![1
AMBO UNIVERSITY
WOLISO CUMPAS
Principles of Construction
Management [COTM 2151]
March 2019/20](https://image.slidesharecdn.com/chapterone12-220824080609-2de3a355/85/Chapter_One-1-2-ppt-1-320.jpg)
Chapter_One[1] (2).ppt
- 1. 1 AMBO UNIVERSITY WOLISO CUMPAS Principles of Construction Management [COTM 2151] March 2019/20
- 2. Course Out Line 1. Introduction Construction Industry and its Management Requirements Why CM in Ethiopia 2
- 3. Course Out Line 2. Principles of Construction Management Management developments Functions of Management Role of Managers Levels Of Management 3
- 4. Course Out Line 3. Construction project Management Projects and project Management Process management Stake holders Management 4
- 5. Course Out Line 4. Procurement and Contract Management Principles Bidders qualification Bidders Strategy Contract types 5
- 6. Course Out Line Mode Of Evaluation Quiz I: 5 % Quiz II: 5 % Test I: 15 % Test II: 15 % Assignments and/or Projects:20 % Final Exam: 40 % 6
- 7. Introduction The Construction Industry can be categorized into three major sectors; namely, 1. Transport and Communication (Road, Railway, Airway, and Telecommunication related physical works) 2. Water Works and Energy 3. Buildings and Other Physical Infrastructures. Accordingly, their capital budget requirements vary extensively depending on the focus the economical trend requires for the nation’s development. 7
- 8. Introduction… Recent facts showed that while Transport and Communication sector consumed not less than 70% of the capital budget allotted for the Construction industry; Buildings covered only about 13 %. Besides, about 58.2% of the federal capital budget of Ethiopia is channeled to the development of Physical infrastructures. 8
- 9. Introduction… These figures have indicated that the construction industry is one of the most important contributors for the Politico - Legal, Economical, Socio - Cultural and Technological development of Ethiopia. WB, 1984 has showed that the construction industry is one among four multi pectoral components that plays important role in developing countries. 9
- 10. Introduction… All civil works such as buildings, roads, water works, hydro- power works, etc., can be grouped under the industry termed as Construction Industry. The construction industry as an industry encompasses many firms under it. 10
- 11. Introduction… These firms include Designers, Contract Administrators, often collectively called Consultants, Contractors, Construction materials producing factories, etc. For a construction firm to operate in the industry, it has to present the legal business ownership possessory right. These possessory rights can be obtained in different forms of business proprietorship. These different forms of business ownership's are: 11
- 12. Introduction… 1. Individual proprietorship 2. Partnership 3. Limited partnership, and 4. Corporation 12
- 13. Introduction… The Individual Proprietorship: This form of business ownership is the most widely used type of the construction industry in the third world generally and in Ethiopia Particularly. Most contractors and consultants share this form of business ownership's. 13
- 14. Introduction… This type of business ownership is mostly limited to small firms due to capital involvement of an individual is often within certain capacity. Here the Owner and his business are very much attached to each other in such away that the owner is directly responsible for all business debts and also all the income is personal. That is the main reason why most Ethiopian contractors and consultants do have limited capacity to grow. 14
- 15. Introduction… Partnership: When two or more individual proprietors combine their resources, capital and talents to form a business ownership it is called partnership. It becomes a joint venture company. 15
- 16. Introduction… In partnership proprietorship, each partners can obligate the partnership in which the partners must have full confidence in their partnerships. Agreement to establish partnership must be made legally through appropriate attorneys. Partnerships are most successful when the partners are closely related and have believe and good understanding to each other. 16
- 17. Introduction… Limited Partnership: The limited partnership is a business ownership in which either one of the partners avoids liability for business depts to some extent while maintaining the partnership or both limited their liability to a limited capacity. These companies usually affix their business name by using private limited company to show their liability is as defined legally in courts. 17
- 18. Introduction… Corporation It is almost universally used especially in developed countries. Corporations may be owned by an individual or state laws may require initial incorporation by a minimum of three persons. This form of business ownership has been adopted and experienced in many government organizations of Ethiopia. Its application is not so far incorporated in the construction industry of Ethiopia. But Recently road corporation, Railway corporation, Metals and Engineering corporation e.t.c 18
- 19. Introduction… This kind of business ownership has the following advantages: Income tax releases partially or avoidance using with the provision of health , life, etc. insurance to employees, using a separate corporations for each development, etc. 19
- 20. Introduction… Owners of a corporation are responsible for dept with in their investment, and The death of the owner need not terminate the operation of the firm. Therefore, this type of business ownership shall be seen as an alternative to partnership which need to be promoted in the construction industry of the third world countries 20
- 21. Introduction… Construction Industry and Its Management Requirements Construction and the ability to build things has transcend from the most ancient human skills of the Primary age to the modern ages of Industrialization and Information. During the whole of Primary age, the construction industry has largely related to talents of human beings on how to construct shelters and small roads and river improvements. 21
- 22. Introduction… Generally speaking, the focus during this age is largely on fulfilling humans’ basic needs and major figurative and monumental ones. 22
