Drexel CMGT 101-2008 - week 2 market segments

Drexel CMGT 101-2008 - week 2 market segments -...

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Unformatted text preview: Introduction to Construction Management CMGT 101 Instructor Douglas Carney, AIA Construction Management Construction Management The process of allocating resources Four (4) M's Manpower (labor) Materials Machines (equipment) Money Construction Management Construction Management Construction Management is a professional service that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost and quality. (CMAA) Technology related to the means and methods to place the physical materials used in the construction industry in a logical sequence (Halpin) Construction technology Where . . . . is the Construction Industry Going? Increasing Size of organizations Technologically complex Complex interdependencies and variations Expanding regulatory Types of construction Projects Residential Commercial Buildings Heavy Constructioninfrastructure Industrial/Process construction Types of construction Projects Residential Homes 30-35% of construction activity Apartments Private sector funding Extremely interest rate sensitiv High-rise buildings Few large firms Low barriers to market entry Low technology requirements Low expertise required Low capital requirements Firm characteristics Types of construction Projects Buildings of all non35-40% of construction residential types activity Hospitals Schools Retail shops & Malls Offices Churches Government buildings Theaters Warehouses Light manufacturing Both Public & Private sector funding Less interest rate sensitive Medium-large large firms Medium barriers to entry Higher technology requirements Firm characteristics Types of construction Projects Heavy Constructioninfrastructure 20-25% of construction activity Dams Tunnels Highways Airports Bridges Mostly Public sector funding Not interest rate sensitive ALL very large firms High barriers to market entry High technology requirements Significant expertise required Very High capital requirements Typically lump sum bid contrac Firm characteristics Types of construction Projects Industrial/Process construction Heavy Manufacturing plants Petrochemical plants 5-10% of construction activit Refineries Private sector funding Power plants Not interest rate sensitive Steel mills ALL very large firms Mining High barriers to market entry High technology requiremen Significant expertise required Very High capital requiremen Typically turnkey contracts Firm characteristics Traditional Construction Delivery Method Owner conceives a project Hires an Architect/designer Works with the Architect to define needs Architect prepares bidding documents Competitive bidding to multiple firms Bids received, evaluated & Construction Delivery Approaches Traditional Method Design Bid- Build Alternative Methods Negotiated Sum designed project Cost of the work plus a fee (Agency) Guaranteed Maximum Price (GMP-at risk) Turnkey-Design Build What delivery mode is right? General Factors Control Risk apportionment Scope & Quality Cost on bid day verses FINAL DELIVERED costs Operational costs Sustainability ...
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