paper mills, power plants, etc. (5-10%) **

  • Heavy - Dams, bridges, etc. (5-10%) **

  • Transportation - Highways, railroads, canals, etc. (15-20%) (linear) **

    ** Where engineers control things

CVEN-349 Maxwell


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The Owner’s Point of View

  • Project will be managed by Internal Staff or CM Firm.

  • There are Government (all three levels) to be satisfied: EPA, Building Codes & Permits, Use Codes & Permits, Access Permits, Tax Assessments, OHSA, …

  • Project Funding: Internal Cash Flow, Banks, REITs, Other Lenders, Tax Abatements, …

  • Future Users: Internal, External, …

CVEN-349 Maxwell


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Owner, Cont’d.

  • Risk Shifting: Bonding Companies, Insurance Companies, Contract Clauses…

  • Government Owners have Special Problems: Bidding Rules, Contracting Rules, Defaulting Rules, Labor Compliance Rules, Fraud Rules, Conflict of Interest Rules, … …

CVEN-349 Maxwell


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Designer’s Point of View

  • Engineering Staff will be internal or external: Structural, Foundation, Environmental, HVAC, Other Special,

  • Architectural Staff: Building and Other Special

  • Regulators: Professional Boards, Building Codes

  • Risks: Financial, Management, etc.

CVEN-349 Maxwell


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Designer’s Risks

  • Conflicts between plans and specifications **

  • Faulty Design **

  • Shop Drawings **

  • Errors and Omissions **

    **What you get sued for.

CVEN-349 Maxwell


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Builder’s Point of View

  • General Contractor – Usually a specified minimum, say 40%. Primary responsibility

  • Suppliers: Steel, Concrete, Materials, …

  • Trade Unions: Electricians, Masons, Painters, Glaziers, Carpenters, Dry Wall, Roofers, Plumbers, Laborers, Truckers, Operators, etc.

  • Sub contractors: Electrical, Mechanical, Erectors, Conveyances, Masonry, Dry Wall, Finish, etc.

CVEN-349 Maxwell


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Builder Cont’d.

  • Regulators: OHSA, Owner’s Inspectors, Code Inspectors, Labor Inspectors, Union Work Rules.

  • Major Risks: Safety, Budget, Schedule, Acts of God, Workmanship, Labor Strife,

  • Financial Partners: Insurers, Bonding Companies, Bankers

CVEN-349 Maxwell


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Your Primary Objectives as PM

No matter who you work for, where you are in the organization, or what part of the process you “own,” your job is to deliver a product:

  • On Time,

  • On Budget

  • On Scope - Meets or exceeds customer requirements

  • And, maintain a safe and non-threatening work place.

    All this and “have a life.”

CVEN-349 Maxwell


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Class Assessment

  • Take about 1-minute to write a sentence identifying the “muddiest” topic in this module.

CVEN-349 Maxwell


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