- 23. Introduction… As the number of humans’ enlarge and their demands become more, a need to fulfill such demands amass and in short period of time pressed human beings to search for alternatives in order to live peacefully for their co-existence. This leads to creating appropriate technology that develop progressively in line with increasing productivity. 23
- 24. Introduction… This brought the development of society into the Industrialization age where mass production for assembly is becoming possible. This brought different approaches to construction methods and their completion times. 24
- 25. Introduction… This period has mainly created conscious way of technology improvements for first mass production followed by quality enhancement and productivity issues. Subsequently, the concept of competition such that time, quality and cost values were starting to govern. The development of technology and the concepts of competitions opened a considerable role for management functions such as planning, implementing and controlling cycles. 25
- 26. Introduction… The information age which made most cumbersome mathematical calculations simple and that brought and revealed many more complex factors involved in construction processes enhanced the way how construction activities need to be managed. As a result, Management functions have enlarged and become more important for the construction industry competitiveness and development. 26
- 27. Introduction… Management is defined as the art of arranging and/or organizing various activities, operating equipment and group of people in a suitable manner to create systematic operation with continuity to achieve a common goal. As construction is also one of the industries which need the proper systematic coordination of activities, materials, labor and operating equipment, therefore managing such industry is necessary. 27
- 28. Introduction… The management towards coordinating different workmen, availing the required machinery and material at the right time, executing the project economically and successfully, and controlling over the quality, time and sequence of flow of construction in a well planned and organized manner is called Construction Project Management. 28
- 29. Introduction… Construction management is different from a steady state Organization management in that it has a distinct beginning and a distinct end while a steady state Organization runs continuously. However construction management as part of project management it can also be incorporated in a steady state Organization. 29
- 30. Introduction… In our world construction resources are scarce, hard to obtain easily and becoming expensive every day in spite of the fact that their demand is high. It is this reality which obliged us to utilize them efficiently and effectively. In other words, that is the basic reason why construction industry needs to be managed and professionalism in construction management assumes special significance. 30
- 31. Introduction… Construction Management is necessary to insure: The proper planning and organization of the works, The effective use of resources, The completion of works within estimated budget and specified time, The timely delivery and utilization of materials, 31
- 32. Introduction… The necessary quality of the work, The proper usage of equipment and latest methods of construction and technology, The building up of reputation for high quality of workmanship, The controlling over the contract agreed upon and specification, 32
- 33. Introduction… The motivation of people to work to their best and creating an organization that works as a team, The taking of sound decisions at the lowest practical management level through delegation of authorities, 33
- 34. Introduction… The proper communication and reporting of the works executed, The provisions of safe and satisfactory working conditions for all workers, The monitoring of the works to be executed against planning, The proper sequence of flow of construction, and The proper coordination of the resources to create an organization that works as wholesome to fulfill the objectives. 34
- 35. Introduction… Why is Construction Project Management (CPM) important to CoTM Professionals? First let us see what Construction Technology and Management Professionals are responsible for, which will help us to discuss why CPM is important to them. The two key words are Technology and Management. 35
- 36. Introduction… While Technology refers to the methods or procedures of techniques used to make the best result, Management is the coordination and administration of many components such as Stakeholders and their relationships; Resources; Processes and their combined performances for getting things done successfully 36
- 37. Introduction… Construction Project Management is therefore to coordinate and administer all components including the technology and safety and health requirements in order to successfully accomplish based on the five criteria of performance: 37
- 38. Introduction… These performance criteria can briefly be described as: 1. Relevance: Response to needs and priorities 2. Efficiency: Delivery in terms of cost, time and quality as per specification 3. Effectiveness: Achievement of the common goal 4. Sustainability: Continuation of its relevance 5. Impact: Various effects of the project 38
- 40. Introduction… Construction Technology and Management Professionals are those who could oversee the overall processes of construction projects from their inception to their use and disposal stages. That is; the observance, assessment and fulfillment of the overall relevance, efficiency, effectiveness, utility, sustainability and impact of a construction project to the society at large and to the client and users in particular is the role of Construction Technology and 40
- 41. Introduction… All other professionals are experts in the field whose contribution are very vital but are particulars in the process of the Construction Project development. 41
- 42. Introduction… Why Construction Management In Ethiopia The development of the construction industry technologically and in management perspectives such as policy, regulation, etc development issues is one of the major roles of Construction Technology and Management professionals. These roles have clearly demonstrated the importance of Construction Management to CoTM professionals in Ethiopia. 42